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If you’re looking for ASX 200 dividend shares to buy, then you may want to check out the two listed below.

Both have recently been named as buys by the team at Morgans. Here’s why its analysts rate them highly this month:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is mining giant BHP. Morgans rates the Big Australian very highly due to its diverse operations, strong balance sheet, and resilient dividend profile. The broke currently has an add rating and $48.30 price target on its shares.

It commented:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

In respect to dividends, the broker has pencilled in a $3.99 per share dividend in FY 2022 and then a $3.22 per share dividend in FY 2023. Based on the latest BHP share price of $39.22, this equates to yields of 9.8% and 8.2%, respectively.

Macquarie Group Ltd (ASX: MQG)

Another ASX 200 dividend share that could be in the buy zone is investment bank Macquarie. Morgans believes Macquarie is well-placed for growth over the long term thanks to structural tailwinds. It currently has an add rating and $215.00 price target on the company’s shares.

The broker said:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.

As for dividends, the broker is forecasting partially franked dividends of $7.07 per share in FY 2023 and $7.47 per share in FY 2024. Based on the current Macquarie share price of $170.69, this will mean yields of 4.1% and 4.4%, respectively.

The post Broker names 2 ASX 200 dividend shares to buy in July appeared first on The Motley Fool Australia.

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More reading

• Own BHP shares? Top broker warns of looming oversupply of iron ore in 2H 2022
• Why BHP and other ASX mining shares are making strides on Friday
• 4 ‘quality’ ASX shares to buy in scary times: expert
• I’m sticking by this ‘quality’ ASX share that’s fallen 20%: expert
• What’s the outlook for ASX 200 dividend shares in FY23?

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

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The end of the 2022 financial year for most individuals and businesses could be a good time to assess the performance of the National Australia Bank Ltd (ASX: NAB) share price.

NAB doesn’t have a financial year end date of 30 June 2022. September 2022 is the last month of NAB’s financial year.

At the time of writing, over the prior 12 months, the NAB share price has gone up 8% while the S&P/ASX 200 Index (ASX: XJO) has fallen by 8%. That’s outperformance of 16%.

NAB is one of the big four ASX bank shares along with Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

However, NAB has been executing on its strategies to try to grow profit.

Making profit and growing profit can be a key influence on the NAB share price, so let’s look at how the latest profit update went.

FY22 half-year result

A couple of months ago, NAB told investors about how it had performed for the six months to March 2022.

It said that it generated $3.48 billion of cash net profit after tax (NPAT). This was an increase of 4.1% year on year. Revenue rose by 4.6%, benefiting from “pricing discipline and strong growth in lending and deposits” which increased by 10% and 12% respectively.

The big four ASX bank said that focused investment was key for the performance in the result.

NAB said that the recent shift to a higher growth outlook provides greater scope to keep investing while continuing to deliver productivity benefits.

However, the investing and higher inflation environment means that it’s now expecting costs to rise by between 2% to 3% over the year. This is to drive growth opportunities while maintaining cost discipline.

The bank has enacted share buybacks totalling $5 billion. This had the effect of lowering the capital held to a more effective level and improving shareholder return statistics such as earnings per share (EPS).

The company also decided to increase its interim dividend per share by 21.7% to 73 cents per share.

FY22 projections

In FY22, NAB is expected to generate $2.17 of EPS according to CMC Markets. The annual dividend per share is predicted to be $1.48 per share.

At the current NAB share price, this means that it’s valued at 13x FY22’s estimated earnings with a projected grossed-up dividend yield of 7.5%.

The post The NAB share price outperformed the ASX 200 by 16% over 12 months appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Experts say these ASX dividend shares are buys this month
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• These 3 ASX 200 lithium stocks are exploding on Friday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Pessimism has never been more rife than in share markets right now.

High inflation, surging fuel prices, rising interest rates, a war in Ukraine and the threat of recession are all conspiring to make investors pretty anxious.

“Investors will have to navigate a period where economic and earnings growth could be vulnerable to downward revisions,” Wilsons head of investment strategy David Cassidy said in a memo to clients.

“We have already seen a downward revision in the S&P/ASX 300 (ASX: XKO) in June, and we think this will continue as we get closer to reporting season in August.”

In this type of macroeconomic climate, you might want to “turn down the noise” for a bit.

If you put the economy aside, one thing you may have noticed is that airports in Australia and the US have been jam-packed.

In fact, both the April and current school holidays have seen such long, chaotic queues at Sydney Airport that travellers are actually missing their flights.

When a particular industry is enjoying such pent-up demand, surely it has to be worth a look.

