Tag: Motley Fool

Can the Medibank Private Ltd (ASX: MPL) share price really deliver both capital growth and healthy dividends going forward? Good question.

Looking at this ASX 200 health insurance share’s past performance, one might be forgiven for just assuming so. Since it was privatised back in late 2014, the Medibank share price has risen a robust 70% or so.

That works out to be a rough compounded annual growth rate of almost 7% per annum.

But Medibank has also delivered some pleasing dividend performance since it floated on the ASX as well.

In 2015, the company paid out a total of 5.3 cents per share in dividends. But Medibank spent the next few years ratcheting this up, and by 2019, it was doling out an annual dividend worth 15.6 cents per share.

The company’s payouts have taken a COVID-induced hit in recent years. But even so, Medibank doles out a total of 12.7 cents per share in 2021.

Its latest dividend, the final payment that investors will receive on 29 September, will be worth 7.3 cents per share. That’s a pleasing 5.8% rise over last year’s final dividend of 6.9 cents per share.

But, as any investor worth their salt knows, past performance is no guarantee of future success.

So what are the chances of Medibank continuing to deliver both healthy growth and dividends going forward?

Is the Medibank share price poised to deliver both growth and dividends?

Well, yes. That’s the view of at least one ASX broker anyway.

As my Fool colleague James covered this morning, ASX broker Citi has just come out with a buy rating for Medibank shares. Citi has given Medibank a 12-month share price target of $4. That implies a potential upside of around 8.5% over the coming year.

Citi’s bullishness comes from a positive reading of Medibank’s latest earnings report, which covered FY22. It reckons higher interest rates going forward will assist the company’s performance over FY23. So that’s share price growth covered.

But Citi is also expecting the dividends from Medibank to keep on coming as well. The broker is pencilling in dividends of 15.9 cents per share covering FY23 and 16,3 cents per share for FY24.

So yes, Citi is expecting both share price growth and higher dividends from Medibank Private shares going forward. But, time will only tell if these predictions prove accurate.

In the meantime, the current Medibank share price gives this ASX 200 insurer a market capitalisation of $10.16 billion, with a dividend yield of 3.63%.

The post Can the Medibank share price deliver healthy growth and dividends? appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 ASX 200 dividend shares to buy now
• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Why did the Medibank share price just crack a new all-time high?
• Here are the top 10 ASX 200 shares today
• Brokers name 2 ASX dividend shares to buy

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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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Can you believe it’s September already? How fast has 2022 gone!

Unfortunately for investors, statistically September is a shocker for ASX shares.

In fact, all of spring is historically a bit of a dud, before fortunes turn around in December for the Santa Rally.

As The Motley Fool’s Bruce Jackson noted, the S&P/ASX 200 Index (ASX: XJO) fell right on cue on the first day of September this week. The flagship index ended up 1.79% lower after Thursday’s session.

So what are we all going to do with our ASX shares?

Some experts have a few ideas:

‘This September will be this September’

Marcus Today founder Marcus Padley went through the last 40 years of the S&P/ASX All Ordinaries Index (ASX: XAO) to conclude, indeed, that September has been pretty bleak.

In fact, spring is the only season when all three months show negative returns.

“But let me tell you, after many years watching the stock market, that wherever there are numbers there are statistics, and wherever there are statistics there is an attention seeker in the stock market using the past to draw a conclusion about the future,” he posted on Livewire.

“The truth is that there is no conclusion to be drawn about this September from the last 40 Septembers. This September will be this September.”

It’s the old investing axiom that past performance is no indicator of the present or future performance.

Analysts who present historical stats are not doing anything other than “stating facts about the past”, according to Padley.

“And that’s where the value ends. No-one should be investing or disinvesting because of the month of the year,” he said.

“No-one in the professional funds management world makes decisions based on voodoo. Nor should you.”

Five years from now no one will remember what happened

Jackson backed up this sentiment by saying even if this spring also ends up being very volatile, it will “likely pale into insignificance when looked back at in five years’ time”.

