Category: Stock Market

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

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

What happened

Top-15 cryptocurrencies Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and Polkadot (CRYPTO: DOT) were all trading lower Thursday. Over the past 24 hours, these cryptocurrencies sank 4.2%, 1.7%, and 6.1%, respectively, as of 1 p.m. ET.

These moves generally fell in line with the broader market sell-off today in major cryptocurrencies. The entire market dropped 3.6% in value over the past 24 hours, to a total of $2.29 trillion.

So what

A first-mover among smart-contract-enabled blockchains, Ethereum has grown into a potential challenger for Bitcoin for top spot in the crypto market cap rankings. Ethereum’s network is often viewed as the foundational building block of the decentralized finance movement, playing an integral role in many of the use cases we’ve seen of late.

However, investors appear to remain concerned about high gas fees (transaction fees) on Ethereum’s network. These fees have allowed lower-cost competitors such as Solana and Avalanche to gain ground on Ethereum’s market share. Accordingly, this token is seeing pressure today.

Dogecoin’s status as one of the most prevalent meme tokens makes this cryptocurrency a rather sensitive one to market sentiment. In hyper bull markets, this is a good thing. Recently, Dogecoin has rapidly moved to the upside.

That said, in a down market fueled by a rather bearish tone, many investors appear to be rotating out of Dogecoin. Dogecoin can be viewed as a momentum play on the broader market, and more specifically, risk assets. Right now, it appears investors are content to sit on the sidelines with this dog-inspired token.

Polkadot is certainly an interesting token, in that it’s been trending in the wrong direction over the past month. Polkadot’s decline today has brought this token more than 50% below its early November peak. 

Today’s decline in Polkadot is on little news, suggesting broader market momentum is at play with this token.

Now what

Today’s widespread decline appears to be amplifying the negative catalysts already at play with these three tokens. It’s clear that broad capital flows into the crypto sector act as tides, taking most boats (tokens) higher or lower over specific periods of time. With the tide ebbing, investors seem to be content waiting for the dust to settle.

That said, each of these tokens have longer-term catalysts that bulls may look at in a different light, should the tides shift anytime soon. Right now, predicting which direction the crypto market will move from day to day seems to be a fool’s errand. 

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

The post Why Ethereum, Dogecoin, and Polkadot are heading lower today appeared first on The Motley Fool Australia.

More reading

• Survey reveals surprising crypto swing as Aussie housing bubble fears grow
• Can Bitcoin and other cryptos be used as an inflation hedge?
• Missed out on Ethereum? Here’s a possible alternative
• Why Ethereum, Dogecoin, and Solana Fell This Morning
• Crypto investors missing millions after 2 Aussie exchanges collapse

Chris MacDonald owns Ethereum and Solana. 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.

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

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The Westpac Banking Corp (ASX: WBC) share price is edging higher today after providing an update on its $3.5 billion share buyback.

At the time of writing, the banking giant’s shares are up slightly to $21.05.

What’s happening?

When Westpac announced its full year results last month, the bank reported an off-market buyback of up to $3.5 billion of shares.

Since that announcement, the Westpac share price has lost over 18% of its value amid concerns over increasing competition and softer than expected margins.

The Westpac Board has noticed this and today highlighted some positive and negative implications for the buyback.

It commented: “Following the recent fall in Westpac’s share price, the rationale for the Buy-Back is even more compelling. Specifically, the lower share price may provide Westpac with the opportunity to buy back more shares than was originally contemplated. However, the lower current share price level also has implications for Buy-Back participants. As a function of the current share price, the sale proceeds and franking credits that are distributed to Buy-Back participants are potentially reduced.”

What now?

In response to the weaker Westpac share price, the bank has decided to amend some of the terms of the buyback.

This includes the discount range of the buyback. This has been changed to a more generous 0% to 10% discount from 8% to 14% previously. Management notes this will improve the potential return of the buyback for shareholders.

Another amendment is the closing date of the tender period. This has been pushed back to 11 February from 17 December to allow shareholders additional time to assess the revised buyback terms.

Everything else stays the same. The capital component will be $11.34 per share, subject to ATO approval, and the dividend component will be the buyback price less the capital component. The final buyback price will be based on the five-day volume weighted average price at the closing date.

Whatever happens, though, Westpac remains committed to buying back up to $3.5 billion worth of shares. This will see the bank buy back shares on-market to make up the difference if the final buyback demand is less than $3.5 billion.

