If you’re wanting to boost your income portfolio with some new dividend shares in March, then the two listed below could be worth considering.

Here’s what analysts are saying about these dividend shares right now:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is Baby Bunting. It is a baby products retailer with a strong presence both online and through its growing collection of national superstores.

Citi is a fan of the company and recently reiterated its buy rating with a $6.22 price target. While it acknowledges that its shares trade on higher than average multiples, the broker believes its growth outlook justifies this.

It commented: “We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

Citi is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.84, this will mean yields of 3.3% and 3.9%, respectively.

GQG Partners Inc (ASX: GQG)

Another dividend share for investors to look at is this recently listed fund manager.

Analysts at Morgans were pleased with its performance in FY 2021, noting that it delivered a result in line with expectations.

In response, the broker has retained its add rating with a slightly trimmed price target of $2.27.

Morgans commented: “Against a volatile/weak market in CY22 to-date, GQG has delivered strong relative outperformance across its four strategies. This should help solidify the near-term flows outlook. 1Q22 has begun solidly, with US$2.2bn of inflows to-date. GQG has seen a valuation de-rate along with the broader sector, however we view it as unwarranted. Both relative investment performance and flows remain strong. We view GQG’s ~11x FY22 PE as attractive versus its diversity of earnings; current flows momentum; and expected growth. Add maintained.”

As for dividends, the broker is expecting dividends of 9 cents per share in FY 2022 and then 10 cents per share in FY 2023. Based on the current GQG share price of $1.44, this will mean yields of 6.25% and 6.95%, respectively.

The post Here’s why analysts rate these ASX dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in March 2022
• Analysts names 2 ASX value shares to buy with 20%+ upside potential
• Leading brokers name 3 ASX shares to buy today
• 2 high-yield ASX dividend shares for March 2022
• GQG (ASX:GQG) share price up 5% amid strong FY21 profit growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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Diversify your portfolio, we hear constantly.

Having a variety of different ASX shares spreads out risk and helps you sleep at night, experts say.

However, it might surprise you to know those same professional investors don’t necessarily practise diversification themselves.

In fact, many will use their in-depth knowledge to put all their eggs in one or two ASX shares that they’re absolutely certain of winning on. 

Call it conviction, call it guts, call it what you will. 

But the writer has spoken to many fund managers who do this for their personal portfolios, which is completely the opposite of what they advise clients on how they run their fund.

Very few are willing to reveal this publicly though, for fear of burning vulnerable retail investors.

Turning $156,000 into $12 million

One expert who is quite happy to go on the record is Marcus Today founder Marcus Padley.

Padley has claimed more than once that diversification is a false idol.

“In the remote wilderness of portfolio construction, we have a lot of gurus — but there is one religion: it’s called diversification,” he said in a podcast last year.

“It underperforms in the good times, outperforms in the bad times, but it still doesn’t perform anyway.”

The Motley Fool reported last year that one of Padley’s followers had turned $156,000 into $12 million in just 3 years by putting it all in one ASX share.

Many might think this is risky, but Padley reckons it’s the opposite.

“It’s actually less risky because you’ve got your head in the game and you’ve only got one stock to focus on after all,” he said.

“If you were to buy one stock, you’re going to watch every move. You’ll go to every company presentation, get to know the CEO, get to know the other shareholders… You’re going to watch the drivers and pick up on anything that’s relevant to that stock.”

Practising what he preaches

To put his money where his mouth is, in a recent podcast Padley revealed that he himself only owns 2 ASX shares.

One of them is Poseidon Nickel Ltd (ASX: POS), which he has held for “a long time”.

“The CEO is godfather to one of my daughters, hence the faith in the man, who I know really well.”

That chief executive, Peter J Harold, has a track record of turning exploration businesses into producers, and Padley believes Poseidon would follow.

“Poseidon is sitting on a couple of projects that used to produce. It’s just a question of the nickel price rising high enough to make those viable,” he said.

“They expect to be back in production by December this year.”

The Poseidon share price has sunk more than 23% this year.

The second and final stock in Padley’s personal portfolio is Environmental Group Ltd (ASX: EGL).

Padley became interested in this environmental services provider when a trio of former Tox Free executives joined the firm.

“There is more cleanup to be done in Australia that EGL could possibly handle,” he said.

“This is just a question of getting around the technology. It’s not a question of finding things to do.”

