Month: October 2022

The Westpac Banking Corp (ASX: WBC) share price has been in fine form this month.

Since the start of October, the banking giant’s shares have risen an impressive 16% to $23.90.

This compares favourably to the ASX 200 index and its 5% gain over the same period.

Is it too late to buy Westpac shares?

The good news for investors looking for banking sector exposure is that it may not be too late to jump onto the Westpac investment train.

That’s because a number of brokers believe the bank’s shares can chug along nicely over the next 12 months.

One of those brokers is Goldman Sachs, which earlier this week retained its conviction buy rating and $27.07 price target on the bank’s shares.

This price target implies potential upside of approximately 13% for investors over the next 12 months before dividends. The total return stretches to almost 19% if you include the fully franked 5.8% dividend yield that Goldman is forecasting in FY 2023.

The broker is bullish on Australia’s oldest bank due to its “strong leverage to rising rates given a relatively larger proportion of low cost deposits” and its “cost management initiatives.”

Is anyone else bullish?

But it isn’t just Goldman Sachs that believes Westpac shares can keep rising.

A recent note out of Morgans reveals that its analysts have an add rating and $26.68 price target on the bank’s shares. Whereas the team at Citi is even more bullish with its buy rating and $30.00 price target and UBS recently upgraded the company’s shares to a buy rating with a $27.00 price target.

All in all, the broker community appears to agree that the Westpac share price is trading at an attractive level ahead of its results next month.

The post Up 16% so far this month, is it too late to buy Westpac shares now? appeared first on The Motley Fool Australia.

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More reading

• Westpac share price trails ASX 200 big four following earnings dint
• Westpac share price on watch following $1.3b earnings hit
• 2 much-maligned ASX shares cheap enough to buy now: experts
• ASX 200 bank shares have had a stellar month. Here’s why this expert is now worried
• Could chasing high yields mean missing out on potentially top-notch ASX dividend shares?

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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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part two of this edition, we’re rejoined by Kristiaan Rehder, portfolio manager of the Bennelong Kardinia Absolute Return Fund.

The Motley Fool: The high inflation and rising interest rate environment of 2022 presents ASX investors with a very different picture than 2021. Has strategy changed this year?

Kristiaan Rehder: Our strategy hasn’t changed at all. Our investment process has stayed the same since inception back in 2006.

But we do have a heightened focus on our short book, which has provided very strong returns this year.

MF: What do you look for when you’re considering shorting ASX shares?

KR: We treat our short book as a profit centre. There are many fund managers out there who use their short book as hedge to their long book. That’s not what we do. Our shorts have to be profitable in their own right.

So, we use the same investment process for our longs as we do with our shorts, but for the shorts it’s that process in reverse. For shorts, we’re looking for companies that have weak balance sheets, weak management teams, poor earnings quality, low returns, small or shrinking industries, and are trading at unattractive valuations.

Shorting is a difficult business as you’re fighting so many different factors.

Markets tend to go up over the long term; research houses tend to publish supportive research, often acting as cheerleaders for companies; and management are incentivised to talk up their story.

So, it’s not for everybody. If you want to successfully short companies, you must know your facts. You need to have a lot of patience. And it can be a lonely experience.

MF: Has the outlook for shorting ASX shares changed with the re-emergence of inflation?

KR: The next five years could be very different from the previous five years we’ve just experienced, where shorting could really come into its own. Previously each hiccup from the pandemic all the way back to the GFC has been met with central banks coming to the market’s rescue.

This time around, the one big difference is inflation. And central banks have been very hardnosed in ensuring that interest rates are going higher and inflation is removed from the system.

So, this time around, we don’t think there will be life jackets thrown out by central banks anytime soon. Until they get inflation under control, we think markets are going to continue coming under pressure.

Which provides a very interesting environment for shorting ASX shares.

MF: Are there any specific short investments on the ASX you can share with us?

