The S&P/ASX 200 Index (ASX: XJO) is full of ASX dividend shares. However, I think only a certain number of them will be able to pay good passive income for decades to come.

I’m not going to talk about the big ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). They may well be around for decades, but there are other ASX 200 dividend shares that are worth considering.

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

Soul Pattinson may be the leading idea when it comes to dividend longevity. The investment business has been listed on the ASX since 1903. It has also paid a dividend every year since it listed. On top of that, the company has grown its dividend every year since 2000, the longest record on the ASX, though of course nothing is guaranteed going forwards.

I think it will be able to keep paying long-term dividends because of its ability to shift its portfolio to be future-focused and become more diversified.

It is investing in various sectors for long-term growth such as electrical parts, agriculture, and swimming schools, while also having its traditional portfolio of blue chips and strategic positions in names like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC).

It’s the name in my portfolio that I think is the one I’ll likely hold the longest. At the current Soul Pattinson share price, it has a grossed-up ordinary dividend yield of 3.6%.

APA Group (ASX: APA)

APA is one of the largest energy infrastructure businesses in Australia. It owns national gas pipelines, renewable energy generation assets, gas storage, and gas power generation.

The ASX 200 dividend share has been listed since 2000. Its energy asset portfolio continues to grow as it builds more pipelines. It also recently acquired the Basslink – a cable that links Tasmania with the mainland and enables the island state to export renewable energy.

Gas could be an important part of the energy mix for decades, particularly as a replacement for coal. Plus, the business is working on a way to transport hydrogen through its pipelines. APA is also looking at renewable energy and other electricity transmission assets.

It has grown its distribution every year for a decade and a half. It’s expecting to pay an annual distribution of 55 cents per security in FY23, translating into a distribution yield of 4.9%.

BHP Group Ltd (ASX: BHP)

BHP is the largest company on the ASX, with a market capitalisation of $235 billion according to the ASX. The company itself was incorporated in 1885, but it can trace its roots back to the 1850s.

The ASX 200 dividend share has been paying dividends for many years, and I think this can continue. I believe that the world will continue to need resources, perhaps forever. BHP can produce what the world needs. It’s focused on growing in areas like copper, nickel, and potash but in the future, it could be something else. BHP can adjust its resource portfolio over time as it sees fit.

I don’t think BHP is the type of business that can pay ever-growing dividends. But its dividends can rise with the cash flow when times are good. I think it makes sense to invest in BHP shares when the company seems to be going through a cyclical low point.

The post 3 ASX 200 dividend shares that could provide a lifetime of passive income appeared first on The Motley Fool Australia.

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More reading

• Can investors bank on a strong finish to 2022 for NAB shares?
• Bought $1,000 of BHP shares 10 years ago? Here’s how much dividend income you’ve received
• The ASX 200 share to buy that just took a 24% dive: expert
• The iron ore price just posted its biggest-ever monthly gain. What’s going on?
• ‘Long & bullish’: Expert picks 2 ASX shares to buy as investors flock back to market

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 and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended 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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AGL Energy Limited (ASX: AGL) shares used to pay large dividends. In 2018 and 2019 the business was paying an annual dividend per share of more than $1.15. That would be a grossed-up dividend yield of close to 20% at the current AGL share price.

But, the dividend has been sinking since then. The FY22 total dividend was 26 cents per share, unfranked. It has dropped a long way from those pre-COVID years. At the current AGL share price, that translates into a dividend yield of 3.2%.

So, should investors look at the energy business for dividend income today?

Dividends to rebound?

Ultimately, the dividend decisions are up to the board of directors. But, the level of profit that a business makes can have a big impact on the amount of extra cash flow a business has to pay dividends.

In FY23, AGL Energy is expected to generate underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $1.25 billion to $1.45 billion, while underlying net profit after tax (NPAT) could be between $200 million to $320 million.

AGL said that those ranges, with an anticipated increase in underlying EBITDA of approximately $100 compared to FY22, reflects the “resilience of AGL’s earnings on the back of its largely hedged position for FY23.”

In per-share terms, the numbers on Commsec suggest that AGL could generate 40 cents of earnings per share (EPS) in FY23 and 80 cents per share in FY24.

