Category: Stock Market

The Evolution Mining Ltd (ASX: EVN) share price has been smashed in 2021. Shares in the Aussie gold miner fell 6.4% on Tuesday and are now down 36.6% year to date.

Yesterday’s slump has seen Evolution hit a new 52-week low. The company now boasts a $6.1 billion market capitalisation, but things have been tough for shareholders.

So, what’s driving the Aussie miner’s valuation lower right now?

Why the Evolution Mining share price is slumping to a 52-week low

There has been no price-sensitive news from the Aussie miner since it announced the completion of its share purchase plan on 26 August.

However, as an ASX resources share, underlying commodity prices can often tell a story.

Evolution is targeting 700,000 to 760,000 ounces of gold production in FY2022 after recording a $354.3 million underlying profit last financial year. Naturally, global gold prices will have a big part to play in the group’s revenues in FY2022.

Right now, things aren’t looking so good. Gold prices slid more than 1% overnight to a near 6-month low as US yields climbed higher.

Gold is historically seen as a safe-haven asset and a good hedge against inflation. Hiking interest rates is one of the tools used by central banks to curb spending and reduce inflation. That means fears of higher interest rates usually spell bad news for gold prices.

It has also spelled bad news for the Evolution Mining share price. Shares in the Aussie gold miner remain under pressure as investors watch monetary policy and yields around the world.

An earlier than expected rate hike from the US Federal Open Market Committee (FOMC) could see Evolution’s valuation sink even lower. However, nothing is certain in the markets, especially in the current climate.

That means investors will be keeping a close eye on the Evolution Mining share price given its current levels.

The post Why the Evolution Mining (ASX:EVN) share price is slumping to a 52-week low appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Evolution Mining (ASX:EVN) share price hits 52-week low
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall 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 Westpac Banking Corp (ASX: WBC) share price will be carefully watched in the coming weeks, as analysts speculate on its immediate fortunes.

The bank’s stock price has plunged 1.9% in the past month, although there were no direct announcements from it that would have had a material impact. 

There was news that the competition watchdog in Papua New Guinea blocked Westpac’s $420 million sale of its Fijian and PNG business to Kina Securities Ltd (ASX: KSL).

But that shouldn’t have a massive impact on a business with a total market capitalisation of $93 billion.

Buyback or dividend boost both on the cards

So is this a buying opportunity for the stock?

Redpoint Investment Management senior portfolio manager Max Cappetta told The Motley Fool that Westpac is one of his top picks among the big banks.

“Coming up in the dividend calendar is now the full-year results to 30 September for 3 out of Australia’s 4 major banks.”

While Cappetta forecast both Westpac and National Australia Bank Ltd. (ASX: NAB) to have a superior rebound in profitability, the former could have some cherry on top.

“We also see the potential for capital management by either a buyback or even an increased dividend from Westpac,” he said in Ask A Fund Manager.

Citibank analysts agree, this week slapping on a buy rating for Westpac shares with a price target of $30.

That’s a handy 18.5% premium on Tuesday’s closing price of $25.31.

“Citi is forecasting fully franked dividends of $1.16 per share in FY2021 and then $1.30 per share in FY2022,” reported The Motley Fool’s James Mickleboro.

“This represents yields of 4.6% and 5.1%, respectively, over the next couple of years.”

The downside for Westpac

The risk for Westpac, and indeed any ASX bank share at the moment, is the prospect of a slowing housing market.

This could happen naturally because Australians have taken on so much debt that they can’t absorb anymore, which was a concern raised by Morgan Stanley last week.

The alternative is that the property market could deflate artificially from tighter lending regulations, as flagged by Treasurer Josh Frydenberg on Tuesday.

But the good news is that while Morgan Stanley is rating the other 3 majors sell or neutral, it still labels Westpac shares as “overweight” with a $29.20 price target.

The post Why these experts say the Westpac (ASX:WBC) share price could be on the way up appeared first on The Motley Fool Australia.

More reading

• Why these experts think the NAB (ASX:NAB) share price is on the way up
• Why we favour 2 of 4 big bank ASX shares: fund manager
• The Westpac (ASX:WBC) share price is down 3% so far in September. What’s next?
• 2 buy-rated ASX dividend shares with generous yields
• Westpac (ASX:WBC) share price in focus amid new NZ CEO

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 on the lookout for growth shares to buy in October? Then you may want to look at the ones listed below.

