Category: Stock Market

Some investors have done pretty well out of ASX lithium shares in recent years as the element saw rising demand from battery and electric car makers.

However, those stocks have fallen somewhat in recent weeks as lithium prices have topped out.

So the big question from those who haven’t yet jumped on the bandwagon is: Is it too late? Is the current dip a buying opportunity, or has the peak passed?

Shaw and Partners portfolio manager James Gerrish gave his thoughts recently on whether it’s still a good idea to buy into these companies.

Lithium can’t be substituted easily 

Regardless of the short-term dip, lithium demand is here to stay, according to Gerrish.

“Lithium ties into the electrification thematic that is taking over the globe,” he said in a Market Matters Q&A.

“The reason for the hype is [that] lithium has unique characteristics that are difficult to replicate. It is a light metal but is able to store large amounts of energy and is an excellent conductor of electricity.”

Gerrish added that while other battery minerals can be substituted with other ingredients, lithium demand is “relatively immune to these risks”.

“Demand for lithium has grown at [approximately] 20% compound annual growth rates through 2017 to 2022 and we think that will continue, while lithium deposits that are technically and economically viable to exploit are rare,” he said.

“This all paints a positive backdrop for the sector, and particularly the higher quality hard rock producers in Australia — the question comes down to timing.”

Which is the ASX share to buy to jump on the lithium bandwagon?

So if you were to become a new ASX lithium share investor right now, which is the stock Gerrish would buy?

“We recently bought IGO Ltd (ASX: IGO), which is highly correlated to fellow battery metal stocks on the ASX,” he said.

“We like IGO given it also has a very solid nickel business that has been [expanded] through the sensible purchase of Western Areas (WSA).”

The IGO share price is down around 20% since its last peak on 4 April.

Gerrish’s team still likes the other two major producers, Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE), but they’re “a crowded play” as with many other green-themed stocks at the moment.

“For that reason we have left room to average our IGO position into weakness,” he said.

“We are also contemplating adding Pilbara or buying Allkem in the Emerging Companies Portfolio using the same philosophy.”

For comparison, Pilbara shares have plunged 35% since 4 April, while the Allkem stock price has also headed south 14% over that period.

The post Is it too late to buy ASX lithium shares? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most traded ASX 200 shares on Thursday
• Can the Pilbara Minerals share price recover from a 28% loss this year?
• Why this top broker is bullish on the Allkem share price
• Top brokers name 3 ASX shares to buy today
• Here are the 3 most traded ASX 200 shares on Wednesday

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

from The Motley Fool Australia https://ift.tt/Gv8QWfH

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank notably lower. The benchmark index dropped 1.4% to 7,019.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to end the week deep in the red following a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% lower this morning. In the US, the Dow Jones was down 1.9%, the S&P 500 fell 2.4%, and the Nasdaq sank 2.75%. Investors were nervous ahead of the release of key US inflation data.

Xero remains a buy

The Xero Limited (ASX: XRO) share price is good value according to analysts at Goldman Sachs. In response to the company’s subscription price increases, the broker has retained its buy rating and $118.00 price target. Goldman said: “We remain confident Xero will be able to execute on these increases while preserving its existing subscriber base, noting their strong track record in putting through increases while driving churn lower.”

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.8% to US$121.13 a barrel and the Brent crude oil price is down 0.7% to US$122.70 a barrel. News of new lockdowns in Shanghai weighed on prices.

South32 rated as a buy

The South32 Ltd (ASX: S32) share price could be heading higher from current levels according to Goldman Sachs. This morning the broker reiterated its conviction buy rating on its shares and lifted its price target to $5.90. Goldman has boosted its valuation after updating its estimates to reflect its latest commodity forecasts.

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a soft finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.35% to US$1,849.7 an ounce. Stronger bond yields put pressure on the safe haven asset.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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

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

More reading

• What’s driving the Beach Energy share price to a new 52-week high today?
• Woodside share price soars again despite CEO forecasting oil prices will pull back
• Here are the 3 most traded ASX 200 shares on Thursday
• 3 ASX 200 shares rocking new 52-week highs on Thursday
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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/YGJlP5w

Looking for some growth shares for your portfolio? Then take a look at the three listed below that are rated as buys.

