While “buying and holding” is the philosophy favoured by Warren Buffett and The Motley Fool, it would be foolish to suggest that’s the only way Australians are investing in ASX shares.

Your own personality, risk appetite, time constraints and self-belief will combine to lead to an investment style that you’re most comfortable with.

Are you patient or impatient? Do work and family commitments prevent you from pouring too much time into research? Do you need to fiddle and tinker with your portfolio, or can you let it be?

While there are many variations, a stockstotrade.com blog post managed to classify stock investors into 4 distinct styles.

It can be helpful to identify what type of investor you are and how other people may approach money-making differently to the way you do:

1. Position trading

This is the style that most closely resembles “buy and hold”.

You research the fundamentals of a business. If you decide that it has a bright future, you buy the shares.

Then you wait. Months or even years. You’re in it for the long haul.

“You’ll need a lot of patience and belief in your decisions,” stated the stockstotrade.com blog.

“No matter how many ups and downs the market experiences, you have to ride out the storms to reach your goals.”

While buy-and-hold may not demand much daily portfolio maintenance time, any ASX shares that you commit to must have serious research behind it.

“There’s no way around it. Would you put your money into a single company for years at a time not knowing much about it? I sure hope not!”

2. Swing trading

This involves holding ASX shares for a period of a few days, weeks or maybe months.

Swing traders aim to take advantage of momentum and sentiment for particular stocks. As well as researching fundamentals of the business, they will also follow technical indicators of the stock price too.

They might hold a stock from one ex-dividend date to just before the next one. They might hold it from one quarterly earnings to another.

According to the blog post, this strategy demands at least a couple of hours each day to analyse the market and to execute.

Swing traders end up making about 25 to “a few hundred” trades each year.

3. Day trading  

The term ‘day trading’ can evoke many different connotations to people.

But essentially it is defined as an investor who will sell out of all their positions within the same day.

If they hold anything overnight, that becomes a swing trade.

Day traders aim to profit from very short-term movements in the share price.

According to stockstotrade.com, while day traders must be glued to their computer screens all day, they’re not necessarily buying and selling the entire time.

“Most traders take positions at two key times — at the market open and close. That can mean more time for other things mid-day,” the blog reads.

“But you must do your homework the night before and in pre-market. Prepare for the action.”

Day traders understandably make hundreds to thousands of transactions each year.

4. Scalp trading

This is the fastest-paced strategy available to a retail investor. Shares are only held for a few seconds or minutes.

“Scalp trading demands high focus, concentration, and attention to detail,” stated the blog.

“So you need to be OK with spending long hours in front of your screens.”

These investors are looking for minute-to-minute movements up and down, based on technical analysis of the stock price movements. Very rarely are company fundamentals involved in these fast decisions.  

You also need a decent lump of capital to get started.

“You learn the results of your trade fast and move on fast,” the blog reads.

“You don’t want to take negative emotions from a losing trade into your next trade. You have to accept your last trade and move on to the next.”

Funnily enough, this rapid action method still demands patience from the investor.

“You need to stay glued to your screen throughout the trading day. Then when you find the best setups, it’s time to act fast!”

The post Which one are you? The 4 different styles of trading ASX shares appeared first on The Motley Fool Australia.

More reading

• A2 Milk (ASX:A2M) share price on watch after half year earnings collapse
• 5 things to watch on the ASX 200 on Monday
• Is the Kogan (ASX:KGN) share price a bargain buying opportunity?
• 2 more ETFs ASX investors need to know
• 2 excellent ETFs with compelling potential

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/SrcBXTU

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch this morning.

This follows the release of the struggling infant formula company’s half year results today.

A2 Milk share price on watch after posting big earnings decline

• Revenue down 2.5% over the prior corresponding period to NZ$661 million
• EBITDA down 45.3% to NZ$98 million
• Net profit after tax down 53.3% to NZ$56 million
• Net cash of NZ$667 million

What happened during the first half?