“Even the global financial crisis – the most painful period in recent history for investors – is nothing more than a blip in the long upward progression of the stock market.”

And he cautioned investors against trying to seasonally time their transactions of ASX shares.

“In order to profit from market timing, you have to get two decisions right — the selling and the buying. It’s hard enough to get one right let alone two,” said Jackson.

“If you are invested in the stock market, you should look at it as a lifelong endeavour, not one to dip in to and out of depending on your mood, the market’s mood, the economy, the government, or inflation.”

The post If September is so terrible for ASX shares, what should you do? appeared first on The Motley Fool Australia.

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More reading

• Burning through cash: Is BrainChip or Weebit chewing up more capital?
• This ASX tech share has rocketed 18% in a month. Bell Potter says the party is just getting started
• Why is Morgans tipping 38% upside for the South32 share price?
• Why Goldman Sachs is bullish on the Mineral Resources share price
• Slide continues: Novonix share price dumps 14% in 2 days

from The Motley Fool Australia https://www.fool.com.au/2022/09/03/if-september-is-so-terrible-for-asx-shares-what-should-you-do/

Both BrainChip Holdings Ltd (ASX: BRN) and Weebit Nano Ltd (ASX: WBT) posted earnings results to the market recently.

Both shares remained unprofitable for the respective periods, Weebit for FY22 full and Brainchip for the 6 months to 30 June 2022. Here, we look at year-over-year results for both names.

Whereas Brainchip shares finished the week at 90 cents apiece, Weebit closed at $2.58, and this was both flat and down 2% on the day respectively.

Cash flow analysis for Brainchip shares

In order to gauge which company churned through the most cash last period(s), we have to first reconcile a number of non-cash items from the income statement.

Thankfully, the cash flow statement does most of the heavy lifting here for us. We’ll still need to make some adjustments, however, this is the best starting point.

For the half-year ended 30 June 2022, Brainchip recorded a negative net cash flow from operations of US$7.9 million, behind last year’s US$6.9 million.

The shift stemmed from a US$1 million increase in payments to suppliers over the 12 months.

It also spent an additional US$80,500 on purchases of property, plant and equipment, and saw numerous other outflows from its financing activities.

However, the company raised US$17.2 million from the issue of additional equity, meaning it saw a net US$9 million increase and cash and equivalents.

That’s a 65% year-on-year change for the technology company. However, removing this from the equation, the company organically saw an US$11 million or 36.5% year-on-year decline in its cash position.

Hence the reason it needed to raise additional cash in the first place.

What about Weebit?

Meanwhile, over in Weebit’s camp, after raising $35 million earlier in the year, its cash position jumped 145% or $31 million year on year.

Although, we need to understand what all this means for both companies, and bring the figures into some common size.

First – how much each company burned through in the period. We do that by taking the cash on the balance sheet and dividing it by the monthly operating losses. For Weebit, it chewed through around $2.6 million per month whereas Brainchip churned through roughly US$2.1 million per month.

At the current exchange rate, that’s A$3.1 million, however, exchange rates move in cycles just like other markets – so that’s just the exchange rate for today.

Nevertheless, we can make strong inferences from this data about how much time or ‘runway’ a company has left on its current cash balance by factoring in its burn rate.

Thankfully, companies must file an ‘Appendix 4C’ alongside their statement of cash flows, and this form does the heavy lifting for us once more. Ah, regulation, finally working in our favour.

Specifically, Section (8). covers the estimated cash available for future operating activities.

For Weebit, an estimated 16 quarters of funding are available at its current cash balance and burn rate. Whereas Brainchip has an estimated 5.75 quarters.

Final takeaway

This kind of analysis is important for investors to consider when making investment decisions. Unprofitable companies will still spend cash through inventory costs and operating expenses, not to mention interest on debt and operating leases.

It is only so long before a company will burn through its cash balance before it will need to raise additional equity.

It is then when current shareholders may be affected, through dilution of the share count, or, new shareholders being offered a discount to the current share price – as is often the case.

