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When it comes to exchange-traded funds (ETFs) on the ASX, the iShares S&P 500 ETF (ASX: IVV) is certainly a heavy hitter. It’s not quite the most popular ETF on the ASX. That honour goes to the Vanguard Australian Shares Index ETF (ASX: VAS).

But the iShares S&P 500 ETF is the most popular ETF on the ASX that covers international shares. It even beats out the Vanguard MSCI International Shares Index ETF (ASX: VGS).

There’s little doubt that, apart from some good old-fashioned home bias, investors that prefer ASX share-based ETFs enjoy the higher dividends, and franking, that come with them. But what of the S&P 500 ETF?

Well, investors in this ETF also enjoy dividend returns. For an index ETF to be able to pay out dividends, the underlying shares that the ETF owns must also pay out dividends.

The iShares S&P 500 ETF covers the largest 500 companies listed on the United States markets. And many of these companies (though not all) do pay out dividends to their investors. As such, so does the ETF that tracks them.

Which US shares in the S&P 500 ETF pay dividends?

Let’s check out some of this fund’s top holdings to illustrate. On the latest figures, the S&P 500 ETF’s top 10 holdings are:

1. Apple Inc (NASDAQ: AAPL)
2. Microsoft Corporation (NASDAQ: MSFT)
3. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
4. Amazon.com Inc (NASDAQ: AMZN)
5. Tesla Inc (NASDAQ: TSLA)
6. Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B)
7. UnitedHealth Group Inc (NYSE: UNH)
8. Johnson & Johnson (NYSE: JNJ)
9. Exxon Mobil Corp (NYSE: XOM)
10. Meta Platforms Inc (NASDAQ: META).

Now, several of these shares do not pay dividends. Those are Alphabet, Meta, Amazon, Tesla, and (famously) Berkshire Hathaway.

But Apple, Microsoft, UnitedHealth, Johnson & Johnson, and Exxon, do. As do many other stalwarts of the S&P 500, such as Coca-Cola Co, Procter & Gamble Co, Visa Inc, and McDonald’s Corp.

So yes, since the S&P 500 ETF receives these dividends from holding these stocks, it passes them on in the form of dividend distributions.

So what are these dividend distributions worth? Well, this ETF pays out its income every three months. Its last four dividend distributions, covering the previous 12 months, came to a total of $7.43 per unit.

On the current unit price of $580.57 for the iShares S&P 500 ETF, it has a trailing distribution yield of 1.28%.

That might not be as high as the Vanguard Australian Shares ETF. But it certainly does qualify the iShares S&P 500 ETF as a dividend-paying fund.

The iShares S&P 500 ETF charges a management fee of 0.04% per annum.

The post Does the iShares S&P 500 ETF (IVV) pay dividends? appeared first on The Motley Fool Australia.

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More reading

• 3 quality ETFs for ASX investors in September
• How does VGS stack up against other ASX index funds?
• Here’s why the iShares S&P 500 ETF (IVV) has climbed 7% in a month
• 3 top ETFs for ASX investors to buy next week

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, 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 Sebastian Bowen has positions in Alphabet (A shares), Apple, Coca-Cola, Johnson & Johnson, McDonald’s, Meta Platforms, Inc., Microsoft, Procter & Gamble, Tesla, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., Microsoft, Tesla, Vanguard MSCI Index International Shares ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 ETF. 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 Woolworths Group Ltd (ASX: WOW) share price is edging higher on Tuesday.

In afternoon trade, the retail giant’s shares are up slightly to $37.10.

Why is the Woolworths share price edging higher?

While the Woolworths share price has been up and down all day, it was given a little lift by an announcement after lunch.

That announcement reveals that Mydeal.com Au Ltd (ASX: MYD) has completed its shareholder vote relating to being acquired by Woolworths.

According to the release, shareholders have voted overwhelmingly in favour of the $1.05 cash per share deal.

A total of 99.89% of the votes cast by scheme shareholders were in favour of the $243 million transaction, which will see Woolworths acquire an 80% stake. The remaining 20% will be retained by MyDeal’s founder and CEO, Sean Senvirtne, along with certain other key management shareholders.

