Day: July 13, 2022

Analysts name 2 ASX 200 dividend shares to buy now

piles of australian one hundred dollar notes

piles of australian one hundred dollar notes

Are you looking for dividend shares to buy? If you are, then you might want to look at the ASX 200 shares listed below.

Here’s why these ASX dividend shares could be in the buy zone in July:

Westpac Banking Corp (ASX: WBC)

The first ASX 200 dividend share that could be in the buy zone is Westpac.

Australia’s oldest bank has been tipped as a buy by analysts at Citi. Partly due to its plan to target a reduced cost base of $8 billion by FY 2024, the broker sees Westpac “delivering the strongest EPS growth in the sector” in the coming years. This could bode well for dividend payments.

In fact, Citi is forecasting fully franked dividends of 123 cents per share in FY 2022 and 155 cents per share in FY 2023. Based on the current Westpac share price of $20.16, this will mean yields of 6.1%, 7.7%, respectively.

The broker also sees plenty of upside for the bank’s shares, with its buy rating and $29.00 price target.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 dividend share that could be in the buy zone is this retail giant.

Woolworths recently released its third-quarter update and revealed strong sales growth that was ahead of the market’s expectations. This and its positive start to the fourth quarter went down well with the team at Goldman Sachs. Pleasingly, its analysts expect this positive trend to continue over the coming years. It said earlier this week:

We forecast [a sales] CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth.

In respect to dividends, Goldman Sachs is forecasting fully franked dividends per share of 96 cents in FY 2022 and $1.18 in FY 2023. Based on the current Woolworths share price of $37.16, this will mean yields of 2.6% and 3.2%, respectively.

Goldman has a buy rating and $40.50 price target on its shares.

The post Analysts name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

Three inflation fighting stocks no ones’ talking about

Savvy Motley Fool investors may have already found three stock moves to help fight inflation.
Three ASX stocks that could be hiding right under your nose.

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*Returns as of July 1 2022

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Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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Experts name 2 ASX growth shares for investors to buy now

a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.

a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.

If you’re searching for growth shares to buy, then it could be worth considering the two listed below.

Here’s why experts are saying that these ASX growth shares are in the buy zone now:

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share to look at is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

The team at Goldman Sachs note that these businesses operate in market niches that are under-served by both large and small enterprise software competitors. This has been supportive of growing recurring revenues and very low levels of churn.

Its analysts commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman Sachs has a buy rating and $4.60 price target on ReadyTech’s shares.

ResMed Inc (ASX: RMD)

Another ASX growth share that has been rated as a buy is ResMed. It is a sleep treatment focused medical device company with an industry-leading portfolio of products.

Citi is a fan of the company and notes that the company has announced plans to expand its growing software business into Europe via the acquisition of Medifox Dan for US$1 billion. It also highlights that ResMed’s shares are trading on lower than average multiples, potentially creating a buying opportunity for investors.

Our FY23-24E EPS increases by <1% and Target Price reduces to $34.50 (from $35.50) as a result of incorporating Medifox Dan acquisition into our forecasts. RMD is currently trading at PE of ~28x FY24E, below historical avg of ~32x.

Maintain Buy. This is RMD’s third major acquisition in the SaaS segment after Brightree (Apr’16) and MatrixCare (Nov’18). ResMed paid US$800m or ~19x EBITDA for Brightree and ~US$750m or 25x EBITDA for MatrixCare. The Medifox Dan acquisition should allow RMD to expand its SaaS business footprint outside the U.S.

Citi has a buy rating and $34.50 price target on ResMed’s shares.

The post Experts name 2 ASX growth shares for investors to buy now appeared first on The Motley Fool Australia.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Readytech Holdings Ltd isn’t one of them.

Learn More
*Returns as of July 1 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 positions in and has recommended Readytech Holdings Ltd and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Readytech Holdings Ltd. 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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Temple & Webster shares price jumps 11% after hitting recent lows

a woman sits amid a stylish home setting on a sofa with plush cushions with a coffee table and plant in the foreground while she peruses a tablet device.a woman sits amid a stylish home setting on a sofa with plush cushions with a coffee table and plant in the foreground while she peruses a tablet device.

