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The Audinate Group Ltd (ASX: AD8) share price is surging today after the company reported its preliminary results for FY22.

The technology company’s shares are currently up 5.42% at $8.75 apiece. However, they were earlier trading for $9.10, a 9.64% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.70% while the S&P/ASX All Technology Index (ASX: XTX) is currently up 2.52%.

So what did the Audinate Group report in these results?

Audinate share price up as revenue jumps 33%

Highlights of the Audinate unaudited results for FY22 include:

• Revenue of US$33.4 million, up 33.4% from US$25 million in prior year
• Australian dollars unaudited revenue of $46.3 million, up 38.7% from FY21
• Predicted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.8 million to $4.3 million, up from $3 million in FY21
• Gross profit margin of 74.7%, down from 76% in FY21

What else did Audinate report?

Underpinning this large increase in revenue was better than expected chip supplies in late quarter four. This led to a “strong” finish to the financial year.

Due to a boost in chip supplies, unmet demand from the third quarter was delivered in the fourth quarter of FY22.

Further, the company was able to deliver some of Q1 FY23 demand earlier than expected. The higher variation in the US dollar compared to the Australian dollar also helped boost revenue in Australian dollar terms.

Audinate said gross profit margin was in line with expectations, despite spot inventory cost pressures.

Commenting on the results boosting the Audinate share price today, co-founder and CEO Aidan Williams said: “It is particularly satisfying to have delivered very strong revenue growth, despite a challenging operating environment over the last 12 months.”

What’s ahead?

Audinate said it expects supply chain disruption and economic uncertainty to continue in FY23.

Commenting on the future outlook, Williams said:

We continue to operate on a cautious and prudent footing.

We look forward to providing a full run-down of the FY22 results and expectations for the year ahead when we release our financial results at the end of August.

Audinate will deliver its full FY22 results on 22 August.

Audinate share price snapshot

The Audinate share price has fallen just over 1% in the year to date, while it has lost around 7% in the past 12 months.

For perspective, the benchmark ASX 200 has shed nearly 7% in the past year.

Audinate has a market capitalisation of about $3.8 billion based on the current share price.

The post Audinate share price soars 5% as revenue thrives appeared first on The Motley Fool Australia.

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More reading

• ASX 200 shares marching higher on successive US Fed interest rate hike
• Why is the Kogan share price rocketing 32% higher today?
• Netflix is the worst-performing stock in the S&P 500. But is it a buy?
• Why is the Rio Tinto share price underperforming today?
• Broker gives its verdict on the Pilbara Minerals share price

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO. The Motley Fool Australia has positions in and has recommended AUDINATEGL 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 Kogan.com Ltd (ASX: KGN) share price has burst out of the gates on Thursday morning.

In early trade, the struggling ecommerce company’s shares are up a massive 32% to $4.12.

Why is the Kogan share price rocketing higher?

As well as getting a boost from a booming tech sector, the release of a business update appears to have got investors excited and short sellers panicking.

According to the release, for the 12 months ended 30 June, Kogan expected to report total gross sales of $1,180 million and gross profit of $184.6 million. This represents a 0.1% increase and a 9.4% decline year on year, respectively.

In addition, the company revealed that it expects to report an adjusted EBITDA of $19.1 million for FY 2022. Given the struggles it has had with margins this year, this appears to have come as a big surprise to the market. Particularly given how it reported negative adjusted EBITDA for the third quarter.

Another positive is a decent reduction in the company’s inventories. They have reduced from $193.9 million at the end of March to $161.1 million at the end of FY 2022.

Though, one slight negative that investors appear willing to overlook is that Kogan’s active customer numbers appear to have peaked, at least for the time being. After reporting 4,099,000 active customers at the end of March, Kogan finished the period with 3,972,000 active customers.

Why such a big gain for its shares?

The market has been very pessimistic on Kogan’s performance for some time. Particularly given management’s disastrous inventory mis-management and rising competition from Amazon.

This has led to the company becoming a firm favourite with short sellers. So much so, at the last count, 8.2% of Kogan’s shares were held short.

And while today’s result was not great on paper, it wasn’t as a bad as the market was expecting. It could also be a sign that the company is finally turning a corner.

