Tag: Motley Fool

There are a growing number of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

Three top options that could be worth checking out are listed below. Here’s what you need to know about them:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF for investors to look at is the BetaShares Crypto Innovators ETF. This ETF could be a great option if you’re a crypto-believer and feel that the recent weakness in the industry is just a blip on a very long successful road higher. That’s because this high risk ETF gives investors easy access to the main players in the cryptocurrency industry. These are the miners, neobanks, trading platforms, and mining equipment providers. Among its holdings you’ll find Coinbase, Silvergate, and Riot Blockchain.

BetaShares Global Banks ETF (ASX: BNKS)

Another ETF for investors to look at is BetaShares Global Banks ETF. Unsurprisingly, given its name, this ETF gives investors exposure to many of the world’s largest banks (excluding Australian banks). With the banking sector still yet to fully recover in 2022, this could be an opportune time to make a long term investment. Especially with rates now rising and boosting bank margins. Among the banks included in the fund are Bank of America, Barclays, Citigroup, HSBC, JPMorgan and Wells Fargo.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the popular Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to almost 1,500 of the world’s largest listed companies. Vanguard believes it could be a good option for buy and hold investors that are seeking long-term capital growth, some income, and international diversification. Among the companies you’ll be investing in are giants such as Amazon, Apple, Danone, Exxon Mobil, Nestle, Procter & Gamble, and Visa.

The post 3 top ETFs for ASX investors to buy appeared first on The Motley Fool Australia.

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More reading

• 2 wonderful ETFs to buy for portfolio diversification
• 2 reasons to consider buying the Vanguard International Shares ETF (VGS) right now
• 2 quality ETFs for ASX investors to buy in August
• Is the Vanguard MSCI International ETF (VGS) a good alternative to global tech shares?
• 2 quality ETFs for ASX investors to buy next week

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 BetaShares Global Banks ETF – Currency Hedged, Betashares Crypto Innovators ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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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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.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has been stuck in a bear market for quite a while now, and some investors are getting impatient for a recovery. Yet even as some other major market benchmarks have managed to move closer to their former high-water marks, the Nasdaq is still more than 22% below its record high from late 2021.

The key to the Nasdaq returning to all-time highs will be for the fast-growing companies that sent the index to record levels to regain their former momentum. Unfortunately, although some businesses have rebounded, others are still seeing ongoing challenges. That’s what investors are seeing from the latest financial results from Autodesk (NASDAQ: ADSK) and Splunk (NASDAQ: SPLK) on Thursday morning, and the wide disparities in how shareholders are responding to those reports suggest that new all-time highs could still be a long way away.

Autodesk paints a pretty picture

Shares of Autodesk were up almost 9% near the open on Thursday morning. The company behind the popular AutoCAD software package for design use saw solid gains in its fiscal second-quarter report.

Autodesk’s key performance metrics were encouraging. Revenue and billings for the quarter ended July 31 were both up 17% from year-earlier levels. Autodesk reported significant improvement in operating margin, with gains of 5 to 6 percentage points from where they were 12 months ago. Net revenue retention rates remained between 100% and 110%, and adjusted earnings of $1.65 per share jumped 36% year over year.

Revenue gains were consistent across geographies and product offerings. Interestingly, the AutoCAD segment saw the weakest change in year-over-year sales, but even there, a 13% rise showed the overall strength of demand for Autodesk’s software.

Autodesk is upbeat about its future prospects, projecting total revenue of $4.985 billion to $5.035 billion for the current fiscal year. Adjusted earnings of $6.52 to $6.71 per share would also make shareholders happy, and with more than $2 billion in free cash flow anticipated for fiscal 2023, Autodesk is in a strong position to keep making smart moves to bolster its growth and find new pathways for success.

Splunk stock goes thunk

However, shareholders in Splunk weren’t as fortunate. The stock fell 11% in early morning trading Thursday even after the data platform provider announced solid revenue gains in its fiscal second quarter.

