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It has been a difficult year for the ASX share market with a number of businesses seeing declines. However, there are a few ASX shares that have managed to achieve positive returns. One of them has certainly helped my portfolio.

In 2022 to date, the S&P/ASX 200 Index (ASX: XJO) has dropped by 9%. The Betashares Nasdaq 100 ETF (ASX: NDQ) has fallen by 23%. Looking at one of my largest holdings as an example, the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has dropped 17%.

But, thankfully for me, the Duxton Water Ltd (ASX: D2O) share price has risen by 9% in 2022.

What is Duxton Water?

The company explains its strategy as such:

The primary investment objective of Duxton Water is to build a portfolio of permanent water entitlements and utilise this portfolio to provide flexible water supply solutions to our Australian farming partners. The company generates a return by offering irrigators a range of supply solutions including long-term entitlement leases, forward allocation contracts and spot allocation supply.

In summary, the ASX share owns water and leases it to farmers.

The company wants to build its portfolio of long-term water leases. The aim is to have between 70% to 80% of its portfolio under lease.

Why has it performed in 2022?

A commodity business like Duxton Water can see its returns heavily dictated by the performance of the resource.

However, wet conditions have persisted over the last two or three years, which has led to a “significant improvement” for all major dam storages and full soil moisture profiles across large areas of the basin.

Duxton Water revealed that despite the wet conditions and lower allocation prices, “entitlement values across most of the basin are trading at near all-time highs”. The company has benefited from the pricing uplifts.

The management team explained:

Although it may seem counter-intuitive that entitlement pricing is sitting at near record highs given the current wet conditions, this shows that the demand and supply drivers that underpin water entitlement values are much stronger than the increased annual rainfall and dam storages that we’ve seen over the last two to three years. We believe the primary driver affecting water entitlement values is driven by an increasing inelastic demand for future water security from permanent crop producers across the basin. With high commodity prices and coming off the back of a couple of good seasons, permanent crop producers have been investing into their future water security by acquiring permanent water entitlements.

Permanent water pricing across the southern Murray-Darling Basin strengthened throughout July, with a weighted average increase of 0.6%, resulting in a rise of around 19% since July 2021, according to Duxton Water.

Dividends

One of the main reasons I’m attracted to Duxton Water, aside from the potential for good returns, is that the ASX share is planning to grow its half-yearly dividend to 3.4 cents per share in FY22, 3.5 cents per share for the 2023 interim dividend, and 3.6 cents per share for the 2023 final dividend.

Is the Duxton Water share price a buy?

I think it could be interesting at this level. It’s valued at a 12.5% discount to the July 2022 post-tax net asset value (NAV) per share and a 25% discount to the pre-tax NAV. I’d be happy to buy shares.

The post Guess which one of my ASX shares has delivered me the most gains this year appeared first on The Motley Fool Australia.

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More reading

• Dividend beasts: 3 ASX shares forecasting higher dividends in 2023
• Batteries and water: Experts name 2 ASX shares you can’t ignore
• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch

Motley Fool contributor Tristan Harrison has positions in DUXTON FPO 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 BETANASDAQ ETF UNITS and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS and Washington H. Soul Pattinson and Company Limited. 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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Coal mining ASX shares have done pretty well out of the energy crisis this year.

But if the thought of directly investing in the fossil fuel creeps you out, there are ways to indirectly gain some exposure to the global fuel shortage.

Two such ASX shares are the investment company Washington H Soul Pattinson and Co Ltd (ASX: SOL) and construction business Brickworks Limited (ASX: BKW).

According to Shaw and Partners portfolio manager James Gerrish, both are in or near the buy zone.

This stock was just added to our hitlist

Soul Pattinson has a variety of interests in both public and private entities, Gerrish said in a Market Matters Q&A.

“They own a number of strategic holdings including TPG Telecom Ltd (ASX: TPG) ~$1.1 billion, Brickworks ~$1.3 billion and New Hope Corporation Limited (ASX: NHC) ~$1.68 billion.”

