With the S&P/ASX 200 Index (ASX: XJO) once again falling this Monday, it’s becoming clear that the end of the year might shape up to be a rather volatile time for the share market.

At least, that’s the way things look to be heading as we approach the middle of December. ASX 200 shares started December at a seven-month high. But it has been downhill ever since for the ASX. As it stands today, the index has lost around 2.5% of its value over December thus far.

But, volatility can be the patient investors’ best friend. After all, being able to obtain ASX shares at lower prices usually does wonders for future returns. So here’s one ASX dividend share I’m eyeing off for passive income amid all this volatility.

It’s Brickworks Limited (ASX: BKW).

Why is this ASX 200 share on my buy list?

Brickworks is a rather interesting ASX share. It is a market leader in the manufacturing of bricks and other construction materials, of course.

But this isn’t just a building supplies company. Brickworks is far more diversified than its name suggests. Construction materials is a notoriously cyclical business. When there’s a boom, everyone wants to build houses and buy more bricks and other materials.

But this demand can go just as easily as it can come. When the economy is tight, demand for new properties is scant.

So Brickworks also has a property investment strategy that helps the company overcome the cyclical nature of making construction materials. Brickworks places land it no longer uses for manufacturing into its ‘Brickworks Manufacturing Trust’.

It then uses this land to create a supplementary income stream, which helps it to ride out the ups and downs of its primary business.

Brickworks has another earning avenue outside the construction centre as well. It’s Brickworks’ investment portfolio. This is primarily made up of a massive chunk of another ASX company – Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Brickworks owns around $2.6 billion worth of Soul Patts shares or around 26.1% of the whole company. Soul Patts is a diversified conglomerate with large shareholdings of its own.

It has the unique distinction of being the only ASX 200 share to have delivered an annual dividend rise every year since 2000. This gives Brickworks a useful stream of dividend income for its coffers too.

So all of this adds up to an ASX dividend share I want to buy before 2022 is over.

Why buy Brickworks now?

At present, Brickworks has a trailing dividend yield of 2.89%, fully franked, on the table today. That number doesn’t look overly impressive, I’ll admit.

But when you consider that Brickworks is a company that also consistently raises its dividend and hasn’t cut its payouts since 1976, that yield looks a whole lot more appealing from a passive income standpoint.

At its latest annual general meeting, Brickworks claimed that its shares have returned an average of 12.3% per annum over the last 54 years. That is a record I want to be a part of.

The post One ASX 200 share I’m buying for passive income before 2022 is over appeared first on The Motley Fool Australia.

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More reading

• A bull market is coming: 3 ways Warren Buffett is preparing
• Could this help ANZ close the gap on its ASX 200 competitors?
• Telstra share price on watch following latest telco data breach
• 5 things to watch on the ASX 200 on Monday
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. 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 AGL Energy Ltd (ASX: AGL) share price is down 2.88% in late morning trade, having earlier posted losses of 6.8%.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy company closed on Friday trading for $8.00 and are currently changing hands at $7.77 apiece.

It’s not just the AGL share price under pressure.

While the ASX 200 is down 0.7%, utilities stocks are broadly underperforming, as witnessed by the 4.01% fall in S&P/ASX 200 Utilities Index [ASX: XUJ] at this same time.

Here’s what’s happening.

Why are utilities stocks selling off today?

The AGL share price and other utilities stocks look to be under pressure following Friday’s announcement by Prime Minister Anthony Albanese of a pending price cap on domestic coal and gas sales.

On Thursday, 15 December, Parliament will vote on Labor’s plan to cap gas prices at $12 per gigajoule. The price for thermal coal (used to generate electricity) would be capped at $125 per tonne for the domestic market.

Those prices are well below what gas and coal producers have been receiving since energy prices rocketed in the wake of Russia’s invasion of Ukraine, resulting in some record profits for the companies.

Commenting on the planned price cap, Energy Minister Chris Bowen said (quoted by Bloomberg):

We were facing gas price rises next year of 36%, that’s not acceptable. Either you intervene and take the sting out of those price rises, or you don’t. We believe in intervening…

It’s Australian gas, under Australian soil and Australians should not be paying elevated war prices for that gas.

Bowen noted that the proposed price caps would not apply to exports or any new gas projects. He said if companies “want to make money from exports, that’s okay”.