KR: One long-standing short of ours is Adbri Ltd (ASX: ABC). It’s a cement, lime and concrete producer for the building and construction industries.

Its earnings have been impacted by flooding and rain. And the wet weather is forecast to persist. Labour and energy costs continue to rise, which is leading to a margin squeeze. Returns are under pressure from increasing competition in the New South Wales and Queensland markets. And finally, cement is a very carbon-intensive industry. We estimate around 6% to 7% of global emissions comes from the cement industry.

The short has done exceptionally well. Adbri’s down around 50% this calendar year.

MF: What is your current exposure to the market?

KR: Our exposure to the market is currently around 65% net long. But it hasn’t always been like that. We’ve only recently lifted this from a market neutral position, after the market drew down in September.

The reason we did that is we wanted to take advantage of the improved risk-reward balance that was on offer. We believe the rally we’ve seen so far this month, which might persist in the short term, is a bear market rally. We don’t believe the bottom has been seen.

Investors have to be very mindful that positioning is extremely bearish at present. Bank of America Corp (NYSE: BAC) publishes a survey, for decades now, and it highlights where investors are positioned. Across sectors and also across asset classes.

It really illustrates how conservatively positioned investors are right now. It’s, in fact, at extreme levels. And whenever you get in a situation where investors are positioned in one direction, markets tend to surprise everyone by moving in the opposite direction.

MF: How do you see the ASX and US markets evolving over the coming months?

KR: Valuations have compressed over the last nine months, but we think earnings forecasts are too high going into calendar year 2023. If you look at US earnings forecasts, earnings are expected to rise 8% next year and a further 9% in calendar year 2024. But we’re starting to see corporate earnings roll over in the US.

There was a very disappointing result recently by FedEx Corporation (NYSE: FDX). It missed its earnings by 30%. Its share price sold off 20% shortly thereafter. I think that’s a very important signpost for global growth because of the industry it’s in, the handling and distribution of goods and its reach across the globe,

In addition, we’ve also had Dow Inc (NYSE: DOW), Nike Inc (NYSE: NKE), and Carnival Corp (NYSE: CCL) in the US report disappointing results.

In Australia, we’re right now in AGM season. And we’ve recently seen profit downgrades by Magellan Financial Group Ltd (ASX: MFG), St Barbara Ltd (ASX: SBM), Appen Ltd (ASX: APX), Adbri, and Costa Group Holdings Ltd (ASX: CGC), just to name a few.

But so far, earnings have held up much better in Australia than we have seen overseas. Perhaps the earnings downgrades are still ahead of us. We would expect our net exposure will likely come down early in the new year.

**

Tune in tomorrow for part three of our interview, where Kristiaan Rehder unveils three S&P/ASX 200 Index (ASX: XJO) shares he’s confidently long on. If you missed part one, you can find that here.

(You can find out more about the Bennelong Kardinia Absolute Return Fund here.)

The post What to consider when shorting ASX shares in a bear market: fund manager appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 shares could benefit from the federal budget?
• Here are the top 10 ASX 200 shares today
• Why Adbri, Rio Tinto, St Barbara, and Whitehaven Coal shares are dropping today
• Why Adbri, Costa, Hawsons Iron, and Medibank shares are sinking today
• What caused this ASX 200 share to crash 20% on Monday?

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 Appen Ltd and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Carnival. The Motley Fool Australia has recommended COSTA GRP FPO and Nike. 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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If you’re looking for dividend options, then you may want to check out the two that Morgans rates as buys.

Here’s what the broker is saying about these ASX 200 dividend shares right now:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that has been tipped as a buy by the broker is insurance giant QBE. Morgans currently has an add rating and $14.93 price target on its shares.

Its analysts are very positive on the company due to rising premiums and cost reductions. They commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE

Morgans expects this to lead to a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.01, this equates to yields of 3.45% and 6.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that Morgans is positive on is mining giant South32. It currently has an add rating and $5.30 price target on the company’s shares.

