Investors that want the dividend from Bendigo and Adelaide Bank Ltd (ASX: BEN) shares will need to be quick because the ASX bank share is about to allocate its dividend.

Bendigo Bank recently reported its FY23 half-year result and the bank also announced its interim dividend for investors.

Bendigo Bank ex-dividend date incoming

There is a cut-off date for when investors need to own Bendigo Bank shares. This is called the ex-dividend date.

Investors need to own shares before the ex-dividend date to be entitled to the dividend of 29 cents per share.

The ex-dividend date for Bendigo Bank’s dividend is 6 March 2023. That means investors need to own shares by the end of trading today because Monday is the ex-dividend date.

The payment date for the dividend is 31 March 2023.

Earnings recap

The interim dividend was increased by 9.4% to 29 cents per share. This came after a 22.2% increase in the earnings per share (EPS) to 52.2 cents.

Total income on a cash basis increased by 14.5% to $958.2 million. Meanwhile, the cost to income ratio was 54.6%, an improvement of 500 basis points.

A helpful part of the result was that the net interest margin (NIM) increased by 19 basis points (0.19%) to 1.88%. The NIM is a key profitability measure which tells investors how much profit a bank is making on its lending. While the revenue is from the lending, the cost of the lending is the funding, such as deposit savings.

The bank’s residential lending grew at the same pace as the overall loan system, while Bendigo Bank’s total lending fell 1.1%.

Total cash earnings increased 22.9% to $294.7 million, while statutory net profit after tax (NPAT) soared 49.3% to $249 million.

The Bendigo Bank CEO and managing director Marnie Baker said:

We are Australia’s most trusted bank with market leading customer advocacy and satisfaction scores. Our customer numbers are growing because customers are attracted to our products, digital capability, service levels and our longstanding purpose of feeding into the prosperity of the community.

At the full year result I spoke of our strengthened focus on returns, execution and sustainability. To the first focus area, through careful management of volumes and margins and prudent cost management we have delivered a 145- basis point increase in our ROE and a 500-basis point improvement in our cost to income ratio.

Our business must also be sustainable. Residential lending is growing at system on a rolling 12-month basis. Over the half it has tapered as we managed the trade-off between volumes and margins. We are competing selectively and seeking opportunities that deliver appropriate returns for our business and its shareholders.

Commsec numbers currently suggest that Bendigo Bank is going to pay a dividend per share of 60 cents in FY23, which is a potential grossed-up dividend yield of 9%.

Bendigo Bank share price snapshot

Since the start of the year, Bendigo Bank shares are flat in 2023 to date.

The post Hoping to bag the boosted Bendigo Bank dividend? Here’s how appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 6 ASX 200 directors buying up their company shares in the past week
• Here are the top 10 ASX 200 shares today
• Bendigo Bank share price volatile amid 50% profit boost
• 5 things to watch on the ASX 200 on Monday
• Yields of up to 8%! Should I buy these ASX 200 dividend stocks in February?

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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/INaZmQ0

The Australian mining sector has been booming again this week following the release of strong economic data out of China.

If you’re wanting to gain exposure to the sector, then you may want to check out the three ASX 200 mining shares listed below. Here’s why they have been named as buys:

Allkem Ltd (ASX: AKE)

The first ASX 200 mining share to consider is Allkem. It is one of the world’s largest lithium miners with projects in Argentina, Australia, and North America that provide it with significant production growth potential. It is because of this that Goldman Sachs is bullish on Allkem even though it is very bearish on lithium prices. It notes that “Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production.”

Goldman has a buy rating and $15.40 price target on Allkem’s shares.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX 200 mining share to look is Pilbara Minerals. It could be a top option if you’re bullish on lithium and expect demand for the battery making ingredient to outstrip supply and keep prices higher for longer. Morgans believes that will be the case and suspects that “demand in the Chinese market could increase from March onwards.”

Morgans currently has an add rating and $5.30 price target on this lithium miner’s shares.

South32 Ltd (ASX: S32)

A final ASX 200 mining share to consider is South32. It is a diversified mining and metals company that produces a range of commodities including aluminium, copper, manganese, and nickel. As these metals will play a key role in the decarbonisation of the planet, South32 looks well-placed for the long term. Morgans is also a fan of South32 and believes its portfolio transformation is “substantially boosting group earnings quality, as well as S32’s risk and ESG profile.”

