Tag: Motley Fool

The Bitcoin (CRYPTO: BTC) price has edged up 1% over the past few hours. Yet the world’s original crypto is down 13% since this time last week, currently trading for US$21,463 (AU$31,131).

Meanwhile, Ethereum (CRYPTO: ETH), the world’s number two token by market cap, has tumbled 19% over the seven days, according to data from CoinMarketCap. Ether is currently trading for US$1,605.

That’s a far different story than we saw playing out in July.

Last month BTC gained 22% while the Ethereum price rocked 56% higher.

Which begs the question, is the Bitcoin price rally and broader crypto charge over?

Why is the Bitcoin price in retreat?

After posting a strong run from mid-June through mid-August, part of the past week’s price falls are likely due to some near-term profit taking.

A larger part of the retreat comes from the renewed risk-off sentiment among global investors. This follows on last week’s release of the minutes from the US Federal Reserve, which reiterated the central bank’s intentions to continue lifting interest rates until it gets soaring inflation under control

The Bitcoin price has moved very much in tangent with risk assets in 2022, though often with bigger ups and downs than witnessed with growth shares.

With investors re-evaluating the prospect of sharply higher rates, the tech-heavy NASDAQ closed down 2% on Friday. That put the index down 2.7% for the week after a lengthy stretch of gains.

That doesn’t necessarily mean the Bitcoin price won’t rally higher again. But so long as other risk assets are floundering, cryptos will have a hard time recouping their former highs.

All-time highs

It’s easy to forget that both of the world’s top two cryptos were trading at all-time highs just nine short months ago.

The Bitcoin price hit record highs of US$68,790 on 10 November 2021. It’s down 69% from that high water mark.

As for Ethereum, it reached its own apex on 16 November, trading for US$4,892. Ether has dropped 68% from those highs.

The post Cryptos retreat. Is the Bitcoin price rally over? appeared first on The Motley Fool Australia.

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More reading

• 3 cryptos I would regret not buying on the dip
• This company profited $2.6 billion from crypto. What is it investing in now?
• 2 cryptos that could lead the market recovery
• Why Bitcoin, Ethereum, and Dogecoin are slumping today
• This is why Ethereum has been outpacing the Bitcoin price gains. Will it last?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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Graincorp Ltd (ASX: GNC) shares have been among some of the strongest performers on the S&P/ASX 200 Index (ASX: XJO) over the past year.

Since 23 August 2021, Graincorp shares have gained 41%, while the S&P/ASX 200 Index (ASX: XJO) is down 6% over the 12 months.

And today marks another day of outperformance for the integrated grain and edible oils business, with shares up 0.7% to $8.61, as the ASX tumbles 0.86%.

Even with the big share price gains, Graincorp’s trailing dividend yield remains at a healthy 2.6%, fully franked.

But after such a strong run, is it too late to buy Graincorp shares in 2022?

Food prices join energy prices in shooting higher

It’s not just energy prices that have gone through the roof this year. Grains and most food prices have shot higher as well.

Part of those price hikes are linked to higher energy costs, as most farming requires a fair bit of energy input, even before the final, processed products need to be transported to market.

Russia’s invasion of Ukraine also contributed to fast-rising prices. While Ukraine is again exporting grain, the levels are far below the five to six million tonnes the nation was exporting before the war.

Higher grain prices and people’s need to keep eating should continue to offer tailwinds for Graincorp shares.

Saxo Bank’s country head of direct sales David Harvie is bullish on the outlook for the company.

Speaking to my Fool colleague Mitchell Lawler in Brisbane last week, Harvie said that the ASX agriculture share is one both he and Saxo like the look of.

“I’ll always start with the fundamentals,” he said. “And that’s why from an investment standpoint, I’d probably pick something like a Graincorp. That thematic of food requirement and surety of production over time.”

Graincorp shares lifted by upgraded guidance

Earlier this month, Graincorp shares got a big lift after the company upgraded its earnings guidance for the period ending 30 September.

The company’s new forecast envisions earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the range of $680 million-$730 million, up from previous guidance of $590 million-$670 million.

Graincorp also increased its net profits after tax (NPAT) guidance from $365 million-$400 million, up from the previous guidance of $310 million-$370 million.

The post Up 41% in a year, is it too late to buy Graincorp shares in 2022? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?
• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• 3 ASX 200 shares trading ex-dividend today
• 3 tips for surviving a recession, according to Warren Buffett

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

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The S&P/ASX 200 Index (ASX: XJO) has careened out of bed on the wrong side it seems, giving investors a depressing start to the trading week. At the time of writing, the ASX 200 has lost a meaty 0.92%, down to just over 7,040 points. 