Morgans is a fan of the company due to its portfolio transformation and favourable dividend policy. It commented:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

As for dividends, the broker is expecting fully franked dividends per share of 22.7 cents in FY 2023 and 21.2 cents in FY 2024. Based on the current South32 share price of $3.60, this will mean yields of 6.3% and 5.9%, respectively.

The post Morgans names the ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Why did the South32 share price take a beating on Tuesday?
• Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Why is the BHP share price leaping 4% on Monday?

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 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 6,798.6 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise again on Wednesday after another solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.8% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.1%, the S&P 500 is up 1.7%, and the Nasdaq is up 2.3%.

Oil prices mixed

Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.5% to US$85.01 a barrel and the Brent crude oil price has risen 0.25% to US$93.03 a barrel. A softer US dollar boosted WTI oil.

Coles Q1 update

The Coles Group Ltd (ASX: COL) share price will be in focus today when the supermarket giant releases its first quarter update. According to a note out of Goldman Sachs, its analysts are expecting Coles to report a 2.5% increase in Supermarket same store sales but a 1% decline in liquor same store sales.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.3% to US$1,658.6 an ounce. Gold rose thanks to weakness in the US dollar.

Woolworths AGM

Woolworths Group Ltd (ASX: WOW) is holding its annual general meeting on Wednesday and could provide a trading update to the market. Goldman Sachs is expecting the retail giant to have performed better than Coles and is forecasting first quarter Australian Supermarket same store sales growth of 3%.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Is buying CSL shares right now a smart move?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Send in the drones: Why is the Coles share price taking off today?

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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If you have room in your portfolio for a blue chip ASX 200 share or two, then take a look at the top blue chips listed below.

Here’s why these ASX 200 shares are highly rated:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group.

It is an industrial property company with a world class portfolio comprising warehouses, large scale logistics facilities, and business and office parks. These properties are in demand and count some of biggest companies in the world as tenants.

But management isn’t settling for that. The company has a material development pipeline that looks set to drive further solid growth in the coming years.

And with demand remaining strong, Goldman Sachs is bullish on the company. It commented:

GMG continues to demonstrate its strong platform and positioning as evident in today’s [FY22] result, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space.

Goldman has a buy rating and $25.40 price target on the company’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 blue chip share that is rated highly by analysts is telco giant Telstra.

For example, Morgans is very positive on the telco giant due to the company’s increasingly positive outlook and attractive valuation. It recently commented:

TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.

Morgans has an add rating and $4.60 price target on Telstra’s shares. The broker is also forecasting fully franked dividend yields greater than 4% over the coming years.

The post Analysts say these high quality blue chip ASX 200 shares are buys appeared first on The Motley Fool Australia.

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More reading

• Here’s how I allocate my ASX share portfolio and why
• Headwinds for Telstra shares are now behind them: expert
• Which ASX 200 shares could benefit from the federal budget?
• 5 ways to be carefree during the next ASX share market downturn
• Could chasing high yields mean missing out on potentially top-notch ASX dividend shares?

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 Telstra Corporation 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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Analysts at Wilsons have put the spotlight on one All Ordinaries Index (ASX: XAO) share it prefers over the Polynovo Ltd (ASX: PNV) share price.

Polynovo shares fell 3.23% today to $1.98. For perspective, the All Ordinaries Index climbed 0.22% today.

Let’s take a look at which share the team at Wilsons recommends.

What do analysts recommend?

Wilsons analysts believe Aroa Biosurgery Ltd  (ASX: ARX) is the “best-value growth wound care on the ASX”. Aroa shares soared 10% today.

Following a review of the sector, analysts highlighted they like Aroa’s growth outlook and earnings base. In quotes cited by the Financial Review, analysts Dr Shane Storey and Dr Melissa Benson said:

Valuation analysis highlights that ARX’s three-year revenue growth outlook is almost identical to PNV, yet it trades at multiples (EV/Revenue, EV/EBITDA) >3 times lower than PNV.

