Category: Stock Market

There are a few ASX exchange-traded funds (ETFs) that could help investors feel better about their portfolio while providing long-term protection, and hopefully growth.

It’s hard to know what’s going to happen next with the ASX share market or global share markets.

But, the answer to the uncertainty could be to own businesses that can continue to perform and excel during difficult times.

It’s interesting that during downturns, it can be businesses that are the best in their sector that become even stronger. Sometimes weaker competitors will go out of business, or be acquired by the stronger players. This means the best become even more entrenched in their market position.

The VanEck Morningstar Wide Moat ETF (ASX: MOAT) could be a way to invest in some of the best businesses listed in the United States.

What is this ETF?

The idea is that it owns a “diversified portfolio of attractively priced US companies with sustainable competitive advantages,” according to Morningstar’s equity research team.

It’s the ‘sustainable competitive advantage’ part that could make it a more relaxing investment. An economic moat is a “sustainable competitive advantage that allows a company to generate positive economic profits for the benefits of its owners over an extended period”.

For the Morningstar analysts, the “durability of economic profits is far more important than magnitude”. There must also be clear evidence that the company benefits from at least one of five moat sources. Those five moat sources are: intangible assets, cost advantage, switching costs, network effects and efficient scale.

The only businesses considered for inclusion in this ASX ETF’s portfolio are ones where excess normalised returns must, with near certainty, be positive 10 years from now. Also, excess normalised returns must, more likely than not, be positive 20 years from now.

The competitive advantages I refer to above can be things like economies of scale, unique assets, patents, brand power or a monopoly.

So, the businesses in this portfolio are expected to generate strong profits for many years. And they have strong competitive advantages to help them achieve that.

Good value

I like to think this ETF’s holdings are nearly always good value. That’s because Morningstar analysts only add a business to the portfolio if they think the company is trading at an attractive price relative to Morningstar’s estimate of fair value.

But, it is possible for a good value share to fall just as much (if not more) than an expensive one.

However, I think the MOAT ETF has shown by its relatively small decline that it can do well. This ASX ETF has only dropped by 9.4% this year. The Betashares Nasdaq 100 ETF (ASX: NDQ) has dropped 26%. While the Vanguard Australian Shares Index ETF (ASX: VAS) has fallen 15%.

What are some of the holdings right now?

The latest holdings update from the portfolio shows that these were the largest positions: Biogen, Etsy, MercadoLibre, Gilead Sciences, Tyler Technologies, Zimmer Biomet, Wells Fargo, Workday, Masco, Amazon.com, Emerson Electric and Salesforce.

Long-term returns

Past returns shouldn’t be used as a predictor of future returns. However, the VanEck Morningstar Wide Moat ETF has returned an average of 14% per annum over the past five years. That’s almost 1% better per year than the S&P 500 Index (SP: .INX).

The post Why this ASX ETF might help investors sleep better at night appeared first on The Motley Fool Australia.

.

More reading

• How much is too little to start investing in ASX shares?
• Don’t miss out on these high quality ASX ETFs

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 Amazon, Etsy, Gilead Sciences, MercadoLibre, Tyler Technologies, and Workday. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Biogen. The Motley Fool Australia has recommended Amazon, VanEck Vectors Morningstar Wide Moat ETF, and Workday. 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/hPtn0Sb

The Fortescue Metals Group Limited (ASX: FMG) share price appears to have turned things around this month, gaining 2.5% since the end of September.

Though, that hasn’t been enough to negate the S&P/ASX 200 Index (ASX: XJO) stock’s prior falls. Sadly, the Fortescue share price is still in the year-to-date red.

But, when considering the company’s dividends, would an investor who bought into the stock at the start of the year be recognising a loss? Let’s take a look.

Fall from grace

Assuming I’d invested $1,000 in Fortescue shares on the first trading day of 2022, I probably would have walked away with 50 stocks at $19.85 apiece and $15 to spare.

And that would have been a positive buy for a time. The iron ore giant’s stock reached a high of $22.99 in February, leaving my figurative parcel with a value of $1,150.

But its gains soon turned into losses. The Fortescue share price closed Tuesday’s session at $17.24. That means my initial investment would now be worth $862.