Morgans currently has an add rating and $5.60 price target on the miner’s shares.

The post Buy these ASX 200 mining shares before they boom: expert appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top ASX dividend shares to buy in March 2023
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why BHP, Dicker Data, South32, and Winsome Resources are pushing higher
• Why Brainchip, Coles, Karoon Energy, and Pilbara Minerals shares are tumbling

Motley Fool contributor James Mickleboro has positions in Allkem. 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.

from The Motley Fool Australia https://ift.tt/KzxPfmt

If you’ve owned Northern Star Resources Ltd (ASX: NST) shares for the last 10 years, you’ve likely been pretty happy with your investment.

The gold miner’s stock has leapt a whopping 1,133% in that time. That’s right, it’s a true 10-bagger.

10 years ago, a $1,000 investment likely would have seen a buyer with 1,123 Northern Star shares.

Today, that parcel would be worth $12,319.31. The Northern Star share price last traded at $10.97.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has jumped around 43% in that time.

What happens when we also factor in all the dividends offered by the now-ASX 200 gold giant over the last 10 years? Let’s take a look.

Dividends offered to those invested in Northern Star shares

Here are all the dividends handed to Northern Star investors since March 2013:

Northern Star dividends’ pay date	Type	Dividend amount
September 2022	Final	11.5 cents
March 2022	Interim	10 cents
September 2021	Final	9.5 cents
March 2021	Interim	9.5 cents
September 2020	Final and special	9.5 cents and 10 cents
July 2020	Interim	7.5 cents
November 2019	Final	7.5 cents
April 2019	Interim	6 cents
September 2018	Final	5 cents
April 2018	Interim	4.5 cents
September 2017	Final	6 cents
April 2017	Interim	3 cents
November 2016	Special	3 cents
October 2016	Final	4 cents
April 2016	Interim	3 cents
October 2015	Final	3 cents
April 2015	Interim	2 cents
October 2014	Final	2.5 cents
April 2014	Interim	1 cent
September 2013	Final	2.5 cents
April 2013	Interim	1 cent
Total:		$1.215

As readers can see, each Northern Star share has yielded $1.215 of passive income since early 2013.

That means our figurative parcel has likely provided $1,364.45 of dividend income over its life – that’s more than the initial investment!

It also leaves the stock boasting a total return on investment (ROI) of around 1,269%. That’s certainly nothing to scoff at.

And that’s before we consider the franking credits attached to all of those payouts. They might have brought additional benefits for some investors at tax time.

Not to mention, if one were to have reinvested those dividends – perhaps through the company’s dividend reinvestment plan (DRP) – they could have realised some major compounding.

Right now, Northern Star shares offer a 1.96% dividend yield.

The company recently declared its next dividend, worth 11 cents to be paid later this month. It will trade ex-dividend on Tuesday.

The post Did you buy $1,000 of Northern Star shares 10 years ago? If so, here’s how much dividend income you’ve earned appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 4 ASX 200 mining shares to buy for takeover potential: expert
• 5 things to watch on the ASX 200 on Wednesday
• Why Inghams, Kelsian, Nuix, and Perenti shares are racing higher

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.

from The Motley Fool Australia https://ift.tt/nd0RHOm

My portfolio is designed to try to provide a combination of dividends, dividend growth and share price growth. None of those things is guaranteed, but I think the ASX dividend share names I’ve invested in can provide a good source of passive income.

We should expect that the share market is going to see some volatility each year. There is a changing mix of buyers and sellers each day, combined with changing headlines in the news.

But, I’ve focused on ASX dividend shares that aim to provide investors with growing dividends. That way, I can concentrate on my growing dividend cash flow and not worry what the share price is going to do next.

Washington H. Soul Pattinson and Co. Ltd (ASX:SOL)

I think that Soul Pattinson has the best record when it comes to dividend growth. The business has grown its dividend every year since 2000. No other ASX share has dividend growth consistency like this company.

