Tag: Motley Fool

  • How much have CSL shares paid in dividends over the last 5 years?

    A woman looks quizzical while looking at a dollar sign in the air.A woman looks quizzical while looking at a dollar sign in the air.

    The CSL Limited (ASX: CSL) share price continues to struggle this year, but what about the company’s dividends?

    After falling to a 52-week low of $240.10 in February, shares in the global biotech leader have travelled sideways.

    On Friday, CSL shares closed 1.4% higher at $271.25 apiece.

    This is in stark contrast to when the company’s share price registered double-digit gains year-on-year before COVID-19.

    Nonetheless, the CSL board has continued to pay dividends to shareholders in times of economic uncertainty.

    Let’s dive in to see if the CSL dividends have provided meaningful returns to shareholders over the past five years.

    What is CSL’s dividend history?

    Here’s a short list I have put together on CSL’s most recent dividend history.

    • October 2017 – 92 cents (final)
    • April 2018 – 101 cents (interim)
    • October 2018 – 128 cents (final)
    • April 2019 – 120 cents (interim)
    • October 2019 – 145 cents (final)
    • April 2020 – 147 cents (interim)
    • October 2020 – 147 cents (final)
    • April 2021 – 135 cents (interim)
    • September 2021 – 159 cents (final)
    • April 2022 – 142 cents (interim)

    When adding the above amounts, CSL has paid a total dividend of $13.16 per share over the past five years.

    However, investors have also seen the CSL share price rise by around 87% during that time.

    This means that even a small investment in the global biotech leader’s shares would have reaped some serious benefits.

    Currently, CSL has a trailing dividend yield of 1.15%.

    CSL share price summary

    Despite being one of the best places to park your money over the long term, CSL shares have lost around 8% year to date.

    Volatility across global markets due to high inflation levels and rate hikes has been the norm in 2022.

    Based on valuation grounds, CSL presides a market capitalisation of approximately $126.09 billion.

    The post How much have CSL shares paid in dividends over the last 5 years? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Csl Limited right now?

    Before you consider Csl Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Csl Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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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  • Experts say investors should buy these top blue chip ASX shares

    A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

    A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

    If you’re looking for blue chip shares to buy, then you may want to consider the two listed below that brokers are bullish on.

    Here’s what you need to know about these blue chips:

    Cochlear Limited (ASX: COH)

    The first ASX blue chip share for investors to look at is Cochlear. It is one of the world’s leading hearing solutions companies.

    Goldman Sachs is positive on the company, particularly given its improving outlook. In fact, the broker suspects that Cochlear could outperform its guidance in FY 2022.

    Goldman commented:

    We believe the steady declines in [COVID] hospitalisation rates across key markets, supportive backlog volumes and improved margin trajectory support a much improved picture from here.

    As such, we believe current targets for FY22 offer the best chance in several years for COH to deliver at/above the top-end of its guided range (GSe: A$297m).

    The broker currently has a buy rating and $237.00 price target on Cochlear’s shares. Based on the current Cochlear share price of $195.16, this implies potential upside of 21% for investors.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    Another blue chip ASX share that brokers say investors should buy is pizza chain operator Domino’s.

    Analysts at Morgans are particularly bullish on the company due to its bold store rollout plan. This sees Domino’s aiming to increase its store network to 6,650 stores by 2033, which will be more than double its current network.

    Morgans also likes the company due to its defensive qualities in tough times. Though, it concedes that that the near term could be challenging. It explained:

    Demand for DMP’s product is likely to remain resilient in times of inflation and slower economic growth. Takeaway food has been one of the most resilient categories of consumer spending during periods of rising inflation. The engine of DMP’s growth is the rollout of new stores.

    Although near-term store rollout may be slower than DMP would like, the medium-term opportunity is absolutely undiminished, as evidenced by the reiteration of the 2033 outlook today. DMP has developed a solid platform for inorganic expansion.

    The broker has an add rating and $93.00 price target on its shares. Based on the current Domino’s share price of $66.15, this suggests potential upside of 40% for investors.

    The post Experts say investors should buy these top blue chip ASX shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and 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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  • 2022 has seen a record first half for ASX mergers and acquisitions. Here’s the lowdown

    Projection of two hands being shaken on a deal.Projection of two hands being shaken on a deal.

