I think there are some good opportunities to find when looking at All Ordinaries (ASX: XAO), or All Ords, ASX dividend shares. Getting good value and receiving a big dividend could be a winning combination.

Businesses that have fallen heavily due to concerns about what may happen next with the economy could be too good to ignore.

Share prices can be oversold when there is a peak of uncertainty about what’s going to happen and what could improve things.

I believe the long term looks promising for these two All Ords ASX dividend shares.

Adairs Ltd (ASX: ADH)

Adairs is a leading retailer of homewares and furniture. It now operates three businesses – Adairs, Mocka and Focus on Furniture.

While profitability may not be as high as in FY21, the company is still expected to pay a solid dividend in FY23 and FY24. According to estimates on CMC Markets, Adairs could pay a grossed-up dividend yield of 12.3% in FY23 and 14.4% in FY24.

The Adairs share price is down around 50% in 2022 to date.

I think the All Ords ASX dividend share’s earnings can benefit in the long run from its increasing total retail floorspace (which includes upsizing stores), growing online sales, finding synergies between its businesses, benefitting from the new national distribution centre, and growing its membership numbers.

According to estimates on CMC Markets, Adairs shares are valued at 7x FY23’s estimated earnings and 6x FY24’s estimated earnings. That’s a very low forward price-to-earnings (p/e) ratio in my opinion.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a compelling retailer in my opinion. It’s a leader in selling products for babies and toddlers such as prams, car seats, toys, clothes, and furniture.

I’ve been impressed by the company’s ability to keep generating growth. In FY22, it grew sales by 8.3% to $507.3 million and online sales soared 24.2% to $112 million. The gross profit margin improved by 151 basis points to 38.6%, and statutory net profit after tax (NPAT) increased 14.6% to $19.5 million.

In terms of the dividend, Baby Bunting increased its full-year dividend by 10.6% to 15.6 cents per share. According to CMC Markets, the business is projected to pay 17.8 cents per share in FY23 and 20.4 cents in FY24. This would translate into grossed-up dividend yields of almost 6% and 6.8%, respectively.

The All Ords ASX dividend share’s dividend and profit could grow further as Baby Bunting grows its store network in Australia and New Zealand, increases its level of online sales and private and exclusive sales, benefits from operating leverage and expands its product range. I think it looks good value after a 23% fall in 2022.

The post I think these 2 high-yield All Ords ASX dividend shares are buys 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

• Brokers rate these ASX dividend shares as buys
• Brokers name 3 ASX shares to buy today
• Experts say these ASX dividend shares are buys today
• Why Adairs, Fortescue, PointsBet, and Qantas shares are dropping
• Here are 2 ASX dividend shares that experts rate as buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Baby Bunting. 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/6DTFcti

The Qantas Airways Limited (ASX: QAN) share price has tipped into the green this year.

While the S&P/ASX 200 Index (ASX: XJO) has slid nearly 8% since the beginning of the year, ASX travel share Qantas has climbed 3% to $5.31.

Could the Qantas share price reach higher altitudes? Fund manager Perennial has weighed in on the matter. Let’s take a look.

Blue skies ahead for Qantas shares?

Qantas is a holding in the Perennial Value Australian Shares Trust. And the fund’s latest monthly report reiterated its bullish stance.

The report notes:

Qantas (+16.7%) performed strongly as a sharp recovery in travel demand drove a return to profitability in the June half year. The likely ongoing strong demand, combined with capacity constraints, will be supportive of pricing and drive strong profitability into the coming year.

In prior monthly reports, the fund commented that travel is likely to perform strongly as consumer spending shifts from the purchase of goods, which was elevated during lockdowns, to the purchase of services and experiences.

Broker tips more upside for Qantas

Leading broker Macquarie also thinks Qantas shares could take flight. 

Analysts at Macquarie currently have an outperform rating on Qantas, with a 12-month price target of $7.05. This implies a potential upside of 33% from current levels.

According to its recent broker note, Macquarie believes Qantas’ operating environment is attractive with strong travel demand and rational competition. 

Explaining its bullish stance, the broker commented:

We have high conviction in Qantas underpinned by the ongoing travel recovery with the proven ability to pass through higher fuel, along with structural changes to the business through COVID which are yet to be reflected in the share price.

Further, with strong cash generation reflected through balance-sheet repair, Qantas can self-fund fleet renewal & expansion, which look to be value accretive while still providing scope for capital management (ie, recent A$400m buyback).

