Category: Stock Market

ASX shares are well known for their collective dividend prowess. Looking at the largest companies on the S&P/ASX 200 Index (ASX: XJO), five of the top six shares by market capitalisation currently have dividend yields above 3%. BHP Group Ltd (ASX: BHP) has a yield of above 9% right now. So it goes without saying that investors in a broad-based ASX shares exchange-traded fund (ETF), say, the Vanguard Australian Shares Index ETF (ASX: VAS), would expect some heavy dividends too.

Well, said investors won’t be too disappointed. Vanguard’s VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO) rather than the ASX 200. But it is still more or less dominated by the same shares. Those dividend heavy hitters in BHP and the big four banks are at the top of the pile.

An index ETF like VAS works by holding a portfolio of shares mirroring the index the ETF is tracking. In VAS’s case, that is the ASX 300. But an ETF, as a trust structure, also has to pass on any dividends the portfolio received through to its investors relatively quickly.

The VAS ETF is about to hit the cash button

So let’s look at VAS’s dividend distributions, which include an upcoming payment.

Unlike most ASX shares, VAS pays out a quarterly dividend distribution. These occur to coincide with the quarters of the financial year. Since we are about to end the third quarter of FY2022 (on 31 March), the next payment is heading investors’ way. Let’s dig in.

So Vanguard has just released its upcoming dividend distribution schedule. It revealed that VAS investors will receive a quarterly dividend distribution of 199.8517 cents per unit on 20 April. The ex-distribution date for this payment is 1 April (no joke), so that means investors will have to own VAS units before this date if they wish to receive this payment.

Once this distribution is doled out in April, it will bring VAS’s annual dividend distribution to $4.66 per unit. On the current Vanguard Australian Shares ETF unit price of $97.42, that gives VAS a trailing yield of 4.79%.

The post Hoping to bag the next Vanguard Australian Shares Index ETF (ASX:VAS) dividend? Read this appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Boral Limited (ASX: BLD) share price closed Wednesday’s trade up 2.62%. The construction materials business may be in focus after the release of the federal budget last night.

Boral describes itself as the largest integrated construction materials company in Australia, producing and selling a broad range of construction materials including quarry products, cement, concrete, asphalt and recycled materials.

What was in the federal budget?

There were a number of measures announced to boost the economy and help people with the increased cost of living, such as a fuel excise cut.

But there was also an announcement of more spending on infrastructure projects.

The government said that it was committing an additional $17.9 billion to priority rail and road projects across Australia.

That included $3.1 billion for Melbourne Intermodal Terminals and related infrastructure, which aims to increase the efficiency and capacity of the national and Victorian freight industry.

The government also committed $3.7 billion for faster rail projects in New South Wales and Queensland.

Another budget item was $500 million for local councils to maintain and deliver priority road and community infrastructure projects.

There was a commitment of $678 million to seal 1,000km of roads on the Outback Way.

An amount of $880 million was committed for “roads of strategic importance”, $385.4 million for the Northern Australia roads program, and $150 million for the inland rail interface improvement program.

The government said it would provide another $5.4 billion to build the Hells Gates Dam, subject to the completion of the final stage of the business case. In total, it allocated $7.4 billion for 13 water infrastructure projects that aim to increase water security and build drought resilience.

In summary, many billions of dollars are being put towards infrastructure in Australia over the coming years.

What does this mean for Boral?

There was no mention of Boral in the federal budget, nor has the company issued an official update that may have impacted the Boral share price. But it does produce materials that will likely be used in these infrastructure projects.

However, in the company’s recent FY22 half-year result, it said that there was a strong pipeline of major transport projects and it is prioritising projects that complement its network.

Boral said that “the construction sector is aware of the challenges the significant infrastructure pipeline poses.”

The ASX share referred to Infrastructure Australia’s Infrastructure Market Capacity report from October 2021 which expects major infrastructure activity to double over the next three years, with New South Wales, Queensland and Victoria to account for 87% of spending. This is expected to lead to shortages in materials, skills and labour as peak demand occurs.

Boral expects delays on some projects to continue due to labour and supply chain constraints and cost inflation impacting the timeframe to execution. That’s why it is prioritising projects that don’t strain the existing network and enable it to deliver to customers.

Boral share price snapshot

After recent market movements, the Boral market capitalisation is now $3.8 billion, according to the ASX. Over the past month, Boral shares have fallen 2.5%.

The post Why did the Boral (ASX:BLD) share price have such a positive day? appeared first on The Motley Fool Australia.

More reading

• Worried about how the federal budget might impact your ASX shares? Here’s what Goldman says
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• ASX 200 (ASX:XJO) midday update: BHP and New Hope storm higher, Boral slumps
• Boral (ASX:BLD) share price hits 52-week low following guidance update
• Are Boral (ASX:BLD) shares worth buying for dividends?