But rather than trying to figure all of that out, let’s instead check out the shares currently making their presence known on the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Monday

Core Lithium Ltd (ASX: CXO)

The first ASX 200 share up today is lithium stock Core Lithium. So far this Monday, a sizeable 13.82 million Core Lithium shares have traded hands as it currently stands. There’s been no news or announcements out of Core Lithium today at all.

So this elevated trading volume might have something to do with the movements of the company’s share price itself. Core has shed a weighty 2% of its value so far today and is back down to $1.37 a share.

Pilbara Minerals Ltd (ASX: PLS)

Our next ASX 200 share up this Monday is another lithium stock in Pilbara Minerals. At this point in time, we’ve seen a notable 17.58 million Plbara shares swap owners on the ASX boards.

With again no news out of this company, it looks as though we have some more share price movements to thank for this volume. Fortunately for investors, it’s going in the right direction for Pilbara, with the lithium producer up a healthy 3.3% at $1.25 a share. My Fool colleague Brendon looked deeper into these moves this afternoon.

Telstra Corporation Ltd (ASX: TLS)

Finally today we have ASX 200 telco Telstra. This Monday has seen a hefty 20.04 million Telstra shares exchanged on the markets thus far. This could be a consequence of Telstra’s market-defying moves today.

At present, the telecom company has gained another 0.85% to $4.16 a share, the highest the telco has traded since early January. It’s probably this solid performance that has elicited the high volumes we are witnessing.

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

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More reading

• Down 16% in a week, what’s next for the Core Lithium share price?
• Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week?
• Looking to buy Telstra shares? Here’s how the telco’s results stack up against TPG’s
• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• 3 ASX 200 shares trading ex-dividend today

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation 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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It is an underwhelming start to the week for the Core Lithium Ltd (ASX: CXO) share price. However, the lithium explorer is not the only ASX lithium share facing a deterioration in sentiment on Monday.

In afternoon trading, shares in Core Lithium are in the red by 2.86%, taking the share price down to $1.36. Unfortunately, this only adds to a recent downward trend for the company’s shares. Factoring in today’s move, Core Lithium shares are now 15.7% worse off than a week ago.

Given the sizeable nature of the move — and the short timeframe in which it has transpired — it seems worthwhile investigating what could be feeding into the fear.

Why are lithium bulls getting cold feet now?

Typically, the underlying commodity price is to blame when the majority of mining companies of a specific resource move together. For some context, here are the share price movements of some other popular lithium names in the last seven days:

• Piedmont Lithium Inc (ASX: PLL) down 12.4%
• Liontown Resources Limited (ASX: LTR) down 4.7%
• Pilbara Minerals Ltd (ASX: PLS) down 2.2%

However, a quick inspection of the lithium price on Trading Economics reveals that the battery commodity has held steady over the past week. Consequently, we need to look elsewhere to find a possible detractor from the Core Lithium share price.

At a higher level, The Motley Fool recently reported on potential alternatives to lithium for a green energy future. On 11 August, we covered claims from a Brisbane-based company that it had produced a graphene aluminium-ion battery capable of charging 70 times faster than a lithium-ion one.

Additionally, news broke of carmaker Porsche conducting virtual tests on a hydrogen-powered car last week. Rather than the popularised hydrogen fuel-cell technology, Porsche’s research involves a hydrogen-combustion engine.

Both of these developments might, at least partly, be responsible for some of the dampening in the Core Lithium share price recently.

Core Lithium share price in context

The past week has offered a rather cold reception for the Core Lithium share price, but let’s put it into context.

In the past month, the lithium explorer is still up a sweet 31%. Zoom out to six months and that positive return balloons to 83%. I doubt there would be too many shareholders displeased with that performance. Especially when we consider that the S&P/ASX All Ordinaries Index (ASX: XAO) is flashing red over the past six months, down 1.8%.

On a positive note, Macquarie has recently boosted its lithium forecasts. Analysts have had their confidence reinvigorated as sales of electric vehicles are remaining strong despite the inflationary environment.

The post Down 16% in a week, what’s next for the Core Lithium share price? appeared first on The Motley Fool Australia.

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More reading

• Could ASX battery minerals shares be in for a boost next month?
• Why has the Core Lithium share price rocketed 50% in a month?
• Could Porsche’s new test run threaten the outlook for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Core Lithium share price careering 5% lower today?

