Category: Stock Market

Lithium has been the hot commodity among stock investors in recent years, but ASX investors are reminded that’s not the only material required to make batteries.

Copper has been used for centuries as a conductor of electricity and is required in significant amounts for both electronic circuitry and batteries.

Maqro Capital head of trading Mark Gardner pointed out last month that there’s currently an over-reliance on one particular region to supply copper to the world.

“The two biggest global producers of copper are Chile and Peru. Together, the South American powerhouses make up 43% of the world supply,” Gardner posted on Livewire.

“They also happen to be in political disarray.”

So any copper producers outside that part of the planet may do pretty well in the coming years.

Last man standing on the ASX

For Wilson Asset Management equities dealer William Thompson, the planets have aligned for Sandfire Resources Ltd (ASX: SFR).

“They’ve got some strong cash flow coming through next year,” he said on a Wilson video.

“That’s on the back of the Botswana asset, which is nearly into production.”

Red Leaf Securities chief John Athanasiou agreed with Thompson earlier this month, saying copper is “a critical element in producing batteries for electric vehicles”. 

“Copper is a dominant revenue stream for Sandfire,” he said.

“It produced more than 48,000 tonnes of copper in the first half of fiscal year 2023.”

The Sandfire share price has risen an amazing 78% since October.

The company’s Spanish operations have much upside, according to Thompson.

“I think it’s starting to get more de-risked as we go into the year,” he said.

“At today’s valuation it’s a buy.”

Gardner said that Sandfire Resources is “one of the last large cap copper plays left on the ASX”.

“Given the strong copper price dynamics, we see strong potential for the company to exceed revenue expectations.”

The post Copper’s so hot right now: Expert names best ASX mining stock to buy appeared first on The Motley Fool Australia.

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

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

More reading

• Here’s what Morgans is saying about the Sandfire share price
• 3 top ASX mining shares I’d buy right now
• Here are the top 10 ASX 200 shares today
• 3 ‘quality’ ASX shares to buy now before they rocket: experts
• Sandfire share price slides as profits turn to losses

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.

from The Motley Fool Australia https://ift.tt/5myZOMK

On Thursday, the S&P/ASX 200 Index (ASX: XJO) tumbled deep into the red. The benchmark index fell 0.7% to 6,968.6 points.

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

ASX 200 expected to fall again

The Australian share market looks set to end the week on a subdued note following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is flat, and the NASDAQ index is up 0.7%.

Oil prices tumble

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.5% to US$69.53 a barrel and the Brent crude oil price is down 1.45% to US$75.59 a barrel. Traders appear concerned that rising rates could hurt the global economy and weigh on demand.

Block hit by short seller attack

The Block Inc (ASX: SQ2) share price is likely to crash lower today after the payments company was hit by a short seller attack. Hindenburg Research, which recently went after the Adani Group, claims that the company’s flagship Cash App product facilitates crime and lacks strong compliance controls.

Gold price charges higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price charged higher overnight. According to CNBC, the spot gold price is up 2.5% to US$1,998.4 an ounce. Traders were buying gold on the belief that the US Federal Reserve may pause its rate hikes.

Dividend payday

A number of ASX 200 shares will be paying their latest dividends on Friday. This includes energy companies AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG), lithium miner Pilbara Minerals Ltd (ASX: PLS), and health imaging technology company Pro Medicus Limited (ASX: PME),

The post 5 things to watch on the ASX 200 on Friday 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

• Telstra shares: Bull vs. Bear
• Buy Pilbara Minerals and this exciting ASX growth share: analysts
• Here are the top 10 ASX 200 shares today
• Here is a pair of ASX 200 shares I would buy and never sell
• Here are the 3 most heavily traded ASX 200 shares 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 positions in and has recommended Block and Pro Medicus. The Motley Fool Australia has positions in and has recommended Block and Pro Medicus. 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/JE5Nk0e

Telstra shares have outperformed the S&P/ASX 200 Index (ASX: XJO) in the year to date.

The telco’s share price has delivered an exceptional 6% return since the start of the year.  By comparison, the benchmark ASX index is barely keeping its head above water so far in 2023, up by 0.3%.

Telstra is the top communications share by market capitalisation on the ASX and has long been a reliable blue-chip share. However, over the past month, Telstra shares have traded sideways, closing at $4.19 a share on Thursday.