In light of this, those short sellers may be in a hurry to close positions today, adding to the buying pressure and creating a short squeeze.

Management commentary

Kogan’s founder and CEO, Ruslan Kogan, believes that the company is well-placed in the current environment thanks to its value offering. He said:

Times are changing. In uncertain times, people don’t want to alter their lifestyle but they are happy to shift the way they shop. We know that in an environment where great value becomes even more important, Kogan.com serves an important need.

We are making the Business leaner to enable us to pass on cost efficiencies to customers in the form of lower prices. A leaner company means we discontinue parts of the Business that are not delivering value to customers or shareholders, and also gives us the flexibility to respond to significant ongoing changes in the macro environment.

The post Why is the Kogan share price rocketing 32% higher today? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why did the Kogan share price rocket 20% this week?
• These are the 10 most shorted ASX shares
• Can the Kogan share price turn over a new leaf in FY23?
• Why Allkem, Kogan, Metcash, and Sezzle shares are sinking

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 Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

This year is shaping up to be a leader in events that haven’t been seen in decades — not just inflation, gas prices, and interest rate hikes, but the stock market itself is off to its poorest start in 50 years. The S&P 500 is sitting 17% below where it started the year. And everyone thought 2020 was bad.

Yet as difficult as it’s been for stocks generally, none is having a worse time than Netflix (NASDAQ: NFLX), which is the worst-performing stock in the broad market index, with shares down over 63% year to date. Shocking subscriber losses were the primary fuel that lit the fire to the streaming video stock’s valuation. Maybe the destruction of shareholder value was justified, but has it gone too far?

Netflix is still the biggest streaming service globally and says next quarter it will recoup the 1 million subscribers it lost this time around. It’s still a powerhouse in the industry, so should investors be looking at buying this beaten-down streaming giant, or does it still have further to fall?

Trimming the streaming fat

Netflix shocked the market earlier this year when it reported a loss of 200,000 subscribers, though it noted it was primarily due to exiting Russia following that country’s invasion of Ukraine. That still meant its numbers would have been flat after promising it would add 2 million new subscribers — not very encouraging.

That could be why Netflix braced investors for the second quarter, when it said it might lose anywhere from 2 million to 4 million subscribers. As it only lost 970,000 subscribers, it looks like a win, particularly after saying it will win back at least that many in net additions in the third quarter.

So what’s changing that will improve its prospects?

Not worth the cost

Netflix maintains content is the reason viewers will come. Pointing to its hit series Ozark and Stranger Things, plus the original programming The Gray Man that just debuted, Netflix says it is committed to increasing entertainment value on the platform.

It’s about time, because anyone who’s watched Netflix in recent years knows that after movie studios yanked content to supply their own competing services, the Netflix menu was filled with vast oceans of dreck. It adopted a quantity-over-quality mindset to cover the fact that so much content had been removed from the platform, and it’s likely what is hurting the service now.

That could be a difficult hurdle to get over. Variety reports that while Netflix is still the leading, must-have streamer, customers also rank it dead last in perceived value. Warner Bros Discovery‘s HBO Max and Disney‘s Disney+ are the No. 1 and No. 2 services in the value chain.

Strategies to turn viewership around

Netflix is also counting on the addition of an advertising-based subscription tier to further bolster its business. Though it long rebuffed the idea of adding ads to its service, the success of other streaming services like Hulu that have done this likely cemented Netflix’s decision to do the same.

Its pricing is far higher than the competition’s, which also undoubtedly hurts it in customer satisfaction scores, so the addition of ads will allow it to be more competitive on price among those who don’t want to be paying $15 to $20 per month.

The risk, of course, is that Netflix ends up cannibalizing its primary streaming tiers. A Civic Science survey suggests that up to one-third of existing full-price subscribers would switch to a cheaper, ad-supported tier, potentially impacting revenue. Not to mention that there’s a bit of concern after social media company Snap reported earnings that were hit by lower ad spending. Advertisers are starting to rein in their budgets, which represents poor timing for Netflix.

Wait for better quality

Yet, Netflix stock isn’t cheap by traditional metrics. It trades at 21 times trailing earnings and 18 estimates, which may be discounted for the streamer but don’t necessarily represent bargain-basement valuations for a stock that’s lost two-thirds of its value.