Here’s what you need to know about these growth shares:

Life360 Inc (ASX: 360)

The first ASX growth share to look at is Life360. Its massively popular Life360 app is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate. At the last count, there were over 30 million monthly active users on its platform. Through its freemium model, LIfe360 is generating significant recurring revenue and creating material cross-selling and upselling opportunities for the company.

Bell Potter currently has a buy rating and $7.50 price target on its shares. It believes the company has a huge opportunity to monetise its user base. It notes that the company “has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents.” This includes “insurance, item & pet tracking, senior monitoring, home security and/or identity theft.”

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share that could be in the buy zone is Lovisa. It is a fast-fashion jewellery retailer which has set itself big expansion goals over the coming years. And with an experienced management team behind it who have been there and done that with other retailers, Lovisa appears well-placed to execute on its plans and deliver strong growth over the next decade.

Morgans is very positive on Lovisa and has an add rating and $24.00 price target on its shares. Its analysts are bullish on the company’s global expansion plans and believe “LOV may just prove to be one of the biggest success stories in Australian retail.”

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. It has been growing very strongly over the last few years thanks to the ongoing shift to online shopping. Pleasingly, this has continued in FY 2022. A recent trading update revealed year on year revenue growth of 23% for the period 1 January to the 30 April.

Goldman Sachs has a buy rating and $12.65 price target on its shares. The broker likes Temple & Webster due to its “early lead in the home furniture category which is still in the early stages of online penetration.”

The post Analysts are tipping these ASX growth shares as buys appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher
• This ASX 300 retail share could grow its global store network by 260%: fundie
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Why did the Temple & Webster share price plunge 10% today?
• Do experts think the Temple & Webster share price is a massive opportunity?

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Temple & Webster Group Ltd. 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/23Ddfen

The Commonwealth Bank of Australia (ASX: CBA) share price lunged further south today, ending the day 2.59% in the red at $94.95.

Today’s fall brings the bank’s losses this week to almost 10%, as investors seek to price in troubling headlines on Australia’s mortgage market.

Here we take a look at what’s happening.

What’s clamping the CBA share price?

The flavours of surging inflation and rising interest rates make for an ill-tasting economic dish the market looks set to endure next few periods.

Consequently, the current chatter around ASX banks is centred around these factors.

Credit and ratings agency Moody’s Investors Service reckons there are impeding risks on the horizon for Australia’s mortgage market.

A rise in interest rates is generally accepted as a net positive for banks, seeing as it increases net interest income (NII) and widens net interest margins (NIMs), two important factors of income on a bank’s P&L statement.

However, context is equally as important. The fact is, as Moody’s agrees, Aussie banks are heavily tied to the mortgage market, meaning the risk of loan defaults threatens profitability in the sector.

“The risk of mortgage delinquencies will be highest for borrowers with high loan balances and where amounts are close to buyers’ maximum borrowing capacities,” Moody’s said.

“However, we expect delinquency rates will only increase moderately overall this year because interest rates, while rising, are still low.”

This could change if and when the Reserve Bank of Australia (RBA) continues on its path of rate hikes into FY23 and FY24. On Tuesday, the RBA hiked the cash rate by 50 basis points to its highest level in years.

An upward trajectory in rates also marks down the value of housing in Australia, creating a two-pronged threat for banks. One is that borrowers are less likely to sell their house at the price they bought it. Second, the value of mortgage collateral (property) is also lower, hurting bank loan-to-value (LTV) ratios and other metrics.

Going forward, there could also be an increase in the provision for bad debts on banks’ income statements, thereby hurting earnings.

These points appear to have been accepted by the market, resulting in a sell-off throughout the entire sector.

In the last 12 months, the CBA share price has wormed more than 6% into the red and is trading down more than 6% this year to date.

The post The CBA share price has sunk a brutal 10% so far this week. What gives? appeared first on The Motley Fool Australia.

