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ASX mining shares Southern Palladium Ltd (ASX: SPD), Arafura Resources Ltd (ASX: ARU) and Flinders Mines Limited (ASX: FMS) had a massive day today, soaring between 17% and 42% higher.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) rose 1.94%.

Let’s take a look at what may have caused these three ASX mining shares to reach for the stars.

Southern Palladium

The Southern Palladium share price exploded 21% higher, closing on Monday at $1.15. The monster trading day came after the company updated the market on drilling progress at its Bengwenyama PGM project.

Southern Palladium has a 70% stake in the palladium and rhodium-rich project located at the Bushveld Complex in South Africa.

The explorer advised that drillhole E062 had intersected the first UG2 reef at 31.2m below the surface. Commenting on the news, managing director Johan Odendaal said:

Confirmation of the UG2 Reef intersection is an important early barometer for the company as it advances the Phase 1a drill program.

Arafura Resources

The Arafura Resources Ltd (ASX: ARU) share price also shot the lights out today, surging 17.24% to close at 34 cents.

Arafura has been added to the ASX 300 Index as part of a quarterly rebalance. S&P Dow Jones Indices advised of the changes to multiple S&P/ASX indices after market close on Friday.

Arafura is developing the Nolans Rare Earths Project in the Northern Territory. The mineral explorer aims to supply 5% of the world’s neodymium and praseodymium (NDPr) 99% pure oxide from the Nolan’s project.

Flinders Mines

Finally, the Flinders Mines share price soared a whopping 41.51% today to 75 cents at the close.

Flinders advised the market this morning that BBIG Group Pty Ltd had terminated a farm-in agreement with it. This meant Flinders would be able to negotiate a staged development of its Pilbara Iron Ore Project in Western Australia.

The company’s chair Cheryl Edwardes said the move would provide Flinders with a “more certain pathway to near term cash flow“.

The post 3 ASX mining shares that rocketed more than 15% on Monday appeared first on The Motley Fool Australia.

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More reading

• These 6 ASX mining shares are now in the ASX 300
• Guess which ASX iron ore share rocketed 40% on Monday
• Why is the Arafura share price surging 10% on Monday?
• Why is the Arafura share price leaping 5% today?
• 3 ASX mining shares primed for an ‘exponential’ energy transition: expert

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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Are you wanting to add some new ASX shares to your portfolio this month? If you are, read on.

Two ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is electronic design software provider Altium.

Due to the leadership position it has carved out for itself in an enormous and growing market, Altium has been growing its earnings at a solid rate for many years.

This continued in FY 2022, with the company recently reporting a 23% increase in revenue to US$220.8 million and a 57% jump in net profit after tax to US$55.5 million

Analysts at Bell Potter were very impressed. They commented:

FY22 EBITDA grew 33% to US$79.8m which was 6% above our forecast of US$75.4m. The beat was driven by higher revenue than forecast (US$220.8m vs BPe US$218.5m and guidance towards top end of US$209-217m) and a better EBITDA margin than forecast (36.2% vs BPe 34.5% and guidance towards low end of 34-36%). Note there were no positive one-offs which drove the beat and the result was even negatively impacted by one-off costs of US$1.3m from relocating staff

Pleasingly, the future remains as bright as ever, with management continuing to target the more than double of its revenue to US$500 million by 2026.

Bell Potter currently has a buy rating and $37.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share that could be in the buy zone in September is enterprise software provider Readytech.

Like Altium, last month, Readytech released its full year results and impressed analysts. The company revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.

In response, the team at Goldman Sachs commented:

Strong organic growth execution builds confidence in medium-term earnings outlook. […] RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.

Also like Altium, management is confident in its outlook. It expects organic revenue growth in the mid-teens in FY 2023. This will be boosted by an additional $2 million of incremental revenue from FY 2022 acquisitions. But it won’t stop there, the company has upgraded its FY 2026 revenue target from $140 million to $160 million. This will be double FY 2022’s numbers.

Goldman Sachs has a buy rating and $4.30 price target on its shares.

The post Why analysts rate these ASX growth machines as buys appeared first on The Motley Fool Australia.

