Category: Stock Market

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Discovery Fund portfolio manager Chris Bainbridge and Mark Devcich name the ASX share they’d back for years, and why PE ratios are not as important as you think.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Chris Bainbridge: Our answer here is we won’t take you literally that the market was going to close, because if the market was going to close, it wouldn’t be great news for the stock. 

So the company that we believe is a great hold for the next four years is Hub24 Ltd (ASX: HUB), but appreciate that if the market truly closed down, it really wouldn’t get business.

MF: I totally know what you mean. The scenario itself would be bad for the company, but if the question wasn’t meant to be taken literally, that would be your pick.

CB: Yeah, absolutely. So what does Hub do? It’s an investment and superannuation platform. What does that actually mean? As everyone’s probably aware, Hub allows its advisors to manage their clients’ interests, whether that’s onboarding a client, buying and selling shares on a platform, or doing back-end reporting, whatever you like.

Hub was 30 cents back in 2015 and $28 today. We still believe it’s a buy for a number of reasons. One, the platform industry is over $1 trillion. Hub only has a 5% market share of that industry, but is actually taking 11% of all gross flows and along with their key competitor, Netwealth Group Ltd (ASX: NWL), we believe that flows will continue to move towards the independent platform providers.

The second tailwind is the right[s] to managed accounts. So advisors, post the Royal Commission, have been [seeking] efficiency from their business, and one of the ways of doing that is utilising managed accounts. Now Hub’s the leading provider of managed accounts and again, it’s another strong tailwind for their business. 

Hub’s revenue is reasonably predictable. They pop an administration fee on, that’s 3,700 advisors who use the platform. People are absolutely key in terms of the process… We look at key management at Hub, whether it’s [chair] Bruce Higgins or [chief executive] Andrew Alcock or financial CO called Jason Entwistle, they all have long tenure and they all have, certainly, skin in the game — so gives you confidence. That’s what we like to see.

Finally, it’s just the earnings they’ve reached. Hub was moving $4.4 million in 2015 and in the most recent half, the platform business for Hub made over $80 million of annualised EBITDA and still growing strongly, so it’s trading sub-20 times FY24, growing over 20%. Highly sticky recurring revenues and there’s upsides from transitions, so we believe that Hub will continue to take share and continue to compound.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

Mark Devcich: I guess the biggest missed opportunity is probably not starting Discovery 10 years ago! 

There has been this massive tailwind from equity for the last decade of compressing interest rate, and it has made sense to be fully invested in great stock over that time, and that if I was to probably put the biggest mistake I’ve made is not adhering to that kind of positioning and thinking about timing markets in the short term, which is very difficult to do.

MF: Anything regrets for you, Chris?

CB: The biggest mistake probably that I’ve made is not buying Premier Investments Limited (ASX: PMV) at 50 cents because the P/E multiple was too high.

[Editor’s note: Premier shares are trading around $26 now.]

There were definitely no issues with the company at the time, ticked a lot of the boxes we had, founder-led management team, high market leader, high growth in international markets, operating leverage, and we purely got hung up on the multiple. I guess we have learned that lesson. 

A lot of people in the past have pointed out companies like Hub are expensive, but obviously you can see they’ve continued to compound for good reason. So just about being able to take a bit of a longer-term view rather than getting hung up on a one-year of good P/E.

The post The one ASX share we’re holding onto for dear life: experts appeared first on The Motley Fool Australia.

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More reading

• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• For $750 in monthly passive income, buy 8,572 shares of this ASX 200 stock
• We still hold this ASX 8-bagger because there’s more to come: QVG
• Passive income watch: Here are the ASX 200 shares that delivered some of the biggest dividend boosts this earnings season
• Wake up! Buy 5 ASX shares that are reporting season gems: Morgans

Motley Fool contributor Tony Yoo 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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has recommended Premier Investments. 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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When it comes to dividends, Rio Tinto Ltd (ASX: RIO) shares are a popular option for investors.