Qantas shares are dirt cheap compared to a month ago

Despite the massive thirst for travel, the fear of a recession has really pulled back the share price for Qantas Airways Limited (ASX: QAN).

This ASX airline share has lost more than 18% over the past month.

Cassidy reckons this presents “good value” to buy right now.

“Despite Qantas being a high beta stock, we believe near-term demand will be bolstered by pent-up leisure and corporate demand and outweigh the impacts of an economic slowdown,” he said.

“We think Qantas will be more resilient to a decline in economic conditions with its leaner cost base, stronger balance sheet, and higher loyalty contribution than in previous cycles.”

Besides, Cassidy personally thinks the market is now overestimating the risk of an economic downturn.

“Our view is that the outlook is not as bleak as what the market has priced in,” he said.

“As a result, we believe that in the broadening market sell-off, investors now have a good opportunity to buy quality stocks that are well priced.”

With the travel industry surging, the Wilsons team reckons the airline’s price-to-earnings (P/E) ratio based on the 2024 financial year could rise to 10. It currently trades at 6.

That’s a 67% upside.

“If Qantas can achieve consensus earnings of $0.68 per share in FY24 (which we think it can) then the stock should be priced at the end of June 2023 at $6.80 using a 12-month forward PE multiple of 10,” he said.

“As the market gets more focused on the FY24 earnings over the next 12 months we think the stock can rerate towards this price target.”

Qantas shares closed Friday down 0.22% at $4.44.

The post Expert names ASX share that could fly 67% higher appeared first on The Motley Fool Australia.

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More reading

• Qantas share price slides as engineers plan strike action
• How did the Vanguard Australian Shares Index ETF perform in June?
• Why did the Qantas share price outperform the ASX 200 in FY22?
• How did ASX travel shares perform in June?
• ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals

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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.45% to 6,678 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to start the week with a gain after a mixed night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning. On Wall Street, the Dow Jones was down 0.15%, the S&P 500 fell 0.1%, and the Nasdaq climbed 0.1%.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price climbed 2% to US$104.79 a barrel and the Brent crude oil price climbed 2.3% to US$107.02 a barrel. This couldn’t stop oil prices recording a weekly decline amid recession fears.

Woolworths given conviction buy rating

The Woolworths Group Ltd (ASX: WOW) share price could be great value according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating and added the retail giant’s shares to its conviction list with a $40.50 price target. Goldman commented: “WOW now has a higher upside of 10% (3rd highest in our consumer/retail coverage, but with clear catalysts to re-rating)”

Gold price edges higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price edged higher on Friday night. According to CNBC, the spot gold price was up 0.15% to US$1,742.3 an ounce. Despite this, the gold prices recorded its fourth successive weekly decline.

Domino’s downgraded to sell

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could have a tough day after being the subject of a bearish note out of Goldman Sachs. According to the release, the broker has downgraded the pizza chain operator’s shares to a sell rating and cut the price target on them to $59.20. Goldman believes consensus earnings estimates are too high because of potentially “lower earnings in Japan and Europe due to lower store growth and not being able to fully pass through cost-inflation.”

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

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More reading

• Top brokers name 3 ASX shares to buy next week
• How did Beach Energy shares pull off a 40% return in FY 2022?
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the Santos share price glowing green at the end of the week?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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If you’re looking to strengthen your portfolio with some new blue chip ASX 200 shares, then you may want to consider the two listed below.

Both have recently been named as buys by the team at Morgans. Here’s what the broker has to say about these ASX 200 shares:

South32 Ltd (ASX: S32)

The first blue chip ASX 200 share that Morgans rates highly is South32. It is a mining giant with exposure to a range of commodities such as aluminium and copper. The broker has been pleased with the way South32 has transformed its portfolio and boosted its ESG credentials. It commented:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

Morgans has an add rating and $6.10 price target on South32’s shares. This implies potential upside of 63% from the current South32 share price of $3.73.

Treasury Wine Estates (ASX: TWE)

Another blue chip ASX 200 share that Morgans rates highly is Treasury Wine. Morgans believes the wine giant’s shares are great value in comparison to peers and sees strong growth ahead for the company.

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on the company’s shares. Based on the current Treasury Wine share price of $11.43, this implies potential upside of 22% for investors.

The post Broker names 2 blue chip ASX 200 shares to buy this month appeared first on The Motley Fool Australia.

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More reading

• Here’s why experts are tipping these ASX growth shares as buys
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Is now the time to be buying beaten down ASX 200 mining shares?
• Why experts rate these ASX growth shares 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates 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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A new financial year is here, so what better time to consider making some portfolio changes.

