The Airtasker Ltd (ASX: ART) share price is moving to the downside on Thursday. This follows the release of the company’s results for the first half of FY22.

In early trade, shares in the services marketplace provider are down 4% to 72.5 cents per share.

Airtasker share price falls on record revenue

• Record gross marketplace volume (GMV) of $83.6 million, up 15.5% on prior corresponding period
• Record revenue of $13.9 million, increasing 10.4% year on year
• Gross profit of $12.9 million, up 9.5% year on year
• Take rate of 16.7%, flat on prior corresponding period
• Average task value up 24% to $255
• Upgraded guidance range for second half
• Losses widen to $5.4 million from $2.06 million

What else happened during the half?

Airtasker battled through yet another six months of COVID-19 impacted operations in the first half of FY22. While the company maintained growth, imposed restrictions weighed on performance during the first quarter.

Fortunately, operations rebounded strongly during the second quarter as lockdowns across Sydney and Melbourne eased. The removal of lockdowns led to a 39% increase in GMV during the second quarter compared to the first.

Measures to support the Airtasker community during the half, such as tier freezing, resulted in a reduced take rate compared to the previous half. Clearly, shareholders are unimpressed with the compressed margins as the Airtasker share price moves lower this morning.

These actions — in combination with increased investment in product development and marketing — pushed the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) into the negative by $3.2 million.

However, Airtasker pleasingly saw positive signs for its growth prospects across operations in the UK and the US. For example, UK GMV increased 121% to more than $4 million in the second quarter. Meanwhile, job postings in the US grew by 71% quarter on quarter.

What did management say?

Airtasker’s co-founder and CEO, Tim Fung, commented:

We’re super pleased to announce that the Airtasker marketplace has continued to demonstrate strong growth in H1. Whilst the first quarter was impacted by lockdowns, it was incredible to see our marketplace rebound rapidly in the second quarter to deliver a strong result for the half. By taking measures to support our Tasker community during lockdowns, we were able to bounce back together – and that feels awesome!

What’s next?

Looking forward, the second half will be dominated by a significant push in marketing for Airtasker. Working-media market investments are said to be ramped up in the US and the UK. The company indicated the split of marketing spend in FY22 will be 20%/80% between the first and second half.

Additionally, Airtasker has upgraded its guidance for GMV in the second half as it sees strong growth ahead amid its marketing spend. The new range is between $107 million and $110 million, compared to the previous $105 million to $110 million range.

Airtasker share price snapshot

The Airtasker share price has underperformed the S&P/ASX 200 Index (ASX: XJO) in the last 11 months. Since listing on the ASX in March 2021, Airtasker shares have tumbled 28%. Over the same timeframe, the Aussie index has climbed 6.8% higher.

In addition, investors have been hesitant on unprofitable companies as interest rates look set to rise. With Airtasker still making a loss on the bottom line, the company has fallen victim to the recent waning in investor appetite for unprofitable growth shares.

The post Airtasker (ASX:ART) share price falls 4% amid half-year plagued by COVID appeared first on The Motley Fool Australia.

More reading

• Own Airtasker (ASX:ART) shares? Here’s what to watch when the company reports tomorrow
• 2 ASX shares every growth investor needs to know about
• 2 exciting small cap ASX shares with enormous potential
• 3 highly rated small cap shares with heaps of potential
• Why Airtasker, ARB, Bubs, and Sezzle shares are pushing higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. 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.

from The Motley Fool Australia https://ift.tt/j5ETh2P

The Accent Group Ltd (ASX: AX1) share price rocketed on Wednesday.

While the company posted a disappointing first-half result, investors appeared to be confident that its performance will improve.

The footwear retailer’s shares surged to an intraday high of $2.115 before settling back to $2.07, up 7.81% at market close.

Interestingly, Accent shares hit a 52-week low of $1.855 when trading opened up yesterday. If you were brave enough to pick up its shares during this time, you’d be sitting on an 11.6% gain.

