The S&P/ASX 200 Index (ASX: XJO) spent Thursday in the green, gaining 1.02% to close at 7,122.3 points.

It followed an equally good night over on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) rose 1% while the S&P 500 Index (SP: .INX) lifted 1.4% and the Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.8%.

Back home, the S&P/ASX 200 Information Technology Index (ASX: XIJ) led the way, rising 1.7% today.

Banks and mining companies also made the most of the day. The S&P/ASX 200 Financials Index (ASX: XFJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) both rose 1.5%.

S&P/ASX 200 Real Estate Index (ASX: XJO) had the worse end of the stick, however, falling 0.2% on Thursday.

So, with all that covered, which ASX 200 share posted the biggest gain today? Let’s take a look.

Top 10 ASX 200 shares countdown

The biggest gains on the index today came from uranium producer Paladin Energy Ltd (ASX: PDN).

Its share price gained 8.33% to close at 65 cents despite no news having been released by the company.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Paladin Energy Ltd (ASX: PDN)	$0.65	8.33%
Iress Ltd (ASX: IRE)	$9.84	5.81%
NRW Holdings Limited (ASX: NWH)	$2.37	5.33%
Regis Resources Ltd (ASX: RRL)	$1.995	5%
Chalice Mining Ltd (ASX: CHN)	$7.31	4.58%
Lake Resources NL (ASX: LKE)	$0.47	4.44%
AMP Ltd (ASX: AMP)	$1.08	4.35%
Megaport Ltd (ASX: MP1)	$4.13	4.29%
Credit Corp Group Limited (ASX: CCR)	$16.51	3.84%
Virgin Money UK CDI (ASX: VUK)	$2.62	3.56%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Regis Resources, Syrah, and Zip shares are charging higher today
• 5 things to watch on the ASX 200 on Thursday
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today
• Sunk $3,000 into AMP shares 5 years ago? Here’s how much passive income you’ve realised
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article, but for the name of the current Reserve Bank governor, is 10 years old.

It borrows from (okay, is ripped off from) one of the great bush poems, Said Hanrahan, by John O’Brien. A tweet from the inimitable business journo, Michael Pascoe, reminded me that I’d written it, and prompted me to share it, once again.

Feel free to read the original first (or after). It’s better. Obviously. And it was about rain. This one is about rates. But, well, people’s responses now, and their responses then, aren’t that dissimilar.

—–

“We’ll all be rooned,” said Hanrahan

He sounded most forlorn

Outside the ASX while trade began

One chilly Monday morn.

The investors stood around about,

Coat-collars to the ears,

And talked of shares and interest rates

As they had done for years.

“It’s lookin’ crook,” said Daniel Croke;

“Bedad, it’s cruke, me lad

For never since the GFC

Had investing been so bad.”

“It’s bad, all right,” said young Whitehead

With timing so sublime

As everyone in chorus said

“It’s different this time”.

And so around the chorus ran

“The market’s stuffed, no doubt.”

“We’ll all be rooned,” said Hanrahan,

“Before the year is out.

“The shares have crashed; ye’ll have your work

To save your hard earned cash;

From here way out to Back-O’-Bourke

They’re talkin’ ‘bout the crash”.

“They’re cryin’ for rate cuts,” he said,

“They’ve gone and lost their nerve.”

The investors scratched their heads,

And awaited the Reserve.

“There won’t be growth, in any case,

Not a dollar to be made;

The market’s rigged – a gambler’s place

What is a guy to trade?”

“If shares don’t spike this month,” said Dan,

And cleared his throat to speak –

“We’ll all be rooned,” said Hanrahan, ”

If rates don’t fall this week.”

A heavy silence seemed to spread

O’er all – it was a sign

As everyone in chorus said

“It’s different this time”.

“We want a small rate cut, we do,”

O’Neil observed at last;

But Croke “maintained” we wanted two

To put the danger past.

“If we don’t get 0.5%, man,

Or more to break this drought,

We’ll all be rooned,” said Hanrahan,

“Before the year is out.”

In Phil’s good time down came the rates;

And all the afternoon

In boardrooms of investment banks in town

They sang a happy tune.

