The ANZ Group Holdings Ltd (ASX: ANZ) share price has gone through a fair bit of pain over the last month. Could the ASX bank share be worth buying today?

Since 9 February 2023, it has dropped around 8%. That compares to a drop of 2.7% in the S&P/ASX 200 Index (ASX: XJO).

Commonwealth Bank of Australia (ASX: CBA) shares have fallen even further, dropping 11% in that time.

Investor sentiment about banks has taken a tumble, even though interest rates are expected to keep rising in the coming months.

Indeed, the Reserve Bank of Australia (RBA) leader Dr Lowe said in a statement that “the board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.”

Bank sector competition going crazy?

One of the main problems for the sector could be lower-than-expected profitability as lenders compete away some of the increased margins they’re experiencing. The CBA CEO Matt Comyn said last month:

The home lending market is undergoing a period of extreme change and intense competition.

Cash backs are growing in size and prevalence, and we estimate that banks have deferred costs relating to cash backs of over $1 billion. This figure has increased almost 50% in the past two years, and combined with a substantial increase in commissions over the same period, creates a margin headwind that will flow unevenly across the market.

ANZ had previously said that it expects to make billions more in net interest income over the next few years as its loan book sees fixed interest loans revert to variable loans and higher interest rates.

However, the potential boost to profit may be less than hoped because of the strong competition in the sector. This could be detrimental to the ANZ share price.

The tricky thing for ANZ and others is that if they don’t try to compete, they could lose some of the existing borrowers and fail to win new borrowers.

ANZ has already lost some ground in market share terms after having slow loan processing times during the COVID period. It doesn’t need another reason to fall behind rivals. The banking division of Macquarie Group Ltd (ASX: MQG) is quickly gaining market share, so that’s something else for owners of ANZ shares to keep in mind.

What’s the attraction of ANZ shares?

ANZ is currently trying to acquire the banking division of Suncorp Group Ltd (ASX: SUN). I’m not sure how much more this will add to earnings, the integration could prove to be a big distraction.

For me, the two most attractive things about ANZ are its low price/earnings (P/E) ratio and high dividend yield.

According to Commsec, the ANZ share price is valued at 10 times FY23’s estimated earnings with a possible grossed-up dividend yield of 9.6%. But, if ANZ doesn’t grow earnings then I don’t think the share price is going to go anywhere. It’s not my preferred pick in the sector, though the dividend yield does seem compelling.

The post Should I buy ANZ shares at almost $24? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Watch out CBA: This ASX 200 bank share is rapidly growing
• How did the ANZ share price manage to beat the other ASX 200 big-four banks in February?
• How I’d invest $200 a month in ASX shares to target a $1,000 passive income
• Why ANZ shares are this broker’s ‘top pick in the sector’
• Why is the ANZ share price tumbling on Wednesday?

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 Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3JLR8A6

If you’re looking to bolster your portfolio with some new ASX 100 shares, then you may want to consider the two listed below. Both have recently been named as buys by analysts.

Here’s what they have to say about these ASX 100 shares:

ResMed Inc. (ASX: RMD)

ResMed could be an ASX 100 blue chip share to buy. It is a medical device company which has a focus on sleep treatment solutions.

Over the last decade the company’s revenue and earnings have grown at a very strong rate thanks to the quality of its products and its large and growing market opportunity.

The good news is that due to its massive market opportunity in sleep apnoea, chronic obstructive pulmonary disease (COPD), and home healthcare, ResMed looks well-placed to continue its growth in the future.

Goldman Sachs believes this is the case and is forecasting a earnings per share compound annual growth rate (CAGR) of 11% through to FY 2026. It commented:

Whilst supply shortages and cost inflation mitigated the tailwind from these competitor challenges through FY22, we believe the benefits to RMD are significant, and could continue to accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, supporting a favourable earnings trajectory through the long term. We currently model an EPS CAGR of +11% (FY23-26E), with potential upside depending on how competitive/regulatory dynamics develop.

Goldman has a buy rating and $38.00 price target on ResMed’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 100 share that is rated highly is telco giant Telstra.

After years of earnings declines and dividend cuts, Telstra is back on form and growth is now on the agenda. This has been driven by the success of its transformational T22 strategy and will be supported by the growth-focused T25 strategy.

Morgans is very positive on the company due to favourable industry conditions and the potential for value to be unlocked from asset divestments. It said:

Telco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised. The last major mobile operator Vodafone/TPG increased mobile prices by ~$5 per month in January 2023 and all key players are behaving economically rational. This combines with catalysts including the potential for InfraCo value release following the legal restructure.

Morgans currently has an add rating and $4.70 price target on Telstra’s shares.

The post Brokers name 2 blue chip ASX 100 shares to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX investors: How to earn $533 each month in passive income
• An ASX 200 dividend heavyweight I’d buy over CBA shares right now
• How I’d invest $20,000 in ASX 200 shares to aim for a million
• Own Telstra shares? Here’s how the ASX 200 telco is raising $650 million

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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Yev05NE

The last 12 months have brought riches for those invested in these ASX mining shares.

Each of these companies has seen their share prices soar since this time last year, with one posting a whopping 486% gain.

So, which miners have provided such enviable returns? Let’s take a look.