And it isn’t hard to see why.

Every year, the mining giant shares a decent portion of its earnings with shareholders in the form of dividends. This has led to tens of billions of dollars being returned shareholders in recent years.

The good news for investors is that Goldman Sachs is forecasting some big dividend payments in the years to come.

It expects fully franked dividends per share of US$4.23 (A$6.35) in FY 2023 and then US$5.46 (A$8.20) in FY 2024. Based on the latest Rio Tinto share price of $114.73, this will mean yields of 5.5% and 7.15%, respectively.

In light of the above, investors may be wondering what it would take to generate monthly passive income of $500 from Rio Tinto’s shares. Let’s take a look.

How to make $500 of monthly income from Rio Tinto shares

Firstly, like most ASX shares, Rio Tinto shares don’t pay monthly dividends to shareholders.

Instead, the miner pays an interim dividend in September and a final dividend in April. So, investors are going to have to be disciplined and take their bi-annual dividends and redistribute them into monthly instalments.

Let’s get started. $500 of monthly income is the equivalent of $6,000 per year.

Based on Goldman Sachs’ estimates above, in order to generate $6,000 in dividends, you would need to own approximately 945 Rio Tinto shares. This is the equivalent of an investment of $108,420.

What about future income?

The good news is that if Goldman is on the money with its estimates, your pay check would rise to approximately $646 per month or $7750 per year in FY 2024 thanks to a dividend increase.

Another positive is that the broker believes that Rio Tinto shares are undervalued at the current level. It has a buy rating and $131.70 price target on them.

If it were to rise to that level, your 945 shares would have a market value of almost $125,000. That’s over $16,000 greater than your original investment.

All in all, this mining giant could be a top option for income investors to consider thanks to the combination of big dividends and bigger potential capital gains.

The post How to generate $500 of monthly income from Rio Tinto shares appeared first on The Motley Fool Australia.

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More reading

• Is it time to buy ASX 200 iron ore shares right now?
• Why is the Rio Tinto share price diving 5% on Thursday?
• Brokers name 2 high yield ASX 200 dividend shares to buy now
• Rio Tinto share price dips despite copper mega-mine milestone
• Top brokers name 3 ASX shares to buy next week

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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The fortunes of ASX shares of iron ore producers very much correlate to the prospects for the global economy.

Although western economies are looking pretty sick (or at least uncertain) at the moment, China’s post-COVID reopening since late last year has many experts thinking demand could soar for iron ore.

One keen-eyed investor noted that last week the Chinese Communist Party set, by its historical standards, a modest 5% economic growth target for this year.

He, therefore, wondered whether iron ore miners are still attractive to buy at the moment.

Shaw and Partners portfolio manager James Gerrish set out to answer this conundrum:

Not hitting the panic button yet

The short answer is that Gerrish’s team would still buy into iron ore producers.

“The economic news flow hasn’t been kind over the last week, but we aren’t hitting the panic buttons yet!” Gerrish said in a Market Matters Q&A.

However, he would look to buy them at the best short-term price.

“We still like iron ore miners into dips,” he said.

“BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), for example, are still trading well above last week’s low even after trading ex-dividend 90c and $3.26 fully franked.”

The wild volatility in the current market should not detract from the long-term bullishness, he added.

Since Gerrish made those comments, BHP, Rio Tinto and Fortescue Metals Group Limited (ASX: FMG) shares have all fallen, to perhaps open up a buying opportunity.

Goldman Sachs is rating Rio Tinto shares as a buy, predicting a juicy 5.35% and 6.9% dividend yield in each of the coming two financial years.

“Goldman Sachs has a buy rating and price target of $131.70 on the miner’s shares,” reported The Motley Fool’s James Mickleboro.

“This is due to their ‘compelling valuation’ and the company’s ‘return to production growth in 2023.’”

The Rio Tinto share price is up 7.6% over the past 12 months.

