Category: Stock Market

The Dusk Group Ltd (ASX: DSK) share price could be a leading ASX dividend share for investors to sniff out.

For readers that haven’t heard of this one before, it describes itself as a specialty retailer of home fragrance products, offering a range of Dusk-branded “premium quality products at competitive prices”. It sells things like candles, ultrasonic diffusers, reed diffusers, essential oils and fragrance-related homewares.

Its products are designed ‘in-house’ and are exclusive to Dusk.

Why is the ASX dividend share’s yield so high?

According to Commsec estimates, the business is expected to pay an annual dividend per share of 16.7 cents in FY24.

At the current Dusk share price, this translates into an FY24 grossed-up dividend yield of around 12%.

While FY25 is further out, it may be worth noting that the dividend estimate for FY25 is 20.4 cents per share. This would be a grossed-up dividend yield of 14.6%. But, at this stage, that’s just a distant projection.

I’d put the high dividend yield down to two or three things.

Firstly, the Dusk share price has dropped by around 33% over the past year. A lower share price has the effect of boosting the dividend yield.

Next, the ASX dividend share is valued at a low multiple of its earnings. According to Commsec, the Dusk share price is valued at 8 times FY24’s estimated earnings.

I’d also put the high dividend yield down to the fairly high dividend payout ratio. It’s forecast to have an FY24 dividend payout ratio of 68%.

Positives about the business

Dusk says that its vertical retail model provides flexibility and control. The company reportedly has over 750,000 members.

Management believes that the company has a compelling customer proposition, with affordable luxuries. Around 30% to 40% of sales are gifting.

One of the most promising aspects of the ASX dividend share, according to Dusk, is its growth in high margin consumables.

In the first 19 weeks of FY23, total sales were up 23.9% year over year. It said it opened five new stores in time for Christmas and it expects to open another three or four in Australia in the second half.

Management also said it’s likely that the company will open more stores in New Zealand if trading continues to meet expectations.

The post Looking to sniff out ASX dividend opportunities? This share is forecast to pay a sweet 12% yield appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy now
• Want 17% upside plus dividend income? Broker says buy Wesfarmers shares
• Bought $1,000 of CSL shares 10 years ago? Here’s how much dividend income you’ve received
• How to minimise risk using ASX 300 dividend shares: fundie
• Can ASX bank shares deliver in 2023 after higher interest rates?

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 recommended Dusk 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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Are you looking for dividend shares to buy? If you are, then the two named below could be worth checking out.

Both have been named as buys by brokers and tipped to provide investors with attractive yields. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that could be in the buy zone is Coles.

The team at Morgans is positive on the supermarket giant and has put an add rating and $19.50 price target on its shares.

The broker feels that Coles’ shares are trading at an attractive level given its defensive characteristics in this uncertain economic environment. It also believes that a reversion in shopping habits since the pandemic will be a positive for Coles. The broker explained:

Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company’s solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

In respect to dividends, Morgans expects a fully franked dividend of 64 cents per share in FY 2023 and a fully franked dividend of 66 cents per share in FY 2024. Based on the current Coles share price of $16.52, this will mean yields of 3.9% and 4%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been tipped as a buy is Universal Store.

It is a growing retailer focused on youth fashion through the Universal Store and Thrills brands.

Goldman Sachs notes that the company’s shares have fallen heavily over the last 12 months amid weakness in the retail sector. Its analysts believe this has created a buying opportunity for investors due to the company’s exposure to younger consumers and its expansion options. The broker commented:

In addition to a strong outlook for Gen-Z spending, we see an opportunity for ongoing store roll-out for UNI which is the market leader in youth multi-brand apparel. Relative to youth footwear, the youth apparel category is under-penetrated in terms of store footprint; we forecast an additional 22 Universal stores will be rolled out in the next three years.

Goldman Sachs has a buy rating and $7.30 price target on its shares.

As for dividends, the broker is expecting fully franked dividends of 26.1 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.14, this equates to yields of 5.1% and 5.8%, respectively.

The post Brokers name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Buy these cheap ASX dividend shares: Goldman Sachs
• Here’s how I’ll be investing my money in ASX shares in 2023
• How I’d invest $1,000 in ASX 200 shares for rising inflation
• How I’d use a stock market crash to boost my passive income
• 3 steps to generating passive income with ASX 200 dividend shares in 2023

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 Coles 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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Although they have started 2023 in a positive fashion, Wesfarmers Ltd (ASX: WES) shares are still down meaningfully over the last 12 months.

