Category: Stock Market

CSL Limited (ASX: CSL) is one of the biggest companies on the ASX, both by share price and market capitalisation.

That means historically, it’s likely been considered among the market’s more stable shares.

And in staying true to that, the best day ever experienced by the CSL share price saw it gain a respectable, but not altogether awe-inspiring, 12.49%.

So, what spurred the record gain in CSL shares? Let’s take a look.

The CSL share price’s best day on the ASX

On 18 January 2017, the CSL share price finished the day at $99.12. Then, the following day it closed a whopping 12.49% higher at $111.50.

The company’s best share price performance ever was spurred by the type of announcement most shareholders wish for — a profit upgrade.

On the morning of that January Thursday, CSL announced it expected to report a net profit after tax (NPAT) of around US$800 million for the 6 months ended 31 December 2016.

That was after adjusting for the one-off gains and costs associated with CSL’s acquisition of the Novartis influenza vaccines business, and a US$20 million currency exchange headwind.

Combining the company’s earnings for its first half of the 2017 financial year with ongoing expectations, led it to believe it would report NPAT growth of between 18% to 20% on a constant currency basis for FY17.

That was up from its previous guidance, wherein it expected to report NPAT growth of around 11%.

The unexpected increase in the company’s profits came from strengthened sales for the first half of FY17. Particularly, sales of its immunoglobulins and specialty products.

Coming back to reality, it’s hard to ignore how much CSL’s business has grown since 2017.

The CSL share price is now another 173% higher. It finished yesterday’s session trading at $305.08.

Additionally, in its results for the first half of FY21, the company posted US$1.81 billion of NPAT. Not bad for just 4 years of growth.

The post When was the best day ever on the CSL (ASX:CSL) share price chart? appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended CSL Ltd. 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 A2 Milk Company Ltd (ASX: A2M) share price has been out of form over the last few weeks

Since this time in August, the fresh milk and infant formula company’s shares have fallen almost 6%.

This compares to a reasonably flat performance by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the A2 Milk share price underperforming?

Investors have been selling down the A2 Milk share price since the release of its disappointing full year results in late August.

For the 12 months ended 30 June, the company reported a 30% decline in revenue to NZ$1.21 billion and a massive 77.6% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$123 million.

This was in line with the very bottom end of its final guidance for FY 2021.

Weak outlook

While a poor result was expected after its countless downgrades, its outlook appears to have really disappointed investors and put pressure on the A2 Milk share price.

That outlook commentary reveals that the company is still a long way from returning to form. So much so, another tough year is expected in FY 2022.

A2 Milk’s Managing Director and CEO, David Bortolussi, commented: “Overall, although a2MC believes the business will continue to make significant progress on many fronts, FY22 is expected to continue to be a challenging and volatile year.”

“Due to the actions taken in 4Q21 to address channel inventory and improve product freshness, coupled with strong brand health, the business is well-placed to adapt its strategy and execution to drive growth in the longer term. However, recovery in English label channels is expected to be slow and market growth in China will be subdued for some time,” he added.

No capital return and revamped growth strategy

Also weighing on the A2 Milk share price was news that management has decided against undertaking a capital return. Instead, it wants to preserve its balance sheet due to the market volatility.

Some of these funds are also expected to be reinvested in growth opportunities. Though, there’s no word on what these are at present. Management revealed that it is currently reviewing its growth strategy in response to a rapidly changing China infant formula market and structural factors in the daigou channel.

Time will tell if these changes lead to an improvement in its performance. But shareholders certainly will be hoping they do. The A2 Milk share price is down 66% over the last 12 months.

The post Here’s why the A2 Milk (ASX:A2M) share price is down 6% in a month appeared first on The Motley Fool Australia.

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• Top broker says A2 Milk (ASX:A2M) share price is a buy
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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 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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Later today the Reserve Bank of Australia will be meeting to discuss the cash rate. According to a note out of Westpac Banking Corp (ASX: WBC), its economics team expect no changes to be made.

In fact, the bank continues to forecast the cash rate staying on hold at the record low of 0.1% until at least December 2022.

As a result, dividend shares look likely to remain the best option for income investors for the foreseeable future.