BHP, which is 3.3% lower than where it was a year ago, is currently rated as a buy by just seven out of 25 analysts surveyed on CMC Markets.

But that’s not as bad as Fortescue, which is currently recommended as a sell by 13 out of 17 analysts.

The Fortescue share price is now actually 21% higher than it was a year ago.

The post Is it time to buy ASX 200 iron ore shares right now? appeared first on The Motley Fool Australia.

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More reading

• Why Bendigo and Adelaide Bank, BHP, IPH, and Woodside shares are dropping
• Why is the BHP share price tumbling 4% today?
• Why is the Rio Tinto share price diving 5% on Thursday?
• Brokers name 2 high yield ASX 200 dividend shares to buy now
• Fortescue share price marching higher as green hydrogen plans heat up

Motley Fool contributor Tony Yoo 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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The good news for income investors is that there are a large number of quality ASX dividend shares to choose from on the Australian share market.

Two that have been tipped as best buys by analysts at Morgans are listed below. Here’s what the broker is saying about them:

GQG Partners Inc (ASX: GQG)

Morgans believes this fund manager’s shares could be great value right now. And with the potential yield on offer with its shares looking very attractive, it appears to see it as a dividend share to buy. It has an add rating and $1.93 price target. The broker commented:

GQG’s strong relative investment outperformance through the current market weakness should solidify the near-term flows outflow. GQG has diversified earnings (by strategy and clients); solid performance track-record; and ongoing growth prospects. In our view, the current ~12x PE (versus a sector med-term average of ~16x) is attractive.

As for dividends, Morgans is expecting dividends per share of 11.3 cents in FY 2023 and then 12.5 cents in FY 2024. Based on the current GQG share price of $1.40, this will mean 8.1% and 8.9% yields, respectively.

Wesfarmers Ltd (ASX: WES)

The broker is also a fan of this conglomerate and sees it as one of the best ASX dividend shares to buy now. Morgans is positive on the Bunnings owner due to the quality of its retail portfolio and its highly regarded leadership team. Its analysts also believe Wesfarmers is well-placed in the current environment due to its value-offering. In light of this, the broker has put an add rating and $55.50 price target on its shares. It explained:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES’s businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.

In respect to dividends, its analysts are forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.91 in FY 2024. Based on the latest Wesfarmers share price of $48.83, this will mean yields of 3.7% and 3.9%, respectively.

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

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More reading

• How much would I need to invest in ASX income shares to earn $500 a month?
• 2 ASX passive income stocks for the next 10 years and beyond
• Is right now the time to buy Wesfarmers shares for passive income?
• How can I hope to retire rich when the share market is falling?
• Experts name 2 ASX 200 dividend shares for a passive income boost

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 Wesfarmers. 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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Warren Buffett.

Just drop that name around any group of ASX dividend investors and you’re likely to get their attention.

And for good reason.

As the long-running CEO of multinational conglomerate Berkshire Hathaway, Warren Buffett has delivered returns that most fund managers can only dream of.

The Oracle of Omaha isn’t shy about revealing the secrets to his investing success, either.

His many decades of success stem from what, at least on the surface, appear to be some very simple investing rules.

Among those, Warren Buffett looks for high-quality companies with great management and brands. Companies that have the ability to control prices and that are fairly valued or, better yet, trading at a bargain.

Importantly, he has a very long-term investment horizon, ignoring the ups and downs along the way.

While some of the outsized gains he’s reaped come from capital appreciation, a large portion stems from dividends.

In fact, it’s reported that Buffett will rake in some US$6 billion (approximately AU$9 billion) in dividend income this year.

If it works for Warren Buffett, should I buy ASX dividend shares right now?

ASX dividend shares offer an excellent path towards garnering a reliable passive income stream. And the Aussie market is rather unique in that it offers franking credits, which can offer some handy tax benefits at the end of the financial year.

Now I don’t reckon you or I will ratchet up $9 billion in annual payouts like Warren Buffett. Though one can dream!

