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.

Every time Bitcoin (CRYPTO: BTC) is showing signs of life, investors start to wonder how much the cryptocurrency could be worth in the long run. In the early days, Bitcoin didn’t seem to be worth anything. The first known purchase of a physical thing with payment by digital currencies was a May 2010 order of two large pizzas in exchange for 10,000 Bitcoin. The currency surged to $1,000 per Bitcoin in 2013, stopped just short of the $20,000 mark in 2017, and soared to roughly $68,800 per coin in November 2021.

Bitcoin has come a long way from the pizza-based price of 0.2 cents per coin. At today’s price of $21,230 per Bitcoin, Laszlo Hanyecz effectively spent $212 million on those tomato pies. So if the crypto’s value multiplied by more than 10 million times in 12 years, it might seem fair to expect a million-dollar price tag within the next decade.

Many pundits and famous investors say “yes”

Reaching $1,000,000 per Bitcoin by 2030 is a pretty popular projection.

• Crypto-trading platform BitMEX’s ex-CEO Arthur Hays made precisely that prediction four months ago
• Famous growth investor Cathie Wood set the same target in April 2022
• Serial entrepreneur Anthony Pompliano took the stage at the same Bitcoin 2022 event to say that Bitcoin could reach $500,000 or $1,000,000 in the near future — but anything beyond that would require a social collapse and total meltdown of the US dollar.
• In early June, MicroStrategy (NASDAQ: MSTR) chairman Michael Saylor doubled down on his bullish price predictions in a CNBC interview: “It’s not going to zero. If it’s not going to zero, it’s going to a million because it’s obviously better than gold at everything that gold wants to be.”

It’s true that all of these Bitcoin bulls have significant financial interests in the Bitcoin market. For example, if the coin ever reaches $1 million, the company’s current cache of roughly 130,000 Bitcoins would soar from $2.8 billion to $130 billion. As a result, MicroStrategy would be a financial heavyweight with Bitcoin-based cash reserves comparable to software-sector rivals Microsoft and Alphabet.

At the same time, people like Michael Saylor and Cathie Wood are putting their money where their mouths are. If they are wrong and Bitcoin never replaces gold as the standard holder of long-term value, they could lose every penny of the massive investments they have made so far. Perhaps more importantly, they could look quite silly if their big Bitcoin bets don’t work out as planned. Nobody wants to lose face that way, especially in an industry where a robust reputation earns you more clients and partners.

What could go wrong?

Regulators and governments around the world are still figuring out how to deal with these newfangled digital assets. Some of them may set up overly draconian frameworks for trading, transactions, and ownership of cryptocurrencies, including Bitcoin. The domestic rulemaking effort is especially important to American investors, of course. It’ll take a couple more years before this particular source of uncertainty calms down.

Bitcoin certainly has a leg up on the crypto competition when it comes to disrupting the gold market — but that future isn’t written in stone. Other digital coins could come along with better technology, more secure transactions, and other unbeatable advantages. In that world, we could see another name grabbing Bitcoin’s crown, challenging early investors to adapt or get left behind.

So Bitcoin enthusiasts like Michael Saylor and Arthur Hays could still lose it all. However, I think cryptocurrencies are here to stay, and there’s good reason to believe that Bitcoin will remain a cornerstone of this evolving market. There will be volatility along the way and the current crypto crisis could last for years, like the last one did. That’s alright. I’m in this investment for the long run.

All things considered, I think it’s a good idea to keep some Bitcoin in your long-term investment portfolio. If that lofty million-dollar price target holds up, every $10,000 you invest in Bitcoin today will be worth nearly half a million dollars by 2030. It would be a shame to miss that opportunity, right?

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

The post Can the Bitcoin price reach US$1 million? appeared first on The Motley Fool Australia.

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• 3 reasons to invest in Ethereum right now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet (A shares) and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Bitcoin, and Microsoft. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C 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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It has been a rough year in 2022. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by 9%. But, I’m going to tell you about one fund manager’s view that 2023 could be a good year for the ASX share market.

Fund manager Isaac Poole from Oreana Financial Services wrote on Livewire that a shift to a pause in interest rate rises from the Reserve Bank of Australia (RBA) and the United States Federal Reserve would mean there was a “resetting of the bearish recession expectations. And that will deliver considerable upside to Australian equity markets through 2023″.

Economic views

It is Oreana and Poole’s view that a modestly restrictive cash rate by the RBA will push house prices lower, but they may not fall as much as 20%, as some are predicting.