For the six months ended 31 December, A2 Milk reported a 2.5% decline in revenue to NZ$661 million. This was driven by a 10.5% reduction in infant nutrition revenue to NZ$471 million, a 0.2% lift in Liquid milk revenue to NZ$125 million, and a 143.3% jump in other revenue to NZ$65 million. Other revenue includes revenue from its Mataura Valley Milk (MVM) business, which was acquired at the end of FY 2021. MVM revenue was down 8.2% year on year.

Management advised that its first half revenue was impacted by a number of factors, including the lower birth rate and rapidly changing market dynamics in China.

As was widely expected, A2 Milk’s margins were crunched during the period. Management advised that this reflects gross margin pressures, such as adverse product mix and cost headwinds, together with higher marketing investments. The latter ultimately led to the company’s EBITDA margin falling to a lowly 14.8%.

As a result, the company posted a 53.3% decline in net profit after tax to NZ$56.1 million. This has fallen short of the market consensus estimate of NZ$60 million, which may not bode well for the A2 Milk share price today.

Management commentary

Despite this poor result, A2 Milk Company’s Managing Director and CEO, David Bortolussi, believes the company is making progress:

He said: “Despite challenging market conditions in China and COVID-19 volatility, we are making good progress stabilising the business. The growth strategy we announced in October last year to respond to a rapidly changing China market has been completed and implementation is underway with good early progress across a range of initiatives.”

“We remain confident in the long-term China infant milk formula market, and we are growing share in our China label business in-store and online with strong consumer offtake and share growth. The actions we took to address excess infant milk formula inventory last year are proving effective, and we are seeing improvements in English label channel inventory levels, market pricing and product freshness.”

While English label sales were down during the half, we have seen an improvement in trajectory in the ANZ reseller / daigou channel. Our brand health is strong, and we will continue to increase brand investment, content generation, and activation to drive awareness and conversion,” Bortolussi concluded.

Outlook

Due to the uncertainty the company is facing, it is not providing any guidance for FY 2022. However, it has provided observations on key drivers and important issues that may impact its results.

And while management believes that its revenue could be stronger in the second half, this won’t necessarily translate into stronger earnings.

It explained: “The Company’s outlook for 2H22 revenue has improved. It is still expected to be significantly higher than 2H21, and with growth now expected on 1H22 and for FY22, ahead of initial expectations due mainly to growth in China label and English label IMF. However, this revenue improvement is not expected to translate into higher earnings as the Company significantly increases brand and other reinvestment consistent with its growth strategy.”

FY 2022’s marketing investment is now expected to be in the order of NZ$220 million, which is higher than FY 2020 peak levels. This is being done to drive the execution of its growth strategy.

We’ll see how the market feels about this when A2 Milk shares commence trade later this morning.

The post A2 Milk (ASX:A2M) share price on watch after half year earnings collapse appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Own A2 Milk (ASX:A2M) shares? Here’s what to expect when the company reports on Monday
• The A2 Milk (ASX:A2M) share price has 40% upside – broker
• Why opening borders might not be the good news A2 Milk (ASX:A2M) shareholders have been hoping for
• The A2 Milk (ASX:A2M) share price has hit multi-year lows in 2022. Is now the time to catch the cream?

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. 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/gjMGIKE

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell 1% to 7,221.7 points.

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

ASX 200 expected to fall again

The Australian share market looks set to start the week in the red following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 0.7%, and the Nasdaq tumbled 1.2%.

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price fell 0.75% to US$91.07 a barrel and the Brent crude oil price rose 0.6% to US$93.54 a barrel. Oil prices recorded weekly declines amid optimism that Iranian sanctions will lift.

A2 Milk half year update

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch this morning when the struggling infant formula company releases its half year results. According to CommSec, the market consensus estimate is for a net profit after tax of NZ$60 million. This will be down 50% from NZ$120 million during the prior corresponding period.

Gold price edges lower

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday night. According to CNBC, the spot gold price fell 0.1% to US$1,889.8 an ounce. Despite this, the gold price added over 3% to its value over the five days thanks to increased demand for safe haven assets.

