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BHP Group Ltd (ASX: BHP) shares are in the spotlight this week amid reports the S&P/ASX 200 Index (ASX: XJO) miner’s tailings dams have been soaking tens of thousands of tonnes of carbon out of the atmosphere each year.

And that could just be the tip of the carbon sink iceberg.

The findings were actually uncovered eight years ago by scientists working with Australian, Canadian and New Zealand universities.

As The Australian Financial Review reports, they discovered the sludge dam at BHP’s Mount Keith nickel mine in Western Australia was removing some 39,800 tonnes of carbon from the atmosphere annually. When the tailings, rich in magnesium, interact with the air, carbon gets locked into mineral crystals in the dam.

Somehow those findings remained largely unknown until more recently.

“It was just, almost unbelievable to me,” says BHP’s sustainability principal Samantha Langley, addressing the day she uncovered the research in 2019.

Scientists estimate that capturing carbon in this manner could store more than 1% of global emissions annually.

BHP shares could get a lift from mineral carbonation method

BHP shares could be in for some tailwinds should the miner receive credits for the carbon its tailings dams remove from the air.

BHP shareholders are now waiting on the Clean Energy Regulator’s decision on whether Australian Carbon Credit Units can be awarded for storing carbon in minerals.

At the moment, the miner still can’t count the carbon its dams are pulling from the atmosphere when calculating its total emissions footprint, and it’s not eligible for carbon credits, currently worth some $32 per tonne.

According to Langley (quoted by the AFR):

Before BHP or anyone else can register a mineral carbonation project for carbon offsets and be able to commercialise the opportunity, we need a mechanism and methodology for being able to account for the carbon storage and to verify the amount of carbon that’s been stored.

BHP is currently working with others in industry, policy experts, research teams, governments and voluntary carbon offset schemes as well to support the development of a new method.

A Clean Energy Regulator spokesman indicated BHP shareholders can expect that method to be finalised early next year:

The Clean Energy Regulator is currently developing a carbon capture, use and storage (CCUS) method. Mineral carbonation is currently being considered as a potential activity under the CCUS method. The CCUS method is due to be finalised by February 2023.

Far more carbon capture potential

BHP shares could be in for a bigger lift if the miner can optimise its tailings dams to suck more carbon from the air.

University studies suggest BHP’s Mount Keith nickel mine could soak up four million tonnes of carbon per year. That’s more than the combined emissions from its iron ore division and its Western Australia nickel division, the AFR notes.

While BHP is optimistic it can increase the carbon capture of its tailings dams, getting to those top levels is unlikely.

“The size of the prize is big,” Langley said. “We’re probably never going to get to the full four million tonnes. But we want to get close to there and we want to get as much as we can.”

How have BHP shares been tracking?

BHP shares are down 7% over the past 12 months. That compares to a full year loss of 11% posted by the ASX 200.

At the current share price, BHP pays an 11.7% trailing dividend yield, fully franked.

The post Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy appeared first on The Motley Fool Australia.

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More reading

• Here’s the BHP dividend forecast through to 2024
• Here’s why the BHP share price is in the red today
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
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• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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 Damstra Holdings Ltd (ASX: DTC) share price is edging higher today after the company announced a deal worth $900,000 with a Canadian-listed copper miner.

The workplace management solutions company said its subsidiary, Damstra Technology, had secured a three-year contract with Pinot Valley Mining Corp. Pinot Valley, which is in Arizona, is owned by Capstone Copper Corp (TSE: CS).

The Damstra share price is currently up 1.25% 8.1 cents.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% at the time of writing.

Strategic value helps Damstra share price

The contract with Capstone — which has its headquarters in Canada — is estimated to be worth at least circa US$615,000 ($892,000).

Capstone will implement Damstra’s Enterprise Protection Platform (EPP) through five modules — workforce and contractor management, security, health and safety, training, and compliance and incident management.

While the total value of the contract is not considered to be material, management pointed out the strategic importance of the win.

