Are you looking for dividend shares to add to your income portfolio next week? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with attractive yields in the coming years. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is a leading homewares and furniture retailer with a presence online and offline through three brands. These are the eponymous Adairs brand, its online-only brand Mocka, and the newly acquired Focus on Furniture brand.

And while trading conditions have been tough due to lockdowns, the team at Morgans thinks investors should stick with the company.

Its analysts have recently put an add rating and $3.70 price target on its shares. Morgans is also forecasting fully franked dividends of 19 cents per share in FY 2022 and 23 cents per share in FY 2023. Based on the current Adairs share price of $3.11, this will mean yields of 6.1% and 7.4%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone is NAB. This is due to its strong position in business banking, the positive outlook for interest rates, and its acquisition of Citi’s Australian consumer business. The latter fills a gap in its offering which bodes well for its future growth.

Bell Potter remains very positive on NAB and has a buy rating and $32.00 price target on its shares.

The broker is also expecting attractive yields in the coming years, with fully franked dividends per share of 132.5 cents in FY 2022 and 134.5 cents in FY 2023. Based on the current NAB share price of $30.58, this will mean yields of 4.3% and 4.4%, respectively, over the next couple of years.

The post Why NAB (ASX:NAB) and this ASX dividend share could be buys appeared first on The Motley Fool Australia.

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• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why did the NAB (ASX:NAB) share price smash 4-year highs today?
• Own NAB (ASX:NAB) shares? Here’s why the bank’s carbon credits scheme is attracting global interest
• 2 underrated ASX dividend shares expected to unleash big payouts in FY23
• This expert says now is the time to buy ASX dividend shares. Here’s why

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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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Last week earnings season went up a gear with a number of popular S&P/ASX 200 Index (ASX: XJO) shares reporting their latest numbers.

Among the highlights were the three results summarised below. Here’s what they reported:

CSL Limited (ASX: CSL)

The CSL share price charged higher last week after its half year results impressed the market. The biotherapeutics giant reported a 5.3% increase in revenue to US$6,041 million but, as was widely expected, a 5% constant currency decline in net profit after tax to US$1,722 million. The latter was driven by plasma collection headwinds, which weighed on margins. However, management spoke positively about the outlook for collections and effectively upgraded its profit guidance for FY 2022 by 5%.

South32 Ltd (ASX: S32)

The South32 share price pushed higher after the market responded positively to this mining giant’s half year results. Thanks to rising commodity prices and robust production, the miner reported a 32% increase in revenue to US$4,602 million and a massive 638% jump in its underlying earnings to US$1,004 million. This allowed South32 to pay a fully franked 8.7 US cents per share interim dividend. Another highlight from the result was its strong free cash flow from operations, which came in at US$942 million. This has some analysts speculating that its strong cash generation could support further M&A activities in the near future.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price was on form last week after it released its half year results. While the wine giant continues to be impacted by being shut out of Mainland China, management appears confident that the tide is turning. In respect to the result, Treasury Wine reported a 10.1% decline in net sales revenue to $1,267 million and a 6.7% decline in EBITS to $262.4 million. As for the future, management has advised that it is now shifting its focus from “recovery and restructuring” to one of “growth and innovation.”

The post 3 of the best results on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 ASX 200 dividend shares to buy now
• Brokers name 3 ASX shares to buy today
• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• The ‘tide is beginning to turn’: CSL (ASX:CSL) share price tipped to rise
• South32 (ASX:S32) share price jumps as profit soars

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 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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I am the luckiest bloke in the world.

No, I didn’t win lotto.

No, I didn’t discover a long-lost mega-rich great-uncle.

I’m lucky because I won, as Warren Buffett puts it, the ovarian lottery.

I was born to wonderful parents, in a fabulous country, at an incredible time in human history. I have a terrific family and a job I love.

Maybe you think you’re luckier than me. (Perhaps you have that rich great-uncle I lack!)

