Category: Stock Market

Wesfarmers Ltd (ASX: WES) shares are taking centre stage this week with the company scheduled to report on 15 February 2023.

It’s a very interesting time period for the business because the FY23 first half is being compared against the first half of FY22. In HY22, regions like Victoria and NSW were still under COVID lockdowns.

With the ending of COVID-19 restrictions on bricks and mortar stores, the retail businesses are seemingly doing well. Wesfarmers owns various retailers like Bunnings, Kmart, Target, Officeworks and Priceline.

For example, we’ve already heard from JB Hi-Fi Limited (ASX: JBH) which reported that total sales increased by 8.6% to $5.3 billion and net profit after tax (NPAT) was up by 14.6% to $330 million.

What’s driving the Wesfarmers share price recently?

The Wesfarmers share price has dropped by 4% since 3 February 2023.

A large part of that decline may be explained by the market’s reaction to the news that the Reserve Bank of Australia (RBA) is going to keep rising interest rates to push down on inflation.

The RBA said that strong domestic demand is adding to inflationary pressures in a number of areas of the economy, and unemployment is at the lowest rate since 1974. Wages growth is picking up, with more expected because of the tight labour market and higher inflation. The RBA wants to avoid a price-wages spiral.

Australia’s central bank wants to return inflation to its target of between 2% to 3%. Inflation may not get back to 3% by mid-2025 according to the RBA’s central forecast.

Therefore, more interest rate increases are expected in the months ahead.

While higher interest rates are not ideal for households, the comments about the strength of the economy may suggest that Wesfarmers’ earnings could remain strong up to this point, which would be good for the Wesfarmers share price.

Indeed, at the company’s annual general meeting (AGM) in late October it said that combined sales growth for Kmart and Target in the year to date continued to be “pleasing”.

Bunnings sales for the year to date were “resilient” and continued to be supported by “strong demand from commercial customers”.

Officeworks sales in the year to October were “broadly in line with the prior year”.

Wesfarmers chemicals, energy and fertilisers (WesCEF) continued to benefit from “strong customer demand and elevated commodity prices”.

The industrial and safety division “continued to improve” with sales growth across all business units.

Time to buy?

It’s not all going Wesfarmers’ way, the business was also contending with elevated supply chain costs, rising wages and higher utility costs.

With the Wesfarmers share price down by around 25% since August 2021, I think it looks much better value.

Commsec estimates suggest that Wesfarmers earnings per share (EPS) could grow this year, putting it at 22 times FY23’s estimated earnings.

I think the diversification of the business, with a focus on expanding in some industries like lithium and healthcare, gives me confidence about the company’s long-term future.

The Wesfarmers share price may drop further in 2023 at some point, but that’d make it even more attractive to me.

The post Should I buy Wesfarmers shares before the company reports this week? appeared first on The Motley Fool Australia.

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More reading

• 3 of the best ASX 200 shares to buy now: broker
• 5 ASX 200 shares I would buy if I was starting from scratch: expert
• Do Wesfarmers shares really offer 13% upside AND passive income?
• The top ASX 200 share on my watch list right now
• Analysts say these growing ASX 200 dividend shares are top buys for income investors

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) got off to a rough start this week, falling 0.21% on Monday to close at 7,417.8 points.

Meanwhile, the February earnings season stepped up a gear, with results from Insurance Australia Group Ltd (ASX: IAG), Aurizon Holdings Ltd (ASX: AZJ), Beach Energy Ltd (ASX: BPT), and Endeavour Group Ltd (ASX: EDV) all hitting the market.  

Speaking of earnings, the Star Entertainment Group Ltd (ASX: SGR) share price crashed 20% after the company revealed that increased regulation and competition has taken a major toll on its bottom line.

Perhaps unsurprisingly, the company’s home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) weighed heaviest, falling 1.4%.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) outperformed all others, gaining 1.8% on the back of strengthening oil prices. The black liquid’s value lifted over 2% on Friday amid reports Russia will cut its oil output by 5% next month.

But the top performing ASX 200 share wasn’t from the energy sector. Let’s take a look at which stock posted today’s biggest gain.

Top 10 ASX 200 shares today

The IAG share price posted the biggest gain of the ASX 200 on Monday, soaring 4.5% to close at $4.92.

