The gold price has descended in recent times, but will it bounce back or continue to struggle?

Since 15 August, the spot gold price has fallen 2.9% from US$1815.50 an ounce to US$1,761.10 an ounce, CNBC data shows.

ASX shares impacted by the gold price include Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST) and Newcrest Mining Ltd (ASX: NCM).

What’s the outlook for the gold price

Multiple analysts are cautious on the gold price. Since March, gold has shed 13.8% from a high of US$2043.30 an ounce on 8 March.

City Index senior market analyst Matthew Simpson is predicting gold could fall to US$1700 an ounce. He said in comments provided to The Motley Fool:

A clear indication that gold investors are concerned is that the CBOE gold volatility index (GVZ) and downside protection – via put options – are both on the rise.

Simpson said gold will be highly sensitive to both the Jackson Hole Symposium and Core personal consumption expenditures (PCE) inflation data this week. US Federal Reserve chair Jerome Powell is set to speak at the central bank’s annual event on Friday. Simpson added:

Concerns that Jerome Powell will deliver a hawkish tone to his speech alongside a recession warning has seen the US dollar continue to surge and weigh on the yellow metal, as it gets dragged lower with metals and risk sentiment in general.

However, he noted a bullish case for gold would be a weak inflation print, and Powell delivering a “less hawkish” speech than expected. But he said, “that isn’t looking too likely right now, so we are on guard for further losses for gold and its potential to move fall to $1700”.

Meanwhile, ANZ senior commodity strategist Daniel Hynes and commodity strategist Soni Kumari are also tipping gold to “find its floor” at about US$1,700 per ounce.

Analysts noted aggressive federal rate hikes and the higher US dollar are “holding down the gold price in a research note last Thursday. However, they are predicting the central bank to ramp up purchases as currencies weaken. The analysts said:

While growing recession fears, due to rising rates against sticky inflation, should see some haven flows, central bank purchases are likely to be strong as currencies depreciate and geopolitical risks rise. This should help mitigate weaker physical demand.

However, Evolution Mining executive chairman Jake Klein has predicted gold could hit more than $2,000 per ounce next year, Bloomberg reported last week.

Evolution reported in financial results last week that it achieved a realised gold price of US$2,425 an ounce in FY22.

Meanwhile, Newcrest reported a realised gold price of US$1,787 per ounce. Northern Star is due to report FY22 results to the market on Monday. 

The post Can the gold price outshine sticky inflation? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
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• 5 things to watch on the ASX 200 on Monday
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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is in focus today after the company released its full-year earnings.

The company also announced it’s expanding its footprint into three new markets – Malaysia, Singapore, and Cambodia – through the acquisition of 287 corporate stores for upwards of $214 million today.

Shares in the S&P/ASX 200 Index (ASX: XJO) pizza chain franchiser last traded at $67.07.

Domino’s share price on watch on record store growth

Here are the key takeaways from Domino’s financial year 2022 (FY22) results:

• Global sales came to $3.92 billion – a 4.6% improvement on those of the prior corresponding period (pcp)
• Underlying earnings before interest and tax (EBIT) fell 10.5% to $262.9 million
• Revenue lifted 4.1% to around $2.29 billion
• Underlying net profit after tax (NPAT) slumped 12.5% to $165 million
• Underlying earnings per share (EPS) reached 190.6 cents – a 12.6% slip
• Declared 68.1-cent 70% franked final dividend, leaving its full-year payout 9.8% lower at 156.5 cents per share

In the Asia Pacific, Domino’s sales grew 4.9% last financial year while its EBIT slipped 9.7%. Over in Europe, regional sales rose 4.3% to $1.5 billion while EBIT fell 11% to $78.8 million. Full-year EBIT grew 2.8% in Australia and New Zealand, reaching $3.3 million.

Its total EBIT of $262.9 million represented a year-on-year fall but was 19.1% higher than pre-pandemic levels. This was largely driven by changing sales conditions in the first half, a multi-million reinvestment in its Australia and New Zealand franchise business, and the rebuilding of its Danish business.

