The Macquarie Group Ltd (ASX: MQG) share price is doing rather well so far this Tuesday. At the time of writing, Macquarie shares have gained a healthy 1.61%, putting this ASX 200 bank up to $174.26 a share.

That’s even better than the S&P/ASX 200 Index (ASX: XJO), which has presently gained a milder 0.6% up to 7,224 points.

But that’s not the only piece of good news for Macquarie investors today. This Tuesday is also dividend payday for investors.

Macquarie’s interim dividend inbound

Yes, Macquarie is scheduled to fork out its interim dividend today. This payment covers the half-year ending 30 September 2022.

So investors are in line to receive a payment of $3 per share. This will be partially franked at 40%.

It isn’t quite as high as the previous final dividend of $3.50 per share that Macquarie paid out back in July. However, it’s a 10% hike over last year’s interim dividend of $2.72.

Any investor who owned Macquarie shares before the ex-dividend date of 8 November will be eligible to see this payment hit their bank accounts today. The dividend will be paid out in cash, unless an investor has opted to participate in the optional dividend reinvestment plan (DRP).

If they have done so, those investors will instead receive new Macquarie shares in lieu of cash. The reinvestment share price for the DRP has been set at $178.80.

So this latest dividend brings Macquarie’s total shareholder payouts over the past 12 months to $6.50 per share. At the current Macquarie share price of $173.37, this would give investors a trailing dividend yield of 3.75%.

Macquarie shares remain down by a nasty 18% this year to date. Over the past 12 months, the Macquarie share price has lost 14% of its value.

The post The Macquarie dividend is being divvied out today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• 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?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 recommended Macquarie 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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Last month Pilbara Minerals Ltd (ASX: PLS) revealed that it would be paying its inaugural dividend in 2023.

The lithium giant announced the establishment of a capital management framework in response to favourable market conditions and strong operating margins.

The company advised that the capital management framework is designed to establish an appropriate structure that prudently allocates available capital between investment into the existing business, sustainability commitments, strategic growth opportunities, as well as the provision of sustainable returns to shareholders.

The sum of the above is a target dividend payout ratio of 20% to 30% of free cash flow.

In light of the above, investors may be wondering just how big the Pilbara Minerals dividend will be in 2023.

Let’s take a look at what a couple of analysts are tipping the lithium miner to pay.

How big will the Pilbara Minerals dividend be in 2023?

According to a note out of Goldman Sachs, its analysts are expecting Pilbara Minerals to generate free cash flow of $1,663.7 million in FY 2023.

From this, the broker expects the company to pay a fully franked 17.4 cents per share dividend, which represents a 30% payout ratio.

Based on the current Pilbara Minerals share price of $4.59, this will mean a 3.8% dividend yield for investors.

Though, Goldman acknowledges that it may not stop there with its capital management, commenting: “We expect top end payouts still generate excess cash, funding further growth or possible cap. mgmt. extensions.”

Even bigger dividends

Analysts at Macquarie believe the Pilbara Minerals dividend could be significantly larger in 2023. In fact, the broker has pencilled in a dividend almost double what Goldman is forecasting at 34 cents per share.

If this forecast proves accurate, it will mean a very generous yield of 7.4% for investors.

Time will tell which broker makes the right call. But whatever happens, shareholders look set to receive a nice bonus next year.

The post How big will the Pilbara Minerals dividend be in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why are ASX 200 lithium shares taking another beating on Friday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Pilbara Minerals share price having such a shocker 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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is having a very strong day on Tuesday.

In morning trade, the regional bank’s shares are up 7% to $9.71.

Why is the Bendigo Bank share racing higher?

Investors have been bidding the Bendigo Bank share price higher today following the release of a trading update.

According to the release, for the five months ended 30 November, Bendigo and Adelaide Bank delivered a 22% increase in unaudited cash earnings after tax to $245 million.

This was driven by a 5.2% increase in lending balances, an 8.9% lift in deposit balances, and improvements in its net interest margin (NIM).

Bendigo and Adelaide Bank advised that its NIM post revenue share arrangements year to date was 1.85% with an exit NIM post revenue share arrangements of 2.01%.

