Share markets will continue to power ahead in 2022 and reward investors that stay in the game, rather than those who drop out.

That’s the opinion of Montgomery Investments chief investment officer Roger Montgomery, who said portfolios will need to be selective about which ASX shares to hold.

“Investing in quality, avoiding the rubbish and not jumping at the shadows that are already a part of the investment landscape are the keys to navigating markets and it will be no different in 2022.”

The S&P/ASX 200 Index (ASX: XJO) has had an exceptional run recently. It rose an attractive 13% over 2021, and more than 54% since the March 2020 COVID-19 crash.

Therefore some investors are nervous that 2022 would bring a brutal dip.

While acknowledging the risk of a 10% to 15% correction, Montgomery said such crashes can happen any year, as they were usually triggered by unexpected “Black Swan” events.

“Generally, it won’t be what we already know that brings on a correction,” he said on the Montgomery blog.

“For now, we can probably rule out a correction from inflation or the current Omicron strain of COVID-19 because there are as many adherents of these ideas as there are detractors.”

Inflation is not going to trigger a stock market correction

Current inflation fears will not spiral out of control, according to Montgomery.

“Most of the headlines warning inflation isn’t transitory cite manufacturers and retailers who state emphatically prices aren’t coming down,” he said.

“But that isn’t tantamount to accelerating inflation. It just means there will be no deflation.”

He took the example of the United States.

“If US inflation this year is 7% but next year 6.5%, the retailers and the manufacturers will be right – prices aren’t going down,” said Montgomery.

“It is also true, however, that price increases are decelerating and that’s called disinflation.”

Montgomery noted disinflation is actually “very good” for especially growth shares, if it’s accompanied by economic expansion.

“Innovative companies and those with pricing power, which tend to be those with sustainable competitive advantages, do best in a disinflationary economic expansion,” he said. 

“Read any of our documentation and you will find we have always preferred businesses with sustainable economic advantages because it is these companies that produce attractive returns on their equity.”

If disinflation arrived, it could actually supercharge 2022 to another massive year of returns for shares, noted Montgomery.

The pandemic is much more likely to whack ASX shares

For Montgomery, investors need to keep a closer eye on the coronavirus than inflation, since that’s much more likely to bring up a surprise for the market.

“Transmissibility appears to be increasing with each variant… COVID-19 may yet have a long way to evolve,” he said.

“Understandably, Main Street is worried a variant emerges, able to undermine the current crop of vaccines. Trading at near-record highs, market prices suggest such an outcome is not anticipated, so such a development could be an unmitigated disaster.”

But picking high-quality companies provides the best protection against even unexpected slumps in shares.

“Through every crisis the highest quality companies, by definition, have fallen less and then rallied first and fastest afterwards,” he said.

“I suggest the same pattern will emerge during and after the next crisis.”

Longer term, once international borders open up to supply more workers into the Australian labour pool, shares could be pushed up even further.

“I currently expect we will return to structurally lower wages growth and therefore structurally lower inflation and interest rates. All very positive for markets.”

The post 2022 will be an awesome year for ASX shares: Here’s why appeared first on The Motley Fool Australia.

More reading

• How much the average Australian investor earned in 2021
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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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Australian investors made “a small fortune” over the course of 2021, a new survey has found.

Research conducted by comparison site Finder showed 75% of Australian stock investors boasted a positive return in the past year.

The average growth of their portfolios was a pleasing 20.4%.

To compare, the S&P/ASX 200 Index (ASX: XJO) put on 13% for the 2021 calendar year.

The Finder study showed the average Australian portfolio of $31,613 would have earned a tidy $5,356 last year.

Near-zero interest rates make ASX shares very attractive

According to Finder share trading expert Kylie Purcell, ASX shares were “a smart way” to invest with interest rates at historic near-zero levels.

“Australians have been quick to adapt by putting some of their money into shares, which can deliver higher returns,” she said.

