Tag: Motley Fool

Metcash Ltd (ASX: MTS) shares have been out of form over the last 12 months.

During this time, the ASX stock has lost approximately 8% of its value.

As a comparison, the ASX 200 index has charged 5.5% higher over the same period.

While this is disappointing for shareholders, it could be a buying opportunity for investors looking for a source of income.

That’s because the decline in the Metcash share price means that its forecast dividend yield is now comfortably higher than the market average.

What are analysts forecasting for this ASX stock?

According to a note out of UBS last month, its analysts have responded to the company’s plan to acquire Superior Foods by retaining its buy rating with a $4.00 price target.

Based on the current Metcash share price of $3.70, this implies potential upside of 8.1% for investors over the next 12 months.

But it gets better. The broker is forecasting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. This equates to generous dividend yields of 5.4% for both years and stretches the total potential 12-month return to approximately 13.5%.

Is anyone else bullish?

UBS isn’t alone with its positive stance on this ASX stock.

The team at Ord Minnett has an accumulate rating and $4.00 price target on Metcash’s shares as well.

And with the broker also expecting a 20 cents per share fully franked dividend this year, it is predicting a 13.5% total return for investors.

All in all, these brokers appears to believe that Metcash could be an ASX 200 stock to consider buying if you’re on the lookout for a nice combination of capital gains and income.

The post Should you buy this ASX 200 stock for its 5%+ dividend yield? appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• The ASX shares I’m buying for a stress-free retirement
• Guess which ASX 200 stock is predicted to pay an 8% dividend yield in 2025
• A once-in-a-decade chance to get rich from ASX 200 shares?
• 3 Australian value stocks to buy right now

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 Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A number of ASX bank shares are hitting 52-week highs, but I’m not calling them buys at this price. There are other ASX dividend shares I’d look to for income.

ANZ Group Holdings Ltd (ASX: ANZ) shares, National Australia Bank Ltd (ASX: NAB) shares and Westpac Banking Group (ASX: WBC) shares all hit 52-week highs today.

Buying ASX bank shares at such high levels doesn’t strike me as good value. Not only are they trading at a high price/earnings (P/E) ratio, but it also means the dividend yields have been pushed lower.

Instead, there are other two main groups of shares I’d look at for opportunities.

High dividend yield

With the banks’ yields now smaller than before, I think there are plenty of other companies capable of producing better dividend yields, and those stocks may be able to grow the dividends in the coming years.

I think some companies that could pay big yields in the coming years include GQG Partners Inc (ASX: GQG), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Universal Store Holdings Ltd (ASX: UNI), Accent Group Ltd (ASX: AX1), Duxton Water Ltd (ASX: D2O) and Metcash Ltd (ASX: MTS).

I believe all of these ASX dividend shares can pay more substantial dividends over time than the big banks.

It could also be worth looking at real estate investment trusts (REITs) because they offer stable rental income and good yields, while the prospect of falling interest rates could boost valuations. Four of my favourites include Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Healthco Healthcare and Wellness REIT (ASX: HCW).

Dividend growers

I like businesses that are capable of growing profit over time because that can drive both the underlying value of the business as well as the dividend.

However, these sorts of businesses normally have a lower dividend yield because the market is pricing in longer-term growth expectations. Plus, those businesses are typically retaining more profit to invest for growth.

I think there’s a good chance that dividend growers can deliver better total returns than ASX bank shares over the next three or five years.

Some of my favourites include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Duxton Water, Sonic Healthcare Ltd (ASX: SHL), Wesfarmers Ltd (ASX: WES), Pinnacle Investment Management Group Ltd (ASX: PNI) and Johns Lyng Group Ltd (ASX: JLG).

The post Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead appeared first on The Motley Fool Australia.

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More reading

• 2 cheap ASX dividend shares I’d snap up in a heartbeat!
• If I were 60 I’d buy these ASX shares for dividends
• Is it time for me to change my tune about ANZ shares?
• Buy these ASX dividend stocks for big 5%+ yields
• Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock

Motley Fool contributor Tristan Harrison has positions in Accent Group, Brickworks, Duxton Water, Johns Lyng Group, Metcash, Pinnacle Investment Management Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Johns Lyng Group, Pinnacle Investment Management Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Accent Group, Johns Lyng Group, Metcash, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) gold shares are rocketing higher today.

In afternoon trade on Monday, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold stocks outside of the ASX 200 – is up 4.5%.