Finally, Brainchip shares are up 80% over the past 12 months. Meanwhile, Weebit has wandered 28% to the downside over the same period of time.

The post Burning through cash: Is BrainChip or Weebit chewing up more capital? appeared first on The Motley Fool Australia.

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More reading

• Why is the BrainChip share price in the red on Thursday?
• The BrainChip share price has dumped 30% in a month. What’s happening?
• ‘On the cusp of commercialisation’: Weebit Nano share price dips on FY22 results
• BrainChip share price up on 529% revenue surge
• Why did the BrainChip share price slump today?

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 S&P/ASX All Technology Index (ASX: XTX) has shed 3% in the last month, but one ASX tech share is outperforming the index.

The Life360 Inc (ASX: 360) share price has lifted nearly 18% in the past month and closed on Friday trading at $5.13.

Let’s take a look at the outlook for this San Francisco-based technology company.

Analyst tips huge upside for Life360 share price

This ASX tech share is known for the family safety app, Life360, used by 38 million people worldwide.

Analysts at Bell Potter have recently recommended investors buy Life360 share price and tipped it to hit $7.50. This is a 46% upside on the current share price.

Bell Potter believes Life360 can leverage its large user base to enter new markets and “disrupt the legacy incumbents.

These new markets could include insurance, item and pet tracking, home security, senior monitoring and roadside assistance.

The broker said:

An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. 

The analysts also noted Life360 should have a positive operating cash flow from the fourth quarter of 2023 and has enough cash to fund its operations in the meantime.

In August, Life360 reported 90% growth in subscription revenue in the first half of the calendar year 2022. More than 111,000 new subscribers signed up to Life360 in the June quarter alone.

Share price snapshot

The Life360 share price has descended 47% in the year to date, while it has lost nearly 46% in the past year.

In comparison, the All Tech index has fallen nearly 34% in the past year.

Life360 has a market capitalisation of about $955.5 million based on the current share price.

The post This ASX tech share has rocketed 18% in a month. Bell Potter says the party is just getting started appeared first on The Motley Fool Australia.

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More reading

• Why is Morgans tipping 38% upside for the South32 share price?
• Why Goldman Sachs is bullish on the Mineral Resources share price
• Slide continues: Novonix share price dumps 14% in 2 days
• An Allkem director offloaded $20 million in shares this week. What gives?
• Zip and these shares have been kicked out of the ASX 200 index

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 positions in and has recommended Life360, Inc. 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 South32 Ltd (ASX: S32) share price has struggled in the past week, but could it have better days ahead?

Since market close on 26 August, the South32 share price has descended 6%. In today’s trade, shares in the miner spent all day in the red, closing 1.72% lower at $3.99 apiece.

So what is the outlook for South32 in the future?

Can the South32 share price go higher?

South32 is a global mining company that produces aluminium, copper, silver, lead, nickel, alumina, bauxite and metallurgical coal.

Broker Morgans is recommending investors add South32 shares. Analysts have placed a $5.50 price target on the South32 share price, 38% higher than the current price.

The broker noted that South32 had a strong cash flow, dividend profile and balance sheet.

South32 reported a 156% boost in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) and 69% revenue jump in recent FY22 results.

The company’s ordinary dividend per share lifted 363% in FY21 to US22.7 cents, and the company announced a US 3 cents per share special dividend. South32 also delivered record production at Worsley Alumina in WA.

Morgans said despite South32’s costs increasing materially, it still managed to achieve margin growth. Analysts added:

Earnings multiples are regularly inconsistent value indicators in resources, but in S32’s case, we believe it shows the market is misjudging how much residual earnings power will remain in the business post cycle peak.

In FY23, South32 predicts group copper equivalent production to lift by 14%. South32 reported a net cash balance of US$538 million in its latest results.

Share price snapshot

The South32 share price has soared 24% in the past year, but it has lost nearly 1% year to date.

In the past month, the South32 shares have climbed more than 3%.

