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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• Could the VAS ETF outperform the BHP share price in 2023?
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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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If you’re wanting to boost your passive income with some dividend shares, then you may want to look at the two named below.

Here’s what you need to know about these buy-rated ASX dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors to look at is footwear and youth fashion retailer Accent.

It owns a growing stable of brands including HypeDC, Platypus, Stylerunner, The Athlete’s Foot, and Glue Store.

The team at Bell Potter is positive on the retailer and has put a buy rating and $2.10 price target on its shares. Its analysts were pleased with a recent update, commenting:

Accent Group (AX1) provided a trading update for the first 18 weeks of FY23, Group owned sales +52% on pcp and Gross margins +570bps vs down 700bps in the pcp. We see this as a solid start and expect AX1 to be well positioned as tougher comps are faced in Nov/Dec. We view the performance into the key seasonal period to be supported by the company’s healthy inventory position as per company’s commentary.

In respect to dividends, Bell Potter is expecting fully franked dividends of 10 cents per share in FY 2023 and then 12 cents per share in FY 2024. Based on the current Accent share price of $1.79, this would mean yields of 5.6% and 6.7%, respectively,

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Another ASX dividend share to look at is Dalrymple Bay Infrastructure. It is an Australian infrastructure company and the long term operator (99-year lease) of the Dalrymple Bay Coal Terminal (DBCT), which provides terminal infrastructure and services for producers and consumers of Australian coal.

Given the very favourable outlook for Australian coal, Dalrymple Bay Infrastructure appears well-placed to deliver strong earnings in the near term. This is expected to lead to some bumper dividend payments in the coming years.

Morgans is a fan and has an add rating and $2.67 price target on its shares. It recently 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. In the current low interest rate environment, income-oriented investors will be attracted to DBI’s high cash yield and commitment to 1-2% [now 3% to 7%] pa DPS growth.

As for dividends, its analysts are forecasting dividends per share of ~21 cents in FY 2022 and FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.40, this will mean yields of 8.75%.

The post Need a passive income boost? Experts say these ASX dividend shares are buys 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 recommended Accent 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 Tyro Payments Ltd (ASX: TYR) share price is under pressure on Monday morning.

In early trade, the payments company’s shares are down 22% to $1.15.

What’s going on with the Tyro share price today?

Investors have been selling down the Tyro share price following the release of a takeover update.

According to the release, the company has ended takeover talks with both Potentia and Westpac Banking Corp (ASX: WBC).

The release notes that following extensive discussions with these parties and careful consideration by the board with assistance from its external advisers, it has decided to end current discussions in relation to a possible change of control transaction.

This is because it believes those discussions have not resulted in a proposal that fairly values Tyro. That’s despite Potentia lifting its offer to $1.60 per share, which values the company at an enterprise value of approximately $875 million on a fully diluted basis.

Management notes that this is still materially lower than where the Tyro share price has traded this year. For example, its 52-week high is almost double Potentia’s offer price at $2.93.

Westpac has also notified the company that it has decided that submitting an offer to Tyro is not in the best interests of its shareholders at this time.

What now?

Tyro advised that it remains open to engaging with any credible change of control proposal it receives that represents compelling value for shareholders.

For now, though, the company’s board and management will continue to focus on executing on Tyro’s current strategy.

Positively, Tyro confirms that it is tracking towards the top end of guidance for all operating metrics and is making good progress executing on its three strategic priorities for FY 2023. These are Tyro Go, Tyro Pro, and automated customer onboarding.

The post Tyro share price crashes 22% after ending takeover talks with Westpac and Potentia appeared first on The Motley Fool Australia.

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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 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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Coles Group Ltd (ASX? COL) shares haven’t done that much in 2022 compared to many other ASX shares which have fallen significantly. The supermarket giant’s share price is currently down 6% in the year to date.

However, I don’t think a business should be judged on short-term price movements. Instead, I think a company’s long-term plan needs to be evaluated.

Coles’ strategy

The business points to consistent growth throughout economic cycles with an average compound annual growth rate (CAGR) of 4.8% and liquor retailing CAGR of 7% over the last two decades.

The company has a number of goals, hopefully, all of which can help Coles shares in the long run.

