The Harvey Norman Holdings Limited (ASX: HVN) share price is being sold off on Tuesday.

In morning trade, the retail giant’s shares are down almost 10% to $3.76.

This follows the release of a half-year result that appears to have fallen short of expectations.

Harvey Norman share price falls on earnings miss

• Consolidated revenue flat at $2.34 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 8% to $694.01 million
• Reported profit after tax down 15.1% to $365.9 million
• Underlying profit after tax down 12.3% to $301.32 million
• Fully franked interim dividend down 35% to 13 cents per share

What happened during the half?

For the six months ended 31 December, Harvey Norman reported flat consolidated revenue of $2.34 billion.

Unfortunately, the retailer’s profits didn’t hold up as well as its revenue. This was due to the company’s margins easing, leading to its EBITDA falling 8% and its underlying profit dropping 12.3%.

In light of this profit decline, the company has elected to slash its interim dividend by 35% to a fully franked 13 cents per share.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting group sales of $2.28 billion, EBITDA of $588 million, and underlying profit after tax of $311 million.

This appears to indicate that Harvey Norman beat on the top line and with its EBITDA, but missed on the bottom line.

In addition, while no dividend estimate was provided for the first-half, Goldman was expecting Harvey Norman’s full-year dividend to increase by one cent to 39 cents in FY 2023.

Given the large cut it has made to its interim dividend, this appears to indicate that there’s very little chance of that happening anymore. This could be putting added pressure on the Harvey Norman share price.

Management commentary

Harvey Norman’s Chairman, Gerry Harvey, commented:

Our Omni Channel Strategy continues to deliver stable returns and sustainable growth resulting in a significant uplift in consolidated net assets by $1.18 billion from pre-COVID levels of $3.28 billion as at 31 December 2019 (1H20) to $4.46 billion as at 31 December 2022 (1H23).

Our balance sheet is robust, anchored by a strong, tangible property portfolio totalling $3.94 billion that continues to deliver growth in terms of rental returns and capital appreciation. We have sufficient liquidity and we continue to maintain a low net debt to equity ratio of 12.17% giving us the capacity to access additional liquidity should we require it. Amid the macroeconomic headwinds of the past year, we have grown our integrated retail, franchise, property and digital business across eight countries to nearly $5 billion in system sales for the current half-year period.

Outlook

Management advised that the second half has started softly, with Australian franchise sales falling 10.2% during January.

And while it acknowledges the challenging economic environment, it remains optimistic. It said:

The consolidated entity is confident in the resilience of its integrated retail, franchise, property and digital system and in its continued ability to deliver stable returns and sustainable growth for its stakeholders. Despite the macroeconomic headwinds and cost of living pressures affecting discretionary retail, our strong balance sheet and our substantial growth in net assets throughout the pandemic has left us in a solid position to withstand these challenging circumstances.

The post Harvey Norman share price sinks 10% on earnings miss and big dividend cut appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are the ASX shares reporting on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• How I’d invest $200 a month in ASX shares to target a $1,000 passive income
• Dividend investors: 2 ASX 200 shares for decades of passive income
• Why term deposits can’t compete with these 5 ASX dividend machines

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 positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. 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 Sandfire Resources Ltd (ASX: SFR) share price is in the red on Tuesday.

The S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $5.80 per share. Shares are currently trading for $5.60, down 3.45%.

This comes on the heels of Sandfire’s half-year results for the six months ending 31 December (H1 FY23).

Here’s what the copper miner reported.

Sandfire share price slides on net loss

• Record half-year sales revenue of $431.7 million, up 38% from $311.8 million in H1 FY22
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $135.9 million, down 16% year on year
• Net loss after tax of $27.1 million, down from a net profit of $55.2 million in H1 FY22
• $263.7 million in cash as at 31 December with net debt of $378.3 million
• No interim dividend declared

What else happened during the half year?

The Sandfire share price is slipping this morning as the company labelled the six months a “transitional period”.

The ASX 200 miner said it was focused on optimising the MATSA Copper Operations in Spain, a copper mining company it acquired in February 2022.