And speculation continued still,

And lightsome, gladsome elves

On dripping spout and window-sill

Kept talking to themselves.

‘Twas exuberance all day long,

A-singing at its work,

Till every cabbie took up the song

Way out to Back-O’-Bourke.

And sure as sure wages ran,

Then inflation overtop;

“We’ll all be rooned,” said Hanrahan,

“If these rate cuts don’t stop.”

And stop they did, in Phil’s good time:

And spring came in to fold

A mantle o’er the hills sublime

Fortunes made in gold.

And days went by as good times rolled,

With drinking from the cup,

As shares and bonds and bars of gold,

They went nowhere but up.

And, oh, the smiles on every face,

As happy guy and girl

Winning the share market race

Jumped online to buy and sell.

While round the bar well dressed and fed

They drank the finest wine,

As everyone in chorus said

“It’s different this time”.

“There’ll be a crash for sure, me man,

There will, without a doubt;

We’ll all be rooned,” said Hanrahan,

“Before the year is out”.

… “Said Hanrahan” originally spoke of the doomsayers who seemed to delight in predicting drought, then flood – all the while missing the point that farmers were successful despite – not in the absence of – the occasional meteorological extreme.

Hopefully our capital-F Foolish investing analogy is clear.

Fool on!

The post Of rains and interest rates… appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 5 things to watch on the ASX 200 on Thursday
• To pause or not to pause? Here are the predictions on next week’s RBA rate decision
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Scott Phillips 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 Scott Phillips.

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It’s a big week on the ASX share market this week for dividend investors. Huge.

Here on the Australian share market, the vast majority of ASX 200 shares pay out their dividends only every six months. That stands in stark contrast to other major economies like the United States and Britain. In these countries, quarterly dividends are the norm.

This bi-annual schedule means that when that dividend does come, it makes it all the sweeter.

And this week will be especially sweet for many ASX dividend investors. That’s because there are multiple ASX 200 blue-chip shares that are imminently set to pay out their latest dividend payments.

Let’s begin with today. This Thursday has seen the likes of Commonwealth Bank of Australia (ASX: CBA), Newcrest Mining Ltd (ASX: NCM), and Mineral Resources Ltd (ASX: MIN) fork out. Not to mention BHP Group Ltd (ASX: BHP), Ampol Ltd (ASX: ALD), Ramsay Health Care Limited (ASX: RHC), and Coles Group Ltd (ASX: COL) as well.

ASX 200 dividend shares shower investors with cash

Tomorrow, it’s just as busy. There’s Bendigo and Adelaide Bank Ltd (ASX: BEN) and Perpetual Ltd (ASX: PPT). They’re joined by Suncorp Group Ltd (ASX: SUN), Beach Energy Ltd (ASX: BPT), and Telstra Group Ltd (ASX: TLS), up for their own payments.

So it’s a big week on the ASX for income investors. In fact, as reported in The Australian today, Shaw & Partners senior investment adviser, James Nicolaou, estimates that a total of $19 billion in dividends will be paid out by the end of this week. That’s out of a total of $36.27 billion for this earnings season.

Of particular note are the dividends that investors can expect from Coles and Telstra. In Telstra’s case, the upcoming fully franked interim dividend of 8.5 cents per share is the highest interim dividend investors have received in five years.

When it comes to Coles, investors will receive (or already have) a record dividend payment from the ASX 200 grocer. The interim dividend of 36 cents per share, fully franked, is the largest dividend Coles has ever paid and represents a happy 9% increase over last year’s corresponding payment.

So I hope most readers are getting a big paycheque in the proverbial letterbox this week. It’s certainly a good week to be invested in the Australian share market.

The post ASX shares are paying out $19 billion in dividends this week. Are you getting a piece? appeared first on The Motley Fool Australia.

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More reading

• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX 200 gold shares like Newcrest being thumped on Thursday?
• Why Jervois Global, Mincor, Newcrest, and Santos shares are dropping today
• 2 ASX 200 stocks smashing new multi-year highs on Thursday

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining, Ramsay Health Care, and Telstra Group. 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 positions in and has recommended Bendigo And Adelaide Bank, Coles Group, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re building a retirement portfolio, then it would make sense to avoid risky ASX shares and focus on strong, high quality options.