More reading

• What exactly is going on with ASX 200 bank shares and the RBA rate rise?
• Why has the CBA share price cratered 4% today?
• Why are ASX 200 bank shares plunging on Wednesday?
• The CBA share price is now trading on a 3.5% fully-franked dividend yield
• What’s dragging on ASX 200 bank shares like NAB on Thursday?

Motley Fool contributor Zach Bristow 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/eUWrdRY

Ah, Bitcoin (CRYPTO: BTC)… It’s still the asset that divides opinions. The flagship cryptocurrency has had a horror few months to be sure. It was only in November last year that Bitcoin was hitting new all-time highs and threatening to break US$70,000 per coin. Today, the cryptocurrency is going for just US$30,310 each at the time of writing. That’s a fall of over 55% in just eight months or so.

For long term bulls, this probably represents yet another buying opportunity before Bitcoin’s inevitable climb to new highs. For bears, it probably proves why no one should have invested in it in the first place.

To be fair, although Bitcoin’s recent falls look awful, anyone who bought the cryptocurrency before the start of 2021 (and still owns it) would still be sitting on some pleasing gains. After all, Bitcoin, even at today’s levels, is up close to 500% from the lows we saw in 2020.

So is this flagship crypto still worth buying today? Well, that’s the $64 billion question.

Is Bitcoin worth considering as part of a diversified investment portfolio?

Several of Bitcoin’s so-called advantages have certainly been eroded in recent months. Investors used to say that Bitcoin was an asset uncorrelated to other assets like shares. Well, that certainly hasn’t been evident over 2022 thus far. The cryptocurrency has fallen in value right alongside many of the global share market’s most volatile growth shares.  

Its supposed inflationary hedge properties have also failed to materialise in a year that has been defined by rising inflation. The asset Bitcoin gets compared to the most – gold – has pretty much held its value of 2022, while Bitcoin’s has tanked. 

But there are reasons to believe Bitcoin is a valuable asset to hold as part of a diversified investment portfolio. Firstly, its use and legitimacy as an asset is still valid. Companies around the world are still figuring out how to use cryptocurrencies and blockchain technology in new and innovative ways. 

Secondly, it remains a scarce asset. There are still only 21 million Bitcoins that can ever be created. Like gold, Bitcoin can’t be ‘printed’ in the way that traditional currencies can. So as long as Bitcoin remains relevant, it should still benefit from this scarcity. This could indeed still give Bitcoin inflation-hedging properties over time, as well as reduce its volatility and correlation to assets like growth shares.

Thirdly, there is still every chance that Bitcoin could be worth far more in the future than it is today. If fund managers (or even central banks) around the world start treating this cryptocurrency as they do gold or other assets outside the share market, demand will steadily rise over time (remember, there will always only be 21 million Bitcoins in existence). This is by no means guaranteed. But in my opinion, it is a distinct possibility.

Foolish takeaway

As such, there are many arguments that can be made that would support an allocation to Bitcoin (or even other cryptocurrencies) as part of a diversified investment portfolio. I am not suggesting anyone bets the house on this asset. But there are far more irresponsible paths to take in my view than a 2-5% allocation to the world’s favourite cryptocurrency.

The post Is Bitcoin still worth buying to diversify your ASX share portfolio? appeared first on The Motley Fool Australia.

More reading

• How has the ASX-listed Betashares CRYP ETF been performing?
• ‘Wherever there’s smoke there’s probably crypto,’ warns Dogecoin founder
• Why are Bitcoin miners selling their holdings?
• What’s the outlook for crypto prices in June? Industry insiders weigh in
• 2 top cryptocurrencies to buy and hold for decades

Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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/4I0xW7E

The All Ordinaries Index (ASX: XAO) fell today, but some All Ords shares bucked the trend.

The All Ords Index slipped 1.45% to close at 7240.40 points. In comparison, the S&P/ASX 200 Index (ASX: XJO) shed 1.42%.

Let’s take a look at three All Ordinaries shares that defied the broader index today.