But there are a large number of high-quality ASX dividend shares to choose from to begin building that passive income.

Retail giant Harvey Norman Holdings Ltd (ASX: HVN), for example, has paid out a total of 30.5 cents in fully franked dividends over the past 12 months.

At the current share price of $3.76, that works out to a trailing yield of 8.1%.

If you’d like to receive the company’s interim dividend of 13 cents per share, you’ll need to own the stock at the close on 31 March, when Harvey Norman trades ex-dividend.

Another ASX dividend share investors may want to run their slide rules over to build a passive income stream like Warren Buffett’s is Domino’s Pizza Enterprises Ltd (ASX: DMP).

The global pizza chain has struggled lately in the face of higher inflation and a return to dining out over home delivery during the pandemic times.

Still, Domino’s declared a partially franked interim dividend of 67.4 cents per share atop the earlier 68.1 cent per share final dividend. At the current share price, the stock offers a trailing yield of 3%, franked at just over 60%.

The post Warren Buffett rakes in $9 billion in annual dividend income. Should I buy ASX dividend shares right now? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX growth stocks down 40%-65% to buy now and hold
• These 3 ASX shares just halved. I would buy one of them: experts
• Why did the Domino’s share price just hit a multi-year low?
• These 3 ASX 300 shares are dividend dynamos!
• Gerry Harvey just bought $8 million worth of Harvey Norman shares. Should you buy?

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 Berkshire Hathaway, Domino’s Pizza Enterprises, and Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Berkshire Hathaway and Domino’s Pizza Enterprises. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) tumbled deep into the red. The benchmark index fell 1.45% to 6,965.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open 15 points or 0.2% higher this morning. In late trade in the United States, the Dow Jones is up 1%, the S&P 500 is up 1.6%, and the NASDAQ index is up 2.3%.

Oil prices recover

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices snapped their losing streak overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$68.26 a barrel and the Brent crude oil price is up 1.3% to US$74.61 a barrel. This follows news that Saudi Arabia and Russia met to discuss ways to improve market stability.

Buy Lifestyle Communities shares

The Lifestyle Communities Ltd (ASX: LIC) share price could be great value according to analysts at Goldman Sachs. This morning, the broker reiterated its buy rating with an improved price target of $27.15. It commented: “We believe this is a highly valuable business model” and “the recent sell off offers a compelling entry level.”

Gold price softens

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price eased overnight. According to CNBC, the spot gold price is down 0.4% to US$1,923.9 an ounce. Improving investor sentiment put pressure on the safe haven asset.

Dividend payday

A number of ASX 200 shares will be paying their latest dividends on Friday. This includes auto parts retailer Bapcor Ltd (ASX: BAP), fintech company Iress Ltd (ASX: IRE), investment company Pinnacle Investment Management Group Ltd (ASX: PNI), and casino operator SKYCITY Entertainment Group Limited (ASX: SKC).

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

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More reading

• What’s with the Qantas share price on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Sayona Mining share price lifts on first saleable lithium production
• ASX 200 trims losses amid employment data and Credit Suisse $80b central bank loan
• ASX 200 oil stocks are tanking. Is now the time to buy?

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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Bapcor. 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 Betashares Nasdaq 100 ETF (ASX: NDQ) has performed admirably in the first few months of 2023. It has gone up by around 16%, whereas the S&P/ASX 200 Index (ASX: XJO) is almost flat for the year to date.

The movements of the unit price of the exchange-traded fund (ETF) are interesting considering everything that has been going on.

I think it’s important to keep in mind that when the new year began, the share prices of technology businesses had hit a fairly low point by the end of 2022.

So, some of the fund’s increase may simply have been a recovery of investor sentiment from last year’s low.

And here is an interesting thought regarding the current banking problems in the US and Switzerland. The uncertainty could lead to central banks being less draconian with interest rates, therefore, reducing their impact on asset prices.

