The Kogan.com Ltd (ASX: KGN) share price is pushing higher on Thursday morning.

At the time of writing, the struggling ecommerce company’s shares are up 2% to $3.34.

Despite this, as you can see below, the Kogan share price is still down approximately 60% in 2022.

Why is the Kogan share price rising?

There have been a couple of catalysts for the rise in the Kogan share price on Thursday.

The first has been a strong showing in the tech sector this morning following a very positive session on the NASDAQ index overnight.

Also potentially giving its shares a lift is news that Kogan has made a new acquisition.

According to the release, the company has snapped up online luxury furniture retailer Brosa just over a week after it fell into administration. The deal will see the furniture brand stay alive and relaunched with the backing of Kogan.

Kogan has paid $1.5 million from its cash reserves. It will also provide logistics support for thousands of customers with undelivered orders.

The release explains that Kogan has purchased intellectual property, goodwill, and stock. However, the deal excludes all leases and other liabilities.

What is Brosa?

Founded in 2014, Brosa is an online luxury furniture retailer with almost 500,000 subscribers that delivers practical design-led furniture without the price tag.

In FY 2022, the business generated revenue of $75 million, largely from its online operations that were boosted by COVID tailwinds. But when these tailwinds eased and consumers returned to bricks and mortar stores, it quickly ran out of cash and was put into administration.

And despite recently being valued at over $60 million and being backed by venture capital investors such as Bailador Technology Investments Ltd (ASX: BTI), as mentioned above, Kogan was able to snap up Brosa for just $1.5 million.

While this low price tag sounds like a bargain on paper, the lack of venture capital interest is something to ponder. As is the prospect of one struggling ecommerce retailer buying another struggling ecommerce retailer. Whether this is a recipe for disaster or a masterstroke, time will tell.

Nevertheless, Kogan’s COO and CFO, David Shafer, is positive on the acquisition. He said:

The acquisition of Brosa by Kogan will broaden the online furniture offering of the Kogan Group, providing unprecedented range and value to Brosa customers, while also expanding the range of furniture and homewares available to Kogan customers. We are pleased to be able to offer a lifeline to Brosa customers, to be able to save the Brosa brand, and to relaunch Brosa.com.au very shortly. Following years of investment in brand-building and marketing, Brosa is a well known online furniture brand in Australia, and we are delighted to be able to bring the brand within the Kogan Group.

The post Why is the Kogan share price charging higher today? appeared first on The Motley Fool Australia.

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More reading

• Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park
• This Kogan director (and Boost founder) just tripled her holding of Kogan shares
• 5 of the craziest things making news on the ASX this week
• Why Kogan, Nick Scali, PointsBet, and Sayona Mining shares are pushing higher
• Kogan share price jumps 13% as boss touts ‘return to historic growth trajectory’

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 positions in and has recommended Kogan.com. The Motley Fool Australia has positions in and has recommended Kogan.com. 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 is pushing higher on Thursday morning.

In morning trade, the mining giant’s shares are up 1% to $46.77.

Why is the BHP share price rising?

Investors have been buying the Big Australian’s shares this morning after it announced an agreement to acquire copper miner OZ Minerals Limited (ASX: OZL).

According to the release, after a four-week exclusive due diligence period, the two parties have entered into a scheme implementation deed that will see BHP acquire 100% of OZL by way of a scheme of arrangement for a cash price of $28.25 per share.

This agreement is on the same terms as BHP’s non-binding indicative proposal that was revealed on 18 November 2022.

The cash price of $28.25 per share equates to an enterprise value of $9.6 billion and represents a 49.3% premium to where OZ Minerals shares were trading prior to its initial proposal back on 5 August.

The scheme comes with a break fee of $95 million and allows for a dividend of up to $1.75 per share to be paid by OZ Minerals. However, the offer price will reduce in line with this dividend.

Unanimous support

The OZ Minerals board has unanimously recommended that its shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert’s report.

Each OZ Minerals director intends to vote their shares in favour of the scheme, subject to the same conditions.