Capital H Management founder and chief executive Harley Grosser told The Motley Fool earlier this month that he’s also a fan of EGL.

“The management team is A grade,” he said.

“They’ve done it before at Tox Free — a lot of the institutional fund managers know of [chief executive] Jason [Dixon] and his team, and the stock looks good value to us. So we’d expect it to do well this year.”

The EGL share price is down almost 18% for the year so far.

The post I personally only own 2 ASX shares: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares loved by expert who averages 30% return per year

Motley Fool contributor Tony Yoo 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a positive start to the month. The benchmark index rose 0.7% to 7,096.5 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall heavily

The Australian share market looks set to fall heavily on Wednesday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 1% lower this morning. In late trade in the United States, the Dow Jones is down 1.8%, the S&P 500 is down 1.5%, and the Nasdaq is down 1.4%.

CBA shares still a sell

Commonwealth Bank of Australia (ASX: CBA) shares are still a sell according to the team at Goldman Sachs. This morning the broker retained its sell rating with an $82.94 price target on the banking giant’s shares. While it sees the sale of a 10% share of Bank of Hangzhou for $1.8bn as a positive, it isn’t enough to change the broker’s view that CBA’s shares are vastly overvalued at the current level.

Oil prices hit 7-year highs

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 7.5 % to US$103.00 a barrel and the Brent crude oil price has risen 6.8% to US$104.66 a barrel. Disruption to Russia’s supply has sparked fears of shortages.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 2.1% to US$1,940.7 an ounce. Demand for the safe haven asset has risen amid increased market volatility.

Telstra trades ex-dividend

The Telstra Corporation Ltd (ASX: TLS) share price is likely to trade lower on Wednesday. This is because the telco giant’s shares are trading ex-dividend this morning for its fully franked 8 cents per share interim dividend. Eligible shareholders can look forward to being paid this dividend on 1 April.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 3 ASX energy shares smashing 52-week highs today
• ASX 200 shrugs off today’s RBA interest rate decision
• The Soul Pattinson (ASX:SOL) share price has lost 17% so far this year. Is it a buy?
• These 3 ASX 200 shares are topping the volume charts this Tuesday

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If you’re a fan of growth shares, then you may want to look closely at the two shares listed below.

Here’s why these growth shares have been rated as buys:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at in March is Adore Beauty. It is Australia’s number one pureplay online beauty retailer. Last month it released its half year results and revealed record revenue and customer numbers. In respect to the former, Adore Beauty delivered an 18% increase in revenue to $113.1 million. This is still only a small portion of the $11 billion Australian beauty and personal care market, which is in the early stages of its shift online. This gives the company an extremely long growth runway.

UBS is a positive on the company and currently has a buy rating and $4.70 price target on its shares. This suggests potential upside of greater than 100% from current levels.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another growth share to look at is Domino’s. It is one of the world’s largest pizza chain operators with stores across the ANZ, Asia-Pacific, and European regions. Its shares have been sold off heavily this year amid concerns over the performance of its Asian operations and the potential impact of food inflation on margins. While this is disappointing, it may have created a buying opportunity for patient long term focused investors. Particularly with management aiming to double its store network over the next decade and also expand its addressable market with acquisitions.

Morgans appears to see the recent share price weakness as a buying opportunity. It recently upgraded Domino’s shares to an add rating with a $115.00 price target. This suggests potential upside of 44% from the current Domino’s share price of ~$79.72.

The post 2 ASX growth shares analysts say have 40%+ upside appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Domino’s (ASX:DMP) share price today?
• Top ASX shares to buy in March 2022
• Why this top broker just downgraded Domino’s (ASX:DMP) shares
• 2 ASX shares now at an awesome price for buying: expert
• Analysts are tipping massive upside potential for these ASX growth shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Dominos Pizza Enterprises 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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A number of ASX mining shares are reaching new 52-week highs. The three in this article saw 12-month highs today.

Commodity prices have broadly risen over the past two years, with some prices doing particularly well.

Resource businesses rely on the commodity price to make attractive profits. It typically costs a business the same amount to extract a resource whether a price is a bit higher or lower. If a commodity price jumps higher, that can mean it largely adds to profit (aside from paying extra money to the government).

These three ASX mining shares just hit 52-weeks highs:

Coronado Global Resources Inc (ASX: CRN)

Coronado was one of the miners to hit a new high. It ended the day at $1.70.