Splunk’s backward-looking numbers for the quarter ending July 31 were strong. Total revenue amounted to nearly $800 million, up 32% year over year and supported by a 59% jump in cloud-based sales. Splunk’s cloud dollar-based net retention rate weighed in at 129%, showing solid loyalty from existing customers. The company now boasts 723 customers producing $1 million or more in annual recurring revenue, up 24% from where the number was 12 months ago.

However, Splunk’s guidance for the near future didn’t live up to high expectations. The company sees revenue of $835 million to $855 million in the third quarter, which would indicate an ongoing slowing in sequential sales gains. Even though Splunk boosted its full-year sales guidance to a new range of $3.35 billion to $3.4 billion, investors seemed disappointed by the implied annual revenue growth to roughly 26%.

The key to success for Splunk and most of its Nasdaq peers is whether they can keep drawing in new business for the products and services they provide. With so much uncertainty on the macroeconomic front, any sign that a company might not be able to sustain past growth rates results in the stock of that company getting punished. As long as investors have that attitude, it’s going to be hard for the Nasdaq to work its way out of its current bear market.

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

The post Here’s why the Nasdaq might not hit new highs soon appeared first on The Motley Fool Australia.

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More reading

• Could ASX 200 tech share Altium be in for another takeover approach?

Dan Caplinger 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 Autodesk. The Motley Fool Australia has recommended Autodesk. 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Thursday night to discuss the ASX’s best day in two weeks, plus a stronger Aussie dollar, a jump for IDP Education Ltd (ASX: IDL) and all eyes on the US Federal Reserve and the implications for Australian interest rates.

[youtube https://www.youtube.com/watch?v=Pnuql2ittCQ?feature=oembed&w=500&h=281]

The post ASX’s best day in a fortnight; US Fed in focus. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Deep Yellow, IDP, Pendal, and Qantas shares are soaring today
• IDP Education share price leaps 11% as revenue surges in FY22
• Experts name 2 ASX growth shares to buy when the market reopens
• Why IDP, PolyNovo, Sezzle, and St Barbara shares are pushing higher

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

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The Qantas Airways Limited (ASX: QAN) share price is under the spotlight as a potential investment opportunity after the airline reported its FY22 results to investors on Thursday.

Despite Qantas reporting a whopping $1.9b loss, the market appeared to like what it saw, with the airline’s shares rising by 7% yesterday.

But, one strong day doesn’t necessarily mean that Qantas is now too expensive to be worth buying.

Some analysts seemed to be impressed by what Qantas reported, according to reporting by The Australian.

Analyst thoughts on the result

The newspaper reported that analyst Matt Ryan from investment bank Barrenjoey said the Qantas FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) was in line with guidance.

However, the net debt was much better than the gearing range target. This enabled Qantas to announce a sizeable on-market share buyback.

Barrenjoey noted that Qantas is benefiting from a large recovery of demand, Ryan said this “can also be seen in the revenue received in advance which was almost $2 billion higher than six months ago. Guidance is broadly in line with our forecasts but assumes a reduction in domestic capacity of 10%.“

The Australian also reported on comments by E&P Financial analyst Cameron McDonald, who thought that the market would like the result and that the balance sheet is in a “healthy” position. He noted that the $400 million buyback was a surprise and that the company is guiding for “increased capacity to be deployed”. He also noted an increase in revenue per available seat kilometre, meaning price increases.

Profit generation and expected future profit can have a large impact on the Qantas share price, so let’s look at that.

How much of a recovery is Qantas seeing?

Qantas reported in its FY22 result that it made an underlying loss before tax of $1.86 billion and a statutory loss before tax of $1.19 billion. The difference between those two measures largely reflected the $686 million net gain on the sale of surplus land, which helped it reduce its COVID-related debt.

Net debt declined to $3.94 billion – Qantas’ optimal target range is $4.2 billion to $5.2 billion.

The airline said that it’s trying to offset the CPI inflation between FY19 to FY23 through additional cost and revenue initiatives, despite already delivering $1 billion in annual cost reductions.