It owns a portfolio of assets – both listed and unlisted. The portfolio is diversified across sectors like telecommunications, building products, resources, agriculture, financial services and swimming schools.

The ASX dividend share receives dividends from its portfolio each year. The majority of that money is sent to shareholders as a growing dividend, with the rest kept to re-invest in more opportunities to enable further growth.

The company’s FY22 ordinary dividend per share of 72 cents translates into a grossed-up dividend yield of 3.6%.

Duxton Water Ltd (ASX: D2O)

Duxton Water is a unique company on the ASX – its purpose is to own water entitlements and lease them to farmers on contracts of various lengths.

The ASX dividend share says that it has an “intention to pay a consistent and growing dividend stream”. It just declared a dividend per share of 3.5 cents. It plans to increase this payment by 0.1 cents per share every six months to the 2024 interim payment which is guided as 3.7 cents per share.

Water entitlements could become increasingly important as more water-hungry crops are planted, such as almonds.

I think water entitlements are a good way to indirectly invest in the agricultural industry.

With the reported imminent end of La Nina – the wetter weather system – this could lead to less rain, pushing up water prices.

The FY23 grossed-up dividend yield from Duxton Water is expected to be 5.7% and the company has indicated an intention to lower debt because of the higher interest rates.

Brickworks Limited (ASX: BKW)

Brickworks is one of the largest manufacturers of building products in Australia, with offerings such as bricks, paving, masonry and roofing.

Interestingly, the ASX share owns a significant chunk of Soul Pattinson shares, which provides Brickworks with growing dividends and stability – very handy with the cyclical nature of building products.

But, for me, without praising Soul Pattinson again, another very positive side of Brickworks is that it owns half of an industrial property trust where advanced warehouses are being built on excess Brickworks land that has been sold into the trust.

Businesses like Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Amazon are some of the tenants in the huge warehouses.

Brickworks said that the property portfolio’s valuation has seen the “positive impact of rental growth outstrip the effect of capitalisation rate expansion.” It also has a large development pipeline. At the end of the FY23 first half, Brickworks’ net property trust assets are expected to exceed $2.2 billion and this could keep rising as properties are completed.

The property trust rental profit and Soul Pattinson’s dividend have helped increase the Brickworks dividend steadily over the past several years.

Brickworks currently has a grossed-up dividend yield of 3.7% and it hasn’t cut its dividend for over 40 years.

The post 3 ASX shares I own for passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Don’t be deceived by ASX dividends
• Should I target $1,000 of annual dividends by investing $10,000 today?
• If inflation has peaked, these are the ASX 200 shares I’ll snap up
• Invest $1,500 each month in this ASX dividend stock to actually create a $1 million portfolio
• ASX investors: 3 of the best Aussie dividend stocks to buy this year

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Brickworks, Duxton Water, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Coles Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Amazon.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/szEnHxB

If you’re looking to boost your passive income, then you may want to check out the ASX dividend shares listed below.

Goldman Sachs has tipped these ASX shares to pay their shareholders very attractive dividends this year and next. Here’s what you need to know about them:

Rio Tinto Ltd (ASX: RIO)

The first ASX dividend share for investors to look at is mining giant Rio Tinto.

It could be a top option for investors that are not averse to investing in the mining sector. Especially given the attractive yields its shares are tipped to provide in the coming years.

In addition, Goldman Sachs believes that Rio Tinto shares are in the buy zone due to their “compelling valuation” and the company’s “return to production growth in 2023.”

Its analysts are forecasting fully franked dividends per share of US$4.23 in FY 2023 and then US$5.46 in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $124.44, this will mean yields of 5% and 6.5%, respectively.

Goldman Sachs has a buy rating and lifting its price target to $131.70.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been named as a buy by Goldman Sachs is youth fashion retailer Universal Store.

It is a fan of the company due to its exposure to younger consumers, which are less impacted by rising mortgage payments. Combined with an increase to the minimum wage, the broker believes they will continue to spend as normal despite the cost of living crisis.

This certainly has been the case so far in FY 2023. Last month, the company released its half-year results and reported a 34.5% increase in sales to $145.7 million and a 43.2% jump in earnings before interest and tax (EBIT) to $28.5 million.

