Shares in Eagers Automotive Ltd (ASX: APE) have sunk from the open today and now trade more than 3% down at $11.52 apiece.

Investors might be selling off Eagers Automotive shares today in response to (ASX: APE) have sunk from the open today and now trade more than 3% down at $11.52 apiece.” target=”_blank” rel=”noreferrer noopener”>the company’s market update for the half year ending June 2022.

In wider market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) index has spiked 80 basis points into the green.

What did Eagers release?

Eagers gave commentary of its performance during the half to date and noted that market mechanics or the used car market continue to show bullish signs.

“The underlying performance of the business continues to benefit from a strong market where demand for new vehicles continues to materially exceed supply,” the company said.

“This has resulted in an increase in our record new car order book of more than 25% since 31 December 2021.”

On this backdrop, “new car margins” have also been supportive of sales growth, whereas the company says its finance performance is above industry levels.

What does Eagers expect moving forward?

The company notes there will be an impending slowdown in its core business due to softening output of new vehicles delivered in 1H FY22.

Despite the continuing strength of our underlying business, positive operational metrics and record order book, an anticipated reduction in the number of new vehicles delivered to customers in the first half of 2022 is expected to impact our half year financial performance.

This is due to the supply of new vehicles being impacted by multiple global events, largely attributable to the on-going effects of semi-conductor shortages in the industry and compounded by the both the Ukraine conflict and China’s on-going COVID lockdowns.

Consequently, Eagers is projecting underlying operating profit before tax (OPBIT) to land in the range of $183 million–$189 million.

This compares to underlying OPBIT of $214.8 million for the prior corresponding period (pcp) on a like for like basis, it says.

Similarly, Net Profit Before Tax (NPBT) for the half year is expected to be in the range of $225 million–$240 million, down from $267.4 million for the pcp.

“The forecast results in this update are subject to external audit review which will be conducted
following completion of the half year on 30 June 2022,” Eagers concluded.

Eagers Automotive share price snapshot

In the last 12 months, the Eagers Automotive share price has slipped more than 20% into the red, having clipped a 14% loss this year to date.

The post Here’s why the Eagers share price is sliding today appeared first on The Motley Fool Australia.

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• ‘Strong demand’: Bluescope share price strengthens on guidance upgrade
• Why is the James Hardie share price surging higher today
• What’s sending the Northern Star share price higher today?
• Here’s why the Tabcorp share price is lifting on Wednesday
• Why is the Firefinch share price shooting 10% higher today?

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

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The BlueScope Steel Limited (ASX: BSL) share price is getting attention on Wednesday morning following its latest announcement.

Shares in the big-name steel producer are swelling by 2%, trading at $18.30 per share in the process. Although, earlier in the session, the company’s shares hit an intraday high of $19.24. For context, it is a rather green morning on the ASX. The S&P/ASX 200 Index (ASX: XJO) is trading 1.05% higher within the first hour of the morning bell.

Second half looks more solid

Working in a commoditised business, much of BlueScope’s financial success comes down to the market price of steel. Today, the $8 billion steel manufacturer has informed investors that this time prices are working in its favour.

According to the release, shareholders are in for a better than previously expected result for the second half of FY2022. The company has lifted its forecast for underlying earnings before interest and tax (EBIT) to between $1.375 billion to $1.475 billion. Whereas, the prior guidance was for $1.2 billion to $1.35 billion.

The guidance revision represents an approximate 15% lift to the lower range and around 9% increase to the higher end. This improvement is likely behind the strong BlueScope share price today. However, BlueScope caveated this guidance by noting it was subject to spread, foreign exchange, and market conditions.

Importantly, the reason for the upgrade is the stronger outlook laying ahead for the company’s North Star and North America coated business. Meanwhile, the other areas of BlueScope’s operations remain in line with prior guidance.

Commenting on the update, BlueScope managing director and CEO Mark Vassella said:

Throughout recent macroeconomic and geopolitical volatility, BlueScope has continued to demonstrate strength and resilience in its business performance.