Coal producer New Hope has seen its share price rise almost 133% so far in 2022. Yet the Soul Pattinson share price has actually dipped 17% over the same period.

For Gerrish’s team, this disjoint perhaps presents some upside.

“Considering the significant outperformance by New Hope, I would have expected more from Soul Pattinson,” said Gerrish.

“We like investment house Soul Pattinson below $26 and it’s recently found itself on our hitlist.”

Soul Pattinson shares closed Friday at $25.62.

The stock is famous for its 22-year streak of non-stop dividends, with the yield currently sitting at 2.53%.

No dividend cut for 4 decades

So how can a building business like Brickworks provide exposure to the energy sector?

“This manufacturer of clay and building products also owns ~26% of Soul Pattinson, which by definition equates to a $400 million position in New Hope Corporation,” Gerrish said.

Unlike Soul Pattinson, Brickworks shares seem to have benefitted from its New Hope exposure.

“Brickworks has struggled a bit due [to] the slowing building industry but New Hope has helped the cause.”

This is another stock that has an impressive dividend record. The construction company has increased its dividend each year since 2014.

“It’s worth mentioning too that the ASX 200 dividend share hasn’t cut its dividend for over four decades,” wrote The Motley Fool’s Tristan Harrison.

“Brickworks also owns half of a quality industrial property trust which is constructing buildings such as huge warehouses… The growing net rental profit from Brickworks’ property investments can help fund bigger dividends.”

Gerrish’s team would buy Brickworks the next time it dips under the $20 mark. The stock closed Friday at $20.71.

“Overall some slightly messy cross-ownership, but both stocks do look good value into further weakness.”

The Brickworks share price is down 16.2% year to date.

The post ‘Good value’: Expert names 2 ASX dividend shares to pounce on next dip appeared first on The Motley Fool Australia.

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More reading

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• Telstra share price is caught in no man’s land as Optus feud continues
• ASX bounces back and telco titans tussle. Scott Phillips on Nine’s Late News
• Why is ASX behemoth Soul Patts lending a hand to Electro Optic Systems?
• FBR share price climbs amid Brickworks takeover rumours

Motley Fool contributor Tony Yoo has positions in 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 and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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 A2 Milk Company Ltd (ASX: A2M) share price will be one to watch on Monday morning.

This follows the release of an announcement out of the infant formula company.

Why is the A2 Milk share price in focus?

All eyes will be on the A2 Milk share price at the open following the release of an update on the company’s Chinese label infant formula.

According to an announcement out of Synlait Milk Ltd (ASX: SM1), the dairy processor has received notification from China’s State Administration for Market Regulation (SAMR) that its current registration has been renewed.

This renewal allows Synlait to manufacture A2 Milk’s Chinese labelled infant formula until 21 February 2023 under the previous food safety standard. This is great news for A2 Milk as the current registration was due to expire later this month.

And while its registration has only been renewed for a further five and a half months, Synlait revealed that it is busy working towards achieving its re-registration under the new food safety legislation by February.

A2 Milk’s response

A2 Milk responded to the news, highlighting the above but also warning investors that while its re-registration activities are progressing, the timing of it is uncertain and remains subject to SAMR approval.

Positively, though, the company also highlights that the Ministry for Primary Industries has co-operation arrangements in place with SAMR. These position New Zealand well in relation to China registration processes.

A2 Milk’s CEO, David Bortolussi, commented:

We are pleased that our current product registration has been renewed, effectively to late February 2023, and we will continue to work collaboratively with Synlait and SAMR in relation to registration of our China label IMF product formulated in line with China’s new GB standards.

We remain focused on the China market and are looking forward to the opportunity to make our newly formulated infant milk product available to parents and infants in China. In all circumstances, The a2 Milk Company fully respects SAMR’s governance and timing of this important registration process.

The post A2 Milk share price on watch following China update appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping
• Why is the A2 Milk share price tumbling lower today?
• 5 things to watch on the ASX 200 on Friday
• Why has the A2 Milk share price leapt 17% in a fortnight?
• Why is A2 Milk buying back shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for dividend shares to boost your income portfolio? If you are, you may want to check out the two listed below that have been rated as buys by experts.