Here’s how these leading ASX 200 gold shares are tracking today:

• Northern Star Resources Ltd (ASX: NST) shares are up 5.8%
• Newmont Corp (ASX: NEM) shares are up 1.2%
• De Grey Mining Ltd (ASX: DEG) shares are up 6.4%
• Ramelius Resources Ltd (ASX: RMS) shares are up 5.5%
• Gold Road Resources Ltd (ASX: GOR) shares are up 7.7%
• Evolution Mining Ltd (ASX: EVN) shares are up 6.1%%
• Bellevue Gold Ltd (ASX: BGL) shares are up 3.6%

For some context, the ASX 200 has given back its earlier intraday gains (which saw the benchmark index hit new record territory) to be trading just about flat at this same time.

Why are gold miners smashing the benchmark on Monday?

ASX 200 gold shares are enjoying a stellar run today, with bullion hitting US$2,086 per ounce (AU$3,192/oz).

That’s up from US$2,044 per ounce on 29 February. And it sees the gold price up almost 15% from the recent lows of US$1,820 per ounce on 5 October.

A range of factors have conspired to help boost the gold price.

Those include near-record levels of central bank buying, bullion’s safe haven status in times of uncertainty, and the outlook for lower global interest rates as inflation across most of the developed world continues to come off the boil.

And with these factors expected to continue, the outlook for ASX 200 gold shares in 2024 is looking bright.

Can ASX 200 gold shares outshine the market in 2024?

While the performance of individual miners is impacted by numerous factors like mining costs, production levels and hedging commitments, the gold price has a decisive impact on the profitability of ASX 200 gold shares.

On that front, TD Securities forecasts that the yellow metal could gain another 10% from current levels to reach US$2,300 per ounce.

According to the investment bank (quoted by The Australian Financial Review):

It is hoped that the combination of lower [US Treasury] yields, which are likely to attract discretionary investors into futures and ETFs, along with strong physical markets in China and robust central bank buying, will move gold to new highs.

Indeed, we believe that the yellow metal is set to move into $US2300+ territory, once there is more certainty surrounding the timing and magnitude of the pending Fed pivot.

TD Securities’ analysts cautioned that its price target of US$2,300 per ounce may take some time to play out yet.

Citing February’s 2.6% contraction in the US Institute for Supply Management manufacturing index, the analysts said, “There will still need to be more evidence that the economy is slowing sufficiently to facilitate a steady drop in inflation before this rally becomes sustainable and moves to our target.”

Looking ahead to the pending release this week of February’s US ISM services, payrolls, wages and unemployment data, TD Securities said:

We suspect that data will be weaker, but not so poor as to drive yields much lower. As such, the market will have to wait for our $US2300+ trading target to manifest a while longer.

If bullion does rally to new record highs of US$2,300 per ounce on the back of falling yields, ASX 200 gold shares could deliver more strong outperformance ahead.

The post ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright appeared first on The Motley Fool Australia.

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More reading

• Guess which are the 2 newest members of the ASX 100 index
• 5 things to watch on the ASX 200 on Monday
• These ASX 200 shares could rise 20% to 50%
• Here are the top 10 ASX 200 shares today
• 34 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Life360 Inc (ASX: 360)

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating on this location technology company’s shares with an improved price target of $14.20. Goldman was very impressed with Life360’s FY 2023 results and continues to believe that its subscription business is undervalued. As a result, the broker sees potential advertising revenue upside as effectively a free option. The Life360 share price is trading at $12.35 today.

Neuren Pharmaceuticals Ltd (ASX: NEU)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $27.00 price target on this pharmaceutical company’s shares. The broker was pleased with Neuren’s sales update and expectations for calendar year 2024. Bell Potter estimates that its Daybue product will generate A$1 billion in licensing income over the next 6 years. The Neuren share price is fetching $19.77 on Monday.

South32 Ltd (ASX: S32)

Analysts at Macquarie have upgraded this mining giant’s shares to an outperform rating with an improved price target of $3.40. This follows news that the company has agreed to sell its Illawarra metallurgical operation. It is supportive of the sale and highlights that the company will be left with a focus on aluminium and base metals. These are areas which it believes have favourable outlooks. The South32 share price is trading at $2.97 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why Calix, Genex, Life360, and Spartan Resources shares are rising
• Why Life360 shares can keep rocketing
• 5 things to watch on the ASX 200 on Monday
• Which ASX shares delivered the biggest profit jumps of the earnings season?
• Here’s how the ASX 200 market sectors stacked up this week

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After hitting a new record high this morning, the S&P/ASX 200 Index (ASX: XJO) has swung back to a loss at the time of writing. At present, the ASX 200 is nursing a hit of 0.07%, leaving the index at 7,740 points. That’s after hitting the new all-time high of 7.769.1 points earlier today. But let’s talk about the Commonwealth Bank of Australia (ASX: CBA) share price.

