The Commonwealth Bank of Australia (ASX: CBA) share price will be one to watch closely on Wednesday.

This follows the release of the banking giant’s full year results this morning.

CBA share price on watch amid strong cash profit growth

• Revenue up 3% year over year to $25,143 million
• Net profit after tax up 6% to $10,771 million
• Cash earnings up 11% to $9,595 million
• Fully franked final dividend of 210 cents per share
• Net interest margin (NIM) down 18 basis points to 1.9%
• CET1 ratio of 11.5%

What happened in FY 2022?

For the 12 months ended 30 June, CBA reported a 3% increase in revenue to $25,143 million and an 11% lift in cash earnings to $9,595 million.

This was driven by a solid operational performance and volume growth in core businesses, as well as sound credit quality and the reduction of provisions related to COVID-19. The bank’s operating expenses fell 1.5% to $11,190 million.

In respect to volume growth, CBA reported home lending growth of 7.4% (but 0.9 times system growth), household deposit growth in line with system at 13.2%, business lending growth of 13.6%, and business deposit growth of 15.1%. The latter two were 1.3 times and 1.4 times system growth, respectively.

CBA’s NIM declined 18 basis points year over year to 1.9%. This was due to a large increase in low yielding liquid assets and lower home loan margins. The good news, though, is that management’s medium term outlook remains unchanged. It expects margins to increase in a rising rate environment.

In light of the above, the CBA board declared a final fully franked dividend of 210 cents per share. This will be payable on or around 29 September to shareholders on the company’s register at the close of play on 18 August. For the full year, this brought the CBA dividend to 385 cents per share, which was up 10% year over year.

How does this compare to expectations?

The good news for the CBA share price is that this result appears to have come in largely ahead of expectations.

According to a note out of Goldman Sachs, its analysts were forecasting cash earnings of $9,509 million and a fully franked dividend of 380 cents per share in FY 2022.

Based on this, CBA has beaten on both cash earnings and dividends.

Management commentary

CBA’s Chief Executive Officer, Matt Comyn, was pleased with the company’s performance. He said:

By focusing on serving our customers and maintaining disciplined operational and strategic execution, we have delivered a strong financial result for our shareholders.

We have focused on strengthening our customer engagements and relationships, and this has resulted in further growth in our core deposit and lending volumes to retail, business and institutional customers.

Our operating performance was higher as a result of this continued volume growth and profitability was further supported by sound portfolio credit quality.

In respect to its credit quality, CBA’s loan impairment expense decreased $911 million in FY 2022 to a benefit of $357 million. This was driven by reduced COVID-19 overlays, partly offset by increased forward-looking adjustments for emerging risks including inflationary pressure, supply chain disruptions, and rising interest rates.

Outlook

Comyn was cautiously optimistic on the future. He commented:

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

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

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

The post CBA share price on watch after FY22 cash earnings jump to $9.6bn appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Block, CBA, Mesoblast, and NAB shares are dropping today
• Why is the CBA share price having such a strong start to the week?
• Own CBA shares? Here’s what to expect from the bank’s FY22 results
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?

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

from The Motley Fool Australia https://ift.tt/xX3Meuk

On Tuesday, the National Australia Bank Ltd (ASX: NAB) share price came under pressure.

The banking giant’s shares ended the day 3% lower at $29.81 after its third quarter update disappointed.

Is the NAB share price weakness a buying opportunity?

The good news is that the team at Goldman Sachs believe the NAB share price offers plenty of value for investors.

According to a note this morning, the broker has retained its buy rating and $34.37 price target on the bank’s shares.

Based on the current NAB share price, this implies potential upside of 15.3% for investors over the next 12 months.

In addition, the broker is forecasting a $1.50 per share dividend in FY 2022 and a $1.69 per share dividend in FY 2023. This represents fully franked yields of 5% and 5.7%, respectively, for investors.

What did the broker say?

Goldman Sachs was reasonably pleased with NAB’s quarterly update. And while it notes that the bank’s third quarter performance is run-rating a touch behind its full year expectations, it believes that recent cash rate rises will boost its fourth quarter performance and bring the bank back in line with its estimates.

It commented:

NAB has released its 3Q22 trading update, with unaudited cash earnings from continuing operations of A$1.80 bn (includes the impacts of the Citi acquisition), up 3% on the previous period average, run-rating 2% below what is implied by our current 2H22E forecasts.

