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Are you looking for dividend shares for your income portfolio?

If you are, you may want to check out the two listed below that have been rated as buys by brokers.

Here’s what you need to know about these ASX 200 dividend shares:

Harvey Norman Holdings Limited (ASX: HVN)

The first ASX 200 dividend share that could be in the buy zone is Harvey Norman.

It is of course a retail giant selling furniture, bedding, computers, communications, and consumer electrical products. In addition, the company invests in property, leases premises, and provides consumer finance and other commercial loans.

It has been tipped as a buy by the team at Goldman Sachs. Its analysts like Harvey Norman due to their belief that it is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics.

In addition, Goldman is expecting some big dividend yields in the near term. Its analysts are forecasting fully franked dividends per share of 36 cents in FY 2022 and 36.3 cents in FY 2023. Based on the current Harvey Norman share price of $4.47, this will mean yields of 8%.

Goldman has a buy rating and $4.60 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to consider is South32. It is a diversified mining and metals company producing alumina, aluminium, bauxite, copper, energy and metallurgical coal, lead, manganese, nickel, silver, and zinc.

Thanks partly to its exposure to metals necessary for the decarbonisation megatrend, analysts are expecting South32 to generate significant earnings and free cash flow over the coming years. This is also expected to underpin some very big dividends.

Morgans, for example, is forecasting fully franked dividends per share of ~28 cents in FY 2022 and ~35 cents in FY 2023. Based on the current South32 share price of $4.04, this will mean yields of 6.9% and 8.7%, respectively.

The broker also sees plenty of value in the South32 share price at current levels. It has an add rating and $6.00 price target on its shares.

The post 2 ASX 200 dividend shares with ~7%+ yields that experts rate as buys appeared first on The Motley Fool Australia.

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More reading

• What’s impacting ASX 200 retail shares today?
• Brokers name 2 ASX dividend shares to buy with 4%+ yields
• Top broker predicts 50% upside for South32 share price. Here’s why
• 2 ASX 200 dividend shares analysts rate as buys
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman 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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After a soul-crushing first half of 2022, both ASX shares and US stocks have really picked up in the past few weeks.

The S&P/ASX 200 Index (ASX: XJO) has now gained almost 10% since its 20 June trough. The S&P 500 Index (SP: .INX) has climbed 14.8% over a similar period.

And amazingly, the Nasdaq Composite (NASDAQ: .IXIC) has now rocketed more than 20% since mid-June.

That’s a bull market, believe it or not.

Thursday morning was something of a watershed moment as the latest figures pushed the yearly US inflation percentage downwards.

That aroused stock investors no end, pushing the NASDAQ up 2.9% for the day. The ASX 200 followed with a 1.1% climb.

This is all very exciting. Some people might even dare to think ASX shares have now passed the bottom.

However, multiple experts are warning against complacency.

‘Too early to say we’re out of the woods’

While DeVere Group chief executive Nigel Green welcomed the retreat of US inflation, he cautioned that investors needed to understand the full picture before partying like it’s 1999.

“It is still too early to say we’re out of the woods with inflation and the impact it could have on the Fed’s decision-making,” he said.

“Some of the drivers of the 40-year high inflation rate we’ve been seeing are subsiding — commodity prices are coming down, and supply chain issues are decreasing. But we still have rising wages, and this will continue to drive core inflation.”

MFS Investment Management portfolio manager Rob Almeida warned investors that none of the behaviours typically seen when the market bottoms have yet to materialise.

“Historically, markets have tended to bottom when investors give up — stop caring, vow never to invest again and no longer ask ‘Is this the bottom?’” he said.

“I’ve lived through that twice and I don’t think we’re there yet. But when investors stop asking whether we are, we will be.”

Green cautioned investors against getting caught up in the excitement and buying anything and everything.

“You must buy wisely in this volatile environment,” he said.

“Investors’ response should be to avoid complacency and a ‘buy everything’ mindset and stick to basic investment fundamentals.” 

ASX shares still under stress

Local experts further warned that ASX shares will be under pressure for the foreseeable future.

It seems the steep rise in interest rates over the past three months is starting to bite. Consumer advocacy group Choice found this week that 90% of Australians have seen their expenses balloon in the past year.

