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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.

The stock market’s recent rout has distracted investors from taking note of some of the big cultural and technological megatrends. But those trends are still underway, translating into opportunities for investors who can look past all the noise.

One compelling megatrend to plug into is the metaverse. It’s a market that Bloomberg Intelligence estimates will grow at an average annual pace of 13% through 2024, when it will be worth nearly $800 billion.

Let’s take a closer look at three beaten-down names with at least a small stake in the metaverse arena. These small stakes, of course, can evolve into major profit centers as the metaverse market matures.

1. Nvidia

You most likely know Nvidia (NASDAQ: NVDA) as a maker of graphics processors used to connect a computer to a computer screen. The same tech also powers a bunch of artificial intelligence initiatives. But the metaverse? What can this company do to help build the world’s virtual meeting places?

It’s actually a pretty intuitive fit. A functioning virtual world doesn’t just require a network of computers — the metaverse is first and foremost a visual connection among metaverse users. To be effective, this world must be able to instantaneously deliver computer-based imagery to a set of goggles worn by a user. Nvidia’s graphics card expertise is perfectly suited for the task.

In fact, it already has a program for it. It’s called Omniverse. Introduced in late 2020 and well supported with additional tools aimed at engineers released in the meantime, the company calls Omniverse an “easily extensible platform for 3D design collaboration and scalable multi-GPU, real-time, true-to-reality simulation.”

In other words, if you want to build virtual world, you can use Omniverse to do it.

Omniverse is meant to be more collaborative than fun, and work more as a training and/or prototyping tool. Its earliest adopters being companies looking to design a virtual product or process rather than risk valuable resources only to end up with a not-quite-right outcome. There’s nothing to say, however, the tech can’t be expanded on and serve more entertainment-oriented uses.

It’s a minimal part of Nvidia’s revenue mix right now — so small the company doesn’t even break the numbers out, instead lumping it into its data center results. In this light, Nvidia doesn’t fully qualify as a metaverse stock. 

That’s changing pretty quickly though. In January, Nvidia announced Meta Platforms (NASDAQ: META) — the company formerly known as Facebook as well as the company arguably leading the metaverse charge — is buying 16,000 Nvidia-made A100 processors designed from the ground up to handle artificial intelligence workloads. Much of Meta’s intended workload will be building its own metaverse platform, underscoring the idea that Nvidia is becoming a serious metaverse name. In the meantime, reliable revenue from all of its other established businesses like data centers, video gaming, and professional visualizations means the company’s metaverse efforts don’t have to be rushed. It’s these other businesses, in fact, that are apt to help Nvidia shares reverse their current downtrend sooner than later.

2. Microsoft

Nvidia isn’t the only metaverse stock on the defensive here. Microsoft‘s (NASDAQ: MSFT) stock price is down 27% year to date, ushered lower by the broad market’s bearish tide. Once investors realize this company’s sales are still expected to grow 18% this year and 14% next year (because the world’s not ready to give up its computers or the software they run), however, the pullback could be mentally reframed as a buying opportunity. 

Microsoft’s entry into the metaverse race is similar to Nvidia’s, although not identical. Whereas Nvidia’s Omniverse is largely a developmental platform, Microsoft Mesh is a turn-key product meant to let users of Microsoft Teams meet with one another virtually. Mesh can help co-workers collaborate on product design, but the company says its chief goal is facilitating “eye contact, facial expressions, and gestures so your personality shines.” The company is building the user tech needed to make the most of Mesh as well. Its HoloLens is a pair of augmented reality glasses rather than full-blown immersive goggles, meant to help team members simultaneously see and discuss manufacturing, engineering, and even healthcare matters. 

Mesh and HoloLens are currently aimed at businesses rather than individual consumers, although it’s not inconceivable this underlying tech could eventually make its way into consumers’ hands so as to expand its use case. Microsoft’s newer Xbox gaming consoles are already capable of delivering a virtual reality experience with third-party VR goggles. Connecting the two different platforms into a metaverse-minded offering would be a relatively short leap.

