Category: Stock Market

Ethereum (CRYPTO: ETH) has always existed for a different reason to Bitcoin (CRYPTO: BTC). 

Ether fans would probably argue it has a more altruistic purpose.

While Bitcoin is purely used as a store of value, the Ethereum blockchain network is used to facilitate smart contracts. The technology has facilitated now-familiar concepts like non-fungible tokens (NFTs) and decentralised finance (defi).

However, Ether has always played bridesmaid to Bitcoin in the cryptocurrency rankings.

The two assets are the most recognisable names but Ether has never managed to quite overtake the market capitalisation of Bitcoin.

But this might finally happen in 2022.

“If Ethereum flips Bitcoin in terms of market capitalisation, it will change the sentiment of the crypto market,” said Saxo Market cryptocurrency analyst Mads Eberhardt.

“We are arguably approaching the year with the highest probability of it happening since Ethereum caught up with Bitcoin’s lead in 2021 with more authentic use-cases and adoption.”

Ethereum 2.0 could be a game changer in 2022

According to Eberhardt, Ethereum’s major upgrade ETH 2.0 — released this year — could really secure the future of the cryptocurrency.

“To make a long story short, ETH 2.0 will make Ethereum significantly more scalable, more secure, and more sustainable,” he said.

“The latter is extremely important, as there is likely no future in proof-of-work, which is the current consensus mechanism of Bitcoin and Ethereum.”

The trouble with the current proof-of-work reward system is that the computers that do all the work on Ethereum currently require an enormous amount of power.

And that’s not sustainable in a carbon-aware world.

“It is simply too easy to heavily regulate the industry based on solely the sustainable argument while institutions have a good reason to keep a safe distance when the industry is not green.”

ETH 2.0 is due out in the first half of this year.

“Though please be prepared that we are possibly talking Q3, or maybe Q4, since Ethereum Foundation and its developers are known to postpone deadlines.”

Rise of layer 2 currencies

Both Ethereum and Bitcoin are known as layer 1 cryptocurrencies because they possess their own settlement layer.

But neither can get through thousands of transactions per second in their own right. And that’s where layer 2 cryptocurrencies come in.

“For crypto to gain global adoption, and be the settlement layer of the digital age, L2s are indeed needed as they presumably scale cryptocurrencies [indefinitely] in the future,” said Eberhardt.

“In 2021, L2s started to gain traction, but 2022 will likely be the year where they become a solid part of the crypto market, ultimately showing that cryptocurrencies can scale.”

The post Can Ethereum overtake Bitcoin in 2022? appeared first on The Motley Fool Australia.

More reading

• How the Bitcoin (CRYPTO:BTC) price performed in 2021
• Is dollar cost averaging the way to invest in Bitcoin?
• This has to happen before investors take cryptocurrency seriously
• Should ASX investors allocate 3% to Bitcoin and Ethereum?
• Can Bitcoin (CRYPTO:BTC) steal gold’s safe haven shine to top US$100,000?

Motley Fool contributor Tony Yoo owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

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There are plenty of S&P/ASX 200 Index (ASX: XJO) shares that have growth potential.

But only some companies are rated as good buys at the moment because of the valuations.

The ASX is known for some giant businesses such as Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP).

However, these two names are a fair bit smaller but have compelling factors going for them:

Bapcor Ltd (ASX: BAP)

Bapcor describes itself as Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions.

The public may know the ASX 200 share best for its retail business Autobarn and its trade business Burson Auto Parts. However, it also has the premium retail offering Autopro, service businesses like Midas, ABS, Shock Shop and Battery Town, as well as numerous specialist wholesale businesses like truck parts, electrical parts and so on.

The Bapcor share price has taken a dive after the announcement of the accelerated departure of the managing director, and falling out with the board.

However, the company continues to plan for growth. It wants to grow its total footprint from around 1,100 locations in FY21 to more than 1,500 over the next five years. It’s also improving its online offering and rolling out “improved concepts” to differentiate against competitors.

Bapcor also plans to grown its market share of own brand products, with the aim of earning a higher margin on those sales.