With major energy stocks likely to come under pressure, as with the AGL share price today, not everyone is pleased with the price cap plan.

As Reuters reports, Australian Petroleum Production & Exploration Association CEO Samantha McCulloch said the price caps would reduce confidence and investment in energy projects and lead to lower supplies in the future. McCulloch called the plan a “fundamental dismantling” of the Australian gas market.

“This may be taken as a declaration of war on the gas industry on the east coast,” Credit Suisse analyst Saul Kavonic added.

AGL share price snapshot

Despite today’s dip, the AGL share price (pictured below) is up an impressive 32% over the past 12 months. That compares quite favourably to the 3% full-year loss posted by the ASX 200.

The post Why is the AGL share price tumbling on Monday? appeared first on The Motley Fool Australia.

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• Fortescue share price jumps amid Twiggy’s $4b renewables takeover
• Buying AGL shares for the dividends? Read this first
• How did the AGL share price outperform the ASX 200 by 11% in November?
• Are AGL shares a good investment right now?
• 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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This year has likely left many investors disappointed. The S&P/ASX 200 Index (ASX: XJO) is currently 5% lower than it was at the start of 2022 and the All Ordinaries Index (ASX: XAO) has had an even rougher trot, falling 7% year to date.

However, as history has shown, a bull market is coming to the ASX. Here’s how billionaire Warren Buffett is likely preparing for a market uptick.

How Buffett’s likely gearing up for a bull market

Buffett famously advises investors “be fearful when others are greedy, and be greedy when others are fearful”.

That guidance is born from the fact that markets have historically always recovered from previous downturns. Here’s a compilation of some of the investing great’s advice that might help disenchanted market watchers regain their optimism.

Look to the horizon

A bear market, or ASX downturn, is inevitably disappointing for Aussie investors. Still, it’s worth remembering that a market tumble has never lasted forever.

For instance, the ASX 200 plunged 30% amid the onset of the COVID-19 pandemic. Before the worst of the pandemic was over, however, the index hit an all-time high of more than 7,600 points in August 2021.

Of course, that was an incredibly fast onset of a bear market and an even faster return to bull territory, and past performance doesn’t guarantee future performance, but it highlights Buffett’s point.

It takes a lot more than a simple downturn to derail the market. Over the long term, the ASX has always bounced back to its prior highs.

Take advantage of a downturn

Buffett’s confidence in the market’s long-term upwards trajectory means the investor takes advantage of downturns.

The ‘Oracle of Omaha’ is arguably the face of value investing. That is, buying into a company trading at below its intrinsic value and waiting for the market to catch up.

Value investing is often amplified during downturns when fearful investors sell and others sit on the sidelines waiting for an ‘opportune moment’, thereby increasing supply over demand.

As a result, quality companies often see their share prices fall below their true value, thereby presenting a buying opportunity before a bull market.

Focus on quality

Speaking of quality companies, that’s where Buffett aims to invest. In a 2021 letter to Berkshire Hathaway shareholders, the billionaire wrote:

[W]e own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves.

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

Thus, if Buffett were to set his sights on Australia, he would likely turn to ASX shares with solid balance sheets, competitive advantages, and strong leadership – among other factors – that also happen to be trading cheaply.

And since it’s near impossible to predict when the next bull market will occur, now could be the best time to invest in quality ASX shares to capitalise on a future green streak.

The post A bull market is coming: 3 ways Warren Buffett is preparing appeared first on The Motley Fool Australia.

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More reading

• Could this help ANZ close the gap on its ASX 200 competitors?
• Telstra share price on watch following latest telco data breach
• 5 things to watch on the ASX 200 on Monday
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on 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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The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Monday.

In morning trade, the lithium developer’s shares are up 3.5% to 22.25 cents.

This means the Sayona Mining share price is now up almost 70% over the last 12 months.

Why is the Sayona Mining share price pushing higher?

Investors have been bidding the Sayona Mining share price higher this morning after the company provided an update on the North American Lithium (NAL) project in Québec, Canada. This operation is co-owned with fellow lithium developer Piedmont Lithium Inc (ASX: PLL), with Sayona Mining holding a majority 75% interest.

According to the release, the company has been awarded the final permit for NAL’s restart ahead of the planned recommencement of production in the first quarter of 2023.

Management believes this has effectively de‐risked its NAL operation and follows an extensive process by Sayona Québec.

