Despite travelling 1.45% higher to $7.01 today, the Bank of Queensland Limited (ASX: BOQ) share price is down 13% in 2022.

While the regional bank hasn’t made any price-sensitive announcements since its half-year results in April, investors are continuing to sell.

Bank of Queensland shares have dropped around 18% despite reporting growth across all key financial metrics.

Let’s take a look at what might have weighed on Bank of Queensland shares lately.

What’s happened to Bank of Queensland shares?

It appears the Bank of Queensland share price is being dragged down by negative investor sentiment.

The S&P/ASX 200 Financials (ASX: XFJ) has tumbled 8% in the last six weeks amid concerns about an impending recession.

Aggressive rate hikes by major central banks to cool down inflation has put selling pressure across global markets.

In particular, the United States reported a 16-month low in consumer confidence as market conditions continue to falter.

Notably, Bank of Queensland shares hit a 52-week low of $6.39 in late June before staging a mini rebound.

Interestingly, a number of directors within the company have decided to take advantage of the share price weakness.

Non-executive chair Patrick Allaway bought 15,000 Bank of Queensland shares for an average price of $6.93 apiece in June.

Further, non-executive director Mickie Rosen and managing director and CEO George Frazis picked up 10,000 and 14,750 shares, respectively. Both transactions were conducted via an on-market trade in June with the buyers paying an average price of less than $6.90 a share.

This could be considered an absolute steal in light of the projections of a couple of brokers who weighed in on the company’s outlook recently.

As reported by ANZ Share Investing, Citi cut its price target for Bank of Queensland shares by 5.4% to $8.75.

Based on today’s price, this implies an upside of almost 25% for investors.

On the other hand, Macquarie raised its outlook to “outperform” from “neutral” for the bank’s shares.

Again, although its analysts reduced the price target by 8.6% to $8.00, it still reflects a 14% improvement from where the bank’s share price trades now.

Bank of Queensland share price snapshot

Market volatility on the ASX has led Bank of Queensland shares to sink 20% over the last 12 months.

These losses have mostly occurred during the past few months.

Bank of Queensland commands a market capitalisation of roughly $4.53 billion.

The post Down 13% in 2022. Is the Bank of Queensland share price in bargain territory? appeared first on The Motley Fool Australia.

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More reading

• Experts name these ASX 200 dividend shares with big yields as buys
• Leading brokers name 3 ASX shares to buy today
• June was a terrible month for ASX 200 bank shares. Here’s why
• Do Bank of Queensland shares really offer a dividend yield above 6%?
• Why is the Bank of Queensland share price outperforming 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 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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Now that FY2022 is well in the rear-view mirror, it’s a good time to take stock and consider what FY2023 might have in store for the ASX and some of its most prominent shares. So, let’s check out the BHP Group Ltd (ASX: BHP) share price.

BHP is the largest share on the S&P/ASX 200 Index (ASX: XJO), and by a mile too. It currently makes up around 10% of the entire ASX 200 by weighted market capitalisation. That’s significantly more than the next-largest share, Commonwealth Bank of Australia (ASX: CBA), at just over 8%.

Over the financial year just passed, BHP shares didn’t have a great time of it though. As my Fool colleague Tristan Harrison covered earlier this month, the BHP share price fell by a nasty 17.5% between 1 July 2021 and 30 June 2022.

That was significantly worse than what the broader ASX 200 delivered, which was a loss of 10.19%. Not even the monster dividend payments that shareholders received over FY2022 were enough to erase this loss.

But that’s all in the past now. So could FY2023 be a better time for BHP shares?

Are BHP shares an FY2023 buy today?

Well, as we covered just this morning, one broker who thinks the next 12 months look promising for BHP shares is Morgans. This ASX broker has recently retained an add rating on the miner, complete with a 12-month share price target of $48.30. That would represent an upside of more than 25% from the current share price of $38.40 if accurate.

Morgans likes BHP’s “relatively low risk given its superior diversification relative to its major global mining peers”. It went on to say that “we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile”.

Last week, we covered how brokers at Macquarie are also bullish on BHP. Macquarie has a 12-month share price target of $50, which would result in an even higher potential upside of 30% or so. But these bullish opinions aren’t universal.