Here’s why analysts rate these two ASX growth shares highly:

Breville Group Ltd (ASX: BRG)

Breville could be a good growth share for investors to consider buying. It is a leading appliance manufacturer with a collection of popular brands including Kambrook, Sage, and Breville.

It has been tipped to continue its solid growth over the coming years thanks to its international expansion and strong demand from consumers. The latter is being driven partly by favourable trends such as working from home, which has led to a surge in coffee machine sales.

The team at Morgans are positive on the company’s outlook. The broker currently has an add rating and $34.00 price target on its shares. This compares to the current Breville share price of $28.74.

Life360 Inc (ASX: 360)

Life360 could be another top growth share to look at. It operates in the digital consumer subscription services market, with a focus on products and services for digitally native families. Its hugely popular Life360 app now has 32 million users globally and offers features that range from communications to driving safety and location sharing.

The company has been growing its recurring revenues at a rapid rate in recent years and is now looking to accelerate this growth through cross-selling opportunities. This includes expanding into the wearables market via the acquisition of Jiobit.

Bell Potter is very positive on the company’s future and sees plenty of opportunities to monetise its massive user base. As a result, the broker recently retained its buy rating and lifted its price target to $10.75. This compares to the latest Life360 share price of $9.03.

The post Here are 2 strong ASX growth shares analysts rate as buys appeared first on The Motley Fool Australia.

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• 3 ASX shares with bags of potential
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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 shares of and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Boral Limited (ASX: BLD) share price is having a reasonably strong year so far. Shares in the building materials supplier are up 23.7% in 2021 and outperforming the S&P/ASX 200 Index (ASX: XJO).

However, it hasn’t all been going shareholders’ way this year. In fact, the Boral share price is down 16.2% in the three months since 28 June, closing on Tuesday at $6.15 apiece. That means that the ASX share has actually underperformed the broad market index which has edged just 0.4% lower in the same period.

So, why is the building supplies company underperforming right now?

What’s with the Boral share price lately?

June and July was an interesting period for the Boral share price. The company was under siege at the time with Seven Group Holdings Ltd (ASX: SVW) ramping up its takeover efforts.

Boral recommended shareholders reject Seven’s updated offer for up to 34.5% of the company at $7.40 per share, saying that undervalued the company by 40%.

Naturally, the Boral share price hovered around that proposed takeover mark of $7.40 per share for quite some time. Then, in late July, it started sliding as Seven took control of the company.

Seven’s move on Boral coincided with shares in the building supplies group falling lower in late July and most of August. The Aussie conglomerate accumulated 69.6% of the company’s voting rights by 30 July and the Boral share price was under pressure.

Some saw the move as deception, others a shrewd business decision. However, while the ASX 200 enjoyed a reasonably positive earnings season, the same can’t be said for Boral.

How did Boral perform in FY21?

The company reported its full-year results on August 24 including the below:

• Revenue from continuing operations down 6% on the prior corresponding period (pcp) to $2.92 billion
• Underlying earnings per share (EPS) from total operations up 42% on pcp to 20.6 cents
• Return on funds employed (ROFE) down 50 basis points (bps) from FY2020 to 8.3%
• No final dividend declared

The “challenging market conditions” saw the Boral share price slump 8% in two days either side of the result.

That, combined with a steadying in the broad market index, has seen the building supplies company underperform the broad market index in the last three months.

The post Why the Boral (ASX:BLD) share price has underperformed the ASX 200 in the last 3 months appeared first on The Motley Fool Australia.

More reading

• The Boral (ASX:BLD) share price has fallen 17% since Seven took control
• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
• Boral (ASX:BLD) share price lifts amid latest business sale
• Why the Boral (ASX:BLD) share price is down 17% in a month
• These were the worst performing ASX 200 shares in August

Motley Fool contributor Ken Hall 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 boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to look at is Rural Funds. It is an Australian property company that owns a diversified portfolio of agricultural assets which are leased predominantly to corporate agricultural operators.

Management is targeting distribution growth of 4% per annum and aims to achieve by owning and improving farms that are leased to good counterparties.

It has been a case of so far so good for this strategy. In FY 2021, the company was on form again and grew its distribution by 4% to 11.28 cents per share. It has also provided guidance for a 4% increase in its distribution to 11.73 cents per share in FY 2022.