And when Sayona Mining says extensive, it means extensive! The latest regulatory approval is one of more than 130 permits that were required to resume mining operations. These were required to ensure the successful restart of NAL’s lithium mine and concentrator in compliance with all necessary environmental regulations and obligations.

NAL to help satisfy lithium demand

Sayona Québec’s CEO, Guy Laliberté, was pleased with the news. He commented:

Since acquiring the NAL complex in August 2021 in conjunction with Piedmont Lithium (SYA 75%; Piedmont 25%), our team has been working hard to quickly restart operations to establish ourselves as a leader in lithium production, while maintaining a small environmental footprint and exemplary community engagement. Global demand for lithium is increasing weekly and it is essential that NAL go into production to help satisfy this demand.

This sentiment was echoed by Sayona Mining’s managing director, Brett Lynch. He said:

Securing all the necessary permits for NAL’s restart is another important step in the de‐risking process, and I would like to congratulate our team in Québec for this new milestone. With the planned expansions of our resource base both at NAL and at our northern lithium hub, Sayona is well placed to become the leading lithium producer in North America, facilitating the EV and battery revolution in North America.

The post Sayona Mining share price higher on North American Lithium news appeared first on The Motley Fool Australia.

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• Here are the 10 most shorted ASX shares
• Why are ASX 200 lithium shares taking a lashing today?
• The Sayona Mining share price went backwards in November. What now?
• ASX index beaters: 5 shares that have supercharged portfolios in 2022
• Here are the 10 most shorted ASX shares

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 St Barbara Ltd (ASX: SBM) share price won’t be going anywhere on Monday.

That’s because this morning the struggling gold miner requested a trading halt.

Why is the St Barbara share price halted?

The St Barbara share price was placed in a trading halt this morning after the company announced plans to merge with Genesis Minerals Ltd (ASX: GMD).

According to the release, the two gold miners plan to merge their Leonora District operations in Western Australia to form a new gold company, Hoover House.

The release notes that the merger will result in the following:

• 7Moz Mineral Resources
• 2Moz Ore Reserves
• Fully funded “capital-light” base case production target +300koz per annum (almost double St Barbara’s Leonara production target)

After a year of struggles for the St Barbara share price, as you can see below, investors will no doubt be hoping this is the catalyst to getting its shares heading higher again.

What else?

As you may have noticed above, the merger will be focused on St Barbara’s Leonora District assets.

The remainder of its assets will be demerged to form a new junior gold company, Phoenician Metals, which is then expected to be listed on the ASX.

Phoenician Metals will be focused on realising the long-term value of a portfolio including the Atlantic (Canada) and Simberi (PNG) operations, which have 6.2Moz mineral resources and 3.7Moz ore reserves. It was also have a portfolio of St Barbara royalties, $34 million in listed ASX investments, and $85 million cash.

St Barbara shareholders will receive an in-specie distribution of shares in Phoenician Metals and Hoover House will retain a 20% shareholding as a supportive cornerstone investor.

Why merge?

St Barbara’s chair, Tim Netscher, believes the merger will deliver significant value for shareholders. He said:

I am confident that this unique transaction will deliver significant value for all shareholders. The merger with our Leonora neighbour, Genesis, to create Hoover House, will accelerate our Leonora Province Plan. Shareholders will reap the benefits of more production at lower cost and lower risk from this prolific mining district.

A significant component of the value delivered by the creation of Hoover House is the unique synergies delivered by the resultant combination of assets, such as the ability to sensibly stage the development of the various orebodies and to match one party’s ore to the other party’s mill capacity.

Netscher also believes that the demerger of non-Leonora assets to form Phoenician Metals will realise value for shareholders. He added:

In parallel, select assets including Atlantic and Simberi will be de-merged to create Phoenician Metals. This will provide an opportunity for shareholders to realise the long-term value of this well-endowed portfolio in a dedicated vehicle with a high-quality management team. Phoenician Metals will attract stronger investor attention and valuation in a stand-alone entity, while allowing Hoover House to focus 100% on the Leonora District.

The post St Barbara share price halted amid major gold merger plans with Genesis Minerals appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX gold shares rocketing higher on Thursday
• Which ASX mining shares have had their dividend yields slashed the most in 2022?
• Why Beach, Block, Magellan, and St Barbara shares are dropping

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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Quality S&P/ASX 200 Index (ASX: XJO) dividend shares will likely remain high on investor wish lists in 2023.