Worth more than the monetary value

In the first instance, the ASX tech minnow is pleased that it is replacing an international competitor. Management noted the deal “helps validate the competitiveness of Damstra’s EPP on an international scale”.

Secondly, there could be an opportunity for Damstra to roll out its solution across more mine sites operated by Capstone.

Damstra’s chief executive Christian Damstra said:

What is exciting about Capstone is that it helps validate our EPP product positioning and strategy where we can offer to clients one module or, as in the case of Capstone, five modules, under the EPP where all the modules work in an integrated fashion.

How is the Damstra share price performing?

The contract win comes as the Damstra share price has shed 90% of its value over the past year. The brutal sell-off in ASX tech shares has hit smaller-cap companies harder.

Rising interest rates have forced investors to dump growth shares, and small-cap ASX tech shares are a near-perfect descriptor of this category. This explains why three-quarters of ASX tech shares have fallen by 20% or more in the past year.

Only two others have performed worse than the Damstra share price in the last 12 months — the colorTV Ltd (ASX: CTV) share price and the 3D Metalforge Ltd (ASX: 3MF) share price. Both have shed around 92% of their value.

The post What’s boosting the Damstra share price today? appeared first on The Motley Fool Australia.

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More reading

• Why is the BWX share price halted on Friday?
• Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy
• Profit Off the Bear Market With Microsoft Stock
• Why is the Evolution share price tumbling 10% so far this week?
• Block share price jumps 9% following Cathie Wood investment

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

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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.

It’s official. Last week the S&P 500 joined the Nasdaq Composite and fell firmly into bear market territory, meaning it is more than 20% down from its recent high. For many investors, it’s unnerving to be in the midst of a collapsing market. It seems like every day there is doom and gloom and another “expert” with another hot take on why it’s down and when it will go back up.

What you need to know is that no one knows when the downturn will end. The best assurance we can offer is that it will end. When the bull returns, you need to be ready to take it by the horns. Long-term investors can use a bear market to their distinct advantage. After all, good investors don’t want to buy high and sell low, right?

Let’s look at the qualities you are likely to find in a down-trending stock that will help it rise again. Qualities like profits, cash flow, seasoned management, and growth opportunities all come to mind. Microsoft (NASDAQ: MSFT) has all of these in spades. 

Microsoft has seasoned management for turbulent times

Microsoft CEO Satya Nadella heads up a team that has done impressive work recently. We need only go back to March 2020 to see this leadership in action. With significant economic uncertainty, Microsoft posted record revenue and operating profits for shareholders. 

The company has built on these gains through the first three quarters of fiscal 2022 (Microsoft’s fiscal year ends in June). One of the biggest testaments to a well-run organization is its profitability. Microsoft is hugely profitable and continues to grow margins, as shown below. For comparison, Alphabet posted an operating margin of 31% in 2021 — a very successful year for the company. 

Microsoft’s management team has proven its mettle to navigate our current economic challenges.

Microsoft has its head in the clouds

Microsoft continues to dominate the software industry with its leading Office and Windows products, but its future resides in the cloud. Cloud infrastructure spending is exploding, and it is forecast to grow 20% this year, according to Gartner. Microsoft’s cloud infrastructure platform Azure is locked in a battle for supremacy with Amazon‘s AWS.

This sector is highly lucrative. Microsoft’s Azure and other cloud services segment grew an astounding 46% year over year in the last quarter to go along with the company’s server products and cloud services’ 29% growth. In total, the Intelligent Cloud revenue stream produced $54.3 billion of Microsoft’s $146.4 billion in sales through Q3 FY22. 

Another terrific quality of Microsoft is that the company never allows itself to become stagnant. Rather than be satisfied with recent results, the company announced the blockbuster acquisition of Activision Blizzard (NASDAQ: ATVI) for $69 billion earlier this year.

Activision will bring popular gaming franchises like Call of Duty, Candy Crush, and StarCraft. It will make Microsoft the third-largest gaming company by revenue if the deal receives regulatory approval. These impressive forays into cloud computing and gaming make Microsoft a leader in two more fast-growing fields.    

