Tag: Motley Fool

The Webjet Limited (ASX: WEB) share price will be on watch on Thursday.

This follows the release of the online travel agent’s full-year results.

Webjet share price on watch following results release

• Total transaction value (TTV) up 261% to $1,638 million
• Revenue up 258% to $138 million
• Operating expenses up 61% to $153 million
• EBITDA loss improved by $41.3 million to $15 million
• Statutory net loss of $85.4 million (underlying loss of $38.4 million)
• Returned to profit during the second half

What happened during FY 2022?

For the 12 months ended 31 March, Webjet reported a 261% increase in TTV to $1,638 million. This comprises WebBeds TTV of $1,101 million and Webjet OTA TTV of $428 million, and GoSee (Online Republic) TTV of $108 million.

Things were equally strong for its revenue, which jumped 258% to $138 million. This reflects WebBeds revenue of $85.6 million and Webjet OTA revenue of $41.9 million, and GoSee revenue of $10.5 million.

Though, as strong as this growth was, it is still some way behind pre-COVID levels. For example, during calendar year 2019, WebBeds revenue was $226.9 million, Webjet OTA revenue was $151.1 million, and GoSee revenue was $30.8 million.

On the bottom line, Webjet reported another loss for FY 2022. On a statutory basis the company’s loss was $85.4 million and an underlying basis its loss was $38.4 million. However, both are big improvements on the prior corresponding period.

Pleasingly, this appears to be the end of its losses. Management revealed that the company was profitable during the second half and delivered positive cash flow.

Management commentary

Webjet’s Managing Director, John Guscic, was pleased with the progress the company made in FY 2022. He said:

 FY22 was a year of recovery. We are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease. WebBeds returned to profitability in the second half.

Our investment in North America is paying off with booking volumes for that business now already more than double what they were pre-pandemic, and all the work undertaken to drive efficiencies saw costs remain significantly below pre-pandemic levels.

Mr Guscic was also pleased to report that the Webjet OTA business was profitable despite facing very tough trading conditions.

Webjet OTA was profitable for the full year despite widespread lockdowns, border closures and the impact of Omicron from December. Domestic bookings spiked as borders opened, reflecting Webjet OTA’s strength in servicing the domestic leisure market, however international bookings have been subdued with airline capacity still well below pre-pandemic levels.

Profitability for GoSee is highly linked to Australian and New Zealand international border openings and that business continued to be impacted by border closures for the majority of FY22, although we saw Cars TTV exceed pre-pandemic levels in March driven by domestic markets.

The year has also been one of incredible and unprecedented industry challenges consequent upon the chaotic changes in travel plans and restrictions which have put all travel industry service levels under enormous stress.

Outlook

While the company won’t be providing any guidance for FY 2023, it appears confident on its prospects. Management notes that there are strong signs of demand and first quarter trading is tracking well ahead of the fourth quarter of FY 2022.

Based on current bookings trajectory, the company remains on track of be back at pre-pandemic bookings volumes by October 2022 to March 2023.

Despite this positive outlook, Webjet elected not to pay a dividend this year. Webjet’s Chair, Roger Sharp, said:

While Webjet has significant cash reserves, we continue to watch cash, cash flow and debtor risk very closely. We are starting to see strong cash inflows as major travel markets open again, and the Company is back to being cash flow positive. We paid the deferred FY20 interim dividend during the year however given the inherent uncertainty that still remains, we have not declared a dividend for FY22.

The post Webjet share price on watch amid 258% revenue jump in FY22 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Webjet share price outperforming on Monday?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Here are 2 ASX growth shares experts have named as buys

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 Webjet Ltd. 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://ift.tt/TrBg9YI

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Glenmore Asset Management portfolio manager Robert Gregory nominates the ASX share he’d rely on for years to come, and shares his biggest regret.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Robert Gregory: The stock I decided on — it’s a great question — is Transurban Group (ASX: TCL).