And that’s especially true for dividend stocks paying fully franked dividends.

With inflation looking to remain well above the RBA’s target range next year and governor Philip Lowe predicting more interest rate rises on the horizon, ASX 200 dividend shares should continue to offer investors reliable income streams.

According to Plato Investment Management’s managing director Don Hamson, “I think the current environment is quite similar to 1994 when global interest rates went up, inflation spiked, and there was negative returns on bonds and equity, yet dividends kept rising.”

ASX 200 shares to deliver a 6.0% gross dividend yield

Plato forecasts that ASX 200 shares will deliver a gross yield of 6.0% in 2023.

“Our modelling is projecting that at an index level in 2023, the ASX 200 will deliver a cash yield of 4.4%, and 6.0% when including franking credits,” Hamson said.

According to Hamson:

Despite much being said about the impact of rate rises on cash-backed asset classes like term deposits and bonds, investors who rely on them continue to lose money in real terms, with inflation rising faster than interest rates.

The Australian stock market is also one of a select few that pays imputation, or franking, credits, reducing investor tax burdens. And Hamson advises seeking out stocks offering 100% franked payouts.

“I think it goes without saying that favouring companies that pay fully franked dividends, where possible, in 2023 is a no-brainer,” he said.

Three specific ASX 200 dividend shares that Plato believes will be “strong dividend payers” in 2023 are:

• Macquarie Group Ltd (ASX: MQG), 3.8% trailing yield
• Woodside Energy Group Ltd (ASX: WDS), 9.0% trailing yield
• BHP Group Ltd (ASX: BHP), 9.8% trailing yield

A word of caution

Hamson adds that investors should be aware of dividend traps in the year ahead.

Remember, the yields you see (and those quoted above for the three ASX 200 dividend shares) tend to be trailing yields. That means they’re based on current share prices and the dividends paid out over the past 12 months. There are no guarantees those payments will be maintained in 2023.

According to Hamson:

We think many companies in the resources and financials sectors are likely to continue to be strong and sustainable dividend payers into 2023. However, it’s imperative investors avoid dividend traps – and there’ll be many to emerge over the coming year.

With that word of caution noted, Hamson added, “We believe investors must move to where the dividends are flowing.”

How have these three ASX 200 dividend shares been performing?

Atop their dividend payouts, here’s how these ASX 200 shares have been performing: the BHP share price has gained 16% over the past 12 months; Woodside shares have gained 53%; and the Macquarie share price has gone the other direction, down 17%.

You can see their performance in the charts below:

The post 3 ‘strong’ ASX 200 dividend shares for 2023 revealed: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Could the VAS ETF outperform the BHP share price in 2023?
• Why did ASX 200 iron ore shares like BHP have such a cracking Friday
• The difference between uncertainty and risk’: 5 ASX shares this fundie is backing for 2023
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear

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 recommended Macquarie 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 Westpac Banking Corp (ASX: WBC) share price is in the red this morning amid news the bank is no longer pursuing Tyro Payments Ltd (ASX: TYR).

The bank said submitting an acquisition offer for the ASX fintech isn’t in its shareholders’ best interests for the time being.

Right now, the Westpac share price is 0.3% lower at $23.37.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.7% at the time of writing while the bank’s home sector, the S&P/ASX 200 Financials Index (ASX: XFJ), has slipped 0.34%.

Let’s take a closer look at today’s news from the ASX 200 bank share.

Westpac’s Tyro takeover talks binned

The Westpac share price is slipping alongside the broader market on Monday amid news the bank won’t be submitting a bid for ASX payments provider Tyro Payments.

Indeed, both parties previously on the hunt for the fintech have been cut from the race today.

Tyro confirmed neither Westpac nor competing suitor Potentia Capital Management was willing to post a bid its board considered fair value. Thus, the fintech has ceased discussions with both parties.

In October, the big four bank confirmed it was in takeover talks with the smaller financial stock. In a release to the ASX today, Westpac said:

Westpac has now undertaken due diligence on Tyro and has decided that submitting an offer is not in the best interests of Westpac shareholders at this time.

The bank initially said acquiring the fintech would strengthen its small business proposition, allowing it to better support customers and grow merchant acquisition. That would particularly be the case in the hospitality and healthcare sectors.

