Overnight Tuesday, the Dow Jones Industrial Average slumped nearly 1,300 points lower after US inflation came in higher than expected. It was the market’s worst day in more than two years.

The ASX 200 has fallen sharply in early Wednesday trade, with heavy losses sustained by the Fortescue Metals Group (ASX: FMG) share price, the Commonwealth Bank of Australia (ASX: CBA) share price, and the Pilbara Minerals (ASX: PLS) share price.

The US inflation print came in at 8.3%, up 0.1% from July, when markets had expected it to fall, largely on the back of lower gasoline prices.

The unexpectedly hot inflation print essentially locked in a 75 basis point increase next week when the US Federal Reserve next meets. According to Bloomberg, the odds for a 100 basis point rate hike jumped more than 20%, with hopes of a “Fed pivot” firmly dashed.

Goldman Sachs sees a more aggressive Federal Reserve and now predicts US interest rates to hit 4 – 4.25% by the end of the year. The current funds rate is 2.25 – 2.5%.

With inflation being the number one enemy, central banks have no option but to keep hiking interest rates until such time that it is back under control. And with US inflation running at over 8%, it’s a long way back to the target rate of 2%.

The risk is the sharpest increase in interest rates in many decades slams the US economy into recession, taking the stock market further down with it.

Jeffrey Gundlach, chief investment officer of DoubleLine Capital, is worried the Fed will go too far.

As reported on Bloomberg, Gundlach told CNBC he prefers the Fed hikes only 25 basis points next week because it hasn’t paused long enough to see what effect previous hikes have already had. He fears the Fed might oversteer the economy, potentially sending it into recession. 

Gundlach agrees with calls from others, including Scott Minerd from Guggenheim, that stocks will decline 20% by mid-October. 

If replicated here in Australia, it would see the ASX 200 crash all the way down to around 5,500, a level not seen since the COVID crash of March 2020.

The post Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control 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

• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Why this fund manager is not banking on CBA shares right now
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• Why did the Core Lithium share price leap another 6% on Tuesday?
• Fortescue’s Twiggy piles $120m into junior miner slated for ASX listing

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 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/IuFbhE6

The Coles Group Ltd (ASX: COL) share price is trading lower on Wednesday.

At the time of writing, the supermarket giant’s shares are down almost 3% to $16.83.

Why is the Coles share price falling?

There have been a couple of catalysts for the weakness in the Coles share price on Wednesday.

The first is broad market weakness following a shocking night of trade on Wall Street.

US stocks had their worst session in over two years after economic data revealed that inflation isn’t easing. This defied expectations and sparked fears that aggressive interest rate hikes will be required.

What else?

Also weighing on the Coles share price has been a broker note out of Goldman Sachs this morning.

According to the note, the broker has downgraded the company’s shares to a sell rating with a reduced price target of $15.60.

The broker made the move on the belief that Coles could lose market share due to being a laggard in respect to digital transformation. It also fears that the company’s margins could be pressured as it enters into a high investment cycle.

Goldman explained:

Downgrade COL from Neutral to Sell with new TP of A$15.60/sh, implying 9.5% share price downside due to laggard in digital transformation resulting in market share losses and entrance into high investment cycle for digital and supply chain pressuring margins over FY23/24. Our FY23-25e NPAT is cut by 2.4%-8.9% to reflect lower comp growth as higher digital transformation related opex. Our TP implies FY24 P/E of 20.0 vs historical average of 21.5.

The post Why is the Coles share price tumbling 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

• 5 things to watch on the ASX 200 on Wednesday
• Supermarket shakeup: Do Coles shares offer better dividends than Woolworths?
• Top ASX dividend shares to buy in September 2022
• Why is top broker Citi tipping 17% upside for the Coles share price?
• Are Coles dividends better than a savings term deposit?

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 COLESGROUP DEF SET. 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/FiNfUqz

The Altium Limited (ASX: ALU) share price is having a difficult day.

In early trade, the electronic design software company’s shares are down 7% to $35.50.

Why is the Altium share price dropping?

Investors have been selling down Altium’s shares for a couple of reasons this morning.

The first is a market selloff driven by significant weakness on Wall Street last night after US inflation failed to cool as some were expecting.

The tech-focused NASDAQ index was hit hardest and recorded a 5.2% decline. This has unfortunately rubbed off on the local tech sector today, with the S&P/ASX All Technology Index down 3.9% at the time of writing.

What else?

Also putting a bit of pressure on the Altium share price has been a broker note out of Bell Potter this morning.

