Category: Stock Market

If you’re looking for dividend shares to buy for 2023 to boost your passive income, then you may want to look at the two listed below.

Here’s why analysts rate these growing ASX 200 dividend shares highly:

Santos Ltd (ASX: STO)

The first ASX 200 dividend share that could be a buy is Santos.

It is one of the region’s largest energy producers, aiming to deliver production of 103-106 million barrels of oil equivalent (mmboe) in FY 2022.

The team at Morgans is positive on the company due to its “growth profile and diversified earnings base.” The broker believes this leaves it “well placed to outperform against a backdrop of a broader sector recovery.”

Morgans is expecting this to underpin dividends per share of 23 cents in FY 2022 and 24.4 cents in FY 2023. Based on the current Santos share price of $6.99, this will mean yields of 3.3% and 3.5%, respectively.

Morgans has an add rating and $9.00 price target on its shares, which suggests material upside potential in 2023.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that could be a buy is Woolworths.

Goldman Sachs is a very big fan of the retail giant. It likes the company due to its strong market position and digital leadership. The broker expects the latter to support further market share and margin gains in the coming years, which bodes well for its earnings and dividend growth.

In the meantime, it is forecasting fully franked dividends of $1.02 per share in FY 2023 and $1.13 per share in FY 2024. Based on the current Woolworths share price of $33.21, this will mean yields of 3.1% and 3.4%, respectively.

Goldman currently has a conviction buy rating and $41.70 price target on the company’s shares.

The post Buy these growing ASX 200 dividend shares in 2023: experts 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 are ASX 200 energy shares falling today?
• 5 things to watch on the ASX 200 on Tuesday
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• 5 things to watch on the ASX 200 on Thursday

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.

from The Motley Fool Australia https://ift.tt/treRaD0

If you want to snap up the upcoming Premier Investments Limited (ASX: PMV) dividend, then you’ll have to move fast.

That’s because this retail conglomerate’s shares are due to trade ex-dividend next week.

The Premier Investments dividend

Premier Investments released its full year results for FY 2022 all the way back in September.

For the 12 months, the company reported a 5.2% increase in sales to $1,497.5 million and a 10.1% jump in earnings before interest and tax (excluding one-offs) to $335 million.

This was underpinned by record Peter Alexander sales of $428.5 million and a 24.6% rebound in Smiggle sales to $261.2 million.

In light of this solid performance and its very strong balance sheet, the Premier Investments board declared a fully franked final dividend of 54 cents per share and a fully franked special dividend of 25 cents per share.

This took the Premier Investments dividend to 125 cents per share for the year, which was an impressive 56.3% increase year over year.

In order to receive the final and special dividends, investors will need to be on the company’s share registry before its shares trade ex-dividend on Tuesday 10 January. On and after that date, anyone that buys Premier Investments shares will not receive the dividend payments.

Should you buy Premier Investments shares?

Buying an ASX share just to receive an upcoming dividend – a term called dividend stripping – is a risky strategy.

However, if you’re interested in receiving its final and special dividends, which will provide a 3.1% yield, and holding its shares long into the future, then one leading broker would be supportive of this plan.

According to a recent note out of Macquarie, its analysts have an outperform rating and $29.00 price target on its shares.

Based on where Premier Investments shares are currently trading, this implies a return of almost 14% for investors over the next 12 months. And if you throw in the expected dividend payments between now and this time next year, the total potential return is closer to 19%.

The post Should you buy Premier Investments shares before they trade ex-dividend next week? 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

• Leading brokers name 3 ASX shares to buy today
• How to swap your job for $75,000 in retirement income using ASX dividend shares
• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• Top brokers name 3 ASX shares to buy today
• ASX 200 correction: A once-in-a-lifetime chance for supercharged passive income!

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 recommended Premier Investments. 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/wgFm408

The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 17.8% in 2022.

Flight Centre shares closed 2021 trading at $17.62 each and ended 2022 swapping hands for $14.49 apiece.

For some context, the S&P/ASX 200 Index (ASX: XJO) dropped 5.5% over the past calendar year.

So far, the first two trading days of 2023 have been a mixed bag for the Flight Centre share price.

Yesterday, the travel stock closed down 0.7%. In late afternoon trading today, shares are up 1.74% to $14.64.

So what’s in store for the year ahead?

Is the travel stock set to take off?

Following the past year’s fall, the Flight Centre share price remains down 59% from where it was shortly before the COVID-fuelled market sell-off.

Yet many ASX 200 investors believe the stock has further to fall.