The company’s online sales surpassed a milestone $3 billion in FY22, lifting 4.4% to get there.

Domino’s added 450 new stores in FY22 – 294 organically and 156 through acquisition ­– a 15.3% increase and a new record. It ended the period with 3,387 stores globally.

What else happened in FY22?

The financial year just been was an exciting period of growth for the pizza giant.

It surpassed a major milestone in Japan, opening stores in all of the country’s 47 prefectures, making it the only pizza company with a national footprint. Sadly, the Domino’s share price slipped 3% on the back of the news.

FY22 is also the first year in which the company is reporting earnings from its Taiwan business. Domino’s announced its plan to acquire 156 stores in the nation in late FY21, marking its entrance in a tenth Asia Pacific market.

What did management say?

Domino’s CEO and managing director Don Meij commented on the company’s earnings, saying:

We have reached a challenging but important milestone, as we transition from ‘living with COVID’ to facing historic inflation, on track for a significant expansion in delivered food across the Quick Service Restaurant industry.

It is clear that this inflationary environment, more than any we’ve seen historically, requires a nuanced and multi-layer approach: reducing costs and maximising the benefits of scale, lifting menu prices where appropriate, and balancing these with ‘inflation busters’ that shows Domino’s consistently offers choice.

We made clear when COVID first affected us that we would be investing in growth … Today, we can measure ourselves against those goals, and are pleased with our performance drawing a line from ‘pre-COVID to now’ – integrating a new market, adding 865 stores (+34.3%), growing sales by 35.2%, and EBIT by 19.1%.

What’s next?

Domino’s didn’t provide any exact earnings guidance today. Though, it outlined several growth expectations and provided a brief trading update.

Meij said the market for delivered food was expected to grow more than 45% by 2026, and the company is jumping onboard for the ride. It intends to continue growing its network by 8% to 10% annually, focusing on opening stores closer to customers, thereby increasing customer satisfaction and lowering the costs of delivery services.

Delivery efficiency is also a pillar stone of the company’s response to inflation. That’s brought promotional offerings and pricing initiatives, such as the addition of a delivery service fee.

Domino’s also expects its same store sales to grow between 3% to 6% this fiscal year.

The company has already opened 13 new stores in FY23. Meanwhile, its network sales have slipped 2.4% over the start of FY23 compared to those of the pcp.

Domino’s share price snapshot

The Domino’s share price has had a particularly rough trot as of late.

It has fallen 45% since the start of 2022. It’s also trading 53% lower than it was this time last year.

For comparison, the ASX 200 has dumped 8% year to date and 7% over the last 12 months.

The post Domino’s Pizza share price in focus as full-year sales near $4b appeared first on The Motley Fool Australia.

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• 2 excellent ASX growth shares that analysts say are buys
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• Brokers name 3 ASX shares to buy today
• Is it a problem for shareholders that Italians don’t like Domino’s Pizza?
• Own Domino’s shares? The ASX 200 pizza giant is biting into a new market

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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The S&P/ASX 200 Energy Index (ASX: XEJ) has climbed 5.21% this week, but one ASX energy share has easily outperformed the index.

The Australian Pacific Coal Ltd (ASX: AQC) share price has soared 196.3% from 13.5 cents at market close on Friday to the current share price of 40 cents.

So why is this ASX energy share having such a good run this week?

What’s going on with Australian Pacific Coal shares?

Investors have been buying up Australian Pacific Coal shares after the company announced news of a takeover bid.

Australian Pacific received a non-binding alternative proposal on the sale of its Dartbrook coal project in New South Wales from Naveko Pty Ltd.

The plan involves Naveko providing instant funding to Australian Pacific via an equity subscription for 19.97% of Australian Pacific shares for a total of $3.78 million. Nakevo is also proposing to make a takeover bid for Australian Pacific for up to 30 cents per share.

