What a rollercoaster it has been for the Zip Co Ltd (ASX: ZIP) share price.

After hitting a record high of $14.53 in February 2021, shares in the embattled buy now, pay later (BNPL) company are down big time.

Just last month, investors shook their heads in disbelief as the Zip share price hit a multi-year low of 43.5 cents. To put that into perspective, it’s a 95% loss from the same time last year.

Since then, the company’s shares have recovered some ground to finish at 54 cents at yesterday’s market close.

Investors appear to have liked the decision not to proceed with the Sezzle acquisition, with the Zip share price up 8% since the announcement on Tuesday.

Zip share price volatility amid market turmoil

Extreme volatility on the back of inflationary movements and rate hikes has put selling pressure on the Zip share price.

For context, the S&P/ASX 200 Financials Index (ASX: XFJ) has shed almost 10% in 2022 following the broader sell-off.

A perfect storm of the above macroenvironmental factors is causing havoc with investors running for the hills.

It appears there are particular concerns about Zip’s books and whether there is an upside for the BNPL industry.

In the company’s FY22 first-half results, management reported a staggering loss before tax of $214.2 million for the period.

This was despite revenue increasing by 89% to $302.2 million, underpinned by growth in transaction volumes.

However, the spotlight on Zip’s bad debts and credit losses seems to be weighing down investor sentiment.

This metric stood at $148.3 million compared to the $29.5 million written off in H1 FY21 – a 402.7% increase.

Cash on hand also dwindled by 19% to $266.8 million.

Whether or not management can turn around the company’s fortunes remains to be seen.

Some experts are anticipating that the BNPL sector will fall further this year as tighter regulation looms.

The Australian Government wants to treat BNPL products the same as other credit products.

If adopted, this would likely put a financial strain on Zip’s balance sheet as extra lending checks would need to be ticked off.

What do the brokers think?

Despite the current economic climate and possible regulation, some brokers believe the Zip share price is undervalued.

According to ANZ Share Investing, Morgans cut its price target by 32% to 86 cents apiece on the BNPL’s shares.

On the other hand, Jefferies had a more bearish outlook, massively chopping its rating on Zip by 62% to a share price target of 38 cents.

Factoring in the above, while Zip shares have slightly rebounded for now, further falls could be on the way. Especially if the government’s plan to close the loophole in the national credit code succeeds.

The post Has the Zip share price finally hit rock bottom? appeared first on The Motley Fool Australia.

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

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

More reading

• Is the Zip share price going to take off?
• What’s the outlook for ASX BNPL shares in FY23?
• Sezzle shares plunge another 16%, now down 60% in a week
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• Are falling BNPL shares pushing the ASX banks higher today?

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 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.

from The Motley Fool Australia https://ift.tt/4M1Zcvk

The Adairs Ltd (ASX: ADH) share price could be an opportunity ripe for the picking, according to experts.

It has been a tough time for the ASX retail share which has lost more than 40% in value over 2022 to date.

However, one expert feels that the fall has been too hard and now the company is an opportunity.

There’s no way of truly knowing what is going to happen next on the share market unless you have a crystal ball. Mine isn’t working at the moment.

But, as investors, we have to decide whether opportunities are good value and worth pursuing, or not.

UBS is a broker that sees substantial upside for the Adairs share price over the next year.

Broker rating on the Adairs share price

UBS rates Adairs a buy with a share price target of $3.70. That implies a possible rise of over 60% if the broker ends up being right.

Why does the broker see so much potential growth? A key part of the investment thesis is the cheap price-to-earnings (P/E) ratio. That’s the multiple of earnings that the Adairs share price is valued at.

At the current Adairs share price, UBS thinks it’s valued at around eight times FY23 estimated earnings.

However, the broker does acknowledge that the wider economic impacts of rising inflation and interest rates could hurt Adairs’ revenue and profit. Profit margins may settle at a lower level.

But, not every expert is convinced. Morgans recently shifted its rating to hold, on expectations of a tough retail environment because Aussies will have less money to spend on the products that Adairs sells.

Even so, Morgans also thinks that Adairs has a low P/E valuation and it could pay a pretty large dividend. Morgans’ numbers put the Adairs share price at seven times FY23 estimated earnings with a potential grossed-up dividend yield of 11.3%.

What’s Adairs working on?

The Adairs share price could be influenced by some of the retailer’s business plans for FY23 and beyond.