“The 2020 market crash was a game changer for Australians, with thousands of people a day signing up to online brokers for the first time.”

Indeed, the research showed 37% of Australians now own a stock portfolio, with millennials (46%) and generation Z (42%) leading the participation.

According to Purcell, a huge lump sum isn’t a prerequisite for Australians to get started with ASX shares.

“You don’t need to be rich to get involved – there are also micro-investing apps that let you invest your spare change.”

Traps to watch for in 2022

In a country traditionally obsessed with real estate, many Australians used to have a perception that buying ASX shares is complicated.

But new online tools have recently opened up a new world for many everyday people.

Purcell did warn of hidden charges though.

“Online platforms and apps like eToro and Superhero have made it super easy for everyone to jump in. They’re intuitive to use – but watch out for brokerage and subscription fees,” she said.

“Some platforms also charge an inactivity fee if you’re not regularly trading, so it’s worth comparing your options before getting started.”

She added that while many Australians with ASX shares beat the market over the past 12 months, they need to continue exercising caution.

“It’s a good idea to ensure your investment is diversified. Instead of betting all your chips on one or two companies, spread it out to reduce your risk.”

The post How much the average Australian investor earned in 2021 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound

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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With interest rates at such low levels, income investors may want to look at the dividend shares listed below for a source of income.

Here’s why these two ASX 200 dividend shares have been rated as buys:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share for investors to consider is Australia’s largest bank, CBA.

While weakness in its net interest margin due to intense competition for home loans has weighed on its shares recently, the team at Bell Potter believe it is worth sticking with the bank.

Its analysts like CBA due to its leadership position in home lending and retail deposits. Bell Potter also notes that its strategic strengths of scale, brand, and diversification are supported by an irreplaceable infrastructure comprising over 1,100 branches, 3,800 Australia Post agencies, and nearly 3,600 ATMs. All in all, this bodes well for its future growth when trading conditions normalise.

Bell Potter currently has a buy rating and $111.00 price target on the bank’s shares. As for dividends, the broker is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $102.65, this will mean yields of 3.8% and 4%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 dividend share that could be in the buy zone is Suncorp. It is the banking and insurance giant behind a number Australia and New Zealand’s most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

Goldman Sachs is positive on the company’s shares at the current level. The broker currently has a buy rating and $13.74 price target on them. As for dividends, Goldman is forecasting attractive dividend yields in the coming years. It has pencilled in fully franked dividends per share of 61 cents in FY 2022 and 73 cents in FY 2023.

Based on the current Suncorp share price of $11.60, this will mean yields of 5.25% and 6.3%, respectively.

The post Analysts name 2 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Experts tip the ASX sectors that are set to outperform in 2022
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?
• Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say

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 ResMed Inc. (ASX: RMD) share price has been a strong performer over the last 12 months.

During this time, the sleep treatment specialist’s shares have risen 20%.

This is almost twice the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the ResMed share price?

The team at Goldman Sachs has been running the rule over the ResMed share price following its appearance at the GS Healthcare CEOs Unscripted Conference 2022.

And while the broker has only retained its neutral rating on ResMed’s shares, its price target of $37.20 implies attractive potential upside of 10.5% over the next 12 months.

What did the broker say?

According to the note, ResMed sees clear scope for tailwinds from the Philips recall to persist beyond 2022. Goldman highlights that the company has run various scenarios on how and when Philips will return to market as it continues to execute on its product recall.

Goldman commented: “Whilst RMD acknowledges some risk that PHIA [Philips] may choose to complete strongly on price as/when it does return to market, it sees a far greater likelihood that any share gains recovered will be far more easily done so from the secondary/tertiary players that have also benefited from the current disruption.”

However, its analysts note that current supply chain challenges for semiconductors are restricting ResMed’s opportunity.

