The BHP Group Ltd (ASX: BHP) share price had a tough day on the market today.

BHP shares fell 1.52% to close at $46.08. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.31% today.

Let’s take a look at what impacted the BHP share price today.

What’s going on?

BHP is not the only ASX iron ore share that struggled today. The Fortescue Metals Group Limited (ASX: FMG) share price slid 4.21% today, while Rio Tinto Ltd (ASX: RIO) shares dropped 1.93%.

The S&P/ASX 200 Materials Index (ASX: XMJ) slid 1.4%, making it the worst-performing sector on the market.

BHP, Rio, and Fortescue are all among the top iron ore producers in the world.

Iron ore futures on the Singapore Exchange is down 2.28% to US$106.90 at last look.

The share price of the largest iron ore producer in the world, Vale SA (NYSE: VALE), also dropped 4.19% on the New York Stock Exchange overnight.

Navigate Commodities managing director Atilla Widnell said iron ore at more than $100 a tonne seems “overvalued” currently. In quotes cited by Hellenic Shipping News, Widnell added:

The longer prices persist above this level there’s an increasing likelihood the pricing-floor may start to move higher.

Iron ore futures rallying to close at $111.75/t on Friday is yet another poignant example of just how much heat and overly positive sentiment is currently built in to the current pricing structure.

Macquarie analysts have recently retained an outperform rating on BHP shares with a $50 price target. The team lifted their price target to reflect higher-than-expected iron ore prices.

BHP share price snapshot

The BHP share price has risen 26% in the last year, as shown in the graph below. It is also up by more than 9% in the past month.

BHP has a market capitalisation of about $233 billion.

The post Why did the BHP share price get hammered on Tuesday? 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

• 2 ASX 200 dividend heavyweights to buy and hold until you retire
• Why is the Fortescue share price tanking on Tuesday?
• Is now really the time to buy ASX 200 shares?
• Top ASX dividend shares to buy in December 2022
• 5 things to watch on the ASX 200 on Tuesday

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 recommended Macquarie Group. 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/XTDw4nb

The S&P/ASX 200 Index (ASX: XJO) traded in the green on Tuesday, recovering some of yesterday’s slump. At the end of today’s session, the index was 0.31% higher at 7,203.3 points

Tech shares were among the market’s best performers today, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) lifting 1.7%.

It followed a decent night on Wall Street that saw the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) posting a 1.3% gain. The Dow Jones Industrial Average Index (DJX: .DJI) meanwhile, rose 1.6% and the S&P 500 Index (SP: .INX) lifted 1.4%.

Banks also posted a good day’s trade today, with the S&P/ASX 200 Financials Index (ASX: XFJ) gaining 1.4%.

However, the market’s other giants, miners, struggled. The S&P/ASX 200 Materials Index (ASX: XMJ) fell 1.4% on the back of lower commodity prices.

Gold futures prices fell 1% to US$1,792.30 an ounce overnight while iron ore futures slipped 0.9% to US$109.47 a tonne.

All in all, all but one of the ASX 200’s 11 sectors closed higher. But which stock outperformed all its peers to post today’s biggest gain? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was Bendigo and Adelaide Bank Ltd (ASX: BEN) – lifting 6.9%.

Its gains come on the back of a positive trading update, detailing a 22% jump in cash earnings.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Bendigo and Adelaide Bank Ltd (ASX: BEN)	$9.66	6.86%
Megaport Ltd (ASX: MP1)	$7.12	5.95%
Imugene Limited (ASX: IMU)	$0.195	5.41%
Challenger Ltd (ASX: CGF)	$7.67	4.64%
Nanosonics Ltd (ASX: NAN)	$4.55	4.36%
Telix Pharmaceuticals Ltd (ASX: TLX)	$6.99	4.33%
Kelsian Group Ltd (ASX: KLS)	$5.67	4.04%
Corporate Travel Management Ltd (ASX: CTD)	$14.76	3.87%
Smartgroup Corporation Ltd (ASX: SIQ)	$5	3.52%
Xero Limited (ASX: XRO)	$72.98	3.33%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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 Tuesday
• How I’d try to make $1 million by investing $5 a day in ASX 200 shares
• Why Bendigo Bank, Block, Megaport, and Starpharma shares are rising today
• The Macquarie dividend is being divvied out today. Here’s the lowdown
• Bendigo Bank share price surges 7% on earnings boost

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 positions in and has recommended Megaport, Nanosonics, and Xero. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank, Nanosonics, Smartgroup, and Xero. The Motley Fool Australia has recommended Challenger, Corporate Travel Management, and Megaport. 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/bxIhUEl

One of the great silver linings of a bear market is that it’s sometimes possible to snap up great companies at a bargain price.