BHP’s CEO, Mike Henry, was pleased with the news and believes the combination of the two miners will unlock opportunities that wouldn’t be possible separately. He said:

The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development. We thank the OZL Board and management for their engagement through the due diligence process and look forward to working together to continue to take steps forward to complete the transaction.

The post BHP share price higher on OZ Minerals $9.6b takeover agreement appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Goldman tips record copper prices in 2023. Which ASX shares have exposure?
• Up 20% in a month, can the BHP share price continue it’s run in December?
• ‘Long & bullish’: Expert picks 2 ASX shares to buy as investors flock back to market
• Climate and energy: Analyst tips 2 ASX shares perfectly placed for global crises

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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A share market expert is predicting a Santa rally could still be on the way this year.

CNBC TV personality and expert stock picker Jim Cramer believes “Christmas is not going to be cancelled for Wall Street” this year.

So could this impact the S&P/ASX 200 Index (ASX: XJO) too? Let’s take a look.

What is a Santa rally?

Firstly, a Santa rally is a trend of the stock markets to outperform in the lead-up to Christmas, or just after Christmas.

A Santa rally generally is meant to take place in either the five days leading up to Christmas. Or, the last five trading days of the year.

When to buy?

A Santa rally in the United States could still be on the way, according to CNBC’s Jim Cramer. As a stock market devotee, Cramer delivered average annual returns of 24% over 14 years between 1988 to 2000.

Cramer said the best time to buy could be this Thursday, citing charts from 60-year trading veteran Larry Williams. Williams is known for trading his own money live at seminars around the world.

The charts suggest the market “may have just entered a seasonal sweet spot,” Cramer said. He added:

The charts, as interpreted by Larry Williams, suggest that Christmas is not going to be cancelled for Wall Street – he thinks we still have a Santa Claus rally coming, and the ideal time to buy is sometime around this Thursday.

I know it’s hard to believe that the market’s ready to run, but that’s how it always is with Larry’s calls. Although it’s possible this year will be different, historically, betting against him has been a real bad strategy.

Could the Santa rally impact the ASX 200?

The ASX 200 could follow in the footsteps of Wall Street with a Santa rally, according to City Index senior market analyst Matt Simpson.

Simpson highlighted that the ASX 200 has returned an average of 1.7% in December over the last 30 years. In comments provided to The Motley Fool, he said:

If Wall Street can muster up a rally into the back of the year, so can the ASX 200.

December usually generates excitement of a ‘Santa’s rally’, which can be justified with an average return of 1.7% in December over the past 30-years. Yet in recent years this positive expectancy has diminished, with an average return of 0.9% over the past 10 years and -2.6% over the past 5 years.

In a nutshell, I think we can see a bounce on the ASX from here but remain sceptical of it breaking to new highs. We’ll take it if it does, but it would be a bonus at this point.

The post Not too late for a Santa rally: expert appeared first on The Motley Fool Australia.

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More reading

• Buy Westpac and this ASX 200 dividend share: brokers
• Here’s what Goldman Sachs is now saying about the Pilbara Minerals share price
• Stock market correction: How I’m using this opportunity to build wealth with ASX shares
• Guess which ASX 200 share turned a $10,000 investment into $40,000 in 2022
• Mineral Resources is a ‘formidable player in the lithium market’: Broker tips major share price gains

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.

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If you’re looking for ASX 200 dividend shares to buy, then the two listed below could be worth considering. Both have been named as buys by top brokers and tipped to provide investors with attractive yields.

Here’s what you need to know about these ASX 200 dividend shares:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 dividend share that could be worth considering is Collins Foods.

Collins Foods is one of the largest operators of KFC restaurants in Australia and has a growing presence in Europe.

While its performance in 2022 has been disappointing due to inflationary pressures and the significant underperformance of the Taco Bell brand, Morgans believes that investors should be patient and remains positive on the company’s long term outlook.

As a result, it appears to see recent share price weakness as a buying opportunity. The broker has an add rating and $9.50 price target on its shares.