I still reckon I’d come out on top. Life hasn’t always been perfect, but I’m bloody fortunate.

Maybe you haven’t been quite so lucky.

But, if so, only by the tiniest of margins.

Because I want you to think about all of the permutations that had to play out for you to be here, millions and millions of years after your very-distant earliest relatives made their way out of the primordial sludge.

Imagine if Earth hadn’t been so hospitable to carbon-based lifeforms.

You wouldn’t be here. Me either.

Imagine if the asteroid that wiped out the dinosaurs took all life with it?

Sure, new life might have formed, but your ancient bloodline would have been wiped out and, well, you wouldn’t be here.

Imagine if your great-great-great-great grandmother and grandfather hadn’t met.

There’d be no you.

And so on, through all of life’s events and circumstances, for centuries and millennia.

Seriously, the sequence of random events, near-misses, could-have-beens and never-weres is mind boggling.

The odds of you being here, now, are longer than winning the lottery.

Much longer.

And not only here, but now.

A couple of hundred years ago, your life would have been very different.

No modern technology. No old technology, either. No electricity or motorised transport.

No modern sanitation or healthcare.

95% of the jobs we do today didn’t exist.

And the 5% that did were far more difficult and far less efficient.

Sometimes, when I’m feeling like I want to take a break from modern life, the 1820s doesn’t seem too bad.

But that feeling doesn’t last long. Maybe 1 in 10 people reading this wouldn’t be here, having died in childbirth or as infants. Most of the people over, say, 65 reading this wouldn’t be here any more, either.

Our teeth would be rotten, surgery would be hit and miss and done without anaesthetic by butchers-cum-surgeons. And you’d be stuck in whatever station you were born into.

Even those with an unlucky life by modern standards would have been considered fortunate a couple of hundred years ago.

Which isn’t an excuse for us to rest on our collective laurels, by the way. While we have the resources and opportunity to make our society better, I reckon we’re morally obligated to do so.

But it’s a reminder of just how lucky we are.

We are also lucky in a different way, and one that has particular relevance to my day job: we have very good access to very well run investment markets.

The idea of stock markets goes back a few centuries. But they were relatively limited, expensive to take part in, and regulatory oversight was negligible.

Modern stock markets go back maybe 130 years or so.

And they have continued to improve.

Costs have come down. Regulation has improved. Technology has given us access to almost-instant information, shared openly and equally.

Just before I started investing, brokerage was usually over $100 per trade (via phone to a bloke – it was usually a bloke – who’d place trades for you). I got lucky, starting when online brokers had been established, and I could trade for the unheard of bargain of $30 per transaction. Still, information wasn’t universally available.

Now? Trades are close enough to free, and information is plentiful. It has literally never been easier for the average person to own shares.

And the advent of exchange-traded-funds has meant that you can, with a very, very bare minimum of knowledge and money, have access to the average market return.

Oh, and speaking of the average return, over more than a century, that’s been somewhere between 9% – 11% per annum.

Extraordinary.

(If that doesn’t sound extraordinary at first glance, check this out: a 9.6% annual return turned a hypothetical $10,000 into more than $160,000 in the last 30 years, according to fund manager Vanguard. Not bad for just leaving your investments well alone!)

But the luck doesn’t stop there.

Thanks to improvements in our society over the last century, most of us have the relatively historically unparalleled ability to save some of our incomes to invest. That wasn’t always the case for most of the country 100 years ago.

One more? I’m glad you asked.

Even if you’re struggling to find a spare zack to invest, if you’re working your employer is sending 10% of your paycheque to your nominated Super fund to build retirement wealth on your behalf.

Yes, the last few months have been rocky for many ASX investors, as volatility and uncertainty whipsaw share prices.

I’m down a decent chunk since the highs of last year.

It hurts. No-one likes losing money.

But we’ve been here before.

Remember: The ASX has never yet failed to regain and surpass its previous highs. Sure, this could be the first time… but is it likely? No, I don’t think so.