Some places to start uncovering these discounted shares include the recent recommendations of our Share Advisor team.

These recommendations aim to help investors beat the market by outperforming an investing benchmark such as the S&P/ASX 200 Index (ASX: XJO) which has slipped 5.12% this year so far.

Shares on the following list have fallen 30% or greater year to date, but are unlikely to stay cheap forever. So to lock in some potential gains, let’s cover which Fool recommendations are worth buying before the curtain falls on 2023.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is down 30.7% so far this year but could be poised to recover strongly. One reason to be bullish is that the company’s revenues are scaling upwards.

Nine Entertainment’s advertising revenue growth is primarily driven by the company’s strong presence in the Australian media market. Nine Entertainment is the leading commercial free-to-air broadcaster in Australia and is home to some of the country’s most popular television shows.

In August, the company reported its revenues increased 15% year over year (yoy) to $2.7 billion in FY2021. Meanwhile, its bottom line also saw a lift, with its earnings before interest, taxes, depreciation, and amortisation (EBITDA) growing 24% to $700.7 million.

Some analysts also agree the share could be undervalued. These include Shaw and Partners portfolio manager James Gerrish, who noted:

At just 11x expected FY23 PE, Nine is undervalued and recent numbers suggest the underlying business is holding up better than expected.

Xero Limited (ASX: XRO)

Xero, which provides a software-as-a-service (SaaS) accounting solution to businesses, has also had a rough year, with its shares losing almost 50% of their value year to date.

Xero was recommended as a buy in September due to the size of its total addressable market, recent financial performance, and discounted share price.

When the company reported its results for FY2021 in May, Xero stated it had grown its user base in all of its key regional operating segments including Australia, New Zealand, and the United Kingdom.

Looking ahead, there could be a strong opportunity for Xero to continue adding users in its North American segment where it reported a relatively low user penetration of 339,000 subscribers. With approximately 33.2 million small businesses in the United States alone, it suggests substantial room for growth.

In terms of Xero’s financials and key metrics, its total subscribers grew 19% yoy in FY2021 to 3.3 million, while its annualised monthly recurring revenue (AMRR) grew 28% to NZ$1.2 billion. It should be noted Xero recorded a net loss after tax of NZ$9.1 million during this period.

As for its share price, Morgans gave it a price target of $77 earlier this month. That represents an upside of 5.5% at the time of writing.

ARB Corporation Limited (ASX: ARB)

ARB designs and manufactures automotive accessories for four-wheel-drive (4WD) and light commercial vehicles. The company has seen its share price drop 47% so far this year.

But its recent top and bottom line performances, as well as its robust balance sheet, were among the reasons for bullish sentiment.

As part of its full-year results for FY2022, ARB stated its revenues grew 11.4% yoy to $697.3 million while net profit after tax (NPAT) grew 8.1% yoy to $122 million. At the time, ARB said it had no debt on its books along with a healthy cash reserve balance of $52.7 million.

Although it declined to give revenue and earnings guidance as part of its results, ARB did paint a bullish picture of where it will be headed in 2023 and beyond.

ARB Corporation’s managing director Andrew Brown said:

The board remains positive and expects that the company should benefit by the end of calendar 2022 from recent new vehicle models, a strong customer order book sitting well above historical levels, a number of all-new products due for imminent release, healthy demand for the company’s products around the world and the prospect of increasing supply of new vehicles to the market.

Citi analysts gave ARB Corporation’s share a price target of $39.25 in November. That represents almost 40% upside at the time of writing.

