The Beach Energy Ltd (ASX: BPT) share price is in reverse today following the company’s Bass Basin update.

At midday on Monday, the energy producer’s shares are down 6.95% to $1.57.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in negative territory by 0.8% to 6,422.8 points.

Beach Energy identifies new Yolla West infield opportunity

Investors are offloading Beach Energy shares this morning after the company announced some changes.

According to its release, Beach Energy has identified a drillable fault block over the Yolla field.

This came to light following a move to reprocess the existing 3D seismic data.

As such, management has decided to prioritise the development of Yolla West, which represents a lower-cost and higher-returning investment opportunity.

If the drilling yields successful results, Yolla West could be connected to the Lang Lang Gas Plant.

Consequently, the company has had to defer the final investment decision for Trefoil past the original timing of H1 FY23.

Evidently, this allows Beach Energy more time to complete the interpretation of the Prion 3D seismic survey. The company expects this to occur around mid-FY23.

In addition, management can further refine the most cost-effective development option and benchmark the Trefoil investment case against other opportunities.

At the moment, Beach Energy is in discussions about securing a rig at Yolla West.

A drilling campaign is being targeted to commence over the 2022/23 summer.

However, this is subject to receiving regulatory and joint venture approvals.

Beach Energy CEO Morné Engelbrecht touched on the Bass Basin acreage, saying:

The decision to prioritise Yolla West and defer Trefoil is consistent with our focus on pursuing value maximising investments.

As elevated demand in the east coast gas market exacerbates spot gas prices, Yolla West presents as an opportunity to get new gas supply to market in a timely manner. Market engagement for these potential new volumes will commence shortly.

It’s worth noting that natural gas prices are currently down 3.38% to US$6.71/MMbtu (British thermal unit) today. This could also be impacting Beach Energy shares.

Beach Energy share price snapshot

Despite today’s losses, the Beach Energy share price has surged more than 20% over the last 12 months.

These gains have mostly come from gains achieved year to date, up 24.8%.

Beach Energy shares touched a 52-week high of $1.905 on 9 June before sinking 15% in a week.

Based on today’s price, Beach Energy presides a market capitalisation of roughly $3.86 billion.

The post Why is the Beach Energy share price tumbling 7% on Monday? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• Despite recent volatility, the Beach Energy share price has still gained over the past 3 weeks. Here’s why
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

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

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The Woodside Energy Group Ltd (ASX: WDS) share price is having a rough day on the market today.

The energy giant’s shares have descended 4.42% and are currently trading at $30.51. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.03% today.

Let’s take a look at what could be weighing on the Woodside share price today.

Oil prices sink

Woodside shares are sliding, but it is not the only oil and gas producer in the red. The Beach Energy Ltd (ASX: BPT) share price is tumbling 5.47% today, while Santos Ltd (ASX: STO) shares are down 4.36%. For context, the S&P/ASX 200 Energy Index (ASX: XEJ) is also down 5% to 9,609.3 points.  

Investors could be reacting to plunging oil prices in US markets. Oil prices descended to a four-week low on Friday. The WTI crude oil price tumbled a mammoth 6.8% to US$109.56 a barrel while benchmark Brent crude oil plummeted 5.6% to US$113.12 a barrel.  

Recession fears in the US and a stronger US dollar may have impacted oil prices, Reuters reported. A higher US dollar makes oil more expensive for those reliant on non-US currencies. OANDA senior market analyst Edward Moya said:

Crude prices tumbled as the dollar rallied, Russia signaled oil exports should increase, and as global recession fears grow.

Oil prices are now recovering slightly in Asian markets today with Brent crude up 0.77% to US$110.40 a barrel, while WTI crude oil is rising 0.77% to $113.99 a barrel, Bloomberg data reveals.

Falling natural gas prices could also be impacting gas producers including Woodside. The natural gas price has dropped 3.36% to US$6.71 MMBtu, according to Bloomberg.

Meanwhile, analysts at JP Morgan have recently predicted significant upside for the Woodside share price. The broker has recently placed a $37 price target on the company’s shares, a 21% upside. Analysts are also tipping Woodside to pay US$20 billion in dividends over the next decade.

Woodside share price snapshot

Despite today’s fall, the Woodside share price has surged nearly 32% in the past year. Year to date, it has leapt close to 40% alone.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 12% over the past year.