“Almost all households are feeling the pressure of price rises,” said Choice editor Marg Rafferty.

“Cost of living pressures continue to be a major issue for Australians with our latest Consumer Pulse data showing 23% of households are struggling to get by, which is up from 18% in June last year.”

Furthermore, Nucleus Wealth chief investment officer Damien Klassen reckons ASX shares are still overvalued.

On face value, the ASX currently trades at a price-to-earnings (P/E) ratio of about 14.7 times, which is significantly cheaper than the rest of the world at 16.1 times.

But the trouble is that the dominant mining and banking shares skew that measurement with their slim PE ratios.

“For resources, it is because it has volatile revenues and even more volatile profits. For banks, the extreme leverage used increases the risk,” Klassen said on a Nucleus blog post.

“If you strip these sectors out and compare Australia excluding banks and resources, it no longer looks cheap. Actually, it’s well above the 90th percentile, close to as expensive relative to the world as it has ever been.”

The post ASX shares are rallying! Here’s what to do now: experts appeared first on The Motley Fool Australia.

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More reading

• Down 20% since March, is this ASX 200 share a misunderstood investment opportunity?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why has the Block share price exploded 9% on the ASX 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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It’s been a rough few months for the share price of S&P/ASX 200 Index (ASX: XJO) favourite JB Hi-Fi Limited (ASX: JBH).

The electronics retailer’s stock is trading 19% lower than the 52-week high it posted back in March.

As of Thursday’s close, the JB Hi-Fi share price was $46.04.

But one fundie is sceptical of bearish opinions on the stock, saying “it’s a great example … of the consensus view being one that [could] be wrong”.

Let’s take a look at what Forager co-founder and chief investment officer Steven Johnson likes about the ASX 200 COVID-19 winner’s post-pandemic future.

Does this ASX 200 share offer an electric future?

This year has been an ultimately downhill rollercoaster for the JB Hi-Fi share price, but the company’s earnings have stayed strong.

In fact, it was only last month it posted its preliminary results for financial year 2022. It recorded 3.5% more sales, 6.8% higher earnings, and a 7.7% increase in after-tax profits compared to those of financial year 2021.

They’re results that impressed Johnson as much as they did the market. He admitted that, while Forager hasn’t snapped up JB Hi-Fi shares as yet, the company has piqued the fundie’s attention. He labelled JB Hi-Fi:

A really good example of something that we are looking at at the moment.

This is a stock that is quite well known by the market … but if you go and look at broker consensus for this business, the assumption about the next two years is that its profitability is going to halve, it’s going to go right back to 2019 levels.

Indeed, brokers are split on their outlook for the ASX 200 stock and its share price, as The Motley Fool Australia’s Bronwyn Allen recently reported.

But Johnson appears to have seen through clouds of doubt to make out a “thesis … that was once the consensus view”. The fundie continued:

This is a wonderful business that has a very, very low cost of doing business [and] maybe it won’t shrink as much as people think. And it may even grow over the long term like it has for most of the past 20 years.

The JB Hi-Fi share price is currently almost 6% lower than it was at the start of the year. That means it’s outperformed the ASX 200 by around 1% in that time. It has also gained 80% over the last five years.

The post Down 20% since March, is this ASX 200 share a misunderstood investment opportunity? appeared first on The Motley Fool Australia.

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More reading

• ASX shares are rallying! Here’s what to do now: experts
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why has the Block share price exploded 9% on the ASX today?

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

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The ResMed Inc (ASX: RMD) share price will be one to watch on Friday morning.

This follows the release of sleep treatment focused medical device company’s full year results.

ResMed share price on watch amid solid FY 2022 growth

• Revenue up 12% year over year to US$3.6 billion
• Gross margin contracted 140 basis points to 57.7%
• Operating income up 11% to US$1 billion
• Non-GAAP net income up 9% to US$850.8 million

What happened in FY 2022?

For the 12 months ended 30 June, ResMed reported a 12% (13% in constant currency) increase in revenue to US$3.6 billion.

A key driver of this strong growth was the U.S., Canada, and Latin America segment. It reported a 15% increase in revenue to US$2,382.6 million thanks to a 24% increase in device revenue and a 7% lift in software-as-a-service revenues.