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 Bruce Jackson.

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The federal budget has, understandably, been the talk of the town today, with many market watchers questioning which shares will be budget winners and which might be less fortunate. And while ASX stocks in the retail, fuel, and automotive sectors have been in focus for various reasons, one broker is flagging a win for healthcare shares.  

So, why are ASX healthcare shares Sonic Healthcare Limited (ASX: SHL), Healius Ltd (ASX: HLS), and Australian Clinical Labs Ltd (ASX: ACL) in the post-budget spotlight? Let’s take a look.

These 3 ASX healthcare shares might benefit from the budget

Broker RBC Capital Markets believes ASX healthcare shares could get a boost from extra spending on Medicare announced in the 2022/23 budget, as reported by the Australian Financial Review.

The broker is keeping an eye on ASX pathology giants on the back of a $546 million commitment to Medicare Benefits Schedule items used to conduct PCR tests.

The funding is intended to support Australia’s pandemic response. However, it surprised the broker. RBC Capital Markets was quoted as saying:

The Government has extended the Medicare schedule for COVID testing.

However, the amount budgeted for 2022-23 suggests upside to our [financial year 2023] COVID testing forecasts if the budget assumptions eventuate.

Of course, more testing is likely good news for the pathology giants. Though, it might be slightly offset by more free Rapid Antigen Tests (RATs).

The government has also committed to spend another $1.6 billion to ensure all Australians have equitable access to RATs.

The broker’s rose-coloured prediction didn’t manage to boost the ASX healthcare giants’ share prices on Wednesday.

None of the three pathology stocks significantly beat the S&P/ASX 200 Index (ASX: XJO)’s 0.67% gain.

At market close, the Sonic Healthcare share price is 0.17% higher at $35.79.

Meantime, Australian Clinical Labs ended the day in the green, gaining 0.2% to close at $5.11.

Finally, the Healius share price slightly outperformed the ASX 200 today. It rose 0.68% to finish at $4.43.

The post Why these 3 ASX healthcare shares could get a boost from the federal budget appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX 200 shares to buy according to experts
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• 5 things to watch on the ASX 200 on Wednesday

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 Australian Clinical Labs Limited and Sonic Healthcare 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 Fortescue Metals Group Ltd (ASX: FMG) share price closed higher amid the company’s shareholders receiving a gift today.

The mining company’s shares finished the day up 1.59% to $19.80 apiece. This means Fortescue shares have lifted by almost 5% in the past week.

In context, the S&P/ASX 200 Index (ASX: XJO) also closed higher on Wednesday. The benchmark index finished 0.67% ahead at 7,514.5 points.

Fortescue pays out interim dividend

Last month, Fortescue reported mixed numbers across key metrics in its results for the first half of the 2022 financial year.

In summary, total revenue fell 13% to US$8.1 billion over the prior corresponding period (H1 FY21 $9.33 billion). This was driven by a decline in the price realisation of iron ore to US$96/dmt (H1 FY21 US$114/dmt).

Management noted that despite the loss of revenue, the company achieved record shipments for the six-month period ending 31 December 2021.

However, this wasn’t enough for the miner to improve its bottom line. As such, net profit after tax (NPAT) came to $2.8 billion, down 32% on the first half of FY21.

Nonetheless, the board declared a fully franked interim dividend of 86 cents per share to be paid on 30 March (today). This represents a 41% decrease on the H1 FY21 dividend of $1.47 per share.

When calculating against the current share price, Fortescue is trailing on a forecast fully franked dividend yield of 15.01%.

In addition, the current payout ratio is calculated to be 70% of the mining outfit’s profits.

This is consistent with management’s capital allocation framework and dividend policy to pay out between 50% to 80% of full-year NPAT.

Fortescue share price summary

Despite being in the green today, the Fortescue share price is relatively flat over the past 12 months.

When looking at 2022 alone, its shares are up around 3%.

Fortescue has a price-to-earnings (P/E) ratio of 7 and commands a market capitalisation of roughly $60.9 billion.

The post The Fortescue dividend was paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

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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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If you’re looking to bolster your portfolio with some blue chip shares, you may want to look at the two listed below.

Here’s why these blue chip ASX 200 shares are highly rated right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.

Management notes that it continues to experience strong demand for its properties, which is being driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets.

In addition, the company has $12.7 billion of development work in progress, which is expected to underpin further solid growth over the coming years. Particularly given how the average value of its development work in progress now exceeds $3,700 per square metre, which reflects the prime location, cap rates, and expected growth in rents.

The team at Citi is very positive on Goodman. Its analysts believe the company could outperform its upgraded earnings guidance in FY 2022.

It said: “We now forecast c. 23% EPS growth in FY22 and c. 19% EPS CAGR from FY21-FY24. Our TP increases 5% on higher asset values and higher earnings. GMG remains our top pick in the sector.”