A number of tech shares within the Betashares Nasdaq 100 ETF suffered a sell-off amid the rapid surge in interest rates. But, lower-than-expected interest rates could have a positive impact on the share prices of those tech names. That may already be playing out.

Is now a good time to buy the Betashares Nasdaq 100 ETF?

Investors can invest in units of the ETF whenever they like, so there’s no need to fear missing out on ever owning it.

Of course, if we could choose, we’d go for a unit price that’s below $25 rather than the higher price it is today. The fund closed Thursday trading at $28.72 per unit.

But, the underlying businesses like Microsoft, Apple, Alphabet, and Amazon.com have a long-term track record of delivering business growth, which will hopefully translate into unit price growth over time as well.

The Betashares Nasdaq 100 ETF unit price is down 20% from its December 2021 peak, but it’s still up by around 80% over the past five years, showing the growth of the businesses involved.

Don’t forget, there is a wide array of 100 businesses within this ETF — it’s not just a few of the biggest tech businesses in the world. To that end, it offers pretty good diversification.

At the end of February 2023, the ETF had a forward price/earnings (P/E) ratio of 23x. I wouldn’t describe that as cheap.

A number of the biggest businesses in the ETF’s portfolio have made job cuts recently, which may increase ongoing profitability, but it also shows that the management of those companies thought they were necessary moves to boost profit, save cash, or whatever else was a key factor in the decisions.

There could be a better price to come in 2023 but I think at the current level, investors can do well over the long term by investing in this portfolio of quality names.

The post The Betashares Nasdaq 100 ETF has soared 15% so far in 2023. Is it too late to buy? appeared first on The Motley Fool Australia.

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More reading

• 3 excellent ETFs for ASX investors to buy for the long term
• 3 ETFs for investors to buy and hold for a decade
• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• Top ASX ETFs to buy in March 2023
• 3 excellent ETFs for ASX investors to sink their money into this month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, and Apple. 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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Most ASX investors would know that the past week has been a brutal one for ASX shares and the Australian share market. But it’s not just our markets that are in a world of pain right now. So today, let’s check out the damage with the Vanguard MSCI Index International Shares ETF (ASX: VGS). 

This exchange-traded fund (ETF) from provider Vanguard is one of the best barometers for global shares around. The Vanguard International Shares ETF is a massive fund in scope and scale. It holds shares from all kinds of advanced economies around the world. Here you’ll find shares from Canada, the United Kingdom, Japan, France, Switzerland, Sweden, Germany, Israel, Singapore and Hong Kong.

But most of its major constituents come from the United States. This ETF’s top holdings are names that will probably be familiar to most readers. They include the likes of Apple, Microsoft, Amazon, Tesla and Exxon Mobil.

As such, this ETF is a popular and effective choice for any investor wishing to diversify their ASX share portfolio using a single, simple index fund.

So let’s look at the damage that the past week or so has done to this ETF. Since 7 March, the Vanguard International Shares ETF has fallen from $98.60 a unit to the $95.60 we see today. That’s a hefty loss of 3%.

Thus, many investors might be wondering if this is a buying opportunity for this popular ETF.

Is it time to buy the Vanguard International Shares ETF?

Well, I would argue that it is. Whenever a quality index fund experiences a significant drop in value, it can be a good chance to pick up additional units. Index funds are not individual companies. They hold an ever-changing basket of shares, weighted by market capitalisation.

In this ETF’s case, these sources are from around the world, but the same principle applies. Because an index fund is periodically rebalanced to ensure it always has the largest companies within it, losers are weeded out over time, while winners are added.

Because of this nature, investing in index funds using a dollar-cost-averaging strategy is usually a popular and effective way of building wealth. That would work well for most investors. But the principles of ‘buy low sell high’ still apply here too.

If you can handle the emotional baggage of buying more of an investment when it falls in price, then you should do so. As the great Warren Buffett once said, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down”.

So I think it is indeed a great time to buy the Vanguard International Shares ETF right now. Remember, this index fund has returned an average of 11.09% per annum since its inception in 2014. Past performance is no guarantee of future results, of course. But it still leads me to believe that the cheaper you can get this ETF, the better.