The post Looking for bear market bargains? 3 ASX shares to buy before 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

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How I’d try to make $1 million by investing $5 a day in ASX 200 shares
• The Macquarie dividend is being divvied out today. Here’s the lowdown
• Is now really the time to buy ASX 200 shares?
• 3 incredible ASX tech stocks down over 50% to buy before the next bull market

Motley Fool contributor Matthew Farley 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. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended ARB Corporation and Nine Entertainment. 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/DqakZvF

The Commonwealth Bank of Australia (ASX: CBA) share price is one of the most watched within the S&P/ASX 200 Index (ASX: XJO), being the biggest ASX bank share. But, with its large size, is the company a major opportunity?

There is plenty to look at in the banking sector at the moment. Ever since COVID-19 came onto the scene, banks have had to deal with significant changes to the financial situation.

Investors that have held CBA shares for decades have done very well, particularly with all of the dividend income that it has dished out.

But, with the CBA share price up more than 16% over the last six months, could the bank be a solid buy?

Optimistic case for CBA shares

One of the key reasons why CBA shares could continue to do well from here is that interest rates are rising.

As a bank, the interest rate is a key part of its financials. It charges interest for customers and pays interest on a lot of the money that is held on deposit for customers.

CBA and many other ASX 200 bank shares are passing on the interest rate hikes to borrowers very quickly, while not passing on the overall increase to savers as quickly.

This is helping boost the CBA net interest margin (NIM) – it will be interesting to see how high CBA’s NIM can go during this period. The higher NIM can boost bank earnings, and investors often like to use profit as a guide for their thoughts on the CBA share price (and many other share prices).

As I’ve already mentioned, the CBA dividend has been very rewarding for investors and this could continue.

The broker Credit Suisse suggests that CBA could pay an annual dividend yield of 5.8% in FY23 and 5.9% in FY24.

Reasons to avoid

CBA has done very well over the decades. But, investors are now pricing at an exceptionally high level compared to other ASX banks.

For example, on Credit Suisse’s numbers, the CBA share price is valued at 17 times FY23’s estimated earnings.

But, Credit Suisse numbers put the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price at under 10 times FY23’s estimated earnings, the Westpac Banking Corp (ASX: WBC) share price at 12 times FY23’s estimated earnings and the National Australia Bank Ltd (ASX: NAB) share price at 12 times FY23’s estimated earnings.

While the higher valuation of CBA shares may not necessarily mean it’s going to fall, it could be better value for investors to consider other ASX 200 bank shares.

I’m also keeping in mind that while the bank may earn higher margins in the short term, there’s a danger that the higher loan rates could mean that arrears and bad debts could rise in 2023.

For these reasons, I think it could be better for investors to wait for a better valuation on CBA shares.

The post CBA shares: 2 reasons to buy, and 2 to sell 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

• 2 ASX 200 dividend heavyweights to buy and hold until you retire
• Could the VAS ETF outperform the BHP share price in 2023?
• I’d aim for $1 million, buying just 10 cheap ASX shares
• Bought $1,000 of CBA shares 10 years ago? Here’s how much dividend income you’ve received
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap

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 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/epXWMUf

At last, the S&P/ASX 200 Index (ASX: XJO) has turned a corner. Or at least, that’s how it’s heading so far this Tuesday. After falling for most of the past week, the ASX 200 is back in the green today. At present, the index is up a decent 0.24% to just under 7,200 points.

So let’s dive a little deeper into the share market moves today and check out the shares currently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Pilbara Minerals Ltd (ASX: PLS)

Our first ASX 200 share today is no stranger to this list. Lithium producer Pilbara Minerals has had a notable 12.83 million shares change hands as it currently stands. There’s been no major news or announcements out of Pilbara today that might be able to explain this volume.

As such, we can probably conclude that it is the volatility we have seen with the Pilbara share price this Tuesday that is responsible.

Pilbara had a strong start to the trading session this morning, rising as high as $4.63 a share soon after market open, after closing at $4.53 yesterday. But investors seem to have gotten some cold feet, with the PiIbara share price slipping by lunchtime. It is now firmly in red territory, having recorded a loss so far today of 0.22% down to $4.52 a share.

Telstra Group Ltd (ASX: TLS)

From PLS to TLS, ASX 200 telco Telstra is next up this Tuesday. This session has seen a sizeable 12.3 million Telstra shares phone home. We haven’t heard much from Telstra today either.

