The Commonwealth Bank of Australia (ASX: CBA) share price hasn’t done that well compared to some other ASX bank shares.

Looking at the returns, in 2022 the CBA share price has gone up 0.40%.

Let’s put this into context. The S&P/ASX 200 Index (ASX: XJO) dropped around 7% over the year.

It has certainly done better than the ASX 200. The bank has also outperformed some of the other bank shares.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has dropped around 14%.

But, the Westpac Banking Corp (ASX: WBC) share price has risen by 8% and the National Australia Bank Ltd (ASX: NAB) share price has gone up 2.2%.

It has been a mixed bag for other ASX bank shares as well. The Bank of Queensland Limited (ASX: BOQ) share price has fallen more than 16%, the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has climbed around 6% and the MyState Limited (ASX: MYS) share price has fallen 22%.

2022 was a mixed year

In the first half of the 2022 calendar year, CBA was having to deal with sinking profit margins. The bank reported that in FY22, its net interest margin (NIM) had fallen to 1.9%, after an 18 basis point drop. This was due to a “large increase in low yielding liquid assets and lower home loan margins” amid the record low interest rate.

Despite that, the bank was able to report an 11% increase in cash net profit after tax (NPAT) to $9.6 billion thanks to “operational performance and volume growth in core businesses”.

Impressively, the business reported 7.4% growth of home lending and 13.6% growth of business lending.

The profit growth enabled a 10% increase of the annual dividend to $3.85 per CBA share.

Rising interest rates

In the bank’s outlook statement in the FY22 result, it said that Australian households and businesses are in a “strong position given low unemployment, low underemployment, and strong non-mining investment”.

While it warned of the negative impact of higher interest rates on consumer confidence, the business told investors that it expected its lending profit margins to increase in the rising interest rate environment.

Indeed, in the FY23 first quarter, the largest ASX bank share was able to tell investors that its income rose 9%, which was helped by higher margins and volume growth. However, cash net profit only grew by 2%.

In that quarter, CBA saw home lending grow by 6.3%, while business lending jumped 12.6%.

How could 2023 go?

I think that CBA is going to report a sizeable increase in profitability in 2023. The rising interest rates could be a very helpful boost to profit.

CBA noted in its FY23 first quarter update that “portfolio credit quality remained sound, with favourable trends in key credit quality indicators”.

I believe that CBA shares will be able to grow its dividend again for investors in 2023.

Based on (independent) numbers on Commsec, CBA shares could offer a FY23 grossed-up dividend yield of 6.2%.

However, I also think it’s quite possible we could see an increase in the loan arrears. If some borrowers can’t absorb the higher interest rates, then this could lead to worsening arrears and then higher bad debts.

While I think the CBA profit will improve in FY23, I’m not sure whether the CBA share price will show as much improvement from here.

The post The CBA share price was nowhere near the best performing ASX bank share in 2022. What now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Westpac Banking. 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 Qantas Airways Limited (ASX: QAN) share price has had a turbulent existence on the ASX over the last decade.

The national carrier was hit hard by the global financial crisis, only managing to regain its footing a few years before the onset of the COVID-19 pandemic.

Still, long-term investors have likely been happy with their holding. The Qantas share price has taken off over the last decade, lifting a whopping 287% since 28 December 2012.

Back then, $1,000 likely would have seen an investor buy 632 shares in the airline, paying $1.58 apiece.

Today, that parcel would command a value of $3,861.52. The Qantas share price closed Friday’s session at $6.11.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted around 55% over the last 10 years.

Less fortuitous have been dividend-focused Qantas investors. Here’s how much passive income a long-term shareholder has likely received from the airline share.

How much have Qantas shares paid in dividends in 10 years?

Here are all the dividends Qantas has offered since December 2012:

Qantas dividends’ pay date	Type	Dividend amount
September 2019	Final	13 cents
March 2019	Interim	12 cents
October 2018	Final	10 cents
April 2018	Interim	7 cents
October 2017	Final	7 cents
April 2017	Interim	7 cents
October 2016	Final	7 cents
Total:		63 cents

As the above chart alludes, Qantas didn’t pay dividends between 2009 and 2016. It then halted its offerings amid the emergence of the pandemic.

Meanwhile, the company hasn’t operated in the green since the financial year 2020, wherein its underlying profits tumbled 91%.