Coles wants to be Australia’s most sustainable supermarket group. It’s working on transitioning to renewable energy by FY25. It’s also aiming for 100% recyclable, reuseable, or compostable own-brand packaging in Australia by 2025.

Another area of focus is to “win in food and drink”, with a strong omnichannel offering. It’s investing in a “unified customer experience” through website enhancements and increased investment with e-commerce partner Ocado, targeting an FY24 launch. Coles is also aiming for net new space growth of around 1.5% per annum.

The business wants to offer great value exclusive brands, as well as be a destination for health and convenience. It’s looking to expand its ‘exclusive to Coles’ range to around 40% of sales. Coles also wants to improve its ‘Coles Kitchen’ and ‘I’m free from’ brands.

Perhaps the most important element of the longer-term plan is ‘smarter selling’. Indeed, this could have a major impact on Coles shares. The company wants to achieve a long-term structural cost advantage through programs including data, automation, and technology partnerships.

Smarter selling

It’s working on further automating its supply chain and operations through German logistics company Witron and Ocado enhancements. Coles wants to accelerate self-service transformation in-store and invest further in technology, artificial intelligence (AI), and data.

The company says that it’s on track to deliver cumulative smarter selling benefits of $1 billion by the end of FY23 under its four-year program. In the first quarter of FY23, it opened three new supermarkets, taking the total network to 838, while also opening seven liquor stores.

Strategies include front-of-store loss prevention, ‘dynamic markdowns’, e-commerce van optimisation, and energy savings.

It’s spending a total of around $1.4 billion on the Witron and Ocado transformation projects. It’s a big spend but, hopefully, it helps Coles shares in the long term.

The company says the $1.04 billion spent on Witron is expected to deliver: safer working environments with improved service at a lower cost, reduced lead time to deliver better availability of stock, and a doubling of the volume on half the footprint with around two-thirds of the operating costs of a standard site. There are two warehouses being built – the one in Queensland is expected to be completed in the third quarter of FY23, while the NSW one is expected to be completed in the third quarter of FY24.

With Ocado, Coles hopes to achieve a seamless digital customer experience, improved product availability and freshness, greater product range, and increased network capacity.

Coles share price valuation

Looking ahead to FY24, according to Commsec, Coles shares are valued at under 21 times FY24’s estimated earnings and could pay an annual dividend per share of 66 cents per share, which is a grossed-up dividend yield of 5.6%.

The post Where will Coles shares be in 5 years? 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 Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX share market has seen plenty of volatility this year. A number of businesses have dropped 40%, 50% or even more. However, a select few have managed to go up by more than 100% over the last 12 months.

With that level of rise, past performance is definitely not a reliable indicator of future performance.

However, we have also seen in the past that some winners have kept on winning. Over the past decade, CSL Limited (ASX: CSL), Altium Limited (ASX: ALU) and Pro Medicus Ltd (ASX: PME). But, that level of long-term growth is rare, requiring consistent strong growth over many years.

Let’s have a look at some of the strongest performers and consider whether they could keep rising.

Terracom Ltd (ASX: TER)

One of the strongest performers on the ASX over the past year has been Terracom Ltd (ASX: TER). It has risen by more than 340%.

Terracom is a coal miner with a presence in both Australia and South Africa. It says that it’s a low-cost producer focusing on delivering “exceptional outcomes”.

The ASX share recently recommenced paying dividends, and its intention is to pay quarterly dividends. At the moment it’s paying a quarterly dividend of 10 cents per share, which is an annualised grossed-up dividend yield of 67%. Its policy is to pay between 60% to 90% of net profit after tax (NPAT) on a quarterly basis.

It has benefited enormously from the higher coal price and the board is now considering a share buyback. The company is also considering future projects and acquisitions which the company comes across.

However, will the coal price keep rising? I’m not sure about that, but it seems that a lot of dividend income is headed investors’ way.

MMA Offshore Ltd (ASX: MRM)

This ASX share describes itself as a primary contractor to oil and gas operators, providing autonomous underwater vehicle solutions to collect seafloor and sub-seafloor data to assist in the engineering design of subsea infrastructure.