In the current strong demand environment, the entire BlueScope team is working as hard as they can to improve our service levels, which have been impacted by supply chain and pandemic-related disruptions.

The company’s half-year results are expected to be released on 15 August 2022.

BlueScope share price recap

The BlueScope Steel share price is down 16.5% since the beginning of the year, despite steel prices being slightly higher.

It appears the market is cautious about valuing BlueScope based on its current earnings. The reason for this observation is the company currently trades on a price-to-earnings (P/E) ratio of 3.6 times. Comparatively, the metals and mining industry carries an average P/E of 10.4 times.

The post ‘Strong demand’: Bluescope share price strengthens on guidance upgrade appeared first on The Motley Fool Australia.

More reading

• Why BlueScope, OFX, Pilbara Minerals, and Step One shares are pushing higher

Motley Fool contributor Mitchell Lawler 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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The James Hardie Industries plc (ASX: JHX) share price more than rebounded from yesterday’s sharp losses after a top broker upgraded its shares.

The ASX building materials supplier is “too cheap to ignore”, according to Morgan Stanley. The broker upgraded its recommendation on James Hardie to “overweight” from “equal-weight” following the company’s results announcement that triggered the sell-off.

When 36% profit growth isn’t enough

The company posted a 36% increase in FY22 adjusted net profit to US$620.7 million which didn’t impress the market. As a result, the James Hardie share price tumbled 3.5% on Tuesday although it regained all the loss, and then some, this morning when it surged as high as 6% to $39.79.

At the time of writing, the company’s share price has settled at $39.00, 4% higher than yesterday’s close.

It wasn’t James Hardie’s earnings or sales figures that scared investors. If anything, net profit was largely in line with consensus expectations.

Is too much bad news priced into the James Hardie share price?

Yesterday’s negative reaction to the James Hardie share price likely stems from worries about the impact of rising interest rates on housing.

Morgan Stanley said:

JHX is a quality business with a true structural growth theme.

Current mortgage rate concerns are valid – but after material recent de-rating, we find housing market weakness more than priced in, particularly given JHX’s skew towards R&R [repair and renovation] markets.

Building up to strong growth in FY23

Around 65% of the group’s business is from R&R with the balance from new builds. The broker also reckons the company could steal market share to maintain its growth rate.

It also helps that James Hardie has a full backlog of orders that should keep it busy till FY23, if not beyond.

Further, management is sticking to its FY23 earnings guidance for net profit of US$740 million to US$820 million.

It also increased its revenue growth forecast for its North America Fibre Cement (NAFC) business to 18% to 22%. That’s up from its original expectation of between 16% and 20%.

Morgan Stanley’s 12-month price target on the James Hardie share price is $51 a share.

What other brokers are saying about the James Hardie share price

But the broker isn’t the only one that is bullish on the shares. Citigroup and UBS have reiterated their buy call on James Hardie.

Citi acknowledges the risk of rising rates, particularly in the US. But it estimated that only around 2% to 3% market growth is factored into the company’s North American sales guidance.

UBS also pointed out that its buy thesis on James Hardie is largely unchanged despite the macroeconomic risks.

The Citi and UBS 12-month price targets on the James Hardie share price are $44.30 and $57.70 respectively.

The post Why is the James Hardie share price surging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau 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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The Northern Star Resources Ltd (ASX: NST) share price is moving higher in morning trade.

Northern Star shares closed yesterday at $8.60 and are currently trading for $8.68, up 0.9%.

This comes as the S&P/ASX 200 Index (ASX: XJO) gold miner released its investor presentation at the Bank of America Conference.

What did the company report at the BofA Conference?

Northern Star is one of the largest gold miners in the world. The company has producing mines in the US state of Alaska (Pogo) and Western Australia (Yandal and Kalgoorlie). The Aussie operations account for 85% of its total production.

