• 5 things to watch on the ASX 200 on Monday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.45% to 6,678 points.

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

    ASX 200 expected to rise

    The Australian share market looks set to start the week with a gain after a mixed night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning. On Wall Street, the Dow Jones was down 0.15%, the S&P 500 fell 0.1%, and the Nasdaq climbed 0.1%.

    Oil prices rise

    Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price climbed 2% to US$104.79 a barrel and the Brent crude oil price climbed 2.3% to US$107.02 a barrel. This couldn’t stop oil prices recording a weekly decline amid recession fears.

    Woolworths given conviction buy rating

    The Woolworths Group Ltd (ASX: WOW) share price could be great value according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating and added the retail giant’s shares to its conviction list with a $40.50 price target. Goldman commented: “WOW now has a higher upside of 10% (3rd highest in our consumer/retail coverage, but with clear catalysts to re-rating)”

    Gold price edges higher

    Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price edged higher on Friday night. According to CNBC, the spot gold price was up 0.15% to US$1,742.3 an ounce. Despite this, the gold prices recorded its fourth successive weekly decline.

    Domino’s downgraded to sell

    The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could have a tough day after being the subject of 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 consensus earnings estimates are too high because of potentially “lower earnings in Japan and Europe due to lower store growth and not being able to fully pass through cost-inflation.”

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

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    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 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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  • Broker names 2 blue chip ASX 200 shares to buy this month

    A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle

    A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle

    If you’re looking to strengthen your portfolio with some new blue chip ASX 200 shares, then you may want to consider the two listed below.

    Both have recently been named as buys by the team at Morgans. Here’s what the broker has to say about these ASX 200 shares:

    South32 Ltd (ASX: S32)

    The first blue chip ASX 200 share that Morgans rates highly is South32. It is a mining giant with exposure to a range of commodities such as aluminium and copper. The broker has been pleased with the way South32 has transformed its portfolio and boosted its ESG credentials. It commented:

    S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

    Morgans has an add rating and $6.10 price target on South32’s shares. This implies potential upside of 63% from the current South32 share price of $3.73.

    Treasury Wine Estates (ASX: TWE)

    Another blue chip ASX 200 share that Morgans rates highly is Treasury Wine. Morgans believes the wine giant’s shares are great value in comparison to peers and sees strong growth ahead for the company.

    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.

    Morgans has an add rating and $13.93 price target on the company’s shares. Based on the current Treasury Wine share price of $11.43, this implies potential upside of 22% for investors.

    The post Broker names 2 blue chip ASX 200 shares to buy this month appeared first on The Motley Fool Australia.

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    *Returns as of July 7 2022

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    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.

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  • Here are 3 ETFs for ASX investors to buy in FY23

    ETF in written in different colours with different colour arrows pointing to it.

    ETF in written in different colours with different colour arrows pointing to it.

    A new financial year is here, so what better time to consider making some portfolio changes.

    If you’re interested in ETFs, then you may want to consider the three listed below.  Here’s why they could be top options for investors in FY23:

    iShares Global Consumer Staples ETF (ASX: IXI)

    The first ETF for investors to look at this financial year is the iShares Global Consumer Staples ETF. As its name implies, this ETF provides investors with exposure to a large number of global consumer staples companies. These are companies that produce essential products such as food, household items, and tobacco. Among its holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

    iShares S&P 500 ETF (ASX: IVV)

    Another ETF for ASX investors to consider in FY23 is the iShares S&P 500 ETF. This ETF gives investors exposure to 500 of the top U.S. stocks. This could make it a good option for investors that are wanting to add some diversity to their portfolio. In addition, the fund manager, Blackrock, highlights that the ETF offers long-term growth opportunities for investors thanks to its quality holdings. These holdings include companies such as Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

    VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

    A final ETF for ASX investors to look at this financial year is the VanEck Vectors Video Gaming and eSports ETF. This increasingly popular ETF provides investors with exposure to the growing video gaming market. This includes hardware giant Nvidia and game developers such as Roblox, Take-Two and Electronic Arts. VanEck notes that these companies are in a strong position to benefit from the increasing popularity of video games and eSports.

    The post Here are 3 ETFs for ASX investors to buy in FY23 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    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 iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why did the AVZ share price thump the market in FY22?

    A woman pulls devil rock'n'roll hands and sticks her tongue out whilst headbanging, she's rocking it.

    A woman pulls devil rock'n'roll hands and sticks her tongue out whilst headbanging, she's rocking it.

    The AVZ Minerals Ltd (ASX: AVZ) share price may have ended the last financial year suspended, but that couldn’t stop it from absolutely smashing the market during the 12 months.

    The lithium developer’s shares rose from 16 cents to 78 cents over the period, recording a whopping 388% gain for investors that were lucky enough to snap them up at the start of it.

