On Tuesday, the Reserve Bank of Australia (RBA) is holding its final cash rate meeting of the year.

With inflation beginning to show signs of easing, the market appears to believe that oversized rate hikes are now a thing of the past. In fact, some even believe that periodic monthly hikes may also be nearing an end.

But what are economists saying about next week’s meeting?

Westpac is tipping another increase

The economics team at Westpac Banking Corp (ASX: WBC) believe the central bank will raise rates by 0.25% next week. This will take the cash rate from 2.85% to 3.1%.

According to its latest weekly economics report, Westpac’s chief economist, Bill Evans, believes this would be “consistent” action, which is something the RBA is aiming for. He commented:

The Minutes of the November meeting revealed a new guideline for monetary policy, “acting consistently would support confidence in the monetary policy framework.”

Having unexpectedly pivoted from increments of 50 basis points to 25 basis points in October moving back to 50 would not have been a “consistent” action. The motive of “consistency” does seem to be at cross purposes with the core policy of “[t]he size and timing of future interest rate increases will continue to be determined by the incoming data.”

A third 25 basis point lift in December would certainly be “consistent”.

However, Evans does highlight that the market isn’t as confident as it was about this rate hike. He added:

Markets are pricing around a 75% probability of that 25 basis point move. That is down from over 90% a week ago.

Up until the precedent of the October move even a 75% probability in pricing from the market would be seen as consistent with an almost certain such move in December. But markets had a 90% probability of a 50 basis point move in October and the Board settled on 25. That puts markets on edge that the Board can spring “surprises” and may explain why pricing is so tentative for December.

Market is too dovish

Evans also believes the market is being too dovish on its interest rates estimates and is concerned that things could get very bad if the RBA only delivers on market expectations. He explained:

The RBA’s biggest risk with behaving in line with current market pricing for the first half of 2023 is that these forces, along with businesses’ recent successful experience in raising prices (75% of CPI components growing faster than 3% annualised in the September quarter) and evidence of a broadening of wage pressures is that an early pause risks this inflation psychology becoming embedded in the Australian economy.

That would see an unsatisfactory pace of inflation in 2023 and 2024 which would preclude the RBA from providing some rate relief to a weak economy in 2024. The policy of least regret, which appears to be a clear strategy in other jurisdictions, whereby the choice of short–term weakness over long term embedded inflation should also be embraced by the RBA. That would certainly not include pausing in December or February.

The post Will the RBA raise rates again next week? Here’s what Westpac expects appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy Westpac and this ASX dividend share: broker
• Why did the Westpac share price lag the ASX 200 in November?
• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• If you bought $20,000 worth of Westpac shares this year, here’s how much dividend income you’d have

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

from The Motley Fool Australia https://ift.tt/d06MmiU

If you’re about to hit retirement and are looking forward to your golden years, well, firstly, congratulations. Reaching a comfortable retirement is something every Australian should be proud of. But perhaps this is also a time to start considering ASX dividend shares.

The primary concern of planning a retirement is, of course, ensuring a reliable income stream to fund said retirement. Chances are most of us, young or old, would retire tomorrow if we had an income stream that would allow it. At least for a while.

Fortunately, I think there are plenty of undervalued dividend shares to choose from on the ASX share market today that could help fund a retirement for decades to come.

A good way of measuring a dividend shares’ valuations is by looking at both dividend yield and price-to-earnings (P/E) ratios.

For example, with a P/E ratio of 19.78 and a trailing dividend yield of 3.59%, I don’t believe that Commonwealth Bank of Australia (ASX: CBA) shares are looking too compelling at present.

Where can we find cheap ASX dividend shares?

But one market sector that I think is compelling for investors right now is ASX retail shares. Fears abound at present that the rising interest rates and inflation we have seen in 2022 will hit retailers hard. But this has pushed many ASX retail shares to extremely low valuations.