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

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend share that is highly rated is Centuria Industrial. It is the owner of a growing collection of high-quality and in-demand industrial assets across key metropolitan locations throughout Australia.

And when I say in-demand, I mean it! In FY 2022, the company reported an occupancy rate of almost 100%, 10% rental growth, and an increase in the book value of its portfolio.

The good news is that demand for industrial properties remains very strong and is expected to remain this way in the coming years.

In light of this, the team at Macquarie expect the company to be in a position to pay attractive dividends in the near term. For example, the broker is forecasting ~16 cents per share distributions in FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.06, this will mean yields of 5.2% for investors.

Macquarie has an outperform rating and $3.69 price target on its shares.

Elders Ltd (ASX: ELD)

Another ASX dividend share that experts are tipping as a buy is Elders. It is one of the ANZ region’s leading agribusiness companies. It provides livestock, real estate, feed and processing, wool agency services, financial planning, and grain marketing services to rural and regional customers.

After a going through a tough period during the 2010s, Elders has bounced back strongly in the last couple of years. This led to the company delivering first half EBIT growth of 80% to $132.8 million.

While its growth is now expected to moderate, the team at Goldman Sachs remain just as bullish as ever and are forecasting respectable earnings and dividend growth in the coming years.

The broker is expecting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $12.28, this implies attractive yields of 4.1% and 4.3%, respectively.

Goldman also sees plenty of upside for Elders’ shares with its buy rating and $21.00 price target.

The post Boost your income with these ASX dividend shares: experts appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Experts say these ASX dividend shares are buys now
• Analysts say these ASX dividend shares are buys 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 Elders Limited. 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 world, except for China, is now well and truly in the post-COVID era.

Even though the Omicron variant is still infecting, hospitalising and killing people around the globe, most nations seem to have moved past lockdowns and restrictions.

On Friday, for example, Australia nationally reduced the COVID-19 isolation period down to just five days and masks were no longer mandatory on domestic flights.

So with this mindset, can businesses that rely on the movement of people internationally finally breathe a sigh of relief?

Double-digit growth for next 5 years

According to a couple of experts, international education and student placement provider IDP Education Ltd (ASX: IEL) is poised to grow now that the pandemic shackles are off.

First Sentiers deputy head of Australian equities David Wilson has rated the ASX share as a buy.

“You’ve got double-digit volume growth for the next five years at least in both the English language testing business, where they’re the market leader by some margin,” he said in a Livewire video.

“And in the student placement business, where they’re also the market leader by some margin.”

According to Abrdn head of Australian equities Michelle Lopez, the stock is a buy despite the lofty valuation, currently sitting at a price-to-earnings ratio of 77.5.

“When you think about IDP and the moat that they’ve developed over their two businesses, which are student placement and English testing, both of those businesses are unparalleled.”

Looks expensive, but it’s not really

To demonstrate how the PE multiple should not put off investors, Lopez cited the company’s COVID-era acquisition of an education business in India.

“India has a 1.4 billion population, and 50% of that is under the age of 30. So their education sector and the earnings from education will be up three to fourfold until the end of the decade,” she said.

“So for us, they’re going to grow into the valuation, and it’s a buy.”

Wilson agreed that IDP Education would “grow into that multiple, no problems whatsoever”.

“You’re seeing them get that growth across into Canada, into the UK, into Australia, as economies open up. So they’re in a really great place to drive longer-term growth.”

Earlier in the week, the team at QVG Capital also agreed that IDP Education would justify its valuation in the years to come.

“We know near-term earnings are the wrong lens [to] view these companies.”

The IDP Education share price has actually lost 19.2% so far this year.

The post ‘Unparalleled’: 2 experts reckon this ASX share is a long-term buy appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares named as buys by a top broker
• 2 ASX shares that look expensive but have years of growth ahead: QVG Capital
• These 9 ASX 200 shares are going ex-dividend tomorrow
• Here are the top 10 ASX 200 shares today
• Broker names 2 ASX shares to buy now

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd. 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 five consecutive months of interest rate rises from the RBA so far in 2022, many investors are seeking ways to help offset the rising cost of living. And one way to help make the hip pocket a little happier and healthier is with some extra income.