South32 has a market capitalisation of about $18.4 billion based on the current share price.

The post Why is Morgans tipping 38% upside for the South32 share price? appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs is bullish on the Mineral Resources share price
• Slide continues: Novonix share price dumps 14% in 2 days
• An Allkem director offloaded $20 million in shares this week. What gives?
• Zip and these shares have been kicked out of the ASX 200 index
• Boost your income with these ASX dividend shares: analysts

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 Mineral Resources Limited (ASX: MIN) share price has been a strong performer over the last couple of months.

During this time, the mining and mining services company’s shares have risen an impressive 28% to $58.71.

This has been driven largely by its exposure to lithium, which continues to command sky high prices thanks to its use in electric vehicles and renewable energy.

Can the Mineral Resources share price keep rising?

According to a note out of Goldman Sachs, its analysts believe the Mineral Resources share price can rise further from current levels.

The note reveals that its analysts have retained their buy rating with an improved price target of $69.50.

Based on the current Mineral Resources share price, this implies potential upside of just over 18% for investors over the next 12 months.

In addition, the broker is forecasting a ~3% dividend yield in FY 2023, which stretches the total potential return to approximately 21%.

What did Goldman say?

Although Goldman Sachs wasn’t blown away by either Mineral Resources’ FY 2022 results or its FY 2023 guidance, it remains positive due to stronger than expected lithium prices. It commented:

MIN reported FY22 underlying EBITDA/NPAT of A$1,024mn/A$400mn,-6%/-15% below GSe and VA consensus on lower than expected earnings from iron ore and mining services. […] Guidance for FY23 was slightly negative vs GSe, with higher costs at the iron ore and Wodgina lithium, and ~A$0.5bn higher capex on a short construction timeframe for Ashburton, and flat mining services volumes.

We increase our FY23-25 EPS by -10%/+9%/+39% with higher iron ore and lithium costs in FY23 partly offset by MtM of our Sep Q lithium price forecasts, and InfraCo capital charges lifting outer-year earnings.

Overall, the broker expects a huge profit jump in FY 2023 thanks largely to the company’s lithium operations. It explained:

We forecast a more than doubling of group EBITDA to over A$2.3bn in FY23 driven by higher lithium volumes (LiOH & spod), tailwinds from M-3 lithium pricing lags, and an improvement in low grade iron ore price realisations.

The post Why Goldman Sachs is bullish on the Mineral Resources share price appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping
• Why are ASX 200 mining shares getting hammered on Friday?
• Why is the Mineral Resources share price down a hole on Friday?
• 5 things to watch on the ASX 200 on Friday
• How do IGO shares compare to Mineral Resources following earnings season?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Allkem Ltd (ASX: AKE) share price finished the week down 3.7% to $13.17 on Friday.

Leading up to Friday, shares in the lithium producer were on course for a weekly gain. However, the market went cold on the $8.46 billion lithium bellwether following news of an insider parting ways with a portion of their Allkem shares.

To what extent has this member of leadership sold down their stake? Let’s take a closer look.

Weighing on the Allkem share price

It appears shareholders struggled to hold an optimistic attitude amid a recent insider transaction on Friday. According to the notice, non-executive director Richard Seville made the call to cash in on a hefty portion of his Allkem shares on 29 and 30 August.

Looking at the details, Seville sold 1.5 million shares on-market on Monday and Tuesday. The total number of shares sold was split evenly between the two days — 750,000 for an average price of $13.67 on Monday and 750,000 shares for an average price of $14.02 on Tuesday.

In total, the former founding managing director of Orocobre (which merged with Allkem) landed $20,767,500 from the sale. In turn, Seville retains 3 million shares following the transaction, valued at nearly $40 million at the current Allkem share price.

Allkem did not provide any further information on why Seville chose to offload the shares. Notably, the sale notice swiftly follows yesterday’s notice about the sale made by fellow independent non-executive director, John Turner. However, Turner’s sale was a much more modest A$275,165 worth.

What else?