Just take one of the best retailers in the country, JB Hi-Fi Ltd (ASX: JBH). JB shares have had a disappointing year in 2022 thus far. The electronics purveyor has fallen 7.8% year to date. But this leaves JB shares on a P/E ratio of just 9.43 as of the close of trade on Friday. And that comes with a fully-franked dividend yield of 7.03%.

Harvey Norman Holdings Limited (ASX: HVN) is another retail name everyone knows and (in some cases) loves. Yet we see a similar story here, with Harvey Norman shares down 13.4% in 2022. At Friday’s close, it’s on a P/E ratio of just 6.7. This has lifted Harvey Norman’s trailing dividend yield to a hefty 8.6% at present. And yes, that’s fully franked as well.

Dusk Group Ltd (ASX: DSK) and Adairs Ltd (ASX: ADH) are two more retail shares that are offering similar valuations and trailing dividend yields. In fact, Dusk’s fully franked dividend yield is sitting at 10.7% right now.

So I believe there are plenty of undervalued ASX dividend shares on the market today that can help fund an impending retirement.

The post Almost ready to retire? Why I’d buy undervalued ASX dividend shares right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Should CBA shares be in your ASX stocking in December?
• Top ASX shares to buy in December 2022
• The 3 best-performing ASX 200 bank shares in November revealed
• Why Bubs, Collins Foods, Dusk, and Mayne Pharma shares are falling today
• Is a stock market crash coming for us in 2023?

Motley Fool contributor Sebastian Bowen has positions in Adairs and Dusk Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Harvey Norman. The Motley Fool Australia has positions in and has recommended Adairs and Harvey Norman. The Motley Fool Australia has recommended Dusk Group and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eVDY5p2

The Pilbara Minerals Ltd (ASX: PLS) share price had a tough run in November, but could better days be ahead?

Pilbara shares fell 8.45% in November and are currently fetching $4.86 as of Friday’s close, up 2.10%.

Let’s take a look at the outlook for the Pilbara Minerals share price.

What’s ahead?

Pilbara shares may have struggled in November, but they have lifted year to date. Pilbara shares have soared 52% since the start of the year.

If an investor had bought $1,000 worth of Pilbara shares for $3.20 after market close on 31 December, this investment would now be worth $1,506.96.

Pilbara Minerals advised this year that it is planning to pay its first ever dividend in the 2023 financial year. Management is planning to pay 20% to 30% of its free cash flow to shareholders.

Pilbara shares finished the month on a high, leaping 5% between market close on 28 and 30 November. So far in December, Pilbara Minerals shares have climbed a further 3.29%.

What do the experts say?

UBS has a sell rating on Pilbara shares, as my Foolish colleague Tristan reported recently. The broker has placed a $3.05 price target on the company’s share price.

Meanwhile, Jarden also has a sell rating on the Pilbara share price, with a 12-month price target of $3.65. This implies a downside of 24% on the current share price.

On the flip side, Macquarie placed an outperform rating on the Pilbara share price during the month with a $7.70 price target. This implies an upside of 59% based on the current share price.

What’s the latest?

Pilbara is exploring lithium at the Pilgangoora Project, 120km from Port Hedland in Western Australia.

Pilbara reported results from a Battery Materials Exchange (BMX) auction in mid-November. The company advised it intended to accept the highest bid of US$7,805 per dry metric tonne.

On 28 November, Pilbara announced it had entered a joint venture agreement with Calix for a mid-stream demonstration plant. Commenting on this project, managing director and CEO Dale Henderson said:

The mid-stream project has the potential to be a game changer for our industry.

Pilbara share price snapshot

The Pilbara share 91% in the last year, while it has climbed 1.67% in the last week.

For perspective, the ASX 200 has returned 1.64% in the past year.

Pilbara has a market capitalisation of about $14.55 billion based on the current share price.

The post Can the Pilbara Minerals share price regain its lustre in December? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Down 10% in November, why did the Pilbara Minerals share price power down?
• Getting cold feet on ASX 200 lithium shares? Here’s why UBS ‘remains positive’
• 2 ASX lithium shares to buy, and 3 to sell: brokers

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/YjXnlbC

ASX 200 energy shares have had a rocking year but for a terrible reason — that being the war in Ukraine. The conflict has disrupted global supply chains given Russia is a pretty big energy supplier, especially to Europe.

