Category: Stock Market

The Fortescue Metals Group Limited (ASX: FMG) dividend has been a talking point over the years, rewarding shareholders with big payouts.

This comes as the mining giant has enjoyed bumper profits, particularly from the surging iron ore spot price.

Nonetheless, we take a look to see how the Fortescue dividend stacks up against its peers.

How does the Fortescue dividend compare to its sector?

As a broad comparison, the Fortescue dividend is on par with BHP Group Ltd (ASX: BHP), but less favourable than Rio Tinto Limited (ASX: RIO).

As an example, Goldman Sachs is predicting Fortescue to pay fully-franked dividends per share of US$1.16 in FY22 and US 74 cents in FY23.

Based on the current Fortescue share price of $21.73, this implies a dividend yield of 7% and 5%, respectively.

Next up, BHP is forecast to pay dividends of US$2.56 in FY22 and US$2.33 in FY23.

This reflects a dividend yield of 7.5% and 6.9% respectively.

While both miners are predicted to pay similar yields, it is Rio Tinto that offers the most bang for buck.

As such, Rio Tinto is assumed to pay big fully-franked dividends, outmatching the major miners.

Goldman Sachs has projected Rio Tinto to pay dividends of US$9.30 in FY22 and US$8.90 in FY23.

Again, based on the closing Rio Tinto share price, this equates to dividends yields of 11% and 10% respectively.

Are Fortescue shares a buy?

A recent broker note from RBC Capital Markets raised its rating on Fortescue shares by 6.7% to $16.00.

On the other hand, Citi had a different tone, slashing its outlook by 5.9% also to $16.00.

Based on both brokers, this implies a potential downside of around 26%.

Most notably, Goldman Sachs retained its sell rating on Fortescue shares last week. The broker indicated that the company’s share price is trading at a significant premium compared to its peers.

However, one near term tailwind is an improvement in Fortescue’s low-grade price realisations for iron ore.

In summary, Goldman Sachs put a 12-month price target on Fortescue shares at $15.20. This implies a downside of roughly 30% on the miner’s most recent share price.

Fortescue commands a market capitalisation of roughly $66.91 billion, making it the eighth largest company on the ASX.

The post How does the Fortescue dividend compare to its sector? appeared first on The Motley Fool Australia.

More reading

• These 2 blue-chip ASX shares are opportunities: Expert
• Can the Rio Tinto share price break its all-time high in 2022?
• What’s boosting the BHP share price today?
• 2 ASX 200 dividend giants named as buys by brokers
• 2 ASX dividend shares expected to pay HUGE yields in 2022

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Investing in a monopoly is, perhaps, one of the oldest plays in the book, and this S&P/ASX 200 Index (ASX: XJO) share could be just that.

Monopolies, by definition, dominate their sectors, facing low or no competition to provide a product needed – rather than wanted – by their customers.

With that in mind, could ASX 200 share, Transurban Group (ASX: TCL) be one of the ASX’s major monopolies?

At the time of writing, the Transurban share price is $13.75.

Could this ASX 200 share be a monopoly play?

Considering investing in ASX 200 giant, Transurban? Experts believe the toll road operator has plenty of reoccurring revenue and the ability to boost its fees alongside inflation.

Transurban operates toll roads in Melbourne, Sydney, Brisbane, and North America.

According to reporting by GEM Capital financial advisor, Mark Draper, published by the Australian Financial Review, investments in toll roads come with a side of certainty.

The job of a toll road operator is to build and maintain roads that convenience the public. They make their money by collecting fees from those who travel on their roads.

They generally have the right to collect tolls on their roads for a specified number of years. When that period ends, a toll road reverts to public infrastructure.

Investors Mutual portfolio manager Dan Moore was quoted by Draper as saying toll road operators’ income is generally protected from inflation, as their fees can be increased alongside the metric.

Additionally, according to Atlas Funds Management chief investment officer, Hugh Dive, the risk of competing toll roads being built nearby existing assets is low.

On top of that, once a road is built, maintaining it is relatively cheap. The assets can bring in margins of up to 80%, said Dive.

And governments tend to support the sector, even helping to collect unpaid fees.

Though, no investment ­­– not even in ASX 200 shares – is without risks.