Saying that, the Telstra share price has been rising healthily over the current session. The telco’s shares are currently going for $4.02 each, up 0.63%.

Perhaps investors have taken note of broker Mogans’ $4.60 share price target that we covered yesterday. It’s this strong rise that is probably behind Telstra’s robust volumes.

Core Lithium Ltd (ASX: CXO)

Finally, we have ASX 200 lithium share Core Lithium for our last and most traded share of the day. This Tuesday has seen a hefty 16.77 million Core shares swap owners on the markets thus far.

We have a very similar situation to that of Pilbara Minerals going in here, it seems. This morning also saw Core shares jump higher, rising to a high of $1.20 each.

But over the day, investors have lost their lithium steam, and have now sent the company down to $1.15 a share, down 0.86% for the session. Again, it’s this bouncing around which looks like it has caused the high volumes we are witnessing.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday 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

• How I’d try to make $1 million by investing $5 a day in ASX 200 shares
• The Macquarie dividend is being divvied out today. Here’s the lowdown
• How big will the Pilbara Minerals dividend be in 2023?
• 5 things to watch on the ASX 200 on Tuesday
• Morgans names 2 of the best ASX 200 dividend shares to buy in December

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. 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/BDwan6i

How does forgoing a single cup of coffee sound? If you’re anything like me, you’ll rebuke the suggestion. But what if ditching the latte could make you a millionaire? Investing just $5 a day in S&P/ASX 200 Index (ASX: XJO) shares could prove a major wealth-building habit.

That’s because of the magic that is compounding. Here’s how it works.

How I would turn $5 a day into $1m using ASX 200 shares

Compounding, in essence, means multiplying gains by further gains. It means that a relatively small investment, when added to consistently, can turn into a meaningful nest egg.

Let’s take ASX 200 shares for example. Over the 10 years ended 2021, the ASX 200 returned an average of 9.3% annually. That’s including both dividends and capital gains.

Now, if you’re 20 years old – good for you. ­Let’s see what might happen if a 20-year-old invests $5 a day and recognises a 9.3% annual return:

Years gone by	Total deposits	Total investment value
0	$0	$0
5	$9,125	$10,988
10	$18,250	$28,127
15	$27,375	$54,864
20	$36,500	$96,570
25	$45,625	$161,629
30	$54,750	$263,115
35	$63,875	$421,424
40	$73,000	$668,373
45	$82,125	$1,053,593

And voila! By the time our figurative 20-year-old investor approaches the Australian retirement age, they’ve got a nest egg worth more than $1 million without doing anything more than putting $5 away each day.

Remembering, however, past returns are not indicative of future returns.

But 45 years may be a little longer than many Aussies’ investment thesis. If that were the case, I would either increase my targeted yield or amount I’m investing to meet my $1 million goal.

For instance, investing $15 a day – or $105 a week – could reap $1 million in 33 years. Investing $30 a day – or $210 a week – could see that target met in 26 years.

Meanwhile, if an investor was able to secure a 13% return, like the average annual return posted by ASX 200 bank Commonwealth Bank of Australia (ASX: CBA) over the last 10 years, $5 each day could become $1 million in a little over 35 years.

Of course, greater returns generally come with greater risks and, again, past returns don’t guarantee future returns.

Some other factors I would consider

Additionally, there’s likely a bit more to it than putting $5 a day aside to invest in ASX 200 shares.

A long-term investor might want to factor in inflation, thereby increasing the amount they invest by the inflation rate each year.

There’s also the issue of sticking out the hard times. It might be extremely tempting to pull cash from investments when the market is going down and it’s almost guaranteed that at least one bear market will occur in the coming decades.

But bailing on investments will likely impact the power of compounding. As investing great Charlie Munger is widely quoted as saying:

The first rule of compounding: Never interrupt in unnecessarily.

The post How I’d try to make $1 million by investing $5 a day in ASX 200 shares 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

• The Macquarie dividend is being divvied out today. Here’s the lowdown
• 5 things to watch on the ASX 200 on Tuesday
• Down 20% so far this year, are Wesfarmers shares now a no-brainer buy?
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price smashing the ASX 200 on Monday?