In respect to dividends, Morgans is expecting fully franked dividends of 24 cents per share in FY 2023 and 26 cents per share in FY 2024. Based on the current Collins Foods share price of $7.04, this will mean attractive dividend yields of 3.4% and 3.7%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be a buy is Westpac.

Goldman Sachs is positive on Australia’s oldest bank and has named it as its top option in the banking sector right now. The broker has a conviction buy rating and $27.60 price target on Westpac’s shares.

Goldman is a fan of Westpac due to its positive net interest margin (NIM) trajectory, its cost reduction target, and attractive valuation.

In respect to its NIM, Goldman highlights that “management’s guidance on its FY23 NIM trajectory was better than we had previously anticipated.” This could bode well for its earnings and dividends in the near term.

Speaking of which, the broker is forecasting fully franked dividends of 148.4 cents per share in FY 2023 and 160 cents per share in FY 2024. Based on the current Westpac share price of $23.55, this will mean yields of 6.3% and 6.8%, respectively.

The post Buy Westpac and this ASX 200 dividend share: brokers appeared first on The Motley Fool Australia.

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More reading

• 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell)
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
• Are Westpac shares worth buying now for dividend income in 2023?
• Start generating extra income by investing $5 a day in ASX shares. Here’s how

Motley Fool contributor James Mickleboro has positions in Collins Foods and Westpac Banking. 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 and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price has been having a tough time lately.

As you can see below, after rising strongly between July and November, the lithium miner’s shares have pulled back materially.

Investors may now be wondering if this has created a buying opportunity for investors. Let’s take a look.

Is the Pilbara Minerals share price now in the buy zone?

According to a note out of Goldman Sachs, its analysts continue to sit on the fence with this one despite the recent weakness.

This morning’s note reveals that Goldman has retained its neutral rating on the company’s shares. Though, it is worth highlighting that the broker’s improved price target of $4.70 implies meaningful upside potential.

Based on the latest Pilbara Minerals share price of $3.84, it suggests upside of 22% for investors over the next 12 months.

Goldman is also expecting a fully franked 21.4 cents per share dividend in FY 2023, which represents a 6% yield. This stretches the total potential return to 28%. Not bad for a neutral rating!

What did the broker say?

The broker’s main qualm is the valuation of the Pilbara Minerals share price, which it feels is about fair based on its long term spodumene price forecasts. It said:

While near-term prices support a strong c.10-20% FCF yield over and above planned incremental capex spend, we see this as priced in trading at ~1x NAV on GSe LT US$1,000/t spodumene (peer average ~1x)

Lithium price and cost blow outs

Goldman also commented on yesterday’s news relating to lithium pricing and its increased capital expenditure for the P680 project. It believes the former more than offsets the latter. The broker explained:

PLS has revised the P680 project capex to ~A$404mn, largely on material/equip, acceleration to maintain delivery schedule, and labour costs, with commissioning still on track for 2H CY23. FID for the P1000 project is now scheduled 1Q CY23, though ~A$38mn pre-FID funding was approved to procure long-lead items. However completed price reviews with major offtake customers drives stronger FY23E realised pricing and more than offsets the higher capex in our view.

The post Here’s what Goldman Sachs is now saying about the Pilbara Minerals share price appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Pilbara Minerals share price leaps on positive lithium price update
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why

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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I’ve been taking advantage of this ASX stock market correction to invest in a number of compelling ideas. I think this period can help me grow wealth at a quicker pace.

It’s not often that the ASX share market goes through this level of volatility. Yet, this was the second time in three years that the share market has gone through a major decline. The other plunge was the COVID-19 crash, but that was a fairly short-lived drop.

Hamburger shopping

For me, while some people pull back from investing during times of weakness, I think that’s a good time to go hunting for opportunities.

One of my favourite quotes from Warren Buffett could provide wise advice during this uncertain time. In 2001, the sage of Omaha said:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying – except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

To me, it makes total sense to invest when the ASX shares we want are at a discount, rather than expensively priced.