The bank’s year to date NIM pre revenue share arrangements stood at 2.30%.

Another positive was the major improvement in its return on equity (ROE) metric, which year to date is up 110 basis points from FY 2022’s ROE to 8.82%.

Outlook

Also giving the Bendigo Bank share price a boost was management’s outlook commentary.

Thanks to the positive outlook for interest rates, the bank expects its NIM tailwinds to continue into the second half of FY 2023. Management notes that this reflects the strength of its deposit gathering network.

One slight but not unexpected negative is that operating expenses are expected to increase modestly on FY 2022’s levels, reflecting higher non-lending losses and a higher mix of investment spend being expensed.

The bank’s CEO, Marnie Baker, commented:

At our full year results in August, we outlined our intent to sharpen our focus and concentrate our efforts on better returns, and to date in the first half of FY23 we have delivered strong growth in cash earnings and an improved return on equity. Our NIM has continued to rise as we carefully manage our volume growth and margins, while continuing to prudently manage costs in an inflationary environment. We remain committed to our strategy and vision, and we are united in our purpose of feeding into the prosperity of the community and not off it.

The post Bendigo Bank share price surges 7% on earnings boost appeared first on The Motley Fool Australia.

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More reading

• Could the VAS ETF outperform the BHP share price in 2023?
• The 3 best-performing ASX 200 bank shares in November revealed

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 positions in and has recommended Bendigo And Adelaide Bank. 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 big year for AGL Energy Limited (ASX: AGL), culminating in the appointment of four divisive directors last month. But two of those directors appear to see value in the AGL share price, each snapping up thousands of the energy provider’s stock last week.

Fortunately, the AGL share price has far from suffered in 2022. It has gained 23% year to date to trade at $7.80 at the time of writing.

With two directors buying the S&P/ASX 200 Index (ASX: XJO) stock, should market watchers put AGL on their December wish list? Let’s take a look.

Insiders snap up AGL stock

AGL insiders have been on a buying streak in recent sessions. Two newly appointed directors have forked out a total of around $200,000 on their company’s shares.

Mike Cannon-Brookes’ nominations Kerry Schott and Christine Holman were behind the buying.

Schott indirectly snapped up 12,000 AGL shares for around $8.16 apiece on Friday. Meanwhile, Holman indirectly bought 13,000 shares for $8.09 apiece.

Unfortunately for the insiders, the AGL share price has since slumped amid broader market concerns. It hit a low of $7.44 in intraday trade yesterday.

Is now a good time to consider buying AGL shares?

That might suggest the S&P/ASX 200 Utilities Index (ASX: XUJ) staple is trading at a reasonable price. Insider buying is often considered a sign those in the know are confident a stock is a good investment.  

However, there are a number of factors I believe one should consider when looking at AGL shares.

The first is the Australian Government’s plan to temporarily cap gas at $12 per gigajoule. The move has been slammed by industry groups who claim it could harm the Aussie gas market, my Fool colleague Bernd reports.

Another factor potentially worth considering is the company’s plan to ditch coal-fired power. It recently brought forward its expected coal exit to 2036 and flagged $20 billion of investment is required to meet its goal.

Meanwhile, the company tips its earnings to grow substantially in financial year 2023.

It’s predicting it will post between $1.25 billion and $1.45 billion of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) this fiscal year. That’s a potential $100 million year-on-year increase.

Whether higher earnings will translate to greater dividends as the company looks to a greener future is unclear, as The Motley Fool Australia’s Tristan recently outlined.

Turning to brokers, both Morgans and Credit Suisse were bullish on AGL shares back in October. They slapped the stock with respective price targets of $8.81 and $8.20.

Meanwhile, Macquarie recently turned to defensive sectors such as utilities amid concerns a market contraction in the new year could hamper companies with more volatile earnings, the Australian Financial Review reports.

The post 2 directors have been buying up AGL shares. Should you? appeared first on The Motley Fool Australia.

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More reading

• Why is the AGL share price tumbling on Monday?
• Fortescue share price jumps amid Twiggy’s $4b renewables takeover
• Buying AGL shares for the dividends? Read this first
• How did the AGL share price outperform the ASX 200 by 11% in November?
• Are AGL shares a good investment right now?

