Tag: Motley Fool

If you’re looking to bolster your portfolio with some blue chip ASX 200 shares, then it could be worth considering telco giant Telstra Corporation Ltd (ASX: TLS).

Why is Telstra a blue chip ASX 200 share to buy?

Analysts have become bullish on this telco giant this year after its transformative T22 strategy delivered on expectations and underpinned a return to growth in FY 2022.

For example, commenting on its first half results earlier this year, the team at Morgans said:

TLS’s 1H22 result showed the second consecutive half of underlying growth, with underlying EBITDA up 5%, underlying EPS up substantially and the DPS flat yoy. Mobile was the star performer. Performance is tracking in the right direction and FY22 guidance was re-iterated.

And with the company’s T22 strategy soon to be replaced with the growth-focused T25 strategy, the company’s outlook is now arguably the best it has been in a decade.

This is particularly the case given the increasingly rational competition in the mobile market, the ongoing adoption of average revenue per user (ARPU)-boosting 5G internet by consumers, and its recent acquisition in the pacific.

Where are its shares heading to from here?

Morgans currently has an add rating and $4.56 price target on its shares. Based on the latest Telstra share price of $4.00, this implies potential upside of 14% for investors over the next 12 months.

But it gets even better for investors. Morgans continues to forecast fully franked dividends per share of 16 cents in both FY 2022 and FY 2023.

Based on where its shares are trading today, this will mean attractive 4% yields for investors in both years. This stretches the 12-month total return on offer with its shares to a sizeable 18%.

The post Expert says Telstra is a blue chip ASX 200 share to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today
• Is the Telstra share price on the way back up?
• Top brokers name 3 ASX shares to buy next week
• Why this ASX 200 giant ‘looks attractive’ right now: expert
• Why is the Telstra share price lagging the ASX 200 on Thursday?

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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zGBToAl

Although it doesn’t make the front page of newspapers any more, the COVID-19 pandemic unfortunately refuses to go away.

In fact, hospitalisations and deaths were disturbingly up the past few weeks as Australians battled through winter.

So despite more than two years having passed since the S&P/ASX 200 Index (ASX: XJO) hit its coronavirus panic trough, many post-COVID recovery stocks have yet to reach their full potential.

This is great news for investors, as it’s not too late to buy into some of these ASX shares.

In fact, some of them have discounted nicely in 2022 as the general market malaise dragged them down.

Here are three to buy, as nominated by Wilson Asset Management analysts:

Travel’s back. And busier than before the pandemic

The sector most obviously hit by the pandemic has been the travel industry.

While online travel agent Webjet Limited (ASX: WEB) has seen its share price double since the dark days of 2020, senior analyst Shaun Weick feels like there’s plenty more upside.

“Webjet’s a buy for us,” he said in a Wilson video.

“If you look at consensus analyst estimates on this name, you’re essentially implying a recovery to pre-COVID in the second half of 2023. We think that’s too conservative.”

Webjet has its financial year end each March, so had already reported on its results back in May, when it revealed it had returned to profitability.

“We think the market’s underappreciating the technology investments that they’ve made and the upside that provides.”

3 reasons why CSL will go gangbusters

While CSL Limited (ASX: CSL) had made a lot of money for investors for decades, the pandemic period has been lean.

Its blood plasma collection business in North America took a massive hit due to lockdowns and people generally wary of physically visiting donor centres.

Its share price, therefore, has still yet to approach its pre-COVID high.

But Wilson analyst Anna Milne reckons that’s all about to turn around.

“Firstly, there’s the Behring business, which is plasma-derived products — that’s been under-earning for a number of years now, and we think it’s really just starting to hit its straps,” she said.

“Sequiris is the vaccine business… it’s been a pretty horrendous flu season Down Under and we think that’ll probably translate to the same in the northern hemisphere.”

Then there’s the new $16.4 billion Vifor Pharma business, which CSL put in a takeover offer for late last year.

“The Vifor transaction, which has been delayed, but management is still very confident that it’s going to close and we’re really excited about the pipeline of drugs there,” said Milne.

“So CSL’s a buy.”

