This year has been a very volatile time for investors. But would a portfolio of S&P/ASX 200 Index (ASX: XJO) high-yield dividend shares have been a way to cushion the blow of share market declines?

Sometimes a high dividend yield can be a trap. The last 12 months of dividends may have been high, but could it signal that a cut is coming in the next 12 months? Sometimes it does.

A high dividend yield can also be achieved if an ASX share has a particularly low price/earnings (p/e) ratio and/or a particularly high dividend payout ratio.

Let’s go back in time to the beginning of the 2022 calendar year and look at some of the highest-yielding ASX 200 dividend shares and see how they performed in total return terms. That’s the dividend return plus the share price return.

New Hope Corporation Limited (ASX: NHC)

The coal miner has been on an amazing run this year. The New Hope share price has risen by around 190% in 2022. It has benefited enormously from the big increase in the coal price as the world has sought energy sources away from Russia.

New Hope is supplying coal to a number of countries, sending its net profit after tax (NPAT) soaring. This, in turn, has enabled it to pay very large dividends. We saw this in the company’s FY22 result.

In 2022, it has also declared total dividends of 86 cents per share. Using the New Hope share price at the start of the year, that dividend equates to a dividend yield of 38.5% excluding franking credits.

This means that the total return from New Hope has been approximately 230% in 2022.

Magellan Financial Group Ltd (ASX: MFG)

It has been a rough time for the fund manager Magellan. It may have entered the year with a large dividend, but investors have not benefited.

As at market close on Tuesday, the Magellan share price has fallen by 47% in 2022 so far. Ouch.

Not only have inflation and higher interest rates hurt Magellan’s portfolios, but the fund manager has also seen investors pull out many billions of dollars. This reduces profitability and has led to analysts expecting that more FUM will be withdrawn.

At 31 December 2021, Magellan had $95.5 billion of FUM. By 30 September 2022, the FUM had fallen to just $50.9 billion.

The total dividend was reduced by 15% to $1.79 per share. Using the Magellan share price at the start of the year, that translates to a dividend yield of 9.5%, excluding franking credits. That puts the total return at minus 37.5%.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of Australia’s largest miners. Investor sentiment about the business often moves with the iron ore price, which has been reducing in recent months.

So, while the Fortescue share price has been higher than the current price several times over 2022, it is currently down 18% for the year with elevated uncertainty about the Chinese — and global — economy.

However, Fortescue is known as a big ASX 200 dividend share. On that front, it has still paid big money to shareholders this year, totalling 12.7% in yield terms, excluding franking credits.

Fortescue’s total shareholder return was approximately minus 5%.

Foolish takeaway

I think the above returns go to show that it has been a mixed bag for high-yielding ASX 200 dividend shares this year. Coal has been the clear winner, so New Hope can take a bow.

The post Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022? appeared first on The Motley Fool Australia.

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More reading

• Why ‘other stocks appeal more’ than Fortescue shares: expert
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Why is the Fortescue share price surging today?
• Here are 3 ASX All Ords shares turning ex-dividend this week
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends

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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One investment option that continues to grow in popularity with investors is exchange traded funds (ETFs).

And it certainly isn’t hard to see why they are so popular! As well as being an easy way to invest your hard-earned money, they provide you with investment opportunities that were unattainable a decade ago.

With that in mind, listed below are two high quality ETFs that could be top buy and hold options for investors. Here’s what you need to know about these super ETFs:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a great buy and hold option for investors is the BetaShares NASDAQ 100 ETF.

This hugely popular ETF aims to track the performance of the NASDAQ-100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market and includes many of the largest companies in the world.

Among the companies you’ll be buying a slice of with the ETF are global giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

Given their positive long term outlooks, they could make the ETF a great addition to a portfolio. Particularly after the significant weakness on the Nasdaq index this year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to consider as a buy and hold investment is the VanEck Vectors Morningstar Wide Moat ETF.

This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages. The latter has proven to be a great quality for successful investments, which explains why Warren Buffett looks for them when he picks his investments.

At present, there are around 50 US based stocks included in the fund. This includes high quality companies such as Amazon, Berkshire Hathaway, Intel, Microsoft, Walt Disney, and Wells Fargo.

The post 2 super ETFs for ASX investors to buy and hold appeared first on The Motley Fool Australia.