In April, the company received an offer from major shareholder and creditor Trepang Services Pty Ltd.

Nakevo’s proposal, received on Friday, is still at an early stage. Australian Pacific said the offer is “conditional” and “requires further consideration”.

Meanwhile, the outlook for the coal price could also be providing Australian Pacific with a boost.

In FY22 results released last week, ASX coal share Yancoal Australia Ltd (ASX: YAL) predicted thermal coal prices will remain elevated in 2023. Yancoal said:

Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.

The coal price has soared more than 146% in a year, according to Trading Economics data.

Share price snapshot

This ASX energy share has surged 135% in the past year and 167% in the year to date.

In the past month, Australian Pacific shares have rocketed 281%.

Australian Pacific Coal has a market capitalisation of $20.2 million, based on the current share price.

The post Why has this ASX energy share surged 196% since the start of the week appeared first on The Motley Fool Australia.

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• Guess which little-known ASX coal share just rocketed 100%
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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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WiseTech Global Ltd (ASX: WTC) shares will be closely monitored on Wednesday morning after the logistics software maker released its full-year results and future outlook.

What did the company report?

• Revenue was up 25% to hit $632.2 million
• Earnings before interest, taxation, depreciation and amortisation (EBITDA) was up 54% to hit $319 million
• Statutory net profit after tax was up 80% to hit $194.6 million
• Free cash flow was up 71% to hit $237.3 million
• Final ordinary dividend was raised from 3.85 cents per share to 6.4 cents.

What else happened in FY22?

WiseTech has acquired a remarkable 41 companies since listing on the ASX in 2016.

During the last financial year, it completed two takeovers — Inobiz and Hazmatica.

“We are actively looking at further tuck-in acquisition opportunities which are typically smaller in size but can quickly bring their team, technology and knowledge, without major rewrites, and rapidly add value to the CargoWise ecosystem,” said WiseTech founder and chief executive Richard White.

“We also continue to look at larger, strategically significant, acquisition opportunities supported by our strong balance sheet, cash flow and funding options.”

What did management say?

White said of the full-year result:

This standout performance demonstrates the increasing resilience of our business model. In an environment of persistent supply chain constraints, inflationary pressures and COVID-related business disruption, to have delivered these outcomes is a real testament to the strength of our business, the dedication of our people, and the effectiveness of our 3P strategy.

COVID-related capacity constraints, port congestion and labour shortages experienced during the year resulted in an overloaded supply chain which could take some time to unwind. Demand for goods continues to outpace pre-COVID-19 levels, 4.9% above pre-COVID trendlines.

What’s next?

Assuming market conditions stay reasonably similar, WiseTech is predicting revenue growth of 20% to 23% for the 2023 financial year and EBITDA growth of 21% to 30%.

“We are well placed to benefit from the continuing M&A consolidation activity amongst global logistics operators, and their increasing investment in replacing legacy systems with digital solutions, as well as pursuing our own M&A opportunities,” said White.

“Looking ahead, we also remain focused on R&D and accelerating our investments to deliver breakthrough products that enable and empower those that own and operate the supply chains of the world.”

WiseTech share price snapshot

In a remarkable rally, the WiseTech stock price has rocketed more than 51% since 22 June.

That means that it’s only down 11.5% for the year so far, despite getting caught up in the general sell-off of tech and growth shares.

The price-to-earnings ratio is still arguably quite high, sitting at 122.

The post WiseTech share price on watch as net profit rockets 80% appeared first on The Motley Fool Australia.

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• Earnings preview: Here’s which ASX shares are reporting today
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• Brokers name 2 top ASX shares to buy now

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 Zip Co Ltd (ASX: ZIP) share price will be in the spotlight this week as the company gears up to release its FY22 results.

The ASX buy now, pay later (BNPL) provider is slated to unveil its full-year report tomorrow.

While once all the rage, Zip shares have experienced an almighty fall from grace.