    Why did the AVZ share price smash the market?

    There were a number of catalysts for the outperformance of the AVZ Minerals share price.

    This includes its inclusion in the illustrious ASX 200 index, optimism over its Manono Lithium and Tin project, and booming lithium prices.

    In respect to the latter, lithium prices have been breaking records in 2022 amid supply constraints and insatiable demand for the white metal from electric vehicle manufacturers. This has sparked hopes that when AVZ finally commences production, it will be generating significant free cash flow.

    Will FY 2023 be just as good?

    What happens in FY 2023 will depend largely on a couple of factors.

    The first is the future price of lithium. Analysts at Goldman Sachs are predicting a sharp decline in lithium prices in the coming years. So, by the time that AVZ does start selling the battery material ingredient, it may not be commanding prices anywhere near what Pilbara Minerals Ltd (ASX: PLS) is receiving today. This could put pressure on the company’s shares.

    There’s also something else to worry about before then. Something even bigger. That is the company’s ownership of the Manono Lithium and Tin project in the Democratic Republic of the Congo.

    The reason the AVZ share price was suspended for the final month of the financial year was its court battle with Jin Cheng Mining. There are concerns that if things don’t go to plan, the company could ultimately be left with just a 36% ownership of the project. This would have obvious consequences for the valuation of the company and its shares.

    All in all, the next 12 months certainly will be interesting. But only time will tell if the company’s shares are market-beaters again.

    The post Why did the AVZ share price thump the market in FY22? appeared first on The Motley Fool Australia.

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    *Returns as of July 7 2022

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

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  • How much has the Accent dividend paid to shareholders in the last 5 years?

    A young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.A young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.

    What a rollercoaster it has been for the Accent Group Ltd (ASX: AX1) share price over the past five years.

    After climbing to a pre-COVID high of $2.20, the shoe retailer’s shares hit a multi-year low of 55.5 cents in March 2020.

    Nonetheless, challenging trading conditions turned favourable once again following the federal government generous stimulus package.

    In the following year, Accent shares rocketed to an all-time high of $3.08 before crashing all the way back down.

    While its shares have been turbulent, investors would be up around 64% based on today’s price of $1.43. And this doesn’t include the consistent dividends that have been paid to shareholders during the past five years.

    A brief rundown on the Accent dividend history

    Listed below, I’ve put together Accent’s dividends that have been paid out to shareholders since this time in 2017.

    • September 2017 – 3 cents (final)
    • March 2018 – 3 cents (interim)
    • September 2018 – 3.75 cents (final)
    • March 2019 – 4.5 cents (interim)
    • September 2019 – 3.75 cents (final)
    • March 2020 – 5.25 cents (interim)
    • September 2020 – 4 cents (final)
    • March 2021 – 8 cents (interim)
    • September 2021 – 3.25 cents (final)
    • March 2022 – 2.5 cents (interim)

    When calculating the above, Accent has paid a total of 41 cents in dividends to shareholders over the five years.

    Added with the share price gains, investing your money in the company from 2017 would have been worthwhile.

    For example, a $10,000 initial investment would have reaped around $12,200 in profit for the 5-year period.

    Accent share price summary

    Despite accelerating over the long term, Accent shares have lost almost 50% in the past 12 months.

    Year-to-date hasn’t fared well either, down 40% due to rampant inflation and aggressive interest rates by the Reserve Bank of Australia.

    Accent presides over a market capitalisation of approximately $777.9 million and has a dividend yield of 4.32%.

    The post How much has the Accent dividend paid to shareholders in the last 5 years? appeared first on The Motley Fool Australia.

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    *Returns as of July 7 2022

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

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  • Top brokers name 3 ASX shares to buy next week

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    AGL Energy Limited (ASX: AGL)

    According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this energy company’s shares to $9.67. Morgans notes that AGL remains its preferred exposure to electricity prices. This is because it sees cheap fuel costs from low cost coal underpinning an earnings recovery despite some underperformance in the legacy generation fleet. The AGL share price ended the week at $8.31.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $100.00 price target on this pizza chain operator’s shares. The broker was pleased to see Domino’s introduce a 6% service fee on deliveries to offset cost inflation. Its analysts believe this highlights that the company has opportunities to support its margins. In light of this, the broker suspects that Domino’s could outperform the market’s expectations in FY 2023. The Domino’s share price was fetching $75.51 at Friday’s close.

    Sonic Healthcare Limited (ASX: SHL)

    Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $33.30 price target on this healthcare company’s shares. The broker notes that recent Medicare data shows that Sonic is still benefiting from COVID testing demand. It was also pleased to see that diagnostic imaging demand is recovering. Overall, based on this data, it believes the company’s shares are trading at an attractive level compared to peers. The Sonic share price ended the week at $33.30.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    *Returns as of July 7 2022

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    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 Dominos Pizza Enterprises Limited and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • What caused the Adairs share price to halve in FY22?