With ACCC approval already granted, the deal now looks set to close successfully next week on 14 September before being implemented on 23 September.

Why is Woolworths acquiring MyDeal?

Woolworths hasn’t commented on the deal today, but has previously explained that it sees the acquisition as a way to enhance its marketplace capabilities. It said:

MyDeal will enhance Woolworths Group’s marketplace capabilities, particularly in furniture, homewares and other bulky goods. It will complement BIG W’s existing general merchandise offer and is consistent with Woolworths Group’s strategy to ‘Connect our customers with Good Food and More Everyday’. For MyDeal, access to Woolworths Group’s platforms and capabilities will support its continued growth.

Woolworths’ CEO, Brad Banducci, added:

The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.

The post Woolworths share price edges higher as shareholders green light MyDeal takeover appeared first on The Motley Fool Australia.

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More reading

• Are Woolworths shares good value in September?
• Goldman Sachs says these ASX dividend shares are buys
• Here are the top 10 ASX 200 shares today
• Is the Endeavour share price a bargain after its big tumble in August?
• How did ASX 200 dividend shares stack up in August?

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

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Four of the S&P/ASX 200 Index (ASX: XJO)’s biggest energy shares – AGL Energy Limited (ASX: AGL), Origin Energy Ltd (ASX: ORG), Santos Ltd (ASX: STO), and Woodside Energy Group Ltd (ASX: WDS) – have been put on notice by HESTA.

The $68 billion superannuation monolith has a new target to slash emissions by 50% across its portfolio by 2030.

To get there, it’s demanding that the energy giants show that their climate change strategies align with the Paris Agreement goals. They may be dumped from the fund’s portfolio if they fail to meet its objectives.

The S&P/ASX 200 Energy Index (ASX: XEJ) is trading in the green today, gaining 0.27%. Meanwhile, the ASX 200 is up 0.18%.

Looking to the four stocks put on HESTA’s watchlist, the Santos share price is in the lead, having slipped 0.06%.

The Woodside share price is coming in next best, falling 0.3%, while shares in AGL and Origin are down 1.5% and 2% respectively.

Let’s take a closer look at the super fund’s latest move towards net zero.

HESTA issues warning to ASX 200 energy shares

HESTA has lifted its interim emissions reduction target to 50% by 2030, up from 33%, across its portfolio on a 2020 baseline. That will see it well on the way to achieving its net zero emissions target by 2050.

The fund has also written to the chairs of four ASX 200 energy shares found to be facing “significant decarbonisation challenges”. It’s concerned with disparities between the companies’ strategic targets and a 1.5 degree Celsius transition pathway.

The four stocks will now face closer engagement and monitoring by the fund. It has asked Origin, Santos, and Woodside how final investment decisions on major projects align with a 1.5 degrees Celsius pathway.

HESTA’s framework also considers voting against ‘say on climate’ resolutions and directors’ elections, and supporting or filing shareholder resolutions. It also allows for divestment where there’s a lack of evidence of addressing risks, and it’s in members’ best financial interests.

HESTA invests around $720 million in the four ASX 200 shares, the Australian Financial Review (AFR) reports.

Speaking to the publication, HESTA CEO Debby Blakey said:

We would like to see faster progress … There’s some incredible information as to this being the decade where we have to act.

HESTA voted against the climate plans of Santos and Woodside in May this year. It also took on the lead engager role through Climate Action 100+ as part of its escalation with AGL.

The fund already excludes companies dependent on thermal coal. That includes ASX 200 share Whitehaven Coal Ltd (ASX: WHC), which is currently trading at a record high.

The post ‘We would like to see faster progress’: ASX 200 energy shares on notice appeared first on The Motley Fool Australia.

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More reading

• The Woodside share price has gained under 5% in 10 years. Does the latest monster dividend make up for this?
• How are ASX 200 energy stocks performing on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price surging ahead on Monday?