As the BNPL hype hit a fever pitch across the ASX, the Zip share price reached the lofty heights of $13. At these levels, the company boasted a market capitalisation of nearly $7 billion.

Fast forward 18 months and the market has well and truly fallen out of love with ASX BNPL shares. 

The Zip share price has crumbled almost 80% this year to 92 cents, giving the company a market cap of $630 million.

Shareholders will be hoping to see their fortunes turn tomorrow when Zip releases its FY22 results. 

Here’s what we know so far

Based on Zip’s unaudited quarterly reports, the ASX BNPL share’s FY22 results could look something like this.

• Total transaction volume (TTV): $8.6 billion – up 51% from $5.7 billion in FY21
• Transactions: 75 million – up 81% from 41.3 million in FY21
• Revenue: $606 million – up 55% from $392 million in FY21
• Customers: 12 million – up 64% from 7.3 million in FY21
• Merchants: 90,700 – up 77% from 51,300 in FY21

It’s worth noting that Zip completed its acquisition of QuadPay on 31 August 2020. So, the company’s FY22 results will benefit from an extra two months’ contribution from QuadPay compared to FY22.

What I’m watching in Zip’s FY22 results

When Zip hands in its full-year results tomorrow, I think the following things will be worthy of a closer look.

Unit economics

The key to a company’s sustainability, and ultimate profitability, lies in its unit economics.

For ASX BNPL players like Zip, this is all about how well they can convert the transaction value that flows through their platform into revenue. And from there, how much of this revenue they can collect from customers.

For Zip, the key metrics to watch here are the company’s revenue margin, cash cost of sales (which includes bad debts), and cash transaction margin.

In the first half of FY22, Zip’s revenue margin retreated to 6.7%, down from 6.9% in HY21.

Its cash cost of sales performance also deteriorated on the back of rising bad debt expenses. As a percentage of TTV, cash cost of sales jumped from 3.2% to 4.6%.

Ultimately, this didn’t bode well for Zip’s cash transaction margin, which subtracts cost of sales from the revenue margin. This figure stood at 2.1% in HY22, down from 3.5% in FY21, and 3.7% in HY21.

In February, management noted it was taking direct action to improve bad debt performance. Investors will be keen to see if these initiatives have been bearing fruit.

Zip has a medium-term target of achieving cash transaction margins between 2.5% and 3%.

Balance sheet health

Zip’s business model is heavily reliant on debt funding. 

And due to the nature of its services, a lot of its revenue sits in customer receivables, waiting for customers to repay their instalments. 

As a result, it’s important to pay close attention to Zip’s balance sheet.

The key line items to focus on include cash, customer receivables, and borrowings.

Investors will also be able to glean further insights from the relevant accounting notes for these line items.

Operating expenses

Zip is undeniably in a growth phase, overlooking earnings in order to chase long-term gains.

But as the company continues to burn through cash while its unit economics deteriorate, Zip has recognised something has to give.

In response, management is undertaking what has internally been dubbed Operation Blue Sky. It’s all about cutting costs in order to make the company’s operations more economically viable.

This will see the company rein in its employee expenses by $30 million, put new financial services products on the back burner, tighten new lending, and step back global expansion. 

So, Zip’s operating expenses are sure to be in the spotlight tomorrow. 

The first of these cost management initiatives kicked off in April this year, so the benefits are unlikely to meaningfully show up until FY23.

Nonetheless, investors will be hoping to see a deceleration in expenses growth tomorrow, particularly compared to the first half of FY22.

The big expenses to watch will be employee costs and marketing costs.

The post Looking to buy Zip shares? Here’s what to look for in tomorrow’s results appeared first on The Motley Fool Australia.

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• Why is the Zip share price sinking 5% on Monday?
• Why is the Block share price tumbling 6% today?
• These are the 10 most shorted ASX shares
• How does Zip’s ‘Operation Blue Sky’ stack up against Block’s battening down of the hatches?
• Why is the Zip share price behaving so strangely on the ASX today?