The broker explained: “RMD stated that the $300-350m recall tailwind guided for FY22 would be substantially higher were it not for challenges around component availability (we estimate approximately double). Management reiterated commentary from the 1Q22 result in October, stating that the availability of components and outbound distribution could contribute to incremental challenges in both 2Q and 3Q (sequentially vs. 1Q), but remains confident in conditions improving from 4Q.”

This is being compounded by elevated freight and distribution costs. Though, pricing has been strong and looks set to offset much of this.

Finally, Goldman highlights that new diagnoses are averaging 90% to 100% of pre-pandemic levels across its global business despite Omicron, its software as a service business is on track to return to growth in FY 2022, and management believes it has a big opportunity with its home-based nasal high-flow therapy.

The post Here’s what this broker thinks of the ResMed (ASX:RMD) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 buy-rated ASX growth shares
• Broker tips ResMed (ASX:RMD) share price to rise over 20%
• In the green: Here are the 5 best ASX healthcare shares of 2021
• 3 top ASX growth shares to buy in January

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 ResMed Inc. 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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Over the last couple of years, decent returns from term deposits have been harder to find than an Aussie visa at a tennis tournament. As a result, investors have been increasingly looking to ASX dividend shares as a potential source of income. Now that 2022 is upon us, we asked our Foolish contributors to compile a list of some of the ASX dividend shares experts are picking as solid investments this year. Here’s what the team came up with…

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

Soul Pattinson is the ASX share with the longest, consecutive growth in its annual dividend. The company has grown its dividend payments every year since 2000.

Sol Patts has a diversified portfolio that is predominately defensive and largely uncorrelated, giving it reliable cash flow to pay growing dividends. The company is invested in telecommunications, resources, building products, property, agriculture, financial services, and more.

Soul Pattinson regularly invests in opportunities to grow its cash flow, capital value and dividend. It is looking at themes like healthcare, the energy transition, agriculture, financial services, and education.

Based on the Sol Patts share price of $30.13 at Friday’s close, the company offers a grossed-up dividend yield of approximately 3%.

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Co. Ltd.

Brooke Cooper: Accent Group Ltd (ASX: AX1)

Accent Group operates more than 600 stores and 20 online platforms, spread across 26 brands. Those who frequent Australian shopping centres will likely be familiar with its businesses, which include Skechers, Platypus, and Hype.

Accent Group ended financial year 2021 with an additional 83 stores and is on track to operate more than 700 stores this financial year.

The company’s dividends are fully franked and represent a 4.84% yield based on the Accent Group share price of $2.33 at the close of trade on Friday. Additionally, UBS has slapped the company’s shares with a $3 price target, representing possible upside of almost 30%.

Motley Fool contributor Brooke Cooper does not own shares of Accent Group Ltd.

Sebastian Bowen: Westpac Banking Corp (ASX: WBC)

Westpac is an ASX divided share that might be worth a look at as we start the new year. As one of the big four ASX 200 bank shares, Westpac has long held a reputation for being a dividend heavyweight.

Despite an unwelcome interruption to this stream of dividends in 2020 due to the COVID-19 pandemic, Westpac rebounded with a vengeance last year. Its two most recent dividend payments give this bank a trailing dividend yield of 5.43% on current pricing, the highest of the ASX banking sector. Grossed up with Westpac’s full franking, the bank currently offers a yield of more than 7.76%.

Motley Fool contributor Sebastian Bowen does not own shares of Westpac Corp.

Bernd Struben: Super Retail Group Ltd (ASX: SUL)

Super Retail Group ranks among Australia’s 10 biggest retail companies, with a market capitalisation of around $2.7 billion. The company’s four retail brands – Supercheap Auto, Rebel Sport, BCF (Boating, Camping and Fishing), and Macpac – target a broad customer base of motoring, sporting and outdoor enthusiasts.

Super Retail Group has more than 670 retail stores and 12,000 employees across its Australian, New Zealand and Chinese operations. Its online sales are also growing strongly. The company has a strong balance sheet and trades at a trailing price-to-earnings (P/E) ratio of 9.50 times.

