The Fortescue Metals Group Limited (ASX: FMG) share price dropped by double-digits in June. Including the fall on Friday, the past month shows a drop of 17%.

As an iron ore miner, Fortescue is exposed to movements in the iron price as well as sentiment about commodities and miners.

Resource businesses are price-takers. That means miners have to take the price that buyers are buying at. The iron ore price has seen a lot of volatility over the last year or so.

There have been times of strong demand from China. There was also a period last year when Chinese steel demand production fell (perhaps to reduce emissions before the Winter Olympics).

Looking at where Fortescue shares were a year ago, the Fortescue share price has fallen close to 30%.

After a difficult time in recent history, could the ASX mining share mount a turnaround starting in July?

Broker thoughts on the Fortescue share price

Brokers don’t have a working crystal ball, but they like to estimate price targets – that’s where they think the Fortescue share price will be in 12 months from the date of the price target opinion.

Different brokers have various optimistic or pessimistic thoughts on which direction Fortescue is headed over the next year.

The broker Macquarie currently has a neutral rating on the big iron ore miner. Its price target is $18. After the recent fall of the ASX mining share, that implies a possible rise of around 5%. Iron ore prices are remaining stronger for longer, while there’s also currently a reduced discount for Fortescue’s iron ore, which is lower quality than the iron from some of its main competitors.

The broker Morgan Stanley currently has an underweight rating on the miner. Its price target is $14.20, which implies a possible fall of approximately 17%. Chinese lockdowns led to the broker reducing its expectations for commodity prices. The amount of money that Fortescue is spending on its green initiatives through Fortescue Future Industries (FFI) is also a concern for the broker.

The broker Ord Minnett has a hold rating on the business. The Fortescue share price target here is $19, which implies a rise of around 11%. Ord Minnett thinks Fortescue is the best iron ore producer.

Dividend expectations

Of the three brokers I’ve mentioned, I’ll outline two of the projections for the Fortescue grossed-up dividend yield in FY23.

Ord Minnett has estimated that Fortescue could pay a grossed-up dividend yield of 15%. Macquarie has pencilled in a grossed-up dividend yield of 17.9%.

Next steps for Fortescue

Fortescue is scheduled to release its quarterly production report for the three months to June 2022.

Then comes reporting season for the year to 30 June 2022, where we’ll learn of Fortescue’s net profit after tax (NPAT) for FY22, the final dividend and comments for the upcoming year (and beyond).

The post Should investors dig the Fortescue share price in July? appeared first on The Motley Fool Australia.

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• How did the Fortescue share price perform in June?
• These ASX 200 mining shares are digging a deeper hole on Friday
• What’s dragging on the Fortescue share price today?
• How have ASX 200 mining shares fared over June?
• Which ASX 200 mining share offers the best dividend yield for FY22?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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 Transurban Group (ASX: TCL) share price rose on Friday by 0.83% to finish the session at $14.50.

Transurban has rallied on the ASX this year with its share price rising 4% over the first half of 2022.

But investors endured a tumultuous month in June.

Transurban shares dropped from a closing price of $14.70 on 3 June to a trough of $13.63 on 16 June. Then they rose again to finish the month flat — up 0.07%.

What do the experts think of the Transurban share price?

As my fellow Fool James reported today, Morgans has an add rating on Transurban. The broker’s 12-month share price target is $14.42.

A number of other brokers have weighed in on Transurban’s short-term future. Some are positive, some are negative.

The asset management company Cameron Harrison sits on the positive side. Transurban is currently the top holding in the company’s portfolio.

Why Transurban is our No. 1 stock pick

Partner David Clark is responsible for investment management at Cameron Harrison.

In an interview with the Australian Financial Review (AFR), Clark says Transurban is benefitting from rising inflation.

Clark said:

The toll road operator is a short-term beneficiary of the current inflation cycles and economic reopening.

Transurban’s toll road concessions have very strong inbuilt inflation protection, with two-thirds of revenue linked to the inflation rate and a further quarter fixed at 4.25 per cent (until 2029).

The concession tenures have an average life of 30 years and toll rates cannot be reduced in the event of deflation.

This means the current spike in inflation (and subsequent fall to reasonable levels) will lead to structurally higher revenues throughout the term of the concession.

Transurban has pricing power

Clark says Transurban’s pricing power is an advantage in today’s economy.

He explained:

When we assess the current inflationary environment, we are looking for companies that can exert pricing power in their markets, which can be used to mitigate rising input costs.

Pricing power presents itself in a variety of ways.

