Tag: Motley Fool

  • Why is the St Barbara share price crashing 14% to a multi-year low?

    A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today

    A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall todayThe St Barbara Ltd (ASX: SBM) share price has come under significant pressure on Wednesday.

    In morning trade, the gold miner’s shares have tumbled 14% to a multi-year low of 97.5 cents.

    Why is the St Barbara share price sinking?

    Investors have been selling down the St Barbara share price on Wednesday following the release of an announcement.

    According to the release, the company has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review.

    The release notes that St Barbara faces capital investments at each of its three operations in the next two years. This strategic review will assess the best allocation of capital for risk and return compared with the company’s other projects.

    St Barbara also revealed that it has received unsolicited enquiries from potential investors in Simberi and anticipates the Sulphide expansion project to proceed either under St Barbara or different ownership.

    Trouble at Atlantic Gold

    St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation. This is due to potential permitting delays for its tailings management facility after authorities sought further clarification on aspects of the in-pit tailings deposition application.

    The company has made an application to raise the existing tailings management facility wall as an interim solution while the in-pit deposition matter is progressed to conclusion.

    However, should the application not be successful, St Barbara will be forced to suspend the operation and place it in care and maintenance mode.

    Finally, St Barbara revealed that it will undertake a re-design of its operating model, including for the provision of corporate support. This will result in a rationalisation of the corporate workforce including a consolidation of the company’s two corporate offices into one.

    The St Barbara share price is now down over 30% in 2022.

    The post Why is the St Barbara share price crashing 14% to a multi-year low? 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 January 12th 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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  • This ASX coal share is flying higher today after CEO speaks his mind

    a coal miner in hard hat with a light on it kisses a large lump of coal that he is holding in his hand.

    a coal miner in hard hat with a light on it kisses a large lump of coal that he is holding in his hand.ASX coal shares have, as a whole, been riding high on the back of record thermal and coking coal prices.

    Coal prices were already high by historic standards heading into 2022. This came as supplies were unable to match soaring demand, following years of limited investment in exploration and new project development.

    Russia’s invasion of Ukraine and the resulting sanctions on energy rich Russia put further upward pressure on energy prices, seeing coal trade at all-time highs.

    As you’d expect, that’s been a welcome tailwind for ASX coal shares.

    How have ASX coal shares been tracking?

    While the All Ordinaries Index (ASX: XAO) is down 15% in 2022, New Hope Corp Ltd (ASX: NHC) shares have gained 43% while the Whitehaven Coal Ltd (ASX: WHC) share price is up 74%.

    As for ASX coal share Stanmore Resources Ltd (ASX: SMR), it’s up a whopping 103% year-to-date, spurred by a 10% intraday gain today.

    That gain comes after Stanmore Resources CEO Marcelo Matos expressed his displeasure at the new coal royalty tax increases announced by the Queensland government.

    Stanmore share price flying higher after CEO speaks his mind

    After amending the coal royalty regime as part of Queensland’s 2022-23 budget, Stanmore noted that coal producers in the state will be paying the highest royalties in the world.

    For prices less than $175 per tonne, royalties will remain unchanged.

    For higher prices, the following three new royalty tiers were introduced:

    • 20% for prices above $175 per tonne
    • 30% for prices above $225 per tonne
    • 40% for prices above $300 per tonne

    Matos was less than pleased.

    According to Matos:

    Stanmore is very disappointed with these extraordinary tax increases given its commitments to the Isaac Downs Project and re-opening of the Millennium and Mavis mines, as well as the very recent and significant US$1.2 billion investment in the Queensland coal sector with the acquisition of our 80% in BMC.

    Royalty rates in Queensland were already among the highest in the world prior to these increases and come at a time when the Queensland coal industry was just recovering from the losses experienced during the market downturn in 2020 and 2021.

    The increases to the royalty rates without formal notice or consultation with the industry are unprecedented. The impact of these increases will be felt the most by workers and suppliers in regional Queensland communities that underpin the resources sector and make it Queensland’s largest export industry.

    If ASX coal shares need to pay more money into government coffers, investors may well feel the pinch in the form of lower dividend payouts down the road.

    The post This ASX coal share is flying higher today after CEO speaks his mind 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 January 12th 2022

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    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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  • Woodside share price lifts despite $17b ‘climate bomb’ court action

    Workers inspecting a gas pipeline.Workers inspecting a gas pipeline.

