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As most investors would be aware by now, inflation is emerging as a primary issue of concern.

For decades, inflation was just something we learned about in economics class. But 2022 has seen rising prices emerge as a malevolent economic force that we all now have to take into account in the course of our investing journey.

So how does one invest in a world of inflation? One of the ASX sectors most often described as an inflation hedge is ASX banks. Banking shares have a reputation as inflation-resistant businesses since they can increase their interest rates quite easily, ensuring that inflation doesn’t eat into margins.

That’s a view shared by our own chief investment officer, Scott Phillips.

Well, the Bank of Queensland Limited (ASX: BOQ) share price may not be a big four bank. But it is still a prominent member of the ASX banking sector. So do a bank’s apparent inflation-resistant qualities apply to BOQ shares? Is this bank an ASX buy today for an inflationary world?

Bank of Queensland share price: Buy or sell today?

Well, one ASX broker who thinks so is Morgans. As my Fool colleague covered earlier this month, Morgans currently rates the Bank of Queensland share price as an ‘add’. It gives the bank a 12-month share price target of $11. That would imply a potential upside of close to 50% on current pricing.

So why is Morgans so bullish on BOQ? Here’s what the broker had to say:

We see exceptional value in Bank of Queensland’s stock. The company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM [net interest margin] to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.

Morgans is also expecting big things from BOQ when it comes to dividends. It has pencilled in full-year dividends of 49 cents per share in FY2022, and 54 cents per share in FY2023. That would mean dividend yields of over 7% on current pricing if that came true, which would be an inflation hedge in itself.

So that’s why this ASX broker reckons Bank of Queensland is a strong share to hold for a world of higher inflation. Only time will tell if it’s the right call.

At the current Bank of Queensland share price of $7.49, this ASX 200 banking share has a market capitalisation of $4.81 billion, with a dividend yield of 5.87%. 

The post Is the Bank of Queensland share price a buy as an inflation hedge? appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares to buy with juicy yields
• Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022?
• How does the Bank of Queensland dividend compare to the other ASX 200 banks?
• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
• How has the Bank of Queensland share price travelled since the company’s half-year results?

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 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. At the time of writing, the benchmark index is down 0.1% to 7,138.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Brainchip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 9% to $1.28. This follows a press release which reveals that the artificial intelligence technology company has been accepted into the Arm AI Partner Program. This is an ecosystem of hardware and software specialists enabling developers to deliver the next generation of AI solutions.

Codan Limited (ASX: CDA)

The Codan share price is up 13% to $7.62. Investors have been buying this technology company’s shares following the release of its guidance for FY 2022. Codan revealed that it expects to match its record first-half profit in the second half. This would mean a record full-year profit of $100 million, which is up 56% year-on-year. Management advised that this strong growth has been supported by its strategy to diversify revenues and profitability.

Elders Ltd (ASX: ELD)

The Elders share price is up 10% to $15.12. This follows the release of a half-year result that smashed expectations. The agribusiness company reported a 38% increase in sales revenue to $1,514.8 million and an 80% jump in EBIT to $132.8 million. This compares to Goldman Sachs’ estimate of $1,245.2 million and $93.7 million, respectively. Management also upgraded its full-year earnings guidance.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is up 5% to $1.97. Investors have responded positively to news that the company has withdrawn its offer to acquire a 50% non-operated interest in the Atlanta oil field, Santos basin, offshore Brazil. Management was unable to complete the necessary due diligence and conclude negotiation of acceptable terms in respect of the potential transaction during the agreed exclusivity period.

The post Why BrainChip, Codan, Elders, and Karoon Energy are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Why is the BrainChip share price rocketing 15% higher today?
• Elders share price jumps 9% on stellar first-half profit growth
• Codan share price jumps 10% amid guidance for ‘record’ FY22 profit
• 5 things to watch on the ASX 200 on Monday

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 Elders 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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There is sometimes a question of whether investors should go for ASX dividend shares or ASX growth shares.

But is it possible to find both dividends and growth?

A business that is growing earnings has the ability to decide what it wants to do with its profit. Some businesses don’t pay a dividend and are investing heavily for growth, such as Xero Limited (ASX: XRO) for example.