So, to hunt down some potential extra earnings, we asked our Foolish contributors which ASX dividend shares have piqued their interest in September. 

Here’s what the team came up with:

8 best ASX dividend shares for September 2022 (smallest to largest)

CSR Limited (ASX: CSR), $2.19 billion

Super Retail Group Ltd (ASX: SUL), $2.22 billion

Vanguard Australian Shares High Yield ETF (ASX: VHY), $2.38 billion

ARB Corporation Limited (ASX: ARB), $2.49 billion

Brickworks Limited (ASX: BKW), $3.14 billion

Coles Group Ltd (ASX: COL), $23.06 billion

Rio Tinto Limited (ASX: RIO), $35.03 billion

Macquarie Group Ltd (ASX: MQG), $68.73 billion

(Market capitalisations as of 9 September 2022)

Why our Foolish writers love these ASX dividend shares

CSR Limited

What it does: CSR manufactures building products that are used in the construction industry. These include plasterboard, insulation materials, glass, cement, and bricks. The company also has heavy exposure to aluminium.

By Zach Bristow: CSR shares have been traded down heavily in 2022, having slipped from 52-week highs of $6.22 in March to now trade at $4.52 apiece.

Despite the downtrend, the building supplies manufacturer came in with a solid set of numbers for its FY22 annual results, published in May. In particular, net profit after tax (NPAT) climbed 20% year on year to $193 million.

The profitable 12-month period saw management declare a final dividend of 18 cents per share, up 24% year on year. Based on the current share price, this gives CSR shares a trailing dividend yield of almost 7%.

The company forecasts that it will generate approximately $52 million in earnings before interest and tax (EBIT) in its property division for the year ending 31 March, 2023. Meanwhile, it hopes to deliver earnings in the range of $33 million to $49 million in its aluminum business.

The consensus of analysts covering CSR estimate its FY23 dividend payment to be 33.6 cents, according to Refinitiv Eikon data.

Motley Fool contributor Zach Bristow does not own shares in CSR Limited.

Super Retail Group Ltd

What it does: Super Retail Group is an Australian retail company that operates a number of well-known brands including Rebel Sport, Supercheap Auto, and BCF. Since its founding 50 years ago, the company has built a significant presence across Australia and New Zealand, now 716 stores strong.

By Mitchell Lawler: The Super Retail Group share price has been punished over the last year as profits shrunk amid inflationary cost pressures and supply chain issues. However, the company has remained profitable throughout – an essential tenet for a dividend share.

While Super Retail Group spans more than just automotive parts, I believe it’s this portion of the business that is the most attractive. The average age of vehicles in Australia has long been over 10 years. And considering cost pressures stemming from inflation and rising interest rates are causing many people to tighten their belts, I believe car owners could now be inclined to hold onto their vehicles even longer. This could provide a boost for the company’s Supercheap Auto division.

Right now, Super Retail Group is parading a 7.1% dividend yield. The defensive nature of this business gives me confidence in the prospects of future dividend returns for many years to follow.

Motley Fool contributor Mitchell Lawler does not own shares in Super Retail Group Ltd.

Vanguard Australian Shares High Yield ETF

What it does: The Vanguard Australian Shares High Yield ETF is an exchange-traded fund (ETF) that currently holds 72 listed, dividend-paying Australian companies, with a median market capitalisation of $52.9 billion.

By Bernd Struben: Income investors looking for instant diversification may want to investigate the Vanguard Australian Shares High Yield ETF. The ETF aims to hold an average of 71 large-cap, dividend-paying shares. And it focuses on companies with proven track records that are forecast to keep paying market-beating dividends.

At the current share price, the ETF pays a trailing dividend yield of 6.4%, franked at approximately 90%. Annual management fees of 0.25% are also low compared to more actively managed ETFs. Its largest holding is Commonwealth Bank of Australia (ASX: CBA), followed by BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB) and Woodside Energy Group Ltd (ASX: WDS). See what I mean by instant diversification?

