Category: Stock Market

The iSelect Ltd (ASX: ISU) share price has skyrocketed on news that the company has received a takeover offer.

In early morning trading, the iSelect share price is up 75% to 28 cents.

The iSelect board is unanimously recommending that shareholders vote in favour of the deal.

The offer has come from Innovation Holdings Australia (IHA), which owns https://ift.tt/bGpyok5.

IHA is also an investment of the international private investor group, Reef Investment Consortium.

iSelect announced it has entered into a Scheme Implementation Agreement before the market open today.

IHA already holds 26% of iSelect shares. It proposes to acquire all other shares by way of a scheme of arrangement.

What’s the offer to iSelect shareholders?

IHA is offering to buy iSelect at a price of 30 cents per iSelect share held. The iSelect share price closed yesterday’s session at 16 cents.

In its statement, iSelect pointed out that the offer represents an 87.5% premium to that closing price.

The deal is subject to an independent analysis to ensure the deal is in the best interests of shareholders. It will also need approval from the Australian Competition and Consumer Commission.

iSelect anticipates scheduling a shareholder vote in November.

Major shareholders back the buyout

Major iSelect shareholders Thorney Investment Group and Microequities Asset Management Group Ltd (ASX: MAM) are in favour of the deal.

Thorney is a private investment group run by stock picker Alex Waislitz. It owns 14.34% of the iSelect shares on issue and Microequities Asset Management owns 9.5%.

iSelect shareholders do not need to take any action yet. They will receive a scheme booklet in October.

What did management say?

The Chair of iSelect, Brodie Arnhold, said: “The Scheme provides an opportunity for shareholders to realise a significant premium to market value for their shares and provides the certainty of an all-cash offer.”

If all conditions are satisfied, iSelect expects the scheme to be completed between December this year and March 2023.

iSelect will release its FY22 full-year results during earning season on Tuesday 23 August.

The post iSelect share price explodes 75% on takeover news appeared first on The Motley Fool Australia.

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More reading

• ASX 200 better buy: Wesfarmers or Woolworths?
• Guess which ASX 200 share just upped its dividend by 25%
• CBA share price slides today despite an 11% FY22 earnings leap
• Computershare share price plunges 6% following FY22 results
• Here’s everything you need to know about the latest CBA dividend

Motley Fool contributor Bronwyn Allen 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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It’s been a wild ride on the ASX this year and no corner of the market has been spared. 

As interest rates rise and inflation soars, consumer-facing businesses, in particular, have been feeling the heat.

While these businesses come in all different shapes and sizes, there are two at the pointy end of the S&P/ASX 200 Index (ASX: XJO) that often draw comparisons: Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES).

Let’s see how these two ASX blue-chip shares stack up.

Comparing apples and oranges

Before we dig into which of these ASX stalwarts might be a better buy, let’s first set the scene.

Both Wesfarmers and Woolies are conglomerates comprising many different brands. Wesfarmers owns a large and diverse stable of household names, including Bunnings, Kmart, Target, and Officeworks. More recently, it acquired formerly ASX-listed Australian Pharmaceuticals Industries which owns the Priceline network of pharmacy stores across the country.

Woolies, on the other hand, is more concentrated after spinning off its retail drinks and hotels arm last year. Nowadays, an investment in Woolies predominantly has exposure to the eponymous supermarket chain. The group’s Australian and New Zealand food segments generated 86% of revenue and nearly all of its earnings in the first half of FY22. 

So, despite sharing similar roots, various divestments and acquisitions on both parts have seen the two conglomerates’ operations drift apart over the years.

The case to put Woolies shares in your shopping trolley

Inflation has stolen the spotlight in recent months as the cost of living heads north and consumers feel the pinch.

Along with eye-watering prices at the petrol bowser, the other category of most concern to consumers is food inflation. 

Just one look at the price of lettuce and it’s clear to see food inflation is out in full force. A combination of factors has been driving this, including higher input costs, supply chain issues, floods, and labour shortages.