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

from The Motley Fool Australia https://ift.tt/6sfcPn5

The Origin Energy Ltd (ASX: ORG) share price is up 1.5% in afternoon trade on Tuesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy company closed yesterday trading for $7.19 and are currently trading for $7.30 apiece.

The rebound comes amid an overnight uptick in crude oil prices and despite the government’s proposed price cap on domestic gas and coal sales.

That proposal saw the Origin share price close down 7.8% yesterday.

Could the price cap jeopardise the $18 billion takeover?

On Friday, the Labor government announced its intention to implement a cap on gas prices in the domestic market at $12 per gigajoule. Thermal coal, used to generate electricity, would be capped at $125 per tonne for domestic sales under the plan.

The plan, supported by many domestic manufacturers, is opposed by both Aussie and international energy companies. Parliament will vote on the proposal this Thursday.

Chevron stated, “We are concerned by the proposals, which lacked consultation and are a significant departure from the open and market-based economic policies expected in Australia.”

Atop throwing up headwinds for the Origin share price, analysts have raised concerns that the price caps could derail or alter the indicative, conditional, and non-binding takeover proposal the company received from Brookfield Asset Management and MidOcean Energy.

The Origin share price soared 34.8% on 10 November after the company reported on the proposal to acquire it for $9.00 cash per share. That offer valued Origin at $18.4 billion on an enterprise value basis.

Origin’s board said it would recommend shareholders support the offer should it become binding. At the time, Brookfield Asset Management and MidOcean Energy were given due diligence access, a phase that is still underway.

RBC Capital Markets analyst Gordon Ramsay is among those who believe the newly announced price caps could impact the takeover.

According to Ramsay (courtesy of The Australian Financial Review):

We think this new legislation, the proposed new legislation, has potential to possibly trigger a material adverse change clause in the Brookfield and EIG $9-a-share bid for Origin Energy.

Under a price cap scenario, Origin would get lower pricing for its APLNG domestic gas sales volumes. This is mainly because of the short-term nature of its APLNG domestic gas supply contracts.

As for Brookfield Asset Management and MidOcean Energy, a spokesperson said, “The consortium notes the federal government’s announcement and will continue its evaluation throughout the due diligence process.”

Macquarie had a more bullish take on the impact of the price caps. The broker stated it did not expect the Origin share price to be materially impacted over the long term.

Origin share price snapshot

As you can see in the chart below, the Origin share price has enjoyed a strong year, up 44%.

That compares quite favourably to the 5% year-to-date loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post Origin share price lifts despite price cap casting shadow over $18 billion takeover 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 is the Origin Energy share price dumping 8% on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Bigtincan, Nanosonics, Origin, and Tyro shares are sinking today
• 3 ‘boring’ ASX shares with returns over 25% in 2022
• Why Air New Zealand, Chalice, Evolution, and Origin shares are rising today

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 recommended Macquarie Group. 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/GfBSihl

A dividend aristocrat is a very special thing. It is typically defined as a dividend share that has increased its annual dividend payouts to investors every year for at least 25 years.

Such a long and steady track record shows that a company is financially stable and strong enough to fork out such a large volume of cash consistently.

Over on the US markets, there are many dividend aristocrats. Some you might have heard of include Caterpillar Inc (NYSE: CAT), Exxon Mobil Corp (NYSE: XOM), and McDonald’s Corp (NYSE: MCD).

What’s more, is that the US markets also boast quite a few dividend kings. These fabled royals of the share market have a 50-year streak of annually raising their dividends. This list is a lot smaller but includes Coca-Cola Co (NYSE: KO), Colgate-Palmolive Company (NYSE: CL), and Altria Group Inc (NYSE: MO).

Does the ASX offer any dividend aristocrats?

Unfortunately, here on the ASX, we have no dividend aristocrats by the US definition. Let alone dividend kings.

But we do have a couple of ASX dividend heavyweights that come close. And they are two shares that I think any investor could comfortably buy and hold for the long term.

The first is Brickworks Limited (ASX: BKW). Brickworks is a building and construction materials company. But it also has a few other earning streams, including from its lucrative property business.

Brickworks has a strong dividend track record. It hasn’t raised its dividend for 25 consecutive years, so we can’t call it an official dividend aristocrat.