AGL takeover

The AGL Energy Limited (ASX: AGL) share price will be on watch today amid reports that the energy giant has received a takeover approach. Atlassian co-founder, Mike Cannon-Brookes, and Canadian infrastructure giant Brookfield are understood to have tabled an $8 billion or $7.50 per share offer to acquire the company. However, this is only a modest 4.7% premium to its last close price.

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

More reading

• These were the best performers on the ASX 200 last week
• What exactly is a share market ‘correction’ and is the ASX in one now?
• These were the worst performers on the ASX 200 last week
• Here are the top 10 ASX shares today
• Broker says Woodside (ASX:WPL) share price can keep rising

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. 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/YfTIy2G

Charter Hall Long WALE REIT (ASX: CLW) share price could be one of the most compelling ASX dividend share options for income.

It’s a real estate investment trust (REIT) that owns a large portfolio of different properties.

Whilst it isn’t the biggest REIT on the ASX, it is building a reputation as being one of the most dependable for dividends. It’s rated as a buy by a few different brokers, including Citi. Here are some of the reasons why it’s attractive:

Diversification

It has a property portfolio that is now worth $7 billion, which the business describes as high-quality and diversified. There are 549 properties, with 79% of them located on the eastern seaboard of Australia.

The portfolio is diversified across different sectors including agri-logistics (4%), social infrastructure (13%), office (19%), industrial and logistics (21%), hospitality (22%), convenience retail (11%) and ‘diversified long WALE retail’ (9%).

Nearly all of the tenants are blue chip tenants – 99% are either government, ASX-listed, multinational or national. Some examples include the Australian Government, Telstra Corporation Ltd (ASX: TLS), BP and Endeavour Group Ltd (ASX: EDV).

Yield

The ASX dividend share is expecting to pay a distribution of at least 30.5 cents per security. Charter Hall Long WALE REIT typically pays a distribution of 100% of operating earnings.

Assuming a payout of 30.5 cents, that translates to a current distribution yield of 6.1% at the current Charter Hall Long WALE REIT share price.

Morgan Stanley, one of the brokers that rates the business as a buy (with a price target of $5.85), thinks that the REIT will pay a distribution of 6.4% in FY23.

Reliability and organic growth

The REIT is proud of its income security. It has a portfolio weighted average lease expiry (WALE) of 12.2 years. Management says that this provides insulation from market shocks. It also gives investors a lot of visibility and security about the rent.

Rental income growth is driven by annual rent increases in all leases. Around 46% of leases are linked to CPI with a 3.3% weighted average increase in the first half of FY22. The other 54% of leases have fixed increases, with an average fixed increase of 3.1%.

This has allowed the business to continue growing the distribution per security by an average of 3.7% per annum since it listed several years ago.

In FY22 it’s expecting to grow the distribution by at least 4.5%, adding to the ongoing growth.

Charter Hall Long WALE REIT share price valuation

At the time of writing, the REIT’s share price is at $5.01. That compared to the net tangible assets (NTA) of $5.89 at 31 December 2021. That implies a discount of around 15%.

The post 3 reasons why the Charter Hall Long WALE REIT (ASX:CLW) share price is a top buy for dividends appeared first on The Motley Fool Australia.

More reading

• Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool 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/WBf5uvK

Is the Kogan.com Ltd (ASX: KGN) share price an opportunity after the business has suffered a significant decline?

Since the start of 2022, it’s down 29%. In the past six months it’s down 53%. It has fallen about 70% in 13 months.

Some businesses may not be better value just because they have fallen. Kogan has gone through a lot of negatives in the last 12 months.

It suffered from a drop in demand. That led to the business ordering too much stock. Warehousing costs jumped and Kogan also had to pay demurrage costs. To shift the excess stock, Kogan increased its marketing – more costs.

Latest update to influence the Kogan share price

At the e-commerce ASX share’s annual general meeting (AGM) at the end of November 2021, it said that it had right-sized the inventory levels which has brought warehousing costs down. But it was still investing in marketing to expand the Kogan First member base and is confident this will have long-term benefits.