Microsoft is generating its cheapest valuation in years

Microsoft stock isn’t immune to the market swoon, even though its results remain stellar. The stock is down over 25% this year. This has brought the price-to-earnings (P/E) ratio down to its lowest level since the March 2020 crash and, before that, early 2019. Meanwhile, earnings continue to rise, as shown below.

MSFT PE Ratio data by YCharts

Investors can also pocket a small but growing dividend. The company’s dividend has increased annually since 2006 and is yielding around 1% at the moment. 

No stock is without risk as recession fears linger on the horizon, and Microsoft stock could continue to decline with the market. It’s unlikely to catch a stock at its lowest price; predicting this accurately is nearly impossible. An incremental buying strategy, like dollar-cost averaging, is an excellent way to mitigate short-term market risk. 

Microsoft has all the qualities investors look for in a long-term winner and is firing on all cylinders. The stock has rewarded long-term shareholders for years, which appears ready to continue once the bear goes back into hibernation. 

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

The post Profit Off the Bear Market With Microsoft Stock appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bradley Guichard has positions in Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia has recommended Activision Blizzard, Alphabet (A shares), Alphabet (C shares), and Amazon. 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 Evolution Mining Ltd (ASX: EVN) share price has tracked south this week, extending losses for the year to date.

At the time of writing, the Evolution share price is resting at $3.39 apiece on Friday.

In broad market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) trades 19 basis points lower at the open on Friday at 6,516.

What’s up with the Evolution share price?

Gold has weakened again with the yellow metal giving back recent gains to continue its sideways movement.

It has been volatile in recent times amid recession fears and shifting treasury yields. Prices haven’t nudged past the US$1,870 per ounce mark since 6 May.

It now trades at US$1,824 per troy ounce, around 69 basis points down on the session.

Zooming out, it now trades back in line with longer-term support levels. It has fallen from a 19 April high of US$2,052 per troy ounce, as seen below, along with the Evolution share price.

Aside from that, mining shares continue to soften on the whole with the S&P/ASX 300 Metals and Mining Index (ASX: XMM) sliding from its previous high on 8 June at rapid pace.

Investors have sold off cash flow rich mining stocks in tandem with moves in the wider market this month. Fears of a recession, inflation and surging rates continue to be priced in.

This weakness is certainly a factor in relation to the Evolution Mining share price as well.

The losses come despite reports of potential tailwinds to precious metals from stagflation. Data shows gold is a good diversifier and performs well in these times.

If that’s the case, it could bode in well for the Evolution share price.

In the last 12 months, Evolution has slipped more than 27% into the red, after sliding 16% this year to date.

The post Why is the Evolution share price tumbling 10% so far this week? appeared first on The Motley Fool Australia.

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More reading

• Stagflation and gold: Could it be an ideal match for ASX 200 gold miners?
• 5 things to watch on the ASX 200 on Thursday
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• 5 things to watch on the ASX 200 on Tuesday

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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The Block Inc (ASX: SQ2) share price has been among the best performers on the ASX 200 on Friday.

In morning trade, the payments company’s shares are up 9% to $96.66.

Why is the Block share price zooming higher?

Investors have been bidding the Block share price higher on Friday in response to a jump by the company’s US listed shares overnight.

On Wall Street, Block’s NYSE listed shares rebounded with an almost 11% gain to US$67.27. At current exchange rates, this equates to $97.50, which is just a touch ahead of where the locally listed Block share price trades today.

But why did its US shares jump?

The catalyst for this strong gain was news that Cathie Wood’s ARK Innovation fund has been topping up its holding.

Our friends over the Pacific report that Wood has spent a touch under US$5 million to acquire just over 82,000 Block shares.

Based on buying patterns, it appears as though Cathie Wood has been snapping up Block shares when they approach US$60 (A$87) and stopping once they reach US$80 (A$116).

One leading broker that would be supportive of this buying is Macquarie. At the end of last month, the broker put an outperform rating and A$180.00 price target on the company’s shares.

The post Block share price jumps 9% following Cathie Wood investment appeared first on The Motley Fool Australia.