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More reading

• Why did the Altium share price lag the ASX 200 today?
• Up 15% in a month, is ASX 200 tech share Altium on the comeback trail?
• These ASX 200 shares are going ex-dividend on Monday
• Experts name 3 ASX growth shares to buy in September
• ASX 200 reporting season weekly wrap: Top risers and fallers

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 Altium and Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. 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 wanting to add some new ASX 200 shares to your portfolio this month? If you are, read on.

Two ASX 200 shares that have been tipped as buys are listed below. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is data centre operator NextDC.

Citi is very positive on the company and currently has a buy rating and $12.90 price target on its shares. Based on the current NextDC share price of $9.85, this implies potential upside of 31% for investors.

The broker was pleased with the company’s performance in FY 2022 and remains positive on its outlook. Particularly given its Asian opportunity. It commented:

We see the pick-up in Enterprise/Retail bookings as positive for both yield and the potential for higher power costs to accelerate the shift to co-location datacenters. Further, while NXT has not quantified it, the increase in hyperscale options backlog underpins our medium-term earnings. However, with customer deployments being impacted by supply chain issues, we lower FY24e EBITDA by -3% and target price by -8% to $12.90 to reflect slower billing ramp.

Update on the Asian expansion represents the next catalyst, with NXT pointing to an organic build as its preferred option. With ~$1.9 billion in liquidity, we see NXT as having ample capacity to fund an organic DC build in Asia.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share that has been tipped as a buy is enterprise software provider TechnologyOne.

A recent note out of Bell Potter reveals that its analysts have retained their buy rating and lifted their price target on the company’s shares to $14.25. With the TechnologyOne share price currently fetching $11.40, this implies potential upside of 25% for investors.

Bell Potter has suggested that TechnologyOne could lift its growth targets in the near future thanks to its strong performance and the success of its SaaS transition. It commented:

We continue to believe there is the potential for the company to lift its annual PBT growth target from 10-15% to 15-20% from next year and our forecasts are consistent with this uplift. But we also believe there is some conservatism in our FY23 and FY24 forecasts as we only forecast PBT margin improvement of c.100bps in both periods whereas we believe there is potential for the margin increase to be closer to 150bps.

The post Experts say investors should buy these ASX 200 shares appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 2 profitable ASX tech shares analysts say are buys with 20%+ upside
• Goldman Sachs tips NextDC share price to rise 40%
• Experts name 3 ASX growth shares to buy in September
• Why Aussie Broadband, Grange, NextDC, and PolyNovo shares are being hammered

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited. 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 TechnologyOne 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 gold price continues its descent and now trades at its lowest mark in more than 52 weeks.

At the time of writing, gold is priced at US$1,710 per ounce, having dropped from a relatively short-lived relief rally on 12 August.

Returns for the precious metal for the last 12 months of trade are plotted on the chart below.

Can gold make a comeback?

Those invested in gold bullion have seen a volatile 12 months, watching their positions soar above US$2,000 per ounce in March only to contract heavily to today’s prices.

Key to the volatility has been a combination of inflation data and shifting interest rates. Both have stemmed from a combination of COVID-19, central bank policies, and global supply chain headwinds.

Spurring the downturn has largely been a nasty combination of rising interest rates and a strong US dollar.

Both are seen as negatives for gold, as the yellow metal pays no interest or dividends (therefore, it comes with an opportunity cost) whereas the US dollar serves as the benchmark for pricing it.

Moreover, precious metals are often seen as a way to protect inflation-adjusted returns as one of the potential inflation hedges. Although, there’s much debate on this topic.

Nevertheless, presuming this is the case, analysts at ICICI Bank Global Markets make a good point regarding this relationship.

“Given that gold is often used as an inflation hedge, the commitment from global central banks to rein in inflation is reducing the appeal for gold as an investment tool,” they said.

Meaning lower inflation equals less utility for gold in investment portfolios.

Meanwhile, portfolio managers at investment bank Citi are equally as cautious on the outlook for the metal. According to an update in August:

Gold may also come under downward pressure as the Fed raises policy rates further, inflation decelerates, and the US dollar remains a beneficiary of global safe-haven flows.

However, gold may benefit if and when the Fed pivots to [quantitative] easing.

While this may take many months, the first signs of a US employment contraction could boost expectations of such a shift, benefiting safer bonds and gold.