The expert’s view is that higher interest rates will:

… restrict housing activity, house prices, household spending, and household borrowing. And that will bring down inflation, allowing the RBA to hike less than the market expects. And allow house prices to decline less than consensus expects – we think 10% is probable.

If house prices only fall by 10%, this won’t lead to a recession in Oreana’s view. It would be a “welcome cooling” and the RBA can say it did a good job. This could also help assets like ASX shares.

Poole went on to say:

The RBA has taken rates close to neutral, but they are not yet restrictive. When the RBA does move to restrictive policy settings, we expect to see the economy slow to below-trend growth rates. The unemployment rate will initially stop falling and judging by the rapid cooling in ANZ job ads, the unemployment rate will move higher. Modestly higher unemployment will reinforce the RBA’s pause and extend the cycle, delaying recession for some time.

When will the RBA stop increasing interest rates?

Poole pointed out that the RBA hurt its creditability by saying that interest rates weren’t likely to rise until 2024.

But, after the recent pivot in policy, the RBA interest rate is now “moving towards restrictive monetary policy”.

Poole wrote:

We expect the RBA will pause at modestly restrictive settings, allowing the Australian economic cycle to extend through 2023.

Australian house prices are going to correct but not collapse in this environment. Importantly, solid economic momentum can prolong the economic cycle through 2023 preventing a recessionary environment. And in this scenario, Australian investors will benefit from exposure to both Australian equities and Australian government bonds.

The end of uncertainty for the market about how high interest rates will go could be a positive factor for the ASX share market. However, I think it’s worth pointing out there’s no knowing what rate the RBA interest rate will settle at for the longer term, which does have an influence on the valuation for ASX shares.

The post Why this fundie sees ‘considerable upside’ for ASX shares in 2023 appeared first on The Motley Fool Australia.

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• Hoping to dig into the latest Grange Resources dividend? Here’s how
• How I’d invest $10,000 in ASX shares if I were saving for a house
• Here’s how long I plan to hold my Fortescue shares
• Goldman Sachs names 2 exciting small cap ASX shares to buy

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.

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It has been a very disappointing year for the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price.

Since the start of the year, the pizza chain operator’s shares have lost 50% of their value.

This leaves the Domino’s share price trading within touching distance of its 52-week low.

Is the Domino’s share price weakness a buying opportunity?

The team at Morgans continues to see significant value in the Domino’s share price following its weakness in 2022.

In fact, according to a recent note, the broker has added the company to its best ideas list in September. This list is home to shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The note reveals that Morgans has an add rating and $90.00 price target on the company’s shares. Based on the current Domino’s share price of $60.82, this implies potential upside of 48% for investors over the next 12 months.

But it gets better. Morgans is expecting a $1.73 per share partially franked dividend in FY 2023. This equates to a 2.8% dividend yield, bringing the total potential return to over 50%.

Why is it bullish?

Morgans is positive on Domino’s due to the company’s positive long term growth outlook, which is being underpinned by its ongoing store network expansion. It explained:

DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world.

It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.

The post Down 50% in 2022: Is the Domino’s share price a bargain buy? appeared first on The Motley Fool Australia.

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• 2 of the best ASX shares to buy now according to Morgans
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• $20,000 invested in these ASX shares 10 years ago is worth how much now?
• Reason for hope as ‘worst month of the year’ starts off badly
• Here are 3 ASX 200 shares trading ex-dividend 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 recommended Dominos Pizza Enterprises 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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Shares in Grange Resources Ltd (ASX: GRR) have come under selling pressure following the company’s disappointing interim results.

The company reported a 36% drop in half-year statutory profit to $132.2 million due to soaring energy costs and volatile iron ore prices.

Subsequently, the board decided to drastically cut its dividend by a whopping 80% when compared to the corresponding year.

Investors vented their frustration on the weakened performance, sending the Grange Resources share price 28% lower on the day.

While there has been a slight recovery over the last two trading days last week, the share is down almost 40% since 29 August.

At Friday’s market close, the iron ore pellet miner’s shares finished at 84.5 cents apiece.

Let’s take a look at the details that you need to know about the upcoming dividend.

Time is almost out to dig in the Grange Resources dividend

The Grange Resources share price could be on the move today as the ASX is expected to open higher this morning.

In addition, the price of iron ore has remained elevated to about the US$100 level.