They recently acquired the Focus on Furniture business, giving Adairs greater access to the bulky furniture category (an $8 billion market). It plans a store rollout, online growth, and category and range expansion.

For the Adairs brand, the company wants to grow its store count and upsize some stores, expand its membership numbers, and broaden its range.

With Mocka, the online furniture business, Adairs wants to increase brand awareness, grow its range, and add a physical presence.

In FY23, Adairs will be cycling against periods of FY22 when there were lockdowns.

What is next?

Unless the business reveals a trading update or something else before earnings season, the next major update should be the FY22 result and probably a trading update for the first few weeks of FY23.

Adairs share price snapshot

Over the past month, the Adairs share price has risen by 33%. This compares with an 0.93% rise in the S&P/ASX All Ordinaries Index (ASX: XAO).

The post Why the Adairs share price could be a bargain in FY23 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

• Does the FY23 outlook make ASX retail shares look like bargains?
• What were some of the key lessons for ASX investors in FY22?
• What caused the Adairs share price to halve in FY22?
• Why did the Adairs share price fall 18% in June?
• Best ASX shares to buy in July 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool 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/I1RGJsP

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has dropped by around 15% since 30 May. It closed yesterday’s session down 2.23% to $21.93.

How are things looking for 2023?

The 2022 financial year has just finished for most businesses and individuals, however, ANZ has a different financial calendar that ends on 30 September.

While ANZ’s FY22 may not have finished, it could be a useful idea to think about what could happen in the short to medium term for the bank.

ANZ is one of the big four ASX banks alongside Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC).

However, just because it’s a big four bank doesn’t mean that it can’t suffer sizeable share price falls and be impacted by the wider economic environment.

Let’s look at what could happen over the next year.

Acquisition talk 

In just the past few days, ANZ confirmed that it was in discussions with private equity group KKR about potentially buying the accounting software business MYOB. ANZ told the market that it hasn’t reached an agreement yet with KKR and there is no certainty it will proceed.

However, if it did it is possible that it could help ANZ’s business division by working more closely with business customers.

Another acquisition that ANZ is interested in is the banking division of Suncorp Group Ltd (ASX: SUN), according to reporting by the Australian Financial Review (AFR).

ANZ reportedly has a team talking to Suncorp about its banking division, which could potentially be put up for sale. The deal could add “scale at a time when it has struggled to catch up to its larger rivals.”

How much scale? It would add $60 billion in customer loans, with around 80% of that being mortgages. It would also geographically add more exposure for ANZ to the markets of Queensland and NSW.

What’s dragging on the ANZ share price?

ANZ and other banks have seen their share prices drop after the latest moves by the Reserve Bank of Australia (RBA) to increase interest rates.

It may be strange to see that the banks are suffering when lower interest rates were supposedly hurting their profitability.

As Macquarie and other brokers have pointed out, while higher interest rates should help the banks’ net interest margins (NIM), the problem is that if interest rates go too high too quickly, it could lead to rising arrears and bad debts, which would detract from profits.

What are the brokers‘ thoughts on the ANZ share price?

A price target indicates where a broker thinks a share price will be in 12 months from now.

Macquarie currently rates ANZ as neutral with a price target of $23.50. As mentioned, it’s concerned about potential impairments and how higher interest rates will impact growth.

The broker Morgan Stanley is currently equal weight on the big four ASX bank, with a share price target of $24.30. It also recognises that bad debts are likely to increase.

However, Ord Minnett is more positive on the bank with a price target of $28.30. It’s positive about the prospect of a rising NIM.

All of these brokers are expecting sizeable dividends from ANZ.

For example, Ord Minnett has projected a grossed-up dividend yield of almost 10% in FY23.

The post What’s the outlook for the ANZ share price in 2023? 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

• Analysts name 2 ASX dividend shares to buy with 5%+ yields
• Why might ASX-listed ANZ want to snap up MYOB?
• Surprise US inflation pumps the brakes on ASX 200 bank shares
• What’s the outlook in FY23 for ASX 200 bank shares?
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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/RKbrSWk

Okay, we get it. Inflation is high so interest rates need to rise.

But after a whopping 125 basis point increase over the past couple of months, grocery bills surging, record-high petrol prices and a pummelling of our ASX shares, isn’t that enough pain?

Surely putting people through such financial stress can’t be good for the economy either?

AMP Ltd (ASX: AMP) chief economist Dr Shane Oliver explored this very dilemma this week.

“Many are still questioning why central banks need to do much – what will RBA rate hikes do to bring high lettuce prices back down?” he said on the AMP blog.