    The Woodside Energy Group Ltd (ASX: WDS) share price is in the green on Wednesday. It comes after the company’s CEO vowed to “vigorously defend” legal action aiming to halt its $17 billion Scarborough Project.

    An environmental group has applied for an injunction in the Federal Court. It’s calling for Scarborough’s offshore development off the Western Australian coast to be halted until the impact on the Great Barrier Reef is assessed.

    At the time of writing, the Woodside share price is $32.11, 2.39% higher than its previous close.

    For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.2% this morning. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 2.69%.

    Woodside faces fresh court action

    The Scarborough Project – previously touted as one of the lowest carbon-intensive gas sources for customers in north Asia – is facing a fresh legal challenge.

    The Australian Conservation Foundation (ACF) is taking Woodside to the Federal Court. The environmental group plans to argue emissions from the project are likely to have a major impact on the Great Barrier Reef.

    If the action is successful, the project would be forced to seek approval under Australia’s environmental protection laws.

    So far, the project has been exempt from such laws, the ACF says. It has instead been assessed by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

    Woodside CEO Meg O’Neill said the project is already underway, having passed “rigorous” regulatory assessments and received primary environmental approvals.

    “The project will deliver significant local and national benefits in the form of employment, tax revenue, and reliable gas supply in the energy transition,” O’Neill said.

    But that doesn’t concern ACF CEO Kelly O’Shanassy, who labelled Scarborough’s future output “a climate bomb about to be detonated”. O’Shanassy continued:

    [The project] would result in annual climate pollution equal to more than the annual pollution from 15 coal fired power stations and release 1.37 billion tonnes of carbon over the next 25 years.

    We must not fall for the accounting trick that suggests these emissions won’t affect reefs in Australia simply because the gas will mostly be burned overseas. The reef is not concerned with the source of the greenhouse gases that damage it.

    Lawyers representing ACF claim the case marks the first time the Federal Court has been asked to consider objective scientific evidence about the greenhouse gas impacts of an offshore gas project.

    “If successful, the case will be highly influential in establishing that all new fossil fuel projects must be assessed for the climate damage they would cause,” O’Shanassy said

    Woodside share price snapshot

    The latest court action to face Woodside’s major project hasn’t been enough to dint its share price’s strong recent performance.

    The stock is currently 46% higher than it was at the start of 2022. It has also gained 37% since this time last year.

    The post Woodside share price lifts despite $17b ‘climate bomb’ court action 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 January 12th 2022

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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 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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  • Iluka share price lifts off on rare earths refinery progress

    Female South32 miner smiling with mining machinery in the background.

    Female South32 miner smiling with mining machinery in the background.

    The Iluka Resources Ltd (ASX: ILU) share price is marching higher in morning trade, up 1.69%.

    Iluka shares closed yesterday at $8.89 and are currently trading for $9.04.

    Below, we look at the latest progress reported by the S&P/ASX 200 Index (ASX: XJO) rare earths miner.

    What progress was reported that’s lifting the Iluka share price?

    The Iluka share price is gaining after the company announced further progress with the development of its Eneabba rare earths refinery in Western Australia.

    Iluka reported that Fluor Australia has been awarded the contract to complete the Front End Engineering Design (FEED) and undertake Engineering, Procurement and Construction Management (EPCM) services for the refinery.

    The company called the contract award “an important step in the delivery of the refinery and [its] rare earths diversification”. It said Fluor’s 100 plus years of experience in engineering, procurement and construction services will help ensure the successful execution of this “globally significant development”.

    The final investment decision for the Eneabba refinery was announced on 4 April, and the Iluka share price gained on that news.

    Iluka is funding the development under a risk sharing arrangement with the Australian Government.

    The fully integrated refinery will produce light and heavy separated rare earth oxides. It will be able to process feedstocks from Iluka’s own portfolio and from third party suppliers. This includes both mineral sands and rare earths deposits.

    Construction is slated to start later in 2022. The first rare earths production is expected in 2025.

    What are rare earth elements?

    Depending on how you define them, there are either 15 or 17 different rare earth elements.

    Despite the name, they’re actually quite abundant. What makes them rare is that they tend to be found in very limited concentrations. Meaning miners need to dig up and sort through a lot of dirt to get to the valuable stuff.

