The BHP Group Ltd (ASX: BHP) share price is sliding today amid wider market turmoil and falling iron ore prices.

BHP shares are down 1.21% and are currently trading at $43.31 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.92% lower.

Let’s take a look at what’s going on with the BHP share price today.

Iron ore prices fall

BHP is an iron ore-producing mining giant. However, BHP is not the only major iron ore producer trading lower today.

Rio Tinto Ltd (ASX: RIO) shares are down 1.27%, while Fortescue Metals Ltd (ASX: FMG) shares are sliding 3.57%.

Iron ore producers, including BHP, appear to be falling after the iron ore price fell overnight.

Iron ore futures dropped amid China lowering the price of steel products. In a research note, ANZ economist Madeline Dunk hinted iron ore prices could face more pain this year:

Iron ore futures fell sharply amid a weakening backdrop in China. Ten Chinese steel mills lowered their prices of steel products, according to Mysteel. At the same time, spot prices for rebar used in construction have slumped sharply.

The impact of China’s reopening may be short lived amid ongoing underlying issues in China’s property market.

This could lead to further weakness in the iron ore price this year.

The iron ore price is down 1.17% and is currently priced at US$127 a tonne, Trading Economics data shows.

The ASX is sliding today after US stocks plunged overnight amid the US Federal Reserve lifting rates by 25 basis points. The S&P 500 Index dropped 1.65%, the NASDAQ Composite fell 1.6%, and the Dow Jones Industrial Average fell 1.63%.

Commenting on the rates decision, the US Federal Reserve said “inflation remains elevated”, adding:

The committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

Share price snapshot

The BHP share price has risen 0.44% in the last year, but fallen 10% in the last month.

BHP has a market capitalisation of more than $219 billion based on the current share price.

The post Why is the BHP share price in the red today? appeared first on The Motley Fool Australia.

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• The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share?
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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 Washington H Soul Pattinson and Co Ltd (ASX: SOL) share price is trading in the green after the company posted a whopping 38% jump in profit for the first half, as The Motley Fool Australia reported earlier today.

Right now, Soul Patts shares are swapping hands for $28.66, 0.42% higher than they were at Wednesday’s close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.87% right now while the company’s home sector, the S&P/ASX 200 Energy Index (ASX: XEJ), has slumped 0.19%.

It comes as the investment house cuts its exposure to shares in favour of private equity and structured yield products.

Soul Patts share price outperforms on earnings release

The Soul Patts share price is rising on Thursday as the ASX 200 icon revealed it turned away from the market amid soaring inflation last half.

Though, it noted we’re “entering a stock pickers market” where value investors could reign supreme amid “increasing price for risk”.

Commenting on Soul Patts’ $1.3 billion of portfolio moves over the first half, CEO and managing director Todd Barlow said:

During the half we reduced our exposure to listed equities, particularly cyclicals and growth stocks, and invested over $400 million into private equity and structured yield products.

Around 20% of the portfolio is now weighted to alternative assets and cash, which do not re-rate as frequently as equities but are strategic for risk management and longer-term investment goals.

The company’s net asset value jumped 16% year-on-year during the half, helping it to up its interim dividend by 24% to 36 cents per share, fully franked.

And its strong performance didn’t end there. Its total portfolio outperformed the All Ordinaries Index (ASX: XAO) by 2% in February, with Soul Patts noting its defensive positioning is gaining traction in the current market.

Around 5% of the group was invested in its structured yield portfolio and another approximately 8% was housed in its private equity portfolio at the end of the half.

The investment house also bolstered its cash holdings by 257.7% over the period to reach $597.3 million – helped by the $88.5 million sale of the Castle Hill property.

The post Soul Patts share price gains as first-half profit jumps 38% appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended 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 Scott Phillips.

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The market may be tumbling again on Thursday, but that hasn’t stopped the Coles Group Ltd (ASX: COL) share price from pushing higher.

At the time of writing, the supermarket giant’s shares are up 0.5% to $17.79.

This means the Coles share price is now up 6.5% since the start of the year, which compares favourably to the performance of the ASX 200 index.

