The BlueBet Holdings Ltd (ASX: BBT) share price is under significant pressure on Monday morning.

At the time of writing, the mobile sports betting company’s shares are down 14.5% to $2.11.

Why is the BlueBet share price falling?

Investors have been selling down the BlueBet share price after the company was dealt another blow with its US expansion plans.

According to the release, on advice from the regulator, Virginia Lottery, BlueBet has withdrawn its application for a Sports Betting Permit in the US State of Virginia. All application fees will be refunded.

The release advises that this decision follows an exhaustive licence application process comprising 18 applications for only five available permits.

One positive is that the Virginia Lottery has formally notified BlueBet that it was not deemed ineligible for a permit. As a result, the withdrawal of BlueBet’s application at this stage will not prevent it from applying again in the future.

Management advised that during the application process the BlueBet Board received advice from the regulator that licenses would, at this stage, be granted to operators which had experience in other states and have equity interest owned by minority individuals or minority-owned businesses.

This is the second time in the space of a week that BlueBet has missed out on a licence. Last week it revealed that it wasn’t selected for one of the ten licences being made available in the state of Arizona.

What now?

This isn’t the end of the road for BlueBet in the US by any means. As part of its two stage US entry strategy, BlueBet identified up to five priority states for licences.

Following its recent success in Iowa, the Board’s current targets remain Colorado, Tennessee and Maryland.

It also notes that there are ten states where sports betting is legal but not yet operational and these are all being reviewed and assessed against BlueBet’s entry criteria.

Furthermore, it highlights that industry commentators see up to 40 states legalising sports betting by 2023. This compares to the current 21 states where it is live and operational.

In light of this, BlueBet sees considerable scope to complement its licence in Iowa.

The post BlueBet (ASX:BBT) share price drops 14% on US blow appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares to watch
• Why AMA, Bellevue Gold, Bendigo Bank, & BlueBet shares are falling
• Why BlueBet, Dicker Data, Immutep, & Sandfire are charging higher
• BlueBet (ASX:BBT) share price jumps on EBITDA boost
• Why Altium, BlueBet, Healius, & HUB24 shares are tumbling lower

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 BlueBet Holdings 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/2WW1EKk

The Webjet Limited (ASX: WEB) share price has been on the move during 2021, reaching near 52-week highs last week. This comes despite the online travel agent facing severe trading disruptions caused by COVID-19.

Nonetheless, investors appear to have mixed feelings about the value of Webjet shares in the current climate.

At Friday’s market close, Webjet shares finished up 3.66% to $5.95.

How do you value Webjet shares?

The most common way to value an ASX share is to calculate the company’s price-to-earnings (P/E) ratio. Traditionally, this metric is used to provide more clarity if a company is overvalued or undervalued.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

Currently, Webjet has a negative P/E ratio of 4.66. The formula to work out the P/E ratio is the current share price divided by EPS.

Essentially, this means that the company is losing money and is not making any profit over the last 12 months.

Government-mandated lockdowns and restrictions on international and domestic travel have significantly weighed on the company’s revenue streams. As such, Webjet continues to operate in hibernation to preserve cash and ensure its survival post-pandemic.

Fortunately, Webjet still has substantial cash reserves to survive the ongoing crisis that has put the travel industry in a tailspin.

In its FY21 results released on 19 May, the company had a strong capital position at hand. Pro forma cash stood at $431 million, with an average cash burn rate of around $5.5 million per month. This allows the company to weather the unpredictable nature of COVID-19 for the next 6.5 years without raising additional capital.

However, a trading update released last Tuesday revealed that Webjet will become cash-flow positive for the first half of FY22. This excludes investing and debt repayments.

In addition, the company highlighted that its WebBeds business has been profitable since July 2021. A positive sign that recovery is not far off, particularly given Australia’s accelerated vaccination program.

Of course, macroeconomics will always play a part in the company’s share price. With Webjet shares down 40% from pre-pandemic levels, you could argue the company still has some runway left.

All eyes will be on Webjet’s H1 FY22 results, which will be released on 25 November 2021.

Webjet share price snapshot

Over the last 12 months, Webjet shares have accelerated almost 60% since hitting near COVID-19 lows.

Currently, the company’s share price is around the upper end of its 52-week range of $3.44 to $6.33.

Based on valuation grounds, Webjet has a market capitalisation of around $2.25 billion, with approximately 379 million shares on issue.