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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 Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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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.

It’s a scary time to be a growth investor. With the Federal Reserve aggressively hiking interest rates and the stock market in a steady decline, it’s entirely rational to wonder whether it’s a good idea to keep buying shares of growth-phase businesses. 

And (spoiler alert) for some people, it might not be. Much depends on your risk tolerance and investment time frame. Let’s examine Teladoc Health (NYSE: TDOC) as an example to explore which category of investor you might fall into during the ongoing disruption in the market and the economy.  

The pro case: Why it makes sense to keep buying shares

Like many other growth stocks, Teladoc is down more than 88% over the last 12 months. This brutal decline might seem like the kind of result you’d expect from a company with shrinking revenue or severe and enduring headwinds, but neither is the case. Its quarterly revenue rose by around 25% over the last four quarters, and over the last three years, its quarterly sales increased by 334%. 

But while growth has somewhat slowed compared to prior years, it’s hardly a foregone conclusion that it will slow further or start contracting. Teladoc is expanding its telehealth offerings to include chronic care management and mental healthcare, both of which are anticipated to be lucrative areas as more wellness services offer telemedicine. And there’s no single telehealth provider that’s as big or as well-known, another advantage that might become more relevant over time. 

Let’s say that you’re a relatively young investor with a high tolerance for risk and a need for aggressive stocks to deliver big growth in your portfolio. The fact that Teladoc’s shares have been eating dirt recently shouldn’t really influence your decision as the decline isn’t associated with any detrimental changes to its competitive advantage in the market. The stock’s poor performance is also not the result of consumers eschewing telehealth as a category of services. 

Though it’s true that the Federal Reserve’s policy of hiking interest rates will make it a bit more expensive for Teladoc to borrow money moving forward, the same is true for most growth stocks that might need to take out a loan. And as much as inflation and supply chain issues might be striking the economy, Teladoc’s most critical inputs are skilled labor from its telemedicine physicians, who don’t need specific supplies to continue to add value, and whose services are already on the expensive side.  

In other words, the stock market’s present headwinds aren’t going to stop Teladoc from continuing to do what it’s best at in the long run. So if you’re willing to accept a bit of turbulence in the short term, the main investing thesis for Teladoc is still sound, and you should keep buying shares.

Furthermore, there’s a very high chance that quite a few other growth stocks that are currently in the dumpster still have a similar combination of financial health and enduring competitive ability. If the company’s prospects haven’t significantly dimmed, the recent downward price movements might just be noise or fallout from the wider market — not a reason to avoid investing. 

The con case: Why it might be better to wait or invest in something safer

Buying shares of a formerly high-flying growth stock like Teladoc is easy to do if you know you won’t need the money anytime soon, or possibly ever. On the other hand, if you’re an investor who needs to skew more conservatively because of a looming financial goal like retirement or financial independence, the picture is a bit different.

While unlikely, it’s entirely possible that Teladoc’s shares will drop by another 88% over the next couple of years, even if its competitive abilities only become stronger. And an investment in a beaten-down growth stock that might take five or six years to recover simply won’t do if you need the money before then.

Additionally, rapidly expanding businesses in new industries like telehealth will frequently face competition from new entrants to the market, who may ultimately eat their lunch. For a company like Teladoc that’s presently unprofitable, the arrival of new competitors could make the march toward profits even longer and more difficult. The same might be true of other hot sectors.

Finally, if your portfolio needs less exposure to risk for any other reason, it’s probably not a smart idea to invest in Teladoc or other highly hyped growth stocks. Even if the long-term future of the company and the market both look bright, by most accounts we’re in for a bit more turbulence before things settle down. 

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

The post Should you buy growth stocks right now? appeared first on The Motley Fool Australia.

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• Vulcan share price rockets 25% on Stellantis deal
• Down 15% in 2022, is it time to jump on Vanguard Australian Shares Index ETF?

Alex Carchidi 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 Teladoc Health. 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.