Qantas share price snapshot

Qantas shares have navigated their way through turbulence to land an 8% gain over the last six months.

But over the last year, shares are still in the red, posting a 2% fall.

The ASX 200 airline recently handed in its FY22 results, delivering an underlying loss before tax of $1.9 billion.

The post What’s the growth runway for Qantas shares in the coming year? 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

• Qantas share price holds firm despite Virgin ‘Switch-A-Roo’ play
• What’s boosting the Qantas share price on Monday?
• Qantas share price ends week in the red despite green update
• Qantas share price edges lower amid Alan Joyce’s $2.3 million FY22 pay packet
• Could you be holding onto ‘zombie’ ASX shares hoping for new life?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group 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/yTRo3HF

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

Shares of Tesla (NASDAQ: TSLA) dropped on Tuesday along with much of the rest of the market. As of the close, the electric vehicle (EV) leader’s stock was down by 4.04%, and the threat of increased competition was at least partially to blame. The tech-heavy NASDAQ Composite index also plunged by 5.2% today.

So what

Tesla shares still trade at what would be considered a sky-high valuation by traditional metrics. That valuation is based on the company’s growth potential, of course, and it’s rapidly expanding its production capacity as the electric vehicle market grows. So it didn’t help when an analyst said he thinks a formidable competitor could take some market share from Tesla. The company in question surpassed Tesla as the world’s top seller of EVs in the first half of 2022 if one also counts plug-in hybrid models.

Now what

Warren Buffett-backed BYD sold 641,350 “new energy” vehicles in the first half of this year, compared to Tesla’s 564,743. The China-based vehicle and battery manufacturer combines its fully electric and plug-in hybrid sales in the “new energy” category. And BYD already has a small foothold in the U.S., where it builds electric buses. Barclays analyst Jiong Shao thinks BYD will increase its international expansion and fight for share in the U.S. market, according to an article published Tuesday by Barron’s.

Tesla is quickly ramping up its output from two new factories in Texas and Germany, and anticipation of its higher vehicle production is a major reason traders have bid the stock up to a price-to-earnings (P/E) ratio of more than 100. Even with those growth prospects, its forward P/E remains at nosebleed levels.

That’s because investors expect the EV leader to continue growing strongly for many more years. The company itself expects its EV production to increase by 50% annually for at least the next several years.

Everyone knew competition was coming in the EV market, though. Both established automakers and start-ups are ramping up their EV production in the U.S. If a global leader in the category expands its presence in this country, Tesla’s growth might be impacted, and that headwind has not been factored into its current valuation.

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

The post Why Tesla stock dropped 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(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Better buy: Tesla stock or a Nasdaq index fund?
• Why Tesla shares moved higher today
• Where does Tesla get its lithium and do any ASX shares benefit?
• Why Tesla shares dropped today
• Why Tesla stock dropped Monday morning

Howard Smith has positions in BYD. 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.

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

The Commonwealth Bank of Australia (ASX: CBA) share price is not attractive, according to one fund manager.

Perennial Partners is a fund manager that has achieved long-term outperformance. Since March 2000,  the inception of the Perennial Value Australian Shares Trust, this fund has outperformed the S&P/ASX 300 Accumulation Index (ASX: XKOA) by an average of 1.1% per annum.

This fund aims to achieve returns over the long term through a combination of capital growth and tax-effective income. It invests in a diversified portfolio of Australian shares and aims for a total return, after fees, that beats the S&P/ASX 300 Accumulation Index measured on a rolling three-year basis.

Over the prior three years, the fund’s net returns have been 6.7% per annum, whereas the benchmark return was 5.6% per annum.

So what does the fund have to say about shares in Australia’s largest bank?

CBA shares are not attractive to Perennial

In its monthly report for August 2022, the fund managed to outperform the index, after fees, by 0.1%.

Perennial pointed out that the major bank, in which the fund is underweight, lagged the market slightly, with the CBA FY22 result “highlighting the ongoing competition in the mortgage market”.

However, the fund manager also pointed out that on the positive side of things, the balance sheet settings remain “very strong” across the sector and credit quality remains “pristine”, reflecting the current underlying economic strength.

CBA is actually the position where the fund manager is most ‘underweight’. That means compared to the index weighting of CBA shares, Perennial’s holding of CBA in its portfolio is noticeably smaller.

In FY22, CBA reported that its cash net profit after tax (NPAT) rose by 11%.

But, it was the net interest margin (NIM) that suffered. The FY22 NIM fell by 18 basis points to 1.90%, or 10 basis points excluding ‘liquids’.