For instance, companies with a dominant market position can leverage that into market pricing power (Bunnings/Wesfarmers Ltd (ASX:WES)), revenues that are predominately associated with essential spending (healthcare or staples/supermarkets), cash flows with inbuilt inflation escalation (toll road operators, such as Transurban) and/or are at the beginning of the supply chain (industrial commodities producers OZ Minerals Limited (ASX: OZL) and BHP Group Ltd (ASX: BHP)).

The post Here’s why Transurban shares are this fund manager’s top holding appeared first on The Motley Fool Australia.

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• Brokers name 2 ASX dividend shares to buy next week

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited. 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 Wesfarmers 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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June was an especially tough month for ASX shares and the S&P/ASX 200 Index (ASX: XJO). But what about the BetaShares Nasdaq 100 ETF (ASX: NDQ)? This exchange-traded fund (ETF) doesn’t even hold any ASX shares within it. So how did it go last month?

So the NDQ ETF is the only ASX exchange-traded fund that solely covers the NASDAQ-100 (INDEXNASDAQ: NDX) Index. The Nasdaq is one of the two major US stock exchanges. It tends to house the US’s tech companies, which gives it a noticeable weighting bias towards this sector. Indeed, more than half of NDQ’s weighting is towards tech shares.

So how did the NDQ ETF perform over June?

Well, it wasn’t a fantastic month for investors. NDQ units started the month off at a price of $28.23. But this ETF finished up on Thursday at $26.71. That’s a loss of 5.38% for June. Interestingly, the index that the NDQ ETF tracks – the Nasdaq 100 – fell by far more, around 9%. So this difference can probably be explained by currency fluctuations between the Aussie and US dollars.

Now, that 5.38% loss might not be what NDQ investors wanted out of June. But it’s arguably not a terrible result, considering the ASX 200 index fell by a far greater 8.9%.

But still, rec is red. And it wasn’t a good month for Nasdaq investors by any means.

The NDQ ETF is dominated by the largest US tech shares. Indeed, its largest five holdings are none other than Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). All familiar names, I’m sure. Together, this ‘famous five’ make up more than 40% of NDQ’s entire portfolio weighting.

None of these five companies recorded gains over June. The losses range from Alphabet’s 4.33% loss (for the GOOGL Class A shares) to Amazon’s loss of 11.65%.

So with so much red ink within NDQ’s underlying portfolio, it’s perhaps no wonder that this ASX ETF recorded a loss last month. Like with ASX tech shares over June, it’s likely that Nasdaq tech shares came under pressure from concerns over inflation and higher interest rates. Tech shares often get hit harder than most in this kind of investing environment.

So after June’s disappointing returns for the NDQ ETF, no doubt investors will be hoping for a better July.

The post Here’s how June treated the NDQ ETF appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. 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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Last month was a rough one for the Santos Ltd (ASX: STO) share price despite no news having been directly released by the company.

Though, the S&P/ASX 200 Index (ASX: XJO) energy giant was likely weighed down by falling energy commodity prices.

As of the final close of June, the Santos share price was $7.42 cents. That’s 9.51% lower than it was at the end of May.

For context, the ASX 200 slipped nearly 9% last month.

So, what’s been going wrong for the ASX 200 energy share recently? Let’s take a look.

What happened to the Santos share price in June?

The Santos share price suffered a notable tumble last month despite no news direct from the company.

However, Santos was the talk of the town as an energy crisis unfolded in June. Speaking on the crisis, the company’s CEO Kevin Gallagher was quoted by media as saying:

The scarcity of new developments today is frightening with forecasts of tight supply over coming years … Customers are crying out for this gas with more demand than we can meet when it comes to market around 2026. And I am trying to bring Narrabri to market earlier if that is possible.

Of course, such demand may have helped energy commodity prices spike earlier in the month.

The Australian Energy Market Operator (AEMO) capped gas prices in parts of Australia in mid-June after they reached cumulative high price thresholds. It later implemented and lifted a suspension on the National Energy Market (NEM) wholesale market.

Around that same time, the Santos share price reached a new 52-week high of $8.86.

Additionally, US natural gas futures hit its highest point since 2008 in early June. But that’s behind us now. Gas prices have since retreated to a three-month low, according to Trading Economics.

Meanwhile, oil prices recorded their first monthly decline of 2022 in June. The Brent crude oil price slipped 1.2% to reach US$114.81 a barrel on Thursday while the West Texas Intermediate oil price plunged 3.7% to US$105.76 a barrel.

All this may have weighed on the Santos share price over the last few weeks. Though, the poor month’s performance wasn’t enough to push the ASX 200 energy giant into the longer-term red.