The lower than expected performance was driven by weaker revenues partially offset by lower expenses and BDDs. PPOP was also up 3% on the previous period average, and 2% behind GSe.

While the operating metrics appear weaker than what is implied by our 2H22E forecasts, we are not surprised by this given the back-end nature of the cash rate rises in 3Q, which will therefore particularly benefit 4Q. We would therefore see the operating performance of today’s update as broadly consistent with our current FY22E forecasts.

The post Is the NAB share price a buy following the bank’s latest update? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Block, CBA, Mesoblast, and NAB shares are dropping today
• NAB share price lags other ASX 200 banks following quarterly update
• NAB share price in focus following $1.8bn Q3 cash profit and cost growth revision
• 5 things to watch on the ASX 200 on Tuesday
• Here is the RBA interest rate outlook according to ASX 200 banks

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

from The Motley Fool Australia https://ift.tt/Buk0Njp

Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be quality options.

Analysts have recently rated these dividend shares as buys. Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to look at is baby products retailer Baby Bunting.

It could be a top option for income investors thanks to its leadership position in a less discretionary category.

It is for this reason and its recent expansions into new categories that the team at Citi are very positive on the company and have a buy rating and $6.22 price target on its shares. They believe Baby Bunting is “well placed to outperform the broader small cap retail sector this year” and its “growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.88, this will mean yields of 3.3% and 3.9%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that is highly rated is Wesfarmers. It is the conglomerate behind a collection of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

The team at Morgans are very positive on the company. They believe Wesfarmers is well-placed to navigate the tough retail environment due to its value offering. Morgans also likes the company due to it having “one of the highest quality retail portfolios in Australia” and a “highly regarded management team.”

The broker currently has an add rating and $58.40 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $47.57, this will mean yields of 3.5% and 3.8%, respectively.

The post 2 excellent ASX dividend shares experts rate as buys appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s impacting ASX 200 retail shares today?
• What are you getting when you buy Wesfarmers shares on the ASX today?
• 2 ASX 200 dividend shares analysts rate as buys
• What’s impacting the Wesfarmers share price on Thursday?
• Why is the Wesfarmers share price beating the ASX 200 today?

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

from The Motley Fool Australia https://ift.tt/Za72IgB

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a volatile day but eventually closed it with a small gain. The benchmark index rose 0.1% to 7,029.8 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to tumble

The Australian share market looks set to have a difficult day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 40 points or 0.6% lower this morning. On Wall Street, the Dow Jones fell 0.2%, the S&P 500 dropped 0.4%, and the Nasdaq sank 1%.

Oil prices soften

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$90.52 a barrel and the Brent crude oil price has fallen 0.35% to US$96.30 a barrel. This was driven by optimism that Iran may boost its crude exports.

CBA results

The Commonwealth Bank of Australia (ASX: CBA) share price will be one to watch this morning when the banking giant releases its full-year results. According to a note out of Goldman Sachs, following the bank’s update on one-offs earlier this week, its analysts are now forecasting cash earnings of $9,509 million for FY 2022. This will be a 9.9% increase on the prior corresponding period. The broker expects this to underpin a full year fully franked dividend of 380 cents per share.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price traded higher overnight. According to CNBC, the spot gold price is up 0.3% to US$1,810.90 an ounce. Traders were buying gold after the the US dollar softened.

Computershare results and guidance

The Computershare Limited (ASX: CPU) share price could be on the move on Wednesday after the stock transfer company released its full year results following yesterday’s close. For the 12 months ended 30 June, Computershare reported a 12.2% increase in management revenue to $2.6 billion and a 10.6% lift in management earnings per share (EPS) to 58.03 cents. Looking ahead, the company is guiding to massive management EPS growth of 55% in FY 2023.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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

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

More reading

• ASX 200 energy shares mixed amid bearish oil price outlook
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why Block, CBA, Mesoblast, and NAB shares are dropping today
• In this most volatile of years, the ASX 200 is within shouting distance of turning positive

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

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

Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the ones listed below that have recently been named as buys.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is a leading appliance manufacturer which has been growing at a consistently solid rate for many years. This has been underpinned by its investment in research and development and international expansion.