So is now the time to pounce on the telco behemoth, or could there be trouble ahead?

Let’s take a look at what two Foolish team members had to say about the bull and bear case for Telstra shares.

The bull case for Telstra shares

By Monica O’Shea: I am long-term bullish on Telstra shares based on multiple strengths.

Firstly, Telstra appears to be focused heavily on growth and making progress on its T25 strategy. On the network side, Telstra‘s 5G network is the largest in Australia and covers 81% of the population, close to the company’s FY23 target of 85% of the population.

Telstra’s CEO Vicki Brady sees the mobile business as central to the company’s T25 growth. Further, Telstra’s InfraCo assets may deliver value for shareholders in the future, some experts predict. Infraco could be worth about $22 to $23 billion, according to Goldman Sachs.

Secondly, Telstra shares could be trading at a discount if analysts are correct. High-profile brokers, including Goldman Sachs, see significant growth in the telco’s share price. Goldman has a buy rating on Telstra with a $4.60 price target, while Morgans can see Telstra shares reaching $4.70.

Thirdly, Telstra’s half-year results were solid on a number of key metrics. In 1H23, Telstra’s earnings before interest, taxes, depreciation and amortisation (EBITDA) soared 11.4% and total income grew 6.8%. Telstra’s net profit after tax (NPAT) lifted 25.7% in 1H23 compared to the prior corresponding half. This could bode well for the future.

Fourthly, the Telstra dividend is extremely reliable and, in fact, has increased in the past year. Telstra maintained its dividend during COVID and this year lifted its interim dividend to 8.5 cents per year, 6.25% more than the prior corresponding half. Telstra also delivered an 8.5 cents per share final dividend last year.

Overall, I see the Telstra share price as a safe share to invest in over the long term.

The bear at the other end of the line 

By Mitchell Lawler: I want to provide a caveat to my bearish stance before we get underway. Telstra, as a business, is rather impressive. The service it provides to Australians, particularly in regional and remote areas, is unrivalled. However, there are plenty of ‘impressive’ companies that fail to have the makings of an outperforming investment. 

One of my main gripes with Telstra is that the real crown jewel of the company is its mobile network. The rest of the business – including Fixed and InfraCo – offers marginal growth, if not erosion, to the company’s EBITDA. 

There is a chance that management will look to sell off these less-performing assets to unshackle what looks to be an anchor. Personally, I believe that would be a step in the right direction for Telstra shares — pivoting toward a higher growth area of telecommunications. 

In saying that, the mobile segment is not without its drawbacks. After TPG’s merger with Vodafone Hutchinson Australia, there are now two formidable competitors (TPG Telecom Ltd (ASX: TPG) and Optus) to Telstra’s market dominance.

As we all know, the mobile industry does not stand still – 2G, 3G, 4G, 5G. I believe each generation of new technology poses an execution risk for Telstra, which will be more prominent in the future now with well-capitalised competition. 

At the end of the day, Telstra’s moat is its infrastructure and the enormous capital required to replicate it. Though, with time, I’m not sure this moat will be as wide as management and shareholders had hoped. 

Already we can see the Australian telco giant is attempting to stave off encroachment by offering an ‘olive branch’ to TPG through a 10-year network-sharing arrangement. This would have made TPG reliant on Telstra and inserted a hefty gap in Telstra’s infrastructure lead, but the proposal has been thrown out by the competition watchdog.

If the competition is willing to play the long game, investing in their own infra, I think we could see Telstra’s mobile business decline in the same way its broadband business has over the years, demonstrated by the chart above. 

Given these risks, a price-to-earnings (P/E) ratio of around 26 times on Telstra shares is a tad too rich to be palatable in my opinion.

The post Telstra shares: Bull vs. Bear appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Here is a pair of ASX 200 shares I would buy and never sell
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others
• Why is the National Storage share price down 5% today?

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 Telstra Group. The Motley Fool Australia has recommended TPG Telecom. 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/nE8DGuO

When it comes to buying, selling, and investing in ASX shares, I like to keep one of the legendary Warren Buffett’s quotes in mind.

In his 1988 letter to the shareholders of Berkshire Hathaway Inc, Buffett said the following:

We expect to hold these securities [Coca-Cola and Freddie Mac] for a long time. In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.