The dividend estimate for FY23 is 29 cents, which would be a yield of 3.6%. FY24 could see an annual dividend per share of 6.7%

FY24 is expected to be stronger because management expects AGL to “benefit from sustained higher wholesale electricity pricing as historical hedge positions roll-off.”

Cash flow to be directed to renewables?

AGL now has an ambitious plan to exit coal-fired generation by the end of FY35 and accelerate its transition to an integrated low-carbon energy leader.

The company’s annual greenhouse gas emissions are expected to reduce from 40 million tonnes to net zero after the targeted closure.

It’s going to progressively decarbonise its asset portfolio with new renewable and firming capacity. The goal is to supply customers with up to 12GW of new energy generation and firming capacity, requiring a total investment of up to $20 billion, before 2036, funded from a combination of assets on AGL’s balance sheet, offtakes and partnerships.

This includes an interim target to have up to 5GW of new renewables and firming in place by 2030.

It will be a tricky balance for AGL’s leadership to spread the money between dividends and decarbonisation. I’m not sure if a high dividend payout ratio will return any time soon.

AGL share price snapshot

Over the last month, AGL shares have risen by around 10%.

The post Buying AGL shares for the dividends? Read this first appeared first on The Motley Fool Australia.

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More reading

• 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
• Why is the AGL share price falling on Thursday?
• How much dividend income would $20,000 worth of AGL shares have netted you in 2022?

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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The Qantas Airways Limited (ASX: QAN) share price flew higher in November. But does strong demand mean the airline can take off in December?

Certainly, the lockdown era of COVID was very difficult for the airline. But now that people are allowed to fly again, it’s a boom time for the business.

Let’s look at what the business said in its latest update about the current situation.

FY23 update

Qantas said that continued strength in travel demand has resulted in the airline upgrading its profit expectations for the first half of FY23.

It’s expecting underlying profit before tax of between $1.35 billion to $1.45 billion. That updated guidance represented a $150 million increase to the profit range given in early October. So, in less than two months, the company’s seen a big increase in expected profit. Of course, more profit is usually a bonus for the Qantas share price.

Why is this happening? Qantas says consumers continue to put a “high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism”.

Qantas has put $200 million towards rostering additional staff, continued recruitment, and reserve aircraft. This is aimed to help the airline to be the “most on-time domestic airline”, as it reportedly was in October.

Going into December, the business is expecting its net debt to drop to between $2.3 billion to $2.5 billion by the end of the month, around $900 million better than previously expected. It is due to an “acceleration of revenue inflows as customers book flights”.

Qantas is also expecting to add capacity “as quickly as possible in the second half of the year while maintaining operational reliability”.

Do experts rate the Qantas share price as a buy?

A number of brokers rate Qantas shares as a buy, including UBS, Ord Minnett, and Morgan Stanley which have price ratings of $7.60, $8.50, and $9 respectively. That implies a possible rise in the Qanta share price of between 20% to 45% over the next year.

The brokers think that the strength can continue into FY24 and the better-than-expected balance sheet could lead to more capital initiatives for shareholders. Qantas is already carrying out a share buyback of $400 million announced in August. It is more than 76% complete at an average price of $5.66.

Qantas itself said:

Low levels of net debt put the board in a position to consider future shareholder returns in February 2023 consistent with the group’s financial framework and phasing of capital expenditure for fleet renewal.

Snapshot

Over the last two months, the Qantas share price has climbed 16%.

The post Can the Qantas share price fly even higher in December? appeared first on The Motley Fool Australia.

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More reading

• Why did the Qantas share price take off in November?
• Why is the Qantas share price smashing the ASX 200 on Tuesday?
• The Qantas share price is flying again. Why this fundie is concerned
• Top brokers name 3 ASX shares to buy next week
• Own Qantas shares? Guess what the airline is being accused of now

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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The National Australia Bank Ltd (ASX: NAB) share price has seen plenty of volatility this year. But, despite everything, it’s up more than 6% for the year. This means it has outperformed the S&P/ASX 200 Index‘s (ASX: XJO) decline of 3.8% by more than 10% year to date.

Now it seems NAB could have an interesting end to the year. Comments by central banks have suggested interest rates could see smaller increases than we’ve seen so far this year.

For example, US Federal Reserve boss Jerome Powell recently said:

It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down.

The time for moderating the pace of rate increases may come as soon as the December meeting. It is likely that restoring price stability will require holding policy at a restrictive level for some time. History cautions strongly against prematurely loosening policy. We will stay the course until the job is done.