However, some businesses may decide that they want to pay out some of the profit to reward shareholders and re-invest the rest.

Not every business is able to achieve consistent long-term profit growth, sometimes because of the nature of the industry in which it operates.

But it’s profit growth that can help drive the share price higher over time, although share prices can do anything in the short term.

There are some ASX shares that have seen share price growth and dividend growth over the last five years (and longer). However, as is always the case, nothing is certain about the next five years.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is an investment house that operates a diversified investment house. In its portfolio are names like TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), and BHP Group Ltd (ASX: BHP).

It has taken the approach of steadily growing its dividend every year since 2000. Soul Pattinson’s own investments can grow their dividends to Soul Pattinson shareholders and the investment house keeps some of its profit/cash flow each to invest in more opportunities. For example, in the FY22 half-year result, it paid out 57.3% of its regular operating cash flows.

Over the last five years, the Soul Pattinson share price has risen almost 50% at the time of writing.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is another ASX share that has been growing its dividend every year and it has seen share price growth. Over the last five years, the Sonic Healthcare share price has risen by more than 60%. It has also been growing its dividend.

The company is a global pathology business with operations across Australia, the USA, Germany, the UK, Switzerland, Belgium, and New Zealand.

Sonic is benefiting from the tailwinds of ageing demographics and has seen significant COVID-19 test earnings. The business has been re-investing its profit into making acquisitions while also paying a bigger dividend with its progressive dividend policy. In the first half of FY22, it grew its net profit after tax (NPAT) by 22% while increasing the interim dividend by 11%.

In the first half of FY22, it made $585 million of acquisitions including ProPath in Dallas with US$110 million of revenue and Canberra Imaging Group with $60 million of revenue.

Rural Funds Group (ASX: RFF)

Rural Funds is a farmland real estate investment trust (REIT) that owns farmland across the agricultural sectors of cattle, macadamias, almonds, vineyards, and cropping (cotton and sugar).

The business generates rental profit each year, which is referred to as ‘adjusted funds from operations’ (AFFO). Most years, Rural Funds retains some of its AFFO and re-invests in achieving more economic value from its farms such as productivity improvements or changing the farm type to a more profitable crop (such as macadamias).

Rural Funds aims to increase its distribution by 4% per annum. Over the last five years, the Rural Funds share price has gone up by 67%.

The post Is it reasonable to expect share price growth AND reliable dividends from ASX shares? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 into ASX shares this week
• I’ll never sell this ASX dividend share. Here’s why
• 2 strong ASX dividend shares hiding in plain sight
• I plan to hold this quality ASX dividend share forever. Here’s why.
• The Soul Patts dividend is being paid today. Here’s what you need to know

Motley Fool contributor Tristan Harrison has positions in RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended Brickworks, RURALFUNDS STAPLED, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended Macquarie Group Limited, Sonic Healthcare Limited, and TPG Telecom 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.

The past five months have been loaded with turbulence from an investing standpoint. And late last week, the S&P 500 Index finally plunged into bear market territory after weeks of steady declines.

It’s enough to make even the most seasoned, level-headed investor get rattled. But if you want to get through this rocky period, it pays to take some advice from investing giant Warren Buffett.

Just look away

The current stock market slump isn’t the first of its nature investors have had to endure. The market has been through numerous periods of steep declines, and while many of today’s investors have experienced a bear market before, that doesn’t necessarily make it easier to cope with.

But if you want to increase your chances of getting through this bear market unscathed, Warren Buffett says your best bet is to simply look away. Specifically, he advises investors not to watch the market too closely during periods like this.

Buffett insists that investors who load up on quality stocks and hold them for many years will come out ahead in the long run. So even though things might seem bleak right now, it’s important to remember that in the grand scheme of a 30-, 40-, or 50-year investing career, today’s bear market could end up being a non-event.

In fact, the best thing to do during a bear market is to avoid selling off stocks when their value is down. If you do, you’ll only guarantee yourself losses. If you leave your portfolio alone, there’s a strong chance it will recover in time.