And viewed through the lens of how lucky we are to be here, now, with the opportunities and benefits that come from being an Australian in 2022… well, those short-term gyrations pretty much fade into the background, I reckon.

If you’re doing it tough right now, you have my sympathies. I hope things improve for you.

And I’m not going to make light of those struggles. They’re real and often very tough.

But if I had to face the slings and arrows of outrageous fortune… here, and now, are the best time and place to do it, I reckon.

And that’s my exhortation: don’t forget how bloody lucky we are. And don’t miss the opportunity to make the best of that luck – investing and otherwise.

Have a great weekend!

Fool on!

The post You’re far, far luckier than you think appeared first on The Motley Fool Australia.

More reading

• 3 of the best results on the ASX 200 last week
• Are these 2 top ASX growth shares buys?
• Are high lithium prices here to stay? Industry insiders say yes
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• 3 small cap ASX shares with enormous upside potential

Motley Fool contributor Scott Phillips 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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Some of the leading ASX growth shares have seen their share prices dip, or plunge, since the start of the year.

This period of time could be an interesting one for investors looking for opportunities.

A business isn’t necessarily a better buy because it has fallen in price. However, for some it certainly can mean it’s better value.

With that in mind, here are two top ASX growth shares:

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the world leaders when it comes to retailing plus-size clothing, footwear and accessories for women. It operates a number of brands across different markets including City Chic, Evans and Avenue.

The business continues to see rapid sales growth. In the 26 weeks to 26 December 2021, City Chic’s sales revenue rose by 49.8% to $178.3 million. The Americas are particularly driving this strength.

ANZ sales rose 14% to $80.8 million and Americas revenue increased by 62% to $77.2 million. ANZ was hurt by lockdowns, which closed stores. The Americas’ growth was attributed to re-engaging the significant Avenue customer base, with Avenue.com trading materially above pre-acquisition levels. The City Chic USA website is also performing strongly.

Global supply chain pressures continue, driven by freight capacity shortages and delivery delays coming out of key areas. But, to combat this, the company invested in additional inventory. This has supported sales.

The business continues to expand organically and with acquisitions. It recently acquired the customer lists, brand and URL of CoEdition – a USA plus-size online marketplace.

Ord Minnett rates it as a buy, with a price target of $6.30. It values the ASX growth share at 28x FY23’s estimated earnings.

Doctor Care Anywhere Group PLC (ASX: DOC)

The Doctor Care Anywhere share price has sunk 32% since the start of the 2022 year, despite the ongoing progress that the business is making.

It’s a business that enables patients to digitally connect with healthcare professionals.

Doctor Care Anywhere recently released its update for the final quarter of 2021, allowing it to announce some full-year numbers. Group revenue was $46.3 million, representing 115.7% growth year on year.

But it’s not just revenue increasing, profitability has gone up too. In the fourth quarter, the gross profit margin increased by 5.4 percentage points to 35.7%.

The growth trajectory continued throughout the fourth quarter of 2021, with revenue and consultations up 35.9% and 22.7% respectively. Approximately 50,500 new patients used the service during the quarter.

A new operating model was announced in December 2021, which is expected to deliver “significant improvements” in both the margin and profitability as it is rolled out during 2022. Patients will now get improved access to the right care, at the right time, for a larger number of people.

Instead of the only option being a 20-minute virtual consultation, patients will also be able to have a 20-minute virtual consultation with an advanced nurse practitioner or a quick consult where a patient completes a questionnaire to be reviewed by a prescribing clinician resulting in written advice or prescription without the need for a real-time video or phone consultation.

The post Are these 2 top ASX growth shares buys? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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 sheer incline in lithium prices over the past year has left many investors with their jaws unhinged and on the floor. Shockingly, many industry experts suspect these remarkable prices will continue into the future.

Fattening the pockets of anyone in the lithium game, the commodity price has increased about 525% in the last 12 months. This has led to ASX lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) exploding 181% and 291% in value, respectively.