The post How do you value the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

More reading

• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• The Webjet (ASX:WEB) share price is up 5% in the last week
• Here’s why the Webjet (ASX:WEB) share price is up 14% in a month
• Top brokers name 3 ASX shares to buy today
• ASX 200 rises, Harvey Norman falls, Mesoblast sinks

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 owns shares of and has recommended Webjet 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/3tjwYyP

The Redbubble Ltd (ASX: RBL) share price rebounded strongly off 1-year lows following the company’s FY21 full-year results announcement on 19 August.

Shares in the e-commerce marketplace closed at a 5-month high of $4.24 last Friday but are still down about 23% year-to-date.

Redbubble’s year-to-date performance reflects the company’s mixed performance overall.

At face value, its FY21 results highlight a rapidly growing company with a 58% increase in marketplace revenue to $533 million and 930% jump in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $53 million. This translated to a massive swing in net profit from a loss of $9 million in FY20 to a profit of $31 million.

However, its fast growth comes at a cost.

Back in April, Redbubble said its short-term EBITDA as a percentage of marketplace revenue is expected to be in the mid-single digit range as the company executes on targeted investments at the gross margin, marketing and operational expenditure lines.

The Redbubble share price sold off sharply in the wake of its weaker near-term margins, sliding 23% to $4.24 on the day of the update.

In an article featured on Livewire, Chris Stott from 1851 Capital and James Gerrish from Market Matters take a closer look as to whether the Redbubble share price is a buy, hold or sell.

What do experts think about the Redbubble share price?

Gerrish looks past the company’s volatile performance in FY21 and rates it as a buy.

“The marketplace seems to be working. So it’s working because it’s getting more customers on it and that’s attracting more merchants, which gives more variety and that’s leading to more multiple purchases.”

“So after a tough ’21, I think ’22 looks better. So it’s a buy,” he said.

The Redbubble share price has, in fact, started FY22 on a more positive note, up 17.45%.

Stott on the other hand flags the company’s expensive price tag and rising expenses.

“79 times PE is too expensive for us. We think there’s better value elsewhere.”

They missed their earnings more recently and the guidance underwhelmed to an extent, being a re-investment year on the cost side of things. So it’s a sell for us,” he said.

The post What experts are saying about the Redbubble (ASX:RBL) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 down, Flight Centre rises, Redbubble falls
• Why BHP, NIB, Northern Star, & Redbubble shares are tumbling lower
• Why the Redbubble (ASX:RBL) share price fell 8% today
• 2 ASX tech shares that could be buys in September 2021
• These are the 10 most shorted ASX shares

Motley Fool contributor Kerry Sun 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/2Vh0SqD

ASX shares in the uranium sector surged to multi-year highs last week thanks to a jump in spot prices.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) surged 56% last week to an 8-year high of 78 cents.

Explorers were also quick to re-rate, with players such as Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and Vimy Resources Ltd (ASX: VMY) surging between 32% and 45%.

The best performing uranium stock last week goes to 92 Energy Ltd (ASX: 92E), surging 104% to 51 cents. The uranium explorer successfully listed on the ASX on 15 April at a listing price of just 20 cents.

What’s driving ASX shares in the uranium sector?

The Motley Fool US reported that the Sprott Physical Uranium Trust (SPUT) Exchange Traded Fund began aggressively buying uranium from the spot market.

Sprott is the world’s largest actively managed uranium fund that invests in physical uranium.

The fund’s updates show that it bought a significant 900,000 pounds of uranium on 21 August and another 1.1 million pounds by the end of August.

The aggressive buying activity would continue through to September, with the ETF adding another 400,000 pounds on 2 September.

The immense buying on the spot market helped drive uranium prices to a six-year high of $35/lb.

The resurgence of spot prices initiated a frenzy of buying activity for ASX shares in the uranium sector last week.

In addition, The Motley Fool US highlighted another encouraging signal from the industry:

“… the world’s largest uranium producer, Kazatomprom, announced its decision to keep production flat in 2022 and 2023, and meanwhile buy uranium from the spot market to meet its sales commitments through this year at least.”

“Limited production and higher buying activity in the spot market, whether by an ETF or uranium miners to meet their contracted sales, is a near-perfect recipe to drive uranium prices higher.”

The post Guess which sector last week’s top performing ASX shares come from appeared first on The Motley Fool Australia.

More reading

• ASX uranium shares are booming this week. Here’s why.
• Up 50% this week, the Paladin Energy (ASX:PDN) share price is booming. Here’s why.
• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here’s why
• Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again

Motley Fool contributor Kerry Sun 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/3zQB3Nb

The Pilbara Minerals Ltd (ASX: PLS) share price raced to record highs last month due to continued interest in the lithium sector.

Similarly, shares in the company’s peers Orocobre Ltd (ASX: ORE) and Core Lithium Ltd (ASX: CXO) have also been on fire.