But what it does have is a 45-year history of not cutting its dividends. In other words, Brickworks has either maintained or increased its annual dividends every year since 1976. Definity heavyweight material.

Soul Patts: 3 years to go

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

Soul Patts is the closest thing to a dividend aristocrat the ASX has. No, Soul Patts hasn’t quite got to 25 years of annual dividend raises. But it has upped its annual dividend every year since 2000. That means it’s only three years away from becoming the ASX’s first dividend aristocrat.

Soul Patts is a rather interesting company. It functions more as a listed investment company (LIC) than a traditional ASX business, owning large chunks of other ASX shares in a massive investment portfolio.

This it runs for the benefit of its shareholders. Soul Patts’ largest holdings include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), and Brickworks itself.

But Soul Patts also owns a large and diversified portfolio of ASX 200 shares, thanks to the acquisition of ASX LIC Milton Corporation last year. These include your typical ASX holdings like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

Both of these would-be ASX dividend aristocrats have a long history of delivering meaningful returns to their shareholders. And both boast unrivalled dividend records on the ASX, if not yet long enough to qualify for the ‘dividend aristocrat’ tag.

As such, Soul Pattss and Brickworks are two ASX dividend heavyweights that I would happily buy and hold until retirement and beyond.

The post 2 ASX 200 dividend heavyweights to buy and hold until you retire 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 is the Fortescue share price tanking on Tuesday?
• Is now really the time to buy ASX 200 shares?
• Why I think this ASX 200 dividend share is a screaming buy right now
• Top ASX dividend shares to buy in December 2022
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Altria Group, Caterpillar, Coca-Cola, McDonald’s, and Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3auvCF5

1) The S&P/ASX 200 Index (ASX: XJO) is trading higher on Tuesday following the positive lead on Wall Street, where the S&P 500 rose 1.4%, with the tech-heavy Nasdaq also up a healthy 1.3%.

Tomorrow sees the US consumer price index reading which is expected to show inflation continues to fall, something that would see the Federal Reserve ‘only’ hike the interest rate 50 basis points higher on Wednesday.

A soft inflation print has equity watchers on high alert, given the S&P 500 roared 5.5% after November’s headline inflation figure came in lower than expected.

In a rather heroic extrapolation, analysis from market maker Optiver suggested the US equity benchmark could again rise as much as 5.5% on Tuesday (US time) should headline inflation come in 0.2 percentage points below estimates on a year-over-year basis, according to Bloomberg. 

The stock market is on high alert for a strong move either way, as evidenced by the VIX – a measure of volatility – jumping 9.5% higher in US trading on Monday despite equity markets also rising. The two gauges usually move in opposite directions.

2) The Tesla (NASDAQ: TSLA) share price bucked the trend in US trading on Monday, slumping another 6.3% to $167.82, its lowest close since August 2020. 

A favourite amongst retail investors, Tesla shares are now down 58% so far in 2022, contributing towards what JP Morgan estimates is a 38% loss for US retail traders this year. 

Gone is the “buy the dip” mantra, replaced by “sell before it’s too late.” Those that rode Tesla shares from around $35 to over $400 might be locking in profits, while those that jumped on late in the game might be booking tax losses, or even bailing out of the stock market altogether.

“The losses this year were unprecedented, especially for the younger generation of investors,” said Giacomo Pierantoni, the head of data at Vanda in Singapore on Bloomberg. Whether they keep ploughing money into the market — buying the dip, as they say — or lose faith in investing and give up altogether could help determine their ability to retire in the coming decades.

3) Regardless of the fate of Tesla stock – I have no position – I do hope the many retail investors who have been dealt a tough investing lesson these past 18 months don’t give up on the stock market, especially now that many popular COVID stocks have seen their share price cut in half, or more.

The stock market offers ordinary folk like you and me the opportunity to earn outsize returns, for very little effort. Invest regularly, ideally every month, into a low-cost index-tracking ETF like the Vanguard MSCI Index International Shares ETF (ASX: VGS) and, over time, you could return around 8% per annum, something that would roughly double your money every nine years.

All you need to do is resist any temptation to sell out during the inevitable periods of volatility, like we’ve been experiencing these past 18-odd months.

