Category: Stock Market

If you’d like to make some investments but aren’t sure which shares to buy, you could look at exchange traded funds (ETFs) instead.

But which ETFs could be buys? Two that are very popular for a reason are listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF gives investors exposure to the leading companies in the cybersecurity sector.

This is an area of the share market which has been tipped to grow strongly over the long term thanks to the increasing importance of cybersecurity now that more and more infrastructure and services are in the cloud.

Among the companies you’ll be owning a slice of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

In respect to CrowdStrike, it is a provider of incident response and forensic analysis services via its Falcon platform. This platform allows businesses to understand whether a breach has occurred and to respond and recover with speed and precision to remediate the threat.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Vectors Morningstar Wide Moat ETF is another one for investors to consider in 2022. Especially if they are a fan of the legendary Warren Buffett and his investment style.

That’s because this ETF aims to invest in a group of companies that are deemed to be fairly valued and have sustainable competitive advantages or moats. The latter is something that Mr Buffett looks for when he makes his investments. And given his track record, it is hard to argue against doing this.

At present there are a total of 46 shares included in the fund. This includes companies from a range of sectors such as Amazon, Campbell Soup, Constellation Brands, Lockheed Martin, Walt Disney, and Wells Fargo.

The post Here are 2 fantastic ETFs for ASX investors in 2022 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. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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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Could the Westpac Banking Corp (ASX: WBC) share price be worth a buy for the expected dividend income over the next couple of years?

Westpac is one of the largest banks on the ASX along with Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Macquarie Group Ltd (ASX: MQG).

The Westpac share price has recovered strongly since the bottom of the COVID-19 crash. However, at the time of writing, the Westpac share price gain of 11% over the last year is less than the return of the S&P/ASX 200 Index (ASX: XJO) which has gone up 14%.

However, plenty of investors aren’t looking at the big four banks just for the share price movement. The dividend also can be an important factor.

What dividend might be paid in FY22?

During the last financial year, the board of the big four bank decided to pay a dividend of $1.18 per share. At the current Westpac share price, that translates to a grossed-up dividend yield of 7.8%.

It also released more capital to shareholders in the form of an off-market share buy-back of up to $3.5 billion. In making that decision, the board looked at the improved economic outlook, higher earnings and progress on its strategic priorities, particularly the completion of a number of divestments, which contributed to a “strong” capital position.

Westpac said that after the buy-back, it would continue to have a strong capital position to respond to uncertainties, support growth and its customers. The capital position, together with surplus franking credits and the potential for further asset sales, creates flexibility for the board in its ongoing considerations of capital management.

In terms of the upcoming dividends, every analyst has their own view on how big the dividend could be.

According to Commsec, Westpac could pay an annual dividend of $1.22 per share in FY22 and $1.30 in FY23. At the latest Westpac share price, that translates to forward grossed-up dividend yields of 8.1% and 8.6% respectively.

However, there are also other estimates too.

The brokers at Citi think that Westpac could pay an annual dividend of $1.40 per share in FY22 and $1.55 in FY23. That would translate into forward grossed-up dividend yields of 9.3% and 10.3% respectively.

Then there is another set of dividend of estimates from Macquarie. The estimate for the annual dividend in FY22 is $1.20 per share and in FY23 it’s $1.25 per share. That turns into a grossed-up dividend yield of 8% and 8.3% respectively.

Is the Westpac share price a buy?

Of the two brokers mentioned, one thinks it’s a buy, whilst the other is ‘neutral’ on the bank.

Citi thinks that Westpac shares are a buy, with a price target of $27.50. That’s almost 30% higher than where it is right now.

Macquarie is the broker that is neutral on the business. However, the price target is $25.50, which is still almost 20% higher than the current level.

The post Is the Westpac (ASX:WBC) share price a buy for dividends? appeared first on The Motley Fool Australia.

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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 Macquarie Group Limited 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price has struggled over the final month of 2021.

The difficult period came as short interest in the company’s shares remains high. In fact, it’s continued to hold the title of the most shorted stock on the ASX throughout this month.

As of Thursday’s close, Flight Centre shares were trading at $17.73. That’s 0.1% lower than at the start of December.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 3.5% over the same period.

Let’s take a closer look at what might have weighed on the travel agency’s shares this month.

An acquisition fails to excite

Flight Centre shares have slumped this month despite the company announcing non-price sensitive news of an acquisition.

The company purchased technology company, Compli.ai for its browser extension, Shep. It plans to integrate Shep into its flagship business travel division, FCM travel management.