4 ASX mining shares posting 150%+ gains in the last 12 months

The share price of lithium hopeful Winsome Resources Ltd (ASX: WR1) has been on a roll over the last 12 months, leaping 486% in that time to trade at $2.17.

The company is exploring and developing its four Canadian projects, Cancet, Adina, Sirmac-Clappier, and Decelles. Its stock has been bolstered by plenty of positive assay results in recent months.

Joining its ASX mining peer in the long-term green is rare eaths share Arafura Rare Earths Ltd (ASX: ARU). It’s gained 171% over the last 12 months to trade at 55.5 cents today.

It’s progressing with its Nolans Project, located in the Northern Territory. Hyundai and Kia signed offtake agreements for the project’s future production late last year.

From new energy commodities to old ones, coal miner Stanmore Resources Ltd (ASX: SMR) has seen its share price rocket around 200% since this time last year to trade at $3.66 today.

The stock has been bolstered by surging coal prices. The company also snapped up BHP Group Ltd (ASX: BHP)’s metallurgical coal joint venture, closing on an 80% stake around this time last year and acquiring the remaining 20% in October.

Finally, the Latin Resources Ltd (ASX: LRS) share price has surged 180% over the last 12 months. It’s trading at 11.5 cents today.

The ASX mining company is another lithium hopeful. But more than that, it’s also behind a number of projects exploring other critical metals.

Much of the stock’s gains over the last 12 months have come amid news of its Salinas Lithium Project.

The post 4 ASX mining shares that have soared over 150% in a year appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Ampol, Arafura, GQG, and Retail Food shares are dropping today
• Arafura share price plummets. Broker tips 28% upside
• Why BHP, Dicker Data, South32, and Winsome Resources are pushing higher
• Why is the Arafura share price storming 7% higher?
• 4 ASX shares to stock up on after a bright reporting season: Morgans

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.

from The Motley Fool Australia https://ift.tt/ARq38lH

With reporting season now over, we look over the results to identify some of the S&P/ASX 200 (ASX: XJO) shares that delivered the highest increases in interim dividends this year.

Income investors, take note. Some of these ASX 200 shares will pay boosted dividends because of higher commodity prices. Others are raising their dividends due to improvements in their businesses.

Either way, dividends have always been a great source of passive income. But they’re even more important in today’s economy, with interest rates rising. One Wall Street veteran says total returns on stock markets around the world are ‘going to come much more from dividends‘ over the near term.

All of these companies below delivered a 25%-or-more boost to their interim dividends for FY23.

Is this the biggest booster among the ASX 200 shares?

It was always going to be hard for any ASX 200 share to beat the inevitable mammoth dividend increase delivered by Whitehaven Coal Ltd (ASX: WHC).

And Australia’s biggest pure-play coal miner did not disappoint, lavishing a 300% boost to its interim dividend on investors thanks to a record half-year net profit after tax (NPAT) of $1.8 billion.

The ASX 200 mining share will pay 32 cents per share fully franked on 10 March.

The record profit was due to skyrocketing coal prices caused by the Russia-Ukraine conflict and the ensuing global energy crisis.

This also led to the Whitehaven share price screaming 261% higher in 2022, making it the best-performing share of the year.

Other companies splashing the cash

ASX financial share Hub24 Ltd (ASX: HUB) will pay an 87% higher interim dividend in FY23 due to an 87% boost to its profit in 1H FY23. Hub24 shares will pay 14 cents per share fully franked on 18 April.

QBE Insurance Group Ltd (ASX: QBE) revealed its full-year results this earnings season. QBE declared a fully franked final dividend of 30 cents per share, up 57% on the final dividend for FY21. The QBE dividend will be paid on 14 April.

IDP Education Ltd (ASX: IEL) reported a 62% NPAT boost in 1H FY23. The ASX 200 education provider announced a 55% increase in its interim dividend to 21 cents per share. The 25%-franked dividend will be paid on 31 March.

The Beach Energy Ltd (ASX: BPT) dividend was doubled this earnings season. The ASX energy share will pay investors a fully franked interim dividend of 2 cents per share on 31 March.

Blackmores Ltd (ASX: BKL) reported a 17.3% NPAT bump to $24.4 million in 1H FY23, which resulted in a 38% increase to its dividend. The ASX 200 vitamin supplements company will pay 87 cents per share fully franked on 28 March.

Woodside Energy Group Ltd (ASX: WDS) delivered its full-year results this earnings season. The company reported an underlying NPAT of US$5.23 billion, up 223% and a record for the ASX energy share.

Woodside boosted its final dividend by 37% to US$1.44 per share fully franked, payable on 5 April.

Finally, Super Retail Group Ltd (ASX: SUL) reported record first-half sales of $1.96 billion, up 15% year over year.

The ASX 200 retail share will pay a fully franked interim dividend of 34 cents per share, up 26%, on 14 April.

The post Passive income watch: Here are the ASX 200 shares that delivered some of the biggest dividend boosts this earnings season appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• 5 high-profile ASX 200 shares that will trade ex-dividend on Monday
• 5 things to watch on the ASX 200 on Friday
• Top ASX dividend shares to buy in March 2023
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Idp Education, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Hub24 and Super Retail Group. The Motley Fool Australia has recommended Blackmores and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JSE1Tka