In response to the result, Goldman retained its buy rating with an improved price target of $8.05.

As for dividends, its analysts now expect fully franked dividends of 27 cents in FY 2023 and 34 cents in FY 2024. Based on the latest Universal Store share price of $5.47, this equates to yields of 4.9% and 6.2%, respectively.

The post Buy Rio Tinto and this ASX dividend share: Goldman Sachs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Morgans names 2 ASX dividend shares to buy with big yields
• I would invest $10,000 into these ASX shares in March
• What made the Rio Tinto share price slide 9% in February?

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 Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Prq25ke

Small-cap specialist Elvest fund beat its benchmark by 150 basis points in February.

Both ASX shares and bonds “sold off sharply” over the month, according to the portfolio managers, which wiped out some of the significant gains from January.

“Sentiment worsened in response to a more hawkish tone set by central banks, including the RBA, suggesting interest rates will remain higher for longer to tame inflation,” the Elvest team stated in a memo to clients this week.

Amid the macroeconomic doom and gloom, there were some gems found in reporting season.

“A subset of small caps continue to thrive, and the fund is well positioned to take advantage of any further volatility that may arise in coming months.”

The Elvest team revealed three of its ASX shares that affirmed its conviction with impressive market updates:

Revenue up, cash flow up: what more can you ask for

Insurance repairer Johns Lyng Group Ltd (ASX: JLG) is the Elvest fund’s third-largest holding, and that faith will continue after a pleasing update.

“Johns Lyng delivered a large revenue and cash flow beat, driven by higher catastrophe (CAT) work resulting from the 2022 flooding events in NSW and VIC,” read the Elvest memo.

“Management upgraded FY23 guidance for revenue and EBITDA by 11% and 5.5%, respectively.”

Despite all the recent La Nina catastrophe work, the Johns Lyng share price is 21% lower than it was 12 months ago, providing an attractive entry point for investors.

Big second half coming for this software company

Mining software maker RPMGlobal Holdings Ltd (ASX: RUL) presented “a solid first half result”, according to the Elvest analysts.

“[RPMGlobal] reiterated FY23 EBITDA guidance of $14.2 million, up 215% on FY22,” read the memo.

“RPMGlobal has a large pipeline led by its mobile asset maintenance solution, AMT, which enjoys a dominant market position.”

Similar to Johns Lyng, the RPM stock price is about 20% down on a year ago.

The Elvest team claimed that a nice little boost is coming its way for the next financial update.

“As most of RPMGlobal’s software is billed after 31 December, cash flow has a strong second half skew.”

The tech stock remains Elvest fund’s fifth-largest holding.

150% boost in revenue, plus more to come

Helloworld Travel Ltd (ASX: HLO) has broken the hearts of many buy-and-hold investors, with its share price halving over the past five years.

But the travel agent has enjoyed a phenomenal 71% rise so far in 2023.

It’s not a surprise for the Elvest team though.

“Helloworld swung into profitability in the first half of FY23 on 150% higher revenues,” read the memo.

“There remains significant pent-up demand, especially among older (mortgage-free) travellers, which is Helloworld’s primary customer cohort.”

The Elvest fund managers noted the company improved its earnings forecast.

“Management upgraded FY23 EBITDA guidance by 25% (at the midpoint), to a range of $28 million to $32 million.”

The post 3 small-cap ASX shares flying high after reporting season: Elvest appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are my top ASX 200 growth shares to buy today
• 7 more ideas for buying ASX shares this reporting season: expert
• Experts name 2 ASX All Ords shares to buy after their excellent results
• Here are the top 10 ASX 200 shares today
• Why Hub24, Johns Lyng, Judo Capital, and Magnis shares are charging higher

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group and RPMGlobal. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Helloworld Travel, Johns Lyng Group, and RPMGlobal. The Motley Fool Australia has positions in and has recommended Helloworld Travel. The Motley Fool Australia has recommended Johns Lyng Group and RPMGlobal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VRcr6G0

On Thursday, the S&P/ASX 200 Index (ASX: XJO) recorded the smallest of gains. The benchmark index rose 3.8 points to 7,255. points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.35% higher this morning. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 0.5%, and the NASDAQ index is up 0.5%.