But which ASX shares might be suitable?

Listed below are a couple of ASX shares that could be good options for a balanced retirement portfolio. Here’s what analysts are saying about them:

Betashares Global Quality Leaders ETF (ASX: QLTY)

With Betashares chief economist, David Bassanese, believing that there’s a 50% chance that the global economy will fall into a recession, he believes investors should be looking at defensive options.

One of the exchange traded funds (ETFs) that Bassanese rates highly is the Betashares Global Quality Leaders ETF. This ETF gives investors exposure to a portfolio of approximately 150 global companies (excluding Australia).

These are the crème de la crème of listed companies and are only included if they fit a very strict criterion.

To be included in the fund, a company needs to rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation ability, and earnings stability.

Three companies that tick these boxes and you will be owning a slice of with the ETF are Google parent Alphabet, tech leader Microsoft, and GPU giant Nvidia.

Woolworths Limited (ASX: WOW)

Another ASX share that could be a good option for a retirement portfolio is Woolworths.

It is of course the retail conglomerate behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, Big W, Everyday Rewards, and Pet Culture.

Thanks to its collection of strong brands, its positive exposure to inflation, and its defensive qualities, it could be a great pick for investors looking for lower risk options.

Goldman Sachs certainly appears to agree with this. It is also very positive on Woolworths’ outlook due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.

The broker currently has a conviction buy rating and $41.00 price target on the company’s shares. In addition, Goldman is expecting fully franked dividend yields in the region of 3% through to FY 2025.

The post Analysts name 2 strong ASX shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Betashares names 6 ‘defensive’ ASX ETFs to consider for a possible recession
• Analysts say these ASX dividend shares can boost your passive income
• Did you buy $10,000 of Woolworths shares in 2018? If so, here’s how much passive income you’ve banked
• Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts
• ‘Increased confidence’: Alphinity reveals 2 ASX 200 shares it just bought

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 Scott Phillips.

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During a stellar week for ASX 200 lithium shares, the boss of global top five lithium producer Mineral Resources Ltd (ASX: MIN) says Australia needs to have its own battery chemicals industry.

ASX 200 mining billionaire Chris Ellison says Australia needs a “rapid and substantial acceleration of the development of a battery chemicals industry” to fully capitalise on rising global demand for lithium.

As a resource-rich nation, Australia is already the world’s biggest lithium producer and exporter. We produced 46% of the global lithium supply in 2021, according to the latest government resources report.

Ellison says Australia should be doing more than simply digging lithium out of the ground.

Almost 80% of global lithium consumption goes into the manufacture of rechargeable batteries. This is largely due to the world’s massively expanding uptake of electric vehicles (EVs).

Making batteries involves a refinement process to turn raw lithium into battery chemicals first.

Ellison is asking the question, ‘why can’t we do that here?’

The case for a local battery chemicals industry

According to The Australian, China controls about 80% of the world’s lithium battery supply chain. It’s the world’s biggest manufacturer of lithium batteries and electric vehicles.

In a submission to the Federal Government this week, Ellison says:

With demand for battery chemicals set to grow by more than fivefold by 2030, we have a once in a generation opportunity to strengthen the value of our natural resources and create thousands of long-term jobs further down the battery chemical supply chain.

Without the rapid and substantial acceleration of the development of a battery chemicals industry, there is no chance of Australia ever moving past the extraction and early refinement of battery minerals.

$15 billion local manufacturing fund now in play

Ellison’s comments are topical given the passage through Parliament this week of the $15 billion National Reconstruction Fund, which incentivises onshore manufacturing in Australia.

Sovereign manufacturing capabilities were a key issue to emerge out of COVID-19.

Recent supply chain issues have contributed significantly to rising inflation.

The Fund has seven priority areas, including renewables and low-emission technologies; and value-adds in the resources sector.

Ellison says it is currently far more expensive to set up battery processing operations in Australia compared to China.

He’s currently building a lithium hydroxide processing plant in Western Australia that is expected to cost US$1.5 billion. He reckons the same facility would cost US$600 million to build in China.