But the more you check up on your portfolio, the more rattled you might get — and the more likely you might be to make a rash decision that causes you to take needless losses. That’s why it pays to heed Buffett’s advice and simply walk away.

Seize the opportunity

If you can’t stomach the idea of seeing major losses in your portfolio during a stock market downturn, don’t check your portfolio. It’s that simple.

That said, if you happen to be sitting on a pile of cash you don’t need for near-term bills or emergencies, it could pay to take advantage of current market conditions by purchasing stocks on the relative cheap. If you already own a number of companies whose long-term prospects you believe in, those are the stocks to keep buying during a bear market.

Another option? Load up on broad market index funds. That way, you’ll get instant diversification and you won’t have to put as much thought into your investing decisions.

Warren Buffett has long insisted that broad market index funds are a great choice for the everyday investor who’s willing to sit back and let a portfolio gain value over time. So loading up on S&P 500 index funds is a good bet right about now.

Keep calm

It’s natural to worry when stock values drop significantly. But if your stress level is currently through the roof, do yourself a favor and just walk away.

Checking your portfolio daily when it’s down is only apt to cause you undue anguish. If you need a way to channel your energy, take up a sport that will allow you to blow off steam, or put on your running shoes and hit a local trail. But don’t spend night after night checking on your portfolio. If you don’t walk away, you might end up making a fear-driven decision that turns those on-screen losses into actual ones.

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

The post Warren Buffett says investors should do this 1 thing when stock values are down appeared first on The Motley Fool Australia.

More reading

• The Invictus share price just tanked 12%. Here’s why
• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday

The Motley Fool has a disclosure policy.

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

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The Invictus Energy Ltd (ASX: IVZ) share price is having a woeful day following the company’s latest release.

At the time of writing, the oil and gas exploration company’s shares are down 12% to 24.2 cents apiece.

Let’s take a closer look and see what Invictus updated the ASX market with today.

Invictus completes $12 million placement

Investors are scrambling to sell Invictus shares after details of an impending share dilution from the company.

According to its statement, Invictus advised it has received firm commitments to raise $12 million through a private placement. The offer was presented to new and existing sophisticated and institutional investors.

Under the placement, Invictus will issue roughly 60 million fully-paid ordinary shares at an issue price of 20 cents apiece. This represents a 27.3% discount to the last closing price of 24.5 cents on 18 May.

In addition, placement participants will receive a free option on a one-for-two basis, at a strike price of 35 cents. These options will have a one-year expiry date.

The company will seek to have the options listed on ASX and approval for director participation. This will be held at the extraordinary general meeting (EGM) on 30 June.

The proceeds of the placement will be used towards Invictus’ upcoming drilling campaign at the Cabora Bassa Project in Zimbabwe.

The company stated that the first well in the campaign will target the Mukuyu prospect, which has been independently estimated to contain 8.2 trillion cubic feet and 247 million barrels of conventional gas condensate.

Invictus managing director Scott Macmillan commented:

We are pleased to welcome new institutional investors onto our share register at an exciting time for the Company as we prepare to embark on our maiden drilling campaign in Zimbabwe.

Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the Company is well funded for the Mukuyu-1 well.

Drilling of the Mukuyu-1 well, which will test Africa’s largest undrilled onshore oil and gas prospect, remains on track to commence in July.

Invictus share price summary

Regardless of today’s decline, the Invictus share price has zipped almost 60% higher in the past 12 months.

Year to date, the company’s shares are up 96%.

Invictus has a market capitalisation of approximately $165 million, with around 674.5 million shares on issue.

The post The Invictus share price just tanked 12%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 1.23% today, but one ASX mining share is storming much further ahead.

The Discovery Alaska Ltd (ASX: DAF) share price is soaring 44.6% to 9.4 cents at the time of writing. In earlier trade, the company’s share price surged nearly 62% to 10.5 cents.

So what is causing this ASX mining share to explode today?

Lithium discovery

Discovery Alaska shares are surging after the company confirmed lithium minerals at the Coal Creek prospect within the company’s Chulitna Project.

Analyser readings showed lithium mineralisation at twelve historical drill holes at the site. The company used a SciAps Z-901 LIBS handheld analyser to reveal lithium across broad zones within the drill holes.