CBA explained that the group NIM declined due to a large increase in low-yielding liquid assets and lower home loan margins. The bank said that its medium-term outlook remains “unchanged”, with margins expected to increase in a rising interest rate environment.

The big bank also said that there is “continued pressure from home loan competition”.

Improvement in the NIM could be a key driver of the CBA share price from here.

Management calls it a “challenging time”

When the company announced its FY22 result, the CBA CEO Matt Comyn said:

Against many measures, Australian households and businesses are in a strong position given low unemployment, low underemployment, and strong non-mining investment. However inflation is high, and we have seen a rapid increase in the cash rate which is negatively impacting consumer confidence. We expect consumer demand to moderate as cost of living pressures increase.

It is a challenging time, but we remain optimistic that a path can be found to navigate through these economic conditions. We remain of the view that the medium-term outlook for Australia is a positive one. Our purpose, to build a brighter future for all, reflects the role we play in supporting our customers and the domestic economy during periods of uncertainty.

We continue to invest in our business, to reinforce our customer propositions and extend our digital leadership position.

CBA share price snapshot

Over the last month, CBA shares have fallen by 2.5%.

The post Why this fund manager is not banking on CBA shares right now 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

• Billions in liabilities could be set to hit CBA and other ASX banks: expert
• Are NAB shares a better ASX 200 bank to buy than CBA right now?
• Could this help give the CBA share price an even bigger jump on its ASX counterparts?
• Why is the NAB share price diving more than the other big 4 ASX banks today?
• Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie

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 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/lzpQjZK

September is always a busy time of the year for ASX dividend investors as companies in the S&P/ASX All Ordinaries Index (ASX: XAO) line shareholders’ pockets with the dividends declared throughout ASX reporting season.

But before these dividends can be paid, companies must first determine which investors are eligible for the payment. 

To do so, they set a cut-off date, which is also known as the ex-dividend date. This is the date that a company’s shares no longer trade with rights to the upcoming dividend payment.

Tomorrow, three ASX All Ords shares with sizeable dividend yields will be turning ex-dividend. Let’s check them out.

Best & Less Group Holdings Ltd (ASX: BST)

Today will be the final day to snare Best & Less’ fully franked final dividend of 12 cents, which will be paid on 30 September.

The ASX All Ords share battled COVID-related store closures throughout the year, losing 11% of total trading days. The retailer estimates this led to more than $50 million of lost sales.

This saw FY22 revenue drop by 6% to $622 million but like-for-like sales were more robust, retreating just 1%. 

The retailer’s gross margin edged higher to 49.1%; impressive given the backdrop of rising inflation.

On the bottom line, net profit after tax (NPAT) fell by 13% to $41 million.

In its first year as a listed company, Best & Less declared total dividends of 23 cents per share, fully franked.

Based on current prices, this puts Best & Less shares on an eye-catching trailing dividend yield of 9.4%. With the benefit of franking credits, this yield grosses up to 13.5%.

The final dividend alone prints out a dividend yield of 4.9%. So don’t be surprised to see Best & Less shares in the red tomorrow when they no longer trade with entitlements to this dividend.

Spark New Zealand Ltd (ASX: SPK)

Spark shares will be trading tomorrow without an unfranked final ordinary dividend of 12.5 NZ cents. 

As part of a Kiwi tax regime, the company will also be paying a supplementary dividend of roughly 2.2 NZ cents to shareholders who aren’t New Zealand residents.

Spark returned to growth in FY22 with revenue climbing 4% to NZ$3.7 billion and NPAT lifting 8% to NZ$427 million.

The company is currently in the midst of transitioning from its telco roots to a more diversified, higher-growth digital services provider.

It recently announced plans to sell a 70% stake in its TowerCo business for around NZ$900 million. If the deal goes through, the company expects to return up to NZ$350 million to shareholders through an on-market share buyback.

Since FY16, Spark has held its annual dividends steady at 25 NZ cents. But this is set to change next year, with management guiding for FY23 dividends of 27 NZ cents.

This represents a prospective forward dividend yield of 5.0% before the addition of any supplementary dividends.

Spark shares will soon be joining the ASX 200 ranks in the upcoming September rebalance.

Auswide Bank Ltd (ASX: ABA)

As of tomorrow, Auswide shares will no longer be trading with a fully franked final dividend of 21 cents per share. 

If you own Auswide shares when the market closes today, keep your eyes peeled for the payment to come through on 30 September.