Combined Europe, Asia, and other markets supported this with a 7% (11% in constant currency) increase in sales to US$1,195.5 million. This growth was split evenly between its devices and masks businesses.

In addition, the company’s revenue was boosted by a competitor recall. Management estimates that incremental fourth quarter revenue in the range of US$60 million to US$70 million related to the recall.

And while its margins were impacted by higher freight and manufacturing costs, this couldn’t stop ResMed from delivering solid non-GAAP net income growth of 9% to US$850.8 million.

This allowed the ResMed board to declare a final quarterly cash dividend of US$0.44 per share, which is up 5% on the prior corresponding period.

How does this compare to expectations?

Potentially good news for the ResMed share price is that this result appears to have come in ahead of expectations.

For example, the market consensus estimate was for a full year profit after tax of US$825.6 million.

However, it is worth noting that the ResMed share price is trading flat in after hours trade on Wall Street after falling 1% overnight. This could be a sign that today will be a red day despite the earnings beat.

Management commentary

ResMed’s CEO, Mick Farrell, was very pleased with the company’s performance in FY 2022. He said:

Our fourth quarter and full-year fiscal year 2022 results demonstrate strong growth and ResMed’s market leadership. During the quarter, we saw continued adoption of our most advanced platform innovation to date, the 100% cloud-connectable AirSense 11. We launched this solution into several new countries in Europe while continuing to see strong sales in the U.S.

We also introduced our newest device to meet the needs of an industry crisis in PAP supply, the AirSense 10 Card-to-Cloud solution, during the quarter. The card-to-cloud device was launched into the U.S. and many other markets and is designed to work without an embedded communications module. This redesign allowed us to increase deliveries to customers and ultimately to get many more patients onto life-saving sleep apnea and respiratory care therapy. Both of these platforms, as well as our legacy, market-leading, 100% cloud-connected AirSense 10 device, will support solid growth throughout FY23.

Outlook

No guidance has been given for FY 2023. However, Farrell spoke positively about the company’s growth prospects and its medium term goal. He concluded:

Our global team remains focused on supporting patients, providers, and physicians — our top priority is to get products directly into the hands of patients who need therapy most. Looking ahead, we are confident in our ability to grow steadily throughout fiscal year 2023 and to continue delivering for all stakeholders. We are investing in R&D to drive accelerated adoption of digital health solutions in sleep apnea, COPD, and outside-hospital care, as we progress towards our goal to improve 250 million lives in 2025.

The post ResMed share price on watch following solid FY22 growth appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• $20,000 invested in these ASX shares 10 years ago is worth how much now?
• Brokers name 3 ASX shares to buy today
• Morgans names 3 more of the best ASX shares to buy in August
• Here are 3 stellar ASX growth shares analysts are tipping as buys

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a very strong day and raced notably higher. The benchmark index rose 1.1% to 7,071 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 19 points or 0.3% lower this morning. In the United States, the Dow Jones rose 0.1%, the S&P 500 dropped 0.1%, and the Nasdaq tumbled 0.6%.

Oil prices charge higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices strengthened overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$94.22 a barrel and the Brent crude oil price is up 2.2% to US$99.58 a barrel. Traders were buying oil after the IEA increased its 2022 demand growth forecast.

ResMed results

The ResMed Inc (ASX: RMD) share price will be one to watch on Friday. This morning the medical device company is releasing its fourth quarter and full year results. In respect to its full year result, the market is expecting ResMed to report a profit after tax of US$825.6 million for the 12 months ended 30 June.

Gold price falls

Gold miners such as Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.6% to US$1,802.60 an ounce. Traders were selling gold amid the prospect of more rate hikes by the U.S. Federal Reserve even though there are signs that inflation is peaking.

IAG results

The Insurance Australia Group Ltd (ASX: IAG) share price could be on the move today. This morning the insurance giant is scheduled to release its full year results. According to CommSec, the market is expecting the company to report a full year net profit after tax of $248 million. From this, IAG has been tipped to pay a final dividend of 3.1 cents per share.