    While ASX equity and credit markets deal with one of the worst starts to the year on record, it’s been an entirely different story over in investment banking land.

    Mergers and acquisitions (M&A) activity has nudged past a number of records in the first half of 2022, according to data compiled by Refinitiv.

    Fees alone are up 78% on the prior corresponding period, and deal volume was the highest on record.

    Crunching the record numbers

    M&A activity blew to new heights in the first half of 2022, according to data presented in the Australia Investment Banking Review First Half 2022 from Refinitiv.

    There have been at least four deals announced so far above US$5 billion with a cumulative value of $52 billion, as of June 21.

    Data compiled by Refinitiv showed it was a record period for Australia on many fronts.

    Overall Australian involvement announced M&A activity amounted to US$103.5 billion in the first half of 2022, a 25.4% increase compared to the first half of last year, making it the highest first-half period since records began in 1980.

    The ASX healthcare sector accounted for 23% market share of the deal-making activity by value and totalled US$24.2 billion.

    This was underlined by the US$22.1 billion takeover bid for Ramsay Health Care Limited (ASX: RHC) by a consortium led by private equity giant KKR.

    It is currently the biggest-ever healthcare deal in Australia, Refinitiv notes.

    The energy and power sector followed with 16.6% market value, booking US$17.2 billion of deals, up 26.3% from H1 FY21.

    What the report calls “high technology” saw the most number of deals, but captured 13.6% of deal market share.

    “Based on preliminary data, Barclays currently leads the Australian involvement announced M&A league tables, with US$36.1 billion in related deal value capturing 34.9% market share,” Refinitiv also said.

    Inbound M&A activity is also up 74% from last year, primarily from capital flows from the US. Meanwhile, there are several deals still pending, with only two showing completed on the data provider’s slide deck.

    Nevertheless, it shows there’s been a spike in deal-making in Australia at the top end of town, suggesting the outlook for Australia might be quite robust, all things considered.

    The post 2022 has seen a record first half for ASX mergers and acquisitions. Here’s the lowdown appeared first on The Motley Fool Australia.

    Should you invest $1,000 in right now?

    Before you consider , you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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  • Why I think the Adore Beauty share price is a great buy today

    A beautiful woman with brown hair and wearing bright red lipstick looks shocked as she holds her hand to her cheek in response to the crumbling Adore Beauty share price todayA beautiful woman with brown hair and wearing bright red lipstick looks shocked as she holds her hand to her cheek in response to the crumbling Adore Beauty share price today

    In my opinion, the Adore Beauty Group Ltd (ASX: ABY) share price is too good to ignore at its current level.

    The beauty e-commerce business has seen a very large sell-off – it’s down by more than 70% in 2022.

    Plenty of ASX growth shares have seen valuation pain amid inflation and interest rate rises.

    While higher interest rates do theoretically pull down on asset prices, I think Adore Beauty has been punished too hard.

    I believe there’s a beautiful opportunity here, not just because of the decline but also due to a number of positives for the company.

    Revenue

    While revenue isn’t the same as profit, I think it’s important to recognise that Adore Beauty is processing a lot of online orders these days, particularly after the e-commerce adoption arising from the COVID-19 lockdowns.

    In the latest quarter alone (the FY22 third quarter), Adore Beauty achieved $42.7 million of revenue. This was up 9% year on year.

    While the growth rate has slowed, it did still achieve good year-on-year growth in my opinion.

    There’s an argument that Adore Beauty’s products could be more defensive than some discretionary spending items. The Adore Beauty CEO Tennealle O’Shannessy said:

    Beauty, especially skincare, is unique within the broader retail market and is resilient to economic challenges. Our products are used daily by customers, who consider these items essential and frequently re-purchase. The nature of premium beauty means our customers spend more as they mature on the platform, with returning customers typically contributing more than 70% of total revenue.

    Growth initiatives

    Over the long term, I think Adore Beauty can continue to grow. It’s the potential growth of the business that makes me believe that it’s currently undervalued.

    Firstly, the number of active customers keeps rising. If it can increase its customer base, retain customers, and encourage them to spend more (on Adore Beauty’s website) over a year then that will benefit the ASX share.

