February 2023 could be an excellent time to start building a second income through ASX dividend shares. It can be done with a small amount of money each week, using the power of compounding to help grow wealth.

I think that investing in ASX shares is one of the best ways to grow our net worth. Many leading companies on the ASX make good profits, but plenty of them also pay dividends.

Australian companies have the added benefit of attaching franking credits to dividends that are paid, boosting the after-tax returns.

Start by saving

Investors don’t need a lot of money to start investing in ASX shares. You can open a share trading account with as little as $500. However, it could make more sense to invest more than $500 at one time so that the brokerage fee is a smaller percentage of the cost.

Bank accounts are finally offering better interest rates, with good ones offering a rate of more than 3%. While we may want to invest our money as soon as possible, our cash can make a decent return while it builds.

Putting aside $30 a week translates to a yearly total of $1,560. Saving this amount each week may be easy for some people and a task for others. It may involve finding cheaper alternatives for products or services, getting extra income from a part-time job, or whatever it takes.

Begin investing

Investing that $1,560 into an ASX share that pays a 5% dividend yield would make $78 of annual dividends in year one. Picking a share with a dividend yield of 10% would generate $156 of annual dividend income. That’s not bad for the start of a second income.

There are some quality blue chips that pay dividend yields of around 5% to 7%, such as Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). These are the sorts of names that could do well with a long-term investment strategy.

Investors may consider ASX shares with higher dividend yields than that, but ideally, those names could grow earnings over the long term. Companies with very high dividend yields include Adairs Ltd (ASX: ADH), Shaver Shop Group Ltd (ASX: SSG), Best & Less Group Holdings Ltd (ASX: BST) and Pacific Current Group Ltd (ASX: PAC).

The second income can benefit from compounding

One year of investing is unlikely to unlock all of the passive income that investors are looking for.

Starting off with $75 of annual income after year one is good. Building that to $150 in year two, $225 in year three and so on, by continuing to invest, would build an impressive stream of dividends.

Good businesses tend to keep growing their profit and dividends. If a $100 dividend payment grows by 5% each year because the company increased the dividend, it would be $105 in the second year, $110.25 in the third year, $115.76 in the fourth year and so on.

Investors can benefit from organic dividend growth from their investments, as well as adding more money over time.

The more time we give — and the more money we add — to our investment portfolio, the bigger the dividend cash flow that can be created.

The post Here’s how I’d start building a second income this February, for $30 a week appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Should I buy Coles shares before this month’s ASX earnings update?
• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday

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 positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs, Coles Group, Telstra Group, and Wesfarmers. 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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Most investors would think two factors have the biggest influence on their ability to reach financial independence: income and investment returns.

But US financial expert and buy-and-hold advocate Brian Feroldi sees it differently.

He cites a famous economic rule to explain.

“In the 1920s, Italian economist Vilfredo Pareto noticed something in his garden,” Feroldi said in his Long-Term Mindset newsletter.

“80% of his peas came from just 20% of his plants.”

He then also noticed the same pattern in his day job.

“80% of the land was owned by just 20% of the people.”

That was the birth of the Pareto Principle. 

“It’s since become a powerful tool that helps to separate ‘signal’ from ‘noise’. By zeroing in on the small — but impactful — inputs, you can gain incredible leverage.”

How the Pareto Principle applies to building wealth

The principle also applies to investing.

And this is where the notion that income and investment returns are the most important variables towards financial independence.

They’re not, according to Feroldi.

“Those two factors are important, but they are more ‘noise’ than ‘signal’.”

He said the most important factor to building wealth, the critical 20%, is one’s savings rate as a proportion of take-home pay.

Sure, a massive income is certainly helpful, but Feroldi says it’s not “a cure-all”.

“Just ask some of the highly-paid celebrities and athletes who [end] up filing for bankruptcy protection — Mike Tyson, Nicholas Cage, Lindsay Lohan.”

And high investment returns also help, but it’s absolutely useless if one’s savings rate is miniscule.

“This is why your savings rate is so important. It’s the small input that can [reliably] predict your ability to become wealthy.”

Feroldi admitted concentrating on saving is not an exciting message. But if you do it well then it will be “hard not to become wealthy” over time.

“Over the long run, you have far more control over it than your salary or investment returns.”

The post Expert reveals THE most critical thing to building wealth (and it’s not what you think) appeared first on The Motley Fool Australia.