As you can see below, during this time, the conglomerate’s shares have lost 17% of their value.

While this is disappointing, one leading broker believes that this share price weakness could have created a buying opportunity for investors.

Big returns expected from Wesfarmers shares

According to a recent note out of Morgans, its analysts have the company’s shares on their best ideas list with an add rating and $55.60 price target.

Based on where Wesfarmers shares are trading right now, this implies potential upside of over 17% for investors in 2023.

But it gets better! The broker is also expecting Wesfarmers to reward its shareholders with a $1.82 per share fully franked dividend this year.

This equates to a 3.85% dividend yield for investors, which stretches the total potential return to approximately 21%.

Why buy Wesfarmers?

The broker highlights that Wesfarmers is better positioned than most in the current economic environment due to its value offering. It points out that “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

Overall, Morgans believes that Wesfarmers shares are trading at an “attractive” level given the quality of its portfolio and strong balance sheet. It commented:

Trading on 22.5x FY23F PE and 3.8% yield, we continue to see WES’s valuation as attractive for a high-quality business with a diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering long-term value for shareholders.

All in all, this could make Wesfarmers one to consider if you’re looking for blue chip shares for your portfolio in 2023.

The post Want 17% upside plus dividend income? Broker says buy Wesfarmers shares appeared first on The Motley Fool Australia.

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More reading

• My top predictions for ASX 200 shares in 2023
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• My best ASX 200 dividend shares for 2023
• These are the ASX dividend shares to buy now: brokers
• 2022 was brutal for Wesfarmers shares. What now?

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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The CSL Limited (ASX: CSL) share price has outperformed the broader market over the last 12 months. The stock has fallen 1% since this time last year while the S&P/ASX 200 Index (ASX: XJO) has dropped 4%.

But the CSL share price’s domination of the index isn’t new. Over the last 10 years, the biotechnology giant’s shares have gained a whopping 433%. For comparison, the ASX 200 has lifted a respectable 52% in that time.

If one were to have invested $1,000 in CSL shares in January 2013, they likely would have walked away with 19 securities and around $13 change, paying $51.95 per share.

Today, that parcel would be worth a whopping $5,263. The CSL share price is currently $277.  

But that’s not all.

Let’s dive into the dividends our figurative long-term investor may have received over the life of their investment.

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

Here are all the dividends offered by CSL over the decade just been, rounded to the nearest cent:

CSL dividends’ pay date	Type	Dividend amount
October 2022	Final	$1.76
April 2022	Interim	$1.42
September 2021	Final	$1.59
April 2021	Interim	$1.35
October 2020	Final	$1.47
April 2020	Interim	$1.47
October 2019	Final	$1.45
April 2019	Interim	$1.20
October 2018	Final	$1.28
April 2018	Interim	$1
October 2017	Final	92 cents
April 2017	Interim	84 cents
October 2016	Final	89 cents
April 2016	Interim	81 cents
October 2015	Final	90 cents
April 2015	Interim	74 cents
October 2014	Final	65 cents
April 2014	Interim	59 cents
October 2013	Final	57 cents
April 2013	Interim	49 cents
Total:		$21.39

Over the last 10 years, our figurative investor has likely received $21.39 per CSL share they’ve held – a total of $406.41 of passive income.

That’s certainly nothing to scoff at. Indeed, dividends alone have returned almost 40% of their purchase price. It also bumps their total return on investment (ROI) to a whopping 474%.

And of course, that could have been higher if they compounded their returns by reinvesting their dividends.

CSL shares currently trade with a modest 1.1% dividend yield.

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

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More reading

• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• I’d listen to Warren Buffett and invest in ASX shares with wide economic moats
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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 positions in and has recommended CSL. 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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S&P/ASX 300 Index (ASX: XKO) dividend shares could be the place to look for returns according to one fund manager.

The fund manager Michael O’Neill from Investors Mutual has suggested that capital growth in the next decade is “likely to be lower than the last decade”.

With the end of ultra-low interest rates and available money, the very long bull market has been ended by high inflation and rising interest rates. He suggested that it’s “very unlikely” that we are going to enter another long bull market with a similar amount of capital growth.

The fund manager suggested that volatility is going to stay elevated in the near term, but also suggested that it’s a good time for stock picks, with “a great chance to pick up high-quality companies at bargain prices.”

We can see that volatility with the exchange-traded fund (ETF) Vanguard Australian Shares Index ETF (ASX: VAS).

Time for dividends?

O’Neill suggested that the importance of dividends is increasing during times like these because they “provide more reliable returns than capital gains.”

