After recently reporting its quarterly update, is the National Australia Bank Ltd (ASX: NAB) share price a buy for the projected grossed-up dividend yield of 7% in 2022?

NAB is one of the big four ASX banks along with Commonwealth Bank of Australia (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

Based on the dividend estimate on CommSec, the big four bank is expected to pay an annual dividend of $1.42 in FY22, which translates into the projected yield of 7%.

But there’s more to considering a business, even an ASX bank, than just the dividend. Other factors including the attractiveness of the valuation, the growth momentum and business plans should be taken into account.

Share prices are constantly moving, but investors get a real insight into a business when it releases a quarterly or half-yearly result.

NAB recently released its performance for the three months to 31 December 2021.

FY22 first quarter performance

The big four ASX bank said that it made $1.8 billion of statutory net profit, with $1.8 billion of cash earnings. Almost $2 billion of net profit in three months would be a significant number for most Aussie businesses. But how much growth did that represent?

NAB said that its cash earnings grew by 9.1% compared to the prior corresponding period. Before tax and credit impairment charges, the cash earnings rose 6%. Compared to the FY21 second half quarterly average, cash earnings rose 12%. Earnings growth can be a key driver of the NAB share price over time.

A key part of the profit growth was that revenue increased 8%, reflecting higher volumes across housing and business lending, increased fees and commissions and a recovery in markets & treasury income.

NAB’s net interest margin (NIM) declined by 5 basis points to 1.64%, which included competitive pressures and a negative impact from the housing lending mix.

One of the things that the bank was pleased to tell investors about was its net promoter score (NPS) – a measure of customer satisfaction – which continued to improve and was up to +1 in the latest quarter, ranking it first of the big four ASX banks. The business NPS was 0, ranking it second of the major banks.

NAB said that its credit impairment charge was a write-back of $35 million, reflecting the impact of higher house prices and improving asset quality across both housing and business lending with continued low specific charges. The ratio of loans being more than 90 days past due continued to decline.

Is the NAB share price a buy?

There is a mixture of views on NAB at the moment. Some brokers think it’s a buy, like Macquarie and UBS. However, others, like Morgans and Citi, currently have a ‘hold’ rating on the bank.

Citi thinks that the NAB performance is improving and it will be able to achieve stronger profitability in the coming periods, but the price target is just $30.50. Morgans is wary about the potential of a future penalty from AUSTRAC.

Macquarie thinks that NAB is growing its lending volumes nicely and winning market position. That’s why it has raised its price target to $32.50. The UBS price target is only $30.50, but noted that NAB did better than the broker was expecting in this quarter.

The post Is the NAB (ASX:NAB) share price a buy for the 7% dividend yield? appeared first on The Motley Fool Australia.

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• Brokers tip NAB (ASX:NAB) share price to storm to a new 52-week high
• 5 things to watch on the ASX 200 on Friday
• Why AMP, AVZ, Megaport, and NAB shares are pushing higher
• NAB (ASX:NAB) share price jumps after scintillating quarter
• Shareholders are happy with the NAB (ASX:NAB) earnings beat. But what do analysts say?

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.

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Many investors want massive returns without the rollercoaster ride along the way. Although, sometimes we succumb to the enticement of fast-moving shares — often on the more speculative side — in an attempt to outperform the S&P/ASX 200 Index (ASX: XJO).

For some people, volatility is part of the allure of investing in shares. For others, it’s a nightmare that keeps them up at night.

Fortunately, for the latter category of investors, there are a number of quiet-achieving companies, allowing shareholders to enjoy the best of both worlds.

Here’s a look at a handful of companies inside the ASX 200 that have demonstrated it is possible to make exceptional returns with less of the gut-wrenching, sleep-robbing, heart-throbbing volatility along the way.

More money and less stress inside the ASX 200

Medibank Private Ltd (ASX: MPL)

It may not be a rapidly growing tech company, but Medibank Private has managed to deliver solid returns for its shareholders over the years. Most notably, the past 12 months have seen the private health insurance provider exceed the returns from the broader index.

Investment	1-year return	3-year return	5-year return
Medibank Private (with dividends)	14.2%	26.6%	44.7%
ASX 200 (with dividends)	9.4%	31.7%	49.2%

Furthermore, Medibank Private shareholders have enjoyed relatively low volatility over the past year. The average weekly volatility during this time is 3.6%. Comparatively, the average movement of the broader market has been 8.8%.

Medibank Private currently offers a dividend yield of 3.98%.