The good news is that these drivers are still in place and are expected to support further solid growth over the next decade.

It is partly for this reason that the team at Goldman Sachs currently rate Breville as a buy with a $23.40 price target on its shares.

Goldman commented:

We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be a top option for investors is Treasury Wine. It is one of the world’s leading wine companies and the name behind a range of popular brands including Penfolds, 19 Crimes, and Wolf Blass.

After going through a difficult period due to being effectively kicked out of China, Treasury Wine has bounced back strongly.

The good news is that analysts at Morgans believe the company’s growth is only just beginning. As a result, it has put an add rating and $13.93 price target on its shares.

Morgans explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

The post 2 excellent ASX growth shares to buy now according to brokers appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares to buy for a post-COVID resurgence: experts
• Winner winner chicken dinner: Expert names 2 ASX shares to buy now
• Here are the top 10 ASX 200 shares today
• Morgans name 3 of the best ASX shares to buy in August

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 Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The drill went into overdrive as the Aldoro Resources Ltd (ASX: ARN) share price jumped up by as much as 34% in intraday trade on Tuesday. 

The ASX lithium share closed at 26.5 cents a share, a 20.45% gain after hitting an intraday high of 29.5 cents apiece.

The rally was likely sparked by the company releasing an update on its drilling programme at the Wyemandoo Critical Metal Project in Western Australia.

Drilling results

Aldoro identified key lithium-rubidium targets after completing a total of 29 RC holes for 3,198 metres that ranged from 84 to 201 metres in depth. These holes intersected pegmatites at a range of intervals, the company said.

Aldoro advised many of these intersections have been interpreted as moderately dipping dykes orientated to the northwest or flat-lying sills. 

Quarterly results 

Aldoro has built solid momentum after releasing its quarterly results for the three months ended June 2022 on 27 July.

This update provided a substantial list of drilling results. One key highlight was the engagement of pegmatite processing expert Professor Zhiguo He.

He is conducting a commercialisation review that’s expected to take eight months. The company said an initial shipment of ~300 kilograms of sample ore has been consigned to Professor He in China.

Also in last month’s update, the company advised it had completed a placement of 9.2 million shares priced at 25 cents, raising a total of $2.3 million. 

The purpose of this capital raising was to provide funds to progress the drill program at the Wyemandoo Rb-Li Project. 

This may be why the Aldoro share price has been on a rally of late.

Aldoro share price snapshot

In the last 12 months, this ASX lithium share has fallen by 51%, shedding 36% year to date.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has dropped 7% in a year and 5.6% in 2022 so far.

Aldoro has a market capitalisation of $26.4 million at the time of writing. 

The post This ASX lithium explorer just had a new find, and its share price rocketed 20% appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Pilbara Minerals share price has powered 28% higher in a month. What’s been happening?
• ‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert
• Why did the Vulcan Energy share price fire 5% higher today?
• ASX 200 energy shares mixed amid bearish oil price outlook
• Why the Charter Hall Long WALE REIT share price isn’t rocking the boat

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

from The Motley Fool Australia https://ift.tt/P8K4lLF

The Pilbara Minerals Ltd (ASX: PLS) share price has been rocketing in the last weeks. Over the past month, it has risen by 27.66%.

It has delivered strong outperformance compared to the S&P/ASX 200 Index (ASX: XJO) which has only risen 5.27% over the same time period.

Of course, Pilbara Minerals isn’t the only business that may be viewed as an ‘ASX growth share’ which has seen a strong rise over the past month.

In the last month: the Xero Limited (ASX: XRO) share price has risen 14%, the Temple & Webster Group Ltd (ASX: TPW) share price has gone up 35% and the Altium Limited (ASX: ALU) share price has risen 10%.

Part of Pilbara Mineral’s rise may simply be down to the fact that other growth names have also been rising.

Perhaps investors thought that a number of growth names had been sold off too much?

Can strong lithium prices affect the Pilbara Minerals share price?

One of the most important things to remember about commodity businesses is that their revenue, cash flow and net profit after tax (NPAT) are all heavily affected by what the resource price is.

It costs a commodity business roughly the same to produce its resource, whether the commodity price is a bit higher or lower, aside from higher payments to the government when prices are stronger.

Last week, Pilbara Minerals said that it continues to benefit from strong lithium prices.