Moore noted that recessions and resulting high employment could dampen toll road operators’ income.  

Additionally toll roads are, in a way, leased from governments. That m means there’s a risk that governments fail to stay true to their agreements. Perhaps, not allowing fees to rise in line with inflation – or expropriation – whereby fees are taken from the operator.

Transurban share price snapshot

2022 so far has been tough on the Transurban share price.

It has slipped 1.36% year to date. It’s also 0.87% lower than it was this time last year.

The post Could this ASX 200 share be one of the best monopoly plays there is? appeared first on The Motley Fool Australia.

More reading

• Why is the Transurban share price revving up on Thursday?
• Why did the Transurban share price have such a good run in March?
• Broker names 3 more of best ASX 200 shares to buy in April
• 5 things to watch on the ASX 200 on Wednesday
• 2022 is not being kind to the Transurban (ASX:TCL) share price. Could this be set to change?

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 Bruce Jackson.

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The fund manager Wilson Asset Management (WAM) has recently identified some ASX blue-chip shares that it owns (or owned) in one of its leading portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) that looks at the larger businesses on the ASX, which investors can call ASX blue-chip shares.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (before fees, expenses, and taxes) of 16.1% per annum since its inception in May 2016. That is superior to the S&P/ASX 200 Accumulation Index average return of 10.1%.

These are the blue-chip ASX shares that WAM outlines in its recent monthly update.

BHP Group Ltd (ASX: BHP)

WAM pointed out that BHP benefitted from the widespread volatility in commodity prices in March 2022. The fund manager believes that the higher prices will help earnings momentum going into FY23.

According to Wilson Asset Management, another factor helping BHP is the rising iron ore price despite increasing COVID-19 cases in China. WAM noted that the Chinese government promises to stimulate the economy.

WAM said signals by the government have become “louder” in recent weeks as it implements more lockdowns across the country. The fund manager thinks China will likely need to stimulate the economy in the second half of 2022 to achieve its annual GDP growth target, which could benefit the ASX blue-chip share.

Wilson Asset Management believes there is further upside for the BHP share price because of the strategic locations of the ASX mining share’s assets “deserving higher valuations” due to geopolitical tensions and concerns about the security of supply globally.

Wilson points out another bonus for BHP is that proceeds from the petroleum demerger will mean shareholders can expect a “significant” capital return over the next six months. WAM estimates this to be more than $40 billion.

Ramsay Health Care Limited (ASX: RHC)

WAM revealed that it had recently increased its position in Ramsay Health Care because of its earnings growth potential over the coming years.

There is a growing backlog of private and public hospital admissions after multiple suspensions of elective surgeries globally due to COVID lockdowns. According to WAM, this has led to an extended pipeline of elevated demand.

The fund manager said that between New South Wales, Victoria, Queensland and Western Australia, there are more than 260,000 people on public waiting lists for surgery.

There are a few things that WAM finds appealing about the private hospital operator. There are the “structural industry tailwinds” – that is, there are ageing populations in the countries where Ramsay operates. The ASX blue-chip share has $9 billion of land backing. WAM also points to a “favourable valuation” in an expensive sector.

The fund manager also points out that Ramsay’s Asia-based joint venture with Sime Darby received an indicative non-binding proposal from IHH Healthcare to buy the business for approximately $1.8 billion on a cash and debt-free basis. WAM thinks the proceeds would be put into debt reduction if that transaction goes ahead because of the recent acquisition of Elysium Healthcare.

The post These 2 blue-chip ASX shares are opportunities: Expert appeared first on The Motley Fool Australia.

More reading

• How does the Fortescue dividend compare to its sector?
• Ramsay Health Care share price on watch amid $14.8bn takeover offer
• 5 things to watch on the ASX 200 on Wednesday
• What’s boosting the BHP share price today?
• 2 ASX 200 dividend giants named as buys by brokers

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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Betashares Global Cybersecurity ETF (ASX: HACK) is one of the well-liked exchange-traded funds (ETFs) on the ASX.

According to BetaShares, this ETF is around $770 million in size.

Part of its popularity has come from the returns the ETF has produced. Since its inception in August 2016, the HACK ETF has produced an average return per annum of 20.6%. Though, past performance is not a reliable indicator of future performance.