Flight Centre shares are the most shorted on the Australian share market, with a massive 14.7% of its shares held short.

As my Fool colleague James Mickleboro noted last week, Flight Centre shares were the most shorted on the ASX, with 14.7% of the company’s shares held short on 30 December.

Investors are likely skittish over the company’s struggles to return to profitability.

After posing hefty losses in FY21, Flight Centre reported a statutory loss before tax of $378 million for FY22. That’s a 37% improvement from the losses of the prior year. But still…

Potential headwinds for the Flight Centre share price in 2023 include any significant delays with the global reopening.

The biggest risk there at the moment looks to be China. COVID cases in the Middle Kingdom are skyrocketing following the nation’s reopening last month. This has seen numerous countries, Australia included, reintroduce virus testing for Chinese travellers.

Should the situation come under control in short order, without major disruptions to international travel demand, the Flight Centre share price could be one to benefit.

Other headwinds for ASX 200 investors to bear in mind are the impacts of further interest rate hikes and continuing high inflation. Both of these will see consumer spending power eroded by more than any expected wage increases in 2023.

And at the end of the day, air travel – pent-up demand or not – will take a back seat to making mortgage payments. Or fuelling up the family car.

With that said, a number of brokers, while not actively recommending Flight Centre, have a positive outlook on its share price.

Macquarie has a price target of $17.35; Citi has a price target of $16.60; and Goldman Sachs has a price target of $16.10. All three brokers have a neutral rating on Flight Centre shares.

The stock is currently trading for $14.64 per share.

How has the Flight Centre share price performed longer-term?

As mentioned up top, and shown in the chart below, the Flight Centre share price dropped 18% in 2022.

Longer-term investors who snapped up shares in the travel stock on 19 March 2020, following the sharp pandemic fire sale, are sitting on gains of 64%.

The post The Flight Centre share price nosedived 18% in 2022. Is it preparing for take-off in 2023? 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

• What could gas caps mean for the Woodside share price?
• ANZ shares were slaughtered in 2022. Does the new year bring fresh hope?
• Forget gold! Here’s why I’d buy ASX 200 dividend shares to hedge against inflation
• 5 things to watch on the ASX 200 on Wednesday
• Broker tips significant upside for the Woodside share price

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 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.

from The Motley Fool Australia https://ift.tt/2qOI5mx

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and is racing higher. At the time of writing, the benchmark index is up 1.5% to 7,048.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Appen Ltd (ASX: APX)

The Appen share price is up 6.5% to $2.59. As well as a rebound in the tech sector, this artificial intelligence data services company’s shares were given a boost from a broker note out of Jefferies. According to the note, the broker believes Appen will deliver revenue of US$393 million in FY 2022, which is at the top end of its guidance range. And while Jefferies only has a hold rating on Appen’s shares, its price target of $3.10 is meaningfully higher than current levels.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 3.5% to $27.44. This wealth management platform provider’s shares were also given a boost from a note out of Jefferies. Its analysts believe HUB24 could double its market share over the next decade.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 2.5% to $11.39. This follows another rise in the gold price overnight, which took the precious metal to a six-month high. This has led to the S&P/ASX All Ordinaries Gold index rising 2.2% this afternoon.

Pointsbet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 6% to $1.59. In addition to benefiting from a tech rebound, an announcement yesterday could be giving PointsBet’s shares a lift. On Tuesday, the sports betting company announced its launch in the state of Ohio in the United States. This marks the company’s 14th online sports betting operation in the country.

The post Why Appen, Hub24, Northern Star, and PointsBet shares are racing higher today 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

• 3 best ASX 200 gold shares of 2022
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why ASX 200 gold shares top my 2023 investment radar
• Why Appen, Core Lithium, Paradigm, and Sayona Mining shares are racing higher

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 Appen, Hub24, and PointsBet. The Motley Fool Australia has positions in and has recommended Hub24. The Motley Fool Australia has recommended PointsBet. 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/R0AFKg7

Dialling in a decent dividend income in 2023 could prove difficult if the pundits are right about an incoming recession. Fewer dollars being spent by consumers could mean fewer dividends for ASX shares to hand out.

On the other hand, interest rates are estimated to be near their peak. A recent survey of economists conducted by The Australian Financial Review implies two more rises before The Reserve Bank of Australia hits the pause button.

If both were 0.25% increases, we’d be looking at a 3.6% cash rate. In all likelihood, that could mean savings accounts offering around 5%. Not too shabby for a risk-free return on your money.

