There are plenty of ASX shares focused purely on the domestic economy.

Names like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS) earn most of their profit from Australia.

But some businesses make a significant amount overseas and plan to bring in even more earnings from international sources.

Here are two ASX shares with global growth intentions.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of affordable jewellery, mainly targeted at a younger audience.

It is liked by multiple brokers, including Macquarie, which rates it as a buy with a price target of $24.90. That implies a potential rise in the Lovisa share price of almost 40% over the next year.

The broker noted the growth of store numbers, sales and margins, with ongoing growth in the second half of the 2022 financial year.

In the first half, the ASX share opened 42 new stores, amounting to 586 at the end of the period. Total revenue rose 48.3% to $217.8 million, while the gross profit increased 50.5% to $170.7 million. Net profit after tax (NPAT) increased 70.3% to $36.7 million.

The ASX growth share has more than 20 stores in Australia, New Zealand, Malaysia, South Africa, the United Kingdom, France, Germany, the United States, and the Middle East. It entered two new markets during the period – Cyprus and Lebanon.

The US is already its second-largest store network. It opened 18 new stores in the US during the period, now trading across 19 states.

In the first eight weeks of the second half of FY22, total sales were up 61.7% year on year.

Despite that, the Lovisa share price is down 10% since the start of the year.

On Macquarie’s numbers, the Lovisa share price is valued at around 30x FY23’s estimated earnings.

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading retailer of plus-size clothing, footwear and accessories for women.

In Australia, it has a national network of City Chic stores. But, it also has several other brands in different markets. For example, in the US, it operates the Avenue website. In the UK, it operates the Evans website. Also in the northern hemisphere, it has a number of partnerships where its products are sold through other retailers.

The City Chic share price has been smashed in 2022, down around 40% since the start of the year.

Many brokers rate this ASX growth share as a buy, including Ord Minnett. The price target from this broker is $5.20, a potential rise of around 60% over the next year if the broker ends up being right.

The broker noted the high level of sales growth in the first six months of FY22, despite the impacts caused by COVID-19, including lost store trading doors and other factors.

In HY22, sales revenue rose by 49.8% to $178.3 million. Despite all of the negative impacts in this result, and the $10 million of COVID-related “austerity measures” in the prior period, it increased underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by 1% to $23.5 million.

At the start of the second half of FY22, the ASX share continued to deliver revenue growth. It reported momentum building in the US, UK and Europe. City Chic said that it’s also developing new programs, launching new ranges with existing partners, and onboarding new partnerships.

According to Ord Minnett, the City Chic share price is valued at 19x FY23’s estimated earnings.

The post 2 ASX shares with impressive global growth plans: experts 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 Lovisa Holdings Ltd and Macquarie Group Limited. 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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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

Dogecoin (CRYPTO: DOGE) is making big gains in today’s trading. The popular, meme-themed cryptocurrency was up roughly 7.2% over the previous 24-hour period as of 12:15 p.m. ET Sunday.

Tesla CEO Elon Musk purchased a 9.2% stake in Twitter recently, making him the social media company’s largest shareholder and resulting in him joining the company’s board soon after. Yesterday, Musk made comments stating that he believed that users should be able to pay for the Twitter Blue premium subscription service with Dogecoin, and his comments have prompted big gains in the token’s price. 

So what

Dogecoin has been making gains lately despite bearish pressures impacting the broader crypto space. It’s one of the very few top-100 tokens to be in the green over the last week, and investors in the popular meme token can once again thank Tesla’s Elon Musk for the pricing gains. 

Musk has been one of the most high-profile champions of the cryptocurrency, and the influential tech figure has said that it’s one of only three cryptocurrencies he owns — along with Bitcoin and Ethereum. 

Now what

Outside of pure speculation and market momentum, increased user adoption and payment use cases are one of the main factors that could work to drive the price of Dogecoin higher. However, there are still some reasons to be skeptical of whether Dogecoin and other cryptocurrencies actually make much sense to use as currencies. Volatility in the crypto space has opened the door for explosive gains and made some investors very rich, but the tendency for big token pricing swings comes with problems.