Fortunately, the company has been paying out dividends in that time. Fortescue paid investors an 86 cent per share interim dividend in March and a $1.21 per share final dividend in September.

Thus, after buying 50 Fortescue shares at the start of 2022, I would have received $103.50 in dividends.

That would mean I would be around $20 worse off for the year so far, before considering any potential benefits from franking credits. That’s not too shabby.

Though, a $1,000 investment in BHP Group Ltd (ASX: BHP) shares would have represented a better buy so far.

Are Fortescue shares a buy right now?

Unfortunately, while Fortescue shares have left an investor roughly even this year, brokers aren’t so hopeful on the company’s future.

Morgans is worried about its future free cash flows, saying they could bottom out in seven to eight years’ time, my Fool colleague James reports. That’s because the company is forking out for its renewable energy ventures.

The broker has a reduce rating and a $14.50 price target on Fortescue shares.

Goldman Sachs is also concerned about the impact that the company’s green efforts could have on its bottom line, slapping the stock with a sell rating and a $12.10 price target.

The post If I’d invested $1,000 in Fortescue shares at the start of 2022, here’s how much I’d have now appeared first on The Motley Fool Australia.

.

More reading

• What’s the outlook for ASX dividend shares for the rest of 2022?
• Here are the top 10 ASX 200 shares today
• Why Actinogen, Core Lithium, Fortescue, and Galileo Mining shares are pushing higher
• Fortescue share price shrugs off ASX 200 rout to leap higher on Monday
• Morgans names the ASX 200 mining shares to buy and sell

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

from The Motley Fool Australia https://ift.tt/n5TJ14W

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.

As of June 2022, Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) portfolio controls 10.67 million shares of Amazon.com,Inc. (NASDAQ: AMZN) — a position worth $1.29 billion. Buffett has long been a fan of the company, praising its management skill and dominance of the e-commerce and cloud computing industries.

Let’s explore why it could also make a top investment for your portfolio. 

An undeniably quality business 

Warren Buffett’s investment strategy focuses on quality businesses instead of struggling “cigar butts” that are past their prime. With unquestionable dominance of U.S. e-commerce and global cloud computing (boasting market shares of 38% and 34%, respectively), Amazon is as quality as they come. And despite near-term challenges, the company’s long-term trajectory remains intact. 

Second-quarter results were a mixed bag. Net sales grew 7% to $121.2 billion. But challenges like inflation and the end of the COVID-19-related online shopping boom put pressure on the company’s margins leading to a net loss of $2 billion, down from a net profit of $7.8 billion in the prior-year period. That said, both headwinds look likely to normalize over the long term (for example, the Federal Reserve is raising rates to tame inflation) and are related to macroeconomic challenges, not company-specific failures. 

Amazon has plenty of options to drive continued growth. According to Insider, it plans to roll out its online marketplace in five new countries, mainly in Africa and Latin America, next year. Cloud computing is also an exciting opportunity. Management believes the economy is at the early stages of cloud adoption, leaving plenty of room for expansion as Amazon Web Services (AWS) leverages its economic moat in the industry. 

A rock-solid economic moat 

What exactly is an “economic moat”? Coined by Warren Buffett, the term refers to a company’s ability to sustain a long-term competitive advantage over rivals. For Amazon’s e-commerce operations, this largely comes down to its scale and network effects. Because more consumers buy on Amazon, more merchants sell on Amazon — leading to more competition and product variety, which becomes a positive feedback loop. Scale also benefits Amazon’s cloud business, AWS, in terms of brand recognition and high switching costs for clients who might consider its competitors.

Over the long term, Amazon is likely to use its natural advantage to expand into new synergistic industries like advertising. According to Insider, Amazon is now the third-biggest digital advertising company in the world — behind Google and Facebook — generating $31 billion in 2021. The company’s massive user base of shopping-motivated customers gives it a natural advantage in this competitive industry. 

Be greedy when others are fearful

With the S&P 500 down 21% year to date, we are now in a bear market. And the Fed’s rate hikes and other tightening policies could make the downside worse before it gets better. That said, bear markets are a great time to bet on quality companies trading at a discount to their historic highs. And Amazon’s resilient operations and rock-solid economic moat could make it a great way to bet on a rebound. It isn’t hard to see why Buffett backs the company. 

