When it comes to dividend-paying ASX shares, chances are one’s mind doesn’t immediately spring to the tech sector. There are many sectors on the ASX renowned for their hefty dividend payments. ASX bank shares? Of course. Resources? Definitely. But ASX tech shares? Not so much.

The S&P/ASX 200 Index (ASX: XJO) has many famous names in its tech sector. But few are famous for paying dividends. This is not unique to the ASX. Some of the largest tech companies in the world don’t pay dividends, despite some having mountains of cash on their balance sheet.

Giants like Amazon.com Inc (NASDAQ: AMZN), Meta Platforms Inc (NASDAQ: META) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) have never paid a dividend, despite all being valued at over US$1 trillion at various points in time.

But that doesn’t mean the ASX has no dividend-paying tech shares. So let’s embark on a mission to find the highest-yielding tech share on the ASX today.

So yes, plenty of ASX tech shares have never paid out a dividend. This includes Xero Limited (ASX: XRO), Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: SQ2). Block’s Afterpay didn’t fund any dividends when it was an ASX share either.

But plenty of others do. Some ASX tech shares that currently pay dividends include Altium Limited (ASX: ALU), Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC).

Dicker Data dividend dominates the ASX tech sector

But these companies are not even close to being the highest-yielding ASX tech dividend share. That honour probably goes to Dicker Data Ltd (ASX: DDR).

Dicker Data is a company that provides a range of hardware, software and cloud-based technology services. It is probably best known for its hardware, which includes selling data storage, servers, networking equipment and more.

This company has spent the past few years cultivating what is now a fairly impressive dividend record. Dicker Data has been paying dividends consistently for over a decade now.

What’s more, it has managed to deliver a dividend pay rise every single year since 2012. That includes through the COVID-ravaged year of 2020.

In 2011, the company paid out a total of 9 cents per share in dividends. But this year, Dicker Data has doled out a total of 26 cents per share in dividends, all fully franked.

That gives this company a dividend yield of 4.87% at the market close share price on Friday, or 6.96% grossed-up with the full franking.

That is a decent dividend yield by any ASX standards, even coming in above what Commonwealth Bank of Australia (ASX: CBA) is offering right now. And compared to other ASX tech shares, it is certainly a sector leader.

The post Here’s the ASX tech share with the highest dividend yield right now appeared first on The Motley Fool Australia.

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• Analysts say these ASX dividend shares are buys now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Appen Ltd, Block, Inc., Dicker Data Limited, Meta Platforms, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., Dicker Data Limited, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. 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’m a big advocate of buy and hold investing and believe it is the best way for investors to grow their wealth.

In light of this, to demonstrate how successful it can be, I occasionally like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth now.

This time around I have picked out the two ASX shares that are listed below:

Breville Group Ltd (ASX: BRG)

It may not be an exciting tech share, but this appliance manufacturer has got its shareholders very excited over the last decade with some big returns. This has been driven by Breville’s consistently solid sales and earnings growth, which has been underpinned by the company’s ongoing investment into research and development, some high quality acquisitions, and its ongoing global expansion.

Over the last decade, Breville’s shares have thoroughly beaten the market with an average total return of 16.1% per annum. This would have turned a $20,000 investment into a sizable $89,000 today.

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel specialist has been a great place to invest over the last decade. During this time, Corporate Travel Management has gone from being a small cap flying largely under the radar into one of the leaders in the industry.

This has led to significant revenue and earnings growth, which has driven exceptionally strong returns for its lucky shareholders. And that’s despite the fact that its shares are trading nowhere near their pre-COVID highs. Since this time in 2012, Corporate Travel Management’s shares have generated an average total return of 23.4% per annum. This would have turned a $20,000 investment into a whopping $164,000 today.

The post $20,000 invested in these ASX shares 10 years ago is worth how much? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Here’s why brokers are bullish on these ASX growth shares
• What’s driving ASX 200 consumer shares on Tuesday?
• 5 ASX All Ords shares going ex-dividend on Wednesday
• 2 of the best ASX shares to buy now according to Morgans

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 recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Electric-vehicle (EV) pioneer Tesla, Inc. (NASDAQ: TSLA) is exploring the feasibility of developing a battery-grade lithium hydroxide refinery on the Gulf Coast of Texas or Louisiana, according to its late-August filing of an application seeking a property tax break in Texas.