But which dividends shares should you consider buying? Three with big yields are listed below:

Adairs Ltd (ASX: ADH)

Adairs is a leading homewares and furniture retailer with both a physical presence and growing online presence. The latter includes through its Mocka brand. According to a note out of UBS, its analysts have a buy rating and $4.40 price target on its shares. It is forecasting a fully franked dividend of 21.9 cents per share in FY 2022. Based on the current Adairs share price of $4.08, this will mean a yield of 5.4%.

National Australia Bank Ltd (ASX: NAB)

This banking giant could be a top option for income investors. This is due to improving trading conditions, the Citi acquisition, and its cost management initiatives. Goldman Sachs is very positive on the bank. It has a conviction buy rating and $30.62 price target on the bank’s shares. In addition, the broker is forecasting a 4.6% dividend yield in FY 2022.

Telstra Corporation Ltd (ASX: TLS)

A final dividend share to look at is this telco giant. It is expecting to return to growth at long last in FY 2022, with management forecasting underlying EBITDA growth of 4.5% to 9%. The team at Morgans expect this to underpin a 16 cents per share fully franked dividend. Which based on the current Telstra share price of $3.90, will mean a yield of 4.1%. Morgans has an add rating and $4.34 price target on its shares.

The post 3 buy-rated ASX dividend shares with big yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO 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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The Australian Taxation Office (ATO) has warned rookie ASX share investors often “misunderstand” their obligations, resulting in errors on their tax returns.

According to ATO assistant commissioner Tom Loh, the rising popularity of micro-investing apps has resulted in “a record number” of new investors last financial year.

“Unfortunately, first-time investors often don’t understand their taxation obligations, don’t keep appropriate records and are more likely to make mistakes when lodging their tax returns.”

Here are 4 ways stock virgins can stay on top of their tax returns, according to the ATO:

‘Paper losses’ are not losses yet

Yes, seeing the ASX share you own 60% down on your purchase price is painful.

But you can’t count that as a loss on your tax return.

“It is important to note that capital losses only happen on the sale of the share,” stated the ATO. 

“Investors cannot claim ‘paper losses’ on investments if the share price drops but they continue to own the share.”

Another common capital loss trap is offsetting it to other income. 

Tax rules dictate that capital losses can only be offset against capital gains. If any losses are left over, they can be carried forward to next year for further offsetting.

Loh has seen some cheeky tax returns in his time.

“Each year, we see some enterprising entrepreneurs trying to offset their capital losses against income tax applied to other income, such as salary and wages. Others attempt to offset a ‘paper loss’ against actual income,” he said.

“Our sophisticated data analytics are able to spot this and we may apply penalties for investors that have intentionally done the wrong thing.”

Tax on ETFs and micro-investing platforms

According to the ATO, exchange-traded funds are popular with young investors because they attract a lot of money from micro-investing apps.

Once the financial year is done and dusted, ETF providers issue investors with a document called Standard Distribution Statement (SDS).

This statement contains, in black and white, all the numbers investors need to declare in their tax returns.

“When an investor disposes of units, the SDS will show the capital gains or losses made from the sale of the units which also need to be included in tax returns.”

Dividend reinvestment plans are taxable

Many first-time investors could be using dividend reinvestment plans for their ASX shares.

These schemes automatically purchase more shares rather than giving out the dividend payout as cash.

This can result in a common tax error because the investor is not receiving any money.

“Most people recognise that they must pay tax on any money earned from selling shares,” said Loh. 

“But many don’t realise that tax also applies to dividends and distributions, even if they are automatically reinvested into a reinvestment plan.”

Dividends can get complicated — so the ATO recommends investors seek professional advice to ensure they’re reporting correctly.

For goodness sake, keep a record of everything

Above all, Loh recommended rookie investors develop a habit of maintaining immaculate records.

“Taxes on share and ETF investments can be complex and poor record-keeping doesn’t make it any easier,” he said.

“Keeping good records, including dates, prices, commissions, and details of taxable events such as share splits, share consolidations, mergers, and demergers is essential to avoiding trouble at tax time.”

The ATO reminded taxpayers it automatically receives data from many different sources, such as ASIC, online brokers, ASX and share registries.

“While this data makes tax time much simpler, it is still important for investors to check that all their relevant data has been included.”