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

The post 2 reasons Amazon is a Warren Buffett stock appeared first on The Motley Fool Australia.

.

More reading

• What can we learn from how Warren Buffett invested through sky-high inflation?
• Here’s how Meta Platforms plans to disrupt Apple’s and Google’s smartphone empires
• Why dividends matter
• Why Amazon stock popped Tuesday
• 2 top Warren Buffett stocks to buy right now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Will Ebiefung 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 Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. 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.

from The Motley Fool Australia https://ift.tt/nP1xROE

There are plenty of ASX tech shares that have taken a beating in 2022. But within the carnage, there could be a few names that are too good to ignore. One of those opportunities could be the Life360 Inc (ASX: 360) share price.

Firstly, some readers may be wondering what this business, with a $1 billion market capitalisation, actually does.

In the company’s own words, it operates a platform for families. Its core offering, the Life360 mobile app, is a market leader according to the company. The app has a number of features including “driving safety and location sharing”.

Life360 had 42 million monthly active users in June 2022, spread across 150 countries.

What’s going on with the Life360 share price?

Life360 shares have taken a beating amid the changing economic environment where inflation is elevated and interest rates are rising.

In theory, higher interest rates are meant to hurt asset prices. Lower interest rates, like we saw during the COVID years of 2020 and 2021, pushed up asset prices. That change from ultra-low rates to higher rates is really disrupting financial markets.

Plenty of other ASX tech shares have been punished. For example, the Xero Limited (ASX: XRO) share price is down around 50% in 2022.

However, it’s not as though the business has stopped growing.

When Life360 announced its 2022 second quarter and half-year update, it said that monthly active users had increased by 29%. Half-year subscription revenue was up 90%, with 60% growth for core Life360 subscriptions.

The company said that it’s seeing resilience from its subscribers and users despite the challenging macroeconomic circumstances. This could be supportive of the Life360 share price.

Management said that a platform had been established for a bundled hardware launch, with an initial rollout matching “very encouraging” earlier test results. There was a 35% uplift in subscriptions compared to the control group.

There is a continued expectation for sustainable positive cash flow in late 2023, with the first full year of positive cash flow in 2024. The company said that the 2022 first-half adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and its cash burn were on track.

The average revenue per subscription increased by 13% year over year to $75.45.

Expert view on the ASX tech share

On a Livewire webinar, Chris Prunty and Josh Clark from QVG Capital talked about some of the positions in the portfolio. They like to focus on small and medium businesses.

When asked about the ASX tech share, Prunty suggested that the Life360 share price could soar over the long term:

It’s rapidly moving to free cash flow break even and positive, it’s a business that’s growing rapidly with recurring earnings, we think it has enormous latent pricing power and a significant addressable market.

Of all the companies we own, if we look back in five to ten years’ time and it’s gone up five to ten times, that’s the one where I’d be least surprised. We are super bulls on Life360.

The post Down 47% so far in 2022, expert says this ASX tech share is a potential 10-bagger buy appeared first on The Motley Fool Australia.

.

More reading

• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs names the ASX tech shares to buy now
• Why CBA, Flight Centre, Life360, and Link shares are storming higher
• Why the Life360 share price is up 17% in two days and could keep rising
• Leading brokers name 3 ASX shares to buy 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 Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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/xcWSKpw

The Bank of Queensland Ltd (ASX: BOQ) share price will be on watch on Wednesday.

This follows the release of the bank’s full year results for FY 2022.

Bank of Queensland share price on watch following results release

• Statutory profit after tax up 15% to $426 million
• Cash earnings after tax down 5% to $508 million
• Net interest margin down 12 basis points to 1.74%
• CET1 ratio down 11 basis points to 9.57%
• Final dividend up 9% to 24 cents per share fully franked

What happened during FY 2022?

For the 12 months ended 31 August, Bank of Queensland reported a 5% decline in cash earnings after tax to $508 million.