Expert rates the HACK ETF as a buy

Talking on a ‘buy hold sell’ Livewire video, Felicity Thomas from Shaw and Partners was asked to name an ETF that every investor should have in their portfolio. Her pick was Betashares Global Cybersecurity ETF. Here is the reasoning:

The reason I’ve chosen this is because cybercrime is meant to cost the world $10.5 trillion by 2025, which is huge. It also has amazing names in it like CrowdStrike. In a connected world where everyone is attached to their devices, it’s becoming the biggest problem that we’re all facing.

Betashares Global Cybersecurity ETF holdings

Thomas noted that there are some “amazing” names in the portfolio.

The fund holds around 40 positions in all. Crowdstrike is the heaviest of the portfolio with a 6.7% weighting.

But there are plenty of other businesses involved in the cybersecurity world including: Palo Alto Networks, Zscaler, Cisco Systems, Cloudflare, Splunk, Akamai Technologies, Booz Allen Hamilton, Mandiant, Leidos, Juniper Networks, Check Point Software, F5 Networks, Verisign, Cyberark Software, Fortinet, and more.

What is helping the earnings of the cybersecurity sector?

BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

According to Statista, global cybersecurity revenue is projected to increase from US$137.63 billion in 2017 to US$248.26 billion in 2023.

Australian cybercrime presents just a microcosm of this growing problem. COVID-19 has led to more Australians relying on the internet to work remotely, to access services and information, and to communicate. The Australian Cyber Security Centre (ACSC) says this environment has generated more opportunities for malicious cyber actors to exploit vulnerable targets in Australia.

The ACSC says in FY21, it received over 67,500 cybercrime reports. That’s an increase of nearly 13% from the previous financial year. In its annual report, the ACSC said:

A higher proportion of cyber security incidents this financial year was categorised by the ACSC as ‘substantial’ in impact. This change is due in part to an increased reporting of attacks by cybercriminals on larger organisations and the observed impact of these attacks on the victims, including several cases of data theft and/or services rendered offline.

The increasing frequency of cybercriminal activity is compounded by the increased complexity and sophistication of their operations. The accessibility of cybercrime services – such as ransomware-as-a-service (RaaS) – via the dark web increasingly opens the market to a growing number of malicious actors without significant technical expertise and without significant financial investment.

Ransom demands by cybercriminals ranged from thousands to millions of dollars and the use of dark web tools and services improved their capabilities, according to the ACSC.

Fund details

Some readers may want to know about the geographic allocation of the businesses.

The US has an 84% allocation, with Israel (3.4%), India (3%), and South Korea (2.5%) being the next three according to weightings.

While most of the ETF is invested in American businesses, it doesn’t mean that’s where most of the earnings are generated. Many of the holdings generate revenue from numerous countries.

The Betashares Global Cybersecurity ETF has an annual management fee of 0.67%.

The post What the heck is so good about Cybersecurity ASX ETF, HACK? appeared first on The Motley Fool Australia.

More reading

• Here are 2 excellent ASX tech ETFs to buy
• 3 exciting ETFs for ASX investors to buy today
• Are these 2 leading ETFs good buys in April 2022?
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• Crypto and cybersecurity: 2 exciting ETFs for ASX investors

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd. (ASX: NAB) share price rocketed to a multi-year high of $33.29 yesterday.

This is a stark contrast to when its shares were trading at a multi-decade low in March 2020. The steep fall was brought on by the COVID-19 pandemic which investors feared a deep recession.

Nonetheless, NAB shares have zoomed upwards since, creating wealth for investors who bought and held on during the tumultuous period.

Below, we calculate how much you would have made if you’d bought $5,000 worth of NAB shares since the COVID-19 crash.

How much would you have if you’d invested $5,000 since the COVID-19 crash?

If you’d invested $5,000 into NAB shares on 23 March, you would have picked them up for approximately $13.195 apiece. This equates to about 378 shares without topping up along the way.

Looking at yesterday’s closing price, the NAB share price finished at $33.25. This means that those 378 shares would now be worth $12,568.50.

Not a bad effort — almost doubling your initial investment in what is arguably one of ASX’s most safe and reliable companies. 