We also looked at how broker Morgan Stanley is “equal weight” on BHP shares today, with a share price target of $40.05. Further, Ord Minnett is rating the company as a hold today, with a target price of $44.

Bot of these less-enthusiastic brokers are worried that lower commodity prices going forward will weigh on the miner.

So a bit of a mixed bag when it comes to what the experts are thinking will happen to BHP shares in FY2023. Only time will tell which one proves to be accurate.

Meanwhile, the current BHP share price gives this ASX 200 mining giant a market capitalisation of $194.29 billion, with a trailing dividend yield of 12.49%.

The post Here’s a look at what might happen to BHP shares in FY2023 appeared first on The Motley Fool Australia.

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More reading

• Is this a good time to go digging for ASX 200 mining shares for FY23?
• BHP share price on watch as court clears the way for potential $9 billion ‘day of reckoning’
• Broker names 2 ASX 200 dividend shares to buy in July
• Own BHP shares? Top broker warns of looming oversupply of iron ore in 2H 2022
• Why BHP and other ASX mining shares are making strides on Friday

Motley Fool contributor Sebastian Bowen 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. 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 Telstra Corporation Ltd (ASX: TLS) share price is an interesting consideration as an ASX dividend share at its current level.

Telstra is the largest telecommunications business in Australia, with a strong presence in both mobile and home broadband. It also has exposure to a number of other telco areas with Telstra Health, as well as a presence in the Asia Pacific region with its Digicel Pacific acquisition.

The company has been committed to paying investors a high level of dividend income for an extended period of time.

Even if the dividend has been variable over the last couple of decades, it has remained at a high dividend payout ratio. In other words, even though Telstra’s dividends and net profit after tax (NPAT) have changed over the years, it has consistently paid out a relatively high proportion of its profit to shareholders.

Since 2019, Telstra has paid shareholders a half-yearly dividend of eight cents per share every six months.

It seems that Telstra is on track to pay another eight cent per share dividend for the second half of FY22.

How big will the Telstra dividend be in FY23?

Dividends are not guaranteed. Even if the telco has provided comments or guidance about its future dividend, it’s still not 100% certain.

Having said that, let’s look at what Telstra has said regarding its upcoming dividends.

As part of its T25 strategy, the telco outlined its ambition to increase its underlying return on invested capital to around 8% by FY23. It’s also targeting a compound annual growth rate (CAGR) of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teens for earnings per share (EPS) between FY21 to FY25.

Telstra said:

Through delivery on its T25 commitments, Telstra is confident in maintaining a minimum 16 cent per share fully franked dividend, subject to no unexpected material events and the requirements of its capital management framework.

Based on an estimated 16 cents per share dividend, the current Telstra share price offers a potential grossed-up dividend yield of 5.9% in the 2023 financial year.

Is the dividend ever going to grow again?

Telstra said that by implementing its T25 strategy, it will become a “vastly different company”. Delivering profit growth will certainly help as it seeks to grow its dividends “over time”.

However, it acknowledged that it needs to grow underlying earnings in line with its financial ambitions, and grow its franking balance in a bid to grow its fully franked dividends.

It intends to grow profit by extending its 5G coverage, cutting costs, earning a higher margin through wireless home broadband, and increasing its mobile prices in line with inflation.

Looking at estimates on CMC Markets, the FY24 dividend forecast is 17.7 cents, implying a 10.6% increase in the dividend. That higher dividend translates into a forward grossed-up dividend yield of 6.5%.

The post How big will the Telstra dividend yield be in FY23? appeared first on The Motley Fool Australia.

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More reading

• Here’s why brokers rate these ASX dividend shares as buys
• Telstra share price in the red despite taking out green crown
• What’s the outlook for ASX 200 dividend shares in FY23?
• Why did the Telstra share price beat the market in FY22?
• Telstra share price rises as Optus folds to inflation

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 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.

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ASX shares on the hunt for platinum will often be working far from their home base.

While Australia has moderate geological potential for platinum, according to Geoscience Australia, the bulk of platinum group elements (PGEs) are found in South Africa, currently responsible for some 70% of global platinum production.

Russia and Zimbabwe are other historically strong producers.