Alternatively, you could forgo this cash payment and instead participate in the company’s dividend reinvestment plan (DRP). A 5% discount is on offer and you’ll have until 15 September to opt in.

Positive momentum continued for this ASX All Ords share in FY22. The bank’s loan book grew 7% to $3.9 billion while its net interest revenue climbed 5% to $82 million.

Auswide’s net interest margin (NIM) retreated six basis points to 1.94%. In comparison, Commonwealth Bank of Australia (ASX: CBA) reported group NIM of 1.90% in FY22.

On the bottom line, Auswide’s NPAT grew 8% over the prior year, driven by home loan growth and margin management.

Across the financial year, Auswide raised its total dividends by 5% to 42 cents per share, fully franked. This puts Auswide shares on a trailing dividend of 6.9%, which dials up to 9.8% including franking credits.

The post 3 ASX All Ords shares going ex-dividend on Thursday 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

• Is it time to buy these 2 beaten-up ASX shares in September?
• Why these 3 ASX shares could be in for a massive boost this month
• Why is the Best & Less share price crashing 15% on Wednesday?
• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• Best & Less share price surges 7% on sharp FY22 results

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 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/lDIqA9x

If you have room in your portfolio for some new additions, then you might want to consider the two ASX shares listed below.

Both have recently been named among the best ideas list of one of Australia’s leading brokers, Morgans. Here’s why its analysts are bullish on these ASX shares:

Healius Ltd (ASX: HLS)

The first ASX share that Morgans rates highly is healthcare company Healius. While COVID testing has clearly peaked, its analysts believe the company will still benefit from some level of testing and also a backlog in diagnosis and surgery. In addition, the broker has previously highlighted Healius’ strong balance sheet, which provides it with opportunities to boost its earnings inorganically. Morgans commented:

Healius engages in the provision of healthcare technology solutions. It operates through the following segments: Medical Centres Bulk Billing, Pathology, Imaging, and Medical Centres Private Billing. […] As COVID uncertainty remains, we believe the company looks well placed to not only benefit from a likely “baseload” of COVID PCR testing going forward, but also from any rebound in demand from the backlog in diagnosis and surgery as the country opens up.

The broker has an add rating and $4.50 price target on Healius’ shares.

IDP Education Ltd (ASX: IEL)

Morgans appears to believe that this student placement and language testing company could be a great long term pick for investors. And while it acknowledges that its shares are not conventionally cheap, it does see value in them considering its expectation for a two-year earnings per share compound annual growth rate of 38.2%. It commented:

IEL’s recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage and acquisitions (especially IELTs distribution) can see IEL compound growth long-term. Value has emerged, however IEL’s near-term multiples see the stock susceptible to short-term volatility.

Morgans has an add rating and $31.10 price target on IDP Education’s shares.

The post Broker names 2 of the best ASX shares to buy now 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

• ‘Unparalleled’: 2 experts reckon this ASX share is a long-term buy
• 2 ASX 200 shares named as buys by a top broker
• 2 ASX shares that look expensive but have years of growth ahead: QVG Capital
• 5 things to watch on the ASX 200 on Wednesday
• These 9 ASX 200 shares are going ex-dividend tomorrow

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 Idp Education Pty Ltd. 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/h6pgduq

The Bitcoin (CRYPTO: BTC) price is down more than 50% since 1 January.

And Bitcoin isn’t the only crypto to come under pressure in 2022.

Far from it.

With central banks the world over ratcheting up interest rates to tame rocketing inflation, almost every crypto (save those stablecoins that didn’t melt down) is deep into the red.

The world’s number two crypto by market cap, Ethereum (CRYPTO: ETH), has suffered a similar retreat to the Bitcoin price, down a bit more than 50% year to date.

With those kinds of losses, you might think institutional investors would be ready to throw in the towel.

But, according to global custodian bank State Street, that’s not the case at all.

Can the Bitcoin price rebound from crypto winter?

As The Age reports, State Street is engaging with investment managers looking for exposure to cryptos. And those managers haven’t been put off by the plunge in the Bitcoin price and the retreat of other digital tokens.

State Street’s track record in the crypto sphere includes its role as the fund administrator for the Cosmos Purpose Bitcoin Access ETF (CXA: CBTC). The exchange-traded fund, which aims to closely mirror Bitcoin price moves, listed on the Cboe Australia exchange on 12 May.

Digital lead for Asia Pacific at State Street Irfan Ahmad believes crypto is “here to stay”.