Sandfire was also busy during the half year with the wind-down of its DeGrussa Copper Mine, located in Western Australia.

While DeGrussa is winding down, the company’s Motheo Copper Mine in Botswana is in the final stages of construction and is reported to be close to commissioning.

The miner achieved record half-year sales revenues despite a retrace in copper prices. The average received copper price came in at US$8,098 per tonne, inclusive of hedging. That was down from an average received copper price of US$9,600–US$10,600 in the prior corresponding period.

What did management say?

Commenting on the results that look to be sending the Sandfire share price lower today, acting CEO Jason Grace said:

With one mine winding down in Australia, a new mine ramping up in Botswana and MATSA now a mainstay of our operations, Sandfire begins 2023 as a very different looking company to the one that investors have come to know over the past decade…

The combination of rising inflation and input costs – notably the spike in European energy costs during the half-year – together with slightly weaker metal prices and a significant increase in depreciation and amortisation charges due to the capitalisation of the MATSA acquisition, resulted in a net loss after tax for the period.

Grace added that with energy prices coming down in Europe and copper prices up in 2023, the second half of the financial year “has started on a positive note with improved margins seen in the March 2023 quarter”.

What’s next?

Looking ahead to what could impact the Sandfire share price over the coming months, the miner maintained its production guidance of 83,000 to 91,000 tonnes of copper and 78,000 to 83,000 tonnes of zinc for FY23.

“The recently completed successful capital raising has also allowed us to further strengthen and de-risk our balance sheet,” Grace said, “while also providing a strong platform to support our longer-term growth strategy.”

Sandfire share price snapshot

As you can see on the chart below, the Sandfire share price remains up 3% in 2023, despite today’s dip.

The post Sandfire share price slides as profits turn to losses appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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 annual letter to the shareholders of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) from chair and CEO Warren Buffett is one of the most anticipated documents in the investing world. Every year, Buffett writes a letter to the shareholders of Berkshire.

It is typically jam-packed with commentary on the stock market and the economy. Not to mention dozens of pieces of investing wisdom. This letter is essential reading for anyone wishing to invest in shares.

Fortunately, it’s that time of year that we are treated to our latest Berkshire report card. Buffett has just released his latest letter for 2023. And as usual, it is full of invaluable insights.

So let’s talk about three pieces of wisdom that no investor should miss:

Three of Buffett’s best insights from the 2023 Berkshire Hathaway letter

Choose businesses, not stocks

Buffett opens the 2023 letter with an old favourite. He describes the unfortunate tendency of many investors to ‘trade’ stocks, rather than invest in businesses. Here’s some of what he said:

Our goal… is to make meaningful investments in businesses with both long-lasting favorable economic characteristics and trustworthy managers.

Please note particularly that we own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales.

That point is crucial: Charlie and I are not stock-pickers; we are business-pickers.

I think this is a great mindset to embrace. You should treat buying Commonwealth Bank of Australia (ASX: CBA) shares with the same level of diligence as buying a 50% share in your neighbour’s dry cleaning business.

Just because a share has a fancy ticker code and is publically traded doesn’t make it any less of a business investment.

Share buybacks are great, but only at a good price

Investors tend to treat a share buyback announcement with almost universal enthusiasm. Buffett tells investors that he loves a share buyback as much as anyone, and has even done a fair bit of them himself at Berkshire.

However, he is also at pains to warn that initiating a buyback at the wrong share price is a mistake:

The math isn’t complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices. Just as surely, when a company overpays for repurchases, the continuing shareholders lose.

At such times, gains flow only to the selling shareholders and to the friendly, but expensive, investment banker who recommended the foolish purchases. Gains from value-accretive repurchases, it should be emphasized, benefit all owners – in every respect.

So keep these wise words from Buffett in mind the next time one of your companies announces a share buyback program.

Buffett: Cash is still king

Buffett has always preached the wonders of owning shares to build wealth. But that doesn’t mean that cash doesn’t have a role in your financial standing. Buffett never invests every dollar that Berkshire has on its books:

As for the future, Berkshire will always hold a boatload of cash and U.S. Treasury bills along with a wide array of businesses. We will also avoid behavior that could result in any uncomfortable cash needs at inconvenient times, including financial panics and unprecedented insurance losses.