In the case you are looking to scoop up the company’s upcoming dividend, today will be the last day to do so.

This is because the ex-dividend date is tomorrow, 13 September.

So, if you buy Grange Resources shares today and hold them until tomorrow morning, you’ll receive a fully franked dividend of two cents per share.

The company is set to pay out $23.14 million in the form of dividends to eligible shareholders on 30 September.

Currently, Grange Resources isn’t offering a dividend reinvestment plan (DRP) at this time.

Grange Resources share price snapshot

Despite the company’s unfortunate half-year performance, the Grange Resources share price has risen 12% this year.

In comparison, the S&P/ASX 200 Resources (ASX: XJR) sector is up 2.7% over the same period.

Grange Resources commands a market capitalisation of approximately $977 million and has an attractive dividend yield of 14.2%.

The post Hoping to dig into the latest Grange Resources dividend? Here’s how appeared first on The Motley Fool Australia.

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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.

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Saving for a house is not an easy task. It can mean saving up tens of thousands of dollars, or sometimes more than $100,000 depending on the goal. Here’s where ASX shares might be able to help.

It’s important to recognise that the ASX share market can be volatile. So, I wouldn’t invest all of my house deposit funds into ASX shares because, of course, they could drop at an inopportune time – such as just when they’re needed to buy a house. For this reason, I would only do it with a portion of the money.

I also want to say that investing in shares is a long-term endeavour. I would not invest today thinking I’d be cashing out in six or nine months. I’d say at least five years is probably the minimum timeframe that could give the shares the chance to grow and allow some leeway to navigate any difficulties during that time.

When the shares are at a good price, at say the four-and-a-half year (or even four years) mark, I would consider whether cashing out slightly earlier would be good to lock in the gains and go back to the safety of cash.

As money expert the Barefoot Investor said in his December 2020 newsletter:

If you have money that you need to draw on in the next five years invested in anything other than a bank savings account or term deposit, you may well lose a chunk of it.

The share market is not a safe place to hold your money in the next five years. However, it’s arguably the safest place to invest your money over decades, as it will outrun inflation.

Keep any money you’ll need to spend in the next few years in a bank account (or term deposit) that is covered by the government deposit guarantee (up to $250,000).

With savings accounts in Australia now offering much higher savings rates, keeping in an account is a much more palatable idea.

Having said all that, if I were investing $10,000 to boost my house deposit these are the types of names I’d consider:

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

I wouldn’t want to put my money into the riskiest ASX growth shares I could find. I’d choose ones that look like they could offer stability and, hopefully, growth over the long term.

The idea behind this exchange-traded fund (ETF) is that it’s invested in a portfolio of high-quality US companies. It has around 50 holdings, which is plenty of diversification.

Analysts at Morningstar have analysed hundreds of companies in the US and picked ones that have wide ‘moats’, or strong competitive advantages, which are expected to endure for at least the next decade and probably endure for two decades. In other words, these businesses are really good at what they do.

Some of the biggest positions in the portfolio right now are: Kellogg, Gilead Sciences, Ecolab, Polaris, Blackrock, Biogen, Etsy, and Boeing.

Businesses are only added to the portfolio if they are “trading at attractive prices relative to Morningstar’s estimate of fair value”. In other words, this portfolio is full of good value, long-term businesses.

This ETF has demonstrated long-term solid performance. Over the past five years, the total return has been an average of 15.7% per annum. But, past performance is not a guarantee of future results.

I would put $5,000 into this ASX share.

Brickworks Limited (ASX: BKW)

This business has four parts, all of which I’m optimistic about.

It has an Australian building products division that makes things like bricks, roofing, and precast. If there is another positive run for the Australian housing market in the next few years, this segment will benefit.

Brickworks also has a growing presence in the huge US building product market, where it is already the leading brickmaker in the northeast of the country. This division could deliver attractive expansion over the long-term as it expands into more states and into more building products.

The ASX share also owns a substantial portion of century-old investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). This large asset provides Brickworks with stable underlying earnings and (growing) cash flow in the form of an increasing dividend.

Finally, Brickworks owns half of a growing industrial property trust along with Goodman Group (ASX: GMG). This trust is building large, advanced warehouses on land that Brickworks no longer needs. Two of the biggest warehouses are for Coles Group Ltd (ASX: COL) and Amazon. This trust could drive a lot of value for Brickworks in the 2020s.

I think Brickworks looks good value when you compare the stated value of net assets to its market capitalisation.