This was driven by a 12-basis points reduction in its net interest margin, which reflects the impact of increasing competition and swap rate volatility. This offset flat operating expenses and a 7% increase in both housing loan growth to $4.4 billion and business loan growth to $1.2 billion.

In respect to the latter, housing loan growth was 1x system for the year, whereas small and medium (SME) business lending grew 1.5x system.

Bank of Queensland’s softer earnings didn’t stop the board from increasing its final dividend by 9% to 24 cents per share. This brought the bank’s full year dividend to a fully franked 46 cents per share, up 20% year over year from 39 cents per share in FY 2021.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting the bank to report a modest 0.5% increase in cash earnings to $534.5 million.

This means that the bank’s cash earnings of $508 million has fallen well short of its estimates, which may not bode well for the Bank of Queensland share price today.

Though, positively, the broker was only expecting the bank to declare a final dividend of 23 cents per share. So, it has beaten on that metric.

Management commentary

Bank of Queensland’s managing director and CEO, George Frazis, was pleased with the bank’s results. He said:

BOQ’s financial results for FY22 highlight our progress on delivering quality sustainable profitable growth and reflect the sharp focus on the execution of our strategic plan. Today’s result demonstrates the disciplined execution of our strategy, the digital transformation program and ME integration and represents another period of improved underlying performance. This has been achieved during ongoing economic uncertainty, and as we bed down the integration of ME and upgrade our digital capability for our customers and our people.

We have advanced our strategy and have a clear pathway to 2025 which builds on the success of our execution to date on the digital transformation and the ME integration. We are a step closer to building a truly multi-brand, cloud-based, digital retail bank with the launch of myBOQ joining VMA on the new common core digital banking platform to enhance our customer experience. The integration program is well progressed with synergies ahead of plan and key milestones delivered during the year.

Outlook

While the bank acknowledges that it is operating in an uncertain environment, it still spoke positively about its prospects in FY 2023. It stated:

BOQ remains focussed on achieving quality, sustainable, profitable growth. Growth across all brands in FY22 provides a revenue tailwind moving in to FY23. We have positive NIM momentum, with tailwinds from rising interest rates partly offset by headwinds from rising funding costs.

Inflation and the costs of the new digital bank create near term headwinds for expenses, however, these will be partly offset by ongoing benefits from the integration and productivity programs.

The integration of ME is well progressed and we continue to execute against our strategic transformation roadmap. We have a clear pathway to the inclusion of ME on the digital bank platform and a plan to launch the new ME digital transaction and savings product and migrate existing ME deposit customers by the end of calendar 2023.

The post Bank of Queensland share price on watch following FY22 results appeared first on The Motley Fool Australia.

.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• What’s the outlook for ASX dividend shares for the rest of 2022?
• Brokers name 3 ASX shares to buy today
• Is CBA the best ASX 200 bank share to buy for dividend income?
• Has the Bank of Queensland share price got 25% upside baked in?

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/49v7Fdw

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.

Nobody likes seeing their portfolio’s value drop. That defeats the purpose of investing. Unfortunately, this has been the case for many investors in 2022, as the stock market has been in a bear market since June of this year.

A bear market happens when one of the major indexes (usually the S&P 500) falls by 20% or more from recent highs. And that’s exactly what we’ve experienced. Since the beginning of 2022, the S&P 500 is down over 24%, the Nasdaq Composite Index is down over 32%, and the Dow Jones Industrial Average is down close to 20% (as of Oct. 8). So, to put it lightly, it’s been a rough year.

However, it isn’t all gray clouds for investors. In fact, bear markets are actually a necessary evil. That may sound backwards, but hear me out.

What controls stock prices?

In the short run, stock prices are a reflection of how investors feel. If a company reports good earnings and its stock price goes up, it’s not because of the earnings themselves; it’s because of how investors feel and react to the earnings. That’s why there are cases of companies reporting good earnings and their stock price dropping, and vice versa.

This is important because to really understand why bear markets are a necessary evil, you have to understand investor sentiment.

It comes down to risk vs. reward

The most fundamental principle in investing is that risk is tied to potential reward. The riskier an investment, the more an investor expects to be able to make. Investors don’t expect to receive large returns from Treasury bills, for example, because they’re as close to a risk-free investment as there is. However, stocks are one of the riskier investments, so investors expect the chance to make huge returns.