Ellison said:

While some downstream investments in battery chemical conversion have been made in Australia, each of these projects has been plagued by delays, technical challenges and significant capital cost blowouts.

The investments to date have barely scratched the surface of Australia’s battery chemical production potential.

What’s the latest with ASX 200 lithium shares?

What a week in this particular space. ASX 200 lithium shares flew this week after US lithium giant, Albemarle (NYSE: ALB) made a play for local start-up Liontown Resources Ltd (ASX: LTR).

Liontown shares rose by a staggering 68.5%, with large gains of 15% to 20% for Allkem Ltd (ASX: AKE), Pilbara Minerals Ltd (ASX: PLS), and Core Lithium Ltd (ASX: CXO) shares, too.

Mineral Resources and Albemarle are partners in a lithium mine in Western Australia.

The post Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Citi gives its verdict on the Pilbara Minerals share price
• Best ASX lithium share to buy: Liontown Resources vs. Pilbara Minerals
• Short interest in Core Lithium shares is growing. Is this a red flag?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bronwyn Allen has positions in Allkem and Core Lithium. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) seems to be going from strength to strength this week. After healthy rises all week, the ASX 200 is adding to the party today and has risen by another 0.92% to back over 7,110 points at the time of writing.

What a time to be investing. So let’s now delve deeper into these gains by having a look at the shares that are at the top of the ASX 200’s share trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Telstra Group Ltd (ASX: TLS)

First up this Thursday is the veteran ASX 200 telco Telstra. So far this session, a notable 12.25 million Telstra shares have been bought and sold. There hasn’t been any fresh news out of Telstra itself for a while now. But there are a few things that could still be boosting volumes today.

Firstly, Telstra has just hit a new 52-week high of $4.24 a share this morning. Although the company has cooled off since then, we have still seen the company move around a fair bit as well as hit this new high. Secondly, Telstra is paying out its latest interim dividend tomorrow. Although eligibility for this dividend is now closed, it might still be responsible for some of this volume.

Sayona Mining Ltd (ASX: SYA)

Next up we have the ASX 200 lithium stock Sayona Mining to consider. This Thursday has seen a decent 35.18 million Sayona shares traded thus far. There hasn’t been much news out of Sayona either. And no dividend to speak of here. So this volume is probably a consequence of the movements of the company’s shares themselves. Right now, the Sayona share price is running with the bulls of the broader market, up a pleasing 3.5% at 31 cents a share.

Pilbara Minerals Ltd (ASX: PLS)

Finally this Thursday, let’s check out another ASX 200 lithium stock in Pilbara minerals. So far this session, a hefty 38.34 million Pilbara shares have swapped hands. Pilbara hasn’t had the same kind of boost that Sayona is currently enjoying during today’s trading. The lithium stock is currently up a robust 1.14% to $3.99 a share.

There’s been no other news out of Pilbara today, but we did cover a new broker rating on Pilbara this morning, which could be playing a role here. Citi has reaffirmed a buy rating on the lithium producer, and given it a share price target of $4.60.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

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More reading

• Citi gives its verdict on the Pilbara Minerals share price
• 2 ASX 200 stocks smashing new multi-year highs on Thursday
• Best ASX lithium share to buy: Liontown Resources vs. Pilbara Minerals
• Why did the Telstra share price just hit a multi-year high?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price is lifting on Thursday amid news of the airline’s involvement in funding an Australian biofuel refinery.

The refinery is expected to create sustainable aviation fuel (SAF) using sugarcane and other agricultural by-products in Queensland. It’s being developed by Jet Zero Australia and will utilise LanzaJet’s alcohol-to-jet technology.

Qantas previously committed to using 10% SAF in its overall fuel mix by 2030 in its race to reach net zero by 2050.

Right now, the Qantas share price is $6.575, 1.31% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.89%. Meanwhile, the company’s home sector – the S&P/ASX 200 Industrials Index (ASX: XNJ) – is gaining 0.92%.

Let’s take a closer look at the flying kangaroo’s home-grown sustainability plan.