Based on the Super Retail Group share price of $12.05 at Friday’s close, the company pays a dividend yield of around 7.3%, fully franked.

Motley Fool contributor Bernd Struben does not own shares of Super Retail Group Ltd.

Aaron Teboneras: Dicker Data Ltd (ASX: DDR)

Dicker Data is an Australian distributor of computer hardware, software, and related products. Its vendor partners include many of the world’s leading IT names.

Dicker Data services approximately 7,000 retailers which, in turn, sell to clients ranging from small and medium-sized enterprises to large corporate businesses.

In its third-quarter update, the company reported double-digit growth for both total revenue and profit before tax. Over the past 12 months, Dicker Data has delivered dividends totalling 37.5 cents. This represents a dividend yield of 2.73%, based on Friday’s closing share price of $13.69. Furthermore, the Dicker Data share price has jumped more than 30% since this time last year.

Motley Fool contributor Aaron Teboneras does not own shares of Dicker Data Ltd.

James Mickleboro: Woodside Petroleum Limited (ASX: WPL)

This energy producer has been tipped as a buy by the team at Morgans. This is partly due to its impending merger with the petroleum assets of BHP Group Ltd (ASX: BHP). Morgans believes the merger is transformative and that Woodside is getting the better end of deal.

The broker currently has an add rating and $29.95 price target on the company’s shares. It is also forecasting fully-franked dividends of $1.21 per share in FY 2022 and then $1.06 per share in FY 2023. Based on the Woodside share price of $22.70 at Friday’s close, this will mean yields of around 5.3% and 4.7%, respectively.

Motley Fool contributor James Mickleboro does not own shares of Woodside Petroleum Limited.

The post Top ASX dividend shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top broker names 2 ASX 200 dividend shares to buy
• Could ASX 200 coal shares be in for another boost?
• Is it a buy in 2022? Top brokers focus in on the Woodside (ASX:WPL) share price
• Westpac’s (ASX:WBC) $400m superannuation sale could be nearing the pointy end

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Dicker Data Limited, Super Retail Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a volatile week on a positive note. The benchmark index rose 1.3% to finish the week at 7,453.3 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to start the week on a mildly positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones trade flat, the S&P 500 fall 0.4%, and the Nasdaq drop 1%.

Oil prices fall

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices finished the week in the red. According to Bloomberg, the WTI crude oil price fell 0.7% to US$78.90 a barrel and the Brent crude oil price dropped 0.3% to US$81.75 a barrel. This couldn’t stop oil prices recording strong weekly gains amid Kazakh and Libyan concerns.

Treasury Wine shares rated neutral

The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to the team at Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target on the wine giant’s shares to $11.80. While the broker was pleased with its acquisition of Frank Family Vineyards, it notes that industry data updates remain weak.

Gold price higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a positive note after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.45% to US$1,787.40 an ounce. The gold price pushed higher after weaker than expected US jobs data.

ResMed rated neutral

ResMed Inc. (ASX: RMD) shares have also been given a neutral rating and $37.20 price target this morning by Goldman Sachs. This follows the company’s appearance at one of the broker’s Healthcare Conferences. Goldman notes that management sees clear scope for tailwinds from a competitor recall to persist beyond 2022. Though, supply chain challenges continue to restrict the opportunity and elevated freight/distribution costs remain a key margin headwind.

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

More reading

• 3 buy-rated ASX growth shares
• What happened to the Northern Star (ASX:NST) share price in 2021?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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 ResMed Inc. and Treasury Wine Estates 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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Investing in the small side of the share market carries more risk than other areas. However, if your risk tolerance allows for it, having a bit of exposure to this side could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are two small cap ASX shares that could be worth watching closely. Both have been tipped to climb notably higher from current levels. They are as follows:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap ASX share to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company’s cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics.