APA Group (ASX: APA)

Another company avoiding nasty surprises for shareholders over the years is APA Group. The energy infrastructure operator has steadily grown its revenue and rewarded investors in the process. As shown below, this ASX 200 share has outperformed the index on a one-year and five-year comparison.

Investment	1-year return	3-year return	5-year return
APA Group (with dividends)	11.6%	25.7%	50.7%
ASX 200 (with dividends)	9.4%	31.7%	49.2%

Impressively, APA Group’s average weekly volatility is 3.1% over the last year — making it less than half as volatile as the broader market. As such, investors have likely had no trouble getting some shuteye while hanging onto the utility company.

APA Group is boasting a 5.2% dividend yield based on its current share price.

Orora Ltd (ASX: ORA)

Last, but not least, is a company that has provided solid returns without much fuss over the years. Packaging product and solutions specialist, Orora, is an ASX 200 company that has far surpassed the returns of the index in the last year while making little noise in doing so.

Investment	1-year return	3-year return	5-year return
Orora (with dividends)	30.1%	19.7%	37.9%
ASX 200 (with dividends)	9.4%	31.7%	49.2%

For those playing at home, Orora has provided the largest returns — from those on this list — in the last year. Additionally, the company is the least volatile, moving only 2.4% each week on average.

Based on the current share price, Orora is offering a dividend yield of 4%.

The post Sweet dreams: ASX 200 shares that have provided big returns without the worry appeared first on The Motley Fool Australia.

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• Could this give Medibank (ASX:MPL) shares a boost during earnings season?
• The APA (ASX:APA) dividend has grown every year for 18 years. What’s next?
• When might Medibank (ASX:MPL) shareholders ‘feel better’?
• How do Medibank (ASX:MPL) dividends compare to NIB?
• Dividend investors should put these 2 top ASX shares on the watchlist

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 owns and has recommended APA Group. 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 Temple & Webster Group Ltd (ASX: TPW) share price has dropped by 24% since the start of the year. It’s down 44% from the end of August 2021.

However, if investors didn’t look at the share price and just read the latest business result, they would see a business that continues to grow quickly.

Multiple brokers think that Temple & Webster shares are worth considerably more than they’re currently trading.

Taking into account the current Temple & Webster share price as well as the report it just released, brokers like Credit Suisse, UBS and Morgan Stanley all rate it as a buy with price targets that imply potential upsides of at least 40% over the next 12 months.

What’s to like about the e-commerce ASX share? Here are three reasons:

Fast sales growth

All of the brokers recognise that the retailer’s sales continue to grow year after year at a good double-digit pace.

In the first six months of FY22, revenue increased 46% year on year. It was up 218% compared to FY20. Revenue per active customer increased by 10%, which was the sixth consecutive quarter of growth. The trade and commercial division grew revenue by 49%.

Part of the strategy to grow revenue is to spend heavily on marketing to drive both sales and brand awareness. The brand awareness increased to 61%, with the marketing return on investment (ROI) holding above the company’s target levels.

Management noted that strong supply chain diversity (both drop-ship by suppliers and private label) has enabled a consistent trading performance through this COVID era.

Growth has continued into the second half of FY22. For the period of 1 January 2022 to 6 February 2022, revenue was up 26% year on year and showed a rise of 161% against FY20.

Growing revenue and scale can help in a number of ways including more money for re-investment, better unit economics and improving the consumer proposition. This could be key for helping the Temple & Webster share price over the long-term.

Management say that they are confident that the Temple & Webster strategy is resonating with the next generation of shopper and that it’s well placed to continue to take share in the markets it’s operating in.

Exposed to strong tailwinds

Temple & Webster says that its core business-to-consumer (B2C) furniture and homewares category is a market worth $16 billion, undergoing a structural shift towards online.

The company points out that the Australian percentage of online penetration of the furniture and homewares market increased from 5.1% in 2019 to between 7% to 9% in 2020. In the US, the online percentage of the category has reached around 25.3% (which rose from 15.2% in 2019). Temple & Webster is suggesting that in the medium-term, Australia is heading towards that level of adoption.

Less than 5% of the ‘home improvement’ market is online. The types of products in this category are tools and equipment, garden and landscaping, paint and supplies, window furnishings, flooring, plumbing fixtures and so on. Temple & Webster has expanded into this area recently.

The company wants to have the biggest and best range. Technology (like AI and 3D/augmented reality) and strong customer service are helping increase the conversion rate.

Good value

Analysts and brokers will often estimate what they think is a fair value for a business, or where they think the Temple & Webster share price will be in a year from now (called a price target).