All told, the miner reports it can sustainably produce some two million ounces of gold per year, citing continuing cost improvements and higher quality grades to increase profitability.

Investors may be bidding up the Northern Star share price on the report of its assets’ long mine life. The company forecasts at least 20 years of sustainable production, targeting a 20 million ounce reserve and a 60 million ounce resource.

On the environmental front, the gold miner is aiming for a 35% reduction in its emissions by 2030 with an end goal of net zero by 2050.

As for risk management, the miner has a three-year hedge book of 1.1 million ounces of gold at AU$2,446 per ounce. This represents around 20% of its gold production over the next three years.

The company also highlighted its previously reported results for the first half of the 2022 financial year (1H FY22). These included an underlying net profit after tax (NPAT) of $108 million and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $699 million.

The forecast that its fourth-quarter performance will be better than its third-quarter performance could also be helping lift the Northern Star share price today.

And the updated dividend policy was discussed, which will see 20% to 30% of cash earnings (EBITDA less net interest and tax paid and sustaining capital) returned to investors as dividend payouts.

Northern Star share price snapshot

The Northern Star share price has struggled this year with gold prices currently down about 1% since 1 January.

Northern Star shares are down 8% in 2022, compared to a loss of 5% posted by the ASX 200.

The post What’s sending the Northern Star share price higher today? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday

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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The Tabcorp Holdings Ltd (ASX: TAH) share price is lifting from the open today and is currently trading 1.16% higher at $5.24.

It’s roughly in line with the S&P/ASX 200 Index (ASX: XJO) which is also trading 1.2% higher from the open today.

The Tabcorp share price might be on the move today following a company announcement yesterday regarding its spinoff of The Lottery Corporation Ltd (XASX: TLC).

What did Tabcorp announce?

Tabcorp advised that S&P Dow Jones Indices has announced it will make changes as a result of Tabcorp’s planned demerger from The Lottery Corporation.

Specifically, the ratings agency will make changes to the benchmark S&P/ASX 200 Index to reflect the separately formed entities.

Tabcorp said:

[A]s a result of the scheme of arrangement under which [Tabcorp] will spin-off [TLC] Tabcorp Holdings Limited, Tabcorp Holdings Limited will spin-off 1 share of The Lottery Corporation Limited for every 1 Tabcorp Holdings Limited share held. The Lottery Corporation Limited will be added to the S&P/ASX 200 Index effective prior to the open of trading on May 24, 2022 at a zero price.

There will be no removal from the S&P/ASX 200 Index as a result of the inclusion of The Lottery Corporation Limited.

Last week, Tabcorp shareholders “overwhelmingly approved ” the demerger following a shareholder vote, throwing their full support behind the move.

Subject to Supreme Court approval, Tabcorp says TLC shares should begin trading “on a deferred settlement basis” on Tuesday 24 May 2022, the same day as TLC’s inclusion into the ASX 200.

Tabcorp share price snapshot

In the last 12 months, the Tabcorp share price has clipped a 3.5% gain and has gained around 4% this year to date. Prices have compressed in the last month of trade and are down 2.6% in that time.

The company has a current market capitalisation of $11.6 billion.

The post Here’s why the Tabcorp share price is lifting on Wednesday appeared first on The Motley Fool Australia.

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• Tabcorp share price rangebound following lotto demerger vote
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• ‘Hidden value’: The ASX share with a major catalyst coming
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Firefinch Ltd (ASX: FFX) share price is having a strong start to the day.

In early trade, the gold and lithium explorer’s shares are up 10% to $1.00.

Why is the Firefinch share price charging higher?

Investors have been bidding the Firefinch share price higher today after the company provided an update on the Morila Gold Mine in Mali.

According to the release, the Government of Mali has agreed to extend the establishment convention for the Morila Gold Mine for three years until 16 May 2025. The terms and conditions of the convention remain unchanged to allow the ramp-up of activities and gold production at Morila.