Based on the current Rural Funds share price of $2.75, this will mean a yield of 4.3%. Another positive is that this distribution is paid in quarterly instalments.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share with an attractive yield is Telstra. In FY 2021, the telco giant paid shareholders a fully franked dividend of 16 cents per share. Based on the current Telstra share price of $3.93, this represents a 4% dividend yield.

The good news is that Telstra is expecting to return to growth in FY 2022 and another 16 cents per share dividend is forecast.

But even better is the company’s longer term outlook. Telstra recently released its T25 plan which reveals bold growth plans through to FY 2025. This has led to many analysts believing that Telstra could soon increase its dividend for the first time in a decade. This would make its already attractive yield even more attractive for income investors.

The post 2 ASX dividend shares with attractive 4%+ yields appeared first on The Motley Fool Australia.

More reading

• These 2 ASX shares are going ex-dividend today
• 3 reasons why Rural Funds (ASX:RFF) is a quality ASX dividend share
• This analyst rates the Telstra (ASX:TLS) share price a buy
• How does the Telstra (ASX:TLS) dividend compare to ASX 200 shares?
• These 5 ASX shares are going ex-dividend this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Corporation 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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Analysts are speculating over which direction National Australia Bank Ltd (ASX: NAB) share price could be heading in the coming period.

The major bank’s stocks have gone sideways in the past month, down 0.18%.

But this week NAB reported its intentions to hire more staff to grow its private banking and wealth management businesses.

Three of the big banks, including NAB, will report their results in a few weeks.

Does that mean now is a buying opportunity for NAB shares?

Is a dividend boost coming for NAB shareholders?

Redpoint Investment Management senior portfolio manager Max Cappetta told The Motley Fool that he certainly favoured it over 2 other major banks.

“We favour Westpac Banking Corp (ASX: WBC) and the NAB,” he said in the latest in Ask A Fund Manager.

“Our expectations are showing that their profitability looks to be rebounding more strongly.”

Goldman Sachs is forecasting that NAB will pay out a total dividend of 125 cents per share for the 2021 financial year.

As it has already given out 60 cents as an interim dividend, this would mean an 8.3% lift for the final dividend to bring it to 65 cents.

“When calculating against the current share price, NAB is trailing on a forecast fully-franked dividend yield of 4.4%,” reported The Motley Fool’s Aaron Teboneras.

“Before the onset of COVID-19, the bank had been paying shareholders fully franked dividends of 99 cents on a bi-annual basis.”

As for the price itself, Goldman Sachs has rated NAB shares a ‘buy’ with a price target of $30.62. That’s a nice 11.4% premium to Tuesday’s closing price.

Possible dangers for NAB shares

All bank ASX shares are currently facing the danger of a deflating housing market.

Property prices have ramped up the past 18 months on the back of historic low interest rates, and there are worries the market has overheated.

Morgan Stanley last week raised concerns about the high levels of household debt in Australia.

And this week treasurer Josh Frydenberg agreed, flagging that tighter lending regulations could come in to curb massive home loans.

The post Why experts think the NAB (ASX:NAB) share price is on the way up appeared first on The Motley Fool Australia.

More reading

• Why we favour 2 of 4 big bank ASX shares: fund manager
• The NAB (ASX:NAB) share price rises amid hiring frenzy in private banking
• These experts believe the future is bright for the Bank of Queensland (ASX:BOQ) share price
• The Westpac (ASX:WBC) share price is down 3% so far in September. What’s next?
• 2 buy-rated ASX dividend shares with generous yields

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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ASX dividend shares can be an effective way to boost investment income because of their attractive yields.

There are plenty of businesses that could be identified as having compelling long-term dividend growth potential or reliability.

Companies may not be able to grow their dividend every single year, but dividends can steadily rise over time if the profit is generally heading upwards.

That’s why these two businesses could be ones to consider for their possible dividend income:

Brickworks Limited (ASX: BKW)

Brickworks is a leading manufacturer and supplier of building products in Australia. It sells bricks, paving, masonry, stone, roofing, specialised building systems, precast, cement and timber battens.

It also has a presence in the US with brickmaking and distribution businesses, with a market-leading position in the north east of the country.

But there are two other asset groups that fund the Brickworks dividend. By the way, that dividend has been grown or maintained every year for the last 45 years.

The first asset of the ASX dividend share is its 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). Industrial property is seeing more demand and higher valuations as businesses realise the importance of properties that are essential for e-commerce and logistics.