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More reading

• Of all my ASX ETFs, this is my favourite. Here’s why
• Here’s why I’m confident my investment in the BetaShares Nasdaq 100 ETF will eventually pay off
• 3 superb ETFs for ASX investors to buy now
• 2 top ETFs for ASX investors to buy in October
• Why this ASX ETF might help investors sleep better at night

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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. 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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The S&P/ASX 200 Index (ASX: XJO) posted a gain for a second consecutive day on Tuesday. The index closed 0.28% higher at 6,798.6 points.

That was despite the market’s major sectors posting a daily loss.

The S&P/ASX 200 Energy Index (ASX: XEJ) fell 1.6% amid lower oil prices.

The Brent crude oil price slipped 0.3% to US$93.26 a barrel overnight while the US Nymex crude oil price dropped 0.6% to US$84.58 a barrel.

It was also a rough day for the S&P/ASX 200 Materials Index (ASX: XMJ), which slumped 1.2% following yesterday’s 2.5% gain.

However, their falls were offset by the ASX 200’s remaining nine sectors, which all gained as the federal government prepared to hand down its budget tonight.

The S&P/ASX 200 Real Estate Index (ASX: XRE) and the S&P/ASX 200 Communications Index (ASX: XTJ) led the way, lifting 1.7% and 1.6% respectively.

But which ASX 200 share outperformed all others on Tuesday? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top performing stock was Sayona Mining Ltd (ASX: SYA). Shares in the lithium favourite lifted nearly 11% despite no news having been released by the company.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Sayona Mining Ltd (ASX: SYA)	$0.26	10.64%
Credit Corp Group Limited (ASX: CCP)	$18.43	7.9%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.08	5.32%
St Barbara Ltd (ASX: SBM)	$0.495	5.32%
Core Lithium Ltd (ASX: CXO)	$1.47	5%
Liontown Resources Limited (ASX: LTR)	$1.97	4.79%
Flight Centre Travel Group Ltd (ASX: FLT)	$15.85	4.21%
Kelsian Group Ltd (ASX: KLS)	$4.68	4%
Shopping Centres Australasia Property Group (ASX: SCP)	$2.56	3.64%
Breville Group Ltd (ASX: BRG)	$19.43	3.24%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Is buying CSL shares right now a smart move?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?

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 positions in and has recommended Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended Flight Centre Travel Group 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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How one allocates their own ASX share portfolio is obviously a very personal decision. We are all different people and investors, with different goals, risk tolerances and personalities. One ASX share might be right for one investor, and wrong for another.

For example, a retiree may appreciate the high dividends that an ASX bank share like Westpac Banking Corp (ASX: WBC) doles out. But a younger investor might wish to go for something with a bit more of a growth profile.

There’s no right way to invest when it comes to shares (although there are many wrong ways).

With all this in mind, let’s discuss how I allocate my own share market portfolio. As discussed above, this is what works for me, and my own strengths and weaknesses.

Now, I have many many different holdings across my portfolio. So I won’t discuss all of them. But I will touch on some theses and strategies that I tend to follow, and explain why.

ASX shares, dividends and franking credits

So to start with, I own a mix of ASX and US shares. This is for many reasons. I love the franking credits and local knowledge that makes ASX investing so rewarding.

But I also love the currency, geographic and economic diversity that comes from investing in the United States. What’s more, most of the best companies in the world call the US home.

My selection process is a rather simple one: I look for quality companies, usually with a strong brand, that have demonstrated competency and resiliency over a long period of time.

Let’s start with the ASX shares. So I do like a share that pays dividends, preferably those of the fully franked variety. One of my oldest holdings is Telstra Corporation Ltd (ASX: TLS).

I bought Telstra back in 2018 when it was trading for under $2.80 a share. The market hated it then, but I saw a company with a dominant brand providing an essential service. I continue to hold it today for those same reasons.

Another ASX share that is a long-term favourite of mine is National Australia Bank Ltd (ASX: NAB). NAB doesn’t have the pricing premium that Commonwealth Bank of Australia (ASX: CBA) does. But I still think it is one of the best-run ASX banks.

My favourite ASX share, though, is Washington H. Soul Pattinson and Co Ltd (ASX: SOL). I’ve discussed my love of Soul Patts before. But quite simply, it is a diversified market beater with an unmatched dividend record.

Looking across the pacific for my portfolio

Turning to US shares, and again my preference is strong brands and a proven track record. That’s why my US shares include names like Apple, Microsoft, Mastercard, Alphabet, Nike and Amazon.