Megaport Ltd (ASX: MP1)

The Megaport share price climbed 2% today to end the day at $6.12. Megaport shares outperformed the technology sector, with the S&P/ASX All Technology Index (ASX: XTX) down 1.25%.

Megaport could be benefiting from positive broker outlook. Goldman Sachs recently placed a $13.10 price target on the company’s shares. This is more than double the current share price.

Citi also recently retained its buy rating but slashed its price target by 26% to $12.30 — still a potential upside of more than 100%.

This ASX All Ordinaries share has a global presence with more than 700 data centres. Goldman predicts the company will grow rapidly in future years as cloud and multi-cloud adoption increases.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa Holdings shares leapt 3.54% in today’s trade to close at $14.03. Lovisa is an Australian jewellery retailer which now has a presence in 15 countries globally.

Lovisa shares are recovering after sliding on Tuesday afternoon after the Reserve Bank of Australia (RBA) lifted rates by 0.5%. Despite plunging by 30% year to date, investors appear to be optimistic the ASX All Ordinaries share can make a recovery.

Morgans has recently placed an add rating and $24 price target on the company’s shares. This is a massive 71% upside on the current share price.

Analysts are optimistic about the company’s global growth plans, as my Foolish colleague James reported. Morgans said: “LOV may just prove to be one of the biggest success stories in Australian retail.”

5E Advanced Materials Inc (ASX: 5EA)

The 5E Advanced Materials share price jumped 4.5% today — the biggest gain of any ASX All Ordinaries share –to finish the day at $3.48. The minerals exploration and production company’s shares jumped 7% in earlier trade before retreating. In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) slid 2.23% today.

5E Advanced Materials has not released any news to the market today. However, on Tuesday it revealed it has signed a non-binding letter of intent for the supply of boron with Corning Incorporated (NYSE: GLW). The company will work with Corning to develop and supply boron for Corning’s products.

Commenting on the deal, CEO Henri Tausch said: “Today’s announcement marks another key milestone for the company as we have now secured an LOI with one of the largest technical glass manufacturers in the world.”

The post 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher appeared first on The Motley Fool Australia.

More reading

• This ASX 300 retail share could grow its global store network by 260%: fundie
• 3 fantastic ASX shares that analysts reckon have huge upside potential
• Megaport share price hits multi-year low: Is this a buying opportunity?
• Goldman Sachs says beaten-up Megaport share price has 100% upside
• Will the Lovisa share price glitter in FY23?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd and MEGAPORT FPO. 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/3AOwEty

One fund manager has picked out an S&P/ASX 300 Index (ASX: XKO) retail share that he reckons could grow its global store network by a significant amount.

That ASX share is affordable jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

Monash Investors co-founder Simon Shields shared the opinion on Livewire, saying Lovisa was his pick as a company to buy and hold for five years. He said:

There’s still a very long store rollout underway in the US and Europe – from 550 stores currently we could easily see 2000 over the next seven to eight years.

The earnings numbers will go up and the share price will follow.

Shields said he believed Lovisa was a “bargain” that would offer good value, even if its share price were to fall a bit further. Lovisa shares were trading 4.43% higher at $14.15 at the close on Thursday.

What is the attraction of Lovisa?

Lovisa is set up with a vertically integrated model, meaning it owns its own product and brand. The company claims to have a significant cost advantage through direct sourcing from factories, with products manufactured in cost-optimal locations such as China, Thailand and India.

According to the ASX 300 retail share, the company has a strong focus on data analytics for inventory management, with a business model that underpins “consistently high gross margins” of more than 75%.

Lovisa noted in an investor presentation that it has a central buying team, which is “highly responsive” to fashion and sales trends with “proven success” in bringing new products to the market that are on-trend.

The ASX 300 retail share has built global logistics infrastructure to help fulfil its growth ambitions. It has logistics hubs in Melbourne, China and Poland, with dedicated e-commerce warehouses in the United Kingdom, the United States and South Africa.