The post Why is the Woodside share price sliding on Monday? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Can Woodside shares deliver an attractive dividend yield AND 16% upside in 2022?
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Why is the Woodside share price in the red today?

Motley Fool contributor Monica O’Shea 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.

With the stock market officially in bear-market territory, it’s only natural to wonder just how bad things could get before we hit the bottom. Indeed, while 2022 has been rough on the stock market, thus far this year, the worst single day in the S&P 500 was only a 4% decline. That’s not even enough to trip the market’s “circuit breakers” to put a temporary pause on trading. While the decline has been painful, it hasn’t been a full-on rapid market crash, with all the instant wealth destruction that entails.

In other words — it could still get worse, should the market end up outright plummeting from these levels. Despite that ugly potential, there are at least three reasons not to worry about a stock market crash, as long as you’re prepared for one to come your way. 

1. You have a decent emergency fund in cold, hard cash

Although inflation is eating away at the purchasing power of your cash, the reality is that a market crash can destroy far more value in a day than even currently elevated inflation rates can destroy in a year. In addition, serious market crashes often bring severe job losses along with them. 

If you lose your job during or just after a market crash, or otherwise face a crisis while the market is down, then an emergency fund can give you some much needed buffer. A reasonably sized emergency fund — around three to six months’ worth of expenses — won’t keep you afloat forever, but it will buy you some much needed time. 

That cushion can keep you from being forced to sell your stocks in the middle of a very rough market. After all, your bills don’t stop arriving just because the market is down or you lost your job. Not being forced to sell shares near their lows, thanks to an emergency fund, can make all the difference in being able to participate in any market recovery that follows.

2. You don’t need to sell your stocks to cover your near-term costs

If 2022 has done anything useful for investors, it has reminded us that stocks can go down as well as up. This is why money you’ll need to spend within the next five years or so does not belong in stocks.

Instead, money you know you’ll need to spend within that time frame should be in cash, CDs, or high-quality and duration-matched assets such as Treasury investment-grade bonds. To be clear, you won’t earn much on those types of investments, but there’s a much higher likelihood of that money being there when you need it. Just like an emergency fund, these assets can keep you from being forced to sell while the market is down just to cover your costs.

The other benefit this approach gives you is that it goes a long way toward helping you keep your wits about you when the market is crashing. To support the long-term thinking needed to stay invested while stocks are down, there’s nothing quite like knowing you don’t need to spend the money you’ve put into stocks in the next few years.

3. You’re not using margin to invest

As long as you’re not using margin to invest, the mere fact that stock prices are falling rapidly won’t require you to sell your positions. If you are using margin, however, falling stock prices can trigger a margin call, which could force you to sell while your positions are down.

When a margin call takes place, your broker can liquidate any position in your account. During a margin call, your broker doesn’t care about the long-term prospects of your investment, whether you’re facing a capital gain or a loss, or anything else of value to you. All the broker cares about is closing out the call and eliminating your obligation. As a result, a broker-enforced liquidation could not only keep you from participating in any recovery that follows, it could also cause some nasty tax consequences as well. 

Margin is truly a double-edged sword, and it’s also a tool your broker uses to stack the odds in its favor. Not only does your broker collect interest when you take out a margin loan, but that broker can also change the terms of the margin agreement. Often, that involves setting terms more strictly after a stock has fallen, which can force a margin call or make an existing one worse. It’s tempting to use margin in a rising market, but when (not if) the market falls, your losses can easily more than offset any gains.

Putting it all together

If all three of these statements currently apply to you, it will be much easier for you to ride out a market crash; indeed, you might even be able to take advantage of a crash to buy great companies at cheap prices. If, on the other hand, you’re missing out on one or more of them, there’s no time like the present to get yourself ready.

Whether or not the market plunges soon, the reality is that it will crash again at some point. Getting yourself prepared before it happens will put you in a much better spot than you’ll be in if it crashes before you’re ready. So put your plans in place today, and you may be able to dramatically reduce your worry about the state of the market. 

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

The post 3 reasons not to worry about a stock market crash appeared first on The Motley Fool Australia.