Tesla Inc (NASDAQ: TSLA) is another company that I own. When I first invested in the electric car maker, it was one of my riskier shares. But I have been delighted to see the company grow in size and scale (not to mention value).

Most of my other US shares are within the consumer staples sector. I love the resilience and stability that these kinds of shares can add to a portfolio, as well as the dividends, of course. Among my favourites are Coca-Cola, Pepsi, Starbucks and McDonald’s.

Many of these companies have made a habit of raising their dividend every single year, so I have enjoyed watching my dividend income inch up steadily over the years.

So that’s my ASX share portfolio in a nutshell and why I own the companies that I do. As I said, it may not be for everyone. But it works for me and my goals. And I sleep soundly every night. What more could one ask for?

The post Here’s how I allocate my ASX share portfolio and why appeared first on The Motley Fool Australia.

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More reading

• Headwinds for Telstra shares are now behind them: expert
• Which ASX 200 shares could benefit from the federal budget?
• This famous investor is buying Tesla shares again. 3 reasons you should too
• Set for life: 5 ASX dividend shares I’d invest in if I ever had a million-dollar windfall
• Why Tesla stock tanked today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Coca-Cola, Mastercard, McDonald’s, Microsoft, National Australia Bank Limited, Nike, PepsiCo Inc., Starbucks, Telstra Corporation Limited, Tesla, 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 Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mastercard, Microsoft, Nike, Starbucks, Tesla, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mastercard, Nike, and Starbucks. 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 Santos Ltd (ASX: STO) share price was a positive performer on Tuesday.

The energy producer’s shares rose almost 1% to end the day at $7.66.

This means the Santos share price is now up approximately 16% since the start of the year.

Can the Santos share price keep rising?

The good news for investors is that one leading broker believes the Santos share price can continue its ascent.

According to a note out of Morgans, its analysts have retained their add rating on the company’s shares and lifted their price target to $9.40.

Based on the current Santos share price, this implies potential upside of 23% for investors over the next 12 months.

In addition, the broker is expecting a dividend of approximately 27 cents per share in FY 2023, which equates to an attractive 3.5% yield.

Why is Santos an ASX 200 energy share to buy?

Morgans was pleased with Santos’ recent quarterly update and highlights that it “continues to unlock healthy synergies from its merger with OSH, so far achieving savings of US$112m during the 9 months since the merger completed.”

The broker believes that the “post-merger STO is starting to really stretch its legs in terms of quality of earnings and cash flow” and expects its gearing to continue to lower, which “will increase STO’s investment appeal.”

And while Morgans acknowledges that oil prices have started to stutter recently, it expects them to remain high and for Santos to benefit. It concludes:

While we have seen oil prices hit ‘pause’ on their upcycle over the last quarter, as the world digests slowing growth and a surging US dollar, we expect oil and gas price conditions to remain supportive with the upcycle intact. STO is positioned to benefit against this setting, having de-rated in recent months while the market worried over the threat of potential government intervention into east coast gas markets. With this risk now cleared, we expect STO will only need to work through recent legal issues at Barossa to start to trade towards our valuation.

The post Broker says Santos is an ASX 200 energy share to buy appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy today
• Broker names the ASX dividend shares to buy now
• Here are the top 10 ASX 200 shares 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.

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The South32 Ltd (ASX: S32) share price struggled on the market on Tuesday.

South32 shares fell 1.37% to close the session at $3.60. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained 0.28%.

Let’s take a look at what went on with the South32 share price today.

Broker downgrade

South32 is not the only ASX mining share that finished in the red today. BHP Group Ltd (ASX: BHP) shares fell 1.43%, while the Whitehaven Coal Ltd (ASX: WHC) share price lost 4.52%.

The S&P/ASX 200 Materials Index (ASX: XMJ) descended 1.19% today, making it the second-worst-performing sector behind the S&P/ASX 200 Energy Index (ASX: XEJ).

However, a broker downgrade may have impacted investor sentiment in the South32 share price.

JP Morgan has relegated the company’s share price from overweight to neutral but has maintained a $4.10 price target on the company’s shares. This implies a nearly 15% upside from the current price.

Analysts like South32’s exposure to base metals, but are mindful of the global GDP growth outlook. Analyst Lyndon Fagan, in quotes cited by the Financial Review, said:

S32 continues to offer relatively inexpensive exposure to base metals, with a net cash position (albeit lower than expected), ongoing share buybacks, and a medium-term growth profile.