That’s a company with quite a large portfolio of toll roads. And I, in thinking [the market] would be shut for four years, I tried to think about a company that, firstly, was a high quality business and had really good prospects for earnings growth, but also one that had a pretty low risk of having its earnings being disrupted by industry change, technological change, competitive pressures, that sort of thing.

If Sydney Airport had been listed that may well have been the one, but with Sydney Airport now taken over, Transurban’s the one that I feel would give me the most amount of comfort. It’s got across its portfolio of toll roads, it’s got a weighted average concession life of around 30 years.

It has great optionality with its existing asset base where a toll road might have a concession for, say, 20 years. But then in return for say, Transurban spending growth cap-ex on that toll road to deal with increased population and increased traffic, often the government will extend the concession by five years or seven years or that sort of thing. So in doing that, that’s very NPV [net present value] positive for Transurban and it just pushes, it extends out that length of cash flows that they received from the toll roads. [Transurban] had a history of doing that.

Also with inflation being so high at the moment, one positive is their toll escalations are inflation-linked. That really is: A, it’s very helpful in the high inflation period and B, it’s very supportive of future distribution growth.

Despite some people not being happy to pay to drive on a toll road, I actually think the value proposition is very strong in terms of saving drivers time. Also, toll roads have a history of seeing above GDP traffic growth.

MF: I live in Sydney, where practically everyone is a customer of a Transurban, so I completely understand.

RG: Yes.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

RG: Yeah, the one I landed on was Dicker Data Ltd (ASX: DDR), which the fund’s owned for a long period of time. I definitely didn’t exit it completely in the second half of 2020, [but] I did reduce the position recently aggressively on valuation grounds.

It was a stock that had been in the fund really since early 2018, having first invested around $3. And we were trimming around that $9 to $10 range, and really the company’s performing extremely well operationally, but the valuation modules had expanded very significantly since that first point of investment at $3.

So the stock went from probably trading on about nine to 10 times [price to earnings ratio] P/E up to about 26, 28 times. [It’s] still performing very well, but on valuation grounds decided to reduce it.

And look, the company’s just continued to perform extremely well.

It’s a value-added IT product distribution distributor that has a very strong management team, a very strong competitive proposition versus its peers who are often Australian satellite offices of large multinationals and perhaps don’t quite have that strong laser-like focus on Australia and New Zealand that Dicker Data has.

The other thing with Dicker Data, they’ve just benefited from continued sector growth in markets, being the IT software sectors where there’s just this very strong above GDP spending from consumers, small business, medium business, large business. So they’ve definitely had some tailwinds, but yeah, that’s one that in hindsight I regret having trimmed.

The post ‘High quality’ ASX company that has all of Sydney as customers appeared first on The Motley Fool Australia.

More reading

• ‘Too early to brake for the next exit’: What this top broker likes about Transurban shares
• Why I think these are the best ASX dividend shares to buy right now
• Analysts rate these ASX growth shares as buys this month
• What’s with the Dicker Data share price today?
• Everything you need to know about the latest Dicker Data dividend

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

from The Motley Fool Australia https://ift.tt/gQuAtPa

The spotlight is on Fortescue Metals Group Limited (ASX: FMG) shares as word hits the streets that Andrew ‘Twiggy’ Forrest is taking back the reins as chief executive officer.

This marks the first time the billionaire will be running the day-to-day operations of the S&P/ASX 200 Index (ASX: XJO) iron ore giant since stepping down as CEO in 2011.

Forrest will also remain chairman of the company, which is working on developing hydrogen-based clean energy via its offshoot, Fortescue Future Industries (FFI).

Current CEO Elizabeth Gaines is relinquishing the top job in August. Fortescue has been seeking a replacement for some five months now, but to date has come up empty.

What’s the outlook for Fortescue shares with Twiggy at the helm?

With Forest’s strong focus on emissions reduction and commitment to clean energy, Macquarie analysts said his return to the top job (quoted by The Australian), “demonstrates the company’s commitment to advancing its transition to a global green renewables and resources company”.

Macquarie analysts will be keeping a close eye on upcoming dividends from the iron ore major. At the time of writing, Fortescue shares pay the highest dividend yield of any of the ASX 200 miners, a whopping 15.7% fully franked.