The above-mentioned data compiled by Vanda suggests US retail investors have collectively lost $US350 billion this year “as big bets on risky stocks and former high-fliers like Tesla Inc. backfired for the mom-and-pop set”.

If that’s you – and my growth-heavy portfolio has shed some serious blood this year – I urge you to stay the distance and make a lifelong commitment to investing in the stock market.

You may need to give up individual stock picking – you’ll get some winners but you’ll also need to handle the losses and your emotions when you are inevitably wrong – but you should be able to enjoy outsized returns by investing in one or more low-cost ETFs, like the one mentioned above.

4) As if to emphasise how difficult stock picking can be, especially in this current economic environment, take these two conflicting reports in the AFR today…

1. Tech stocks set for rebound after a ‘nightmare’ year, according to Wedbush Securities.

“We believe overall the tech sector will be up roughly 20 per cent in 2023 from current levels with big tech, software, and semis leading the charge despite the macro and Fed wild cards abound.”

2. Goldman warns of ‘a clear capitulation’ in equities.

“A shift from inflation to growth concerns (i.e. a transition from rates to growth volatility) may trigger a clear capitulation from investors into next year.”

So which is it to be?

I have no idea. As ever, as an optimist, and a lifelong stock market investor (albeit I started quite late, at the age of 24), I’m hoping 2023 will deliver a positive overall return, notwithstanding continued heightened volatility. 

My simple plan, one that should see me into retirement and well beyond…

Stay invested. Keep investing. Add regularly. Ignore near-term volatility. Live happily ever after. 

The post This simple investing plan could save the retirement plans of millions of retail investors 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

• One ASX ETF that could make you a stock market millionaire with little to no effort
• These ETFs allow ASX investors to buy thousands of global shares
• One ASX ETF that could turn $200 per month into $250,000 with next to no effort
• It took me years to realise I’m no investing genius like Warren Buffett
• Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?

Motley Fool contributor Bruce Jackson 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 Vanguard MSCI Index International Shares ETF. 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.

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

The Woodside Energy Group Ltd (ASX: WDS) share price is bouncing around today.

The Woodside share price climbed 1.28% in early trade this morning before pulling back. Woodside shares are currently up 0.17% and are trading at $35.16 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.23% at the time of writing.

Let’s take a look at what is going on at Woodside.

What’s happening?

Oil and gas producers are showing relatively little movement up or down on the ASX today. The Santos Ltd (ASX: STO) share price is 0.35% in the green today, while Beach Energy Ltd (ASX: BPT) shares are down 0.49%. The S&P/ASX 200 Energy Index (ASX: XEJ) is climbing 0.32% today.

The brent crude oil price is currently up 0.88% to US$78.68 a barrel, while WTI crude oil is up 0.87% to US$73.81 a barrel, according to Bloomberg. The natural gas price is climbing 0.87% to US$6.64 per MMBtu at last look.

Woodside has today expressed concerns about the Federal Government’s plan to “intervene” in the Australian gas market.

This follows Prime Minister Anthony Albanese announcing a plan to roll out price caps for domestic coal and gas sales. Federal Parliament is due to vote on the plan on Thursday.

In a release today, Woodside has called on the Federal Government to reconsider its “unprecedented intervention” and bring energy companies, retailers and other stakeholders together to create a solution.

Commenting on the gas market today, CEO Meg O’Neill said:

The policy will not address falling domestic gas supply and the increasingly critical role of gas in providing dispatchable power. These are the primary factors that are driving higher energy prices in the east coast gas market, rather than solely the impact of the tragic war in Ukraine.

We need to unlock gas supply now. For example, Woodside has been looking at options to increase supply, including through new LNG import terminals, exploration spending and further development on the east coast. Unfortunately, the proposed market intervention will make it very difficult for industry to economically invest to increase supply

Woodside share price snapshot

The Woodside share price has soared 58% in the last year.

Woodside has a market capitalisation of about $66.7 billion based on the current share price.

The post Woodside share price holds steady despite oil giant’s warning over gas intervention 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

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price smashing the ASX 200 on Monday?
• 3 ‘strong’ ASX 200 dividend shares for 2023 revealed: expert
• 5 things to watch on the ASX 200 on Monday

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/OY4z3CZ