When I buy an ASX share, I also keep in mind another Buffett quote, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

If you never have to worry about what price you’d sell an ASX share for, it takes away half of the stress of investing in it.

With that in mind, here are three ASX shares that I would buy with the full intention of having them in my brokerage account when I die.

2 ASX 200 shares I would never sell

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Washington H. Soul Pattinson, or Soul Patts as it’s more easily known, is an ASX 200 veteran investment house. Its primary business is owning a portfolio of other ASX shares and assets on behalf of its investors. Soul Patts just reported its latest earnings this morning, and boy, were they impressive.

The company reported a 38.4% rise in profits, as well as a 21.4% hike to its dividend. But this company has been delivering for its shareholders for decades.

In its report today, the company proudly announced that it has achieved an average shareholder return for its investors of 12.4% per annum over the past 20 years. That’s an outperformance of 3% per year over the broader market. That’s enough to convince me that this ASX share is a timeless winner.

Brickworks Ltd (ASX: BKW)

Another ASX 200 winner in my view is building and construction materials company Brickworks. As it happens, Brickworks also reported its latest earnings this morning. And they were just as impressive as Soul Patts’. Profits were up a pleasing 24%, which allowed Brickworks to boost its dividend by 5%.

While not quite as impressive as Soul Patts’ historical performance, Brickworks still told investors that it has delivered an annual return of 10% over the past 20 years. This company also has the distinction of not cutting its dividend in more than 40 years.

Brickworks has astutely built up a portfolio of other assets, including shares and property, that help it survive the cyclical nature of its core business. Due to its long and proud history of delivering for shareholders, this is another company you couldn’t convince me to part ways with.

The post Here is a pair of ASX 200 shares I would buy and never sell appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others
• Is this the cheapest ASX 200 dividend share to buy today?
• Why is the National Storage share price down 5% today?
• Why Brickworks, Healius, Mincor, and Northern Star shares are rising today

Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway, Coca-Cola, 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 Berkshire Hathaway, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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.

from The Motley Fool Australia https://ift.tt/bwpQuH9

The S&P/ASX 200 Index (ASX: XJO) is sadly back in the red today after what was an encouraging few days of trading. After the strong recovery we witnessed over the past two days, the ASX 200 is back to a loss so far this Thursday.

At the time of writing, the Index is presently nursing a 0.69% fall, which has dragged the ASX 200 back under 7,000 points.

That’s not a reason to pack up and go home though. So let’s focus on something else — the shares that are currently topping the ASX 200’s share trading volume charts right now, according to investing.com. See if you can spot a trend with today’s stocks.

The 3 most traded ASX 200 shares by volume this Thursday

Core Lithium Ltd (ASX: CXO)

After a long absence from this list, ASX 200 lithium share Core Lithium returns first up today. So far this session, a hefty 20.16 million Core shares have made their way across the ASX boards. We have seen some news out of this lithium miner this Thursday.

As we covered this morning, Core has announced a lithium spodumene concentrate sales agreement with Chinese company Sichuan Yahua from its Finniss lithium project. But investors don’t seem too impressed, with Core Lithium shares down a nasty 3.54% so far today to 76 cents a share.

It was even worse this morning too, with the company dropping as low as 72 cents (down almost 7%). All of these developments probably explain the high volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Next up we have another ASX 200 lithium stock in Pilbara Minerals. A sizeable 33.53 million Pilbara shares have swapped hands as it currently stands.

Unlike Core Lithium, we haven’t had any news out of Pilbara this session to speak of. However, Pilbara is also suffering a depressing share price loss over today’s trade thus far. At present, the leading lithium share is suffering a 4.44% fall to trade at $3.44 each after falling close to 7% this morning. It looks like this drop is to blame for the high trading volumes on display.

Sayona Mining Ltd (ASX: SYA)

Our third, final, and most traded ASX 200 share today is yet another lithium producer in Sayona Mining. This session has seen a whopping 52.75 million Sayona shares bought and sold on the markets so far. This looks like a very similar situation to that of Pilbara – no news but a big share price drop.