Like other EV makers, Tesla’s supply chain is dependent on lithium — which has soared in price due to tight supply — because it’s used to produce the lithium-ion batteries that power EVs. Tesla also uses these batteries in its energy-storage products.

Here’s what investors should know.

Tesla’s proposed Texas lithium refining plant and timeline

In its application for a property tax break in Texas, here’s how Tesla described its proposed operation in Robstown, Nueces County, which is about 16 miles west of Corpus Christi (see map below):

Tesla, Inc. is evaluating the possible development of a battery-grade lithium hydroxide refining facility, the first of its kind in North America, as well as facilities to support other types of battery materials processing, refining, and manufacturing and ancillary manufacturing operations in support of Tesla’s sustainable product line.

Tesla will process raw ore material into a usable state for battery production. The process Tesla will use is innovative and designed to consume less hazardous reagents and create usable byproducts compared to the conventional process.

The final product, battery-grade lithium hydroxide, will be packaged and shipped by truck and rail to various Tesla battery manufacturing sites supporting the necessary supply chain for large-scale and electric vehicle batteries.

Tesla estimates the project will create 162 jobs. If it chooses the Robstown site, the company said construction could begin as early as the fourth quarter of 2022, and that it expects commercial operations would start by the fourth quarter of 2024.

A Louisiana site is in the running, too 

As is typical for large companies that are considering building a significant new facility, Tesla is shopping around for tax-break deals from U.S. states. 

In its Texas filing, it said the lithium “project could be located anywhere with access to the Gulf Coast shipping channel” and that it’s also evaluating a site in Louisiana.

The company specified that the final product — battery-grade lithium hydroxide — will be “shipped by truck and rail to various Tesla battery manufacturing sites,” so we can deduce that the Gulf shipping channel is likely needed for incoming raw materials. 

Currently, in the United States, Tesla manufactures its batteries for its EVs and energy-storage products at its Gigafactory Nevada, which it operates with partner Panasonic. The company also has plans to produce batteries at its new Gigafactory Texas, which is located just outside the Austin city limits. 

We can’t know which state will provide Tesla with the most attractive tax breaks. But all other things being roughly equal, Texas would seem the frontrunner since the company already has operations in the Lone Star State. Last year, Tesla relocated its global headquarters from California to the Austin area, and it’s currently ramping up EV production at Gigafactory Texas.

Tesla’s possible lithium refinery site in Robstown is less than 20 miles from the Port of Corpus Christi and less than 200 miles by vehicle from its existing Austin area factory. Any site in Louisiana that’s in close proximity to one of its seaports would be notably further away from Tesla’s current Texas operations, per my review using worldportsource.com. So unless the Pelican State’s economic package majorly dwarfs whatever Texas offers, it seems highly unlikely it will be home to a Tesla lithium refinery.

Tesla will also surely be evaluating weather factors, as hurricanes are not infrequent along the U.S. Gulf Coast.

Tesla’s potential lithium production plans aren’t a surprise

In the fall of 2020 at Tesla’s “Battery Day,” CEO Elon Musk announced the company had obtained the rights to 10,000 acres in Nevada where it planned to extract lithium from clay deposits using a proprietary process it had developed.

Tesla hasn’t disclosed what lithium feedstock it aims to use in the battery-grade lithium hydroxide refinery that it’s considering constructing. It’s possible the company has developed a clay extraction technique, though it doesn’t seem likely. No company is producing lithium from clay at commercial scale. (Lithium Americas is close to the commercialization stage at its lithium clay project in Nevada, but that project keeps being delayed by lawsuits from environmentalists and Native Americans.)

A more robust supply chain

Tesla having its own source of battery-grade lithium would be a positive for it and its investors. This would give it better control over its supply chain and lessen the probability that its business would be hurt by a global shortage of this critical battery material. Along with the availability benefit, it’s also possible that Tesla could reap a cost benefit, at least eventually. 

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

The post Tesla is exploring building a lithium refining plant in Texas appeared first on The Motley Fool Australia.

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• Better buy: Tesla stock or a Nasdaq index fund?
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Beth McKenna 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 Tesla. 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.

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

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The Ethereum (CRYPTO: ETH) price didn’t exactly take off following yesterday’s completion of the long-awaited Merge.

The Merge, if you’re unfamiliar, has transitioned the Ethereum network away from a proof of work (PoW) protocol to a proof of stake (PoS) system.

