Not all S&P/ASX 200 Index (ASX: XJO) shares are created equal.

That may seem an obvious statement.

But with 2022 having seen inflation rocketing to 30-year highs with the prospect of a recession ahead, the ASX 200 shares that outperformed during the COVID recovery years may not deliver that same strong performance in the year ahead.

So which blue-chip companies look best set to weather the inflation storm?

For some expert insight into that, we defer to the analysts over at Perpetual Asset Management Australia.

Three ASX 200 shares to weather the inflation storm

When looking for ASX 200 shares likely to outperform in a time of high inflation and rising interest rates, the analysts focused on companies with pricing powers that are able to better control their own destinies than their competitors.

The first ASX 200 share to make their list is automotive spare parts and accessories giant Bapcor Ltd (ASX: BAP).

“Australia’s new and used car market has experienced unprecedented demand over 2022, and we expect this growth to continue in the medium term,” Perpetual said. “The attraction of the business centres on the strength of their competitive position within the automotive aftermarket industry, the nature of that industry, as well as Bapcor’s proven strategy.”

Perpetual notes that the number of cars in Australia continues to grow consistently even as they get more technologically complex, requiring higher-end repair and maintenance parts.

According to Perpetual:

Their customers are essentially the mechanics, and the mechanics are much more focused on getting the right part quickly, than on price. Ultimately, that means Bapcor has a high degree of pricing power, an attribute that is increasingly important in the current inflationary environment.

Which brings us to the second inflationary resilient ASX 200 share.

The world’s largest pallet pooling operator

Brambles Ltd (ASX: BXB) has operations in 60 nations. Its pallets and containers are used to transport goods across the world.

Explaining why Perpetual likes this ASX 200 share in today’s inflationary environment, the analysts note: “The transport and logistics company has been able to use its considerable pricing power and clout in the market as insulation from inflationary costs, while also being disciplined in recovering costs.”

According to Perpetual:

Brambles has kept revenues strong over 2022 through its ability to pass on in full the rising costs of timber, fuel, labour and transport to customers using its pool of 360 million pallets, crates and containers…

We expect Brambles to win new customers in the US, management to extract better operating performance from the existing network and to continue to push prices to reflect the higher inflation in the business.

They noted this ASX 200 share achieved a 14% year-on-year profit growth in 2021-22 “despite having to absorb US$470 million in timber price inflation”.

The third inflation-resistant ASX 200 share

Rounding off the list of ASX 200 shares likely to outperform in a time of rising interest rates and high inflation is telecommunications and information service provider Telstra Group Ltd (ASX: TLS).

Perpetual said it’s bullish on Telstra, with its analysts “attracted to Telstra’s market-leading mobile position”.

On the inflation front, Perpetual notes that Telstra “offers an infrastructure-like exposure through the Infraco assets, in particular inflation-linked receipts from the National Broadband Network for use of Telstra’s network assets”.

The analysts said there is some risk that rising interest rates could see some valuation pressure on this ASX 200 share. However, they added that “the quality, scale and defensive revenue attributes of Telstra’s network assets make them an appealing proposition”.

The post 3 ASX 200 shares to weather the inflation storm: fundie appeared first on The Motley Fool Australia.

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More reading

• Telstra share price ‘hasn’t fully captured the upside in value’: fundie
• These 2 ASX 200 shares could be a lifeline in a recession
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• Telstra is in strife again. Here’s why
• Could the stage now be set for Telstra shares to outperform?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Bapcor. 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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When a CEO of an ASX share sells stock of their own company, it is usually enough to pique the attention of investors. But when the CEO of the largest share on the S&P/ASX 200 Index A(SX: XJO) offloads more than half a million dollars worth of shares, it’s a big deal. So let’s talk about BHP Group Ltd (ASX: BHP) shares.

BHP is of course the largest publically-traded company in Australia. With its market capitalisation of almost $224 billion, BHP occupies more than 10% of the total weighting in the ASX 200 Index alone.

And BHP has been on quite the run lately. It was only back in late September that the mining giant was trading at close to $36 a share. But today, BHP is closing in on the $44 mark, having gained an impressive 21% or so over the past two months.

So that brings us to the CEO. Mike Henry has run BHP since 2020, succeeding Andrew Mackenzie at the top job.