Oil prices climb

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$78.07 a barrel and the Brent crude oil price is up 0.4% to US$84.63 a barrel. Chinese demand optimism has lifted prices this week.

Miners lift

It could be a decent finish to the week for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). In late trade on the NYSE, the miner’s shares are pushing higher again. The BHP share price is up 3% and the Rio Tinto share price is up 1.5%.

Gold price edges higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,842.2 an ounce. US dollar and bond yields strengthened and put pressure on gold.

Shares going ex-dividend

A number of ASX 200 shares are trading ex-dividend this morning and could drop into the red. This includes fuel retailer Ampol Ltd (ASX: ALD), retirement village company Lifestyle Communities Ltd (ASX: LIC), media company Nine Entertainment Co Holdings Ltd (ASX: NEC), and wine giant Treasury Wine Estates Ltd (ASX: TWE).

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• BHP share price on track for biggest daily gain in almost four months
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX shares declared a record $98b of dividends last year. Do you own the market’s biggest payer?
• ‘Now your total return in stock markets is going to come much more from dividends’: Wall Street fundie

from The Motley Fool Australia https://ift.tt/pOjerk8

This week, Westpac predicted the Reserve Bank will roll out no less than seven interest rate cuts throughout 2024 and 2025. If these eventuate, they will certainly bring some welcome relief for Aussie homeowners, who have been grappling with the rising cost of living and surging mortgage repayments since May 2022.

But we still have 2023 to get through. And unfortunately, on that front, the news is slightly less rosy.

Westpac is tipping two more rises this year and expects the cash rate to peak at 4.1% in June. Australia’s oldest bank says that’s where rates will stay for the remainder of the year, with the first cut not expected until March next year. 

One way to help ease the sting of inflation is with some additional income. But if you’re already working as hard as you can, and don’t have time for a side hustle, what then?

ASX dividend shares could be the answer. 

So, we asked our Foolish writers which ASX dividend stocks they think are worth buying in March for a passive income boost. Here is what they said:      

7 best ASX dividend shares for March 2023 (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $177.68 million
• Super Retail Group Ltd (ASX: SUL), $2.93 billion
• Charter Hall Long WALE REIT (ASX: CLW), $3.29 billion
• Pilbara Minerals Ltd (ASX: PLS), $12.62 billion
• Coles Group Ltd (ASX: COL), $24.08 billion
• Woolworths Group Ltd (ASX: WOW), $44.73 billion
• Westpac Banking Corp (ASX: WBC) $77.45 billion

(Market capitalisation as of 2 March 2023)

Why our Foolish writers love these ASX passive-income stocks

Bailador Technology Investments Ltd

What it does: Bailador is a growth capital fund focused on the IT sector. It looks to invest between $5 million and $20 million into tech companies seeking growth-stage investment.

Bailador prefers relatively young businesses with proven business models and “attractive unit economics”. It also likes founder-led companies with international revenue generation, a significant market opportunity, and the ability to generate repeat revenue.

By Tristan Harrison: I like the investment style of Bailador, which has enabled its portfolio to perform well over the last three years, delivering an average annual return of 13.9%.

The company’s dividend policy is to pay a fully-franked dividend yield of 4% per annum of pre-tax net tangible assets (NTA), paid semi-annually.

Its pre-tax NTA was $1.79 at 31 January 2023. But, because the latest Bailador share price at the time of writing was $1.22 – a 32% discount to the latest stated NTA – the yield on the actual share price is around 5.9%, or 8.4% grossed-up for franking credits.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Super Retail Group Ltd

What it does: You might know this company by its unmistakable red, yellow, and white automotive brand, Supercheap Auto. However, Super Retail Group is much bigger than its revving roots.

Today, it houses some of the strongest brands in Australian retail, including Rebel, BCF, and Macpac, in addition to Supercheap Auto.

By Mitchell Lawler: The latest half-year results from Super Retail Group were remarkably good, demonstrating the resiliency and diversity that Anthony Heraghty (CEO) and the team have built in the group.

Normalised earnings increased 36% on the prior corresponding year, adding to a commendable history of growth. Yet, the company trades at a price-to-earnings (P/E) ratio of around 11 times. While this is roughly in line with the industry average, I believe it underappreciates the quality of the four individual brands.