Even the world’s best tax agent or accountant can only work with information provided to them by the investor.

“Errors related to CGT or income from dividends and distributions, whether deliberate or accidental, will lead to amendments,” said Loh.

“You may need to repay some or all of a tax refund and penalties may apply.”

The post 4 tax-time tips for first-time ASX share investors appeared first on The Motley Fool Australia.

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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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There are a handful of ASX dividend shares that could make exciting options for income over the longer-term.

These are companies that have attractively high dividend payout ratios and are expecting to generate higher operating profit as times goes on.

The two names below could be effective options to boost the income yield of a portfolio:

Charter Hall Long WALE REIT (ASX: CLW)

This diversified real estate investment trust (REIT) is currently rated as a buy by the broker Citi with a price target of $5.68.

The broker thinks that Charter Hall Long WALE REIT could beat its own FY22 guidance when considering the acquisitions it made during FY21 which will contribute a full 12 months of earnings as well as any new acquisitions it makes during FY22. Citi is attracted to the ASX dividend share’s defensive income and reliable tenants.

In FY21, Charter Hall Long WALE REIT saw operating earnings of $159 million, this was 29.2 cents per unit – an increase of 3.2% on the prior corresponding period. This is what funded a 3.2% increase of the distribution to 29.2 cents per unit.

Strong property transactions helped elevate the value of the REIT’s own portfolio by 12.1%, or $523 million. This lifted the net tangible asset (NTA) value per unit by 16.8% to $5.22.

It has a very long-term tenant base. At 30 June 2021, its portfolio’s weighted average lease expiry (WALE) was 13.2 years, which the REIT says provides long-term income security.

For FY22, the ASX dividend share has provided guidance of FY22 operating earnings per security (EPS) growth of no less than 4.5%. That means the current Charter Hall Long WALE REIT share price offers a yield of at least 5.7%.

Accent Group Ltd (ASX: AX1)

Accent is a large shoe retailer in Australia and New Zealand. It operates retailers like The Athlete’s Foot and also has exclusive distribution partnerships for a number of global brands into the local market including Vans, Skechers, Dr Martens and CAT.

FY21 saw a lot of growth for Accent as well as rising profit margins. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19.3% to $242 million, earnings before interest and tax (EBIT) grew by 32.1% to $124.9 million and net profit after tax (NPAT) grew 38.6% to $76.9 million.  

Online sales growth has been a feature for Accent since the start of the COVID-19 pandemic. FY21 saw total online sales rise by 48.5% to $209.9 million.

The ASX dividend share also said that it opened 90 new stores in FY21, whilst closing seven where required rent outcomes could not be achieved. Management say that new stores continue to “perform strongly” on more favourable rents than the existing portfolio.

Accent’s total dividends for FY21 amounted to 11.25 cents per share, up 21.6%, reflecting the trading result.

Lockdowns have hurt sales in the first few weeks of FY22, though digital sales growth is offsetting some of the pain.

According to Commsec, Accent is going to pay a grossed-up dividend yield of around 6% in FY22.

The post 2 ASX dividend shares that could be buys with yields above 5% 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 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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The BHP Group Ltd (ASX: BHP) dividend has been a talking point over the years, rewarding shareholders with consistent payouts. This comes as the world’s second-largest miner has enjoyed bumper profits, particularly from the surging iron ore spot price.

Nonetheless, we take a look to see how the BHP dividend stacks up against its peers.

How does the BHP dividend compare to its sector?

BHP is scheduled to pay a final dividend of US$2.00 (A$2.74) per share to eligible investors on 21 September. Coupled with its interim dividend of US$1.01 (A$1.31), this brings the total FY21 dividend to US$3.01, a 151% increase on FY20.

Based on the closing BHP share price of $42.19 yesterday, this implies a juicy dividend yield of 9.6%.

In comparison, Rio Tinto Limited (ASX: RIO) is set to give its shareholders $7.60 per share on 23 September. The FY21 interim dividend along with the previous 2H FY20’s $5.17 payment, translates to a total dividend payment of $12.77.

The Rio Tinto share price finished yesterday at $110.69, which equates to a trailing dividend yield of 11.5%.