“And that central bank worries about wages growth picking up causing a wage-price spiral are just a baby boomer fantasy. So just sit it out.”

Authorities are scarred by the 1970s

The reason why central banks want to kill off inflation at any cost is because of the experience from the 1970s.

There were a bunch of reasons for inflation creeping up high that decade in Australia and the United States.

According to Oliver, the problem was exacerbated in Australia with wages growth of more than 20% and huge fiscal stimulus in 1974.

“The automatic indexation of wages to inflation from 1975 just helped lock in high inflation,” he said.

“The end result was a decade of high inflation and high unemployment.”

Unfortunately, central banks and governments did not help the situation.

“The problem was that policymakers were too slow to realise the extent of the inflation problem initially and then were too quick to ease which enabled inflation to quickly pick up again and move higher,” said Oliver.

“The longer inflation persisted the more inflation expectations rose – with wage growth rising – making it harder to get inflation back down.”

Will we go back to the future?

So how can 2022 turn into the 1970s?

Labour markets are once again very tight. In the US, wages growth has burst out to about 5%, while Australia’s unemployment rate is now at a 48-year-low of 3.5%.

The war in Ukraine has resulted in supply shocks for both food and energy, which have surged in price. In Australia, the east coast floods have added to the food inflation.

Recent geopolitics and the COVID-19 pandemic have changed the way nations and corporations conduct business.

“The globalisation that followed the end of the USSR and trade with China is under threat and appears to be reversing, not helped by a desire to onshore supply chains.”

Decarbonisation of economies are also boosting short-term capital spend and demand for certain metals.

Also, authorities are just coming out of a long period of low inflation.

“Policymakers were caught focussing on the last war of disinflation coming out of the pandemic just as they were in the 1960s when the big fear was a return to 1930s deflation,” said Oliver.

“This saw massive fiscal stimulus and money supply growth.”

Inflation leads to inflation expectations, which is dangerous

All these reasons are why central banks are so determined to blunt inflation, even if it means our ASX shares take a beating and economies might even fall into recession.

Inflation is running around 9% in the US and Europe, while in Australia it’s estimated to be about 6%.

“And, as we saw in the 1970s, the longer it remains high the more businesses and workers will expect it to remain high and they will plan accordingly,” said Oliver.

“That is, inflation expectations will move up, which will make it harder to get inflation back down.”

Central banks can’t bring down the cost of lettuce or unleaded fuel. But they’re correct in trying to do whatever they can to dampen demand, according to Oliver.

“They are right to have moved to a more aggressive strategy as it will slow demand and by stressing that they are committed to returning inflation to target will help keep inflation expectations down.”

Oliver is optimistic that the authorities will be successful and that the world will not slip into the awful stagflation spiral of the 1970s.

“Longer-term inflation expectations remain low (at 3.1% in the US compared to nearly 10% in 1980) and wages growth is still relatively low, suggesting it should be easier to bring inflation down than it was in 1980,” he said.

“While inflation may not go back to pre-pandemic lows and the longer-term tailwind for investment markets from ever lower inflation and interest rates may be behind us, a full-on return to the 1970s malaise looks unlikely.”

The post Why interest rates need to rise despite ASX carnage: economist 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 did the AMP share price fall 13% in FY22?
• What dragged the AMP share price down 13% in June?
• ASX bank shares look out, AMP has new tech under the hood
• Down 10% in a month, here’s the latest for the AMP share price
• Will Australia plunge into a recession?

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 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/dO0N5wY

Rising inflation and interest rates have probably got you thinking about the potential impact on your wallet.

It’s certainly crossed my mind. So I spent time thinking about ways to stretch my family’s money further.

I’ll note that it was also important to me and my wife to have money left over for savings and/or investments.

So, here are some ways that I’m saving money.

Budget 

First and foremost, I got a budget going. 

I used a free budget template on Google Sheets which I found here. At the top right of the page, click “Template Gallery” and I chose the “Monthly Budget” option.

I got pretty precise with my estimates, using actual figures I came up with by analysing my bank statements from the past 12 months. In reality, however, using ‘reasonable estimates’ is a good starting point to seeing where your money goes each month.

You’ll probably be surprised at how much you’re spending on some items, which could be a perfect starting point to make savings!

Put away for big expense items 

I think this is a big one for most people. One month (or week, or fortnight – whatever your schedule for getting paid is) you seem to have plenty of spare cash to spend, and the next you’re back in the red. The culprit: a large land tax payment, a child’s birthday, or a car registration. Sometimes you can split these payments into more manageable bites, but others you can’t. When that’s the case, set cash aside regularly for these payments.