The benchmark index is down 1.2% year to date, which means an outperformance of almost 8%.

Why is the Coles share price outperforming?

There are a couple of reasons why the Coles share price is outperforming the market this year.

The first is the release of the company’s half-year results last month, which went down well with the market.

Coles reported a 3.9% increase in sales revenue to $20.8 billion and an 11.4% jump in net profit after tax to $643 million. This allowed the company’s board to declare a 36 cent per share interim dividend, which was up 9.1% year over year.

Also giving the Coles share price a boost has been its defensive qualities. In times of heightened economic and market volatility, companies with defensive earnings appeal to risk averse investors.

Coles has these qualities in spates. You only need to look at its performance during the pandemic to see this.

Can its shares keep rising?

The good news is that one leading broker believes there’s still plenty more upside left in the Coles share price.

According to a recent note out of Citi, its analysts have a buy rating and $20.20 price target on its shares. This implies potential upside of almost 14% for investors over the next 12 months.

In addition, Citi is forecasting fully franked dividends of 69 cents per share in FY 2023 and 71 cents per share in FY 2024. This represents attractive yields of 3.9% and 4%, respectively, which make the total potential return on offer with its shares even more sweeter.

The post Why is the Coles share price smashing the ASX 200 this year? 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 positions in and has recommended Coles 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 Block Inc (ASX: SQ2) share price is down 5.7% in morning trade.

The global buy now, pay later (BNPL) stock closed yesterday trading for $115.15 per share. Shares are currently swapping hands for $108.59 apiece.

This comes as the All Ordinaries Index (ASX: XAO) is also giving up some of its recent gains, down 0.9%.

Here’s what’s putting extra pressure on the ASX BNPL share today.

Why is the Block share price plunging today?

The Block share price is falling on the back of the latest interest rate hike from the United States Federal Reserve, announced overnight Aussie time.

The latest 0.25% rate boost – the ninth consecutive hike from the central bank – takes the official US cash rate to 5.0%.

Though widely anticipated, the rate hike saw the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) close down 1.6%.

As you may know, Block, which acquired Afterpay in January last year, is dual-listed in Australia and the United States. And the Block share price fell 6.2% on the NYSE yesterday.

The BNPL company has proven highly sensitive to the higher interest rate environment.

Higher rates throw up some stiff headwinds to growth stocks priced with future earnings in mind. As the cost of money rises, so too does the cost of investing in that future revenue.

And higher rates, of course, also will increase the cost of servicing the company’s debts. Not to mention likely see an increase in bad debts from some of its already stressed customers.

The Block share price may be even more sensitive to rate increases as regulators debate stringent new regulations for the pay by instalment sector. Those may subject Block and other BNPL companies to the same rules as credit card companies.

How has Block been performing?

As you can see in the chart below, the Block share price fell off a cliff during the early months of global interest rate increases. 2023 has been far more rewarding for the shareholders, with the stock up 18% year to date despite today’s slide.

The post The Block share price just plummeted 6%. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Block. The Motley Fool Australia has positions in and has recommended Block. 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 looking for a passive income boost to combat the cost of living crisis, then read on!

Listed below are three of the best ASX dividend shares to buy now according to analysts at Morgans.

Here’s why putting your money to work in these shares could be a good idea right now:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The first ASX dividend share to buy according to Morgans is Dalrymple Bay Infrastructure. The broker has an add rating and $2.63 price target on its shares.

It believes the coal terminal operator is well-placed to pay some big dividends in the coming years. It commented:

DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. Following the successful outcome to its customer tariff negotiations, DBI should be able to deliver resilient, inflation-linked, and very high margin revenues and has provided distribution guidance that implies c.8% cash yield growing at 3-7% pa.

As for income, it is forecasting dividend yields of 8.1% and 8.45% in FY 2023 and FY 2024, respectively.

Dexus Industria REIT (ASX: DXI)

Another passive income share to buy according to Morgans is this industrial property company. It has an add rating and $3.37 price target on its shares.