I would invest $3,000 into this ASX share due to its diversified operations and the large pipeline of properties being planned in the property trust.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another diversified, solid ASX share in my opinion.

It’s the business behind Bunnings, Kmart, Officeworks, Catch, Priceline, Target, and more.

I think that the long-term profitability of some of its little-known businesses, such as Wesfarmers chemicals, energy, and fertilisers (WesCEF), is very promising, particularly with the planned Mt Holland lithium project.

The company is also planning to grow in the health, beauty, and wellness sector after buying API, the business that owns Priceline, Soul Pattinson Chemists, and Clear Skincare Clinics. I think this health area provides a lot of potential areas of growth and can benefit from ageing demographics.

Management has shown over the long term that they try to be careful with the company’s capital and are laser-focused on shareholder returns. I think Wesfarmers could be a compelling long-term pick.

I’d invest $2,000 into this ASX share.

The post How I’d invest $10,000 in ASX shares if I were saving for a house appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Etsy, Gilead Sciences, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Biogen and Ecolab. The Motley Fool Australia has positions in and has recommended Brickworks, COLESGROUP DEF SET, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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 own Fortescue Metals Group Limited (ASX: FMG) shares in my portfolio. It’s one of the larger positions I hold. In my mind, Fortescue is one of the shares that I may hold for the longest.

Readers will probably know Fortescue as an iron ore mining giant. It produces huge amounts of iron – in FY23, it’s expecting iron ore shipments to be between 187mt to 192mt. It has a market capitalisation of $52 billion, according to the ASX.

There are two periods of time that I’m thinking about with my Fortescue shares.

Next few years

Fortescue is selling huge amounts of iron ore to China. In doing so, it’s generating large amounts of cash flow and a significant portion of this is being paid out in dividends to shareholders.

While I hold my Fortescue shares over the next few years, I’m expecting to receive very healthy dividends. Ultimately, how big the profit and dividend end up being will be decided by the iron ore price.

With expectations of a lowering iron ore price and a falling profit over the next two financial years, estimates on CMC Markets still put the grossed-up dividend yield at 14% for FY23 and 9% in FY24. However, my average buying price for my Fortescue shares is lower than the current price, so my yield on cost is even higher. I am fortunate to receive these big dividends while waiting for the green side of the business to develop.

It’s also worth mentioning that Fortescue is looking for other commodities, which would be a useful bonus. For example, it’s exploring for copper and gold in Western Australia and South Australia.

It’s also trying to find lithium. According to reporting by the Sydney Morning Herald, it has been applying for exploration leases to look for lithium near Bridgetown and the Greenbushes mine – which is the world’s largest hard rock lithium operation.

Long-term

What I’m about to write about is why I see myself holding shares until at least 2030 and, potentially, for decades longer.

Fortescue has a division called Fortescue Future Industries (FFI) which wants to take a global leadership position in green energy and technology, with the goal of creating a global portfolio of green hydrogen-producing hubs.

The first green hydrogen (and revenue from that) may only be a few years away as FFI partners with Incitec Pivot Ltd (ASX: IPL) to produce green ammonia at Gibson Island.

By 2030, FFI is hoping to produce 15mt of green hydrogen per annum. It already has clients lining up to buy significant amounts of its production – Europen energy company E.ON wants to buy up to 5mt per annum for the European market by 2030. I think this could help Fortescue shares significantly if it reaches those milestones.

As the world decarbonises, I think green hydrogen and green ammonia usage are just going to grow. Industries like ships, planes, and heavy machinery could all move to using green hydrogen. This could be the start of decades (or much longer) of global green hydrogen use – just look at how long oil has been used by the world. Indeed, if green hydrogen turns into the ‘new oil’ for big vehicles, then I could see myself owning my Fortescue shares for the rest of my life.

As well, Fortescue can diversify its earnings in the green space, with advanced batteries and other technology or commodities.

Foolish takeaway

Fortescue has an exciting future. I think the future of iron ore may not be as strong as the last few years, particularly if Chinese buying slows down later this decade. However, I believe that the green energy side of Fortescue is very promising. Indeed, I’ll be looking to buy more shares if the company’s share price drops to at least $16 or below.

The post Here’s how long I plan to hold my Fortescue shares appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why is the Fortescue share price bolting out the gate on Friday?
• Fortescue share price strengthens amid boost in China’s iron ore appetite in August

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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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If you’re looking for new investment options at the small side of town, then the two ASX shares listed below could be worth considering.