As mentioned at the start of the article, a few brokers have significantly higher target prices.

UBS has a price target of $11.80. Credit Suisse has a price target of $13.54. Morgan Stanley has a price target of $14.

Morgan Stanley thinks that Temple & Webster can continue to benefit from the adoption of e-commerce and that in the next four or five years it can reach $1 billion of revenue.

The post 3 reasons why the Temple & Webster (ASX:TPW) share price is a buy after its plunge: experts appeared first on The Motley Fool Australia.

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• Brokers give their verdict on the Temple & Webster (ASX:TPW) share price
• Why AnteoTech, ASX, CIMIC, and Temple & Webster shares are dropping
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• Why Appen, Nanosonics, Nearmap, and Temple & Webster are sinking

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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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:

AMP Ltd (ASX: AMP)

According to a note out of UBS, its analysts have retained their sell rating and 90 cents price target on this financial services company’s shares. Although AMP delivered a full year result that was better than it was expecting, it isn’t enough for a more positive rating. This is due to concerns over the core AMP business and its doubts that the demerger of its private markets business will unlock value for investors. The AMP share price ended the week at $1.02.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $18.11 price target on this fund manager’s shares. This follows news that its Chief Investment Officer, Hamish Douglass, is taking indefinite medical leave. Morgan Stanley notes that this comes at a time of poor investment performance from its funds. Together with the prospects of lumpy outflows from institutional clients and margin pressures, the broker isn’t in a rush to change its rating. The Magellan share price was fetching $18.11 at the end of the week.

Mineral Resources Limited (ASX: MIN)

Analysts at Ord Minnett have retained their sell rating and cut their price target on this mining and mining services company’s shares to $45.00. According to the note, Mineral Resources’ half year result fell well short of broker’s expectations. Looking ahead, the broker warns that iron ore prices could weaken in the coming months and weigh on its performance. All in all, it continues to believe that the company’s shares are overvalued. The Mineral Resources share price ended the week at $53.20.

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

More reading

• These were the worst performing ASX 200 shares last week
• Why AGL, Magellan, Xero, and Zip shares are sinking
• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• Magellan (ASX:MFG) share price slides 6% as FUM bloodbath continues
• Top brokers name 3 ASX shares to sell 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 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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ASX travel shares may be on the rise this year, but it hasn’t been smooth sailing for all companies in the sector.

The Alliance Aviation Services Ltd (ASX: AQZ) share price is down nearly 9% since market close on 31 December. In the same time frame, Apollo Tourism & Leisure Ltd (ASX: ATL) also fell nearly 9% and Experience Co Ltd (ASX: EXP) descended nearly 3%.

In comparison Qantas Airways Limited (ASX: QAN) has soared nearly 8% since 31 December, Webjet Limited (ASX: WEB) has surged nearly 18% and Flight Centre Travel Group Ltd (ASX: FLT) has also climbed 18%.

Omicron variant woes

Alliance Aviation is a Queensland airline operating both domestic and international flights in the mining, government, tourism, corporate, and private sectors.

In its HY 1FY22 results released after the market closed on Wednesday, this ASX travel share reported COVID-19 had caused a “significant ongoing delay” to its wet lease deployment. Alliance Aviation reported an underlying profit before tax of $20.7 million, a $6 million decline. The Alliance Aviation share price fell by 5% the following day.

Commenting on the results, Alliance managing director Scott McMillan said:

It is well known that there have been numerous impacts on the national economy brought about by COVID-19 and various government responses. As a result, the company has suffered a delay on wet lease flying activity.

Alliance maintains a very confident outlook and is of the view that significant additional flying will commence in April this year.

Alliance will continue to invest in fleet, equipment, spare parts and personnel to ensure the company has the required capacity to satisfy its contracted wet lease routes and other future growth post COVID-19.

Apollo and Experience have not released any price-sensitive news to the market this year. However, COVID-19 Omicron travel disruptions appear to have impacted investor sentiment.

Apollo is an Australian tourism leisure company operating in New Zealand, North America, Germany, the UK, and Ireland. Meanwhile, Experience is an adventure tourism and leisure company offering fun activities including sky-diving, reef and rainforest tours and island day trips.

Could better days be ahead?

Despite the tough start to the year, Experience and Apollo have made major gains this week on the back of the international borders opening. The Experience Co share price has surged 6% since the market closed on 4 February, while Apollo has gained nearly 11%.

As Motley Fool Australia reported this week, Australia’s international borders will open to tourists on February 21 which could benefit ASX travel shares.