The broker likes the company due to its attractive valuation and yield, as well as the positive outlook for industrial property. It explained:

DXI’s portfolio is valued at $1.6bn across 93 properties and is weighted 89% towards industrial and logistics assets. The weighted average cap rate is around 5.1%; WALE +6 years; and occupancy 97.4%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium term growth opportunities via the development pipeline as well as rental growth via its industrial portfolio. Gearing is around 23%.

Morgans is forecasting dividend yields of 6.15% in FY 2023 and 6.25% in FY 2024.

Universal Store Holdings Ltd (ASX: UNI)

Finally, another passive income option for investors is this youth fashion retailer. Morgans has an add rating and $7.00 price target on its shares.

It likes the company due to its exposure to younger consumers, which it expects to continue spending despite the tough economic environment. It commented:

Universal Store (UNI) is one of the largest and fastest growing fashion retailers in Australia. Through a national network of over 100 stores and a successful online platform, UNI curates a diverse range of men’s and women’s fashion, shoes and accessories from local and international brands as well as its own private labels. UNI’s stores trade under the Universal Store, Perfect Stranger and THRILLS banners. UNI has opportunities to grow steadily through the rollout of bricks and mortar stores, increased digital penetration and expansion of wholesale channels. While we recognise the general risk around a decline in consumer expenditure on discretionary categories like apparel, we highlight that the youth demographic is likely to be more resilient.

In respect to dividends, Morgans expects fully franked dividend yields of 5.9% in FY 2023 and 6.85% in FY 2024.

The post Huge yields! These are the best ASX passive income shares to buy now: Morgans 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 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 Insurance Australia Group Ltd (ASX: IAG) dividend is due to hit bank accounts today.

IAG shares have descended 2.31% in the year to date to their current price of $4.62 apiece. In today’s trade, the IAG share price is down 0.22%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.92% in morning trade.

Let’s take a look at the details of the IAG dividend.

IAG dividend due to be paid today

IAG investors are due to receive an interim dividend of 6 cents per share today, 30% franked.

Today’s interim dividend corresponds to the 6 cents per share dividend paid out in the first half of 2022. However, in H122, the dividend was unfranked.

In the second half of 2022, IAG paid a dividend of 5 cents per share.

IAG reported a net profit after tax (NPAT) of $468 million in the first half of 2023, a 171% boost on the prior corresponding half. This result included a post-tax COVID business interruption provision benefit of $252 million.

The 2023 interim dividend reflects a payout ratio of 68% of NPAT, adjusted to reflect the after-tax business interruption.

This is in line with IAG’s dividend policy to pay 60 to 80% of NPAT, excluding the after-tax impact.

Commenting on the H122 results in February, IAG managing director and CEO Nick Hawkins said:

We delivered an improved net profit after tax and reported margin in the first half in challenging economic conditions.

Looking at IAG’s dividend history, in the 2022 year, IAG paid total dividends of 11 cents per share, including the 6 cents per share interim dividend and 5 cents per share final dividend.

In FY21, IAG paid total dividends of 20 cents per share.

However, in FY20, amid the COVID-19 outbreak, the company paid an interim dividend of 10 cents per share and did not pay a final dividend.

Back in FY19, IAG paid an interim dividend of 12 cents per share, a final dividend of 20 cents per share, and a special dividend of 5.5 cents per share.

Share price snapshot

The IAG share price rose 1.54% in the last year. However, it has slipped 3.55% in the last month.

For perspective, the ASX 200 has shed 5.64% in the past year.

IAG has a market capitalisation of more than $11 billion based on the current share price.

The post The IAG dividend is being paid today. Here’s the latest appeared first on The Motley Fool Australia.

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• 5 ASX 200 shares that inflation can’t touch: expert
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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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After starting the year strongly, a number of ASX uranium shares have pulled back in recent weeks.

This has caught the eye of Bell Potter, with the broker suggesting that investors take advantage of this weakness to pick up shares.

It highlights that “ASX uranium stocks are off to a wobbly start in 2023, despite fundamentals remaining positive.”