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 recommended Macquarie 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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It has been a very disappointing year for the Betashares Nasdaq 100 ETF (ASX: NDQ).

This highly popular exchange-traded fund (ETF) has been hammered this year after a tough period for the 100 shares it holds.

As you can see below, the Betashares Nasdaq 100 ETF has lost 27% of its value since the start of the year.

Why has the NDQ ETF been hammered?

The Betashares Nasdaq 100 ETF has been sold off this year for a few reasons.

As mentioned above, the fund’s underlying holdings have been hit hard this year and this has weighed heavily on the ETF. After all, the ETF provides investors with exposure to these shares, so if they collectively fall, then the ETF will do likewise.

These shares have tumbled lower this year due to rising interest rates to combat inflation, economic growth concerns, and a rotation out of growth stocks.

With respect to rising interest rates, these have a negative correlation with price-to-earnings multiples. When interest rates rise, multiples reduce, and vice versa when they fall.

That’s because if an investor can, for example, earn 4% risk-free on a term deposit, they will require a much greater potential return from an asset that carries risk. Unfortunately, the only way that this is possible is if the share is trading on a lower multiple and, therefore, offers a more compelling risk/reward.

If you then throw in concerns over the global economy, the risk increases and the multiples that investors are prepared to buy shares at lower accordingly.

Will 2023 be different?

While there is still a chance the Betashares Nasdaq 100 ETF could fall further before rebounding, I believe the market has now fully priced in future interest rate increases and economic growth concerns.

In light of this, I think now could be one of the best buying opportunities for investors in years.

Key constituents of the Betashares Nasdaq 100 ETF such as Alphabet (Google), Amazon, Apple, Microsoft, and Tesla are down materially this year, but their long-term outlooks remain as positive as ever.

When interest rates and inflation finally settle, I expect investors to flood back in and drive their beaten-down share prices higher, lifting the Betashares Nasdaq 100 ETF along with them.

The post Down 27% this year, is the Betashares Nasdaq 100 ETF (NDQ) a buy before 2023? appeared first on The Motley Fool Australia.

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More reading

• Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?
• 3 fantastic ETFs for ASX investors to buy in December
• 3 ASX shares to buy for the end-of-year tech comeback: expert
• 3 top ETFs for ASX investors to buy and hold for a decade
• 2 ASX growth shares I reckon are buys right now

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon.com, and Apple. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is off to a strong start on Tuesday, up 1.7%.

ANZ shares closed yesterday trading for $23.54 and are currently trading for $23.93 apiece.

This comes as the Australian Competition & Consumer Commission (ACCC) announced that it has begun its formal consideration of ANZ’s proposed acquisition of Suncorp Bank. That’s the banking segment of Suncorp Group Ltd (ASX: SUN).

The Suncorp share price is up 0.6% at the time of writing.

What’s happening with the acquisition of Suncorp Bank?

The ANZ share price enjoyed a sharp lift after the banking giant initially announced its intentions to buy Suncorp Bank back on 18 July for the tidy sum of $4.9 billion.

But as Suncorp noted in a release after market close last night, the acquisition remains subject to a number of regulatory and government approvals. The merger authorisation from the ACCC would be the first step in the approval process.

The ACCC reported it had received that merger authorisation application from ANZ on Friday, 2 December.

“Now that we have received the application, we are able to commence the formal process of considering the merger authorisation application, and will be seeking submissions from interested parties,” ACCC deputy chair Mick Keogh said.

According to the ACCC:       

The test for merger authorisation is that the ACCC must be satisfied that either the transaction will not be likely to substantially lessen competition, or that the public benefits outweigh the public detriments.

Should the ACCC greenlight the proposal, it could offer some additional tailwinds for the ANZ share price.

Commenting on the progress, Suncorp CEO Steve Johnston said:

The application to the ACCC includes supporting statements from Suncorp reinforcing our view that the sale will benefit our customers, people, shareholders, and the state of Queensland.