Our CEO will always be the Chief Risk Officer – a task it is irresponsible to delegate.

Although Buffett is talking business here, the same principles carry over to our personal lives. You should never invest your emergency savings in shares because you never want to be caught without cash when you need it most.

So Buffett would probably say that before you invest in shares, you should have a “boatload” of cash of your own for any “uncomfortable cash needs at inconvenient times”.

The post 3 invaluable lessons for investors from Warren Buffett’s latest annual letter appeared first on The Motley Fool Australia.

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• Keen to pocket the boosted Telstra dividend? You’d better hurry
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Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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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Telstra Group Ltd (ASX: TLS) shares will soon be sending a dividend to shareholders. But investors who want a piece of it will need to be quick.

For the second result in a row, Telstra has increased its dividend for long-suffering investors.

This dividend increase came after the ASX telco share revealed that its earnings per share (EPS) had increased significantly.

Let’s have a look at the main details of the upcoming Telstra payment.

Telstra dividend

Telstra decided to increase its FY23 interim dividend by 6.25% to 8.5 cents per share. This came after multiple years of the interim dividend sitting at 8 cents per share.

The S&P/ASX 200 Index (ASX: XJO) share said that the ex-dividend date is 1 March 2023. That means that investors need to own shares by 28 February 2023 to be entitled to the dividend. That’s today.

If investors own shares before the ex-dividend, the payment date for the Telstra dividend is 31 March 2023.

Some investors may want to use the dividend re-investment plan (DRP), which is where shareholders receive new shares rather than cash. This allows investors to accumulate shares without needing to pay brokerage fees. The DRP election date is Friday, 3 March 2023 at 5pm with no DRP discount.

Earnings recap

For the first six months of FY23, Telstra reported that its total income increased by 6.4% to $11.6 billion. Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 11.4% to $3.9 billion.

Net profit after tax (NPAT) went up 25.7% to $0.9 billion and EPS increased 27.1% to 7.5 cents. Telstra explained that it has been making good progress on its T25 strategy.

The business also provided guidance for the rest of the 2023 financial year.

It said that total income is expected to be between $23 billion to $25 billion. That would be an increase from $22 billion in FY22.

Underlying EBITDA is expected to be between $7.8 billion to $8 billion, which would be an increase from $7.3 billion in FY22. The more profit it makes, the more likely the Telstra dividend can be increased in future years.

Telstra’s capital expenditure is predicted to be between $3.5 billion to $3.7 billion, up from $3 billion in FY22.

Free cash flow after lease payments is guided to be between $2.6 billion to $3.1 billion, down from $4 billion in FY22.

The post Keen to pocket the boosted Telstra dividend? You’d better hurry appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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It has been a very disappointing month for the Core Lithium Ltd (ASX: CXO) share price.

Since the start of February, the lithium miner’s shares are lost 20% of their value.

This follows concerns over falling spot lithium prices and the impact this could have on its profits in the coming years.

Where next for the Core Lithium share price?

Unfortunately, despite the significant pullback in February, one leading broker isn’t recommending investors jump in just yet.

According to a note out of Goldman Sachs, its analysts have reiterated their sell rating and cut their price target on its shares to 90 cents.

This suggests further potential downside of 3.2% for investors from current levels.

And while this downside isn’t overly significant, it is worth noting that many of the other ASX lithium shares under its coverage trade well below their price targets. So, there’s potential for Core Lithium share price to drop into the 70s to 80s based on this.

What did the broker say?

Goldman Sachs continues to believe that lithium prices are on the verge of collapsing. This view is supported by a recent visit to China. It commented:

We note the lithium chemicals spot and forward pricing has continued to decline, with our commodities team reiterating their expectation for lithium prices to decline from 2H23, supported by recent China trip feedback suggesting risk of higher than expected lithium supply, and the larger operating Australian spodumene projects either recently outperforming production expectations (and increasing near term production guidance) or lifting medium term production growth targets.