Which ASX uranium shares are buys?

According to the note, the broker has named Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN) as its top two uranium shares to buy now, with Deep Yellow Limited (ASX: DYL) also a worthy candidate.

It has a speculative buy rating and $3.51 price target on Boss Energy shares, which implies potential upside of 63% over the next 12 months.

Whereas for Paladin Energy, the broker has a speculative buy rating and 99 cents price target on its shares. This implies potential upside of 69% between now and this time next year.

Finally, it has a speculative buy rating and $1.04 price target on Deep Yellow shares, which suggests almost 100% upside for investors.

Bell Potter explained why it is bullish on these uranium shares, it said:

BOE and PDN are our top two picks for restart operations. BOE is expecting to restart its Honeymoon uranium mine in Dec-23, with the next key catalyst being announcement of binding offtake agreements. PDN is expecting to restart the globally significant Langer Heinrich Mine in the Mar-24 quarter, with utility offtake contracts secured covering the majority of production over CY2024 and CY2025. In the developers/explorers space we like Deep Yellow Ltd (DYL – Buy Speculative, valuation $1.04/sh) on a valuation basis with two advanced projects, Tumas and Mulga Rock, looking to feed into the market towards the middle/end of the decade.

The post Buy these ASX uranium shares before it’s too late: Bell Potter 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 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 Core Lithium Ltd (ASX: CXO) share price hit a new 52-week low today despite the S&P/ASX 200 Index (ASX: XJO) battery metals miner announcing the sale of its maiden production.

Chinese industrial group Sichuan Yahua has agreed to buy the lithium produced during the Finniss Project’s dense media separation (DMS) commissioning, and some more on top.

Right now, the Core Lithium share price is 75.5 cents, 4.4% lower than its previous close.

That’s a slight improvement on its intraday (and new 52-week) low of 75 cents – marking a 5% tumble.

Let’s take a closer look at the milestone agreement announced by the newest ASX 200 lithium producer.

Core Lithium signs milestone sales agreement

The Core share price plummeted to a long-forgotten low this morning after the company revealed Yahua has loaded up on even more Finniss lithium.

The lithium miner announced its maiden spodumene concentrate production late last month. It expects to produce around 3,500 tonnes of the material during its DMS commissioning phase.

And now that lithium has found a home. Yahua will buy the parcel on a free on board (FOB) basis, with shipment tipped for the end of next month.

The Chinese company has also signed for the purchase of an extra 15,000 tonnes of the material ­– expected to be mined from the Finniss Project’s Grants pit – under a pre-payment arrangement.

It will pay for 80% of the volume in April and the rest upon shipment. The price payable is linked to the commodity market with no floor or ceiling.

That’s on top of the offtake agreement Yahua signed in 2019, set to see it snapping up 300,000 tonnes of Finniss lithium over four years.

Core Lithium CEO Gareth Manderson commented on the news seemingly weighing on the company’s share price today, saying:

We are pleased to put these mutually beneficial agreements in place which sees us sell our high quality spodumene concentrate to a valued customer.

The prepayment provides additional working capital and assists Core to manage our cash flow as we continue to ramp up operations.

Core Lithium share price snapshot

Today’s tumble has only added to the lithium stock’s recent troubles.

It’s currently down 25% year to date and 39% since this time last year.

For comparison, the ASX 200 is trading flat year to date and has fallen 6% over the last 12 months.

The post Core Lithium share price tumbles 4% on milestone sales agreement 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. 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) is down 0.88% in morning trade on Thursday.

This comes on the heels of the latest interest rate increase by the United States Federal Reserve, announced overnight Aussie time.

ASX 200 slides on US rate hike

Having gained 0.9% yesterday, the ASX 200 is following US markets lower today after the Fed boosted rates in the world’s top economy by another 0.25%.

The Federal Open Market Committee (FOMC) members were unanimous in their decision.

The latest lift makes it nine meetings in a row that the FOMC has boosted rates. The official US interest rate now stands at 5%. That’s the highest borrowing costs since September 2007, shortly before the onset of the GFC.