The new PoS protocol sees validators stake some of their Ether holdings to earn rewards in return for verifying transactions and securing the blockchain. One of the most immediate advantages is the huge reduction in energy used, estimated at more than 99%, with far fewer computers required.

Many crypto investors also hope the Merge will light a fire under the Ethereum price.

As we mentioned, that didn’t happen yesterday. Ether tumbled more than 8% during Friday trading. Though it should be noted that most cryptos and risk assets came under selling pressure amid renewed fears of sharp rate hikes from the US Fed.

But in the months, and indeed years, ahead, the Merge looks like it might offer some strong tailwinds for the Ethereum price.

3 reasons the Merge could boost the Ethereum price longer-term

Addressing some of the bullish assessments around the Merge and its impact on Ethereum, Simon Peters, crypto market analyst at eToro said the Merge could potentially boost the Ethereum price for three reasons.

“Firstly, the issuance – the amount of new Ether entering circulation ­– will drop significantly, with estimates currently around a 90% fall,” he said.

“Secondly, a minimum fee must be paid to the network to execute transactions,” Peters said. “This fee will get ‘burned’ during the process, removing it from circulation. The burning of ETH from circulation will leave less of the crypto asset circulating in the system over time.”

As for the third aspect of the Merge that could boost the Ethereum price over time, Peters added, “Holders can begin staking – a form of passive reward for helping to secure the network. Again, this will take ETH out of the circulating supply.”

According to Peters:

In short, ETH could go deflationary. Less supply and more demand for ETH could cause the Ethereum price to rise post Merge as the scarcity begins to weigh on the token’s circulation, akin to when central banks raise interest rates and slow processes such as quantitative easing.

Of course, there are no guarantees in life. And generally, you’ll find two (or more) sides to every story.

Institutional investor skittishness

As cryptos were rocketing to fresh record highs in 2021, institutional investors began to take much more notice. More recently that interest has waned.

And it looks like the Merge may have caused some added angst amongst institutional investors.

“CoinShares recently released its weekly fund flows report, which showed a net outflow of ETH among institutional investors – albeit relatively small,” Peters said. “This could signal nervousness about technical issues that could arise with the Merge.”

Peters concluded:

Whether the Ethereum price will rise or fall on completion of the Merge, only time will tell. What is important though from a network development point of view, a significant milestone, years in the making, will finally be achieved.

Happy investing!

The post 3 reasons the Ethereum price could gain in the post-Merge months appeared first on The Motley Fool Australia.

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• As stocks swoon, can crypto get its mojo back?

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 positions in and has recommended Ethereum. The Motley Fool Australia has positions in and has recommended Ethereum. 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 is fair to say many ASX share portfolios would be in the red this year.

Unless you were fortunate enough to plough your money into mining shares at the start of the year, your wealth-on-paper likely will have reduced in 2022.

Some stocks, especially high growth ones, have shrunk to a mere shadow of what they used to be in those glory years of 2020 and 2021.

It’s all good and well for commentators to espouse holding for the long term, but if your investment has fallen 80% during this bear market then it now needs to become a 5-bagger for you to merely break even.

Are you confident that’s even possible as interest rates continue to climb? As rates get higher, there’s a greater chance that the economy will crash into a nasty “hard landing”.

Couldn’t that money be put to better use?

According to Marcus Today senior market analyst Henry Jennings, this is why selling is so much more difficult than buying ASX shares.

“It is one of the hardest things to do and one of the most neglected,” he said on the Marcus Today blog.

“It came up as a question at the course I do for the kids the other night with one of the mums. She had bought a stock that had tanked and wanted to know when to sell.”

‘The market is bigger than you are. Always was, always is’

Selling is hard enough as it is. But when it comes to ASX shares that have plunged beyond recognition, the decision is even more difficult.

“How do you cut a losing position that has gone so bad that you cannot even bear to look at it?” asked Jennings.

“What do you do? Do you just cut and move on? Do you bottom-drawer it? It could be a lottery ticket without an expiry date? Frequently not. Or do you average down?”

The most important action in this position is to take the emotion out of it, according to Jennings. Focus on the original reasons for investing in this company. Do those factors still ring true?

Sometimes the investment thesis still holds, and the market has simply miscalculated the company’s worth.

“It does not always value things properly — so maybe, just maybe, the investment case still adds up,” said Jennings.

“But don’t be stubborn and don’t be so chock full of hubris that you think you are right no matter what. The market is bigger than you are. Always was, always is.”