According to Macquarie, “FMG’s ability to maintain its dividend payout ratio close to 80% through the transition period presents a key risk and catalyst for the stock… FMG is generating strong cash flow, with the stock trading on FY23 and FY24 free cash flow yields of 16.1% at spot prices.”

How has the ASX 200 iron ore miner been tracking?

Fortescue shares have edged higher over the past week, leaving them down just under 1% in 2022.

That compares to a year-to-date loss of just under 6% posted by the ASX 200.

At the current share price, Fortescue has a market cap just north of $60 billion.

The post What’s the outlook for Fortescue shares with Twiggy at the helm? appeared first on The Motley Fool Australia.

More reading

• Fortescue share price pushes higher following leadership changes
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• Why I think these are the best ASX dividend shares to buy right now
• Fortescue share price on watch after Twiggy returns to top job
• Which ASX 200 mining share has the highest dividend yield in May?

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.

from The Motley Fool Australia https://ift.tt/8aJldz4

During a time when most ASX shares are in turmoil, the banking sector has stood tall.

It’s the one industry where the prospect of rate rises doesn’t strike fear, but excitement.

The S&P/ASX 200 Financials (ASX: XFJ)’s outperformance this year against the S&P/ASX 200 Index (ASX: XJO) is testament to this.

The financials index has dropped just 0.64% for the year to date, while the broader ASX 200 is down a painful 5.4%.

But one team of analysts reckon the good times for bank shares have only just started.

Bank margins will only get fatter this year

Wilsons analysts, in a memo to clients, forecast that banks would find business easier as the Reserve Bank of Australia pushes up the cash rate multiple times this year.

“Banks’ margin pressure will likely ease, and ultimately, this will be the key driver of earnings growth over the medium-term.”

This is because as the RBA cash rate moves upward, the big banks often forward the full increase to its loan customers but not to the clients holding deposits.

The difference in the interest paid in and out to those groups is called the net interest margin (NIM), which the bank gets to pocket.

Wilsons has a bullish view of this boost in earnings.

“We believe the net interest margins of the majors will grow faster than consensus forecasts, leading to earnings upgrades over the next two financial years.”

According to Wilsons, Australian banks rake in 80% of their revenue from net interest income.

UBS has calculated that a 25-basis point rise in rates, like what was seen this month, results in a one to three basis point boost in net interest margins.

“We could see the RBA hike rates by 200 basis points over the next 12-18 months, which would equate to an 8-24bps increase in NIMs,” read the Wilsons memo. 

“Taking the middle point, this could deliver a 12% lift in earnings, all things being equal.”

What’s more, the analysts reckon big bank shares are still reasonably inexpensive at the moment.

“We believe bank valuations are still on the cheaper side, which could provide an opportunity for a re-rate in the short-term.”

Which banks are the best buys right now?

The Wilsons team revealed that it has recently increased its weighting to Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

“We believe valuations for Westpac and ANZ will start to rerate as we see margin improvement.”

The team reckons Commonwealth Bank of Australia (ASX: CBA) shares look expensive compared to its peers.

“Although National Australia Bank Ltd. (ASX: NAB) is close to its 10-year average [price-to-book ratio], we think the bank is a better quality bank than it has been over the past decade,” read the memo.

“ANZ and WBC still look cheap on a P/B basis.”

The post 3 cheap ASX shares set to boom with higher interest rates: Wilsons appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?
• Experts name 2 ASX dividend shares to buy with big fully franked yields
• Why I think NAB shares could be the smartest big four ASX bank to buy
• Latest Westpac review notes progress but flags ‘bank’s difficulty in staying the course’

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/8p74PXf

The public links portfolio managers, stock advisers and analysts to the investment style of their products.

But who is to say their personally held ASX shares aren’t completely different?

After all, prominent portfolio manager Marcus Padley revealed earlier this year he only has two stocks in his personal portfolio.

That’s why it’s fascinating whenever any morsel of information about the personal holdings of professional investors comes to light.