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

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The Betmakers Technology Group Ltd (ASX: BET) share price is launching higher on Friday after the company announced it’s planning to buy back up to 10% of its stock.

The buyback is expected to see the betting technology company scanning the market for stock to snap up from mid-July.

At the time of writing, the Betmakers share price is 36.5 cents, 21.67% higher than its previous close.

Let’s take a closer look a today’s news from the All Ordinaries Index (ASX: XAO) constituent.

Betmakers share price surges on buyback

The Betmakers share price is off to an impressive start on Friday after the company’s CEO announced a run of deals has left it in a prime position to begin an on-market buyback.

The buyback will use cash from the company’s existing reserves and is expected to run until this time next year.

CEO Todd Buckingham commented on the news driving the Betmakers share price today, saying:

As a business we have signed and announced deals that we believe will give the company strong organic growth in [financial year 2023] and we expect this momentum to continue.

Betmakers is in a strong financial position with our improving cash flow and with current market dynamics providing us with an opportunity to maximise shareholder value via a buyback.

The buyback aims to snap up close to 903.5 million Betmakers shares. Such a parcel was worth approximately $271 million as of Thursday’s close.

Today’s news is just the latest in a series of exciting updates from the company in 2022.

It has announced new and extended contracts with major horse racing entities in Norway and the United States.

Additionally, it signed a deal to provide betting solutions to a new Australian and New Zealand wagering venture.

Sadly, the wave of seemingly exciting news hasn’t been enough to save the company’s stock.

The Betmakers share price has tumbled 56% since the start of 2022. It is also currently 70% lower than it was this time last year.

The post Here’s why the Betmakers share price is rocketing 22% on Friday appeared first on The Motley Fool Australia.

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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 positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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The Vulcan Energy Resources Ltd (ASX: VUL) share price has flown out of the gates on Friday morning.

At the time of writing, the lithium developer’s shares are up 25% to $6.21.

Why the Vulcan share price rocketing higher?

Investors have been fighting to get hold of the company’s shares this morning after it announced a major investment from a top tier automaker.

According to the release, Stellantis, the company behind car brands including Chrysler, Citroën, Fiat, Maserati, and Peugeot, has invested A$76 million into Vulcan.

While this news is positive enough, it gets better. Stellantis is paying over the odds to become Vulcan’s second largest shareholder. The two parties agreed a price of $6.622 per share, which represents a 32% premium to the Vulcan share price at yesterday’s close.

In addition, Stellantis has extended its binding lithium hydroxide offtake agreement by five years to 2035. Starting in 2026, the automaker will be purchasing a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over a duration of 10 years.

The release reveals that the proceeds from this investment will go towards Vulcan’s planned production expansion drilling in its Upper Rhine Valley Brine Field (URVBF).

‘A strong statement’

Vulcan’s Managing Director, Dr Francis Wedin, believes this is a “strong statement” regarding the sourcing of sustainable battery materials. He commented:

Stellantis’ significant investment in Vulcan and the Zero Carbon Lithium Project represents a strong statement by one of the world’s largest automakers regarding sustainable and strategic sourcing of battery materials.

We are fully aligned with Stellantis’ decarbonisation and electrification goals, which represent some of the most ambitious in the industry. It is encouraging to see a leading automaker investing in local, decarbonised lithium production for electric vehicles. As our largest offtaker, we look forward to deepening our relationship with Stellantis as a substantial shareholder in Vulcan and our Zero Carbon Lithium business.

Stellantis’ CEO, Carlos Tavares, added:

Making this highly strategic investment in a leading lithium company will help us create a resilient and sustainable value chain for our European electric vehicle battery production. We continue our quest of forming strong relationships with partners who share our values as we collectively fight against global warming and provide clean, safe and affordable mobility to our customers.

The post Vulcan share price rockets 25% on Stellantis deal appeared first on The Motley Fool Australia.

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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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The Vanguard Australian Shares Index ETF (ASX: VAS) has suffered in 2022, just like many other investments.