Westpac’s CFO, Michael Rowland, commented: “The lower share price may provide us with the opportunity to buy back and cancel more shares than we originally expected. Accordingly, we are committed to completing our capital management program. The changes to the Buy-Back announced today are designed to ensure that participants are not disadvantaged by recent market movements and increase the likelihood of us buying back $3.5 billion of shares. If Buy-Back demand is less than planned, we intend to commence an on-market buy-back for any shortfall.”

The post Westpac (ASX:WBC) share price higher on $3.5bn buyback update appeared first on The Motley Fool Australia.

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• Why did Westpac (ASX:WBC) just buy this app from AMP?
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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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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The Vulcan Energy Resources Ltd (ASX: VUL) share price is pushing higher again on Friday.

In morning trade, the lithium developer’s shares are up 5.5% to $11.68.

This means the Vulcan Energy share price is now up 19% over the last two trading sessions.

Why is the Vulcan Energy share price rising today?

The catalyst for the rise in the Vulcan Energy share price today was the release of its sixth announcement in the space of a month.

On this occasion, the short seller target has announced the acquisition of an operational geothermal renewable energy power plant in the Upper Rhine Valley at Insheim, Germany.

According to the release, Vulcan is paying approximately 31.5 million euros for the plant, which will be funded from a portion of the proceeds from its recent $200 million capital raise.

Management notes that the acquisition of the Insheim Plant establishes Vulcan as an operational renewable energy business. It currently has the technical ability to produce a maximum of 4.8MW renewable power, equivalent to approximately 8,000 households, with an additional ability to produce heating. Though, it currently produces 2.9 MW of electricity on average.

Positively, the Insheim Plant is expected to be a source of revenue for Vulcan. It reported sales of 5.8 million euros and EBITDA of 2.9 million euros for the financial year ending 31 December 2020. The plant presently capitalises on the Feed-in Tariff for geothermal power.

Vulcan will formally take over the plant from 1 January 2022 and will retain all existing local employees as part of the transition. The company also plans to invest in the expansion and modernisation of the power plant.

Vulcan’s Managing Director, Dr. Francis Wedin, commented: “This is a significant, first step in establishing Vulcan as a revenue generating, renewable energy producer. German State and Federal policy increasingly supports decarbonising heating and power grids, with a focus on decentralised, renewable energy, and Vulcan intends to build a number of distributed geothermal renewable energy plants across the Upper Rhine Valley region.”

“Vulcan subsidiaries GeoThermal Engineering GmbH and gec-co (Global Engineering & Consulting-Company GmbH) have already been successfully active in Insheim for many years. We will capitalise on our local knowledge and expertise to continue to make a positive contribution to the energy transition in the region, while discussions with multiple local stakeholders to provide renewable heating to communities and renewable power to the German grid are ongoing.”

The post Why the Vulcan (ASX:VUL) share price is jumping again on Friday appeared first on The Motley Fool Australia.

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• Why Hipages, IGO, Talga, and Vulcan shares are storming higher
• Vulcan Energy (ASX:VUL) share price shoots 12% higher on Volkswagen deal
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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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In a year when the S&P/ASX 200 Index (ASX: XJO) has risen more than 10.6%, there are still some popular ASX shares that have caused investors to tear their hair out.

Unfortunately, for amateurs and professionals alike, knowing when to sell shares of failing companies is easier said than done.

Shaw and Partners portfolio manager James Gerrish analysed some of the “laggards” in his flagship growth portfolio this week and related to this dilemma.

“Unfortunately when companies come out with downgrades it can be hard to exit at optimum levels as they tend to gap lower,” he said in his Market Matters newsletter.

“We may have enjoyed a solid year but these positions have been the major detractors on this portfolio’s P&L.”

Let’s take a look at 3 ASX shares that have stunk in 2021, and what Gerrish would do with them:

Appen’s risk-reward okay now 

Technology company Appen Ltd (ASX: APX) sure has been a pain in many investors’ portfolios in recent times.

Just this year alone the share price for the artificial intelligence service provider has plunged 62%.

It didn’t help that in late November the stock fell more than 20% in 2 trading days. This was triggered by Macquarie Group Ltd (ASX: MQG) research, which was concerned that Appen hadn’t yet provided a year-end guidance and a trend of its big clients bringing its services in-house.

Gerrish agreed that both points made sense.

“The markets certainly backed the Millionaires’ Factory on this one,” he said.

“The question is how much potentially bad news is baked into this particular cake and can we see another spike back up towards $15 (i.e. our initial target)?”

Appen closed Thursday at $9.72. 

