The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded its second successive weekly gain. The benchmark index added 0.5% to end the period at 7,182.7 points.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 last week:

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price was far and away the worst performer on the ASX 200 last week with a massive 81% decline. However, this wasn’t driven by bad news. The catalyst was the demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX: TLC). This leaves Tabcorp with its wagering, media, and gaming services businesses.

Novonix Ltd (ASX: NVX)

The Novonix share price was out of form and tumbled 9.3% over the period. This was despite there being no real news out of the battery materials and technology company last week. This latest decline means that the company’s shares are now down a whopping 65% since the start of the year.

InvoCare Limited (ASX: IVC)

The InvoCare share price wasn’t far behind with a 9.1% decline over the five days. This appears to have been driven by a lukewarm response to the funerals company’s recent annual general meeting update. One of those brokers was UBS, which retained its neutral rating but cut its price target to $12.40. It fears that rising labour costs will offset improving trading conditions.

Block Inc (ASX: SQ2)

The Block share price was out of form again and sank 8.3% last week. This was despite the payments company’s shares rebounding strongly on Friday. Block’s shares came under pressure amid continued weakness in the tech sector. This saw the S&P ASX All Technology index lose 2.5% of its value last week.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Appen crashes, lithum shares jump
• Novonix share price surges higher despite billionaire’s board exit
• 5 things to watch on the ASX 200 on Friday

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 Block, Inc. 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.

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

The Insurance Australia Group Ltd (ASX: IAG) share price has not proven to be a defensive buy at any time in recent history. This is an ASX 200 share that remains down by 7.77% over the past 12 months, and down almost 32% over the past five years, after all.

The IAG share price closed on Friday up 0.11% at $4.47. The company’s shares are now up 0.34% over 2022 thus far.

But could the tide be turning for IAG shares? We do have a vastly different economy to even that of 12 months ago. Inflation is rising, and so are interest rates. And this is causing some ructions and realignments across the ASX share market.

Financial shares like insurers and banks are often touted as effective defensive investments in this kind of macroeconomic environment. So does this mean that IAG could be a defensive buy today for a more uncertain future?

Is the IAG share price a buy today?

Well, one expert investor who thinks it might be is Michael Maughan, of Tyndall Asset Management. Maughan spoke to Livewire recently about his views on the investing landscape. Here’s some of what he said:

Supermarkets and insurance are the two sectors that stand out in the current inflationary environment…

We expect supermarkets will continue to be key defensive havens as inflation accelerates. Insurance is similar in that while repair costs are rising, the pricing environment means they can be absorbed, and longer-term margin goals met. Whatever claims inflation the general insurers are seeing has already been priced into higher premiums, and we see potential for further increases.

This current inflationary environment has seen bond yields rise and expectations increase for significant cash rate rises. This means that the interest earnings on the premium float of insurers are rising and will add meaningfully to profits.

Maughan goes on to name the “larger brands of listed insurance groups” as the main beneficiaries of these factors. Those were Suncorp Group Ltd (ASX: SUN, QBE Insurance Group Ltd (ASX: QBE) and, yes, IAG shares.

But Maughan isn’t the only one recommending a look at IAG today. As my Fool colleague Zach covered last week, ASX brokers Credit Suisse, JP Morgan, Jarden, Barrenjoey Markets and Citi are all bullish on IAG shares right now.

Each broker has a share price target above $5.14. But other brokers like Macquarie, Barclay Pearce and Morgan Stanley are less optimistic, with Morgan Stanley in particular rating IAG as a sell.

So that’s how some expert investors are treating the IAG share price at the present time.

At the current IAG share price, this ASX 200 insurance share has a market capitalisation of $11.03 billion, with a dividend yield of 2.97%.

 

The post Is the IAG share price a defensive buy amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

• Fundie reveals 3 ASX 200 shares with major pricing power to counter inflation
• Broker names 2 ASX 200 shares with major upside potential
• How might the IAG share price fare with another ‘catastrophe’?
• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• Broker names 2 ASX 200 dividend shares to buy this week

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 positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1mnFi2N

It can be tricky to know where to start for a beginner looking to invest in ASX shares. There are so many different investment types to choose from, including individual listed companies as well as portfolio investments like exchange-traded funds (ETFs).