The post Is right now a massive buying opportunity for the Vanguard MSCI Index International Shares ETF (VGS)? appeared first on The Motley Fool Australia.

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More reading

• 3 ETFs for investors to buy and hold for a decade
• 2 excellent ETFs for ASX investors to buy now
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John Mackey, former 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 Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, Microsoft, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon.com, Apple, and Vanguard Msci Index International Shares 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) finished 1.46% lower today and Qantas Airways Ltd (ASX: QAN) was among the fallers.

The Qantas share price dropped 1.87% to close the day at $6.30.

Let’s take a look at what may have weighed on the Qantas share price today.

Broader market falls

Qantas was not the only ASX 200 travel share to slide today. The Webjet Ltd (ASX: WEB) share price descended 1.9%, while Flight Centre Travel Group Ltd (ASX: FLT) shares dropped 3.57%.

ASX 200 shares, including travel shares, plunged today following market chaos in the United States and Europe overnight.

Credit Suisse shares dived 24% after its major shareholder declined to increase its stake in the Swiss bank, as my Foolish colleague Bronwyn reported today.

This economic uncertainty weighed on most ASX 200 shares today, with eight sectors finishing in the red and only three in the green.

In other news today, Qantas today announced it will provide customers with a further 12 months to take advantage of COVID travel credits.

Travellers with credit will still need to book travel by 31 December 2023, but they will be able to complete their travel as late as December 2024.

Commenting on the news, Qantas chief customer officer Markus Svensson said:

We literally had millions of bookings that were cancelled during several waves of lockdowns and border closures. No airline had systems that were designed to manage that in a seamless way and we realise there’s been frustration for some customers as a result.

Our main goal is for everyone who has a COVID credit to be able to put it to good use, which is why we’re doing one final extension of the travel expiry date by 12 months. 

Qantas share price snapshot

The Qantas share price has surged 25% in the last year, but it has fallen nearly 3% in the past month.

Qantas has a market capitalisation of about $11.4 billion based on the current share price.

The post What’s with the Qantas share price on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
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• Is now the time to be bold and snap up cheap ASX 200 dividend shares?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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As well as providing investors with access to sectors and indices, exchange traded funds (ETFs) can be used by investors seeking a source of income.

For example, the two ETFs listed below provide investors with exposure to large groups of dividend-paying shares through a single investment. Here’s why income investors might want to check them out:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The BetaShares S&P 500 Yield Maximiser is a very interesting ETF. It aims to provide investors with quarterly dividend income that is significantly greater than what you would ordinarily receive by investing in Wall Street’s S&P 500 index.

This is because it uses a clever equity income investment strategy over a portfolio of shares comprising the S&P 500 Index to maximise the yield. Hence its name.

Among its holdings are the largest companies listed on Wall Street. This includes dividend-payers such as Apple, Bank of America, Exxon Mobil, and Walmart.

At present, the BetaShares S&P 500 Yield Maximiser’s units provide investors with a 7.6% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is far simpler.

This ETF uses broker research to find the ASX shares that are forecast to provide the biggest dividend yields over the next 12 months. It then buys these shares for investors and brings them together into the ETF.

It is worth noting that it excludes Australian Real Estate Investment Trusts (A-REITS) and maintains a diverse portfolio. This means you’re not just buying an ETF filled with banks or coal miners. It restricts the proportion invested in any one industry to 40% and 10% for any single company.

At present, there are 73 ASX shares included in the portfolio. This includes giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.4%.

The post Income investors could get very big dividends from these ASX ETFs appeared first on The Motley Fool Australia.

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More reading

• Buy this ASX ETF for big retirement income
• Dividend dessert: Which ASX ETFs are the sweetest for a passive income?
• These ETFs could give ASX investors a passive income
• Buy these ETFs for passive income and growth

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 BetaShares S&p 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield 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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