For example, if you expect your land rates bill to be $1,500 for the year, that’s $28.85 per week or $125 per month. Sure, it’s still a decent chunk of change, but either of those options are probably more bearable than a $1500 lump-sum payment.

So, list these big-ticket items in your budget. Add up the total annual amount due for those and chip away at them through the year. In effect, you’re smoothing out your expenses and setting yourself up for a better routine.

Choose annual payments

This mightn’t suit everyone, but where possible I’ve changed my subscriptions to the ‘annual’ payment option. 

Take Disney+ – a streaming service from Disney (NYSE: DIS) which my kids love – as an example. It’s currently $11.99 per month, or $119.99 for the year, which works out to be $10 per month – a saving of 16.6%. Then, in the months between, I’m putting away $10 per month into a separate account (just like I am for the land rates bill and water bills, etc.) to make sure I’ve got the money set aside for next year’s payment.

In doing so, though, it’s important to be careful not to create a cash-flow problem for yourself in the immediate future.

Find discounted alternatives

Human beings are typically a pretty routine species. We find something that works and often stick with it for simplicity. But that habit might be costing you. 

Here’s an example. To buy a 48-pack of nappies costs us $32 at Woolworths (ASX: WOW). I decided to check out prices on Amazon (NASDAQ: AMZN)’s store. Not only was it cheaper, I could get them even cheaper still by setting up a recurring purchase of that item. You won’t be able to do that for everything, but it’s worth a look for some of your more regular purchases.

Identify other habits

Speaking of habits, it could be worth looking into habits elsewhere in your life. Our grocery bill is typically pretty large. One way we can cut that back is changing what I have for lunch. I was regularly buying pre-made salads from Woolworths for simplicity at $6 a pop. It’s convenient, sure, but I can make something just as healthy (if not healthier) for less.

Invest in yourself

From the get-go, I figured out what my family’s monthly income was expected to be. After I accounted for the absolute top-priority payments (e.g. any debt repayments), I calculated what 10% of that total income would be and committed that to savings and/or investments.

This takes discipline and it could well require you to cut out some other expenditures that you deem to be less necessary. 

But this is an important step. After all, very few of us want to work forever. Saving money effectively buys you flexibility with your time – maybe not today, but in the future.

Interest rates are going up, which means any cash saved could earn a higher return. Perhaps even more opportunistic is the fact that the stock market has also come down, affording those people with a long-term time horizon an opportunity to buy shares at very attractive prices. 

If you can commit to setting aside a certain amount of money each week, fortnight, or month, doing so could be an excellent way to reward the future you.

The post Here’s how I’m saving money, despite higher inflation & interest rates 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

• Why interest rates need to rise despite ASX carnage: economist
• 5 things to watch on the ASX 200 on Friday
• Analysts name 2 ASX dividend shares to buy with 5%+ yields
• Sayona shares sail 8% ahead amid government’s call to secure energy supply
• Why might ASX-listed ANZ want to snap up MYOB?

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 Ryan Newman 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 Alphabet (A shares), Alphabet (C shares), Amazon, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Walt Disney. 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/YAv0F1D

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.45% to 6,650.6 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 53 points or 0.8% lower this morning. In the United States, the Dow Jones fell 0.45%, the S&P 500 dropped 0.3%, and the Nasdaq traded flat.

Oil prices edge higher

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices edged higher. According to Bloomberg, the WTI crude oil price is up 0.15% to US$96.44 a barrel and the Brent crude oil price is up 0.25% to US$99.81 a barrel. Supply concerns boosted prices.

Rio Tinto’s quarterly update

The Rio Tinto Limited (ASX: RIO) share price will be on watch this morning when the mining giant releases its second quarter and first half production update. According to a note out of Goldman Sachs, its analysts expect quarterly iron ore shipments of 78.7 Mt and the consensus estimate is for 79.3Mt. The market will also be listening out for commentary on cost inflation.

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a tough finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.6% to US$1,708.20 an ounce. Growing US Fed rate hike bets weighed on the safe haven asset.

AVZ shares poised to return

AVZ Minerals Ltd (ASX: AVZ) shares are poised to return from their lengthy suspension on Friday morning. This embattled lithium developer is currently fighting legal action from a Chinese company that claims it owns a stake in the Manono Lithium project. If things don’t go the company’s way, there are fears that AVZ could end up owning as little as 36% of the project.