It also said the RASK (revenue per available seat kilometre) performance is expected to fully recover increased fuel price across the group (despite the fuel bill for FY23 being expected to be $5 billion). It also said there would be a temporary unit cost increase to address operational challenges.

Qantas is reducing its domestic capacity by another 10% in response to higher fuel costs and operational challenges. Some capacity may be restored once operational resilience improves. In the first half of FY23, domestic capacity will be 95% of pre-COVID levels, in the second half of FY23, it will be 106% of pre-COVID levels.

Group international capacity is expected to increase as more planes enter service and overseas borders continue to open. In the first half of FY23, international capacity will be 65% of pre-COVID levels and then 84% in the second half.

My 2 cents on the Qantas share price

FY22 was another year full of disruption, particularly in the first half. However, I think Qantas seems ready to capitalise on the strong return of demand. The share buyback indicates to me that the company is confident with its expected profitability and financial position.

It’s hard to say what the oil price will do next, but it has dropped quite a bit since mid-June. This could also help Qantas’ profitability.

While Qantas isn’t a business I’d make one of my biggest portfolio positions, I’d be happy to buy some shares at the current Qantas share price thanks to the strong and improving outlook.

The post Is the Qantas share price a buy following the airline’s latest results? 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 Thursday
• Why Deep Yellow, IDP, Pendal, and Qantas shares are soaring today
• What’s going on with the Qantas dividend in 2022?
• The Qantas share price just flew 8% higher on $400 million share buyback

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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The Lynas Rare Earths Ltd (ASX: LYC) share price will be closely monitored on Friday after the company revealed explosive growth in its 2022 financial report. 

What did Lynas report?

• Revenue up 88% to $920 million
• Net profit after tax up 244% to $540.8 million
• Earnings before interest, taxation, depreciation and amortisation (EBITDA) up 156% to $601.2 million
• Closing cash and cash equivalents at $965.6 million
• No dividends will be paid

What else happened in FY22?

Lynas, as the only significant producer of rare earths minerals outside of China, has enjoyed the world’s desire to break a monopoly. For example, in June the US Department of Defence signed a $120 million deal with the company to build a rare earths separation facility in that country.

Of course, there is a downside to being an economic beneficiary of geopolitical tensions. Also in June, a cybersecurity company revealed Lynas was targeted by a pro-China social media campaign.

Lynas’ plant in Malaysia also had to put up with an 11-day shutdown in October due to COVID-19, although the company used that time to perform maintenance.

What did management say?

Lynas managing director and chief executive Amanda Lacaze said:

Favourable market conditions and strong demand for Lynas’ rare earth materials saw sales revenue increase by 88.1% and net profit after tax (NPAT) increase by 244% from the 2021 result. Rare earths prices were sustained at high levels during the second half of the year, and the NdPr market price remained 70% to 80% higher than in the same period last year.

Ongoing measures implemented across the business mitigated some of the challenges presented by the external environment, including shipping delays, input cost increases, water supply issues and the ongoing effects of the COVID-19 pandemic. The Lynas team prioritised production to meet the needs of our customers and remained focused on growing the business to support customer growth. 

What’s next?

The company declined to give specific guidance for the 2023 financial year.

However, it is in the midst of executing its “2025 growth plan”. This is how Lynas explains the strategy:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States. The objectives of the Lynas growth plan are to grow with the market, diversify the company’s industrial footprint, and increase the product range for customers.

Lacaze said:

Closing cash at $965.6m allows us to confidently progress our various growth initiatives. This is important as Lynas is uniquely positioned with a resilient supply chain for rare earth materials from our facilities in Western Australia and Malaysia to our partners in Vietnam, Japan and Europe. This is valued by our key customer base. 

Lynas share price snapshot

Like many resources stocks, the Lynas share price has been volatile.

The stock is down more than 19% year to date, but over the past 12 months it’s actually up 34%. The Lynas share price has dipped 11.9% over the past 10 days.