He noted that over the past 20 years, income returns made up just over half of total returns from ASX 300 shares. On top of that, while capital returns can be very volatile, the dividend returns are “remarkably reliable – making them particularly valuable when returns on capital are low, or negative.”

The fund manager pointed out that capital returns rely on movements in individual share prices, but the level of dividends is decided by the company’s board and the company’s overall profitability. He concluded this point by saying:

In periods where the overall share market goes down, an investor’s dividends should stay much the same if they have a diversified portfolio made up of quality companies.

He also suggested that dividend yields can act as a safety net at times of volatility. O’Neill suggested the Investors Mutual investment team have observed over many years of investing that “once sentiment starts to turn, companies with sustainable earnings that support a healthy, consistent dividend stream are often the shares that recover the most quickly.”

Regardless of what happens with the share price, O’Neill said that when quality companies drop and the dividend yield is attractive and sustainable, long-term investors buy them so they can ‘lock in’ high-income levels.

Which ASX 300 dividend shares to buy?

The fund manager said investors should be cautious about risky sectors like commercial property, resources and other cyclical sectors. Instead, they prefer industrials, including ones that can perform well when inflation is high.

They look for names that have pricing power that can pass on rising costs to customers.

The investment team also want to find businesses that operate in a ‘rational’ industry where the main players are motivated by profit and act rationally to maximise long-term profit (not spending large amounts of capital at the top of the cycle, or chasing market share at all costs through unprofitable discounting).

Investors Mutual wants to look at businesses that sell essential products and services. It also wants to find companies that have good management, that can put “well-structured contracts in place that make difficult conversations about passing on inflationary costs easier.”

In terms of which ASX 300 dividend shares could be good ideas, O’Neill picked out four names with relatively low price/earnings (P/E) ratios and high dividend yields:

• Rail infrastructure business Aurizon Holdings Ltd (ASX: AZJ)
• The food and liquor supplier, and hardware business, Metcash Limited (ASX: MTS)
• Explosives business Orica Ltd (ASX: ORI)
• Insurance business Suncorp Group Ltd (ASX: SUN)

The post How to minimise risk using ASX 300 dividend shares: fundie appeared first on The Motley Fool Australia.

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More reading

• The 3 ASX 200 bank shares that outperformed all others in 2022
• Top ASX shares to buy in January 2023
• ASX financial shares lifted the ASX 200 today
• How I’d invest $1,000 in ASX 200 shares for rising inflation
• How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023

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 recommended Aurizon and 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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ASX bank shares are under the spotlight this year as the effect of higher interest rates comes through in the results. Is this where investors should be looking?

The key earnings generator for most of the banks on the ASX is lending. So, the interest rate can play a key role in the profitability of banks.

A bank lends money out for a certain interest rate. But, there is also a cost to the money that it lends out, such as savings accounts or term deposits. The difference between the lending rate and the cost (eg the rate for savers) is known as the net interest margin (NIM).

In 2022, we saw ASX bank shares pass on interest rate rises to borrowers much faster than savers. This is improving bank profitability, with an improvement in the NIM.

The RBA has increased the interest rate from 0.1% to 3.1% over the last 12 months. Under this environment, is the outlook for the sector promising?

Varied share price performance

Over the last 12 months, different banks have seen differing performances.

For example, the National Australia Bank Ltd (ASX: NAB) share price has managed a slight gain over the past 12 months.

Whereas the ANZ Group Holdings Ltd (ASX: ANZ) share price has dropped around 15% over the last year.

The Bank of Queensland Limited (ASX: BOQ) share price has fallen around 17% over the last year.

Of course, there are a number of other ASX bank shares to look at including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Bendigo and Adelaide Bank Ltd (ASX: BEN) and MyState Limited (ASX: MYS).

Are ASX bank shares a good opportunity?

The investment giant Blackrock recently pointed out that “higher interest rates bode well for bank profitability”.

A number of banks have said they are entering FY23 with a higher starting NIM than what they experienced during FY22.

I personally don’t think I would want to buy CBA shares right now because they trade at a much higher price/earnings (P/E) ratio than other banks.

But I like the direction that NAB’s leadership is taking the bank in, its profit growth also seems impressive and I think the valuation looks good.

According to Commsec, the CBA share price is valued at 17 times FY23’s estimated earnings, while the NAB share price is valued at 12 times FY23’s estimated earnings. NAB is projected to pay a grossed-up dividend yield of 8.25% in FY23.