Motley Fool contributor Bernd Struben does not own shares in the Vanguard Australian Shares High Yield ETF.

ARB Corporation Limited

What it does: ARB Corporation is Australia’s largest manufacturer and distributor of four-wheel-drive accessories. There are 74 branded ARB stores scattered across Australia and the company ships to more than 100 countries.

By Brooke Cooper: The ARB share price has dumped around 44% year to date to currently trade at $30.36, despite the company posting strong earnings last month.

ARB Corporation pushed past supply chain issues and high staff absenteeism last financial year to post an 11.5% year-on-year increase in sales and a $122 million after tax profit – an 8.1% improvement on the prior corresponding period.

It also ended the financial year with $52.7 million of cash and no debt.

To top it off, ARB declared a 39 cent, fully-franked final dividend, bringing its full year payout to 71 cents per share – a 4.4% year-on-year increase that left the stock trading with a 2.3% dividend yield.

Motley Fool contributor Brooke Cooper does not own shares in ARB Corporation Limited.

Brickworks Limited

What it does: Brickworks may be best known as an Australian building products business that manufactures products like bricks, pavers, roofing materials, masonry, and more. It also has an American building products business that has a market-leading position in the United States.

By Tristan Harrison: In addition to its core business, Brickworks also has a large and growing asset base through its ownership of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Plus, it owns half of an industrial property trust, along with Goodman Group (ASX: GMG), which is seeing strong demand for its large, well-located warehouses. Excess land is sold into the industrial property trust and then properties are built on that land.

I’m attracted to the growing cash flow that Brickworks is receiving from its property trust and through Soul Pattinson. Those two segments are funding Brickworks’ growing dividend, which hasn’t been cut for over four decades. I really like the business for this reliability of its dividend income.

Furthermore, Brickworks recently announced it was unlocking more value by selling some of its manufacturing properties into a new property trust.

In terms of the yield, Brickworks has a trailing, grossed-up dividend yield of around 4.27%. I think that’s a solid starting yield for a dividend investor.

Motley Fool contributor Tristan Harrison owns shares in Brickworks Limited.

Coles Group Ltd

What it does: Coles is a company that needs little introduction, with its vast network of popular supermarkets across the country.

By Sebastian Bowen: I believe it’s hard to look past Coles as a quality ASX dividend share. This supermarket operator was one of the only blue-chip shares that was able to give investors a dividend increase across each of the COVID-affected 2020, 2021 and 2022 years – no mean feat!

Today, Coles is offering a fully-franked dividend yield of 3.7%. Due to Coles’ consumer staples nature, headwinds that might affect other S&P/ASX 200 Index (ASX: XJO) shares, such as slow economic growth, inflation and rising interest rates, are arguably less of a concern when it comes to this company.

For me, the final feather in this grocery giant’s cap is that its current dividend yield easily tops those offered by rivals such as Woolworths Group Ltd (ASX: WOW). As such, I believe investors could do a lot worse than Coles when it comes to ASX dividend shares in September.

Motley Fool contributor Sebastian Bowen does not own shares in Coles Group Ltd.

Rio Tinto Limited

What it does: Rio Tinto explores materials across four segments: iron, aluminium, copper, and minerals. Some of its projects include the Jadar project and the Rincon lithium project.

By Matthew Farley: On 2 September, broker Goldman Sachs confirmed its price target of $121.50 for Rio Tinto shares. This followed news the mining giant had reached an agreement to enable its Turquoise Hill acquisition to move ahead. Based on the current Rio Tinto share price, the target implies potential upside of of around 29%.

Besides this possible short-term increase, I believe the bigger picture is that the demand for iron ore will bounce back strongly to prop up China’s massive infrastructure and real estate projects. For some context here, Rio Tinto’s iron ore operating segment contributed 80% to its earnings in 2021 and China buys around 70% of the world’s total iron ore production.