The post 5 things to watch on the ASX 200 on Friday 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 has the Block share price exploded 9% on the ASX today?
• Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today
• Has the BHP Petroleum acquisition been positive for the Woodside share price?

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited and ResMed 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 hot debate igniting financial circles right now is whether ASX shares — and stock markets across the world — have reached the bottom. Could the bear finally be ready to hibernate for the rest of winter, or does it plan to skulk about into spring?

Regardless of which direction the bear takes, one thing’s for sure… inflation and interest rates are never far from the headlines. And, many are feeling the pinch of higher prices and mortgage payments.

With the cost of living biting into our bank balances, we asked our Foolish contributors which ASX dividend shares they reckon could make great buying right now for some potential passive income in the future.

7 best ASX dividend shares for August 2022 (smallest to largest)

Nick Scali Limited (ASX: NCK), $814.86 million

Codan Limited (ASX: CDA), $1.60 billion

Centuria Industrial REIT (ASX: CIP), $1.94 billion

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), $9.36 billion

Vanguard Australian Shares Index ETF (ASX: VAS), $11.20 billion

Woolworths Group Ltd (ASX: WOW), $46.15 billion

Westpac Banking Corp (ASX: WBC), $78.71 billion

(Market capitalisations as of 11 August 2022)

Why our Foolish writers love these ASX dividend shares

Nick Scali Limited

What it does: Established more than 60 years ago, Nick Scali counts itself among Australia’s largest importers of quality furniture. The company imports more than 5,000 containers of furniture annually. In 2017 it expanded internationally to New Zealand.

By Bernd Struben: Nick Scali has a long track record as a reliable dividend payer. The furniture importer has made biannual dividend payments every year, dating back to 2014. It even paid out two dividends in the pandemic-addled year of 2020.

Up 42% since 17 June, the Nick Scali share price remains down 35% year to date. At the current price, the company pays a trailing dividend yield of 6.0%, fully franked.

This month, Jack Collopy, portfolio manager at Perpetual singled out the stock as one in which Perpetual recently increased its holdings. “Nick Scali is extremely well run, has an excellent balance sheet, and we think the recent Plush acquisition will prove to be a great use of capital,” he said.

Motley Fool contributor Bernd Struben does not own shares of Nick Scali Limited.

Codan Limited

What it does: Codan manufacturers and supplies a broad range of products that leverage the company’s radio-frequency-focused intellectual property. These products can be divided into two main segments: communications equipment and metal detection equipment.

By Mitchell Lawler: The company behind the wildly popular Minelab metal detectors has an enviable record for revenue and earnings growth in recent years.

Since 2016, Codan has grown its 12-month trailing revenue from $140.6 million to nearly $500 million at the end of last year. Even more impressively, profits have rapidly expanded from a touch under $13 million to around $99 million over the same timeframe.

Despite a history of success, the Codan share price has been sold down 48% over the past year. At present, the communications company is producing a dividend yield of 3.3%. I believe now could represent a rare opportunity to buy Codan shares at a relative discount.

Motley Fool contributor Mitchell Lawler does not own shares of Codan Limited.

Centuria Industrial REIT

What it does: Centuria Industrial REIT owns $4 billion worth of industrial property, such as warehouses, across Australia. It has a particular focus on properties that are in short supply. For example, 38% of the company’s portfolio is based in Sydney, where the vacancy rate is just 0.3%.

By Tristan Harrison: At the end of FY22, the Centuria Industrial REIT portfolio had a weighted average lease expiry (WALE) of 8.3 years and an occupancy rate of 99%. I believe this gives investors good income visibility as well as security.

Management expects strong demand will lead to net operating income growth in FY23. It is also looking at value-add projects and is developing the company’s pipeline.

The Centuria Industrial REIT is expected to pay a distribution of 16 cents in FY23, which translates into a forward distribution yield of 5.4% after a 25% fall in the share price since 29 April 2022. I think the stock looks undervalued at around $3.

Motley Fool contributor Tristan Harrison does not own shares of Centuria Industrial REIT.

Washington H. Soul Pattinson and Co. Ltd

What it does: Commonly referred to as Soul Patts, the Australian-based investment house holds a diverse portfolio of assets across a range of industries. The company has been listed on the ASX since 1903 and has consistently paid dividends to shareholders.