In the first four months of FY22 to October 2022, Kogan had generated $12.4 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

Kogan has given investors an update for the six months to December 2021. For the half-year, the company made $21.7 million of EBITDA. But this still represented a 58% decline from last year.

Whilst total gross sales only grew by 9.4% to $698 million, it did represent year-on-year growth. There were some highlights including 28.7% growth of Kogan Marketplace to $221.1 million, 96.7% growth of advertising to $8.1 million and 48.7% growth of Kogan Energy gross sales to $6.6 million.

Kogan.com’s active customers rose 10% to 3.31 million. Kogan First members jumped 176% to 274,000.

Kogan’s inventory has reduced to $196.8 million, down from $227.9 million at 30 June 2021.

Is the Kogan share price an opportunity?

UBS is ‘neutral’ on the business, but with a price target of $6.70. The broker suggested that Christmas/December trading wasn’t as good as it was expecting. COVID impacts continue, with things like the supply chain and advertising remaining elevated.

However, Credit Suisse is still positive on the business with an ‘outperform’ rating and a price target of $9.16. That implies a rise of around 50% over the next year. However, higher costs did mean that the company’s half-year performance wasn’t as good as it was expecting. The low valuation means it’s still an opportunity.

Credit Suisse puts the Kogan share price at 20x FY23’s estimated earnings with a potential FY23 grossed-up dividend yield of 3.6%.

Goals and e-commerce growth

Kogan has a goal of $3 billion of gross sales by FY26, with 1 million Kogan First subscribers. If the gross sales goal is achieved, it would represent a compound annual growth rate of over 20%.

The company says that its market share of online retail is rising (which hit 2.7% in FY21) and the e-commerce market itself continues to rapidly increase in size.

The post Is the Kogan (ASX:KGN) share price a bargain buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Why Shopify’s latest update could raise red flags for e-commerce shares like Kogan (ASX:KGN)
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• Are these 2 ASX tech shares good buys in February?

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 Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. 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/FtSkxeM

Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from. In order to narrow things down, listed below are a couple of ETFs that could be worth a closer look next week. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for ASX investors to look at next week is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this sector is heavily under-represented on the ASX, which could make this ETF particularly attractive for local investors.

Especially given how many analysts are forecasting the sector to grow materially in the future because of the increasing importance of cybersecurity due to the growing threat of cyberattacks. Among the companies in the BetaShares Global Cybersecurity ETF are cybersecurity giants such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Australian Banks ETF (ASX: MVB)

Another ETF for investors to take a look at is the VanEck Vectors Australian Banks ETF. If you are wanting some exposure to the banking sector, but aren’t sure which bank to buy above others, then this ETF could be the answer.

The VanEck Vectors Australian Banks ETF allows you to own a slice of Commonwealth Bank of Australia (ASX: CBA) and all the big four banks, the regionals, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. Another positive is that as these bank shares are traditionally big dividend payers, this ETF could provide investors with a source of income.

The post 2 more ETFs ASX investors need to know appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors to watch in 2022
• 3 top ETFs for ASX investors to look at this month
• This ASX share can give investors access to the compelling cybersecurity world
• 2 excellent ASX tech shares for investors in February
• 3 high quality ETFs for ASX investors in February

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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/2oD9az1

Exchange-traded funds (ETFs) could be a compelling way for investors to gain access to some great businesses but to do it in a diversified way.

Some ETFs are focused on a particular share market – like the Australian share market or European share market. But, there are other options that give the opportunity to invest in certain sectors or themes.

With that in mind, these two ETFs could be long-term options:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is an ETF that is focused on the global share market. It has businesses from many different “major developed countries” in the portfolio. The US does represent 70% of the portfolio, though many US companies do earn international profit as well.

Readers may have heard of many of the biggest holdings in the portfolio including: Apple, Microsoft, Alphabet, Amazon.com, Tesla, Nvidia and Meta Platforms (formerly Facebook).

It’s not all tech giants – other US names include JPMorgan Chase, Berkshire Hathaway, Proctor & Gamble, Home Depot, Visa and Mastercard.