The Santos share price is currently 9% higher than it was at the start of 2022. It has also gained 1.5% since this time last year.

The post Why did the Santos share price plunge 10% in June? appeared first on The Motley Fool Australia.

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• Why are ASX 200 energy shares dragging on the market today?
• Santos shares go cold despite energy regulator outlining ‘crucial’ role gas will play for decades
• How did ASX energy shares perform in June?
• 5 things to watch on the ASX 200 on Thursday
• Why are ASX 200 energy shares surging 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 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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It wasn’t a great month for ASX 200 shares or the S&P/ASX 200 Index (ASX: XJO) last month. June saw the ASX 200 lose a painful 8.9% of its value. But it was a lot bleaker for ASX 200 tech shares.

As is often the case, June saw ASX tech shares pull back by far more than the broader market. Although the ASX 200 lost 8.9% over June, the S&P/ASX All Technology Index (ASX: XTX) went backwards by 10.3%.

But many ASX tech shares had an even worse time of it than the All Tech index. Take Xero Limited (ASX: XRO). Shares of this online accounting software provider fell by 13.8% over the month just gone. Or Block Inc (ASX: SQ2). Block shares shed a nasty 28.17% over June alone. Zip Co Ltd (ASX: ZIP) takes the cake with its disastrous loss of 52.17% over the month.

Other prominent ASX tech shares include WiseTech Global Ltd (ASX: WTC), losing 10.1%, Seek Limited (ASX: SEK) down 13.4%, and Appen Ltd (ASX: APX) with its 13% loss.

But it wasn’t a total wash for ASX tech shares. Some recorded gains for June. These included Pro Medicus Limited (ASX: PME), which rose 0.28%.

But overall, it was a pretty nasty month for ASX tech shares.

What happened to ASX 200 tech shares last month?

But why? Well, there wasn’t a lot of news out of the sector itself over June. But we did see similar moves over on the US markets. June also saw many US tech shares record similar losses. Take Tesla Inc (NASDAQ: TSLA). It lost more than 11% last month.

So we can probably blame ASX tech shares’ poor June on the concerns over inflation and rising interest rates that have dominated investors’ fears for months now. Last month saw both the US Federal Reserve and our own Reserve Bank of Australia (RBA) decisively hike interest rates. Most commentators expect many more rate hikes over the rest of the year, and into 2023.

Tech shares, with their (in many cases) future-derived valuations and lack of present profitability, are often perceived to be riskier assets in this kind of environment. Thus, it’s perhaps no surprise that these kinds of companies have copped the worse of the market’s falls over June. No doubt investors will be hoping for a brighter July. But we’ll have to wait and see what this month brings for the ASX 200 tech shares sector.

The post What on earth happened to ASX 200 tech shares in June? appeared first on The Motley Fool Australia.

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• Why did the Zip share price crash more than 50% in June?

Motley Fool contributor Sebastian Bowen has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd, Block, Inc., Pro Medicus Ltd., Tesla, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Reserve Bank of Australia (RBA) will be holding its latest cash rate meeting next week and the economics team at Westpac Banking Corp (ASX: WBC) are expecting more pain for borrowers.

What is Westpac forecasting?

Last month the RBA elected to raise rates by 0.5%, taking the benchmark cash rate to 0.85%.

According to the latest Westpac Weekly economic report, Australia’s oldest bank expects the RBA to follow up June’s hike with another 0.5% increase next week. This will take the cash rate to 1.35%.

Westpac’s chief economist, Bill Evans, believes the central bank should go hard early. Particularly when rates are still relatively low. Whereas he feels smaller increases will be appropriate in an “uncertain environment.”

He commented:

We advocated pushing hard on rates at the beginning of the cycle when the risk of overtightening was low.

My interpretation of the “uncertain environment” is that in due course, when rates are higher, that consideration will be relevant. Once policy is near the top of the “neutral zone” [1.5–2.0%] the impact of policy on the economy does become more uncertain and caution is warranted.

It is for this reason that Evans believes a 50 basis points increase next week is almost inevitable.

So, now that the Board has clarified its position on the best approach to policy it would seem quite clear that with the cash rate at only 0.85% a second decisive move of 50 basis points is the appropriate policy.

What about future meetings?

Westpac’s chief economist suspects that a third consecutive 50 basis points hike will be coming at the August meeting if inflation remains high.

Though, Evans isn’t advocating a fourth consecutive hike in September. He would prefer the RBA to sit tight and see what impact other rate increases have before acting again.