If the stock market never experienced bear markets and prices only went up, there would essentially be no risk. And the less perceived risk there is, the more investors are willing to pay for stocks because they don’t feel like they’ll lose money either way — which sets off a chain reaction. Stock prices keep rising because investors are willing to pay more in pursuit of big returns. price-to-earnings (P/E) ratio keep going up, and potential long-term future returns fall as a result. Rinse and repeat.

Since investors know that stock prices can drop and bear markets can happen, they “price” stocks with this risk in mind. This is a good thing because it keeps expected returns high. For long-term investors to make sizable returns over time, they almost need bear markets to happen occasionally.

Use bear markets to your advantage

Instead of viewing bear markets as negative, start viewing them as an opportunity. Specifically, they can be a chance to lower your cost basis, or the average price you’ve paid per share of a stock.

For example, if you used $1,200 to buy 10 shares, your cost basis would be $120 per share. If the stock price then fell and you bought 10 more shares for just $1,000, your new overall cost basis would be $110 per share:

• 10 shares * $120 = $1,200
• 10 shares * $100 = $1,000
• $2,200/20 shares = $110 per share

Your cost basis determines how much you profit (or lose) when you sell shares. Two investors can sell the same number of shares for the same price, but the one with the lower cost basis will profit more. As stock prices fall during bear markets, this may be a chance to get stocks for lower than your cost basis and set yourself up for greater profits in the future.

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

The post Why bear markets are a necessary evil appeared first on The Motley Fool Australia.

.

More reading

• Broker tips A2 Milk share price to jump 20%
• Experts name 2 ASX 200 dividend shares to buy now
• During a dismal quarter for the ASX 200, Sayona Mining shares stormed 60% higher. What’s next?
• What’s the outlook for ASX 200 tech shares in the second quarter?
• Despite recent volatility, Core Lithium shares delivered a 16% gain in Q1. Here’s how

Stefon Walters 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.

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

from The Motley Fool Australia https://ift.tt/MKG7xeh

The A2 Milk Company Ltd (ASX: A2M) share price could be great value.

That’s the view of analysts at Bell Potter, which remain very bullish on the infant formula company.

What is the broker saying about the A2 Milk share price?

Bell Potter has been busy looking at the infant formula market and believes current trading conditions are supportive of its positive view on the A2 Milk share price. The broker commented:

Total landed IMF volumes (traditional + bonded volumes) into China were up +22% YOY in Aug’22 and are up +14% YOY on a R3M basis. China landed volumes found a floor in Apr’22 and have been improving since.

It also notes that input costs for infant formula companies are not getting out of control despite inflation.  It explained:

Our AUD index of commodity input costs has firmed in recent weeks, with implied NZD ingredient costs in 1H23e modestly higher than 2H22 averages.

Buy rating retained

In light of the above, the broker has retained its buy rating and $6.60 price target on the company’s shares. Based on the latest A2 Milk share price of $5.49, this implies potential upside of 20% for investors over the next 12 months.

Bell Potter summarised:

Our Buy rating is unchanged. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e. With an increased focus on direct channels to market (73% of 2H22 IMF sales) we see the offline expansion program as key to achieving these targets. In the near term directionally favourable YOY trends look to have returned to shipment indicators of IMF to China and the NZD weakness is creating a tailwind, given the majority of sales occur in AUD, USD and CNY.

The post Broker tips A2 Milk share price to jump 20% appeared first on The Motley Fool Australia.

.

More reading

• What’s the outlook for A2 Milk shares in the second quarter?
• Why did the A2 Milk share price rocket 23% in the first quarter?
• How did the A2 Milk share price manage to beat the ASX 200 in September?
• A2 Milk share price drops despite buyback kicking off
• Macquarie reveals ASX 200 shares ‘more likely to outperform in a bear market rally’

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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

If you’re an income investor, then you might want to read on. Listed below are two ASX dividend shares that have just been rated as buys by experts.

Here’s what they are saying about these top ASX 200 dividend shares:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 dividend share that has been tipped as a buy is Collins Foods.