Brickworks’ industrial property trust saw revaluation gains of $149 million. Coles Group Ltd (ASX: COL) and Amazon will soon be tenants at two of the biggest distribution warehouses in Sydney, which are currently being built by the trust. Once these warehouses are completed, it is expected to lead to a substantial increase in the rental profit and value of the trust.

In terms of current rental profit, the trust saw a 3% increase to $31 million over FY21.

The other thing that funds the dividend is its ownership of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Soul Patts is an investment conglomerate which owns investments in a variety of industries including telecommunications, resources, agriculture and financial services. In FY21, the Soul Patts dividend that Brickworks received increased by 3% from $56 million to $58 million.

Combined, those two assets fund the growing Brickworks dividend. In FY21, the board increased the Brickworks dividend by 3.4% to $0.61 per share. That translates to a grossed-up dividend yield of 3.4%.

Adairs Ltd (ASX: ADH)

Adairs is quite a different business to Brickworks. This ASX dividend share is a leader of homewares and home furnishings. It also owns the online-only furniture brand Mocka.

One of the reasons that Adairs has an attractive dividend yield is its low valuation. According to Commsec, the Adairs share price is valued at under 12x FY22’s estimated earnings. In the current financial year, it’s expected to pay a grossed-up dividend yield of 7.7%. That would represent a dividend payout ratio of 63%, leaving a healthy amount of profit in the business for re-investment.

One of the main areas that the company is looking to invest in is store floor space growth. Adairs says that store sales are highly correlated to store floor space, with each additional square metre adding around $4,000 in store sales. It’s expecting to grow its total floor space by at least 8% in FY22 and then by at least 5% per annum over the next five years through new and upsized stores.

The ASX dividend share is growing its profit margins, particularly at its stores and online, thanks to scale benefits. A new national distribution centre is expected to lead to annual savings of $3.5 million per year, whilst also improving its ability to improve stock flow and fulfil online orders.

In FY23, Commsec numbers suggest that Adairs could pay a grossed-up dividend yield of 9.1%.

The post 2 ASX dividend shares that could be buys in October 2021 appeared first on The Motley Fool Australia.

More reading

• Why the Brickworks (ASX:BKW) share price reached a new 52-week high today
• Brokers name 3 ASX shares to buy today
• Broker names 2 high yield ASX dividend shares to buy
• 2 ASX shares that could be buys for both growth and dividends
• Why Bapcor, Brickworks, News Corp, & Premier Investments are rising

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ADAIRS FPO and Brickworks. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO, Brickworks, COLESGROUP DEF SET, and Washington H. Soul Pattinson and Company 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 ex-dividend date is always an interesting time to watch ASX dividend shares. Corporate finance theory indicates that investors should be indifferent between buying a share ex-dividend or buying the day before with the value of the expected dividend priced in.

That doesn’t always prove to be the case. It’s one reason why investors might want to keep an eye on these 2 ASX shares going ex-dividend on Wednesday.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) that aims to provide investors with “regular income and potential capital growth through agricultural property ownership”.

Today is one of the days that Rural Funds will deliver on its regular income target. Shares in the Aussie REIT are set to trade ex-dividend today ahead of the 2.93 cents per unit unfranked distribution.

The ASX agricultural share closed on Tuesday at an all-time high of $2.75 per share. Investors may see a significant drop from those highs in today’s trade, however, in preparation for the latest distribution.

Shares in the Aussie REIT are currently trading at a 4.13% dividend yield ahead of today’s ex-dividend decline.

Meridian Energy Ltd (ASX: MEZ)

Another prominent ASX share set to trade ex-dividend today is Meridian Energy. Shares in Australiasia’s largest 100% renewable energy generator have been under pressure in 2021.

The Meridian share price is down 29.22% this year in a disappointing year for shareholders. Those figures are about to look worse if Meridian shares fall lower this morning. Meridian shares are set to trade ex-dividend ahead of its 10.48 cents per share final unfranked dividend.

Investors may see Meridian’s value drop in early trade as the ASX renewables share trades ex-dividend ahead of the 15 October dividend payment. As at Tuesday’s close, the group’s shares are trading at a 3.03% dividend yield.

The post These 2 ASX shares are going ex-dividend today appeared first on The Motley Fool Australia.

More reading

• 3 reasons why Rural Funds (ASX:RFF) is a quality ASX dividend share
• These 5 ASX shares are going ex-dividend this week
• 2 ASX 200 shares that could be buys for dividends

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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 Sonic Healthcare Limited (ASX: SHL) share price was out of form on Tuesday.