China’s zero-COVID policy will undoubtedly cause a slowdown in construction over the short term, but if the rest of the world’s recovery from the virus can be used as a litmus test, I believe this will gradually ease.

Real estate holds around 70% of China’s wealth according to The Economic Times, with it being seen as a popular pathway to retirement. This creates significant demand for new development projects, as well as the iron ore required to complete them. In short, real estate is highly important to China for both cultural and economic reasons, so I believe a sharp rebound in demand will be on the cards when China gets a grip on the virus and restrictions ease.

Based on the current Rio Tonto share price, the company has a trailing dividend yield of around 10%.

Motley Fool contributor Matthew Farley does not own shares in Rio Tinto Limited.

Macquarie Group Ltd

What it does: Macquarie is a global financial powerhouse that provides banking, financial, advisory, investment, and fund-management services.

By Aaron Teboneras: Since COVID-19 hit, Macquarie has increased its dividends to near record levels. In its FY20 first-half results, the board declared an interim dividend of $1.35 per share. However, this was bumped up to $2.72 in the following year (H1 FY22).

With the investment bank’s half-year earnings due out in November, I believe this could be an opportune time to pick up some shares.

In its first-quarter update, Macquarie said it remains well-positioned to deliver superior performance in the medium term. This is because of its expertise in major markets, geographic diversity, and the ability to adapt its portfolio mix to changing market conditions.

The Macquarie share price is down by almost 16% in 2022, and could be trading at bargain levels according to one broker.

As reported by ANZ Share Investing, the team at Jefferies believes Macquarie is undervalued and recently raised its price target by 4.1% to $202 per share. This implies upside of around 13% from where the Macquarie share price last traded at $177.83.

Currently, Macquarie has a trailing dividend yield of around 3.5%.

Motley Fool contributor Aaron Teboneras does not own shares in Macquarie Group Ltd.

The post Top ASX dividend shares to buy in September 2022 appeared first on The Motley Fool Australia.

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More reading

• I shouldn’t have sold this ASX share two years ago: fund
• Why is top broker Citi tipping 17% upside for the Coles share price?
• Why did ASX 200 iron ore shares have such a strong end to the week?
• Why is the Rio Tinto share price lifting today?
• Is the Macquarie dividend going to beat a bank savings account?

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a solid week on a positive note. The benchmark index rose 0.65% to 6,894.2 points.

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

ASX 200 expected to rise

The Australian share market looks set to start the week in a positive fashion. This follows a very strong end to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 79 points or 1.15% higher this morning. On Wall Street, the Dow Jones was up 1.2%, the S&P 500 climbed 1.5%, and the NASDAQ jumped 2.1%.

Oil prices charge higher

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good start to the week after oil prices charged higher on Friday. According to Bloomberg, the WTI crude oil price was up 3.9% to US$86.79 a barrel and the Brent crude oil price rose 4.1% to US$92.84 a barrel. Traders were buying oil amid concerns over supply threats

Tech shares expected to rise

Tech shares such as Life360 Inc (ASX: 360) and Zip Co Ltd (ASX: ZIP) could start the week strongly after their US counterparts stormed higher on Friday night. As mentioned above, Wall Street’s tech focused NASDAQ index was in fine form, rising a sizeable 2.1% after investors sentiment rebounded. This bodes well for the local tech sector on Monday.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week on Monday after the gold price rose. According to CNBC, the spot gold price was up 0.4% to US$1,727.6 an ounce on Friday night. A softening US dollar gave the precious metal a boost.

Iron ore price continues to rebound

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could start the week with a bang after the iron ore price continued to rebound amid optimism over Chinese demand. According to Metal Bulletin, the spot iron ore price has risen 3.9% to US$103.65 a tonne.

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

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More reading

• Why did ASX 200 iron ore shares have such a strong end to the week?
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping
• Why is the Newcrest share price beating the ASX 200 on Friday?
• Here’s why the ASX 200 could be set up for an almighty rally before the end of this horrible year for stocks

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and ZIPCOLTD FPO. 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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One the biggest advocates of buy and hold investing is legendary investor Warren Buffett. In the past, the Oracle of Omaha has famously quipped that his favourite holding period is “forever.” And given the success he has had over the last six decades, he could be onto something!