Both are highly rated by analysts at Goldman Sachs and tipped to generate strong returns for investors.

Here’s what the broker is saying about these small cap ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share that Goldman Sachs is recommending to investors is Hipages.

It is a leading ANZ-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Goldman Sachs is bullish on the company due to its belief that Hipages has strong medium term and long term growth potential. In respect to the form, Goldman is forecasting a 29% EBITDA compound annual growth rate (CAGR) for FY 2022 to FY 2025.

As for the long term, the broker commented:

Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies.

Goldman currently has a buy rating and $2.20 price target on the company’s shares. Based on the current Hipages share price, this implies potential upside of over 70% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that Goldman Sachs is bullish on is Nitro. It is a document productivity software provider. It is aiming to drive digital transformation in organisations around the world across multiple industries with its core solution, the Nitro Productivity Suite.

Like Hipages, Goldman Sachs is forecasting very strong growth in the coming years and believes the company has a huge long term opportunity. It said:

We continue to see NTO as an undervalued global growth opportunity (>20% FY22-25E ARR CAGR) with high gross margins (~90%), a sound balance sheet (US$35mn net cash) and very little priced into the current valuation.

Even after a recent jump following a rejected takeover approach, Goldman sees plenty of value in the Nitro share price with its buy rating and $2.05 price target. This implies potential upside of 23% for investors from current levels.

The post Goldman Sachs names 2 exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

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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 Hipages Group Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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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It has been a difficult year for the ASX share market with a number of businesses seeing declines. However, there are a few ASX shares that have managed to achieve positive returns. One of them has certainly helped my portfolio.

In 2022 to date, the S&P/ASX 200 Index (ASX: XJO) has dropped by 9%. The Betashares Nasdaq 100 ETF (ASX: NDQ) has fallen by 23%. Looking at one of my largest holdings as an example, the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has dropped 17%.

But, thankfully for me, the Duxton Water Ltd (ASX: D2O) share price has risen by 9% in 2022.

What is Duxton Water?

The company explains its strategy as such:

The primary investment objective of Duxton Water is to build a portfolio of permanent water entitlements and utilise this portfolio to provide flexible water supply solutions to our Australian farming partners. The company generates a return by offering irrigators a range of supply solutions including long-term entitlement leases, forward allocation contracts and spot allocation supply.

In summary, the ASX share owns water and leases it to farmers.

The company wants to build its portfolio of long-term water leases. The aim is to have between 70% to 80% of its portfolio under lease.

Why has it performed in 2022?

A commodity business like Duxton Water can see its returns heavily dictated by the performance of the resource.

However, wet conditions have persisted over the last two or three years, which has led to a “significant improvement” for all major dam storages and full soil moisture profiles across large areas of the basin.

Duxton Water revealed that despite the wet conditions and lower allocation prices, “entitlement values across most of the basin are trading at near all-time highs”. The company has benefited from the pricing uplifts.

The management team explained:

Although it may seem counter-intuitive that entitlement pricing is sitting at near record highs given the current wet conditions, this shows that the demand and supply drivers that underpin water entitlement values are much stronger than the increased annual rainfall and dam storages that we’ve seen over the last two to three years. We believe the primary driver affecting water entitlement values is driven by an increasing inelastic demand for future water security from permanent crop producers across the basin. With high commodity prices and coming off the back of a couple of good seasons, permanent crop producers have been investing into their future water security by acquiring permanent water entitlements.

Permanent water pricing across the southern Murray-Darling Basin strengthened throughout July, with a weighted average increase of 0.6%, resulting in a rise of around 19% since July 2021, according to Duxton Water.

Dividends

One of the main reasons I’m attracted to Duxton Water, aside from the potential for good returns, is that the ASX share is planning to grow its half-yearly dividend to 3.4 cents per share in FY22, 3.5 cents per share for the 2023 interim dividend, and 3.6 cents per share for the 2023 final dividend.

Is the Duxton Water share price a buy?

I think it could be interesting at this level. It’s valued at a 12.5% discount to the July 2022 post-tax net asset value (NAV) per share and a 25% discount to the pre-tax NAV. I’d be happy to buy shares.

The post Guess which one of my ASX shares has delivered me the most gains this year appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in DUXTON FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BETANASDAQ ETF UNITS and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS and Washington H. Soul Pattinson and Company 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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Coal mining ASX shares have done pretty well out of the energy crisis this year.