    Sad woman on a sofa.

    Sad woman on a sofa.

    The Adairs Ltd (ASX: ADH) share price roughly halved in the 2022 financial year in what was a tough time for shareholders.

    Despite that decline, the business is only back to where it was two years ago. Even so, that may not give much short-term comfort for investors that bought shares above $3 a share.

    Adairs is a homewares and furniture retailer through three brands – Adairs, Mocka and Focus on Furniture.

    Adairs has a national store network, Focus on Furniture has plans for a national store network and Mocka specialises as an online retailer.

    Lockdowns and lower profitability

    The first half of FY22 saw group sales of $241.8 million, including a $12.5 million contribution from Focus. Excluding Focus, online sales rose 8.2% to $97.6 million, contributing over 40% of total sales.

    While sales largely held up, profitability sank. Underlying earnings before interest and tax (EBIT) was $32.9 million, which included a $2.9 million contribution from Focus. That underlying EBIT compares to $60.2 million in the prior corresponding period.

    However, Adairs explained there were several hits to EBIT due to COVID-19. The company estimated that there was a $15 million hit due to Adairs’ COVID-19 store closures. There was an estimated $2.5 million EBIT hit because of warehousing disruptions and a $1.4 million hit because of Australian courier disruptions.

    However, compared to the first half of FY20, Adairs’ underlying EBIT was 45% higher.

    Profitability can be an important factor for the Adairs share price and most other businesses.

    The last trading update that investors have seen was for the first seven weeks of the FY22 second half which showed total sales were up 33.8% – but this was essentially because the sales of the acquired business Focus are now being included.

    In those first seven weeks, Adairs store sales were down 1.8%, Adairs online sales were up 9.7% and Mocka sales were up 14.8%.

    The outlook can have a material impact on the Adairs share price. In terms of the outlook, as of February 2022, Adairs said:

    All group brands have good in-country stock levels and clear opportunities for growth through the second half of FY22. The macro-economic environment is supportive with strong employment and emerging wages growth. Subject to no adverse COVID-19 development occurring management are confident about the prospects for the group in the FY22 second half and beyond.

    Profit and dividend expectations

    Looking at the earnings projections on CMC Markets, Adairs is expected to make 29.9 cents of earnings per share (EPS) and also pay an annual dividend per share of 18.2 cents.

    Those numbers put the Adairs share price at under 8 times FY22’s estimated earnings with a possible grossed-up dividend yield of 11.3%.

    Time will tell how inflation and rising interest rates impact demand for Adairs’ products, its profit and the valuation.

    The post What caused the Adairs share price to halve in FY22? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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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 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.

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  • Experts say these ASX dividend shares are buys this month

    a woman with a huge happy smile on her face eyes a jar of coins next to her on a table.

    a woman with a huge happy smile on her face eyes a jar of coins next to her on a table.

    Are you looking for dividend shares to buy in July? If you are, then you might want to look at the shares listed below.

    Here’s why these ASX dividend shares are rated as buys:

    Accent Group Ltd (ASX: AX1)

    The first ASX dividend share that has been rated as a buy is footwear focused retailer, Accent.

    The retailer, which owns a range brands such as Athlete’s Foot and HypeDC, has seen its shares sink notably lower this year amid concerns over the weak consumer environment.

    While its sales appear likely to be impacted by rising living costs, they are being tipped to rebound in FY 2023. Combined with its ongoing store rollout, this bodes well for its earnings and dividends.

    Bell Potter remains positive and appears to believe recent share price weakness is a buying opportunity. Its analysts recently reiterated their buy rating and $2.20 price target on its shares.

    As for dividends, Bell Potter is forecasting fully franked dividends of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.43, this will mean yields of 4% and 7.5%, respectively.

    National Australia Bank Ltd (ASX: NAB)

    Another ASX dividend share that could be in the buy zone in July is banking giant NAB.

    Like Accent, recent market volatility has dragged its shares notably lower. Investors appear concerned that a recession could be on the horizon and negatively impact the banks.

    One broker that remains positive is Goldman Sachs. In fact, its analysts recently reiterated their conviction buy rating with an improved price target of $34.26.

    Goldman believes NAB’s balance sheet mix provides the best exposure to the domestic system growth over the next 12 to 18 months.

    In respect to dividends, the broker is forecasting a $1.51 per share dividend in FY 2022 and then a $1.68 per share dividend in FY 2023. Based on the current NAB share price of $28.11, this will mean fully franked yields of 5.4% and 6%, respectively.

    The post Experts say these ASX dividend shares are buys this month appeared first on The Motley Fool Australia.