Although the broker remains a big fan of the company, it decided to downgrade Altium’s shares to a hold rating with an improved price target of $40.00.

Bell Potter made the move on valuation grounds following a strong gain in recent weeks. It explained:

At our updated PT of $40.00 the expected excess return is <15% so we downgrade our recommendation to HOLD. We continue to be positive on the outlook for Altium but now see the stock as around fair value trading on an FY23 EV/EBITDA and PE ratio of 36x and 58x. We also see a lack of short term potential catalysts for the stock given Altium does not tend to make many announcements outside of results and we do not expect the company to upgrade its guidance at the AGM in November given it will still be relatively early in the financial year. In our view the key risk to our downgrade is the company makes an accretive and/or strategic acquisition of reasonable size which seems a possibility especially with the strong Balance Sheet.

The post Here’s why the Altium share price is crashing 7% lower 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

• Steady compounders: 3 ASX 200 shares that have delivered over a decade
• Down 15% this year, why I’m not selling out of this ASX 200 tech share
• Analysts name 3 ASX growth shares to buy next week
• Why analysts rate these ASX growth machines as buys
• Why did the Altium share price lag the ASX 200 today?

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 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.

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

The S&P/ASX 200 Index (ASX: XJO) is a sea of red on Wednesday morning.

In early trade, the benchmark index is down a very disappointing 2.6% to 6,829.5 points.

Why is the ASX 200 index being sold off?

Investors have been selling off ASX 200 shares on Wednesday following a shocking night of trade on Wall Street which saw the Dow Jones fall 3.9%, the S&P 500 drop 4.3%, and the Nasdaq sink a massive 5.2%.

This was the worst night of trade on Wall Street since June 2020 and was driven by panic selling from investors after economic data revealed that US inflation failed to cool during August.

Investors had been optimistic that inflation had peaked and interest rates would not need to increase as aggressively as feared. However, that has been thrown out of the window now, with the market bracing for higher rates.

The worst performers on Wall Street were tech stocks, with Meta and Nvidia falling particularly heavily.

Unsurprisingly, this has led to our own tech sector coming under significant pressure today. The likes of Life360 Inc (ASX: 360), Block Inc (ASX: SQ2), and Zip Co Ltd (ASX: ZIP) have all fallen materially this morning. This has led to the S&P/ASX All Technology Index dropping a sizeable 3.9%.

But it isn’t just the tech sector that is falling. ASX 200 shares in the resources sector, such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Pilbara Minerals Ltd (ASX: PLS), are also deep in the red this morning.

Even the banks are taking a bath on Wednesday. This has seen the Commonwealth Bank of Australia (ASX: CBA) share price lose 3% of its value in early trade.

While these declines are hard to take, when the dust settles, there could be some very attractive buying opportunities for investors.

The post Why are ASX 200 shares tumbling like dominos on Wednesday? 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

• Why this fund manager is not banking on CBA shares right now
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• Here are the top 10 ASX 200 shares today
• Why did the Core Lithium share price leap another 6% on Tuesday?
• Fortescue’s Twiggy piles $120m into junior miner slated for ASX listing

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 ZIPCOLTD FPO. 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/6bIPeVT

The Telstra Corporation Ltd (ASX: TLS) share price has gone through a journey over the last few years. However, with the worst of the NBN profit hits behind it, is the telco giant now going to start delivering growth?

Telstra is one of the largest blue chips on the ASX with a market capitalisation of $46 billion according to the ASX.

The fund manager Perennial believes that Telstra is displaying characteristics that “bode well for earnings and returns”.

Perennial has taken this view after examining the telco’s FY22 result. Let’s have a quick look at that report.

FY22 earnings recap

Telstra reported that its total income declined by 4.7% to $22 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8.4% to $7.3 billion while underlying earnings per share (EPS) jumped 48.5% to 14.4 cents. On a guidance basis, the free cash flow increased 5.9% to $4 billion.

The board also decided to increase the dividend from 8 cents per share to 8.5 cents per share. An annualised dividend per share of 17 cents would be 6.1% at the current Telstra share price.

Outgoing Telstra boss Andy Penn described the mobile result as “outstanding”. Mobile EBITDA rose by 21.2%, with 2.9% postpaid handheld average revenue per user (ARPU) growth and 6.4% mobile services revenue growth. The telco said it added 155,000 net retail postpaid handheld services. There were also one million internet of things (IoT) services added, along with 218,000 wholesale services.

Telstra Health saw revenue rise 51% to $243 million after including acquisitions. Management said it’s on track to become a $500 million revenue business by FY25.