The earnings diversification of Aroa’s business provides stability and growth levers that its peers (PNV, Avita Medical Inc (ASX: AVH) do not have afforded to them in the US market.

Aroa highlighted in today’s half-year report it is continuing to build its USA sales team. The company has 35 direct US sales representatives.

Revenue lifted 44% on the prior corresponding period to NZ$28.8 million. The company has now upgraded its FY23 revenue guidance from NZ$51-55 million to NZ$62-64 million. The company expects its EBITDA to break even in FY23.

Meanwhile, Polynovo advised today it has received registration approval for its NovoSorb BTM product in Canada. CEO Swami Raote said:

This registration puts us well on our way to accelerating our global impact.

Aroa share price snapshot

The Polynovo share price has soared 28% in the year to date, while Aroa shares have lost 13%.

For perspective, the All Ords has shed 10% in the year to date.

Polynovo has a market capitalisation of nearly $1.3 billion, while Aroa’s market cap is $303.3 million.

The post The ASX All Ords share that’s a better, cheaper buy than Polynovo: Wilsons appeared first on The Motley Fool Australia.

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More reading

• Why Aroa Biosurgery, Cettire, Estia Health, and Weebit Nano shares are rising
• Monday sell-off: Another ASX 300 director goes on a bargain share-buying spree
• Top brokers name 3 ASX shares to buy next week
• Crashing 20% since mid-August, this ASX 300 share is now ‘undervalued’: expert
• Why Lake, Pilbara Minerals, PointsBet, and PolyNovo shares are charging higher

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 positions in and has recommended POLYNOVO FPO. 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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This year has been a very volatile time for investors. But would a portfolio of S&P/ASX 200 Index (ASX: XJO) high-yield dividend shares have been a way to cushion the blow of share market declines?

Sometimes a high dividend yield can be a trap. The last 12 months of dividends may have been high, but could it signal that a cut is coming in the next 12 months? Sometimes it does.

A high dividend yield can also be achieved if an ASX share has a particularly low price/earnings (p/e) ratio and/or a particularly high dividend payout ratio.

Let’s go back in time to the beginning of the 2022 calendar year and look at some of the highest-yielding ASX 200 dividend shares and see how they performed in total return terms. That’s the dividend return plus the share price return.

New Hope Corporation Limited (ASX: NHC)

The coal miner has been on an amazing run this year. The New Hope share price has risen by around 190% in 2022. It has benefited enormously from the big increase in the coal price as the world has sought energy sources away from Russia.

New Hope is supplying coal to a number of countries, sending its net profit after tax (NPAT) soaring. This, in turn, has enabled it to pay very large dividends. We saw this in the company’s FY22 result.

In 2022, it has also declared total dividends of 86 cents per share. Using the New Hope share price at the start of the year, that dividend equates to a dividend yield of 38.5% excluding franking credits.

This means that the total return from New Hope has been approximately 230% in 2022.

Magellan Financial Group Ltd (ASX: MFG)

It has been a rough time for the fund manager Magellan. It may have entered the year with a large dividend, but investors have not benefited.

As at market close on Tuesday, the Magellan share price has fallen by 47% in 2022 so far. Ouch.

Not only have inflation and higher interest rates hurt Magellan’s portfolios, but the fund manager has also seen investors pull out many billions of dollars. This reduces profitability and has led to analysts expecting that more FUM will be withdrawn.

At 31 December 2021, Magellan had $95.5 billion of FUM. By 30 September 2022, the FUM had fallen to just $50.9 billion.

The total dividend was reduced by 15% to $1.79 per share. Using the Magellan share price at the start of the year, that translates to a dividend yield of 9.5%, excluding franking credits. That puts the total return at minus 37.5%.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of Australia’s largest miners. Investor sentiment about the business often moves with the iron ore price, which has been reducing in recent months.

