Category: Stock Market

Recent developments in the AGL Energy Limited (ASX: AGL) share price could be leading investors to wonder if the company deserves a spot in their portfolios.

The question arises amid a huge recovery in the company’s share price, starting on 21 October. Shares opened for $6.62 on the day and currently trade for $7.95 apiece — a 20.1% gain.

AGL’s shares walked largely in step with peers in the S&P/ASX 200 Utilities Index (ASX: XUJ) over the same period, with the index recording a stunning 27.8% increase.

So to see where AGL’s shares might be headed in future, and to answer if they could be a buy at their current price levels, let’s recap some recent company announcements as well as some expert analysis.

Cannon-Brookes gets four directors installed on AGL board

Kicking things off is the changes made to AGL’s board of directors.

Billionaire AGL major shareholder Mike Cannon-Brookes was successful in getting his four board nominees installed. This was put into effect on 15 November at the company’s AGM.

The new directors include Mark Twidell, Dr Kerry Schott, Christine Holman, and John Pollaers.

As a result, the company ratified a new strategic direction.

AGL unleashes rapid decarbonisation plans

AGL will have a much greater focus on using renewable energy moving forward. This includes shutting down its Loy Yang power station in FY35, 10 years earlier than previously forecast.

Among other measures, the company also aims to use five gigawatts of renewables by 2030 and 12 gigawatts of renewables by 2036.

Recent reporting in The Australian suggested the strategy shift comes amid claims AGL is lagging behind its key rival Origin Energy Ltd (ASX: ORG) in its decarbonisation efforts.

Those comments came from global fund manager Brookfield Asset Management.

What did Brookfield say?

A Brookfield spokesperson made the following comments.

AGL has a large fleet of coal-fired generation which obviously needs to transition at some point over time.

It has arguably — up until recently at least — been further behind in its own internal plans on when that transition would occur. Whereas Origin has been a bit more front foot with that and has a detailed strategic transition plan and has given notice on Eraring for retirement.

AGL has been pulling other levers in its business to help get its carbon emissions under control — as well as being part of a possible pivot to become a green energy supplier in the market.

Last week, AGL said it would close down its Torrens Island B power station in South Australia on 30 June 2026.

My colleague James notes that the plant’s closure is not anticipated to affect AGL’s earnings for FY23 and that it also has a feasibility study in the works to investigate the opening of a hydrogen plant on the island.

Analysts make bullish predictions for the AGL share price

Finally, in October, analysts and brokers reached a consensus that the AGL shares could represent good value moving forward.

Morgans investment advisor Jabin Hallihan gave the share a buy recommendation with a price target of $8.81. That’s a possible upside of 10.88% at the time of writing.

Hallihan praised the early closure of Loy Yang as well as AGL’s “positive near-term earnings”.

Meanwhile, Credit Suisse analysts gave a slightly more conservative price target of $8.20 a share for a 3.2% potential upside.

The post Are AGL shares a good investment right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple‘s (NASDAQ: AAPL) incredible financial strength has allowed it to weather the current bear market better than many other tech stocks. Yet its shares are still down about 17% year to date. The tech titan, in turn, has lost a staggering $500 billion in market value.

Could this be an opportunity for investors to buy Apple’s stock at a bargain price?

The bull case for Apple’s stock 

A couple of years ago, Warren Buffett called Apple “probably the best business I know in the world.” That’s high praise from the legendary investor.

Incredibly, Apple has only grown stronger since then. The technology leader generated a staggering $99.8 billion in net income and $111.4 billion in free cash flow over the trailing 12 months. That’s up from $57.4 billion and $73.4 billion, respectively, in 2020.

This breathtaking financial performance is derived from a relatively simple business model. Apple makes and sells its popular iPhones, Macs, iPads, and wearable devices. It then sells an array of services to its massive base of users.