Rising inflation is leading to higher prices on supermarket shelves as the likes of Woolies and Coles Group Ltd (ASX: COL) pass on cost increases. Meanwhile, demand typically holds steady as consumers shift their spending away from discretionary items, such as clothes and electronics, toward essentials.

What’s more, an inflationary environment usually sees budget-conscious consumers turn their backs on dining out in favour of buying food to cook at home. With value being front of mind for shoppers, sales for Woolies’ higher-margin homebrand products will likely receive a boost. That said, this could be offset by lower sales for the supermarket’s more premium Macro brand, which also attracts juicier margins.

On the whole, rising inflation could be a net benefit for supermarkets like Woolies, which are expected to post robust sales growth this ASX reporting season. 

Looking out into the longer term, Woolies shares offer a defensive earnings profile due to the non-discretionary nature of groceries. Management has been delivering on its strategy to reinvest in the high-returning core business, demonstrating sound capital allocation to balance shareholder returns and growth.

The case to add Wesfarmers shares to your toolkit

While its supermarket chain makes up the lion’s share of Woolies’ sales and profits, Wesfarmers’ operations are more diverse. Here, the driver is Bunnings, with the beloved home improvement store raking in 52% of group revenue and 70% of group earnings in the first half of FY22. 

But Wesfarmers also has meaningful contributions from Kmart; Officeworks; Catch; its chemicals, energy, and fertilisers business; its industrial and safety business; and, more recently, a foray into health via its acquisition of API.

This diversification adds to Wesfarmers’ resilience while also providing the group with multiple growth levers. Beyond the household names, it has exposure to lithium through the Mt Holland project and also has its sights set on a further multi-billion-dollar push into the health, wellness, and beauty markets.

In my eyes, the beauty of Wesfarmers lies in its portfolio of market-leading brands. The likes of Bunnings, Kmart and Officeworks are top of mind (and hearts) for consumers, making a name for offering the lowest prices and widest ranges. With this strong brand power comes hefty sales, which allows these businesses to continue to reap the benefits of scale. 

These high-quality brands are led by none other than Bunnings, a powerhouse in the Wesfarmers portfolio. In the first half of FY22, Bunnings boasted returns on capital of 79%. The business isn’t resting on its laurels either, with plans to further expand in household categories and take a greater share of the commercial market.

So which is the better ASX 200 buy?

Both Woolies and Wesfarmers have a history of market-beating returns and could be worthy of a spot in a diversified portfolio.

So far this year, Woolies shares have come out on top as Wesfarmers’ retail arms have been exposed to COVID lockdowns and the health of the Aussie consumer.

While the defensive nature of Woolies shares is attractive, over the long term I’d be leaning towards Wesfarmers for its optionality and exposure to the jewel in its crown, Bunnings.  

The post ASX 200 better buy: Wesfarmers or Woolworths? appeared first on The Motley Fool Australia.

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More reading

• I think these ASX 200 dividend shares look like good income picks after reporting
• 2 excellent ASX dividend shares experts rate as buys
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor Catherine Goh 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 COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Owners of shares in S&P/ASX 200 Index (ASX: XJO) online real estate advertising company REA Group Limited (ASX: REA), rejoice!

Your investment just announced its largest dividend ever, boosting its full year payout by 25%.

Sadly, the stock is in the red today after surging 7% on the back of its full year results, released yesterday.

The REA share price is $127.44 right now, 3.69% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also down, falling 0.12% at the time of writing.

But a day in the red likely won’t be enough to wipe the smile off shareholders’ faces. Let’s take a look at the record dividend announced by the ASX 200 share this week.

Which ASX 200 share just announced a record dividend?

Financial year 2022 was good to ASX 200 share REA, and now the company is passing a chunk of its takings to shareholders.

The company’s revenue lifted 26% last financial year compared to that of financial year 2021.

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose 19% while its net profit jumped 25%.

And much of that profit is now up for grabs.

REA announced a record 89 cent per share fully franked final dividend, bringing its full year dividends to $1.64 – up 25% year-on-year.