It is one of the largest operators of KFC restaurants in Australia, has a growing presence in Europe, and a smaller but growing network of Taco Bell restaurants across Australia.

But management isn’t settling for that. It sees plenty of room for growth in both the Australian and European markets, which could bode well for the company’s earnings and dividends in the coming years.

Morgans is very positive on the company’s outlook and has an add rating and $11.50 price target on its shares.

As for dividends, its analysts are forecasting fully franked dividends of 28 cents in FY 2023 and 31 cents in FY 2024. Based on the current Collins Foods share price of $8.48, this will mean yields of 3.3% and 3.7%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that has been rated as a buy is Stockland.

It is a residential and land lease developer and retail, logistics and office real estate property manager.

Goldman Sachs is positive on the company and has a buy rating and $4.50 price target on its shares.

While Goldman accepts that trading conditions are tough, its analysts “believe the potential headwinds are factored into the share price and see SGP as attractively valued.” Particularly given its recently refreshed corporate strategy and the sale of its low returning Retirement division.

In respect to dividends, the broker is forecasting dividends per share of 27.6 cents in FY 2023 and 28.3 cents in FY 2024. Based on the current Stockland share price of $3.24, this will mean yields of 8.5% and 8.7%, respectively.

The post Experts name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

.

More reading

• Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds

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/eXQHGU6

Sayona Mining Ltd (ASX: SYA) shares skyrocketed in the first quarter of the 2023 financial year.

The ASX lithium share soared 60% between market close on 30 June and 30 September. In contrast, the S&P/ASX 200 Index (ASX: XJO) fell 1.43% during the same time frame.

Sayona is exploring lithium in Quebec, Canada and Western Australia. Let’s check what the company has been up to and what’s next.

Strong quarter

Sayona Mining shares soared 140% from 15 cents at close on 30 June to hit a high of 36 cents on 12 September. However, since then, Sayona shares have been falling.

The company’s share price gained 10% in one day on 4 August. At that time, Sayona announced lithium production at the North American Lithium (NAL) project was on track for quarter one, 2023.

The company also advised that 30% of the operation’s plant and equipment upgrade was complete. The project is a joint venture with Piedmont Lithium Inc (ASX: PLL).

Last month, Sayona Mining shares soared 38% between market close on 2 September and 12 September. On 7 September, Sayona advised it had awarded mining operator Fournier & Fils a four-year contract to supervise mining operations and services.

Sayona Mining managing director Brett Lynch said:

With both demand and pricing for lithium currently at all‐time highs, we are well placed at NAL to become the first supplier of spodumene in North America, paving the way to becoming the region’s leading supplier of lithium carbonate/hydroxide

Another highlight during the quarter was Sayona being added to the ASX 200 list on 19 September.

Looking ahead, a federal Industry, Science & Resources Department report has predicted the lithium hydroxide price to lift to US$51,510 a tonne in 2023. However, by 2024, prices are tipped to peg back to US$37,650 a tonne.

The report also highlighted global electric vehicle (EV) sales lifted 36% in the year to June 2022.

EV giant Tesla sold more EVs than ever before in September, the BBC reported this week. Lithium is a critical component of EV batteries.

If Sayona delivers on its production target for Q1 FY2023, it may be able to capitalise on high lithium prices.

Share price snapshot

Sayona Mining shares have surged 43% in the past year while they have jumped 65% year to date.

For perspective, the ASX 200 has fallen nearly 9% in the past year.

Sayona has a market capitalisation of nearly $1.8 billion based on the current share price.

The post During a dismal quarter for the ASX 200, Sayona Mining shares stormed 60% higher. What’s next? appeared first on The Motley Fool Australia.

.

More reading

• Why is the Core Lithium share price in the green today?
• Why Cettire, Moneyme, Piedmont Lithium, and Superloop shares are racing higher
• Why is the Piedmont Lithium share price having such a stellar run on Tuesday?
• The Sayona Mining share price crashed 20% in September, but now…
• Good times keep rolling for ASX lithium shares on Thursday

Motley Fool contributor Monica O’Shea 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/Nsb6FRt

ASX 200 tech shares are broadly off to a strong start in the second quarter of the 2023 financial year (Q2 FY23).