How have they invested their own hard-earned money, as opposed to other people’s money?

This week we saw a case of this when Shaw and Partners portfolio manager James Gerrish revealed what his biggest personal holding is.

Market has overly punished this stock

In his weekly Market Matters Q&A for his subscribers, Gerrish was asked about the prospects of software provider Xero Limited (ASX: XRO).

Xero shares have fallen almost 40% for the year to date.

“This is the largest position in my personal portfolio, and we already have a decent exposure via our Market Matters Growth Portfolio.”

The market did not react well to Xero’s recent earnings news, sending the shares down 10% on the same day.

But Gerrish doesn’t agree the results were bad.

“We didn’t think the result was a bad one, they have simply prioritised growth over profit, which the market currently doesn’t like.”

Great stock, but be patient

Having said this, Gerrish wouldn’t jump head-first into Xero shares right at the moment.

“While we think Xero is a quality growth company, the value contraction in this space has been both huge and deeper than we imagined in this first leg down,” he said.

“We do like the stock into weakness but the trend is down and surprises do usually unfold with the trend hence we wouldn’t be going all-in anytime soon.”

There will be opportunities further down the track when the entry point is even cheaper, according to Gerrish.

“It reminds me of a famous Warren Buffett quote: ‘Price is what you pay but value is what you get’.”

TMS Capital portfolio manager Ben Clark told a Livewire video this week that most fund managers count Xero as “one of the highest quality businesses” on the ASX.

“On face value, it still looks expensive, mainly because they pump about 80% of their revenue back into investment,” said Clark.

“That’s the business that is at the tipping point of the overshoot… that could run hard if we start to see that play out.”

The post Why this ASX 200 share is my biggest personal holding: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 beaten down ASX tech shares analysts say have major upside potential
• Leading brokers name 3 ASX shares to sell today
• Why this fund manager is backing Xero shares for the rest of 2022
• ‘Future-proof your portfolio’: experts pick 3 quality growth ASX shares to buy
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Tony Yoo has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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://ift.tt/4ZdlFEa

If you’re wanting to boost your income with some dividend shares, then the two listed below could be worth considering.

Both have been named as buys and tipped to pay very attractive dividends to investors. Here’s what you need to know:

Centuria Industrial Reit (ASX: CIP)

The first ASX 200 dividend share to look at is Centuria Industrial. It is the owner of a portfolio of high-quality industrial assets situated in key metropolitan locations throughout Australia.

Demand for the company’s properties has been very strong and underpinned a portfolio occupancy rate of 99.2% and 10% rental growth in FY 2022. The good news is that this trend is expected to continue thanks to elevated occupier demand from the e-commerce sector, which is creating competition for high-quality industrial assets.

Analysts at Macquarie are positive on Centuria Industrial and have an outperform rating and $4.27 price target on its shares.

As for dividends, the broker is forecasting a 17.3 cents per share distribution in FY 2022 and a 17.8 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.50, this will mean yields of 4.9% and 5.1%, respectively

Rio Tinto Limited (ASX: RIO)

Another ASX 200 dividend share that could be in the buy zone is Rio Tinto.

Due to its exposure to a range of commodities which are commanding strong prices right now, the mining giant has been tipped to generate material cash flow in the near term.

In addition, Rio Tinto has a number of growth projects in the works that look set to boost production in the near future. Combined, this bodes well for the miner’s earnings and dividends.

Goldman Sachs is bullish and has a buy rating and $135.10 price target on its shares.

The broker is also expecting some big fully franked dividends in the coming years. It is forecasting a US$9.30 per share dividend in FY 2022 and a US$8.80 per share dividend in FY 2023. Based on the current Rio Tinto share price of $108.86 and the latest exchange rates, this will mean yields of 12.3% and 11.6%, respectively.

The post Analysts name 2 top ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• Macquarie reveals 2 sectors where bargain ASX shares still exist
• Why has the Rio Tinto share price dumped 14% in a month?
• Which ASX 200 mining share has the highest dividend yield in May?
• How big will the Rio Tinto dividend be in 2022?
• Why are ASX 200 mining shares in the green today?