Below we take a look at the company’s latest financial performance and its interim dividend for investors.

H1 FY22 performance drags the Accent dividend lower

In the half-year report for the 2022 financial year, Accent reported double-digit losses across key metrics, except total sales figures.

In summary, sales increased by 9.7% to $594 million over the previous corresponding period. This was predominately underpinned by wholesale sales, up 47.7% to $81.9 million.

The group expects core brands and new distribution agreements including Reebok and Hoka One One to further drive wholesale sales.

Despite the above result, net profit after tax (NPAT) plunged 72% to $14.8 million, impacted by the continuing COVID-related disruptions.

Based on Accent’s performance, the board declared a fully franked interim dividend of 2.5 cents per share. This represents a 69% decline from the 8 cents declared in the prior comparable period.

When can Accent shareholders expect payment?

Accent will pay the interim dividend to eligible shareholders next month on 17 March.

However, to be eligible you’ll need to own Accent shares before the ex-dividend date which falls on Wednesday 9 March. This means if you want to secure the dividend, you will need to purchase Accent shares by Tuesday 8 March at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

The post Accent (ASX:AX1) dividend alert: Here’s all the details you need to know appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares to buy now
• Why Accent, Healius, PEXA, and WiseTech shares are rising today
• Accent (ASX:AX1) share price lifts 6% despite ‘severely impacted’ first half results
• Analysts name 2 ASX dividend shares to buy with attractive yields
• 2 underrated ASX dividend shares expected to unleash big payouts in FY23

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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://www.fool.com.au/2022/02/24/accent-asxax1-dividend-alert-heres-all-the-details-you-need-to-know/

If you’re looking for dividends shares with good yields, then you may want to look at the ones listed below.

Here’s why analysts rate these dividend shares as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer. It is the company behind a growing collection of popular brands including HYPEDC, Stylerunner, and The Athlete’s Foot.

Accent’s shares have been hammered this year due to being impacted significantly by COVID lockdowns. For example, its recent half year results revealed a 72% decline in net profit after tax to $14.8 million.

The good news is that these impacts are only expected to be temporary, which could make the recent share price weakness a buying opportunity for patient income investors.

The team at Bell Potter remains positive on Accent and retained its buy rating and $2.75 price target this week. As for dividends, it is expecting fully franked dividends per share of 5.8 cents in FY 2022 and then 10.9 cents in FY 2023.

Based on the current Accent share price of $2.07, this will mean yields of 2.8% and 5.3%, respectively.

Charter Hall Long WALE REIT (ASX: CLW)

Another dividend share to look at is the Charter Hall Long Wale REIT. It manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors.

Charter Hall Long Wale REIT also recently added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. This adds ~78 hotel properties across the five mainland states that are all leased to ALH Group, which is part of Endeavour Group Ltd (ASX: EDV).

Citi is a fan of Charter Hall Long Wale REIT. It currently has a buy rating and $5.71 price target on its shares.

The broker is also forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $5.05, this will mean yields of ~6.1%.

The post Analysts name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• Why Accent, Healius, PEXA, and WiseTech shares are rising today
• Accent (ASX:AX1) share price lifts 6% despite ‘severely impacted’ first half results
• 3 reasons why the Charter Hall Long WALE REIT (ASX:CLW) share price is a top buy for dividends
• 2 ASX dividend shares that could provide steady passive income
• Analysts name 2 ASX dividend shares to buy with attractive yields

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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/ADBwhHu

The sun is now setting on high-growth technology and biotechnology ASX shares.

That’s according to several experts, who acknowledge that stocks in those sectors have performed well in recent years.

“In a world of zero interest rates, you can pay almost any price for future growth because of the risk-free rate, as represented by government bond yields,” said Investors Mutual Limited director Anton Tagliaferro.

“It should therefore not be surprising that growth stocks have performed so strongly in the last few years.”