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

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The team at Morgans has been working hard this month analysing the seemingly endless stream of results that have been released.

Two companies that caught the broker’s eyes recently are listed below. Here’s why it thinks investors should be buying these ASX shares post-results:

Accent Group Ltd (ASX: AX1)

The first ASX share that Morgans is tipping as a buy is footwear retailer Accent.

While FY 2022 was a difficult year for the company, the broker was pleased to see that FY 2023 has started positively. And with management aiming to stop discounting and sell at full price, its analysts see scope for margin improvements.

All in all, it feels this makes the Accent share price undervalued at current levels. Morgans has upgraded its shares to an add rating with a $2.00 price target. It commented:

We upgrade from Hold to Add with an increased target price of $2.00. With customer activity showing no signs of a pullback so far in FY23 and with demand for new (and often higher priced) products running strong over the past 8-12 weeks, we have become more positive on the immediate prospects for sales growth.

AX1’s renewed focus on selling at full price will, in our view, support a recovery in the gross profit margin in FY23 back towards historical averages. We welcome AX1’s moderation of the pace of its store rollout in favour of a more selective expansion strategy focused on return on investment. We see AX1 as undervalued at the current share price.

New Hope Corporation Limited (ASX: NHC)

Another ASX share that Morgans is bullish on is coal miner New Hope. The broker was pleased with its recent update and notes that coal prices continue to surprise to the upside.

In light of this and the strong free cash flow the company is generating, it suspects that a re-rating could be in order in the near future. Particularly given its favourable dividend outlook.

Morgans has retained its add rating with an improved price target of $5.50. It commented

4Q Production/Sales were more resilient to disruption than we had feared. Coal prices continue to surprise, driving further EPS/ valuation upgrades. Valuation/target adjusts to (login to view). We think NHC can re-rate as the market awakens to the sheer scope of current cash flows and ongoing dividend upside potential. ADD.

The post Morgans names 2 ASX shares to buy post-results appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Leading brokers name 3 ASX shares to buy today
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• Why ASX 200 energy shares could still have decades of prosperity ahead: broker
• 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors that are looking to bolster their portfolio with some blue chip ASX 200 shares might want to check out the two listed below.

Both of these ASX 200 shares have recently been rated as buys. Here’s why analysts are bullish on them:

Cochlear Limited (ASX: COH)

Analysts at Morgans are positive on this hearing solutions company following the release of its full year results. The broker notes that its “FY22 results tracked our estimates and guidance.”

Looking ahead, its analysts appear confident that Cochlear’s growth can continue. It explained:

We see continued momentum, with N8 launch underpinning continued gains across Services, and ongoing recovery and backlog supporting CI growth, despite likely slower uptake, clinical capacity shifts and cloud-computing costs.

Despite juggling a lot of moving parts (eg new IT system; N8 launch; Oticon acquisition; China factory commissioning), management has a strong record of executing, coupled with improving demand, portends a solid earnings profile.

In light of this, the broker has retained its add rating with a $236.70 price target on the company’s shares. This compares favourably to the current Cochlear share price of $215.01.

Rio Tinto Limited (ASX: RIO)

Another ASX 200 blue chip share that has been given the tick of approval by analysts is mining giant Rio Tinto.

The team at Goldman Sachs remains very positive on the miner. This is due to its “compelling valuation,” with its shares trading at a sizeable discount to net asset value.

In addition, the broker believes that Rio Tinto will generate significant free cash flow and is on the cusp of returning to production growth. It commented:

Rio is a FCF story in our view, but despite challenges in 1H22, we see RIO returning to production growth in 2H22 with +6% in Cu Eq prod growth in 2023E driven by the Gudai-Darri iron ore mine and a rebound in mined copper volumes.

Goldman has a buy rating and $121.50 price target on the miner’s shares. Based on the current Rio Tinto share price of $97.66, this implies potential upside of 24% for investors.