However, there are lots of non-US businesses in the portfolio too such as Nestle, ASML, Roche, LVMH, Toyota, Shell, Novartis, AstraZeneca, Novo Nordisk and Royal Bank of Canada.

There is a total of around 1,500 businesses in the portfolio.

The VGS ETF offers a globally diversified portfolio for an annual management fee cost of just 0.18%.

Past performance is not a guarantee of future results, however over the past five years the Vanguard MSCI Index International Shares ETF has produced an average return per annum of 15.2%.

However, the dividend yield of the ETF is just 1.6% according to Vanguard.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This ETF is much more concentrated than the Vanguard. It has a total of 26 positions that give investors exposure to the global gaming sector.

VanEck says that this industry is a dynamic growth opportunity, which gives investors the ability to invest in the future of gaming. The companies are positioned to benefit from the increasing popularity of video games and eSports.

Each of the businesses in the portfolio generate a significant portion of their revenue from the video gaming sector.

In terms of the biggest positions in the portfolio, these are some of the names: Tencent, Activision Blizzard, Nintendo, Nvidia, Advanced Micro Devices, Netease, Electronic Arts, Take-Two Interactive, Nexon and Bandai Namco. Ubisoft and Zynga are two of the other positions.

There is a mixture between countries – this ETF is much less focused on the US than the VGS ETF. The US is 40.4% of the portfolio, Japan is a 21.4% weighting, China is 20.1%, South Korea is 4.6%, Singapore is 4.2% and so on.

Since listing in September 2020, the ESPO ETF has produced an average return per annum of 8.5%. However, the index that it tracks has produced an average return of 29% per annum over the last five years. Past performance is not a reliable indicator of future performance though.

The post 2 excellent ETFs with compelling potential appeared first on The Motley Fool Australia.

More reading

• 3 excellent ETFs that you need to know about
• What’s going so wrong for ASX ETFs in 2022 so far?
• 2 quality ASX tech shares for investors after the selloff
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 3 exciting ETFs for ASX investors next week

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares ETF. 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/tXe6rDA

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Beach Energy Ltd (ASX: BPT)

According to a note out of Macquarie, its analysts have downgraded this energy producer’s shares to an underperform rating but lifted their price target to $1.50. This follows the release of a half year result that fell short of Macquarie’s estimates. And while the broker has upgraded its earnings forecasts and price target to reflect production growth, it isn’t in a rush to change its rating. Macquarie believes investors would be better off with other options in the sector that offer more value for money. The Beach share price ended the week at $1.49.

Fortescue Metals Group Limited (ASX: FMG)

A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this mining giant’s shares to $16.30. While UBS acknowledges that Fortescue delivered a strong first half result, it doesn’t appear confident on the second half and beyond. This is due to inflationary pressures and concerns that iron ore demand could soften as Chinese construction slows and supply improves. UBS also sees risks with the Iron Bridge project. The Fortescue share price was fetching $19.85 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Credit Suisse have retained their underperform rating and cut their price target on this retail giant’s shares to $30.87. Ahead of the company’s half year results, the broker has reduced its estimates and suspects that management may do the same with its guidance. Credit Suisse feels that with competition increasing, the company will put customers ahead of shareholders. The Woolworths share price ended the week at $34.01.

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

More reading

• Is the Woolworths (ASX:WOW) share price a buy or sell right now?
• These were the worst performers on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• What is a supercycle and are ASX 200 mining shares at the start of one?
• Dividends down, Fortescue (ASX:FMG) Future Industries spending up. Here’s the miner’s justification

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.

from The Motley Fool Australia https://ift.tt/bgZmN1c

Is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price worth buying for its dividend yield?

A lot of investors do think that ANZ shares are a buy. Since 7 February 2022, ANZ has risen by 6%.

How big is the dividend going to be at the current ANZ share price?

The bank is expected to pay a sizeable annual dividend in FY22. Commsec numbers imply that the grossed-up dividend yield will be 7.3%.