Over the last year the Coronado Global Resources share price has risen by 71%.

This business is one of the world’s largest producers of metallurgical coal.

It recently reported its FY21 result for the 12 months to 31 December 2021, which showed a 46.9% increase of revenue to $2.15 billion and a 184% rise of ‘net income’ (net profit) to $189.4 million.

Management noted the prospect of prolonger higher coal prices, as demand for steel continues to rise and outstrip supply in the short-term.

Capricorn Metals Ltd (ASX: CMM)

During the day’s trade, the Capricorn Metals share price reached $3.83.

Over the past year, Capricorn Metals shares have risen by 159%.

What does Capricorn do? It’s a business that operates in the gold sector with two project areas – the Karlawinda Gold Project and the Mt Gibson Gold Project.

Gold prices have risen amid the conflict between Russia and Ukraine.

The ASX mining share recently revealed its quarterly update for the three months to December 2021. That update showed quarterly gold production of 30,316 ounces, with guidance of between 110,000 ounces to 120,000 ounces for FY22. Its cashflow was $40.1 million for the quarter.

Mincor Resources (ASX: MCR)

The Mincor Resources share price spiked to $2.06 earlier today, hitting a 52-week high.

Over the last year the Mincor share price has climbed 91%.

Mincor Resources says that it’s focused on re-establishing sustainable, high-grade nickel production in the Kambalda district of Western Australia.

During the ASX mining share’s recent half-year, it noted that the first nickel was extracted from two development headings at its northern operations, recruited key operational staff and it also included the issue of the formal ‘start notice’ to BHP Group Ltd’s (ASX: BHP) Nickel West, which indicated the company’s intention to supply the first ore for processing.

The post 3 ASX mining shares breaking new 52-week highs today appeared first on The Motley Fool Australia.

More reading

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• 2 All Ordinaries mining shares smashing all-time highs today
• Here are the top 10 ASX shares today

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 Neometals Ltd (ASX: NMT) share price soared today amid the company listing on the London Stock Exchange.

The company’s shares closed at $1.47 on the ASX today, a 9.7% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) gained 0.67% today.

Let’s take a look at what is happening at the company.

New London listing

The Neometals share price rocketed on Tuesday. This came after the company informed investors it has started trading on the Alternative Investment Market (AIM) of the London Stock Exchange. AIM is London’s market for small and medium growth companies.

The sustainable and advanced materials project developer will continue to trade on the ASX. The UK listing is aimed at taking advantage of “substantial” UK and European investor interest in Neometals. The share listing did not involve a capital raise.

Neometals Ltd (LON: NMT) is trading at 72.94 pence on the London Stock Exchange. The share price surged 4.2% on its first day of trading in the UK.

Neometals chief executive officer Chris Reed said the company is delighted to commence trading on AIM. He added.

With this listing, we look forward to broadening our shareholder base by offering a differentiated investment opportunity and provide UK and European investors with a way to gain exposure to projects at the heart of recycling and decarbonising supply chains associated with the electric vehicle and energy storage sectors.

With a number of our core projects moving towards final investment decisions during 2022, we have an exciting year, full of value transformative events ahead of us and we look forward to updating shareholders on progress in due course.

In late January, Neometals provided an update on the December quarter. The company ended the quarter with $72.8 million of cash and no debt.

Neometals share price

The Neometals share price has exploded 362% in the past year, while it is up 3% this year to date.

For perspective, the benchmark ASX 200 has returned about 4.52% over the past year. In the past month, Neometals shares have gained 12%, while in the past week they have jumped nearly 13%.

Neometals has a market capitalisation of about $806 million.

The post Neometals (ASX:NMT) share price surges 10% amid dual listing appeared first on The Motley Fool Australia.

More reading

• 3 excellent ETFs for ASX investors to look at in March
• Why did the CSL (ASX:CSL) share price go backwards in February?
• Here are the top 10 ASX shares today
• Why did the BHP (ASX:BHP) share price deliver such lacklustre gains in February?
• Why has the Lynas (ASX:LYC) share price rocketed 21% in a week?