Together, these devices and services form a vast ecosystem that tends to be quite sticky. Once a person buys an Apple product, they tend to remain a loyal customer. This is why investors are increasingly viewing Apple as a utility-like business — one with dependable, recurring revenue and reliable cash flow. Like the best utility stocks, Apple is rewarding its shareholders with a steadily rising dividend stream and bountiful stock buybacks, both of which help to bolster its share price.

AAPL data by YCharts

Moreover, Apple’s robust cash flow generation and fortress-like balance sheet — which contained over $169 billion in cash and investments as of Sept. 24 — allow it not just to survive but thrive during difficult economic environments. Apple also tends to outperform its less financially sound rivals during these times. Many investors have thus come to view Apple’s stock as a safe haven during the current market downturn, which is one of the reasons why it has performed better than many other tech stocks this year. The defensive nature of its business should continue to serve Apple well in the coming years.

Apple’s stock is reasonably priced

Apple’s shares can currently be had for less than 22 times analysts’ earnings estimates for the year ahead. That’s slightly less expensive than the forward price-to-earnings (P/E) ratio of the Nasdaq-100 index, which stands at about 22.5. Apple is arguably the best business in that index. But rather than paying a premium for quality, as is typically required, you can buy Apple’s stock at a slight discount today.

The tech giant may have a lower projected growth rate than some of the Nasdaq-100 index’s more rapidly expanding constituents, but Apple is still expected to increase its earnings per share by roughly 9% annually over the next half-decade. Its P/E ratio thus seems quite reasonable, particularly when considering its powerful competitive advantages and unrivaled financial fortitude.

Risks for investors to consider

Individuals and businesses spent heavily on laptops and other mobile devices during the early stages of the pandemic, as the work-from-home trend gained steam. But those purchases pulled forward some sales that would otherwise be taking place today, and the personal computer (PC) industry is now experiencing a sharp pullback in demand.

PC shipments fell 15% year over year in the third quarter, according to research firm IDC. The phone industry is experiencing a similar dynamic, with smartphone sales down 9.7% in the same period. These trends could dampen Apple’s results if they persist.

That said, Apple was able to generate higher Mac and iPhone sales in the third quarter despite the downturn, due in part to its unmatched customer loyalty. Mac sales jumped 25% to $11.5 billion, while its iPhone revenue rose 10% to a whopping $42.6 billion.

Yet even if demand for its devices remains strong, Apple could find it difficult to produce enough of its products in the coming quarters. China continues to respond to new COVID-19 outbreaks by instituting strict lockdowns. With some of its most important manufacturing sites in China, Apple may face supply shortages for key products like the iPhone. These challenges should, however, abate when the pandemic eventually subsides.

So, is Apple’s stock a buy?

With its popular products continuing to sell well, and its utility-like cash flows helping to bolster its already awe-inspiring financial strength, Apple could be the bastion you’re seeking in the current economic storm. With near-term risks likely already reflected in its discounted share price, Apple’s stock is a solid buy today for long-term investors. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Down 17%, is Apple stock a buy now appeared first on The Motley Fool Australia.

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Joe Tenebruso 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 Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Are you looking for some dividend shares to add to your income portfolio?

If you are, then the two listed below could be top options.

Both have been named as buys and tipped to provide attractive yields in the coming years. Here’s what you need to know about them:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a leading property company that invests in high quality real estate assets that are leased mainly to corporate and government tenants. And, as you might have guessed from its name, these are on long term leases.

The team at Citi is positive on the company. It has put a buy rating and $4.70 price target on its shares. Citi likes the Charter Hall Long WALE REIT due to its attractive valuation, big yield, and low risk income stream. The broker explained

The inorganic growth story remains challenged but at current price, we see relative value given the -36% discount to NTA, >7% yield (much higher than triple net peers), c. 50% of the rents indexed to CPI and a low risk income stream with c. 12 year WALE and 99.9% occupancy.

The broker expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.42, this will mean yields of 6.3% and 6.6%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share to consider buying is insurance giant QBE.

Despite the release of a disappointing catastrophe update last week, the team at Morgans is sticking with the company and has reiterated its add rating and $14.89 price target on its shares.