Forager Funds management analyst Alex Shevelev said tourism operators will now have more confidence to prepare for international arrivals. He added:

Companies like skydive and Great Barrier Reef tour operator Experience Co and recreational vehicle owners Tourism Holdings (NZE: THL) and Apollo have struggled through the COVID travel decimation for two years while working to improve their businesses.

When tourists return they will be well positioned to finally benefit.

While the recovery will be gradual, the industry will be hoping that the initial trickle of tourists will be followed by a torrent of arrivals. Importantly, many operators have lowered their cost bases and will be more profitable when arrivals approach pre-COVID levels.

ASX travel shares summary

The Alliance Aviation share price has slipped 14% over the past year while Apollo has skyrocketed 69%. Meanwhile, Experience has surged 82% in the last 52 weeks.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% over the past year.

The post Why are some ASX travel shares recovering slower than others? appeared first on The Motley Fool Australia.

More reading

• Morgans names 3 of the best ASX shares to buy today
• 2 ASX shares primed for Australia’s reopening: fund manager

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alliance Aviation Services Ltd. and EXPERNCECO FPO. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. and EXPERNCECO FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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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When I find myself in times of investing trouble, Warren Buffett often comes to me. Speaking his words of wisdom, he says, let your portfolio be…

Warren Buffett is an inspiration to many an investor. But his wisdom is often bandied around most in times of market turmoil. Due to his famous penchant for making his largest investments in times of market turmoil, Buffett is perhaps the most opportunistic famous investor out there.

Thus, it would be interesting to check out how Buffett, and his company Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), has fared over the past couple of months. We’ve recently covered how Buffett was the only top ten billionaire not to lose money over January. That fits rather nicely into his famous ‘two rules of investing’.

But a new report sheds another interesting light into the workings of Buffett’s share portfolio at Berkshire. According to the report in The Age newspaper, Berkshire’s best performing share over 2021 was none other than the US bank Wells Fargo & Co (NYSE: WFC). Wells Fargo gave its investors, Buffett included, a 2021 performance of 61%.

That was far better than Berkshire’s two largest holdings, Apple Inc (NASDAQ: AAPL) and another bank in Bank of America Corp (NYSE: BAC). However, unfortunately for Buffett, his bet didn’t pay out as much as it could have. According to the report, Wells Fargo was once Berkshire’s largest holding, and “routinely praised by the billionaire himself”.

Buffett’s Berkshire unloads a winner

However, a series of scandals reportedly led Buffett to whittle down Berkshire’s Wells Fargo position over the past few years. Berkshire reportedly only had 675,000 Wells Fargo shares as of 30 September, which was well below the 2019 peak of 323 million shares. As such, we can conclude that Buffett and Berkshire have had something of a missed opportunity with their Wells Fargo holdings.

According to The Age Article, Buffett, who has a famously high bar when it comes to a business’ integrity, wasn’t too impressed with the selection of Wall Street insider Charlie Scharf as CEO in 2019 after Buffett advised to pick someone outside of Wall Street. Charlie Munger, Buffett’s right-hand man at Berkshire, apparently criticised Scharf for planning to run the San Francisco-based bank from New York.

But that all seems a little immaterial now that Buffett has missed out on some potentially massive gains from Berkshire’s Wells Fargo position.

It just goes to show that even the best investors can miss out sometimes. But what is perhaps more important is how Buffett sticks to his investing principles. Even in the face of losing some face. It’s not all bad though. Bank of America shares, while not quite at the same performance level as Wells Fargo, still gave investors a near-50% return over 2021. Apple shares rose almost 34%. It certainly could be worse for Berkshire, and Buffett!

The post Can ASX investors learn from how Warren Buffett is responding to the market downturn? appeared first on The Motley Fool Australia.

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• Warren Buffett actually made money in January. Here’s how
• Why Scott Phillips says he will never sell this international share

Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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 Apple and Berkshire Hathaway (B shares). 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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There are plenty of ASX dividend shares that everyone knows. But there are also some ideas that may be underrated for income potential.

Names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are two of the biggest dividend payers in the country.

But these two are also expected to pay sizeable dividends in FY22 and beyond:

JB Hi-Fi Limited (ASX: JBH)

This company is one of the largest retailers in Australia with its networks of JB Hi-Fi stores and The Good Guys stores. It sells a wide range of products like computers, smartphones appliances and so on. Whilst this is often seen as discretionary spending, they are widely accepted as essential items to living in 2022.