The broker has also downgraded its earnings estimates to reflect its belief that there will be no more direct shipping ore (DSO) sales. It concludes:

Our FY23 EPS is down c.12% on no longer expecting any further DSO sales as a result of current stockpiles being utilised for DMS commissioning and pit water limiting near term mining volumes, though partly offset by a moderate increase FY23 spodumene production following DMS construction completion. Our 12m PT is lowered to A$0.90/sh (from A$0.95/sh) on the lower near term earnings.

The post The Core Lithium share price crashed 20% In February. What now? 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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There are still a few more reports to trickle in as the reporting season begins to slow down. Will today’s ASX shares be able to deliver on their shareholders’ hopes though?

Here’s a quick, no-rubbish read to get you up to speed on Tuesday.

These ASX shares are reporting today

Ranked in order of market capitalisation (largest to smallest)

Harvey Norman Holdings Limited (ASX: HVN), $5.2 billion

Sandfire Resources Ltd (ASX: SFR), $2.7 billion

Adbri Ltd (ASX: ABC), $1.2 billion

Tyro Payments Ltd (ASX: TYR), $846.8 million

Cooper Energy Ltd (ASX: COE), $447.4 million

McPherson’s Ltd (ASX: MCP), $88.1 million

Swoop Holdings Limited (ASX: SWP), $41.4 million

What can we expect today?

Two weeks on from JB Hi-Fi Limited‘s (ASX: JBH) first-half results, we are now staring down the barrel of another set of figures, this time from its closest rival.

Harvey Norman shareholders are flying into today’s results without much prior information. The last trading update was handed out on 24 November 2022, detailing sales for the period between 1 July and 31 October 2022. Importantly, aggregated sales revenue was up 6.9% compared to the prior corresponding period.

The numbers to beat from the last first half are:

• $4.91 billion in total system sales revenue
• 34.58 cents in earnings per share
• Interim fully franked dividend of 20 cents per share

Meanwhile, an ASX payments tech share will be attempting to wow onlookers today in hopes of a better bid.

Tyro Payments is in the hot seat after giving due diligence access to Potentia at the end of January. Today’s first-half figures will no doubt factor into any ensuing takeover offer, so Tyro shareholders will be looking for some solid numbers.

In January, the company provided unaudited results that showed a record period in some aspects. Notably, gross profits were up 40% to $95.2 million on a normalised basis. Though, the focus will likely be on any amendments to the company’s full-year guidance.

Don’t forget to check back in throughout the day for our earnings coverage.

The post Earnings preview: Here are the ASX shares reporting on Tuesday appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
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• Dividend investors: 2 ASX 200 shares for decades of passive income
• Why term deposits can’t compete with these 5 ASX dividend machines
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Motley Fool contributor Mitchell Lawler 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 Harvey Norman and Tyro Payments. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Jb Hi-Fi and Tyro Payments. 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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One of the standout ASX 200 earnings reports from this season has to be that of Woolworths Group Ltd (ASX: WOW). Woolies revealed its earnings for the half-year ending 31 December 2022 just last week. And it impressed investors across the board.

As we covered at the time, Woolworths reported a bevvy of green numbers. Sales were up a pleasing 4% to $33.17 billion, while earnings before interest and tax (EBIT) lifted by 18.4% to $1.64 billion. Net profit after tax (NPAT) was also up, this time by 14% to $907 million.

But the centrepiece of this earnings report was arguably Woolworths’ new dividend. The grocery giant declared an interim dividend of 46 cents per share, fully franked. That represents an impressive 17.9% rise over the interim dividend of 39 cents per share investors saw in 2022.

This latest dividend from Woolworths will bring the company’s trailing annual dividend to 99 cents per share, fully franked. That’s going off of Woolies’ last final dividend, the 53 cents per share payment that investors bagged last September.

Woolworths shares’ turbocharged dividend is inbound

But if any investor is overcome with a need to receive this next dividend from Woolworths shares, they had better be quick. That’s because the ex-dividend date for said payment is fast approaching.

An ex-dividend date is a date a company must nominate when it declares a dividend. It provides a cutoff date for eligibility to receive a dividend payment.

