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S&P/ASX 200 Index (ASX: XJO) gold shares recently all reported their full 2022 financial year (FY22) results or half-year results.

And to get straight to the point, all five of them paid a final or interim dividend.

But income investors should bear in mind that ASX 200 gold shares are cyclical by nature. They generally see revenues and profits increase when gold prices rise and fall when the yellow metal slips.

That means that their dividend payouts can likewise be cyclical in nature.

Bullion hit highs of US$2,050 per ounce on 8 March this year and has since retraced to the current US$1,750 per ounce.

Should the gold price increase over the coming year, ASX 200 gold shares are likely to pay out higher dividends. Should bullion drop, dividend payouts from the big miners will likely take a hit.

With that said…

What kind of dividends do the biggest two ASX 200 gold shares pay?

We’ll start with the biggest of the ASX 200 gold shares, Newcrest Mining Ltd (ASX: NCM), with a market cap of $15 billion.

Newcrest pays a 2.3% trailing dividend yield, fully franked.

In its FY22 results, Newcrest reported US$872 million in underlying profit, down 25% year on year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) were also down 16% to US$2.05 billion.

The gold miner paid a final dividend of 20 US cents per share, half its final dividend payout in FY21.

Moving on, Northern Star Resources Ltd (ASX: NST), Australia’s second biggest gold miner, has a market cap of $8.4 billion.

Northern Star pays a trailing dividend yield of 2.9%, fully franked.

In its FY22 results, the miner reported a 35% year-on-year increase in total revenue up to $3.74 billion. Despite the total revenue boost, underlying net profit after tax (NPAT) dropped 27% to $273 million.

Northern Star declared a final dividend of 11.5 cents per share, down 43% from the final dividend paid in FY21.

Three other top gold stocks paying dividends

Working our way down the list to the third biggest ASX 200 gold share, Evolution Mining Ltd (ASX: EVN) has a market cap of $3.9 billion. The gold explorer and producer pays a fully-franked trailing dividend yield of 2.7%.

Evolution’s FY22 results revealed a 22% year-on-year decrease in underlying NPAT to $274.7 million. That’s despite an 11% increase in total revenue to $2.06 billion

Evolution declared a final fully-franked dividend of 3 cents per share, down from 5 cents per share in FY21.

Our number four ASX 200 gold share, Perseus Mining Limited (ASX: PRU) has a market cap of $2 billion.

Perseus pays a trailing dividend yield of 1.5%, unfranked.

Unlike its bigger cousins, in its FY22 results Perseus reported a 66% year-on-year increase in revenue, to $1.13 billion, and record NPAT from ordinary activities of $280 million, up 101% from FY21.

Perseus declared a final dividend of 1.64 cents per share.

Leaving off with the smallest of the ASX 200 gold shares, Gold Road Resources Ltd (ASX: GOR) has a market cap of $1.4 billion.

Gold Road pays a trailing dividend yield of 1.2%, fully franked.

The company reported some strong half-year results, with a 109% boost in NPAT to $40 million. Revenue was up by 51.6% to $197 million.

This saw the miner double its interim dividend payout from the prior corresponding period to 1 cent per share.

The post Do ASX 200 gold shares pay regular dividends? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 gold shares having such a hard time of it in 2022?
• Why is the Northern Star share price losing its shine on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday

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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The Core Lithium Ltd (ASX: CXO) share price has been in fine form in the past week.

At the time of writing, shares in the lithium producer are up 4.43% to $1.593.

This means since last Thursday, the share is up 13.75%.

In contrast, the S&P/ASX 200 Materials (ASX: XMJ) index is roaring 2.35% today, but down 5.33% in a week.

Let’s take a look at what driving the company’s shares forward while the broader index remains sluggish.

What’s happened to the Core Lithium share price?

After rocketing to a near all-time high of $1.665 on 16 August, the Core Lithium share price took a breather.

The share slumped almost 25% in the two weeks after as investors booked a tidy profit.

Notably, the relative strength index (RSI) climbed to 79 on 15 August – just before the share was heavily sold off.

However, this didn’t stop Core Lithium shares from quickly rebounding as sentiment picked up across the market.

Earlier this week, ABC News reported that electric vehicle (EV) sales recorded their highest levels ever.

This bodes well for the company as it’s targeting its first production of spodumene concentrate by the end of 2022.

With EVs becoming more mainstream in the Australian market, Core Lithium is well placed to respond to demand.

Recently, the company announced it significantly increased the Mineral Resource Estimate and Ore Reserves Estimate for the Finniss Lithium Project.