The business also plans to invest in technology and become more efficient, so that it can generate higher margins.

Growth into Asia is another area of focus. It has a small but growing Burson network in Thailand and it also owns a quarter of Tye Soon, an Asian auto parts business.

At the current Bapcor share price, it is valued at 16x FY24’s estimated earnings.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway Waste Management is an ASX 200 share that specialises in waste management, industrial and environmental services. It is one of the main providers of weekly bin collections.

The business has a number of facilities and processes to transform a significant amount of that waste into “valuable commodities” for different sectors. It is a business that is part of the ‘circular economy’.

This company is rated as a buy by the broker Macquarie Group Ltd (ASX: MQG). The price target is $3.70, suggesting a potential rise of almost 20% over the next year if the broker is right.

Cleanaway recently completed the acquisition of some post-collection assets in Sydney from Suez for $501 million.

Those assets includes landfill operations with more than 15 years of forecast available airspace, as well as several transfer stations with waste processing capacity and capabilities.

The acquired facilities will enhance and complement the ASX 200 share’s existing Sydney footprint and deliver an immediate post-collections solution for the Sydney region to internalise its waste, according to Cleanaway. It will immediately add to Cleanaway’s earnings and be paid for by debt.

In the 2020 calendar year, the Sydney assets generated net revenue of around $193.1 million and normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $76.9 million.

Cleanaway management said the addition of these assets is “transformational” for the NSW business.

Using Macquarie’s numbers, the Cleanaway share price is valued at 27x FY23’s estimated earnings.

The post 2 ASX 200 shares that could be top buys for growth appeared first on The Motley Fool Australia.

More reading

• 2022 will be an awesome year for ASX shares: Here’s why
• How much the average Australian investor earned in 2021
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last 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. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Bapcor and 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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The Westpac Banking Corp (ASX: WBC) share price had an alright year in 2021.

Its stock gained a respectable 10.22%. That’s only just behind the performance of the S&P/ASX 200 Index (ASX: XJO), which rose 13%. However, all its big banking peers’ stock outperformed that of Westpac.

The share price of National Australia Bank Ltd. (ASX: NAB) led the way, gaining 27% last year.

Meanwhile, those of Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) increased 23% and 21% respectively.

That leaves Westpac with less than half the gains of its worst performing peer. What could have weighed so heavily on the bank’s stock in 2021? Let’s take a look.

Why did the Westpac share price underperform last year?

The Westpac share price performed remarkably well for much of 2021. Between the end of 2020 and 29 October 2021, the bank’s stock gained 32.5%.

Unfortunately, it figuratively fell off the cliff in November, tumbling 20% that month.

As The Motley Fool Australia reported at the time, the slump was likely spurred by the release of its full year results on 1 November.

The market was seemingly unimpressed by Westpac’s performance during financial year 2021.

That was despite the bank recording a 138% lift in statutory net profit and a 105% increase in cash earnings.

Westpac’s stock sank 7% on the day its results were released, and it continued to slide until the beginning of December.

From then, it staged a slight resurgence, gaining 4% over the final month of 2021. Though, that wasn’t enough to push the Westpac share price back into its big bank peers’ league.

Interestingly, the CBA share price followed a similar trajectory through November and December.

It fell nearly 11% in November, mostly due to the release of a quarterly update. Luckily, it outperformed the Westpac share price last month, gaining 8%.

The post Why did the Westpac (ASX:WBC) share price significantly underperform the other big banks in 2021? appeared first on The Motley Fool Australia.

More reading

• Top ASX dividend shares to buy in 2022
• Top broker names 2 ASX 200 dividend shares to buy
• Westpac’s (ASX:WBC) $400m superannuation sale could be nearing the pointy end
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?

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 Bruce Jackson.

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Share markets will continue to power ahead in 2022 and reward investors that stay in the game, rather than those who drop out.

That’s the opinion of Montgomery Investments chief investment officer Roger Montgomery, who said portfolios will need to be selective about which ASX shares to hold.

“Investing in quality, avoiding the rubbish and not jumping at the shadows that are already a part of the investment landscape are the keys to navigating markets and it will be no different in 2022.”