At three times revenue and with earnings expected to grow 12% annually for the next five years, it seems the market may believe the streaming service stock is at best fairly valued, if not still on the high side. There may come a time when Netflix does bust out once more, but investors might want to wait to see if any of its initiatives actually hit their mark. 

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

The post Netflix is the worst-performing stock in the S&P 500. But is it a buy? appeared first on The Motley Fool Australia.

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More reading

• Netflix’s subscriber loss sell-off: Should you really ditch the stock?
• Netflix still has a long way to go
• Why did the Netflix share price lift despite losing 970,000 subscribers?
• The end of ‘Stranger Things’ might actually be a boost for Netflix
• Betting against Netflix now could be a big mistake

Rich Duprey has positions in Warner Bros. Discovery, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Warner Bros. Discovery, Inc. and has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Rio Tinto Limited (ASX: RIO) share price is underperforming on Thursday morning.

At the time of writing, the mining giant’s shares are up a fraction to $97.00.

As a comparison, the S&P/ASX 200 Resources index is up almost 1.5% in early trade.

Why is the Rio Tinto share price underperforming?

The Rio Tinto share price is underperforming this morning after the miner’s half-year results fell short of expectations.

After the market close on Wednesday, the mining giant released its results and revealed a sharper than expected decline in earnings over the prior corresponding period.

For the six months ended 30 June, Rio Tinto reported a 10% decline in revenue to US$29,775 million and a 26% reduction in underlying EBITDA to US$15,597 million.

As a comparison, the market consensus estimate was for revenue of US$30,785 million and underlying EBITDA of US$16,813 million.

Dividend missed by a mile

But perhaps the biggest drag has been the huge miss on its interim dividend. Although Rio Tinto declared its second largest interim dividend ever at US$2.76 per share, this was still well short of the market’s expectations.

The market was forecasting a fully franked interim dividend of US$3.30 per share and a special dividend of 67 US cents. Not only did its ordinary dividend disappoint, but there was no special dividend on this occasion.

Finally, comments from the company’s chief executive, Jakob Stausholm, may have also spooked investors a touch and could be weighing on the Rio Tinto share price.

The chief executive warned that the “market environment has become more challenging at the end of the period.”

The post Why is the Rio Tinto share price underperforming today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Rio Tinto share price on watch after half-year earnings miss
• Top broker issues new warning on outlook for iron ore price
• 5 things to watch on the ASX 200 on Wednesday
• Rio Tinto share price climbs ahead of tomorrow’s earnings update. Here’s what to watch

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has been pushing higher this month.

Since the start of July, the lithium miner’s shares have risen 12% to $2.58.

Can the Pilbara Minerals share price keep rising?

If one leading broker is on the money with its recommendation, there could still be plenty of room for the Pilbara Minerals share price to climb even higher from here.

According to a recent note out of Citi, its analysts have retained their buy rating and $3.20 price target on the company’s shares.

Based on the current Pilbara Minerals share price, this implies potential upside of 24% for investors over the next 12 months.

What is the broker saying about this lithium share?

Overall, Citi was pleased with the company’s recent quarterly update. While costs were higher than expected, the company’s production was strong.

And with lithium prices remaining strong, the broker believes Pilbara Minerals is well-placed to generate significant free cash flow.

The broker commented:

Preliminary JunQ production was better than we’d expected albeit at a higher cost. Including letters of credit, PLS expects to end June with A$850m on the balance sheet. With spodumene prices remaining strong at +US$6000/t, investors can look through higher C1 costs of ~US$380-460/t.

The fact that management can get cost guidance ~30% out of the money in the space of 2 months shows just how hard cost inflation is biting.

FID for the P680 project was expected; new news is the bring-forward of crushing capacity for the P1000. We’ve pushed back our expansion timeline six months & moved total P1000 capex to the upper end. We stay at Buy. TP now A$3.20/sh. There’s a growth story here supported by expectations of +13% FCF in FY23.

The post Broker gives its verdict on the Pilbara Minerals share price appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Rocks in their heads? How young investors helped make Pilbara Minerals one of the most popular shares of FY22
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 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 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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Earnings season is nearly on us, and rising inflation and hiked interest rates may prove a major weight for many S&P/ASX 200 Index (ASX: XJO) constituents.