Put simply, if an investor owns shares of Woolworths before the ex-dividend date, they are entitled to the dividend payment in question. However, if the investor buys Woolworths shares on or after the ex-dividend date, they miss out. That’s why we normally see a share price drop on the day a company goes ‘ex-div’.

In Woolies’ case, the company is scheduled to trade ex-dividend on this Thursday, 2 March. This means that any investors wishing to net this latest dividend from Woolies will have to own the shares by the end of tomorrow’s trading session.

Then, eligible investors have until 6 March to opt for Woolworths’ optional dividend reinvestment plan (DRP) if they wish to receive additional Woolworths shares in lieu of a cash payment.

Payment day will then come around on 13 April.

So, a lot happening for Woolworths investors this week.

At yesterday’s closing Woolworths share price, this ASX 200 blue chip share has a dividend yield of 2.68%.

The post Hoping to bag the bigger Woolworths dividend? You’ll need to hurry appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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There is a perverse feature of share markets right now that disturbs Fidelity International investment director Tom Stevenson.

It’s how stocks move wildly based on every word and tone that the heads of central banks like the Reserve Bank of Australia and the US Federal Reserve utter.

“The Fed and its counterparts in Europe and Japan long ago stopped being simply the referees but became the game’s star players,” Stevenson said in the UK’s The Telegraph.

“This is not how it should be.”

Stock markets swaying on any sort of hint about interest rate intentions might not seem so controversial to younger investors, but it wasn’t always this way.

When stocks markets became addicted to low rates

The first signs of it emerged a quarter of a century ago when there was a Russian debt crisis and the collapse of the infamous Long-Term Capital Management hedge fund.

“[It] set the stage for Alan Greenspan to adopt the role of financial market ‘maestro’, riding to the rescue whenever things got sticky for investors.”

The global financial crisis in the late 2000s really took the stock market’s interest rate sensitivity to a new level though.

“This is when bad news started to be welcomed by investors,” said Stevenson.

“They came to realise that the Fed could be relied on to respond, Pavlov-style, to a slowing economy, gummed up financial plumbing or just simply a falling stock market.”

A put option is a financial contract that provides returns when something goes wrong. Thus the willingness of central banks to rescue stock markets became known as the “Fed Put”.

Unfortunately, equity markets became addicted to this for the entirety of the 2010s. Bad news sent stocks soaring on the possibility that interest rates would be cut — or remain at near zero.

“Sluggish growth and rolling crises in Eurozone sovereign debt or the Chinese currency or a negative shock such as Brexit provided central banks with the cover to keep interest rates on the floor,” said Stevenson.

“If you owned assets or needed to borrow money, you were happy.”

Bad news was good news.

The current rally might be premature, but stay invested

Then in 2020, the massive impact of COVID-19 came along.

According to Stevenson, “massive government interference” with lockdowns and fiscal stimulus killed supply and supersized demand at the same time.

Inflation then took flight and Russia’s invasion of Ukraine just “poured fuel on an already smouldering fire”.

So the logic is now flipped from the pre-pandemic era.

“Now investors view good news as bad because they fear that better-than-expected economic data will provide central banks with the justification to keep rates higher for longer,” said Stevenson.

“Fearful of letting inflation spin out of control on their watch, this is their default position. Understandably so.”

In Stevenson’s opinion, there is much good news around the globe at the moment. The jobs market remains “red hot” in the US and growth in Europe has hit a nine-month high.

So the new year market rally might prove premature. Volatility will rule until “the market, economy and corporate earnings become better aligned”.

But all this good news might mean that we may have passed the bottom.

“The earnings recession could be milder than feared this year and the debate about whether we should expect a soft or a hard landing may be moot.

“Perhaps it really will be no landing at all.”

And the ultimate irony for those with a full portfolio?

“What seems like bad news for investors — they turned up too early for the recovery — could turn out to be good news after all,” said Stevenson.

“A year of volatile but ultimately flat markets may not feel very exciting but it will provide plenty of opportunities to make sure you are fully invested when the rally finally comes along.”

The post These are the blokes who control how well your ASX shares do appeared first on The Motley Fool Australia.