There isn’t a ‘right’ answer about what to invest in first but I think ASX dividend shares can be a good place to start.

Now might be a useful time to start investing as well, as many ASX shares are struggling to make gains in a bearish 2022 and their share prices are lower as a result.

Below are three ASX dividend shares that I think have potential for long-term growth and are companies that most people can relate to.

Wesfarmers Ltd (ASX: WES)

Wesfarmers operates several of the country’s most recognised retail businesses including Bunnings, Officeworks, Kmart, Target, Catch and Australian Pharmaceutical Industries (Priceline).

This ASX dividend share is one of the oldest businesses on the ASX. It can trace its origins to 1914 as a Western Australian farmers’ cooperative. But now its operations are spread across home improvement and outdoor living, apparel, general merchandise, office supplies, health, beauty and wellbeing, as well as chemicals, energy, fertilisers and industrial and safety products.

It is also involved in a lithium mining project which will become operational in the next few years.

Wesfarmers says that its primary objective is to provide a “satisfactory return to its shareholders”. Part of that return involves a dividend. Wesfarmers has a trailing grossed-up dividend yield of 5.2%.

The ASX dividend share can continue to grow the business as its current operations grow and it also makes acquisitions.

Premier Investments Limited (ASX: PMV)

Premier Investments is involved in well-known brands in the retail sector. It owns a number of clothing businesses including Peter Alexander, Just Jeans, Jay Jays, Portmans and Dotti. The company also owns Smiggle, as well as large stakes in Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

Not only does Premier Investments offer a grossed-up dividend yield of 6%, but it is growing earnings too. It’s achieving online sales growth, boosting its profit margins and growing Smiggle internationally.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is the final ASX dividend share that I think could be a good idea for a beginner investor.

It’s one of the oldest companies on the ASX – it has been listed for more than 100 years. I think it will be around for many years to come.

Soul Pattinson operates as an investment house. This means it invests in other companies as it builds a business empire that spans resources, agriculture, telecommunications, swimming schools, electronics, financial services, technology and so on.

For me, one of the key attractions of this business is that it can invest in any sector that it wants to, which allows it to find a broad range of opportunities. It also allows it to future-proof the business.

This company holds the current ASX record for consecutive dividend increases stretching back to 2000. It also has a grossed-up dividend yield of 3.6%.

The post 3 ASX dividend shares I’d buy as a new investor appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 retail shares climbing on Friday?
• Could now be a great time to start investing in ASX shares?
• ‘We’re close to the bottom’: Expert flags share market sectors to buy before the rally
• Experts name 2 ASX 200 shares with high quality management teams to buy
• How do ASX shares typically perform following a demerger?

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

If you’re looking to add some resources sector exposure to your portfolio, then you may want to look at the two listed below.

They have both been rated among the best shares to buy in the resources sector by analysts at Morgans. Here’s what the broker is saying:

Santos Ltd (ASX: STO)

This energy producer could be a share to buy according to Morgans. It is positive on Santos due to its diversified earnings base and growth projects. The broker also sees plenty of upside for the Santos share price with its add rating and $10.00 price target.

But it gets even better, with Morgans forecasting dividends per share of 25.8 cents in FY 2022 and 39.4 cents in FY 2023. Based on the current Santos share price of $8.24, this will mean yields of 3.1% and 4.8%.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

South32 Ltd (ASX: S32)

Another ASX resources share that Morgans is positive on is South32. It is a fan of the way the mining giant has transformed its operations to green metals. As well as boosting its ESG credentials, the broker feels it has improved the quality of the company’s earnings.

Morgans has an add rating and $6.10 price target on South32’s shares. It is also expecting big fully franked dividends per share of 26 cents in FY 2022 and 36 cents in FY 2023. With the South32 share price currently fetching $4.71, this will mean yields of 5.5% and 7.6%, respectively.