However, the all-important question is: can it stay this way? Well, based on the perspectives of certain mining veterans and analysts, the answer is a resounding — yes.

Let’s take a closer look at the reasoning behind the hype.

Fundamentals are on the right side of lithium prices

When searching for credible insights, nearly 32 years of industry experience doesn’t go astray. That’s how well-accustomed former Fortescue Metals Group Limited (ASX: FMG) exec and mining veteran, Greg Lilleyman, is to the commodity game.

Having served as chief operating officer at Fortescue, Lilleyman has shared in the success of booming industries — such as iron ore — in his time. Although, after leaving the $60 billion iron ore behemoth, Lilleyman has been salivating over a commodity of a different kind.

Joining the board of Global Lithium Resources Ltd (ASX: GL1) as a non-executive director, Lilleyman is banking on lithium prices to benefit from decarbonisation tailwinds. Global Lithium is another ASX-listed lithium name that has enjoyed astonishing returns of late. For context, the company’s shares are up 435% in the past year.

Lilleyman expects the commodity commonly used in electric vehicle (EV) batteries will be a winner moving forward, stating:

Prices go up, prices go down. But I genuinely believe structurally the prices will remain solid in the spodumene and lithium space because the fundamentals say it should. There’s nothing speculative about it.

Importantly, the veteran draws attention to a shortage of mines producing high-quality lithium. In addition, Lilleyman expects supply to be harder to source and more expensive due to environmental reasons and increased taxes. These factors combined could push lithium prices even further to the upside.

Analysts on the same page

Lilleyman is not alone in his assessment of the burgeoning lithium industry. Recently analysts from Citigroup and UBS have both shared a positive sentiment for future lithium prices.

Firstly, Citigroup outlined its expectations for an extreme lithium deficit in 2022. Additionally, the lack of lithium projects in the pipeline has led the analysts to raise their long-term price forecast by 36%.

Referencing an expected 10.7 million EV’s to be sold in 2022, Citigroup analysts stated:

EV penetration is on an ‘S-curve’ and high lithium prices are here to stay.

Meanwhile, the team over at UBS is supportive of these forecasts. Adding that the investment bank believes climate-friendly government policy will squash internal combustion engine vehicle sales by 2040.

The post Are high lithium prices here to stay? Industry insiders say yes appeared first on The Motley Fool Australia.

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• Global Lithium (ASX:GL1) share price rockets 18% on ‘huge achievement’
• How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022?

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 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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It’s been solid past three weeks for the Bank of Queensland Limited (ASX: BOQ) share price, having climbed 9.3%.

It appears investors are unfazed by the current geopolitical turmoil between the West and Russia, as well the rising rate of inflation.

At market close on Friday, Bank of Queensland shares finished trading at $8.43, down 0.47%.

In contrast, the S&P/ASX 200 Index has lifted by 3.34% after falling to a 9-month low in late January.

While the regional bank hasn’t released any market-sensitive announcements since the end of 2021, we take a look at how its shares compare to the other big banks.

How does the Bank of Queensland share price stack up against the big banks?

Looking at the major banks’ share price performance against Bank of Queensland shares, and there is a clear picture of who’s winning the race.

Since 28 January, the Commonwealth Bank of Australia (ASX: CBA) share price has risen by 2.17%. This is based on the current price at market close on Friday of $97.75. Although CBA did break the $100 mark again on the back of their strong first-half results for FY22.

Moving onto the National Australia Bank Ltd. (ASX: NAB), the country’s second largest bank saw its shares jump 10.6%. Investor confidence in the bank surged on the release of the company’s positive first-quarter trading results.

Next up, the Westpac Banking Corp (ASX: WBC) share price accelerated an astonishing 14.06% over the last three weeks. The bank also released its first-quarter update earlier this month, with investors seemingly pleased with the results.

Lastly, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price gained 2.48%, the same as CBA shares above. The fourth largest bank by market capitalisation failed to impress the market on 7 February, when it released its first-quarter report.