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There are thousands of cryptocurrencies out there, but few can match the ecosystem or activity of Ethereum (CRYPTO: ETH). With a market cap approaching $190 billion, Ethereum trails only Bitcoin (CRYPTO: BTC) in terms of market value, and it is by far the largest smart contract platform in the world. Here are three top reasons all investors should consider getting some exposure to Ethereum. 

Ethereum has a deep ecosystem 

Neil Patel: Launched in 2015, Ethereum is the world’s first functional blockchain, allowing the ability for smart contracts to be built on top of the network. Smart contracts are computer programs that execute automatically when two unrelated parties meet the conditions of a particular transaction. The need for middlemen is completely eliminated. For example, think of collateral that becomes unencumbered once a loan is fully repaid. All of this is possible thanks to software called the Ethereum Virtual Machine, which runs these smart contracts. 

This setup differs completely from Bitcoin, which was created with the sole purpose of being a peer-to-peer digital cash system. And unsurprisingly, it’s why Ethereum has attracted the most engineers and computer scientists working on expanding the platform. According to venture capital firm Electric Capital, at the end of 2021, there were more than 4,000 monthly active developers working on Ethereum, with 20% of new Web3 developers joining this blockchain. That’s a significant share. 

As a result, Ethereum now has the biggest ecosystem of decentralized applications (dApps) compared to any other cryptocurrency out there. There are nearly 3,000 dApps running on Ethereum, according to the non-profit crypto directory State of the DApps. They can have various use cases ranging from decentralized finance protocols and gaming to social media and marketplaces for non-fungible tokens. And although the overall market has taken a beating in 2022, $36.5 million in dApp transaction volume occurred on Ethereum over the past 24 hours (as of this writing). 

The incredibly deep ecosystem surrounding Ethereum increases its chances of continuing to create real-world utility and greater user adoption over time. And that’s a compelling reason to buy this cryptocurrency and hold it for the long haul.

Ethereum is about to get even better

RJ Fulton: Out of the plethora of reasons crypto investors should make sure they own some Ethereum, arguably the most compelling one happens to be an event scheduled for launch in just a few weeks. The date isn’t concrete, but sometime between Sept.16 and Sept. 20, Ethereum will be transitioning from the slow, energy-intensive proof-of-work consensus mechanism to a faster, more efficient proof-of-stake consensus mechanism known as the Merge. It’s estimated that the blockchain will use 99% less energy once fully moved over to proof of stake.

It could be a bit of a stretch, but the Merge is arguably one of the most significant events to occur in cryptocurrency history. When considering that the Merge has been under development for the greater part of eight years and now finally has an end in sight, it’s a little difficult to fully grasp that this highly anticipated day is just around the corner.

Once The Merge is fully rolled out, the hope is that Ethereum will become more conducive to the development of applications. On the current proof-of-work mechanism, network fees are high and speeds can be slow, which hampers the efforts of smart-contract developers.

Ethereum’s price skyrocketed over the last two and a half years primarily due to the widespread popularity of the blockchain as the favorite for developers using Ethereum’s smart contracts to build DeFi applications. But that increased popularity has made the network congested and costly to use, warranting a necessary change from proof of work. When Ethereum transitions to proof of stake, the blockchain should be able to support more applications without sacrificing speeds or costs, which will hopefully bring even more utility to the network and greater returns for investors. 

In anticipation of the Merge, it seems as though Ethereum’s popularity is still continuing to escalate. Since the beginning of 2022, Ethereum has added 142,000 validators representing more than a 50% increase. Furthermore, it looks like more users are creating Ethereum-compatible wallets. In just eight months, more than 20 million new wallet addresses were created.

If Ethereum was able to put in a more than 1000% return since 2020 on the clunky proof-of-work consensus mechanism, imagine the long-term value Ethereum will hold once it fully transitions to the streamlined proof-of-stake mechanism. 