Based on the prevailing commentary, it looks as if the outlook for gold is a rates-driven one. Although there are, of course, other factors weighing in.

For the time being, though, the slide in market pricing continues and traders have yet to show signs of major reversal.

The gold price is down 6% over the past 12 months, slightly ahead of the S&P/ASX 200 Index (ASX: XJO)’s loss of around 9%.

The post Is there hope for the gold price in 2022? appeared first on The Motley Fool Australia.

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More reading

• Experts say investors should buy these ASX 200 shares
• How might falling house prices impact the CBA share price?
• Are AFIC shares outperforming the ASX 200 this year?
• Investing in the stock market could turn your $10,000 into $100,000. Here’s how
• These 6 ASX mining shares are now in the ASX 300

Motley Fool contributor Zach Bristow 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 Commonwealth Bank of Australia (ASX: CBA) share price could be facing a tough FY23 after a Wall Street guru singled out ASX big bank shares are one group to short.

The doom and gloom forecast comes from Bank of America strategist Michael Hartnett. He pointed to the steep drop in Australian house prices for his prediction.

House prices here have fallen in August at the fastest pace in four decades, according to CoreLogic. Given that the CBA has the biggest exposure to mortgages, its shares could come under pressure over the coming months.

Why are house prices on the nose?

Aussie home prices are on the decline as borrowers were caught off guard by the rise in interest rates. The Reserve Bank of Australia’s cash rate jumped from record lows of 0.1% to 1.85% in just four months.

What’s worse is that the RBA is likely to lift rates again by 50 basis points tomorrow. If that happens, it will take the cash rate to its highest level since December 2014.

Experts think house prices have further to fall as our central bank is unlikely to stop hiking rates anytime soon.

Michael Hartnett said:

There’s certainly some appealing logic in the idea that where house prices go, the Australian banks – stacked to the gills with mortgages as they are – will follow.

Loss of market share also hanging over the CBA share price

What’s more, the loss of mortgage market share is also pressuring the CBA share price. The home loan market is fiercely competitive and growth in new loans is slowing. Our largest lender is forecasting growth of just 3.5% in 2023, which is below the industry’s growth rate.

Other big ASX bank shares are also likely to be losing ground compared with smaller non-bank lenders.

CBA share price catching short sellers’ attention

But traders may not be waiting for Harnett’s advice to short the likes of the CBA share price. The bank seems to have already caught the attention of short-sellers.

The percentage of CBA’s shares that have been shorted stands at 1.18% as of 30 August 2022. That is the latest figures from ASIC, which is always a week behind.

You will be right if you thought that doesn’t sound like much. After all, the most shorted ASX share is Flight Centre Travel Group Ltd (ASX: FLT) at 15.5%. A short sale is a bet by traders that the share price of the security will fall.

But CBA’s 1.18% figure represents a near 200% increase in shorts since the start of this calendar year.

Most shorted ASX big bank share

Further, the CBA share price is the most shorted among the big four ASX banks. While Westpac Banking Corp (ASX: WBC) is only a touch behind at 1.17%, short positions have only inched up 7% in contrast.

The percentage of shorts against National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) only stand at 0.91% and 0.33%, respectively.

CBA share price not a one-way bet

However, before you jump on the short-selling bandwagon, be warned that this may not necessarily be a profitable trade.

Falling house prices may crimp growth for ASX banks, but credit quality and net interest margins are also important drivers for the sector.

On that front, credit quality remains strong due to the robust jobs market and rising rates will bolster margins.

The post How might falling house prices impact the CBA share price? appeared first on The Motley Fool Australia.

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More reading

• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Why did the CBA share price go backwards in August?
• What’s the outlook for ASX 200 bank shares in September?
• What is the highest CBA shares have ever been?

Motley Fool contributor Brendon Lau has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Australian Foundation Investment Company Ltd (ASX: AFI) share price has been dropping lower in September.

AFIC is a listed investment company (LIC) that aims to provide shareholders with “attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long-term”.

One of the main benefits of LICs is that they do the investing on behalf of investors. AFIC’s investment team will pick out a portfolio of shares that are thought to be able to achieve the targeted investment objectives.