By Aaron Teboneras: I believe the Soul Patts share price offers an attractive opportunity for investors to buy in at the current price.

After slumping to a 20-month low of $22.52 in late June, shares in the investment company have climbed by almost 8% over the past month to close on Thursday at $25.93. But having reached as high as $40 back in October last year, I believe the Sol Patts share price has the potential to continue its march higher.

In addition, Soul Patts has made a habit of increasing its final dividend by 1 cent each year since 2012. In FY21, the board declared a dividend of 36 cents per share.

With this in mind, history would suggest that the upcoming final dividend could be bumped up to 37 cents.

Keep a lookout next month as Soul Patts is scheduled to report its FY22 earnings results on 22 September.

Motley Fool contributor Aaron Teboneras does not own shares of Washington H. Soul Pattinson & Co. Ltd.

Vanguard Australian Shares Index ETF

What it does: VAS is an exchange-traded fund (ETF) that tracks the S&P/ASX 300 Index (ASX: XKO). It is the most popular index fund and ETF on the ASX.

By Sebastian Bowen: This ETF from Vanguard is not a flashy investment. VAS is a simple index fund that holds the largest 300 shares on the ASX by market capitalisation. Like most index funds, the largest companies on the ASX make up the lion’s share of the VAS portfolio. And since most of the largest shares on the ASX pay out regular dividends, so does this ETF.

Investors enjoy quarterly distributions from VAS. Its last four payments amounted to approximately $6.26 per unit. That gives investors a trailing yield of approximately 7.12% on recent pricing. For its diversification, ‘bottom drawer’ appeal and hefty yield, I think VAS is well worth considering for dividend investors this August.

Motley Fool contributor Sebastian Bowen does not own shares of the Vanguard Australian Shares Index ETF.

Woolworths Group Ltd

What it does: Woolworths is the conglomerate behind the eponymous supermarket chain. In addition, it owns Big W, Countdown, and the Everyday Rewards loyalty program.

By James Mickleboro: I think Woolworths shares could be a top option for income investors this month. This is because the retail giant is a rare example of a company that can actually benefit from inflation. Especially if it can pass through its higher costs effectively.

The team at Goldman Sachs expects this to be the case and is forecasting a sales compound annual growth rate (CAGR) of 6.6% and underlying net profit after tax (NPAT) of 14.1% over FY22 to FY24.

Goldman expects this to lead to fully-franked dividends per share of 96 cents in FY22 and $1.18 in FY23. Based on the current Woolworths share price of $38.02, this will mean yields of 2.5% and 3.1%, respectively.

Motley Fool contributor James Mickleboro does not own shares of Woolworths Group Ltd.

Westpac Banking Corp

What it does: As Australia’s oldest bank, and one of its largest, Westpac provides consumer, business, and institutional banking services.

By Brooke Cooper: The Westpac share price has underperformed the market over 2022 so far, gaining around 5% year to date, but brokers are still bullish on its future.

Goldman Sachs believes the stock “offers the most upside of the banks”. Meanwhile, both Morgan Stanley and Goldman Sachs expect the bank to up its dividends over the coming years.

They’ve respectively tipped Westpac’s dividends to rise to $1.30 and $1.35 in FY23. For context, the bank gave shareholders $1.18 in dividends in FY21.

Motley Fool contributor Brooke Cooper does not own shares of Westpac Banking Corp.

The post Top ASX dividend shares to buy in August 2022 appeared first on The Motley Fool Australia.

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More reading

• ASX 200 better buy: Wesfarmers or Woolworths?
• Own Westpac shares? Here’s when the ASX 200 bank will release its FY22 earnings
• I think these ASX 200 dividend shares look like good income picks after reporting
• Guess how much Woolworths shares have paid in dividends over the last 5 years
• ‘Capital light and scalable’: Expert picks 2 ASX shares to buy now while CHEAP

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price closed 1.08% higher at $4.69 today after one of its partially acquired companies posted optimistic FY22 results.

Alliance Aviation Services Ltd (ASX: AQZ) announced a 21% increase in total revenue to $369.4 million. For FY2023, it expects to see increased profitability due to the investments it made in FY2022 and a growing contract client base.