Our view is that a better policy would be to raise the cash rate by 50 basis points in August and then pause in September so that the unprecedented cumulation of four consecutive meetings totalling 175 basis points can be assessed. There will be no indication of that strategy in July. We will have to await the August Statement to see whether the pause is favoured by the Board.

All eyes will be on the ASX 200 on Tuesday to see how it deals with the news. Here’s hoping it is better than last time!

The post Westpac tips another big RBA rate hike next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price looks set to take off in 2022 and beyond, in my opinion.

Why? Webjet is one of the biggest ASX travel shares on the ASX, with a market capitalisation of $2 billion, according to the ASX.

Over the last month, Webjet shares have fallen by around 10%. However, after the recent turbulence, I believe that Webjet could go higher from here.

The last two and a half years have been tough for the business, with the company suffering from COVID-19 impacts.

But, with COVID lockdowns fading into history for much of the world, I think the Webjet share price now looks like an opportunity.

Optimism about Webjet

The simple reason why I believe the ASX travel share could be a good shout is due to expectations of growing earnings.

For example, in FY24, numbers on financial service company CMC Markets suggest that the Webjet could generate 30.5 cents of earnings per share (EPS). That would mean the current Webjet share price is valued at 18x FY24’s estimated earnings.

I think Webjet’s earnings can rise because of the return of demand for travel and increasing efficiencies.

Indeed, we heard in mid-May 2022 about the Webjet FY22 result and current conditions.

The ASX travel share said that WebBeds returned to profitability in the FY22 second half, driven by North American and European markets.

The Webjet online travel agency (OTA) business was profitable in FY22, despite border closures and the impact of the COVID-19 variant, Omicron.

Webjet itself said that there were “significant growth opportunities” with all of its businesses as global travel markets reopen.

What about WebBeds?

A key part of my optimism for the business and the Webjet share price is the fact that WebBeds is on track to be 20% more cost-efficient than pre-COVID booking volumes, despite global wage pressures.

It has a significant program underway, with seven automation processes deployed in areas like mapping, cancellations and confirmations. It’s improving conversions and delivering cost savings by automating labour-intensive processes.

Webjet is working on its enterprise resource planning (ERP) unification program, with the first stage going live in the second half of FY22. Efficiencies in core payables and receivable functions are “starting to come through” as volumes increase.

WebBeds is expecting the earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be 62.5% when back at scale.

Outlook looks positive

Webjet said in May that there were “strong signs of demand” with its daily customer search activity. It’s also seeing “demonstrable indicators of confidence” in the recovery from supply partners as they invest in capacity for the future.

For example, ASX airline shares Qantas Airways Limited (ASX: QAN) and Regional Express Holdings Ltd (ASX: REX) have placed orders for more aircraft.

Webjet said that the WebBeds total transaction volume (TTV) for May 2022 was tracking above pre-pandemic levels, with 14 of the top 25 markets now trading at or above pre-pandemic booking volumes.

It has also seen “strong booking momentum” for the Webjet OTA business as international tourism recommences. Total bookings for May were tracking at 80% of pre-pandemic levels. It said that it continues to build its market share, extending its lead as the number one online travel agent in Australia and New Zealand.

With this positive outlook, I think there’s plenty to like about the future for the Webjet share price.

The post Here’s why I think the Webjet share price could fly higher in 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price struggled last month despite the company’s silence.

After finishing May at $20.50, Flight Centre shares were swapping hands for just $17.36 at the final close of June. That represents a 15.32% tumble.

For context, the S&P/ASX 200 Index (ASX: XJO) fell around 9% over the course of June.

So, what’s been weighing on the travel giant’s stock lately? Let’s take a look.

Flight Centre share price falls 15% in June

The Flight Centre share price underperformed last month. Though, it wasn’t alone in its suffering.

It was joined in the red by fellow ASX travel shares Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB). They fell around 19% and 11% respectively last month.

And while there wasn’t any price-sensitive news from Flight Centre in that time, it did make a number of headlines.

First, the company announced it would invest between $30 million and $35 million in staff retention.

It will do so by offering around 10,000 staff members additional share rights, as long as they stay with the company through the COVID-19 recovery phase. Eligible staff members will be offered a one-time grant of share rights valued at $3,750.

Additionally, ASX-listed airline Regional Express Holdings Ltd (ASX: REX) announced it had partnered with Flight Centre last week. The deal will see Rex become Flight Centre’s “partner of choice” over the next 10 years.

Of course, it’s worth looking at the broader travel industry to garner insights into the Flight Centre share price’s performance.

National Australia Bank Ltd (ASX: NAB) recently found Australians spent more on international flights in May 2022 than in May 2019.