Let’s have a look at how AFIC’s share price has been performing in recent times compared to the S&P/ASX 200 Index (ASX: XJO).

AFIC performance

Over the last month, the AFIC share price has dropped by 7% and in 2022 to date it has declined by around 11%.

In the last month, the ASX 200 has only fallen by 2.6%. In 2022, the ASX 200 has fallen by around 10%.

The AFIC share price has underperformed over both periods.

However, one thing to be aware of with LICs is that they can trade at premiums or discounts to the net tangible assets (NTA) per share. Changes in the premium can impact the share price.

But, AFIC does regularly tell investors about its portfolio performance compared to the S&P/ASX 200 Index Accumulation Index (ASX: XJOA).

In the 12 months to 31 August 2022, AFIC’s net asset per share growth plus dividends (including franking) had fallen by 6%, compared to just a 2.1% fall for the ASX 200 Accumulation Index.

There has been underperformance in the shorter term.

But, over the past three years, AFIC has delivered stronger returns. The LIC reported that its portfolio delivered an average net return per annum of 8.1%, beating the 6.8% return per annum of the ASX 200 Accumulation Index, including franking.

The question for investors is whether the AFIC share price premium is worth it. At the end of August 2022, it was at a premium of more than 10% to the NTA. In the prior decade, it has only been at a higher premium a few times, which was during the COVID period. Before COVID, it didn’t trade at as high a premium.

Portfolio holdings

AFIC’s portfolio return will be dictated by its investment returns. The biggest positions will have the largest weightings.

At the end of August, these were the positions that had a weighting of at least 4%: Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), BHP Group Ltd (ASX: BHP), Transurban Group (ASX: TCL), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and National Australia Bank Ltd (ASX: NAB)

It’s these holdings that could have the biggest indirect influence on the AFIC share price.

The post Are AFIC shares outperforming the ASX 200 this year? appeared first on The Motley Fool Australia.

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More reading

• How has the AFIC ASX share portfolio changed over FY22?
• Why is the AFIC share price sliding today?
• The CBA share price looks downright expensive
• Why I prefer AFIC shares to an ASX 200 index fund today
• Keen to bag the next AFIC dividend? Read this

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 CSL Ltd. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. 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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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.

Investing can add an extra zero (or two) to your net worth. It’s not a quick process, but it can be an easy one, even if you have no investing experience. Keep reading to find out how.

The doubling rule

The doubling rule is a simple formula that estimates how long it takes to double your money on an investment. To use the formula, divide 72 by your estimated growth rate. The answer is your doubling time in years.

You can use this formula for any appreciating asset — including your cash savings and government bonds. For those assets, you usually have a stated growth rate. Stocks, unfortunately, are less predictable. The good news is, if you plan on investing in stocks long-term, you can use the stock market’s historic average performance as your estimated growth rate.

The long-term caveat is important. The stock market goes up and down from year to year, so it’s mostly impossible to predict short-term growth rates accurately. But over 10 years or more, those ups and downs average out with greater consistency. Historically, the market’s long-term growth has been about 7% annually, net of inflation.

Back to the doubling rule: Money invested at 7% will double about every 10 years and three months.

From $10,000 to $100,000

Apply the doubling rule to a hypothetical stock market investment of $10,000, and your projected balances over time are:

• $20,000 after 10 years and three months
• $40,000 after 20 years and six months
• $80,000 after 30 years and nine months
• $160,000 after 41 years

By that timeline, you could turn your $10,000 investment into $100,000 in about 35 years.

What stocks to buy

Your actual investment growth rate will depend on what stocks you buy. Some can double your starting investment faster, while others — say, penny stocks — can zero out your wealth straight away. Faster growth is obviously the best outcome, but big gains always come with the potential for big losses.

That’s why it’s smart to take a moderate approach. You can do that with an S&P 500 exchange-traded fund (ETF). This is a fund type that holds 500 of the largest, most established companies in the U.S. These companies in aggregate are so influential that the S&P 500 index is often used as a benchmark for the overall stock market. The index also aligns with our targeted 7% growth rate.

There are many S&P 500 ETFs out there. For the best returns, choose one with a low expense ratio. You can find some S&P 500 funds that charge 0.03% or less for expenses.