Ethereum is still the king of NFTs 

Michael Byrne: While blockchains like Solana (CRYPTO: SOL) and Polygon (CRYPTO: MATIC) have been gaining traction in the world of non-fungible tokens (NFTs), Ethereum is still the 800-pound gorilla in the room when it comes to NFTs. Data from CryptoSlam, an aggregator for NFT data, shows that Ethereum’s all-time NFT sales volume dwarfs those of all other blockchains. Ethereum NFTs have accounted for over $29 billion in sales all time, compared to about $4 billion for the runner-up, Ronin (CRYPTO: RON) (which is almost entirely comprised of Axie Infinity sales), $2.5 billion for Solana, and nearly $1.1 billion for Flow (CRYPTO: FLOW), which is mainly thanks to NBA Top Shot).

While NFT sales on Ronin or Flow are more or less dominated by one high-profile project, Ethereum boasts a deep and well-diversified NFT marketplace, with 11 different collections that have generated over $500 million in sales volume since inception. As the original blockchain that introduced smart contracts to the world and enabled the advent of NFTs, NFTs on Ethereum have a cache that other blockchains have yet to match, and individual pieces from collections like CryptoPunks and Bored Ape Yacht Club have routinely sold for hundreds of thousands of dollars or more. These two collections have a collective value of nearly $3 billion.

Ethereum NFTs have created a large ecosystem of their own. NFT marketplace OpenSea, which originally was exclusively for Ethereum NFTs, was valued at $13 billion in its most recent funding round. Magic Eden, which was previously exclusively for Solana NFTs, achieved unicorn status with a $1.6 billion valuation in its last funding round and recently added Ethereum NFTs to its platform. If you are bullish about the growth of NFTs, Ethereum is a must-own.

With a rich ecosystem, a major upgrade on deck in the form of the Merge, and a dominant position in NFTs, Ethereum is worth a look for all investors. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 reasons to invest in Ethereum right now appeared first on The Motley Fool Australia.

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More reading

• Will Ethereum still be a buy after the merge?
• Is El Salvador’s great Bitcoin experiment fizzling or just getting started?
• September could be a crucial month for these 2 cryptocurrencies
• Ethereum Merge first stage set for tomorrow. What can crypto investors expect next?
• Why did the Dogecoin price tumble 12% in August?

Michael Byrne has positions in Bitcoin, Ethereum, and Solana. Neil Patel has positions in Bitcoin and Ethereum. RJ Fulton has positions in Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, Polygon, and Solana. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Core Lithium Ltd (ASX: CXO) share price is taking off once more today.

At the time of writing, shares in the lithium developer are trading for $1.475 apiece, 8.46% higher than their previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.02% right now.

 So, what might be going on with the ASX 200 materials share today? Let’s take a look.

What’s going on with the Core Lithium share price?

The Core Lithium share price is racking up a decent gain for a second consecutive session, lifting another 8% to trade at its highest point in nearly three weeks.

The lithium favourite also gained 6% yesterday amid a strong performance from its home sector and a top broker’s bullish outlook on lithium prices.

This week’s gains follow a few weeks of poor performance. Indeed, the stock tumbled 20% between its mid-August high of $1.665 – one cent off its all-time high – and Friday’s close of $1.29.

Interestingly, there’s only been outwardly good news from the ASX 200 lithium share over the last month.

The company updated the market on its exploration activities in the middle of August and announced an extension to its offtake negotiations with Tesla Inc (NASDAQ: TSLA) last Monday.

But the Core Lithium share price hasn’t been alone in its recent struggles. The S&P/ASX 200 Materials Index (ASX: XMJ) fell a disastrous 10% between 26 August and 2 September.

Much of that fall occurred on Friday. Then, the sector tumbled 5% as many of its constituents, including resources giant BHP Group Ltd (ASX: BHP) traded ex-dividend.

The Core Lithium share price is leading the sector on Tuesday. It’s out in front of its fellow ASX 200 lithium shares Lake Resources NL (ASX: LKE), Liontown Resources Limited (ASX: LTR), Pilbara Minerals Ltd (ASX: PLS), and Allkem Ltd (ASX: AKE). They’ve gained 7.7%, 5%, 6.3%, and 4.4% respectively at the time of writing.