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.

from The Motley Fool Australia https://ift.tt/xA1POBq

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher. The benchmark index rose 1% to 7,182.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to sink on Thursday following a major selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 135 points or 1.9% lower this morning. On Wall Street, the Dow Jones fell 3.6%, the S&P 500 dropped 4%, and the Nasdaq sank 4.7%. This was the Dow Jones’ worst session since 2020.

Webjet full-year results

The Webjet Limited (ASX: WEB) share price will be one to watch on Thursday. This morning the online travel agent is scheduled to release its full-year results. According to a note out of Goldman Sachs, it is expecting Webjet to report revenue of $143.6 million and EBITDA of $1.5 million.

Oil prices tumble

It could be a difficult day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.8% to US$109.09 a barrel and the Brent crude oil price is down 2.5% to US$109.12 a barrel. Oil prices fell after US producers ramped up production.

Westpac goes ex-dividend

The Westpac Banking Corp (ASX: WBC) share price is likely to trade notably lower today regardless of the market selloff. This is due to Australia’s oldest bank’s shares trading ex-dividend this morning for its fully franked interim dividend of 61 cents per share. Eligible shareholders can now look forward to receiving this dividend on 24 June.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,815.10 an ounce. A stronger US dollar offset demand for safe haven assets during the market selloff.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• What’s dragging on ASX 200 energy shares like Santos today?
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 energy shares in focus amid frightening global supply crisis

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Webjet Ltd. and Westpac Banking Corporation. 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://ift.tt/Qv6o41g

If you’re looking to bolster your portfolio with some blue chip shares, you may want to look at the two listed below.

Here’s why these blue chip ASX 200 shares are highly rated right now:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to look at is CSL. It is a leading biotechnology company behind the CSL Behring and Seqirus businesses.

These two businesses have a portfolio of life-saving and lucrative therapies and vaccines which save millions of lives and generate billions of dollars in sales each year.

But management isn’t resting on its laurels. It continues to invest in the region of 10% to 11% of its sales into research and development activities. This means it has a development pipeline filled to the brim with important and potentially lucrative therapies.

Furthermore, CSL is in the process of making a major acquisition. It is aiming to acquire Vifor Pharma later this year, which will add key renal therapies to its portfolio and development pipeline.

Citi is a fan and has a buy rating and $335.00 price target on CSL’s shares. Its analysts note that the “latest data points to continued improvement in plasma collection and strong underlying demand.”

Goodman Group (ASX: GMG)

Another blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties with exposure to key growth markets such as ecommerce.

Goodman has continued to experience strong demand for its properties in FY 2022. This has led to strong rental growth and a sky high occupancy rate.

In light of this strong form, management has just upgraded its earnings guidance again. It is now expecting its earnings per share to grow 23% in FY 2022.

The team at Goldman Sachs expect this solid form to continue. The broker highlights that “GMG offers an estimated FY22-24e earnings CAGR of ~13%, screening more favourably on a growth adjusted basis relative to the coverage average of ~8%.”

As a result of this positive outlook, this week the broker has a reiterated its buy rating with an improved price target of $25.40.

The post 2 top blue chip ASX 200 shares to buy now according to experts appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why I would invest $10,000 into these ASX shares today
• Is the Telstra share price cheap compared to other ASX 200 shares?
• Why CSL shares are ‘going to deliver’ in 2022: fund manager
• ‘Future-proof your portfolio’: experts pick 3 quality growth ASX shares to buy

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

from The Motley Fool Australia https://ift.tt/FV07DmM

Today, the S&P/ASX 200 Index (ASX: XJO) mimicked the solid performance witnessed on Wall Street last night. This move was sustained despite Australian wage growth data coming in under expectations. At the end of the session, the benchmark index finished 0.99% higher at 7,182.7 points.

On another day of green markets, materials were the sector crossing the finish line with the best performance with a gain of 2.5%. Following closely behind were solid rallies across tech, real estate, and industrials.