Like Nvidia, Microsoft’s current metaverse revenue is so modest that it’s not even detailed within its quarterly reports. Also like Nvidia, however, that’s not necessarily a bad thing. The company’s software and cloud computing profits are poised to spark a rebound rally well before Microsoft’s metaverse initiatives start to bear meaningful fruit.

3. Matterport

Finally, add Matterport (NASDAQ: MTTR) to your list of metaverse stocks primed for a bull run after a sizable setback.

Matterport isn’t a household name. Indeed, with a market cap of only around $1 billion, it’s likely many consumers haven’t even heard of it. Of the three names in focus here, however, it’s by far the purest metaverse play.

In simplest terms, Matterport makes 3D cameras and related equipment, including the software and online storage needed to get the most out of its hardware. Its strong suit is turning real indoor spaces into digital rooms that can be virtually, remotely explored. That’s why the real estate industry has wholeheartedly embraced the technology — would-be homebuyers can look at a home without actually being there. The potential uses of its solutions, however, are almost limitless. Retailers, insurers, and even architects and engineers are finding that its know-how can make tasks much easier to complete remotely.

While it’s one of the few pure metaverse plays out there, know that it’s also a riskier prospect than Microsoft or Nvidia. Namely, Matterport is still unprofitable. It’s improving in this regard: Revenue is expected to grow by 15% this year before accelerating to the tune of 41%, which should improve this year’s loss of $0.49 to a lesser loss of $0.37 in 2023. Any company still suffering losses 10 years into its existence, however, is a name to keep on a short leash; this may be a big reason shares were so easily upended when stocks as a whole started to tank early this year.

It’s just got too much upside potential to ignore after its recent pullback, though, with analysts collectively more bullish than not on it, and saying on average that it’s worth $9 per share. That’s more than twice the stock’s current price of $3.85. 

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

The post 3 top Metaverse stocks ready for a bull run appeared first on The Motley Fool Australia.

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James Brumley 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 Microsoft and Nvidia. The Motley Fool Australia has recommended Nvidia. 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 Paladin Energy Ltd (ASX: PDN) share price broke to its lowest level since August 2021 on Monday.

At the closing bell, shares in the uranium producer finished at 57 cents apiece, cascading 13% from their previous close. In turn, the Langer Heinrich mine owner has etched a path to the downside to the magnitude of 40% since the start of the year.

Yet, the astute investor would have noticed there wasn’t any news out from Paladin Energy today. So, what could have drained the mining company of its enthusiasm today?

Paladin Energy share price tailwinds settle

Over the last few weeks, uranium has come into the spotlight as Australia faced off against its own energy crisis. The collapse of gas retailers and the U-turning of customers by some electricity retailers were the indicators of a failing energy market.

During this time, the old debate over whether Australia should consider nuclear energy as an alternative energy source reignited. Around the same time, the Biden administration advocated for lawmakers to follow through with a US$4.3 billion plan to do away with its uranium imports from Russia.

Ultimately, ASX-listed uranium shares picked up steam as the market began to bake in the chances of developed countries turning to an Australian supply of energy-rich uranium. However, today, those chances appear to have evaporated somewhat.

In an address today, Energy Minister Chris Bowen hinted that the worst of the situation is behind us, stating:

This is the system working. We have some way to go on; there’s no complacency. We’re very alive to the risks that remain in the system. […] we stood at a situation where load shedding was indeed looking likely, that blackouts were possible and we’ve managed to avoid all the above and there has been no impact on the reliability for consumers […]

As such, the Paladin Energy share price was not the only uranium share to be tempered today. Other names in the space, including Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) both fell more than 7%.

The post Why did the Paladin Energy share price tumble 13% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Wednesday
• Why are ASX 200 energy shares jumping today?
• Why Atlas Arteria, Boral, Fonterra, and Paladin Energy shares are pushing higher
• Why are ASX uranium shares having such a cracker run on Wednesday?
• ASX 200 midday update: Boral rockets, big four banks tumble

Motley Fool contributor Mitchell Lawler 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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Are you interested in adding some more ASX shares to your portfolio?

Three ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a collection of world class poker machines and mobile games that continue to win market share from rivals. But management isn’t resting on its laurels. It is planning an expansion into the lucrative real money gaming market. Combined with its major share buyback, this all bodes well for its earnings per share growth in the coming years.