    You’ll find rare earths in most modern technologies. That includes powerful magnets used in wind turbines and electric motors. They also form crucial components of your computer and smartphone. And governments are keen to secure supplies for their use in aircraft and high-tech military applications.

    Iluka share price snapshot

    The Iluka share price has struggled this year, down 11% so far in 2022. That compares to a 12% year-to-date loss posted by the ASX 200.

    The post Iluka share price lifts off on rare earths refinery progress appeared first on The Motley Fool Australia.

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

    Before you consider Iluka Resources 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 Iluka Resources 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 January 13th 2022

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    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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  • Why is the Fisher & Paykel share price heading south today?

    a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.

    The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is sliding in early trade today.

    At the time of writing, the medical device company’s shares are down 1.64% to $17.43.

    On the other hand, the S&P/ASX 200 Index (ASX: XJO) is edging higher. The benchmark ASX 200 Index is currently up 0.13% to 6,532 points.

    Let’s check what’s going on with the New Zealand-based company.

    Shareholders secure the Fisher & Paykel Healthcare final dividend

    With the company’s full-year earning seasons wrapped up, Fisher & Paykel Healthcare shares are trading ex-dividend today.

    This comes after the company released its FY22 results on 25 May, reporting mixed numbers across key financial metrics.

    Nonetheless, the board opted to slightly increase its final dividend by 2% over the prior corresponding period.

    This brings the company’s full-year dividend to 39.5 cents, an improvement of 4% from FY21.

    Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor didn’t buy Fisher & Paykel Healthcare shares before this date, the dividend will go to the seller.

    When can shareholders expect to be paid?

    For those eligible for Fisher & Paykel Healthcare’s final dividend, shareholders will receive a payment of NZ$0.22.5 cents (A$0.2046) per share on 6 July. The dividend is unfranked which means investors won’t get any tax credits from this.

    Under the company’s capital management framework, management’s priority is to appropriately invest in the business to support long-term sustainable growth.

    The company has a “target debt to debt plus equity ratio in the range of +5% to -5%”. This also takes into account future business performance and cash requirements to run its operations.

    In addition, Fisher & Paykel Healthcare has a trailing dividend yield of 2.2%.

    Fisher & Paykel Healthcare share price snapshot

    Since the beginning of 2022, the Fisher & Paykel Healthcare share price has tumbled more than 40%.

    Notably, the company’s shares reached a 52-week low of $17.14 last week on the back of weakened sentiment.

    Based on today’s price, Fisher & Paykel Healthcare presides a market capitalisation of approximately $10 billion.

    The post Why is the Fisher & Paykel share price heading south today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Fisher & Paykel Healthcare Corp Ltd right now?

    Before you consider Fisher & Paykel Healthcare Corp 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 Fisher & Paykel Healthcare Corp 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 January 13th 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 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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  • Down 18% in a month, is the Piedmont Lithium share price a buy?

    An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement todayAn analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today

    The Piedmont Lithium Inc (ASX: PLL) share price has slipped 18% lower in the past month of trade.

    The loss reverses a strong period in May for the share. Investors thrust it off a low point of 65 cents on 12 May before finishing the month at 93.5 cents.

    Before the open on Wednesday, the Piedmont Lithium share price is set to fetch 69.5 cents apiece.

    Is Piedmont a buy?

    The price of lithium carbonate has remained buoyant in June. It currently fetches US$71,380 per tonne after curling back up in recent weeks.

    Amid the market volatility, lithium shares have been hit some of the hardest. Following a bearish note from Goldman Sachs on the sector, investors sold off lithium stocks at pace.

    Despite this, Piedmont still has buy ratings from 9 brokers in May, including JP Morgan and Canaccord Genuity, per Bloomberg data.

    With respect to Piedmont’s US listing (NASDAQ: PLL), JP Morgan values the share at a premium US$92 apiece. It currently trades at US$49.10.

    Regarding Piedmont, it said:

    PLL is a pre-production lithium company that is working to develop four key projects – Carolina Lithium, Abitibi Hub, Atlantic Lithium, and a 2nd Hydroxide Plant – that we think should all see positive developments this year.

    Once these projects are completed, PLL should be a low cost producer of both spodumene (preferred feedstock for lithium hydroxide) and lithium hydroxide (required for long-range EV batteries).