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    See The 5 Stocks
    *Returns as of July 7 2022

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

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  • Why Dicker Data shares are among this fund manager’s favourites

    Happy man and woman looking at the share price on a tablet.Happy man and woman looking at the share price on a tablet.

    The Dicker Data Ltd (ASX: DDR) share price closed up 1.01% to $11.95 on Friday.

    However, the tech share has had a tough time of it in 2022 alongside its technology sector peers.

    The Dicker Data share price has fallen by 18.8% in the year to date. Although, this compares favourably to the 32% decline for the S&P/ASX All Technology Index (ASX: XTX).

    Recent history of the Dicker Data share price

    Dicker Data is one of the few well-established technology companies listed on the ASX. It’s been around for a long time — 44 years, to be exact. It was founded in 1978 and was listed on the ASX in 2011.

    Over the past five years, the Dicker Data share price has risen by 390%.

    That compares incredibly well to the more well-known ASX stalwart shares of CSL Limited (ASX: CSL), up 119%, Macquarie Group Ltd (ASX: MQG), up 94%, BHP Group Ltd (ASX: BHP), up 56%, and all of the big four ASX bank shares.

    What does Dicker Data do?

    Dicker Data is an Australian distributor of hardware, software, and cloud technology. It distributes a wide range of products from big household name tech companies including Dell Technologies, Hewlett Packard, HP, Lenovo, and Microsoft.

    Dicker Data has probably done better than its ASX tech peers in 2022 because it isn’t in foundational growth mode. So, ASX investors probably see it as a lower risk compared to the predominantly younger up-and-coming businesses in the Aussie tech space.

    Why this broker backs Dicker Data

    According to reporting in the Australian Financial Review (AFR), analysts at Airlie Funds Management are fans of the tech share.

    Airlie portfolio manager Matt Williams said:

    Dicker Data provides the ‘picks and shovels’ for companies seeking products to digitalise their operations.

    Over the past seven years, sales and profits have compounded annually at 16% and 20% respectively.

    No matter the upcoming economic conditions, we think the path to digitisation won’t be affected, so prospects should remain strong.

    Dicker data dividends

    Here’s something else that is unusual and impressive about Dicker Data. It’s one of the few ASX tech shares paying dividends.

    And, it pays them four times per year, providing a more frequent stream of cash for income investors.

    Based on the Dicker Data share price today, the company has a trailing dividend yield of 3.8% with full franking. Bonus.

    The post Why Dicker Data shares are among this fund manager’s favourites appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited, CSL Ltd., and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd., Dell Technologies Inc., Dicker Data Limited, HP, and Microsoft. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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  • How did Beach Energy shares pull off a 40% return in FY 2022?

    Woman looks amazed and shocked as she looks at her laptop.Woman looks amazed and shocked as she looks at her laptop.

    We’ve just wrapped up the 2022 financial year, and what a year it was. The S&P/ASX 200 Index (ASX: XJO) had a pretty depressing FY 2022, falling by 10.19% between 1 July 2021 and 30 June 2022. That makes the performance of ASX 200 energy share Beach Energy Ltd (ASX: BPT) even more prominent.

    Beach shares had a cracking FY 2022. This ASX oil share started FY 2022 at a share price of $1.24. But by the end of June, Beach shares had risen to $1.73 each. That means investors enjoyed a gain of 39.5% over the financial year just gone.

    You can add another point or two there to account for the 2 cents per share in fully franked dividends that investors enjoyed over the year as well.

    So what was behind Beach’s lucrative FY 2022?

    How did the Beach share price manage a gain of 40%?

    Well, we don’t have to dig (or should we say drill) too deep. As an ASX 200 energy share, Beach’s fortunes are more or less tied to the price of crude oil itself. And oil has had a wild few months.

    As we discussed earlier this month in relation to Beach’s oil peer Woodside Energy Group Ltd (ASX: WDS), oil prices surged in the wake of the Russian invasion of Ukraine earlier this year.

    West Texas Intermediate (WTI) crude was going for around US$75 a barrel at the start of 2022. But until very recently, it was well over US$100 a barrel, having soared following the onset of the war in Ukraine.

    That explains why the Beach share price was more or less flat over the six months to 31 December 2021, but soared over the second half of the 2022 financial year. Most ASX oil shares, including Woodside, experienced similar share price moves.

    So investors largely have higher oil prices to thank for Beach Energy’s 40% return over the 2022 financial year. It will be interesting to see if Beach gives investors a repeat performance over FY 2023.

    At the current Beach Energy share price, this ASX 200 energy share has a market capitalisation of $3.89 billion, with a dividend yield of 1.18%.

    The post How did Beach Energy shares pull off a 40% return in FY 2022? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    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 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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