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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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

Rather than deciding on which individual shares you should put your money into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, here are three ETFs that are popular with investors right now:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The first ETF to look at is the ETFS Battery Tech & Lithium ETF. It provides investors with exposure to providers of electrochemical storage technology and mining companies that produce metals used for the manufacturing of battery-grade lithium batteries. With the outlook for battery materials and lithium prices becoming increasingly positive due to growing demand and tight supply, the companies included in the fund appear well-placed for growth in the coming years. This includes AMG Advanced Metallurgical Group, Lockheed Martin, and Pilbara Minerals Ltd (ASX: PLS).

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF aims to provide investors with an easy way to invest in the type of shares that legendary investor Warren Buffett buys. These are companies with sustainable competitive advantages or moats. The ETF currently contains almost 50 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Altria, Boeing, Coca Cola, Kellogg Co, and Walt Disney.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to the biggest players in a global video game market estimated to comprise 2.7 billion active gamers. Among the companies included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck believes these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 excellent ETFs for ASX investors to look at in March appeared first on The Motley Fool Australia.

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• Are these 2 leading ETFs great buys in March 2022?
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• 2 quality ASX tech shares for investors after the selloff

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and VanEck Vectors Morningstar Wide Moat ETF. 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 CSL Limited (ASX: CSL) share price quietly walked into the green today and finished 0.43% higher at $261.10.

That might come as some relief to CSL shareholders who have seen gains achieved in late 2021 evaporate. CSL shares are now trading 10% in the red this year to date.

While the biggest fall came in January, February wasn’t much kinder to the CSL share price which continued to edge lower, falling around 0.5% in that time.

What happened to CSL last month?

CSL reported a mixed set of results at its earnings release in February. The global biotech recognised a slight increase in group revenue to almost US$6 billion, but looking closer, CSL Behring saw a 2% decrease.

It was profitability that suffered last half for CSL, however, as net profit after tax (NPAT) declined by 5% in constant currency terms to US$1.7 billion.

Not only that, new guidance now bakes in a US$90–$110 million transaction cost related to CSL’s recent purchase of Vifor Pharma, potentially hindering the outlook from investors.

Now the market has had time to digest the company’s results the CSL share price has faltered. It finds itself trading well below its February highs of $277 that it reached, funnily enough, the day following earnings.

However, the CSL share price has been heading south since November last year, around the time when rumours surfaced it was buying Vifor for $10 billion.

Plus, when scoping out the wider sector, it’s clear that ASX healthcare shares have taken a hit these past three months.

Overlying CSL’s price chart on the S&P/ASX 200 Health Care index (ASX: XHJ) reveals the two have moved in similar fashion over this time, as seen below.

Even as both CSL and the index attempted to rally in mid-February, the market saw otherwise and continued to send the pair back down south as of today.

Plus, with the wave of macro-economic crosscurrents feeding into global equity markets right now, it’s not surprising to see this kind of chart pattern across the board in Australian shares.

However, as a prudent investor, one should always keep a long-term horizon in mind and consider consulting a financial professional during these times to help make the most informed decisions possible.

CSL share price snapshot

In the last 12 months the CSL share price has fallen by 3%. It has tried to stage a comeback since collapsing in December but has been unable to break through the resistance level.

As such CSL shares are now trading at April 2021 levels which is also where the biotech was trading at in late 2019, right before the onset of the pandemic.

The post Why did the CSL (ASX:CSL) share price go backwards in February? appeared first on The Motley Fool Australia.

More reading

• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?
• Which ASX shares might be impacted by Probuild’s collapse?
• Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
• Here’s why CSL (ASX:CSL) could be an ASX 200 share to buy now
• ASX 200 shares stage comeback amid Russia optimism

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. owns 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 Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) posted its third day in a row of gains as the Reserve Bank of Australia held rates on geopolitical uncertainty. At the end of the session, the benchmark index finished 0.67% higher at 7,096.5 points.

Modest falls in a few sectors were outweighed by exceptional returns across numerous segments of the market today. Notably, the Aussie tech sector absorbed plenty of capital as investors pushed it 5.7% higher. Only one tech company was unable to share in the optimism on Tuesday.

In contrast, the utilities sector was the worst-performing sector on the market. Part of the weakness could be attributable to Origin Energy Ltd (ASX: ORG) trading ex-dividend today.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Yancoal Australia Ltd (ASX: YAL) was the biggest gainer today. Shares in the coal-producing company rocketed 14.94% higher after the company posted record revenue and a reinstated dividend. Find out more about Yancoal Australia here.