For example, if a user thought that the price of Dogecoin was going to go up even moderately from its price at a given time, they probably wouldn’t have much reason to use it to purchase Twitter Blue. Alternatively, companies that accept Dogecoin and other volatile cryptocurrencies as payment are effectively gambling that the price will increase, rather than decrease substantially. 

The fact that Dogecoin has a questionable utility as a currency doesn’t necessarily mean that its token price won’t climb significantly above current levels, but there’s still uncertainty about whether businesses accepting it as payments will prove to be a bullish catalyst. Investors should understand that the token remains a high-risk, high-reward play. 

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

The post Why Dogecoin is soaring today appeared first on The Motley Fool Australia.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Ethereum, Tesla, and Twitter. 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 Bruce Jackson. 

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

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The Bapcor Ltd (ASX: BAP) share price could be a winning idea in the S&P/ASX 200 Index (ASX: XJO).

For readers who don’t know what Bapcor is, let’s look at some of its businesses.

Bapcor’s operations

This business describes itself as Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service, and solutions.

It has businesses providing auto parts and services in several areas in the vehicle sector. ‘Trade’ businesses include Burson Auto Parts, Precision Automotive Equipment, and BNT (NZ).

Next, it has a specialist wholesale segment covering a wide array of businesses including AAD, Bearing Wholesalers, Baxters, Diesel Distributors, and Federal Batteries. The ASX 200 share also has commercial truck parts – Truckline for heavy vehicles and WANO for light vehicles.

Additionally, it has a retail segment. This includes Autobarn and Autopro. Service businesses include Midas, ABS, Shock Shop, and Battery Town.

Here are three reasons why the Bapcor share price could be attractive:

Network growth

Bapcor has a footprint of around 1,100 locations across Australia and New Zealand in trade, specialist wholesale, and retail.

The ASX 200 share has a five-year target to grow its footprint to over 1,500. That implies an increase in the scale of the business of well over 30%.

When combined with potential long-term same-store sales growth, that could allow revenue to keep growing over the coming years. This could be supportive of the Bapcor share price.

It’s not just Australia and New Zealand that the business has its eyes on.

Bapcor is also growing in Asia. It has eight operating Burson locations in the Bangkok district. It opened its first store outside of Bangkok at Sirachi in October. The company says this new store is “performing well”.

Bapcor Thailand’s FY22 second-quarter sales were 85% higher than the first quarter.

The ASX 200 share also has a 25% stake in Tye Soon, with 60 locations in Asia, predominately in South Korea and Malaysia. It also has wholesale distribution businesses in Hong Kong, Singapore, and Indonesia.

Higher profit margins

Bapcor is looking to become more efficient and profitable. Increased scale alone can help with operating leverage.

But its new consolidated distribution centre in Tullamarine could lift the company’s productivity significantly. It’s targeting operating expenditure savings of around $10 million and an inventory improvement of $8 million. Most of these savings come from consolidating its three largest warehouses into the new distribution centre.

The company is also looking to supplement market-leading brands with Bapcor’s own-brand products.

Over the next five years, Bapcor wants to grow its market penetration of own-brand products from 29.8% now to 40% in five years and, in New Zealand, from 30.3% to 45%. It’s also aiming for greater own-brand penetration in the specialist wholesale division from 54.6% to 65% and in retail from 33.9% to 45%. Own-brand sales can come with higher margins.

Valuation and dividends

Investors may also consider the Bapcor share price and its dividend as a reason to like the business.

According to Commsec, Bapcor shares are valued at 16x FY22’s estimated earnings with a projected FY22 grossed-up dividend yield of 4.8%.

The post 3 reasons the Bapcor share price could be an ASX 200 winner 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 Bapcor. 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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S&P/ASX 200 Index (ASX: XJO) shares could be a good hunting ground for businesses that look good value.

Experts have named two ASX shares as buys with plenty of capital growth potential.

Both of these ASX 200 shares could be opportunities in 2022 and beyond:

Pinnacle Investment Management Group Ltd (ASX: PNI)

Running a funds management business requires many different tasks to be completed. Australia’s leading stock pickers may prefer just to focus on the investing side of things of funds management.