    Piedmont’s advantageous sustainability footprint, location, and ability to expand production over time should make it a very attractive partner for companies within the EV supplychain and support Piedmont as it looks to secure the additional funds needed to complete its project.

    What the broker hasn’t mentioned, however, is the current systematic risks that keep being priced in by the market.

    Piedmont is also set to produce lithium in the first half of 2023. There’s no certainty on what prices will be by then.

    In the last 12 months, the Piedmont share price has slipped more than 22% into the red.

    The post Down 18% in a month, is the Piedmont Lithium share price a buy? 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 January 12th 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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  • Why has the Allkem share price tumbled 30% from its May all-time high?

    Young boy wearing a red hard hat frowning with his hands on his head.Young boy wearing a red hard hat frowning with his hands on his head.

    The Allkem Ltd (ASX: AKE) share price has been under severe selling pressure since the end of May.

    After reaching an all-time high of $14.38 on 30 May, the lithium mining company’s shares are now fetching $10.15. This represents a fall of almost 30% in just three weeks.

    Let’s take a look at what has happened recently with Allkem.

    Allkem shares momentarily power off

    Despite the company releasing a positive update earlier this month, investors have continued to offload Allkem shares.

    On 6 June, the company announced strong conditions in the battery metals market, leading to increased lithium carbonate and spodumene concentrate prices.

    However, negative sentiment across the industry brought on by a weakened near-term outlook for lithium has weighed down the Allkem share price.

    For context, shares in peers Lake Resources N.L. (ASX: LKE) and Core Lithium Ltd (ASX: CXO) have also declined. They are down 39% and 17% in the past week, respectively.

    This follows the release of Goldman Sachs’ bearish analysis on the lithium sector which saw investors head for the exits.

    The broker noted that fundamental mispricing has generated an outsized supply response well ahead of demand.

    Because of this, Goldman Sachs forecasts a lithium price correction to as low as US$16,000 per tonne in 2023.

    Currently, the going rate for lithium carbonate per tonne is around US$71,400.

    When the report came out on 1 June, Allkem shares tanked 15% on the day.

    And since then, its shares have recorded just four days in the green out of the last 14 trading days.

    While the industry pushed back after Goldman Sachs’ report, no one knows exactly where the price of lithium will be next year.

    Allkem share price snapshot

    Despite coming off a horrid run, the Allkem share price has surged by 70% over the past 12 months.

    However, looking at year to date, the company’s shares are relatively flat for the period, down around 2%.

    Allkem commands a market capitalisation of approximately $6.25 billion.

    The post Why has the Allkem share price tumbled 30% from its May all-time high? appeared first on The Motley Fool Australia.

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

    Before you consider Allkem 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 Allkem 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 January 13th 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 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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  • How big will the South32 dividend be in 2023?

    A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall

    A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfallIf you’re looking for big dividends, then South32 Ltd (ASX: S32) shares could be worth a closer look.

    It has been tipped to reward its shareholders with some big dividends in the coming years.

    What are analysts saying about South32 and its dividend?

    According to a recent note out of Citi, its analysts are very bullish on South32 shares.

    In response to the company’s strategy update at the end of last month, the broker has put a buy rating and $5.50 price target on its shares.

    Based on the current South32 share price of $4.16, this implies potential upside of 32% for investors over the next 12 months.

    But it gets even better. Citi is forecasting a fully franked 38 cents per share dividend in FY 2022 and a fully franked 40 cents per share dividend in FY 2023.

    This implies huge yields of 9.1% in FY 2022 and 9.6% in FY 2023 for income investors.

    What did the broker say?

    Citi believes that the South32 share price is trading at a very attractive level compared to peers and highlights its exposure to in-demand metals.

    The broker commented:

    S32 held a strategy update today and there was little to change baseline forecasts save for higher FY23/24 capex. Costs pressures are evident – but are industry not company specific. S32 has production growth, trades at a discount to DCF and on low valuation multiples. What’s not to like compared to peers. While China near term commodity demand is a concern, the midterm outlook for key S32 metals is robust enough.

    All in all, this could make South32 one to consider if you’re on the lookout for big dividends.

    The post How big will the South32 dividend be in 2023? 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 January 12th 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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  • The Adairs share price is down 54% in 2022. What’s happened?