I see some very solid businesses that are down substantially, such as the Xero Limited (ASX: XRO) share price and the Wesfarmers Ltd (ASX: WES) share price.

Higher interest rates may justify some of the decline in valuation terms, but they are down heavily regardless of what the central banks are doing.

Why I’m taking advantage of this ASX stock market correction

Time will tell what this tricky period does to the earnings of businesses. But I do know that many share prices are now lower than they were last year.

For many names, we have seen a significant decline in the price-to-earnings (p/e) ratio.

If a business is currently at a p/e ratio of 20 after a share price decline due to the uncertainty, but if the p/e ratio then rises to 22 simply because some investor confidence returns, that’s a potential 10% capital return.

Another example of how this correction can help grow wealth is through higher dividend yields, improving the annual cash returns.

For example, if a company had a dividend yield of 5% before the decline and then the share price dropped 20%, the dividend yield would be 6% for prospective investors. An extra 1% per annum could make a noticeable difference to wealth-building over a decade.

Even if investors don’t want to invest in any specific names, they can use the volatility to buy a piece of the whole global share market with an exchange-traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS).

I don’t know when the next crash will be, but I don’t think we’ll see this level of uncertainty very often, which is why I view this period as a limited-time offer to buy discounted ASX shares.

The post Stock market correction: How I’m using this opportunity to build wealth with ASX shares appeared first on The Motley Fool Australia.

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More reading

• Don’t try to predict where ASX shares go in 2023, do this instead: Scott Phillips
• Top ASX growth shares to buy for a stock market rebound
• 3 reasons to buy the Vanguard MSCI Index International Shares ETF (VGS) before 2023
• Why this blue-chip stock is a no-brainer buy for dividend growth investors
• Would you be rich if you’d invested in these ASX shares 10 years ago?

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 Xero and Vanguard MSCI Index International Shares ETF.. The Motley Fool Australia has positions in and has recommended Wesfarmers and Xero. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 been a rough year for S&P/ASX 200 Index (ASX: XJO) investors, as many of the market’s favourite shares suffered amid a downturn.

As of this morning, the ASX 200 is 6.25% lower than it was at the start of 2022. But not all has been dire on the Aussie bourse.

If an investor were to have bought $10,000 of one ASX 200 share at the start of 2022, they would have quadrupled their money by now.

So, which stock has managed to post a return on investment above 300% this year? It was Whitehaven Coal Ltd (ASX: WHC).

The ASX 200 share that returned more than 300% in 2022

The coal producer’s stock has had a ripper run this year as the conflict in Ukraine drove the black rock’s value through the roof. That pushed the company’s bottom line sky high.

Whitehaven posted a near-1,400% jump in earnings for financial year 2022 and returned to profit, ending the fiscal year $1.9 billion in the green.

The company has also vowed to buy back 35% of its outstanding stock. It snapped up 10% of its shares between March and October before announcing its plan to buy back another 240 million over the following 12 months.  

All that likely helped drive the Whitehaven share price upwards. It’s gained 290.58% year to date to trade at $10.78 today.

However, looking back at its first close of 2022, the stock was swapping hands for just $2.76.

That means a $10,000 investment on 4 January would probably have seen one buy 3,623 shares in the ASX 200 coal giant. Today, that parcel would be worth $39,055.94.

Whitehaven also returned to dividend this year. It paid investors 8 cents per share in March and 40 cents per share in September.

Thus, our imagined investment would have also yielded $1,739.04 of passive income in 2022.

Our figurative investor could have realised even greater returns if they compounded their dividends by reinvesting them in the stock.

All up, a $10,000 investment in the ASX 200 share would have returned 308% amid 2022’s downturn.

Perhaps Whitehaven’s incredible year-to-date performance proves there will nearly always be wealth-building opportunities among ASX shares, no matter how dire the market may appear.

The post Guess which ASX 200 share turned a $10,000 investment into $40,000 in 2022 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 5 things to watch on the ASX 200 on Wednesday
• 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 Mineral Resources Ltd (ASX: MIN) share price has been a very strong performer in 2022.