When looking at percentage terms, this implies an average yearly return of a whopping 55.96%.

In comparison, investing the same amount in an ASX 200 index-tracking fund would have netted you $8,320.72.

What about the dividends?

Over the course of the last two years, NAB has made a total of 4 dividend payments from July 2020 to December 2021.

Adding up those 4 dividends payments gives us an amount of $1.87 per share. Calculating the number of shares owned by the total dividend payment gives us a figure of $706.86.

When putting both the initial investment gains and dividend distribution, an investor would have $13,275.36 worth of NAB shares.

NAB share price summary

Over the past 12 months, NAB shares have surged by 25% higher following positive investor sentiment in the banking industry. With the Reserve Bank of Australia looking to hike interest rates, this could lead to a stronger profit for NAB.

NAB has a price-to-earnings (P/E) ratio of 17.95 and commands a market capitalisation of roughly $107 billion.

The post If you’d invested $5,000 in NAB shares just after the COVID crash, here’s what you’d have now appeared first on The Motley Fool Australia.

More reading

• Should investors buy the NAB share price at its 52-week highs?
• NAB share price lifts again to hit new 4-year high
• Do CBA shares offer the highest big bank dividend yield?
• Why are ASX 200 bank shares having such a stellar start to the week?
• 3 ASX 200 shares starting the week with new 52-week highs

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The Ramsay Health Care Limited (ASX: RHC) share price could shoot higher on Wednesday morning.

This follows news that the private hospital operator has received a takeover approach.

Ramsay share price on watch amid takeover approach

The Ramsay Health Care share price will be on watch today after the company confirmed speculation that it has received a takeover approach.

According to the release, Ramsay Health Care has received a conditional, non-binding, indicative proposal from a consortium of investors led by KKR to acquire 100% of the company by way of a scheme of arrangement.

Under the indicative proposal, Ramsay Health Care shareholders would be entitled to receive $88.00 cash per share, less any ordinary or special dividends paid to shareholders. This includes the recently paid ordinary dividend of 48.5 cents per share.

The offer of $88.00 per share represents a premium of 36.7% to the latest Ramsay Health Care share price of $64.39.

In addition, the release explains that shareholders would have the option to receive part of the consideration in unlisted scrip in the consortium holding entity.

Finally, if the scheme of arrangement were implemented, Ramsay Health Care would be permitted to pay a fully franked special dividend to distribute all available franking credits to shareholders. As of 31 December, but prior to its most recent dividend, Ramsay’s franking account balance was $823 million.

What now?

The release reveals that having reviewed the proposal, the Ramsay Board of Directors has determined it appropriate to provide the KKR Consortium with due diligence on a non-exclusive basis. This is to explore whether it can put forward a binding proposal that is in the best interests of shareholders.

However, Ramsay Health Care notes that the indicative proposal is subject to a number of conditions.

These include the completion of satisfactory due diligence, no disposal of any of Ramsay’s subsidiaries or properties, final approval of the Consortium’s investment committee, entry into a scheme implementation deed on customary terms and conditions, regulatory approvals, and shareholder approval.

Furthermore, the release highlights that the KKR wanted the indicative proposal to be confidential and reserved the right to withdraw it in the event it ceased to be confidential. As this has now occurred, it is able to back out without consequence.

The Ramsay Health Care Board will continue to keep the market informed in accordance with its continuous disclosure obligations.

The post Ramsay Health Care share price on watch amid $14.8bn takeover offer appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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• 5 things to watch on the ASX 200 on Thursday
• Ramsay (ASX:RHC) share price pushes higher on US$1.35bn proposal for Asian JV

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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The team at Goldman Sachs has been busy looking through the tech sector for new shares to recommend.

Two that it has found worthy of the coveted “buy rating” are listed below.

Goldman notes that these companies have nascent but growing offshore businesses, which it believes present substantial potential long-term upside if they can succeed in executing their respective domestic playbooks to achieve dominance in new markets.

Readytech Holdings Ltd (ASX: RDY)

Goldman is very positive on this provider of mission-critical software-as-a-service to the education, workforce management, government, and justice sectors. Its analysts have initiated coverage on its shares with a buy rating and $5.00 price target.