The insurer’s post-tax profit rocketed more than 170% year-on-year last half to reach $468 million.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Insurance Australia Group Ltd (ASX: IAG)	$4.92	4.46%
Endeavour Group Ltd (ASX: EDV)	$7.10	4.11%
Coronado Global Resources Inc (ASX: CRN)	$2.02	3.59%
Karoon Energy Ltd (ASX: KAR)	$2.23	3.24%
Johns Lyng Group Ltd (ASX: JLG)	$5.76	3.23%
Silver Lake Resources Limited (ASX: SLR)	$1.145	3.15%
Whitehaven Coal Ltd (ASX: WHC)	$7.93	2.45%
Seven Group Holdings Ltd (ASX: SVW)	$23.53	2.35%
Woodside Energy Group Ltd (ASX: WDS)	$36.62	2.12%
Sayona Mining Ltd (ASX: SYA)	$0.245	2.08%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Someone just bought $22 million of Flight Centre shares. Here’s what we know
• Why are ASX 200 energy stocks like Woodside having such a stellar start to the week?
• Even Joe Biden sees a lengthy future for ASX 200 oil stocks
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Deadline coming: 3 ASX 200 shares to buy now before dividend payouts

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Aurizon and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Two that are rated as buys and tipped to offer big dividend yields are listed below. Here’s what you need to know about these shares:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The first ASX dividend share that has been named as a buy is Dalrymple Bay Infrastructure.

It is an infrastructure company that operates the Dalrymple Bay Coal Terminal (DBCT) on a long term agreement.

Dalrymple Bay Infrastructure has been tipped to pay bumper dividends in the near term thanks to the strong demand for coal and its position as the cheapest export route-to-market for users within its Bowen Basin catchment region.

Morgans is a fan and has an add rating and $2.67 price target on its shares.

As for dividends, its analysts are forecasting dividends per share of approximately 21 cents in FY 2022 and FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.52, this will mean yields of 8.3%.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32.

It is one of Australia’s largest miners with exposure to a range of commodities including aluminium, copper, manganese, and nickel.

Citi is positive on South32 and has a buy rating and $5.00 price target on the mining giant’s shares.

The broker recently boosted its earnings estimates to reflects “Citi’s commodity team raising near term Cu/Al/Zn/HCC pricing.”

Its analysts expect this to underpin fully franked dividends per share of 27 cents in FY 2023 and 32 cents in FY 2024. Based on the current South32 share price of $4.58, this will mean yields of 5.9% and 7%, respectively.

The post Big yields are coming for these ASX dividend share: experts appeared first on The Motley Fool Australia.

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More reading

• Morgans names 2 high yield ASX dividend shares to buy this month
• These are the best ASX 200 mining shares to buy now: Morgans
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Buy these ASX passive income shares now: experts
• Fundie sells South32 to buy this other ASX 200 mining share. Here’s why

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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If you are looking to bolster your portfolio with some ASX tech shares before the sector rebounds fully, you may want to look at the two listed below that have been tipped as buys by Goldman Sachs.

Here’s what the broker is saying about these ASX tech shares:

Readytech Holdings Ltd (ASX: RDY)

The first ASX tech share that Goldman Sachs rates as a buy is Readytech.

It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

Goldman Sachs remains very positive on the company’s outlook due to its defensive earnings. It also sees plenty of value in its shares at the current level compared to peers. It explained:

RDY remains a tech value play within our coverage universe, trading at a >50% discount to peers when accounting for its robust growth outlook. Government software has been a pocket of strength and resilience within TMT (~3/4 of RDY’s earnings) and we are positive on RDY’s ability to deliver mid-teens organic growth at an expanding profit margin through the cycle.

Goldman has put a buy rating and $4.45 price target on its shares.

Xero Limited (ASX: XRO)

Another ASX tech share that Goldman Sachs rates highly is Xero.

It is a cloud-based accounting and business platform provider to small and medium sized businesses globally.

Goldman is positive on Xero due to its massive total addressable market (TAM) and favourable tailwinds that look set to support its growth in the coming years. The broker said:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL).

Goldman Sachs currently has a buy rating and $109.00 price target on Xero’s shares.

The post Goldman Sachs says these excellent ASX tech shares are buys appeared first on The Motley Fool Australia.

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More reading

• The smartest ASX shares to buy with $20 right now
• Conviction list: Goldman Sachs tips big returns from these ASX 200 shares
• Sitting on cash? These 2 ASX shares are great buys today but won’t be forever
• Here are the top 10 ASX 200 shares today
• These could be the best ASX 200 growth shares to buy: analysts

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ReadyTech and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended ReadyTech. 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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It’s been a rather dour start to the trading week for the share markets this Monday. The S&P/ASX 200 Index (ASX: XJO) has recorded a 0.21% loss for the session at today’s close.