Core Lithium wholly owns the Finniss Lithium Project, located just south of Darwin Port in the Northern Territory.

The Core Lithium share price has rocketed to more than 350% over the past year, and is up almost 170% year to date.

Based on today’s price, Core Lithium commands a market capitalisation of roughly $2.64 billion.

The post Why has the Core Lithium share price gained 13% in the past week? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX lithium stocks having such a stellar run today?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Scott Phillips.

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After the horrible day the S&P/ASX 200 Index (ASX: XJO) had yesterday, investors will be pleased with the health gains we’ve seen today. At the time of writing, the ASX 200 has put on a decisive 1.62% to back over 6,830 points.

So let’s dive deeper into these solid gains and take a look at the ASX 200 shares currently at the top of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Core Lithium Ltd (ASX: CXO)

ASX 200 lithium share Core Lithium is our first company to examine this Thursday. So far during today’s trading session, a decent 22.43 million Core Lithium shares have changed owners. We haven’t had any new announcements from the company today.

However, that hasn’t stopped it from leaping 4.26% today to $1.59 a share at the time of writing. This push higher probably explains the elevated volumes we are seeing.

As my Fool colleague Brooke covered this afternoon, most ASX lithium shares are in demand today following some love from ASX brokers, as well as a series of positive developments for the sector.

Lake Resources N.L. (ASX: LKE)

Another ASX 200 lithium stock is next up in Lake Resources. This Thursday has seen a chunky 24.86 million Lake shares swim across the ASX so far today.

This looks like a very similar situation to Core Lithium here. The Lake Resources share price has done one better though and is currently up an eye-catching 9.5% at $1.325 a share. With a gain of this size, it’s perhaps no wonder so many Lake shares are flying around.

Pilbara Minerals Ltd (ASX: PLS)

Well, surprise, surprise, our most traded ASX 200 share today is yet another lithium producer in Pilbara Minerals. Pilbara has seen a whopping 33.82 million of its shares swapped on the ASX today. Again, we have no new news to speak of.

But Pilbara shares are also enjoying the sunshine that investors are shining in its sector today. In Pilbara’s case, it’s currently trading for $4.225, a 6.96% gain. Indeed, Pilbara hit a new all-time high of $4.24 a share earlier in today’s session, which is probably contributing to the volumes we are seeing as well.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why has the Core Lithium share price gained 13% in the past week?
• Why is the Pilbara Minerals share price surging 6% to another all-time high today?
• 4 ASX lithium shares hitting all-time highs on Thursday
• Why is the Lake Resources share price leaping 10% on Thursday?
• Why are ASX lithium stocks having such a stellar run today?

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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The Piedmont Lithium Inc (ASX: PLL) share price is rocketing higher on Thursday despite the company’s silence.

Though, it’s been a big week for ASX lithium shares, perhaps partly due to comments made by the company’s boss.

The Piedmont Lithium share price is 91.5 cents right now. That marks a 5.78% gain on Thursday.

For context, the All Ordinaries Index (ASX: XAO) is up 1.61% right now.

So, what might be boosting the US-focused lithium developer’s stock? Let’s take a look.

What’s driving the Piedmont Lithium share price today?

ASX lithium share Piedmont Lithium is joining many of its peers in the green on Thursday.

Indeed, the S&P/ASX 200 Materials Index (ASX: XMJ) is one of the S&P/ASX 200 Index (ASX: XJO)’s best-performing sectors today. It’s gaining 2.4% at the time of writing compared to the index’s 1.6% gain. And lithium shares are leading its gains for no obvious reason. Though, there’s been plenty to drive sentiment for the sector this week.

Firstly, experts, including Piedmont Lithium CEO Keith Phillips, have voiced concerns supply shortages of the material could continue for years.

Speaking to Yahoo Finance earlier this week, Phillips said the world might not to able to produce enough lithium to sate some aspirational electric vehicle take-up targets. He continued:

There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] production [to meet some 2035 targets].

The world has changed… We’re now in an era where everyone’s going to want an electric car. The car companies can’t make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.

On that note, Australians have been snapping up electric vehicles at record rates.

According to data from the Federal Chamber of Automotive Industries, released on Monday, a record 4.4% of all cars sold in Australia in August were electric. Tesla Inc (NASDAQ: TSLA)’s Model 3 was Australia’s fourth best-selling car last month.

Looking further back, 2% of cars sold in the country so far this year are battery powered.

Such happenings may have driven sentiment for ASX lithium shares this week and, in turn, could be boosting the Piedmont Lithium share price today.