Gerrish would like to cut Appen loose soon.

“We feel the risk-reward is ok around $9.50 but at this stage we are looking for an exit moving into 2022 rather than averaging our position here.”

Is there anything more infuriating than A2 Milk shares?

Dairy producer A2 Milk Company Ltd (ASX: A2M) has infuriated shareholders so much that it will now be defending itself against 2 class actions from its own investors.

After touching $20 back in July 2020, the stock closed Thursday at a sorry $5.63.

After buying in at around $8, Gerrish said he doesn’t intend to buy any more A2 Milk shares now but is optimistic in the short term.

“While there’s nothing comforting about A2 Milk trading sub-$6, we can see another spike into the $7 to $8 region, at least as new management starts to get some runs on the board after completely re-basing earnings at their most recent update, while corporate appeal can’t be ignored.”

His team will then look to exit once it hits those levels.

An ugly spring might turn into an awesome autumn

Many Australian investors looked to Virgin Money UK CDI (ASX: VUK) this year as a post-pandemic recovery play in Europe.

But after hitting a 52-week high in September, the shares have lost almost a quarter of their value. The Virgin stock price lost an eye-watering 11.3% in just one day last month after a financial update.

It closed Thursday at $3.10.

“The stock’s cheap because the market clearly lacks confidence that the company can deliver on their digital transformation and cost out strategy moving forward,” said Gerrish.

Despite the UK returning to COVID-19 restrictions this week, his team reckons “a resurgence” will be coming in the new year and will “likely” be retaining its position.

The post What I’d do with these ASX dogs of 2021: expert appeared first on The Motley Fool Australia.

More reading

• Why Appen, Cooper Energy, PolyNovo, and Sigma shares are falling
• This broker thinks the A2 Milk (ASX:A2M) share price is heading to $7.70
• How the A2 Milk (ASX:A2M) share price tanked 5% in November
• Leading brokers name 3 ASX shares to buy today
• What’s Appening? The Appen (ASX:APX) share price has tumbled 20% in 2 weeks

Motley Fool contributor Tony Yoo owns A2 Milk and Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you are looking to bolster your portfolio with some S&P/ASX 200 Index (ASX: XJO) shares, you may want to look at the two listed below.

Both of these ASX 200 shares have been given buy ratings recently. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. Goodman’s properties have exposure to key growth markets such as ecommerce and logistics.

The team at Citi are very positive on Goodman’s outlook. Its analysts currently have a buy rating and $27.50 price target on the company’s shares.

In response to its recent trading update, Citi commented: “We continue to see upside to FY22 guidance and now forecast FY22 EPS of 76.9c (+17% growth), 2% ahead of guidance. Importantly, our 3 year EPS CAGR lifts 200bps to ~16%, reflecting higher asset values, and development activity.”

REA Group Limited (ASX: REA)

Another ASX 200 share to look at is property listings company REA Group. It is best-known for the realestate.com.au website, which is dominating the ANZ market with an average of 121.9 million monthly visits to its website in FY 2021.

Goldman Sachs is a big fan of REA Group. The broker currently has a buy rating and $193.00 price target on its shares.

Following its recent acquisition of Mortgage Choice, Goldman said: “We believe the increased focus on finance makes strategic sense for REA, as it looks to capitalize on its strong brand, digital traffic and property data to take share of the sizable, but fragmented mortgage broking industry in Australia. This market has strong near-term volume tailwinds.”

The post 2 highly rated ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• If this is poker, we’re now ALL-IN on ASX shares: expert
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• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls

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 REA 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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A payments expert has predicted that ASX buy now, pay later (BNPL) shares are going to have a tough year in 2022.

One of the leading minds in the payments space has predicted that bad debts and losses will mount up next year.

Prediction of BNPL woes

According to reporting by the Australian Financial Review, Grant Halverson, who is the founder and boss of payments consultancy outfit McLean Roche, believes that ASX BNPL shares could see even higher bad debts in 2022 which may lead to lower credit ratings and higher funding costs.

Mr Halverson was quoted as saying:

The moment their bad debts go up their cost of funding will go up three or four times faster than the actual rate rises and the rating agencies will downgrade them, and then they’ll get to junk status.

Because they’re all frantically going at the US they’re racing to the bottom. And that means probably more bad debts because they’ve gone after customers who haven’t got credit ratings.