Have a bet each way

For ASX shares that have fallen devastatingly, Jennings suggests a compromise.

First, you set what he calls a “sift stop loss” for that stock. That’s the share price at which he evaluates “if all the reasons I bought it for still hold”.

At this point if Jennings can’t quite decide whether to cut or hold, he decides to sell some — not all — of his holding.

“It makes me feel that I am doing something and if it keeps going down then I can buy back more at lower levels and if Sod’s Law comes into play and it bounces then I still have some.”

This method works for Jennings, but he freely admits it doesn’t suit everyone.

“My risk appetite is probably greater than others. I screen watch all day every day.”

He points out that investors are often afraid to exit a position as if they’re breaking up with a partner.

But selling is not goodbye forever, and ASX shares have no memory of how you treated them in the past.

“If you need to clear your mind, you can always sell and get back in again at another time,” said Jennings.

“You are not barred for life from a stock.”

The post What to do with an ASX share so devastated you can’t even look: expert appeared first on The Motley Fool Australia.

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• 3 reasons the Ethereum price could gain in the post-Merge months
• Brokers say these ASX 200 dividend shares are buys now
• 3 things the world’s smartest investors do in every bear market
• 2 fantastic ASX 200 shares analysts say are buys
• These ASX critical minerals companies just received millions in government grants

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

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Investors looking for income options might want to check out the two ASX dividend shares listed below.

Both of these shares have just been tipped as buys with attractive forecast dividend yields. Here’s what brokers are saying about them:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that could be in the buy zone right now is insurance giant QBE.

The team at Morgans is very positive on the company. It recently retained its add rating with a $14.93 price target on its shares. The broker commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE.

As for dividends, Morgans is expecting a 41.7 cents per share dividend in FY 2022 and then a 76.8 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.05, this equates to yields of 3.5% and 6.4%, respectively

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that brokers rate as a buy is banking giant Westpac.

According to a note out of Goldman Sachs, its analysts have a buy rating and $26.55 price target on its shares.

Its analysts believe that Westpac provides investors with strong leverage to rising rates. They commented:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise.

In respect to dividends, Goldman is forecasting fully franked dividends per share of $1.23 in FY 2022 and $1.37 in FY 2023. Based on the current Westpac share price of $21.53, this will mean yields of 5.7% and 6.35%, respectively, over the next two years.

The post Brokers say these ASX 200 dividend shares are buys now appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why is the Westpac share price outperforming the ASX 200 today?
• Could Westpac shares soon be saying bon voyage to money managing?
• Here are 2 ASX dividend shares experts say are buys
• Which ASX 200 bank share will win the great tech battle?

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

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

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

It’s official: The stock market entered bear market territory a few months ago. And with the U.S. Federal Reserve poised to continue aggressively hiking interest in a fight against inflation, it’s unclear when this bear market will end. 

At this point, it’s too late to do anything in preparation. Nevertheless, there are still things you can do right now to help your investments weather the storm. Here are three things smart investors do to shore up their portfolios.

1. Resist the urge to chase the best-returning asset classes

If you’re invested in stocks, there’s a darn good chance you’re sporting some hefty losses this year. You’d be in good company. The world’s wealthiest people are, too, and their net worth has plummeted as a result. Even Warren Buffett, who prefers boring and predictable businesses, has reported significant declines. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) revealed its stock portfolio lost over $63 billion during the second quarter of 2022 alone (a 21% decline)!

By and large, stocks aren’t a happy place during bear markets. Heck, even bonds haven’t done so hot, bucking the old wisdom that these are “safe” (bond values fall when interest rates rise, although you’ll get the principal value of the bond back if you hold it to maturity). But what has done well this year? Commodities (like agricultural products and mined materials), energy, and cold hard cash. We’ll get to cash in a moment, but as for the stuff that’s running higher this year, resist the urge to chase those returns.

That’s because commodities and energy tend to be cyclical in nature, not steady and consistent performers. Granted, if you think inflation will continue to run higher for a few years, investing some of your portfolio in top commodity and energy companies might not be a terrible idea. Nevertheless, when it comes to the commodities themselves, investing after they’ve already surged in value might simply be setting up your portfolio for yet another plunge. For example, oil prices are sharply down from their highs earlier this year. Something similar has happened in previous bear markets — a sharp increase in inflationary pressure can reverse course just as suddenly and unpredictably.