The post Why is the Core Lithium share price surging 8% on Tuesday? 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 3 most heavily traded ASX 200 shares on Monday
• Why is the Core Lithium share price cruising 5% higher today?
• Where does Tesla get its lithium and do any ASX shares benefit?
• Here are the 3 most heavily traded ASX 200 shares on Friday

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

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S&P/ASX 200 Index (ASX: XJO) gold shares have been struggling in 2022.

Granted, it’s been a tough year for most stocks outside of the energy sector, as witnessed by the 9.5% year-to-date drop in the ASX 200.

But gold stocks have broadly suffered far steeper falls. The S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold shares – is down 27.4% this calendar year.

As for the bigger players, here’s how they’ve held up so far in 2022:

• Newcrest Mining Ltd (ASX: NCM) shares are down 30.4%
• Evolution Mining Ltd (ASX: EVN) shares are down 45.5%
• Northern Star Resources Ltd (ASX: NST) shares are down 22.2%
• Regis Resources Ltd (ASX: RRL) shares are down 16.8%

So why are ASX 200 gold shares struggling lately?

What’s impacting the big gold producers?

The gold miners have faced a number of unwelcome headwinds over the past months.

First, the price of the yellow metal they dig from the ground has been sliding amid fast-rising interest rates. Gold offers no yield. So, when interest rates run higher, it increases the appeal of other haven assets, like cash or higher-yielding bonds.

Bullion reached US$2,050 per ounce on 28 March but has since trended lower as the US Fed and other central banks ramp up rates. Gold is currently trading for US$1,718 per ounce.

ASX 200 gold shares are also being hit with significantly higher costs and a shortage of workers.

According to Datt Capital principal and chief investment officer Emanuel Datt (courtesy of The Australian):

Gold miners across the board are suffering from labour cost increase and shortages in terms of availability. In addition, Evolution’s all-in-cost per ounce of gold produced rose more than 20%, reflecting higher labour costs but also higher capital expenditure needed to maintain production rates.

The Evolution share price, as mentioned above, is down a painful 45.5% in 2022.

With the European Central Bank (ECB) expected to announce it will ramp up rates across the eurozone when the members meet this week, ASX 200 gold shares will likely continue to face pressure on the interest rate front.

On the other side of the coin, any further global geopolitical tensions — of which there are unfortunately plenty — would boost the outlook for gold prices by stoking demand for the classic haven asset.

How have these ASX 200 gold shares performed longer-term?

ASX 200 gold shares are prone to some strong cyclical ups and downs, potentially delivering some big gains, or losses, depending on when investors buy and sell the stock.

For long-term buy-and-hold investors, only one of the miners named above is in the green over the past five years. Namely Northern Star, up 33%.

Meanwhile, Newcrest is down 27% over the five years; Evolution is down 16%; and Regis is down 61%.

The post Why are ASX 200 gold shares having such a hard time of it in 2022? appeared first on The Motley Fool Australia.

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More reading

• Why is the Northern Star share price losing its shine on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

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 Rio Tinto Limited (ASX: RIO) share price is edging lower on Tuesday.

That’s despite the mining giant making an encouraging announcement this afternoon.

At the time of writing, the Rio Tinto share price is down almost 1% to $91.05.

Rio Tinto share price lower despite Turquoise Hill update

Last month, Rio Tinto made an improved non-binding proposal of C$40 cash per share to the Turquoise Hill board to acquire the ~49% of the issued and outstanding shares of Turquoise Hill that it does not currently own. Turquoise Hill is co-owner of the Oyu Tolgoi project in Mongolia.

This offer was then bumped up to C$43 cash per share last week, with an agreement made in principle.

What’s the latest?

The good news is that the transaction has now progressed, with Rio Tinto and Turquoise Hill entering into definitive arrangement agreement today.

According to the release, the Turquoise Hill board of directors unanimously recommends minority shareholders vote in favour of Rio Tinto’s best and final offer. They have also entered into voting support agreements with respect to all of the Turquoise Hill shares they own or control.

Rio Tinto revealed that it has agreed to provide Turquoise Hill with secured short-term liquidity during the transaction period of up to US$1.1 billion. This would need to be repaid from an equity raising in the first half of 2023 if the transaction is not approved by shareholders.