Morgans believes that QBE has done relatively well given the very volatile year for weather and that investors should focus more on its longer term outlook. The latter is looking positive thanks to premium increases, rising rates, and cost reductions. It commented:

We believe tailwinds such as rising bond yields, premium rate increases and cost out will drive an improved earnings profile for QBE over the next few years. The stock also remains inexpensive trading on ~10x FY23F earnings.

In respect to dividends, the broker is forecasting a 42.6 cents per share dividend in FY 2022 and then a 90.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.95, this equates to yields of 3.3% and 7%, respectively.

The post Experts name the ASX dividend shares for income investors to buy now appeared first on The Motley Fool Australia.

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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 Microba Pty Ltd (ASX: MAP) share price is having a stunning day.

In morning trade, the precision microbiome company’s shares were up as much as 91% to 42 cents.

The Microba share price has pulled back since then but remains up 45% at 32 cents at the time of writing.

Why is this ASX healthcare share smashing the market?

Investors have been scrambling to buy this healthcare share after it announced a major deal with Sonic Healthcare Limited (ASX: SHL).

According to the release, Sonic has agreed to invest $17.8 million to acquire a 19.99% shareholding in Microba at 26 cents per share. In addition, the healthcare giant is seeking to acquire options for an additional 5% equity position, subject to shareholder approval. Exercise of these options would result in a further investment of $7.5 million in Microba.

Why is Sonic investing in Microba?

The release notes that Sonic and Microba have agreed initial terms of a strategic alliance to exclusively deliver Microba’s microbiome testing technology into Germany, the United Kingdom, and Belgium, along with non-exclusive distribution into Sonic’s broader network including Australia, Switzerland, the United States and New Zealand.

Microba’s “world-leading technology” is used for measuring the human gut microbiome, supporting the discovery and development of novel therapeutics for major chronic diseases and delivering gut microbiome testing services globally.

Sonic Healthcare’s CEO, Dr Colin Goldschmidt, commented:

Sonic Healthcare prides itself on delivering accurate, reliable medical diagnostics services using leading laboratory and informatics technologies. Our partnership with Microba exemplifies our commitment to invest in cutting edge developments in laboratory medicine.

We see microbiome testing becoming a key part of pathology over coming years and are excited about the potential of this partnership and the opportunities that Microba’s technology will provide for Sonic’s global operations, our referring clinicians, and our patients.

The post Guess which ASX healthcare share is rocketing 90% on a new deal with Sonic? appeared first on The Motley Fool Australia.

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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 Sonic Healthcare Limited. 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 Collins Foods Ltd (ASX: CKF) share price is having a day to forget.

In morning trade, the quick service restaurant operator’s shares are down 17% to $8.33.

Why is the Collins Foods share price sinking?

Investors have been selling down the Collins Foods share price on Tuesday following the release of the company’s half year results. Here’s how it performed:

• Revenue up 15% to $614.3 million
• Underlying EBITDA up 0.5% to $95.4 million
• Statutory net profit after tax down 58% to $11 million
• Underlying net profit after tax down 14.2% to $24.8 million
• Fully franked interim dividend flat at 12 cents per share

What happened during the half?

For the six months ended 16 October, Collins Foods reported a solid 15% increase in revenue to $614.3 million thanks to growth across all business units.

KFC Australia reported a 10.6% increase in revenue to $479.6 million, KFC Europe delivered a 32% increase in revenue to $111.8 million, and Taco Bell posted a 42.6% increase in revenue to $21.1 million. The key KFC Australia business’ growth was driven by a combination of new store rollouts and same store sales growth of 5.1%. The latter reflects increased ticket value and broadly flat transaction numbers.

Things weren’t quite as positive for the company’s earnings, with underlying net profit after tax falling 14.2% to $24.8 million. Management advised that this was driven by margin headwinds from cost inflation.

On a statutory basis, net profit after tax was down a disappointing 58% to $11 million. This includes an $11.9 million after tax non-cash impairment of eight Taco Bell restaurants.