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• Goldman Sachs says these high yield ASX dividend shares are buys
• Are ASX nickel shares worth investing in?
• ‘Happy buyers’: Expert’s 2 ASX shares to grab after boom reporting season
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• 5 things to watch on the ASX 200 on Tuesday

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.

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Are you looking for dividend shares to buy this week?

If you are, you may want to check out the two listed below that have been named as buys by Goldman Sachs.

Here’s what you need to know about these ASX dividend shares today:

Universal Store Holdings Ltd (ASX: UNI)

The first ASX dividend share that has been named as a buy is youth fashion retailer Universal Store.

Thanks to its exposure to younger consumers that are less impacted by the cost of living crisis, it has continued to grow strongly in FY 2023. For example , last week, it 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.

Goldman Sachs was impressed and retained its buy rating with an improved price target of $8.05.

As for dividends, the broker now expects fully franked dividends of 27 cents in FY 2023 and 34 cents in FY 2024. Based on the latest Universal Store share price of $5.38, this equates to yields of 5% and 6.3%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that has been tipped as a buy is Westpac.

It is of course one of the big four banks and the owner of brands including Westpac, Bank SA, Bank of Melbourne, Rams, and St George.

Goldman Sachs is also very positive on Westpac and believes it is well-placed for earnings and dividend growth. This is thanks to the benefits of rising interest rates and its cost cutting plans.

The broker has a conviction buy rating and $27.74 price target on its shares.

In respect to dividends, the broker is forecasting fully franked dividends per share of 147 cents in FY 2023 and 156 cents in FY 2024. Based on the current Westpac share price of $22.73, this will mean yields of 6.45% and 6.9%, respectively.

The post Goldman Sachs says these high yield ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• How I would generate $50,000 of retirement income from Westpac shares
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Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. 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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Lithium has been the headline star of battery minerals among ASX investors in recent years.

But with the stock prices of most of the producers now fully priced, what about some of the other ingredients necessary for a net-zero future?

Nickel is known to be one of those minerals. The importance of its role is reflected in how the nickel price has risen about 35% since July.

So should you invest in a nickel miner and, if so, which ASX shares are the best investments?

Shaw and Partners portfolio manager James Gerrish answered this very question this week.

Future of nickel in batteries is under a cloud

Gerrish has one warning for investors considering buying nickel mining ASX shares.

“High energy lithium-ion batteries use nickel, cobalt and manganese, whereas LFP batteries use lithium iron phosphate, a non-toxic material, as the cathode material. That is, no nickel,” he said in a Market Matters Q&A.

LFP is starting to eat into lithium-iron’s market share. 

According to power systems manufacturer Cummins, LFP batteries are cheaper to produce and can be charged to 100% without degradation.

And, as Gerrish mentioned, LFP is safer due to the absence of toxic materials.

“With [LFP] gaining more traction of late, nickel has lost some of its lustre as an ESG investment making this no longer an area Market Matters wants to be aggressively long.”

Which ASX nickel stock is best? IGO vs Mincor

But if he had to dip into the nickel industry, Gerrish was asked whether he would choose IGO Ltd (ASX: IGO) or Mincor Resources NL (ASX: MCR).

Mincor is a specialist nickel producer, whereas IGO extracts other minerals as well as nickel.

“We prefer IGO over Mincor in the nickel/lithium/EV space,” said Gerrish.

“This is a rapidly evolving industry where we would like to stick with the proven names who are making a profit and paying a dividend.”

The market conditions at the moment are not rewarding future potential for earnings growth, he added.

“Market Matters holds IGO in our flagship growth portfolio, but only with a relatively small 3% weighting.”

The IGO share price has risen 23% in the past 12 months, whereas Mincor has dipped 32% over the same period.

The post Are ASX nickel shares worth investing in? appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 lithium share takes the crown for dividend yield right now?
• Here’s the latest ‘bearish news’ from brokers on ASX 200 lithium stocks
• Why are ASX 200 lithium shares having such a stellar run today?
• Why is the Core Lithium share price rebounding 5% on Tuesday?
• Down 22% in a month, is it time to dive in and buy Lake Resources shares?

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.

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