We’ll look at two ASX shares with a focus on platinum below.

But first…

What is platinum?

An attractive silvery metal, you’ll often find platinum used in jewellery.

But it’s platinum’s resistance to heat, corrosion and chemicals that’s seen the metal make it onto the Australian government’s critical minerals list. Which the government defines as a metallic or non-metallic element that has two characteristics:

1. It is essential for the functioning of our modern technologies, economies or national security and
2. There is a risk that its supply chains could be disrupted.

Platinum is critical in vehicle production, used in catalytic converters and electrical contacts. You’ll also find it used in things like your laptop screen.

In 2020, Australia produced half a ton of PGEs out of a total global production of 380 tonnes.

So, which ASX shares are on the hunt for the rare element?

Two ASX shares on the hunt for platinum

First up we have small-cap explorer, Orion Minerals Ltd (ASX: ORN), which focuses on both gold and platinum.

On the platinum front, its primary Jacomynspan Project is located in South Africa.

In Australia, Orion also holds mineral rights across various tenements in Victoria’s Walhalla Project area, which are prospective for platinum group elements.

The company has a current market cap of $81 million. It hasn’t quite been cashing in on platinum yet, however, with shares down 33% over the past 12 months.

On the larger end of the ASX share spectrum, we have Zimplats Holdings Ltd (ASX: ZIM), with a market cap of $2.4 billion.

The Zimbabwe based explorer has a majority stake in the Ngezi mine. Located in the northern part of the nation, Ngezi contains among the largest platinum reserves in Southern Africa.

Over the past 12 months that have seen the All Ordinaries Index (ASX: XAO) fall 10%, the Zimplats share price has gained 6%.

The ASX platinum share also pays a juicy trailing dividend yield of 11%, unfranked.

You can find out which ASX shares are cashing in on cobalt, lithium, rare earths, and vanadium in more of our ‘Mineral Monday’ series.

The post Mineral Monday: What you need to know about platinum and which ASX shares are cashing in on it appeared first on The Motley Fool Australia.

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More reading

• How big will the Telstra dividend yield be in FY23?
• Why are short sellers targeting PolyNovo shares?
• Should you invest in stocks right now? These 2 charts say yes
• Down 6%, why Monday is not a fun day for the Zip share price
• ASX 200 midday update: EML crashes amid CEO exit, Costa and Domino’s sink on broker downgrades

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 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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As readers might have seen earlier today, PolyNovo Ltd (ASX: PNV) shares are once again among the most shorted shares on the ASX.

The latest data reveals that the medical device company has 8.8% of its shares held short.

Why are short sellers targeting PolyNovo shares?

There appear to be a number of reasons why short sellers have taken a big interest in PolyNovo’s shares.

The first is the company’s mixed performance over the last couple of years. Although its sales have been stronger in FY 2022, its performance in FY 2021 disappointed the market.

In response to its first half update from last year, Bell Potter commented:

Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.

It is partly for this reason, much to the delight of short sellers, that PolyNovo shares are down 37% over the last 12 months.

What else?

A fund manager that has been shorting PolyNovo in the past is Regal Funds. At the Sohn Hearts and Minds investor conference in 2019, Regal named shorting PolyNovo as its pick. The fund manager revealed that it was targeting the company due to its belief that the biotech sector was “the biggest bubble in the Australian stockmarket.”

Regal blamed the bubble on a lack of biotech expertise in the Australian investor community, which has led to them failing to value biotech companies properly. It commented:

We don’t have the big pharmaceutical companies that North America and Europe have, and as a result Australians aren’t that good at valuing drug companies.

While it is unclear if Regal continues to short PolyNovo shares, it’s clear that there are still plenty of investors out there that agree with its view given the high level of short interest.

The post Why are short sellers targeting PolyNovo shares? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Up 13% in a month, Polynovo share price bounces back after being dumped from ASX 200
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• How have Polynovo shares been performing since leaving the ASX 200?

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 POLYNOVO FPO. The Motley Fool Australia has recommended Macquarie 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

There is no shortage of reasons for people to be skeptical about investing in equities right now. The S&P 500 is in a full-blown bear market, the economy isn’t doing well, and, according to some analysts, we are heading toward a recession. Meanwhile, geopolitical tensions remain, and the COVID-19 pandemic isn’t officially over. 