However, we remain cautious on the global GDP growth outlook, and the impact on commodity prices resulting from a material slowdown. On this basis, we downgrade to neutral.

South 32 reported mixed quarterly production results to the market yesterday. For example, metallurgical coal production fell 8%, while copper production lifted 12%. Alumina production fell 8%, while aluminum output lifted 9%. Nickel production fell 11%, while silver and zinc production descended 9% and 3%, respectively.

South32 share price snapshot

South32 shares have shed 5% in the past year, while they have lost more than 10% in the year to date.

For perspective, the ASX 200 has slid nearly 9% in the past year.

South 32 has a market capitalisation of more than $16.5 billion based on the current share price.

The post Why did the South32 share price take a beating on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping
• BHP share price dips following rough night on Wall Street
• Why these 2 ASX 200 dividend shares are ‘of particular interest’: fund manager
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Austal, New Hope, Playside, and South32 shares are dropping

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

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The CSL Limited (ASX: CSL) share price still hasn’t recovered to its pre-pandemic level, which saw it trading solidly above the $300 mark.

Indeed, the S&P/ASX 200 Index (ASX: XJO) healthcare stock is nearly 20% lower than the record high of $342.75 it posted in February 2020.

Could things be about to turn around for the CSL share price? Some experts are tipping it to do big things from here.

Right now, the CSL share price is $275.98.

Is now a good time to buy CSL shares?

It’s been a rough couple of years for the CSL share price despite plenty of exciting happenings at the company.

Most obviously, it completed its $16 billion acquisition of Swiss giant Vifor Pharma earlier this year.

The ASX-listed healthcare favourite also recently revealed that, Vifor Pharma’s contribution included, it expects to post between US$2.7 billion and US$2.8 billion of net profit before tax and amortisation for financial year 2023.

The team at Morgans was pleased by the news, retaining its buy rating and adjusting its price target for CSL shares to $312.20, my Fool colleague James reports. That represents a potential 13% upside.

The broker said strong plasma collections and demand, as well as the addition of Vifor Pharma, “portends strong growth momentum”.

Meanwhile, Goldman Sachs remained neutral on the stock following its most recent announcement, tipping it to lift to $291 – a potential 5% gain.

Tribeca Investment Partners portfolio manager Jun Bei Liu is also hopeful about the stock. She said it was one of numerous in the space trading at a reasonable valuation, saying, courtesy of Livewire:

We do think healthcare will perform very well in an uncertain environment. These companies will deliver very strong earnings growth regardless of the economic outlook.

But the most bullish expert is Fairmont Equities founder Michael Gable. My Fool colleague Tony quoted the expert as telling media:

In some ways, CSL might have dropped off people’s radar because since the COVID lows [the share price] hasn’t really done anything.

It bottomed in February… and now it’s starting to outperform the broader index.

You could see CSL with a four in front of it potentially by the end of next year, if it breaks out.

To reach the $400 mark, the CSL share price would have to gain around 45%. No doubt plenty of investors will have their fingers crossed for such a rise.

The post Is buying CSL shares right now a smart move? appeared first on The Motley Fool Australia.

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More reading

• Want a free gift with purchase? Buy AMP shares right now: expert
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?

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 positions in and has recommended CSL Ltd. and Goldman Sachs. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.3% to 6,799.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 12% to $27.52. This morning this fuel retailer released its third quarter update. Although Ampol reported further strong earnings growth in FY 2022, it appears to have fallen short of expectations.

Cann Group Ltd (ASX: CAN)

The Cann share price is down 13% to 23.5 cents. This follows news that the cannabis company is seeking further funds from shareholders. The company has launched a share purchase plan to raise between $8 million and $10 million at an 18.8% discount of 22 cents per new share. Funds from the share purchase plan will contribute to the company’s strategic investment in expanding GMP manufacturing capabilities at its Mildura operation.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price has sunk over 13% to $3.11. Investors have been selling this plumbing parts company’s shares following the release of a disappointing trading update. For the first quarter, Reliance reported sales of US$303.1 million. While this was up 23% over the prior corresponding period, this was due largely to a US$53.8 million contribution from the EZ-Flo acquisition. Excluding this acquisition, its sales growth was 6%. And due to margin weakness, normalised EBITDA fell 4% to $63.2 million.