Since the start of the year, the mining and mining services company’s shares have risen an impressive 38%, as you can see below.

This compares very favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which is down 6.25% year to date.

Can the Mineral Resources share price keep rising?

The good news is that one leading broker believes the Mineral Resources share price can keep climbing from here.

According to a note out of Morgans, its analysts have initiated coverage on the company with an add rating and $94.00 target price.

Based on its current share price of $80.70, this implies potential upside of 16.4% for investors over the next 12 months.

But it gets better! Morgans is expecting the company to pay a fully franked $4.81 per share dividend in FY 2023. This represents a 6% dividend yield, stretching the total potential return beyond 22%.

‘Formidable’

Morgans has been impressed with the company’s transformation and notes that it is now a “formidable resource player with lithium clout.” It commented:

MIN is a business that is transforming from being primarily leveraged to high-cost / shortlife iron ore operations to low-cost / long-life iron ore and lithium assets. […] MIN is the world’s largest crushing contractor, a top five global lithium producer, a top five Australian iron ore producer, and the largest landholder in the Perth Basin (gas/condensate). It is a formidable founder-led business.

MIN has developed into a formidable player in the lithium market with lithium spodumene and lithium hydroxide production across its Mt Marion and Wodgina operations. Using the current lithium market strength to its advantage, MIN is working hard to expand all parts of its lithium business.

Very strong result expected in FY 2023

Morgans is expecting a very strong result in FY 2023 thanks to favourable iron ore and lithium prices. It said:

Riding the current upcycle in lithium and iron ore prices, we expect EBITDA to triple in FY23 to ~A$3.3bn. This would see the dividend yield jump to 6.1%, a significant increase on FY22 when MIN did not pay an interim dividend.

In light of this and thanks to its strong growth outlook, the broker sees value in the Mineral Resources share price at the current level. It adds:

Unlike the vast majority of its ASX-listed peer group, MIN is a growth story. This growth, from projects such as Onslow (iron ore), hydroxide growth, and Wodgina ramp up, will help to unlock value for MIN (or help offset any broader volatility).

The post Mineral Resources is a ‘formidable player in the lithium market’: Broker tips major share price gains appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• Why is the Norwest Energy share price rocketing 31% on Friday?
• Mineral Resources share price lower despite Norwest Energy takeover offer
• 5 things to watch on the ASX 200 on Thursday

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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One of the leading S&P/ASX 200 Index (ASX: XJO) dividend shares could be a top pick for passive investment income for years to come. I’m talking about APA Group (ASX: APA) shares.

With so much uncertainty and volatility amid high inflation and rising interest rates, it’s difficult to predict how resilient some dividends are going to be in 2023 and beyond.

There are plenty of retailers that could see lower profits and dividends in FY23. Some ASX resources shares could also see a dividend drop.

While dividends are not guaranteed, I think there are a few names that could pay a larger dividend next year and in future years.

I think the ASX 200 dividend share APA could be a robust pick. Interestingly, the APA share price has gone up 8% in 2022 to date, despite many other ASX shares feeling some pain.

What it does

APA says that it has around 30,000 km (and growing) of natural gas mains and pipelines, connecting sources of supply to markets across mainland Australia.

It operates and maintains gas networks that connect 1.4 million Australian homes and businesses to natural gas.

The business owns, or has interests in, gas storage facilities, gas-fired power stations, and renewable energy generation (wind and solar).

Dividend credentials

APA is one of the few ASX 200 dividend shares that grew its shareholder payout during COVID-19.

The gas infrastructure business funds its distributions from the cash flow that is generated. APA is looking to generate more cash flow as it builds more pipelines. It invested over $500 million in growth projects in FY22.

Two key projects include the $270 million spend on stage 1 and stage 2 expansion of the east coast grid, which the company says “will help address forecast winter gas shortfalls as well as facilitate the firming on renewables” and the $460 million Northern Goldfields Interconnect.

APA has grown its distribution every year for the past decade and a half. It’s expecting to grow its payout by another 3.8% to 55 cents per security. APA recently grew its interim distribution by 4% to 25 cents per security.