The ASX lithium share’s eighth Battery Material Exchange (BMX) auction was for a cargo of 5,000 dry metric tonnes (dmt) at a target grade of 5.5% lithia. The highest bid was US$6,350 per dmt, which on a pro rata basis for lithia content (including freight costs) equates to a price of around US$7,012 per dmt.

Pilbara Minerals said:

Strong continues to be received in both participation and bidding by a broad range of qualified buyers with a total of 67 bids received online during the 30-minute auction window.

What do analysts think?

The broker Macquarie has an outperform rating on the Pilbara Minerals share price, with a price target of $4. That implies a possible rise of 33%.

Macquarie thinks that more output from the company’s Ngungaju can help boost sales on the BMX and lead to pleasing cash flow in the coming years.

The broker thinks that profit is going to ramp up over the next couple of years. Its estimates put the Pilbara Minerals share price at 14 times FY22’s estimated earnings and under six times FY23’s estimated earnings.

Ord Minnett also thinks that Pilbara Minerals is a buy, with a price target of $3.50. That implies a possible rise of around 17%.

Pilbara Minerals share price snapshot

Pilbara Minerals shares have dropped by 6% since the beginning of the year, though it has risen around 50% since mid-June.

The post The Pilbara Minerals share price has powered 28% higher in a month. What’s been happening? appeared first on The Motley Fool Australia.

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

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

More reading

• Could this development further energise ASX lithium shares in FY23?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Top brokers name 3 ASX shares to buy next week
• Why is the Pilbara Minerals share price having such a strong end to the week?
• Here are the 3 most heavily traded ASX 200 shares on Friday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Temple & Webster Group Ltd, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Macquarie Group Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/7XU09nz

S&P/ASX 200 Index (ASX: XJO) dividend shares are back in vogue as rising interest rates put the brake on the rapid share price growth investors enjoyed in recent years.

But if you’re on the hunt for dividends from your ASX portfolio you need to do more than simply look at what the companies paid out over the past year.

Investors need to gauge future earnings

Those quoted yields you see on company pages are trailing yields. In other words, backwards looking. And while some ASX 200 dividend shares that offered high yields in FY22 may do so again in FY23, others may not be able to do so.

While gauging future earnings inevitably comes with uncertainties about what the future holds, some research into potential revenue growth, including asset sales, can help investors avoid so-called dividend traps.

With that in mind, we look to one ASX 200 dividend share that Michael Maughan, head of the Tyndall Australian Share Income Fund, believes will deliver “material returns to shareholders” in the year ahead.

ASX 200 dividend share with assets to sell

Asked by Livewire which ASX 200 dividend shares he believes will continue to pay out sustainable yields in the future – from a list that included the big banks and iron ore giants – Maughan singled out Telstra Corporation Ltd (ASX: TLS).

“The banks are in a period where they do have a positive tailwind,” Maughan said. Adding that, “The more exciting part of that group is Telstra.”

According to Maughan:

It’s had a change in the short term to its core business and it’s returned to growth. The mobile business is growing and the headwinds from the NBN are behind it. And over the medium term, it’s probably one of the few companies we expect will have capital management and material returns to shareholders from asset sales.

Maughan pointed out that Telstra’s recent sale of its Towers business resulted in a billion dollar plus share buyback. And he thinks there’s more to come:

This is because Telstra has fixed infrastructure assets it’s looking to sell. If you go back to when they sold their Towers business, that was a return of over a billion dollars to shareholders. And the fixed assets are more than five times the size of that.

Following Telstra’s half year report in February, the board of the ASX 200 dividend share declared a fully franked interim dividend of 8 cents per share, with a 6 cent ordinary dividend and a 2 cent special dividend. This saw some $940 million returned to shareholders.

Telstra reports its full financial year results this Thursday, 11 August.

The post ‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘Wouldn’t have been on my radar previously’: Why WAM likes Telstra shares right now
• Looking to buy Telstra shares? Here’s what to watch when the telco giant reports this week
• Own Telstra shares? Here’s what to expect from its FY22 results
• Road to retribution: Can the Telstra share price continue its upwards trajectory under a new CEO?
• Expert says Telstra is a blue chip ASX 200 share to buy

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

from The Motley Fool Australia https://ift.tt/7i9xojv

It’s was another strong day for the Vulcan Energy Resources Ltd (ASX: VUL) share price, continuing to rebound from its recent lows.