Abrdn portfolio manager Gerry Fowler told The Australian Financial Review that “this cycle is over” for growth stocks that produce “no profits and won’t have any for a very long time”.

“They are simply priced for their potential for growth.”

The change in scenario means shares typically found in the tech and biotech sectors can be a drag on portfolios from now.

“Now, more than ever, it’s important to make sure growth assets don’t destroy a client’s wealth,” Tagliaferro wrote on a blog post. 

“With interest rates almost certainly to be on the rise in 2022, the sustainability of the returns from growth and speculative stocks is likely to be severely tested.”

He admitted this would be a challenge for investors now after years of “over-reliance” on growth shares to build their wealth.

Cash flow is king now 

After years of near-zero interest rates, any increase in borrowing costs, however minor, will be felt more sensitively than ever before.

“Valuation multiples for many growth stocks are so high that a 100 basis points of interest rate rises today is far more material compared to any other time in current investors’ memories,” said Tagliaferro.

“Highly priced growth stocks, or speculative stocks, will likely see a material de-rating as interest rates and hence the discount rates rise.”

While Fowler recommended investors turn to corporate bonds for their 8% to 10% yield, Tagliaferro still believed there was value among ASX shares.

“What you want as an investor is current cash flow — not 2040 or 2050s cash flow discounted back.”

So investors needed to be super selective from here onwards.

“We continue to find opportunities to invest in good quality stocks that we believe have strong competitive advantage, generate good cash flow, are managed by very credible and competent management teams, and where the outlook for the next 3 to 5 years looks very favourable.” 

Fowler hasn’t entirely abandoned tech all together though. 

He said giants like Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) are still worth holding because they’re already profitable, have pricing power and measurable growth.

“We are not [of] the opinion that broad markets need to fall significantly,” he said.

“Growth is still strong enough to support equity markets and their current valuations so long as we don’t get an even more aggressive [interest rate] hiking path.”

The post Is the party over for tech and biotech ASX shares? appeared first on The Motley Fool Australia.

More reading

• Will 2022 be the year of the cash or the crash for ASX shares?
• 2 ASX shares that could keep growing the dividend every year
• The ASX share that the whole world is relying on
• Rio Tinto (ASX:RIO) share price in focus today following record-breaking results
• 2 top ETFs for ASX investors to watch

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon and Microsoft. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/L6uO7jT

This year started with some significant volatility in January. But will 2022 be the year of a cash or crash for ASX shares?

By 27 January 2022, the S&P/ASX 200 Index (ASX: XJO) had fallen by around 10%. There has been a bit of a recovery since then. But, the ASX 200 is still down by approximately 5% this year.

Some leading ASX shares are still down significantly. For example, since the start of the year the Xero Limited (ASX: XRO) share price is down 33%, the Altium Limited (ASX: ALU) share price is down 25% and the WiseTech Global Ltd (ASX: WTC) share price is down 25%.

Crash or ‘cash’ this year?

There has already been an ASX share market correction this year, with that drop of around 10%.

Rudi Filapek-Vandyck wrote on Livewire about what’s happening to the ASX share market and how inflation is factoring into a lot of the volatility:

The change in inflation forecasts over the past five weeks has been nothing short of dramatic… markets are now considering the idea that the Federal Reserve might have waited too long, and will be forced to step on the monetary brakes through accelerated actions. It is this change in projections that is currently feeding into volatility and uncertainty in markets.

In Australia, the general shift is to pull forward the first RBA rate hike to November or August this year.

In the US, forecasts have literally gone into overdrive with all kinds of scenarios being considered, including starting the cycle with 50bp, hiking at every meeting this year, having rate hikes in between meetings, and continuing at full force throughout 2023.

Indeed, the economists at Goldman Sachs now think that there could be seven interest rate hikes by the US Federal Reserve in 2022.

Why do interest rates matter so much?