Tyro rejected a $1.27 per share bid put forward by a Potentia-led consortium in September. Today, it revealed the consortium put forward another rejected bid, this time for $1.60 per share – representing an enterprise value of around $875 million.

On both occasions, the company said the offer was materially below the company’s fundamental value and highly conditional.

Tyro today said it’s still open to takeover talks as long as any offer “represents compelling value”.

Westpac share price snapshot

The Westpac share price has outperformed in 2022. The stock is currently 8% higher than it was at the start of the year. It has also lifted 13% since this time last year.

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

The post Westpac share price slumps as Tyro takeover scrapped appeared first on The Motley Fool Australia.

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• Tyro share price crashes 22% after ending takeover talks with Westpac and Potentia
• Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received
• Could the VAS ETF outperform the BHP share price in 2023?
• Earn passive income with these strong ASX 200 dividend shares: brokers
• After sliding into the red last month, what’s the outlook for the Westpac share price in December?

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and 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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The global economy is made up of many different economic cogs. Things may be starting to change, which could affect some ASX shares more than others.

According to thoughts from Blackrock, this new period is “the most fraught global environment since World War Two”. Blackrock said:

We see geopolitical cooperation and globalisation evolving into a fragmented world with competing blocs. That comes at the cost of economic efficiency. Sourcing more locally may be costlier for firms, and we could also see fresh mismatches in supply and demand as resources are reallocated.

BlueScope Steel Limited (ASX: BSL)

BlueScope is one of the largest steel businesses in Australia. It also has operations in the US and New Zealand.

Steel is one of those commodities that can be produced worldwide, so in many ways, BlueScope is competing on a global stage. But, if western countries were to focus on just buying from western companies, or even just buying from domestic sources, then BlueScope could be a beneficiary.

While there may be fluctuations in demand, the ASX share could achieve stronger margins for its production.

However, it has recently come under pressure after judge Justice O’Bryan handed down a decision against BlueScope that it had engaged in “cartel conduct” as it “attempted to induce competitors to enter not price fixing arrangements” between September 2013 to June 2014.

The BlueScope Chair John Bevan said in an announcement to the ASX:

In the time since BlueScope first became aware of the conduct which led to the legal proceedings, BlueScope has implemented a number of steps to substantially strengthen its programs to enhance awareness of, and compliance with, competition law. The company has also made improvements to our organisational structure, internal systems and processes, training for employees, and developed in-house advisory capabilities in competition law.

Despite that ruling, the BlueScope share price is up 6% over the past month.

Transurban Group (ASX: TCL)

Transurban is a leading toll road builder, owner and operator. It has a number of toll roads in Australia and North America.

A lot of traffic goes on Transurban’s roads. People would still want to go places in a time-efficient manner, even if globalisation were to be reduced.

The ASX share is currently benefiting from a recovery from traffic after the impacts of COVID-19. It’s also seeing its tolls rise at a stronger rate because the indexation is linked to inflation, which is elevated at the moment.

Despite the higher interest rates, Transurban shares are flat for the year, and it has beaten the performance of the S&P/ASX 200 Index (ASX: XJO) by a small amount.

Cobram Estate Olives Ltd (ASX: CBO)

This may not be a familiar business to some investors, it is a farmer of olives and producer of Cobram Estate extra virgin olive oil, as well as other brands. It has a market value share of 49% in Australian supermarkets of extra virgin olive oil sales, and a 36% market value share of total olive oil sales.

A couple of months ago at its annual general meeting (AGM), the ASX share noted that the:

…vertically integrated model shields us from supply chain disruption. Unlike most food companies, our model extends from olive farming through to the sale of branded, locally grown extra virgin olive oil. The vast majority of our production and sales are within the two countries we operate – Australia and USA.

Despite being positive about the company’s future, the Cobram Estate Olives share price is down around 25% in 2022.

The post Home grown: 3 ASX shares that could benefit from ‘de-globalisation’ 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 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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ASX healthcare shares are an interesting sector to look at for investment opportunities. Not only do many businesses in the industry offer defensive shares, but they are also benefiting from long-term growth.