    In the FY22 third quarter, the company said active customers went up 7% year on year to 880,000, while returning customers increased 47%.

    In the FY22 half-year result, annual revenue per active customer rose 5% year on year to $224. I think returning customers spending more will be a key factor for the Adore Beauty share price over time.

    Its mobile app now accounts for 10% of revenue and continues to deliver “elevated levels” of engagement, conversion and average order values, according to the company. The launch of its “first” private label products can also help grow, which will hopefully come with higher gross profit margins as well.

    The company has a number of podcasts to connect with customers, for a cheaper cost than paid market channels. It also has its own YouTube channel.

    Adore Beauty points to successful partnerships with Temple & Webster Group Ltd (ASX: TPW) and 7-Eleven to increase brand awareness.

    It’s operating in a “large and growing $11 billion market”, giving a large addressable market to work with.  In 2020, 11.4% of the Australian beauty market was online. That compares to 18.4% in the UK in 2020, so there is potential for a large increase in online adoption.

    Increasing scale to help operating leverage

    The company is aiming to invest heavily to achieve above-market growth. That’s why its earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be between 2% and 4% in the shorter term.

    Adore Beauty itself said that:

    In the longer-term, as the business grows, scale benefits are expected to increase operating leverage and deliver further EBITDA margin expansion.

    In HY22, the business saw its gross profit margin increase 0.6 percentage points to 33.1% thanks to product margin expansion and brand funding.

    The company said that as it grows it will be able to slow its investment in fixed costs, it can forge closer relationships with brands to optimise terms and increase brand funding, and it plans to grow its margin-accretive private label.

    The post Why I think the Adore Beauty share price is a great buy today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group 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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  • ‘Need to see cash’: Why these fundies tip big things for the Santos share price

    A man in a hard hat puts his finger up to say 'number one' in front of an oil mineA man in a hard hat puts his finger up to say 'number one' in front of an oil mine

    The Santos Ltd (ASX: STO) share price closed down 1.77% at market close on Friday on no news. It now rests at $7.22.

    In broad market news, the S&P/ASX 200 Energy Index (ASX: XEJ) finished 1.45% down on Friday, extending its losses to 6% for the past week.

    TradingView Chart

    Fundies still say Santos is a buy

    The oil and gas trade continues to wind up and those managing investor capital are bullish on Santos.

    “It’s a buy from us,” said Luke Smith from Ausbil Investment Management when speaking to Livewire.

    “We’re bullish on both oil and gas. Santos, for us, is the preferred way to play that in the Australian space. [It] has lagged the commodity for some time,” he added.

    He reckons the market should start to appreciate Santos’ free cash flow growth and reflect that in share price gains.

    “I [also] think ultimately the capital management will force the market to take heed to how much cash is being generated by this business,” he remarked.

    Meanwhile, Tom Richardson from Paradice Investment Management is bullish on Santos as well.

    Richardson said he was surprised at “how little this stock had done” with being an oil and gas play, also speaking to Livewire.

    “[I]t’s just they need to see the cash,” he added. “I think that’s inevitable with Santos. As much as development optionality they’ve got, there’s going to be a lot of cash coming back to shareholders and the share price will reflect it.”

    The Santos share price has spiked 14% this year to date despite reversing down 12% in the past month of trade. Over the past year, it is flat.

    The post ‘Need to see cash’: Why these fundies tip big things for the Santos share price appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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

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  • Brokers name 2 ASX dividend shares to buy next week

    An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the gains of ASX mining shares

    An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the gains of ASX mining shares

    If you’re looking for dividend shares to buy then you may want to look at the two below that brokers are recommending.

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

    National Australia Bank Ltd (ASX: NAB)

    The first ASX dividend share to look at is banking giant NAB. It could be a top option for investors after recent weakness in the sector.

    Particularly given its strong position in business banking, which is expected to perform far better than retail banking in the current environment. It is for this reason that analysts at Goldman Sachs currently have a conviction buy rating and $34.26 price target on its shares.

    Its analysts said: “NAB’s balance sheet mix provides the best exposure to the domestic system growth we foresee over the next 12-18 months, which should favour commercial over mortgage lending.”