The stock had a price-to-earnings (P/E) ratio of 29.6 before the latest financials, but that now sits at 13.4.

Lynas does not pay out a dividend.

The post Lynas share price on watch after 244% profit jump, doubling revenue appeared first on The Motley Fool Australia.

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More reading

• Why this broker says the Vulcan share price can more than double
• Wesfarmers share price in focus as profit slips to $2.35b
• Goldman Sachs says Woolworths share price has huge upside potential
• Broker tips Allkem share price to rise 36% from current levels
• Earnings preview: Here are the ASX shares reporting today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has been having a good few weeks.

Since this time last month, the lithium developer’s shares have risen a sizeable 10%.

This is almost three times greater than what the ASX 200 index has achieved during the same period.

Can the Vulcan share price keep charging higher?

The good news for shareholders is that one broker believes the Vulcan share price has a long way to run before peaking.

According to a recent note out of Germany-based broker Alster Research, its analysts have reiterated their buy rating and lofty $20.00 price target on the company’s shares.

Based on the current Vulcan share price of $8.20, this implies potential upside of 144% over the next 12 months.

Why is it bullish?

Alster is bullish on Vulcan due to its belief that the company’s Zero Carbon Lithium project in Germany is “predestined to mark the beginning of the decarbonization of the battery industry.”

The broker also highlights that the company is “experiencing an increasing positive momentum of the political backing, as Germany’s high dependence on Russian gas produces a more favorable climate towards geothermal energy.”

Vulcan is looking to power its operation with geothermal energy and sell whatever is left over.

All in all, the broker believes the next 12 months will be a landmark period for the company. It concludes:

Vulcan faces a landmark year, as it will soon enter a multi-year capex-intensive phase. Building on a strong cash position of EUR 175m per 30 June 2022, the company is preparing its drilling program to commence, while the rigs are currently being prepared. The favorable political environment should continue to provide tailwinds. Regarding the upcoming DFS and PFS, we will update our capex projections upon release. More importantly, we expect the production targets to increase, which we believe to be a catalyst for Vulcan’s share price. We confirm our PT with AUD 20.00, equivalent to EUR 13.71 and reiterate to BUY.

The post Why this broker says the Vulcan share price can more than double appeared first on The Motley Fool Australia.

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More reading

• Wesfarmers share price in focus as profit slips to $2.35b
• Goldman Sachs says Woolworths share price has huge upside potential
• Broker tips Allkem share price to rise 36% from current levels
• Earnings preview: Here are the ASX shares reporting today
• 3 ASX 200 shares trading ex-dividend on Monday

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 has been having a strong week.

Since the end of last week, the lithium miner’s shares have risen an impressive 11%.

Can the Allkem share price keep rising?

One leading broker has responded very positively to Allkem’s full year results this week and is tipping its shares to keep climbing from here.

According to a note out of Bell Potter, its analysts have reiterated their buy rating with an improved price target of $18.76.

Based on the current Allkem share price of $13.75, this implies potential upside of 36% for investors over the next 12 months.

What did the broker say?

Bell Potter notes that Allkem delivered a profit after tax of US$354 million in FY 2022, which was broadly in line with its estimate. It added:

The result was a substantial turnaround on the prior year driven by a lift in sales volumes at Mt Cattlin (up 36%) and a substantial increase in realised prices.

The good news is that the broker is expecting another jump in profits next year. In fact, its analysts believe that Allkem’s EBITDA will double from US$531 million to US$1,071 million. It adds:

We expect AKE’s cash generation to lift substantially into 2023 with ongoing strength in lithium demand, commodity prices and production growth. AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth; it has a portfolio of growth projects, balance sheet strength and cash flow from existing projects to achieve this. EPS changes as a result of this report are: FY23 -5%; and no material change over FY24-25.

In light of this, the broker believes that the company’s shares are good value at the current level.