Investment group Blackrock recently commented on its investment thoughts for 2023, saying:

In equities, we believe recession isn’t fully reflected in corporate earnings expectations or valuations – and we disagree with market assumptions that central banks will eventually turn supportive with rate cuts. We look to lean into sectoral opportunities from structural transitions – such as healthcare amid aging populations – as a way to add granularity even as we stay overall underweight.

We like healthcare given appealing valuations and likely cashflow resilience during downturns.

Here are three ASX healthcare shares that could benefit from growing demand for healthcare:

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics company. It provides a “full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide”.

Visage Imaging is a medical imaging solution business. Its platform is “ultra-fast, clinically rich, and highly scalable”, the company says.

It is benefiting from society’s desire for increasing technological abilities to help medical practitioners and patients.

The ASX healthcare share is winning major new contracts as well as renewing existing contracts. One of the most promising factors about the renewals is that they are being negotiated at a higher transaction cost than the original pay-per-view contract. An example of this was the University of Florida, seven-year, $15.5 million renewed contract.

Over the last six months, the Pro Medicus share price has gone up by 50%. However, according to Commsec, the Pro Medicus share price is valued at 109 times FY23’s estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara predominately aims to help save families from breast cancer, with “advanced cancer screening science and protocols”. It’s focused on detection and increasing prevention for women while digitising and reducing waste for medical professionals.

The company said in its FY22 half-year result that approximately 40.5% of screened women in the US have had contact with at least one Volpara product in obtaining their images and data. In HY22, operating expenses only increased by 3.4%, while revenue grew by 37%.

The ASX healthcare share is aiming to grow its average revenue per user (ARPU) to have more Volpara products used on patient images. The company is also looking to reach operating cash flow breakeven by the fourth quarter of FY24.

After a 41% fall of the Volpara share price in 2022, it’s now at a much cheaper level than it was in 2021 despite its ongoing revenue growth. The business is also working on growing its presence in lung cancer screening.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a leading pathology and radiology business on the ASX. The advancement of technology is enabling the company to provide a more detailed pathology service for patients and medical practitioners.

Its base revenue continues to grow. Geographic expansion, as well as wider service offers, can be a tailwind for the ASX healthcare share.

One of the intriguing elements of Sonic’s business is the 20% investment in artificial intelligence (AI) business Harrison.ai, which has an existing radiology AI product called Annalise.ai. This is a market leader in radiology AI, according to Sonic. A brain CT scan product has also been completed, with tools for other modalities to follow.

Franklin.ai is a joint venture between Sonic and Harrison.ai to develop ‘best-in-class’ diagnostic tools for pathology. It’s targeting a first product release within two years.

The Sonic Healthcare share price is down over 30% in 2022 to date. According to Commsec, this puts the business at 19 times FY23’s estimated earnings.

The post Why I’d invest in these 3 ASX shares to combat this one inflationary megatrend 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 positions in and has recommended Pro Medicus and Volpara Health Technologies. The Motley Fool Australia has positions in and has recommended Pro Medicus and Volpara Health Technologies. The Motley Fool Australia has recommended Sonic Healthcare. 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 Rio Tinto Ltd (ASX: RIO) share price is trading lower on Monday morning.

At the time of writing, the mining giant’s shares are down 1% to $115.90.

Why is the Rio Tinto share price falling?

The Rio Tinto share price is falling today after weakness in the materials sector offset the release of a positive update on its proposed takeover of Turquoise Hill Resources.

The mining giant is aiming to acquire the Canadian miner in order to increase its stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.

According to today’s update, things have taken a major step forward after Rio Tinto received the required support from Turquoise Hill Resources shareholders for its proposed acquisition of the approximately 49% of the issued and outstanding shares of Turquoise Hill that it does not currently own.

What’s next?

Due to the transaction is being conducted by way of a Canadian plan of arrangement, it remains subject to the final approval of the Supreme Court of Yukon. A hearing has been scheduled for 14 December.

If all goes to plan, completion of the acquisition is expected in the days following court approval, after customary closing procedures.

Rio Tinto’s Copper chief executive, Bold Baatar, was pleased with the news. Baatar commented:

We welcome the support from minority shareholders, which is a key milestone in our acquisition of TRQ. This transaction will deliver significant benefits for all shareholders, and allow us to progress the Oyu Tolgoi project in partnership with the Government of Mongolia with a simpler and more efficient governance and ownership structure.

The post Rio Tinto share price falls despite Turquoise Hill takeover progress 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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