The A2 Milk Company Ltd (ASX: A2M) share price didn’t join in the broader market rally in October.

Shares in the fresh milk and infant formula company closed out September trading for $5.40 and finished October swapping hands for $5.26 apiece.

That puts the A2 Milk shares down 2.6% over the month just past, while the S&P/ASX 200 Index (ASX: XJO) managed to gain 6%.

Here’s what happened.

What happened in October?

The A2 Milk share price had a solid start to the month.

On 3 October, the company reported it had renewed its import and distribution arrangements with China State Farm Agribusiness Holding Shanghai (CSFA). The renewed agreement runs for a period of five years.

A2 Milk has partnered with CSFA since 2013 to import its China product labels.

The A2 Milk share price gained 5.1% the following day, 4 October.

But shares edged lower or traded flat over the following days, despite A2 Milk commencing its share buyback on 5 October.

Splashing out NZ$150 million (AU$163 million), the company intends to buy back some 37.2 million shares over a 12-month period at market prices.

However, as my Fool colleague James Mickleboro noted at the time, the commencement day of the buyback doesn’t mean the company is obliged to buy shares. Indeed, it can “suspend without notice or vary or terminate the buyback program at any time”.

A2 Milk shares dropped another 1% on 25 October. That was when the company announced the pending departure of its chief operations officer, Shareef Khan. Khan started with the company in 2012.

How has the A2 Milk share price performed in 2022?

While the A2 Milk share price underperformed the benchmark in October, the company is still outperforming over the calendar year.

Since the opening bell on 4 January, A2 Milk shares are down 3% compared to a 9% loss posted by the ASX 200.

The post Why did the A2 Milk share price go backwards in October? appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, New Hope, Perpetual, and Talga shares are charging higher
• It’s not all bad news for ASX All Ords shares today. Here are some big winners

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 recommended A2 Milk. 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 team at Morgans has been busy again picking out its best ASX share ideas for the month of November.

These are the shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The first three shares we looked at can be found here. Read on for the next two:

Santos Ltd (ASX: STO)

Morgans believes that Santos could be a top option for investors looking at the energy sector. Its analysts like the energy producer due to its strong growth prospects and diversified earnings base. The broker said:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

Morgans currently has an add rating and $9.40 price target on Santos’ shares.

Westpac Banking Corp (ASX: WBC)

This banking giant has been added to the broker’s best ideas list this month. The broker likes Westpac due to its return on equity improvement potential, cost reduction targets, and attractive dividend yields. It explained:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Morgans has an add rating and $26.68 price target on Westpac’s shares.

The post Morgans names 2 more of the best ASX shares to buy in November appeared first on The Motley Fool Australia.

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More reading

• Own Westpac shares? What to expect from next week’s FY22 results
• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• The Westpac share price soared 17% in October, what’s next?
• 5 things to watch on the ASX 200 on Thursday
• Up 14% in a month, why the ANZ share price can keep delivering: Citi

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) has delivered more than packages over the years — it’s delivered investors huge long-term gains. The e-commerce giant has increased more than 700% over the past decade, for example.

That’s all of the bad news. Now let’s turn to the good news. The first thing to remember is today’s environment of rising inflation and economic woes is temporary. The situation is difficult for Amazon today, but the company has the resources to weather the storm.

Amazon’s revenue has continued to rise throughout these tough times. In the third quarter, net sales climbed 15%. And though AWS revenue growth has slowed, AWS still is increasing revenue and operating income in the double digits.

A stronger cost structure

The company also has made progress on cutting costs across its fulfillment network — and says it’s working on a “stronger cost structure”, which should be a big plus over the long term. All of these efforts may buoy Amazon until the economic situation improves.

It’s also important to remember Amazon is a leader in two growth businesses. E-commerce and cloud computing services are forecast to grow in the double digits over the coming years. Amazon surely will benefit from this.

The company’s efforts to attract more and more Prime subscription-service members are working. Prime’s recent NFL Thursday Night Football premiere sparked the three biggest hours of U.S. Prime sign-ups ever. And AWS continues to expand its infrastructure globally.

Now let’s look at Amazon’s share price. The stock is trading at less than two times sales. This is its lowest by that measure in about six years. At the same time, the company continues to grow its Prime subscription service and e-commerce revenue. And AWS remains a key strength. Historically, it’s driven Amazon’s total operating income.

As mentioned above, Amazon has what it takes to make it through today’s rough patches — and thrive in the long term. That’s why, at today’s level, Amazon shares look like a deal — and one that investors should consider buying on any dips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should investors buy the dip on Amazon stock? appeared first on The Motley Fool Australia.

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More reading

• Amazon is proving why it’s a Buffett stock
• Is Amazon stock a buy now?
• Why Amazon is plunging today
• Does the Vanguard International Shares ETF contain ‘good’ quality companies?
• Amazon stock just tanked. Could this be a canary in the coal mine for ASX 200 retail shares?

 Adria Cimino has positions in Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. 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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Telstra Corporation Ltd (ASX: TLS) shares have had an interesting month. The company has just completed a major corporate restructuring which saw Telstra shares briefly change their ticker code from TLS to TLSDA. Thankfully for traditionalists, all is right with the world again now Telstra is back to the good old TLS.

But investors have historically bought Telstra shares with the expectation of consistent and high dividend income. The company has even increased its annual dividend payments this year, the first time investors have seen a shareholder pay rise in six years.

So with all of this in mind, what kind of dividend income can an investor expect today from the Telstra share price?

What is the current yield on Telstra shares?

Well, Telstra’s last two dividend payments were the April interim dividend worth 8 cents per share, and the final dividend worth 8.5 cents per share that was paid out in September.

That last dividend contained the pay rise that investors craved for so long. As is typical with Telstra, both dividends came with full franking credits.

So given the Telstra share price has closed at $3.90 on Friday (down 1.02%), these two dividends give the telco a trailing dividend yield of 4.23%. That grosses up to an even more impressive 6.04% if we include the value of those full franking credits.

That means that if an investor bought $100,000 worth of Telstra today, they could expect an annual income of $4,230, plus franking, from their new shares.

As we discussed earlier this week, that dividend yield is not the highest Telstra shares have ever traded at. At one point in this telco’s history, its trailing dividend yield reached as high as 10%. But it is still a pretty good return on one’s capital today by ASX standards.

The post What is the current dividend yield on Telstra shares? appeared first on The Motley Fool Australia.

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More reading

• Morgans names 3 of the best ASX 200 shares to buy in November
• Here are the top 10 ASX 200 shares today
• How did the Telstra share price fare over October?
• Telstra ASX code roadmap: what it was, what it is, and what it will be
• Top ASX shares to buy in November 2022

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 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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