The post 5 things to watch on the ASX 200 on Friday 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 shares today
• Why did the Pointsbet share price leap 7% on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Own Rio Tinto shares? The company’s leaning into demand for this high-value metal
• These ASX 200 mining shares are bolstering the market today

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

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

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

Not only have these dividend shares been rated as buys, but they have also been tipped to provide investors with attractive yields.

Here’s what you need to know about them:

Australia and New Zealand Banking Group (ASX: ANZ)

The first dividend share for investors to look at is ANZ. It could be a good option for investors that don’t already have exposure to the banking sector. Particularly given recent volatility, which has dragged the ANZ share price lower. This means its shares are currently trading far closer to their 52-week lows than their 52-week highs.

One broker that appears to see this as a buying opportunity is Citi. It currently has a buy rating and lofty $30.75 price target on the bank’s shares.

Its analysts are also expecting some big dividend yields from ANZ’s shares in the coming years following the aforementioned decline. It has has pencilled in fully franked dividends per share of 147 cents in FY 2022 and then 170 cents in FY 2023. Based on the current ANZ share price of $21.93, this implies yields of 6.7% and 7.75%, respectively.

Centuria Industrial REIT (ASX: CIP)

Another ASX dividend share that has been rated as a buy is industrial REIT, Centuria Industrial.

It could be a top option for investors thanks to the robust demand for industrial properties. In fact, demand has been so strong that during the first half Centuria Industrial reported an ~9-year weighted average lease expiry with a 99.2% portfolio occupancy. This underpinned strong funds from operation (FFO) and allowed management to upgrade its guidance.

Macquarie remains very positive on Centuria Industrial. Last month it put an outperform rating and $3.94 price target on its shares. This suggests major upside potential for the company’s shares over the next 12 months.

As for dividends, the broker is forecasting dividends per share of 17.3 cents in FY 2022 and 16.8 cents FY 2023. Based on the current Centuria Industrial share price of $2.93, this equates to yields of 5.9% and 5.7%, respectively.

The post Analysts name 2 ASX dividend shares to buy with 5%+ yields 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

• Why might ASX-listed ANZ want to snap up MYOB?
• Surprise US inflation pumps the brakes on ASX 200 bank shares
• What’s the outlook in FY23 for ASX 200 bank shares?
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• ANZ share price drops amid MYOB takeover talks

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/GhjyalA

The Sayona Mining Ltd (ASX: SYA) share price finished well in the green today.

Sayona shares closed at 14 cents today, a 7.69% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.44%.

Let’s take a look at what’s been happening with Sayona shares.

Sayona shares on the rise

Sayona shares soared today but they were not the only ASX lithium shares to jump. Pilbara Minerals Ltd (ASX: PLS) shares leapt 3.81%, the Core Lithium Ltd (ASX: CXO) share price rose 2.86%, and the Allkem Ltd (ASX: AKE) share price climbed 2.7%. Further, the S&P/ASX 200 Materials Index (ASX: XMJ) closed 1.56% higher.

Sayona is a lithium producer exploring projects in Western Australia and Quebec, Canada.

The company has recently revealed plans to restart lithium production at the North American Lithium Operation.

Sayona, along with Piedmont Lithium Inc (ASX: PLL), has agreed to speed up production at the project. The first spodumene concentrate production is earmarked for the first quarter of 2023. The Sayona share price soared on the back of the news late last month,

Meanwhile, the government is calling for more secure clean energy supply chains as the world moves towards net zero, the Australian Financial Review reported. In a speech to a global energy forum in Sydney this week, Prime Minister Anthony Albanese said:

It is essential that the unprecedented levels of investment in clean energy technologies required over the coming decades unlocks more diverse and secure supply chains than we have today.

Greater diversity and security of critical minerals extraction and processing, greater diversity of clean technology manufacturing, and security of clean energy supply are essential for managing supply and strategic risks.

Meanwhile, in quotes cited by the Sydney Morning Herald, US energy secretary Jennifer Granholm raised concerns China is “big-footing” energy supply chains. She said:

From an energy security point of view, it is imperative that nations that share the same values to develop our own supply chains, not just for the climate, which of course is very important, but for our own energy security.

Share price snapshot

Sayona shares have soared 65% over the past 12 months and risen 7.69% year to date.

In the past week, the company’s share price has lost 6.67%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen nearly 10% in the past year.