Time will tell whether this will lead to a strong run for ASX bank share prices going into the end of the year.

What does this mean for NAB shares?

It would have been illogical to think that central banks were going to keep increasing interest rates forever. At some point, the size of the increases was going to reduce.

Banks pay close attention to interest rates, as they are key to banks both getting funding and lending out money.

Higher interest rates are having a positive effect on the net interest margin (NIM) of NAB as it passes on higher interest more quickly to borrowers compared to savers. The NIM is the measure of profit that compares the cost of the lending (for example, interest paid for the bank’s savings accounts) to the loan rate for lending.

NAB revealed in its FY22 result that its FY22 fourth quarter NIM was 1.72%, a 10 basis point (0.10%) increase on the third quarter.

So, surely another RBA interest rate increase of 0.25% in December would be a boost for the NAB share price?

Maybe not. Investors are already expecting the RBA will increase the interest rate this month. Plus, NAB noted the estimated benefit of cash rate increases from October 2022 is expected to be lower. The NIM impact of RBA cash rate increases on unhedged deposits is expected to peak in the FY23 first half, according to the bank.

But, it also noted that “housing lending competitive pressures are likely to intensify”.

Time to invest?

The NAB share price has fallen by 4% since early November.

Broker UBS is currently neutral on the ASX bank share, with revenue and costs under scrutiny. The price target – which is where the broker thinks the share price will be trading in 12 months – is $33. That implies a mid-single-digit rise over the next year.

Ord Minnett, another broker, is one of the most optimistic about the ASX bank share. It rates it as accumulate with a price target of $33.80, suggesting a possible rise of around 8%.

But, while the broker Morgan Stanley rates NAB as equal-weight (which is like a hold), the price target of $30 implies a possible mid-single-digit drop for NAB shares. Expectations of higher costs led to the broker decreasing its expectations for profit.

On Morgan Stanley’s numbers, the NAB share price is valued at under 13 times FY23’s estimated earnings with a projected grossed-up dividend yield of 7.5%.

The post Can investors bank on a strong finish to 2022 for NAB shares? appeared first on The Motley Fool Australia.

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• Bought $1,000 of BHP shares 10 years ago? Here’s how much dividend income you’ve received
• The ASX 200 share to buy that just took a 24% dive: expert
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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The BHP Group Ltd (ASX: BHP) share price has had a ripper 10 years amid the company’s dominance of the Aussie iron ore industry. And that dominance has only grown.

Indeed, the ‘Big Australian’ added more than $100 billion to its market capitalisation earlier this year when its global listings united on the ASX.

Right now, shares in BHP are trading at $45.76. That’s 8% higher than they were at the start of 2022. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has fallen 4% year to date.

Casting our eyes back further, the BHP share price was around $32.46 10 years ago. That means a $1,000 investment in December 2012 likely would have seen a buyer walk away with 30 BHP shares and $26 change.

The value of that parcel has since grown by around 41%, coming in at $1,372.80 today.

However, when factoring in the ASX 200 giant’s dividends, the returns an investor might have realised over the last decade increase exponentially. Let’s take a look.

How much have BHP shares paid in dividends in 10 years?

BHP shares have been offering dividends to ASX investors since 1984. Below are all the dividends the company has handed out over the last decade:

BHP dividends’ pay date	Type	Dividend amount
September 2022	Final	$2.55
March 2022	Interim	$2.08
September 2021	Final	$2.71
March 2021	Interim	$1.31
September 2020	Final	75.4 cents
March 2020	Interim	99.4 cents
September 2019	Final	$1.13
March 2019	Interim	78.1 cents
January 2019	Special	$1.41
September 2018	Final	88.5 cents
March 2018	Interim	70.6 cents
September 2017	Final	52.9 cents
March 2017	Interim	53.2 cents
September 2016	Final	18.5 cents
March 2016	Interim	21.4 cents
September 2015	Final	87.8 cents
March 2015	Interim	80.8 cents
September 2014	Final	66.2 cents
March 2014	Interim	64.7 cents
September 2013	Final	64.4 cents
March 2013	Interim	55.6 cents
Total:		$20.965

It’s been a good 10 years for those who might have bought BHP shares for $32.46 apiece in 2012. Their investment has offered them approximately $20.965 per share in dividends over that time.