Over the last decade, Qantas shares have paid out 63 cents per share to investors.

That means our figurative $1,000 investment would have yielded $398.16 in dividend income over its life. That’s on top of a significant capital gain.

Long-term investors also likely benefited from a capital return – worth $505 million, equalling 23 cents per share – undergone by Qantas in 2015, as well as numerous on-market share buybacks conducted over the years.

And there’s apparently good news on Qantas’ horizon. The airline expects to return to profit in the first half of financial year 2023.

The post Bought $1,000 of Qantas shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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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 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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Stock market crashes are events that most investors don’t find pleasant. There’s a part of human nature that simply abhors seeing the value of one’s investments drop substantially outside the investors’ control. But if there is a stock market crash this year, I’ll be champing at the bit to boost my passive income.

Why? Well, stock market crashes typically send the value of all shares, not just weak ones, down the gurgler. Just take a look at what happened to the S&P/ASX 200 Index (ASX: XJO) during the COVID crash of 2020. Or the global financial crisis of 2008.

But this can be a massive buying opportunity, especially for dividend investors.

Stock market crashes are dividend blessings in disguise

See, the dividend yield an investor can expect is a function of two different inputs. The first is how much in dividends per share a company pays out. The second is the share price. Put simply, the lower a company’s share price is, the higher its dividend yield will be.

There are plenty of ASX shares that don’t tend to cut their dividends even in a recession or stock market crash. Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Washington H. Soul Pattinson and Co Ltd (ASX: SOL)… These are all ASX dividend shares that didn’t cut their payouts in 2020 or 2021.

But buying them during the COVID crash of 2020 could have been enormously beneficial to a dividend investor. Let’s look at why.

So in 2019 and 2020, Telstra paid out an annual dividend of 16 cents per share. In early 2020, Telstra shares were trading at $3.90 apiece. A 16 cents per share annual dividend would have given Telstra investors a dividend yield of 4.1% at this share price. But by May 2020, Telstra shares had crashed to around $2.99.

If an investor bought Telstra shares then, they would instead enjoy a dividend yield of 5.35%.

Telstra has since upped its annual dividends to 16.5 cents per share in 2022. That would boost the yield on cost of our investor who bought Telstra shares for $2.99 to 5.52% today.

So this is how a dividend income investor can boost their passive dividend income in a stock market crash. It’s certainly the strategy I’ll be trying to employ if there is a stock market crash in 2023.

The post How I’d use a stock market crash to boost my passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Washington H. Soul Pattinson and Company 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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It certainly was an eventful and successful year for BHP Group Ltd (ASX: BHP).

The Big Australian’s shares recorded a 10% gain over the 12 months.

But, as you can see below, it certainly wasn’t a smooth ride for the BHP share price.

Here are three pivotal moments impacting BHP shares last year.

BHP scraps UK listing

The first pivotal moment in 2022 was in January when BHP shareholders voted overwhelmingly in favour of its unification.

The BHP board believed that unification was in the best interests of shareholders as it would result in a corporate structure that is simpler and more efficient, reduce duplication, and streamline governance and internal processes.

It also expected the unified structure to improve flexibility for portfolio reshaping to maximise shareholder value over the long-term. This leads us onto pivotal moment two.

Petroleum demerger

Following the unification, BHP decided to push ahead with the demerger of its petroleum business to Woodside Energy Ltd (ASX: WPL).

BHP’s CEO, Mike Henry, explained the rationale for the divestment. He said:

Merging our petroleum business with Woodside creates a large, more resilient company, better able to navigate the energy transition and grow value while doing so. Through the merger we will provide value and choice for BHP shareholders, and unlock synergies in how these assets are managed.

The fact that the BHP share price still outperformed the market despite divesting a large portion of its business demonstrates just how successful its year was.

OZ Minerals acquisition

A final pivotal moment came at the end of the year when the mining giant announced an agreement to acquire OZ Minerals Ltd (ASX: OZL) for $9.6 billion.

While the deal is yet to complete, if it does, BHP’s CEO, Mike Henry, expects it to unlock opportunities that wouldn’t otherwise be possible. He commented:

The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.

Here’s hoping that 2023 will be equally successful for BHP shares and shareholders.

The post 3 pivotal moments you might have missed for BHP shares in 2022 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 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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