Unfortunately for Sayona investors, this lithium share has cratered by a horrid 7.5% today, down to 18.5 cents a share. This loss, together with Sayona’s relatively large share count, is the likely reason this company leads out trading volumes this Thursday.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday 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

• Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others
• Why is the Pilbara Minerals share price sliding today?
• Investing in ASX 200 lithium shares? You’ll want to read this
• Why are ASX lithium shares sinking today?
• Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today

Motley Fool contributor Sebastian Bowen 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/pwlvai3

It has been a great day for the Panoramic Resources Ltd (ASX: PAN) share price.

In afternoon trade, the ASX nickel share is up 15% to 15.5 cents.

Investors have been scrambling to buy its shares after it was the subject of a bullish broker note.

Who is bullish on this ASX nickel share?

The team at Morgans is bullish on Panoramic Resources and is tipping major upside for its shares over the next 12 months.

According to a note, the broker has retained its add rating with a 25 cents price target.

Based on the current Panoramic Resources share price, this implies potential upside of 61% for this ASX nickel share between now and this time next year.

Why is Morgans bullish?

The broker notes that Panoramic Resources has just released an updated mine plan for the Savannah Nickel Operation, which underlines a 12+ year operating life, with strong upside to extend.

In addition, it highlights that its operations are steadily ramping up and design production levels are forecast to achieve its target mine rate of 960ktpa in early FY 2024.

Morgans believes this leaves it well-placed to deliver strong earnings growth in the coming years. In fact, it is forecasting a net profit of $5.8 million this year. After which, it forecasts $22.2 million in FY 2024 and $43.4 million in FY 2025.

In light of this, the company is the broker’s preferred nickel exposure on the ASX right now. It commented:

PAN is our preferred nickel exposure on the ASX with a 12+ year mine life, on track to reach nameplate production this year, and significant exploration at both Savannah, Savannah North and regional targets.

While our DCF valuation is built on PAN’s published study operating life only, based on recent positive drilling results beneath Savannah workings, and open-ended mineralisation at Savannah North, we see strong potential to increase the mine life through upcoming exploration and Resource definition drilling to re-classify Inferred and Indicated Resources into mineable Reserves.

PAN also produces copper and cobalt in concentrate, giving significant by-product credits and additional revenue over the life of mine.

The post Buy this ASX nickel share for 60%+ upside: Morgans 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others
• ASX 200 gold shares are defying today’s sell-off. Here’s why
• How to make $500 of monthly income from CBA shares
• Is this the cheapest ASX 200 dividend share to buy today?
• Buy this ASX ETF for retirement 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 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/EQaIv0O

No doubt, some market watchers consider S&P/ASX 200 Index (ASX: XJO) bank shares a boring investment. But what if I told you one ASX 200 bank share currently boasts a dividend yield of more than 7%.

That’s right, one of Australia’s biggest banks offers a passive income-to-share price ratio many mining stocks would envy.

So, which S&P/ASX 200 Financials Index (ASX: XFJ) giant is behind the burgeoning dividend stat? Keep reading to find out.

The highest dividend yield of all ASX 200 bank shares is….

ASX 200 investors would be hard-pressed to avoid bank stocks. Indeed, the financial sector accounts for nearly a third of the entire index’s value.

But it’s not $164 billion financial giant Commonwealth Bank of Australia (ASX: CBA) that offers the highest dividend yield. Nor is it one of its big four peers.

That crown goes to regional competitor Bank of Queensland Ltd (ASX: BOQ). Take a look for yourself:

ASX 200 bank	Dividends declared in the last year	Share price	Trailing yield
Bank of Queensland	46 cents	$6.52	7%
ANZ Group Holdings Ltd (ASX: ANZ)	$1.46	$22.77	6.4%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	55.5 cents	$8.94	6.2%
Westpac Banking Corp (ASX: WBC)	$1.25	$21.41	5.8%
National Australia Bank Ltd (ASX: NAB)	$1.51	$27.80	5.4%
Commonwealth Bank	$4.20	$96.95	4.3%
Macquarie Group Ltd (ASX: MQG)	$6.50	$171.24	3.8%

So there you have it, folks. The dividend yield on offer from Bank of Queensland shares at the time of writing means a $10,000 investment could herald $700 of annual passive income. That’s certainly nothing to scoff at!

Coming up in its dust is ANZ at 6.4%, while fellow regional player Bendigo Bank offers a 6.2% dividend yield.

But there might be more to the Bank of Queensland’s apparent dividend superiority.