Over the last year, the MMA Offshore share price has gone up by around 115%.

The company is working on capitalising on “momentum” in both traditional and new energy markets while working to maximise operating leverage through increased utilisation and rates. It continues to seek growth opportunities for acquisitions.

Its outlook for the ASX share is “positive”, with significant activity forecast for oil and gas, as well as offshore wind, over the next five years. Vessel and subsea services markets are “continuing to improve”.

The MMA Offshore share price is still down 30% from the pre-COVID level. But, I’m not sure if it can double again from here in a short amount of time. But, over time, it may be able to achieve more for shareholders.

Warrego Energy Ltd (ASX: WGO)

Warrego Energy describes itself as a UK and Australian-based petroleum exploration, development and production company with assets in Australia and Spain.

The Warrego Energy share price has soared this year, rising by around 145% over the last 12 months.

The ASX share is benefiting from a bidding war for the business.

It was recently announced that the Warrego board has unanimously recommended Gina Rinehart’s Hancock offer of 28 cents of cash per Warrego share.

I think it’s highly unlikely that the Warrego Energy share price will double again from here. Beach Energy Ltd (ASX: BPT) has already announced that it’s not going to match Hancock’s offer. Time will tell if there are any other bidders.

The post These 3 ASX shares have doubled, can they do it again? appeared first on The Motley Fool Australia.

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• Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today
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Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, CSL, and Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus. 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 ASX share market has been through plenty of difficulties in 2022. But, 2023 could be just as interesting as 2022 for a number of reasons.

This year has seen direct COVID-19 impacts fade on some parts of the economy. For example, we’re seeing travel demand rebound, which is helping ASX travel shares return to profitability.

But, in 2023, there could be a number of areas that could influence the ASX share market return.

With each area, it’s very hard to say how things are going to land, so any predictions are just guesses.

China COVID restrictions to ease?

The Asian superpower is still facing difficulties with COVID. It has been trying to restrict the transmission of the virus, even though other countries have adjusted their strategy.

However, some major Chinese cities have started to lift COVID curbs, such as Beijing and Shanghai, where people no longer need to present a negative COVID test to enter certain buildings. China is also working on vaccinating its older, more vulnerable citizens.

The lockdowns have limited economic activity, but a lifting of restrictions could mean more demand for some commodities. The iron ore price has already lifted in anticipation of more economic output in the country.

A lifting of Chinese restrictions could be a boost for ASX share market names like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

Mixed outlook for oil

The Woodside Energy Group Ltd (ASX: WDS) share price has had a volatile time over the last 12 months.

It benefited enormously from higher energy prices after Russia invaded Ukraine. But, with the risk of the global economy tipping into a recession, oil demand could fall. The oil price is now essentially back to where it was at the start of the year even though the Ukraine conflict continues. But, if the Chinese economy fully reopens, could this be another boost for the oil price if oil demand from 1.4 billion people returns to normal?

I think the movements and direction of the oil price over 2023 could have important indirect impacts on the ASX share market – not just for Woodside shares, but many other parts of the market and economy as well.

Widespread inflation to fall?

A reduction in the oil price could help reduce the level of inflation. Not only would the oil price itself reduce inflation, but many other parts of the economy utilise energy for transportation, manufacturing and so on.

Inflation is exceptionally high at the moment, as noted by many central bankers. That’s exactly why interest rates have been going higher – to reduce economic demand.

With supply chains hopefully returning to normal and some commodity prices being down, the inflation numbers could look a lot better. Remember, that doesn’t necessarily mean that there will be an overall reduction in prices. A product going from $100 to $110 in one year is inflation of 10%, but then staying at $110 for the next year is inflation of 0%, even though the price remained high.

If inflation reduces, then central banks could stop their rate increases and this could be a boost for the ASX share market.

The ‘real’ economy

A lot of focus is going to be on how the ‘real’ economy performs in the coming months. How will households and businesses cope with the higher interest rates, as well as high prices because of inflation.

The retailers of Wesfarmers Ltd (ASX: WES), JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN), Premier Investments Limited (ASX: PMV) and so on, could see their sales impacted if things go south. But it may not be anywhere near as bad as some are fearing.