    As for dividends, the broker has pencilled in fully franked dividends per share of 151 cents in FY 2022 and then 168 cents in FY 2023. Based on the current NAB share price of $27.02, this equates to yields of 5.6% and 6.2%, respectively.

    Transurban Group (ASX: TCL)

    Another ASX dividend share to consider is toll road operator Transurban.

    Morgans is positive on Transurban and currently has an add rating and $14.42 price target on its shares. Its analysts are expecting the company’s dividends to recover quickly from the pandemic as traffic returns to its key roads.

    It commented: “Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects.”

    For now, Morgans is forecasting dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price, this implies yields of 2.6% and 4.3%, respectively.

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

    Should you invest $1,000 in National Australia Bank Ltd right now?

    Before you consider National Australia Bank Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and National Australia Bank Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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 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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  • Here’s why brokers rate these ASX growth shares as buys

    happy investor, share price rise, increase, up

    happy investor, share price rise, increase, up

    Looking for growth shares to buy next week? Well, listed below are two growth shares that have recently been named as buys and tipped to have major upside potential.

    Here’s what you need to know about them:

    Dicker Data Ltd (ASX: DDR)

    Dicker Data could be a growth share to buy. It is a leading technology hardware, software, and cloud distributor.

    The company has been a quiet achiever over the last decade, delivering consistently solid earnings and dividend growth without much fanfare. Pleasingly, this positive form has continued this year with Dicker Data delivering a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million during the first quarter.

    One leading broker that appears to believe this strong form can continue is Morgan Stanley. Last month, the broker retained its overweight rating and $16.00 price target on its shares. Based on the current Dicker Data share price, this implies potential upside of over 40%.

    Treasury Wine Estates Ltd (ASX: TWE)

    Treasury Wine could be another ASX growth share to buy. It is of course the wine giant behind popular brands such as 19 Crimes, Penfolds, and Wolf Blass.

    After taking a big hit from being kicked out of China, Treasury Wine has returned to form in FY 2022. This has been driven largely by the success of its North American business.

    The good news is that analysts at Morgans expect this positive form to continue. In fact, the broker said that it believes the “foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years.”

    Morgans has an add rating and $13.93 price target on the company’s shares. Based on the current Treasury Wine share price of $11.30, this implies potential upside of 23% for investors.

    The post Here’s why brokers rate these ASX growth shares as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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  • Why this broker is tipping ‘strength in the CSL share price’

    A scientist in a white coat and glasses puts her arms in the air in a sign of strength and success.

    A scientist in a white coat and glasses puts her arms in the air in a sign of strength and success.

    The CSL Limited (ASX: CSL) share price has tumbled lower with the market in 2022.

    Since the start of the year, the biotherapeutics giant’s shares have lost 8% of their value.

    In light of this, investors may be wondering if the CSL share price is now trading at an attractive enough level to start an investment.

    Is the CSL share price in the buy zone?

    According to a note out of Citi, its analysts believe that CSL’s shares are great value at the current level.

    The note reveals that the broker has retained its buy rating but trimmed its price target slightly to $330.00.

    This implies potential upside of 22% for investors over the next 12 months.

    What did the broker say?

    Citi has been looking at the plasma industry again and was pleased with what it saw.

    This includes strong underlying demand for plasma products and much-improved plasma collection conditions. In light of the latter, the broker feels that the market will move on from its collections focus, which has been weighing on the CSL share price, and focus more on demand.

    Citi’s analysts explained:

    Recently, there have been several data points influencing our view on the plasma sector. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.

    Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand.

    The broker expects the above to “lead to strength in the CSL share price.” Which could bode well for investors in the near future.

    The post Why this broker is tipping ‘strength in the CSL share price’ appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 positions in and has recommended CSL Ltd. 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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  • Broker sees 23% upside and a huge yield for BHP shares

    Three happy miners.

    Three happy miners.

    The BHP Group Ltd (ASX: BHP) share price has come under pressure this week following a pullback in the iron ore price.

    This means the mining giant’s shares are now trading at their lowest levels in 2022.

    Is the BHP share price a buying opportunity?