Citi has a buy rating and $29.50 price target on Goodman’s shares.

Healius Ltd (ASX: HLS)

Another blue chip ASX 200 share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers offering services via a number of brands. These include Dorevitch Pathology, QML Pathology, Laverty Pathology, and Healthcare Imaging Services.

Healius has been growing at a rapid rate over the last couple of financial years thanks to huge demand for COVID testing. And while testing volumes will inevitably decline now, the team at Morgans remain positive on the company and expects its base business to rebound as COVID headwinds ease.

It commented: “We continue to believe HLS is attractively valued and well placed, benefiting from the likely continuance of COVID PCR testing (at some level) and from the inevitable rebound in demand from a backlog in diagnosis and surgery.”

Morgans has an add rating and $5.26 price target on Healius’ shares.

The post 2 blue chip ASX 200 shares to buy according to experts 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. 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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While the S&P/ASX 200 Index (ASX: XJO) is surging ahead, the South32 Ltd (ASX: S32) share price is backtracking today.

The company’s shares are in decline following a company update regarding the acquisition of additional shareholding in Mozal Aluminium.

At the time of writing, the mining outfit’s shares are down 3.68% to $4.97.

South32 reports of delay on completed transaction

Investors are offloading South32 shares as the company provided a disappointing notice to the ASX this morning.

According to its release, South32 advised that there has been a delay to the expected closing date of the acquisition of an additional shareholding and related rights in Mozal Aluminium from MCA Metals Holding GmbH (Mitsubishi).

Last September, South32 exercised its pre-emptive rights to acquire up to an additional 25% shareholding in Mozal Aluminium, an aluminium smelter located near Maputo in Mozambique.

The US$250 million purchase price to acquire the interest would give South32 a 72.1% stake in the smelter.

Increasing its shareholding would essentially lift the company’s annualised equity share of aluminium production by 15% to 1,138kt.

Previously, South32 had anticipated that the takeover would be finalised sometime in the current March quarter.

However, South32 noted that should the remaining conditions, including approval from the competition regulatory authority in Mozambique be satisfied, the acquisition is now expected to complete mid-2022.

About Mozal Aluminium

The operation is currently jointly owned by South32 (47.1%), Mitsubishi (25%), the IDC (24%) and the Government of the Republic of Mozambique (3.9% through preference shares).

Production guidance for the smelter is 273kt (47.1% basis) in FY22 and FY23.

Energy efficiency technology is currently being rolled out in the smelter’s pot relining program. This is expected to deliver around a 5% increase, or 10ktpa to 277ktpa in annual production by FY24.

South32 share price snapshot

Regardless of today’s decline, it has been a strong 12 months for South32 shares, climbing more than 77%.

In 2022 alone, its share price is up almost 24%, reflecting positive investor sentiment in the company.

South has a price-to-earnings (P/E) ratio of 20.95 and commands a market capitalisation of roughly $23 billion.

The post Why is the South32 (ASX:S32) share price sinking 4% today? appeared first on The Motley Fool Australia.

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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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If you’re interested in exchange traded funds (ETFs), then you may want to check out the two ETFs that are listed below.

Both offer investors exposure to areas of the tech sector that are booming right now. Here’s what you need to know about these exciting ETFs:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF for investors to look at is the BetaShares Crypto Innovators ETF. As its name implies, this ETF gives investors exposure to the booming cryptocurrency industry. However, instead of being focused on coins, this ETF covers the companies that are heavily involved in the industry.

BetaShares notes that the high risk Crypto Innovators ETF provides investors with a convenient, cost-effective way to gain exposure to the leaders of the rapidly emerging crypto economy. These are companies that provide mining equipment, trading platforms, and even the mining of bitcoin and other cryptocurrencies.

Among the shares you’ll be owning a slice of are crypto mining hardware manufacturer Canaan, crypto trading platform Coinbase, crypto bank Silvergate, and crypto mining company Riot Blockchain.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF for investors to look at is the BetaShares Global Cybersecurity ETF. It gives investors exposure to the cybersecurity sector, which has been benefiting greatly from the shift of infrastructure to the cloud and the rising threat of cyberattacks.

And with online threats only getting greater, demand for cybersecurity services looks set to continue increasing for years to come. This will be good news for the shares included in the BetaShares Global Cybersecurity ETF, which includes the leaders in the global cybersecurity sector.

Among the shares in the fund that you will be buying a slice of are cybersecurity giants such as Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

The post Crypto and cybersecurity: 2 exciting ETFs for ASX investors 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 BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. 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 Xero Limited (ASX: XRO) share price is having a very strong day on Wednesday.

In afternoon trade, the cloud accounting platform provider’s shares are up 6% to $108.20.