The broker said:

S32 has transformed its portfolio 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.

The post Broker names 2 of the best ASX resources shares to buy now appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• TGIF: Here’s why ASX 200 energy shares are outperforming today
• Here are 2 ASX 200 dividend shares rated as buys by brokers
• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?

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/3kocGL4

Today, the S&P/ASX 200 Index (ASX: XJO) flipped the script and ran in opposition to how yesterday’s market played out. At the end of the session, the benchmark index finished 1.08% higher at 7,182.7 points.

A more uplifting mood was felt across the Australian share market on Friday. Thankfully, US retailers Macy’s and Dollar Tree reported positive results last night, easing the minds of some investors.

In addition, the Australian Bureau of Statistics reported a record level of retail sales in April. Expectedly, the consumer discretionary sector performed strongly today, rising by 2%. On the other hand, consumer staples ended the day being the only sector in the red.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Block Ltd (ASX: SQ2) was the biggest gainer today. Shares in the US-based fintech company got a 5.91% boost after lifting 7% on the New York Stock Exchange last night. Find out more about Block here.

The next best performing ASX share across the market today was Tabcorp Holdings Ltd (ASX: TAH). After an eventful week involving the successful demerging of the now separate Lottery Corporation (ASX: TLC), Tabcorp shares strengthened 4.40% in its last session of the week. Uncover the latest Tabcorp Holdings details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Block Inc (ASX: SQ2)	$117.13	5.91%
Tabcorp Holdings Ltd (ASX: TAH)	$1.0075	4.40%
Credit Corp Group Ltd (ASX: CCP)	$23.12	4.29%
Paladin Energy Ltd (ASX: PDN)	$0.745	4.20%
Liontown Resources Ltd (ASX: LTR)	$1.33	3.91%
Beach Energy Ltd (ASX: BPT)	$1.64	3.80%
Allkem Ltd (ASX: AKE)	$14.00	3.78%
Technology One Ltd (ASX: TNE)	$10.43	3.47%
Pilbara Minerals Ltd (ASX: PLS)	$2.905	3.38%
Corporate Travel Management Ltd (ASX: CTD)	$21.64	3.29%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Appen crashes, lithum shares jump
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Thursday

Motley Fool contributor Mitchell Lawler has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Corporate Travel Management Limited and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

There are a lot of shares to choose from on the Australian share market.

In order to narrow things down for investors, listed below are two ASX shares that are rated highly by analysts. Here’s why they could be top buy and hold options:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share that could be a top buy and hold options is this pizza chain operator.

While Domino’s is having a reasonably tough time at the moment, its long term outlook remains very positive. This is being underpinned by the popularity of its offering and its bold expansion plans. In respect to the latter, despite already having a huge network across several regions, Domino’s sees scope to more than double its footprint again over the next decade.

And this is just from existing markets. It also has the balance sheet strength to make acquisitions that increase its addressable market.

The team at Morgans remain positive on the company and believe recent share price weakness is a buying opportunity.

The broker commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100 price target on the company’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that could be a quality buy and hold option is TechnologyOne.

It is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets.

It could be a top option due to its recent transition to a software-as-a-service (SaaS) model with its enterprise resource planning (ERP) solution. This shift of focus has been going very well, with the company recently reporting stellar SaaS annual recurring revenue (ARR) growth with its half-year results.

Pleasingly, management doesn’t expect its growth to stop any time soon and is targeting $500 million+ in ARR by FY 2026. This is up from its current base of $288 million.

Analysts at Goldman Sachs suspect that TechnologyOne could even outperform this target, noting that the risks are to the upside. It said: “SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).”

Goldman has a buy rating and $13.30 price target on the company’s shares.

The post 2 top ASX shares that could be excellent buy and hold options appeared first on The Motley Fool Australia.

More reading

• 2 beaten-up ASX tech shares with major upside: experts
• Leading broker names the best ASX tech share to buy following 2022’s tech meltdown
• Top brokers name 3 ASX shares to buy today
• 3 ASX growth shares brokers rate as buys right now
• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling

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.