However, there are also good reasons to invest in stocks, even in these volatile times. Long-term investors know that these market downturns can provide excellent opportunities to make a buck. Let’s look at what happened following the past two bear markets.

The financial crisis of 2008 and the 2020 coronavirus bear market

The most recent bear market (other than the one we are currently in) happened in 2020. It was relatively short-lived and bottomed out in late March of that year. It is instructive to see how the S&P 500 has performed since then.

^SPX data by YCharts

Even considering its current struggles, the S&P 500 has provided solid returns since it bottomed out following the market crash caused by the COVID-19 pandemic. Now let’s look at the bear market between 2008 and 2009. The S&P 500 bottomed out in March 2009; the index has risen substantially since then. 

^SPX data by YCharts

We could go back and look at what happened after other major market crashes, and the result would be the same. The trend is clear: Bear markets don’t last forever, and are usually followed by bull markets. Further, bull markets tend to last longer than bear markets.

Of course, it’s impossible to time the market. No one knows when the current downturn will bottom out. But those who invest in stocks right now will likely be well rewarded in the long run, especially considering many stocks are trading for a discount — and that’s the silver lining of market crashes. 

This streaming giant hasn’t said its last word 

Let’s look at one stock currently experiencing plenty of headwinds that could be an excellent long-term bet: Netflix (NASDAQ: NFLX). 

Netflix’s recent struggles on the stock market are largely due to company-specific issues. In the past few quarters, the streaming specialist’s subscriber growth hasn’t been impressive, to say the least, and that trend will likely continue in the second quarter, at least according to management’s predictions.

Netflix faces plenty of competition in a crowded streaming market, contributing to its subscriber growth woes. Further, the company is dealing with the problem of password sharing. It estimates that 100 million households are accessing its platform through password sharing, in addition to its 222 million net paid subscribers as of the end of the first quarter.

That means that nearly half of households watching Netflix aren’t paying for it. So the company is leaving a lot of money on the table. 

But there are reasons to be optimistic about Netflix’s future too. First, consider that streaming arguably still has room to grow, particularly in many international markets where the market enjoys lower penetration than it does in North America. Projections vary, but some have it that the industry will register a compound annual growth rate of 21.3% through 2030.

Netflix is, of course, carefully weighing how it will handle its challenges, including password-sharing. The company has considered introducing a lower-priced subscription that would display advertisements. The move could entice password sharers to open their own accounts. Importantly, Netflix’s winning formula will always include original content. 

The company has become one of the most successful studios around. Original content drives engagement (i.e., viewing hours), and in that department, Netflix still has a long way to go. As of February, Netflix accounted for 6.4% of total television time in the United States, while the entire streaming industry accounted for an unimpressive 28.6%.

Cable is still popular despite the seeming ubiquity of streaming and the so-called cord-cutting trends. In the long run, Netflix is looking to replace cable TV, and it still has miles of whitespace available to do that, both in the US and abroad. But the company’s recent struggles scared off many investors. 

The result? Netflix looks substantially cheaper than it did just one year ago.

NFLX PE Ratio (Forward) data by YCharts

At these levels, long-term investors might want to consider adding the streaming giant’s shares.

Along for the ride

Things may get worse for Netflix and the rest of the market before they get better, especially if a recession hits. But as we’ve seen, the market is sure to recover eventually. In my view, Netflix will follow a similar trajectory. The company’s stock cratered earlier this year. However, given its long-term prospects, leadership in streaming, and growing original content library, Netflix still has plenty of market-beating days in its future.

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

The post Should you invest in stocks right now? These 2 charts say yes appeared first on The Motley Fool Australia.

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More reading

• Better bear market buy: Netflix vs Amazon
• 3 reasons Netflix should bounce back in July
• 4 potential winners from Netflix’s advertising plans
• 2 oversold stocks to buy in the Nasdaq bear market
• Is Netflix stock at a tipping point?

Prosper Junior Bakiny 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 Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Zip Co Ltd (ASX: ZIP) share price is suffering another blow this morning alongside many of the company’s tech and buy now, pay later (BNPL) peers.