Morgans is a fan of the company and has an add rating and $43.00 price target on its shares. This implies over 28% upside from the current Aristocrat share price of $33.47.

NextDC Ltd (ASX: NXT)

Another ASX growth share to look at is NextDC. It is a leading data centre operator which has been benefiting greatly from the shift to the cloud, which accelerated during the pandemic. The good news is that this shift still has a long way to go, which bodes well for demand for NextDC’s existing centres. It is also constructing new centres to capture increasing demand and looking at expansions into other markets.

Goldman Sachs is positive on the company and has a buy rating and $14.20 price target on its shares. This compares to the latest NextDC share price of $10.09, implying over 40% upside for investors.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share to look at is enterprise software provider TechnologyOne. It has been around for decades but has only recently decided to follow the lead of Microsoft et al in transitioning to a software-as-a-service (SaaS) focused business. Pleasingly, this transition is going very well and management believes it is on course to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is also very positive on Technology One. The broker currently has a buy rating and $13.30 price target on its shares. This suggests potential upside of 30% for investors from the current TechnologyOne share price of $10.25.

The post Experts name 3 ASX growth shares to buy with enormous upside potential appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares to benefit from strong US dollar: expert
• 2 ASX tech shares brokers rate as buys this month
• TechnologyOne share price is a buy ahead of profit growth acceleration: broker
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday

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

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The Adairs Ltd (ASX: ADH) share price leapt higher on Monday despite no news having been released by the company.

Shares in the home furnishing business rose alongside those of many of its retail peers.

As of Monday’s close, the Adairs share price is $1.785, 4.69% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) slipped 0.64% today while the All Ordinaries Index (ASX: XAO) slumped 0.81%.

Meanwhile, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) outperformed today. It came in as the ASX 200’s second best performing sector.

Let’s take a closer look at what’s been going on with the retailer’s stock and those of its peers lately.

Adairs share price gains 4% on Monday

Adairs has been particularly quiet over the last few months. In fact, the company hasn’t uttered a word of price-sensitive news since February. That makes the Adairs share price gain today more interesting.

Though, the retailer’s stock wasn’t alone in the green. It rose alongside many of its ASX retail peers.

The share prices of Accent Group Ltd (ASX: AX1), City Chic Collective Ltd (ASX: CCX), and Harvey Norman Holdings Limited (ASX: HVN) lifted 3.77%, 5.26%, and 4.51% respectively today.

Meanwhile, the consumer discretionary sector gained 2.77%, led by the PointsBet Holdings Ltd (ASX: PBH) share price’s 18.6% surge. The whopping gain followed news of a major strategic investment in the company.

Today marks the first time in two weeks that the Adairs share price has closed in the green. In fact, the stock has dumped 24% over the last 30 days.

It’s also 55% lower than it was at the start of 2022 and 61% lower than it was this time last year.

Thus, today’s gain was likely a welcome relief for some embattled investors.

The post Why did the Adairs share price surge 5% today? appeared first on The Motley Fool Australia.

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• Is Adairs really going to pay a dividend yield of 21%?
• Down 20% in a month: Top broker tips 75% upside for the Adairs share price
• What’s on the horizon for the Adairs share price in June?
• 2 ASX dividend shares that experts are tipping as buys right now
• Why was May such a shocker for the Adairs share price?

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 ADAIRS FPO, Harvey Norman Holdings Ltd., and Pointsbet Holdings Ltd. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Accent Group and Pointsbet 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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The Santos Ltd (ASX: STO) share price fell on Monday despite the company not releasing any announcements on the ASX.

At market close, the energy producer’s shares finished 6.03% lower to $7.32 apiece.

This means Santos shares have now lost more than 14% since this time last week.

Let’s take a look at what could be impacting the energy producer’s shares.

Why are Santos shares cooling off?

Investors are offloading the Santos share price following a broader fall across the S&P/ASX 200 Energy (ASX: XEJ) index today.

Comprising 11 companies that operate in the oil, gas and coal sector, the index backtracked 5.34% to 9,574.6 points.