That means the stock is currently trading with a dividend yield of 1.28%.

And would be investors have a few weeks to decide whether they’ll pursue the payout. The ASX 200 share doesn’t trade ex-dividend until 25 August.

The dividend is then expected to begin landing in shareholders’ accounts in mid-September.

REA share price snapshot

Despite posting strong earnings, the REA share price has been underperforming in 2022.

The company’s shares have slumped 26% since the start of the year while the ASX 200 has dumped around 8%.

It’s also been underperforming over the longer term, falling 18% in the last 12 months. Meanwhile, the index has slipped 7%.

The post Guess which ASX 200 share just upped its dividend by 25% appeared first on The Motley Fool Australia.

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• 2 ASX 200 blue chip shares brokers rate as buys
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• Why Coronado Global, Lake, Megaport, and REA shares are storming higher
• REA share price marches higher on record final FY22 dividend

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

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The Commonwealth Bank of Australia (ASX: CBA) share price is sliding in morning trade.

CBA shares closed yesterday trading for $101.28 and are currently trading for $100.41, down 0.9%.

This comes after the S&P/ASX 200 Index (ASX: XJO) listed bank, Australia’s largest, released its full-year results for the 12 months ending 30 June this morning (FY22).

Among the highlights reported by The Motley Fool earlier today…

What did CommBank report?

The CBA share price is in the red in early trade despite reporting some strong results.

Those included a 3% year-on-year increase in revenue, which reached $25.14 billion in FY22.

Cash earnings of $9.60 billion were up 11% from FY21.

The big bank managed to increase its revenue and cash earnings while trimming its operating expenses, which were down 1.5% year on year to $11.19 billion.

On the negative side of the ledger, net interest margins (NIM) dropped 0.18% from FY21 to 1.9%. The bank pointed to lower margins on its home loans along with a spike in lower-yielding liquid assets for the decline.

With the Reserve Bank of Australia on a rate-hiking path, however, CBA forecast its NIM would improve.

CommBank also declared a final fully-franked dividend of $2.10 per share. For the full year, it’s paying a dividend of $3.85 per share. That’s a trailing yield of 3.8% at the current CBA share price.

Yet none of the past year’s results, nor the healthy dividend look to be enough to boost the bank’s shares today.

Why is the CBA share price sliding today?

The CBA share price is the only one of the ASX 200 banks in the red today.

Macquarie Capital analyst Victor German pointed to the continuing price-to-earnings (P/E) ratio premium that CommBank demands over its peers as likely to throw up headwinds for the bank.

At the current share price, CBA trades at a P/E ratio of 19 times.

“While we recognise the appeal of the franchise in the rising rate environment, the current multiple is difficult to justify, in our view,” he said (courtesy of The Australian). “With pre-provision profit broadly flat in 2H22, we see CBA’s premium as too demanding.”

German said the decline in NIM was “arguably the key area of disappointment”.

German continued:

While most of the margin decline came through in the third quarter, it appears that June quarter margins were broadly flat versus peers being slightly up. Elsewhere, marginally better expense management resulted in a small pre-provision beat, however, we note that CBA wrote off about $445 million of capitalised expenses, which continues to support its expense performance.

CBA share price snapshot

While it hasn’t exactly shot out the lights, the CBA share price has outperformed the benchmark this year, down 2% in 2022 compared to a year-to-date loss of 8% posted by the ASX 200.

The post CBA share price slides today despite an 11% FY22 earnings leap appeared first on The Motley Fool Australia.

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More reading

• Here’s everything you need to know about the latest CBA dividend
• How to play ASX bank shares for dividends this reporting season: expert
• CBA share price on watch after FY22 cash earnings jump to $9.6bn
• 5 things to watch on the ASX 200 on Wednesday
• Why Block, CBA, Mesoblast, and NAB shares are dropping today

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

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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.

What happened

Most cryptocurrencies are falling today along with tech stocks, as investors gear up for key inflation data tomorrow that has the potential to move markets in a big way.