Management said that in FY23, total income is expected to be between $23 billion to $25 billion. Underlying EBITDA is predicted to come between $7.8 billion to $8 billion.

Why is Perennial positive on the Telstra share price?

Perennial said that the mobile business showed “good growth”. It went on to describe its optimistic view on the business:

With the NBN roll-out now completed, the company will no longer be facing earnings headwinds as broadband subscribers transition from its network to the NBN at much lower margins. This is likely to mark an inflection point in earnings, with the mobiles division driving positive group earnings growth. The recent merger of TPG with Vodafone has locked in an oligopoly structure in the mobiles market. As a result, we are now seeing more rational pricing, as well as other forms of cooperation such as network sharing agreements – all of which bode well for earnings and returns.

Telstra recently announced that it would be increasing mobile prices for many customers in line with CPI inflation.

Telstra share price snapshot

At the time of writing, Telstra shares have dropped 1% in the past month.

The post Why the Telstra share price could actually be a growth opportunity: fundie 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

• Why this top broker is tipping 17% upside for the Telstra share price
• Experts name 2 excellent ASX dividend shares to buy next week
• Telstra share price is caught in no man’s land as Optus feud continues
• ASX bounces back and telco titans tussle. Scott Phillips on Nine’s Late News
• The Telstra share price has gone backwards in 2022. Is now the time to pounce?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. 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/Ko8npNx

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.

What happened

If there is a single watchword that defines 2022, it would be inflation. Consumers and investors alike have been looking for signs that rising prices will eventually ease.

When the latest government report on inflation hit the wire Tuesday morning, it revealed that while prices weren’t increasing as quickly as they had been, the news was still worse than expected, sparking a wide-ranging sell-off on Wall Street.

With that as a backdrop, shares of Nvidia Corporation (NASDAQ: NVDA) tumbled as much as 7.8%, Amazon.com, Inc. (NASDAQ: AMZN) slumped as much as 6%, and Apple Inc. (NASDAQ: AAPL) slipped as much as 4.5%. As of 12:45 p.m. ET, the trio were still trading lower, down 7.5%, 5.1%, and 4.2%, respectively.

To be clear, there was little in the way of company-specific news driving these technology stocks lower — and what could be found was decidedly positive. This suggests that investors were hyperfocused on the macroeconomic data and what it means for the future.

So what

The monthly report from the U.S. Bureau of Labor Statistics laid out the state of inflation during the month of August, and things were even worse than many expected. The Consumer Price Index (CPI), the most widely followed government measure of inflation, increased 0.1% for the month and rose 8.3% year over year.  

To give this number context, it’s lower than the 8.5% that prices increased in July. Unfortunately it was also worse than the 8.1% forecast issued by economists. The “core” data, which strips out highly volatile food and energy prices, still climbed a miserable 6.3% over the preceding 12 months.

If there was a silver lining in the cloudy inflation data, it was that energy prices continued to ease off recent highs, declining 5% for the month. The biggest contributor to the drop was lower prices at the pump, as the gasoline index fell by a hefty 10.6%.

The declines were more than offset by increases in many basic necessities, including higher food prices, which notched an 11.4% increase year over year, the largest yearly increase since 1979.

Now what

The persistent inflation is weighing on investor sentiment, but even as this dreary macroeconomic data gave them pause, there is actually some positive company-specific data that suggests investors should actually consider buying these stocks.

Reports suggest that Nvidia and Taiwan Semiconductor Manufacturing are working on a solution that would daisy-chain multiple graphics processing units (GPU) together in a new way, which would be deployed for artificial intelligence (AI) uses. This could help fuel Nvidia’s sales, as the company has been increasingly focused on technology used in cloud computing, data centers, and AI, which has quickly become one of the company’s biggest growth engines. 

In the case of Apple, early presale data for the iPhone 14 suggests robust demand. Over the past couple of days, various analysts tracking the data have reported that wait times are growing for the iconic device. History suggests that longer ship times correlate with strong demand.

Early Tuesday, noted Apple follower Evercore ISI analyst Amit Daryanani joined that chorus, noting that lead times are long, particularly for the iPhone 14 Pro, Pro Max, and Plus models, according to The Fly. The data suggests that consumers are opting for these higher-priced models, which could have a materially positive impact on the average selling price (ASP) of iPhones — and Apple’s margins.  