The S&P/ASX 200 Energy Index (ASX: XEJ) has soared this year, up around 36% in 2022 so far.

This compares to an almost 4% drop in the S&P/ASX 200 Index (ASX: XJO), which has occurred due to rising inflation and interest rates, as well as fears of a United States recession.

Here we look at the top three ASX 200 energy shares in November based on share price gains over the month.

No surprise to see coal miner Whitehaven at the top of the list. It’s had an unbelievable year with the share price up more than 250% so far, largely due to skyrocketing commodity prices.

The following data is from S&P Global Market Intelligence, canvassing ASX 200 energy shares with a minimum market capitalisation of $100 million.

Whitehaven Coal Ltd (ASX: WHC)

The top-performing ASX 200 energy share from the close on November 1 to the close on November 30 was Whitehaven, with a 9.73% share price gain.

This was largely due to thermal coal prices remaining near all-time highs over the month. Plus, it remains a favourite ASX share pick among brokers, with plenty of positive commentaries keeping investors excited.

The only price-sensitive news during November was a downgrade in FY23 production guidance due to bad weather caused by La Nina. As my Fool colleague Matthew reported, flooding has disrupted operations at some mines.

The Whitehaven share price closed 1.52% lower on Friday at $9.74.

Beach Energy Ltd (ASX: BPT)

Oil and gas producer Beach Energy was November’s next best-performing ASX 200 energy share with a gain of 8.87% in value.

The company is currently embroiled in a takeover battle for Warrego Energy Ltd (ASX: WGO). Beach and Warrego announced a deal on 14 November, whereby Beach would acquire all Warrego shares for 20 cents apiece. This trumped a scheme of arrangement proposal from Strike Energy Ltd (ASX: STX) a few days before.

The saga is continuing. Warrego received a counter offer from Gina Rinehart’s Hancock Energy Pty Ltd yesterday at 23 cents per share. Beach Energy bettered their offer at 25 cents on Friday. Warrego is considering its options.

Also supporting the Beach Energy share price in November was the commencement of production cuts by the Organization of Petroleum Exporting Countries (OPEC), as announced in October.

At Friday’s close, the Beach Energy share price was down 2.44% to $1.80.

Karoon Energy Ltd (ASX: KAR)

The third best-performing ASX 200 energy share in November was Karoon Energy, up 5.94%.

The oil and gas producer had a nice start to the month with Morgans giving a presentation on the company.

The Karoon Energy share price was volatile in November, moving rapidly between $2.20 and almost $2.40 several times over the four weeks. The company delivered an update on its Patola project on 21 November and held its annual general meeting (AGM) on 24 November.

The Karoon Energy share price closed on Friday at $2.32, down 2.52%.

The post 3 best-performing ASX 200 energy shares in November appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher
• 3 ASX shares soaring on takeover bids today
• 5 things to watch on the ASX 200 on Friday
• On the back of a cracking year, these 3 ASX 200 coal shares soared again in November
• Warrego Energy share price rockets 80% in a month amid clash of the takeover titans

Motley Fool contributor Bronwyn Allen 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.

from The Motley Fool Australia https://ift.tt/shvRzEM

After a shocking start to the year, the BrainChip Holdings Ltd (ASX: BRN) share price outperformed the S&P/ASX 200 Index (ASX: XJO) in November.

The stock rose from 64.5 cents at the final close of October to finish November trading for 73 cents. That marks a 13.18% gain. In the meantime, the tech stock saw a 52-week low of 59 cents and a high of 78 cents.

For comparison, the ASX 200 lifted just 6.13% last month – meaning the BrainChip share price produced double the broader market’s gains.

Indeed, $1,000 invested in BrainChip shares at the end of October would have been worth around $1,130 at Wednesday’s close. That’s not too shabby for a single-month return.