Data released yesterday found Australian inflation hit its highest point in two decades last quarter, with the nation’s annual CPI surging to 6.1%.

A plethora of inflationary causes and effects, alongside other happenings, have seen the ASX 200 dump 10% since the start of 2022.  

And fund manager Fidelity International isn’t sitting on its hands. Its Fidelity Future Leaders Fund snapped up shares in three ASX 200 companies it believes have “defensive earnings stream[s]” and are in prime position for a post-pandemic recovery.

3 ASX 200 shares with defensive earnings: fundie

Ampol Ltd (ASX: ALD)

Shares in ASX 200 fuel and convince retailer Ampol have been performing well this year. Fidelity is expecting Ampol to deliver decent earnings in the future.

The company released an update last week announcing “unprecedented” refiner margins in the June quarter, coming in at US$32.96 per barrel.

Ampol was added as a new holding in the fund last quarter, taking up a 4.1% position.

Viva Energy Group Ltd (ASX: VEA)

2022 has also been a great year so far for the Viva share price. It has lifted 11% year to date.

The company also benefited from higher refinery margins last quarter, as well as rising sales. Its earnings before interest, tax, depreciation, and amortisation (EBITDA) are expected to have more than doubled in the first half.

Viva shares made up 2.8% of the fund’s holdings as of the end of June.  

Atlas Ateria Group (ASX: ALX)

Finally, ASX 200 toll road operator Atlas Ateria has seen its share price spike nearly 18% this year.

The company is benefiting from fewer COVID-19 restrictions, posting a 19% increase in revenue for the June quarter.

It has also been a takeover target in the eyes of private equity in recent weeks. Atlas Arteria has had two meetings with IFM after the fund noted it was considering posting an acquisition offer earlier this month. IFM announced it’s not currently interested in putting forward a bid this morning.

Atlas Arteria was added as a new position in the Fidelity Future Leaders Fund last quarter. It takes up a 2.8% spot.

The post 3 ASX 200 shares wielding a shield for returns: fundie appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• Do Woodside shares really have a 6% dividend yield right now?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why I think Coles shares are a compelling buy 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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If you’re looking for dividends shares to buy with attractive yields, then you may want to look at the two listed below.

Here’s why analysts rate these dividend shares highly:

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long Wale REIT could be an ASX dividend share to buy. It is a property company with a focus on office, industrial, and retail sectors.

Its portfolio includes 78 hotel properties leased to ALH Group that were acquired from ALE Property with Hostplus for ~$1.7 billion earlier this year. Staying true to its name, this brought the company’s lengthy weighted average lease expiry (WALE) to 12.2 years.

One broker that is particularly positive on Charter Hall Long Wale REIT is Ord Minnett. It currently has an accumulate rating and $5.46 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 30 cents in FY 2022 and 29 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.39, this will mean yields of 6.8% and 6.6%, respectively.

Telstra Corporation Ltd (ASX: TLS)

This telco giant could be a top option for income investors now that the tide is finally turning for its earnings.

After years of battling lost earnings from the NBN rollout, the company now has growth in its sights at long last.

In fact, after resetting the business with the transformational T22 strategy, the impending T25 is aiming to drive solid and sustainable growth. This could bode well for dividends in the coming years and could even mean the first dividend increase in almost a decade isn’t too far away.

But for now, the team at Morgans continues to forecast fully franked dividends per share of 16 cents in both FY 2022 and FY 2023. Based on the current Telstra share price of $3.98, this will mean yields of 4.1%.

Morgans also sees a lot of value in Telstra share price with its add rating and $4.56 price target on its shares.

The post Here are 2 ASX dividend shares to buy right now according to experts appeared first on The Motley Fool Australia.

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• Own Telstra shares? Here’s the latest on the telco’s new Microsoft deal
• 2 ‘good value’ ASX 200 shares offering what investors want right now: expert
• The Telstra share price has lost 4% over the past 5 years. Have the dividends been worth it?
• Analysts name 2 top ASX 200 dividend shares to buy
• Are Telstra shares still worth holding for dividend income today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended 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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Inflation has jumped in Australia. What does this mean for S&P/ASX 300 Index (ASX: XKO) shares and the Vanguard Australian Shares Index ETF (ASX: VAS)?