Other areas of the economy could also be affected by a downturn – construction could be an important one. The Housing Industry Association said that new home sales fell 23% over the three months to November, compared with the prior quarter, as reported by the Australian Financial Review.

It’ll be interesting to see how this plays out for names like Stockland Corporation Ltd (ASX: SGP), Mirvac Group (ASX: MGR) and CSR Limited (ASX: CSR).

ASX growth shares to rebound?

With how much pain there has been for ASX growth shares during 2022, it will be interesting to see if there is a rebound for some share prices, even if economic conditions aren’t looking great.

Share prices often move before the numbers show that things have gotten worse, or better.

I think it’s quite possible that some of the ones that have fallen the hardest, like Xero Limited (ASX: XRO) and Temple & Webster Group Ltd (ASX: TPW), which are both down more than 50%, could see a bounce.

If Xero shares were to rise 20% from here – a return that I think would beat the ASX share market in 2023 – the Xero share price would only get back to $84, which would be back to September 2022 prices.

Interest rate-dependent businesses may not recover so much, because interest rates are unlikely to drop heavily over 2023 (in my opinion) because it could take some time for inflation to subside.

The post 5 investments themes to watch on the ASX share market in 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman, Temple & Webster Group, and Xero. The Motley Fool Australia has positions in and has recommended Harvey Norman, Wesfarmers, and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, Premier Investments, and 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares could get a boost if the ASX bank share can be successful with the commercial bank side of its business.

On Friday, the bank reported it had hired Clare Morgan as its group executive for its Australian commercial business.

She was hired from S&P/ASX 200 Index (ASX: XJO) bank share Commonwealth Bank of Australia (ASX: CBA) where she was the executive general manager of small business banking.

Morgan will be in charge of the ANZ commercial business in Australia. The team she leads will serve customers ranging from sole proprietors to emerging corporates, as well as private banking clients.

Why is this appointment so important?

ANZ CEO Shayne Elliot explained the reason why appointing Morgan was important and how integral ANZ sees the commercial side of its business:

Clare is an outstanding leader and I’m confident her business banking experience will be an asset to both ANZ and our customers. This is a significant appointment for ANZ as we continue to transform how we serve our commercial customers through the better use of digital platforms and data.

While banking small businesses has always been core to what we do, it’s the right time to increase focus on this market, given it is a significant opportunity for ANZ and the progress we have made in other parts of our business.

Clare joins an experienced team running our major businesses with Antonia Watson leading New Zealand through a period of major change, Maile Carnegie returning Australia Retail to growth and Mark Whelan having transformed Institutional into one of the best run wholesale banking businesses globally.

ANZ is “firing”

Talking to the Australian Financial Review Weekend, Elliot had some positive things to say about how the business is performing.  He said:

With the retail in Australia back to growth, ANZ Plus firing and Clare appointed as our new Commercial banking head, our priority now is getting Suncorp Bank approved and ready for integration.

It was also reported that ANZ is targeting up to $2 billion in projected investment spending, and targeting a return on it, as well as actively monitoring the ideas.

Elliot also said that the ASX 200 bank share’s number one objective — to restore momentum in home loans — has been fulfilled.

Aside from commercial banking, ANZ is now focused on getting approval for its acquisition of the banking division of Suncorp Group Ltd (ASX: SUN).

Where to next for the ANZ share price?

ANZ shares have risen by 8% over the past six months. Amid rising interest rates, the broker Credit Suisse is quite optimistic about where ANZ is headed. A price target is where the broker thinks the share price will be in 12 months. Credit Suisse’s price target is $30, a rise of around 23%.

The broker estimates put the ANZ share price at nine times FY23’s estimated earnings with a potential grossed-up dividend yield of 9.9%.

The post Could this help ANZ close the gap on its ASX 200 competitors? 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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I am invested in a number of ASX dividend shares in my portfolio. The biggest S&P/ASX 200 Index (ASX: XJO) share investment in my portfolio is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares.

The business is one of the oldest on the ASX. In fact, it has been listed on the ASX since 1903. It’s also one of the names that I’ve been invested in for the longest, due to several reasons.