According to Ahmad (quoted by The Age):

During the course of the June, July period where things were really hotting up in terms of activity, we saw institutional clients not necessarily double down, but they weren’t really deterred from placing strategic bets on the asset class itself.

The takeaway from that is, I think there is a belief that the asset class is here to stay. And we, as an asset servicer, will obviously partner with our clients where they believe their ambition lies.

Now what?

Whether the Bitcoin price moves higher or lower from here, Ahmad said investors can expect new crypto products to launch in Australia in the “very near future”.

“Certainly, our clients, they’ve been speaking to us more pragmatically about how they might be able to launch products, or what our capabilities may be in the future to help them support the launch of those products,” he said.

The post The Bitcoin price has tumbled 50% in 2022 but this expert says crypto ‘is here to stay’ 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’s supporting the Dogecoin price in September?
• Why Bitcoin and Solana jumped on Monday
• Can the Bitcoin price reach US$1 million?
• Will the Ethereum price continue to outperform in 2022 post Merge? Expert panel weighs in
• Why the Bitcoin price is not having a ‘whale of a time’ lately

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 Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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/Gf2T9VQ

Not surprisingly, many people are put off shares that have recently plunged in value.

After all, if other investors dislike a stock, why would you risk your own money?

However, if you want your investment to perform better than the average, many financial experts point out that you have to do things differently to everyone else.

“Buy when the crowd is bearish, sell when it is bullish,” AMP Ltd (ASX: AMP) chief economist Dr Shane Oliver said last month.

“Extremes of bullishness often signal eventual market tops, and extremes of bearishness often signal bottoms.”

The other bonus is that if other investors have abandoned the ship, the stock can be bought at a significant discount.

So with this in mind, let’s take a look at two ASX shares that had shockers in August:

Sell-off has been ‘overly excessive’

Glenmore Asset Management portfolio manager Robert Gregory, in a memo to clients, lamented the reporting season performance of two of his stocks.

First was industrial chemicals provider DGL Group Ltd (ASX: DGL).

“DGL Group fell 26.1% in the month,” he said.

“DGL’s FY22 result was solid, with NPAT of $33.6 million (up +197% vs FY21 NPAT) being in line with guidance given in April. However, commentary from the company around FY23 guidance for earnings growth to ‘flatten’ spooked investors,” Gregory said.

The market was specifically worried about comments regarding how the company had earned more than it should have because of one-off opportunities that would not repeat in the next financial year.

“In addition, operating cash flow was weak, which DGL said was due to earlier than normal inventory purchases.”

Despite this, Gregory feels like the market overreacted.

“Whilst the FY23 guidance was clearly worse than expected, we have maintained our position in DGL given our view the post result sell-off has been overly excessive.”

The DGL share price almost halved in just one week at the end of last month but has since recovered slightly to be 39.4% down year to date.

Remaining positive on real estate trust

Gregory’s other August dog was childcare and healthcare real estate trust Arena REIT No 1 (ASX: ARF).

“Arena REIT fell 12.7% in the month,” he said.

“ARF’s reported FY22 funds from operations (FFO) of 16.3 cents, up +7% vs FY21, which was in line with market expectations.”

The result was “quite solid” and the company announced a distribution for financial year 2023 that was more than 5% higher than the previous period.

So why the plunge in share price?

“The stock price weakness was likely driven by expectations around higher interest costs which will dampen distribution growth in the next few years.”

Again, Gregory reckons the market has not reacted proportionately.

“We remain positive on ARF given its long term lease profile (weighted average ~20 years) and attractive rent review structure where the majority of assets have annual rent increases linked to changes in consumer price index.”

Arena REIT shares are down 17% so far this year while paying out a 3.6% dividend yield.

The post 2 ASX shares to buy for CHEAP after a shocking August: expert 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

• DGL share price jumps 20% in 2 days after founder fills his boots
• DGL share price tumbles again, down 45% so far this week
• Why DGL, PointsBet, Tabcorp, and Woodside shares are dropping today
• Why did this ASX All Ords share just crater 23%?
• Expert names 2 ASX shares to buy for ‘extended, uninterrupted’ good times

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 positions in and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL Group 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/59aPCY0

A wave of companies in the S&P/ASX 200 Index (ASX: XJO) have already seen their shares turn ex-dividend this month.

Tomorrow, more dividends will be taken off the table as a handful of ASX 200 shares whisk away entitlements to their upcoming dividend payments.

Without further ado, here are three notable ASX 200 shares going ex-dividend tomorrow.