The post Here’s why analysts say these blue chip ASX 200 shares are buys appeared first on The Motley Fool Australia.

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• How have ASX dividend shares been performing this earnings season?
• Here’s the Rio Tinto dividend forecast through to 2026
• Could this be set to boost ASX 200 iron ore shares?
• Could ASX battery minerals shares be in for a boost next month?
• 3 buy-rated ASX 200 shares that analysts love

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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 hump day, and we are right in the thick of it now with earnings season. Strap yourself in, because the torrential downpour of results from ASX shares is about to sweep through.

Here’s a quick summary of what to expect today so you have a jump on the market.

ASX shares set to report today (smallest to largest)

Rural Funds Group (ASX: RRF), $992.1 million

Netwealth Group Ltd (ASX: NWL), $3.19 billion

Iluka Resources Limited (ASX: ILU), $4.01 billion

Domino’s Pizza Enterprises Ltd (ASX: DMP), $5.81 billion

Seven Group Holdings Ltd (ASX: SVW), $6.43 billion

Lottery Corporation Ltd (ASX: TLC), $9.88 billion

APA Group (ASX: APA), $13.62 billion

Sonic Healthcare Limited (ASX: SHL), $15.93 billion

WiseTech Global Ltd (ASX: WTC), $17.30 billion

Coles Group Ltd (ASX: COL), $24.99 billion

Woolworths Group Ltd (ASX: WOW), $46.02 billion

(Market capitalisations as of 22 August 2022)

To see the complete list of ASX shares, visit our reporting season calendar here.

What to expect

Starting at the big end of town, Woolworths is expected to release its full-year results for FY22 today. Onlookers will likely be keeping a watchful eye on this ASX share to see if it has been able to pass on inflationary costs to the customer.

Analysts over at Citi are expecting $1,502 million in net profit after tax (NPAT) from Woolworths today. Furthermore, both Bell Potter and Citi currently have a buy rating on the supermarket giant.

Moving along, one ASX tech share that has managed to avoid the worst of the tech wreck is set to full-year accounts on Wednesday. According to analysts’ consensus, cloud-based logistics software provider WiseTech is expected to report $175.7 million on the bottom line.

On 15 July, WiseTech dazzled the market with its upgraded FY22 guidance. By the company’s own estimates, revenue will be between $600 million and $635 million.

Lastly, the Lottery Corporation will give the market its first taste of full-year results as a standalone ASX share.

The post Earnings preview: Here’s which ASX shares are reporting today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings results
• Earnings preview: Here are 3 ASX 200 shares reporting this week
• Considering Woolworths shares? Here’s why this key exec just jumped ship for Amazon
• Brokers name 2 blue chip ASX 200 shares to buy

Motley Fool contributor Mitchell Lawler has positions in Sonic Healthcare Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth and WiseTech Global. The Motley Fool Australia has positions in and has recommended APA Group, COLESGROUP DEF SET, Netwealth, RURALFUNDS STAPLED, and WiseTech Global. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Sonic Healthcare 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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If you’re looking for income, then the ASX 200 could be a great place to start. The benchmark index is filled with a range of quality companies that share their profits with shareholders.

Two ASX 200 dividend shares that do this and have been tipped as buys are listed below. Here’s what you need to know about them:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share to consider is Telstra.

It recently released its full year results for FY 2022 and impressed the market thanks to the success of its T22 strategy.

For the 12 months ended 30 June, Telstra posted a 4.7% decline in revenue but an 8.4% increase in underlying EBITDA to $7.3 billion. A key driver of Telstra’s earnings growth was its mobile business, which reported EBITDA growth of 21.2% or $700 million over the prior corresponding period.

The good news is that the company is now embarking on its T25 strategy, which is targeting high-teens underlying earnings per share (EPS) compound annual growth rates from FY 2021 to FY 2025.

One broker that is positive on the company is Morgans. In response to its results, the broker put an add rating and a $4.60 price target on the company’s shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 17 cents in FY 2023 and FY 2024. Based on the latest Telstra share price of $4.13, this will mean 4.1% yields for investors.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be in the buy zone is Westpac.