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More reading

• Morgans names the best ASX growth shares to buy in February
• A new bull market is coming: 3 ASX shares I’d load up on before it gets here
• Morgans names 2 high yield ASX dividend shares to buy this month
• Here are the top 10 ASX 200 shares today
• 3 of the safest ASX 200 dividend stocks in Australia

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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If you’re looking for ASX growth shares to buy, then look no further! Morgans has named a number of shares as its best ideas for February.

Two growth shares that have been given the thumbs up are listed below. Here’s why it is bullish on them:

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel booker could be a growth share to buy according to Morgans. It is a big fan of the company and is one of its key picks in the travel sector. Particularly given its attractive valuation and recent acquisitions. The broker explained:

Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $25.65 price target on the company’s shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX growth share to consider is Jumbo. It is the online lottery ticket seller behind the OZ Lotteries brand and the Powered by Jumbo software as a service solution.

Morgans believes that Jumbo is well-placed for growth thanks to opportunities at home and abroad. It also likes its defensive qualities and low capital requirements. It commented:

We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.

Morgans has an add rating and $17.00 price target on its shares.

The post Morgans names the best ASX growth shares to buy in February appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares in the right place at the right time right now: Elvest
• These were the best performing ASX 200 shares in January
• Here are the top 10 ASX 200 shares today
• 3 of the very best ASX 200 travel shares to buy according to Goldman Sachs
• Here are the top 10 ASX 200 shares today

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 Jumbo Interactive. The Motley Fool Australia has recommended Corporate Travel Management and Jumbo Interactive. 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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With the ASX 200 index up over 7% already in 2023, it looks like we could soon be entering a bull market.

This could make it an opportune time for investors to look at making some investments before the market takes off.

But which ASX shares would be top options to buy before the bull charges through the door?

3 ASX shares I would buy

If I were going to load up on some ASX shares for a potential bull market, I would look at those which have good operational momentum and positive long-term outlooks, but an underperforming share price.

One ASX share that immediately comes to mind is Temple & Webster Group Ltd (ASX: TPW). Its shares have been punished over the last 12 months and are down almost by a third.

That’s despite the online furniture and homewares retailer growing strongly and having an enviable leadership position in a retail category that is still in the early days of shifting online. Furthermore, with this category having relatively high barriers to entry, it appears well-placed to remain a leader in the future.

In fact, it is for this reason that Goldman Sachs is forecasting Temple & Webster’s earnings before interest, tax, depreciation and amortisation (EBITDA) to grow by a compound annual growth rate (CAGR) of 22% over the next 10 years.

Coffee to the rescue

Another ASX share that I would buy ahead of the bull market is Breville Group Ltd (ASX: BRG). This leading appliance manufacturer’s shares are down 20% over the last 12 months.

And while a slowing housing market and the cost of living crisis could put pressure on demand for appliances, Breville’s exposure to the growing coffee market could offset this. In fact, a recent update from rival De’Longhi appears supportive of this.

In addition, management has the option to rein in its spending on research and development if it wants to trim costs and support its earnings.

A beaten down tech star

Finally, I think Life360 Inc (ASX: 360) could be an ASX share to buy. This location technology company’s shares fell heavily last year when the market sold off unprofitable tech shares.

But with Life360 growing at a rapid rate and expecting to become profitable later this year, I believe a re-rating could happen when this milestone is achieved.

Another reason to be positive is the company’s huge market opportunity. In FY2022, Life360 is expecting to report revenue in the range of US$225 million to US$240 million. This compares to its total addressable market estimated by Goldman Sachs to be US$12 billion globally.

Overall, I believe including these three ASX shares in a balanced portfolio could deliver solid results for investors when the bull market comes.

The post A new bull market is coming: 3 ASX shares I’d load up on before it gets here appeared first on The Motley Fool Australia.

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More reading

• Goldman reveals the ASX shares that could surprise to the upside (and downside) this reporting season
• Goldman Sachs names 2 exciting small cap ASX tech shares to buy right now
• 2 explosive ASX growth shares to buy now: Goldman Sachs
• Leading brokers name 3 ASX shares to buy today
• Forget lithium! I’m using the Warren Buffett method to help find winning ASX shares in 2023

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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Morgans has been busy picking out the best shares to buy this month.

If ASX dividend shares are what you’re looking for, then you may want to check out the two listed below.

Here’s what its analysts are saying about these dividend shares:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Morgans has this coal terminal operator on its best ideas list and has an add rating and $2.67 price target on its shares. It believes its strong market position will allow the company to pay some big dividends in the near term.