Some analysts have very similar dividend expectations. Morgan Stanley also reckons that ANZ will pay a grossed-up dividend yield of 7.3%. Ord Minnett also believes that ANZ will pay a grossed-up dividend yield of 7.3%.

One of the biggest estimates of the dividend from ANZ is from Citi – the grossed-up dividend yield could be 7.8%.

So, lots of estimates for the ANZ dividend yield are somewhere in the 7s.

Latest performance

Investors often like to judge the ANZ share price on the latest comments regarding profit and performance. For ANZ, it gave a market update on 7 February 2022 for the three months to 31 December 2022.

ANZ said that the group net interest margin (NIM) was down 8 basis points for the quarter, with the underlying NIM down 5 basis points. It blamed this on structural headwinds impacting the sector.

But there may be good news ahead – the impact of rising rates, predominately in New Zealand, and recent deposit pricing changes are expected to moderate the ongoing headwinds in the second quarter.

The big four ASX bank also said that it has made solid progress in Australia to improve systems and processes for simple home loans with application times now in line with other major lenders. Last year, ANZ lost market share which is partly blamed on extended loan processing times. Efforts continue to improve response times for more complex home loan applications.

The Australian home loans balance sheet grew slightly in the first quarter of FY22. Managing attrition and margins is a key area of focus because of the high levels of refinancing activity in the sector.

Revenue within the ANZ markets business was soft in October, but performed in line in subsequent months.

‘Run-the-bank’ costs are expected to be broadly flat in the first half.

The credit quality environment has remained benign with a total provision release of $44 million during the quarter.

ANZ said its capital position continues to provide flexibility to return further surplus capital to shareholders and ANZ is considering increasing the size of the current on-market buy-back.

Is the ANZ share price a buy?

Morgan Stanley rates it as a buy, with a price target of $30. The NIM drop was a bigger decline in the latest quarter than what the broker had been expecting. But a recovery of margins, as indicated by ANZ, would be helpful.

Ord Minnett rates it as a buy, with a price target of $30.50. It sees revenue growth for ANZ. The broker prefers ANZ to Westpac Banking Corp (ASX: WBC).

However, the broker with the biggest dividend estimate, Citi, is only ‘neutral’ on the bank with a price target of $29.25.

The post Is the ANZ (ASX:ANZ) share price a buy for the 7.3% dividend yield? appeared first on The Motley Fool Australia.

More reading

• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Own ANZ (ASX:ANZ) shares? The bank just tipped $70m into a new ‘green’ partnership
• ANZ (ASX:ANZ) shares drop amid $1bn raising: Time to buy?
• Is the ANZ (ASX:ANZ) share price in the buy zone following its Q1 update?

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 Westpac Banking Corporation. 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/j3A9euz

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target slightly on this biotherapeutics company’s shares to $335.00. This follows the release of the company’s half year results, which has eased concerns about plasma collections headwinds. Citi also notes that management has effectively upgraded its FY 2022 guidance by 5%. The CSL share price ended the week at $265.57.

Challenger Ltd (ASX: CGF)

A note out of Morgan reveals that its analysts have retained their add rating and lifted their price target on this annuities company’s shares to $7.74. This follows the release of a half year result that came in ahead of expectations. Overall, the broker was impressed with Challenger’s performance and highlights its good asset growth in both Life and Funds Management, and a broadly stable Life COE margin at an underlying level. In light of this positive form, it believes the company’s shares are trading on undemanding multiples. The Challenger share price was fetching $6.73 at the end of the week.

Goodman Group (ASX: GMG)

Another note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this integrated property company’s shares to $29.50. Citi notes that Goodman’s half year results came in ahead of its expectations. And while management has once again upgraded its guidance, the broker still believes Goodman is being conservative and expects the company to outperform it. The Goodman share price closed the week at $23.06.

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

More reading

• 3 of the best results on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• Brokers name 3 ASX shares to buy today
• Why is the Challenger (ASX:CGF) share price outperforming this 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. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Challenger 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/gPqjQFy