For its part, Amazon announced the debut of the latest model of its Kindle e-reader. The entry-level model, which the company calls its “lightest and most compact,” comes with numerous upgrades, providing a tempting alternative for users looking to join the digital reading crowd or replace an existing e-reader.

Electronic devices represent just a small part of Amazon’s business, so it certainly won’t move the needle. That said, it helps make Amazon’s ecosystem stickier, attracting new customers and hanging on to existing ones. 

In the face of the ongoing Nasdaq bear market, shares of Nvidia, Amazon, and Apple are currently trading down 60%, 30%, and 14% off their respective highs. Furthermore, these industry leaders are currently selling at 10, 6, and 2 times next years’ sales, respectively, each near their lowest valuations in several years. Given that they dominate their respective industries and have a long track record of overcoming challenges — macroeconomic and otherwise — this might be a great opportunity to buy shares of these iconic companies at a discount.

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

The post Why Amazon and Apple stocks slumped 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

• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend
• Why Amazon stock popped today
• Why Apple stock popped on Monday
• Better buy: Shopify vs. Amazon stock
• Why the Apple share price fell today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Apple, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and Nvidia. 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 recommended Amazon, Apple, and Nvidia. 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.

from The Motley Fool Australia https://ift.tt/2MjBQ17

The Webjet Limited (ASX: WEB) share price has come through relatively unscathed so far this year.

While the S&P/ASX 200 Index (ASX: XJO) has printed a 7.6% fall, Webjet shares have outperformed by shedding just 0.2% since the start of the year.

Webjet’s financial year ends on 31 March, so the ASX 200 travel share released its FY22 results back in May.

More recently, the company held its AGM at the end of August, which was accompanied by a trading update. 

Webjet also held a strategy day last week, providing strategy updates across its different business segments.

With the travel recovery underway, are there blue skies ahead for Webjet shares, or could they hit turbulence?

Let’s get the lay of the land and see what a couple of leading brokers think.

Why Webjet shares could reach higher ground

On the back of Webjet’s AGM, analysts at Macquarie upgraded their rating on Webjet shares to outperform.

The broker noted that overall activity is tracking broadly in line with its forecasts. Meanwhile, earnings before interest, tax, depreciation, and amortisation (EBITDA) margins are approaching or above pre-COVID levels.

Explaining its upgraded rating, Macquarie said:

Solid trading update with profitability ahead of expectations that increases our confidence WEB will deliver and sustain a structurally lower cost base. Despite some macro risks on the horizon, the medium-term growth outlook is favourable and underpinned by market share gains, ongoing tech investment, and a full recovery in travel markets. 

Macquarie has a 12-month price target of $6.15 for Webjet shares. This implies potential upside of 13% from the current Webjet share price of $5.42.

The broker believes the key downside risk to its target price is the softer macroeconomic outlook reducing travel activity. 

Recovery flight path on track

As my Fool colleague James recently reported, analysts at Goldman Sachs are also bullish on Webjet shares.

After assessing Webjet’s recent trading update, the broker maintained its buy rating with a slightly trimmed price target of $6.80. This implies potential upside of 25% from current levels.

Two key positives from the update that stood out to Goldman were the continued strength in the execution of Webjet’s business-to-business segment and a stronger than expected cash flow outlook.

However, the broker is mindful that a slower-than-expected recovery in international travel is holding back Webjet’s online travel agency (OTA) business.

On the whole, the broker concluded:

Overall, we view travel recovery as trending in the right direction, albeit with hiccups in the trend and we believe WEB remains well positioned to capitalise on the recovery through their online OTA offer and more importantly the strengthening position in the Bedbanks market. 

In positive news for income-hungry investors, Goldman expects Webjet to resume paying dividends next year.

The post What are Webjet shares really worth in September? 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

• Why is the Webjet share price having a lousy start to the week?
• Brokers name 3 ASX shares to buy today
• Broker tips 23% upside for Webjet share price and the return of dividends
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX All Ords shares that leapt over 10% today

Motley Fool contributor Cathryn Goh 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 Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited and Webjet Ltd. 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/2TOhtaW

The ASX will probably fall today. Probably by a lot. The Motley Fool Australia’s CIO, Scott Phillips, sat down to explain why and what he’s recommending.

[youtube https://www.youtube.com/watch?v=cfoGmKu8Qq8?feature=oembed&w=500&h=281]

The post US markets tank. ASX likely to follow. Here’s our CIO’s advice. 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

• What are Webjet shares really worth in September?
• Keen on bagging the latest South32 dividend? You’ll need to be quick
• I think these 2 high-yield All Ords ASX dividend shares are buys in September
• What’s the growth runway for Qantas shares in the coming year?
• Do Bank of Queensland shares pay better dividends than the ASX 200 big four?