Qantas bought a 19.9% stake in Alliance Aviation in February 2019, and in May this year, the airline announced it would buy the remaining shares.

Let’s learn more about why investors were bullish today on this iconic ASX airline share.

What happened with Alliance?

Alliance Aviation said that in addition to its strong revenues, earnings were also stable from its contracted revenue clients. 

Another positive highlight from the report was that flight hours grew 25% to 47,519, and this growth trend is expected to continue in the future.

However, its operating experiences and finance costs grew significantly during the same period, contracting its earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 27%, for a $47 million total loss.

Other developments fueling a Qantas lift today?

Alongside the Alliance results, today’s Qantas share price boost may be attributed to other developments impacting the airline industry. Airline rivals Southwest Airlines Co (NYSE: LUV) and Air New Zealand (ASX: AIZ) both made gains today, closing at 2.45% and 2.56%, respectively.

Shares in these companies might have lifted due to a reduction in the oil price, which is a major cost to airlines. According to Bloomberg, the price of WTI crude oil has fallen 0.41% today, while Brent Crude also fell 0.27%.

Jet fuel costs airlines around 11% of their operating expenses on average.

Travel takes off

On the demand side, there is also a major tailwind. According to the World Tourism Organisation, international travel is set to soar to 55% to 70% of pre-COVID travel this year. That’s a 90 to 140 per cent increase from 2021 levels.

The pent-up demand for travel may be unleashed during this period, similar to the post-pandemic spending spree seen in countries that spent months or longer under lockdown.

New Zealand, one of Australia’s favourite travel destinations, fully reopened its borders to international travellers on 31 July and resumed the processing of visas.

On a global scale, Kayak reported that 167 countries are open to travel with no COVID-19 testing or quarantine required, while 32 are open to travellers with testing. 

People now have the freedom to travel to most countries without the inconvenience of self-isolating, including the world’s most popular tourist destinations. Many haven’t visited these places in months or sometimes years.

Thus, the share price gains of major airlines such as Qantas could reflect these changes in the demand and cost of international travel.

Qantas share price snapshot

Gains made by Qantas today outperformed the S&P/ASX 200 Industrials Index (ASX: XNJ), which delivered a 0.09% return.

The Qantas share price is currently down 8.9% year to date, trailing behind the S&P/ASX 200 Index (ASX: XJO), which has contracted 6.84% over the same period.

The airline’s market capitalisation is $8.85 billion from today’s gains.

The post Why did the Qantas share price fly higher today? appeared first on The Motley Fool Australia.

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More reading

• Alliance Aviation share price lifts despite full-year loss
• Why is the Qantas share price beating the ASX 200 today?
• ‘Downside is less severe’: Why some brokers are still bullish on the Qantas share price
• Why Alliance, Aurizon, MVP, and Suncorp shares are dropping today
• Qantas share price descends as management recruited for ground-handling work

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Alliance Aviation Services 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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The Megaport Ltd (ASX: MP1) share price jumped 3.27% on Thursday to end the day’s trading at $8.84.

Megaport shares seem to have benefitted from an ASX tech tailwind started by a positive session from its peers listed on the Nasdaq Composite (NASDAQ: .IXIC) overnight. 

On top of that, broker Jefferies initiated an upgrade in the Megaport share price target from $5.94 to $9.60

Before diving into the performance of the NASDAQ and the broker upgrade, here is a quick recap of Megaport’s full-year financial results, which the company released on Tuesday.

Megaport FY22 recap

Highlights of the Megaport FY22 results included: 

• Revenue jumped 40% from $78 million to $109 million 
• Net loss improved by 12% from ($55 million) to ($48.5 million) 
• Operating cash flow went backwards from ($8.6 million) to ($9.8 million)
• No dividend declared

The Megaport share price soared 10% on the back of the results on Tuesday, but fell almost 5% on Wednesday.

Broker raises Megaport share price target

Broker Jefferies liked the financial results, pushing up its price target to $9.60 from $5.94. 

According to Thomson Reuters, Jefferies said, “This result proves that management is capable of delivering strong operating leverage.”

