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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 metaverse is a hot technology trend that’s currently in its early phases of growth, but it is expected to become massive in the long run thanks to its ability to connect people spread across the globe in 3D virtual worlds.

In simpler words, people can work, play, learn, and socialize within the metaverse from the comfort of their homes with the help of mixed reality devices that support both augmented reality and virtual reality. Not surprisingly, investments in this space are expected to grow rapidly in the coming years. A third-party estimate forecasts that the metaverse market could grow at an annual rate of nearly 48% through 2029, hitting a size of just over $1.5 trillion at the end of the forecast period.

Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) are two companies that can help investors win big from this trend. Let’s see why the metaverse could send the stocks of these tech giants on a bull run.

1. Nvidia

Nvidia stands to gain from the metaverse in multiple ways. In fact, the graphics specialist is already reaping the benefits of this emerging tech trend by powering Meta Platforms‘ (NASDAQ: FB) supercomputer that’s supposed to help support the metaverse’s growth. Meta’s Artificial Intelligence (AI) Research SuperCluster (RSC) supercomputer is powered by just over 6,000 Nvidia graphics processing units (GPUs). The supercomputer will eventually be powered by 16,000 Nvidia GPUs once Meta completes the expansion of the same.

Meta believes that “the work done with RSC will pave the way toward building technologies for the next major computing platform — the metaverse, where AI-driven applications and products will play an important role.” This means that the demand for Nvidia’s GPUs should ideally boom in the long run as data centers, servers, and supercomputers will have to be upgraded to tackle the real-time delivery of 3D content to millions of users around the globe.

This, however, is not the only opportunity for Nvidia in the metaverse. The company estimates that, along with chips, the metaverse will also create robust demand for enterprise software. According to Nvidia, the hardware and software opportunity together represent a $300 billion addressable market.

Now, we have seen how Nvidia tends to gain on the hardware side of things from the metaverse. The good part is that its software opportunity is also taking off. Known as the Omniverse, Nvidia already has a scalable development platform that allows creators and developers to make virtual worlds, especially digital twins — virtual replicas of physical objects and spaces in the real world.

What’s more, Nvidia claims that more than 400 companies have been evaluating the adoption of its Omniverse platform. Automotive giant BMW has tapped the Omniverse to create a digital twin of a factory, while Ericsson is using the platform to simulate and visualize 5G wireless networks before launching them.

All this indicates that Nvidia’s business could get a nice shot in the arm thanks to the metaverse, and that could play a substantial role in boosting the company’s already excellent pace of growth. Nvidia finished fiscal 2022 (which ended on Jan. 30) with a 61% year-over-year increase in revenue to $26.9 billion, and the metaverse opportunity indicates that it is scratching the surface of a massive opportunity.

Analysts expect Nvidia to clock annual earnings growth of 30% for the next five years, and the addition of opportunities such as the metaverse could help it grow at a faster pace and supercharge the stock in the long run.

2. Microsoft

Microsoft is another tech giant that’s on track to win from the metaverse in multiple ways, including the lucrative video gaming space.

Earlier this year, Microsoft announced that it would be acquiring Activision Blizzard in a deal worth $68.7 billion. While announcing the acquisition, Microsoft’s press release said that the “acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console, and cloud, and will provide building blocks for the metaverse.” It is worth noting that Microsoft already has a solid base in the gaming business thanks to its Xbox consoles, the Game Pass video game subscription service, and a big library of gaming titles, thanks to its ownership of several gaming studios.

This puts Microsoft in a solid position to tap into the metaverse gaming opportunity, which is expected to grow at a terrific pace. Cryptocurrency asset management firm Grayscale estimates that virtual gaming worlds could generate $400 billion in revenue by 2025 as compared to $180 billion in 2020. Almost all the virtual gaming revenue will be generated by in-game spending, so Activision’s user base of 400 million will give Microsoft access to a large pool of players from whom it can drive incremental spending to power the growth of its gaming business in the metaverse.