But a recent ASX filing shows that Henry has just unloaded 15,002 BHP shares. Yep, on 22 November, Henry sold those 15,002 shares for a price of $43.32 each. That’s a grand total of $649,886.64 in proceeds.

So why is the CEO of BHP selling out such a large parcel of shares? Is this a vote of no confidence in BHP’s future?

BHP’s CEO selling off shares?

Well, it’s time for some context.

So yes, Henry did make this sale. However, on this same day, he became eligible for a massive influx of new shares and performance rights. So on this day, Henry received a grant of 325,471 rights to acquire BHP shares at a later date.

These form part of Henry’s compensation package. In addition, Henry also received 31,616 ordinary BHP shares granted from previous performance rights.

It was from these 31,616 BHP shares that Henry sold his 15,002 shares. So he still holds more shares than he did before 22 November, despite the $650k sale.

Thus, for investors worried that Henry might not have enough skin in the game, let’s set minds at ease. Even after this sale, Henry now has 677,218 BHP shares to his name. That has a value of approximately $29.6 million at today’s prices.

Henry also has an additional 761,423 rights that could convert into additional BHP shares in the future. As well as another 248,854 ‘cash and deferred plan awards’ that can also convert to stock at some point.

That’s a lot of skin.

The post Mike Henry has sold $650k of BHP shares in the past week. What’s going on? appeared first on The Motley Fool Australia.

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• BHP share price has ‘no upside’: Goldman Sachs
• ‘Rare opportunity’: Expert explains why he just added this ASX 200 share

Motley Fool contributor Sebastian Bowen 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 Telstra Group Ltd (ASX: TLS) share price is slightly in the green today, but could it have even more upside potential in the future?

Telstra shares are up 0.25% at the time of writing and are currently trading at $4.01 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is falling 0.46% today.

Let’s take a look at the outlook for this ASX communication share.

What’s ahead for Telstra?

Perpetual Asset Management has named Telstra as one of three “resilient stocks” with pricing power.

Analysts are particularly positive on Telstra’s exposure to InfraCo assets. Telstra created InfraCo as a standalone business with the entity building a national fibre network for internet connectivity. Commenting on Telstra InfraCo, analysts said:

We believe the stock hasn’t fully captured the upside in value for the Infraco assets, and as such we see some downside protection.

Further, Telstra carries far less debt relative to earnings than many other infrastructure-like exposures. As such a partial (or even full) selldown of Infraco assets would see significant sums returned to shareholders through capital management.

InfraCo fixed delivered $2.4 billion of income for Telstra in the 2022 financial year. NBN recurring receipts lifted 3.3%. As Telstra highlighted in its AGM in October, InfraCo’s fixed growth is tipped to be further supported in the future by the inter-city fibre project announced in February.

Analysts at Perpetual also touted Telstra’s mobile network, amid Optus and TPG challenges. Perpetual said:

One stock held by some Perpetual funds is Telstra.

We are attracted to Telstra’s market leading mobile position. Competitors Optus and TPG are dealing data privacy and integration challenges, which ought to provide Telstra an opportunity to capitalise on their already strong subscriber momentum.

Telstra’s mobile business contributed $700 million to EBITDA growth in the 2022 financial year.

Share price snapshot

The Telstra share price has descended 1.1% in the past year. In the last month, Telstra shares have climbed just over 2%.

For perspective, the ASX 200 has lost nearly 1% in the past year.

Telstra has a market capitalisation of more than $46 billion based on the current share price.

The post Telstra share price ‘hasn’t fully captured the upside in value’: fundie appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price dips amid ‘important agreement’
• I’d drip-feed $500 a month into cheap ASX shares in this share market rally
• 3 ASX 200 shares that announced supersized dividends in November
• 5 things to watch on the ASX 200 on Monday
• If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have

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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rio Tinto Limited (ASX: RIO) share price is in the red on Monday despite the company announcing an agreement with the Puutu Kunti Kurrama and Pinikura (PKKP) Aboriginal Corporation.

The agreement marks an effort to remedy the S&P/ASX 200 Index (ASX: XJO) iron ore giant’s relationship with the PKKP people following the destruction of two ancient rock shelters at Juukan Gorge in 2020.

Right now, the Rio Tinto share price is 1.85% lower at $103.70.