According to the panel of analysts that Commsec follows, only one rates NAB as a sell, while six rate NAB shares as a buy. There are also nine hold ratings.

The post Can ASX bank shares deliver in 2023 after higher interest rates? appeared first on The Motley Fool Australia.

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More reading

• How ASX dividend shares can solve retirement income needs
• My top predictions for ASX 200 shares in 2023
• Are CBA shares worth buying for dividend income in 2023?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Buy NAB and this ASX dividend share for a passive income boost: analysts

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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Retirement is an important stage of life to get right. People ideally enter retirement with a nicely-sized nest egg. With the best days of employment earnings likely behind them, receiving income from a retirement fund could be essential. Certainly, ASX dividend shares could help.

The Australian Financial Review reported that over the next decade, around 3.6 million Australians will move from the accumulation phase to the retirement phase with their superannuation, according to deputy chair of the Australian Prudential Regulation Authority (APRA) Helen Rowell. This could affect $750 billion in savings.

The newspaper quoted the principal of Moran Partners Financial Planning, Paul Moran, who said:

Average punters have no idea about how retirement income works. They understand saving for their retirement but are not sure how they get an income.

There are a number of different sources of potential income. Online savings accounts and term deposits are finally offering a good interest rate. Property rental yields are getting better and improving every month as property prices fall. However, remember that the gross rent yield and net rent yield for property are not the same.

ASX dividend shares can also play a very useful role in developing a passive income stream.

Each household’s circumstances are different, with different goals and objectives. This is where a financial planner could be very useful to create a plan.

How ASX dividend shares can help

There are plenty of ASX dividend shares that are able to offer investors a higher dividend yield than other assets can typically offer.

For example, Westpac Banking Corp (ASX: WBC) is expected to pay a grossed-up dividend yield of 8.4% in FY23, which is much higher than what its term deposits are currently offering. But term deposits are guaranteed, and the capital is also protected. Share prices can be very volatile.

Historically, share prices for plenty of businesses have gone on to recover from a widespread market drop. Just look at what happened after the GFC and the COVID-19 crash – the market went on to new heights. But that doesn’t mean that it’s not painful when investors go through volatility.

Not only can ASX dividend shares pay a good dividend yield, but some of them also have the ability to grow profit over time. This enables them to grow dividends and, hopefully, lead to a rising share price over time.

Examples of businesses that have grown their dividend for a number of years include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Sonic Healthcare Ltd (ASX: SHL), Rural Funds Group (ASX: RFF), and APA Group (ASX: APA).

Investors could also use ASX exchange-traded funds (ETFs) to invest in a broad range of businesses on the ASX, or internationally, to achieve significant diversification through one investment.

Foolish takeaway

ASX dividend shares can be a great way for an investor to generate more passive income from their investments but, generally, the higher the yield, the less consistent that dividend may be.

I’m building a portfolio of ASX dividend shares that I believe can keep growing dividends and pay for my life expenses in the future, so I fully believe in this strategy.

The post How ASX dividend shares can solve retirement income needs appeared first on The Motley Fool Australia.

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More reading

• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• Will 2023 get better for ASX 200 shares?
• The 3 ASX 200 bank shares that outperformed all others in 2022
• Brokers name 3 ASX shares to buy now

Motley Fool contributor Tristan Harrison has positions in Brickworks, Rural Funds 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare and 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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Lithium demand has been growing very strongly in recent years due to the decarbonisation megatrend.

That’s because the white metal is an essential component in the production of lithium-ion batteries, which are used to store energy in a wide range of applications. This includes electric vehicles, grid-level energy storage systems, and portable electronics.

And with the shift towards electrification and renewable energy only getting started, demand for lithium is expected to continue to increase rapidly in the next decade.

So, with supply struggling to keep up with demand, at least for now, the price of the battery-making ingredient has been trading at sky high levels in recent years. This means that ASX 200 lithium shares that are already mining the metal are printing money right now.

In light of this strong cash flow generation, a couple of ASX 200 lithium shares have been tipped to reward their shareholders handsomely with dividends in 2023.

2 ASX 200 lithium shares with 7% dividend yields

The first ASX 200 lithium share that analysts are expecting to pay a big dividend in FY 2023 is Mineral Resources Ltd (ASX: MIN).

According to a note out of Morgan Stanley, its analysts are expecting a $6.75 per share fully franked dividend this year. Based on the current Mineral Resources share price of $85.89, this will mean a 7.9% dividend yield.

Another lithium share that has been tipped to provide investors with a sizeable dividend yield in FY 2023 is Pilbara Minerals Ltd (ASX: PLS). This follows the announcement of its capital management framework late last year.