I’m not saying I expect oil to plunge further from here. However, the principle is this: Don’t chase the hottest trend of the moment! If you’re a long-term investor (you have at least a few years until retirement, or you’re already in retirement and need your portfolio to last you at least a decade or two), the best move is doing nothing at all, or making just small adjustments.

2. Sell those stocks that have been “swimming naked”

Speaking of small adjustments, one of the things bear markets do is expose companies in poor financial health. Again we tap the Oracle of Omaha for some help: Buffett has said, “You don’t find out who’s been swimming naked until the tide goes out.” The Fed is hiking interest rates and tightening the supply of cash, and this is the proverbial “tide going out” on easy money. Now that times are a bit harder, some businesses might not be in the strong position we once thought they held.  

But how do you tell who’s “swimming naked”? Falling revenue and profitability aren’t necessarily a red flag. Many of these businesses will be poised for a strong recovery. However, if falling sales and profits are paired with a weak balance sheet, that’s another story. Companies that have lots of debt and little to no cash, for example, could be in trouble. 

Be careful with this analysis, though. If a company is in serious financial condition, it’s likely the stock has already tanked. At this stage, businesses have options that might unlock value for you, the shareholder — they can raise more cash, or they can sell themselves to a competitor. So don’t be too hasty to sell. 

In particular, check a business’ recent statement of cash flows and calculate its free cash flow (operating income minus capital expenditures). Now compare that figure to how much cash and investments they have on their balance sheet. If a company is generating negative free cash flow at a rate that would deplete its coffers within a year or two, this company might be in dire straits. 

Nevertheless, if the situation looks particularly bad (not for the stock price, but for the business itself), it may just be time to cut your losses and reallocate those funds to an industry peer that is in better shape to recover once the bear market ends.

3. Make sure you have the cash you need for the next year or two

Here’s another reason you might sell a stock in your portfolio: You need cash within the next couple of years.

Now, don’t get me wrong: The last time you want to sell a stock is after the market has crashed. That’s why always maintaining a cash position — or other very liquid assets like bonds that will mature within a year or two or CDs at a bank — is especially important. This is true if you’re young and have many years until retirement (get that emergency fund started!) or if you’re already retired.

Nevertheless, if you find you might be needing a little more cash in the short term than you originally anticipated, raising some cash now could be a good idea. Bear markets can last longer than we expect. The average duration of a bear market is about 10 to 12 months, but that’s just the average. Sometimes they can last longer.  

Start with selling those businesses you’ve lost faith in. An important word of caution here, though, is to avoid selling high-quality businesses just because having cash in the bank feels good at the moment. Those high-quality businesses are the ones that will help your portfolio eventually recover.

Whatever you do, don’t panic

Bear markets are no fun. There can be some ugly days when the market falls by a steep percentage. It’s also common for some upward momentum to be undone by unforeseen economic setbacks. This leads to strong emotions. Whatever you do, don’t panic and act on those strong emotions. That can simply lay the groundwork for more pain and future regret.

Take courage, though. Bear markets don’t last forever, and the end of a bear market is often called in hindsight — after a robust recovery for the market and economy has already been made. Keep a level head, favor small adjustments over big and rash decisions, and stay focused on the long-term.

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

The post 3 things the world’s smartest investors do in every bear market appeared first on The Motley Fool Australia.

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Nicholas Rossolillo and his clients have positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Australian share market is home to a number of companies with the potential to grow at a strong rate in the future.

Two such shares that analysts rate highly are listed below. Here’s what you need to know about these ASX 200 shares:

Allkem Ltd (ASX: AKE)

The first ASX 200 share that is rated highly is lithium miner Allkem.

It is the owner of a collection of quality projects across several lithium types. These include Olaroz, Mt Cattlin, and the Sal de Vida brine project.

With lithium prices at sky high prices and looking likely to stay that way in the near term, Allkem appears well-placed to deliver strong earnings growth. Particularly given the end of older supply contracts at much lower prices and increasing production.

In respect to the latter, management is aiming to grow its production three-fold by 2026 and command a 10% share of global lithium production over the long term.

Bell Potter is a big fan of the company. It has a buy rating and $21.58 price target on its shares.

Altium Limited (ASX: ALU)

Another ASX 200 share to look at is Altium. It is a printed circuit board design software (PCB) provider.

PCBs are the boards you find in almost all electronic devices. They are integral to the operation of the device and come in all shapes and sizes. As a result, the design of them is an extremely complex process and requires specialist software.