So, what might have gone right for the artificial intelligence-focused tech company last month? Let’s take a look.

What drove the BrainChip share price higher last month?

Interestingly, there was no price-sensitive news from BrainChip last month.

Indeed, the last time the market heard a price-sensitive update from the company was in late October on the release of its disastrous quarterly activities report. That saw the stock plummet 21%.

The company also announced it has welcomed former Amazon.com Inc (NASDAQ: AMZN) leader and Arm executive Nandan Nayampally as its new chief marketing officer.

Meanwhile, investor sentiment for tech shares appeared to improve over the course of last month.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) lifted 2.87% in November while the S&P/ASX All Technology Index (ASX: XTX) rose 3.08%.

That may have had something to do with hints inflation could be softening, potentially leading central banks globally to ease up on interest rate hikes.

Of course, higher rates generally spell bad news for non-profitable shares like BrainChip and many of its technology-focused peers. That’s because higher rates increase the cost of debt and companies operating in the red often rely on debt to fund growth.

Sadly, the BrainChip share price’s recent rally hasn’t been enough to boost it into the longer-term green.

The stock is still 7% lower than it was at the start of 2022. Though, it has gained 16% since this time last year.

The post Why did the BrainChip share price smash the ASX 200 in November? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX tech shares having such a cracking run on Thursday?
• Best of a bad bunch: The 3 best-performing ASX 200 tech shares in November
• Why did the BrainChip share price slide 5% on Monday?
• 5 of the craziest things making news on the ASX this week
• 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 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.

from The Motley Fool Australia https://ift.tt/brhUagV

The team at Morgans has been busy running the rule over a number of S&P/ASX 200 Index (ASX: XJO) shares again this month.

Among its best ideas for December are the two ASX 200 shares listed below. Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

Morgans has this gaming technology company on its best ideas list again this month.

Its analysts highlight that the company is well-placed for growth thanks to its ability to invest in design and development and its expansion in real money gaming (RMG).

It commented:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Morgans has an add rating and $43.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

A new addition to the best ideas list this month is Xero. The broker believes the cloud accounting platform provider’s shares are trading at a very attractive level. In fact, they are trading at a level that values the company less than the lifetime subscription value of its subscribers. It commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

Morgans currently has an add rating and $77.00 price target on Xero’s shares.

The post Morgans names 2 of the best ASX 200 shares to buy in December appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why Appen, Evolution Mining, Rio Tinto, and Xero shares are racing higher
• Xero share price hurtles higher on bullish broker note
• Stock market correction: A once-in-a-lifetime chance to get rich?
• 5 ASX 200 shares with juicy gross profit margins

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/HUIktaB

There’s little doubt that the Commonwealth Bank of Australia (ASX: CBA) is one of the most popular ASX shares on our share market. Its status as the ASX’s largest bank, and, for a few brief periods, the ASX’s largest share by market capitalisation, no doubt helps. As would the fact that CBA has more Australian customers than any other bank.

CBA has had a pretty good run lately as well. The ASX 200 bank share is up a healthy 4.31% year to date in 2022, which looks pretty good against the broader S&P/ASX 200 Index (ASX: XJO)’s loss of 3.7%. The CBA share price is also up 11.5% over the past 12 months, and just this month, hit a new 52-week high of $109.20.

But size, past performance and popularity don’t automatically translate into a good investment going forward. So now that we are almost at the end of the year, should CBA shares be in your ASX stocking this December?

Are CBA shares a perfect ASX stocking stuffer?

Well, expert opinions are a little mixed.

One broker who is optimistic about CBA is Macquarie. Last month, we covered some changes Macquarie has made to its model portoflios.

One notable one was the decision to swap out Australia and New Zealand Banking Group Ltd (ASX: ANZ) for CBA shares. Macquarie now views CBA as the “quality choice within the banking sector” and a better bet than ANZ right now.

However, Will Reggall of Climate Capital isn’t convinced. As my Fool colleague covered this week, Riggall reckons Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) shares are both looking more appealing than CommBank right now.