Higher interest rates can have a big impact on asset prices, particularly the assets that are being priced for the long-term because investors then have to use a larger ‘discount rate’ to get back to today’s value for that asset. Meaning, higher interest rates lead to lower asset prices for the ASX share market, on paper.

Billionaire Ray Dalio from Founder Bridgewater Associates once said:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

The Reserve Bank of Australia has itself acknowledged that:

Low global policy rates have boosted a broad range of asset prices and encouraged financial risk-taking…the historically low level of interest rates and the protracted length of time they have been at those levels have led to particularly strong responses of asset prices.

Metrics of many assets’ valuation, which are contingent on the low risk-free interest rates, are elevated relative to history. In addition, investor compensation for bearing many types of risk has fallen to record levels, and some investors have significantly increased their risk prices.

A sharp increase in long-term risk-free interest rates toward historically normal levels could result in widespread asset price falls if it is not accompanied by stronger growth.

Is this decline an opportunity or is a crash certain?

There are lots of different opinions on what’s happening. Serial bear Jeremy Grantham thinks that the share market is a “super bubble” and that 2022 could be the year it unravels. But he’s been saying that for a while.

Auscap Asset Management’s principal Tim Carleton thinks that the market has seen some indiscriminate selling but inflation won’t affect all ASX shares equally, according to reporting by the Australian Financial Review. Some could actually benefit in these conditions. Mr Carleton said:

The one thing that I think is getting confused is this correction, particularly in highly priced stocks in the market, has nothing to do with the outlook for the domestic economy. For us, it’s very positive.

Warren Buffett once famously said: “Be fearful when others are greedy and greedy when others are fearful.”

Two of Motley Fool Australia’s leading investors have also shared some thoughts about their views of the recent volatility.

The post Will 2022 be the year of the cash or the crash for ASX shares? appeared first on The Motley Fool Australia.

More reading

• What new ASX share investments are predicted to help the AFIC share price and dividends?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Why did ASX 200 shares leap on the latest wages data released today?

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Y8K6Hlw

There are a handful of ASX dividend shares that have a record of growing dividends for shareholders and have the intention of continuing to grow the payments.

COVID saw lots of dividend cuts for some of the ASX’s most popular income payers like Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL) and Sydney Airport.

These two businesses are ones with growing dividends:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson has the longest-running dividend growth record on the ASX. It has grown its dividend every year since 2000. No other business has a record like that, though there are some which haven’t cut the dividend for decades, they just haven’t increased the dividend like this ASX dividend share has.

It’s an investment conglomerate that owns a large and diversified portfolio of ASX blue chips, as well as some core holdings where it has substantial ownership. Its ‘strategic portfolio’ includes: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Tuas Ltd (ASX: TUA), Pengana Capital Ltd (ASX: PCG) and Apex Healthcare.

The ASX dividend share also has a private equity portfolio which includes things like agriculture, resources, swimming schools and electrical parts. With this, it’s looking for established businesses with sector tailwinds that provide a strong platform for growth.

For new opportunities, it is looking at themes like the energy transition, financial services, health and ageing, food and agriculture, and education.

Soul Pattinson says that its investment strategies have delivered above market returns for decades. It also aims for “steady and growing dividends.”

It has a trailing grossed-up dividend yield of 3.5%.

Sonic Healthcare Ltd (ASX: SHL)

Sonic has been one of the performers in the healthcare sector over the last two years.

Its pathology services were put to use with all of the COVID-19 PCR testing that was carried out in places like Australia, the USA, Germany and the UK.

Growth continued in the first half of FY22 with overall revenue growth of 7% to $4.8 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 18% to $1.5 billion and 22% growth of net profit to $828 million.

Excluding COVID testing, HY22 base revenue was up 4.3%. Management are expecting ongoing growth of the base business, with strong underlying drivers including a catch-up of testing that was postponed through the pandemic.