CSL will reveal its preliminary results on 17 August.

Strong assets and a lucrative market reopening?

Winemakers are not obvious COVID victims, but Treasury Wine Estates Ltd (ASX: TWE) would argue very much that it was.

Back in 2020, the Australian government demanded an international enquiry into the origins of COVID-19. Beijing took exception to this and placed punitive tariffs on certain Australian imports.

And China was one of the largest markets for Treasury Wine at the time.

The stock price plunged, and the company attempted to diversify its markets to restore its revenues.

Milne feels like the company can put its woes behind it now.

“Firstly, it’s got a really strong asset backing. It’s got the wine itself, then it’s got the vineyards — so that provides a bit of a backstop to the share price in these kinds of volatile environments,” she said.

“Additionally, I don’t want to speak too soon, but with a new Australian government, it does like China-Australia relations might be having a bit of a cautious reset.”

Treasury Wine will report its annual results on 18 August.

The post 3 ASX 200 shares to buy for a post-COVID resurgence: experts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears
• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Treasury Wine Estates Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/0r2d4hw

If you’re an income investor then you might want to read on. Listed below are two ASX dividend shares that have just been rated as buys by brokers.

Here’s what they are saying about these top ASX dividend shares:

Janus Henderson Group (ASX: JHG)

The team at Bell Potter think that this fund manager could be a dividend share to buy. It has a buy rating and $43.50 price target on the company’s shares.

While Janus Henderson has been facing a number of challenges, the broker believes that now could be the time to buy before the tide turns.

It explained:

Falls in investment markets have reduced AUM and profitability. The appearance of an activist investor has not led to corporate activity which may have disappointed some investors. The change of CEO means a new strategy and that will take time to deliver tangible results.

But now might be a good time to revisit: markets should start to recover; the company has a new direction and there is still the prospect of M&A (we feel JHG could easily be swallowed by a larger group).

As for dividends, the broker is forecasting dividends per share of 190 cents in FY 2022, 172 cents in FY 2023, and 181 cents in FY 2024. Based on the current Janus Henderson share price of $36.33, this will mean yields of 5.2%, 4.7%, and 5%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Analysts at Goldman Sachs are positive on Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager. The broker has just initiated coverage on Stockland with a buy rating and $4.44 price target.

Goldman likes Stockland due to its refreshed corporate strategy and attractive valuation. The broker explained:

We believe that investor concerns regarding the housing cycle are reflected in current pricing. Furthermore, we believe SGP is progressing on its recently refreshed corporate strategy, noting that recycled proceeds from the completed sale of its low returning Retirement division provides flexibility to accelerate its commercial development pipeline and its Communities (including Land Lease) business and see the shares as attractively valued both relative to peers and historically.

SGP currently trades at a ~10% discount to last stated NTA (vs. LT average of ~1.14x), and at a FY23 FFO multiple of ~12x (vs. our REIT coverage average of 17x).

In respect to dividends, the broker is forecasting dividends per share of 26.6 cents in FY 2022, 26.7 cents in FY 2023, and 26.9 cents in FY 2024. Based on the current Stockland share price of $3.86, this will mean yields of 6.9%, 6.9%, and 7%, respectively.

The post Brokers name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Can ASX dividend shares deliver during earnings season?
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?

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.

from The Motley Fool Australia https://ift.tt/FklNJ8i

The Woolworths Group Ltd (ASX: WOW) share price could be good value at current levels.

That’s the view of the team at Goldman Sachs, which recently reiterated their buy rating and $40.50 price target on the company’s shares and added them to the broker’s coveted conviction buy list.

Why does Goldman think that Woolworths shares are a strong buy?

There are three key reasons that Goldman Sachs is bullish on Woolworths’ shares.

The first is the broker’s belief that Woolworths will deliver strong earnings growth between FY 2022 and FY 2024. This is thanks to the strength of its key Australian supermarkets business. It said:

Superior growth in core business: we forecast CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth. This implies that EBIT margins will be well protected, and we forecast 50bps increase to 5.0% to FY24e.