Just like the ASX 200, this Monday has seen the CBA share price hit a fresh new all-time high. In this ASX 200 bank stock‘s case, the new record stands at $118.55 a share.

At present, CBA shares have cooled off a little, but are still up 0.52% for the day at $117.97 a share.

At this new share price, CBA’s market capitalisation now stands at a whopping $196.53 billion. By comparison, the next-largest of the big four ASX 200 banks is currently National Australia Bank Ltd (ASX: NAB), which has a market cap of just $105.9 billion.

So CBA is almost twice the size of its nearest banking rival.

CBA shares and a monster market cap

The share price gains of Commonwealth Bank have been eye-catching in recent months. Since the end of October, CBA is now up more than 22.5%. The shares are also up 3.8% over 2024 to date, as well as up 19.65% over the past 12 months.

But many shareholders might be wondering if things have gotten a little too hot for CBA. After all, we’ve recently covered a flurry of ASX experts who have labelled the CBA share price as expensive and even “difficult to justify“.

But today, let’s discuss a simple reason why I think CBA shares are too expensive right now.

As most investors would know, there are only two fundamental ways you can achieve a return on your investment with ASX shares. The first is capital growth of the company’s share price. The second, dividends (and franking).

CBA shares are incontrovertibly expensive right now, no way around it. They trade on a huge premium compared with any other ASX bank stock (and most other banks around the world), both on a price-to-earnings (P/E) ratio basis, and using book value.

Normally, high P/E ratios and valuations can be potentially justified if a company is growing and has strong prospects for future growth.

But I don’t believe we can say that about CBA. The bank’s earnings report from last month showed CBA increasing its operating income by 0.2% over the six months to 31 December. Its cash net profit after tax actually fell by 3% to $5.02 billion.

I don’t expect a turnaround to consistent, meaningful growth in profits and earnings anytime soon. Nor, as a matter of fact, does CBA itself. In its earnings, CBA CEO Matt Comyn warned investors that “we expect financial strain to continue in 2024”.

So for CBA sales to continue to rise going forward, investors will probably need to stretch what they are paying for each dollar of CBA earnings even further from its already exceptional valuation.

That’s not something I think anyone should bet on.

Is there anything attractive about this ASX 200 bank stock right now?

That leaves us with CBA’s dividends.

ASX banks have a well-earned reputation for paying meaty dividend income. Historically, that has been the case with CBA as well.

But right now, the bank’s recent share price surge has left it with a trailing dividend yield of just 3.86% (albeit fully franked). That is rather low for an ASX bank. Especially when you consider that CBA’s rivals like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) have current dividend yields of 5.34% and 6.07% respectively.

So put simply, someone buying CBA shares today has to hope that investors will keep increasing the bank’s valuation despite stagnant profits and earnings, all while continuing to receive a dividend yield of under 4%.

There’s not much in that mix that would benefit any investor. As such, I indeed think that $196.5 billion is too much for CBA shares and potential buyers should look elsewhere.

The post CBA shares rally to new record high. Is $196 billion too much for this banking giant? appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares that boosted their dividends this earnings season
• 3 things about CBA stock every smart investor knows
• Why the CBA share price premium is ‘difficult to justify’
• Up 20% in 4 months, where’s next for the CBA share price?
• Here’s the CBA dividend forecast through to 2026

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 Scott Phillips.

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Every quarter, S&P Dow Jones Indices announces changes to the S&P/ASX Indices.

On Friday, the financial market indices provider announced its latest changes that will become effective prior to the open of trading on Monday 18 March.

These changes were revealed following its March quarterly review and will see some big names entering and exiting the major indices.

Earlier today, we looked at the new additions and the exits from the benchmark ASX 200 index.

Now let’s see what changes are being made to the illustrious ASX 100 index.

ASX 100 index changes

According to the release, travel agent giant Flight Centre Travel Group Ltd (ASX: FLT) and high-flying health imaging technology provider Pro Medicus Limited (ASX: PME) will be joining the index in two weeks.

They will be replacing alumina producer Alumina Ltd (ASX: AWC) and Region Re Ltd (ASX: RGN). It was previously known as Shopping Centres Australasia Property Group and is an internally managed shopping centre focused real estate investment trust.

While being kicked out of the ASX 100 index could be a blow to Region, it probably won’t mean much for Alumina. That’s because it could be leaving the ASX boards in the not so distant future.

Last week, the company received a non-binding, indicative, and conditional proposal from Alcoa Corporation (NYSE: AA), and the two parties entered into a transaction process and exclusivity deed.

What else was announced?