But if the thought of directly investing in the fossil fuel creeps you out, there are ways to indirectly gain some exposure to the global fuel shortage.

Two such ASX shares are the investment company Washington H Soul Pattinson and Co Ltd (ASX: SOL) and construction business Brickworks Limited (ASX: BKW).

According to Shaw and Partners portfolio manager James Gerrish, both are in or near the buy zone.

This stock was just added to our hitlist

Soul Pattinson has a variety of interests in both public and private entities, Gerrish said in a Market Matters Q&A.

“They own a number of strategic holdings including TPG Telecom Ltd (ASX: TPG) ~$1.1 billion, Brickworks ~$1.3 billion and New Hope Corporation Limited (ASX: NHC) ~$1.68 billion.”

Coal producer New Hope has seen its share price rise almost 133% so far in 2022. Yet the Soul Pattinson share price has actually dipped 17% over the same period.

For Gerrish’s team, this disjoint perhaps presents some upside.

“Considering the significant outperformance by New Hope, I would have expected more from Soul Pattinson,” said Gerrish.

“We like investment house Soul Pattinson below $26 and it’s recently found itself on our hitlist.”

Soul Pattinson shares closed Friday at $25.62.

The stock is famous for its 22-year streak of non-stop dividends, with the yield currently sitting at 2.53%.

No dividend cut for 4 decades

So how can a building business like Brickworks provide exposure to the energy sector?

“This manufacturer of clay and building products also owns ~26% of Soul Pattinson, which by definition equates to a $400 million position in New Hope Corporation,” Gerrish said.

Unlike Soul Pattinson, Brickworks shares seem to have benefitted from its New Hope exposure.

“Brickworks has struggled a bit due [to] the slowing building industry but New Hope has helped the cause.”

This is another stock that has an impressive dividend record. The construction company has increased its dividend each year since 2014.

“It’s worth mentioning too that the ASX 200 dividend share hasn’t cut its dividend for over four decades,” wrote The Motley Fool’s Tristan Harrison.

“Brickworks also owns half of a quality industrial property trust which is constructing buildings such as huge warehouses… The growing net rental profit from Brickworks’ property investments can help fund bigger dividends.”

Gerrish’s team would buy Brickworks the next time it dips under the $20 mark. The stock closed Friday at $20.71.

“Overall some slightly messy cross-ownership, but both stocks do look good value into further weakness.”

The Brickworks share price is down 16.2% year to date.

The post ‘Good value’: Expert names 2 ASX dividend shares to pounce on next dip appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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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The A2 Milk Company Ltd (ASX: A2M) share price will be one to watch on Monday morning.

This follows the release of an announcement out of the infant formula company.

Why is the A2 Milk share price in focus?

All eyes will be on the A2 Milk share price at the open following the release of an update on the company’s Chinese label infant formula.

According to an announcement out of Synlait Milk Ltd (ASX: SM1), the dairy processor has received notification from China’s State Administration for Market Regulation (SAMR) that its current registration has been renewed.

This renewal allows Synlait to manufacture A2 Milk’s Chinese labelled infant formula until 21 February 2023 under the previous food safety standard. This is great news for A2 Milk as the current registration was due to expire later this month.

And while its registration has only been renewed for a further five and a half months, Synlait revealed that it is busy working towards achieving its re-registration under the new food safety legislation by February.

A2 Milk’s response

A2 Milk responded to the news, highlighting the above but also warning investors that while its re-registration activities are progressing, the timing of it is uncertain and remains subject to SAMR approval.

Positively, though, the company also highlights that the Ministry for Primary Industries has co-operation arrangements in place with SAMR. These position New Zealand well in relation to China registration processes.

A2 Milk’s CEO, David Bortolussi, commented:

We are pleased that our current product registration has been renewed, effectively to late February 2023, and we will continue to work collaboratively with Synlait and SAMR in relation to registration of our China label IMF product formulated in line with China’s new GB standards.

We remain focused on the China market and are looking forward to the opportunity to make our newly formulated infant milk product available to parents and infants in China. In all circumstances, The a2 Milk Company fully respects SAMR’s governance and timing of this important registration process.

The post A2 Milk share price on watch following China update appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping
• Why is the A2 Milk share price tumbling lower today?
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• Why has the A2 Milk share price leapt 17% in a fortnight?
• Why is A2 Milk buying back shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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