Interestingly, the benchmark energy index is down a mammoth 13% in the past week.

This comes after the Federal Reserve’s decision to hand down a 0.75% interest rate hike that spooked financial markets.

A more aggressive monetary tightening policy to combat high inflation levels sparked worry about an impending recession in 2023.

Furthermore, the West Texas Intermediate (WTI) has dipped 10% from 8 June to currently US$110 per barrel.

With oil prices backtracking, this will likely put a squeeze on Santos’ margins along with its peers.

Shares in fellow rival, Woodside Energy Group Ltd (ASX: WDS) also closed the day 4.86% lower.

Santos share price snapshot

It’s been a rollercoaster 12 months for the Santos share price, registering nil gains for the period.

It’s worth noting that the company’s shares reached a 52-week low of $8.86 on 8 June before tumbling 17% to today’s price.

In terms of market capitalisation, Santos is the second biggest energy company on the ASX with a valuation of approximately $26.24 billion.

The post Why did the Santos share price sink 6% today? appeared first on The Motley Fool Australia.

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More reading

• Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• 5 things to watch on the ASX 200 on Monday
• Santos share price ‘a compelling opportunity’: fundie
• 2 energy ASX shares to buy while inflation is killing everything else: expert

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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Looking for dividend shares to buy this week? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares are rated as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend shares to look at is footwear focused retailer, Accent.

It is the company behind brands such as Athlete’s Foot, HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

Accent’s shares have been hit hard in 2022 due to tough trading conditions in the retail sector as cost of living pressures hit consumer discretionary spending.

While this is disappointing, analysts at Bell Potter remain positive and appear to see it as a buying opportunity. Its analysts recently reiterated their buy rating and $2.20 price target on the retailer’s shares.

The broker is also forecasting some attractive dividend yields in the coming years. Bell Potter has forecast fully franked dividends of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.24, this will mean yields of 4.7% and 8.6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share to look at is banking giant NAB.

Its shares have also been hammered recently, along with the rest of the big four, amid concerns that rapidly rising interest rates could cause more harm than good for the sector.

One broker that is likely to see this pullback as a buying opportunity is Goldman Sachs. Its analysts currently have a conviction buy rating and $34.17 price target on the bank’s shares.

As for dividends, the broker is forecasting a $1.50 per share dividend in FY 2022 and then a $1.65 per share dividend in FY 2023. Based on the current NAB share price of $26.06, this will mean fully franked yields of 5.75% and 6.3%, respectively.

The post 2 excellent ASX dividend shares that experts rate as buys this week appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares having such a cracking start to the week?
• 3 ASX 200 bank shares slide to 52-week lows on Friday
• Why brokers think Accent shares are a ‘shoe-in’ for ASX investors
• ‘Stellar performer’: Why this fundie is buying the dip in the NAB share price
• ASX 200 bank shares languish on Thursday despite market lift

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

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Bell Potter, its analysts have a buy rating and $17.53 price target on this lithium miner’s shares. Its analysts are positive on lithium prices and expect supply constraints to keep them higher for the foreseeable future. Bell Potter expects this to underpin significant improvements in cash generation and profits in the coming years. The broker also likes Allkem due to its aim of maintaining a 10% share of supply in a global lithium market experiencing unprecedented growth. The Allkem share price was trading at $9.80 on Monday.

Brambles Limited (ASX: BXB)

A note out of Ord Minnett reveals that its analysts have retained their buy rating and $13.50 price target on this logistics solutions company’s shares. Its analysts believe that the current Brambles share price implies an overly punitive earnings multiple of just 2x EBITDA on the company’s struggling Americas business. This compares to an estimated 12x EBITDA for its other businesses. So, with its Americas operations now starting to show early signs of a recovery, it could be a good time to invest. The Brambles share price is fetching $10.51 today.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

Another note out of Bell Potter reveals that its analysts have retained their buy rating but trimmed their price target on this biopharmaceutical company’s shares to $1.90. Bell Potter has reduced its valuation to reflect the ongoing correction to biotechnology sector valuations. However, it remains positive and believes upcoming data from the OA-008 osteoarthritis study could represent a significant catalyst. The Paradigm share price was trading at 98 cents on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Top broker names 4 ASX lithium stocks to buy now
• Top broker tips Allkem share price to jump 80%
• Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
• 5 things to watch on the ASX 200 on Monday
• The lithium and iron ore ASX shares that I like right now: expert

Motley Fool contributor James Mickleboro has positions in Allkem 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 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 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.

