With earnings season in full swing, brokers have been running the rule over a large number of ASX 200 shares.

Two blue chip shares that have been named as post-results buys are listed below. Here’s what you need to know about these shares:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that has been tipped as a buy following its results release is Goodman.

It is leading industrial property company with a world class portfolio of assets that are in-demand with end users across the globe.

In response to its strong half-year results, Citi has retained its buy rating and $24.00 price target. The broker believes that strong demand will drive earnings growth for the foreseeable future. It commented:

GMG’s 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. Higher than expected FUM, record development margins this period (~100%) and increased potential for rental reversion should support overall earnings growth into the future. Debt costs may be higher but lower gearing ensures limited impact to this. We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share that has been named as a buy this week is Seek.

It is of course the job listings giant behind the eponymous Seek website, as well as several international equivalents.

Morgans was pleased with its performance in the first half and has recommended it as a post-results buy. Its analysts commented:

SEK’s 1H23 result was ~2% ahead of Visible Alpha consensus at the topline (revenue of ~A$627m, +21% on pcp), with EBITDA of ~A$283m (+13% on pcp) in line and NPAT excluding significant items (A$135m, +9% on pcp) ~4% ahead. It was broadly a positive result, in our view, however job ad volume growth moderating in 2H23 (particularly ANZ), whilst not unexpected, looks to be a factor in guidance being set at the lower end of previously flagged ranges.

Morgans has retained its add rating with a trimmed price target of $28.40.

The post These blue chip ASX 200 shares are post-results buys: experts appeared first on The Motley Fool Australia.

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More reading

• Seek share price swings wildly amid first-half results release
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts
• How to generate passive income the Warren Buffett way with ASX shares
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• Why experts say these ASX 200 blue chip shares are buys

Motley Fool contributor James Mickleboro has positions in Seek. 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 Goodman Group and Seek. 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 Rio Tinto Ltd (ASX: RIO) share price will be one to watch on Thursday.

That’s because the mining giant has just released its full-year results after the market close.

Rio Tinto share price on watch following results release

• Revenue down 13% to US$55,554 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 30% to US$26,272 million
• Net profit after tax down 41% to US$12,420 million
• Fully franked final dividend down 46% to US$2.25 per share

What happened during FY 2022?

For the six months ended 31 December, Rio Tinto reported a 13% decline in revenue to US$55,554 million and a 41% reduction in net profit after tax to US$12,420 million.

Management advised that this reflects the movement in commodity prices, the impact of higher energy and raw materials prices on its operations, and higher rates of inflation on operating costs and closure liabilities.

In addition, the company recorded an effective tax rate on net earnings of 30.9% compared with 27.7% in 2021, with the increase being primarily due to the $0.8 billion write down of deferred tax assets in the United States.

In light of this profit decline, the mining giant’s board has declared a final dividend of US$2.25. This brings its full-year dividend to US$4.92, which is down 38% from US$7.93 per share a year earlier.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting Rio Tinto to report underlying EBITDA of US$26.8 billion versus the consensus estimate of US$26.7 billion.

On the bottom line, Goldman was forecasting a net profit after tax of US$12.9 billion, compared to the consensus estimate of US$13.7 billion.

Finally, it was expecting this to lead to a fully franked full year dividend of US$4.64 per share, whereas the market was expecting a US$4.92 per share dividend.

As you can see above, Rio Tinto has missed on these earnings metrics but is in-line with the market’s dividend estimate.

Management commentary

Rio Tinto’s CEO, Jakob Stausholm, was pleased with the work the company did in FY 2022. He said:

We are building a stronger Rio Tinto and delivering against our four objectives. Our operational performance has improved, as evidenced by a number of second half records being set at our Pilbara iron ore mine and rail system. We are also investing for the future, doubling our stake in the Oyu Tolgoi copper-gold project in Mongolia through the acquisition of Turquoise Hill Resources, progressing the Rincon Lithium Project in Argentina and reaching milestone agreements that underpin the long-term success of our Pilbara iron ore business.

We continue to focus on making lasting change to strengthen our workplace culture and to building better relationships with Indigenous peoples, communities and other partners. At all times we will seek to find better ways, in line with our purpose. We clearly have more to do but I am encouraged by the progress we are making.

Outlook

Rio Tinto has reaffirmed the production and cost guidance it provided for FY 2023 with its fourth quarter update. This includes:

• Pilbara iron ore shipments of 320Mt to 335Mt
• Aluminium production of 3.1Mt to 3.3Mt
• Mined copper production of 650kt to 710kt
• Pilbara iron ore unit cash costs of US$21 to US$22.5 per wmt

The post Rio Tinto share price on watch amid FY22 results appeared first on The Motley Fool Australia.

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More reading

• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Passive income boost! 2 excellent high yield ASX dividend shares to buy: experts
• Should you dig into Rio Tinto shares before the ASX 200 miner reports next week?
• Why experts say these ASX 200 blue chip shares are buys
• Here’s the iron ore price forecast for 2023: CBA

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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Speculation is rife these days that the spectacular run of ASX lithium shares over the past few years may be over.

Probably not, if you ask these company directors.

They’ve just shelled out tens of thousands of dollars of their own money buying more shares in their ASX lithium companies.

Here are the details.

Galan Lithium Ltd (ASX: GLN)

Galan Lithium non-executive director Daniel Jimenez bought 105,000 shares on-market for $126,000 on 16 February.