The post Why is the Piedmont Lithium share price popping 6% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium stocks having such a stellar run today?
• Where does Tesla get its lithium and do any ASX shares benefit?
• Piedmont Lithium share price falls 5% after plans to build the largest US lithium plant unveiled
• Why is the Piedmont Lithium share price plunging 10% today?
• Why are ASX lithium shares having such a cracking start to the week?

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 positions in and has recommended Tesla. 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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When Neil Armstrong first stepped on the moon, he said, “That’s one small step for man, one giant leap for mankind”. Since that day, countless others have turned their heads towards the skies and dreamed of reaching space.

Unfortunately, that dream appears to have been one step too far for Electro Optic Systems (ASX: EOS) and its share price on Thursday.

At the time of writing, shares in the defence and space systems company are swapping hands for 51.5 cents apiece. This means the Electro Optic Systems share price is down 28.5% from yesterday’s closing price.

What occurred today?

Today, Electro Optic Systems released its results for the first half of the 2022 financial year. They were the very first set of results under the helm of new chief executive Andreas Schwer, who joined the company just over a month ago. 

It was Clive Cuthell, the new company CFO, who had the harder task, releasing a disappointing set of results only three days after joining the company.

The Motley Fool Australia reported on the first half results earlier today. In short, whatever way you look at it, it was an ugly set of numbers.

In the company’s defence, many of the reasons for the poor results were out of its control. Delayed customer contract awards and supply chain challenges meant it was hard for the company to win new projects, and also caused delays in existing projects. It’s hard to deliver a remote weapon system and turret to a customer when the customer hasn’t already received the vehicle it is to be installed upon.

However, the major story is not the numbers but a significant shift in its strategy.

A change of plans

For the better part of a year, the major focus for Electro Optic Systems has been its mid-Earth orbit satellite constellation known as ‘Spacelink’.

The company claimed that Spacelink when launched, would be able to offer continuous, real-time data connectivity to satellites. The issue is that Spacelink also required significant capital, a task made harder by capital markets drying up for such projects.

It appears this capital might have been for nothing, with the new management setting December 2022 as the day of reckoning when Spacelink must be sold. If it can’t be sold, management will look at all other options, including liquidating the business. Either way, Spacelink will no longer be a priority, and a $54.4 million write-down will be hitting the company’s books.

Instead, Electro Optic Systems appears to want to keep its feet on the ground.

Steps forward for the Electro Optic Systems share price

In short, quite like many other former highflyers, the company is drawing a line in the sand and focusing on profit. Still, management is also keen to stress that it isn’t all doom and gloom.

Firstly, Electro Optic Systems has not lost any of the contracts it has been awarded. In fact, it has some new opportunities in the pipeline. One example is the potential to offer remote weapon systems to Ukraine. This might provide a short-term boost to revenue whilst it waits for delays in its other contracts to subside.

If Electro Optic Systems can get this shift right, a new, more profitable, and lower-risk version of the company could arise. Albeit possibly one with lower growth potential. 

However, this requires a bit of faith from investors. Many of whom may find such faith in short supply given the company’s financial and stock price performance over the last year.

The Electro Optic Systems share price is back to where it was when revenue was only a fraction of what it is now. If it can become a profitable and more sustainable company, this might be an interesting entry point for those willing to take the risk and be (very) patient.

It could take years for the company to return to a better place, and there are a lot of obstacles it will need to overcome in the meantime.

The post Is the Electro Optic Systems share price now a massive bargain or a falling knife? appeared first on The Motley Fool Australia.

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More reading

• Why is ASX behemoth Soul Patts lending a hand to Electro Optic Systems?
• Electro Optic Systems share price crashes 35% after first-half shocker
• Why is the Electro Optic Systems share price frozen today?
• Why has the Electro Optic Systems share price soared 16% in 2 days?

Motley Fool contributor Andrew Legget 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 Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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 Novonix Ltd (ASX: NVX) share price is shooting higher today, continuing to climb during afternoon trade.

Shares of the battery metals and technology company are currently trading 10.68% higher at $2.28 each, just under their intraday high of $2.29 a share.

The company’s home sector, the S&P/ASX 200 Info Technology Index (ASX: XIJ), is also up 2.83% today.

So let’s see what may be setting the Novonix share price alight today.

What’s going on with the Novonix share price?

There have been no announcements from the company since the end of August. However, it seems Novonix might be riding the wave of positive sentiment for ASX lithium shares on the market today.

Although Novonix isn’t strictly a lithium share, a core part of its business is developing technology for lithium-ion batteries.