According to Flight Centre, Shep will see FCM place its own content on third party websites used by corporate customers. Doing so is expected to enhance consistency and deliver better control, duty of care, sustainability, and communication to its customers.

More COVID-19 outbreaks

The acquisition didn’t appear to excite the market. Perhaps investor enthusiasm for Flight Centre shares might be being curbed by grounded flights and Omicron outbreaks.

While Prime Minister Scott Morrison last week declared Australia wasn’t going back to “shutting down people’s lives” by implementing lockdowns, outbreaks of the COVID-19 variant caused New Zealand to delay reopening its borders and other countries to reinstate COVID-19 restrictions.

Additionally, as The Motley Fool Australia reported earlier this week, airlines around the world are struggling to staff flights as flight crews are forced to isolate after encountering people infected by COVID-19.  

Such an instance was echoed in Australia over the Christmas period. The Australian reported some airlines were forced to cancel multiple domestic flights on Christmas Eve after staff were identified as close contacts.

Flight Centre share price ups and downs

On top of that, some experts have recently expressed concerns that Flight Centre – and its share price – will struggle to break even in the future.

Whether all this has, or has not, weighed on Flight Centre shares is impossible to say.

Still, the dip hasn’t been enough to plunge it into the long-term red. Right now, the company’s stock is trading for 10.5% more than it was at the start of 2021.

The post Why didn’t Flight Centre (ASX:FLT) shares enjoy any Christmas cheer in December? appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 travel shares faring over the holiday season?
• ASX travel shares in focus on global flight cancellations
• These are the 10 most shorted ASX shares
• What’s the outlook for the Flight Centre (ASX:FLT) share price in 2022?
• Here’s what’s happening to the Flight Centre (ASX:FLT) share price today

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 Flight Centre Travel 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 Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying their shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first growth share to look at is this pizza chain operator. It could be a top option due to its strong brand, investment in technology, and bold expansion plans. The latter sees the company aiming to more than double its network from 2,949 stores in FY 2021 to 6,650 stores by FY 2033.

It is worth noting that the above target relates only to the existing markets it operates in. Management also revealed that it is actively looking for acquisitions that could increase its store target even further.

All in all, this has many analysts predicting strong earnings growth in the future. One of those is Goldman Sachs, which is forecasting an operating earnings compound annual growth rate (CAGR) of 14.6% for the next three years.

In light of this, the broker has put a buy rating and $147.00 price target on the company’s shares.

Life360 Inc (ASX: 360)

Another ASX growth share that could be in the buy zone is Life360. It is the technology company behind the popular Life360 mobile app for families.

And when I say popular, I mean popular! For example, during the third quarter of FY 2021, Life360 added a further 1.5 million monthly active users (MAU), bringing the total to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million.

Looking ahead, management sees significant opportunities to monetise its massive user base through cross-selling and upselling. This will be supported by its recent acquisitions of items tracking company Tile and wearables company Jiobit.

The latter sees the company take control of the discreet wearable Jiobit Location Monitor. This provides location monitoring and smart notification services for younger children, pets, seniors, and any loved one prone to wander. Management expects the acquisition of Jiobit to allow Life360 to tap into two fast growing markets: the multi-billion pet supplies and services and elder care markets.

The team at Bell Potter is very positive on Life360. It currently has a buy rating and $15.25 price target on its shares.

The post Analysts name 2 exciting ASX growth shares to buy in 2022 appeared first on The Motley Fool Australia.

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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 Dominos Pizza Enterprises 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 good news for income investors in this low interest rate environment, is that there are plenty of ASX shares offering attractive dividend yields.

Two such shares are listed below. Here’s what you need to know about them and their dividends:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is this commercial property company.

BWP was formerly owned by Woolworths Group Ltd (ASX: WOW), which remains a major shareholder today. It has a focus on warehouses and is the largest owner of Bunnings Warehouse properties.

While having such a reliance on a single customer is ordinarily a risk, as Bunnings is owned by Woolworths, it seems unlikely that the retail giant would do anything such as mass lease exits that would negatively impact its investment.

Especially given how Woolworths has been generating significant passive income from BWP thanks to generous dividend payments. For example, in FY 2021, BWP paid an 18.29 cents per unit distribution. It also plans to pay a similar distribution this year. Based on the current BWP share price of $4.23, this will mean a 4.3% dividend yield.

National Storage REIT (ASX: NSR)

Another ASX dividend share to look at is National Storage. It is Australasia’s largest self-storage provider, tailoring self-storage solutions to residential and commercial customers at over 200 storage centres across Australia and New Zealand.