In other news, there has been one change made in the ultra-exclusive ASX 50 index.

Joining the index later this month will be insurance giant QBE Insurance Group Ltd (ASX: QBE). It will be taking the place of gold miner Newmont Corporation (ASX: NEM), which has been demoted.

The post Guess which are the 2 newest members of the ASX 100 index appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Passive income watch: The ASX stocks dishing out the biggest dividend boosts this earnings season
• Which ASX shares delivered the biggest profit jumps of the earnings season?

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 positions in and has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Region Group. The Motley Fool Australia has recommended Flight Centre Travel Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) lithium shares have been staging a remarkable rebound in recent weeks.

As you’re likely aware, virtually every ASX lithium stock large and small got walloped in 2023 as lithium prices crashed some 80% from their November 2022 highs.

This came as the global supply growth of the battery-critical metal outpaced the world’s demand growth.

However, with some producers having reduced or entirely paused lithium production and with EV demand still growing (albeit at a slower pace) there are early signs of a turnaround.

While prices remain well below the late 2022 highs, lithium carbonate prices are up around 5% so far in 2024.

And that improving outlook has helped spur a big recovery for these battered ASX 200 lithium shares.

Here’s how they’ve performed over the past month:

• Pilbara Minerals Ltd (ASX: PLS) shares are up 32%
• Core Lithium Ltd (ASX: CXO) shares are up 34%
• IGO Ltd (ASX: IGO) shares are up 22%
• Liontown Resources Ltd (ASX: LTR) shares are up 51%

For some context, the ASX 200, which notched new all-time highs today, has gained 6% over this same period.

But even with these outsized gains in the bag, there could be more outperformance ahead for ASX 200 lithium shares.

Here’s why.

Chinese demand could fuel ASX 200 lithium shares

Much as with iron ore (and many of Australia’s top commodities), the ebb and flow in demand from China has a major impact on spot prices.

When it comes to lithium, China is the world’s top EV producer and also leads the world in battery production.

So it’s not surprising that higher-than-expected Chinese EV demand in February has Macquarie Bank analysts bullish on lithium demand.

In what could be good news for ASX 200 lithium shares for the remainder of 2024, Macquarie said (quoted by The Australian Financial Review), “We believe lithium demand growth could outpace that of batteries in 2024.”

Indeed, some Chinese battery manufacturers have upped their production by up to 80% over the past month.

“We believe that the significant month-on-month increase in battery production plans in March may indicate that demand is better than market expectations,” they said.

“The spot price has shown an early sign of improvement,” Macquarie’s analysts added.

Chilean-based Sociedad Quimica y Minr de Chile (NYSE: SQM), which has operations in Western Australia in a partnership with Wesfarmers Ltd (ASX: WES), has not been immune to 2023’s lithium price crash, with profits in the December quarter down sharply.

But SQM CEO Ricardo Ramos (quoted by the AFR) believes demand will increase in the second half of 2024, potentially sending the lithium price up by 20% from current levels.

“We foresee stable prices in the short-term … we are more optimistic, more positive, for the second half of this year,” Ramos said.

A 20% increase in the lithium price could see the past month’s rebound in ASX 200 lithium shares continue apace.

The post Why the 2024 outlook for these rebounding ASX 200 lithium shares looks ‘better than market expectations’ appeared first on The Motley Fool Australia.

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More reading

• Guess which 4 shares are being dumped from the ASX 200 index
• Here’s the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares
• 3 ASX lithium shares with huge upside to buy in March
• 6 ASX shares to buy and hold until the next leap year

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a subdued start to the week. In afternoon trade, the benchmark index is down slightly to 7,741.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Calix Ltd (ASX: CXL)

The Calix share price is up 12% to $1.98. Investors have been buying the environment technology company’s shares after it found a new home for its Leilac-2 (Low Emissions Intensity Lime And Cement) project. The Leilac-2 will now be constructed at Heidelberg Materials’ cement plant in Ennigerloh, Germany. In January, Calix shares were sold off after previous construction plans were shelved.

Genex Power Ltd (ASX: GNX)

The Genex Power share price is up 30% to 24 cents. This has been driven by news that the renewable energy company has received a 27.5 cents per share non-binding takeover offer from Japan’s J-POWER. Management has granted due diligence access and advised that it would be willing to accept the offer if it became binding.

Life360 Inc (ASX: 360)

The Life360 share price is up 8% to $12.20. Investors have been buying this location technology company’s shares after brokers responded very positively to its FY 2023 results. One of those brokers was Goldman Sachs, which reiterated its buy rating with an improved price target of $14.20.