Taco Bell’s struggles

The Taco Bell brand has failed twice before in the Australian market and things weren’t looking good during the half. Although it delivered strong overall revenue growth, this was driven by new store openings, which offset a 7.8% decline in same store sales.

In order to prevent it failing a third time in Australia, management has decided to pause new restaurant builds beyond those already committed and refine the business from top to bottom. Nevertheless, Collins Foods’ CEO, Drew O’Malley remains positive on the brand. He said:

We are refining every element of the business, from marketing and media spend to portioning and product quality, to ensure we meet and exceed customer expectations. We have paused new restaurant builds, other than the five-six already committed, to enable us to work with Yum! to regain traction on sales before further recommencing the rollout and scaling the brand. We are confident in the future prospects of Taco Bell given its value position within the fastest growing QSR segment.”

Outlook

No guidance was given for the second half, but management revealed that sales have remained strong for its KFC operations.

During the first six weeks of the half, it has achieved KFC same store sales growth of 5.6% in Australia and 14.8% in Europe. However, it has warned that “significant inflationary headwinds are continuing in both markets, with margin pressure expected to remain for the balance of FY23.”

No sales data was provided for the struggling Taco Bell brand.

O’Malley concluded:

Operating in the resilient QSR sector, we believe we are well positioned to navigate the current challenging environment. When combined with Collins Foods’ focus on operational excellence, supported by a highly capable and experienced management team, and the flexibility that comes with a healthy balance sheet, we retain our recipe for success to deliver sustainable earnings growth over the long term.

The post Here’s why this ASX 200 share is crashing 17% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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 Northern Star Resources Ltd (ASX: NST) share price is down 2.6% to $10.31 in early trade this morning, joining a broader market selloff.

Despite the dip, the S&P/ASX 200 Index (ASX: XJO) gold stock is up an impressive 18% since the closing bell on 31 October.

It’s not just the Northern Star share price that’s outperformed. It’s been a good month for most ASX gold miners, buoyed by a 5.8% rise in the price of bullion in November.

Gold is currently trading for US$1,741 per troy ounce, up from US$1,645 at the beginning of the month.

That’s seen the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gain 15% over the month, compared to a gain of 5% posted by the ASX 200.

That’s the price action in November so far.

So, what can investors expect from the Northern Star share price moving forward?

Now what?

Atop the outlook for the gold price (which we’ll get to shortly), there is a range of company-specific factors that will determine how the Northern Star share price performs in the months ahead.

In the miner’s September quarterly activities report, the company reported its balance sheet was strong, with net cash of AU$173 million as at September 30, and with cash and bullion combined totalling AU$473 million.

Northern Star also maintained its FY23 guidance of 1.56 million to 1.68 million ounces of gold sold at an all-in sustaining cost (AISC) of AU$1,630 to AU$1,690 per ounce.

Those company-specific figures should bode well for the Northern Star share price.

But, as we outlined up top, the miner’s returns are also heavily influenced by the price of the precious metal it digs from the ground.

As for the outlook for the gold price – and, by extension, the Northern Star share price – keep an eye on the US Federal Reserve. Gold’s strong run in November has partly been thanks to the market pricing in a more dovish Fed moving forward.

A slower pace of interest rate hikes from the world’s top central bank tends to support bullion prices, as gold pays no yield.

Atop how they’re setting interest rates, you’ll want to watch the gold-buying activities of the world’s central banks as well.

According to the latest report from the World Gold Council, in the third quarter of 2022, gold demand “was bolstered by consumers and central banks”.

The report highlighted that “central bank buying picked up significantly with estimated record purchases of nearly 400 tonnes in the third quarter”.

And there’s likely to be even more central bank buying on the horizon, which should offer some further tailwinds to the Northern Star share price.

The World Gold Council’s recent central bank survey indicated 25% of the banks intend to increase their gold reserves in the next 12 months.

Commenting on the central bank buying spree, Justin McQueen, senior market analyst at Capital.com, said, “The fact that central banks have been excessively accumulating does provide an undercurrent of support for the precious metal.”