The S&P/ASX 200 Index (ASX: XJO) has had an exceptional run recently. It rose an attractive 13% over 2021, and more than 54% since the March 2020 COVID-19 crash.

Therefore some investors are nervous that 2022 would bring a brutal dip.

While acknowledging the risk of a 10% to 15% correction, Montgomery said such crashes can happen any year, as they were usually triggered by unexpected “Black Swan” events.

“Generally, it won’t be what we already know that brings on a correction,” he said on the Montgomery blog.

“For now, we can probably rule out a correction from inflation or the current Omicron strain of COVID-19 because there are as many adherents of these ideas as there are detractors.”

Inflation is not going to trigger a stock market correction

Current inflation fears will not spiral out of control, according to Montgomery.

“Most of the headlines warning inflation isn’t transitory cite manufacturers and retailers who state emphatically prices aren’t coming down,” he said.

“But that isn’t tantamount to accelerating inflation. It just means there will be no deflation.”

He took the example of the United States.

“If US inflation this year is 7% but next year 6.5%, the retailers and the manufacturers will be right – prices aren’t going down,” said Montgomery.

“It is also true, however, that price increases are decelerating and that’s called disinflation.”

Montgomery noted disinflation is actually “very good” for especially growth shares, if it’s accompanied by economic expansion.

“Innovative companies and those with pricing power, which tend to be those with sustainable competitive advantages, do best in a disinflationary economic expansion,” he said. 

“Read any of our documentation and you will find we have always preferred businesses with sustainable economic advantages because it is these companies that produce attractive returns on their equity.”

If disinflation arrived, it could actually supercharge 2022 to another massive year of returns for shares, noted Montgomery.

The pandemic is much more likely to whack ASX shares

For Montgomery, investors need to keep a closer eye on the coronavirus than inflation, since that’s much more likely to bring up a surprise for the market.

“Transmissibility appears to be increasing with each variant… COVID-19 may yet have a long way to evolve,” he said.

“Understandably, Main Street is worried a variant emerges, able to undermine the current crop of vaccines. Trading at near-record highs, market prices suggest such an outcome is not anticipated, so such a development could be an unmitigated disaster.”

But picking high-quality companies provides the best protection against even unexpected slumps in shares.

“Through every crisis the highest quality companies, by definition, have fallen less and then rallied first and fastest afterwards,” he said.

“I suggest the same pattern will emerge during and after the next crisis.”

Longer term, once international borders open up to supply more workers into the Australian labour pool, shares could be pushed up even further.

“I currently expect we will return to structurally lower wages growth and therefore structurally lower inflation and interest rates. All very positive for markets.”

The post 2022 will be an awesome year for ASX shares: Here’s why appeared first on The Motley Fool Australia.

More reading

• How much the average Australian investor earned in 2021
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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

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Australian investors made “a small fortune” over the course of 2021, a new survey has found.

Research conducted by comparison site Finder showed 75% of Australian stock investors boasted a positive return in the past year.

The average growth of their portfolios was a pleasing 20.4%.

To compare, the S&P/ASX 200 Index (ASX: XJO) put on 13% for the 2021 calendar year.

The Finder study showed the average Australian portfolio of $31,613 would have earned a tidy $5,356 last year.

Near-zero interest rates make ASX shares very attractive

According to Finder share trading expert Kylie Purcell, ASX shares were “a smart way” to invest with interest rates at historic near-zero levels.

“Australians have been quick to adapt by putting some of their money into shares, which can deliver higher returns,” she said.

“The 2020 market crash was a game changer for Australians, with thousands of people a day signing up to online brokers for the first time.”

Indeed, the research showed 37% of Australians now own a stock portfolio, with millennials (46%) and generation Z (42%) leading the participation.

According to Purcell, a huge lump sum isn’t a prerequisite for Australians to get started with ASX shares.

“You don’t need to be rich to get involved – there are also micro-investing apps that let you invest your spare change.”

Traps to watch for in 2022

In a country traditionally obsessed with real estate, many Australians used to have a perception that buying ASX shares is complicated.