You could say Warren Buffett knows a thing or two about investing. He’s been buying equities for decades as Chairman and CEO of Berkshire Hathaway — a conglomerate worth more than $610 billion. Buffett’s personal wealth totals about $100 billion.

Fortunately for the investment community at large, Buffett isn’t shy about sharing his investing expertise. While many believe he has a unique gift for seeing business value, some aspects of his strategy are easy enough for novice investors to copy. Here are four of those straightforward investing strategies you can try today.

1. Invest in the S&P 500

In a 2017 interview, Buffett advised retirement savers to invest consistently in a low-cost S&P 500 index fund. In his words, “I think it’s the thing that makes the most sense practically all of the time.”

S&P 500 index funds invest in S&P 500 stocks. These are the largest and most successful publicly traded companies in the U.S. As a group, they’re not going to make you a millionaire overnight — but they have produced solid growth over time. Historically, the S&P 500 has grown about 7% annually, net of inflation.

S&P 500 index funds are readily available from any brokerage. Some brokerages even support fractional buys on these funds. This is a good option when you’re on a tight budget.

Note that Buffett specifically recommends low-cost funds. These are funds with low expense ratios, which represents how much of your invested capital goes toward fund expenses.

An expense ratio of 0.03%, for example, equates to $3 in fees annually for every $10,000 you’ve invested. The lower the expense ratio, the more of the underlying investment returns flow through to your bottom line.

2. Focus on the long term

You can invest for profits quickly or over time. Buffett follows the latter strategy. He’s said his preferred holding period is forever.

Some stocks are better suited than others for long holding periods. Buffett likes established businesses with strong track records through various economic climates — companies with staying power. Blue-chip companies and S&P 500 stocks generally fit the bill. 

On the other hand, trendy stocks, start-ups, and radical innovators are typically outside Buffett’s wheelhouse. There are opportunities in these categories, but profit-making can be more dependent on trading vs. holding.

3. Look past market turbulence

Buffett is committed to his long-term approach and doesn’t let turbulent markets shake his resolve. When asked for advice on managing through market volatility, Buffett said, “Don’t watch the market too closely.” 

The beauty of long-term investing is that it requires you to do nothing when share prices are falling across the board. Remember that you’ve invested in companies with staying power. As long as those companies haven’t fundamentally changed, waiting is your best move. Keeping your portfolio intact positions you for gains once the down market reverses.

4. Go against the grain

Buffett has famously said his investing goal was to “be fearful when others are greedy and to be greedy only when others are fearful.” In other words, be cautious when the market’s hot, and look for opportunity when the market’s weak.

For Buffett, opportunity often means buying good stocks at lower prices. He did exactly that in the first quarter of 2022 during the big tech sell-off. While other investors were reducing their technology exposure, Buffett picked up 3.7 million shares of Apple, one of his favorite stocks. 

Investing like Buffett

Buffett prefers big companies and long, uninterrupted holding periods. He also likes to operate against prevailing market sentiment. While these methods require perseverance, they’re straightforward enough for any investor to copy.

Once you implement Buffett’s simplest tactics, you can then wait for your gains to emerge over time. In a few decades, you’ll remember this day as the moment making money in the stock market got a lot easier. 

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

The post Warren Buffett approves of these 4 easy investing strategies you can try today appeared first on The Motley Fool Australia.

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• Will Westpac shares really pay a 9.6% dividend yield next year?
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Catherine Brock 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 Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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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After a positive start to the trading week this morning, the Westpac Banking Corp (ASX: WBC) share price slumped in afternoon trading, closing the day even. Westpac shares finished at $19.19 each, the same as Friday’s closing price. That’s slightly better than the S&P/ASX 200 Index (ASX: XJO) though, which closed 0.64% lower today.