The stock has underperformed all its ASX 200 banking peers’ over the last 12 months, falling 23% in that time. That’s compared to the ASX 200’s 5% tumble (see below) and the financial sector’s 11% slump.

That fall means Bank of Queensland’s shares now appear to be priced cheaper in comparison to dividends than they otherwise may have.

The post Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others 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 is the National Storage share price down 5% today?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Rising Flight Centre share price delivers 25% gains to SPP investors in a week
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. 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.

from The Motley Fool Australia https://ift.tt/Z1qhxPS

S&P/ASX 200 Index (ASX: XJO) gold shares are defying the broader market sell-off and marching confidently higher on Thursday.

In afternoon trade the ASX 200 is down 0.6%. The benchmark index is following the lead of US markets.

All the major US indexes finished sharply lower overnight following the latest 0.25% interest rate increase from the Federal Reserve.

But gold stocks are broadly outperforming today.

At the time of writing the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold shares – is up 1.5%.

Here’s how some of the big Aussie gold miners are performing at this same time:

• Northern Star Resources Ltd (ASX: NST) shares are up 2.0%
• Newcrest Mining Ltd (ASX: NCM) shares are up 1.3%
• Evolution Mining Ltd (ASX: EVN) shares are up 2.1%
• Gold Road Resources Ltd (ASX: GOR) shares are up 1.4%

So, why are ASX 200 gold shares smashing the benchmark today?

Why are ASX 200 gold shares outperforming today?

The gold sector is broadly gaining today following an overnight lift in the gold price.

At this time yesterday, bullion was trading for US$1,944 per troy ounce.

Today that same ounce is worth US$1,974, up 1.5%.

The boost in the price of the yellow metal – and by extension the boost for ASX 200 gold shares – likely has less to do with Fed chair Jerome Powell than it does with US Treasury Secretary Janet Yellen.

Gold has been rising and falling over the past two weeks on fast-shifting sentiment surrounding the global banking crisis, sparked by the failure of US-based Silicon Valley Bank.

As a classic haven asset, the gold price has gone up as investor fears over the health of banks have increased.

And Yellen looks to have rekindled those fears by noting that the US government isn’t discussing providing deposit insurance to all banks large and small.

“I have not considered or discussed anything to do with blanket insurance or guarantees of all deposits,” Yellen said. She added that bank runs “may more readily happen now”.

Commenting on Yellen’s remarks, Redmond Wong, strategist at Saxo Capital Markets HK said (quoted by Bloomberg):

Smaller banks are likely to face a flight of deposits [following Yellen’s] 180-degree change in her comments about covering the uninsured deposits.

Bank lending will slow further or even contract and bring about a recession. Treasury yields may fall further and Treasuries, in particular the front end of the curve, are a buy. Gold is a buy.

With enough investors seemingly aligned with Wong’s views, ASX 200 gold shares are making hay today.

The post ASX 200 gold shares are defying today’s sell-off. Here’s why 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 Brickworks, Healius, Mincor, and Northern Star shares are rising today
• Beach and bling: 2 ASX 200 shares Firetrail is loving right now
• 5 things to watch on the ASX 200 on Thursday
• Why are ASX 200 gold stocks on a rollercoaster lately?
• Why ASX 200 gold shares could see the yellow metal hit new record highs: expert

SVB Financial provides credit and banking services to The Motley Fool. 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 SVB Financial. The Motley Fool Australia has recommended SVB Financial. 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/Kd4OVf3

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors and it isn’t hard to see why.

Over the last three decades, Australia’s largest bank has paid billions and billions of dollars in dividends to its shareholders.

The good news is that this is unlikely to change any time soon, with analysts forecasting bigger and bigger dividends over the coming years.

With that in mind, let’s take a look to see what it would take to generate a $500 monthly income from CBA’s shares.

How to make $500 monthly income from CBA shares

As a reminder, in FY 2022, the banking giant paid its shareholders a fully franked $3.85 per share dividend.

According to a note out of Goldman Sachs, its analysts expect this to increase to $4.68 per share in FY 2023. After which, the broker expects further increases to $4.84 per share in FY 2024 and then $4.91 per share in FY 2025.

If you wanted to generate $500 of monthly income from CBA shares, you would need to receive $6,000 of dividends each year and then distribute them accordingly.