These services are in great demand from end users. As a result, at the last count, Ai-Media Technologies was delivering 7 million minutes of live and recorded media content, and online events and web streams each month. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies’ shares. This is more than double the current Ai-Media Technologies share price of 70 cents.

SILK Laser Australia Limited (ASX: SLA)

Another small cap ASX share to watch closely is SILK Laser. It is one of Australia’s largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. SILK’s five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products.

SILK has also been experiencing strong demand for its services, despite the pandemic. This has underpinned stellar sales and profit growth since its IPO. The good news is that management still sees significant room to expand its clinic over the next decade to drive further growth. Wilsons is bullish on SILK and has an overweight rating and $5.25 price target on its shares. This compares to the latest SILK share price of $4.21.

The post 2 growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares to watch in January
• 3 exciting small cap ASX shares analysts rate highly
• 3 buy-rated small cap ASX shares with major upside potential

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 SILK Laser Australia 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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ASX tech shares could be the right place to find opportunities in January 2022.

There has been a lot of volatility over the last couple of months, with some businesses dropping (close) to multi-month lows.

High-quality businesses that are growing quickly with big margins could be very attractive for the long-term after a bit of a bump.

Keeping that in mind, here are two leading ideas:

Xero Limited (ASX: XRO)

Xero is a leading cloud accounting business with operations globally. It has a sizeable presence in several places including Australia, the UK, New Zealand, the USA, Singapore and South Africa. Canada is another country that Xero wants to build a large presence.

In terms of the profit margin, it isn’t making much of a net profit because the ASX tech share is prioritising the long-term by re-investing for growth.

However, Xero does have a very high gross profit margin – in the first half of FY22 that margin increased 1.4 percentage points to 87.1%. This means that most of the revenue falls to the earnings before interest, tax, depreciation and amortisation (EBITDA) line.

In terms of growth, Xero is rapidly growing operationally and this is coming through in the financial numbers.

Subscribers are growing, in HY22 the total subscribers rose 23% to 3.01 million. Australia had 1.24 million subscribers and the UK had 785,000 subscribers, being the two regions with the largest subscriber totals.

The subscriber growth is helping annualised monthly recurring revenue (AMRR) rise even faster, which saw 29% growth to NZ$1.13 billion. This was also helped by a 5% increase in the average revenue per user to NZ$31.32.

Xero has been making acquisitions to add significant product and talent capabilities to Xero, as well as new revenue streams and enter new categories. Three of the ASX tech share’s acquisitions have been Planday, Tickstar and Waddle.

The Xero share price is at a multi-month low.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara Health is a healthcare business that offers a breast health platform. Its software can be integrated into various parts of clinics including risk analysis, decision making, administration and so on.

It has already built a large market position in the US through both organic growth and acquisitions such as CRA Health. Around 34% of US women who had a breast scan had a Volpara product applied on their images and data.

Volpara has an even higher gross profit margin than Xero. In the first six months of HY22 the margin was 91.4%. Revenue is also growing very quickly – there was an increase of 30% to NZ$12.3 million in the first six months of FY22 (it was a 38% increase in constant currency terms).

The ASX tech share is continually attracting accolades with certifications and peer-reviewed articles.

Volpara is working on expanding its electronic health record (EHR) sales channel as well as increasing its average revenue per user (ARPU).

Over the long-term, growth in its lung screening software could lead to this segment developing into a sizeable part of the business. It thinks the lung screening market in the US alone could be worth over US$400 million of annual recurring revenue (ARR).

In FY22, Volpara is expecting revenue to grow by over 25% to be more than NZ$25 million.

The Volpara share price is close to its 52-week low.

The post Are these 2 ASX tech shares good buys in January? appeared first on The Motley Fool Australia.