The share prices of lithium miners Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE) hit new all-time highs today.

Pilbara is currently trading at its record price of $4.22 a share, up 6.84% on the day, while Allkem hit $15.02 a share this afternoon. It’s currently trading at $14.985 a share, 6.43% higher.

At a broader level, the Chinese spot price of lithium carbonate has also risen slightly since Friday last week, gaining 1.47% to 482500 RMB (AU$ 102,878) per tonne. However, it’s still trading significantly below its record high of 497500 RMB (AU$ 106,069) per tonne achieved in March.

Other indices are also in the green on Thursday, including the S&P/ASX 200 Index (ASX: XJO), up 1.6%, and the S&P/ASX 300 Metals and Mining Index (ASX: XMM), up 2.48%.

So it seems that the Novonix share price rally can be explained through broader movements in the market as optimism for lithium abounds.

Novonix share price snapshot

The Novonix share price is enjoying some time in the sun today amid shedding 75% this year to date. For context, the S&P/ASX 200 Index is down around 10% over the same period.

The company’s market capitalisation is around $1.1 billion.

The post Why is the Novonix share price soaring 11% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price smashing the ASX 200 on Wednesday?
• Slide continues: Novonix share price dumps 14% in 2 days
• Why did the Novonix share price crumble 14% in August?
• Why is the Novonix share price slumping 6% on Thursday?
• Novonix share price lifts despite full-year loss deepening to $71 million

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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and $41.00 price target on this gaming technology company’s shares. While the broker acknowledges that Aristocrat’s digital business is facing tough trading conditions, it believes its land-based business continues to perform well. So much so, the broker feels it could surprise the market with its earnings. The Aristocrat share price is trading at $34.80.

Metcash Limited (ASX: MTS)

A note out of Ord Minnett reveals that its analysts have upgraded this wholesaler’s shares to a buy rating with an improved price target of $5.00. This follows the release of a solid trading update at its annual general meeting this week which revealed that its sales have been strong early in FY 2023. The broker has lifted its earnings estimates to reflect this. The Metcash share price is fetching $4.14 this afternoon.

ResMed Inc. (ASX: RMD)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this sleep treatment company’s shares to $40.00. This follows news that its rival Philips has been hit with another product recall. Credit Suisse suspects that this could lead to market share gains for ResMed and had bumped its estimates higher to reflect this. The ResMed share price is trading at $34.35 today.

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

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More reading

• Here’s why the ResMed share price is charging higher today
• 3 ASX 300 healthcare share winners on Wednesday
• Here are the top 10 ASX 200 shares today
• Morgans names 3 more of the best ASX shares to buy in September
• 2 discounted ASX shares I’d buy now and one I wouldn’t touch: expert

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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 Zip Co Ltd (ASX: ZIP) share price is shooting the lights out today.

After tumbling 6.81% since this time last week, shares in the buy-now, pay-later (BNPL) provider are making a comeback.

This is despite the company not releasing any announcements to the market today.

At the time of writing, Zip shares are trading 7.19% higher at 90 cents apiece.

What’s driving Zip shares upwards today?

The Zip share price is on the move following a strong rally across Wall Street overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) lifted 1.4% in what has become the best day on the index since 10 August.

Despite the growing risk of recession in the US as further rate hikes appear likely by the Federal Reserve, investors shrugged off the negative news.

Furthermore, the S&P 500 Index (SP: .INX) and tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) also recorded strong gains last night, up 1.83% and 2.14%, respectively.

This has had a positive impact on the ASX, particularly the S&P/ASX 200 Financials Index (ASX: XFJ), in which Zip belongs.

Currently, the sector is 1.58% higher at 6,108.5 points.

Other ASX BNPL companies gaining a boost today include mobile payment provider Block Inc CDI (ASX: SQ2) and Sezzle Inc (ASX: SZL). They are up 3.82% and 5.26%, respectively.

Earlier this week, the Reserve Bank of Australia (RBA) lifted its official cash rate by another 50 basis points to 2.35%.

While this is the highest level it has been since early 2015, the RBA is using its toolkit to curb inflation.

For now, the market appears to have priced in the latest rate hike. However, where Zip shares go from here will largely depend on what happens in the US.

The Federal Reserve is widely anticipated to lift rates again next week.

Zip share price snapshot

Despite today’s rally, the Zip share price has plunged 87% over the past 12 months and is down 79% year to date.

Based on today’s price, Zip presides a market capitalisation of around $6.15 million.