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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Accent Group Ltd (ASX: AX1)

According to a note out of Morgans, its analysts have upgraded this footwear retailer’s shares to an add rating with an improved price target of $2.00. The broker made the move following a positive start to FY 2023 from Accent. It highlights that customer activity is showing no signs of a pullback so far and demand for new products is running strong. The Accent share price is trading at $1.69 on Monday afternoon.

Allkem Ltd (ASX: AKE)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this lithium miner’s shares by almost a third to $21.00. Macquarie has become even more bullish on Allkem after lifting its lithium price forecasts in response to strong spot prices and tight supply. This has led to major upgrades to its earnings estimates for Allkem over the next few years. The Allkem share price is fetching $12.50 on Monday.

Stockland Corporation Ltd (ASX: SGP)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this property company’s shares to $4.50. The broker highlights that Stockland recently delivered a solid full year result against a challenging backdrop. And while the broker acknowledges concerns surrounding the softening residential outlook, it feels this has been factored into its share price. Goldman also highlights that the company is progressing on its recently refreshed corporate strategy and expects this to support its growth in the coming years. The Stockland share price is trading at $3.64 today.

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

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More reading

• Why these ASX lithium shares are outperforming the market today
• Could ASX battery minerals shares be in for a boost next month?
• 2 excellent ASX growth shares that analysts say are buys
• Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today
• Could Porsche’s new test run threaten the outlook for ASX lithium shares?

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 recommended Accent Group. 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’s been a bit of a depressing start to the trading week for ASX shares. So far this Monday, the S&P/ASX 200 Index (ASX: XJO) has slipped by a notable 1.03% to back under 7,050 points.

But for the BetaShares NASDAQ 100 ETF (ASX: NDQ), the drop has been even worse.

The US-focused exchange-traded fund (ETF) has lost a nasty 1.92% so far on Monday and is currently trading at $29.55 a unit.

So what’s going on here that might explain why this ETF is underperforming the ASX 200 by almost 1% today?

Well, for starters, unlike almost every share on the ASX, the BetaShares NASDAQ 100 ETF has no correlation whatsoever to the Australian share market.

That’s because it’s an ETF that tracks the NASDAQ-100 Index (NASDAQ: NDX) in the United States, which naturally only comprises shares listed on America’s NASDAQ stock exchange. So no ASX shares in this ETF.

So why then is this ETF plunging in value so dramatically today?

Why is the BetaShares NASDAQ ETF starting the week off so badly?

Well, to answer that, let’s check out the NASDAQ 100 Index itself. On Friday night (our time), the NASDAQ 100 fell a hefty 1.95% to 13,242.9 points.

The NASDAQ’s largest holdings led these falls. Take Apple Inc (NASDAQ: AAPL). The iPhone maker lost 1.51% last Friday to US$171.52 a share.

Microsoft Corporation (NASDAQ: MSFT) lost 1.39% to US$286.15. Amazon.com Inc (NASDAQ: AMZN) fell by 2.86% to US$138.23, while Tesla Inc (NASDAQ: TSLA) dropped 2.05% to US$890.

Those companies are by far the largest listing on the NASDAQ 100 and, therefore, in the NDQ ETF. In fact, on the latest numbers, Apple accounted for a meaty 13.6% of NDQ’s entire portfolio weighting. Microsoft is responsible for a further 10.5%, while Amazon and Tesla add 7% and 4.5%, respectively.

So we can safely say that wherever these companies go, the BetaShares NASDAQ 100 ETF generally follows.

Given the performance of the NASDAQ 100 Index in the US’s last trading session, as well as the performances of NDQ’s top companies, it’s perhaps no surprise that this ETF is having such a tough time on the ASX boards today.

But longer-term investors don’t have too much to complain about. As of 31 July, the BetaShares NASDAQ 100 ETF has averaged an annual return of 20.69% per annum over the past five years. This ETF charges a management fee of 0.48% per annum.

The post Why is the BetaShares NASDAQ 100 ETF having such an awful start to the week? appeared first on The Motley Fool Australia.

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More reading

• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• 3 ASX 200 shares trading ex-dividend today
• 3 tips for surviving a recession, according to Warren Buffett
• Janison share price slides as net loss after tax falls by triple digits
• Why these ASX lithium shares are outperforming the market today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Amazon and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Limited (ASX: FMG) share price is rangebound today on no news. At the time of writing, Fortescue shares are less than 1% higher at $19.20.

Meanwhile, iron ore is flat at USD$104/T, having extended a reversal period that started on 1 August.

Returns for both are seen on the chart below for the previous 12 months.

What’s up with the Fortescue share price?