Pilbara Minerals shares are up 160% for 2021. In comparison, both the Orocobre and Core Lithium share prices are up around 120% and 140%, respectively. When pitted against the All Ordinaires Index (ASX: XAO), the index has risen a paltry 14% over the same period.

However, all three companies’ share prices have dropped off slightly this month due to some profit-taking. That’s not to say that these share price gains couldn’t extend further in the coming months.

What’s driving Pilbara shares forward?

There are a number of reasons why the Pilbara share price has accelerated in recent times.

First and foremost, the spot price for lithium has surged over the past year. The battery making ingredient is expected to be adopted across a number of industries, notably the transitioning to electric vehicles.

Furthermore, Pilbara Minerals released its full-year results late August, highlighting a significant increase in shipments of spodumene concentrate. This was underpinned by improved market conditions and robust operational performance at its Pilgangoora Lithium-Tantalum Operations in Western Australia.

A number of brokers weighed in on the company’s share price following its FY21 scorecard.

Analysts at Macquarie reduced their rating on Pilbara Minerals by 4% to $2.40. JPMorgan also cut its outlook by 4% to $2.40.

The latest broker note came from Citi, which raised its valuation on Pilbara Minerals shares by 6.9% to $2.20.

Pilbara Minerals share price snapshot

It’s been a great 12 months for Pilbara Minerals shareholders, with the share price posting an all-time high of $2.46 on 11 August 2021. Long-term investors would also be reaping some serious benefits, with shares up around 1,300% since March 2020.

The Pilbara Minerals share price added another 2.26% last Friday to its last closing price of $2.26.

On valuation grounds, Pilbara Minerals commands a market capitalisation of roughly $6.6 billion, with almost 3 billion shares on hand.

The post How is the Pilbara Minerals (ASX:PLS) share price performing against its sector? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares this Friday
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• The Pilbara Minerals (ASX:PLS) share price is up 5% on Friday
• Here’s why the Pilbara Minerals (ASX:PLS) share price is up 25% in a month
• ASX 200 miners dominate most traded shares on Monday

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.

from The Motley Fool Australia https://ift.tt/3kVVp1d

The Woolworths Group Ltd (ASX: WOW) share price is in the spotlight this morning after the company released its latest sustainability report.

The report focuses on steps made by Woolworths to increase inclusivity for its staff, provide healthy, ethically sourced food options, lessen its carbon emissions, and create sustainable financial growth.

The Woolworths share price closed Friday’s session slightly higher at $40.72.

Let’s take a closer look at the supermarket giant’s 2021 sustainability report.

Sustainability report

The Woolworths share price will be on the radar this morning after the company outlined its goals and progress towards sustainability.

Within its first annual sustainability report since launching Sustainability Plan 2025 in November 2020, Woolworths announced its carbon emissions are currently 27% less than its 2015 baseline.

Additionally, the company reduced its plastic usage by more than 2,500 tonnes and diverted 113,238 tonnes of organic waste from landfill in the 2021 financial year (FY21).

Woolworths also began rolling out LED lighting across its store network. The LEDs will eventually see the company reduce its total store energy consumption by 11%. It has also placed solar panels atop 197 of its stores, which now generate 44GWh of electricity each year.

Woolworths also signed its first renewable power agreement in FY21. The Woolworths share price gained 0.99% on the back of the deal.

Woolworths is continuing to invest in its employees’ ‘holistic health’.

The company partnered with First Nations cultural awareness experts, Evolve Communities, to launch ‘Learning for Reconciliation’ in FY21. Learning for Reconciliation is an online module designed to provide the steps to practical reconciliation for Woolworths employees.

It is also working to create ethical and mutually beneficial partnerships through its entire value chain. The company is planning to scale up its human rights diligence across its value chain.

Finally, Woolworths still has work to do to create a gender-equal leadership team. Generally, a gender-equal team is defined as one that includes 40% women, 40% men, and 10% of leeway. Woolworths’ leadership team was 36.54% female in FY21.

The company is also lagging in achieving some of its own goals. These include practising responsible stewardship of natural resources, improving sourcing of ethical protein, and creating meaningful retail careers.

What did management say?

Woolworths CEO Brad Banducci and chair Gordon Cairns issued a joint statement within the company’s 2021 sustainability report.

We are no longer satisfied with limiting the negative impacts of our operations – we are actively looking to create positive change in our business and, hand in hand with our partners, in our extended value chain. We see sustainability as an opportunity to create long‑term value through innovation and resilience building measures that will deliver benefits for decades to come…

As we move toward our 100th anniversary, we are building the business that will take us into our second century, and as Today’s Fresh Food People, sustainability is at the heart of who we are.