The next biggest gaining ASX share today was Paladin Energy Ltd (ASX: PDN). The uranium mine owner put a 12.99% gain on the scoreboard during the session as the Ukraine-Russia conflict create energy supply concerns. Uncover the latest Paladin Energy details here.

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

ASX-listed company	Share price	Price change
Yancoal Australia Ltd (ASX: YAL)	$4.00	14.94%
Paladin Energy Ltd (ASX: PDN)	$0.87	12.99%
Imugene Ltd (ASX: IMU)	$0.265	12.77%
Novonix Ltd (ASX: NVX)	$5.43	7.95%
IDP Education Ltd (ASX: IDP)	$28.31	7.81%
AVZ Minerals Ltd (ASX: AVZ)	$0.85	7.60%
Xero Ltd (ASX: XRO)	$100.32	7.03%
Allkem Ltd (ASX: AKE)	$9.70	6.95%
IGO Ltd (ASX: IGO)	$11.66	6.68%
Seek Ltd (ASX: SEK)	$28.31	6.15%

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

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

More reading

• ASX 200 shrugs off today’s RBA interest rate decision
• The Soul Pattinson (ASX:SOL) share price has lost 17% so far this year. Is it a buy?
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why IDP, IGO, Sayona Mining, and Yancoal shares are storming higher
• Fretting over ASX share market losses? Expert explains how to ’embrace uncertainty’

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. owns and has recommended Idp Education Pty Ltd and Xero. The Motley Fool Australia owns and has recommended 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 Bruce Jackson.

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The BHP Group Ltd (ASX:BHP) share price ended the month of February 2022 at almost exactly the same level where it started the month.

BHP is one of the largest resource businesses in the world. Its market capitalisation can change quite a lot over a month, depending on what’s going on with the commodity prices and perhaps any wider economic or geopolitical goings-on.

What happened during February 2022?

There are a few different things that featured heavily last month.

The Russian invasion of Ukraine has captured a lot of the global attention, sending the oil price above US$100 per barrel. Whilst BHP’s oil division may be seeing a higher commodity price, it is going to be divested to Woodside Petroleum Limited (ASX: WPL) in the next few months.

However, on a more company-specific level, BHP reported its result for the six months to 31 December 2021.

It has also gone ex-dividend, meaning that new investors are no longer entitled to the US$1.50 per share interim dividend, reducing the short-term potential value of the shares to new investors.

Half-year result

For readers that didn’t catch the result, BHP reported a significant increase in profits thanks higher prices for all of its major commodities such as iron ore and copper.

The ASX resources share reported that attributable profit rose 144% to US$9.4 billion, whilst net operating cash flow rose 42% to US$13.3 billion.

Excluding the earnings from the petroleum assets, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 33% to US$18.5 billion, profit from operations rose 50% to US$14.8 billion, underlying attributable profit increased 57% to US$9.7 billion and net operating cash flow went up 26% to US$11.5 billion.

This large increase in profit and cash flow led to a 49% rise in the dividend to US$1.50 per share.

What does the future hold for the BHP share price?

It’s impossible to know what a share price is going to do. But BHP management are confident about the outlook. The company points to population growth, the infrastructure of decarbonisation and rising living standards as reasons that can to drive demand for energy, metals and fertilisers for decades to come.

Management said that it’s building on its strong foundations and capital discipline to reshape the business and grow long-term value for shareholders and other stakeholders.

It has unified the BHP corporate structure, which aims to make it easier to operate the company and carry out strategic moves.

The divestment of the petroleum business will mean the commodity portfolio is a bit ‘greener’, with plans to expand into potash with its Jensen stage one potash project in Canada. It is also progressing its divestments of certain coal assets.

What do analysts think about the BHP share price?

Plenty of analysts are a ‘neutral’ or ‘hold’ on the business

Macquarie still rates it as a buy, with a price target of $54 because of the fact that commodity prices remain strong which helps BHP.

The broker’s estimates put the BHP share price at around 10x FY22’s estimated earnings. BHP’s projected grossed-up dividend yield is almost 13% for this financial year.

The post Why did the BHP (ASX:BHP) share price deliver such lacklustre gains in February? appeared first on The Motley Fool Australia.

More reading

• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?
• How might the conflict in Ukraine impact the iron ore price?
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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. 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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