Over the last 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), had fallen roughly 4% as of 2:49 p.m. ET today. In that same time frame, the price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), had fallen roughly 5%, and the price of meme token Shiba Inu (CRYPTO: SHIB) traded nearly 8% lower.

So what

Tomorrow morning, the U.S. Bureau of Labor Statistics (BLS) will unveil July data for the Consumer Price Index (CPI), which tracks the prices of a wide range of consumer goods and services. Investors use it as one way to gauge inflation. In June, the CPI surprised the market, rising 9.1% year over year. But investors were relieved to some extent because a big chunk of the gain had come from a rise in energy and gasoline prices, which started to come down in July.

Economists are expecting an 8.7% year-over-year increase for July, reflecting the drop-off in energy prices, but investors will also be hoping to see other price categories fall as well, whether it’s transportation, food, or rent. 

If the CPI comes in at 8.7% or below, there is a decent chance the market reacts favorably because it could mean that inflation is peaking, which may allow the Federal Reserve to ease off a bit when it comes to hiking interest rates. If the CPI comes in above 8.7% the market may not react so favorably. Rising rates have crushed the likes of Bitcoin and other cryptocurrencies this year because higher rates make risky growth assets less appealing, and crypto had been on a tear in 2021.

But investors are starting to think that the worst may now be behind crypto. JPMorgan Chase analyst Kenneth Worthington recently said in a research note that crypto has “found a floor despite trading volumes still being depressed.”

Worthington attributes this to investors settling down after the collapse of the algorithmic stablecoin TerraUSD and now being less worried about the impact on the broader crypto market. In addition, investors also seem to be excited about a series of ongoing upgrades to Ethereum’s network that are expected to drastically improve the network, which may be completed sometime this year.

Now what

While crypto seems to have stabilized in recent weeks, it still seems to be trading with some correlation to tech stocks, as evidenced by today’s trading activity and investors’ anxiety over the CPI report tomorrow.

I do think if the CPI comes in worse than expected and stocks fall, Bitcoin could go lower and fall back to some of the annual lows it was seeing in June. If the CPI comes in better than expected, that likely has a good chance to send crypto prices higher.

Long term, I do see Bitcoin and Ethereum as good investments, given their growing acceptance across the globe and in the mainstream financial system. I have no interest in meme token Shiba Inu because it does not have any practical use cases or technical advantages over other cryptocurrencies.

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

The post Why Bitcoin, Ethereum, and Shiba Inu are falling today appeared first on The Motley Fool Australia.

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More reading

• Can the Bitcoin price reach US$30,000 again in 2022?
• Why Bitcoin, Ethereum, and Dogecoin are shooting higher today
• Could this key metric signal more bad news for the Bitcoin price?
• Is it smart to use dollar cost averaging to buy Bitcoin?
• Bitcoin price dips in August after soaring 22% in July. What’s going on?

Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. 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.

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It’s a big week for S&P/ASX 200 Index (ASX: XJO) bank shares as industry giants Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) throw their hats into the earnings season ring. But big four bank share Westpac Banking Corp (ASX: WBC) appears to have been left in the dark.

Indeed, the company doesn’t appear on this year’s earnings season calendar at all.

So, when will the market learn how the bank performed over financial year 2022? Keep reading to find out.

When will Westpac drop its FY22 earnings?

NAB released its earnings for the June quarter on Tuesday and CBA has dropped its full-year earnings this morning.

But owners of Westpac shares still have a while to wait before they learn of their investment’s performance.

In fact, Westpac hasn’t even emerged from financial year 2022 yet.

It operates on a fiscal year ending 30 September, meaning it won’t surpass the annual milestone for another seven weeks.

After which, it will spend time collating its full-year performance. It’s expected to release its financial year earnings on 7 November.

Though, it’s not all bad news for excited fans of the third biggest big four bank. Those invested in Westpac shares have something to look forward to this month.