Looking at one of the latest arrears disclosures from a BNPL business, at 30 September 2021, Zip Co Ltd (ASX: Z1P) said that its arrears was 1.87%, which was an increase from 0.91% at 30 September 2020. Arrears are accounts greater than 60 days delinquent, whilst bad debts are defined as accounts delinquent that are overdue by 180 days on an annualised basis. Net bad debts were virtually unchanged at 2.44% at 30 September 2021.

Weak 2022 BNPL expectations

The McLean Roche boss doesn’t have a good outlook for BNPL ASX shares like Zip and Afterpay Ltd (ASX: APT). Cash and cashflow may weaken from here.

The newspaper quoted Mr Halverson on his views:

They’re going to have to try to raise a lot of money. It partly depends on how quickly interest rates go up, because if they go up quickly there could be carnage. If there’s a slower uptick then obviously the carnage will be slower in my view.

More regulation coming?

There is growing noise that regulation could be on the way for ASX buy now, pay later companies that could allow merchants to pass on the BNPL fees to customers. Not only has the Treasurer Josh Frydenberg indicated this, the Payments System Board (which includes the RBA governor and other important financial officials) has also had its say.

The Payments System Board said in a statement that it concluded:

It would be in the public interest for ‘buy now, pay later’ providers to remove their no-surcharge rules, consistent with the Board’s longstanding position on such rules. Given the complexity of the regulatory issues, the Bank will continue engaging with the Treasury on regulatory approaches.

The post More pain for ASX buy now, pay later shares in 2022: expert appeared first on The Motley Fool Australia.

More reading

• How to snare a multi-bagger ASX share: expert
• Here are the top 10 ASX shares today
• Why is the Zip (ASX:Z1P) share price zooming 9% higher today?
• Why Life360, Oil Search, Telix, and Zip shares are storming higher
• Here’s why ASX BNPL shares are in the spotlight today

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. 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 for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three excellent ETFs that could be worth getting better acquainted with in December. Here’s what you need to know:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. There are also a number of lesser known companies included in the fund, such as Meituan Dianping and Pinduoduo, with explosive growth potential. And while regulatory issues in China have been weighing on sentiment, there are signs now that the worst could be over.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF for investors to consider is the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the global cybersecurity sector. Given the growing number of cyberattacks globally and how much infrastructure is now in the cloud, demand for cybersecurity services is expected to rise strongly in the future. This bodes well for companies included in the fund. This includes Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports. Among the quality companies you’ll be buying a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 excellent ETFs for ASX investors to buy in December appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs that could be buys in December 2021
• 2 compelling ASX shares that could be buys in December 2021
• How did the Betashares Global Cybersecurity ETF (ASX:HACK) perform in November?
• Why is the BetaShares Asia Technology Tigers ETF (ASX:ASIA) struggling this month?
• 3 excellent ETFs for ASX investors in December

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 BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX tech shares could be the sector to look at for opportunities in December 2021.

There has been a lot more volatility in recent months, which could mean better ideas for investors at better prices.

Companies in the technology sector can make it possible to achieve attractive margins and quicker growth.

These ASX tech shares could be opportunities this month:

Xero Limited (ASX: XRO)

Xero is a leading cloud accounting software business which is providing services all over the world. It has sizeable subscriber numbers in New Zealand, Australia, the UK, the US, Singapore and South Africa. Total subscribers went up 23% to 3 million in the most recent result.

It’s currently rated as a buy by the broker Credit Suisse with a price target of $160, which is more than 10% higher than it is today. The broker notes the strong margins at Xero. In the FY22 first half, its gross profit margin improved from 85.7% to 87.1%.

The growth of average revenue per user (ARPU) could be an important contributor to operating revenue going forwards. In HY22, ARPU increased 5% to NZ$31.32.

Xero continues to see its annualised monthly recurring revenue (AMRR) increase, showing what the next 12 months of revenue could be. HY22 AMRR went up 29% to NZ$1.13 billion.

The ASX tech share is going to continue to focus on growing its global small business platform and maintain a preference for re-investing cash generated, to drive long-term shareholder value. Historically, that seems to have worked with the Xero share price up more than 750% over the last five years.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is an e-commerce business which sells thousands of different beauty products through its website.

The company is currently rated as a buy by the broker UBS with a price target of $6. That’s around 40% higher than it is today. The broker is expecting double digit revenue growth from Adore Beauty and its new private label brand products could be helpful.

Adore Beauty’s FY22 first quarter showed ongoing revenue growth, active customer growth and returning customer spending. The revenue in the first three months of this financial year grew by 25%.