But not all ASX 20 shares dipped into the red today. Just take Flight Centre Travel Group Ltd (ASX: FLT) shares.

Flight Centre had a turbulent start this morning. After closing at $18.21 a share last week, the ASX 200 travel share opened at $18.13 this morning before dropping as low as $18.06.

But investors quickly got over their nerves, and the Flight Centre share price was trading comfortably in the green, up 0.74% at $18.34 at the market close.

There hasn’t been any fresh news out of Flight Centre itself that could explain these gains on a down day. And Flight Centre is one of the only ASX travel shares in a good place. Others, such as Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) did not escape losing value today.

So perhaps these gains are the result of some trading action.

Flight Centre shares defy the ASX 200 amid monster trade

According to reporting in The Australian today, Flight Centre shares have just seen an enormous trade take place. A block of 1.2 million shares changed hands today, worth around $22.1 million. That’s the equivalent of 0.7% of all the Flight Centre shares on the market. 

This trade reportedly took place for a price of $18.45 per share. So clearly, a large investor (or group of investors) has decided to take up a substantial investment in the company.

Such a vote of confidence could be helping push up the Flight Centre share price this session, and might explain why this ASX 200 travel share is defying the gloom of the broader market this Monday.

No doubt shareholders will be pleased.

Flight Centre shares have already had a stellar start to 2023. Since the start of the year, this company has rallied by an impressive 27.6%. However, Flight Centre remains down by more than 9% over the past 12 months:

The post Someone just bought $22 million of Flight Centre shares. Here’s what we know appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Deadline coming: 3 ASX 200 shares to buy now before dividend payouts
• This ASX 200 share is one of my top ideas to rake it in on a recovery
• Here’s why I’d buy this ASX 200 share with conviction if there’s a recession
• Down 30% since its peak, is this a great time to buy this ASX 200 share?

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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Telstra Group Ltd (ASX: TLS) shares are a popular option for investors on the Australian share market.

Countless portfolios and superannuation funds across the country have some exposure to the telco giant.

But are Telstra shares a good option? What could a $2,000 investment turn into in 2023?

Telstra shares in 2023

The good news is that that majority of brokers out there are tipping the Telstra share price to rise from current levels.

For example, a recent note out of Goldman Sachs reveals that its analysts have just upgraded the company’s shares to a buy rating with a $4.60 price target.

Based on the current Telstra share price of $4.10, this suggests potential upside of 12% for investors over the next 12 months.

This means that if you invested $2,000 into its shares, you would see your investment grow to be worth $2,240 by the end of the year if they reached Goldman’s price target. The broker commented:

Given the defensive nature of telecoms into an uncertain 2023, we believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned by its mobile business, is attractive. We believe FY23 earnings will be robust, benefiting from challenges that the competitors are currently facing (Optus hacking, TPG MOCN) offsetting the near-term cost pressures (call centre on shoring, retail stores & staff inflation), and we are incrementally more positive on the medium term mobile outlook, supported by the recent TPG price rises.

The broker also sees potential from asset divestments following its restructure. It adds:

2023 presents a meaningful opportunity for Telstra to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-30bn.

Don’t forget the dividends

The above return was based only on the Telstra share price performance.

However, as income investors will attest, Telstra shares provide investors with a healthy dividend yield right now.

Goldman Sachs is expecting the company to pay a 17 cents per share fully franked dividend in FY 2023. This equates to a 4.1% yield at current levels.

If we add this into the equation, your total return would come to 16.1%, bringing the value of your investment to $2,322.

The post If I invest $2,000 in Telstra shares now, what could my return be in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie has these ASX 200 dividend shares in its income portfolio
• Yields of up to 8%! Should I buy these ASX 200 dividend stocks in February?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Qantas Airways Limited (ASX: QAN) shares are on course to start the week with a small decline.

In afternoon trade, the airline operator’s shares are down slightly to $6.49.

Where next for Qantas shares?

While the Qantas share price may be having a subdued session on Monday, the team at Morgans believe that it could soon take off.

According to a recent note out of the broker, its analysts have named the flying kangaroo as its top pick in the travel sector.

Thanks to its much-improved performance, Morgans believes that Qantas shares can fly notably higher from here.

The note reveals that Morgans has an add rating and $8.50 price target on them. Based on where they are trading today, this implies over 30% upside for investors over the next 12 months.

Why is the broker bullish?