The bank is set to drop its June Pillar 3 on Monday — the public disclosure of risk and capital management information required by the Basel Committee on Banking Supervision’s regulatory capital and liquidity management framework.

While it may not contain much in the way of earnings, the report will look into the bank’s asset and credit quality.

Westpac share price snapshot

The Westpac share price is outperforming the ASX 200 so far this year.

The stock has gained 1% since market open on 4 January 2022, while the index has slumped 7.8%.

Though, looking longer-term reveals a different picture. Westpac’s stock has plunged 14.4% since this time last year, while the ASX 200 has again fallen 7.5%.  

The post Own Westpac shares? Here’s when the ASX 200 bank will release its FY22 earnings appeared first on The Motley Fool Australia.

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More reading

• Analysts say these ASX dividend shares are top buys
• Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  
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• Can Westpac shares deliver a competitive dividend yield and 20% upside in FY23?
• Broker says Westpac share price ‘offers the most upside of the banks’

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 recommended Westpac Banking Corporation. 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 underway. At the current time, I think there are a few S&P/ASX 200 Index (ASX: XJO) dividend shares that could make solid picks for income at their current prices.

Examining results gives us a chance to get a look under the ‘hood’ of businesses. Companies that have been sold off over the last few months could be attractive opportunities because investors have put them on a lower valuation.

While not every business is worth buying just because it has fallen, I do believe that some of them may have been oversold.

In my opinion, there may be some real estate investment trusts (REITs) that now look like good ASX 200 dividend share opportunities because of investor concerns surrounding inflation and rising interest rates.

Here are two I’ve been looking at:

Charter Hall Long WALE REIT (ASX: CLW)

Since the end of April 2022, the Charter Hall Long WALE REIT share price has dropped almost 20%. That’s a hefty drop for what is typically seen as a defensive sector. It’s invested across a range of property sectors including industrial, retail, and agri-logistics.

In its FY22 result, the business noted that its operating earnings had grown by 4.5% and that the net tangible assets (NTA) per unit rose by 18.2% to $6.17.

The REIT noted that the portfolio weighted average lease expiry (WALE) was 12 years at year-end, which provides “long-term income security”. I think this also provides useful visibility for the potential future distributions.

Rental income looks as though it’s going to grow at a good pace. In FY22, 51% of leases were fixed with an average fixed increase of 3.1%, while 49% of leases were CPI-linked, up from 40% in FY21. The CPI-linked leases are expected to grow by 6.3% in FY23.

The ASX 200 dividend share is expecting to pay a distribution per security of 28 cents in FY23. That translates into a forward distribution yield of 6.4%.

Centuria Industrial REIT (ASX: CIP)

As the name suggests, this REIT is focused on industrial properties.

In FY22, its portfolio expanded to 88 “high-quality” industrial assets worth $4.1 billion. It had an 8.3-year WALE with a 98.8% portfolio occupancy.

Its NTA per unit increased by 11% to $4.24 and its funds from operations (FFO) (the net rental profit) rose 22%.

In FY23, the business is expected to generate FFO per unit of 17 cents and it expects to pay a distribution of 16 cents per unit. That would translate into a distribution yield of 5.35%.

The Centuria Industrial REIT share price has dropped almost 30% in 2022.

Jesse Curtis, the fund manager of the ASX 200 dividend share, gave commentary on the state of play for industrial property, which could also be applied to some of Charter Hall Long WALE REIT’s properties:

Globally, industrial real estate continues to benefit from strong tailwinds. Increasing e-commerce, and securing supply chain resilience, are driving strong demand. Domestically, despite recording strong rental growth during FY22, Australia’s industrial market continues to see robust tenant demand. Labour shortages, supply change disruption and limited industrial zoned land have resulted in new industrial accommodation being in short supply.

Coupled with sustained demand generated from trends of growing e-commerce adoption and increased reshoring, this is creating an environment for prolonged rental growth, particularly within urban infill markets where Centuria Industrial REIT has 85% of its portfolio.