While the Allkem share price might be influenced by a significant insider share sale, the pessimism is relatively widespread across ASX lithium shares on Friday.

For context, other major lithium names such as Pilbara Minerals Ltd (ASX: PLS), Liontown Resources Ltd (ASX: LTR), and Core Lithium Ltd (ASX: CXO) were down 1.7%, 4.5%, and 5.2% respectively. This is despite lithium carbonate prices holding steady, according to Trading Economics.

Perhaps Piedmont Lithium Inc (ASX: PLL) plans to build the largest lithium hydroxide processing plant in the United States has sent a signal to the market that increasing supply is likely to come online. This might be a reminder, that at the end of the day, lithium prices are purely driven by supply and demand.

The post An Allkem director offloaded $20 million in shares this week. What gives? appeared first on The Motley Fool Australia.

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More reading

• Piedmont Lithium share price falls 5% after plans to build the largest US lithium plant unveiled
• The Pilbara Minerals share price surged 30% in August. What now?
• Could this new piece of legislation be a boost for ASX lithium shares?
• Leading brokers name 3 ASX shares to buy today
• Are Pilbara Minerals shares better value than Allkem right now?

Motley Fool contributor Mitchell Lawler 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 Novonix Ltd (ASX: NVX) share price traded deep in the red on Friday, extending losses over the past two trading days to almost 15%.

By Friday’s close, the Novonix share price was down 8% for the day at $2.07, on a volume of 6.24 million shares – ahead of the 4-week trading average of 4.9 million shares.

What’s up with the Novonix share price?

The share has seen heavy selling activity ever since the company posted its FY22 full-year earnings results. It was a busy year for the battery technology company.

Revenues were booked at $8.4 million, although cash from operations and net profit both slipped year on year as the company ramped up its investment back into the business.

The bedrock of this activity was formed via an investment from Philips 66 back in 2021, following its strategic stake in the company for $203 million.

Despite the heavy investment activity, the company didn’t provide any earnings guidance for the coming 12 months.

Perhaps it is this point that has investors worried about the Novonix share price.

In the prevailing market circumstances, investors aren’t paying a premium for unprofitable companies like they were in 2020–2021.

That’s seen in the large wind down in growth-backed indices and ETFs tracking ASX growth shares. For instance, the S&P/ASX 200 Growth Index is down 14% this year, while the Vanguard Diversified High Growth Index ETF (ASX: VDHG) is down a similar amount.

That comes in behind the benchmark S&P/ASX 200 Index (ASX: XJO)‘s 8% loss for the year.

What else could be impacting Novonix shares?

Adding to the downside, ASX materials stocks have taken a nosedive since late August and finished down more than 9% on the week.

Whilst Novonix is an ASX tech share by GICS Industry classification, it has exposure to various commodities through purchase orders.

Losses stemmed on the back of further lockdowns in Chinese megacity Chengdu, located in the west of the country.

The lockdown will last for 4 days but could be extended for the city of 21 million people if COVID-19 cases continue to rise.

“The city is the capital of Sichuan province, which has already been hit by severe drought and floods in recent weeks. A power crisis caused by the heatwave forced some factories in the province to shut last month,” Bloomberg reported today.

“[Chengdu] city’s economy expanded just 3%, well below the 13.1% it grew in the same period in 2021,” it added.

On the back of the news, Brent crude, gasoline and gold posted gains on Friday, whilst lithium was flat at the close.

In fact, lithium carbonate prices remain as buoyant as ever, a point that has implications on the outlook for Novonix in its future purchasing prices of the battery metal.

Meanwhile, the Novonix share price is down 77% this year to date.

The post Slide continues: Novonix share price dumps 14% in 2 days appeared first on The Motley Fool Australia.

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More reading

• 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
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price tumbling 6% on Monday?

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 Zip Co Ltd (ASX: ZIP) share price just can’t catch a break these days.

After the market close on Friday, the buy now pay later (BNPL) provider’s shares were dealt another blow.

What’s happening?