In my opinion, the sum of the parts should skew the P/E ratio more toward 15 – placing the valuation closer to $4.1 billion than its current $2.9 billion.

Super Retail shares are currently offering a dividend yield of 5.3%. Remember, the stock’s ex-dividend date is just around the corner, 8 March.

Motley Fool contributor Mitchell Lawler does not own shares in Super Retail Group Ltd.

Charter Hall Long WALE REIT

What it does: Charter Hall Long WALE REIT is just that – a real estate investment trust (REIT) focused on properties with long-weighted average lease expiries (WALE). As of the end of the first half, the REIT boasted 99.9% occupancy and an average WALE of nearly 12 years.

By Brooke Cooper: The Charter Hall Long WALE REIT share price has struggled lately, falling nearly 12% over the last 12 months, alongside the S&P/ASX 200 Index (ASX: XJO) real estate sector.

But soaring inflation and rising interest rates weighing on the sector don’t pose such a threat to this REIT.

Its tenants undergo annual rent increases, with half linked to CPI and the other half fixed at average increases of 3.1%.

And it’s also tipped to grow its dividends. Citi forecasts the REIT to pay 28 cents per share this financial year. At that rate, Charter Hall Long WALE could boast a 6.2% dividend yield at its current share price.

Motley Fool contributor Brooke Cooper does not own units in the Charter Hall Long WALE REIT.

Pilbara Minerals Ltd

What it does: Pilbara Minerals’ primary focus is its 100%-owned Pilgangoora Lithium-Tantalum Project, located in Western Australia. The project is the world’s largest independent hard-rock lithium operation.

By Bernd Struben: Pilbara Minerals is capitalising on the massive growth in electric vehicles (EVs) and grid storage batteries, which is likely to see global lithium demand continue to increase.

Last week, the company reported a 989% year-on-year increase in half-year net profit after tax (NPAT). Management also declared Pilbara’s inaugural dividend of 11 cents per share (cps), fully franked.

CEO Dale Henderson called it “a huge milestone”. He said with “massive growth steps in the months and years ahead, this is just the beginning”.

Indeed, analysts at Goldman Sachs forecast Pilbara will pay a final dividend of around 20 cps, bringing the full-year payout to 31 cps. That equates to a 7.7% yield at the current share price.

Pilbara Minerals shares have gained 45% in 12 months.

Motley Fool contributor Bernd Struben does not own shares in Pilbara Minerals Ltd.

Coles Group Ltd

What it does: Coles Group is an ASX dividend share that needs little introduction. It is Australia’s second-largest grocer and also has a significant presence in the takeaway alcohol market.

By Sebastian Bowen: This ASX 200 dividend heavyweight’s income chops seem to go from strength to strength. Just last month, Coles delivered its latest earnings report.

Aside from announcing healthy rises in revenue and profits, Coles also increased its interim dividend yet again by 9.1% to 36 cents per share, fully franked.

This continues the pleasing pattern we have seen from this blue-chip share, which has ratcheted up its dividend every six months since floating on the ASX in its own right.

With inflation and interest rates still on the boil, I think Coles is a great place to look for dividend income this March.

Motley Fool contributor Sebastian Bowen does not own shares in Coles Group Ltd.

Woolworths Group Ltd

What it does: Woolworths is Australia’s biggest supermarket retailer and also owns Big W.

By Bronwyn Allen: I like the defensive nature of this ASX dividend share. Woolworths is a mature, long-established business that will, arguably, continue to pay dividends no matter what the economy is doing.

In fact, in tough economic times, it may just pay you more. Case in point: This year’s Woolworths interim dividend of 46 cents per share fully franked is almost 20% higher than last year’s, thanks to strong 1H FY23 earnings.

In a clear demonstration that ASX consumer staples companies can tolerate inflationary impacts better than most, Woolworths raised its food prices by 7.7% in Q2 FY23, which is almost exactly in line with Australia’s annual inflation rate of 7.8%.

The supermarket giant booked a 14% increase in net profit after tax (NPAT) to $907 million over 1H FY23, with the value of sales up 4%.