For example, in FY 2023, the broker is forecasting a 21 cents per share dividend. This represents a sizeable 8.4% dividend yield at current levels. The broker 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.

Santos Ltd (ASX: STO)

Another ASX dividend share to buy according to Morgans is Santos. It believes the energy producer is well-placed thanks to its diversified earnings and resilient growth profile. The broker has an add rating and $8.75 price target.

As for dividends, it is expecting Santos to reward its shareholders with a 40.4 cents per share dividend in FY 2023. This equates to a 5.8% dividend yield for investors. Morgans said:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

The post Morgans names 2 high yield ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Worried about where ASX 200 oil stocks are heading? Read this
• 5 things to watch on the ASX 200 on Tuesday
• Investing in ASX 200 energy shares? Here’s why the oil price may already have hit its 2023 lows

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 S&P/ASX 200 Index (ASX: XJO) roared into the weekend today, surging 0.62% to finish at 7,558.1 points. That sees it within 1% of its all-time high and marks a 0.86% week-on-week gain.

Its gains came despite a poor performance from mining shares. The S&P/ASX 200 Materials Index (ASX: XMJ) tumbled 1.4% on Friday after iron ore futures slumped 0.9% overnight and gold futures dropped 0.6%.

Fortunately, it was the only sector to trade in the red today.

Leading the market’s gains was the S&P/ASX 200 Healthcare Index (ASX: XHJ) and the S&P/ASX 200 Real Estate Index (ASX: XRE) – rising 2.5% and 2.4% respectively.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) followed the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) higher, lifting 0.6% following the Wall Street index’s 3.2% overnight gain.

But with nearly all sectors trading higher today, which ASX 200 shares outperformed all others? Let’s take a look.

Top 10 ASX 200 shares countdown

The biggest gainer on the ASX 200 today was Pinnacle Investment Management Group Ltd (ASX: PNI).

There was no news from the investment management company today. However, its stock tumbled 2.7% on the back of its first half earnings yesterday.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Pinnacle Investment Management Group Ltd (ASX: PNI)	$10.29	9.58%
BrainChip Holdings Ltd (ASX: BRN)	$0.665	5.56%
HMC Capital Ltd (ASX: HMC)	$5.15	4.89%
Centuria Capital Group (ASX: CNI)	$2.02	4.39%
Mirvac Group (ASX: MGR)	$2.44	4.27%
Growthpoint Properties Australia Ltd (ASX: GOZ)	$3.50	4.17%
Perpetual Limited (ASX: PPT)	$26.95	3.93%
Computershare Limited (ASX: CPU)	$24.01	3.8%
News Corp (ASX: NWS)	$30.27	3.66%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.17	3.33%

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

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

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More reading

• Why Appen, Janus Henderson, Lithium Energy, and Pinnacle shares are charging higher
• 3 ASX All Ords shares rocketing 10% or more today
• ASX 200 stock Pinnacle dives 7% on earnings miss
• Why QBE, Pinnacle, Rio Tinto, and Virgin Money shares are dropping
• Why Appen, Gold Road, Healius, and Pinnacle shares are dropping today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Nine Entertainment. 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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Finding safe ASX 200 dividend stocks on the ASX is something of a Holy Grail for ASX income investors. We all know that dividend shares on the S&P/ASX 200 Index (ASX: XJO) can provide a yield that is higher than what cash investments can offer.

But a dividend share fundamentally lacks the safety that a term deposit or a savings account can offer. No ASX share can offer true safety of income.

But let’s see how close we can get to true safety by checking out three of the most consistent dividend payers the ASX has to offer.

3 of the safest ASX dividend stocks in Australia

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

Washington H. Soul Pattinson, or Soul Patts for short, was always going to make this list. That’s by virtue of its unrivalled dividend track record on the ASX. This diversified investment company has increased its annual dividend payments every single year since 2000.

Yes, through the dot-com bust, the global financial crisis, and more recently, the COVID pandemic.

No other ASX share can even come close to matching this record, making this company one of ASX’s safest dividend stocks. Soul Patts shares offer a fully franked dividend yield of 2.5% at recent pricing.

Brickworks Limited (ASX: BKW)

ASX 200 construction materials company Brickworks is another ASX dividend stock to consider if you’re searching for safe income. Brickworks has a diversified earnings base, consisting primarily of its business of selling bricks and other construction supplies. But Brickworks also has a burgeoning property portfolio, as well as significant investments in other shares, namely Soul Patts by coincidence.