Sonic is expecting a sustainable level of COVID testing into the future, including routine COVID testing, screening programs, variant testing, antibody testing and so on.

The ASX dividend share spent $585 million on acquisitions in the first half, including ProPath and Canberra Imaging Group. There is also an active pipeline of opportunities under evaluation.

It has launched a share buy-back of up to $500 million with an intention to move towards long-term average gearing through acquisitions and this buy-back.

Sonic maintains a progressive dividend policy. The interim dividend was grown by 11% to $0.40. Its dividend has been growing for approximately a decade.

The pre-franking trailing dividend yield of Sonic is 2.7%.

The post 2 ASX shares that could keep growing the dividend every year appeared first on The Motley Fool Australia.

More reading

• Opportunity? 5 ASX 200 shares that traded at 52-week lows today
• Record financials not enough: Sonic Healthcare (ASX:SHL) share price sinks post-earnings
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• While everyone was focused on growth shares, these ASX value shares have been quietly but significantly gaining over the last 10 years
• This expert says now is the time to buy ASX dividend shares. Here’s why

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare 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.

from The Motley Fool Australia https://ift.tt/KlbDkXC

The Rio Tinto Ltd (ASX: RIO) share price closed up 1.2% yesterday.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant finished the day trading at $119.87.

The Rio Tinto share price is in focus today after the company posted record results for the 2021 financial year (FY21).

Below we look at the highlights from those results, released after market close yesterday.

Rio Tinto share price in focus following record results

• Net cash from operating activities increased 60% year-on-year to US$25.35 billion
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$37.72 billion, up 58% from FY20
• Underlying earnings per share (EPS) of US$13.21, up from US$7.70 in FY20
• Total dividend payout increased 87% year-on-year to US$10.40

What else happened during the year?

Driven by the strong earnings, the miner’s net cash leapt to US$1.58 billion as at 31 December. That compares to a net debt of US$664 million the prior year end.

The Rio Tinto share price is also in focus after the company reported an 88% leap in its free cash flow, which climbed to US$17.66 billion.

With mining activities coming with inherent associated risks, the ASX 200 miner highlighted its focus on safety, noting that 2021 was its third successive fatality-free year of operations.

Rio Tinto also actively worked on rebuilding its relationships with Traditional Owners across its global operations over the course of the year.

And in October, the company released its longer-term strategy to ensure it remains profitable in a decarbonising world. Rio’s new target to reduce its Scope 1 and 2 carbon emissions by 50% by 2030 is more than triple its previous target.

2021 also saw the company progress with its Battery Minerals portfolio. Among the achievements on this front, Rio Tinto signed a binding agreement to acquire the Rincon lithium project in Argentina.

What did management say?

Commenting on the results, Rio Tinto CEO Jakob Stausholm said:

The recovery of the global economy, driven by industrial production, resulted in significant price strength for our major commodities, which we were able to capture, achieving record financial results…

With the launch of our new strategy, we have set a new direction for Rio Tinto to thrive in a decarbonising world. We have a portfolio that is well-positioned, and are targeting disciplined investment in commodities that will see strong demand in the coming decades.

What’s next?

Looking to the year ahead, Rio Tinto expects capital expenditure of roughly $8.0 billion. That takes into account potential increases of approximately 15% for the Pilbara replacement projects.

There’s still a hefty tax bill due to the Australian Taxation Office (ATO). Rio intends to make a final US$1.1 billion payment to the ATO in June.

Citing rising input prices and labour costs, an increased mining work index and higher mine processing plant maintenance, Rio expects its Pilbara iron ore unit cash costs to increase to $19.5-$21.0 per tonne.

Production guidance remained unchanged from its Q4 report.

Rio Tinto share price snapshot

The Rio Tinto share price has been a strong performer in 2022, up 20.2%. That compares to a year-to-date loss of 5.1% posted by the ASX 200.