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• Here’s why the Hawsons Iron share price spiked 12.5% on Monday
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• Shares in Aussie EV charging station company Tritium have plunged 60% since February. What’s next?
• Transurban share price jumps as dividends hit pre-pandemic highs
• Beginners: Investing in ASX shares for the first time? Here’s what you should know

Chuck Saletta 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.

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

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The Hawsons Iron Ltd (ASX: HIO) share price spiked in early trade on Monday after the company announced a major land deal.

The iron ore developer and producer has entered a two-year option agreement that could see it snapping up land suitable for an export facility.

At the opening bell on Monday, Hawsons Iron shares shot up to 49.5 cents – representing a 12.5% gain. However, they have since given back those gains, and some. At the time of writing, the Hawsons Iron share price is 42 cents, down 4.55%.

Let’s take a closer look at today’s news from Hawsons Iron.

What boosted the Hawsons Iron share price today?

Hawsons Iron stock surged in morning trade following news of a deal that could see it buying 1,000 acres suitable for developing a deep-water export facility for $14 million.

The land spans three plots and is located at Myponie Point on South Australia’s eastern Spencer Gulf.

Under the agreement, Hawsons Iron will have the option to buy the land for two years after the execution date. The agreement brings the company closer to its goal of supplying high-grade iron ore products.  

It comes on the back of a memorandum of understanding between the company and Flinders Ports. This sees the pair agreeing to work together to design, construct, and operate the Myponie Point Port. The end goal is the export of 20 million tonnes of magnetite concentrate each year.

The port is expected to be able to export Hawsons’ 70% iron magnetite concentrate by the second half of 2024.

Hawsons Iron managing director Bryan Granzien commented on the news driving the company’s share price today:

This agreement secures a crucial export site required for the planning and development of our 20 million tonnes per annum project and importantly provides significant additional space to accommodate expansion of the Myponie Point Port into a multi-user, bulk commodity export facility.

Now that we have identified our port location, planning and detailed design work can continue on the deep-water port facility and the underground slurry pipeline from Broken Hill, including all approvals and land access agreements along the 392-kilometre pipeline route.

The Hawsons Iron share price is currently 180% higher than it was at the start of 2021. It has gained 167% since this time last year.

The post Here’s why the Hawsons Iron share price spiked 12.5% on Monday appeared first on The Motley Fool Australia.

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• Here’s why the Hawsons Iron share price is rocketing 25% today
• Is the party over for the Hawsons Iron share price?

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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and dropped deep into the red. The benchmark index is currently down 0.8% to 6,424.6 points.

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

PointsBet’s strategic investment

The PointsBet Holdings Ltd (ASX: PBH) share price is surging higher today. This follows news that the sports betting company has received a major strategy investment. SIG Sports Investment Corp has invested $94.16 million into PointsBet via a placement of shares at a 13% premium to its last close price. This makes SIG Sports Investment Corp the company’s largest shareholder with a 12.8% stake.

Energy shares tumble

One area of the market that is struggling today is the energy sector. The likes of Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) are taking a tumble after oil prices sank on Friday night. Traders were selling down oil prices amid concerns that a potential global recession could weigh on demand.

Vicinity upgrades guidance

The Vicinity Centres (ASX: VCX) share price is charging higher today after the shopping centre operator upgraded its guidance. Vicinity now expects funds from operations to be at or above 12.6 cents per security in FY 2022. This compares to its previous guidance of 11.8 cents to 12.6 cents. Management stated that this “reflects the sustained strength of retail sales and improved negotiation outcomes with retailers.”

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the PointsBet share price with an 11% gain. This follows SIG’s major investment in the sports betting company. Going the other way, the worst performer has been the Silver Lake Resources Limited (ASX: SLR) share price with an 8.5% decline. This follows heavy declines in the gold sector.

The post ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade appeared first on The Motley Fool Australia.

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• Transurban share price jumps as dividends hit pre-pandemic highs
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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It wasn’t too long ago that we were reporting on a 36% price increase in Tritium DCFC Ltd (NASDAQ: DCFC) shares during March.

Two months later, investors in the electric vehicle (EV) fast-charging outfit hailing from Brisbane are less ecstatic with the company’s performance. Since 9 February this year, shares in the EV charger company have deflated 60%.

Much like other pre-profitable listed companies, the Tritium share price has been sold down amid a shift in market mood. The changing economic environment appears to have added more resistance to Tritium’s metaphorical electric current.