After market close on Friday, Fortescue signed an agreement with the Government of Gabon. This was done through its 80% owned company, Ivindo Iron. 

Fortescue’s signing follows on from agreements made between the company and the Gabonese Government in 2021.

The pair agreed to develop the Belinga Iron Ore Project, located in the Gabonese Republic.

Fortescue now expects to invest approximately US$90 million over 3 years for exploration works at the site. Initially, works will comprise feasibility works and logistical solutions for the project.

Meanwhile, the price of iron ore continues to soften and has retreated to levels of December 2021.

One key driver for the downside is an “extended downturn” in demand for industrial inputs from China, Trading Economics says.

“Demand has also been suppressed by a worsening macroeconomic backdrop for the Chinese economy, with the latest data showing concerning figures for industrial production and retail sales that added to woes regarding the financial stability of the country’s property developers,” it added.

Whilst the news from Fortescue over the weekend appears to be positive, the share price looks to be offset by troubles in the iron ore price today.

It remains more than 5% down over the past 12 months, or 1% down this year to date.

The post What’s with the Fortescue share price on Monday? appeared first on The Motley Fool Australia.

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More reading

• Could this be set to boost ASX 200 iron ore shares?
• Why the Fortescue share price is on watch next week
• Worried about the iron ore price? Why the need for it ‘ain’t going anywhere’: broker
• 1 factor that could drag on Fortescue Future Industries’ green dream
• Can shareholders have bigger dividends AND more spending on Fortescue Future Industries?

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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Investors considering Telstra Corporation Ltd (ASX: TLS) shares should keep in mind what’s going on with the wider industry, which includes peers like TPG Telecom Ltd (ASX: TPG).

It’s worth asking whether Telstra is the best telco in the sector?

It’s certainly the biggest, with a current market capitalisation of $47.6 billion according to the ASX.

But, let’s have a look at the growth rates of both businesses.

Telstra versus TPG

First, it’s important to keep in mind that Telstra reported its result for a full 12 months to 30 June 2022. But, TPG’s recent result was for the six months to 30 June 2022.

Telstra reported that its total income declined 4.7% to $22 billion. TPG’s half-year service revenue increased by 0.7% to $2.175 billion. It benefited from a larger mobile subscriber base, which is expected to help in the second half.

TPG reported that it is seeing “strong” mobile momentum, with a 135,000 net increase of mobile subscribers. Telstra said that it added 155,000 net retail postpaid handheld services and 218,000 wholesale services.

Telstra’s mobile average revenue per user (ARPU) for postpaid handheld went up 2.9%, while TPG’s ARPU for mobile went up 1%.

In terms of earnings before interest, tax, depreciation, and amortisation (EBITDA), TPG’s half-year EBITDA dropped 5.3% to $837 million, though excluding $35 million of restructuring costs, it was $872 million. In FY22 guidance terms, Telstra’s underlying EBITDA rose 8.4% with mobile EBITDA growing 21.2%.

Interestingly, both Telstra and TPG reported dividend growth. TPG’s board grew the interim dividend by 12.5% to 9 cents per share. Telstra decided to increase its final dividend by 6.25% to 8.5 cents per share – that was the first increase in seven years for owners of Telstra shares.

Regional network sharing agreement

Earlier this year, the two telecommunication businesses announced an agreement to work together.

Telstra said that, subject to clearance by the ACCC, this will be a win for regional Australia, providing more choice and additional capacity. Telstra also pointed out that it has committed $616 million to secure the maximum possible amount of low band spectrum to maintain its “leading mobile network for customers, especially in regional and rural Australia”.

For TPG, the proposed network sharing deal will boost its mobile coverage to 98.8% of the population and “deliver a step change in mobile competition across regional Australia”. As a result, customers will be able to access regional 5G services faster than otherwise would have been achievable.

Outlook

TPG said it expects earnings momentum to accelerate in the second half of FY2, with the full run rate benefit of a higher mobile subscriber base, targeted strategies, and tactical pricing to support fixed product margins. It’s on track to deliver merger synergies of between $125 million to $150 million in 2022, a year earlier than expected.

With Telstra’s T25 strategy, it’s aiming to grow its earnings per share (EPS) by the high-teens between FY21 to FY25. In FY23, Telstra is expecting continuing underlying growth, with underlying EBITDA guided to be between $7.8 billion to $8 billion in FY23, which could be a boost for Telstra shares. It seems Telstra is starting to turn things around.