Pinnacle partners with fund managers and provides many of the ‘back end’ services such as distribution and client services, fund administration, compliance, finance, legal, technology and other business infrastructure.

There are several asset managers in the portfolio, including Plato, Hyperion, Solaris, Antipodes, Spheria, Firetail, Metrics, Coolabah Capital and Five V.

The Pinnacle share price has fallen by 38% since the start of 2022.

It’s currently rated as a buy by multiple brokers, including Morgans. This broker has a price target of $13.25 on the business. That implies a possible rise of the Pinnacle share price of more than 30% over the next 12 months.

While Morgans recognises the short-term problems volatility can cause, it thinks it’s a good long-term idea.

Morgans thinks that the ASX 200 share is valued at 24x FY22’s estimated earnings.

TPG Telecom Ltd (ASX: TPG)

TPG is a telecommunications business operating through several brands, including Vodafone, iiNet, TPG, Internode, Lebara and AAPT.

It’s currently rated as a buy by a few brokers, including Macquarie. That broker has a price target on the business of $8.20, implying a potential upside of just over 30% over the next year.

Macquarie thinks that the ASX 200 telco share can grow its market share in ‘enterprise’ and benefit from higher margins from a rise in fixed wireless connections.

TPG also recently announced a deal with Telstra Corporation Ltd (ASX: TLS) that will give TPG more access to regional customers while giving Telstra access to some of its spectrum.

This move could avoid future capital expenditure and operating costs associated with TPG Telecom regional sites being decommissioned, prevent future costs that would have been needed to grow into regional Australia, and mean TPG receives spectrum payments from Telstra.

TPG said that it ended FY21 with growing subscriber momentum. Its mobile division saw net mobile subscriber additions of 33,000 in the three months to the end of January 2022 as restrictions subsided. It also said that its post-paid mobile average revenue per user (ARPU) is starting to lift with roaming returning.

Management said that a “robust financial position” enabled the business to grow its final dividend by 13.3% to 8.5 cents per share. This compared to the 8 cents per share FY21 interim dividend and the 7.5 cents per share FY20 final dividend from the ASX 200 share.

On Macquarie’s numbers for FY23, the TPG share price is valued at 27x FY23’s estimated earnings with a projected grossed-up dividend yield of 5.25%.

The post Experts say it’s time to buy these 2 ASX 200 shares 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. owns and has recommended PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO and Telstra Corporation Limited. The Motley Fool Australia has recommended Macquarie Group Limited and TPG Telecom Limited. 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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Brokers evaluate many different ASX shares to consider whether they are an opportunity. Some ASX dividend shares are being rated as buys right now.

The below businesses currently have buy ratings and also are expected to pay noteworthy dividends:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine is one of the largest media businesses in Australia. It owns the Nine TV network, newspapers including the Sydney Morning Herald, The Age, and the Australian Financial Review, as well as streaming service Stan, and various other media. Nine also owns a significant portion of Domain Holdings Australia Ltd (ASX: DHG).

The ASX dividend share is currently rated as a buy by at least four brokers, including UBS. The broker thinks that when considering the Domain shareholding, which accounts for just over a quarter of Nine’s value, the rest of the Nine business looks good value. The price target is $3.90.

Ord Minnett is another broker that likes Nine, with a buy rating and a price target of $3.65. This broker has estimated a grossed-up dividend yield of 5.9% in FY22.

In the FY22 half-year result, Nine reported revenue growth of 15% to $1.33 billion and net profit after tax (NPAT) growth of 20% to $225 million. It grew its interim dividend by 40% to 7 cents per share. That dividend alone represented a grossed-up dividend yield of 3.4% at the current Nine Entertainment share price.

On UBS’s numbers, the Nine Entertainment share price is valued at 15x FY22’s estimated earnings.

Metcash Limited (ASX: MTS)

Metcash is a diversified hardware business and wholesale supplier. It supplies IGA supermarkets across the country. Metcash also supplies various liquor retailers including Cellarbrations, The Bottle-O, IGA Liquor, Duncans, and Thirsty Camel. Finally, there are three businesses in its hardware division – Mitre 10, Home Timber & Hardware, and Total Tools.