For comparison, the ASX 200 has slipped 0.49% at the time of writing. Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is underperforming, falling 1.49%.

Let’s take a closer look at Rio Tinto’s latest agreement and how the company’s share price is performing today.

Rio Tinto share price falls amid ‘important agreement’

The Rio Tinto share price is slipping despite the company shaking hands on the creation of the Juukan Gorge Legacy Foundation.

Under the agreement, the ASX 200 giant will provide financial support to the foundation, which will be led and controlled by traditional owners. The financial terms of the agreement will not be disclosed.

The foundation will work to progress major cultural and social projects. Such projects will include creating a new keeping place for storage of important cultural materials.

Today’s release from Rio Tinto reads:

In accordance with the right to self-determination, the agreement reflects the desire of the Traditional Owners to create a foundation that supports the cultural, social, educational, and economic aspirations of the group. The foundation … will also enable the delivery of broader benefits through commercial partnership opportunities.

Further discussions have centred on a new approach to co-management of Country and the ongoing rehabilitation of the rock shelters and their surrounds.

Rio Tinto CEO Jakob Stausholm commented:

We fell far short of our values as a company and breached the trust placed in us by the PKKP people by allowing the destruction of the Juukan Gorge rock shelters. As we work hard to rebuild our relationship, I would like to thank the PKKP people, their elders, and the Corporation for their guidance and leadership in forming this important agreement.

Today’s tumble included, the Rio Tinto share price is 4% higher than it was at the start of 2022. It has also gained 10% over the last 12 months.

Comparatively, the ASX 200 has fallen 5% year to date. The index is currently 0.5% higher than where it was this time last year.

The post Rio Tinto share price dips amid ‘important agreement’ appeared first on The Motley Fool Australia.

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• I’d drip-feed $500 a month into cheap ASX shares in this share market rally
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• 5 things to watch on the ASX 200 on Monday
• If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have
• 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.

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The S&P/ASX 200 Index (ASX: XJO) has lifted by around 12% since the end of September 2022. Delivering an annual return in just two months is quite the share market rally. But it could still be a good hunting ground for cheap ASX shares.

Some businesses still have low price/earnings (p/e) ratios despite investors pushing through a bit of a recovery for share prices.

The retail sector has gone through a tough time this year. Not only do higher interest rates hurt the valuation of companies, but lower demand by consumers could hurt businesses even more.

While there may be more volatility ahead, here’s why I think investing in the following two cheap ASX shares during this rally could make sense.

Adairs Ltd (ASX: ADH)

Adairs is a leading retailer of homewares and furniture through three different brands: Adairs, Mocka, and Focus on Furniture.

In terms of the Adairs share price, the ASX share has dropped by more than 40% this year to date. This puts the valuation at just 8x FY23’s estimated earnings.

I think that the cheap ASX share has plenty of long-term potential for returns. It has identified several locations where demographics would “clearly support” new stores, which will be larger ones.

The company hopes that more retail floor space will lead to stronger margins and more members. Management says there is a strong link between membership numbers and sales, as well as between store floor space and sales.

Mocka has been an online-only company, and sales have grown by between 30% to 35% in four of the last five years. But, it’s now expecting to establish a brick-and-mortar presence to leverage the benefits of an omni-channel strategy in time. There could be good synergies between Mocka and the acquired Focus on Furniture business. Mocka sales are expected to be at least $150 million annually within five years.

Adairs thinks Focus on Furniture can grow its store network from 23 to between 50 to 60 across Australia. This could “result in annual sales of circa $250 million” for the company when it generated $121 million in FY22.

The cheap ASX share could pay a grossed-up dividend yield of 11.4% in FY23.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is another retail ASX share. It is a part of the $10 billion beauty and personal care market in Australia – this market is expected to grow to $12 billion by 2026. The company says that it sells some of the “most innovative and technically advanced products” in its categories.

Interestingly, in FY22, exclusive products generated more than 50% of sales and around 60% of gross profit.

The company wants to continue to expand its ranges and products on offer. It’s planning to expand its New Zealand store presence. The business also noted recently that it had a “clean” inventory position with no material supply chain concerns.

While online sales may dip, store sales have recovered as shoppers resume normal shopping behaviour.

According to Commsec, the Shaver Shop share price is valued at under 9x FY23’s estimated earnings. The cheap ASX share could pay a grossed-up dividend yield of 13.1% in the current financial year.