The team at Macquarie is expecting the lithium giant to pay shareholders a 34 cents per share dividend this year. Based on the current Pilbara Minerals share price of $3.93, this will mean an even larger 8.7% dividend yield from the ASX 200 lithium share in 2023.

All in all, this appears to demonstrate that the lithium industry could be a great place for income investors to look for big dividend yields in the near term.

The post 2 ASX 200 lithium shares with dividend yields over 7%. Say, what? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
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• Why are ASX 200 iron ore shares jumping higher today?
• What is the outlook for the Pilbara Minerals share price in 2023?

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 Xero Limited (ASX: XRO) share price suffered terribly in 2022, falling by around 50%. Indeed, it was a tough year for many ASX tech shares as valuations plunged.

It’s not as though many of them have reported a dramatic plunge in revenue. Investors have sold down Xero and other technology names amid the changing investment environment with higher interest rates.

Why do interest rates matter so much?

In 1994, at the Berkshire Hathaway annual general meeting, legendary investor Warren Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

With that said, are Xero shares now an excellent, beaten-up opportunity at this lower level?

Strong growth at high margins

The last time we heard, the ASX tech share continues to grow at an attractive rate. Year after year growth can certainly compound into very impressive numbers.

For a business with pleasing unit economics, higher operating revenue means the underlying profitability is increasing all the time.

In the first half of FY23, Xero’s total subscribers increased 16% to 3.5 million. Its average revenue per user (ARPU) grew by 13% to $35.30, which helped operating revenue jump 30% to $658.5 million. This level of growth is good news for Xero shares, in my view.

Xero’s gross profit margin was 87% in the FY23 first half, which is very high. That means most of the new revenue can be invested in growth efforts, such as marketing and software development. Over the long term, this can really pay off because Xero had a subscriber retention rate of over 99% in FY22 and the first half of FY23.

I think that its management is being very intentional about investing for the long term, rather than generating profits in the short term. This makes a lot of sense to me.

With a global addressable market, I think Xero still has a very long growth runway. As the business gets even larger, I think its operating profit margins will quickly start rising as management slows down the level of investment in percentage terms.

Is the Xero share price an opportunity?

I think it certainly is. In my opinion, it’s one of the most impressive businesses on the ASX. I don’t think its outlook has changed much despite everything that has happened. It’s just that we’re now able to invest in Xero shares at a much cheaper price than a year ago.

According to the analyst ratings that Commsec has collated, 12 of them think that the ASX tech share is a buy, with only one suggesting it’s a sell.

The broker Goldman Sachs currently rates Xero as a buy, with a price target of $115, according to Commsec, suggesting significant upside over the next 12 months.

The post The Xero share price tumbled 50% in 2022. Can 2023 bring a recovery? appeared first on The Motley Fool Australia.

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More reading

• My top predictions for ASX 200 shares in 2023
• 5 things to watch on the ASX 200 on Monday
• Can ASX tech shares rise from the ashes in 2023?
• Top brokers name 3 ASX shares to buy next week
• 3 ASX growth shares to buy with huge upside potential – analysts

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 Berkshire Hathaway and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Berkshire Hathaway. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.6% to 7,151.3 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to rise again on Tuesday following a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is up 0.65%, and the NASDAQ has jumped 1.6%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$74.74 a barrel and the Brent crude oil price is up 1.3% to US$79.57 a barrel. Oil prices rose on demand optimism as China’s borders reopen.

Lithium miners on watch

It could be a good day for lithium miners such as Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) on Tuesday. This follows a strong night for US-listed lithium miners such as Albemarle, Livent, and SQM. Investors were buying higher risk shares after investor sentiment continued to improve.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price rose again overnight. According to CNBC, the spot gold price is up 0.4% to US$1,876.8 an ounce. The gold price hit an eight-month high on US Federal Reserve interest rate slowdown bets.

Premier Investments goes ex-div

The Premier Investments Limited (ASX: PMV) share price is likely to trade lower on Tuesday. This is because the retail conglomerate’s shares are going ex-dividend for its upcoming dividend payment. The Peter Alexander and Smiggle owner declared a fully franked final and special dividend totalling 79 cents per share. This equates to a 3% yield at today’s price.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Will 2023 bring gains for ASX 200 shares? Here’s what Citi is forecasting
• Mineral mania: 5 ASX 200 mining shares smashing new highs on Monday

Motley Fool contributor James Mickleboro has positions in Allkem. 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 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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