Shareholders will be pleased that the clean lithium developer’s shares moved further away from its 52-week low of $4.76 reached in late June.

At market close on Tuesday, Vulcan Energy shares finished up 5.23% to $8.85 apiece – still some way off its year-to-date high of $11.18 on 4 January.

Let’s take a look at what is driving these recent gains.

Vulcan Energy shares stage a mini comeback. But can it last?

Investors are bidding up the Vulcan Energy share price as the sector recovers from the fallout induced by Goldman Sachs in June.

It appears that the market has shrugged off the bearish news and is focused ahead on Wall Street’s earnings season.

Interestingly, the major averages have rallied this month on the back of better-than-expected results.

This has driven the Dow Jones higher along with the ASX following closely behind.

For context, the S&P/ASX 200 Materials (ASX: XMJ) sector touched a daily high of 16,184 points, up 1% before slowly retracing today.

With Vulcan Energy shares accelerating, it’s worth pointing out that its relative strength index (RSI) is currently around 72.

The RSI is a momentum oscillator that is used to assess the strength or weakness of a share price. Normal levels range between 30 and 70, as anything outside reveals if the share price is attractive to buy, or expensive.

In this case, Vulcan Energy shares are showing signs of being overbought and a pullback may happen sometime soon.

Vulcan Energy hare price snapshot

Bearish sentiment mixed with volatility has led the Vulcan Energy share price to fall 35% over the last 12 months.

The company’s shares reached an all-time high of $16.65 in September 2021, before moving on a downward channel.

Whether it can regain these highs largely depends on the price of lithium as well as Vulcan Energy’s progression on its Zero Carbon Lithium Project.

Based on today’s price, the company commands a market capitalisation of around $1.27 billion.

The post Why did the Vulcan Energy share price fire 5% higher today? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Lithium alert: Broker says Vulcan share price could rise by 170%
• Charging up: Vulcan share price lifts 3% as cash balance surges
• Why Myer, South32, Vulcan, and Zip shares are racing higher
• Why is the Vulcan share price charging higher today?
• Why is the Vulcan Energy share price leaping 7% on Thursday?

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

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

The share prices of major energy companies inside the S&P/ASX 200 Index (ASX: XJO) were various shares of green and red on Tuesday. This followed the posting of a bearish outlook for the price of oil from one broker.

What happened?

According to Bloomberg, the indexes for WTI crude oil and Brent crude are down 0.65% and 0.61%, respectively. WTI crude sells for US$90.17 per barrel, and Brent crude sells for US$96.06 per barrel.

Today, The Australian reported on the analysis provided by Citi for the reduced demand for oil. Citi stated that the United States’ demand for oil is heading towards 20-year lows. This is amidst a lack of a US ‘driving season’ due to higher petrol prices, with more people choosing to stay home.

Furthermore, analysts at Citi said that a recession could lead to a further decline in the demand for commodities.

Let’s examine how Australia’s main energy companies reacted to this bearish outlook.

How did ASX 200 energy players hold up today?

Firstly, let’s take a look at the ASX 200 energy shares that managed to finish in the green. Substantial gains across the oil-exposed sector were sparse, with Viva Energy Group Ltd (ASX: VEA) being one of few to post a positive return of more than 3%.

Meanwhile, Woodside Energy Group Ltd (ASX: WDS) was one other big oil and gas name that conjured up a green day. The energy giant finished 0.47% higher, trading near the top end of its 52-week range. Shares in the company are now sitting at $31.90 apiece.

On the flip side, the valuation of Santos Ltd (ASX: STO) took a small hit with the share price contracting 0.28%.

The biggest loser today out of the three was Ampol Ltd (ASX: ALD), recording a loss of 0.96%.
Overall, the S&P/ASX 200 Energy index finished up in the green with a slight gain of 0.13%.

The post ASX 200 energy shares mixed amid bearish oil price outlook appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 2 little-to-no-debt ASX 200 shares to buy in a downturn: fundie
• Leading brokers name 3 ASX shares to buy today
• Why is the Woodside share price having such a strong start to the week?
• 5 things to watch on the ASX 200 on Monday

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

from The Motley Fool Australia https://ift.tt/0eGpKfP