However, there are two factors to consider before loading up on cash:

• The return would still be negative when adjusted for inflation at the current 6.9% rate; and
• Interest rates are likely to fall again at some point in the future

If all you want is the highest possible yield, these ASX 200 dividend shares are beating inflation and savings rates right now.

Gargantuan ASX dividend yields on offer in 2023

You might initially think you’d need to look outside the S&P/ASX 200 Index (ASX: XJO) for companies advertising a yield greater than 10%.

It sounds too good to be true… something that would be limited to the speculative end of town. Yet, here I am disclosing five ASX shares with the highest yields right now — all above a whopping 10%.

Kicking us off at number five is the global mining beast, BHP Group Ltd (ASX: BHP). Not only has Australia’s largest listed company by market capitalisation outpaced the benchmark index by 15% over the last year; but it also touts a tasty 10.1% dividend yield.

Beating out BHP with dividend yields of 11.4% and 12.9% respectively are Tabcorp Holdings Limited (ASX: TAH) and Smartgroup Corporation Ltd (ASX: SIQ). The former enjoyed a 13.7% upwards run in its share price over the past 12 months; the latter suffered a sickening 33% decline.

Smartgroup’s mouthwatering 12.9% yield could be in jeopardy in the future following a reduction in the salary packaging and leasing company’s interim dividend.

Finally, who are the chart toppers among ASX 200 dividend shares right now? Well, unlike last year, it isn’t two iron ore mining companies. Instead, New Hope Corporation Limited (ASX: NHC) and Magellan Financial Group Ltd (ASX: MFG) are the belles of the yield ball.

The New Hope share price (shown above) and dividend yield have exploded since a year ago. Now, investors of this coal producer can bag themselves a 14.8% dividend yield based on the trailing 12 months.

However, the dividend yield champion — Magellan Financial Group — has been dealt a 51% blow to its share price during the last year. But, payouts have remained relatively resilient, boosting this ASX dividend shares’ yield to a dazzling 19.2%.

The post These are the highest-yielding ASX 200 dividend shares right now 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

• Can the BHP share price deliver in 2023?
• These were the 5 top-performing ASX All Ords shares of 2022
• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• Why HT&E, Seven West Media, Tabcorp, and Weebit Nano shares are rising

Motley Fool contributor Mitchell Lawler has positions in Smartgroup. 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 Smartgroup. 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/BL34l5O

The S&P/ASX 200 Index (ASX: XJO) has returned to form on Wednesday and is charging higher. In afternoon trade, the benchmark index is up 1.4% to 7,043.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Audio Pixels Holdings Ltd (ASX: AKP)

The Audio Pixels share price is down a further 6% to a 52-week low of $9.50. Last week, this digital speaker developer revealed that it is facing further delays with its placement. Though, delays are nothing new for Audio Pixels shareholders. Investors have been waiting over a decade for the company’s speakers to be released.

Bowen Coking Coal Ltd (ASX: BCB)

The Bowen Coking Coal share price is down 3% to 30.2 cents. A number of coal miners are falling again today. This may be down to concerns that coal prices may not be as strong in 2023 and are locking in some of the stellar gains that were recorded over the last 12 months.

Pantoro Ltd (ASX: PNR)

The Pantoro share price is down 10% to 9 cents. This morning the gold miner and Tulla Resources Group Pty Ltd (ASX: TUL) revealed that they are in discussions in relation to a potential transaction to combine the ownership of the gold asset at Norseman into a single Pantoro entity. The two are joint venture partners at Norseman. It also revealed that the Halls Creek mine will be placed on care and maintenance.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 2% to $34.61. Investors have been selling energy shares today after oil prices pulled back overnight. Traders were selling down oil amid concerns that Chinese demand could be softer than expected due to rising COVID cases.

The post Why Audio Pixels, Bowen Coking Coal, Pantoro, and Woodside shares are dropping 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

• What could gas caps mean for the Woodside share price?
• Why are ASX 200 energy shares falling today?
• 5 things to watch on the ASX 200 on Wednesday
• Broker tips significant upside for the Woodside share price
• How I’d invest $1,000 in ASX 200 shares for rising inflation

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.

from The Motley Fool Australia https://ift.tt/xn5akiw

The market is back in the green and these two S&P/ASX 300 Index (ASX: XKO) shares are making the most of it. They’ve rocketed to trade at their highest point in more than 12 months.

It comes as the index bounces back from yesterday’s carnage. After starting the year off with a 1.28% tumble, the ASX 300 is up 1.43% at the time of writing, trading at 7,045 points.