Morgans elevated Qantas shares to the top of its travel picks due to its belief that the company’s near term earnings have the most momentum. It explained:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply.

In addition, the broker believes the Qantas share price is too cheap to ignore at current levels. Particularly given how its business is significantly stronger than pre-pandemic. It adds:

QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

And thanks to pent up demand, Morgans believes Qantas is well-placed for growth and further capital management initiatives in the coming years. In respect to the latter, Morgans suspects that a $400 million on-market share buyback could be announced this month. It said:

The strong pent-up demand to travel post-COVID should result in a healthy demand environment for some time, underpinning further EBITDA growth over FY24/25. QAN’s balance sheet strength positions it extremely well for its upcoming EBIT-accretive fleet reinvestment and further capital management initiatives (forecasting a A$400m on-market share buyback to be announced at 1H23 result). There is also likely upside to our forecasts and consensus if QAN achieves its FY24 strategic targets.

The post Buy Qantas shares today for 30% upside: Morgans appeared first on The Motley Fool Australia.

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More reading

• These are the best ASX 200 travel shares to buy right now: broker
• 4 top ASX 200 shares to pounce on for reporting season: Wilsons
• Why Morgans just added these ASX 200 shares to its best ideas list
• What’s going on with the Qantas share price today?
• Why experts say these ASX 200 blue chip shares are buys

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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Arguably the most anticipated earnings result of the season is Commonwealth Bank of Australia‘s (ASX: CBA) FY23 half-year on Wednesday. Investors will be looking to see if the banking giant can continue to deliver sizeable dividends to CBA shareholders.

Today, shares in Australia’s biggest bank are tracking lower after crossing the $110 barrier last week. At the time of writing, the CBA share price is sitting at $109.35 — down 0.6% from its previous closing point.

In a stellar start to 2023, CBA shares have returned more than 8% so far this year. While the capital growth is exceptional, those relying on the big four bank for income will be hoping for a juiced-up interim dividend.

Will income investors be able to celebrate?

Rising interest rates have been a major headache for mortgage holders, but they might have set the stage for a stupendous result from CBA on Wednesday.

One of the key metrics for banking revenue is the net interest margin (NIM). The bigger the difference between interest earned (loans) and interest paid (deposits), the more revenue we can expect to see.

Many analysts are expecting a tremendous half from CBA for the December ending period fuelled by a widening NIM.

According to Bloomberg, the consensus revenue estimate sits at $5.2 billion. Meanwhile, the accompanying dividend per share estimate is pegged at $2.10. However, some analysts — including Jarden’s Carlos Cacho — are forecasting an even strong result.

Cacho thinks the yellow-branded bank could deliver revenue in excess of $5.2 billion thanks to wider margins and minimal bad debts.

Those bad debts that Cacho mentions will be critical to the size of the CBA interim dividend. Any need to provision for credit losses could tighten the belt around cash available to shareholders. However, this is not a concern at this stage according to Cacho, stating:

I really doubt we are going to see any signs of deterioration on the bad debt front yet.

Why CBA dividends could grow

Last week, my colleague James Mickleboro covered CBA earnings estimates from Goldman Sachs. Much like others, they too are expecting a rosy result for the first half of FY23. Though, Goldman reckons $5.108 billion is a more likely cash-earnings outcome.

Despite the less optimistic earnings expectation, Goldman analysts foresee an interim dividend of $2.12 per share. If this were to be the case, it would represent an increase of 21% compared to the prior corresponding period.

The current trailing 12-month dividend yield on CBA shares is 3.5%. Notably, this places it as the lowest-yielding big four bank at present.

The post Is a bigger CBA dividend on the cards this week? appeared first on The Motley Fool Australia.

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More reading

• The CBA share price is trading near all-time highs. Should you cash in?
• With no savings at 35, I’d buy this ASX 200 dividend stock to start earning monthly passive income
• I’m listening to Warren Buffett and buying ASX shares at deep discounts
• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares
• Should I buy CBA shares for 2023 dividend potential?

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia. 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 Coles Group Ltd (ASX: COL) share price could be in for a good run in the near future, as could the supermarket operator’s dividends.

That’s despite the stock already having posted an 8% gain in 2023. After ending last year at $16.72, the Coles share price has leapt to trade at $18.02 today.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen around 5% since the end of 2022.

So, what might bolster the supermarket stock and its dividends this year? Let’s take a look.

Invested in Coles shares? You could be in for a good year

Broker Morgans is among those bullish on the Coles share price. It tips the stock could outperform in what looks to be a rough year for others.