Another reason for its positive stance is the retail media business. Goldman believes this relatively underappreciated business has a material growth opportunity with strong margins. The broker explained:

Adjacent revenues with higher margins: with a highly loyal consumer base and high frequency contact points, we believe that the retail media business is the next material growth lever for WOW. We have factored in A$1.1B sales, with 30% EBIT margin (unchanged) in 2030 and discounted value of A$4B adds ~6% to WOW’s EV.

Finally, the broker sees value in the Woolworths share price at the current value and feels that a rerating to higher multiples is possible. It said:

Valuation re-rating: since 2018, WOW has traded at an average 1yr fwd P/E of 25.7x, vs COL (Neutral) of 21.6x, with average multiple premium of 4.0x. Currently, WOW is at 24.3x, with multiple premium at 1.8x, its lowest level since 2018, and we believe this is unwarranted as we see WOW to be still the superior operator with faster growth outlook. We expect better comps and margin management to become apparent, and the stock to re-rate.

The post 3 reasons this broker says Woolworths shares are a strong buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Woolworths share price leapt 5% in July, what’s in store now?
• Does rising inflation put the Woolworths share price in the buy zone right now?
• Have Woolworths shares been a market-beating investment over the past 5 years?
• Broker names 2 ASX dividend shares to buy next week
• Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition

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.

from The Motley Fool Australia https://ift.tt/apBQZcn

With interest rates rising rapidly and an economic downturn expected to follow, the retail sector is somewhat on the nose with ASX investors at the moment.

But one analyst reckons he’s found a retailer stock to pick up now that can withstand plummeting consumer confidence.

“Lovisa Holdings Ltd (ASX: LOV)’s a buy for us,” said senior analyst Shaun Weick in a Wilson Asset Management video.

“We think this one’s a diamond in the rough.”

Weick admitted his team is “cautious” on the retailer stocks because of the gloomy economic outlook.

“But we think fast fashion jewellery is largely recession-proof.”

The share price for Lovisa has lost around 11% so far this year. It does pay out a handy dividend yield of 3.1%, according to Google Finance.

Lovisa’s expansion strategy

According to Weick, the company is banking on new store rollouts to fuel future growth. 

“We can see capacity for this business to more than triple its current footprint,” he said.

“They’ve opened up five new markets recently. And if we look at management’s LTIs [long-term incentives], they suggest that there’s significant upside to consensus earnings expectations.”

Lovisa is scheduled to report its preliminary numbers on 24 August.

Other professionals also share Weick’s enthusiasm for the jewellery retailer. Eight out of 10 analysts surveyed on CMC Markets currently rate Lovisa as a strong buy.

And just last week, The Motley Fool reported that Morgans analysts thought Lovisa could end up as “one of the biggest success stories in Australian retail”.

That team thought the dividend could grow immensely in the future from international expansion.

“We do not think there is any lack of opportunity,” a Morgans memo read.

“In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people, compared to Australia with 158 stores, [which is] 6.15 stores for every million people.”

The Motley Fool’s James Mickleboro reported that Morgans has a buy rating and a $21.50 price target.

The Lovisa share price closed Thursday at $17.62.

The post The retailer that’s a ‘recession-proof’ ASX share to buy: analyst appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Experts name 2 ASX growth shares to buy
• Experts say these ASX dividend shares are buys right now
• Experts name 2 ASX growth shares to buy with double-digit upside potential
• Own Lovisa shares? Why this broker believes the retailer could be a ‘global force’
• Here are 3 excellent ASX growth shares for investors to buy in July

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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1yRIKm2

On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and ended the day a fraction lower. The benchmark index fell 1 point to 6,974.9 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a mildly positive note despite a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 10 points or 0.15% higher this morning. In the United States, the Dow Jones fell 0.25%, the S&P 500 edged 0.1% lower, and the Nasdaq pushed 0.4% higher.

Oil prices fall again

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough finish to the week after oil prices tumbled again. According to Bloomberg, the WTI crude oil price is down 2.5% to US$88.42 a barrel and the Brent crude oil price is down 3% to US$93.91 a barrel. Fears of a demand slowdown after a build in U.S. crude and gasoline inventories sent oil prices to multi-month lows.