The post Why is the Zip share price charging 7% higher on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Zip share price jumps as broker goes on myth-busting bender
• The Zip share price slid 15% in August. What went wrong?
• Rejected: Zip share price slips following latest blow
• August’s RBA rate hike saw investors favour Macquarie and BHP shares. Here’s what to expect in September: expert
• These are the 10 most shorted ASX shares

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 positions in and has recommended 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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The Betashares Nasdaq 100 ETF (ASX: NDQ) is currently up by 2.28% as investors buy into the exchange-traded fund (ETF).

As readers may already be aware, this ETF looks to track 100 of the biggest non-financial businesses on the NASDAQ.

The important thing to note is that the performance of ETFs is dictated by the returns of the underlying holdings they own in the portfolio. If the group of businesses collectively go up in value, this benefits the ETF as well.

Overnight, United States shares had a strong run and this has helped the Betashares Nasdaq 100 ETF.

What happened overnight?

Considering Apple, Microsoft, Amazon.com, Tesla and Alphabet make up more than 40% of the portfolio, let’s look at how those particular businesses’ share prices performed.

The Apple share price went up by 0.9%.

The Microsoft share price rose by 1.9%.

The Amazon share price has risen 2.7%.

The Alphabet share price climbed 2.5%.

The Tesla share price was the strongest riser of the group, increasing 3.4%.

Why did the share market rise?

Share prices change all the time, some days businesses go up in value and sometimes they drop.

2022 has seen some big declines, but some investors may be seeing an opportunity, which is helping the Betashares Nasdaq 100 ETF.

According to reporting by CNBC, the reason for the positive day on the US share market was that Fed vice chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far. CNBC suggested that investors focused on the point of going too far.

Brainard said:

At some point in the tightening cycle, the risks will become more two-sided. The rapidity of the tightening cycle and its global nature, as well as the uncertainty around the pace at which the effects of tighter financial conditions are working their way through aggregate demand, create risks associated with overtightening.

This could be good news because it may mean light at the end of the tunnel when it comes to interest rate rises stopping.

Interest rates are important because they can affect the valuation of most, or all, assets. As Ray Dalio, founder of Bridgewater Associates, once said:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

Betashares Nasdaq 100 ETF share price snapshot

Despite today’s rise, the NDQ ETF is still down by around 4.5% over the last month and 22% in 2022.

The post Why is the Betashares Nasdaq 100 ETF leaping ahead on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Is the BetaShares NASDAQ 100 ETF the best index fund on the ASX?
• 2 of the best ETFs for ASX investors to buy in September
• Why is the Betashares Nasdaq 100 ETF (NDQ) tumbling 4% on Monday?
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• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. 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 Fortescue Metals Group Ltd (ASX: FMG) share price is on the rise today.

The mining giant’s shares are currently trading at $16.74 each, a 4.63% gain.

Let’s take a look at what could be impacting the Fortescue share price today.

Iron ore demand lifts

Fortescue is a global iron ore producer based in Western Australia, supplying iron ore to China.

China’s iron ore imports increased 5.44% to 96.2 million tonnes in August, an ANZ research report released today shows. However, they are down 1.32% compared to the same time last year.

Authors Daniel Hynes and Soni Kumari said:

Iron ore imports were also higher than July levels as mills tentatively restocked ahead of the construction season.

The data showed coal, copper, iron ore, and natural gas imports also lifted in August. The report’s authors said China’s commodity imports are improving, but they also referred to the impact of China’s lockdowns, saying:

[China’s] zero-COVID strategy is creating headwinds and has kept demand below last year’s levels for many markets. Stronger growth is unlikely until these issues are resolved.

In FY22, Fortescue produced a record 189 million tonnes of iron ore for shipment around the world. The company reported a net profit after tax (NPAT) of US$6.2 billion and declared a fully franked final dividend of $1.21 per share.

Fortescue shares went ex-dividend on Monday 5 September with the dividend to be paid on 29 September.

Meantime, the iron ore price is currently down 1.01%, fetching US$98.5 per tonne, Trading Economics data shows.

Share price snapshot

The Fortescue share price is down around 7% in the past year, losing almost 13% year to date.

Fortescue has a market capitalisation of about $51 billion based on the current share price.

The post Fortescue share price strengthens amid boost in China’s iron ore appetite in August appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares getting blasted on Wednesday?
• The Fortescue share price has cratered 13% in a week. What’s going on?
• Could this be a blow to the fortunes of Fortescue Future Industries?
• Can you buy shares in Fortescue Future Industries?
• Why Adairs, Fortescue, PointsBet, and Qantas shares are dropping

Motley Fool contributor Monica O’Shea 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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