That means a $1,000 investment this time 10 years ago likely would have brought in about $628.95 of dividends.

Adding that to the 41% return offered by the BHP share price, a $1,000 investment would boast a $1,027.95 return right now – meaning our figurative investor could have doubled their money.

Additionally, all dividends offered by BHP in that time have been fully franked, meaning they could have brought more benefits at tax time.

On top of that, our imagined investor could have reinvested those dividends using a dividend reinvestment plan (DRP), thereby taking advantage of compounding and potentially further increasing their returns.

The BHP share price offers a 10.1% dividend yield right now.

The post Bought $1,000 of BHP shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Can investors bank on a strong finish to 2022 for NAB shares?
• The ASX 200 share to buy that just took a 24% dive: expert
• The iron ore price just posted its biggest-ever monthly gain. What’s going on?
• ‘Long & bullish’: Expert picks 2 ASX shares to buy as investors flock back to market
• 5 things to watch on the ASX 200 on Monday

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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Sometimes businesses have temporary hiccups that scare off investors.

But if you’re investing in ASX shares with a long-term horizon, it could be an opportunity to pick up a bargain.

Morgans senior analyst Alexander Mees this week named one particular S&P/ASX 200 Index (ASX: XJO) stock exactly in that position right now:

ASX share now at 40% discount

Fast food franchise operator Collins Foods Ltd (ASX: CKF) watched its share price tumble a hair-raising 24.3% from Tuesday to early trade Wednesday morning.

Mees attributed this to a delay in the previously stated period for margins to recover after this year’s supply pressures.

“A 2H23 margin recovery is no longer on the cards,” Mees said on the Morgans blog.

“Margin guidance has been reduced for FY23. Collins Foods now expects KFC Australia to be in the range of 15% to 16% compared with previous guidance of 16% to 17%.”

The shocking drop in the Collins share price this week meant the stock is now 41.7% lower than where it started the year.

Buy now for the medium-term recovery

Mees, though, still rates Collins shares as a buy. He suspects the market has overreacted this week, with his team finding no surprises in the reported financial metrics.

“Same-store sales growth was +5.1% in KFC Australia and +10.4% in KFC Europe,” he said.

“EBITDA was in line with our expectations — in fact, it was slightly better — but we note that our estimates were below consensus.”

A cloud does hang over Collins’ Mexican venture Taco Bell.

“Taco Bell is at a fork in the road. 1H23 SSS declined by (7.8%),” said Mees.

“In our opinion, the brand is not getting as much traction as expected with consumers.” 

The company is, however, taking proactive steps to turn it around.

“Collins says that new Taco Bell builds have been paused so that focus can be put into improving sales efficiency and profitability,” Mees said.

“Collins Foods has a new marketing agency and Taco Bell International-employed CMO and will be looking to turn the brand around in 2H23.”

The share price is still attractive enough for a long-run investment.

“We maintain an add rating,” said Mees.

“We believe the forward multiples are sufficiently low to warrant a consideration of the medium-term recovery in margins.”

The people who run Collins Foods certainly think it’s ready to charge ahead.

According to The Motley Fool’s James Mickleboro, no less than four directors have bought up Collins shares after the stock price slaughter this week.

The post The ASX 200 share to buy that just took a 24% dive: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Wondering how the Coles share price fared over November? Here’s how
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!