But new online tools have recently opened up a new world for many everyday people.

Purcell did warn of hidden charges though.

“Online platforms and apps like eToro and Superhero have made it super easy for everyone to jump in. They’re intuitive to use – but watch out for brokerage and subscription fees,” she said.

“Some platforms also charge an inactivity fee if you’re not regularly trading, so it’s worth comparing your options before getting started.”

She added that while many Australians with ASX shares beat the market over the past 12 months, they need to continue exercising caution.

“It’s a good idea to ensure your investment is diversified. Instead of betting all your chips on one or two companies, spread it out to reduce your risk.”

The post How much the average Australian investor earned in 2021 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound

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

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With interest rates at such low levels, income investors may want to look at the dividend shares listed below for a source of income.

Here’s why these two ASX 200 dividend shares have been rated as buys:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share for investors to consider is Australia’s largest bank, CBA.

While weakness in its net interest margin due to intense competition for home loans has weighed on its shares recently, the team at Bell Potter believe it is worth sticking with the bank.

Its analysts like CBA due to its leadership position in home lending and retail deposits. Bell Potter also notes that its strategic strengths of scale, brand, and diversification are supported by an irreplaceable infrastructure comprising over 1,100 branches, 3,800 Australia Post agencies, and nearly 3,600 ATMs. All in all, this bodes well for its future growth when trading conditions normalise.

Bell Potter currently has a buy rating and $111.00 price target on the bank’s shares. As for dividends, the broker is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $102.65, this will mean yields of 3.8% and 4%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 dividend share that could be in the buy zone is Suncorp. It is the banking and insurance giant behind a number Australia and New Zealand’s most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

Goldman Sachs is positive on the company’s shares at the current level. The broker currently has a buy rating and $13.74 price target on them. As for dividends, Goldman is forecasting attractive dividend yields in the coming years. It has pencilled in fully franked dividends per share of 61 cents in FY 2022 and 73 cents in FY 2023.

Based on the current Suncorp share price of $11.60, this will mean yields of 5.25% and 6.3%, respectively.

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

More reading

• Top brokers name 3 ASX shares to sell next week
• Experts tip the ASX sectors that are set to outperform in 2022
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?
• Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say

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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The ResMed Inc. (ASX: RMD) share price has been a strong performer over the last 12 months.

During this time, the sleep treatment specialist’s shares have risen 20%.

This is almost twice the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the ResMed share price?

The team at Goldman Sachs has been running the rule over the ResMed share price following its appearance at the GS Healthcare CEOs Unscripted Conference 2022.

And while the broker has only retained its neutral rating on ResMed’s shares, its price target of $37.20 implies attractive potential upside of 10.5% over the next 12 months.

What did the broker say?

According to the note, ResMed sees clear scope for tailwinds from the Philips recall to persist beyond 2022. Goldman highlights that the company has run various scenarios on how and when Philips will return to market as it continues to execute on its product recall.

Goldman commented: “Whilst RMD acknowledges some risk that PHIA [Philips] may choose to complete strongly on price as/when it does return to market, it sees a far greater likelihood that any share gains recovered will be far more easily done so from the secondary/tertiary players that have also benefited from the current disruption.”

However, its analysts note that current supply chain challenges for semiconductors are restricting ResMed’s opportunity.

The broker explained: “RMD stated that the $300-350m recall tailwind guided for FY22 would be substantially higher were it not for challenges around component availability (we estimate approximately double). Management reiterated commentary from the 1Q22 result in October, stating that the availability of components and outbound distribution could contribute to incremental challenges in both 2Q and 3Q (sequentially vs. 1Q), but remains confident in conditions improving from 4Q.”

This is being compounded by elevated freight and distribution costs. Though, pricing has been strong and looks set to offset much of this.

Finally, Goldman highlights that new diagnoses are averaging 90% to 100% of pre-pandemic levels across its global business despite Omicron, its software as a service business is on track to return to growth in FY 2022, and management believes it has a big opportunity with its home-based nasal high-flow therapy.