Woolworths share price snapshot

The Woolworths share price is currently 20% higher than it was at the start of 2021. It has also gained 28% since this time last year.

The post Here’s why the Woolworths (ASX:WOW) share price is in focus today appeared first on The Motley Fool Australia.

More reading

• The Woolworths (ASX:WOW) share price has gained 17% in the last 6 months
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 company bosses lobby for reopening plan
• Woolworths (ASX:WOW) share price history: What caused the biggest ups and downs?
• ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX

Motley Fool contributor Brooke Cooper 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/3thYHQ9

The Wesfarmers Ltd (ASX: WES) share price will be one to watch when trading resumes this Monday. That’s after the retail conglomerate reopened its Bunnings and Officeworks stores in some parts of Sydney.

At the close of trade on Friday, shares in the company were trading for $57.78 – down 0.07%. The S&P/ASX 200 Index (ASX: XJO) meanwhile ended the day 0.5% higher.

Let’s take a closer look at today’s news.

Bunnings, Officeworks to reopen in parts of Sydney

From today, Wesfarmers hardware and office supplies stores that are not located in the 12 local government areas (LGAs) of concern, as defined by the New South Wales government, will reopen in line with COVID-19 regulations.  These hotspot LGAs are predominately located in Sydney’s western, southwestern, and southern suburbs.

Wesfarmers highlighted the growing number of NSW residents who have received either one or two doses of the Pfizer or AstraZeneca jab. At the time of writing, 73.5% of the state’s eligible population has received at least one dose. Nearly 41% are fully inoculated.

“Since the start of the pandemic, the safety of our team and customers has been at the core of everything we do and we continue to follow government guidance in all the states and territories where we operate,” said Mike Schneider, Bunnings managing director.

“The acceleration of the vaccine rollout and the increase in opportunities for our team to get vaccinated has given us the confidence to reopen our stores in Greater Sydney, with strong COVID-safe protocols in place, including a one per 10 metre density limit applied.”

It will be interesting to see what this will mean for the Wesfarmers share price.

Stores within hotspot LGAs will still be open for contactless click and collect only, as well as trade customers in the case of Bunnings. Wesfarmers will keep Target and Kmart stores closed across Greater Sydney, in line with government regulations.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 25.6%. That’s only slightly below the ASX 200 Index’s performance over that time. Year to date, Wesfarmers shares have appreciated 12.2%. This is roughly in line with the 200 largest companies on the ASX.

Wesfarmers has a market capitalisation of approximately $66 billion.

The post Wesfarmers (ASX:WES) share price in focus as Bunnings and Officeworks reopen Sydney stores appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• Why the Wesfarmers (ASX:WES) share price is down 9% in the last week
• These ASX 200 dividend shares increased their payouts this earnings season
• ASX 200 company bosses lobby for reopening plan

Motley Fool contributor Marc Sidarous 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 shares of and has recommended Wesfarmers 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/3yL4xuI

If you’re wanting to add some ASX 200 dividend shares to your portfolio, then the two listed below could be ones to consider.

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

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be an ASX 200 dividend share to consider. This is due to its improving outlook, which is being underpinned by rational competition, the easing NBN headwind, and cost cutting.

In fact, Telstra’s outlook is improving so much that management is forecasting a long-awaited return to growth in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9% and appears confident that it can deliver a further increase in FY 2023.

Analysts at Goldman Sachs are positive on the company. They have a buy rating and $4.30 price target on its shares.

In addition, the broker is forecasting fully franked dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024. Based on the current Telstra share price of $3.85, this will mean yields of 4.2% through to FY 2023 and then 4.7% in FY 2024.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share to consider is Westpac. As with Telstra, Australia’s oldest bank has seen a major improvement in its outlook this year.

This is thanks to Australia’s strong economic recovery from the pandemic, a booming housing market, and its bold cost reduction plans.

It is largely for the latter that the team at Citi are bullish on the bank. They recently put a buy rating and $30.00 price target on the bank’s shares.

In addition, the broker has pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $26.02, this will mean fully franked yields of 4.5% and 5%, respectively.

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

More reading

• Top brokers says Westpac (ASX:WBC) share price is a buy
• The Telstra (ASX:TLS) share price is now trading on a forecast 4.2% fully franked dividend yield
• Two exciting international shares to consider as superfunds hit record global investments
• Brokers name 3 ASX shares to buy today
• What is the outlook for the Westpac (ASX:WBC) share price?

Motley Fool contributor James Mickleboro owns shares of 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 owns shares of 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/3DQXXX1

The Mineral Resources Limited (ASX: MIN) share price will be on watch today.