The release notes that the purpose of the convention is to lay down the general, economic, legal, administrative, financial, tax, customs and social terms and conditions as they relate to the Societe des Mines de Morila, the owner and operator of Morila.

The convention sits alongside the mining exploitation licence for Morila, which is valid until 4 August 2029. In due course, Firefinch will seek the further renewal of the convention to align with the term of the mining exploitation licence.

‘Morila the Gorilla’

Firefinch highlights that the agreement demonstrates the Government of Mali’s support of its activities at Morila, as well as the company’s efforts in supporting local communities through the revival of “Morila the Gorilla.”

The company’s Managing Director, Dr Michael Anderson, commented:

It is fantastic to have a strong relationship with the Malian Government who have shown tremendous support of Firefinch as we ramp up our activities at Morila. Since taking over ownership of the mine, we have worked to deliver on our “Mali first” motto and are pleased to employ a workforce that is 97% Malian. We are very focused on continuing the production ramp-up and look forward to building on our good working relationship with the Malian Government in doing so.

The post Why is the Firefinch share price shooting 10% higher today? appeared first on The Motley Fool Australia.

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• Why has the Firefinch share price tumbled 22% in a week?
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• These 3 ASX mining shares leapt more than 10% on Friday
• Firefinch share price tumbles 6% despite meeting gold production guidance

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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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.

What happened

It’s been a bloodbath in the crypto market of late. For the past two weeks, crypto investors have seen impressive selling pressure, taking the likes of top tokens such as Cardano (CRYPTO: ADA), Solana (CRYPTO: SOL), and Chainlink (CRYPTO: LINK) lower on a near-daily basis. 

However, these three top tokens have seen some buying pressure today, increasing 1.1%, 1.3%, and 0.5%, respectively, over the past 24 hours as of 3:30 p.m. ET. Interestingly, at the day’s highs this morning, these three tokens actually accelerated 6.9%, 7.5%, and 7.3%, respectively, since yesterday.

Today’s volatility in the crypto market has once again followed the price action seen in equity markets. All the major indexes have surged higher, with the Nasdaq leading the way with 2.76% gains at today’s close over yesterday.

Notably, recent reports have suggested that the correlation between cryptocurrencies and tech stocks has reached its highest level ever. Thus, the moves we’re seeing in some of the largest cryptocurrencies appear to be mirroring the movements in the largest tech stocks to a great degree.

So what

The whole argument behind cryptocurrencies representing an alternative asset class to equities and bonds appears to be falling apart. The market is now viewing digital assets much in the same what as tech stocks, for better or worse.

Given the tech sell-off we’ve seen of late, this has certainly been to the detriment of crypto investors. That said, on days when tech is rallying, these sorts of upside moves are possible. Thus, cryptocurrencies such as Cardano, Solana, and Chainlink are seemingly being viewed by investors as a higher-beta way to play already risky tech growth. 

Now what

I can understand the reason why the market is increasingly pricing cryptocurrencies and tech stocks in tandem. After all, the blockchain technology crypto tokens support is, in and of itself, a nascent high-growth technology. There’s plenty of upside for such tokens in times of accommodative monetary policy. However, with the punch bowl being taken away by the Federal Reserve, the future growth path for many digital assets is more uncertain than it’s been in a long time.

It should be noted as well that Cardano, Solana, and Chainlink investors have never been through a recessionary environment. With a greater recession risk being priced into all markets right now, it’s unclear what that means for these top tokens. Many investors appear to be taking the view that it’s better to wait on the sidelines than “HODL” right now. 

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

The post Don’t look now, but Cardano and Solana are recovering today appeared first on The Motley Fool Australia.

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• Crypto market crash: Cardano, XRP, and Solana all take big hits again today
• Why Ethereum, Solana, and Cardano all plunged today
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• Why Cardano is rising today

Chris MacDonald has positions in Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Solana. The Motley Fool Australia owns and has recommended Solana. 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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In my opinion, National Australia Bank Ltd (ASX: NAB) could be the smartest choice out of the big four ASX banks.