Motley Fool contributor Bronwyn Allen does not own shares in Woolworths Group Ltd.

Westpac Banking Corp

What it does: Westpac is one of Australia’s largest banks. It operates under several brands, including St George, Bank of Melbourne, Bank SA, and of course, Westpac.

By James Mickleboro: If you don’t already have exposure to the banking sector, then I think Australia’s oldest bank could be a great option for income investors in March. That’s because I believe it has the strongest earnings outlook relative to the rest of the big four.

This is due to the combination of rising interest rates and the bank’s bold cost-reduction plans. The latter sees Westpac aiming to reduce its cost base to $8.6 billion by FY 2024, compared to $13.3 billion in FY 2021.

Goldman Sachs is expecting Westpac to pay fully-franked dividends of $1.47 per share in FY 2023 and then $1.56 per share in FY 2024. Based on the Westpac share price of $21.64 as at Thursday’s close, this will mean generous yields of 6.8% and 7.2%, respectively.

Motley Fool contributor James Mickleboro owns shares in Westpac Banking Corp.

The post Top ASX dividend shares to buy in March 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Brainchip, Coles, Karoon Energy, and Pilbara Minerals shares are tumbling
• Someone in China has just sold $600 million of Pilbara Minerals shares. Here’s what we know
• Why is the Woolworths share price sliding lower today?
• Why is the Pilbara Minerals share price falling in a hole Thursday morning?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and Super Retail Group. The Motley Fool Australia has positions in and has recommended Coles Group and Super Retail Group. The Motley Fool Australia has recommended Bailador Technology Investments and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/8ivNQpG

Even though the S&P/ASX 200 Index (ASX: XJO) has rallied since the new year, the chances are your portfolio is still in the red.

With consumers and businesses suffering from nine consecutive months of interest rate rises, many experts are predicting more volatility for stocks in the near future.

The temptation, therefore, is definitely there to “sell the rally”. Protect some capital while the markets are up, then redeploy into ASX shares later when the skies are clearer.

It makes sense, but is it actually a good idea?

Timing the market vs buy-and-hold

Betashares executive Annabelle Dickson this week explored how wise such a strategy is.

First, let’s call “sell the rally” for what it is.

“This approach is referred to as ‘market timing’ and involves making investment decisions based on short-term market movements.”

According to Dickson, time and again buy-and-hold has proven to be more fruitful than trying to time the market.

“A buy-and-hold approach involves buying shares and holding them over the long-term, irrespective of market movements,” Dickson said on the Betashares blog.

“An overwhelming body of research finds that this passive buy-and-hold, long-term approach to owning shares produces better long-term results.”

What do the 20 best days on the ASX have in common?

Selling high then rebuying later might make sense in theory. But in reality it results in missing out on the biggest market rallies, which come immediately during and after a falling market.

“And the more of those big rallies that you miss out on, the lower your gains over the long term.”

To demonstrate this phenomenon, the Betashares team pulled out the 20 biggest one-day rallies on the ASX since 1 June 1992:

Amazingly, they have all come during or after a market crash.

20 biggest one-day rallies on the ASX since 1 June 1992

Date	Rally (ASX 200 Accumulation Index)	Context
30/3/2020	7.0%	COVID-19 crash
29/10/1997	6.1%	Asian financial crisis
17/3/2020	5.8%	COVID-19 crash
25/11/2008	5.8%	Global financial crisis
13/10/2008	5.6%	Global financial crisis
25/3/2020	5.5%	COVID-19 crash
3/11/2008	5.1%	Global financial crisis
25/1/2008	5.0%	Global financial crisis
20/8/2007	5.0%	Global financial crisis
22/9/2008	4.6%	Global financial crisis
13/3/2020	4.4%	COVID-19 crash
23/1/2008	4.3%	Global financial crisis
6/4/2020	4.3%	COVID-19 crash
20/10/2008	4.3%	Global financial crisis
28/11/2008	4.3%	Global financial crisis
19/9/2008	4.3%	Global financial crisis
1/10/2008	4.2%	Global financial crisis
24/3/2020	4.2%	COVID-19 crash
8/12/2008	4.1%	Global financial crisis
30/10/2008	4.0%	Global financial crisis

Dickson said that this showed that staying invested provides an investor exposure to all the ups and downs, “which over time may prove to be advantageous”.