The broker explained that its bullish view is predicated on:

“The market has given RDY little credit for its improving organic growth rate since listing (~10% in 2H20 to ~17% 1H22) while the company has maintained solid margins. We think RDY will continue to grow organically at a mid-teens growth rate, with upside from assumed continuation of bolt-on M&A. RDY’s software metrics and unit profitability are strong (low churn ~3%, high LTV/CAC), suggesting scope for RDY to improve margins towards scaled peers over time (~22% FY22E on a fully-expensed basis vs ~32% peers).

In addition, Goldman highlights that the Readytech share price trades at a huge discount to its peers despite its organic growth. It explained:

RDY trades at a deeply discounted valuation vs peers (we estimate a >50% discount on a FY23E EV/EBITDA growth-adjusted basis) which we think can narrow on continued demonstration of its organic growth credentials. We see possible long-term upside from continued growth in the UK, and possible expansion into the US and Canada (we think most likely led by its Student Management and Work Pathways software).”

TechnologyOne Ltd (ASX: TNE)

Another tech share that Goldman Sachs is bullish on is enterprise software company TechnologyOne. The broker has initiated coverage on its shares with a buy rating and $13.90 price target. It commented:

“In our view, TNE is well-placed to meet its A$500mn FY26 ARR [annualised recurring revenue] target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).”

As well as achieving its ARR targets, the broker expects TechnologyOne’s margins to increase beyond historical levels.

“In addition, we think TNE can deliver on its ARR target while expanding profit margins, delivering profit-before-tax growth at the upper end or above its 10-15% historical range. We sit 1-6% above FY22-24 Visible Alpha (VA) consensus EPS and highlight that TNE is trading at a similar multiple to the peak of the last Fed hiking cycle (22x NTM EV/EBITDA vs 20x Oct-18) despite a significantly improved NTM growth outlook (17% now vs 9% Oct-18) and recurring revenue base (SaaS ARR >80% total ARR today vs <50% Oct-18).

Finally, Goldman sees a lot of potential for TechnologyOne in the UK market, which it estimates to be at least three times larger than the ANZ market. It said:

Long-term upside can come from TNE’s growing UK business, which after a slow start appears to have taken a positive turn recently – important for TNE’s long-term growth runway and a possible source of meaningful upside to our medium-term estimates in a >3x larger TAM vs ANZ.”

The post Goldman Sachs has just slapped buy ratings on these ASX tech shares appeared first on The Motley Fool Australia.

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

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If you think back to 2019, life was much simpler.

It was only three years ago, but no one outside of the medical profession had heard of the abbreviation COVID and inflation was non-existent. 

And if you look over investment articles such as this published back in 2019, there are some names often repeated.

But many of those former darlings have since endured a brutal period after the pandemic arrived, and have not really recovered since.

One expert, though, reckons it’s time to revisit two of those fallen stars:

Forget China, there is growth elsewhere

Investors in Kiwi company A2 Milk Company Ltd (ASX: A2M) have long been waiting for a turnaround.

After gaining a stunning 3,400% in the first five years after its 2015 listing, the shares have lost a sorry 77% since July 2020.

“This infant formula company has been facing supply chain issues and margin pressure from increasing competition, resulting in a major valuation decline in recent years,” Catapult Wealth financial adviser Tim Haselum told The Bull.

But he reckons it’s now time to buy the dairy producer.

“Even without strong growth in China, A2 Milk is expanding in New Zealand and the US,” said Haselum.

“Also, new markets in Malaysia, Singapore and Vietnam could lead to a recovery in 2023 and beyond.”

It could also have some unexpected tricks up its sleeve.

“With a strong net cash position, A2 Milk has plenty of firepower for mergers and acquisitions.”

The wider finance community is torn on the stock. According to CMC Markets, four of 15 analysts rate it as a buy while three are advising clients to sell, with the rest neutral.

50% profit growth? Yes, please

Technology shares have suffered both in Australia and the US, and Pro Medicus Limited (ASX: PME) is no exception.

The share price for the medical software maker has dipped more than 23% for the year so far.

Despite this, the price-to-earnings (P/E) ratio remains at an astronomical 133, according to Google Finance.