In terms of its store network, management is focussing on international rollout. It has opened 59 new stores in the year to April 2022. In the US, it has opened 38 new stores in the year to date, and it’s now trading from 31 US states.

Lovisa notes that a global leasing team is in place to drive growth from existing and new markets.

Future outlook

When outlining its future, Lovisa said that it was working on the continued expansion of its current markets with the same “successful disciplines” and criteria used to date. It’s also investing in the team to stay ahead of the growth curve and build global capability.

Lovisa is also continuing to focus on digital platforms to help its online sales.

The ASX 300 retail share is aiming to identify new markets to pilot its Lovisa brand.

Trading update

The company noted that trading in the first eight weeks of the FY22 second half saw store sales for that period rise 12.1% compared to the same period in FY21. Total sales were up 61.7% over the same period in FY21.

Lovisa says that the sales momentum has continued through the second half to date to the end of April.

The post This ASX 300 retail share could grow its global store network by 260%: fundie appeared first on The Motley Fool Australia.

More reading

• Will the Lovisa share price glitter in FY23?
• 3 excellent ASX growth shares with major upside potential
• I’d invest $5,000 into these excellent ASX shares for the long term
• Analysts name 2 ASX growth shares to buy with major upside potential
• 3 ASX growth shares brokers rate as buys right now

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 recommended Lovisa Holdings Ltd. 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/RxlqtT3

For decades, the Telstra Corporation Ltd (ASX: TLS) share price was a top choice for ASX dividend income investors on the ASX. A mature, monopolistic business model with a high payout ratio policy, what was there not to like?

But Telstra’s days of offering 7%, fully franked dividends came to an unceremonious end back in 2017. That was when the telco announced a big haircut to its cherished dividend. At the time, this saw a steep decline in the value of Telstra shares. To illustrate, Telstra was being priced at close to $7 a share in early 2015. But by mid-2018, the telco was down to under $3 a share.

But in the years since then, Telstra has arguably managed to salvage some of its reputational former glory when it comes to dividends. Telstra is still not paying anything close to the dividends it used to in raw terms. But the telco has kept its payouts steady for the past few years, including during 2020.

This was crucial for investors. For most of 2020, Telstra shares were being priced around the $3 mark, with some swings thrown in. The telco kept its dividend steady at 16 cents per share, fully franked, over the year of the pandemic. As such, investors enjoyed a rough dividend yield of 5% or so.

This would have been invaluable for income investors, who watched as many other ASX dividend heavyweights, including all four of the big banks, slashed their payouts.

But now we are in 2022, and the worst of the pandemic lockdowns are behind us (touch wood), is Telstra still a dividend share heavyweight on the ASX?

Are Telstra shares still worth considering for dividend income?

Well, the Telstra share price has steadily recovered from its 2020 lows, although it has saged somewhat over 2022 thus far.

At the close of trading on Thursday, Telstra was going for $3.86 a share. At this share price, its still-standing 16 cents per share in annual payouts mean Telstra is offering a fully franked dividend yield of 4.13% on current pricing.

That is certainly nothing to turn one’s nose up against. Especially considering 4.13% grosses-up to 5.9% with that full franking.

Saying that, Telstra certainly doesn’t stand as high above the ASX dividend pack as it used to. The company’s yield is still beating out Commonwealth Bank of Australia (ASX: CBA) at the moment. But it is now trailing the other big four banks.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) currently has a trailing yield of more than 6%. ANZ has also suffered a near 20% drop in value over the past 12 months, so it’s not all roses and rainbows.

The big miners like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) have been catapulted past Telstra in the dividend stakes in recent years too, fuelled by record-high iron ore prices. BHP’s trailing dividend yield is still over 10% right now.

But all in all, Telstra remains a solid ASX dividend paying share offering an above-average income stream on the ASX 200. Income investors value consistency with their payouts just as much as a high yield, so that counts for something too.