But that won’t be enough to fund the Oyu Tolgoi project alone. Turquoise Hill has estimated that it requires US$3.6 billion of additional funding in total to complete the project. Therefore, Rio Tinto acquiring the company delivers certainty for the financing needs and alleviates any further funding risks for Turquoise Hill shareholders.

Management commentary

Rio Tinto’s chief executive, Jakob Stausholm, was pleased with the news. He said:

This Transaction will simplify governance, improve efficiency and create greater certainty of funding for the long-term success of the Oyu Tolgoi project. Rio Tinto’s offer guarantees Turquoise Hill’s minority shareholders outstanding value through a significant allcash premium for their shares. After extensive negotiations, the terms of the transaction are final and there will be no further price increase. We look forward to working with the Turquoise Hill Board of Directors to ensure Turquoise Hill shareholders are able to realise the significant and immediate value of the Transaction.

The Rio Tinto share price is now down 18% over the last 12 months following today’s decline.

The post Rio Tinto share price lower despite Turquoise Hill agreement appeared first on The Motley Fool Australia.

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More reading

• Own Rio Tinto shares? Here’s why the CEO just met with China Mineral Resources
• Why are ASX 200 mining shares getting hammered on Friday?
• What’s the outlook for ASX 200 copper shares in September?
• Is the Rio Tinto share price a buy post-earnings season?
• 5 things to watch on the ASX 200 on Friday

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has shot higher today. It’s currently up by more than 6%.

This means it’s now around 36% higher over the past month and has gone up 90% since the middle of June 2022.

While some of the increase in recent weeks may simply be a reversal of the declines seen earlier in the year, the company is now trading higher than it was before.

So, what could be causing the latest gains?

Brokers are still positive on the Pilbara Minerals share price

According to reporting by The Australian, the broker JP Morgan has decided that the ASX lithium share still has further upside.

The analyst Lydon Fagan from JP Morgan has upgraded the business to an outperform rating and has lifted the price target by another 17% to $4.10. A price target is where the broker thinks the share price will be trading in 12 months from the date of the rating.

A key reason for the increase in the price target is that JP Morgan has increased its long-term estimates for lithium prices because of a “steeper cost curve to incentivise low-grade Chinese supply to fill the supply-demand gap.”

The broker thinks that the lithium market could be undersupplied until 2025. That means the relationship between supply and demand could favour Pilbara Minerals for a while yet.

JP Morgan has increased its long-term forecast for lithium carbonate and spodumene prices — they were increased by 20% and 25% respectively.

Electric vehicle demand is likely to grow in the longer term, but supply chain issues and a recession could hurt growth.

The price target of $4.10 implies a possible rise of around 5% over the next year from the current level.

Another positive rating

JP Morgan isn’t the only broker positive on further gains for Pilbara Minerals.

Macquarie also rates the ASX lithium share as outperform. But it has a much stronger outlook for the Pilbara Minerals share price. Macquarie’s price target is $5.60. This implies a possible rise of more than 40%.

The reason for Macquarie’s optimism is that Pilbara Minerals is predicting that its production could increase by more than half in FY23. When combined with the high lithium price, this combination is expected to lead to a significant rise in net profit after tax (NPAT) and cash flow.

Pilbara Minerals share price snapshot

Over the last six months, the lithium miner’s share price has risen by around 40%.

The post Why broker JP Morgan just upgraded the Pilbara Minerals share price appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Allkem, Capricorn Metals, Lovisa, and Pilbara Minerals shares are rising today
• Up 75% since mid-June, is it too late to invest in Pilbara Minerals shares?

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

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Despite bumps along the way, the Woodside Energy Group Ltd (ASX: WDS) share price is flat over the past 10 years.

Indeed, a few market shocks set back the energy producer’s shares, particularly the onset of COVID-19. This caused panic among oil markets as the global economy came to a grinding halt. Even so, the price of oil briefly went into negative territory for the first time in history.