Similar findings were released by Tourism Research Australia. It noted Australians took fewer trips in March 2022 than in the same month of 2019, but spent more to do so.

However, with the rising cost of living and household cash flows tipped to ebb, Australians’ spending on holidays could soon backtrack.

And finally, Flight Centre remains the most shorted share on the ASX. As of 27 June, 16% of the company’s shares were in the hands of short-sellers.

The post Why did the Flight Centre share price tumble 15% in June? appeared first on The Motley Fool Australia.

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

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ASX 200 healthcare shares were defensive in June but finished the month down overall.

The benchmark S&P/ASX 200 Health Care Index (ASX: XHJ) was volatile, slipping 3% in June. Nevertheless, there were some names worth mentioning. Let’s take a look.

CSL Limited (ASX: CSL)

Shares in biotech giant CSL finished June down but managed to bounce from a low of $255 on 17 June to finish at $269 apiece.

It was a quiet month for CSL, however, the company’s large market cap and defensible industry arguably helped it through the month relatively unscathed.

The $129 billion company by market cap is also tipped to soar past $300 per share by those at Cameron Harrison.

Analysts at the firm note that CSL is positioned to benefit from tailwinds in its plasma collection and influenza vaccine businesses.

CSL shares are down 4.5% over the last 12 months.

Immutep Ltd (ASX: IMM)

Another ASX 200 share to mention is Immutep. Its shares were extremely volatile last month, trading as low as 14 cents and as high as 24 cents.

Despite continued updates regarding its lead drug candidate, etfi, investors appear to have overlooked the share in favour of more systematic risks plaguing the markets.

Immutep has several trials that are investigating etfi’s efficacy in a number of applications. Etfi has been recognised at the recent American Society of Clinical Oncology (ASCO) 2022 Special Edition.

Immutep shares are down 51% into this year to date.

Incannex Healthcare Ltd (ASX: IHL)

Another share that struggled last month was Incannex Healthcare. Again investors were mute to updates on the company’s drug studies in June.

For instance, on 2 June, it announced positive results from a phase 2 clinical trial investigating the effect of one of its drug candidates, IHL-42X.

It was being tested for treatment of obstructive sleep apnoea.

After a minor jump, the Incannex share price cratered in the days afterwards. It hasn’t stopped trading down and investors are unloading their positions at pace.

Incannex now trades 65% down this year to date and 16% in the past 12 months.

The post Here’s how ASX 200 healthcare shares performed in June appeared first on The Motley Fool Australia.

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More reading

• 5 worst ASX All Ordinaries shares in June
• Why a CSL share price above $300 is on the cards: expert
• ASX 200 healthcare shares provided some pain relief today. Here’s why
• What’s the outlook for the CSL share price in July?
• Own Immutep shares? Here are 3 takeaways from the company’s investor update

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 positions in and has recommended CSL Ltd. 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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If you’re looking for ASX dividend shares to buy next week, then the two listed below could be worth considering.

Here’s what you need to know about these dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share for income investors to consider buying next week is Coles. It is of course one of Australia’s big two supermarket operators along with Woolworths Group Ltd (ASX: WOW).

Coles could be a good option for investors in the current environment. This is due to its defensive qualities and positive exposure to inflation. Particularly given how during the third quarter there were “no observable signs of trading down or lower volumes in response to higher food inflation,” according to analysts at Citi.

In light of this, its analysts have put a buy rating and $19.30 price target on the company’s shares.

As for dividends, Citi is expecting fully franked dividends of 63 cents per share in FY 2022 and 72 cents per share in FY 2023. Based on the latest Coles share price of $17.84, this will mean yields of 3.5% and 4%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider is Coles’ former parent, Wesfarmers. It may have divested Coles but it held onto some other high quality brands such as Kmart, Officeworks, and Bunnings.

The team at Morgans is very positive on the company even as cost of living pressures increase. It highlights that “management was confident in WES’s ability to navigate through a more cautious consumer environment.” Morgans also believes that “Kmart can benefit as customers focus on value.”

As a result, the broker has put an add rating and $58.40 price target on the company’s shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $42.15, this will mean yields of 3.9% and 4.3%, respectively.

The post Experts name 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Broker names 3 of the best ASX shares to buy in July
• How does the Woolworths dividend compare to Wesfarmers over the last 5 years?
• Why I think the current Wesfarmers share price is a steal
• 4 ASX dividend shares to buy that aren’t banks or miners: expert
• ASX 200 retail shares in the doldrums today despite improving sales data

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 COLESGROUP DEF SET and Wesfarmers 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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