The trouble follows a poor Friday session for many of Zip’s international BNPL peers and comes amid rumours a major player in the space could see its value tumble.

At the time of writing, the Zip share price is 49.75 cents, 6.13% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red today, falling 0.51%.

Let’s take a closer look at what might be dragging the ASX BNPL share lower on Monday.

What’s weighing on the Zip share price?

The Zip share price is sliding for a third consecutive session today. Meanwhile, the tech sector is also in the red.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently down 1.9%. Looking to the broader tech sector, the S&P/ASX All Technology Index (ASX: XTX) is also struggling, falling 2.47%.

That’s despite the NASDAQ Composite posting a slight gain during Friday’s session overseas.

Though, the most recent session in the United States saw ASX payments-focused tech stock Block Inc (ASX: SQ2)’s New York-based listing fall 2.33% and BNPL favourite Affirm Holdings Inc (NASDAQ: AFRM) slump 1.14%.

Additionally, unlisted BNPL giant Klarna is reportedly gearing up to announce a capital raise that could see its valuation tumble 86% over two years.

The BNPL giant is looking to conduct a US$800 million capital raise at a pre-money valuation of less than US$6 billion, Sky News reports. The fintech was said to be worth US$45.6 billion two years ago.

Including its recent downturn, the Zip share price is around 88% lower than it was at the start of this year.

The post Down 6%, why Monday is not a fun day for the Zip share price appeared first on The Motley Fool Australia.

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• Why did some ASX BNPL shares plummet more than 90% in FY22?
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Block, Bubs, Infomedia, and Zip shares are dropping
• Zip share price cops 6% slashing as analyst fears grow

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc., Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week in the red. The benchmark index is currently down 0.5% to 6,643.5 points.

Here’s what is happening on the ASX 200 today:

EML shares crash on surprise CEO exit

The EML Payments Ltd (ASX: EML) share price has crashed to a multi-year low on Monday. This follows the surprise exit of its CEO, Tom Cregan, with immediate effect. EML Payments also noted that Cregan will receive his contractual entitlements but no termination benefits will be provided. EML has appointed Emma Shand as its new managing director and CEO. She has been a director at the company since last year.

Costa share price tumbles

The Costa Group Holdings Ltd (ASX: CGC) share price is also falling heavily on Monday. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has downgraded the horticulture company’s shares to a neutral rating and slashed the price target on them by 24% to $2.80. The broker made the move after revising its earnings estimates lower to reflect weaker avocado prices, a poor citrus season, and supply chain headwinds.

Domino’s falls on broker downgrade

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is trading lower today. This appears to have been driven by a bearish note out of Goldman Sachs. According to the release, the broker has downgraded the pizza chain operator’s shares to a sell rating and cut the price target on them to $59.20. Goldman believes the company will fall short of consensus earnings estimates.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the New Hope Corporation Limited (ASX: NHC) share price with a gain of 3% on no news. Going the other way, the worst performer has been the EML share price with a 20% decline. This follows the shock exit of its long-serving CEO this morning.

The post ASX 200 midday update: EML crashes amid CEO exit, Costa and Domino’s sink on broker downgrades appeared first on The Motley Fool Australia.

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More reading

• EML share price sinks 18% amid CEO’s unexplained departure
• Is this a good time to go digging for ASX 200 mining shares for FY23?
• How did ASX 200 travel shares go in FY22?
• These are the 10 most shorted ASX shares
• The NAB share price outperformed the ASX 200 by 16% over 12 months

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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended COSTA GRP FPO and 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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A difficult past couple of years has led the Treasury Wine Estates Ltd (ASX: TWE) share price to slump 12% since 2017.

In particular, a 40% drop from January 2020 to April 2020 caused havoc for shareholders amid China introducing tariffs on Australian wines.

This was in response to the Australian government’s decision to call for an inquiry into the origins of COVID-19.

Nonetheless, fast-forward to 2022 and the wine distributor’s shares have continued to record wild price swings.

High inflation levels and rate hikes have sparked concerns about a looming recession in the near future. This has caused volatility across global markets.

At the time of writing, Treasury Wines shares are down 0.44% to $11.38.

What about the Treasury Wines dividend?