This would not stop Haselum from buying it right now.

“This medical imaging software provider is aggressively expanding overseas, particularly in the US, which accounts for about 70% of revenue.”

He especially loved the latest results, which were up significantly from the previous year.

“The company announced a first-half 2022 net profit of $20.68 million, up 52.7% on the prior corresponding period,” said Haselum.

“Given new contract wins and renewals, we believe Pro Medicus can justify its relatively high price/earnings ratio.”

The analyst community has more conviction on Pro Medicus compared to A2 Milk. Six out of eight analysts surveyed by CMC Markets currently rate the tech company as a “strong buy”.

The post It’s time to buy these 2 fallen ASX shares again: expert appeared first on The Motley Fool Australia.

More reading

• Is there still hope for the A2 Milk share price in 2022?
• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• Why is the A2 Milk share price outperforming today?
• 3 ASX 200 shares sliding to 52-week lows on Tuesday

Motley Fool contributor Tony Yoo owns A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. 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 Bruce Jackson.

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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 a property company focused on building a portfolio of high quality industrial assets that deliver income and capital growth to investors.

Centuria Industrial has been performing very positively in recent years and has continued this trend in FY 2022. It recently revealed robust nationwide demand for industrial space, particularly from ecommerce-related tenant customers, which has underpinned strong rental growth year to date in FY 2022.

Macquarie expects this to underpin an 17.3 cents per share dividend in FY 2022 and then 17.8 cents per share in FY 2023. Based on the current Centuria Industrial REIT share price of $3.91, this will mean yields of 4.4% and 4.55%, respectively.

The broker has an outperform rating and $4.27 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

Another ASX dividend share for investors to consider is retail giant, Coles.

It is one of the big two supermarket chains with over 800 supermarkets across the country. This strong network, its defensive qualities, and rational competition has analysts forecasting growing dividends in the coming years. Especially in the current inflationary environment.

For example, analysts at Morgans are forecasting fully franked dividends of 61 cents per share in FY 2022 and then 63 cents per share in FY 2023. Based on the current Coles share price of $18.34, this will mean yields of 3.3% and 3.4% respectively.

Morgans has a buy rating and $19.70 price target on its shares.

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

More reading

• 2 strong ASX 200 dividend shares analysts love
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• Analysts name 2 ASX 200 dividend shares to buy now
• 2 high-yielding ASX 200 dividend shares rated as buys by brokers
• Top ASX dividend shares to buy in April 2022

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 owns and has recommended COLESGROUP DEF SET. 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 Bruce Jackson.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.55% to 7,565.2 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to storm higher

The Australian share market looks set to have a great day on Wednesday following a strong night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% higher this morning. On Wall Street, the Dow Jones rose 1.3%, the S&P 500 climbed 1.5%, and the Nasdaq stormed 2.05%.

Oil prices sink

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices sank. According to Bloomberg, the WTI crude oil price is down 5.2% to US$102.52 a barrel and the Brent crude oil price has fallen 5.1% to US$107.40 a barrel. Traders were selling oil after the IMF slashed its global growth forecast.

Ramsay Health Care $20 billion takeover speculation

The Ramsay Health Care Limited (ASX: RHC) share price could be one to watch today amid rumours the private hospital operator has received a takeover approach. Goldman Sachs notes that “RHC has received an indicative, non-binding offer from KKR, valuing the company at >$20bn.” This compares to its $12 billion market cap and $15 billion enterprise value.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.9% to US$1,948.8 an ounce. A strengthening US dollar weighed heavily on the precious metal.

Life360 remains a buy

The Life360 Inc (ASX: 360) share price could almost double according to analysts at Bell Potter. This morning the broker retained its buy rating and $10.00 price target on the location technology company’s shares. Ahead of its first quarter update, the broker said: “We expect another quarter of at least 50% y-o-y growth in AMR despite Q1 traditionally not being a strong quarter.”

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

More reading

• Here are the top 10 ASX shares today
• What’s boosting the Northern Star share price on Tuesday?
• ASX 200 midday update: AMP asset sale talks, Syrah rockets
• What sort of dividend yield do Santos shares currently trade on?
• Keen to bag the Washington H Soul Pattinson dividend? Read this

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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