This has enabled the company to either maintain or increase its dividend every year for more than four decades. It doesn’t quite have the clockwork-like bonafides of Soul Patts. But it still comes pretty close, making it one of the safest income shares on the market.

Brickworks currently has a fully-franked dividend yield of 2.6% on the table.

Commonwealth Bank of Australia (ASX: CBA)

CBA is one of the ASX 200’s most famous dividend stocks. While it doesn’t quite have the near-flawless dividend track records of the above two shares, I feel it still merits inclusion in this list due to the popularity of the big four ASX bank shares for income investors.

Looking at the other big four members, CBA’s dividend record arguably shines out as one of the most impressive. Between 2009 and 2019, CBA raised its annual dividend every year, with the exception of the 2016 dividend, which was flat at 2015’s levels.

CBA’s payouts took a big hit during the COVID-ravaged 2020. But its dividends have been building back with a vengeance, with the bank giving investors big dividend hikes in both 2021 and 2022.

Last year, CBA doled out a total of $3.85 in fully-franked dividends per share, giving CBA a trailing yield of 3.46% today.

The post 3 of the safest ASX 200 dividend stocks in Australia appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager
• ASX 200 investors are selling off CBA shares! What should I do?
• Can these next-gen dividend heroes provide a passive income for life?
• Top ASX dividend shares to buy in February 2023
• 5 ASX 200 shares smashing new 52-week highs on Wednesday

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and 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 Newcrest Mining Ltd (ASX: NCM) share price is ending the week in the red despite no news having been released by the company today.

The stock is currently down 3.29%, trading at $22.35.

That’s compared to the S&P/ASX 200 index (ASX: XJO)’s 0.65% gain at the time of writing.

So, what’s going so wrong for the gold mining giant today? Let’s take a look.

What’s going wrong for this ASX 200 gold miner today?

The Newcrest share price is taking a dive alongside many of the market’s mining giants today. Its slump also comes amid reports shareholders are concerned as to who might take the top job at the company.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the ASX 200’s worst-performing sector today. It’s trading 1.48% lower right now, with gold stocks among its biggest weights.

Shares in Ramelius Resources Limited (ASX: RMS) are leading the sector’s fall, dropping 6.9%.

Stock in the likes of Regis Resources Ltd (ASX: RRL) and Gold Road Resources Ltd (ASX: GOR) aren’t far behind, tumbling 6.5% and 6.1% at the time of writing.

It’s likely no surprise, then, that the yellow metal had a rough night’s trade.

Gold futures fell 0.6% to US$1,930.80 an ounce, while the spot gold price was around US$1,912 at the US close.

Meanwhile, particular attention might be on Newcrest shares amid reports shareholders are urging the company to hire outside its own talent pool in its quest for a new CEO.

The $20 billion gold miner’s former-CEO Sandeep Biswas retired in December, with chief financial officer Sherry Duhe stepping up to the role of interim CEO as the company underwent an internal and external search for a permanent leader.

However, key stakeholders are urging the company not to permanently appoint Duhe – who has extensive experience in finance – to the role, The Australian reported last night. Rather, they’re said to be asking the company to hire an external candidate with a background in operations.

Newcrest share price snapshot

Despite today’s tumble, the Newcrest share price is still trading in line with the ASX 200 year to date. The stock has risen 8% since the start of 2023, while the index has lifted 8.9%.

However, it has underperformed over the last 12 months, rising 0.4% compared to the ASX 200’s 6.8% gain.

The post Why is the Newcrest share price fizzling out on Friday? appeared first on The Motley Fool Australia.

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More reading

• The gold price is near 9-month highs. Could these ASX 200 mining stocks be set to soar?
• 5 things to watch on the ASX 200 on Friday
• Why Centuria Office, Deep Yellow, Newcrest, and Xero shares are racing higher today
• Investing in ASX 200 gold shares? Here’s what to expect from the yellow metal in 2023
• Up 30% in 4 months! ASX 200 gold share Newcrest is still trading cheap: fundie

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) looks set to end the week on a very high note this Friday. At the time of writing, the ASX 200 Index has risen by a healthy 0.54%, leaving the index at just over 7,550 points. 

So let’s now dig a little deeper into these pleasing gains for the ASX 200 by taking stock of the ASX 200 shares that are presently at the peak of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Telstra Group Ltd (ASX: TLS)

First up this Friday is the ASX 200 telco Telstra. This session has had a hefty 12.57 million Telstra shares traded so far. There hasn’t been any fresh news out of the telco giant for almost a month now. So this volume can probably be explained by the movements of the Tesltra share price itself.