The move was widely expected, with some 80% of polled economists predicting a quarter-percentage increase.

Some ASX 200 investors will still be disappointed, having hoped for a pause in the wake of the banking crisis unleashed by the collapse of Silicon Valley Bank.

However, Fed chair Jerome Powell indicated his confidence that the US banking sector is sound and can withstand additional rate hikes if needed to tame still-hot inflation.

“We are committed to restoring price stability, and all of the evidence says that the public has confidence that we will do so,” Powell said. “It is important that we sustain that confidence with our actions as well as our words.”

According to Bloomberg economists Anna Wong, Stuart Paul, and Eliza Winger:

A 25-basis-point hike at the March meeting shows the FOMC is resolved to prioritize use of monetary-policy tools to fight too-high inflation. It also signalled their confidence in the US banking system.

What can ASX 200 investors expect next?

Powell remained committed to bringing inflation back within the Fed’s target range, but his language took a decidedly dovish turn.

“We no longer state that we anticipate ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy firming may be appropriate,” he said.

However, ASX 200 investors shouldn’t expect any rate cuts from the world’s most influential central bank this year, with Powell saying the FOMC members “just don’t” see that happening in 2023.

Rather than refer to additional rate hikes on the horizon, the Fed stated it “anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time”.

Officials expect the US benchmark rate will stand at 5.1% at the end of the year and average 4.3% in 2024.

What the experts are saying

Many analysts are concerned that the Fed may be too optimistic in its assessment of the health of the US and international banking sectors.

That could lead to the Fed easing sooner than expected, which would likely see US stocks and the ASX 200 rally.

According to ING chief international economist James Knightley (quoted by Bloomberg):

The Fed appears quietly confident the economy won’t be heavily disrupted by recent banking sector woes. We are a more pessimistic. Our concern was that this has been the most aggressive monetary policy tightening cycle for 40 years and by going harder and faster into restrictive territory you naturally have less control over the outcome.

Portfolio manager at Integrity Asset Management Joe Gilbert added:

Powell is trying to have it both ways. He is trying to appease both the hawks and the doves. This ultimately may be the last rate hike this year, but Powell has to make the market believe that it isn’t because that would loosen financial conditions too much.

The softening to come in the economy from the banking collapses has yet to be felt and the Fed knows this but they cannot be alarmists.

The post ASX 200 tumbles on US Fed interest rate hike. Now what? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Weebit Nano Ltd (ASX: WBT) share price has avoided the market weakness on Thursday.

That’s because the company requested a trading halt prior to the market open.

Why is the Weebit Nano share price frozen?

The Weebit Nano share price was slammed into a trading halt this morning after the company took advantage of a sensational rise over the last 12 months to launch an inevitable capital raising.

As you can see below, the semiconductor company’s shares have more than doubled over the last 12 months.

Though, as you can also see on that chart, Weebit Nano could have got so much more bang for its buck if it had launched this capital raising sooner. The Weebit Nano share price peaked at $9.03 earlier this month, whereas it closed the last session 38.5% lower than this level at $5.54.

It seems that some investors suspected that a capital raising was coming and sold off their shares.

Why is Weebit Nano raising capital?

The company has yet to reveal why it is raising capital, how much it is raising, and, importantly, at what price it is seeking to raise funds.

All we know at this stage, is that it is proposing a capital raising comprising an institutional placement and a share purchase plan.

Weebit Nano has requested that the trading halt remain in place until the earlier of the opening of trading on Friday or the completion of the institutional placement.

Interestingly, the company certainly isn’t short of cash. At the end of December, it was sitting on a cash balance of approximately $45 million. So, it will be interesting to see what it plans to do with the proceeds of this capital raising.

The post Why is the Weebit Nano share price frozen? appeared first on The Motley Fool Australia.

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More reading

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• Weebit Nano share price just surged 7% on product commercialisation news
• Down 17% in 2 days, has the dream run for Weebit Nano shares finally ended?
• Up 59% in a month, guess which ASX All Ords share just hit another multi-year high

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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