The sale of Suncorp Bank will result in a dedicated Trans-Tasman insurance company at a time when the value of insurance has never been greater, and the need for continued investment in a vibrant private insurance sector never more important to meet the changing needs of customers, communities and our broader economies.

The ACCC is expected to announce its decision on 12 June 2023.

“Suncorp still anticipates completion in the second half of calendar 2023, based on the published timeline and subject to regulatory approvals,” Johnston said.

ANZ share price snapshot

The ANZ share price has struggled over the past 12 months, down 12%. That trails the 2% full-year loss posted by the S&P/ASX 200 Index (ASX: XJO).

As you can see in the chart below, ANZ shares have enjoyed a much stronger run over the last six months, gaining 10%.

The post Why is the ANZ share price marching higher on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names 3 ‘favoured’ ASX shares to buy in 2023
• Could this help ANZ close the gap on its ASX 200 competitors?
• Could the VAS ETF outperform the BHP share price in 2023?
• I’d buy 6 shares a week of this ASX stock for $1800 a year in passive income
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield

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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S&P/ASX 200 Index (ASX: XJO) shares have seen much volatility in 2022. The index hit low points in both June and September as investors came to terms with the level of inflation and feared how high interest rates might go.

But, the ASX 200 has been recovering since those lows, which we can see with the return of the exchange-traded fund (ETF) iShares Core S&P/ASX 200 ETF (ASX: IOZ).

With the ASX 200 only down by 5% in the year to date, does it make sense to buy now?

ETF investing

If investors are just buying the ASX 200 as a whole, with an ETF like the iShares Core S&P/ASX 200 ETF, BetaShares Australia 200 ETF (ASX: A200), or even the Vanguard Australian Shares Index ETF (ASX: VAS) which tracks the S&P/ASX 300 Index (ASX: XKO), then I think investors could just use a regular investment plan.

An index doesn’t usually change in price as much as individual shares, and it’s very hard to say how an index is going to perform in the short term, or if it’s good value (unless it’s down heavily). Plus, with the ASX relatively highly weighted to ASX resource shares, it’s even more unpredictable.

If I were investing in an ETF, I’d just put a regular amount – say $1,000 a month or $3,000 a quarter – into the ETF and not worry about ‘timing’ the market.

Buying individual ASX 200 shares

I think it’s easier to evaluate an individual business than the whole market, so we can be a bit pickier if looking at specific names like BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), or Woodside Energy Group Ltd (ASX: WDS).

I’d be happier to buy resource shares when sentiment about the commodity is low.

For example, the iron ore price and BHP share price were substantially lower a few months ago, so the resource giant was more compelling compared to now.

I’m not going to run through my thoughts on 200 different businesses, but I will say that I generally think the market has been too pessimistic about retailers on a three-year view.

I have just written an article outlining my positive views on Brickworks Limited (ASX: BKW) and also pointed out that some ASX tech shares could be beaten-up opportunities because they are still growing at a solid pace. Accordingly, I named the ASX 200 tech share Xero Limited (ASX: XRO) as an idea.

Foolish takeaway

Volatility can be a great time to pick up some long-term growth businesses at cheaper prices, which can go a long way to help us outperform the market over time. But, there may well be some more dips in the coming months, particularly if inflation stays elevated for longer than expected.

The post Is now really the time to buy ASX 200 shares? appeared first on The Motley Fool Australia.

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More reading

• Why I think this ASX 200 dividend share is a screaming buy right now
• 3 incredible ASX tech stocks down over 50% to buy before the next bull market
• Top ASX dividend shares to buy in December 2022
• 5 things to watch on the ASX 200 on Tuesday
• Is Xero a ‘safe’ ASX share?

Motley Fool contributor Tristan Harrison has positions in Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Xero. The Motley Fool Australia has positions in and has recommended Brickworks, Wesfarmers, and Xero. 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 Zip Co Ltd (ASX: ZIP) share price is under pressure on Tuesday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 8% to 65.5 cents.

This latest decline means the Zip share price is now 85% in 2022.

Why is the Zip share price falling?

Investors have been selling down the Zip share price today after the company announced a surprise capital raising.