So, which market favourites are riding the wave to long-forgotten heights? Let’s take a look.

2 ASX 300 shares posting new 52-week highs

The first ASX 300 share posting a new 52-week high on Wednesday is diversified mining contract services provider NRW Holdings Limited (ASX: NWH).

Stock in the company surged 3.94% earlier today to peak at $2.90. That marks its highest point in nearly two years.

Interestingly, there’s been no news from the industrial stock to explain today’s gain. Though its subsidiary Golding Contractors is set to kick off a $230 million mining services agreement this month, as the ASX-listed company announced in December.

The last 12 months have been a good time to be invested in the ASX 300 share. It has gained a whopping 58% since this time last year.

Posting a new 52-week high alongside shares in NRW Holdings is former market darling A2 Milk Company Ltd (ASX: A2M).

The milk and baby formula company’s stock hit a high of $7.07 earlier today, marking a 4.43% gain. That’s the highest the stock has traded since May 2021.

Interestingly, there’s been no price-sensitive news from the company in months.

Though, as my Fool colleague Tristan recently noted, A2 Milk could be among those set to benefit from China’s reopening. A fair chunk of its earnings was once derived from daigou buyers.

The last 12 months have been good to A2 Milk stock. The ASX 300 company’s share price has risen 26% since this time last year.

The post 2 ASX 300 shares soaring to new 52-week highs today 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

• Can these 2 ASX 200 shares crush the market again in 2023?
• 3 ASX shares near 52-week highs I think can climb higher
• I think these 3 ASX shares could benefit from a Chinese tourism boom
• Could A2 Milk shares pay a dividend in 2023?
• Here are the top 10 ASX 200 shares today

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 recommended A2 Milk. 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/5Z0aLtX

It certainly was an eventful year for Pilbara Minerals Ltd (ASX: PLS) shares.

As you can see on the chart below, the lithium miner’s shares traded as high as $5.66 before finishing the year at $3.77.

While this still meant that Pilbara Minerals shares ended the year with a 17% gain, it could have been so much better for shareholders.

What happened to Pilbara Minerals shares in 2022?

Investors were scrambling to buy the lithium giant’s shares last year due to its strong performance in FY 2022.

Thanks to sky high lithium prices, Pilbara Minerals reported a 577% increase in revenue to $1.2 billion and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $814.5 million. The latter was up massively from just $21.4 million in FY 2021.

And with Pilbara Minerals’ online lithium auctions continuing to command higher and higher prices for much of the year, investors were betting on another stellar result in FY 2023.

Furthermore, management revealed that it would pay its maiden dividend in 2023, much to the delight of shareholders.

However, a couple of bearish broker notes late in the year claiming that lithium prices could soon collapse caused investors to panic.

The selling then intensified after Pilbara Minerals released a digital auction which revealed a month on month decline in the price commanded for its lithium on the platform.

What’s next?

Opinion remains divided on where Pilbara Minerals shares are heading in 2023.

The team at Macquarie remain positive and expect lithium prices to remain strong. As a result, the broker has put an outperform rating and $7.50 price target on its shares. This suggests that its shares could double in 2023.

Whereas Credit Suisse has an underperform rating and lowly $2.60 price target on its shares. This implies potential downside of 30% for investors from current levels.

Time will tell which broker made the right call.

The post Why did 2022 bring such huge highs and lows for Pilbara Minerals shares? 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

• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 lithium shares running on empty today?
• Why Invictus Energy, New Hope, Pilbara Minerals, and WiseTech shares are dropping
• Why has the Core Lithium share price fallen 26% in a month?
• 5 things to watch on the ASX 200 on Tuesday

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.

from The Motley Fool Australia https://ift.tt/KRtLjA3

The Woodside Energy Group Ltd (ASX: WDS) share price is down 1.83% during the lunch hour, at $34.70 per share.

This comes as investors eye the potential impact of fast-spreading COVID cases in China on energy demand. Concerns that saw Brent crude oil prices dip 4.4% overnight.

S&P/ASX 200 Index (ASX: XJO) energy share investors are also keeping an eye on the potential impact of the government price caps on gas, and how this might impact the Woodside share price.

What’s happening with the gas price caps?

In December, the government’s proposal to cap the price of coal and gas sold in domestic markets passed through the Senate despite opposition from the crossbench.

The government made the move, citing concerns over soaring electricity costs in 2023 as gas prices rocketed in 2022 amid the Russian invasion of Ukraine.