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very positive note. At the time of writing, the benchmark index is up 1.1% to 7,184.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 22% to $6.47. Investors have been selling this artificial intelligence data services company’s shares after Telus International withdrew its takeover proposal. The offer was withdrawn without comment but appears to have been triggered by the proposal being leaked to the press. Appen advised that it doesn’t know who leaked details of the offer.

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is down a further 6% to 96 cents. Investors have been selling this sports technology company’s shares since the release of a disappointing full-year result this week. Although Catapult reported a 19.7% increase in annual contract value (ACV) to US$63.9 million, its underlying EBITDA swung to a loss of US$5.8 million from a profit of US$3.5 million in FY 2021.

CSR Limited (ASX: CSR)

The CSR share price is down 4.5% to $4.68. The majority of this decline has been driven by the building products company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving its 18 cents per share fully franked dividend on 1 July.

Select Harvests Limited (ASX: SHV)

The Select Harvests share price is down 6% to $5.60. This follows the release of the almond producer’s half year results. While Select Harvests reported a large increase in profits, it was still down materially from 2020’s levels. Select Harvests reported a half-year net profit of $2 million, up from $1.3 million in FY 2021 but down from $17.4 million in FY 2020.

The post Why Appen, Catapult, CSR, and Select Harvests shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Appen crashes, lithum shares jump
• Why the CSR share price is backtracking today
• Appen share price crashes 25% after Telus withdraws takeover offer
• Appen share price on watch amid takeover offer collapse
• 5 things to watch on the ASX 200 on Friday

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 Appen Ltd and Catapult Group International Ltd. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Od4ypnH

The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Friday despite no fresh news from the company.

However, good news from international airlines and a slightly lower short position might be bolstering the market’s sentiment towards the travel agent.

At the time of writing, the Flight Centre share price is $20.39, 3.08% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.1%.

Let’s take a closer look at what might be going on with Flight Centre’s shares today.

What’s boosting the Flight Centre share price today?

The Flight Centre share price is in the green today, potentially in response to news from US-listed airlines.

Thursday’s session overseas saw both Southwest Airlines Co and JetBlue Airways Corporation releasing quarterly updates.

The pair each noted rising demand for flights would likely help offset the rising cost of fuel.

That’s likely good news for the broader travel industry as it continues to recover from the COVID-19 pandemic.

And such sentiment might have been enough to make some short-sellers question their position in Flight Centre shares.

The company’s short position has dropped ever so slightly over the last month. The latest data suggests 17.04% of the company’s shares are in the hands of short-sellers.

That’s down from 17.42% this time last month.

However, the drop hasn’t been enough to shake off Flight Centre’s title as the ASX’s most shorted stock.

Its short position appears to point to some market participants believing the company’s recovery won’t be all it’s cracked up to be.

Still, the Flight Centre share price is doing well in 2022. It has gained 9% since the start of the year – outperforming the ASX 200’s 5% slip.

It’s also 33% higher than it was this time last year. Meanwhile, the ASX 200 is recording a 1% gain for the last 12 months.

The post The Flight Centre share price is soaring 3% today. Could this be behind its gains? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX shares have plunged this year: Expert reveals what to do
• Why is the Flight Centre share price still attracting so much short interest in May?
• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price among the ASX 200’s top performers today?

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

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

The Polynovo Ltd (ASX: PNV) share price has retraced this week despite insider buying from the company’s chair, David Williams.

After hitting a 3-month high of $1.413 earlier this month, the medical device company’s shares are failing to gain traction.

In fact, this week alone, Polynovo shares are down 8.3%.

This comes regardless of its shares travelling 2.53% higher to $1.215 apiece.

Let’s take a look and see if Polynovo shares are undervalued at current prices.

Polynovo shares in bargain territory?

The investor sentiment on the Polynovo share price has been mixed due to the inconsistent performance of the business. This has ultimately attracted a large number of short sellers to the company’s registry.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares and sell the shares, and then buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As such, Polynovo remained in the top 10 list with 11.27% of its shares being shorted by investors.