The ASX dividend share is expected by the broker Credit Suisse to pay a grossed-up dividend yield of 7.4% in FY22.

JB Hi-Fi’s second quarter of FY22 showed sales growth of 1.2% for JB Hi-Fi Australia and 2.8% growth for The Good Guys. The company is expecting to report net profit after tax (NPAT) of $287.9 million – that would be a year-on-year decline of 9.4%, but up 68.8% over two years.

The company points to five unique competitive advantages – scale, a low-cost operating model, quality store locations, supplier partnerships and multichannel capability (which includes booming online sales).

Credit Suisse thinks the JB Hi-Fi share price is valued at 13x FY22’s estimated earnings.

Metcash Limited (ASX: MTS)

Metcash is one of the largest suppliers to independent supermarkets and liquor stores. Some of the liquor retailers it supplies includes Cellarbrations, The Bottle-O, IGA Liquor, Duncans, Thirsty Camel, Big Bargain and Porters. The supermarkets it supplies include the IGA and Foodland brands.

The ASX dividend share also has a few hardware businesses, including Mitre 10, Home Timber & Hardware and Total Tools. This hardware division is the segment that’s driving profit. The FY22 half-year result saw group earnings before interest and tax (EBIT) rise by 13.9% to $231.2 million. But the hardware EBIT jumped 53.3% to $98.9 million.

Metcash is working on a number of things to grow its profitability including improving its efficiencies, investing in distribution centres and advancing its digital sales. In HY22 it made around $60 million of online sales, up 46% year on year.

In terms of the dividend, the board has committed to a target dividend payout ratio of around 70% of underlying profit after tax. Metcash says that it has a strong focus on shareholder returns. The interim dividend was grown by 31% to 10.5 cents per share.

It’s currently rated as a buy by Credit Suisse, with a price target of $4.55. On the FY22 numbers projected by the broker, Credit Suisse reckons the Metcash share price is valued at 14x FY22’s estimated earnings with a grossed-up dividend yield of 6.9%.

The post 2 strong ASX dividend shares hiding in plain sight appeared first on The Motley Fool Australia.

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• ASX retail shares have slumped in 2022. Could there be more pain to come?
• 2 ASX shares to guide you through a torrid 2022
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• Have your cake and eat it: These ASX shares have been paying regular dividends whilst growing their share prices
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?

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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If you’re a Westpac Banking Corp (ASX: WBC) shareholder, you may be planning to take part in its enormous $3.5 billion off-market share buyback.

The good news is that the banking giant has now released the market price for the share buyback.

Westpac share buyback price settled

According to the release, the market price for the Westpac share buyback is $22.2387.

The release explains that the market price was determined by the volume-weighted average price (VWAP) of its shares over the five trading days up to and including Friday, 11 February 2022.

However, it is worth noting that the market price is not necessarily the price that it will be buying back shares. Depending on demand, Westpac will be buying back its shares at either no discount or at a discount as great as 10%. The latter would equate to a buyback price of $20.01. This compares to the current Westpac share price of $22.78.

But don’t worry if the buyback price is lower than the current Westpac share price. That’s because, for Australian tax purposes, the buyback is expected to comprise a capital component of $11.34 per share, with the remainder deemed to be a fully franked dividend. This means that even with a 10% discount, shareholders should still be getting a better deal than if they sold them on-market.

Why is Westpac returning funds in this way?

Westpac has previously explained why it chose to return $3.5 billion to shareholders via an off-market buyback instead of other options.

It explained: “Westpac evaluated several options for returning capital to Shareholders. We believe that this Buy-Back will benefit all Westpac Shareholders. An off-market buy-back is considered an effective method to return capital and franking credits and optimise our capital structure at this time. It enables a higher number of Shares to be bought back in a shorter timeframe and it reduces our Share count faster than an on-market buy-back of Shares. In turn, a lower capital base and Share count supports Westpac’s future Return on Equity, Earnings per Share and Dividend per Share, all things being equal.”

Westpac expects to reveal the final price of the buyback on Monday. After which, payments to shareholders for the shares bought back will commence on 18 February 2022.

The post What Westpac (ASX:WBC) shareholders need to know about its $3.5bn buyback appeared first on The Motley Fool Australia.

More reading

• Why IAG, Rio Tinto, Unibail, and Westpac shares are pushing higher
• 2 buy-rated ASX dividend shares with 4%+ yields
• Will Westpac (ASX:WBC) shares give ASX 200 investors a dividend raise in 2022?
• Rising tide? Here’s why ASX 200 bank shares are having such a good run today
• ‘Future-ready’: Westpac (ASX:WBC) share price lifts following Microsoft partnership

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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.