According to an announcement out of S&P Dow Jones Indices, it will be kicking out Zip’s shares from the ASX 200 index at the next rebalance.

The index provider appears to have made the move after Zip’s market capitalisation dropped to such an extent that it was no longer among the 200 largest companies on the Australian share market.

Based on the current Zip share price of 87 cents and the 687,983,539 shares on issue, the BNPL provider’s market capitalisation is a touch under $600 million.

Other tech exits

But Zip won’t be the only removal from the index. It will have a few tech shares to keep it company on the long walk to the exit later this month.

Embattled payment company EML Payments Ltd (ASX: EML), location technology company Life360 Inc (ASX: 360), and sports betting company Pointsbet Holdings Ltd (ASX: PBH) will also be removed from the ASX 200 before the market open on 19 September.

Unsurprisingly, given the state of the tech sector right now, none of their peers will be replacing them. Among the new additions are gold producer Capricorn Metals Ltd (ASX: CMM), energy producer Karoon Energy Ltd (ASX: KAR), and lithium developer Sayona Mining Ltd (ASX: SYA).

Another removal of note is AVZ Minerals Ltd (ASX: AVZ). Remember it? This lithium share exits the ASX 200 index after just six months in it. Though, the embattled lithium developer has spent a good portion of this time suspended from trade due to an ownership dispute.

Interestingly, AVZ also has the ignominy of being kicked out of the ASX 300 index as well. Ouch!

What does this mean?

As fund managers often have strict mandates allowing them to only invest in shares in particular indices, such as the ASX 200 index, they could be forced to sell Zip and the others between now and the rebalance.

This has the potential to put extra pressure on the sell side at a time when the buy side is already very weak.

The post Zip and these shares have been kicked out of the ASX 200 index appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping
• Why is the Sayona Mining share price crumbling 8% on Friday?
• It’s a cloudy day on the ASX, but some All Ords shares are still shining brightly
• Broker tips PointsBet share price to double

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments, Life360, Inc., Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Pointsbet 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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If you’re looking to boost your income with some dividend shares, then the two listed below could be worth considering.

Both have been named as buys by analysts and tipped to provide attractive and growing yields. Here’s what they are saying about these dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that analysts rate as a buy is Coles.

This supermarket operator has been a strong performer over the last few years thanks to its strong market position and defensive qualities. These have allowed Coles to continue to grow its sales and profits whatever the economy has thrown at it.

Pleasingly, this continued in FY 2022, with Coles recently reporting a 2% increase in sales revenue to $39,369 million and a 4.3% lift in net profit after tax to $1,048 million.

Analysts at Citi don’t expect the company to stop there. Its analysts are expecting further earnings and dividend growth in the coming years. For example, the broker is forecasting fully franked dividends per share of 75 cents in FY 2023 and then 79 cents in FY 2024.

Based on the current Coles share price of $17.56, this will mean yields of 4.3% and 4.5%, respectively, for investors.

Another positive is that Citi sees meaningful upside for its shares over the next 12 months. It currently has a buy rating and $20.10 price target on them.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that analysts have named as a buy is HomeCo Daily Needs. It is a real estate investment trust (REIT) with a focus on convenience-based assets such as neighbourhood retail and retail parks.

Analysts at Morgans are positive on the company. They were pleased with its performance in FY 2022 and believe the company is well-placed for more of the same in the coming years thanks to solid demand for its properties and its development pipeline.

As for dividends, the broker is forecasting dividends of 8.3 cents per share in FY 2023 and 8.7 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.28, this will mean yields of 6.5% and 6.8%, respectively.

Morgans also sees decent upside ahead for its shares. Its analysts currently have an add rating and $1.56 price target on them.

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

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More reading

• Why is the Coles share price having such a lousy end to the week?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Is the Endeavour share price a bargain after its big tumble in August?
• Why Coles, Fisher & Paykel, New Hope, and Nitro shares are rising

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 positions in and has recommended COLESGROUP DEF SET. 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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