In comparison, ASIC reported a short interest of 5.26% in Polynovo last year on 20 May. This is 50% less than where its shares are shorted today.

Given the large increase in short positions being taken up, investors might be concerned about the company’s inconsistent performance.

A couple of brokers rated the company’s share price with varying price points in late February.

The team at Macquarie cut its 12-month price target for Polynovo shares by 44% to a $1.60 apiece. This implies an upside of 31.6% from where the company’s shares are trading today.

Furthermore, analysts at Wilsons dropped their outlook on Polynovo shares by 22% to $1.11. It appears that the broker is almost on the mark as to where the medical company’s shares are valued at.

Polynovo share price summary

When looking at year to date, the Polynovo share price has lost 20% in value for shareholders.

However, in the past 12 months, its losses have magnified by around 53%.

Based on today’s price, Polynovo presides a market capitalisation of about $777.48 million.

The post After its recent surge, the Polynovo share price is down 8% this week. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Why Incitec Pivot, Openpay, PolyNovo, and Sayona Mining shares are sinking
• These are the 10 most shorted ASX shares
• How is the Polynovo share price managing to push higher today?
• Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping
• These are the 10 most shorted ASX shares

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 POLYNOVO 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/x075zXP

Avid owners of National Australia Bank Ltd (ASX: NAB) shares will likely be across the buy now, pay later (BNPL) offering the bank revealed yesterday.  

For those unacquainted, NAB Now Pay Later is set to launch in July and will follow the same basic premise as many other BNPL offerings – allowing customers to split purchases into four fortnightly payments.

It will also be able to be used anywhere Visa Inc is accepted. Meaning customers can use the product in the likes of supermarkets and petrol stations.

NAB Now Pay Later’s intricacies and timing have experts predicting it will be popular among shoppers.

Experts give NAB Now Pay Later the thumbs up

Those invested in NAB shares will soon have their own slice of the BNPL pie. The bank has begun accepting pre-registrations from its own customers interested in using NAB Now Pay Later.

And unlike most other BNPL products, the offering will abandon late fees entirely.

“It’s essentially a revolving line of credit that consumers pay nothing for, apart from the purchase cost,” Canstar money expert Effie Zahos commented. She continued:

NAB does a credit check on all customers who apply, so it’s essentially BNPL with parameters. Not all customers will be approved, and their limit will be assessed individually. Likewise, if they’re late on a payment, NAB will block their BNPL account … so there are safety barriers in place.

Zahos said the application process makes NAB Now Pay Later “stand out from the pack”. Though, she noted “a ‘free’ revolving line of credit can lead to dangerous spending behaviours.”

It has also impressed Griffith University personal finance expert Dr Tracey West.

West told Canstar that NAB Now Pay Later’s application process made it preferable to other BNPL offerings. She hopes its launch might take business from “more predatory finance companies”.

Additionally, releasing a BNPL product in the current inflationary environment will likely see demand for it soar.

“The timing of NAB’s BNPL product offering is perfect,” Zahos said. “It’s never been more expensive to be living.” She added:

Inflationary pressures may see BNPL providers that restrict purchases to certain retailers … at risk of dampening demand. Those providers such as NAB that allow consumers to BNPL on necessities like groceries may find the cost of living drives even more business their way.

NAB share price snapshot

The NAB share price is in the green on Friday, lifting 0.7% to trade at $31.79. For context, the S&P/ASX 200 Index (ASX: XJO) is also up 1.05% right now.

The bank’s stock has gained 8% since the start of 2022. It’s also nearly 19% higher than it was this time last year.

The post Own NAB shares? Experts reveal what makes the bank’s BNPL product ‘stand out from the pack’ appeared first on The Motley Fool Australia.

More reading

• The ANZ share price is ‘trading at its largest discount to its peers in 15 years’: Is this justified?
• Here are 2 ASX 200 dividend shares rated as buys by brokers
• NAB share price lifts amid BNPL product reveal
• Why is the NAB share price having such a cracker of a day?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?

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 Visa. 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/PQzDtg2