    Man's legs poking out of a brown sofa while his body is sinking down into the back of it, dog looking onMan's legs poking out of a brown sofa while his body is sinking down into the back of it, dog looking on

    The Adairs Ltd (ASX: ADH) share price has fallen on hard times this year.

    Despite finishing 3.64% higher to $1.85 yesterday, the homewares and furniture retailer’ shares are down 54.32% in 2022.

    Down, but not quite as low, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is also in the red this year by 25.54%.

    Let’s take a look at what’s impacted Adairs shares lately.

    What’s driving Adairs shares lower these past few months?

    The Adairs share price has continued to head south following weakened investor confidence on the ASX.

    With inflation levels spiking to 5.1% in the quarter ending 31 March, the Reserve Bank of Australia (RBA) tightened its monetary policy.

    This saw the central bank use its toolkit to cool down the hot inflation by raising interest rates.

    The monthly household spending report for April indicated an uptick in buying furnishings and household equipment, up 14.9%. However, with May’s report set to be released on 12 July, this could show a drop-off in consumer spending.

    This follows the RBA’s decision to aggressively ramp up the official cash rate by 0.5% this month to 0.85%.

    Furthermore, the RBA governor, Philip Lowe, warned that more rate hikes in 2022 will impact the cost of living.

    A number of economists expect the cash rate to lift to 2.35% by the end of the calendar year.

    In Adairs’ first-half result, there was a drop-off across key metrics compared to the prior corresponding period.

    Earnings before interest and tax (EBIT) and net profit after tax (NPAT) took a significant hit brought on by COVID-related operational disruptions.

    However, with the COVID-19 era almost behind us, the headwinds outlined above could weigh down the company’s current financial performance.

    Adairs share price snapshot

    A disappointing 12 months has led the Adairs share price to register a loss of almost 60%.

    It’s worth noting that its shares reached a 52-week low of $1.65 last week, before recovering some lost ground.

    Based on valuation metrics, Adairs commands a market capitalisation of approximately $305.8 million.

    The post The Adairs share price is down 54% in 2022. What’s happened? 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 January 12th 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 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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  • 2 ASX dividend shares that brokers are tipping as buys right now

    It's raining cash for this man, as he throws money into the air with a big smile on his face.

    It's raining cash for this man, as he throws money into the air with a big smile on his face.

    If you’re an income investor in search of dividend shares to buy to combat rising inflation, then you may want to look at the ones listed below.

    Analysts are very positive on these dividend shares and are forecasting attractive yields from them in the coming years. Here’s what you need to know:

    Baby Bunting Group Ltd (ASX: BBN)

    The first ASX dividend share to consider is leading baby products retailer, Baby Bunting.

    Thanks to its leadership position in a less discretionary category which benefits from around 300,000 births a year, Baby Bunting has been tipped to continue growing at a solid rate over the coming years.

    Citi is particularly bullish on Baby Bunting and currently has a buy rating and $6.22 price target on its shares.

    The broker commented: “[W]e forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

    As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.17, this will mean yields of 3.8% and 4.5%, respectively.

    Telstra Corporation Ltd (ASX: TLS)

    Another top ASX dividend share to consider is Telstra. It is of course Australia’s largest telecommunications company.

    Telstra could be a great option in the current environment given its defensive qualities and attractive yield. In addition, Telstra’s outlook is now arguably the most positive it has been in over a decade. This is thanks to the success of its T22 strategy which ends this year and the potential of its upcoming T25 strategy.

    Management is very confident in its plans and expects the T25 strategy to deliver solid and sustainable growth in the coming years. This could bode well for Telstra’s dividends.

    For now, though, the team at Ord Minnett is expecting fully franked 16 cents per share dividends again in FY 2022 and FY 2023. Based on the current Telstra share price of $3.82, this will mean yields of 4.2%.

    In addition, Ord Minnett sees a lot of value in its shares at the current level. Earlier this week it reiterated its buy rating with a $4.65 price target.

    The post 2 ASX dividend shares that brokers are tipping as buys right now appeared first on The Motley Fool Australia.

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

    Before you consider Baby Bunting 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 Baby Bunting 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 January 13th 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    from The Motley Fool Australia https://www.fool.com.au/2022/06/22/2-asx-dividend-shares-that-brokers-are-tipping-as-buys-right-now-2/