Regardless of company’s unstable share price, the Treasury Wines board has continued to pay dividends to shareholders.

Below, we take a look at the past five years’ worth of dividends that the company has paid out.

• October 2017 – 13 cents (final)

• April 2018 – 15 cents (interim)

• October 2018 – 17 cents (final)

• April 2019 – 18 cents (interim)

• October 2019 – 20 cents (final)

• April 2020 – 20 cents (interim)

• October 2020 – 8 cents (final)

• April 2021 – 15 cents (interim)

• October 2021 – 13 cents (final)

• April 2022 – 15 cents (interim)

Calculating Treasury Wines’ dividends since October 2017 gives us a total figure of $1.54 for every share owned.

And based on the last two dividends distributed to shareholders, Treasury Wines has a dividend yield of 1.6%.

Treasury Wines share price snapshot

Over the last 12 months, the Treasury Wines share price has fallen by more than 4% and is down 8% year-to-date.

The company’s shares strongly rebounded from their 52-week low of $10.37 in February on the back of a surprise half-year result.

Treasury Wines presides a market capitalisation of roughly $8.22 billion based on today’s price.

The post Has the Treasury Wines dividend been worthwhile since 2017? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

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The Coles Group Ltd (ASX: COL) share price had another financial year of ups and downs in FY22.

As one of Australia’s largest supermarket businesses, investors may not expect that much volatility from the business. But the start of this decade has been momentous with a global pandemic and now elevated inflation.

Coles Group is the name behind a few different businesses including Coles supermarkets, national liquor brands Liquorland, Vintage Cellars, First Choice Liquor and First Choice Liquor Market, the service station business Coles Express and Coles Financial Services (which offers insurance, credit cards and personal loans).

There were three distinctive periods of FY22, so let’s look at each of them.

Lockdowns

The first half of FY22 saw Australia’s two biggest cities – Sydney and Melbourne – in lockdown. As we saw during the end of FY20 and FY21, lockdowns meant that more people were buying more of their food from supermarkets, so Coles benefited.

In the first several weeks of FY22, the Coles share price climbed more than 8%.

When the company released its FY21 result, it noted that in FY22 it would be cycling against the strong sales seen in FY21. In the first seven weeks of FY22, supermarket sales were up approximately 1% year on year and up 12% over two years.

Liquor sales in those first seven weeks were flat year on year, but up 19% over two years.

For Coles Express, fuel volumes were impacted by lockdowns.

The company said that ‘smarter selling’ benefits were expected to be more than $200 million.

Omicron and normalising sales

Lockdowns ended in Sydney and Melbourne as vaccination rates rose and restrictions weren’t introduced for the Omicron variant. By mid-January, the Coles share price had fallen more than 13% from the August 2021 high.

In the FY22 first half, for the 27 weeks to 2 January 2022, sales went up 1% to $20.6 billion and net profit after tax (NPAT) fell 2% to $549 million. It said that it was impacted by higher COVID-19 disruption costs, a hit to Coles Express earnings due to travel restrictions, and transformation project costs.

The company said that smarter selling benefits achieved in the first half were more than $100 million. It also said it’s on track to deliver over $200 of benefits in FY22.

While supermarket sales were elevated in the early part of January because of shoppers stocking up amid the Omicron surge, sales “moderated” later in the month.

Inflation bites

The last few months have seen inflation jump significantly. The Coles share price rose around 10% to the end of FY22.

In the third quarter of FY22, total sales rose by 3.9% to $9.3 billion.

Coles said that cost price inflation is impacting suppliers as a result of “increased raw material, commodity, shopping and fuel costs.”

It noted that inflation steadily increased throughout the third quarter, with total supermarket price inflation of 3.3%.

In a trading update talking about the fourth quarter, Coles said it had recorded a solid trading period with no restrictions on traditional family events such as Easter. It said that COVID-19 costs are expected to continue to moderate further.

However, supplier input cost inflation is expected to continue “in the further quarter and into FY23”.

Coles share price snapshot

At the time of writing, the Coles share price has risen by around 7% over the last month.

The post Here’s why the Coles share price had a volatile FY22 appeared first on The Motley Fool Australia.

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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 positions in and has recommended COLESGROUP DEF SET. 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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