The post I think these ASX 200 dividend shares look like good income picks after reporting appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why the Charter Hall Long WALE REIT share price isn’t rocking the boat
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• In this most volatile of years, the ASX 200 is within shouting distance of turning positive

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 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 ASX is well-known as one of the highest dividend yield payers in the world.

One of the big reasons for this is Australia’s generous taxation rules, which prevent dividend income from being taxed twice.

The franking credits and dividend imputation system dictates that if the business has already paid company tax on the money distributed, the investor does not have to pay income tax on that yield.

The Australian share market is also dominated by the major banks and miners. 

Both sectors are known for large dividend yields. But due to the cyclical nature of mining, banks are the more consistent payers for investors seeking income.

So with this in mind, one expert was asked which are his favourite bank ASX shares and how he would maximise dividend payouts this reporting season.

The 3 best bank shares right now

Shaw and Partners portfolio manager James Gerrish, across his two portfolios, holds these three banks:

• Bank of Queensland Limited (ASX: BOQ)
• Commonwealth Bank of Australia (ASX: CBA)
• Macquarie Group Ltd (ASX: MQG)

“At this stage we don’t see any reason to deviate away from our current portfolio holdings,” he said in a Market Matters Q&A.

Other analysts are somewhat divided on these picks.

According to CMC Markets, eight out of 12 rate Bank of Queensland as a buy. Nine out of 15 recommend buying Macquarie shares.

Meanwhile, Commonwealth Bank is actually very unpopular — 10 out of 17 analysts rated it as a sell.

Commonwealth Bank will report its financials on Wednesday. 

How to reap the dividends this reporting season

As for a dividend strategy, Gerrish suggested staggering the harvest.

“CBA is due to pay its next juicy morsel this month and BOQ in October,” he said.

“Conversely the other three members of the Big 4 don’t pay their next dividends until November, providing plenty of room to switch from a time perspective to garner future pay-outs if value opportunities arise.”

Among the other three major banks, he does have one standout that he would switch to grab those November dividends.

“National Australia Bank Ltd (ASX: NAB) would be our preferred choice at this stage.”

Investors are reminded that each stock needs to be held for a minimum of 45 consecutive days in order to claim franking credits from the tax office.

“The rule is designed to prevent franking credits to be claimed by share traders who hold shares for a short period of time and then sell as soon as they qualify for a dividend,” states Aston Accountants.

“The rule applies to all individual taxpayers, entities and SMSF.”

The post How to play ASX bank shares for dividends this reporting season: expert appeared first on The Motley Fool Australia.

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More reading

• CBA share price on watch after FY22 cash earnings jump to $9.6bn
• Is the NAB share price a buy following the bank’s latest update?
• 5 things to watch on the ASX 200 on Wednesday
• Why Block, CBA, Mesoblast, and NAB shares are dropping today
• NAB share price lags other ASX 200 banks following quarterly update

Motley Fool contributor Tony Yoo has positions in Macquarie Group 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price will be one to keep an eye out on Wednesday.

At yesterday’s market close, shares in the infant formula and fresh milk company finished at $5.11 apiece.

Let’s take a look at what was released to the market this morning.

A2 Milk suffers setback

In its statement, A2 Milk advised that the Food and Drug Administration (FDA) was deferring further consideration for an enforcement discretion to import infant milk formula (IMF) products into the United States.

The company also said it was informed by the International Dairy Foods Association that similar letters have been sent to all other pending enforcement discretion applicants.

It noted that the FDA was deferring any further review of all such applications at this time.

Earlier this month, A2 Milk shot down media speculation that suggested it was nearing approval from the FDA to sell IMF products into the US.

The news led the company’s shares to reach an intraday high of $5.08 on the day before closing at $4.90, up 7.93%.

In late May, A2 Milk rival, Bubs Australia Ltd (ASX: BUB) was granted FDA approval to ship 1.25 million tins of baby formula.

Other dairy companies have been lining up to get in on the action as the US relaxed its restrictions to import IMF products.

This comes after US consumers faced an infant formula shortage following potential contamination at one of its largest manufacturing plants.