In light of this, let’s recap what’s been happening under the hood at Tritium recently. Following this, we’ll take a look at an opportunity that could potentially amp up the voltage for this company.

Doing deals

Looking at how the share price has performed, you probably wouldn’t think Tritium has released any good news in months. Yet, the last few months have been jam-packed with developments for the company.

In April, shareholders were informed of a multi-year contract with London-based oil and gas heavyweight BP Plc (NYSE: BP). The deal is part of BP’s plans to establish a global EV charging network. Initially, Tritium will be tasked with delivering an order of just under 1,000 chargers across the UK, Australia, and New Zealand.

Additionally, an announcement landed in May revealing an additional 250 chargers ordered by Osprey. This marks the second order from the United Kingdom EV charging network operator with the region expected to require between 280,000 to 480,000 charging points by 2030.

Speaking on behalf of Osprey, CEO Ian Johnston stated:

As an independent charge point operator, we have the freedom to work with the very best hardware companies so that we can provide the very best experience for our customers… Tritium is an instrumental partner in helping Osprey deliver on our goal of creating a high-quality, inclusive, reliable charging network that’s worry-free and accessible for all.

In spite of these announcements, Tritium shares have suffered as sentiment wanes on the more speculative end of markets. For the 12 months ending 30 June 2021, Tritium lost US$63.1 million on the bottom line.

A jolt of momentum for Tritium shares ahead?

Regulation is playing a role in fuelling the rollout of EV chargers amid a world more conscious of carbon emissions. As such, the Tritium share price can be influenced by regulatory changes that aid or block the electric trend.

Recently, the European Parliament has thrown its support behind an EU-wide ban on new fossil fuel-powered vehicles from 2035.

While the law is not yet final, it hints at a potential future where vehicle manufacturers will need to focus their attention on EVs. In such a world, Tritium shares might be positioned to benefit from heightened demand for charging stations.

The post Shares in Aussie EV charging station company Tritium have plunged 60% since February. What’s next? appeared first on The Motley Fool Australia.

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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 Transurban Group (ASX: TCL) share price is outperforming the market this morning after it announced an increase in its final dividend.

The toll road operator said it will pay a distribution of 26 cents a security for the six months ending 30 June 2022.

This is the highest final dividend that the group has paid since 2019, just before the COVID-19 mayhem.

Increase in dividends lifts Transurban’s share price

The final dividend also represents a 21% increase over the 21.5 cents a security payment it made this time last year.

The news sent the Transurban share price revving up 2.2% to $13.93 in early trade. This compares to a flat open for the S&P/ASX 200 Index (ASX: XJO).

Distribution details

The final dividend is made up of a 24 cent a security payment from the Transurban Holding Trust and its controlled entities. The balance is paid from Transurban Holdings Limited.

This takes the full-year dividend to 41 cents a security which gives a net yield of 3% using the current Transurban share price.

Of the total FY22 distribution, 2 cents of this are fully franked. The distribution may also be tax-deferred and more details will be released in August.

The distribution also includes the circa 2.5 cents per security in capital releases. This is related to Transurban’s increased stake in WestConnex where the capital releases are used to minimise the dilutive impact of the deal.

Other tailwinds for the Transurban share price

The increase in distributions may not be the only factor driving interest in the Transurban share price.

Some experts believe that ASX infrastructure shares are likely takeover targets in this volatile environment.

Such shares, including Transurban, generate a relatively stable earnings stream. Their contracts also typically provide an inflation adjustment too.

Do ASX infrastructure shares make good targets?

These are desirable qualities given the high inflation outlook with rising costs threatening to erode corporate profits.

Fears of a sharp economic slowdown in the form of stagflation or a recession only make defensive ASX shares like Transurban more desirable.

Other ASX shares with similar qualities to the Transurban include APA Group (ASX: APA) and Atlas Arteria Group (ASX: ALX) with the latter facing a potential takeover.

The Transurban share price has fallen around 5.6% over the past year, even with today’s rally. In contrast, the ASX 200 has lost more than 12% during the period.

The post Transurban share price jumps as dividends hit pre-pandemic highs 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 positions in and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Beginner investors that are considering investing in ASX shares are choosing a monumental time to do it amid the declines and interest rate rises.