According to the release, Zip has raised $13.6 million from institutional investors at a 13.2% discount of 62 cents per new share. The proceeds will be used to fund the conversion of some of its notes earlier than planned.

Zip’s co-founder and COO, Peter Gray, explained:

In recent months, Existing Noteholders have contacted the Company interested in selling back a portion of their holdings at prices that may be attractive for Zip. As a result, we are pleased to launch this liability management exercise. This initiative will proactively manage our debt maturities by retiring a portion of our liabilities at a fraction of face value, as well as offering Existing Noteholders a liquidity opportunity. If completed, the transaction is expected to be cash neutral for the Company and accretive to Zip shareholders.

Trading update

Failing to stop the Zip share price from falling today was the release of a trading update.

According to the update, the company is performing in line with expectations in the current financial year and continues to expect to deliver positive cash EBTDA during the first half of FY 2024. It also doesn’t expect to need to raise capital before then.

Management commented:

Zip reaffirms the comments provided to the market at its Annual General Meeting on 3 November 2022. The Company is on track to deliver positive cash EBTDA as a group in the first half of FY24. The Company continues to make progress with its rest of world strategic review, which it expects to deliver cash inflows or a neutralising of cash burn in each of its non core markets during the second half of FY23. T

he quarter to date has delivered business performance and cashflows in line with seasonal trends and expectations. Zip remains confident it has sufficient cash and liquidity to support the Company through to positive cash EBTDA in the first half of FY24.

The post Why is the Zip share price sinking 8% 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
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• The Zip share price has halved since late July. What went so wrong?
• Why did the Zip share price surge 21% in November?
• Could increased BNPL regulation be a positive for Zip shares?

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 Zip Co. 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) dividend share section of the market has plenty of potential names to choose from. But there’s one particular ASX 200 dividend share that I think looks like an exceptional long-term buy at the moment: Brickworks Limited (ASX: BKW).

From the surface, it may seem like a building products business that works in a fairly cyclical industry with relatively low-profit margins.

On that side of things, Brickworks is fairly impressive. It’s the leading brickmaker in Australia and the north east of the US. Brickworks also has a number of other building products like roofing, masonry and stone, specialised building systems, timber battens and cement.

But, I don’t think it’s just an interesting cyclical construction play at this uncertain moment in time. There are a number of growth areas within the business that makes me think Brickworks shares are a top pick.

UK expansion

The existing Brickworks Australian building products business is quality but doesn’t seem to have exciting growth potential.

I like the potential for the US segment – it’s a huge market and Brickworks has plenty of room to expand there.

For me, a new, compelling side to the business is that it recently announced a supply agreement with Brickability, a leading building products company in the UK, for the sale of bricks into the UK market. It called this a “significant” milestone.

Management called this an “attractive expansion opportunity” with bricks having an 85% share in external walling in housing. Around 10% to 20% of the UK supply is sourced from imports. Brickworks plans to initially supply this market from its plants in the US. It’s investigating the feasibility of additional supply from Australian plants.

The 10-year supply agreement includes a minimum purchase quantity of 10 million bricks per year and it hopes to “build on this over time”.

Industrial trust

Brickworks has been selling excess land into a joint venture industrial trust that it owns along with Goodman Group (ASX: GMG). It has blue-chip tenants for the buildings including Amazon.com, Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), DHL and Telstra Group Ltd (ASX: TLS).

The ASX 200 dividend share notes there is strong demand for increasingly sophisticated developments, with features at the properties like robotics, automation and multi-storey warehousing. This is helping rental growth and improving the value of the properties.

Completing buildings increases the value of the industrial trust. Brickworks continues to identify land to sell into the trust in the coming years, to support “continued long-term growth.”

At the end of FY22, Brickworks had a total of around $1.8 billion across two joint venture property trusts.

Manufacturing trust and other land

It recently announced the launch of a new property trust with Goodman Group, which has a portfolio of 15 of its Australian manufacturing plants. Some of Brickworks’ land isn’t shown at the true market value on its balance sheet, but the land sales into the property trusts enable the company to demonstrate the true value to investors (and receive a lot of cash).

Brickworks owns 50.1% of this trust.