Qantas teams up to fund Australian biofuel facility

The Qantas share price is lifting this afternoon amid news the airline, alongside partner Airbus, will help fund Jet Zero Australia’s planned biofuel production facility.

The pair will jointly invest $2 million of an initial $6 million capital raise to fund its feasibility study and early-stage development. The Queensland Government will also put in $760,000.

The facility is expected to produce up to 100 million litres of sustainable jet fuel annually. Its construction is anticipated to begin next year.

Qantas and Airbus previously agreed to invest up to US$200 million in the establishment of a SAF industry in Australia. The investment announced today marks the first project under the partnership.

Commenting on the funding agreement, Qantas chief sustainability officer Andrew Parker said:

Qantas will be the largest single customer for Australian-made SAF to meet our emissions reduction targets, which is why we’re investing in the ideas and technology that will build a local SAF industry.

This is one of several projects that we are looking to fund this year, all of which will help accelerate the decarbonisation of the aviation industry.

Meanwhile, Queensland deputy premier Steven Miles said the project is “exciting”, continuing:

This is another signal to the world that Queensland is ready for take-off as a clean energy powerhouse.

Qantas share price snapshot

This year has been a good one so far for the Qantas share price.

The stock has gained 11% since the start of 2023. It’s also currently 25% higher than it was this time last year.

Comparatively, the ASX 200 has gained 2% year to date and has fallen 5% over the last 12 months.

The post Qantas shares in the green amid sweet $2m investment appeared first on The Motley Fool Australia.

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More reading

• Why I think the Qantas share price can keep soaring higher
• Beach and bling: 2 ASX 200 shares Firetrail is loving right now
• Refuelled with profits, how ASX 200 favourite Qantas plans to stick the landing on growth
• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today
• Qantas share price takes a dive amid more takeover delays

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Scott Phillips.

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Insurance industry profit rose by billions in 2022, so could this be a good sign for ASX 200 shares such as Insurance Australia Group Ltd (ASX: IAG)?

IAG shares have risen 3% since market close on 23 March and are currently fetching $4.695, up 0.54%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.91% higher at the time of writing.

Let’s take a look at the outlook for IAG shares in light of recent insurance data.

What could be ahead?

IAG is a major insurance company operating in Australia and New Zealand.

A KMPG review, released on Wednesday, reveals insurer profits jumped massively in 2022 to a five-year high.

Industry insurance profit overall rose 42% year on year to $4.95 billion in 2022. Higher premium prices led to a 10% rise in the gross written premium to $0.59 billion.

IAG reported a net profit after tax (NPAT) of $468 million in the first half of FY23, 171% higher than the prior corresponding half. The company delivered an interim dividend of 6 cents per share, 30% franked.

Wilsons equity strategist Rob Crookston recently touted “pricing power” as the “best defence against cost inflation” and named five stocks Wilsons holds, including IAG. He also noted IAG’s ability to raise premiums, stating:

Number 1 general insurer in Australia, which has been [raising] premium rates strongly to offset rising perils costs (albeit there is a timing lag to margins).

Even with higher premiums, customer retention rates remain high.

In the insurance sector overall, KMPG is forecasting there will be another 10% rise in premiums this year. KMPG Insurance partner Scott Guse said:

The expectation of increasing frequency and severity of natural hazards, rising reinsurance costs, increasing inflation, supply chain issues and labour shortages will continue to put upwards pressure on premiums pricing.

We anticipate that on average, premiums will rise by at least 10 percent throughout 2023

IAG share price snapshot

The IAG share price has climbed nearly 7% in the last 12 months.

This ASX 200 share has a market capitalisation of about $11.5 billion based on the current share price.

The post Insurance companies are raking it in, so should you buy ASX 200 shares like IAG right now? appeared first on The Motley Fool Australia.

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More reading

• The IAG dividend is being paid today. Here’s the latest
• 5 ASX 200 shares that inflation can’t touch: expert
• Warren Buffett is invested in IAG shares, should you be?

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price has been a strong performer this week.

Week to date, the lithium giant’s shares are up almost 13% to $4.00.

This means the Pilbara Minerals share price is now up 24.5% over the last 12 months.

Why is the Pilbara Minerals share price charging higher?