So, while the Fortescue share price has been higher than the current price several times over 2022, it is currently down 18% for the year with elevated uncertainty about the Chinese — and global — economy.

However, Fortescue is known as a big ASX 200 dividend share. On that front, it has still paid big money to shareholders this year, totalling 12.7% in yield terms, excluding franking credits.

Fortescue’s total shareholder return was approximately minus 5%.

Foolish takeaway

I think the above returns go to show that it has been a mixed bag for high-yielding ASX 200 dividend shares this year. Coal has been the clear winner, so New Hope can take a bow.

The post Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022? appeared first on The Motley Fool Australia.

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More reading

• Why ‘other stocks appeal more’ than Fortescue shares: expert
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Why is the Fortescue share price surging today?
• Here are 3 ASX All Ords shares turning ex-dividend this week
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends

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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One investment option that continues to grow in popularity with investors is exchange traded funds (ETFs).

And it certainly isn’t hard to see why they are so popular! As well as being an easy way to invest your hard-earned money, they provide you with investment opportunities that were unattainable a decade ago.

With that in mind, listed below are two high quality ETFs that could be top buy and hold options for investors. Here’s what you need to know about these super ETFs:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a great buy and hold option for investors is the BetaShares NASDAQ 100 ETF.

This hugely popular ETF aims to track the performance of the NASDAQ-100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market and includes many of the largest companies in the world.

Among the companies you’ll be buying a slice of with the ETF are global giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

Given their positive long term outlooks, they could make the ETF a great addition to a portfolio. Particularly after the significant weakness on the Nasdaq index this year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to consider as a buy and hold investment is the VanEck Vectors Morningstar Wide Moat ETF.

This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages. The latter has proven to be a great quality for successful investments, which explains why Warren Buffett looks for them when he picks his investments.

At present, there are around 50 US based stocks included in the fund. This includes high quality companies such as Amazon, Berkshire Hathaway, Intel, Microsoft, Walt Disney, and Wells Fargo.

The post 2 super ETFs for ASX investors to buy and hold appeared first on The Motley Fool Australia.

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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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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 S&P/ASX 200 Index (ASX: XJO) posted a gain for a second consecutive day on Tuesday. The index closed 0.28% higher at 6,798.6 points.

That was despite the market’s major sectors posting a daily loss.

The S&P/ASX 200 Energy Index (ASX: XEJ) fell 1.6% amid lower oil prices.

The Brent crude oil price slipped 0.3% to US$93.26 a barrel overnight while the US Nymex crude oil price dropped 0.6% to US$84.58 a barrel.

It was also a rough day for the S&P/ASX 200 Materials Index (ASX: XMJ), which slumped 1.2% following yesterday’s 2.5% gain.

However, their falls were offset by the ASX 200’s remaining nine sectors, which all gained as the federal government prepared to hand down its budget tonight.

The S&P/ASX 200 Real Estate Index (ASX: XRE) and the S&P/ASX 200 Communications Index (ASX: XTJ) led the way, lifting 1.7% and 1.6% respectively.

But which ASX 200 share outperformed all others on Tuesday? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top performing stock was Sayona Mining Ltd (ASX: SYA). Shares in the lithium favourite lifted nearly 11% despite no news having been released by the company.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Sayona Mining Ltd (ASX: SYA)	$0.26	10.64%
Credit Corp Group Limited (ASX: CCP)	$18.43	7.9%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.08	5.32%
St Barbara Ltd (ASX: SBM)	$0.495	5.32%
Core Lithium Ltd (ASX: CXO)	$1.47	5%
Liontown Resources Limited (ASX: LTR)	$1.97	4.79%
Flight Centre Travel Group Ltd (ASX: FLT)	$15.85	4.21%
Kelsian Group Ltd (ASX: KLS)	$4.68	4%
Shopping Centres Australasia Property Group (ASX: SCP)	$2.56	3.64%
Breville Group Ltd (ASX: BRG)	$19.43	3.24%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• Which ASX 200 shares could benefit from the federal budget?