Mr Buffett clearly also has a penchant for blue chip shares rather than risky small caps. Countless blue chips have graced his portfolio through the years and can be found in it today.

With that in mind, listed below are two buy-rated blue chip shares that could be the sort of investments that Buffett makes. Here’s what experts are saying about them:

CSL Limited (ASX: CSL)

The first blue chip share to consider is CSL. It is one of the world’s largest biotechnology companies and regarded by many as the highest quality company on the Australian share market. It has consistently grown its sales and earnings at a solid rate for well over a decade and has been tipped to continue this positive form in the future.

This is thanks to its leading therapies, growing plasma collection network, the acquisition of Vifor Pharma, and its burgeoning research and development pipeline. This pipeline contains a number of therapies that have the potential to generate billions of dollars in sales over the next decade if their trials are successful.

The team at Citi is very positive on CSL. It has a buy rating and $340.00 price target on the company’s shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share that Buffett could be a fan of is Goodman Group. It is an integrated commercial and industrial property group that owns, develops, and manages industrial real estate across the globe.

Goodman has been growing at a solid rate over the last decade thanks to its exposure to growing markets such as ecommerce. This has resulted in strong demand from fellow blue chip customers such as Amazon, Coles Group Ltd (ASX: COL) and Walmart.

And with this strong demand unabating, Goodman appears well positioned for sustainable growth over the 2020s.

Goldman Sachs is bullish on Goodman’s outlook. So much so, it has a buy rating and $25.40 price target on its shares.

The post Experts name 2 blue chip ASX shares to buy that Warren Buffett would love appeared first on The Motley Fool Australia.

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More reading

• The CSL dividend just got updated. How much will you be getting?
• The CSL share price is still trading just 10% above its COVID-crash low. Is it a buy?
• Fundie reveals the 2 ASX shares he’d buy and hold for 4 years
• Should all ASX investors be buying defensive shares right now?
• Why is the CSL share price on the slide 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 positions in and has recommended CSL Ltd. 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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The Qantas Airways Limited (ASX: QAN) share price slid into the red on Friday, ending the day 0.19% lower at $5.24.

It comes amid the airline posting its sustainability report for 2022.

Fellow ASX airline share Air New Zealand Limited (ASX: AIZ) ended the day up 0.84%, while the S&P/ASX 200 Industrials Index (ASX: XNJ), of which Qantas is a part, closed down 0.24%.

Additionally, Qantas also posted its 2022 annual report on Friday. This revealed the company paid chief executive Alan Joyce $2.3 million last year, a rise of 15 per cent, as my Foolish colleague Seb reported.

Let’s go over the highlights of the sustainability report.

What did Qantas announce?

• 29 million single-use plastics removed
• 37.4% of women in leadership
• US$200M (AU$292.70M) Qantas and Airbus partnership for domestic sustainable aviation fuel (SAF) production
• 24% improvement in total recordable injury frequency rate (TRIFR)

Qantas stated that it had incorporated environmental, social and governance (ESG) policies into its financial framework, with a long-term view of decarbonising its fleet. This will be achieved partly by tying executive pay with its climate targets.

The airline is tackling climate change through the implementation of several strategies. These include improving the fuel efficiency of its fleet, with the end goal of using hydrogen propulsion technology. Another strategy is to offset its carbon emissions by investing in Australian and international projects that benefit their local communities.

A target of reducing emissions by 25% by 2030 was given as one of the first milestones. It also aims to reach net-zero emissions by 2050.

What did management say?

Qantas chairman Richard Goyder said:

This year, following the release of the Qantas Group’s Climate Action Plan, sustainability became one of the four key foundations for the Group, and one of the seven focus areas of the Group Corporate Strategy. As of this year, executive remuneration is also linked to a climate-related target.