However, compared to some individual ASX shares and sectors, this exchange-traded fund has fared better with a decline of just 15%. The Xero Limited (ASX: XRO) share price is down 48% and the Vanguard US Total Market Shares Index ETF (ASX: VTS) is down by 19%, as two examples.

The performance of its underlying holdings dictates the performance of an ETF.

For the Vanguard Australian Shares Index ETF, it means names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Limited (ASX: CSL) have the biggest influence.

The VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO), meaning the overall ASX 300 group of shares has fallen by 15%.

Is it time to look at the Vanguard Australian Shares Index ETF?

The fall in the VAS price means investors with a regular investment plan for this ETF can dollar-cost average at a lower price.

The VAS ETF also has a few attractive features, such as its low management fee of just 0.10%. That’s one of the lowest fees for an investment portfolio focused on ASX shares. Low fees are good because it means more of the investment returns are left in the hands of investors.

Another attractive element is its relatively high dividend yield for an ETF.

Many of the biggest positions in the ETF’s portfolio have quite high dividend yields, such as BHP, CBA, Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO).

These high dividend-paying shares significantly influence the dividend yield of the overall Vanguard Australian Shares Index ETF.

According to Vanguard, the dividend yield of the VAS ETF, excluding franking credits, is 4.1%.

Would I invest in this ETF?

I do like to invest in assets at lower prices, so the current price of this ETF seems better.

However, I personally don’t invest in the Vanguard Australian Shares Index ETF or index funds in general. I’d only want to buy it for my portfolio if there was a painful sell-off for the banks and the large ASX mining shares, as these two areas make up a significant part of the ETF’s holdings.

In my opinion, other ETFs have been sold off more heavily that could make better long-term buys because of the underlying quality, global nature (and therefore bigger addressable market), and higher tech focus. One idea is Betashares Nasdaq 100 ETF (ASX: NDQ), which I recently covered.

The post Down 15% in 2022, is it time to jump on Vanguard Australian Shares Index ETF? appeared first on The Motley Fool Australia.

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More reading

• Is VAS a better investment than an ASX dividend ETF?
• VAS is a unique ETF on the ASX. Here’s why

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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 and Xero. 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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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.

What happened

As is often the case, there was no shortage of news and coverage on electric vehicle leader Tesla (NASDAQ: TSLA) Thursday. That news had Tesla stock moving higher by as much as 1.4% early in the session, but the trend subsequently reversed, sending it down by nearly 3% relative to where it closed Wednesday. As of 11:46 a.m. ET, it was virtually flat. 

So what

That initial jump could have stemmed from investors digging more deeply into a Reuters article published Wednesday that reported that Tesla will be suspending production at its Shanghai factory for two weeks at the beginning of July. The headline may have had investors turning negative about Tesla’s near-term outlook, but the maintenance work scheduled for the plant is expected to increase its productivity. That should result in record production levels to come by the end of July, according to the report. 

Another bit of news that drew a negative response from investors was the release of a May 30 interview with CEO Elon Musk in which he said Tesla’s new factories in Berlin and Texas were both burning through cash and losing billions due to supply chain-related delays. Musk colorfully called the plants “gigantic money furnaces.” 

Musk said supply chain disruptions have been interfering with the company’s ability to ramp production up at the two new facilities. According to CNBC, he summarized the situation by saying, “there’s a ton of expense and hardly any output.”  He added that getting those new plants and the Shanghai factory running smoothly is “overwhelmingly” his top priority. 

Now what

But while that interview was just released Wednesday, the comments were made several weeks ago. In the interim, the automaker has announced cost-savings measures and a plan to reduce salaried employee headcount, and Musk said that he expected to resolve the company’s current challenges. Tesla hasn’t changed its guidance target for producing 1.5 million vehicles this year, and investors looking past the headlines probably helped the stock bounce back from its initial drop on Thursday. 

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

The post Here’s what moved Tesla shares today appeared first on The Motley Fool Australia.

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More reading

• Why Tesla shares popped then dropped today
• Why Tesla stock soared today
• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away
• Why Tesla stock sold off 7% today

Howard Smith 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 Tesla. 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.

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

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