That’s due to CBA’s “high price” and the success Westpac and NAB have had with “executing growth and transformation strategies”.

Earlier this month, we also covered the views of brokers at Wilsons. Wilsons has trimmed its exposure to all ASX banks in favour of lithium share Mineral Resources Limited (ASX: MIN).

This broker cites what it views as peaking net interest margins, as well as slowing credit growth and rising costs, in explaining its waning enthusiasm for bank shares.

So mixed views on CBA shares leading up to Christmas. But with this week’s new 52-week high, shareholders have already gotten an early Christmas present from Commonwealth Bank.

The post Should CBA shares be in your ASX stocking in December? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The 3 best-performing ASX 200 bank shares in November revealed
• Is a stock market crash coming for us in 2023?
• Why did the CBA share price jump to a 52-week high in November?
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?

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

from The Motley Fool Australia https://ift.tt/aHv7xF9

In a terrible year for growth stocks and bonds, many investors have resorted to ASX dividend shares.

The idea is that decent income would make up for anaemic capital growth.

As for 2023, many experts are expecting the lag in the effects of this year’s steep interest rises to catch up, slowing the economy down considerably.

That means, once again, some investors might like to take shelter with dividend stocks.

“The beauty of quality dividend-paying stocks is that they tend to perform well across the cycle,” said Ausbil Active Dividend Income Fund portfolio manager Michael Price.

“In the coming year, there will still be potential to capture dividends from earnings that are less sensitive to lower growth and can pass on inflationary pressures to their customers.”

There are also opportunities for elevated payout ratios, he added, and special dividends in lieu of off-market buybacks.

ASX dividends in resources have peaked

However, with conditions expected to be different to 2022, which are the ASX dividend shares that will be the most fruitful for 2023?

Price reckons investors will need to be selective about the industries they put their money in.

“In 2023, we think dividend growth will be flat on average, but there will be big variances across sectors,” he said.

“We expect double-digit growth for financials and general insurers, but we think resource dividends have peaked and we expect them to be 10% lower on average, though select resource names will still deliver.”

The current global energy crisis will continue into next year, and this will mean “quality energy companies” will also pay out strong yields.

Then there are the ASX defensive stocks.

“We expect some stronger earnings growth in quality leaders that are more immune to the economic cycle and who can pass on inflation in their business models,” said Price.

“Some ‘all-weather’ dividend payers in the telco and health care sectors, and also in consumer staples, are expected to deliver better-than-market dividend outcomes.”

Finally, after a depressed year in 2022, property-related ASX shares could fare much better in 2023.

“We are also expecting strong dividend performance in select real estate investment trusts (REITs) that have global logistics and warehousing businesses, and some local REITs with near fully leased commercial portfolios that have lease profiles that pass inflation on to tenants through ratchet clauses.”

The post Expert reveals where you’ll find the best ASX dividends in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy Westpac and this ASX dividend share: broker
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher
• 3 ASX shares soaring on takeover bids today

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.

from The Motley Fool Australia https://ift.tt/dtvG0ws

Are you looking for dividend shares to buy? If you are, you may want to check out the two listed below that have been tipped to provide attractive yields by Goldman Sachs.

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

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share that Goldman Sachs has tipped as a buy is Healthco Healthcare and Wellness.

Goldman believes the health and wellness focused real estate investment trust is well-placed to pay attractive dividends in the coming years thanks to its strong balance sheet and exposure to government-backed sub-sectors. The broker said:

[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.

In respect to dividends, Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.66 this will mean yields of 4.5% for investors.

Goldman has a conviction buy rating and $2.14 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that Goldman Sachs rates highly is Australia’s oldest bank, Westpac.