And, lastly, Fortescue Metals Group Limited (ASX: FMG) is on track to distribute a final dividend of $2.11 per share, payable on 30 September. The company’s interim dividend for the FY21 period came to $1.47 apiece. In total, the full-year dividend amounts to $3.58.

Calculating using the last price of $18.57 for Fortescue shares, this is a mammoth dividend yield of 19.2%. It’s also worth noting that the company’s shares dropped a sizeable 10.94% yesterday after going ex-dividend.

Looking at all 3 miners’ dividend yields, the BHP dividend is ranked the lowest. Yet while investors may opt for Rio Tinto or Fortescue, it’s also imperative to consider share price movements.

BHP shares have jumped 16% higher over the last 12 months, while Rio Tinto and Fortescue shares have moved up 15% and 6%, respectively.

Are BHP shares a buy?

A recent broker note from Macquarie cut its rating on BHP shares by 3.3% to $58.00. On the other hand, Morgans had a different tone, adding to its outlook by 0.9% for a bearish price of $45.90.

However, Goldman Sachs released a report noting that BHP delivered an in-line but still strong FY21 result. The global investment house said its key focus points surrounded the oil merger with Woodside Petroleum Ltd (ASX: WPL), the approval of the Jansen potash project and the listing unification.

BHP commands a market capitalisation of roughly $124.4 billion, making it the third-largest company on the ASX.

The post How does the BHP (ASX:BHP) dividend compare to its sector? appeared first on The Motley Fool Australia.

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

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If you’re wishing to add some diversification to your portfolio this week, then you might want to look at exchange traded funds (ETFs).

These funds help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.

With that in mind, listed below are two ETFs which could be worth considering. Here’s what you need to know about them:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. It gives investors access to a diversified portfolio of 48 attractively priced US companies that are deemed to have sustainable competitive advantages or moats.

Warren Buffett is a fan of investing in companies with moats. And given his long term investment success, it certainly could be worth following his lead.

Among the 48 shares included in the fund are some of the most well-known companies in the world. This includes Alphabet (Google), Amazon, Coca-Cola, Constellation Brands, Intel, Kelloggs, McDonalds, Microsoft, Pfizer, Philip Morris.

Over the last 10 years, the index the ETF tracks has generated an average return of 22.6% per annum.

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

Another ETF by VanEck that could be worth considering 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 companies included in the fund are gaming giants Activision Blizzard, Electronic Arts, Roblox, and Take-Two.

In addition, graphics processing unit developer Nvidia is another key member of the fund. Nvidia sparked the growth of the PC gaming market in 1999, redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing.

VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The index the VanEck Video Gaming and Esports ETF tracks has generated a return of 32.2% per annum over the last five years.

The post 2 excellent ETFs for ASX investors this week 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 VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and 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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COVID-19 has caused a lot of damage to some ASX shares and a few industries as a whole.

Some businesses may be worth thinking about for the long-term as they are still feeling the impacts of those effects.

Travel and education could be two areas to look at for the longer-term.

At the current prices, these two ASX shares may be opportunities:

IDP Education Ltd (ASX: IEL)

IDP Education is a business involved in a number of areas of education: English language testing, student placement in Australia and other countries, English language teaching and digital marketing and events.

FY21 was a difficult year as it was completely impacted by COVID-19, whereas half of FY20 was unaffected by COVID-19. IDP Education’s FY21 net profit was down 42% to $39.5 million.

IDP Education noted that total student placement volumes were down 25% for the year, driven by travel and border restrictions. Placements to Australia were hardest hit, falling 40% compared to last year. But the UK reported a 4% increase in volumes as students travelled to the UK to commence studies.

FY21 English language testing revenue demonstrated its “through the cycle appeal” as volumes rebounded despite ongoing restrictions across its global network. The English language testing revenue grew $0.1 million to $325.6 million.

The ASX share pointed to its recent acquisition of the British Council’s English language testing operations in India, along with investments in digital marketing and the technology platform, which strategically position the business to grow its English language testing market share going forward.

Morgans is one of the brokers that likes IDP Education, with a price target of $31.25. The broker thinks English language testing volumes are now growing in FY22 with pent-up demand and the addition of the British Council India acquisition.