The post Here’s what this broker thinks of the ResMed (ASX:RMD) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 buy-rated ASX growth shares
• Broker tips ResMed (ASX:RMD) share price to rise over 20%
• In the green: Here are the 5 best ASX healthcare shares of 2021
• 3 top ASX growth shares to buy in January

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 ResMed Inc. 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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Over the last couple of years, decent returns from term deposits have been harder to find than an Aussie visa at a tennis tournament. As a result, investors have been increasingly looking to ASX dividend shares as a potential source of income. Now that 2022 is upon us, we asked our Foolish contributors to compile a list of some of the ASX dividend shares experts are picking as solid investments this year. Here’s what the team came up with…

Tristan Harrison: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is the ASX share with the longest, consecutive growth in its annual dividend. The company has grown its dividend payments every year since 2000.

Sol Patts has a diversified portfolio that is predominately defensive and largely uncorrelated, giving it reliable cash flow to pay growing dividends. The company is invested in telecommunications, resources, building products, property, agriculture, financial services, and more.

Soul Pattinson regularly invests in opportunities to grow its cash flow, capital value and dividend. It is looking at themes like healthcare, the energy transition, agriculture, financial services, and education.

Based on the Sol Patts share price of $30.13 at Friday’s close, the company offers a grossed-up dividend yield of approximately 3%.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Co. Ltd.

Brooke Cooper: Accent Group Ltd (ASX: AX1)

Accent Group operates more than 600 stores and 20 online platforms, spread across 26 brands. Those who frequent Australian shopping centres will likely be familiar with its businesses, which include Skechers, Platypus, and Hype.

Accent Group ended financial year 2021 with an additional 83 stores and is on track to operate more than 700 stores this financial year.

The company’s dividends are fully franked and represent a 4.84% yield based on the Accent Group share price of $2.33 at the close of trade on Friday. Additionally, UBS has slapped the company’s shares with a $3 price target, representing possible upside of almost 30%.

Motley Fool contributor Brooke Cooper does not own shares of Accent Group Ltd.

Sebastian Bowen: Westpac Banking Corp (ASX: WBC)

Westpac is an ASX divided share that might be worth a look at as we start the new year. As one of the big four ASX 200 bank shares, Westpac has long held a reputation for being a dividend heavyweight.

Despite an unwelcome interruption to this stream of dividends in 2020 due to the COVID-19 pandemic, Westpac rebounded with a vengeance last year. Its two most recent dividend payments give this bank a trailing dividend yield of 5.43% on current pricing, the highest of the ASX banking sector. Grossed up with Westpac’s full franking, the bank currently offers a yield of more than 7.76%.

Motley Fool contributor Sebastian Bowen does not own shares of Westpac Corp.

Bernd Struben: Super Retail Group Ltd (ASX: SUL)

Super Retail Group ranks among Australia’s 10 biggest retail companies, with a market capitalisation of around $2.7 billion. The company’s four retail brands – Supercheap Auto, Rebel Sport, BCF (Boating, Camping and Fishing), and Macpac – target a broad customer base of motoring, sporting and outdoor enthusiasts.

Super Retail Group has more than 670 retail stores and 12,000 employees across its Australian, New Zealand and Chinese operations. Its online sales are also growing strongly. The company has a strong balance sheet and trades at a trailing price-to-earnings (P/E) ratio of 9.50 times.

Based on the Super Retail Group share price of $12.05 at Friday’s close, the company pays a dividend yield of around 7.3%, fully franked.

Motley Fool contributor Bernd Struben does not own shares of Super Retail Group Ltd.

Aaron Teboneras: Dicker Data Ltd (ASX: DDR)

Dicker Data is an Australian distributor of computer hardware, software, and related products. Its vendor partners include many of the world’s leading IT names.

Dicker Data services approximately 7,000 retailers which, in turn, sell to clients ranging from small and medium-sized enterprises to large corporate businesses.

In its third-quarter update, the company reported double-digit growth for both total revenue and profit before tax. Over the past 12 months, Dicker Data has delivered dividends totalling 37.5 cents. This represents a dividend yield of 2.73%, based on Friday’s closing share price of $13.69. Furthermore, the Dicker Data share price has jumped more than 30% since this time last year.