While these set of results indicate an improvement in profitability, I would not consider it to be a strong display of operating leverage. 

Investors ought to be mindful of the consistent decline in net income since the cloud networking company listed in late 2015. 

I would prefer to see more evidence of improvement in profitability before putting it in such a basket.

The broker upgraded its guidance for FY23 and FY24 revenue by 9% and 14% respectively. 

Jefferies also flagged risks in the tightening of IT expenditure in a recession and higher capital expenditure (capex) due to inflation and supply chain issues. 

Despite noting these risks, Jefferies has maintained a “hold” rating. 

NASDAQ rallies overnight 

The NASDAQ includes tech giants like Apple (NADSAQ: AAPL) and Microsoft (NASDAQ: MSFT). It rose by 2.9% yesterday, bringing its gains to 20.7% from lows recorded in June. 

According to the Financial Times, consumer prices in the US rose 8.5%, falling below economists’ forecasts of 8.7%. Further, there was no increase in inflation in July as opposed to a 1.3% monthly rise in June. 

This might partly explain the recent rally on the NASDAQ and the flow-on effect on tech and growth stocks on the ASX.

Some notable tech stocks like Life360 Inc (ASX: 360) and Block Inc (ASX: SQ2) experienced jumps of 13% and 8% today respectively. 

Megaport share price snapshot

The overall equities market has been engulfed in a sea of red this year and the Megaport share price is no exception. 

Year to date, the Megaport share price has more than halved, dropping by 53%. However, in the last month, the Megaport share price has rallied to jump by nearly 44%. 

The S&P/ASX 200 Index (ASX: XJO) is down 7% year to date but has clawed its way back in the last month to post a gain of 7%. 

Megaport suffered from the big tech and growth sell-off this year. The Megaport share price is showing signs of recovery, so it could be worth monitoring over the short to medium term. 

The post Is the Megaport share price back on track after a broker upgrade? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• What’s going so wrong for ASX 200 tech shares on Wednesday?
• Is the Megaport share price a buy following the company’s latest results?
• Here are the top 10 ASX 200 shares today
• Why Coronado Global, Lake, Megaport, and REA shares are storming higher

Motley Fool contributor Raymond Jang 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 Apple, Block, Inc., Life360, Inc., MEGAPORT FPO, and Microsoft. 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 Block, Inc. The Motley Fool Australia has recommended Apple and MEGAPORT FPO. 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 Evolution Mining Ltd (ASX: EVN) share price has been in fine form in the past month.

Since 11 July, the gold miner’s shares have gained 12.65%, making it one of the best performers across the sector.

In retrospect, the Newcrest Mining Ltd (ASX: NCM) share price has fallen by 2.53% across the same timeframe.

At market close, the Evolution Mining share price finished the day taking a slight breather to exchange hands at $2.76, up 1.10%.

What’s driving Evolution Mining shares higher?

The sharp acceleration in the price of gold has boosted investor sentiment leading investors to snap up Evolution Mining shares.

Gold prices recovered lost ground on Wednesday after US consumer price inflation data slowed to an 8.5% yearly rate in July.

This has sparked confidence in the yellow metal as the Federal Reserve could slow down its aggressive rate hikes.

When the US central bank rises interest rates, the price of precious metals gets dragged down. However, investors appear to be positive for the moment which is giving rise to the Evolution Mining share price.

Currently, the price of gold has rebounded toward US$1,785 an ounce, an increase of almost 2% in the past week.

If the Reserve Bank of Australia takes a breather on its monetary tightening policy next month, then Evolution Mining shares could receive another boost.

The company is scheduled to release its full year results for the 2022 financial year on Thursday 18 August.

What do the brokers think?

A number of brokers rated the Evolution Mining share price with different price points in late July.

According to ANZ Share Investing, the team at UBS cut its 12-month price target by 1.7% to $2.90 apiece.

Based on the current share price, this implies an upside of 5% for investors.

On the other hand, Morgan Stanley analysts reduced their rating on Evolution Mining shares by 2.1% to $2.35. Its analysts had a bearish outlook noting that the company’s shares are slightly overvalued for now.

This implies a current downside of 15% from where it trades today.