The broker reckons the IDP Education share price is valued at 53x FY23’s estimated earnings.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the largest business travel companies in the world. It’s even bigger after its acquisition of Travel & Transport in the US.

It’s already seeing a recovery. When delivering its FY21 result, the company said that it had experienced a rapid return to positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA). That recovery was led by the company’s increasing exposure to a recovery momentum in North America and Europe.

Whilst it made a full year EBITDA loss of $7.2 million, it made $13.6 million of positive EBITDA in that last quarter, representing a $19.1 million turnaround on the previous quarter. The ANZ region was profitable through FY21 despite the border closures.

The company’s balance sheet has no debt and it had cash of $99 million. The COVID-hit ASX share is targeting a return to dividend payments in the 2022 calendar year.

Corporate Travel believes it will be a much larger business after COVID-19 travel restrictions end. Management say the company is gaining market share in key markets, with North America and Europe currently generating around 80% of group revenue.

July 2021 delivered a record post-COVID revenue result, defying seasonal activity reduction in North American and Europe during the seasonal holiday period.

It’s currently rated as a buy by the broker Citi, with a price target of $26.06.

The post 2 COVID-hit ASX shares that could be buys now appeared first on The Motley Fool Australia.

More reading

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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. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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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On Monday the S&P/ASX 200 Index (ASX: XJO) bounced back from a terrible start to end the day a few points higher. The benchmark index rose slightly to 7,528.5 points.

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

ASX 200 expected to rise

The Australian share market is expected to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning. This is despite US markets starting the week in a subdued fashion. On Wall Street the Dow Jones fell 0.2%, the S&P 500 edged lower, and the Nasdaq rose 0.2%.

Treasury Wine given neutral rating

The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker has retained its neutral rating with an improved price target of $11.60. However, this still implies potential downside of 6.1% for the wine company’s shares. Goldman notes uncertainty in the commercial end of the market, especially in the ANZ region. It fears oversupply could constrain market profitability.

Oil prices slide

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$68.89 a barrel and the Brent crude oil price has fallen 0.7% to US$72.10 a barrel. Saudi price cuts have weighed on prices.

Gold price falls

It could be a subdued day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price edged lower. According to CNBC, the spot gold price is down 0.45% to US$1,825.5 an ounce. Traders may have been taking profit after a strong gain in the previous session.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend on Tuesday and could trade lower. This includes steel producer BlueScope Steel Limited (ASX: BSL), financial services company, clean energy miner IGO Ltd (ASX: IGO), IOOF Holdings Limited (ASX: IFL), energy company Origin Energy Ltd (ASX: ORG), and healthcare company Sonic Healthcare Limited (ASX: SHL).

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

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• ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines
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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 owns shares of and has recommended Treasury Wine Estates Limited. 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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If you want to boost your portfolio with some blue chips, then you might want to take a look at the ASX 200 shares named below.

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

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Goodman has a world class portfolio of in-demand warehouses, large scale logistics facilities, and business and office parks. In fact, demand is so strong that it currently boasts an occupancy rate of 98%. This helped underpin a 15% increase in operating earnings to $1.22 billion in FY 2021.

Looking ahead, the company appears well-placed to benefit from like for like rental growth and its significant development pipeline.

Citi is a big fan of Goodman. It currently has a buy rating and $26.00 price target on the company’s shares.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share to look at is SEEK. It is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.

It was on form in FY 2021 thanks to its domination of the ANZ market. For example, the SEEK ANZ business reported record ad volumes in the second half of the year amid easing COVID-19 restrictions. This led to SEEK reporting an average of 40 million monthly site visits, which represents 10% growth on pre-COVID-19 levels.

This ultimately led to SEEK reporting a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax excluding significant items to $141 million for the year.

The good news is that the future looks bright for SEEK thanks to its strong market position and Australia’s recovery from the pandemic. With unemployment levels tipped to fall materially, job ad volumes look set to increase significantly once the economy opens up again.

A recent note out of Macquarie reveals that its analysts have an outperform rating and $37.00 price target on the company’s shares.

The post 2 top blue chip ASX 200 shares rated as buys appeared first on The Motley Fool Australia.

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• SEEK (ASX:SEK) share price drops despite tripling its dividend in FY 2021

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. 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 SEEK 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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