A2 Milk share price snapshot

A2 Milk shares have gradually been sold off over the past 12 months on the back of weakened investor sentiment.

Its shares are down 13% for the period.

However, looking at year-to-date, A2 Milk shares have outperformed the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) – down 6% vs. down 17%, respectively.

A2 Milk commands a market capitalisation of roughly $3.80 billion.

The post A2 Milk share price on watch amid FDA update appeared first on The Motley Fool Australia.

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More reading

• Own A2 Milk shares? Here’s how the company is battling to rebuild lost daigou sales
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, Qualitas, Telix, and Ventia shares are pushing higher today
• Here’s why the A2 Milk share price just popped then stopped
• Own A2 Milk shares? Here’s what to expect from its FY22 results

Motley Fool contributor Aaron Teboneras has positions in A2 Milk. 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 and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This year looks like a good year to go hunting for ASX shares to buy in my opinion.

No one really knows what will happen next with share prices, the economy, or anything else of that nature.

However, as investors, it’s probably a good idea to buy shares when the prices are at a lower price rather than at a higher price. That may seem obvious. But, when uncertainty increases, some investors suddenly don’t want to buy assets at discounted prices.

But for me, it’s times like this that make it a good time to buy ASX shares. I have been putting money to work in some of my old favourites as well as some new names.

At the current prices, I think there are plenty of opportunities. In my opinion, these two are looking good after their declines in 2022.

VanEck Video Gaming and eSports ETF (ASX: ESPO)

I think this is one of the most interesting exchange-traded funds (ETFs) on the ASX. It aims to give investors exposure to the global video gaming and e-sports sector.

In this portfolio are names like Nvidia, Activision Blizzard, Advanced Micro Devices, Tencent, Nintendo, Bandai Namco, Electronic Arts and Take-Two Interactive Software.

One of the main things that attracts me to this ETF is the solid underlying revenue growth. According to VanEck, e-sports revenue has grown by an average of 28% per year since 2015. The wider video gaming sector has seen average annual revenue growth of 12% per annum since 2015.

VanEck said:

E-sports reflect the convergence of entertainment, video gaming, sports and media businesses. With an active, engaged and relatively young demographic, the stage is set for sustainable long-term growth.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading ASX growth share in the beauty e-commerce space. It sells thousands of products from many different brands.

One of the attractions for me is the heavy fall of the Adore Beauty share price while revenue keeps growing. Since the beginning of 2022, Adore Beauty shares have dropped 65%. Yet, in the third quarter of FY22, Adore Beauty noted that its revenue was up 9% to $42.7 million, active customers was up 7% to 880,000, and returning customers increased 47%.

In my opinion, Adore Beauty’s revenue could be more defensive than some investors are giving it credit for.

Adore Beauty CEO Tennealle O’Shannessy pointed out:

Beauty, especially skincare, is unique within the broader retail market and is resilient to economic challenges. Our products are used daily by customers, who consider these items essential and frequently re-purchase. The nature of premium beauty means our customers spend more as they mature on the platform, with returning customers typically contributing more than 70% of total revenue.

The company’s app now accounts for more than 10% of revenue and continues to deliver “elevated” levels of engagement, conversion and average order values. I also think that its new private-label products could help the company’s long-term profit margins.

The ASX share operates in a large and growing $11 billion market. So, ongoing investment in the business can help it tap into this long growth runway.

The post Why I think it’s time to load up on these 2 ASX shares appeared first on The Motley Fool Australia.

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More reading

• 3 ETFs for ASX investors to buy right now
• Here are 2 ASX ETFs I would buy for 2022 and beyond
• 2 excellent ETFs for ASX investors in August
• 3 quality ETFs for ASX investors in July
• Why is the Adore Beauty share price up 22% this week?

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 Activision Blizzard, Advanced Micro Devices, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited and Electronic Arts. The Motley Fool Australia has recommended Activision Blizzard, Adore Beauty Group Limited, Nvidia, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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