There is a lot to know about investing. Picking the right investment is an important part of it, sure. But, investing can also be about patience, bravery and knowledge.

ASX shares are not like term deposits. There is more risk involved, in a number of different ways. But there is good growth potential as well.

It’s important not to be side-tracked from building wealth. Hence, keeping these things in mind for beginners could help:

Compounding takes time

ASX shares are not get rich-quick schemes, though it is possible for some investments to rise quickly.

If people treat investing in ASX shares like betting at the casino, then I don’t think that’s the right way to go about things.

Looking over history, ASX shares have returned an average of 10% per annum. But that doesn’t mean the market returns a consistent 10% each year. One year the return could be 15%, the next year it could be 5%. But the annual return takes a whole year to be achieved, it’s not just what happens in January, February or June.

There aren’t many other things in life that we have to wait for like shares. Compounding takes time and patience.

If $1,000 were invested in shares and it returned an average of 10% per annum, it would take less than eight years to double to more than $2,000. But, like the disclaimer says, past performance is not a reliable indicator of future performance.

Large declines are unpredictable…sort of

Sometimes the value of shares can go backwards in one year. Sometimes by quite a lot.

When the share market is open, prices are changing all the time. While we hope that share prices go up over time, I think it’s important to acknowledge and keep in mind that share prices do go down heavily occasionally. By keeping that in mind, it will mean the declines are less of a shock for beginners (and all investors). We just don’t know when that next crash is going to happen, or how long share valuations will stay ‘crashed’.

The average return per annum of 10% includes all the crashes of the past like the GFC.

I don’t sell my shares just because the prices of my investments have gone down. Indeed, I try to invest in ASX shares that I think have good long-term potential and I’d want to buy more of if their price dropped. I’m using the current drop as an opportunity to buy discounted businesses.

Investors don’t know when the next crash is coming. The GFC was largely unexpected beforehand and there was a lot of fear during it. Prices can drop a lot when there’s uncertainty. Right now, there’s a lot of market uncertainty surrounding inflation and potential interest rates.

Bonus tip: Australia is only a small part of the global share market

A beginner investor may also want to know that ASX shares are only a small part of the global share market.

There are plenty of businesses listed in the US, Europe, Japan and so on.

I’m not saying that beginner investors should ignore ASX shares.

But, it could be worth knowing about investments that can give easy access to global share markets such as iShares S&P 500 ETF (ASX: IVV), Vanguard Msci Index International Shares ETF (ASX: VGS) and VanEck Morningstar Wide Moat ETF (ASX: MOAT). Diversification is a very useful tactic for investing because it lowers risks.

The post Beginners: Investing in ASX shares for the first time? Here’s what you should know appeared first on The Motley Fool Australia.

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More reading

• Transurban share price jumps as dividends hit pre-pandemic highs
• Should You Pull Your Money Out of the Stock Market Right Now?
• Buy these good value ASX dividend shares: brokers
• What I love about these 2 ASX growth shares
• Infomedia share price surges 9% following third takeover approach

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

To say that this is a difficult time to be an investor would be an understatement. With major market indexes being down significantly, a lot of people are seeing losses in their portfolios. And if you’re one of them, you may be inclined to ditch your stocks before more damage ensues. But pulling your money out of the stock market right now is a move you might sorely regret.

Why you need to stay the course

At this point, your portfolio may be down 25% or 30% year to date. If that’s the case, your logic might be that liquidating your stocks now means avoiding a scenario where you’re looking at a 40% or 50% loss.

It’s easy to understand that line of thinking. But one thing you must remember is that any loss you’re seeing in your portfolio right now is a hypothetical one, not an actual one. However, if you go out and sell stocks while they’re down, you’ll convert a potential loss to an actual loss — and that’s a move that could hurt you financially for many years to come.

That’s why now’s really not the time to pull any money out of the stock market. The only exception is if you have a stock in your portfolio that was performing poorly before this recent downturn. If you don’t have a lot of faith in its ability to recover, you may be better off taking a loss on that individual stock and using it to your advantage. But broadly speaking, you should not be dumping stocks right now.

Keep the faith

This certainly isn’t the first time the stock market has tanked, and it likely won’t be the last. But do keep in mind that the stock market has a long history of recovering from downturns. If you keep your portfolio intact, you may find that in a year from now, your balance will be back to where it was before this recent decline. Or you may find that you’re up from where you were at the start of 2022.