According to the government website, the “emergency, temporary price cap on new domestic wholesale gas sales by east coast producers will be implemented for 12 months to help keep wholesale gas contract prices under control”.

The government intends to set this cap at $12/GJ, noting it believes this is “a reasonable price allowing for the key costs of domestic supply, including a reasonable return on capital, for gas sourced from currently operational fields”.

According to data from the Australian Competition and Consumer Commission, before Russia invaded Ukraine, 96% of the 289 domestic supply offers on the east coast in 2021 for supply in 2023 were below $12/GJ. The average offer came in at $9.20/GJ.

Gas from undeveloped fields will not be impacted by the price caps.

To date, the Woodside share price has largely shrugged off the price caps. Shares are down about 2.5% since the legislation passed the Senate.

Not that Woodside CEO Meg O’Neill is pleased about the caps.

O’Neill stated:

The policy will not address falling domestic gas supply and the increasingly critical role of gas in providing dispatchable power… We need to unlock gas supply now.

Woodside has been looking at options to increase supply, including through new LNG import terminals, exploration spending and further development on the east coast. Unfortunately, the proposed market intervention will make it very difficult for industry to economically invest to increase supply.

The final impact on the Woodside share price remains to be seen.

But I suspect that the company’s performance will hinge more on global oil and gas prices than the temporarily, artificially suppressed domestic gas prices.

Woodside share price snapshot

As you can see in the chart below, the Woodside share price has enjoyed a strong year, up 53% over the past 12 months. For some context, the ASX 200 is down 7% over this same period.

The post What could gas caps mean for the Woodside share price? 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

• ANZ shares were slaughtered in 2022. Does the new year bring fresh hope?
• Why are ASX 200 energy shares falling today?
• Forget gold! Here’s why I’d buy ASX 200 dividend shares to hedge against inflation
• 5 things to watch on the ASX 200 on Wednesday
• Broker tips significant upside for the Woodside share price

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 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/db3sIi1

I believe investing a small portion of my portfolio in high-yielding ASX income shares could up my annual returns by a quarter. My secret ingredient? Diversification.

Why I would diversify to bolster returns

Say I held a portfolio of shares capable of offering a stable 5% return annually. Such a return – considering both capital gains and dividends – is relatively modest. Though, it’s likely also comparatively safe.

But what if I told you there might be a way I could have my cake and eat it too? That is, investing a small portion of my portfolio in high-yielding ASX shares.

Plenty of quality ASX dividend shares are likely trading for a discount following 2022’s market downturn.

Many of those could be capable of returning more than 10%, including both share price gains and dividends, at their current prices.

How I might boost my ASX portfolio‘s annual return by 25%

Now, I wouldn’t want to give up my core portfolio in a bid to realise higher returns. What I might do, however, is create a smaller high-yield ASX portfolio to sit alongside it.

I might aim to build up my high-yield portfolio to a quarter of the size of my core portfolio, taking care to only add shares I believe can outperform the market over the long term.

If I could find a handful of shares capable of providing an average 10% annual return, my portfolio’s predicted performance might look like this:

Portion of my portfolio	Expected annual return
75%	5%
25%	10%
100%	6.25%

Thus, I could bump my total projected annual return from 5% to 6.25% – increasing it by 25% – by investing in a shadow portfolio of high-yielding ASX shares.

Though, it’s worth noting no investment is guaranteed to provide returns and past performance isn’t an indication of future performance.

Risk vs reward

You might be reading this and wondering why I wouldn’t just build my entire portfolio from shares I believe could return more than 10% annually.

My reasoning is simple: Higher rewards generally come with higher risks.

Rarely will a blue chip share return 10% in a single year. However, that sort of return is often common among growth stocks.

Thus, diversification can help an investor make the most of various investing enclaves, while still offering some protection from market swings.

Additionally, an investor’s tolerance for risk and volatility should largely determine the makeup of their ASX portfolio. Personally, I’d be comfortable with a 75%-stable and 25%-high-yield mix, and the diversification such a make up can offer.

The post How a high-yield ASX income portfolio could boost my annual returns by 25% 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

• ANZ shares were slaughtered in 2022. Does the new year bring fresh hope?
• How I’d invest $2,000 like Warren Buffett in 2023
• The Qantas share price soared 20% in 2022. Can it maintain altitude in 2023?
• These were the 3 best performing ASX lithium shares of 2022
• Can the BHP share price deliver in 2023?

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/WG7Xmbj