Day: June 23, 2022

Here are 2 ASX 200 dividend shares to buy according to analysts

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her ASX 200 shares rising on her phone

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her ASX 200 shares rising on her phone

Are you looking for some dividend options for your portfolio? If you are, take a look at the two ASX 200 dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this supermarket giant.

Thanks to its defensive qualities and strong market position (800+ supermarkets, 900+ liquor retail stores, and 700+ Coles express stores), it has been tipped to continue growing its sales, profits, and dividends in the coming years. This will be supported by the construction of its smart distribution centres, which are aiming to make its operations more efficient and cut costs.

Citi is bullish on Coles and has a buy rating and $19.30 price target on its shares.

In respect to dividends, Citi is forecasting fully franked dividends per share of 63 cents in FY 2022 and 72 cents in FY 2023. Based on the current Coles share price of $17.62, this will mean yields of 3.6% and 4.1%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that could be in the buy zone is mining giant South32.

Thanks to strong demand for commodities such as aluminium and other green metals, South32 has been tipped to generate strong free cash flow and pay big dividends in the coming years.

Goldman Sachs is particularly bullish. It expects South32 to pay fully franked dividends per share of 26.7 US cents in FY 2022 and 51.6 US cents in FY 2023. Based on the current South32 share price of $4.05 and the latest exchange rates, this will mean very attractive yields of ~9% and ~17%.

Goldman has a conviction buy rating and $5.90 price target on the miner’s shares.

The post Here are 2 ASX 200 dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

Should you invest $1,000 in Coles Group Ltd right now?

Before you consider Coles Group Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles Group Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Here’s why analysts rate these ASX 200 mining shares as buys

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price

If your portfolio is lacking mining exposure and you want to change that, then the two ASX 200 mining shares listed below could be worthy candidates.

Here’s why these mining shares are rated highly by analysts:

Allkem Ltd (ASX: AKE)

The first ASX 200 mining share to look at is Allkem. It is a top five global lithium miner with a collection of world class operations including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Unlike the many explorers and developers on the Australian share market, Allkem has been producing lithium for some time. For example, during the fourth quarter it expects to ship 3,500 tonnes of lithium carbonate and 38,000 dry metric tonnes of spodumene at over US$40,000 per tonne and US$5,000 per tonne, respectively.

Morgans is bullish on Allkem. This is due to the broker’s positive outlook on lithium prices and Allkem’s bold production growth plans.

We maintain our ADD rating given the strong growth outlook for the company. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.

The broker currently has an add rating and $16.38 price target on its shares.

Iluka Resources Limited (ASX: ILU)

Another ASX 200 mining share that could be in the buy zone is Iluka. It is a mineral sands and rare earths producer with a number of operations across South Australia, Western Australia, and Sierra Leone.

Analysts at Goldman Sachs are very positive on the company. This is due to its attractive valuation, the favourable outlook for mineral sands, and its exposure to rare earths.

Goldman commented:

We are Buy rated on mineral sands/rare earth producer ILU (on CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential.

We think ILU is undervalued (on c. 6x EBITDA NTM) vs. key rare earth (c. 15x) and mineral sands/pigment (c. 6x) industry peers. Positive on project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths, and a >50% increase in EBITDA over the next 5 yrs to 2026 The Zircon and TiO2 feedstock markets entered a 3-yr supply side driven deficit in 2021, and we see ongoing upside risk to prices in 2022

The broker currently has a conviction buy rating and $13.80 price target on Iluka’s shares.

The post Here’s why analysts rate these ASX 200 mining shares as buys appeared first on The Motley Fool Australia.

Should you invest $1,000 in Allkem Limited right now?

Before you consider Allkem Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Allkem Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bitcoin price is struggling. When will cryptos see a bottom?

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phoneA man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone

The Bitcoin (CRYPTO: BTC) price is up 2% since this time yesterday. At the time of writing, the world’s top crypto is trading for US$20,554 (AU$29,792).

In a sign the token continues to struggle, the Bitcoin price hit lows of US$19,848 over the past 24 hours. That again put it within a whisker of dropping below what many analysts believe is a key support level of US$19,500.

Bitcoin remains down about 70% from its 10 November all-time high and down 57% so far in 2022.

What’s pressuring crypto prices?

It’s not just the Bitcoin price that’s taking a beating this year.