    The team at Goldman Sachs are likely to see the pullback in the BHP share price as a buying opportunity.

    Last week, the broker reiterated its buy rating with a $49.40 price target. This implies potential upside of 23% for investors over the next 12 months.

    And sweetening the deal even further, the broker is forecasting a fully franked dividend yield of over 12% in FY 2022.

    This stretches the total potential return on offer with the Big Australian’s shares to approximately 35% for investors.

    What is Goldman saying?

    Goldman Sachs has named three key reasons for its positive view on the BHP share price. This includes its current valuation relative to peers, its production growth pipeline, and its strong free cash flow generation.

    Goldman explained:

    1. Relative valuation: BHP to continue trading at a premium to global mining peers (~0.5x premium to global mining peers over 10-yrs) which we believe can be maintained

    2. ~US$20bn copper pipeline to drive production growth and value: BHP’s major opportunity (and challenge) is offsetting copper reserve depletion and grade decline through investing in copper reserves/resources (largest globally).

    3. Attractive FCF and capital returns outlook: BHP is trading on an attractive FCF/DPS yield of c. 11%/8% over the next 12-m. BHP’s minerals capex increasing to US$8-9bn by mid-decade (but below peer RIO at US$9-10bn).

    All in all, this could make BHP shares a great option if you’re looking for exposure to the mining sector.

    The post Broker sees 23% upside and a huge yield for BHP shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group Ltd right now?

    Before you consider Bhp Group Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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 positions in and has recommended Goldman Sachs. 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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  • Own Domino’s shares? Here’s how the company plans to grow through tough times

    Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share priceTwo parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price

    Shares in Domino’s Pizza Enterprises Ltd (ASX: DMP) have been killed in 2022. The Domino’s share price has fallen 60% from a 52-week high of $167.15 in September 2021 to $66.15 at market close on Friday.

    Domino’s was among the pandemic winners on the ASX. Immediately before the crash, the Domino’s share price was trading at about $62 — a few dollars lower than today’s share price.

    Then people were put into lockdown. Takeaway and delivery meals became extremely popular. Brands like Domino’s actively leveraged the pandemic to grow their business through measures such as a ‘zero contact delivery service’ to entice more customers.

    Now that lockdowns are over, has the Domino’s share price simply come back down to Earth?

    Domino’s grew alongside its share price during COVID-19

    In a recent presentation, Domino’s outlined its growth during the pandemic and plans for future growth.

    Domino’s has franchises all over the world. According to its presentation, there are currently 3,327 stores across 10 markets. Six are in Europe and four are in the Asia-Pacific region.

    Over the two years of the pandemic, network sales increased by 29.5%. EBIT increased by 25.2% and the network’s store count increased by 24.3%. They’re the stats for H122 compared to H120.

    What Domino’s is going to do next…

    Over the long term, Domino’s is aiming for 3,600 stores in Asia-Pacific (83.8% growth) and 3,050 stores in Europe (123% growth).

    The presentation described the “engine of our growth” as digital sales, with a compound annual growth rate (CAGR) of 26.75% since FY14. Online sales accounted for $557 million in sales in FY14 compared to $2.93 billion in FY21.

    Customers are increasingly wanting their food delivered. In Domino’s markets, online food delivery orders in the quick service restaurant (QSR) sector are forecast to rise 46.9% by 2026, according to Statista.

    The challenge of this rising trend is finding enough staff to meet the increasing demand for delivery. So, growing the labour pool is a priority.

    Domino’s intends to grow its customer base by spending more on advertising, particularly television, and growing its store network.

    The company says it’s also possible to reduce delivery costs by a third in every market. One way to do this is to reduce the reliance on cars to deliver food and instead use bicycles.

    Domino’s acknowledged current global economic headwinds in its presentation.

    “We face historic headwinds, including inflation, conflict in Europe, and currency movements, but we are focused on the long-term”.

    The post Own Domino’s shares? Here’s how the company plans to grow through tough times appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Domino’s Pizza Enterprises Ltd. right now?

    Before you consider Domino’s Pizza Enterprises Ltd., you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Domino’s Pizza Enterprises Ltd. wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Bronwyn Allen has positions in Dominos Pizza Enterprises Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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