Nonetheless, Woodside shares have been in the spotlight more recently given that energy prices have accelerated. The share price has rebounded to pre-pandemic levels and could even go higher depending on how energy markets play out.

Looking back on 6 September 2012, the company’s shares were trading at $34.54 per share.

Today, Woodside shares are swapping hands at $35.01.

Most people assume the company’s strong bi-annual dividend payout makes up for any stalled or negative growth in a share price.

Further strengthening the above argument, the Woodside board traditionally pays fully-franked dividends.

Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.

So, does Woodside’s monster dividend make up for the share price remaining flat in the past decade? Let’s take a look to see if it has been worth investing in the company’s shares solely for its upcoming dividend.

Does the Woodside dividend make up for the flat share price?

For argument’s sake, let’s say you bought $10,000 worth of Woodside shares exactly 10 years ago. You would have received approximately 289 shares.

If we take that figure and multiply it by the US109 cent (A$1.60) per share final dividend Woodside is offering, you’d get around $462.40 as a dividend payment.

Added with the current valuation of your Woodside holdings, you’d be on $10,580.29 or $580.29 profit in 10 years. This translates to an average return of 0.57% per year.

In comparison, if you invested in an ASX 200 index-tracking fund, you’d have gotten back a yearly average of 4.82%.

As you can see, the Woodside monster dividend, in my eyes, does not make up for the company’s share price performance over the last 10 years.

Woodside share price snapshot

Looking at a much shorter time frame, Woodside shares have gained 80% in the past 12 months.

Year to date, the company’s share price is also in positive territory, up 60%.

Woodside presides a market capitalisation of roughly $67 billion, making it the eighth largest company on the ASX.

The post The Woodside share price has gained under 5% in 10 years. Does the latest monster dividend make up for this? appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 energy stocks performing on Tuesday?
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price surging ahead on Monday?
• 5 things to watch on the ASX 200 on Monday
• Are ASX 200 energy shares a good investment right now?

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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ASX energy stocks have had a mixed day on the market today amid the European energy crisis.

Energy companies in the green include Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation (ASX: NHC). Whitehaven shares are up 3.18%, while the New Hope share price is 5.57% higher.

The S&P/ASX 200 Energy Index is also 0.87% in the green.

Meanwhile, gains for Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are more modest at 0.47% and 0.63% respectively.

Let’s take a look at what could be impacting ASX 200 Energy stocks on Tuesday.

Oil, gas, and coal prices weighing on markets

ASX coal shares are lifting after coal prices surged overnight amid the European energy crisis.

Coal prices in Europe rose 7.6% to hit a record $345 per tonne, Bloomberg reported. Greek energy operator DESFA also announced it will keep its coal-powered stations open in case they are needed as a last resort in the winter, its CEO said.

Russia has cut off the supply of natural gas to Europe, meaning alternative energy sources could be necessary.

Meantime, oil and gas shares Woodside and Santos are having a mixed day on the back of commodity prices.

After climbing overnight, the Brent crude oil price is currently down 0.72% to US$95.05 a barrel. However, WTI crude oil is 2.12% higher to US$77.71 a barrel.

The natural gas price is also 1.26% in the red, currently US$8.68 MMBtu.

European benchmark gas futures rose 15% after soaring 35% on Monday, Bloomberg reported.

Meanwhile, Woodside has revealed it has signed a deal to supply LNG to Europe. The company has entered a flexible long-term sale and purchase agreement with Uniper Global Commodities SE.

Woodside CEO Meg O’Neill said:

Woodside is pleased that this latest agreement with Uniper will provide a new source of LNG for consumers in Europe who are seeking alternatives to Russian gas.

Meanwhile, a potential Reserve Bank of Australia (RBA) rate rise could also be weighing on investors’ minds today. The RBA is predicted to lift the cash rate from 1.85% to 2.35% at today’s meeting.

The post How are ASX 200 energy stocks performing on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Whitehaven share price surges to yet another all-time high, here’s why
• The Whitehaven share price has surged 36% in a month. Why Morgans predicts more ‘supercharged returns’
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 3 ASX All Ords shares smashing new highs on Monday

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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