More of Brickworks’ manufacturing plants could be sold into the manufacturing trust over time.

The company also has a 100% interest in over 5,000 hectares of operational and surplus land across Australia and North America. For example, four specific land zones (which don’t account for all of the 5,000 hectares) are worth $0.8 billion ‘as is’ and have a “rezoned” value of $1.3 billion.

It’s exploring with Goodman the idea of developing the industrial-zoned 76 hectares of land around its mid-Atlantic brick plant in Pennsylvania.

Investments

The biggest contributor to the underlying value of Brickworks shares is the 26.1% holding of investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Soul Pattinson has a diversified portfolio across a range of industries including resources, telecommunications, financial services, agriculture and so on.

This investment, which is itself an ASX 200 dividend share, has been providing Brickworks with a growing dividend and stability.

The 94.3 million Soul Pattinson shares that Brickworks currently owns are currently worth around $2.6 billion.

Brickworks is also a substantial shareholder of robot bricklaying business FBR Ltd (ASX: FBR). It will be interesting to see how that investment plays out over time.

Strong Brickworks dividend record

Brickworks hasn’t cut its dividend since 1976 and it has grown its dividend in consecutive years for almost a decade.

In FY22 it grew its final dividend by 3% to 63 cents per share. After a 10% fall in the Brickworks share price since the end of March 2022, it now has a grossed-up dividend yield of 4.1%.

Brickworks can essentially fund its dividend from the dividend income from Soul Pattinson and the rental profit from the two trusts. Considering the Brickworks share price is at a substantial discount to the underlying value of its assets, I think that the ASX 200 dividend share is an attractive long-term buy for income.

The post Why I think this ASX 200 dividend share is a screaming buy right now appeared first on The Motley Fool Australia.

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More reading

• One ASX 200 share I’m buying for passive income before 2022 is over
• Beat the All Ordinaries with this unstoppable ASX dividend share
• 3 passive income ASX 200 dividend shares that can help make you richer
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• 5 ASX 200 dividend shares to build your portfolio around

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Brickworks, and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks, Coles Group, Telstra Group, and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended Amazon.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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Research analysts at Ord Minnett are tipping one ASX mining share to have a potential 75% upside.

The AIC Mines Ltd (ASX: A1M) share price has been highlighted in a broker report, published on the ASX equity research website. The AIC Mines share price rose 1.11% on Monday to close at 45.5 cents.

Let’s take a look at this ASX mining share in more detail

Target price of 80 cents

Ord Minnett has placed a speculative buy rating on the AIC Mines share price with an 80 cent price target. This implies an upside of 75.8% on Monday’s closing price.

Analysts highlighted AIC Mines’ takeover of Demetallica Pty Ltd (ASX: DRM). In November, AIC Mines and Demetallica advised the market they had agreed to combine. This would see AIC’s Eloise mine and processing facility combine with Demetallica’s Jericho copper deposit.

AIC Mines advised in December it has now acquired an interest in more than 90% of Demetallica shares and is now at the compulsory acquisition stage.

Commenting on the outlook for AIC Mines, Ord Minnett analysts said they have now included the DRM acquisition in their base case model. Analysts said:

Whilst there is dilution to our near-term earnings (FY23/24 ~20%), our NAV increases ~A$59m (+A$0.05/sh – diluted) improved FY25+ metrics (production / opex) and a higher exploration figure.

Furthermore, the acquisition increases A1M’s prominence in terms of scale, liquidity, mine life and risk profile – which should place it on the radar for more investors.

We increase our Target Price to A$0.80/sh (+7%) and retain our positive view.

Ord Minnett is tipping AIC Mines to achieve earnings before interest, tax, depreciation and amortisation (EBITDA) of $50.4 million in FY23, up from $37.6 million in FY22.

AIC Mines share price snapshot

AIC Mines shares have fallen 3% in the last year and 13% year to date.

This ASX mining share has a market capitalisation of about $175 million based on the current share price.

The post Buy this ASX mining share with 75% upside: broker appeared first on The Motley Fool Australia.

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More reading

• 3 small-cap ASX shares with over 30% upside: brokers

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

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