Thanks to a combination of organic growth and the benefits of acquisitions, National Storage was on form in FY 2021 and reported a 28% increase in underlying earnings to $86.5 million. This allowed the National Storage Board to declare a full year distribution of 8.2 cents per share.

Looking ahead, management expects to grow its underlying earnings per share by 10% in FY 2022. If its distribution increases in line with its earnings, this would lead to a distribution of 9.02 cents per share. Based on the current National Storage share price of $2.67, this represents a yield of 3.4%.

The post 2 ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

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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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard to record the smallest of gains. The benchmark index rose 3.6 points to 7,513.4 points.

Will the market be able to build on this on Friday and end the year on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. This follows a solid night of trade on Wall Street, which late on sees the Dow Jones up 0.1%, the S&P 500 up 0.1% and the Nasdaq up 0.45%.

ASX opening hours

Today is New Year’s Eve and, as per previous years, trading will finish earlier than normal. You’ll need to make sure you get your trades in before 14:00 Eastern Standard Time or you’ll miss out. The ASX share market will then be closed until Tuesday 4 January.

Oil prices mixed

It could be a subdued end to the week for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.3% to US$76.77 a barrel and the Brent crude oil price is down 0.1% to US$79.14 a barrel. Traders appear undecided on where oil prices are heading from here due to Omicron.

Lynas’ Malaysian update

The Lynas Rare Earths Ltd (ASX: LYC) share price will be on watch today after providing an after-hours update on its Malaysian operation. Lynas advised that the Malaysian permanent disposal facility for Water Leach Purification residue has received environmental approval from the relevant Malaysian regulatory authorities. This removes a major risk the company was facing.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price pushed higher. According to CNBC, the spot gold price is up 0.5% to US$1,814.2 an ounce. The gold price edged higher after Treasury yields softened.

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

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• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
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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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If you’re looking to beat low interest rates with some dividend shares, then you may want to look at the ones listed below.

Here’s why these ASX 200 dividend shares are rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP.  This mining giant could be a top option for income investors thanks to the diversity of its world class operations and the strong free cash flow they generate.

Morgans is a fan of the company and has an add rating and $45.70 price target on its shares.

It recently commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

As for dividends, the broker has pencilled in fully franked dividends of $3.42 per share in FY 2022 and $2.45 in FY 2023. Based on the current BHP share price of $41.68, this will mean yields of 8.2% and 5.9%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share for income investors to consider is NAB. The team at Bell Potter is positive on the banking giant and has a buy rating and $32.00 price target on its shares.

The broker said: “NAB is now the second largest major bank by market capitalisation. The payout ratio is now close to its maximum, being 65-75% of cash earnings. ROE was 10.7% in FY21 and still climbing, while CET1 ratio was 13% and ahead of the 10.75-11.25% target range. The bank still intends to return surplus capital, being 40% complete. The acquisition of 86 400 plus the proposed acquisition of Citigroup’s Australian consumer business will see the bank achieve scale in digital and consumer banking offerings.”

The broker is forecasting dividends per share of 132.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $29.32, this equates to fully franked yields of 4.5% and 4.6%, respectively.

The post Analysts rate these ASX 200 dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the NAB (ASX:NAB) share price having such a merry December?
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• Bell Potter names 2 ASX 200 blue chip shares to buy in 2022
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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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The Syrah Resources Ltd (ASX: SYR) share price has shot up again today off the back of its agreement with electric car giant, Tesla, Inc (NASDAQ: TSLA).

With no further news released today, the minerals and technology company appears to be basking in the afterglow of its significant deal.

At the close of trade today, the Syrah share price was up 6.83% at $1.80 apiece. This followed yesterday’s lift of 3.3%. Let’s take a closer look at the latest news.

What’s the deal?

Last week, the company detailed an offtake agreement with Tesla in which it would supply natural graphite from its vertically integrated activity anode material (AAM) production facility in Vidalia, Georgia, in the United States.

Yesterday, the mineral and technology company gave more detail on the agreement, saying the collaboration would be subject to both parties agreeing to the final specifications of the offtake by no later than 31 December next year.

Under the terms, the product must be to Tesla’s satisfaction by no later than 31 May 2025.

The agreement may also be subject to termination should the project not be up and running by exactly a year prior.

If satisfied with the above conditions, Tesla will offtake 8kt of expansion at Syrah’s US facility per annum, which compares to the 10kt initially planned.

Syrah share price snapshot

This year has been a positive one for the Syrah share price, which has seen a massive jump of 87.5% since January.

Based on its current share price, the company has a market capitalisation of more than $897 million.