The post Why is the Evolution share price up 13% in a month? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• 5 things to watch on the ASX 200 on Thursday

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

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The Mirvac Group (ASX: MGR) share price was on the move today after the property developer released its full-year results for FY22.

Mirvac shares opened the day at $2.17 and reached a high of $2.205 in early trading.

At the market close, the Mirvac share price finished at $2.17, up 3.83% for the day.

Investors raise Mirvac share price despite modest profit gain

The highlights of Mirvac’s results are as follows:

• Statutory profit of $906 million, up 0.55% on the prior corresponding period (pcp)
• Operating profit after tax of $596 million, up 8% on pcp
• Operating earnings before interest and tax (EBIT) of $773 million, up 10% on pcp
• Full-year distributions of $404 million to shareholders, up 3% on pcp
• Operating earnings per share (EPS) of 15.1 cents per share, up 8%.

In its statement, Mirvac said it was “delivering a strong result ahead of guidance, with a statutory profit of $906 million and operating profit of $596 million, representing 15.1 cents per stapled security (cpss)”.

The increase in profits and distributions on FY21 is modest. However, FY22 was “a more challenging operating environment”, says Mirvac CEO and managing director Susan Lloyd-Hurwitz.

What else happened in FY22?

Mirvac reported that it exchanged approximately 2,900 residential apartments and settled 2,523 in FY22. This is in line with the company’s settlement target of more than 2,500 lots.

The company also reported on its sustainability initiatives. It said it “achieved net positive carbon for scope 1 and 2 emissions nine years ahead of our target”.

Over the 12-month period to 30 June, the Mirvac share price lost approximately 30% of its value.

What did management say?

Lloyd-Hurwitz said:

There is no doubt that FY22 presented a more challenging operating environment. We experienced the ongoing impacts of COVID-19, supply chain issues, labour shortages, rising inflation and interest rates, geopolitical tension, and extreme wet weather, particularly across the east coast of Australia.

Despite this, we have delivered a strong financial and operational result ahead of guidance, demonstrating the continued resilience of our people and the value of our integrated and diversified business model.

At the same time, we maintained a strong balance sheet and capital position, with sufficient liquidity and appropriate hedging. Combined with our planned $1.3bn of non-core asset sales, this helps ensure that we are well placed to capitalise on opportunities as they emerge, so that we can continue to deliver value to our securityholders into the future.

What’s next?

In its FY22 report, Mirvac said it was now managing $10.2 billion worth of assets, up 3% on the pcp.

But that number is about to skyrocket as a result of Mirvac scoring the management rights to the $7.7 billion AMP Wholesale Office Fund (AWOF) in July.

AMP shareholders voted to give Mirvac control of the fund. As my colleague Brooke reported at the time, the deal will lift Mirvac’s capital under management by about 76%. Mirvac shareholders loved the news and pushed the share price 1% higher on the day.

Lloyd-Hurwitz said the deal was “accelerating our Funds Management strategy, broadening our investor base, and introducing new accretive income streams”.

Mirvac will take control of the fund in mid-October.

Regarding the softer residential property market, Lloyd-Hurwitz said selling conditions had “normalised” but “the underlying fundamentals of the residential market in which we operate remain solid”.

She said:

Our apartment projects are expected to complete into an undersupplied market, positioning us well to capture demand. Our brand, focus on owner occupiers, diversity of product, and reputation for quality, will help us to remain resilient in a rising interest rate environment.

Mirvac said if there was no material change in the operating environment, the company was targeting operating earnings of at least 15.5 cents per share and distributions of at least 10.5 cents per share in FY23. It maintains the same goal of settling more than 2,500 residential lots in FY23.

Mirvac share price snapshot

The Mirvac share price is down 28% in the year to date. But like many other ASX 200 shares, it has rebounded in the past month and is up 4.83%.

The post Mirvac share price lifts on ‘strong result ahead of guidance’ for FY22 appeared first on The Motley Fool Australia.

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More reading

• Why Block, Lake, Mirvac, and QBE shares are racing higher
• 2 ASX 200 shares ready for a massive resurgence: experts 
• AMP share price in focus as Mirvac wins control of $7.7 billion office fund

Motley Fool contributor Bronwyn Allen 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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