Northern Star share price snapshot

With the strong performance in November behind it, the Northern Star share price is now up a solid 9% in 2022. That handily outperforms the 5% year-to-date loss posted by the ASX 200.

The post The Northern Star share price has soared 18% so far in November. What now? appeared first on The Motley Fool Australia.

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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.

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Some of the smaller ASX dividend shares might be able to pay some of the largest dividend yields.

A business like Commonwealth Bank of Australia (ASX: CBA) is solid, but it gets a lot of fund manager and household attention. It’s also a very large business that is unlikely to deliver a lot of growth and due to many investors focusing on the big bank, it’s not as likely to be cheap as the smaller, undiscovered names.

But it’s worth pointing out that just because something is small doesn’t mean it will do well. However, the lower valuation could make up for that and give investors a bit of a margin of safety.

The three small ASX dividend shares below are ones that are buy-rated and are expected to pay large income yields.

MotorCycle Holdings Ltd (ASX: MTO)

MotorCycle Holdings is a business that sells motorbikes through a large network of locations. It sells a variety of brands like Yamaha, Harley Davidson, Ducati, Honda, and Suzuki.

It recently announced it was acquiring Mojo Group for $60 million, which is one of Australia’s largest importers and wholesalers of motorcycles, genuine spare parts, and accessories.

The small ASX dividend share is still experiencing supply chain challenges, but acquisitions are adding to earnings. It’s investigating expansion into industry segments where it’s unrepresented. Despite positive current trading conditions, it’s preparing for more subdued trading conditions as consumer demand moderates.

It’s rated as a buy by Morgans, with a price target of $3.42. It’s expected to pay a grossed-up dividend yield of 11.8% in FY23.

Lindsay Australia Ltd (ASX: LAU)

The ASX dividend share describes itself as an integrated transport, logistics, and rural supply company. Its focus is on road transport, logistics, and warehousing services as well as specialist services to rural suppliers, with an emphasis on the horticultural industry.

Lindsay is aiming to diversify its revenue sources, which has seen it expand into rail. It has also acquired 27 refrigerated containers in the first quarter of FY23, expanding the fleet to 403 containers. Rail will “continue to deliver revenue growth into FY23”, the company says.

With its road segment, it’s expanding its trailer fleet to increase operational capacity. In the rural division, it is continuing to explore opportunities to expand in “key horticulture regions” either organically with low-cost start-ups or by acquisitions of established businesses.

It will continue to assess acquisition opportunities that could diversify its geographical reach and range of services.

But it expects the high demand for services to persist. In FY23, it’s expecting earnings before interest, tax, depreciation and amortisation (EBITDA) of between $68 million to $71 million.

It’s rated as a buy by the broker Ord Minnett, with a price target of 76 cents. It’s expected to pay a dividend yield of 6.1% in FY23.

COG Financial Services Ltd (ASX: COG)

This business describes itself as Australia’s leading finance broker aggregator and equipment leasing business for small to medium-sized enterprises (SMEs).

In FY23 to date, COG Financial Services has seen underlying net profit (NPATA) rise by 26% year-over-year to 31 October 2022. There has been “strong activity” in all segments and this is expected to continue “given mega trends supporting mining, infrastructure, transport and agriculture”.

The company said its scale means it can now support significant investment in its own software platform, giving it “the advantage of having the best offering in the market”.

This ASX dividend share is rated as a buy by the broker Ord Minnett with a price target of $2.11. The broker likes the growth the business is seeing in multiple areas. COG Financial is projected to pay a grossed-up dividend yield of 8.6% in FY23.

The post 3 high-yield ASX dividend shares you’ve probably never heard of appeared first on The Motley Fool Australia.

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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 Lindsay Australia Limited. The Motley Fool Australia has recommended Lindsay Australia Limited. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price hasn’t gone all too far over the last 10 years, but have the dividends made up for it?

