Are you interested in adding some ASX shares to your portfolio this month?

Three ASX 200 shares that could be worth considering are listed below. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is data centre operator NextDC. With more and more services shifting to the cloud, demand for data centre space has been growing at a rapid rate in recent years. The good news is that the shift to the cloud is still a work in progress, which bodes well for demand over the next decade. And with NextDC owning some of the highest quality data centres in the world, it appears well-placed to capture this demand. In addition, the company is constructing new centres in regional markets and looking at the Asian market.

Goldman Sachs is positive on the company and has a buy rating and $14.20 price target on its shares.

Seek Limited (ASX: SEK)

Another ASX 200 share that could be in the buy zone is this leading job listings company. Seek has been tipped to continue its solid growth over the long term thanks to its leadership position in the ANZ market and its international operations.

Credit Suisse is a fan of Seek. Last month, its analysts put an outperform rating and $36.90 price target on its shares. It expects Seek to outperform its guidance in FY 2022.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share to look at is enterprise software provider TechnologyOne. It has been tipped to deliver strong earnings growth over the coming years thanks to its transition to a software-as-a-service (SaaS) focused business. As of its last update, management believes it is on track to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is also very positive on Technology One. The broker currently has a buy rating and $13.30 price target on its shares.

The post Experts name 3 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• Here’s why experts are tipping these ASX growth shares as buys
• Why experts rate these ASX growth shares as buys
• Here are the top 10 ASX shares today
• Top broker picks two ASX 200 tech shares for today’s economy

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited and SEEK 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 recommended SEEK Limited and TechnologyOne 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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ASX uranium shares broadly benefited in the first part of the 2022 financial year (FY22) amid fast rising prices for the metal.

What happened with uranium prices in FY22?

Uranium prices tracked higher over the first nine months, reaching more than US$64 per pound in mid-April, according to data from Trading Economics. Since then, prices have fallen back to US$48 per pound, though that’s still well above the US$30 per pound on 30 June 2021.

Global interest in the metal, used in nuclear reactors to generate electricity, was rekindled in 2021 amid increased focus on slashing carbon emissions. Whilst nuclear energy entails having to deal with the radioactive waste post electricity production, it essentially produces no greenhouse gases.

Soaring energy prices in 2022, spurred higher by Russia’s invasion of Ukraine, has also seen more political interest in using uranium to provide baseload power.

So, how did all this impact ASX uranium shares?

ASX uranium shares broadly beat the benchmark

All up, it was a mixed bag for investors of ASX uranium shares in FY22, though most beat the benchmark index.

Here’s how some of the top producers and explorers stacked up against the All Ordinaries Index (ASX: XAO) over the 12 month period.

• All Ordinaries Index(ASX: XAO) lost 11.1%
• Paladin Energy Ltd (ASX: PDN) closed FY21 trading for 52 cents and finished FY22 at 58 cents, a gain of 11.5%
• Deep Yellow Limited (ASX: DYL) kicked off FY221 at 72 cents and finished at 60 cents, a loss of 16.7%
• Bannerman Energy Ltd (ASX: BMN) opened and closed the 2022 financial year at 17 cents per share, for a change of 0.0%
• Boss Energy Ltd (ASX: BOE) finished FY21 at 18 cents and closed FY22 at $1.77, a gain of 22%

Looking over that list you’ll see that three of the four ASX uranium shares handily outperformed the All Ordinaries in FY22.

You may also be questioning our maths.

If the Boss Energy share price went from 18 cents to $1.77, surely that’s a gain of 833%, not 22%?

The discrepancy there is in the share consolidation that Boss Energy carried out back in November. That saw every eight Boss Energy shares consolidated into one ‘new’ share. With that in mind, the FY22 closing price for this ASX uranium share in relatable terms to its FY21 closing price needs to be divided by eight.

So instead of $1.77, we get 22 cents.

Still, an impressive 22% year-on-year gain for Boss Energy.

The post The ups and downs for ASX uranium shares in the 2022 financial year appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Lake Resources shares are the most traded today. What’s going on?
• Here are the top 10 ASX shares today
• Why the Paladin share price fell 25% in June
• Here are the top 10 ASX shares today

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 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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With the new financial year underway, it’s time for investors to think about positioning their portfolios for the new macroeconomic regime.

The benchmark S&P/ASX 200 Index (ASX: XJO) has recently bounced from a low on 20 June. It closed the day on Tuesday at 6,606.3, 0.06% higher.

Themes of inflation, central bank tightening, surging interest rates, and – even after two long years – COVID-19 continue to dominate the narrative for ASX shares.

In FY22, energy and mining shares were the dominant players and, by all accounts, look set to perform into the new financial year.

The chart below shows the returns for each of the ASX’s major sector indices this year to date. Energy and utilities have outperformed whilst all other sectors are in the red.

What sectors will perform in FY23?

According to a blend of its global macro models and analyst expectations, Trading Economics expects the S&P/ASX 200 Index to trade around 6,500 points by the end of this quarter.

“Looking forward, we estimate it to trade at 6079.65 in 12 months time,” it added.

It’s a bold prediction that points to further downside, but it may have some merit, according to some experts.