The post Looking to buy Telstra shares? Here’s how the telco’s results stack up against TPG’s appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Why AGL, Fisher & Paykel, Inghams, and TPG shares are sinking today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• TPG share price tumbles 9% on first half results
• Earnings preview: Here’s which ASX shares are reporting today

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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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 Zip Co Ltd (ASX: ZIP) share price continues to retrace on Monday following its heavy sell-off last week.

At the time of writing, the buy now, pay later (BNPL) company’s shares are swapping hands at 99 cents, down 4.81%.

This comes after the share dropped more than 20% last week as investors took profit off the table.

It is worth noting that Zip shares accelerated from a multi-year low of 43.5 cents on 23 June to a high of $1.52 on 28 July, representing a 250% gain.

Let’s look at what’s causing the BNPL’s shares to stall again today.

Why are Zip shares tanking?

The Zip share price is coming under selling pressure following negative sentiment across the broader sector.

To compare, the S&P/ASX 200 Financials Index (ASX: XFJ) is recording a 1.3% loss today.

Re-emerging fear about more aggressive interest rate hikes from the Federal Reserve appears to be weighing down investor confidence. This is having a rampant effect on the Aussie stock market.

The Dow Jones Industrial Average futures is down by 126 points, or 0.37%.

The S&P 500 and Nasdaq 100 futures are also in the red by 0.39% and 0.47%, respectively.

It could be a volatile week ahead on the back of Fed Reserve chair Jerome Powell’s latest comments on inflation.

Similarly, other shares in BNPL companies are heading south today.

The Block Inc (ASX: SQ2) share price is down 6.58%, fetching $107.33.

On the other hand, shares in Sezzle Inc (ASX: SZL) are backtracking 6.29% to 74.5 cents.

Zip share price snapshot

In early 2021, the Zip share price reached an all-time high of $14.53.

It was also valued more than popular retail chain JB Hi-Fi Limited (ASX: JBH).

However, those days seem like a distant memory as the BNPL provider reversed its historic gains. Now it commands a market capitalisation of around $715.50 million, well under the $4.84 billion that JB Hi-FI is currently worth.

Year to date, Zip shares are down by roughly 77%.

The post Why is the Zip share price sinking 5% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Block share price tumbling 6% today?
• These are the 10 most shorted ASX shares
• How does Zip’s ‘Operation Blue Sky’ stack up against Block’s battening down of the hatches?
• Why is the Zip share price behaving so strangely on the ASX today?
• Here are the top 10 ASX 200 shares today

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

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The National Australia Bank Ltd (ASX: NAB) share price is in the red today, alongside the broader market. However, there’s plenty to get excited about when it comes to the ‘big four’ bank – namely, its 4.57% dividend yield.

NAB shares are currently swapping hands for $30.52 apiece, 1.29% lower than their previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 1% so far today.

So, how does the NAB’s dividend yield stack up against other ASX 200 bank shares? Let’s take a look.

NAB shares offer 4.6% yield. Does it stack up?

NAB shares currently offer a decent dividend yield of around 4.6%, having handed investors $1.40 in dividends per share over the last 12 months. However, some of its prominent peers boast far greater offerings. Indeed, NAB’s dividend yield is the second smallest of all the ‘big four’ banks right now.

It only tops that of Commonwealth Bank of Australia (ASX: CBA). The banking giant’s dividend yield comes in at around 3.9%.

Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ), meanwhile, boast a near-6.3% dividend yield while those in Westpac Banking Corp (ASX: WBC) offer a yield of around 5.5%.

Looking beyond the ‘big four’, banking giant Macquarie Group Ltd (ASX: MQG) has a decent but uncompetitive dividend yield of approximately 2.3%.

Some of the ASX 200’s smaller bank shares are also outperforming NAB when it comes to dividends.

Shares in $5.3 billion regional bank Bendigo and Adelaide Bank Ltd (ASX: BEN) are currently trading with a yield of around 5.8%. Meanwhile, those of the $4.6 billion Bank of Queensland Ltd (ASX: BOQ) offer an approximate 6.2% dividend yield.

However, NAB has been tipped to grow its dividends over the medium term.

Goldman Sachs believes the bank will pay out $1.50 per share in financial year 2022, as my Fool colleague James reports. Presumably, the broker is tipping NAB’s final dividend to come to 77 cents.

And the broker sees even brighter skies ahead for financial year 2023, tipping the bank to pay $1.70 per share in dividends for the period.

The post The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend today
• 3 tips for surviving a recession, according to Warren Buffett
• Janison share price slides as net loss after tax falls by triple digits
• Why these ASX lithium shares are outperforming the market today
• Could the BHP share price be set to benefit from ‘China reopening’?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and 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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