Right now, stock in the smallest of the S&P/ASX 200 Index (ASX: XJO) big four banks is trading at $24.72. That’s 11% lower than it was at the start of 2022 and 6% lower than it was this time last year.

For comparison, the ASX 200 has fallen 5% this year and is trading flat over the last 12 months.

Looking further back, if an investor snapped up $1,000 worth of ANZ shares exactly 10 years ago today, they likely would have walked away with 41 securities – paying $23.90 apiece – and $20 change.

Today, that parcel would be worth $1,013.52, or 3.4% more than our imaginary investor paid.

While any return is better than a loss, that 3.4% gain is relatively dire compared to the ASX 200’s approximate 60% rise over the last 10 years.

So, have ANZ’s dividends made up for its share price’s weak performance? Let’s take a look.

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

Here’s a breakdown of all the dividends offered to those invested in ANZ shares over the last 10 years:

ANZ dividends’ pay date	Type	Dividend amount
December 2022	Final	74 cents
July 2022	Interim	72 cents
December 2021	Final	72 cents
July 2021	Interim	70 cents
December 2020	Final	35 cents
August 2020	Interim	25 cents
December 2019	Final	80 cents
July 2019	Interim	80 cents
December 2018	Final	80 cents
July 2018	Interim	80 cents
December 2017	Final	80 cents
July 2017	Interim	80 cents
December 2016	Final	80 cents
July 2016	Interim	80 cents
December 2015	Final	95 cents
July 2015	Interim	86 cents
December 2014	Final	95 cents
July 2014	Interim	83 cents
December 2013	Final	91 cents
July 2013	Interim	73 cents
December 2012	Final	79 cents
Total:		$15.90

As we can see, ANZ shares have handed investors $15.90 in dividends per share over the decade just been, including the bank’s upcoming December offering.

That means $1,000 worth of shares bought back then would have paid out $651.90 in dividends.

Combining that with the ANZ share price’s 3.4% rise, the stock has returned 69.95% since November 2012.

And of course, those dividends could have been reinvested in ANZ shares, allowing our figurative investor to benefit from the magic that is compounding.

Not to mention the potential benefits of franking credits. All dividends offered to those holding ANZ shares over the last decade have been fully franked at 30%, meaning some investors might have recognised additional benefits at tax time.

With all that in mind, I think it’s safe to say that ANZ’s dividends have made up for its share price’s weak performance over the last 10 years. The stock currently trades with a 5.9% dividend yield.

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

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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 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 Woodside Energy Group Ltd (ASX: WDS) share price is having a disappointing day on Tuesday.

In morning trade, the energy giant’s shares are down 5% to $35.12.

Why is the Woodside share price tumbling into the red?

The Woodside share price is being sold off today after the company completed a review of its 2023 corporate plan. This includes its costs, production, and sales forecasts for the year ahead, which has led to the release of the energy producer’s guidance for FY 2023 this morning.

Firstly, in respect to its capital expenditure, Woodside expects to spend US$6 billion to US$6.5 billion on capex in FY 2023. This assumes no change to current participating interests. Approximately half of this will be put towards the Scarborough operation.

Moving on, Woodside expects production of 180 – 190 million barrels of oil equivalent (MMboe) in FY 2023. This is the first full year of production since the BHP Group Ltd (ASX: BHP) petroleum transaction and compares to its FY 2022 production guidance of 153 – 157 MMboe.

However, it is worth noting that Woodside recently delivered third quarter production of 51.2 MMboe, which annualises to 204.8 MMboe. So, investors could be a touch underwhelmed with FY 2023’s production guidance, which may explain the weakness in the Woodside share price today.

This guidance comprises LNG production of 83-85MMboe, pipeline gas production of 40-42MMboe, crude and condensate production of 50-55MMboe, and natural gas liquids production of 7-8MMboe.

It is worth noting that it doesn’t include any production from the Sangomar Field Development Phase 1, which is targeting first oil in late 2023. In addition, management notes that Mad Dog Phase 2 is undergoing commissioning and Woodside assumes for production guidance purposes a start-up in mid-2023.