The post Why did Syrah Resources (ASX:SYR) share price jump 7% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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 Bank of Queensland Limited (ASX: BOQ) share price recovered slightly in afternoon trade after falling overall today. The lift came after the major bank hosed down speculation on a potential takeover of buy now, pay later (BNPL) player, Humm Group Ltd (ASX: HUM).

Bank of Queensland shares closed at $8.20 today, down 0.37%. Meanwhile, the Humm share price went gangbusters and was up 5%, trading at 93.5 cents at the market close.

Let’s take a look at what may have weighed into investor sentiment on the companies today.

Takeover speculation

Bank of Queensland released a short statement in response to an article in News Corp titles today suggesting the bank had engaged Goldman Sachs to assist with “early discussions” to take over the BNPL company.

Earlier this month, Humm advised it has received “third party interest” to acquire all or part of the company. However, no details on these potential companies have been released. Humm advised at the time it would engage on these proposals to find out if they were in the best interests of the company and its shareholders.

In a statement to the market on Thursday afternoon, the Bank of Queensland shut down talk it was involved in the proposal, saying:

Bank of Queensland Limited notes the media speculation overnight regarding a possible transaction between BOQ and Humm. BOQ is not pursuing the transaction as speculated in the media article.

Investors appeared to react positively to this news, with the share price jumping from $8.13 to $8.20 following the announcement, nearly a 1% gain. Meanwhile, Humm’s share price dropped from 98 cents to 93.5 cents following the update, a 4.6% drop.

As my Foolish colleague James has noted, the Humm board suggested there was no assurance any transaction would occur. Further, the company remained profitable and had no corporate debt. In fact, the board felt that the company’s shares were undervalued.

Share price recap

The Bank of Queensland share price is up 9.11% year to date and rising 7.85% over the past 12 months. In the past month, it has gained 5.67%, while it is up 2.63% in the past week.

Meanwhile, the Humm share price is down almost 17% year to date and more than 18% in the past 12 months. Despite this, it’s gained 22% in the past month and 3.3% in the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 12% in the past year.

The post Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours appeared first on The Motley Fool Australia.

More reading

• Is it a buy? Top brokers’ opinion on the Bank of Queensland (ASX:BOQ) share price
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• Why Afterpay, Humm, Namoi Cotton, and Pilbara Minerals shares are falling

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 Humm 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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Shares in molecular diagnostics company Genetic Signatures Ltd (ASX: GSS) finished the day strong and closed 12.5% in the green at $1.75.

Today’s gain extends an impressive run the company has been on over the past week. Specifically, investors have been piling into Genetic Signatures after it released an investor update last week. Here are the details.

Why did the Genetic Signatures share price charge higher?

Genetic Signatures released an investor update last week where it outlined several investment highlights. For instance, the company outlined it has had a strong year to date and expects sales of at least $21 million for the half year.

First quarter sales were $12.4 million, a company record, supported by a surge in COVID-19 testing in Australia. The recent emergence of the Omicron variant has seen testing volumes increase dramatically in the past three weeks, according to the release.

With case numbers in NSW alone surpassing the 12,000 mark today, this increased testing will likely continue into 2022.

Genetic Signatures designs and manufactures a suite of real-time Polymerase Chain Reaction (PCR) based products for the routine detection of infectious diseases under its EasyScreen brand.

Luckily for the company, it’s been determined that its flagship EasyScreen COVID-19 Detection Kit was able to detect all known variants, including the Omicron variant.

Since the new variant has arrived, the company has developed a new kit, called the EasyScreen SARS-CoV-2 Variant Detection Kit. It says this kit was designed in collaboration with customers to differentiate the Omicron and Delta variants prior to sequencing.

Performance of the new kit has been confirmed in-house against more than 300 clinical patient samples. The new kit is being offered initially for research use only and can identify mutations specific to Delta or Omicron in SARS-CoV-2 positive samples.

The company also advised it is still amidst the clearance process for its EasyScreen Enteric Protozoan Detection Kit in the US. After clearance is obtained, the company can market its device.

Genetic Signatures is required to supply data from three different clinical sites and a minimum of 1,500 patient samples with the application. It had been hoped that these trials would be completed by year-end but sample collection has been halted due to COVID-19.

The company expects that these trials will be completed before the end of the March quarter, per the release.

Genetic Signatures share price summary

In the past 12 months, the Genetic Signatures share price has fallen almost 14% into the red after sliding another 13% this year to date.

In the past month, it has regained steam and is now up more than 35% in that time, after climbing more than 29% in the past 5 days of trading.

The post 20% in a week: Here’s why the Genetic Signatures (ASX:GSS) share price soared today appeared first on The Motley Fool Australia.

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The author has no positions 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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