Furthermore, if the money in your portfolio is earmarked for a goal like retirement, and you have another 15 to 25 years in the workforce ahead of you, then there’s no reason to assume this current downturn will hurt your long-term plans. It may make for some temporary uneasiness, but if you leave your portfolio alone, you’ll set yourself up to get through this downturn unscathed. If you sell investments out of panic, you might lock in losses you never quite manage to fully recover from.

While this may seem counterintuitive, now is actually a pretty good time to add to your portfolio if you happen to have the cash lying around (or the ability to use part of your paycheck for investing purposes). The fact that the broad market is down means you might scoop up quality stocks at a discount. And if you hold those for a long time, you could profit quite nicely.

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

The post Should You Pull Your Money Out of the Stock Market Right Now? appeared first on The Motley Fool Australia.

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More reading

• Buy these good value ASX dividend shares: brokers
• What I love about these 2 ASX growth shares
• Infomedia share price surges 9% following third takeover approach
• Qantas share price lifts amid new sustainability partnership
• These are the 10 most shorted ASX shares

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.

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

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There are two main ways that the ASX share market can deliver returns for investors – capital growth and dividends. What if there are some ASX dividend shares that are expected to deliver dividends and potentially grow in value?

Experts sometimes provide dividend estimates for what they think businesses are going to pay to shareholders. Some businesses are expected to pay low dividend yields, while others can be quite large. Sometimes the predicted grossed-up dividend yield can be above 10%.

Despite the recent volatility, these two ASX dividend shares have experts predicting attractive total returns.

Perpetual Limited (ASX: PPT)

This business is a fund manager. Perpetual’s total assets under management (AUM) was $97.9 billion at 31 March 2022. It also had $1.05 trillion of funds under administration (FUA) with its Perpetual Corporate Trust.

The business boasts that its funds are generating strong investment performance with 92% of Barrow Hanley strategies and 75% of Australian equity strategies outperforming their benchmarks over three years.

Perpetual is currently rated as a buy by the broker Citi, with a price target of $40.80. That implies a potential rise of more than 40% over the next year.

The ASX dividend share says that it’s going to continue to take a “disciplined focus on both organic and complementary inorganic investment opportunities… supported by a strong balance sheet, and a track record of positive execution and improvement in net flows”.

Based on Citi’s estimates, the broker values the Perpetual share price at 10x FY23’s estimated earnings. Citi suggests it has a potential grossed-up dividend yield of 11% in FY23.

Monash IVF Group Ltd (ASX: MVF)

This ASX dividend share describes itself as a leading provider of assisted reproductive and specialist women’s imaging and diagnostic services in Australia and South-East Asia. It says it’s a driving force in developing assisted reproductive technologies.

Monash IVF’s latest update showed why the company believes that “underlying IVF demand is growing and its strategic initiatives will enable it to take advantage of this demand”.

The company said that new IVF patient registrations in the financial year to April were “strong”. It had growth of 5.2% compared to the prior corresponding period. Monash IVF says this provides a “solid platform” for growth in FY23.

However, the business said that the current environment has negatively impacted stimulated cycle activity and profitability between January 2022 and April 2022. That’s as patients defer treatment due to contracting COVID-19 or being a close contact. Further, the company has a medical policy delaying treatment for patients who have contracted COVID-19 for eight weeks after recovery. This has created pent-up demand, which Monash IVF expects to service in the future.

The company expects the FY22 adjusted net profit after tax (NPAT) before certain non-regular items to be approximately $22 million subject to any further COVID-19 impacts.

The broker Macquarie currently rates it as a buy with a price target of $1.20. That implies a possible rise of more than 20%.

Based on an expected improvement of profit in FY23, Macquarie values the Monash IVF share price at 15x FY23’s estimated earnings and a potential grossed-up dividend yield of 6.8%.

The post Buy these good value ASX dividend shares: brokers appeared first on The Motley Fool Australia.

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More reading

• What I love about these 2 ASX growth shares
• Infomedia share price surges 9% following third takeover approach
• Qantas share price lifts amid new sustainability partnership
• These are the 10 most shorted ASX shares
• Own AGL shares? Here’s what to know about the company’s latest green hydrogen push  

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

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