Analyst Chris Savage at Bell Potter is cautious on the technology sector in FY23 due to the shifting interest rates cycle. He wrote in a recent note:

We remain cautious on the outlook for the tech sector in the second half of 2022 given the likelihood that interest rate rises will continue both domestically and offshore due to inflation remaining stubbornly high.

With this in mind we are more attracted to stocks in the tech sector with reasonable cash flows/earnings.

Meanwhile, energy shares look set to continue flourishing in FY23, with a number of tailwinds still behind the sector.

Analysts at JP Morgan note there’s still plenty of uptake of fossil fuels forecast into the next decade. It’s a view shared by Lazard Asset Management.

It says that the energy sector, being so crucial to the economy’s functioning, could continue to rate higher in FY23.

Healthcare shares could also be set to catch a bid in FY23, with the sector already showing signs of recovery in July.

Recent Deloitte analysis found that the “health care sector [had] a powerful opportunity to accelerate innovation and reinvent itself” after battling through COVID-19.

Analysts at Goldman Sachs reckon the average earnings per share (EPS) could grow by around 30% in H2 FY22, suggesting health care could offer some upside this year.

Bringing all the opinions and information together, it appears that cash-rich, fundamentally sound ASX sectors trading at respectable valuations will be the net performers in FY23.

This aligns with the stage in the current macroeconomic cycle whereby investors are increasingly pricing in a number of macro-risks, namely inflation, recession fears, and surging interest rates.

The post What are experts predicting will be the best-performing ASX sectors in FY23? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• What’s the outlook for ASX 200 energy shares in FY23?
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• These were the best (and worst) performing ASX 200 sectors of FY22

Motley Fool contributor Zach Bristow 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 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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At the current Fortescue Metals Group Limited (ASX: FMG) share price, the company is expected to pay a huge dividend yield. But is this enough to make it attractive?

Firstly, let’s look at how much income Fortescue is actually expected to pay.

Considering FY22 has finished, we’ll look at the projected dividend yield for FY23 and FY24.

Using the numbers on CMC Markets, Fortescue could pay a grossed-up dividend yield of 16% in FY23 and 9.8% in FY24.

Compared to most other ASX dividend shares, those projected yields are much larger than what many other businesses are expected to pay over the next couple of financial years. Fortescue has a dividend policy to pay out between 50% to 80% of full-year net profit after tax (NPAT).

So, on the income side of things, it looks like Fortescue is going to be a ‘gold mine’ for dividends.

There’s more to returns than dividends

Getting cash dividends can be very rewarding. Fortescue dividends are very generous – I’m a shareholder myself, so I am getting the benefit of those dividends.

But, I’ll acknowledge that dividends are only part of the picture. The share price returns are important too. It could be pointless to get a 10% dividend yield but suffer a 10% fall of the share price.

The Fortescue share price has, indeed, fallen by 14% over the past month and 22% since 8 June 2022.

I think it’s important to remember that Fortescue’s current NPAT and investment sentiment is tied to the iron ore price because that’s where nearly all of its profit currently comes from.

The iron ore price has been falling. It’s down around US$25 per tonne since the start of June 2022.

Fortescue’s profit potential can change quickly, which is why the Fortescue share price can move so quickly as well. The iron ore price and Fortescue profit are expected to settle at a lower level over the next couple of financial years.

The price of iron ore is highly dependent on China buying vast quantities of the commodity. For people reliant on dividend income, it may not be helpful that Fortescue relies on China for its profit generation. That demand can change.

The dividends are definitely an attractive feature of Fortescue shares. But, for me, there is another reason to be interested in the business, particularly at this lower Fortescue share price.

Fortescue Future Industries (FFI)

FFI is a green energy and green technology company. It is being allocated 10% of Fortescue’s NPAT each year to help develop a global portfolio of renewable energy and green industry opportunities.

Fortescue Future Industries has a goal of making green hydrogen the most globally traded seaborne commodity in the world. FFI wants to produce 15mt of green hydrogen per annum by 2030. E.ON has agreed to purchase up to a third of that production – five million tonnes.

Another exciting area is Williams Advanced Engineering (WAE), which is described as a leading provider of high-performance battery and electrification technology. FFI says that WAE has already demonstrated a track record of success in advanced engineering in premium automotive and motorsports sectors.

WAE has an important part to play in Fortescue’s decarbonisation. For example, it’s helping Fortescue create an ‘infinity train’. This promises zero emissions by using a regenerating battery, utilising gravitational energy to fully recharge its battery electric systems without any additional charging requirements for the return trip to reload. It will also reportedly lower operating costs and create maintenance efficiencies

Foolish takeaway

Fortescue’s dividends are attractive but are expected to reduce in the coming years. I’m cautious about the outlook for the iron price. However, the green FFI division has a very promising outlook in my opinion, which is why I like the business.

The post Should investors buy Fortescue shares for dividends? appeared first on The Motley Fool Australia.

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More reading

• Investors were seeking out ASX shares in June. Here’s why
• ASX 200 mining shares glide lower as expert reduces commodity targets
• Is this a good time to go digging for ASX 200 mining shares for FY23?
• Where is the Fortescue share price headed in 2023?
• Own BHP shares? Top broker warns of looming oversupply of iron ore in 2H 2022

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group 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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