Altium’s software is regarded as the best in the industry. A testament to this is its customer base, which includes the likes of NASA and Tesla.

Management is very confident on its future and is aiming to double its revenue to US$500 million by 2026 with stronger margins. This bodes well for its earnings growth over the coming years.

Jefferies is a fan of the company. Its analysts currently have a buy rating and $38.13 price target on its shares. 

The post 2 fantastic ASX 200 shares analysts say are buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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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Several ASX materials shares will receive $50 million in grants from the Australian Federal Government, according to an announcement this afternoon.

The release said the grants would help the government reach its net zero ambitions by 2050. They would also “bolster development across Northern Australia, generate new jobs and drive regional economic growth”.

Minister for Resources and Minister for North Australia Madeline King, made the following comments:

Australia has the potential to become a major global supplier of critical minerals and rare earths which will be essential to help Australia and the world transition to low-emissions technology and achieve net zero emissions by 2050.

The grants will accelerate early and mid-stage projects, driving new investment in our processing and manufacturing capabilities as we develop our critical minerals sector.

King said Australia’s vast reserves of critical minerals were “crucial” to the production of batteries and electric vehicles, as well medical equipment, defence, aerospace, automotive and agritech industries. She added:

These junior projects, should they be successful in scaling up to full production, will help diversify global critical minerals supply chains.

Which companies will receive grants?

A total of six companies will receive part of the $50 million in funding.

The companies include:

• Alpha HPA Ltd (ASX: A4N): $15.5 million for its “ultra-pure” aluminium chemical plant in Gladstone, Queensland
• Cobalt Blue Holdings Ltd (ASX: COB): $15 million for its Broken Hill Cobalt project in New South Wales.
• EQ Resources Ltd (ASX: EQR): $6 million for tungsten production and to restart production at its Mount Carbine site in Queensland
• Global Advanced Metals Pty Ltd: $4 million for its recovery plant in Western Australia
• Lava Blue: $5.24 million for developing modular re-processing technology
• Mineral Commodities Limited (ASX: MRC) $3.94 million to develop its integrated ore-to-battery anodes business

What will the grants produce?

Materials investors may well be hoping the grants will bring new life to the materials sector amid China’s fears of a slowdown in economic activity.

While ASX lithium shares are doing what they can to keep S&P/ASX 200 Materials Index (ASX: XMJ) above water, which is down 9.51% year to date, some other materials are falling far behind.

Iron ore has been hit especially hard due to China’s real estate crisis, and precious metals gold and silver are suffering from a stronger US dollar.

On the positive front, ASX graphite shares are emerging as an alternative to lithium, and copper’s outlook was recently upgraded for the long-term.

The post These ASX critical minerals companies just received millions in government grants appeared first on The Motley Fool Australia.

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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 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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ASX 200 gold shares had a tough end to the week amid the falling gold price.

Gold shares on the ASX include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

Let’s take a look at why today was a shocker for these ASX 200 gold shares.

Gold price tumbles

Evolution shares lost 5% today, while the Newcrest share price fell 2.75%. Meanwhile, the Northern Star Resources share price dropped 4.15%.

Newcrest, Evolution and Northern Star are all major gold producers.

The gold price dropped to the lowest level since April 2020 at US$1,659.47 overnight. The gold price has since recovered slightly to US$1,668.40 an ounce at the time of writing.

The gold price fell amid concerns the US Federal Reserve will raise rates sharply next week to fight inflation.

In comments cited by Reuters, Next Generation Research head Julius Baer said:

The gold market has clearly priced in a more aggressive US Federal Reserve ahead of next week’s meeting, reflecting the central bank’s determination to fight inflation.

Northern Star expects to deliver 1,560koz to 1,680koz (thousand ounces) of gold in FY23. Meanwhile, Newcrest is expecting to produce 2100 to 2,400 koz of gold in FY23. Evolution is planning to increase gold production in FY23 by 12.5% to about 720,000 ounces.

Share price snapshot

The Northern Star share price has slid 22% in the past year. Meanwhile, Evolution shares have dropped 48%, while Newcrest shares have fallen 32%.

For perspective, the S&P/ASX 200 Materials Index (ASX: SMJ) has fallen 3.51% in a year.

The post Why did ASX 200 gold shares have such a rough day? appeared first on The Motley Fool Australia.

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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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