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Some of the most attractive ASX shares on the stock exchange could be ones that have lower valuations. Value investors could love the two cheap ASX shares in this article.

Businesses with low price/earnings ratios (P/E ratios) don’t have much long-term growth expectation built into them. They can also offer above-average dividend yields, depending on the dividend payout ratio.

With that in mind, here are two cheap ASX share ideas:

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an ASX retail share that sells male and female personal grooming products and wants to be the market leader in all things related to hair removal. There are currently more than 120 stores around Australia and New Zealand. It also sells other retail products relating to oral care, hair care, massage, air treatment and beauty categories.

Despite all of the lockdowns in the first half of FY22, the company managed to achieve impressive online sales growth to make up for it. In FY22 to 7 November 2021, total sales only fell 0.9% with total online sales jumping 58.6% year on year. It was a 329.4% improvement against FY20. In FY21, it fulfilled 2.4 million customer transactions.

The company has a number of different growth plans including growing the number of returning customers, growing its brand awareness, expanding into new categories, opening new stores and driving operational efficiency. The company is proud of its customer satisfaction, with a net promoter score (NPS) of 89.1 out of 100.

The cheap ASX share is currently rated as a buy by Ord Minnett, with a price target of $1.25. On the broker’s projected FY22 numbers, the Shaver Shop share price is valued at 9x FY22’s estimated earnings with a grossed-up dividend yield of 10%.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts business that is the leading player in the sector, with a number of different brands like Autobarn, Burson, Truckline and Midas.

The business just reported its FY22 half-year result which showed “solid financial performance” including continued revenue growth despite all of the impacts of the lockdowns during the period. The opening up of Melbourne and Sydney led to the second quarter revenue increasing materially compared to the first quarter of FY22.

In summary, Bapcor reported that HY22 revenue grew by 1.9% to $900.1 million and net profit after tax (NPAT) rose 14.7% to $57.7 million. The interim dividend was grown by 11.1% to 10 cents per share.

It has plans to grow in a number of areas. One tactic is to grow its store networks across Australia and New Zealand. It’s planning to become more efficient with its distribution centres. Bapcor wants to expand in Asia with both Tye Soon and building its own Burson network in Asia.

The cheap ASX share also wants to ‘realise’ operational efficiencies and expand its own brand product range (which has a higher gross profit margin).

Ord Minnett rates the company as a buy, with a price target of $8.60. Ord Minnett is expecting the auto parts business to be able to achieve stronger margins and good growth in Asia over time.

On the broker’s numbers for FY22, the Bapcor share price is valued at 18x FY22’s estimated earnings with a grossed-up dividend yield of 4.4%.

The post 2 cheap ASX shares value investors shouldn’t miss appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Bapcor, Mineral Resources, Nanosonics, and Syrah shares are falling today
• Down but not out: Bapcor (ASX:BAP) share price slumps on sluggish first half
• Are these 2 industry-leading ASX shares too good to ignore and now buys?
• 2 ASX shares with growing fully franked dividends

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 Bapcor. 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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There are a growing number of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

Three that could be worth getting better acquainted with next week are listed below. Here’s what you need to know about them:

BetaShares Cloud Computing ETF (ASX: CLDD)

With the world rapidly moving to the cloud, companies with exposure to cloud computing look well-placed for growth over the next decade. This could make the BetaShares Cloud Computing ETF worth a look. This ETF aims to track the performance of the Indxx Global Cloud Computing Index, which includes leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you’ll be buying a slice of companies such as Dropbox, Netflix, Shopify, and Zoom.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF could be worth looking at if you’re interested in the high risk world of cryptocurrencies. The fund manager notes that the ETF allows investors to access the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto-markets. Among its holdings you’ll find Coinbase, Silvergate, and Riot Blockchain.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at next week is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with easy access to the world’s largest listed companies. Vanguard notes that this allows investors to take part in the long term growth potential of international economies. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 3 exciting ETFs for ASX investors next week appeared first on The Motley Fool Australia.

More reading

• Why Vanguard MSCI Index International Shares and this ETF could give your portfolio a boost
• 2 market-beating ETFs for ASX investors in January
• Shopping for some new ASX ETFs in 2022? Here’s what you need to know
• Is the Vanguard MSCI Index International Shares ETF (ASX:VGS) the most diversified ETF on the market?

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 Betashares Crypto Innovators ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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.

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