The post Rio Tinto (ASX:RIO) share price in focus today following record-breaking results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• The iron ore price outlook could be darkening amid China’s latest plans
• 5 things to watch on the ASX 200 on Wednesday
• The week ahead: Earnings, wages and business conditions. Scott Phillips on Nine’s Late News
• Rio Tinto (ASX:RIO) earnings will ‘surprise on the upside’: fundie

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.

from The Motley Fool Australia https://ift.tt/ewbXV3i

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Red Leaf Securities chief executive John Athanasiou explains how the entire western world is relying on the production from one particular ASX-listed company.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

John Anathasiou: This one might be a little gutsy… But given its global strategic importance, I would hold Lynas Rare Earths Ltd (ASX: LYC).

It’s the only significant producer of rare earth materials outside of China. Rare earth materials are required for all sorts of things that we consume on a daily basis — from electric cars, mobile phones to superconductors. 

And the western world really wants a producer outside of China, so it enhances strategic importance. They announced recent record sales revenue of, I think, $202 million dollars. And that’s despite supply chain [issues], which we think will be resolved fairly soon. So there’s even more upside to them. So I think if you hold Lynas now, you’ll be happy in four years’ time.

MF: When did your team buy into it?

JA: We started buying about three or four months ago.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying an ASX stock at the wrong timing or price.

JA: Oh mate, where do we begin? We’re just talking about investments, right!

What I regret the most is underestimating the pace and scale of how the share market recovered following the COVID-19-induced slump prior to March 2020. 

I actually told my team and all my clients, this is the greatest opportunity since the GFC. But I was taken aback by the extent of it. That was so rare and fast. I think it caught a lot of people by surprise.

MF: It was almost like 2020 was five years crammed into one, wasn’t it?

JA: Exactly. That’s like a one-in-10-year event, so you don’t want to miss those opportunities.

MF: After the market fall last month, do you feel like the current situation is going to be as dramatic as that?

JA: I don’t think it’ll be as dramatic.

There will be a bounce because markets traditionally do. But things were really scary back then, if you recall. They’re not as scary now.

MF: The world knows more about the virus now, don’t they?

JA: Correct. We were in uncharted waters. Last time a pandemic happened was 100 years ago.

The post The ASX share that the whole world is relying on appeared first on The Motley Fool Australia.

More reading

• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years
• What even are rare earths and why are ASX shares with exposure always in the spotlight?
• Do Lynas Rare Earths (ASX:LYC) shares pay dividends?
• Lynas (ASX:LYC) share price jumps on government green light

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.

from The Motley Fool Australia https://ift.tt/wDRPaHF

If you’re looking to add some diversity to your portfolio, then exchange traded funds (ETFs) could help you achieve this. ETFs provide investors with exposure to a wide range of themes, sectors, and indices through a single investment.

Two ETFs that you might want to get better acquainted with are listed below. Here’s what you need to know:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The first ETF to look at is the ETFS Battery Tech & Lithium ETF. It aims to provide investors with a return that, before fees and expenses, tracks the performance of the Solactive Battery Value-Chain Index.

This index represents the performance of companies that are providers of electrochemical storage technology and mining companies that produce metals used for the manufacturing of battery-grade lithium batteries.

Given the outlook for lithium prices due to increasing demand and tight supply, the companies included in the fund appear well-placed for growth in the coming years. This could be good news for the ETF.

VanEck S&P/ASX MidCap ETF (ASX: MVE)

Another ETF for investors to look at is the VanEck S&P/ASX MidCap ETF. This ETF gives investors exposure to a diversified portfolio of ASX-listed shares.

It aims to provide investment returns before fees and other costs of the S&P/ASX Midcap 50 Index. This index represents the mid cap universe for Australia and comprises all the members of the S&P/ASX 100 excluding those in the S&P/ASX 50.