The post Broker tips Allkem share price to rise 36% from current levels appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are the ASX shares reporting today
• 3 ASX 200 shares trading ex-dividend on Monday
• Broker says Coles share price is ‘offering good value’
• Here are 2 ASX dividend shares that analysts are tipping as buys
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in Allkem 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 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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It is the last day of the busiest week in the August earnings season. Thankfully, you can ease into the weekend with far fewer ASX shares set to report their results today.

However, there are still a handful of big names that you might want to check out. Here’s a quick summary of what to expect today so you have a jump on the market.

ASX shares set to report today (smallest to largest)

Immutep Ltd (ASX: IMM), $264.2 million

Infomedia Limited (ASX: IFM), $539.2 million

Mayne Pharma Group Ltd (ASX: MYX), $574.1 million

Integral Diagnostics Ltd (ASX: IDX), $720.4 million

Costa Group Holdings Ltd (ASX: CGC), $1.27 billion

Polynovo Ltd (ASX: PNV), $1.33 billion

Nextdc Ltd (ASX: NXT), $5.09 billion

Ramsay Health Care Limited (ASX: RHC), $16.69 billion

Wesfarmers Ltd (ASX: WES), $54.02 billion

(Market capitalisations as of 22 August 2022)

To see the complete list of ASX shares, visit our reporting season calendar here.

What to expect

As there are few big names reporting today, Wesfarmers’ full-years results will probably turn the most heads. Investors will be hoping to see the conglomerate’s retail portfolio ward off margin crippling side effects of inflation in its latest results.

In anticipation of Wesfarmers’ financials, analysts at Citi have forecast a net profit after tax (NPAT) of $2,237 million. This would represent a 6% decrease from the company’s FY21 result of $2,380 million. However, that hasn’t prevented Morgans from assigning a $58.40 price target to this ASX 200 share.

One other ASX-listed blue chip releasing its results today is Ramsay Health Care. The private hospital owner and operator is expected to report net profits in the ballpark of $321 million.

Furthermore, the company is still wrangling with its Ramsay Santé operations to provide due diligence for the active KKR consortium takeover proposal.

Finally, keeping with the healthcare theme, Polynovo will be an interesting name to watch today. The medical device developer has been known for its high short interest.

However, analysts are expecting the company to report a $200,000 profit. This might sound dismal, but it would represent a substantial improvement from the $4.6 million loss in FY21.

Don’t forget to check back in throughout the day to see all the latest results from your favourite ASX shares.

The post Earnings preview: Here are the ASX shares reporting today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• How did the Polynovo share price respond last time the company reported?
• Wesfarmers share price edges higher ahead of Thursday’s results
• Here’s what happened to the Wesfarmers share price last time the company reported
• Earnings preview: Here are 3 ASX 200 shares reporting this week

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 positions in and has recommended Infomedia and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended COSTA GRP FPO, Infomedia, Integral Diagnostics Ltd, and Ramsay Health Care 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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ASX reporting season is always a busy time of the year for dividend investors.

Not only are S&P/ASX 200 Index (ASX: XJO) shares lifting the lid on their financial results, but they’re also declaring lucrative dividends.

When it comes to dividends, there’s an important date to be aware of: the ex-dividend date.

This is the date that a company’s shares trade without an entitlement to the upcoming dividend payment.

In other words, if you buy shares on or after the ex-dividend date, you won’t be eligible to receive the latest dividend.

To compensate for this, a company’s shares usually drop on the day they turn ex-dividend.

This is because money is flowing out of the company’s cash reserves to pay the dividends, lowering the value of the business. 

What’s more, some shareholders will look to offload shares once they’ve locked in the dividend payment.

The following ASX 200 shares will be going ex-dividend on Monday. This means that today is the last day investors will be able to snap up these companies’ latest dividend payments.

Challenger Ltd (ASX: CGF)

On Monday, Challenger shares will be trading without a fully franked final dividend of 11.5 cents. 

The ASX 200 annuities provider recently released its FY22 results, boosting its final dividend by 10%.

Investors who own Challenger shares by the time the market closes today should see this payment come through on 21 September.