From $10,000 to $1,000,000

What if you want to turn your $10,000 into $1 million instead of $100,000? Long-term investing can support that goal, too. To make that happen, you’d invest your initial $10,000. Then you’d add $550 monthly to that investment. Stay with that plan and you should pass the $100,000 mark in about 10 years. Keep going and you’re likely to reach millionaire status after 35 years.

You can also follow this plan with less than $550 monthly. Adding in a monthly investment of any size will dramatically expedite your results. The doubling rule isn’t sophisticated enough to project timelines for monthly investments, but you can use a compound interest calculator like this one.

Try it out to estimate the wealth potential of your investing budget over the next 10, 20, or 30 years.

Invest long-term for more predictable results

It takes a long-term commitment to build wealth in the stock market. Plan for a timeline of at least 10 years. Kick things off by investing in a diversified portfolio of established, successful companies — like an S&P 500 ETF. You can always branch out as you gain confidence picking investments, but you don’t have to.

Given enough time, your stock market investment can grow $10,000 into $100,000 or more. Start now so you can reach those wealth milestones sooner rather than later.

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

The post Investing in the stock market could turn your $10,000 into $100,000. Here’s how appeared first on The Motley Fool Australia.

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More reading

• Are AFIC shares outperforming the ASX 200 this year?
• These 6 ASX mining shares are now in the ASX 300
• Savings or dividends? What these 3 ASX bank shares are offering for income
• Bell Potter slaps buy rating on this profitable, dividend-paying ASX cannabis share
• Why did the Altium share price lag the ASX 200 today?

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.

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

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Six ASX mining shares were listed on the S&P/ASX 300 Index (ASX: XKO) today as part of S&P Global’s quarterly rebalancing.

This may surprise some investors as the S&P/ASX 200 Materials Index (ASX: XMJ), which tracks the mining sector, hasn’t exactly had a stellar performance year to date. In fact, it’s down 9.95%.

On an industry level, things aren’t too hot either with the S&P/ASX 300 Metals and Mining Index (ASX: XMM) also down 7.72% over the same period.

So these companies are outliers from the aggregate performance of their peers. They were included due to a surge in their share prices over the last quarter which, in turn, boosted their market capitalisations high enough to overtake laggards in the index.

This was helped by the relatively poor performance of shares in other sectors, such as information technology and consumer discretionary. These have been two of the worst hit on a year-to-date basis. It’s also helped companies from stronger sectors over the last quarter to take their positions in the index.

Let’s find out which miners are new to the ASX 300.

Which mining companies were added to the index?

They are:

• 5E Advanced Materials Inc (ASX: 5EA) is a mineral exploration company. Market capitalisation: $706 million
• Arafura Resources Ltd (ASX: ARU) is a rare earth exploration company. Market capitalisation: $586 million
• Grange Resources Ltd (ASX: GRR) is an iron ore mining and pellet production business. Market capitalisation: $862 million
• Argosy Minerals Ltd (ASX: AGY) is a mineral exploration company. Market capitalisation: $553 million
• Mincor Resources NL (ASX: MCR) is a high-grade nickel producer. Market capitalisation: $1.02 billion
• Neometals Ltd (ASX: NMT) is a producer of sustainable battery materials. Market capitalisation: $723 million

The post These 6 ASX mining shares are now in the ASX 300 appeared first on The Motley Fool Australia.

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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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ASX bank shares can be considered rather unusual investments on the ASX. It’s no secret that many, perhaps even most, ASX investors hold at least one of the big four bank shares in their investment portfolios. Even if not, it’s almost certain that banks form a significant portion of any Australians’ superannuation fund.

But it’s also a reasonable assumption to make that most Australians have a bank account with one of the big four ASX banks as well. Thus, it can be argued that most Australians are getting two streams of income from an ASX bank, even if it’s not a big four bank like Commonwealth Bank of Australia (ASX: CBA).

One in the form of dividends from their investments (inside super or out). The other in the form of interest on their deposited savings.

We’ve recently examined the current dividend yields that ASX investors can expect out of the big four bank shares at present. So today, we’ll be checking out what kinds of income investors (and customers) of a few of the lesser ASX bank shares, as well as one big four banks, can expect.