Goldman believes that Westpac is well-placed to benefit from a combination of rising interest rates and its cost cutting plans. It commented:

We remain Buy (on CL) rated on WBC given: i) while on the surface, the FY22 result suggested WBC’s NIM leverage was underwhelming relative to some peers, we think 2H22 was adversely impacted by late-in-the-half liquidity build, and management’s guidance on its FY23 NIM trajectory was better than we had previously anticipated, ii) despite WBC revising its FY24E cost target to A$8.6 bn (from A$8.0 bn), the bank’s performance on cost management remains strong in this inflationary environment with a 9% step down in costs expected over the next two years

Its analysts are expecting this to lead to fully franked dividends per share of 148.4 cents in FY 2023 and 160 cents in FY 2024. Based on the current Westpac share price of $23.76, this will mean yields of 6.25% and 6.7%, respectively.

Goldman Sachs has a conviction buy rating and $27.60 price target on the bank’s shares.

The post Buy Westpac and this ASX dividend share: broker appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Westpac share price lag the ASX 200 in November?
• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• If you bought $20,000 worth of Westpac shares this year, here’s how much dividend income you’d have
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?

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

from The Motley Fool Australia https://ift.tt/RqJiVtL

ASX 200 healthcare shares are considered great defensive shares in tough economic times. But that hasn’t proven true in 2022 — at least in terms of share price growth.

The S&P/ASX 200 Healthcare Index (ASX: XHJ) is down 4.9% in the year to date. That’s worse than the S&P/ASX 200 Index (ASX: XJO), which is down 3.8%.

Healthcare employs more people than any other industry in Australia, according to the new census. It’s an established sector, which means good earnings and reliable dividends for shareholders.

Healthcare is also an obvious defensive play, like consumer staples, when inflation and interest rates are rising. No matter what the economy is doing, people still need healthcare and essential goods and will prioritise them in their budgets. So that’s good for the earnings of ASX healthcare shares.

Healthcare also has a very big long-term tailwind with our ageing population — the older we get, the more healthcare we need. But for now, it’s a sector that hasn’t done much for investors in 2022.

Of course, there are always companies doing better than the bunch.

In November, these three ASX 200 healthcare shares stood out with the highest share price gains, according to S&P Global Market Intelligence data canvassing ASX healthcare stocks with a minimum market cap of $100 million.

The figures are taken from the closing price on 1 November to the closing price on 30 November.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The top-performing ASX 200 healthcare share in November was Fisher & Paykel with a 17.1% share price gain.

The stock gathered momentum for no particular reason in the middle of the month, then got a big bump when the company released its half-year results.

Bizarrely, it reported a 57% decline in profit but the share price soared 12% on the day of the release. As my colleague Brooke reported, the results were in line with previous forecasts, so perhaps investors were impressed to see the company simply deliver what it said it would in this current difficult economic climate.

The Fisher & Paykel share price closed at $22.84 on Friday, up 1.3%.

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care was November’s next best-performing ASX 200 healthcare share, up 12.3%.

The hospitals operator provided a business update on 11 November and the share price kept rising from there. Ramsay reported a 6.7% increase in revenue and a 2.3% decline in EBITDA over 1Q FY23.

The Ramsay Health Care share price finished Friday’s session at $66.15, up 0.5% for the day.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the third-best performer among the ASX 200 healthcare shares last month. It went up 11%.

The infection control company held its annual general meeting (AGM) on 18 November. As my colleague James reported, Nanosonics revealed total revenue of $52.6 million for the four months to 31 October, up 42% on the prior corresponding period.

Nanosonics shares took a 12% smashing despite no news from the company on 21 November but rebounded to finish the month at $4.74. Perhaps that rebound resulted from some ASX investors seeing an opportunity to buy the dip.

The Nanosonics share price finished the week at $4.86, up 0.4% for the day on Friday.

The post 3 best-performing ASX 200 healthcare shares in November appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 3 ASX 200 shares going ex-dividend next week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Ainsworth Game Tech, BHP, Fisher & Paykel, and Leo Lithium shares are charging higher
• Profit down 57%, share price up 12%. What’s with this ASX 200 healthcare stock today?

Motley Fool contributor Bronwyn Allen 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 Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Ramsay Health Care. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vQBSDME