Alternatively, investors have the option of forgoing this cash payment to instead participate in the company’s dividend reinvestment plan (DRP).

Across the full year, Challenger declared total FY22 dividends of 23 cents, fully franked.

This means Challenger shares are currently parading a trailing dividend yield of 3.5%. With the benefit of franking credits, this grosses up to 5.0%.

Ansell Limited (ASX: ANN)

Ansell is another ASX 200 share turning ex-dividend on Monday.

So, today is the last trading day to lock in the company’s unfranked final dividend of 31.2 US cents. 

It will be paid on 15 September to shareholders who decide not to participate in the company’s DRP.

Earlier in the week, Ansell announced its FY22 results, lowering the final dividend payment by 28% as profit slumped.

Keep in mind that the company benefited from a COVID-related boost to demand, so it was cycling strong comparables from FY21.

The most recent financial year saw Ansell declare total dividends of 55.45 US cents. This puts Ansell shares on a trailing dividend yield of 2.9%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Last but not least, Pinnacle shares will also be going ex-dividend on Monday.

The ASX 200 financial share recently announced a fully franked final dividend of 17.5 cents, marginally higher than that of the prior year.

Investors on the company’s share registry by the time the market closes today should expect to see this payment land on 16 September. A DRP is also available.

Across FY22, Pinnacle declared total dividends of 35 cents, fully franked. As a result, Pinnacle shares currently come with a 3.2% trailing dividend yield, which grosses up to 4.6%.

The post 3 ASX 200 shares trading ex-dividend on Monday appeared first on The Motley Fool Australia.

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More reading

• Broker says Coles share price is ‘offering good value’
• Here are 2 ASX dividend shares that analysts are tipping as buys
• 5 things to watch on the ASX 200 on Friday
• 3 ASX All Ords shares that leapt higher on FY22 results today
• The Pendal takeover will create a $200b asset manager, so why is the Perpetual share price tanking?

Motley Fool contributor Cathryn Goh 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 PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Ansell Ltd. and Challenger 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 Coles Group Ltd (ASX: COL) share price has taken a bit of a tumble this week.

Since the end of last week, the supermarket giant’s shares have lost 9% of their value.

This has been caused by a lukewarm response to the company’s full year results by investors.

Is the Coles share price now in the buy zone?

One leading broker that is urging investors to take advantage of the Coles share price pullback is Morgans.

According to the note, the broker has retained its add rating with a slightly trimmed price target of $20.00.

Based on the current Coles share price of $17.65, this implies potential upside of over 13% for investors over the next 12 months.

In addition, the broker is forecasting a fully franked 65 cents per share dividend in FY 2023. This equates to a 3.7% yield, which stretches the total potential return to 17%.

What did the broker say?

Morgans notes that Coles’ “FY22 result was slightly above expectations.” It was also pleased to see better than expected supermarkets and liquor earnings, market share gains as local shopping unwound, good progress with its Smarter Selling initiatives. Morgans highlights that the latter is on course to reach cumulative benefits of $1 billion by the end of FY 2023.

A couple of disappointments, though, were that its “Capex for Witron and Ocado transformation projects have increased vs previous guidance” and its “EBIT margin fell 20bp to 4.7% due to cost inflation and investments.”

Nevertheless, the broker remains positive on the Coles share price due to its attractive valuation, good yield, and defensive qualities.

Morgans concludes:

Trading on 22.6x FY23F PE and 3.6% yield we continue to see COL as offering good value with the company possessing defensive characteristics that should hold up relatively well in a weaker economic environment.

The post Broker says Coles share price is ‘offering good value’ appeared first on The Motley Fool Australia.

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More reading

• Here are 2 ASX dividend shares that analysts are tipping as buys
• 5 things to watch on the ASX 200 on Friday
• 3 ASX All Ords shares that leapt higher on FY22 results today
• The Pendal takeover will create a $200b asset manager, so why is the Perpetual share price tanking?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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