Motley Fool contributor Aaron Teboneras does not own shares of Dicker Data Ltd.

James Mickleboro: Woodside Petroleum Limited (ASX: WPL)

This energy producer has been tipped as a buy by the team at Morgans. This is partly due to its impending merger with the petroleum assets of BHP Group Ltd (ASX: BHP). Morgans believes the merger is transformative and that Woodside is getting the better end of deal.

The broker currently has an add rating and $29.95 price target on the company’s shares. It is also forecasting fully-franked dividends of $1.21 per share in FY 2022 and then $1.06 per share in FY 2023. Based on the Woodside share price of $22.70 at Friday’s close, this will mean yields of around 5.3% and 4.7%, respectively.

Motley Fool contributor James Mickleboro does not own shares of Woodside Petroleum Limited.

The post Top ASX dividend shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top broker names 2 ASX 200 dividend shares to buy
• Could ASX 200 coal shares be in for another boost?
• Is it a buy in 2022? Top brokers focus in on the Woodside (ASX:WPL) share price
• Westpac’s (ASX:WBC) $400m superannuation sale could be nearing the pointy end

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group and Westpac Banking Corporation. 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 Friday the S&P/ASX 200 Index (ASX: XJO) finished a volatile week on a positive note. The benchmark index rose 1.3% to finish the week at 7,453.3 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to start the week on a mildly positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones trade flat, the S&P 500 fall 0.4%, and the Nasdaq drop 1%.

Oil prices fall

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices finished the week in the red. According to Bloomberg, the WTI crude oil price fell 0.7% to US$78.90 a barrel and the Brent crude oil price dropped 0.3% to US$81.75 a barrel. This couldn’t stop oil prices recording strong weekly gains amid Kazakh and Libyan concerns.

Treasury Wine shares rated neutral

The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to the team at Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target on the wine giant’s shares to $11.80. While the broker was pleased with its acquisition of Frank Family Vineyards, it notes that industry data updates remain weak.

Gold price higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a positive note after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.45% to US$1,787.40 an ounce. The gold price pushed higher after weaker than expected US jobs data.

ResMed rated neutral

ResMed Inc. (ASX: RMD) shares have also been given a neutral rating and $37.20 price target this morning by Goldman Sachs. This follows the company’s appearance at one of the broker’s Healthcare Conferences. Goldman notes that management sees clear scope for tailwinds from a competitor recall to persist beyond 2022. Though, supply chain challenges continue to restrict the opportunity and elevated freight/distribution costs remain a key margin headwind.

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

More reading

• 3 buy-rated ASX growth shares
• What happened to the Northern Star (ASX:NST) share price in 2021?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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 ResMed Inc. and Treasury Wine Estates 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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Investing in the small side of the share market carries more risk than other areas. However, if your risk tolerance allows for it, having a bit of exposure to this side could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are two small cap ASX shares that could be worth watching closely. Both have been tipped to climb notably higher from current levels. They are as follows:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap ASX share to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics.

These services are in great demand from end users. As a result, at the last count, Ai-Media Technologies was delivering 7 million minutes of live and recorded media content, and online events and web streams each month. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares. This is more than double the current Ai-Media Technologies share price of 70 cents.

SILK Laser Australia Limited (ASX: SLA)

Another small cap ASX share to watch closely is SILK Laser. It is one of Australia’s largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. SILK’s five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products.

SILK has also been experiencing strong demand for its services, despite the pandemic. This has underpinned stellar sales and profit growth since its IPO. The good news is that management still sees significant room to expand its clinic over the next decade to drive further growth. Wilsons is bullish on SILK and has an overweight rating and $5.25 price target on its shares. This compares to the latest SILK share price of $4.21.

The post 2 growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares to watch in January
• 3 exciting small cap ASX shares analysts rate highly
• 3 buy-rated small cap ASX shares with major upside potential

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 SILK Laser Australia 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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