Motley Fool contributor Scott Phillips 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 Corporation. 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/CLAZc7k

It’s been a rough 12 months for the Bank of Queensland Limited (ASX: BOQ) share price but the smaller S&P/ASX 200 Index (ASX: XJO) bank’s dividends still stack up against those of its big four peers.

Right now, Bank of Queensland shares are trading at $6.99. That’s 24% lower than they were this time last year.

For comparison, the ASX 200 has fallen nearly 6% over the same period while the S&P/ASX 200 Financials Index (ASX: XFJ) has dumped close to 7%.

But how does Bank of Queensland’s dividends stack up against ASX 200 giants? Keep reading to find out.

Do Bank of Queensland shares pay competitive dividends?

The Bank of Queensland share price has tumbled from $9.22 to $6.99 over the last 12 months – leaving it $2.23 lower.

In that time, the bank has offered investors 44 cents per share in dividends, made up of a 22-cent final dividend and a 22-cent interim dividend. They were handed out in October and May respectively.

Of course, that still leaves those who bought into the stock this time last year in the red.

On the bright side, however, Bank of Queensland shares are currently trading with an impressive 6.29% dividend yield.

It’s also worth noting the bank has paid out fully franked dividends for more than a decade now, meaning its dividends could offer additional benefits for some investors at tax time.

Here’s how the Bank of Queensland’s dividend yield stacks up against the ASX 200 big four bank shares:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) offers the best yield of the big four, coming in at 6.13% right now
• Next best is Westpac Banking Corp (ASX: WBC), offering a yield of 5.6%
• National Australia Bank Ltd (ASX: NAB), meanwhile, boasts a 4.62% yield
• Finally, Commonwealth Bank of Australia (ASX: CBA) shares currently trade with a 3.93% yield  

Thus, while the Bank of Queensland share price has been underperforming the financial sector lately, its dividends currently offer better value than those of the ASX 200 big four banks.

The post Do Bank of Queensland shares pay better dividends than the ASX 200 big four? 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

• Analysts name 2 ASX 200 dividend shares to buy
• Here’s what a top broker is saying about the Bank of Queensland share price
• Savings or dividends? What these 3 ASX bank shares are offering for income
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/4OncYV7

If you’re looking to secure the South32 Ltd (ASX: S32) dividend, then you might want to read this before taking action.

The diversified mining and metals company dropped its full-year results on 25 August, and it didn’t disappoint.

South32 reported record earnings, free cash flow from operations and return on invested capital.

The balance sheet returned to a net cash position following substantial investments which improved its portfolio.

Subsequently, the board declared a record dividend of US 14 cents per share along with a special dividend of US 3 cents per share.

Both dividends are fully franked.

In total, the US 17 cent final dividend represents a significant lift from the US 5.5 cents per share (including a special dividend of US 2 cents per share) over the prior corresponding period.

And looking at yearly comparisons, FY22’s dividend stood at US 25.7 cents – up 272% from FY21.

However, the boosted dividend failed to gain any traction on the South32 share price as it has remained relatively steady.

For context, the company’s shares last traded at $4.31 yesterday.

Let’s take a look at the key dates for the upcoming final dividend.

Time is almost out to lock in the South32 dividend

Should you be looking for a small bonus next month, be sure to buy South32 shares today and hold them until tomorrow morning at the earliest.

This is because the share will trade ex-dividend on Thursday.

Keep in mind though when a company’s shares trade ex-dividend, the share price tends to fall in proportion to the dividend paid out. However, this can vary depending on how the market is tracking for the day as well as investor sentiment.

If you do manage to scoop up some South32 shares, a dividend payment of roughly A$0.25 per share will land in your bank account on 13 October.

The details of the exact payment currency equivalent will be released on 22 September.

This will be based on the average exchange rate realised by South32 during the period from 5-21 September.

South32 share price snapshot

Over the last 12 months, the South32 share price has gained 26% following favourable market conditions to base metal prices.

Based on today’s price, South32 commands a market capitalisation of $19.95 billion and has a dividend yield of 3.93%.

The post Keen on bagging the latest South32 dividend? You’ll need to be quick 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 3 ASX 200 shares turning ex-dividend tomorrow
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Outperforming 8% in a month, is the dividend yield still attractive on South32 shares?
• Experts say these 2 ASX dividend shares are buys
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Aaron Teboneras 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/k1Hxq8E