This follows initial news on 29 May that lithium was identified at the site. The company has 100% ownership of the project, located in the US state of Alaska.

Discovery Alaska will now conduct laboratory analysis testing of the drill core with the aim of outlining a JORC lithium resource.

Commenting on the news, Discovery director Jerko Zuvela said:

The company is excited to progress lithium exploration works at our Coal Creek prospect with positive scanning results indicating broad zones of lithium in all drill holes tested thus far.

We look forward to realising the lithium potential at our Coal Creek prospect and
advancing works toward delineating a maiden JORC resource.

Share price snapshot

The Discovery Alaska share price has soared 102% in the past year, while the micro-cap is exploding 206% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 2% in the past year.

Discovery Alaska has a market capitalisation of about $21 million based on today’s share price.

The post Guess which ASX mining share leapt 60% this morning on a new lithium discovery? appeared first on The Motley Fool Australia.

More reading

• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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 Openpay Group Ltd (ASX: OPY) share price has returned from its trading halt and tumbled notably lower.

In afternoon trade, the buy now pay later (BNPL) provider’s share are down 13% to a new low of 25.5 cents.

This means the Openpay share price has now lost two-thirds of its value in 2022.

Why is the Openpay share price sinking?

The Openpay share price is under pressure today after the company completed a placement of shares to sophisticated and institutional investors.

According to the release, Openpay has raised $18.25 million from the placement at an 18.6% discount of 24 cents per new share.

The release explains that Openpay received cornerstone support from existing and new shareholders to invest $16 million under the placement. Though, a portion of this will be subject to shareholder approval.

Management intends to use the capital raised to accelerate its pathway to profitability in the ANZ market. This is expected to be achieved by June 2023.

This will involve acquiring new merchants and customers at scale in the ANZ market, increasing customer retention, making platform and technology enhancements, and contributing to its growing receivables book.

Supporting the ‘engine room of the company’

Openpay’s ANZ CEO, Dion Appel, notes that this capital raising will support the company’s key driver of growth.

Openpay ANZ is accelerating its pathway to profitability through sustainable growth, market-leading margins and business simplification. Australia is currently the engine room of the Company and we remain focused on delivering this plan. We appreciate the strong and continued support shown by existing shareholders, and new investors for the Placement and are pleased to welcome eligible shareholders to participate in the SPP on the same terms as the Placement to further accelerate our strategy.

Openpay will now seek to raise a further $2 million via a share purchase plan. This will be undertaken at 24 cents per share, which is the same price as the placement.

The post Why the Openpay share price is sinking 13% to a new low today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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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ASX lithium shares have been some of the best performers on the exchange this year.

With lithium demand booming amid a surge in global electric vehicle production, many resource explorers are branching out from their traditional metals and turning their attention to uncovering the light-weight, highly-conductive metal.

And that’s seeing this small ASX gold share transforming into an ASX lithium share.

A nascent ASX lithium share

You may not be familiar with Ragusa Minerals Limited (ASX: RAS). The microcap resource explorer that’s been primarily focused on gold has a market cap of just $12 million. But it has big ambitions.

At time of writing the Ragusa share price is up 23% to 9.8 cents per share after earlier posting gains of 30%.

The aspiring ASX lithium share entered a trading halt on Friday pending an announcement released before market open today.

According to the release, Ragusa has entered into a tenement farm-in agreement with May Drilling for the exclusive right to earn an initial 90% interest in a tract of lithium prospective tenements. Ragusa maintains the option to increase its interest to 100%.

The tenements are located in the Litchfield Pegmatite Belt, located in the Northern Territory. Covering some 570 square kilometres, the area is in close proximity to Core Lithium Ltd‘s (ASX: CXO) Finnis Project.

What did management say?

Commenting on the agreement that could see the company transform into an ASX lithium share, Ragusa chair, Jerko Zuvela said:

The company has secured extremely strategic and highly sought-after lithium prospective tenements in the centre of a well-renowned lithium district. This is a significant opportunity to combine Ragusa’s existing NT lithium projects to create a combined ‘supergroup’ project area comparable to neighbours Core Lithium and Lithium Plus, and utilise our exploration and development experience to rapidly progress our NT Lithium Project in a Tier 1 jurisdiction close to major infrastructure.