Almost every top crypto has been sold off heavily with some, like the TerraUSD stablecoin, collapsing completely. This has seen the total global crypto market cap fall from approximately US$3 trillion in November last year to some US$1 trillion today.

The biggest factor pressuring cryptos has been hot-running inflation and the accompanying interest rate hikes needed to cool fast-rising prices down.

While tightening by the RBA and other global central banks all contribute to the impact, it’s the US Federal Reserve that’s most closely watched.

Recent outsized interest rate hikes by the US Fed have contributed to a 30% year-to-date decline in the tech-heavy NASDAQ.

The Bitcoin price moved in line with other risk assets this year, and could come under more pressure.

Fed chairman Jerome Powell said he “anticipates that ongoing rate increases will be appropriate”.

Powell added, “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store.”

Is the Bitcoin price at a bottom?

Having lost more than two-thirds of its value since November, is the Bitcoin price at a bottom?

According to Mark Newton, head of technical strategy at Fundstrat Global Advisors, the answer is yes and no. Newton said (courtesy of Bloomberg):

Bitcoin has made a bottom but probably not the bottom. Upside targets should materialise near US$23,300 with a max near US$24,800 before prices pull back to likely challenge lows into the final week of June.

Analysts at Informa Global Markets say crypto investors will need to wait out the US Fed’s aggressive tightening policy before we see the Bitcoin price reach a bottom.

“Macroeconomic conditions need to improve and the Fed’s aggressive approach to monetary policy has to subside before crypto markets see a bottom,” they said.

The post The Bitcoin price is struggling. When will cryptos see a bottom? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Could ASX lithium shares be set for a boost?

a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.

Top broker Macquarie has upgraded its forecast for lithium prices, which bodes well for ASX lithium shares.

The upgrade comes a month after fellow broker Goldman Sachs tipped a “sharp correction” in lithium prices due to an impending oversupply, which sent ASX lithium share prices tumbling.

According to reporting in The Australian, Macquarie reckons new supply from up-and-coming spodumene producers won’t reach a material volume until 2023.

So, that will support lithium prices as strong demand for the commodity continues, particularly from the burgeoning electric vehicle (EV) market.

In fact, the broker says this demand could potentially more than offset any increase in lithium supply.

Forecast for lithium price up 8% to 13%

Macquarie “now expects spodumene prices to peak at US$4,900 a tonne in the September quarter”, according to the article.

As a result, it has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne.

The article quoted Macquarie as saying the upgrade reflects the “persisting market deficit despite an accelerating supply response”.

The broker noted that spot lithium prices in China were increasing after a recent correction.

Macquarie describes the lithium market as remaining “tight”. Rebounding EV sales are supporting the price after supply chain issues caused by COVID-19 lockdowns in China resulted in a lull.

What does this mean for ASX lithium shares?

Like any ASX resources company, lithium miners are price takers. The higher the lithium price is, the more profit they make. And vice versa.

ASX lithium shares have become a very popular part of the equities market. Governments, businesses and consumers around the world are finally taking climate change seriously. This is giving momentum to pretty much any company involved in the green energy supply chain.

Time will tell whether all these young growing companies in lithium mining will end up creating an oversupply, which would likely reduce lithium prices.

Which ASX lithium shares should you buy?

As my Fool colleague James reported recently, broker Bell Potter has a buy rating on four ASX lithium shares.

Bell Potter’s lithium share picks are as follows:

  • Allkem Ltd (ASX: AKE) with a share price target of $17.53 (buy)
  • Green Technology Metals Ltd (ASX: GT1) with a share price target of $1.37 (speculative buy)
  • Lake Resources N.L. (ASX: LKE) with a share price target of $2.83 (speculative buy)
  • Liontown Resources Limited (ASX: LTR) with a share price target of $3.06 (speculative buy).

These ASX lithium shares have all fallen substantially over the past month since Goldman’s note.

  • Allkem shares are down 26% over the past month to $9.64 at market close on Thursday
  • Green Technology shares are down 33% to 57 cents
  • Lake Resources shares are down 54% to 70 cents
  • Liontown Resources shares are down 33% to 88 cents

The post Could ASX lithium shares be set for a boost? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

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Motley Fool contributor Bronwyn Allen has positions in Allkem Limited and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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