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 positions in and has recommended Collins Foods. The Motley Fool Australia has recommended Collins Foods. 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Betmakers Technology Group Ltd (ASX: BET) remains the most shorted ASX share even though its short interest easing for a second week in a row to 15.1%. Despite losing a third of their value in 2022, short sellers appear to believe this betting technology company’s shares can keep falling.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall to 14.3%. Short sellers don’t appear confident that the travel market recovery will be smooth sailing for Flight Centre.
• Block Inc (ASX: SQ2) has seen its short interest fall to 11.5%. Short sellers will have been disappointed to see this payments company’s shares jump last week amid a rebound in the tech sector on softer interest rate expectations.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.3%, which is down slightly week on week. Inflationary pressures have been weighing on this pizza chain operator’s performance.
• Perpetual Limited (ASX: PPT) has seen its short interest rise to 10.6%. Short sellers have been increasing their positions after the fund manager was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
• Megaport Ltd (ASX: MP1) has seen its short interest rebound slightly to 10.5%. Short sellers aren’t giving up on this network as a service operator’s shares despite them rising 21% since this time last month.
• Sayona Mining Ltd (ASX: SYA) has 9.9% of its shares held short, which is up week on week. Short sellers may be targeting this lithium developer due to valuation concerns.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.5%, which is down week on week. Short sellers appear to have been closing positions since the release of a reasonably positive sales update. Though, it is worth noting that no commentary was made on its margins, which is understood to be one of the key reasons short sellers are targeting the company.
• Lake Resources N.L. (ASX: LKE) has short interest of 8.4%, which is up slightly week on week. Short sellers continue to have doubts over Lake’s ability to produce battery grade lithium at scale from its Kachi operation.
• Breville Group Ltd (ASX: BRG) has seen its short interest once again slide to 8.2%. Short sellers have been closing positions following the release of the appliance manufacturer’s first quarter update.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k in ASX 200 shares in 2023 to capitalise on the stock market rally
• Brokers name 3 ASX shares to buy today
• 3 best-performing ASX 200 healthcare shares in November
• Why did the Flight Centre share price take a flogging in November?
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Block, Megaport, and Nanosonics. The Motley Fool Australia has positions in and has recommended Block and Nanosonics. The Motley Fool Australia has recommended Betmakers Technology Group, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Megaport. 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 iron ore shares are benefiting from a higher iron ore price. This may be surprising to some investors because the price for the steel-making commodity seemed to be on the way down.

But, the iron ore price can be quite fickle – it can certainly rise very quickly. As reported by the Australian Financial Review, the Singapore iron ore futures rose to US$101 per tonne. This was a sizable gain from the late October low of US$76.45 per tonne.

At the same time, there are a number of changes afoot in China that may indicate COVID-19 restrictions are going to wind down and that, perhaps, COVID-zero may not be the nation’s key aim. This could be a boost for the economy and iron ore demand.

COVID rules change

According to reporting by CNBC, daily cases of COVID in China are “near all-time highs” yet some cities are taking steps to reduce COVID-19 testing requirements and quarantine rules.

Reportedly, COVID-19 testing booths have been removed in Beijing. Meantime, Shenzhen has updated its rules, as other cities have done, to state that commuters don’t need to test negative to travel. Chengdu and Tianjin are among other big cities that have made similar moves.

CNBC also reported that “China is set to further announce a nationwide reduction in testing requirements as well as allowing positive cases and close contacts to isolate at home under certain conditions”, according to Reuters sources.

CNBC also reported that Chinese leader Xi told EU officials the Omicron variant was less deadly and this could mean fewer COVID restrictions.

According to CNN, Vice Premier Sun Chunlan reportedly told state news agency Xinhua:

With the decreasing toxicity of the Omicron variant, the increasing vaccination rate and the accumulating experience of outbreak control and prevention, China’s pandemic containment faces a new stage and mission.

These different elements seem to signal a major shift for China, which could be a boost for the iron ore price and the ASX iron ore shares of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Over the past month:

• Fortescue shares are up 24%.
• BHP shares are up 19%.
• Rio Tinto shares are up 21%.

Expert view on the iron ore price

The AFR also reported comments by Citi which suggested there could be further optimism for the iron ore price:

Policy tailwinds are likely to remain in favour of the bulls in the short term.

A perceived U-turn in China’s Covid policy and the country’s efforts to shore up the beleaguered property sector drove an iron ore price rally during November.

We expect further improvement in reopening sentiment. However, we maintain our view that the physical fundamentals will remain weak in the near term.

According to Commsec, the Fortescue share price is priced at 10 times FY23’s estimated earnings, the BHP share price is valued at 15 times FY23’s estimated earnings, and the Rio Tinto share price is valued at nine times FY23’s estimated earnings.

While those price/earnings (P/E) ratios aren’t exactly high, I’m not sure how the iron ore price will perform, or for how long it will be affected. I also think it may be better to wait for a lower iron ore price when buying a cyclical business like an ASX iron ore share.

The post The iron ore price just posted its biggest-ever monthly gain. What’s going on? appeared first on The Motley Fool Australia.

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• ‘Long & bullish’: Expert picks 2 ASX shares to buy as investors flock back to market
• Brokers name 3 ASX shares to buy today
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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 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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It’s funny to think that technology stocks were all the rage only just a year ago but are completely out of favour now.