According to the ASX change of director’s notice, the last time Jimenez bought Galan shares was in June 2022.

He now owns almost 2.45 million shares with a shares option of one million shares at 21 cents per share expiring in October this year.

Galan delivered an investor presentation at the recent RIU Explorers Conference in Western Australia.

Earlier this month, the company announced it had moved to 100% ownership of its Candelas lithium brine project in the Catamarca Province of Argentina.

Candelas has a JORC 2012 Resource of 685kt lithium carbonate (LCE) and a production capacity of 14,000 tonnes per year over 25 years of life, with an after-tax payback period of 4.75 years.

The Galan Lithium share price closed down 3.45% to $1.12 today. It is down 16% over the past 12 months but up 4.7% in the year to date.

Global Lithium Resources Ltd (ASX: GL1)

Global Lithium non-executive director Dianmin Chen purchased 30,000 shares on market for $53,100 via a family account on 16 February.

He now owns more than 5.53 million shares directly and about 4.3 million shares indirectly, according to the ASX notice.

Chen also has a juicy options contract for three million shares at $1 per share expiring in November 2024.

Global Lithium held an investor roadshow this week and also presented at the RIU Explorers conference.

In the latest news, Global Lithium revealed ‘compelling’ results in a scoping study of its Manna Lithium Project. Manna is located 100km east of Kalgoorlie in Western Australia.

Based on the results, the board has recommended that a definitive feasibility study should be conducted.

The Global Lithium share price closed down 3.93% to $1.59 today. It is up 16.5% over the past 12 months and down 13.8% in the year to date.

What’s going on with lithium prices?

Lithium carbonate prices in China have fallen to their lowest level in 12 months at US$61,289 per tonne.

This is 30% off their all-time high of US$87,038 per tonne recorded back in November.

Analysis from Trading Economics suggests stronger supply and expectations of poor demand means there might be a surplus of the mineral this year.

Fears of a global recession and the end of stimulus measures for Chinese battery manufacturers have impacted demand for electric vehicles.

The post 2 ASX lithium shares being bought up by company directors appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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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Anyone who has searched for inflation-beating passive income from ASX shares in recent times has at one stage or another likely considered BHP Group Ltd (ASX: BHP) and its dividends.

The resource titan has long been a provider of decent dividends. More so over the past five or so years. Although, if the company’s recent 40% interim dividend slashing is anything to go by, the days of near double-digit yields could be disappearing right before our eyes… at least for now.

That’s why I’d personally look elsewhere for large and growing dividends.

Where I’d go to find defensive dividends

A weakened economy induced by additional interest rate hikes could mean further deterioration in commodity prices. If so, this could put BHP’s dividend yield under further strain.

While the current yield of ~8% is still juicy as a passive income source, there’s every chance that it could trend back toward its pre-pandemic average of around 4.7%. The same could be said for other companies that are more influenced by the degree of consumer spending, including ASX retail shares, travel, etc.

Instead, I would look to companies operating in markets that are less sensitive to consumer sentiment. Some sectors that meet this condition in my eyes are transport, healthcare, and consumer staples. From there, it’s a matter of finding fundamentally strong businesses.

These ASX shares offer yields above 5%

The first two companies I’d consider buying instead of BHP for defensive passive income are Healius Ltd (ASX: HLS) and Metcash Limited (ASX: MTS).

Neither of these two will necessarily knock your socks off in terms of growth. However, both companies operate in industries that are relatively insulated from economic weakness.

Firstly, Healius is a provider of pathology and radiology services. Regardless of the state of the economy, if someone feels sick or breaks an arm they’ll need to make use of services made available by Healius. The ASX share currently offers a dividend yield of 5.5%, and if profits persist, there is potential for this to grow considering the modest payout ratio of 32%.

In a similar fashion, Metcash has a low reliance on the ebbs and flows of the economy. The $3.95 billion company operates food, liquor, and hardware stores; typically products that people ‘need’ rather than ‘want’.

Right now, Metcash provides a passive income of 5.5% as well. Though, this might mediate somewhat in the near term as its forecast payout ratio exceeds 100%. Nevertheless, a constant demand for food gives Metcash a level of protection for its future payments.

Trading off yield for defensiveness

The third and final ASX share I’d latch onto for income instead of BHP is Transurban Group (ASX: TCL). Unlike the others, I don’t foresee Transurban offering a better dividend than BHP any time soon. But what it lacks in yield it makes up for in its low risk.

In my opinion, Transurban is an incredibly defensive company. High upfront cost infrastructure is a quality moat, and Transurban’s toll roads are exactly that. It can cost billions to build these assets, but once constructed, a well-planned toll road has little in the way of competition.

Furthermore, this type of business is less sensitive to economic cycles — though some suggest otherwise. During the GFC, Transurban reported underlying growth as drivers continued to seek a shorter route.

At present, a 3.7% dividend yield is up for grabs in Transurban shares. This is still above the percentage available in the S&P/ASX 200 Index (ASX: XJO) when excluding the top 20 which is dominated by the banks and miners.

The post 3 ASX shares I’d buy for passive income instead of BHP’s declining dividend appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20K in ASX shares to target $1,000 in annual passive income
• Should I buy BHP’s shares after the ASX 200 miner’s latest update?
• The BHP dividend has been slashed by 40%. Here’s the lowdown
• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Why is the BHP share price tumbling today?

Motley Fool contributor Mitchell Lawler 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 Metcash. 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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