The post I’d drip-feed $500 a month into cheap ASX shares in this share market rally appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price dips amid ‘important agreement’
• 3 ASX 200 shares that announced supersized dividends in November
• 5 things to watch on the ASX 200 on Monday
• If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have
• Brokers name 2 ASX dividend shares to buy next week

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There are few, if any, people whose names are associated with success in the stock market quite like Warren Buffett, and for good reason. With a net worth of more than $100 billion, Buffett has rightfully earned his spot among investing royalty. And one of the best things about his success is that it didn’t take some extravagant strategy to do it.

As we endure a bear market that has shrunk the value of many investors’ portfolios, here are some gems from Buffett that can help you better handle it and, indeed, use it as an opportunity.

There’s value to be found

Warren Buffett is the poster child for value investing, which is a strategy by which investors look to find stocks trading at prices lower than their intrinsic (true) value. Value investors aim to buy undervalued stocks and profit from the increase in their intrinsic value eventually. For example, if a stock is trading at $100, but an investor believes the intrinsic value is $120, they’d invest, hoping to, at minimum, profit from the 20% increase once the market realizes its true value.

During bear markets, investors can find many great companies trading at a ‘discount’ or whose stock price may have overcorrected. Let’s take Walmart, for example. From early April to mid-June 2022, Walmart’s stock price dropped by well over 20% to around $120 per share, which many investors would agree was below its intrinsic value. Investors who took advantage of that dip have made more than 25% returns since then.

Generally, when a stock’s price drops significantly, you must ask yourself why it’s happening. But, during a bear market, when prices are dropping across the board, many of these declines are just a byproduct of the greater economy and not an indication of something fundamentally changing with the business.

Don’t follow the crowd

There are many great investing quotes credited to Buffett, but none may be as relevant to today’s environment as: “Be fearful when others are greedy, and greedy when others are fearful.” Stock prices decline because investors begin selling more shares than people are buying, and demand drops. This is usually a sign that investors are fearful. Instead of following suit, it could be time to get greedy and turn it up a notch if you have the financial means.

History has shown us that bear markets are inevitable, and often necessary. The sooner you learn that the better because it helps you tune out the short-term noise and focus on the long term. It’s easy to invest consistently when prices are rising, but not so much when prices are seemingly dropping before your eyes. Slowing or stopping investing can set back your financial progress.

Since going public in December 1980, Apple‘s stock price has increased well over 100,000% yet during that span, it’s had negative returns in one-third of those years (including 2022 so far). Down years happen to even the best of companies; it’s virtually inevitable. However, if you’re focused on the long term, it shouldn’t matter too much if your portfolio fluctuates weekly, monthly, or yearly as long as the results are there in the long run.

Utilize dollar-cost averaging

Buffett has long been a proponent of dollar-cost averaging, stating, “If you like spending six to eight hours per week working on investments, do it. If you don’t, then dollar-cost average into index funds.” To dollar-cost average, you pick your stocks, determine how much you can invest, and then invest on a set schedule no matter what. The frequency isn’t as important as sticking to your preset schedule.

Dollar-cost averaging is good because it keeps you consistent as well as prevents you from trying to time the market — which investors tend to do during bear markets more so than bull markets. Think about it: If prices are dropping, why buy today when you can get it cheaper later on, right? In theory, yes. But the problem is that’s trying to time the market, which is essentially impossible to do consistently over the long run.

Dollar-cost averaging makes it easier to focus on the end goal without getting distracted.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What Warren Buffett can teach us about handling bear markets appeared first on The Motley Fool Australia.

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More reading

• 74% of Warren Buffet’s portfolio is in these 5 stocks. Could this help guide which ASX shares to buy?
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• Warren Buffett owns these 5 value stocks
• Warren Buffett doesn’t follow his own advice – and it’s made him richer
• I’d use the Warren Buffett method to create a ‘best ASX shares to buy now’ list

Stefon Walters has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway (B shares), and Walmart Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Investors are selling down the City Chic Collective Ltd (ASX: CCX) share price again on Monday.

At the time of writing, the plus sized fashion retailer’s shares are down over 23% to a multi-year low of 76 cents.

This means the City Chic share price has now lost 45% of its value in just two trading sessions.