Spartan Resources Ltd (ASX: SPR)

The Spartan Resources share price is up 9% to 54.5 cents. This morning, the gold explorer announced exceptional intercepts from drilling at the Never Never gold deposit from the Dalgaranga Gold Project in Western Australia. Management believes the results highlight the growing strategic significance of the high-grade deposit.

The post Why Calix, Genex, Life360, and Spartan Resources shares are rising appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX tech stock is jumping 15% today
• Genex share price jumps 38% on $381 million takeover bid
• Why Life360 shares can keep rocketing
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up this week

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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 Scott Phillips.

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Well, it’s another day, another new record high for the S&P/ASX 200 Index (ASX: XJO). Earlier this morning, the ASX 200 hit a new benchmark of 7,768 points. This was also accompanied by a fresh new 52-week high for the Westpac Banking Corp (ASX: WBC) share price.

Yes, Westpac shares also climbed to a new benchmark this morning – $26.54 a share.

This new 52-week high for the ASX 200 bank stock puts the Westpac share price up an impressive 14.86% year to date in 2024, as well as up an even better 19.96% over the past 12 months.

No doubt all Westpac shareholders will be feeling reasonably chuffed right now. But what about investors who have been eyeing Westpac shares to potentially add to their portfolios? Is this bank still worth buying today at new 52-week highs?

Are Westpac shares a buy at this new 52-week high?

That’s an interesting question to ponder. Sure, the past 12 months have been a fantastic time to have owned Westpac stock. But zooming out further, and the picture is very different. Today, at these new 52-week highs, Westpac shares are still not looking expensive by historical standards.

Today’s new high merely takes Westpac shares to where they were in June 2021.

Westpac was far more expensive during the final months of 2019 (reaching as high as $30 a share).

In early 2017, we saw it climb as high as $35. And in 2015, the bank was commanding a price close to $40.

Indeed, to find the first time Westpac shares hit $26.50, we’d have to go all the way back to early 2007. If you don’t believe me, check it out for yourself below:

As such, we can conclude that Westpac has historically been a fairly poor investment, and unable to compound its earnings effectively over time to increase its valuation.

Given the current banking environment, I don’t think that is set to change anytime soon. As such, I don’t think Westpac shares are a buy today for anyone who wishes to either match or beat the performance of the ASX 200 Index.

What about the Westpac dividend?

But what about Westpac’s generous dividends, you may ask? After all, despite the 52-week high share price, the bank currently trades on a fairly compelling dividend yield of 5.36%. That comes with full franking credits too.

That’s objectively a lucrative dividend yield, amongst the best you can get in the upper echelons of the ASX 200.

Whilst I don’t think Westpac shares are market-beaters at current pricing, I do think they could be a useful member of a diverse, income-focused portfolio.

I would therefore be happy to call Westpac shares a buy for retirees, income investors and anyone whose primary investing objective is to maximise franked dividend income.

But for anyone else, I think there are better options on the ASX 200 for your money today.

The post Is it too late to buy Westpac shares at a fresh 52-week high? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 5 ASX 200 shares that boosted their dividends this earnings season
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• 34 ASX 200 shares with ex-dividend dates next week

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 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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up slightly to 7,751.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Cettire Ltd (ASX: CTT)

The Cettire share price is down 5% to $4.60. This follows news that the online luxury retailer’s founder and CEO has sold a large number of shares. According to the release, CEO Dean Mintz has sold 27.5 million shares in the online luxury retailer for $4.63 per share. This represents a whopping ~7.2% of the company’s issued capital and a total consideration of approximately $127 million.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down almost 2% to $3.86. This follows the release of an update on the building products company’s chair succession process. According to the release, its current chair, Bruce Hassall, has decided to step down with immediate effect. Ms Barbara Chapman has been appointed as acting chair.

Lake Resources (ASX: LKE)

The Lake Resources share price is down 6% to 12.7 cents. Investors have been selling this lithium developer’s shares after it released an update on its Kachi project in Argentina. Although Lake has identified cost reduction opportunities, it also revealed that its final investment decision on the project is likely to be delayed until late 2025.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down 3% to $14.19. This has been driven by the furniture retailer’s shares going ex-dividend this morning. Eligible shareholders can now look forward to receiving the company’s fully franked 35 cents per share interim dividend later this month on 26 March.

The post Why Cettire, Fletcher Building, Lake Resources, and Nick Scali shares are falling today appeared first on The Motley Fool Australia.

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More reading

• Down 80% in a year why are Lake Resources shares tumbling again today?
• The CEO of this ASX stock just sold $127m worth of shares
• Here are the top 10 ASX 200 shares today
• Down 7%: What’s gone so wrong for Lake Resources shares today?
• Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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