Beyond gaming, Microsoft has already dived into the metaverse with Mesh for Microsoft Teams. This product, which is built on top of the popular Microsoft Teams collaboration tool, will allow people in different locations to attend meetings in immersive 3D spaces through their virtual avatars. Microsoft Teams has a user base of over 250 million, so the company can cross-sell its metaverse collaboration tool to a huge audience.

Meanwhile, Microsoft also plans to take advantage of the application of the metaverse in the industrial sector as well, where it plans to tap the growing demand for digital twins. This could turn out to be a smart move from Microsoft, given that the digital twin market is expected to generate $61 billion in revenue by 2027 as compared to $10 billion last year, according to Mordor Intelligence.

Throw in the company’s prospects in other lucrative markets such as cloud computing and video gaming, and it won’t be surprising to see Microsoft sustain its impressive growth in the long run. The company’s revenue was up 18% year over year in the third quarter of fiscal 2022 (ended March 31) to $49.4 billion, while adjusted earnings had shot up 14%.

Analysts expect Microsoft’s earnings to clock an annual growth rate of 16% for the next five years, but don’t be surprised to see it do better than that, thanks to lucrative growth drivers such as the metaverse. That’s why buying Microsoft stock looks like a no-brainer right now, as it is trading at 26 times trailing earnings, a discount to its five-year average multiple of 37. 

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

The post 2 top metaverse stocks I think are ready for a bull run appeared first on The Motley Fool Australia.

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Harsh Chauhan has no positions in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Meta Platforms, Inc., Microsoft, and Nvidia. The Motley Fool Australia has recommended Activision Blizzard, Meta Platforms, Inc., and 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 Imugene Limited (ASX: IMU) share price has shot up during early afternoon trade.

This comes after the company announced an update on its phase 1 clinical trial of its novel cancer-killing virus, CF33-hNIS.

Developed by City of Hope, the oncolytic virus has demonstrated in shrinking solid tumours in preclinical laboratory and animal trials. This includes colon, lung, breast, ovarian and pancreatic cancer tumours.

City of Hope is one of the largest cancer research and treatment organizations in the United States.

At the time of writing, the clinical stage immuno-oncology company’s shares are 4.24% higher to 17.2 cents.

Imugene commences Vaxinia study

In its release, Imugene advised it has dosed the first patient in the phase 1 clinical trial of CF33-hNIS (Vaxinia).

This has stirred up excitement among investors, sending the Imugene share price higher.

Management noted the primary goal of the study is to evaluate the safety of CF33-hNIS when used in people with advanced solid tumours.

At first, a low dose of CF33-hNIS will be administered to cancer patients with metastatic or advanced solid tumours. This will be for those who have had at least two prior lines of standard of care treatment.

The investigational treatment will be delivered either as an injection directly into tumours or intravenously.

Once patients have been treated with CF33-hNIS and acceptable safety has been demonstrated, new study participants will progress to the next stage.

Those volunteers will receive the experimental oncolytic virus in combination with the immunotherapy pembrolizumab. The latter is an engineered antibody that improves the immune system’s ability to fight cancer-causing cells.

The study aims to recruit 100 patients across approximately 10 sites in the United States and Australia.

The trial is anticipated to run for approximately 24 months and will be funded from Imugene’s existing cash reserves.

Imugene managing director and CEO Leslie Chong commented:

The dosing of the first patient in our Vaxinia study is a significant milestone for Imugene and clinicians faced with the challenge of treatment for metastatic advanced solid tumours.

Professor Yuman Fong and the City of Hope team have provided outstanding research. In addition to the positive preclinical results, we’re incredibly eager to unlock the potential of Vaxinia and the oncolytic virotherapy platform.

Imugene share price snapshot

Despite today’s gains, the Imugene share price has been on a trending decline over the past 12 months. Its shares are down almost 50%, with year to date losses of around 57%.