AMP offers rates, but no dividends

The first of those is AMP Ltd (ASX: AMP). So let’s get this out of the way first — AMP does not currently pay out a dividend. The financial services company has done so in the past. But the company’s recent misfortunes have seen the dividend income dry up, at least for now.

But AMP does offer some interesting interest rates for its customers. At present, the bank currently has a potential interest rate of up to 2.6% per annum available for its AMP Saver product.

Saying that, depositors need to regularly deposit cash monthly to be awarded the higher rate, otherwise the base rate of 0.6% applies. But for investors willing to lock up their funds, AMPs rates for term deposits go as high as 4.4% per annum.

A non-big four ASX bank comes in strong

Turning to Bank of Queensland Ltd (ASX: BOQ), and we have an ASX bank share that does indeed pay a dividend. BOQ’s last two dividend payments were worth 22 cents per share each, fully franked. That gives BOQ shares a trailing yield of 6.29% at current pricing.

That’s going to be hard for Bank of Queensland’s own products to compete with. But in terms of rival products, BOQ’s Smart Saver Account is certainly competitive. It offers a maximum interest rate of 3.1% per annum.

But, again, to achieve this, customers need to make monthly deposits of at least $1,000. They also need to make at least five transactions with a linked Everyday account if they don’t want to instead get a base interest rate of just 0.05%.

BOQ’s term deposit interest rates go as high as 3.3%.

How does ANZ compare?

Let’s see how these offerings measure up to a big four ASX bank. So, time to check out Australia and New Zealand Banking Group Ltd (ASX: ANZ). ANZ shares currently offer a dividend yield of 6.32%. That comes from ANZ’s last two dividend payments. These were worth 72 cents per share each, fully franked.

Again, that leaves ANZ’s depositor rates in the dust. The highest interest rate ANZ offers on a savings account is presently 1.65% with the ANZ Progress Saver. But customers need to make one deposit of at least $10 or more in the month, with no withdrawals. Otherwise, the base rate is 0.01%.

ANZ’s term deposits do go a little higher. The highest rate customers can expect to enjoy at present is 3% per annum.

So some real disparities here between BOQ, ANZ and AMP. Both in terms of dividends and interest rates. All customers and investors should read the fine print, though, and work out what product might be best for them. But this comparison does show that shopping around can well be worth it.

The post Savings or dividends? What these 3 ASX bank shares are offering for income appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Bank of Queensland. 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 Cronos Australia Ltd (ASX: CAU) share price was a strong performer on Monday.

The medicinal cannabis company’s shares ended the day 15% higher at 55 cents.

At one stage, the Cronos Australia share price even reached a record high of 58 cents.

Why did the Cronos Australia share price fire up?

Investors have been scrambling to buy the company’s shares over the last two trading sessions thanks to a bullish broker note out of Bell Potter.

According to the note, the broker has initiated coverage on the company with a buy rating and 60 cents price target.

Based on the current Cronos Australia share price, this implies further potential upside of 9.1% for investors.

What did the broker say?

Bell Potter likes the company due to its leadership position in medicinal cannabis distribution. It explained:

Cronos Australia is a medicinal cannabis company that is the market leader in distribution to pharmacies and provides patient consulting services through its clinic business. The key driver for the impressive growth in the past 24 months has been the CanView platform which provides the widest range of medicinal cannabis products compared to competitors (Anspec, Health House).

The current system provides access to patients, doctors and pharmacists. The transition to CanView 2.0 streamlines the consultation and prescription process.

In addition, the broker highlights that Cronos Australia is a profitable, dividend-paying cannabis share. The only one of its kind in Australia. Furthermore, it feels its valuation is fair and its growth outlook is strong. The broker concludes:

We initiate coverage on Cronos with a Buy recommendation. We expect the momentum observed in FY22 to continue into FY23 and translate into strong revenue and earnings growth. Cronos is currently the only profitable dividend paying medicinal cannabis company on the ASX and the valuation does not appear demanding relative to the expected growth.

The post Bell Potter slaps buy rating on this profitable, dividend-paying ASX cannabis share appeared first on The Motley Fool Australia.

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• Guess which company just became the first ASX cannabis share to pay a dividend
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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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