As you can see, Westpac shares come out as the clear winner over the past 3 weeks. NAB has taken second place followed by a close run at third place by Bank of Queensland shares.

Are Bank of Queensland shares a buy?

A number of brokers weighed in on the Bank of Queensland share price last month.

The team of analysts at Macquarie cut its 12-month price target on the regional bank’s shares by 5% to $9.50. Based on the current price of $8.24, this implies an upside of around 13% for investors.

Following suit, Morgan Stanley also reduced its outlook on Bank of Queensland shares by 2.9% to $10, reflecting a potential upside of around 19%.

Lastly, the brokers from Citi raised their outlook on Bank of Queensland shares by 5% to $10.50. This indicates an attractive upside of roughly 25% from where it trades today.

Bank of Queensland commands a market capitalisation of about $5.42 billion, with approximately 642.63 million shares on its books.

The post The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks? appeared first on The Motley Fool Australia.

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• Morgans names 2 ASX 200 dividend shares to buy now
• This expert says the Westpac (ASX:WBC) share price has 25% upside
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• At today’s CBA (ASX:CBA) share price, how big will the FY22 dividend yield be?
• Why did the NAB (ASX:NAB) share price smash 4-year highs today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan’s software allows sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Morgan Stanley is positive on Bigtincan’s future. So much so, it has an overweight rating and $2.10 price target on its shares. The latter is more than double the current Bigtincan share price.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is this online sports betting company. Over the last couple of years, BlueBet has been growing its top line very strongly. This has been driven by the increasing popularity of mobile sports betting and its growing, but modest, market share. Management appears confident in can continue to grow its market share in Australia in the coming years and also has its eyes on the enormous US market.

The team at Morgans remains positive on BlueBet. The broker currently has an add rating and $1.60 price target on its shares. This is just less than double the current BlueBet share price of 84 cents.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Whispir estimates that it has a total addressable market of US$4.7 billion in just the United States market. So, with management guiding to annual recurring revenue (ARR) of $65 million to $70 million in FY 2022, it clearly has a very long growth runway.

Canaccord Genuity recently reiterated its buy rating and $3.50 price target on the company’s shares. This compares to the latest Whispir share price of $2.06.

The post 3 small cap ASX shares with enormous upside potential appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, BlueBet Holdings Ltd, and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs give investors access to a large number of different shares through just a single investment.

With that in mind, listed below are three ETFs that could be worth a closer look. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of an index comprising the 50 largest technology and online retail stocks in Asia (excluding Japan). These companies are among the fastest growing in the region and are busy revolutionising the lives of billions of people. Among the ETF’s holdings are Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for those that are interested in the cryptocurrencies industry rather than directly in coins. The fund manager notes that the ETF is designed to capture the full breadth of the crypto ecosystem, by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), those whose balance sheets are held at least 75% in crypto-assets, and diversified companies with crypto-focused business lines. Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Square/Block.

BetaShares Global Cybersecurity ETF (ASX: HACK)

A final ETF from BetaShares to look at is the BetaShares Global Cybersecurity ETF. It provides investors with exposure to the leaders in the global cybersecurity sector. The fund manager notes that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. This bodes well for the companies included in the ETF such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta.

The post 3 ETFs for ASX investors to watch in 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Looking at the Woolworths Group Ltd (ASX: WOW) share price right now, is it a buy or sell?

Woolworths shares have gone down 11.6% since the start of the year. Over the past six months it has fallen 18%. This has reversed the gains made in the second half of 2021.

In the last year, the Woolworths share price is slightly up, with a 1.6% gain.

What’s going on?

There was a steep sell-off of Woolworths shares on 14 December 2021 down to $37.45.

The supermarket business released a trading update about the first half of FY22.

It said that after the easing of lockdowns in New South Wales and Victoria during October, sales in ‘Australian food’ had moderated as customers return to more normal shopping habits. Total sales in the first half to the middle of December were up 3%.