VanEck notes that Australian mid caps are the “sweet spot” of the Australian equity universe and represent companies with the spirit of small companies combined with the maturity of large companies. Its holdings include companies from various sectors such as A2 Milk Company Ltd (ASX: A2M), Carsales.Com Ltd (ASX: CAR), Pilbara Minerals Ltd (ASX: PLS), and REA Group Limited (ASX: REA).

The post 2 top ETFs for ASX investors to watch appeared first on The Motley Fool Australia.

More reading

• Why has the ETFS Battery Tech & Lithium ETF (ASX:ACDC) been on a highway to hell the past month?

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 A2 Milk, REA Group Limited, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/AMHF6NI

Australian Foundation Investment Co.Ltd. (ASX:AFI) has told investors about some of the ASX shares that it hopes will help the portfolio returns, and therefore assist the AFIC share price and dividend.

AFIC is one of the oldest listed investment companies (LICs) in Australia. It has a portfolio of 60 to 80 companies across a range of industries, that are selected for their ability to perform through economic cycles and generate returns over the long term.

AFIC aims to provide shareholders with long-term returns and dividends that grow faster than the rate of inflation.

Its portfolio is now approximately $9 billion in size.

Biggest positions in the AFIC portfolio

The LIC tells investors every month about what its top 25 investments are in the portfolio.

At the end of January 2022, these are some of the biggest holdings:

Commonwealth Bank of Australia (ASX: CBA) – 8.5% of the portfolio

BHP Group Ltd (ASX: BHP) – 7.4% of the portfolio

CSL Limited (ASX: CSL) – 7% of the portfolio

Macquarie Group Ltd (ASX: MQG) – 4.7% of the portfolio

Wesfarmers Ltd (ASX: WES) – 4.5% of the portfolio

Transurban Group (ASX: TCL) – 4.1% of the portfolio

Westpac Banking Corp (ASX: WBC) – 3.6% of the portfolio

National Australia Bank Ltd (ASX: NAB) – 3.5% of the portfolio

Woolworths Group Ltd (ASX: WOW) – 2.7% of the portfolio

James Hardie Industries plc (ASX: JHX) – 2.7% of the portfolio

The AFIC share price and portfolio returns are heavily influenced by the bigger positions.

New investments

AFIC recently released its FY22 half-year result, which included details of buys for the portfolio.

These are some of the latest additions to the portfolio:

Transurban Group (ASX: TCL) – Transurban owns a high-quality, diversified toll road portfolio.

AFIC likes Transurban because of its “good track record” of capital allocation by management, driving strong long-term free cash flow growth. It’s expecting a recovery for Transurban in FY23 and the West Gate Tunnel project cost blowout issue has now been resolved. Transurban also has an attractive pipeline of potential opportunities.

CSL Limited (ASX: CSL) – The biotech giant is another addition. It specialises in the treatment of rare diseases and influenza.

AFIC likes the consistently high return on capital that CSL has achieved, with a long and successful track record of capital allocation driving shareholder returns. It continues to invest in 10% to 11% of global sales of R&D.

The LIC likes the acquisition of Vifor Pharma, a new growth area treating kidney disease and iron therapy.

Other additions include the purchase of JB Hi-Fi Limited (ASX: JBH) shares and Coles Group Ltd (ASX: COL) shares.

AFIC portfolio performance

In AFIC’s January monthly update, it revealed that its net asset per share growth plus dividends (including franking) return was 12.5% compared to 10.9% for the S&P/ASX 200 Accumulation Index, including franking.

Over the past five years, the AFIC portfolio return was an average of 10.6%, compared to 10% for the benchmark.

At the time of writing, the AFIC share price has risen 14% over the last year. The S&P/ASX 200 Index (ASX: XJO) has grown 6.3% in the last 12 months.

The post What new ASX share investments are predicted to help the AFIC share price and dividends? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s why CSL (ASX:CSL) could be an ASX 200 share to buy now
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Why did ASX 200 shares leap on the latest wages data released 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. owns and has recommended CSL Ltd. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/SDgFPQj