The ASX dividend share is currently rated as a buy by the broker UBS. It acknowledges that the business has invested in its operations. Further, a highlight for the broker is the hardware division which is growing profit quickly.

UBS thinks that Metcash is going to pay a grossed-up dividend yield of 5.7% in FY22 and 6% in FY23.

Metcash has a target dividend payout ratio of around 70% of underlying net profit after tax. It grew its FY22 interim dividend by 31% to 10.5 cents per share. The ASX dividend share says that it has a strong focus on shareholder returns.

In Metcash’s HY22 report, it saw 13.1% growth of underlying NPAT to $146.6 million, with 13.9% earnings before interest and tax (EBIT), growth to $231.2 million. Hardware EBIT surged 53.3% to $98.9 million.

The company continues to invest in its supply chain and digital operations to help grow the business.

According to UBS, the current Metcash share price is valued at 16x FY22’s estimated earnings.

The post 2 quality ASX dividend shares that brokers love 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 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 Bruce Jackson.

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The Pilbara Minerals Ltd (ASX: PLS) share price has started the week in a positive fashion.

In early trade, the lithium giant’s shares are up 2.5% to $3.28.

Why is the Pilbara Minerals share price pushing higher?

Investors have been bidding the Pilbara Minerals share price higher today following an update on the company’s downstream lithium chemicals conversion facility joint venture (JV) with Korea’s Posco.

According to the release, the key conditions precedent and other completion criteria for the formation of the JV between Posco and Pilbara Minerals are now satisfied. These included the provision of an acceptable construction and ramp up budget for the conversion facility and the filing of necessary regulatory approvals.

In respect to the budget, the capital development costs for the conversion facility are estimated at USD$670 million to US$720 million (excluding any contingency allowance). Though, after allowing for initial working capital and pre-production financing costs, the total funding requirement for the JV is now expected to be approximately US$750 million to US$800 million. This is US$50 million greater than previous estimates.

Pilbara Minerals will fund its initial 18% stake in the JV through its A$79.6 million five-year convertible bond being provided by Posco. Funds will be drawn down under the convertible bond upon formation of the JV and completion of other closing conditions, which are expected to be satisfied later this month.

What next?

Major construction works for the South Korea-based conversion facility are expected to commence from the June 2022 quarter, with detailed engineering and early works already underway. Construction of the first train of the conversion facility is expected to be completed by mid-2023, with the second train to be completed approximately three months later.

Once complete, the conversion facility is expected to play integral role in Posco’s supply chain and business strategy as it becomes a major battery materials supplier to global markets.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said: “Pilbara Mineral’s longstanding relationship with POSCO continues to go from strength-to-strength, and we are pleased to partner with them to grow lithium chemicals production to support the massive demand growth that is building around the globe.”

“With commissioning expected late 2023, this joint venture places both Pilbara Minerals and POSCO in a very strong position to participate as one of the few near-term lithium fine chemicals producers with underwritten raw materials supply that will emerge in the coming two years. It’s exciting for both the team at Pilbara and our shareholders to be able to extend our reach in the industry beyond spodumene and merchant markets.”

The post Pilbara Minerals share price higher on lithium conversion facility update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price is a consideration for both dividends and growth.

Telstra is Australia’s largest telecommunications business. Though, it has been suffering during the transition of households onto the National Broadband Network (NBN).

But now, the company is feeling more confident about the future.

What are Telstra’s dividend credentials?

Since 2019, the telco giant has paid an annual dividend of 16 cents per share to shareholders.

Telstra recently released its T25 strategy for the next few years. Its updated capital management framework includes principles to maximise fully-franked dividends and seek to grow them over time, invest for growth, and return excess cash to shareholders.

This dividend principle reflects shareholder feedback about the importance of its dividend.

As it delivers its T25 commitments, Telstra said it’s confident about maintaining a minimum annual dividend of 16 cents per share, fully franked. That’s subject to no unexpected ‘material events’ and the requirements of its capital management framework.

Telstra expects its cash flow to remain ahead of its accounting earnings. The company’s focus is on growing its underlying earnings into its total dividend.