If you’re interested in ETFs, then you may want to consider the three listed below.  Here’s why they could be top options for investors in FY23:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF for investors to look at this financial year is the iShares Global Consumer Staples ETF. As its name implies, this ETF provides investors with exposure to a large number of global consumer staples companies. These are companies that produce essential products such as food, household items, and tobacco. Among its holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for ASX investors to consider in FY23 is the iShares S&P 500 ETF. This ETF gives investors exposure to 500 of the top U.S. stocks. This could make it a good option for investors that are wanting to add some diversity to their portfolio. In addition, the fund manager, Blackrock, highlights that the ETF offers long-term growth opportunities for investors thanks to its quality holdings. These holdings include companies such as Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at this financial year is the VanEck Vectors Video Gaming and eSports ETF. This increasingly popular ETF provides investors with exposure to the growing video gaming market. This includes hardware giant Nvidia and game developers such as Roblox, Take-Two and Electronic Arts. VanEck notes that these companies are in a strong position to benefit from the increasing popularity of video games and eSports.

The post Here are 3 ETFs for ASX investors to buy in FY23 appeared first on The Motley Fool Australia.

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More reading

• Here are 2 top ETFs for ASX investors next week
• 3 excellent ETFs for ASX investors to buy in July
• 3 quality ETFs for ASX investors to buy next week
• 2 quality ETFs to buy for the long-term
• 2 fantastic international ETFs for ASX investors to buy

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 iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AVZ Minerals Ltd (ASX: AVZ) share price may have ended the last financial year suspended, but that couldn’t stop it from absolutely smashing the market during the 12 months.

The lithium developer’s shares rose from 16 cents to 78 cents over the period, recording a whopping 388% gain for investors that were lucky enough to snap them up at the start of it.

Why did the AVZ share price smash the market?

There were a number of catalysts for the outperformance of the AVZ Minerals share price.

This includes its inclusion in the illustrious ASX 200 index, optimism over its Manono Lithium and Tin project, and booming lithium prices.

In respect to the latter, lithium prices have been breaking records in 2022 amid supply constraints and insatiable demand for the white metal from electric vehicle manufacturers. This has sparked hopes that when AVZ finally commences production, it will be generating significant free cash flow.

Will FY 2023 be just as good?

What happens in FY 2023 will depend largely on a couple of factors.

The first is the future price of lithium. Analysts at Goldman Sachs are predicting a sharp decline in lithium prices in the coming years. So, by the time that AVZ does start selling the battery material ingredient, it may not be commanding prices anywhere near what Pilbara Minerals Ltd (ASX: PLS) is receiving today. This could put pressure on the company’s shares.

There’s also something else to worry about before then. Something even bigger. That is the company’s ownership of the Manono Lithium and Tin project in the Democratic Republic of the Congo.

The reason the AVZ share price was suspended for the final month of the financial year was its court battle with Jin Cheng Mining. There are concerns that if things don’t go to plan, the company could ultimately be left with just a 36% ownership of the project. This would have obvious consequences for the valuation of the company and its shares.

All in all, the next 12 months certainly will be interesting. But only time will tell if the company’s shares are market-beaters again.

The post Why did the AVZ share price thump the market in FY22? appeared first on The Motley Fool Australia.

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More reading

• Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22
• The AVZ Minerals share price went nowhere in June. Here’s why
• ASX 200 midday update: Regis Resources jumps, BHP and Rio Tinto drop
• AVZ share price remains suspended, but a return is in sight
• 5 things to watch on the ASX 200 on Friday

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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What a rollercoaster it has been for the Accent Group Ltd (ASX: AX1) share price over the past five years.

After climbing to a pre-COVID high of $2.20, the shoe retailer’s shares hit a multi-year low of 55.5 cents in March 2020.

Nonetheless, challenging trading conditions turned favourable once again following the federal government generous stimulus package.

In the following year, Accent shares rocketed to an all-time high of $3.08 before crashing all the way back down.

While its shares have been turbulent, investors would be up around 64% based on today’s price of $1.43. And this doesn’t include the consistent dividends that have been paid to shareholders during the past five years.

A brief rundown on the Accent dividend history

Listed below, I’ve put together Accent’s dividends that have been paid out to shareholders since this time in 2017.

• September 2017 – 3 cents (final)

• March 2018 – 3 cents (interim)

• September 2018 – 3.75 cents (final)

• March 2019 – 4.5 cents (interim)

• September 2019 – 3.75 cents (final)

• March 2020 – 5.25 cents (interim)

• September 2020 – 4 cents (final)

• March 2021 – 8 cents (interim)

• September 2021 – 3.25 cents (final)

• March 2022 – 2.5 cents (interim)

When calculating the above, Accent has paid a total of 41 cents in dividends to shareholders over the five years.