NAB’s other big four ASX bank peers include Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ,) and Westpac Banking Group (ASX: WBC).

I think that NAB can tick the boxes of what some investors might be looking for.

Dividend

Plenty of investors may look at big four bank shares for their dividend yields, so let’s start there.

The broker Citi thinks that NAB is going to pay an annual dividend of $1.50 per share in FY22 and $1.75 per share in FY23. At the current NAB share price, that translates into grossed-up dividend yields of 6.8% in FY22 and almost 8% in FY23.

While the above yields may not be the highest in the sector – for example, Citi thinks ANZ will pay higher dividend yields – it is still predicted to be a large dividend yield.

Dividends (and the dividend yield) alone aren’t likely to be enough to sway an investor into buying shares in a particular bank. There is normally more to an investment than just dividends.

Dividend growth can also be an important factor.

In the recent FY22 half-year result, NAB grew its interim dividend by 21.7% year on year to 73 cents per share. However, ANZ only grew its interim dividend by 2.9% to 72 cents per share and Westpac’s interim dividend was increased by 5.2%.

If NAB’s dividend keeps growing faster than ANZ and Westpac, its dividend yield could become the largest (at the current share prices).

Leadership and growth

Since the appointment of NAB CEO Ross McEwan in 2019, NAB has improved its performance. McEwan has more than 30 years of experience in the finance, insurance, and investment industries.

NAB notes that McEwan also has extensive experience in leading organisations through significant change and recovery. Before joining NAB, McEwan was Group CEO of Royal Bank of Scotland from 2013 to 2019 where he led a turnaround of the bank after the GFC.

NAB is generating profit growth. In HY22, cash earnings rose by 4.1% year on year to $3.48 billion. Westpac’s HY22 cash earnings were down 12% year on year to $3.1 billion.

ANZ’s cash earnings increased by 4% year on year to $3.1 billion. However, compared to the second half of FY21, ANZ’s cash profit declined 3%. NAB’s HY22 cash profit rose 8.2% compared to the second half of FY21.

NAB share price valuation

For me, NAB has a good dividend yield. The dividend is projected to keep rising at a good pace, while ANZ and Westpac dividends are growing more slowly.

CBA is often seen as the highest-quality bank. But I think that NAB’s valuation makes it a more attractive choice.

Using Citi’s estimates, the NAB share price is valued at 15 times FY22’s estimated earnings and 13 times FY23’s estimated earnings.

Compare that to the valuation on the CBA share price – it’s priced at 20 times FY22’s estimated earnings and 18 times FY23’s estimated earnings.

For growth and quality reasons, I think NAB is a better pick than ANZ and Westpac. It also seems much better value to me than buying CBA shares.

It’s worth keeping in mind too that the rising interest rate environment can help grow the profit of banks.

The post Why I think NAB shares could be the smartest big four ASX bank to buy appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Boral Limited (ASX: BLD) share price is under pressure on Wednesday.

In morning trade, the building products company’s shares are down 3% to $3.12.

Why is the Boral share price sinking?

Investors have been selling down the Boral share price today after the company revealed that its earnings have taken a hit from recent inclement weather and higher energy prices.

According to the release, the company no longer expects to achieve the earnings guidance it provided in late March. It was previously expecting underlying earnings before interest and tax (EBIT) for its continuing operations (excluding Property) in FY 2022 to be between $145 million and $155 million.

Though, that guidance came with a proviso. It assumed no further extraordinary rain events. Unfortunately, that has not been the case, with New South Wales and Queensland continuing to face heavy rainfall in April and May.

As a result, the company expects this inclement weather and inflationary cost pressures to adversely impacts its underlying earnings in FY 2022 by ~$45 million.

This comprises a ∼$30 million adverse impact from exceptional rainfall on volumes and costs and a ~$15 million impact from inflation. The latter is primarily due to higher energy costs, which are assumed to continue to be elevated until the end of FY 2022.