At the current Telstra share price, it has an expected grossed-up dividend yield of 5.7%.

Growth plans

After a period of disruption and adjustment, Telstra has also outlined that it expects to grow profit in the coming years.

Telstra said that to FY25, it’s expecting to achieve a compound annual growth rate (CAGR) of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA). It expects high teens for underlying earnings per share (EPS).

The telco wants to cut costs. Outgoing Telstra CEO Andrew Penn said:

Our financial ambition is to maintain leading operating cost metrics for a full service telco through capex (capital expenditure) discipline and efficiency and cost reduction from completing the decommissioning or exiting of legacy IT systems.

We will deliver a further $500 million of cost reductions on top of the $2.7 billion already committed for T22, while at the same time investing for growth. The profitable growth of our health and energy businesses at scale will also contribute to our future success.

The company is also working on expanding its market leadership to help the business grow. The 5G network coverage will be extended to 95% of the population. Also in the T25 strategy, Telstra says it will expand regional coverage with 100,000 square kilometres of new 4G and 5G coverage.

Telstra has also signed a regional sharing agreement with TPG Telecom Ltd (ASX: TPG). Penn said the innovative deal would “realise more value from Telstra’s network infrastructure for shareholders while making a very significant contribution to Telstra’s wholesale mobile revenue.”

Are Telstra shares a buy?

The Telstra share price is rated as a buy by the broker Ord Minnett, with a price target of $4.50. Realising the value of its assets could be a boost.

The broker thinks Telstra shares are valued at 22x FY23’s estimated earnings.

The post Is the Telstra share price a buy for dividends and growth? 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 owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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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After a rough stint in 2021, the Insurance Australia Group Ltd (ASX: IAG) share price outperformed the broader market last quarter – just.

Its gains came amid major flooding events, updates on the second business interruptions test case, and a lawsuit reportedly worth $300 million made against the company.

As of the final close of the March quarter, the IAG share price was $4.38, 2.82% higher than it was at the end of 2021.

For comparison, the S&P/ASX 200 Index(ASX: XJO) gained just 0.74% last quarter.

So, what drove the insurance giant’s stock to outperform the market over the 3 months ended 31 March? Let’s take a look.

What happened to the IAG share price last quarter?

There was plenty of news from IAG to help boost its share price last quarter.

First, the company updated the market on its catastrophe reinsurance program.

IAG finalised the program for 2022 in early January. Its share price slipped 0.6% on the news.

That dip was recovered in February when the company released its earnings for the 6 months ended 31 December.

Within its results, the company announced its insurance profits had tumbled 57.8% while its revenue slipped 4.4%, leading IAG to drop its dividend from 14.3% to 6 cents.

However, it also provided the market with a guidance upgrade. That potentially helped boost the IAG share price 4.18% higher on its results release.

The stock also moved on news of the second business interruption test case, which previously saw insured businesses arguing that policies should cover some pandemic-related disruptions.

IAG updated the market on the appeal judgement from the Full Court of the Federal Court of Australia in February. The court once again sided with insurers on most policy wording questions.

Though, IAG later said its appealing part of the ruling that found JobKeeper payments shouldn’t be considered in an assessment of loss.

The IAG share price also could have been impacted by flooding in parts of Queensland and NSW last quarter.

Initially, the insurer flagged that the extreme weather event could cost it $95 million. However, it later estimated the cost would be around $74 million.

Finally, reports of lawsuits made against the company – worth nearly $300 million – broke last quarter.

The legal action has reportedly been brought against the company following the collapse of Greensill Capital.

IAG previously held a stake in specialist insurer, Bond and Credit Co, which insured credit policies sold to Greensill entities.

IAG argues it holds no exposure to the policies.

The post How did the IAG share price stack up in the March quarter? 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 owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At today’s Westpac Banking Corp (ASX: WBC) share price, the bank ranks as one of Australia’s biggest companies. But how much are Westpac shares worth in April?

Westpac’s current share price is $24.10, giving it a market capitalisation of $84.4 billion. To arrive at that number, the share price is multiplied by all of the Westpac shares that have been issued to investors.