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 rebounds

The shares of gold miners such as Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent end to the week after the gold price rebounded overnight. According to CNBC, the spot gold price is up 1.9% to US$1,810.5 an ounce. This followed a pullback in the US dollar and rising US-China tensions.

Elders rated as a buy

The Elders Ltd (ASX: ELD) share price could be great value after recent weakness according to Goldman Sachs. This morning the broker reiterated its conviction buy rating and $21.00 price target on the company’s shares. Commenting on the underperformance of its shares, Goldman said: “We believe the market is applying a higher weight to the potential of a cyclical downturn in seasonal conditions over the long term structural growth opportunities still in front of the company.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears
• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/PvxUhof

If you have room for some new portfolio additions this week, then it could be worth considering the two ASX growth shares listed below.

Here’s what you need to know about these buy-rated shares:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa.

Analysts at Morgans have tipped the company as a buy due to its strong long term growth potential. This is being underpinned by its global expansion plans, which will be overseen by its highly experienced CEO, Victor Herrero.

Commenting on its expansion opportunity, the broker said:

Lovisa’s global footprint now spans 22 countries. In our opinion, investors can expect this number to increase steadily while, at the same time, Lovisa builds out its presence in its existing markets. We do not think there is any lack of opportunity. In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.

Morgans has an add rating and $21.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to look at this month is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

Goldman Sachs is very positive on the company. This is due to the company operating in market niches that are under-served by both large and small enterprise software competitors. It highlights that this has underpinned high (and growing) levels of recurring revenue and ultra low churn levels. It commented:

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn. In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

Goldman has a buy rating and $4.60 price target.

The post Experts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Experts say these ASX dividend shares are buys right now
• Experts name 2 ASX growth shares to buy with double-digit upside potential
• Experts say these ASX tech shares would be excellent buys
• Analysts name 2 stellar ASX growth shares to buy
• Own Lovisa shares? Why this broker believes the retailer could be a ‘global force’

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 Readytech Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/D49ORhG

The Rio Tinto Ltd (ASX: RIO) share price has fallen 29% in the past year, but what’s ahead?

Rio shares dropped 1.55% on the market on Thursday, closing at $95.30 a share. For perspective, the BHP Ltd (ASX: BHP) share price also fell 1.14% while Fortescue Metals Group (ASX: FMG) shares closed 2% lower.

So what are the Rio CEO’s thoughts on future spending?

Rio CEO defends spending

Rio Tinto presented half-year results last week, but the company’s CEO Jakob Stausholm shared more insight into the company’s future strategy today.

In a quarter two earnings call, Stausholm was questioned on Rio’s strategy of increasing capital expenditure (capex) in the future.

In response to questions from analysts about the company’s plan to increase capex, he said:

This is actually really fundamental. If we start adjusting our capex programme because we think there’s a recession in the next six months, we’ve lost. We are in for the long haul here.

If you really think about it, the best thing is to invest when you have a recession, because that’s where you can buy services cheap.

Rio reported revenue had fallen 10% to US$29,775 million in its half-year earnings. The mining giant declared a dividend of 276 cents per share.

However, Stausholm touted investing in a recession, highlighting:

We are absolutely convinced that we have the right investment profile going forward.

Obviously, sometimes things becomes a little bit more expensive when you get inflation and we need to manage that very carefully. We fundamentally want to carry out the activities that we have planned to do.

Rio highlighted it is intent on delivering its long-term strategy. In its half-year results, Rio reported its earnings before interest, tax, depreciation and amortisation (EBITDA) slumped 26% to US$15,597 million. Free cash flow also fell 30%.

Share price snapshot

The Rio share price has dived 29% in the past year and nearly 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost nearly 6% in the past year.

Rio has a market capitalisation of more than $35 billion based on the current share price.

The post ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• First mover: CBA share price rises amid interest rate changes

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

from The Motley Fool Australia https://ift.tt/Ls69Q24

There are a lot of dividend shares for investors to choose from on the ASX 200 index. Two that have recently been rated as buys are listed below.