This works out to be a forward distribution yield of 5% from the ASX 200 dividend share.

Increasing investment in non-gas assets

Looking ahead beyond 2023, I think APA is doing the right thing by investing in things like renewable energy, such as the Mica Creek solar farm. Another example is the Gruyere solar farm and battery storage.

APA said that greater policy certainty is now providing opportunities for APA to invest in electrification, renewables, and new energy technologies.

The business also recently announced it was going to acquire Basslink for $773 million. Basslink owns and operates the 370km high voltage direct current electricity connector between Victoria and Tasmania.

The acquisition will include contracts in place with Hydro Tasmania and the State of Tasmania to provide “predictable revenues whilst APA works to convert Basslink to a regulated asset”.

Potential for hydrogen

APA is looking to future-proof its business by investigating whether its pipelines can be used to transport hydrogen, particularly a blend of hydrogen and gas.

The ASX 200 dividend share is working on a number of hydrogen-related projects including phase 2 of the Parmelia gas pipeline hydrogen project. It’s also working on feasibility studies for the Central Queensland hydrogen project and the mid-West blue H2 and carbon capture and storage (CCS) project.

If it’s successful in making its gas pipelines suitable for hydrogen, then it can extend the life of its assets for longer.

The post One ASX 200 dividend share to buy for passive income in 2023 and beyond appeared first on The Motley Fool Australia.

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More reading

• Can a high-yield ASX dividend stock still be safe?
• 2 ASX dividend shares that have raised their payouts by 20% in 5 years
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Group Ltd (ASX: TLS) share price has risen slightly in the last month, but is it a buy or sell?

Telstra shares have climbed 2% in the last month and are currently fetching $4.02. On Wednesday, Telstra shares closed 0.5% lower for the day.

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

Is Telstra a buy or sell

Telstra is the largest telecommunications company in Australia by market share. However, broker coverage on the Telstra share price is mixed.

Seneca investment adviser Tony Langford is recommending investors look elsewhere for more attractive share price growth. Yet, he highlighted Telstra’s “defensive qualities” and dividend yield. Commenting on The Bull, he said:

Telstra appeals for its defensive qualities and dividend yield in volatile markets. At its full year results, Telstra forecast total income to range between $23 billion and $25 billion in fiscal year 2023.

But we believe investors can find more attractive share price growth elsewhere. The shares were priced at $4.26 on January 18. The shares were trading at $4.04 on December 15.

On the flip side, Morgans recommended shareholders buy Telstra in December. The broker placed a $4.60 price target on the company’s shares.

As my Foolish colleague James reported, Morgans is positive on the telco’s earnings momentum and balance sheet. The broker also believes Telstra’s InfraCo business can generate more value for shareholders. Morgans is also tipping Telstra to pay fully franked dividends of 16.5 cents per share in FY 2023 and FY 2024. Analysts said:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote[d] on Telstra’s legal restructure, which opens the door for value to be released. […] TLS currently trades on ~7x EV/EBITDA.

However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders.

In news on Wednesday, the Australian and Competition and Consumer Commission (ACCC) has blocked Telstra’s proposed regional mobile network deal with TPG Telecom Ltd (ASX: TPG) due to competition concerns.

The agreement would have provided TPG with access to 3,700 of Telstra’s mobile network assets. Telstra would also have gained access to TPG’s spectrum on the 4G and 5G network, delivering between $1.6 billion and $1.8 billion over 10 years.

Share price snapshot

The Telstra share price has descended 2.66% in the last year.

Telstra has a market capitalisation of about $46.6 billion based on the current share price.

The post Should you buy Telstra shares for their ‘defensive qualities’? appeared first on The Motley Fool Australia.

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More reading

• Why BWX, Novonix, Symbio, and TPG shares are dropping today
• Telstra share price lower after ACCC blocks TPG deal
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
• Building a passive income for retirement? Check out these ASX 200 dividend shares – analysts

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 Group. 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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