Many experts are forecasting the impacts of interest rate hikes, implemented in an effort to control inflation, to catch up in 2023. That could see consumer demand softening.

Fortunately, Coles’ defensive characteristics could put it on the front foot, the broker says, as my Fool colleague James reports.

It also likes the look of the company’s balance sheet and thinks it could benefit from the unwinding of local shopping.

It’s likely no surprise then, that Morgans has a $19.50 price target on Coles shares. That represents a potential 8.2% upside.

And that’s not all. It also forecasts Coles’ dividends to grow to 64 cents per share this financial year and 66 cents per share next financial year.

For comparison, the supermarket operator offered investors 63 cents per share in financial year 2022.

Citi is even more bullish on the ASX 200 constituent’s dividends, James reported last month.

The broker predicts Coles will offer 72 cents per share this fiscal year and 77 cents per share next. It also tipped the stock to rise 4.9% to $18.90.

However, not all experts are so hopeful. Goldman Sachs has a sell rating and a $14.90 price target on Coles shares, representing a potential 17% downside.

The post Can Coles shares deliver 8% upside AND tasty dividends in 2023? appeared first on The Motley Fool Australia.

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More reading

• Get an income boost with these ASX dividend shares: broker
• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares
• 2 ASX stocks I’d buy in February for lifelong passive income
• Does the Coles dividend forecast make it a great buy for income?
• Here’s how I’d start building a second income this February, for $30 a week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Reporting season is now getting into the full swing of things. We’ve already heard from some of the leading S&P/ASX 200 Index (ASX: XJO) dividend shares.

While share prices have already moved in response to the results reported by these companies, investors can still grab shares before it’s too late to be entitled to the dividend.

If investors are interested in the business and the dividend payment, they need to invest before the ex-dividend date. Investors who buy shares on or after that date will miss out on the dividend.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi reported its result today, revealing that total sales grew by 8.6% to $5.3 billion and earnings per share (EPS) went up 20.4% to $3.018.

The company’s board decided to grow the dividend by 20.9% to $1.97 per share. The ex-dividend date is 23 February 2023, so that’s not far away.

With the incoming $1.97 dividend, that payment alone amounts to a fully franked dividend yield of 4.4%, with a grossed-up dividend yield of 6.3%.

However, there may not be much dividend growth in the second half of the year. For January 2023, the ASX 200 dividend share said that total sales growth for JB Hi-Fi Australia was 2.5%. JB Hi-Fi New Zealand’s total sales growth was 20%. The Good Guys’ total sales growth was 0%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Funds management business Pinnacle has seen its share price drop by around 50% since November 2021 as investors lost confidence in asset markets amid rising interest rates.

In its FY23 half-year result, the company reported a 24% fall in net profit after tax (NPAT) to $30.5 million.

However, the interim dividend was only decreased by 11% to 15.6 cents per share. That dividend from the business amounts to a fully franked dividend yield of 1.65%, or a grossed-up dividend yield of 2.4%.

Despite all of the market volatility hurting sentiment about the ASX 200 share, the funds under management (FUM) of the fifteen Pinnacle affiliates ended December 2022 at $83.2 billion, which was only a decrease of 1% during the first half.

The ex-dividend date for the Pinnacle payment is 2 March 2023.

Amcor PLC (ASX: AMC)

Amcor is one of the world’s largest plastic packaging companies. When walking around the supermarket, there are plenty of products that have been packaged by the business.

It recently announced its FY23 second quarter and first-half result.

The ASX 200 share announced that its net sales increased by 6% to $7.35 billion, while adjusted earnings before interest and tax (EBIT) and adjusted EPS grew by 8% on a comparable constant currency basis.

It announced a quarterly dividend of 12.25 US cents per share, up from 12 US cents per share. The 12.25 cents per share dividend equates to 17.3 cents per share in Australian dollar terms. This quarterly dividend amounts to 1.1%.

The ex-dividend for this upcoming quarterly dividend is 28 February 2023.

The post Deadline coming: 3 ASX 200 shares to buy now before dividend payouts appeared first on The Motley Fool Australia.

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More reading

• JB Hi-Fi share price slumps on half-year results
• This ASX 200 share is one of my top ideas to rake it in on a recovery
• Here’s why I’d buy this ASX 200 share with conviction if there’s a recession
• Down 30% since its peak, is this a great time to buy this ASX 200 share?
• Why this ASX 200 share smashed the market with a 5% rally today

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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Jb Hi-Fi. 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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