For readers unfamiliar with the VAS ETF, it’s an exchange-traded fund (ETF) that tracks the ASX 300. It’s an index fund.

The share price movements of names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) affect the movement of the unit price of the Vanguard Australian Shares Index ETF.

What’s happening with inflation?

The Australian Bureau of Statistics (ABS) just released the quarterly inflation numbers for the three months to June 2022. They showed CPI inflation of 1.8%. The 12 months to June 2022 showed annual inflation of 6.1%.

New dwelling costs rose 5.6% due to “high levels of building construction activity combined with ongoing shortages of materials and labour”, vehicle fuel prices rose 4.2%, and furniture prices increased 7%.

Inflation can have wide-reaching effects. It can lead to rising costs for different businesses in mining, retail, construction and so on. Wages are also increasing.

But there’s also the inflation impact on interest rates.

Central banks respond

Economists and central bankers believe it’s important to get inflation under control. They hope that by reducing economic demand for goods and services, inflation will slow to a more normal level. The Reserve Bank of Australia has an ongoing target range of 2% to 3%.

The US Federal Reserve just increased its interest rate by another 75 basis points or 0.75%. That’s the second increase of that size in a row.

Warren Buffett has previously explained why interest rates can be so influential for assets (such as the VAS ETF):

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

How are things going for the VAS ETF?

Since the start of 2022, the Vanguard Australian Shares Index ETF has dropped by more than 10%. It hasn’t fallen as much as other ETFs, such as the BetaShares Nasdaq 100 ETF (ASX: NDQ), which has dropped by 25%.

The big four ASX banks haven’t fallen much in 2022. For example, the CBA share price is only down by 3.5%. Analysts think that bank lending profitability can increase with stronger net interest margins (NIMs) as banks pass on the interest rate hikes to borrowers. However, brokers such as Morgan Stanley warn that higher interest rates could lead to more bad debts.

While the share prices of some resource businesses like Rio Tinto Limited (ASX: RIO) have dropped in recent weeks on weaker commodity prices, they started the year at a lower level. At the time of writing, the Rio Tinto share price is only down 2.7% for the year.

Tech and retail have been two of the hardest-hit sectors in this year’s sell-off. Tech is suffering from a hit to valuations, and investors are worried that retail could be affected by households having less money to spend.

As examples, the Wesfarmers Ltd (ASX: WES) share price is down 23% while the Xero Limited (ASX: XRO) share price is down 39%. But these aren’t major positions in the ASX 300 compared to banks and miners.

There is uncertainty in the ASX share market today. Investors will just have to see how long it takes to get inflation under control, and by extension, how high interest rates will have to go.

The post Inflation is soaring in Australia. Is that bad news for the Vanguard VAS ETF? appeared first on The Motley Fool Australia.

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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 positions in and has recommended BETANASDAQ ETF UNITS, CSL Ltd., and Xero. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS, Wesfarmers Limited, and Xero. 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 listed investment company (LIC) Argo Investments Limited (ASX: ARG) is one of the biggest investment funds in Australia. But what ASX shares does it own?

Argo has a market capitalisation of around $7 billion according to the ASX. It has been operating since 1946.

It aims to provide a portfolio of diversified ASX shares, with low operating costs because of its internal management structure. Its management expense ratio is 0.14%.

The LIC looks to “maximise long-term shareholder returns through reliable fully franked dividend income and capital growth.”

So, how does that translate into investments?

Argo’s portfolio holdings

Argo’s portfolio is focused on ASX blue-chip shares. Every month, the LIC tells investors what its portfolio looks like and what its biggest holdings are. From the latest monthly update, the LIC revealed these were the main positions:

Macquarie Group Ltd (ASX: MQG) – This is a global investment bank that offers various services like asset management, banking, investment banking and so on. It was 6.6% of the portfolio.

BHP Group Ltd (ASX: BHP) – BHP is a resources business that produces commodities like iron ore, copper and nickel. It was 5.8% of the portfolio.