South32 Ltd (ASX: S32)

The South32 share price is down over 1.5% to $3.59. This appears to have been driven by a lukewarm response to the miner’s quarterly update on Monday. For example, this morning Goldman Sachs retained its neutral rating but trimmed its price target on the company’s shares to $3.60.

The post Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Why is the BHP share price leaping 4% on Monday?

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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 S&P/ASX 200 Index (ASX: XJO) has faded in afternoon trade but remains on course to record a decent gain. At the time of writing, the benchmark index is up 0.4% to 6,804.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Aroa Biosurgery Ltd (ASX: ARX)

The Aroa Biosurgery share price is up 12% to 90 cents. This morning this medical device company released its half year update and revealed a 44% increase in revenue to NZ$28.8 million. In light of this strong half, the soft tissue regeneration company has upgraded its full year guidance for FY 2023 by approximately NZ$10 million.

Cettire Ltd (ASX: CTT)

The Cettire share price is up 12% to $1.74. This is despite there being no news out of the online luxury fashion retailer. This strong gain means its shares have now more than doubled in value since the start of the month. This has been driven by the release of a strong first quarter update earlier this month.

Estia Health Ltd (ASX: EHE)

The Estia Health share price is up 5% to $2.06. This morning this aged care provider announced a deal to acquire four residential aged care homes from the Premier Health Care Group. The release notes that these acquisitions are expected to be earnings per share accretive from the second half of FY 2023.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 4% to $2.44. Investors have been buying this semiconductor company’s shares following the release of an investor presentation. The presentation reveals that management believes that the embedded ReRam market will grow from $18 million in 2021 to $957 million by 2027.

The post Why Aroa Biosurgery, Cettire, Estia Health, and Weebit Nano shares are rising appeared first on The Motley Fool Australia.

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More reading

• Back in fashion? This ASX All Ords share is up over 130% so far in October
• It wasn’t all bad news for ASX All Ords shares on Monday. Here are some big winners
• Guess which ASX All Ordinaries share is rocketing 30% this week?
• Why Cettire, Moneyme, Piedmont Lithium, and Superloop shares are racing higher
• Guess which ASX ecommerce share is rocketing 17% higher 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 Cettire 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’s a deal touted on supermarket shelves, shopping centre posters, and marketing emails – free gift with purchase. Could there also be ‘free gifts’ hidden on the S&P/ASX 200 Index (ASX: XJO)? One expert has flagged a major freebie that appears to be on offer from AMP Ltd (ASX: AMP).

Roger Montgomery, founder and chair of Montgomery Investment Management, points out that, at recent levels, the AMP share price doesn’t factor in many of the company’s businesses.

In a way, that makes some of the company’s headline assets free for those buying into the stock.

Right now, AMP shares are trading for $1.195 apiece, 0.84% higher than the stock’s previous close. The ASX 200 has also lifted 0.23% on Tuesday.

So, what major assets could be essentially ‘free with any purchase’ of AMP shares in October? Keep reading to find out.

AMP shares essentially offer plenty of freebies: expert

Around a week ago, Montgomery sat down to prepare an investing brief for AMP shares. Since then, the stock has lifted around 1.4%.

Despite having previously declared the company one “that would not meet most investors’ definition of quality”, the expert’s funds have since bought into the stock.

That’s despite the 76% slide posted by the AMP share price over the last five years. On explaining the funds’ new position in AMP, Montgomery wrote:

We believe … the share price reflects legacy issues and investor anchoring and bias, and fails to acknowledge the turnaround and improvement in quality now underway.

The expert noted the divestment of Collimate Capital will likely see the company with a strong capital position. Meanwhile, its advice division’s losses and its wealth management division’s fund outflows are improving.

Finally, AMP Bank’s growth is outpacing its industry peers, helping to boost the company’s bottom line.

But what about that freebie? Here’s what Montgomery had to say:

With surplus capital of $2 billion, after the sale of assets, and a valuation of over $1.5 billion for the AMP Bank – based on book value – AMP’s market capitalisation of about $3.5 billion, suggests shareholders are receiving the +$100 billion multi-platform AMP North business, the Australian and New Zealand advice business, and a share of a Chinese asset management and pension company, for free. 

Finally, the expert believes that recent progress has delivered “objective evidence” that AMP shares offer “substantial” upside.

The post Want a free gift with purchase? Buy AMP shares right now: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Even as one strategist predicts a 30% crash, others think the bottom of this bear market may already be in and shares might rally for Christmas

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 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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