More reading

• How did the S&P/ASX All Technologies Index (XTX) perform in 2021?
• ASX 200 tech shares on watch after Nasdaq selloff
• Here’s how the Xero (ASX:XRO) share price performed in 2021
• These ASX mining, tech, and bank shares could be buys in 2022
• 3 exciting small cap ASX shares rated as buys

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 VOLPARA FPO NZ and Xero. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ and Xero. 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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Are you looking for dividend shares to buy next week? If you are, then you might want to look at the shares listed below that Citi rates as buys.

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

Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long Wale REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors.

It recently added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. ALE owns a portfolio of ~78 pub properties across the five mainland states that are all leased to ALH Group, which is part of Endeavour Group Ltd (ASX: EDV).

The team at Citi is positive on Charter Hall Long Wale REIT. It currently has a buy rating and $5.59 price target on its shares.

The broker is also forecasting dividends per share of 31 cents in FY 2022 and 32 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $5.04, this will mean yields of 6.15% and 6.35%, respectively.

Rio Tinto Limited (ASX: RIO)

Rio Tinto is of course one of the world’s largest miners with a portfolio of assets across a range of commodities. These include aluminium, copper, diamonds, energy, iron ore, and lithium. The latter follows the recent acquisition of the Rincon operation in Argentina for US$825 million.

Citi believes that this acquisition confirms Rio Tinto’s ambition to be a serious player in lithium/battery materials. And given the favourable outlook for lithium, this bodes well for the mining giant’s future free cash flows.

In the meantime, though, Citi expects them to be strong enough to provide investors with very generous dividends in FY 2022 and FY 2023. It is forecasting fully franked dividends per share of $9.62 and $8.03, respectively. Based on the current Rio Tinto share price of $103.63, this will mean yields of 9.3% and 7.8% over the next two years.

Citi has a buy rating and $115.00 price target on the company’s shares.

The post Citi rates these 2 ASX dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• Is the Rio Tinto Limited (ASX:RIO) share price a buy for its 13% dividend yield?
• 5 things to watch on the ASX 200 on Friday
• 6 ASX shares involved with green metals
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

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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With most brokers still taking a well-earned break, notes are few and far between currently.

In light of this, listed below are a few recent broker recommendations that remain relevant today. Here’s why brokers think investors should buy these ASX shares:

CSL Limited (ASX: CSL)

According to a note out of Macquarie, its analysts have an outperform rating and $338.00 price target on this biotherapeutics giant’s shares. This follows news that CSL is acquiring Vifor Pharma for $17 billion. Macquarie expects the deal to be earnings per share accretive from FY 2023. The broker also sees opportunities for CSL to scale and grow Vifor’s renal business to underpin its longer term growth. The CSL share price was trading at $282.40 on Friday.

Life360 Inc (ASX: 360)

A note out of Morgan Stanley reveals that its analysts have an overweight rating and $16.50 price target on this app maker’s shares. According to the note, the broker was pleased with Life360’s decision to acquire personal items tracking company Tile for US$205 million (A$282.8 million). It expects the deal to widen the company’s target market and offer further cross sell and upsell opportunities. The Life360 share price was fetching $8.35 at the end of the week.

NEXTDC Ltd (ASX: NXT)

Another note out of Macquarie reveals that its analysts have an outperform rating and $16.10 price target on this data centre operator’s shares. This follows news that NEXTDC has just acquired its first edge data centre. The new centre is located in Maroochydore on the Sunshine Coast but could be the first of many. Macquarie sees a big opportunity in edge data centres. It notes that these centres service regional areas and have the potential to offer greater returns than current centres in capital cities. The NEXTDC share price was trading at $11.66 at Friday’s close.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Experts tip the ASX sectors that are set to outperform in 2022
• Own CSL (ASX:CSL) shares? Here’ s how the $17bn Vifor Pharma acquisition will boost its growth
• 2 excellent ASX tech shares to buy after the market meltdown
• Top brokers name 3 ASX shares to buy today
• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?

Motley Fool contributor James Mickleboro owns Life360, Inc. and NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and Life360, Inc. 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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