Strong diversification

Soul Pattinson may be the most diversified share in the ASX 200.

It describes itself as an investment house with investments in a diverse portfolio of assets across a range of industries.

The company started off as a pharmacy business but has since invested in a wide array of companies.

It has held strategic positions in companies like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC) for decades. These are three of its biggest positions. In percentage terms, it owns 12.6% of TPG, 43.3% of Brickworks, and 39.9% of New Hope.

Other strategic investments include Asian telco Tuas Ltd (ASX: TUA), fund manager Pengana Capital Group Ltd (ASX: PCG), Asian-listed healthcare business Apex Healthcare, and resource business Aeris Resources Ltd (ASX: AIS).

It then has a number of other portfolios.

It has a large cap portfolio with names like Macquarie Group Ltd (ASX: MQG), CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), Transurban Group (ASX: TCL), Commonwealth Bank of Australia (ASX: CBA), and BHP Group Ltd (ASX: BHP).

Next, the ASX 200 dividend share has a private equity portfolio, worth $654 million at the end of FY22. Investments include electrical business Ampcontrol, financial services business Ironbark, swimming school business Aquatic Achievers, and an agricultural portfolio. It recently invested more money into agriculture as it looks to build its farming aggregations.

It also has an ‘emerging companies’ portfolio. Investments here include names like Clover Corporation Limited (ASX: CLV), Lindsay Australia Ltd (ASX: LAU), and Paladin Energy Ltd (ASX: PDN).

On top of that, the company has a structured yield portfolio. It’s investing in financial instruments across the capital structure for “improved risk adjusted returns on attractive opportunities”. This portfolio currently has a yield of more than 10%, according to the company’s AGM update.

Soul Patts currently has a small property portfolio as well, although it has a large indirect interest in property via Brickworks’ industrial portfolio.

Not only are Soul Pattinson shares highly diversified, but the company has the ability (and ambition) to keep investing in new businesses and expanding its existing divisions. Indeed, its ability to shift the portfolio can mean it’s always future-focused.

I think its relatively defensive-focused portfolio is why the Soul Pattinson share price has held up so well in 2022.

Dividends

One of the most attractive things to me about this ASX 200 dividend share is its commitment to paying growing dividends to shareholders. Although, of course, dividends aren’t guaranteed.

The investment company has grown its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903. Certainly, I think it has an impressive dividend track record.

Soul Pattinson’s cash flow comes from the dividends, distribution, and interest of its investment portfolio.

Each year, after paying for its operating expenses, Soul Pattinson then sends a majority of its cash flow to shareholders and then re-invests the rest for more opportunities.

In FY22, the ASX 200 dividend share had an ordinary dividend payout ratio of its net cash flow from investments of 74.7%. It also paid a special dividend because of the elevated dividend income coming from New Hope due to a buoyant coal market.

Long-term capital growth

No one knows what share prices are going to do in the short term.

But I think Soul Pattinson’s method of long-term investing in businesses with compelling growth plans continues to pay off. The fact that it also adds to its investment portfolio from its cash flow every year makes it almost inevitable that the portfolio grows.

For example, it recently invested another $73 million in agriculture and $181 million into its structured yield portfolio in the first quarter of FY23.

In the five years to 31 July 2022, Soul Pattinson shares had delivered total shareholder returns of an average of 10.5% per annum. This was 2.1% per annum better than the All Ordinaries Accumulation Index (ASX: XAOA). Though past outperformance is not a guarantee of future performance.

Foolish takeaway

I think Soul Pattinson shares have the potential to keep paying good dividends and delivering attractive long-term capital growth while having the diversification to reduce risks and volatility.

I’m looking to steadily buy more of the ASX 200 dividend share in the coming years.

The post This ASX 200 dividend share is my biggest stock market investment. Here’s why appeared first on The Motley Fool Australia.

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• Beat the All Ordinaries with this unstoppable ASX dividend share
• 3 passive income ASX 200 dividend shares that can help make you richer
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Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL, Clover, Lindsay Australia, and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks, Washington H. Soul Pattinson And, and Wesfarmers. The Motley Fool Australia has recommended Lindsay Australia, Macquarie Group, and Tpg Telecom. 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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