CSL Limited (ASX: CSL) – CSL is a major ASX healthcare share that makes therapies and vaccines for people globally. It was 5% of the portfolio.

Commonwealth Bank of Australia (ASX: CBA) – CBA is Australia’s biggest bank.

Rio Tinto Limited (ASX: RIO) – This business is a major commodity player, which is exposed to iron ore, copper, aluminium and others.

Wesfarmers Ltd (ASX: WES) – It has various operations including major brand names like Bunnings, Kmart, Officeworks and Priceline. Wesfarmers was 3.3% of the portfolio.

Telstra Corporation Ltd (ASX: TLS) – Telstra is Australia’s biggest telco. It was 2.9% of the portfolio.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) – ANZ is another of Australia’s big four ASX banks. It was 2.8% of the portfolio.

Other positions in the top 20 holdings included: Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Santos Ltd (ASX: STO), Ramsay Health Care Limited (ASX: RHC), Aristocrat Leisure Limited (ASX: ALL), Computershare Limited (ASX: CPU), APA Group (ASX: APA), Transurban Group (ASX: TCL), Woolworths Group Ltd (ASX: WOW), Sonic Healthcare Limited (ASX: SHL), QBE Insurance Group Ltd (ASX: QBE) and Australian United Investment Company Ltd (ASX: AUI).

Sector diversification

Argo Investments’ industry allocation is fairly spread between various segments.

The LIC also lists out every month how much of the portfolio is invested in each sector. At 30 June 2022, this was the breakdown:

• Materials 15.1%
• Other financials 12.2%
• Banks 12.1%
• Healthcare 11.2%
• Consumer staples 9.1%
• Telcos and IT 8.6%
• Industrials 7.4%
• Energy 7.3%
• Consumer discretionary 6.4%
• Property 3.3%
• LICs 2.7%
• Cash 2.5%
• Utilities 2.1%

Foolish takeaway

As one of the biggest LICs, Argo shares get a lot of investor intention, particularly for its dividend. The last 12 months of dividends amount to a grossed-up dividend yield of 4.6%. The types of ASX shares it’s invested in largely have a reputation for paying dividends to shareholders.

The post Own Argo shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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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 positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended APA Group, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited, Ramsay Health Care Limited, Sonic Healthcare 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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The Mineral Resources Limited (ASX: MIN) share price will be in focus on Thursday.

This morning the mining and mining services company released its fourth quarter and full year update.

Mineral Resources share price on watch after record 12 months

• FY 2022 iron ore shipments of 19.2M wet metric tonnes (wmt)
• Full year spodumene concentrate shipments of 442kt
• Mining Services production volumes hit a record 274Mt for FY 2022

What happened during the quarter and full year?

During the three months ended 30 June, Mineral Resources reported iron ore shipments of 4.7M wmt. This took its FY 2022 iron ore shipments to 19.2M wmt, which was at the upper end of FY 2022 guidance range of 18.5-19.5M wmt.

Things weren’t quite as positive for the company’s Mt Marion operation, which fell a touch short of guidance in FY 2022. After shipping 141k dmt of spodumene concentrate during the quarter, its full year shipments came to 442k dmt. This was marginally below its guidance of 450-475k dmt.

Though, two positives were its costs and the realised spodumene concentrate price it received.

Mt Marion costs are expected to be with its guidance of A$570-A615/dmt and the price it received for its spodumene continues to increase. During the fourth quarter, Mineral Resources reported a realised spodumene concentrate price of US$2,645 per dmt, which was 35% higher quarter on quarter.

In addition, the company revealed that its maiden share of offtake for Mt Marion spodumene concentrate was converted into 6,722t of lithium hydroxide in China under the tolling agreement with Ganfeng.

The structure of this agreement means that Mt Marion lithium hydroxide EBITDA for FY 2022 is now expected to be US$150 to US$160 million and revenue for the sale of this product is now expected to be US$510 million to US$520 million.

The post Mineral Resources share price on watch following Q4 update appeared first on The Motley Fool Australia.

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More reading

• How much has Mineral Resources paid in dividends over the last 5 years?
• Here are the top 10 ASX 200 shares today
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• What’s the outlook for the Mineral Resources share price in FY23?
• Here are the top 10 ASX shares today

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