Transformation plan falls short

Boral also provided an update on product price increases and its transformation program.

In respect to the former, Boral advised that the product price increases implemented in January and February are having a positive impact. However, they have been insufficient to offset the impact of more recent increases in energy prices.

And while its transformation program is expected to deliver a benefit of $45 million to $50 million in FY 2022, this has fallen short of its target range of $60 million to $75 million.

Management commentary

Boral’s CEO & Managing Director, Zlatko Todorcevski, said:

Ongoing rainfall in many parts of the east coast, particularly in New South Wales and Queensland, has continued to significantly impact our sales volumes, while also resulting in additional costs.

This has coincided with further sharp increases in energy prices, particularly in coal and electricity, impacting our production and logistics costs.

We are responding to this challenging operating environment by implementing additional measures to mitigate the impact of transport and fuel inflation alongside the already announced out of cycle price increases, and accelerating our focus on costs.

The post Boral share price down 3% on earnings hit appeared first on The Motley Fool Australia.

More reading

• Boral share price climbs amid ‘game changing’ carbon project
• The Boral share price has been smashed 10% so far in May. What’s happening?
• What’s happening to the Boral share price today?

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

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The ASX market has been heavily sold off this month and has presented some lucrative buying opportunities.

Particularly now that the earnings season for a majority of the companies including the banks is past us.

Trawling through financial reports will give you a good financial snapshot of the company you may be looking to buy in. 

As Warren Buffet once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Below, are two dividend shares that I would be happy to pick up today.

Dicker Data Limited (ASX: DDR)

This leading Australian wholesale and distributor of computer hardware and software could be a great option for investors.

Dicker shares have been beaten down in 2022 despite the company recording impressive growth in its first quarter trading update.

Since late March, the Dicker Data share price has fallen by 18% to finish at yesterday’s closing price of $12.52.

Management highlighted that it expects to see gross margin lift to 9% for the full year. This is an improvement over the 8.6% achieved in the first half.

Furthermore, the board noted that it intends to pay a fully-franked quarterly dividend of 13 cents per share for FY22. Notably, this will bring the full-year dividend to 54 cents per share, which represents a 44% increase year on year.

I think that Dicker Data is trading at bargain levels and would class it as a buy for income investors.

Fortescue Metals Group Limited (ASX: FMG)

Regardless of being one of the world’s largest iron ore producers, the Fortescue share price has tumbled in recent times.

In mid-March, the company’s shares hit a year to date low of $16.87 following a slump in global iron ore prices.

However, it wasn’t long after before that the price of the steel making ingredient soared above US$160 per tonne.

Since then, Fortescue shares have recovered some ground but remain well below its year to date high of $22.99.

At Tuesday’s market close, the company’s shares closed at $19.39. When comparing with the above 2022 high, this reflects a decline of around 15%.

In Fortescue’s trading update for the three months ending 31 March, management highlighted a record third quarter operating performance.

The company said that it expects this to “contribute to strong cash flow generation and upgraded guidance for full year shipments”.

When looking at its dividends, the board paid an interim dividend of 86 cents per share in March.

While considerably lower than the $1.47 per share distributed to shareholders in H1 FY21, Fortescue could make inroads again.

This is due to the company anticipating shipment guidance of between 185 to 188 million tonnes for FY22. This compares to its previous guidance of 180 to 185 million tonnes.

With higher shipments in the midst of firm iron ore prices, this could amplify revenue realisation for the company.

In summary, I believe that the iron ore miner still has a lot of runway left given its attractive share price.

In my opinion, Fortescue is a solid buy for investors seeking shareholder value and dividend growth.

The post Why I think these are the best ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

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• Analysts rate these ASX growth shares as buys this month
• Which ASX 200 mining share has the highest dividend yield in May?
• Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations
• Is the Fortescue share price cheap after dropping 10% in a month?

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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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