The S&P/ASX 200 Index (ASX: XJO) is up 2.7% in the early days of Q2 FY23. Using that as our benchmark, let’s check how tech stocks are tracking since the end of September.

Embattled buy now, pay later (BNPL) stock Block Inc (ASX: SQ2), which acquired Afterpay in January, has handily beaten that return, gaining 4.9% so far in Q2.

Accounting software provider Xero Ltd (ASX: XRO) hasn’t managed to hold onto to some strong gains posted in the first week of the quarter. It’s currently down 0.5% since the closing bell on 30 September.

Meanwhile, ASX 200 tech share WiseTech Global Ltd (ASX: WTC), which provides cloud-based software solutions for the logistics sector, has also edged out the benchmark, up 3.8% so far in Q2.

And we’ll leave off with administration services company Link Administration Holdings Ltd (ASX: LNK), our top performer in Q2, up 10.8% so far.

How have these companies performed heading into the new quarter?

The first three quarters of the calendar year (as opposed to financial year, which ends on 30 June), were less than kind to ASX 200 tech shares.

Over the nine months through to 30 September:

• The Xero share price fell 49.7%
• The WiseTech share price dropped 13.3%
• The Square share price (commencing from its 20 January ASX listing) slid 52.1%, and
• The Link share price fell 49.7%

The benchmark index dropped 14.4% over the same period.

While there are company and sector-specific differences that impact these ASX 200 tech shares in unique ways, one factor threw up some gale-force headwinds for all.

Yep, we’re talking about central banks aggressively ratcheting up interest rates for the first time in more than a decade to combat soaring inflation.

This has seen the Reserve Bank of Australia (RBA) raise rates from the historic low of 0.10% to the present 2.60%. The US Federal Reserve has hiked rates to 3.25%, and other leading global central banks have also moved to rapidly raise their own rates.

What’s the outlook for ASX 200 tech shares in Q2?

With the interest rate dilemma in mind, the broad outlook for ASX 200 tech shares in the new quarter will hinge on the rate rises we see from the RBA and the highly influential Fed — and to a lesser extent other global central banks.

Tech stocks are particularly vulnerable to rate increases, as most of these companies are priced with distant future earnings growth in mind. As interest rates rise, so too does the present cost of investing in those future earnings.

As we wrote last week, 5 October, ASX 200 tech shares had a stellar two-day run “as signs emerge that a series of rate increases in the US, the world’s biggest economy, is having some impact on slowing the pace of inflation. That could mean the US Fed won’t need to hike rates as aggressively as the market has priced in”.

Their performance was further boosted by a lower-than-expected 0.25% rate hike from the RBA on 4 October.

But that picture was flipped upside down a few days later.

Yesterday, 10 October, ASX 200 tech shares led the charge lower.

Why?

Because the September jobs data out of the US, the world’s top economy, was stronger than expected. Unemployment is at 50-year lows and wages are growing at 5% annually.

This seemingly good news wasn’t good news for the rate-sensitive tech sector, as markets rapidly repriced in further sharp rate increases from the Fed.

Those expectations were bolstered by Fed Governor Christopher Waller. “Until we see any signs of inflation beginning to moderate, I don’t know how we pause,” he said.

So, investors wondering how ASX 200 tech shares are likely to perform in the new quarter would do well to keep a close eye on inflation expectations out of the United States and here in Australia.

Once central banks can start easing off their hawkish paths, the well-placed companies should enjoy some strong runs, like we just witnessed last week.

The post What’s the outlook for ASX 200 tech shares in the second quarter? appeared first on The Motley Fool Australia.

.

More reading

• Despite recent volatility, Core Lithium shares delivered a 16% gain in Q1. Here’s how
• 5 things to watch on the ASX 200 on Wednesday
• A mortgage ‘battleground’ is coming. UBS names ASX 200 bank shares best placed to win
• Here are the top 10 ASX 200 shares today
• Could ASX 200 shares represent a ‘phenomenal opportunity’ right now?

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 Block, Inc., Link Administration Holdings Ltd, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. 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/7f8iZTO