The company’s shares hit a 52-week low of 15 cents last week, before moving in circles.

Based on the current price, Imugene has a market capitalisation of roughly $965.05 million.

The post Here’s why the Imugene share price just got a boost appeared first on The Motley Fool Australia.

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

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ASX bargain shares aren’t easy to find despite the recent market sell-off. But two sectors stand out according to a top broker.

The sharp drop in the S&P/ASX 200 Index (ASX: XJO) and global equities over the past few weeks is driven by inflation fears, geopolitical risks and rising interest rates.

But those hoping for a sustained bounce could be disappointed as Macquarie Group sees limited upside.

ASX shares are no bargain buy

This is because the broker reckons ASX shares and United States equities are still expensive, even after the pullback.

Macquarie says:

Based on current real yields, the All-Industrials PE is ~10% too high, with >20% downside for Telecoms and Technology.

Even though US stocks have de-rated, valuations are still higher today than they were before the 20% correction in 4Q18.

Rising rates not priced fully priced into markets

The fourth quarter of 2018 was the last time the US Federal Reserve hiked rates and wound back quantitative easing.

The Reserve Bank of Australia (RBA) is joining its US counterpart in lifting rates. But the markets are not pricing in much of the monetary tightening, which will slow economic growth.

Macquarie adds:

The RBA and Fed are also early in their tightening cycles and are likely to hike at a faster pace over coming months to try and bring inflation under control.

We are yet to see the EPS downgrade cycle that comes from central bank hikes. There is also the risk the Fed hikes the US into a recession in 2023/24, and in this scenario, we caution the All-Industrials PE in recessions since 1960 was ~11x, less than the 18.2x in the 2020 COVID recession.

ASX shares to buy in this environment

However, this doesn’t mean there aren’t ASX value buys in this market. Macquarie highlights resources and defensives as two categories that its strategy portfolio is overweight in.

High commodity prices are one reason why the ASX 200 is outperforming the US benchmarks during this sell-off.

Macquarie believes this thematic will persist. It reckons China will launch a stimulus program to restart its economy, which will give Australia a further boost.

ASX value shares to put on your buy list

The ASX resources shares that Macquarie believes are best placed are the South32 Ltd (ASX: S32) share price, BHP Group Ltd (ASX: BHP) share price, and Rio Tinto Limited (ASX: RIO) share price.

These shares have high current earnings and further earnings per share (EPS) upside in FY23 if spot commodity prices stay where they are or move higher.

Other ASX shares that the broker is urging investors to buy include the Incitec Pivot Ltd (ASX: IPL) share price and Mirvac Group (ASX: MGR) share price.

The post Macquarie reveals 2 sectors where bargain ASX shares still exist appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited, Macquarie Group Limited, Rio Tinto Ltd., and South32 Ltd. 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Coles Group Ltd (ASX: COL) is one of the larger businesses on the ASX. But is Coles or rival Woolworths Group Ltd (ASX: WOW) a better ASX dividend share?

Coles is the smaller business of the two. Coles has a market capitalisation of $25 billion, according to the ASX, while Woolworths has a market capitalisation of around $45.7 billion.

But it isn’t the size of the business that decides its dividend credentials.

Dividend yield

The size of the dividend yield can be an important factor for investors focused on income.

Different analysts have different expectations for the business and what dividends it might pay over the next couple of years.

Morgans thinks that Coles is going to pay a grossed-up dividend yield of 4.7% in FY22. In FY23, Morgans thinks the company will then pay a grossed-up dividend yield of 4.9%.

Meantime, the broker has estimated a grossed-up dividend yield of 3.3% for Woolworths in FY22. Morgans also projects dividend growth from Woolworths in FY23, forecasting a grossed-up dividend yield of 3.9% in FY23.

Coles has a materially higher dividend yield than Woolworths, according to Morgans’ projections.

Recent dividend growth

The most recent result from both of these businesses was the FY22 half-year result.