Added with the share price gains, investing your money in the company from 2017 would have been worthwhile.

For example, a $10,000 initial investment would have reaped around $12,200 in profit for the 5-year period.

Accent share price summary

Despite accelerating over the long term, Accent shares have lost almost 50% in the past 12 months.

Year-to-date hasn’t fared well either, down 40% due to rampant inflation and aggressive interest rates by the Reserve Bank of Australia.

Accent presides over a market capitalisation of approximately $777.9 million and has a dividend yield of 4.32%.

The post How much has the Accent dividend paid to shareholders in the last 5 years? appeared first on The Motley Fool Australia.

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More reading

• Experts say these ASX dividend shares are buys this month
• Why experts rate these top ASX dividend shares as buys
• What is the current dividend yield for Accent shares?
• Top brokers name 3 ASX shares to buy today
• 2 excellent ASX dividend shares that experts rate as buys this week

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

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

AGL Energy Limited (ASX: AGL)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this energy company’s shares to $9.67. Morgans notes that AGL remains its preferred exposure to electricity prices. This is because it sees cheap fuel costs from low cost coal underpinning an earnings recovery despite some underperformance in the legacy generation fleet. The AGL share price ended the week at $8.31.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $100.00 price target on this pizza chain operator’s shares. The broker was pleased to see Domino’s introduce a 6% service fee on deliveries to offset cost inflation. Its analysts believe this highlights that the company has opportunities to support its margins. In light of this, the broker suspects that Domino’s could outperform the market’s expectations in FY 2023. The Domino’s share price was fetching $75.51 at Friday’s close.

Sonic Healthcare Limited (ASX: SHL)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $33.30 price target on this healthcare company’s shares. The broker notes that recent Medicare data shows that Sonic is still benefiting from COVID testing demand. It was also pleased to see that diagnostic imaging demand is recovering. Overall, based on this data, it believes the company’s shares are trading at an attractive level compared to peers. The Sonic share price ended the week at $33.30.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Own Sonic Healthcare shares? Here’s a look at the state of its balance sheet
• Here are the top 10 ASX shares today
• Why did the AGL share price have a volatile FY22?
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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 recommended Dominos Pizza Enterprises Limited and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Adairs Ltd (ASX: ADH) share price roughly halved in the 2022 financial year in what was a tough time for shareholders.

Despite that decline, the business is only back to where it was two years ago. Even so, that may not give much short-term comfort for investors that bought shares above $3 a share.

Adairs is a homewares and furniture retailer through three brands – Adairs, Mocka and Focus on Furniture.

Adairs has a national store network, Focus on Furniture has plans for a national store network and Mocka specialises as an online retailer.

Lockdowns and lower profitability

The first half of FY22 saw group sales of $241.8 million, including a $12.5 million contribution from Focus. Excluding Focus, online sales rose 8.2% to $97.6 million, contributing over 40% of total sales.

While sales largely held up, profitability sank. Underlying earnings before interest and tax (EBIT) was $32.9 million, which included a $2.9 million contribution from Focus. That underlying EBIT compares to $60.2 million in the prior corresponding period.

However, Adairs explained there were several hits to EBIT due to COVID-19. The company estimated that there was a $15 million hit due to Adairs’ COVID-19 store closures. There was an estimated $2.5 million EBIT hit because of warehousing disruptions and a $1.4 million hit because of Australian courier disruptions.

However, compared to the first half of FY20, Adairs’ underlying EBIT was 45% higher.

Profitability can be an important factor for the Adairs share price and most other businesses.

The last trading update that investors have seen was for the first seven weeks of the FY22 second half which showed total sales were up 33.8% – but this was essentially because the sales of the acquired business Focus are now being included.

In those first seven weeks, Adairs store sales were down 1.8%, Adairs online sales were up 9.7% and Mocka sales were up 14.8%.

The outlook can have a material impact on the Adairs share price. In terms of the outlook, as of February 2022, Adairs said:

All group brands have good in-country stock levels and clear opportunities for growth through the second half of FY22. The macro-economic environment is supportive with strong employment and emerging wages growth. Subject to no adverse COVID-19 development occurring management are confident about the prospects for the group in the FY22 second half and beyond.

Profit and dividend expectations

Looking at the earnings projections on CMC Markets, Adairs is expected to make 29.9 cents of earnings per share (EPS) and also pay an annual dividend per share of 18.2 cents.

Those numbers put the Adairs share price at under 8 times FY22’s estimated earnings with a possible grossed-up dividend yield of 11.3%.

Time will tell how inflation and rising interest rates impact demand for Adairs’ products, its profit and the valuation.

The post What caused the Adairs share price to halve in FY22? 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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS 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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