Why are investors selling down the City Chic share price?

Investors have been heading to the exits in their droves following the release of a dismal trading update at its annual general meeting last week.

Financial year to date, City Chic reported a 2% decline in revenue to $128.6 million. This was driven largely by a very poor performance in the United States despite the benefits of favourable currency movements.

As a comparison, Goldman Sachs was expecting 18% revenue growth for the first half.

Management revealed that this poor performance was driven by “the consumer is looking for promotion as a reason to buy.” This has led to the competitive landscape intensifying as retailers promote aggressively to capture the limited spending. This is also putting significant pressure on margins.

Another area that could be causing alarm for investors is the company’s inventory position. Management’s decision to load up on inventory in order to combat supply chain issues appears to have backfired spectacularly.

City Chic expects its inventory to be in the range of $168 million to $174 million at the end of the first half. That’s almost as much as its market capitalisation. Following today’s decline, City Chic now has a market capitalisation of approximately $185 million.

Broker response

According to a note out of Goldman Sachs, in response to the update, its analysts have retained their neutral rating but slashed their price target by almost a third to $1.10.

Goldman commented:

Both a weaker top line and gross margin pressure were key risks we had flagged in our initiation, particularly around US/UK/EMEA; however, the quantum of the downgrade was more severe than we had factored in our numbers. As a result, we revise our FY23/FY24/FY25 EPS down by -101%/-26%/-17% reflecting both revenue and gross margin downgrades and lower our 12m TP by 29% to A$1.10. With this offering 10% potential upside, we remain Neutral rated.

Despite the attractive long term growth opportunity, we believe there is near term risk around (1) elevated inventory levels; (2) the macro environment for the middle-income consumer in the US and Europe which has proven to be weak; and (3) discount intensity with the competitive landscape highly promotional.

The post Why has this ASX All Ordinaries share crashed 45% in 2 days? appeared first on The Motley Fool Australia.

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More reading

• Why City Chic, Deep Yellow, Objective Corp, and Pilbara Minerals shares are falling
• What is driving the City Chic share price 21% lower on Friday?

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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An ASX dividend share offering a yield of over 14% is enough to catch almost any investor’s eye. After all, a yield that is almost triple what you can get from a typical savings account or a term deposit is a fine opportunity. Especially considering inflation is running at a hot 8% or so at the moment.

So let’s check out the Smartgroup Corporation Ltd (ASX: SIQ) share price today and see if this 14% dividend yield is worth a second look.

Smartgroup is an ASX 200 share that offers employee management services. Think salary packaging, vehicle leases, and payroll administration.

So let’s get right to it. Smartgroup has a fairly impressive record when it comes to paying out dividends. Back in 2015, this company’s maiden annual payout came to 14 cents per share. But by 2021, Smartgroup was forking out 49.5 cents per share.

And 2022 was a record year for payouts. For one, investors received a final dividend of 19 cents per share, fully franked, on 23 March this year. This was followed by an interim dividend of 17 cents per share, also fully franked, in September. That brought the annual total to 36 cents per share for 2022.

This alone would give Smartgroup a trailing dividend yield of 7.58% on the current share price of $4.75 (at the time of writing). That’s 10.82% grossed up with the full franking.

SIQ yield

But Smartgroup wasn’t done with those two payments in 2022. The company also paid out a special dividend this year. In conjunction with the March final dividend, Smartgroup also doled out a fully franked special dividend worth another 30 cents per share. This took its annual total for 2022 to a whopping 66 cents per share.

If we take this figure instead, we get to a trailing dividend yield of 13.89%. That’s a massive 19.84% grossed-up with full franking.

So is this too good to be true?

Let’s dig in.

This stupendously large trailing dividend yield comes from the payment of the special dividend.

Now Smartgroup, when announcing this special dividend, didn’t really state how it was funded or why management chose to pay it out. But due to its ‘special’ nature, it could be optimistic to assume it will be a regular feature of Smartgroup’s earnings.

Saying that, Smartgroup has paid out a special dividend before. In fact, it did so in both 2019 and 2021, as well as 2022.

As we discussed earlier, it has also been fairly steady in delivering annual dividend pay rises to investors as well.

Additionally, the company seems to be in rude financial health. in its last annual earnings report (covering 2021), which was delivered in February, Smartgroup declared a 3% rise in revenues and a 7% lift in net profits after tax, adjusted for amortisation.

Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) were also up 8% over the previous year.

Is Smargroup well placed to continue its massive dividends?

So in light of this growth, it’s very possible that Smartgroup can continue to afford to fund its dividends at 2022’s levels going forward. That’s especially so if its full-year numbers for 2022 are even better than those delivered for 2021.

Dividend payments are never guaranteed on the ASX. But there are few warning signs we can point to that indicate Smartgroup is not in a position to build on the impressive dividends it has paid out this year.

The post 14% dividend yield! Should I buy this ASX 200 share for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 SMARTGROUP DEF SET. 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 uranium shares haven’t joined in the broader energy stock rally in 2022.

Though 2023 could present a different picture.

Soaring fossil fuel prices have sent the S&P/ASX 200 Energy Index (ASX: XEJ) up 39% year to date.

Yet most ASX uranium shares remain in the red.

For example, in 2022:

• The Paladin Energy Ltd (ASX: PDN) share price is down 7%
• Bannerman Energy Ltd (ASX: BMN) shares are down 35%
• The Deep Yellow Limited (ASX: DYL) share price has lost 27%
• And Boss Energy Ltd (ASX: BOE) shares have fallen 2%

Now, it’s worth noting that all of the ASX uranium shares named above enjoyed very strong share price gains in 2021. Paladin shares, as one example, soared 267% over the full year. So a bit of a pause or retrace this year wasn’t entirely unexpected.

But with nations across the world revisiting nuclear power as a reliable baseload source with negligible carbon emissions, ASX uranium shares could shine brightly again in 2023 and the years ahead.

Could this new UK plan help boost ASX uranium shares?

The United Kingdom doesn’t make the list of nations with the most nuclear power plants in the pipeline. That honour goes to China, which has some 17 large-scale nuclear power stations under construction.

However, the UK is eager to extricate itself from the global energy crisis while moving away from coal and gas-fired power.

As The Times reports, Business secretary Grant Shapps is this week expected to announce the proposed creation of a new body called Great British Nuclear.

Great British Nuclear intends to develop 20 to 30 small modular nuclear reactors, built by Rolls-Royce.

The modular reactors are significantly cheaper to develop than traditional large-scale plants, with each reported to be able to power a million homes.

Australia’s uranium trove

On completion, the modular reactors will need uranium to provide that power, as will the score of large-scale reactors being constructed in China and other nations the world over.

And with Australia sitting on the world’s largest proven uranium reserves, ASX uranium shares could see the good times of 2021 come knocking once more.

The post Could this new UK plan help boost ASX uranium shares in 2023? appeared first on The Motley Fool Australia.

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

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The market may be starting the week in the red but that hasn’t stopped a couple of ASX mining shares from surging higher.

Here’s why these mining shares are starting the week on a high:

Nico Resources Ltd (ASX: NC1)

The Nico Resources share price has jumped 25% to 77.5 cents.

Interestingly, this is despite there being no news out of the nickel focused mineral exploration company on Monday, which could mean it gets hit with a price query from the ASX later.

It seems that some investors are keen to get hold of the company’s shares ahead of the release of an updated mineral resource estimate in early 2023 for the Central Musgrave Project.

Management recently stated that more detailed geological and grade modelling is expected to result in an uplift in the projects high-grade tonnage, which is expected to contribute positively to the project economics and payback period for the project.

Odyssey Gold Ltd (ASX: ODY)

The Odyssey Gold share price is up 18% to 4.6 cents this morning.

This follows the release of an update on drilling activities at the Highway Zone at the gold explorer’s Tuckanarra JV Project.

According to the release, the company made an exceptional bonanza-grade gold oxide intersection during recent drilling. It also revealed that high grades were intersected in a predicted high grade shoot.

Managing Director, Matt Briggs, commented:

This stunning result continues to confirm the extent of wide, high-grade mineralisation which has already been intersected in the adjacent drill holes, again highlighted by this exceptional intercept of 43m @ 8.3g/t Au from 41m.

Extensive mineralisation of this grade and width further establishes the Highway Zone as a broad structure that reinforces the project’s potential for open pit mining.

The post 2 ASX mining shares flying over 18% higher on Monday appeared first on The Motley Fool Australia.

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

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