CEO Joyce also commented:

In 2019, Qantas became only the second airline group in the world to commit to net-zero carbon emissions by 2050. In March this year, in the Qantas Group Climate Action Plan, we set out the steps we’ll take to get there, including an interim target of 25 per cent carbon emission reduction and a sustainable aviation fuel (SAF) target of 10 per cent in our fuel mix, both by 2030.

Joyce continued:

SAF is the key lever we have to reduce emissions, particularly while new low-emission aircraft technology is still decades away. In January, we started using blended SAF on the Kangaroo route between London and Sydney, and we signed a deal to uplift SAF from Californian ports from 2025.

Qantas share price snapshot

The Qantas share price is up around 2% this year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down around 9% over the same period.

The airline has a market capitalisation is $9.92 billion.

The post Qantas share price ends week in the red despite green update appeared first on The Motley Fool Australia.

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More reading

• Qantas share price edges lower amid Alan Joyce’s $2.3 million FY22 pay packet
• Could you be holding onto ‘zombie’ ASX shares hoping for new life?
• ‘Reckless?’ Why the $400 million Qantas share buyback is dividing experts
• Qantas share price falls alongside ASX 200 despite surging airfares
• Up 11% in a month, have would-be investors missed the flight on Qantas shares?

Motley Fool contributor Matthew Farley 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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Shares of Australia and New Zealand Banking Group Ltd (ASX: ANZ) are under the spotlight as the big ASX bank share tries to catch up with its rivals.

The bank has been working on transforming its operations by using technology to improve its customer service and accelerate change.

As reported by The Age, according to Macquarie Research and APRA, ANZ’s market share in housing declined by more than 100 basis points (or 1%) over the year to 31 July 2022.

The bank’s leadership team has been considering how to regain momentum and get the bank back to underlying growth.

A focus on technology

ANZ’s chair Paul O’Sullivan, who has been in the position since October 2020, said (according to the Australian Financial Review):

We’re transforming the bank to make sure that it’s able to lead the next phase. And I’m not ashamed of saying to the staff we should be aspiring to lead in what we do. What does that mean?

That means you’ve got to have a really modern technology capability internally, which reflects the speed at which society wants to engage and reduces friction. You’ve got to have a really deep understanding of the financial wellbeing needs of the community and how you meet them.

And you’ve got to be socially responsible and good at meeting community issues. And so, we get that right, then we set that up really well for the longer term.

However, O’Sullivan has acknowledged that customers are underwhelmed about ANZ Plus, though it’s the behind-the-scenes technology changes that are exciting people within ANZ.

O’Sullivan said the current situation within ANZ is like a “home renovation where you’ve knocked down the back of the house and your mates all think it’s just taking forever”. However, the ANZ leadership figure thinks it’s worth spending time on and getting right because it’s what ANZ could end up using for the next two or three decades.

The bank could have spent money on an off-the-shelf platform, but ANZ wants to be able to customise its offering for customers and do things that are “innovative”.

O’Sullivan said:

I think it’s the right decision. Invariably, you’re going to get a bit of a shellacking on the way through because it is different. It does take time, it’s been more complex. But once it’s done, coming back to the transformation, I think that puts us in a really strong position to be able to do things that are different and innovative with its customers.

Some brokers have suggested that ANZ is buying the banking division of Suncorp Group Ltd (ASX: SUN) to recapture some of the lost market share.

But, while O’Sullivan did acknowledge that the takeover increases ANZ’s exposure to households and increases exposure to Queensland, it’s not just about getting bigger for no reason – he believes it’s the right thing to do for the long-term interests of the business.

Recent broker rating

One of the latest brokers to have their say on ANZ is Macquarie, which rates it as a buy with an ANZ share price target of $24. That implies a small rise over the next year.

It thinks that banks can profit from increasing central bank interest rates and slower increases for savers.

The post ‘It’s a bit like a home renovation’: What does the future look like for ANZ shares? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Why is the NAB share price diving more than the other big 4 ASX banks today?
• Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie
• Down 19% since April, is the ANZ share price in the buy zone?
• Savings or dividends? What these 3 ASX bank shares are offering for income

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 Macquarie Group Limited. 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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