No production costs guidance was provided for FY 2023.

The post Woodside share price tumbles 5% on FY23 guidance appeared first on The Motley Fool Australia.

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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://www.fool.com.au/2022/11/29/woodside-share-price-tumbles-5-on-fy23-guidance/

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Imagine you could go back in time to November 2008. Amazon‘s (NASDAQ: AMZN) share price has dropped like a brick and is down well over 50% year to date. Would you buy the stock? You’d be crazy not to do so. Amazon went on to deliver a staggering 88x gain by the end of 2021.

Now let’s return to the present. Amazon’s share price has dropped like a brick yet again. It’s down the most since that huge sell-off 14 years ago. Should you back up the truck and load up on Amazon stock?

Behind Amazon’s plunge 

To answer that question, we need to first examine the factors behind Amazon’s steep plunge this year. Much of the blame can be placed on macroeconomic headwinds and uncertainty that have caused the overall stock market to fall.

Amazon’s revenue growth has been dampened by the strong U.S. dollar. In the third quarter alone, the company’s sales were around $900 million lower due to unfavorable foreign exchange rates. 

But Amazon’s growth is slowing even on a constant-currency basis. The company expects Q4 revenue will increase by only 2% to 8% year over year, with an impact of foreign exchange rates of around 460 basis points (or 4.6%). 

What’s Amazon’s main problem? Inflation. CFO Brian Olsavsky said in the company’s Q3 conference call, “The continuing impacts of broad-scale inflation, heightened fuel prices and rising energy costs have impacted our sales growth as consumers assess their purchasing power and organizations of all sizes evaluate their technology and advertising spend.” 

However, the top line isn’t Amazon’s only issue. The company’s earnings are also falling because of a significant increase in spending. This has contributed to Amazon’s free cash flow, arguably the most important measure of its financial health, sinking into negative territory.

Two important questions

One of the most important questions to ask when considering whether or not to buy Amazon stock now is: Are the company’s issues only temporary? I think the answer is clearly “yes.”

The two biggest challenges for Amazon right now — the strong U.S. dollar and high inflation — are intertwined. The dollar is strong in large part because of the Federal Reserve’s monetary policy. And the Fed’s policy, which is focused on aggressively raising interest rates, is in place to try to curb inflation.

Sooner or later, though, the Fed’s moves will cause inflation to moderate. We’re seeing a few signs that it could already be happening, such as the lower-than-expected producer price index announced earlier this month. When the Fed feels that inflation is in check, it will stop raising interest rates and will eventually lower them.

In the meantime, Amazon is wisely cutting costs to improve its bottom line and free cash flow. The company announced major layoffs recently. It’s also shutting down several businesses that have weighed on growth.

There’s also another important question that investors should consider: Does Amazon have strong growth prospects? Again, I think the answer to this question is a resounding “yes.”

E-commerce in the U.S. made up only 14.1% of total retail sales in the third quarter of 2022. Cloud hosting remains an attractive option for businesses, with Amazon Web Services still the No. 1 player in this market. Amazon also has other potential growth drivers, including its moves into digital advertising, healthcare, and streaming TV.

Back up the truck?

Probably the biggest knock against Amazon is its valuation. The stock trades at more than 46 times expected earnings. I suspect that most discounted cash flow models analyzing Amazon would indicate that the stock is overvalued despite its sharp decline this year.

However, Amazon has appeared to be overvalued throughout its entire history. That hasn’t prevented the stock from delivering massive returns. The reality is that Amazon is a business that’s difficult to value because its management team continually comes up with new ways to grow. That’s a good “problem” to have for investors.

Amazon isn’t likely to go on the huge surge going forward as it did after 2008. But I fully expect the stock will nonetheless return to its winning ways in the not-too-distant future. Should you back up the truck and load up on Amazon stock? I think so.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you back up the truck and load up on Amazon stock? appeared first on The Motley Fool Australia.

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• Why Amazon stock fell today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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