In order to receive $6,000 of dividends in FY 2023, you would need to own 1,282 shares based on Goldman’s dividend estimate.

That’s no small purchase, unfortunately. With the CBA share price currently fetching $96.95, this would mean an investment of almost $125,000.

But it sure could be worth it if you have those funds at your disposal. Based on Goldman’s estimates, your investment would then generate $6,200 worth of dividends in FY 2024 and then almost $6,300 the following year.

That’s a total of $18,500 of dividends in the space of three years.

And if its shares were to bounce back from current levels to hit its recent high of $111.43, your $125,000 investment would grow to be worth approximately $143,000.

The post How to make $500 of monthly income from CBA 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

• ASX big four bank shares close the day ahead as financial fears linger
• Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick
• Online trading in these ASX 200 bank stocks is surging. Here’s why
• Which ASX 200 big four bank share could be the safest to hold?
• ASX 200 bank shares shrug off global banking turmoil to leap higher

Fetching Disclosure…

from The Motley Fool Australia https://ift.tt/1f3XHjy

Brickworks Limited (ASX: BKW) just announced its FY23 half-year result which included ongoing growth for its underlying value and underlying profit. The report revealed that the S&P/ASX 200 Index (ASX: XJO) dividend share could be materially undervalued.

The business reported a number of impressive financial metrics considering the widespread uncertainty over the past year.

It said that total revenue increased by 13% to $584 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 25% to $607 million and underlying net profit after tax (NPAT) went up 24% to $410 million.

The Brickworks dividend was increased by the board to 23 cents per share, a rise of 5%.

Building products EBITDA was largely steady, with an uplift in North America offset by a “modest fall” in Australia.

Brickworks reported that properties within the industrial joint venture trust continue to be completed and property values have increased thanks to strong demand and rent potential.

Now I will look at two aspects of the business – is it good value and an effective ASX 200 dividend share?

Is the Brickworks share price significantly undervalued?

Brickworks is very open about how much the undervalued assets within its business are worth.

The ASX 200 dividend share has four different asset groups – listed investments, the property trust net tangible assets (NTA), the building products NTA and development land. It also has net debt.

Most of the value of the listed investments segment is represented by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, the old investment conglomerate. It also owns FBR Ltd (ASX: FBR) shares, which is a business working on a bricklaying robotic truck. This segment had a worth of $2.73 billion on 31 January 2023.

Its property trusts are industrial properties that it owns half of, along with Goodman Group (ASX: GMG). These industrial properties are benefiting from higher revaluations, with strong demand and fast growth of rental potential. This provides a stable asset base for Brickworks, and growing rental profit. The property trust NTA is $2.24 billion for Brickworks.

Brickworks has a building products NTA of $577 million, which includes both the Australian building products business and the North American building products business.

It has three large parcels of land which have a combined “as is” market value of $461 million. This land has been identified for development and is planned for sale into the property trust.

Finally, it has net debt of $595 million.

Therefore, Brickworks revealed that it had a total inferred asset value of $5.4 billion at 31 January, which translates into $35.56 per share.

At the current Brickworks share price, that’s a discount of around 33%. I’m not suggesting that Brickworks shares should trade at $35. But, with Brickworks being a long-term investor in the Soul Pattinson shares and the industrial properties, I believe it’s worthwhile taking a very long-term view of the ASX 200 dividend share and its appealing dividend payouts.

Dividend credentials

This company’s normal dividend has been maintained or grown every year since 1976. That’s 47 years since the last decrease.

The result included another 5% increase in the dividend. That’s a solid boost.

Brickworks’ leader, Lindsay Partridge, said today:

We are proud of our long history of dividend growth, and the stability this provides to our shareholders.

Putting the last two declared dividends together, the business has a current grossed-up dividend yield of 3.8%.

While it doesn’t have the biggest dividend around, I think Brickworks represents good value for the long term, and the growing dividend is attractive in this uncertain climate.

The post Is this the cheapest ASX 200 dividend share to buy 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

• Why Brickworks, Healius, Mincor, and Northern Star shares are rising today
• Brickworks share price higher on record half-year profit
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares where the dividends don’t stop
• $1,000 in monthly passive income? Buy 18,462 shares of this ASX 200 stock

Motley Fool contributor Tristan Harrison has positions in Brickworks 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman 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/sDp8YQT