There wasn’t any growth from either of them but Coles, again, did better on the dividend front.

In the report for the first six months of FY22, Coles decided to maintain its interim dividend at 33 cents per share despite a slight reduction in its earnings per share (EPS).

Meanwhile, Woolworths declared an interim dividend of 39 cents per share. Woolworths said this was a 2.5% reduction after excluding Endeavour Group Ltd (ASX: EDV). Woolworths’ continuing operations (before significant items) EPS fell 5.1% to 64.3 cents.

In the most recent results, Coles provided shareholders with more dividend stability than Woolworths did.

Recent sales growth

One of the best ways that an ASX dividend share can most likely provide stability and growth of the dividend is by growing revenue and profit.

Both businesses recently released their third-quarter trading updates.

In its Australian food division, Woolworths reported sales growth of 5.4% to $11.4 billion. Whereas Coles supermarkets saw sales growth of 4.2% to $8.2 billion.

Total Woolworths continuing operations sales increased 9.7%, largely thanks to its business to business division. Coles’ total sales increased 3.9% to $9.3 billion.

In terms of sales growth, Woolworths did a little better than Coles.

Coles share price valuation

While the price-to-earnings (P/E ratio) isn’t everything, it can show which business is better value if they are similar businesses in terms of growth and/or quality.

According to Morgans, the Woolworths share price is valued at 32 times FY22’s estimated earnings and 27 times FY23’s estimated earnings.

Morgans’ estimates imply that the Coles share price is valued at 25 times FY22’s estimated earnings and 24 times FY23’s estimated earnings.

While Woolworths may have a claim to be a higher-quality business than Coles, I think the lower valuation makes up for it. The higher dividend yield and stability make me believe that Coles is the better ASX dividend share than Woolworths right now.

The post Why I think Coles is a better ASX dividend share than Woolworths appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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 Copper Mountain Mining Corp (ASX: C6C) share price is soaring today.

The explorer’s share price has jumped almost 15% to $2.97 at the time of writing. In contrast, the S&P/ASX 200 Index (ASX: XJO) is up 1.01% today.

With no price-sensitive news released by the ASX mining share today, let’s take a look at what has been happening to this company lately.

Copper prices lift overseas

Copper prices bounced in overseas markets on Tuesday amid the hope China could soon end its stringent COVID-19 lockdowns. According to mining.com, copper prices hit $4.28 per pound at one point on the Comex market in New York.

Commerzbank analyst Daniel Briesemann said:

Shanghai is coming out of lockdown gradually and that is giving rise to demand hopes for cyclical commodities in particular.

Copper Mountain shares followed in the footsteps of overseas listings. The company’s share price soared 18.08% on the Frankfurt Stock Exchange yesterday and 17.9% on the Tokyo Stock Exchange.

What else might be impacting the ASX mining share price?

The company’s flagship project is the Copper Mountain Mine in Southern British Columbia. Copper Mountain also owns the Eva Copper Project in Queensland.

Last week, the company hosed down media speculation the company was planning to sell the Eva Copper Project. In a statement released to the market, Copper Mountain said:

The company’s policy is not to comment on market speculation. The company notes that it regularly reviews strategic opportunities to enhance shareholder value, and that there are no pending transactions with respect to the Eva Copper Project of any nature to note at this time.

Share price snapshot

The Copper Mountain share price has lost nearly 40% over the past 12 months and is down 18% in the year to date.

While the company’s shares have lost nearly 22% in the past month, they are currently enjoying a reversal of fortune, trading 6% higher over the past week.

In comparison, the benchmark ASX 200 index has climbed 1% in a year.

The post Why is this ASX mining share surging 15% today appeared first on The Motley Fool Australia.

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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 Magellan Financial Group Ltd (ASX: MFG) share price is marching higher during the lunch hour on Wednesday.

Magellan shares closed yesterday at $14.56. They are currently trading for $14.85, up 1.96% after earlier posting gains of almost 5%.