There have been a couple of catalysts for the strong rise by the Pilbara Minerals share price this week.

The first has been news that Liontown Resources Ltd (ASX: LTR) has received and rejected a takeover proposal from industry giant Albemarle. This gave the whole industry a lift and sent almost all ASX lithium shares higher.

In addition, Pilbara Minerals announced on Wednesday that its board has approved its production expansion plans. This will ultimately see the company’s spodumene production capacity increase to 1 million dry metric tonnes per annum in the coming years.

Should you invest?

The team at Citi has been looking at the production expansion news and appears pleased with the plans.

And while the broker highlights that its expansion plan is more costly than expected, it feels that it “highlights Pilgangoora’s top tier status.”

In response, Citi has lifted its longer term earnings estimates but has trimmed its near term valuation to reflect the higher costs. It explained:

As expected, PLS has given the P1000 project the green light for 1000ktpa of SC5.7. The FID provided clarity on the LOM outlook including implied head grades, recovery and operating costs. Capex of $560m is ~A$200m higher than consensus, but not surprising given the inflationary environment.

After accounting for capitalised stripping FY25+ opex is expected to come down compared to FY23 guidance; FY25-29 opex of US$430-470/t may prove to be conservative. Our EBITDA lifts +20% from FY25 on implied front-loaded higher grades from the pit. Higher capex trims ~10cps from our NAV, and opex another ~10cps.

This ultimately has led to Citi retaining its buy rating with a trimmed price target of $4.60. This implies potential upside of 15% for investors over the next 12 months.

The post Citi gives its verdict on the Pilbara Minerals share price appeared first on The Motley Fool Australia.

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More reading

• Best ASX lithium share to buy: Liontown Resources vs. Pilbara Minerals
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why ALS, Centaurus Metals, Pilbara Minerals, and Westgold shares are rising today
• Is the lithium price now on the way back up?

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 Scott Phillips.

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When it comes to dividends, it is hard to look beyond Rio Tinto Ltd (ASX: RIO).

Each year the mining giant rewards its shareholders with some of the largest dividends you will find on the Australian share market.

For example, last month when Rio Tinto released its full-year results, it declared a fully franked final dividend of US$2.25 per share.

This brought the full-year Rio Tinto dividend to US$4.92 per share, which equates to a total payout of US$8 billion or A$12 billion.

To put that into context, that’s the current market capitalisation of both lithium miner Pilbara Minerals Ltd (ASX: PLS) and airline operator Qantas Airways Limited (ASX: QAN).

Where is the Rio Tinto dividend heading?

The good news is that Goldman Sachs believes investors can expect more of the same for at least the next couple of years.

Its analysts expect an 8.3% increase in the Rio Tinto dividend to US$5.33 per share in FY 2023. This equates to A$7.93 and would mean a generous fully franked 6.8% yield.

Pleasingly, another increase is expected in FY 2024. Goldman is forecasting a 12.2% lift to US$5.98 per share (A$8.95 per share). Based on the current Rio Tinto share price of $117.07, this will mean a yield of 7.65%.

Finally, Goldman Sachs expects the Rio Tinto dividend to reduce to US$3.40 per share (A$5.09 per share) in FY 2025. While a dividend cut is disappointing, this still represents an attractive 4.35% dividend yield.

In summary, here’s what Goldman is forecasting:

• US$5.33 (A$7.93) per share in FY 2023
• US$5.98 (A$8.95) per share in FY 2024
• US$3.40 (A$5.09) per share in FY 2025

All in all, the next couple of years look good for income investors that own Rio Tinto shares. This may partly explain why Goldman Sachs has a buy rating and $140.40 price target on them.

The post Here’s the Rio Tinto dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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More reading

• Want $1,000 of passive income? Check out these ASX shares
• Goldman Sachs says these ASX dividend shares with 7%+ yields are buys
• Invested $7,000 in Rio Tinto shares 5 years ago? Here’s how much passive income you’ve earned
• Dividend devotee: I’d buy Rio Tinto shares for $2,000 of monthly passive income
• 2 ASX 200 mining shares to buy with huge upside potential: analysts

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 Scott Phillips.

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