It is of course one of Australia’s big four banks, operating under the Westpac brand and a number of regional banking brands such as St George and Bank of Melbourne.

It could be a quality option for investors thanks to its exposure to rising rates and its bold cost reduction plans. Combined, these should be supportive of earnings and dividend growth in the coming years.

The team at Goldman Sachs certainly expect that to be the case. The broker recently upgraded Australia’s oldest bank’s shares to a conviction buy rating with a $26.12 price target.

Its analysts believe “WBC provides strong leverage to rising rates” and “will also see the benefit of higher rates play through its NIM quicker than peers.” And while the broker doesn’t expect Westpac to achieve its full cost base reduction target of $8 billion, it believes $8.9 billion is achievable, which will still be an 18% reduction.

In light of the above, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. Based on the current Westpac share price of $21.36, this represents yields of 5.75% and 6.3% respectively.

The post 2 excellent ASX 200 dividend shares that brokers love 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
• 3 ASX All Ordinaries shares trading ex-dividend tomorrow
• Is the Westpac share price a buy for the bank’s ‘surplus capital’?
• Hoping to ring in the latest Telstra dividend? Here’s what you need to do
• How have ASX dividend shares been performing this earnings season?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With ASX reporting season in full swing, S&P/ASX 200 Index (ASX: XJO) shares are declaring dividends left, right, and centre.

Once dividends are declared, there’s a cut-off date to determine which shareholders are entitled to the upcoming payment. This is known as the ex-dividend date.

As I covered yesterday, three S&P/ASX All Ordinaries Index (ASX: XAO) shares went ex-dividend on Tuesday, putting downwards pressure on their companies’ respective share prices.

Notably, the Australian Clinical Labs Ltd (ASX: ACL) share price suffered a steep 11% fall as the company’s shares no longer traded with a handsome final dividend.

When a company’s shares go ex-dividend, the share price typically falls. The extent of this drop is linked to the size of the dividend. But it varies based on sentiment and how the broader market is faring that day.

With this in mind, here are three ASX 200 shares going ex-dividend tomorrow. 

REA Group Limited (ASX: REA)

Shares in ASX 200 market darling REA are set to trade without the company’s final dividend on Thursday.

The online property business recently released its FY22 results, declaring a fully franked final dividend of 89 cents per share. This was a 24% increase on the final dividend declared in FY21.

Investors who own REA shares before the market closes tomorrow should see this final dividend land in their accounts in mid-September.

Adding in the company’s interim dividend earlier in the year, REA shares currently trade on a dividend yield of 1.3%. With the benefit of franking credits, this bumps up to 1.8%.

JB Hi-Fi Limited (ASX: JBH)

ASX retailer JB Hi-Fi is another ASX 200 share going ex-dividend tomorrow.

The company recently declared a final fully franked dividend of $1.53, up 43% on the prior corresponding period.

If you own JB Hi-Fi shares before the closing bell tomorrow, you should see this dividend payment land in your account on 9 September.

This final dividend alone spins up a dividend yield of 3.5%. But throwing the company’s interim dividend into the mix puts JB Hi-Fi shares on a sizeable trailing dividend yield of 7.3%. This grosses up to 10.4% including franking credits.

Deterra Royalties Ltd (ASX: DRR)

Last but not least, shares in mining royalties business Deterra will also be going ex-dividend on Thursday.

The ASX 200 share recently announced a final fully franked dividend of 22.08 cents per share, almost double the final dividend declared in FY21.

Shareholders on the company’s registry by the time the market closes tomorrow will see this dividend payment come through on 21 September. 

Combined with its interim dividend, Deterra’s total FY22 dividend payments add up to 33.76 cents per share, fully franked.

This puts Deterra shares on a trailing dividend yield of 7.5%, or 10.7% grossed up.

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

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings 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 recommended REA 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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