The S&P/ASX All Technology Index (ASX: XTX) had, in fact, risen a phenomenal 155% from the COVID-19 trough in March 2020 to November last year.

But over the past 12 months, the index has lost 28%.

However, with inflation looking to peak and the end of steeply rising interest rises in sight, many experts have tipped tech to make a comeback in 2023.

Still plenty of scepticism about tech

But as the old saying goes, “once bitten, twice shy”.

On Thursday, the broader S&P/ASX 200 Index (ASX: XJO) rallied an impressive 0.96%, but tech shares missed out on the party.

In fact, Shaw and Partners portfolio manager James Gerrish noted that quite a few of them sold off.

“Altium Limited (ASX: ALU) opened close to $40 before sliding lower all day,” he said in his Market Matters newsletter.

“In other words, at this stage investors are far from convinced that the tech sector can make a meaningful dent in the losses endured through 2022.”

But the tide will turn sooner or later

But Gerrish considers Altium a buy right now, as the sentiment for technology will turn soon.

“Market Matters remains long and bullish on Altium,” he said.

“We can see Altium testing well above $40 into Christmas.”

The share price for the ASX 200 electronics design software provider has already risen 7.5% over the past month.

And it’s not the only tech share he’s keen on at the moment.

“We’ve chosen Altium to make our point here but it could easily have been Seek Limited (ASX: SEK) or REA Group Limited (ASX: REA).”

Gerrish had previously tipped both of those stocks to lead the tech resurgence heading into Christmas.

REA has indeed fit the bill, seeing its shares soar 4.8% over the past month. Seek has also done well, edging up 4.73%.

The post 3 ASX 200 tech shares to buy now before the market wakes up: expert appeared first on The Motley Fool Australia.

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• I’d aim for $1 million in retirement buying just 10 ASX 200 shares

Motley Fool contributor Tony Yoo has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended Rea Group and Seek. 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 revival over the past few weeks is not only great for our portfolios, but is a psychological relief.

You can stick to a long-term mindset but it is still human nature to feel depressed seeing a sea of red on the stockbroking dashboard.

Gerrish told his Market Matters newsletter that the most recent leg-up has quietened the cynics.

“There have been plenty of non-believers in equities over the last 12 to 18 months but the reality is, when we include dividends, the market is only 0.7% below its all-time high,” he said.

“Where’s the bear market?”

The past week, according to Gerrish, had seen a “risk-on” mindset return “with a bang” after US Federal Reserve chair Jerome Powell made comments interpreted as dovish.

His team noticed three ASX shares in particular that had piqued their interest as investors rediscover their enthusiasm:

Take the extra shares

Copper producer Sandfire Resources Ltd (ASX: SFR) is almost the last man standing after rival OZ Minerals Limited (ASX: OZL) last month agreed to be absorbed into BHP Group Ltd (ASX: BHP).

Sandfire shares are thus up a stunning 47% over the past month.

Gerrish’s team is still “long and bullish” on Sandfire, while noting the current stock purchase offer to existing investors.

“We still have a week to apply for the entitlement to Sandfire shares at $4.30, significantly below where the stock closed yesterday,” he said.

“Hence it’s highly likely that Market Matters will be taking the extra shares.”

Gold, gold, gold for Australia

Gerrish’s team is also keen on the gold market.

For example, the Ramelius Resources Limited (ASX: RMS) share price has rocketed up close to 15% over the past few days.

“If we are correct, both Ramelius and the gold sector have further to rally.”

This ASX 200 share has already rallied an amazing 65% since mid-October to close Friday at 99 cents.

Gerrish reckons there’s more to come, though.

“We feel at least the next 20% looks set to be on the upside,” he said.

“We think Ramelius can now rally towards the $1.13 initial resistance following Jerome Powell’s dovish statement.”

The post ‘Long & bullish’: Expert picks 2 ASX shares to buy as investors flock back to market appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• This ultra-high-yield ASX dividend share is up 18% in a month. Is it too late to buy?
• Here are the top 10 ASX 200 shares today
• Climate and energy: Analyst tips 2 ASX shares perfectly placed for global crises
• BHP’s bargain? Expert thinks its ASX 200 takeover target could be worth 40% more

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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