FY21 showed a number of different pleasing metrics, including annual revenue per active customer increasing $13 over the year to $219. The gross profit margin increased 1.2 percentage points to 33.1%.

Over the longer-term, the business is expecting scale benefits to increase operating leverage and deliver further earnings before interest, tax, depreciation and amortisation (EBITDA) margin expansion.

In the current financial year, it is focused on increasing its market share by building its range ‘authority’, providing an “exceptional” online transaction experience and increasing its content-led engagement.

The post Are these 2 ASX tech shares good buys in December? appeared first on The Motley Fool Australia.

More reading

• How to snare a multi-bagger ASX share: expert
• 2 small cap ASX shares to get excited about
• 3 reasons why the Xero (ASX:XRO) share price could be a high-quality buy
• 10 ASX shares to buy in 2022
• 2 ASX shares with strong long term growth potential

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 Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Adore Beauty 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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It’s been a nerve-racking time recently for those following the S&P/ASX 200 Index (ASX: XJO).

The COVID-19 Omicron variant battered confidence a couple of weeks ago, but this week the index rallied hard to recover those losses.

If this were a plane ride, a few people might be reaching for the vomit bag.

According to Shaw and Partners portfolio manager James Gerrish, the ASX 200 was now within 3% of its all-time high just moments after Omicron scared some pessimists away from ASX shares.

He wrote in his Market Matters (MM) newsletter on Thursday that his team is optimistic for the ASX 200 as 2021 winds down.

“MM is still bullish targeting the 7,700 to 7,800 area into early 2022,” he said.

“Another 4% to 5% rally — although higher levels cant be ruled out as the trend’s clearly up.”

To truly put their money where their mouth is, Gerrish’s flagship growth portfolio currently only holds 1% in cash.

“The important factor to remember is MM [is] fully committed to stocks, as we basically have been since the start of the pandemic,” he said.

“If it was a game of poker we would be all-in!”

Why would the ASX 200 rise to end 2021?

Statistical patterns give Gerrish much confidence heading into the last fortnight before Christmas.

“If we assume (dangerous word) that 7,168 is the low for this December we could easily see 7,500 to 7,600 in the coming weeks, just through [simple] extrapolation of the average monthly ranges post COVID,” he said.

“Over the last 40 years the ASX has rallied 85% of the time from mid-December until January, delivering an average return of 2.9%.”

The Australian stock market is dominated by the finance and mining sectors, and the former has always done well at this time of the year.

“The influential banking sector has rallied 100% of the time since 1992 with an average return of 7% — a potentially huge tailwind for the ASX.”

But what to do in 2022?

Gerrish wrote that his team will focus on its existing holdings as share prices rally heading into the new year.

“Tis the time to be merry and boring!”

But what about when the ASX 200 peaks sometime in 2022?

Then the Market Matters experts will sell some shares off to increase their cash holdings.

“We could comfortably see ourselves taking cash levels significantly higher in Q1 of 2022 while we reassess what comes next as interest rates start to rise.”

The post If this is poker, we’re now ALL-IN on ASX shares: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why did the AGL share price outperform the ASX 200 today?
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls
• 5 things to watch on the ASX 200 on Thursday

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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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. This retailer owns and operates a growing network of footwear focused brands including The Athlete’s Foot, Platypus, and HypeDC to name just three.

Over the last decade, Accent has been growing its earnings and dividend at a strong rate. And while this is unlikely to be the case in FY 2022 due to the negative impact of lockdowns on its performance, a number of brokers expect its strong growth to resume next year.

One of those is Bell Potter, which has a buy rating and $3.05 price target on its shares at present.

As for dividends, the broker is forecasting fully franked dividends per share of 9.1 cents in FY 2022 and then 13.5 cents in FY 2023. Based on the latest Accent share price of $2.34, this represents yields of 3.9% and 5.75%, respectively.

Rio Tinto Limited (ASX: RIO)

Another ASX dividend share to look at is Rio Tinto. This mining giant could be a top option due to the quality of its operations, its exposure to in-demand commodities like aluminium, its attractive valuation, and its generous yield.

In respect to the latter, the team at Goldman Sachs is forecasting fully franked dividend yields of ~11%+ in FY 2022 and FY 2023.

Furthermore, the broker sees decent upside for the Rio Tinto share price at the current level. Goldman has a buy rating and $121.00 price target on its shares at present.

One of the reasons Goldman is so positive on the mining giant is its aluminium business. It explained: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $.”

The post Analysts name 2 ASX dividend shares to buy now 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 recommended Accent Group. 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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