But even so, investors might be a little disappointed with how things have gone for this ASX 200 bank share today, particularly as Westpac was in green territory this morning, rising as high as $19.44 a share. But, as we discussed last week, falling share prices give investors a silver lining in rising dividend yields. And Westpac’s current dividend yield of 6.32% is certainly enough to draw attention.

Westpac’s dividends come fully franked too, which is pretty typical for ASX 200 bank shares. If we include the value of these full franking credits, this dividend yield grosses up to 9.03%.

But that is a trailing dividend yield, based on the payouts Westpac has doled out over the past 12 months. So what does the future hold for Westpac’s dividend?

Will Westpac shares pay a 9.6% dividend next year?

Well, as my Fool colleague James covered last week, investment bank and ASX broker Goldman Sachs reckons there is a lot of good news in store for dividend investors when it comes to Westpac shares. Goldman is expecting the bank to continue to increase its dividend per share all the way to FY2024.

Over FY2021, Westpac paid out $1.18 in dividends per share. For FY2022, the bank has already paid a 61 cents per share interim dividend, which was a healthy increase on FY2021’s interim payment of 58 cents per share. Goldman is expecting Westpac’s final dividend for FY2022 to come in at 62 cents per share.

But, going forward, the broker is expecting Westpac to fund a total of $1.29 in dividends per share over FY2023. FY2024 will also see an increase, this time to $1.46 per share.

So if Westpac pays $1.29 in dividends per share in FY2023, what would it mean for investors?

Well, on Westpac’s current share price of $19.19, an annual dividend total of $1.29 would equate to a forward dividend yield of 6.3%. If we factor in those full franking credits, that would gross up to an eye-catching 9.61%.

It gets even better for FY2024, assuming Goldman is accurate with its predictions. If Westpac does indeed pay out $1.43 in dividends per share over FY202, investors would be looking at a forward yield of 7.62% (or 10.89% grossed-up).

Of course, none of this is guaranteed and is just one opinion. But if Westpac does end up following the dividend trajectory Goldman has laid out, it could mean a healthy stream of dividend income for investors over the next few years.

The post Will Westpac shares really pay a 9.6% dividend yield next year? appeared first on The Motley Fool Australia.

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• Why are ASX 200 bank shares having such a cracking start to the week?
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wesfarmers Ltd (ASX: WES) share price outperformed on Monday, despite the company’s silence.

In fact, there’s been no price-sensitive news from the conglomerate since 2 June.

At close of trade, the Wesfarmers share price finished $42.40, 3% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) struggled today, slipping 0.64%.

Let’s take a closer look at what might be going right for the ASX 200 giant.

What’s going on with the Wesfarmers share price?

The Wesfarmers share price took off on Monday alongside the company’s home sector.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) closed 2.77% higher, led by the PointsBet Holdings Ltd (ASX: PBH) share price – which finished up 18.14% – and those of many ASX 200 retailers.

On Monday, stock in ARB Corporation Limited (ASX: ARB), City Chic Collective Ltd (ASX: CCX), and Harvey Norman Holdings Limited (ASX: HVN) closed higher by 6.5%, 5.56%, and 4.23%, respectively.

One of only a few ASX 200 consumer discretionary stocks trading in the red today is InvoCare Limited (ASX: IVC). It’s closed the day down 0.68%.

Making Wesfarmers’ Monday gain even more notable is its recent rarity. Today is the first time the stock has gained in close to a fortnight. In fact, it’s fallen 10% since the end of May.

Right now, the Wesfarmers share price is 28% lower than it was at the start of 2022. It has also slipped 26% since this time last year.

The post Why is the Wesfarmers share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

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More reading

• Morgans tips 40% upside for the Wesfarmers share price
• Why I think these 2 ASX 200 dividend shares offer great buying right now
• 2 ASX companies busted for sneaky facial recognition on customers
• Why are these ASX 200 retail shares lagging the market today?
• Should you buy these top blue chip ASX 200 shares after the market selloff?

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 Harvey Norman Holdings Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers Limited. The Motley Fool Australia has recommended ARB Corporation Limited and Pointsbet 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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