Motley Fool contributor Brooke Cooper 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 Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended Flight Centre Travel 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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How one allocates their own ASX share portfolio is obviously a very personal decision. We are all different people and investors, with different goals, risk tolerances and personalities. One ASX share might be right for one investor, and wrong for another.

For example, a retiree may appreciate the high dividends that an ASX bank share like Westpac Banking Corp (ASX: WBC) doles out. But a younger investor might wish to go for something with a bit more of a growth profile.

There’s no right way to invest when it comes to shares (although there are many wrong ways).

With all this in mind, let’s discuss how I allocate my own share market portfolio. As discussed above, this is what works for me, and my own strengths and weaknesses.

Now, I have many many different holdings across my portfolio. So I won’t discuss all of them. But I will touch on some theses and strategies that I tend to follow, and explain why.

ASX shares, dividends and franking credits

So to start with, I own a mix of ASX and US shares. This is for many reasons. I love the franking credits and local knowledge that makes ASX investing so rewarding.

But I also love the currency, geographic and economic diversity that comes from investing in the United States. What’s more, most of the best companies in the world call the US home.

My selection process is a rather simple one: I look for quality companies, usually with a strong brand, that have demonstrated competency and resiliency over a long period of time.

Let’s start with the ASX shares. So I do like a share that pays dividends, preferably those of the fully franked variety. One of my oldest holdings is Telstra Corporation Ltd (ASX: TLS).

I bought Telstra back in 2018 when it was trading for under $2.80 a share. The market hated it then, but I saw a company with a dominant brand providing an essential service. I continue to hold it today for those same reasons.

Another ASX share that is a long-term favourite of mine is National Australia Bank Ltd (ASX: NAB). NAB doesn’t have the pricing premium that Commonwealth Bank of Australia (ASX: CBA) does. But I still think it is one of the best-run ASX banks.

My favourite ASX share, though, is Washington H. Soul Pattinson and Co Ltd (ASX: SOL). I’ve discussed my love of Soul Patts before. But quite simply, it is a diversified market beater with an unmatched dividend record.

Looking across the pacific for my portfolio

Turning to US shares, and again my preference is strong brands and a proven track record. That’s why my US shares include names like Apple, Microsoft, Mastercard, Alphabet, Nike and Amazon.

Tesla Inc (NASDAQ: TSLA) is another company that I own. When I first invested in the electric car maker, it was one of my riskier shares. But I have been delighted to see the company grow in size and scale (not to mention value).

Most of my other US shares are within the consumer staples sector. I love the resilience and stability that these kinds of shares can add to a portfolio, as well as the dividends, of course. Among my favourites are Coca-Cola, Pepsi, Starbucks and McDonald’s.

Many of these companies have made a habit of raising their dividend every single year, so I have enjoyed watching my dividend income inch up steadily over the years.

So that’s my ASX share portfolio in a nutshell and why I own the companies that I do. As I said, it may not be for everyone. But it works for me and my goals. And I sleep soundly every night. What more could one ask for?

The post Here’s how I allocate my ASX share portfolio and why appeared first on The Motley Fool Australia.

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More reading

• Headwinds for Telstra shares are now behind them: expert
• Which ASX 200 shares could benefit from the federal budget?
• This famous investor is buying Tesla shares again. 3 reasons you should too
• Set for life: 5 ASX dividend shares I’d invest in if I ever had a million-dollar windfall
• Why Tesla stock tanked today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Coca-Cola, Mastercard, McDonald’s, Microsoft, National Australia Bank Limited, Nike, PepsiCo Inc., Starbucks, Telstra Corporation Limited, Tesla, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mastercard, Microsoft, Nike, Starbucks, Tesla, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mastercard, Nike, and Starbucks. 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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