With four currently granted tenements and considerable historic works to reference, Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district.

The post Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Here’s why the Fortescue share price is surging on Monday
• Why has the Telstra share price lagged the ASX 200 over the past week?
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off

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 Fortescue Metals Group Limited (ASX: FMG) share price is among the S&P/ASX 200 Index (ASX: XJO)’s top performers on Monday despite no news from the company.

The iron ore giant’s stock looks to be enjoying a boost from the commodity’s rising price.

At the time of writing, the Fortescue share price is $20.80, 3.23% higher than its previous close.

For context, the ASX 200 is up just 0.08% right now.

Let’s take a look at what might be helping bolster the ASX materials giant on Monday.

What’s boosting the Fortescue share price today?

The Fortescue share price is outperforming today. Its gains come after iron ore futures surged 2.5% to US$134.36 a tonne on Friday.

The steel-making ingredient’s value rose amid news China cut its benchmark reference rate for mortgages, according to CommSec.

And Fortescue’s stock isn’t alone in the green on Monday. The S&P/ASX 200 Materials Index (ASX: XMJ) is the index’s best performing sector today. It has gained 1.2% at the time of writing.

Fortescue is leading the sector’s rise. Meanwhile, shares in Champion Iron Ltd (ASX: CIA) and James Hardie Industries (ASX: JHX) are hot on its tail, having lifted 2.4% and 2.22% respectively.

At the same time, the share prices of fellow iron ore giants Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) are recording gains of 2.22% and 1.82% respectively.

The Fortescue share price has outperformed the ASX 200 to gain 8.38% over the course of 2022 so far. Though it has slipped around 6% since this time last year.

The post Here’s why the Fortescue share price is surging on Monday appeared first on The Motley Fool Australia.

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• How are ASX 200 mining shares responding to the election outcome?
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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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It hasn’t been a fantastic start to the trading week this Monday for the Telstra Corporation Ltd (ASX: TLS) share price.

Telstra shares are today trading at $3.94 each, down 0.38% for the day so far. That’s in stark contrast to the S&P/ASX 200 Index (ASX: XJO), which remains in the green today, despite having lost much of its earlier lead.

But Telstra shares haven’t had the best week either. The telco is trailing the ASX 200’s performance over the past five trading days as well. So what’s going on with Telstra? Why have Telstra shares been lagging the broader markets?

Well, it’s not entirely clear. But last week’s news regarding Telstra could have played a role.

Telstra shares stagnate amid sluggish market share news

As we covered on Thursday, there was some bad news out regarding Telstra’s share of the national broadband network (NBN) market. The Australian Competition and Consumer Commission (ACCC) revealed that both Telstra and its fellow internet service provider TPG Telecom Ltd (ASX: TPG) lost market share over the three months to 31 March 2022. Over these three months, Telstra, TPG and the Singtel-owned Optus all lost 0.3% of market share in the provision of NBN services.

Taking this share was a bevvy of smaller telco providers, spearheaded by Aussie Broadband Ltd (ASX: ABB). Aussie Broadband managed to boost its market share by a substantial 0.5%. However, this still leaves the telco aspirant with a total market share of 6.1%. Even though Telstra, TPG and Optus lost some skin, they still command a market share of 43.7%, 23.3% and 13.9% respectively.

Even so, this news wasn’t particularly good for Telstra and its larger rivals. Perhaps it’s no wonder that investors have gone lukewarm on the telco over the past few trading days.

The Telstra share price is now down 6.4% in 2022 so far. Even so, it remains up a pleasing 15.16% over the past 12 months. At the current Telstra share price, this ASX 200 telco has a market capitalisation of $45.83 billion. This gives Telstra shares a trailing dividend yield of 4.05%.

The post Why has the Telstra share price lagged the ASX 200 over the past week? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• These 3 shares are topping the ASX 200 volume charts on Thursday
• These ASX 200 companies just lost market share to a small-cap rival
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Is the Telstra share price cheap compared to other ASX 200 shares?

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom 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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