The root cause behind today’s strength might be a consequence of US data showing a 0.9% uplift in retail spending last night. Though, tomorrow we will see how markets react to the UK inflation rate hitting a 40-year high of 9%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Mercury NZ Ltd (ASX: MCY) was the biggest gainer today. Shares in the renewable electricity generator climbed 5.99% despite there being no new announcements hitting the market. Find out more about Mercury NZ here.

The next best performing ASX share across the market today was Summerset Group Holdings Ltd (ASX: SNZ). The retirement village operator received a 5.98% boost to its share price today without any news to fuel the optimism. Uncover the latest Summerset Group Holdings details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Mercury NZ Ltd (ASX: MCY)	$5.31	5.99%
Summerset Group Holdings Ltd (ASX: SNZ)	$9.93	5.98%
Champion Iron Ltd (ASX: CIA)	$7.37	5.29%
Paladin Energy Ltd (ASX: PDN)	$0.71	5.19%
South32 Ltd (ASX: S32)	$4.70	5.15%
Corporate Travel Management Ltd (ASX: CTD)	$22.39	5.07%
Flight Centre Travel Group Ltd (ASX: FLT)	$2.40	4.80%
Seven Group Holdings Ltd (ASX: SVW)	$21.20	4.74%
Mineral Resources Ltd (ASX: MIN)	$19.64	4.52%
Lynas Rare Earths Ltd (ASX: LYC)	$60.77	4.49%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• 3 ASX shares you might be surprised to learn pay dividends

Motley Fool contributor Mitchell Lawler has positions in Lynas Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited and Flight Centre Travel Group Limited. 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://ift.tt/vVUE9LC

The legendary investor Warren Buffett once famously said that his favourite length of time to own a share is forever. It’s a sentiment that this writer agrees wholeheartedly with. But the world is a complex and ever-changing place. Thus, it’s hard to really know for sure if a company has a place in one’s portfolio forever.

In 1992, for example, Blockbuster Video might have seemed like a buy-and-hold-forever kind of company. Fast forward to the late 2000s and it was becoming clear that Blockbuster’s future was looking increasingly bleak.

Even Buffett doesn’t quite put his money where his mouth is all of the time. He has been selling plenty of his shares in recent years, after all.

But in my opinion, Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is about as close as you can get to a ‘forever ASX share’. Here are two reasons why:

Soul Patts has been succeeding for decades

Soul Patts has been around for longer than the ASX has. It can trace its roots back to the 19th century. Over the decades since, the company has slowly transformed into an investment house of sorts. It conservatively manages its capital for the long-term benefit of its shareholders, a process it is continually refining.

But it has done a pretty decent job of building a long-term track record of performance. In a company presentation in March, Soul Patts claimed that its shares had averaged a compounded annual return of 14.5% since 1981. Not too many companies can boast a record of that length and calibre. What’s more, Soul Patts has also given its investors an annual dividend increase every year since 2000.

An unusually diversified ASX share

Most ASX shares are inherently undiversified since they represent ownership of a single business. But Soul Patts is different. It owns large chunks of many other ASX shares within its investment portfolio. These include telco TPG Telecom Ltd (ASX: TPG), coal miner New Hope Corporation Limited (ASX: NHC), and construction materials company Brickworks Ltd (ASX: BKW). What’s more, it also owns a bevvy of unlisted assets too, which further diversifies its portfolio.

So Soul Patts is a diversified investment with a long, long track record of delivering outperformance and rising dividends. That’s why I don’t ever plan on selling this ASX dividend share.

The post I’ll never sell this ASX dividend share. Here’s why appeared first on The Motley Fool Australia.

More reading

• The Soul Patts dividend is being paid today. Here’s what you need to know
• These ASX shares pay you to own them
• 2 ASX dividend shares that keep giving investors pay rises
• Soul Pattinson share price rises after electric deal for Ampcontrol
• Is the Soul Pattinson share price a buy after falling over 10% in 2022?

Motley Fool contributor Sebastian Bowen has positions in 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 and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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://ift.tt/bGMRyHq