 

The post Are Telstra shares still ASX dividend heavyweights? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Thursday
• Broker tips 2 ASX 200 dividend shares with major upside AND juicy yields
• Tolls and phones: Wilsons unveils 3 ASX shares to buy for a slowing economy
• Here are the 3 most traded ASX 200 shares on Tuesday
• Analysts name 2 top ASX 200 dividend shares to buy right now

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 Corporation Limited. 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/AhYoVHU

Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with attractive yields. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend share to look at is Centuria Industrial. It is has a portfolio of high quality industrial assets.

This is a great space to be in right now, with the company reporting strong nationwide demand for industrial space. This is particularly the case from ecommerce-related tenant customers and has underpinned strong rental growth in FY 2022.

Analysts at Macquarie remain positive on the company. Earlier this month, the broker retained its outperform rating with a $3.94 price target.

In addition, the broker is forecasting dividends per share of 17.3 cents in FY 2022 and 16.8 cents in FY 2023. Based on the current Centuria Industrial REIT share price of $3.19, this will mean dividend yields of 5.4% and 5.25%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

While trading conditions are tough for its retail businesses at present, the same cannot be said for its Wesfarmers Chemicals, Energy and Fertilisers (WCEF) business. This business is experiencing strong demand at present, which bodes well for its near term earnings.

And while it may not be enough to drive overall profit growth in FY 2022, a number of analysts are expecting a rebound in FY 2023. One of those is Morgans, which has an add rating and $58.40 price target on its shares.

As for dividends, Morgans is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $44.70, this will mean yields of 3.7% and 4%, respectively.

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

More reading

• The Wesfarmers share price is trading at 2-year lows. Time to plough in?
• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• ASX retail shares tumble following RBA rate rise
• Why this top broker is tipping the Wesfarmers share price to rise 24%
• Top brokers name 3 ASX shares to buy next week

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 Wesfarmers Limited. 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/qOPhyQH

The Northern Star Resources Ltd (ASX: NST) share price is tumbling again on Thursday, down 2.52% to $8.51 in late afternoon trade.

This means the gold miner’s shares are now down more than 25% from their April high of $11.59.

Furthermore, investors have also hit the sell button on Northern Star’s peers in the past couple of months.

For context, Newcrest Mining Ltd (ASX: NCM) shares have dropped 17% from their top of $28.96 in April. 

And the Evolution Mining Ltd (ASX: EVN) share price is in the red by 23% from its nine-month high of $4.68 in April.

What’s dragging Northern Star shares to near multi-year lows?

Investor confidence has been waning in recent times following a raft of unfavourable macro environmental factors.

First and foremost, the price of gold has deteriorated to around US$1,850 per ounce. This represents a decline of 6.3% since 18 April – around the time when Northern Star shares were hitting monthly highs.

Despite the price of the yellow metal staying relatively stable for now, the Northern Star share price is continuing to be impacted.

The decision by the Reserve Bank of Australia to lift interest rates also likely had a negative effect on the gold sector.

In times of rate hikes, investors tend to shift their focus away from gold and into government bonds.

On Friday, the United States consumer price index for May will be released, which will provide crucial data on whether inflation has peaked.

Depending on the report, it’s anyone’s guess if the Federal Reserve will be more aggressive with its monetary policy.

With Northern Star shares falling, is this a buying opportunity?

A couple of brokers put out their thoughts on the Northern Star share price late last month.

As reported by ANZ Share Investing, Credit Suisse raised its 12-month price target on the company’s shares by 4.5% to $11.50.

It appears the broker is bullish on Northern Star and believes it is significantly undervalued.

Based on the current share price, this represents an upside of around 35%.

On the other hand, UBS cut its rating by 0.8% to $11.70. It, too, thinks Northern Star shares have a huge upswing.

Share price snapshot

The Northern Star share price is down 22% over the past 12 months.

It is also trading 9% lower this year to date and is 10% down over the past month.

On valuation grounds, Northern Star commands a market capitalisation of approximately $9.94 billion.

The post The Northern Star share price is down 25% from its April high. Is now the time to buy? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the Northern Star share price having such a lacklustre start to the week?
• 5 things to watch on the ASX 200 on Monday
• Where is the Northern Star share price headed in June?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. 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/tUiOueh