South32 Ltd (ASX: S32)

Today will be the last day to scoop up South32’s fully franked final dividend of 17 US cents, which includes a special dividend of 3 US cents. It will be paid on 13 October.

The ASX 200 miner delivered record earnings and cash flow in FY22, capitalising on elevated commodity prices.

Underlying revenue jumped 45% to US$10.6 billion while underlying earnings surged four-fold to US$2.6 billion.

Across the financial year, South32 declared ordinary dividends of 22.7 US cents. This represents a whopping 363% increase from the ordinary dividends seen in FY21.

What’s more, the board declared special dividends of 3 US cents, up from 2 US cents in the prior year.

Altogether, South32 shares are currently printing a sizeable trailing dividend yield of 8.7%. Including franking credits, this yield cranks up to 12.4%.

Seven Group Holdings Ltd (ASX: SVW)

Seven Group is another ASX 200 share going ex-dividend tomorrow. Shares will be trading without a fully franked final dividend of 23 cents, which will be paid on 28 October.

In FY22, the diversified investment group delivered underlying net profit after tax (NPAT) of $577 million, up 14% from the prior year. This was driven by outperformance at WesTrac, Coates, Beach Energy Ltd (ASX: BPT) and Boral Limited (ASX: BLD).

However, on a statutory basis, NPAT backtracked by 4%, impacted by impairments and transaction costs at Boral and Seven West Media Ltd (ASX: SWM).

Ultimately, Seven decided to hold its fully franked annual dividends steady at 46 cents. This puts Seven shares on a trailing dividend yield of 2.4%, which grosses up to 3.5% including franking credits.

Fletcher Building Limited (ASX: FBU)

Rounding out this trio of ASX 200 shares turning ex-dividend tomorrow is Kiwi building products company, Fletcher.

Fletcher recently announced its FY22 results, hiking its unfranked final dividend by 22% to 22 NZ cents. 

As part of a Kiwi tax regime, the company will also be paying a supplementary dividend of roughly 3.9 NZ cents per share to shareholders who aren’t New Zealand residents.

Investors who own Fletcher shares by the time the market closes today should see these funds land in their account on 6 October.

Amidst a backdrop of supply chain disruptions, Fletcher delivered revenue of NZ$8.5 billion in FY22, up 5% from the prior year.

Earnings before interest and tax (EBIT) before significant items grew at a faster clip, lifting 13% to NZ$688 million.

Across the financial year, Fletcher declared annual ordinary dividends of 40 NZ cents per share, up 33% from FY21. 

This puts Fletcher shares on a trailing dividend yield of 7.1%. Including supplementary dividends, this yield ticks up above 8%.

The post Here are 3 ASX 200 shares turning ex-dividend tomorrow appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 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
• Top ASX shares to buy in September 2022

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 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/edTNvnB

Investors looking for income options might want to check out the two ASX 200 dividend shares listed below.

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

Bank of Queensland Limited (ASX: BOQ)

The first ASX 200 dividend share that has been tipped as a buy is Bank of Queensland.

This big four bank challenger is the owner of a number of banking brands including the eponymous Bank of Queensland, ME Bank, and Virgin Money Australia.

The team at Citi is positive on Bank of Queensland. Although its analysts suspect that the bank’s revenue growth could slow if rising rates impact lending volumes, it expects cost synergies from the ME Bank acquisition to support earnings and dividend growth.

In respect to the latter, the broker is forecasting fully franked dividends per share of 46 cents in FY 2022 and then 50 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.99, this will mean yields of 6.6% and 7.15%, respectively.

Citi has a buy rating and $8.75 price target on the bank’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 dividend share that has been tipped as a buy is insurance giant QBE.

It provides a broad range of insurance products to personal, business, corporate and institutional customers. This includes everything from car and home insurance, to tailored business packages and specialist cover for industries such as aviation and farming.

Morgans is positive on the company and believes that its earnings profile will improve materially in the coming years. This is thanks to strong rate increases still flowing through QBE’s insurance book, investment yields improving, and further cost-out benefits.

As for dividends, its analysts are expecting a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.51, this equates to yields of 3.3% and 6.1%, respectively

Morgans has an add rating and $14.93 price target on its shares.

The post Analysts name 2 ASX 200 dividend shares to buy 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

• ‘Sweet spot’: Citi names 2 ASX 200 shares that are ‘inexpensive’ right now
• 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 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.

from The Motley Fool Australia https://ift.tt/DujT5ZA