This follows the release of an announcement relating to an asset sale this morning.

Why is the Mineral Resources share price on watch?

The Mineral Resources share price will be on watch today after it decided to take profit on a very successful investment.

According to an announcement, the company has decided to exit its shareholding in high-flying lithium miner Pilbara Minerals Ltd (ASX: PLS). The mining and mining services company held a 5.4% stake prior to its sale.

The release explains that Mineral Resources has raised gross pre-tax proceeds of approximately $328 million from the sale. It notes that the sale was executed via a fully underwritten accelerated block trade offered to institutional investors.

This has been a highly successful investment for the company. For example, in just the last 12 months alone, the Pilbara Minerals share price is up 600%.

What now?

Management advised that the company intends to use the cash proceeds from the sale on its capital expenditure program.

When the market opens, the Mineral Resources share price performance will be a good indication of whether investors believe this is a good use of the cash or whether they feel the company should have held onto the Pilbara Minerals stake.

Management believes it is the former. It commented: “MRL is delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora but believes it is time to redirect this investment into the Company’s own growth projects, including in the hard-rock lithium and iron ore sectors.”

Mineral Resources became a substantial shareholder in Pilbara Minerals back in October 2016. This was as part of an agreement to relinquish offtake rights and a royalty that the company held over Pilbara Minerals’ Pilgangoora project.

The Mineral Resources share price is up 42% since the start of the year.

The post Mineral Resources (ASX:MIN) share price on watch after selling Pilbara Minerals stake appeared first on The Motley Fool Australia.

More reading

• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• Why the Mineral Resources (ASX:MIN) share price is lifting today
• How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector?
• Which shares on the ASX 300 are on the move 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.

from The Motley Fool Australia https://ift.tt/2WWB7fF

ASX dividend shares that are rated as buys that also have good projected income yields could be good ones to think about.

Some businesses are expected to pay attractive dividends over the next 12 months.

These two ASX dividend shares could be good options for the long-term:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine Entertainment is the first of the two businesses.

It’s a diversified media business that operates things like the Nine TV network, Stan, the Australian Financial Review, The Age and the Sydney Morning Herald.

One of the brokers that currently rates Nine as a buy is Credit Suisse, with a price target of $3.40. That suggests the Nine share price could rise by around 20% over the next 12 months.

The broker projects that Nine will pay a grossed-up dividend yield of 5.6% in FY22.

FY21 saw advertising market growth, “strong” audience results across all of its operating segments, growth in revenue and profitability for its ‘TV combined’, the launch of Stan Sport and “strong” cashflows. It also completed agreements with digital platforms like Facebook, providing recurring revenue for publishing.

In financial terms, total revenue increased 8% to $2.33 billion and net profit rose 83% to $261 million.

In July 2021, it saw free to air ad revenue grow by 20% with costs rising 3%, 9Now revenue was up 70%, Stan subscribers are growing and publishing digital subscription revenue was up 9%.

Nine has committed to pay a dividend payout ratio of 60% to 80% of net profit after tax, before ‘specific items’.

Bapcor Ltd (ASX: BAP)

Bapcor is a leading auto parts business across Australia, New Zealand and, increasingly, south east Asia after the Tye Soon investment and Thailand expansion.

It was one of the few S&P/ASX 200 Index (ASX: XJO) shares to grow its dividend during FY20, even if it was just a small increase.

Bapcor is seen as a defensive business – car owners and mechanics will always need new parts when the demand arises.

Burson is a key brand within the portfolio. It has been steadily growing its store network, same store sales and profit margins. Autobarn has also seen growth.

The ASX dividend share is currently rated as a buy by a few different brokers including Credit Suisse. The broker has a price target of $9.20 on the business, which suggests the Bapcor share price could rise by more than 20% over the next year.

Credit Suisse thinks that Bapcor is going to pay a grossed-up dividend yield of 4.4% in FY22.

That projection comes after the business paid a dividend of 20 cents per share in FY21 (a 14.3% increase on FY20). This was funded by a 26.8% increase of earnings per share (EPS) to 38.3 cents (and a 46.5% increase of net profit after tax to $130 million).

Bapcor said its performance was driven by increased market share, elevated market demand, ongoing network expansion, a launch of new own brands and focused management of cost of doing business.

The post 2 ASX dividend shares rated as buys by brokers appeared first on The Motley Fool Australia.

More reading

• Fund managers are buying these ASX shares
• 2 ASX shares I like from reporting season: expert
• Here are the 3 most traded ASX 200 shares today
• Why Bravura, Nine, Reece, & Zip shares are sinking today
• Which ASX 300 shares are the biggest winners and losers today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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/3zRqeuu