This means the Xero share price is now up 9% over the last two trading sessions.

Why is the Xero share price racing higher?

The Xero share price is rising today amid a rebound in the tech sector and a bullish broker note out of Jefferies.

In respect to the former, at the time of writing, the S&P ASX All Technology index is up a sizeable 3.1% following a solid night on Wall Street’s tech-focused Nasdaq index.

As for the latter, this morning Jefferies retained its buy rating and $139.09 price target on the company’s shares. This implies potential upside of almost 29% for investors over the next 12 months.

What did the broker say?

Jefferies doesn’t believe the current Xero share price factors in the company’s strong growth potential in the massive US market. This follows industry feedback which is pointing to increasing popularity from accountants and small to medium sized businesses.

Overall, the broker is fan of Xero’s North American strategy and highlights its market opportunity of 33 million small to medium sized businesses. This compares to its current global subscriber base of 3 million.

The post The Xero share price is up 9% in just two days 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 Xero. The Motley Fool Australia owns and has recommended Xero. 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 S&P/ASX 200 Index (ASX: XJO) is enjoying yet another day in the green so far this Wednesday. At the time of writing, the ASX 200 is up by a robust 0.6% at just over 7,500 points. We’re now not far from the ASX 200’s all-time high, an unthinkable position just a few weeks ago.

But let’s dive deeper into today’s gains and have a look at the shares at the top of the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium share Pilbara Minerals is the first company worth checking out today. This lithium producer has had a notable 15.01 million shares change hands as it currently stands. This isn’t related to any news or official developments out of the company (of which there aren’t any today). 

However, the Pilbara share price has made a sizeable move today thus far. Pilbara shares are currently down by a nasty 1.85% at $3.19 each. Since the company initially spiked to $3.31 a share at market open this morning, we can probably blame share price volatility for this high trading volume we are seeing. 

AVZ Minerals Ltd (ASX: AVZ)

Another ASX 200 lithium hopeful is up next in AVZ Minerals. This company has, so far today, seen a hefty 18.87 million of its shares bought and sold on the markets. Again, there are no company-specific news or announcements that might easily explain this move. 

Thus, it is likely that a share price movement is also the culprit for this elevated trading volume here. After an incredible run of gains over the past week (putting AVZ shares more than 20% higher), and several new all-time highs, the AVZ share price is taking a cool off today. The company is currently down by 1.21% at $1.22 a share. 

Whitehaven Coal Ltd (ASX: WHC)

Another resources share rounds out our list today, but this time it’s coal miner Whitehaven. A staggering 19.46 million Whitehaven shares have found a new home at the time of writing. 

This looks like the result of the sizeable selloff we’ve seen with Whitehaven so far today. The company is currently down by 3.3% at $4.11 a share. It’s this decisive move downwards that investors can likely pin the blame for the high volume. 

The post These 3 ASX 200 shares are topping the volume charts on Wednesday appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Air New Zealand Ltd (ASX: AIZ) share price is on ice today pending an announcement.

The company’s shares dropped 0.78% on the ASX before grinding to a halt at $1.28.

Let’s take a look at what is happening at Air New Zealand.

Possible capital raise?

Air New Zealand is in a trading halt at the request of the airline pending “a material announcement in relation to the company’s recapitalisation plans”.

Speculation emerged in The Australian earlier today the airline is about to launch a NZ$1.2 (A$1.11 billion) capital raise. The company’s hares are expected to be sold at a 35% discount.

The Air New Zealand share price has been under pressure amid COVID-19 border closures and rising fuel costs. In the company’s half-year results released in February, Air New Zealand reported a statutory loss before tax of $376 million, with dividends remaining suspended.

In these results, the airline informed shareholders it plans to launch a capital raise before the end of March this year, “subject to market conditions”.

The trading halt is expected to remain in place until market open on Thursday. Commenting on the freeze, Air New Zealand said:

Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Thursday, 31 March 2022 or when the announcement is released to the market.

Air New Zealand chair Dame Therese Walsh and CEO Greg Foran are due to hold a media conference in Auckland at 6.30 pm local time, 1news reported. This will be after the ASX closes.

The equity raise comes ahead of New Zealand’s border opening to international tourists. The New Zealand border will be reopening to Australians from 13 April. Fully-vaccinated travellers from 60 further countries will be able to travel to the island nation from 2 May.

Share price snapshot

The Air New Zealand share price has descended 16% in the past year, while it has lost nearly 10% year to date.

For perspective, the benchmark ASX 200 has returned nearly 12% over the past year.

In the past week, Air New Zealand shares have slumped more than 3%, and 9% in a month.

Air New Zealand has a market capitalisation of about $1.44 billion based on the current share price.

The post Air New Zealand (ASX:AIZ) share price drops then stops amid NZ$1.2 cap raise rumblings appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
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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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