The Temple & Webster Group Ltd (ASX: TPW) share price finished the day almost 11% higher at $3.29 on Wednesday.

Investors bid up shares in the online homewares retailer on no news. Nonetheless, today’s gain is welcome following a period of heavy downside for the company.

The Temple and Webster share price is now trading almost 70% lower this year to date.

In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) also closed 1.18% higher today.

Let’s see what might have been going on today.

Temple & Webster shares spike on Wednesday

Investors were constructive on cyclical shares today with the Consumer Discretionary benchmark catching a bid.

A good chunk of the index finished either flat or in the green. For Temple and Webster, investors bid the company up on a volume more than 216% of the share’s four-week trading average.

With no news coming from the company, it could be that investors were bottom fishing in the consumer discretionary space in search of bargains.

Cyclical shares such as Temple & Webster have been beaten down in 2022 amid a broad market selloff and softening economic data from the US.

Recently, the US consumer confidence index fell to a 16-month low, as concerns over inflation and economic recession loom.

Recent data needs more clarification

Meanwhile, the Westpac-Melbourne Institute Index of Consumer Sentiment fell 3% in July, down to 83.8 from 86.4 in June.

The index has slipped almost 20% from December and has kept declining every month to July, Westpac found.

However, consumer spending has “likely continued to increase” in Australia during FY22 into FY23, according to Focus Economics.

This is “supported by accumulated savings, as suggested by a tight labor market in April and May and retail sales growth in April,” it says.

“The economy looks set for a healthy expansion this year. Solid labor market dynamics, pent-up spending and faster wage growth should feed household spending.”

So, despite underlying fears of inflation or recession, investors look to be handling Temple & Webster shares accordingly.

The post Temple & Webster shares price jumps 11% after hitting recent lows appeared first on The Motley Fool Australia.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Temple & Webster Group Ltd isn’t one of them.

Learn More
*Returns as of July 1 2022

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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 positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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Why did the Rio Tinto and BHP share price struggle today?

a man in high visibility vest and hard hat at the wheel of heavy mining machinery looks backwards out of the cabin window.a man in high visibility vest and hard hat at the wheel of heavy mining machinery looks backwards out of the cabin window.

The Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) share prices finished in the red today.

Rio Tinto and BHP shares fell 1.37% and 1.44% respectively. For perspective, the S&P/ASX 200 Index (ASX: XJO) jumped 0.23% today.

So what went on with the Rio Tinto and the BHP share prices?

Tough day for commodity prices

Rio and BHP are both copper and iron ore producers among other metals. In global markets overnight, copper fell to US$3.3 a pound. This is the lowest level in 20 months, according to data from trading economics.

COVID-19 BA.5 sub-variant lockdowns in China, the “top consumer” of copper, also appeared to weigh on investors’ minds.

In a research note today, ANZ economist Madeline Dunk said copper “led” the base metals sector lower. She added:

Expectations of another increase in inflation rose ahead of the release of US CPI data. This was exacerbated by further lockdowns in China.

Copper ended the session down more than 3% to hit its lowest level since November 2020.

Goldman Sachs analysts also cut their price target on copper, according to mining.com. Analyst Nicholas Snowdown cited factors including the dollar and global energy squeeze, according to the publication.

Meanwhile, iron ore prices also plunged to US$107.50 per tonne, down 4.44%. China is also a major importer of iron ore. Fears of weaker demand from China appear to have driven down the price.

Share price snapshot

The Rio share price has shed nearly 27% in the past year and lost 6% year to date.

Meanwhile, the BHP share price has lost 18% in the past year and 0.09% year to date.

Both Rio and BHP are big dividend payers, as my Foolish colleague James has highlighted recently.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in a year.

The post Why did the Rio Tinto and BHP share price struggle today? appeared first on The Motley Fool Australia.

Inflation pressures and bear market opportunities

According to The Motley Fool’s Chief Investment Officer Scott Phillips, how investors handle their investments right now could have a massive impact on their wealth in years to come.
While many investors will turn to real estate, gold and other commodities in times of inflation, Scott is quick to point out another way…
Get the details now…

Learn More
*Returns as of July 1 2022

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Motley Fool contributor Monica O’Shea 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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