The healthcare company’s shares were caught up in the selloff and sank 4% to $39.46.

Is the Sonic share price weakness a buying opportunity?

One leading broker that is likely to see the weakness in the Sonic share price as a buying opportunity is Morgans.

According to a recent note, the broker has an add rating and $45.98 price target on its shares.

Based on the current Sonic share price, this implies potential upside of 16.5% over the next 12 months before dividends.

In addition, Morgans is forecasting a 95 cents per share dividend in FY 2022. If you include this, the total potential return stretches to 19%.

What did the broker say?

Morgans likes Sonic for a number of reasons. One of those is its belief that the company will continue to benefit from COVID testing. While it acknowledges that peak testing may be behind us, it feels the outlook for testing remains strong.

Another reason the broker is bullish on the Sonic share price is its balance sheet. It believes the company has $1.5 billion of balance sheet capacity to use on acquisitions to support its growth.

Morgans commented: “We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID serology testing. SHL’s global base business is increasingly resilient, benefitting from geographical diversity. Strong B/S (gearing 21.6x; A$1.3bn headroom) opening the door to acquisitions, contracts and JVs.”

So, although the Sonic share price is smashing the market in 2021 with a 20% gain, Morgans doesn’t believe it is too late for investors to get on board. This could make it worth considering, especially after market volatility this week dragged its shares lower.

The post Top broker says Sonic (ASX:SHL) share price is a buy appeared first on The Motley Fool Australia.

More reading

• The healthcare sector is weighing on the ASX 200 on Tuesday
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• 5 things to watch on the ASX 200 on Wednesday

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

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October could be a good month to look at ASX shares that have been beaten up in recent times.

The share market is going to be volatile, that’s why it is seen as one of the higher-risk assets. But individual shares can move around a lot more, sometimes downwards quite significantly. This may open up opportunities for investors who believe they see good value.

These two businesses could be ones to consider after significant falls:

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 17.5% since 23 August 2021 and it has fallen 44% from the start of 2021.

FY21 certainly saw a lot of disruption caused by having too much inventory and sales not being as strong in the second half of the year as expected. That’s why net profit after tax (NPAT) ended up being down 86.8% to $3.5 million, reflecting one-off inventory, logistics and Mighty Ape acquisition costs.

However, the FY21 result wasn’t all bad for the ASX share, with some positive signs. Kogan active customers increased 46.9% to 3.2 million, gross sales rose 52.7% to $1.18 billion and gross profit rose 61% to $203.7 million. Adjusted net profit, which removes a number of those non-cash and one-off items, rose 43.2% to $42.9 million.

Prior to the second half of FY21, Kogan had been demonstrating operating leverage with steadily growing profit margins as the business benefited from the scale benefits of being an e-commerce business. Those benefits may be shown again in the future, as Kogan adds more customers, generates more gross profit and expands in New Zealand (with Mighty Ape).

Kogan could benefit over time from the steady growth of products being bought online.

According to Commsec, the current Kogan share price is valued at 26x FY23’s estimated earnings.

BHP Group Ltd (ASX: BHP)

Over the last two months, the BHP share price has fallen by 31%. Commodity businesses go through cycles where the price of the commodity is sometimes priced highly and sometimes drops substantially.

That’s what has happened with the iron ore price – it has dropped by around half since the peak a few months ago.

But the bottom of the cycle could prove to be an opportunity for investors to consider. Macquarie Group Ltd (ASX: MQG) currently rates the BHP share price as a buy with a price target of $56. The prices of BHP’s other commodities are one of the reasons that the broker likes BHP.

Some of the ASX share’s other resources includes coal, oil, copper and nickel.

The broker thinks that BHP shares are valued at 8x FY22’s estimated earnings with a potential grossed-up dividend yield of 14%.

BHP also points to potash as a commodity that could help profit in the future with its long life Jansen asset that should see reliable and growing demand, as well as strong earnings before interest, tax, depreciation and amortisation (EBITDA) margins.

The post 2 beaten-up ASX shares that could be buys in October 2021 appeared first on The Motley Fool Australia.

More reading

• 2 founder-led ASX shares to buy now
• BHP (ASX:BHP) shareholders urged to reject climate action plan
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
• These are the 10 most shorted ASX shares

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 shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd 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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