Here’s why analysts rate them highly right now:

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman could be an ASX 200 dividend share to buy according to analysts at Goldman Sachs.

They like the retail giant due to its strong market position and favourable customer demographics. In respect to the latter, the broke notes that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” Goldman expects this to protect the company from online disruption.

Goldman currently has a buy rating and $4.50 price target on the retail giant’s shares.

As for dividends, the broker is forecasting fully franked dividends of 45.9 cents per share in FY 2022 and 36.3 cents per share in FY 2023. Based on the current Harvey Norman share price of $4.21, this will mean yields of 10.9% and 8.6%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind a range of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Analysts at Morgans are very positive on Wesfarmers and believe it has “one of the highest quality retail portfolios in Australia” with “a highly regarded management team” leading the business.

Morgans has an add rating and $58.40 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $47.00, this will mean yields of 3.5% and 3.85%, respectively.

The post 2 ASX 200 dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s impacting the Wesfarmers share price on Thursday?
• Why is the Wesfarmers share price beating the ASX 200 today?
• Morgans name 3 of the best ASX shares to buy in August
• ‘Recession-like levels’: Why ASX retail shares could still be in for a bumpy ride
• From Cotton On to Catch: Wesfarmers’ plans to put its acquisition back on track

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. and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/PuCqDYA

The Lake Resources N.L. (ASX: LKE) share price went down a slippery slope in early July and then was catapulted to post a 3% gain for the month. 

However, the ASX lithium share, Lake Resources, and its share price underperformed the S&P/ASX 200 Index (ASX: XJO), which lifted 5.73% last month.

What made the Lake Resources share price flounder and spurt in July?

The Lake Resources share price started the month at 78.5 cents and closed at 81 cents on 29 July. In between, a scathing report by short-seller J Capital pushed down the Lake Resources shares as low as 60.5 cents each on 14 July. 

J Capital peppered the company with some major allegations. These included a claim that its Kachi Project would not reach production in 2024 as planned. It also alleged the processes used at the site would cause environmental damage. 

The latter allegation is particularly damaging given Lake Resource’s brand is centred on supplying lithium in a responsibly-sourced and environmentally friendly manner. 

Such concerns resulted in the Lake Resources share price dropping to as low as 61 cents in July. 

Lake Resources share price rebounds on management response

The market’s embrace of optimism for Lake Resources shares returned upon management’s response to J Capital’s allegations on 14 July 2022. 

Concerns were further allayed by positive news contained in the company’s quarterly results for the three months ended 30 June 2022.

Some key highlights included the advancement of its Definitive Feasibility Study, the progress with assembling its demonstration plant in Argentina, and a positive cash balance of $173 million on the balance sheet. 

I believe the recent share price rally is likely linked to the potential for further lithium exploration. In the quarterly results, Lake Resources announced it secured a second drilling rig. This is for its lithium brine projects at Olaroz, Cauchari and Paso in Argentina. 

Further, recent discussions with US-based Ford Motor Company (NYSE: F) and Japan’s Hanwa Co Ltd is fuelling the prospect of significant offtake contracts. 

My take on Lake

Lithium explorers like Lake Resources are experiencing a long industry tailwind because of the structural adoption of electric vehicles (EVs). The lithium explorers that manage to secure the most supply early on will reap the benefits thanks to a first-mover and scale advantage. 

The key advantage for such explorers is ensuring they strike ‘“gold’” – or – lithium – early on. This provides significant commercial contracts with the largest lithium users, being the big EV manufacturers. Once these contracts are locked in, this enables them to consistently reinvest into discovering new lithium sites. 

However, over the long term, more competitors will likely erode the early returns on capital because the number of suppliers could outweigh demand. 

An investor with technical knowledge in this space could reap significant rewards if they can spot whether Lake Resources possesses an emerging first-mover and scale advantage. 

The post Why did the Lake Resources share price lag the ASX 200 in July appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the top 10 ASX 200 shares today
• Why are ASX lithium shares having such a top run on Wednesday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why has the Lake Resources share price rocketed 16% today?

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 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.

from The Motley Fool Australia https://ift.tt/9NWIuhY