But, what do investors think the underlying value of Westpac is?

Expert ratings on the Westpac share price

One of the latest brokers to issue an opinion on the big four ASX bank is Macquarie. It’s ‘neutral’ on the bank, with a price target of $22.50. That implies a decline of more than 6% over the next year. The broker is concerned about challenges for the net interest margins (NIM) with strong competition across the industry.

Another of the more recent ratings was also not a bullish opinion. Morgan Stanley is ‘equal-weight’ on Westpac as well. Morgan Stanley has a share price target of $22.40, suggesting a possible decline of around 7%. The broker acknowledges that rising interest rates could be a positive for the NIM, but competition remains fierce and bad debts could increase.

However, Westpac is Citi’s top major banking pick, with the broker preferring it to Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and National Australia Bank Ltd (ASX: NAB). Citi’s price target on Westpac is $27, implying a possible rise of more than 12% for the Westpac share price.

What do we know of Westpac’s recent operating performance?

The latest we’ve heard from the bank was its FY22 first quarter for the three months to 31 December 2021. It reported a statutory net profit after tax (NPAT) of $1.82 billion, which was up 80% on the quarterly average of the second half of FY21.

Cash earnings of $1.58 billion were up 74%. Excluding notable items, cash earnings rose 1%.

Lending was up $5 billion, or 0.7%, across institutional, mortgages, and New Zealand.

The NIM was 1.91%, down eight basis points, due to competition and higher liquid assets, according to the bank.

Expenses came to $2.7 billion, which was 26% lower. However, excluding notable items, expenses were down 7%.

Westpac booked an impairment charge of $118 million, mostly from increased provision ‘overlays’ reflecting continuing COVID-19-related uncertainty.

The bank did say that asset quality metrics “continue to improve”.

At the end of the FY22 first quarter, Westpac said that it had a “strong” common equity tier 1 (CET1) capital ratio of 12.2%. With the release of the first quarter, the Westpac chief financial officer Michael Rowland said:

We have made a sound start to the year and we are seeing the cost benefits of our simplifications programs. The environment remains highly competitive and we continue to see pressure on margins.

Given this, we are bringing forward our simplification plans and changing our operating structure to improve efficiency and move more of our people closer to the customers they support.

Westpac share price valuation

Using Macquarie’s estimates, the Westpac share price is valued at 15x FY22’s estimated earnings and 14x FY23’s estimated earnings.

Macquarie’s guess for the FY22 grossed-up dividend yield is 7.25%.

The post How much are Westpac shares worth in April? 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 Macquarie Group Limited and 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 Seven Group Holdings Ltd (ASX: SVW) share price has edged lower since announcing its half-year results in late February.

The investment company delivered strong earnings growth whilst maintaining its interim dividend for shareholders.

At Friday’s market close, Seven Group shares finished 1.24% lower to $21.43. This means they have lost around 4% since 22 February following the release of its financial scorecard to the ASX.

What are the details of the Seven Group dividend?

In the half year report for the 2022 financial year, Seven Group reported strong performance across key metrics.

In summary, group revenue increased by 105.3% to $4,839.3 million in H1 FY22. This was driven by its operating businesses Coates and WesTrac, along with improved returns from Beach and Seven West Media.

On the bottom line, Seven Group achieved a 235.6% gain in statutory net profit after tax (NPAT) of $1,221.5 million.

Surprisingly, the board opted not to change its fully franked interim dividend of 23 cents per share. This may have been the cause as to why Seven Group shares backtracked on the day of the release.

While management hasn’t disclosed a dividend policy, decisions regarding future dividend payout ratios are based on a number of factors. This includes the group’s medium term underlying profitability, Australian tax payable position, shares on issue, and investment opportunities.

When can Seven Group shareholders expect payment?

Seven Group will pay the interim dividend to eligible shareholders next month on 6 May.

To be eligible for the latest dividend, you’ll need to own Seven Group shares before the ex-dividend date on 12 April. This means if you want to secure the dividend, you’ll need to purchase Seven Group shares no later than today.

In case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.

The post If you’re keen to bag the Seven Group dividend, read this appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Bruce Jackson.

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