Telstra has had a bit of a bumpy ASX over Friday thus far. At present, Telstra shares are up by 0.36% at $4.14, but have spent time in both positive and negative territory today, and got down to $4.11 at one point. This volatility is the most likely cause of these high volumes.

Sayona Mining Ltd (ASX: SYA)

Next up today we have ASX 200 lithium stock Sayona Mining. A sizeable 25.76 million Sayona shares have said sayonara to their old owners so far today. This looks like a probable consequence of the share price falls we have seen with Sayona today.

In defiance of the broader market, Sayona shares have slumped a meaningful 1.85% at this point of the session down to 26 cents a share. That’s despite Sayona rising to 28 cents a share earlier this morning. This drop looks like the smoking gun behind the volumes we are witnessing.

Paladin Energy Ltd (ASX: PDN)

ASX 200 uranium miner Paladin is our third, final and most traded ASX 200 share to examine today. And what an examination it will be. Paladin has smashed the ASX 200’s trading volumes today, with a whopping 247.25 million shares trading hands thus far.

Such a massive volume for paladin is rather unusual, but there’s no obvious explanation for this huge figure. Sure, the Paladin share price is down by a nasty 6.74% at present to 80 cents per share. So this could explain some of this elevated volume.

But perhaps an institutional buyer has come in and either loaded up or sold a very large parcel of shares. Whatever the cause, it looks like Paladin is set to hold its first place on the podium for the rest of the session.

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

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More reading

• A rare day in the green: Magellan share price soars 5%
• Why did the Vanguard Australian Shares Index ETF lag the ASX 200 in January?
• Why are ASX 200 iron ore shares being hammered hard on Friday?
• 3 ASX 200 lithium stocks that leapt beyond 20% in January
• The ASX 200 is trading near record highs. Is now the time to invest?

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

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The Magellan Financial Group Ltd (ASX: MFG) share price is enjoying a day in the sun on Friday.

In earlier trading, the embattled ASX financial stock reached an intraday high of $9.55, up 4.95%.

This is 10.5% up on its 52-week low of $8.65 reached on 6 January. Investors killed the stock that day after the company lodged another gloomy funds under management (FUM) report with the ASX.

As my Fool colleague James reported, Magellan now has $45.3 billion in FUM, which represents a 10% fall since the end of November.

Over the six months to 31 December, Magellan averaged $53.8 billion in FUM. That’s more than half its average ($112.7 billion) in the prior corresponding period. It’s an OMG sort of situation for shareholders.

The outlook for Magellan shares in 2023

Not surprisingly, as direct institutional investors have continually withdrawn their money from Magellan’s various investment funds over the past couple of years, ordinary ASX shares investors have lost faith.

Arguably the biggest hit to Magellan’s image occurred in December 2021 when it announced it had lost the St James’s Place mandate. That represented 12% of Magellan’s annual revenue alone. Ugh.

Then came a dog of a year with the Magellan share price tumbling a distressing 58% in 2022. That is more than 10 times the loss incurred by the benchmark S&P/ASX 200 Index (ASX: XJO) at 5.45%.

In late 2022, there were “material” staff changes across Magellan’s investment teams. This led to some ratings agencies putting several Magellan funds on watch.

At the time, Zenith noted that “Magellan’s entire product suite is affected by the changes”.

All of this added to investors’ nerves, too.

Do the experts see any hope for Magellan?

Shaw and Partners portfolio manager James Gerrish is not upbeat on Magellan shares.

In a Market Matters Q&A, Gerrish said:

Performance is what this stock needs to get back on track. However, if outflows continue at similar rates and possible management fees are lowered in an attempt to maintain FUM [funds under management], we think the stock will simply continue to slide lower.

In the year to date, the stock market has risen pretty strongly.

The ASX 200 is up 8.7% while the Magellan share price is up 7%.

So, the financial share seems to be benefitting from broader market optimism. For the time being, it’s at least keeping up with its ASX 200 counterparts.

But will this last? Time will tell.

The post A rare day in the green: Magellan share price soars 5% appeared first on The Motley Fool Australia.

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More reading

• Core Lithium: An ASX 200 share to buy in February? 
• Why did the Vanguard Australian Shares Index ETF lag the ASX 200 in January?
• Why are ASX 200 iron ore shares being hammered hard on Friday?
• 3 ASX 200 lithium stocks that leapt beyond 20% in January
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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