But, it also said direct COVID costs in Australian food are expected to be approximately $150 million. On top of that, there has been indirect disruption to stores and distribution centres from operating in a COVID environment that has led to elevated operating costs of approximately $60 million to $70 million in the half.

Supply chain costs were also impacted by higher volumes, fuel price increases and the impact of balancing supply across distribution centres on the eastern seaboard.

E-commerce sales are still growing strongly. Online sales were up 50% in the half. While the profitability of e-commerce continues to improve, e-commerce sales are lower margin, which together with a decline in-store sales, has impacted overall profitability in the half.

Australian food FY22 first half earnings before interest and tax (EBIT) is expected to be between $1.19 billion to $1.22 billion (down from $1.31 billion last year).

Australian food may have the biggest influence on the Woolworths share price, but there are other divisions to keep track of.

Big W sales in the second quarter were stronger than the first. Second quarter sales were down 3.3% year on year, though first quarter sales were down 17.5%. Big W first half EBIT is expected to be $20 million to $30 million (down from $133 million).

New Zealand food sales growth was “strong” as it benefited from lockdowns and higher inflation.

The Woolworths share price also suffered during the broader share market correction in January 2022.

Is the Woolworths share price a buy or sell?

Opinions are mixed on the business.

Ord Minnett thinks that Woolworths shares are a buy, with a price target of $39.60.

However, Credit Suisse rates the business as a sell, with a price target of just $30.87. The broker thinks the growth outlook is slowing and is not confident that Woolworths’ profit margins won’t be affected by inflation. Inflation could also impact the retailer Big W.

Based on Credit Suisse FY22 estimates, the Woolworths share price is valued at 33x FY22’s estimated earnings with a grossed-up dividend yield of 3.1%.

Using Ord Minnett projections, Woolworths shares are valued at 30x FY22’s estimated earnings with a grossed-up dividend yield of 3.5%.

The post Is the Woolworths (ASX:WOW) share price a buy or sell right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Respected fund manager Wilson Asset Management (WAM) has recently identified two promising ASX shares that it owns in one of its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.

WAM says WAM Active invests in market mispricing opportunities in the Australian market.

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.2% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 2.8%.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Champion Iron Ltd (ASX: CIA)

This is a mining business which is headquartered in Canada.

Champion Iron is described as a premium iron ore miner exploring the Bloom Lake and Fire Lake projects in the Canadian province of Quebec.

Last month, Champion Iron announced in its third quarter update that its growth project ‘Phase II’ remains on track for an April completion.

The ASX share has announced its dividend of C$0.10 per share. It also continues to invest for growth as well.

Champion Iron has increased its leverage to higher iron ore prices. It’s progressing growth projects which are expected to double product output this year.

WAM is still bullish on the business and expects “considerable” free cash flow will be generated by the completion of the ‘Phase II’ project.

Life360 Inc (ASX: 360)

The fund manager describes Life360 as a business which provides a family safety platform that allows parents to track the whereabouts of their children. It has over 33 million users globally.

WAM said the initial catalyst for the investment was the appointment of Randi Zuckerberg, the sister of Meta (Facebook) founder, CEO and Chair Mark Zuckerberg.

In January 2022, Life360 provided an update for the quarter for the three months to December 2021. This showed the third consecutive quarter of record subscribers, which led to a 62% increase in revenue growth. It beat previous company guidance.

The fund manager also noted that the ASX share completed the acquisition of Bluetooth tracking device company Tile in January 2022. The holiday period trading was tracking to plan.

This environment of rising bond yields and the rotation out of higher growth shares has impacted some share prices, so WAM has “managed” the position size accordingly.

Life360 and its underlying business model are “strengthening” according to the fund manager, with the acquisition of Tile causing the company to emerge as a global leader in location tracking services. WAM says the outlook remains positive.

The investment team believe that a potential dual-listing in the US remains a key catalyst for the company.

The post 2 promising ASX shares this fund manager likes appeared first on The Motley Fool Australia.

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