Sayona has a market capitalisation of about $1.2 billion based on today’s share price.

The post Sayona shares sail 8% ahead amid government’s call to secure energy supply 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

• Why is the Sayona Mining share price tumbling 6% today?
• How did the Sayona Mining share price perform in FY22?
• Why did the Sayona Mining share price crash 32% in June?
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher
• Why BWX, Sayona Mining, Tyro, and Woodside shares are sinking

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.

from The Motley Fool Australia https://ift.tt/wxkvC81

The acquisition trail continues into the new financial year. Another publicly-listed company has its sights set on a private entity.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is understood to be in talks to acquire accounting software firm MYOB Group from its parent company.

At market close on Thursday, ANZ shares are down 2.23% to $21.93.

ANZ said to be acquiring MYOB

The banking giant confirmed it was in talks with MYOB’s parent, private equity juggernaut KKR & Co., to acquire the accounting software firm.

It’s understood the transaction could reach a settlement of $4.5 billion, according to Reuters.

If this were so, it would represent an incredible $2.9 billion gain on investment for KKR, who bought MYOB private back in 2019.

Still, ANZ has total assets of $2.4 billion in March, made up of $404 million in cash.

MYOB’s public competitor, Xero Limited (ASX: XRO) has an enterprise value of $12.83 billion after adjusting its market cap for cash and debt, valuing MYOB at 35% of this amount.

ANZ’s potential decision comes at a time when ASX banks have been freeing up capital to offset pressures bought on by the Reserve Bank (RBA)’s tightening policy.

Analysts at investment bank Jefferies were quick onto the update and said there wasn’t necessarily a need for ANZ to own an accounting platform seeing as it has plenty of internal, comparable software.

However, the rationale behind the investment is probably to gain more customer data in order to sell more business banking products, The Australian writes.

Despite the pair being in talks on the transaction, there’s been no guarantee anything will proceed, and it looks like just confirmation of interests at this stage.

ANZ shares are down more than 20% in the past 12 months, and 20% this year to date, as seen on the chart below.

The post Why might ASX-listed ANZ want to snap up MYOB? 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

• Surprise US inflation pumps the brakes on ASX 200 bank shares
• What’s the outlook in FY23 for ASX 200 bank shares?
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• ANZ share price drops amid MYOB takeover talks
• Are falling BNPL shares pushing the ASX banks higher today?

Motley Fool contributor Zach Bristow 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/9IVYmsk

The EML Payments Ltd (ASX: EML) share price recovered some lost ground today.

This comes after the company’s former managing director and CEO posted a message on his LinkedIn profile regarding his departure from the company.

At Thursday’s close, the payments company’s shares were swapping hands at $1.05, up 12.3%.

What did the former CEO say?

The EML Payments share price finally enjoyed some relief today having fallen in the three previous sessions, including a drop of almost 25% on Monday following the shock news of CEO Tom Cregan’s exit.

Cregan bid the company farewell today after 10 and half years at the helm. He noted the “incredible journey” of building the business with a dedicated team that brought “their A-game”.

Cregan mentioned how EML Payments turned its fortunes around from being a small-time player to a global behemoth.

However, he delved into the reason for the abrupt exit that left shareholders stunned on Monday.

Cregan said:

After more work hours, air miles and nights away from home that I care to remember, I was happy to move on to the next journey and was happy that I controlled that outcome.

I will miss the people and customers, but not the 6am starts and 10-11pm finishes most days of the week!

Furthermore, Cregan went on to congratulate Emma Shand on her appointment as the new managing director and CEO.

He mentioned that she has an ideal set of attributes to lead the company while spending considerable time in Europe to run its operations. That was something Cregan said he was no longer willing to do “from a personal and family standpoint”.

EML Payments share price snapshot

Today’s EMP Payments share price gains will no doubt being some relief to shareholders.

The company’s shares have suffered setbacks after continuously being targeted by short-sellers following a disappointing third-quarter trading update in April.

In the past 12 months, its shares are down 72%.

EML Payments has a market capitalisation of roughly $478.03 million.

The post EML Payments share price rebounds 12% after former CEO sheds more light 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

• What’s the outlook for ASX BNPL shares in FY23?
• FY22 was a lousy period for ASX fintech shares. Here’s why
• Is FY23 going to be a winning year for ASX fintech shares?
• These were the best (and worst) performing ASX 200 sectors of FY22
• Why Costa, Domino’s, EML, and Novonix shares are dropping

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 positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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/BuSi1gT