“A recent paper from JP Morgan, Is market timing worth it during periods of intense volatility?, revealed that timing the market is almost impossible to achieve given that good and bad trading days fall so closely together.”

That study reported that over the last two decades, six of the seven best stock market days happened immediately after the worst day.

“In other words, it is very unlikely that an investor could be lucky enough to consistently miss the worst days while being invested in the market for the best days.”

Not doing anything is also killing you

Related behaviour is procrastination.

You refuse to buy ASX shares because the market outlook is terrible. You would rather buy in when you feel more comfortable that stock prices are rising.

But this is also a false idol. 

Dickson this time quoted a Schwarb Center study, which reported “even badly timed stock market investments were much better than having no share market investments at all”.

Again, it goes back to that table of the 20 best days on the ASX.

“Investors who procrastinate and do nothing are likely to miss out on the stock market’s potential growth,” said Dickson.

“Given the difficulty of timing the market, the most realistic strategy for the majority of investors would be to invest in stocks immediately.”

The post This one table shows you why you need to stay invested during falling markets appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Boost your portfolio with these blue chip ASX 200 shares in March: experts
• Why did the Bank of Queensland share price smash the ASX 200 in February?
• Here are the top 10 ASX 200 shares today
• The Domino’s boss just sold off $8 million worth of company shares. Here’s the lowdown
• BHP share price on track for biggest daily gain in almost four months

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/za74fn5

The Bank of Queensland Limited (ASX: BOQ) share price managed a 1.3% gain during February 2023, outperforming the S&P/ASX 200 Index (ASX: XJO) which fell by 2.9%.

This is an interesting outcome considering the big four ASX bank shares went through a sizeable decline last month, including the Commonwealth Bank of Australia (ASX: CBA) share price and the National Australia Bank Ltd (ASX: NAB).

Keep in mind that the performance over one month could be influenced by where the share price started from the last month, so let’s consider the first two months of performance in 2023.

The BOQ share price went up 2.3% in the first two months of 2023, while the ASX 200 went up 3.1%. In other words, the ASX 200 went up faster in January but then went backwards noticeably.

Did anything happen in reporting season?

A lot of ASX 200 bank shares announced a result during February, telling investors how they had performed in the latest three-month or six-month period.

But, BOQ has a different accounting period – its half-year finished on 28 February 2023. Investors won’t learn about the half-year numbers and the dividend announcement until 20 April 2022, which is the planned reporting date.

However, investors may have gotten quite a good insight into how the banking sector is going with reports from other banks like CBA and NAB.

CBA reported in its half-year result that cash net profit was up 9% to $5.15 billion, while pre-provision profit went up 18% to $7.82 billion. CBA’s net interest margin (NIM) improved 23 basis points (compared to the FY22 second half) to 2.10%.

The NIM shows how much profit a bank is making on its lending, comparing the loan rate and the rate of the funding (such as savings accounts).

NAB reported that its cash earnings had increased 18.7% year over year, and it had gone up 27% when excluding tax and credit impairment charges. The NAB NIM rose 12 basis points to 1.79%.

This may well mean BOQ’s margins have gone up by a pleasing amount as well. This is something that investors could cheer as it would mean higher net profit after tax (NPAT) as well as potentially stronger dividends. However, there is strong competition among ASX 200 bank shares.

Commsec currently has estimates that BOQ could generate 74 cents of earnings per share (EPS) and pay an annual dividend per share of 52 cents. That would imply the BOQ share price is valued at 9 times FY23’s estimated earnings with a grossed-up dividend yield of 11%.

BOQ share price snapshot

Despite higher interest rates, BOQ shares are down 13% in the past 12 months.

The post Why did the Bank of Queensland share price smash the ASX 200 in February? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Should I buy Bank of Queensland shares today for the prospect of a Bendigo Bank merger?
• Is Bank of Queensland gearing up for the next big ASX 200 bank merger?

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 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.

from The Motley Fool Australia https://ift.tt/AKSh5Uj