Here’s what looks to be piquing ASX investors’ interest in the specialist funds manager today.

Barclays ups investment in Barrenjoey

The Magellan share price is in the green today. It follows an announcement that British headquartered bank Barclays has invested another $75 million cash in Aussie financial services firm Barrenjoey.

Magellan launched Barrenjoey in September 2020. Barclays invested $45 million in the start-up at the time.

The increased investment by Barclays sees Magellan’s shareholdings of Barrenjoey slip to 36.4% from 40%. It brings Barclays’ holdings up to 18.2% from 9.9%.

Magellan said it remains “committed to the long-term success of Barrenjoey”.

What did management say?

Commenting on the $75 million cash investment, Paul Compton, president of Barclays Bank, said:

We are delighted to have the opportunity to increase our shareholding with Barrenjoey. Since our foundation investment in September 2020, Barrenjoey management has delivered on their plans and we have a strong working relationship across our respective platforms.

Providing global solutions and products to the Australian client base is at the core of our strategic partnership and this investment will only strengthen it further.

Brian Benari, CEO of Barrenjoey, added:

Our strategic partnership with Barclays has been instrumental to our early success, leveraging their global investment banking and securities franchises and balance sheet.

Importantly, given the rapid growth of our Markets business and the launch of our Fixed Income Derivative and Equity Financing businesses, Barclays’ investment further reinforces our joint commitment to support our Australian and global client base.

Magellan share price snapshot

The Magellan share price has sold off sharply over the past 12 months, down 68%. That compares to a 1% gain posted by the S&P/ASX 200 Index (ASX: XJO) over the full year.

The post Why is the Magellan share price marching higher today? appeared first on The Motley Fool Australia.

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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 A2 Milk Co Ltd (ASX: A2M) share price is rangebound so far on Wednesday, now trading 0.24% higher at $4.16.

Reports have surfaced that A2 Milk is set to face a further class action from shareholders for allegedly engaging in misleading and deceptive conduct.

What’s the situation?

Shine Lawyers has launched a class action on behalf of Australian and, now, New Zealand A2 Milk shareholders.

Shine had previously filed a class action proceeding against the company in the Supreme Court of Victoria in November last year. It followed similar action by Slater & Gordon lawyers in October.

Today, Shine Lawyers is moving to include New Zealand shareholders in its class action. It said the proceedings apply to shareholders “who suffered losses after acquiring A2 Milk shares (A2M) on the ASX or on the NZX following a 62% drop in market value in FY21”.

Shine advised shareholders who acquired shares between 19 August 2020 and 7 May 2021 may be eligible to join the class action.

A statement from the legal firm said:

The class action alleges that between 19 August 2020 and 7 May 2021, A2M engaged in misleading and deceptive conduct, breaching its continuous disclosure obligations, and failing to adequately disclose future trade plans.

It is further alleged that by 19 August 2020, A2M was, or ought to have been aware that their FY21 guidance, and subsequent representations, did not adequately take into account a number of factors known to A2M which ultimately impacted the Company’s financial performance, resulting in a 62% drop in market value in FY21. 

These include a decline in daigou sales from the company’s cross border e-commerce channel (CBEC) and the corresponding decline in CBEC business due to this impact, Shine says.

Philip Skelton QC said that investors were “unable to make informed decisions as to whether to buy, sell or retain A2 Milk shares” due to the company’s moves, meaning “many investors lost substantial sums as a result of acting on that misleading information”, as reported by The Australian.

A2 Milk response

A2 Milk issued a statement today, confirming it has been notified a proceeding has been filed against the company in the High Court of New Zealand. It said:

The Company considers that it has at all times complied with its disclosure obligations, denies any liability and will vigorously defend the proceedings.

A2 Milk share price snapshot

In the last 12 months, the A2 Milk share price has slipped more than 19% into the red after incurring a 24% loss this year to date.

Losses have extended over the past month of trade too with shares sliding another 11.5% in that time.

The post A2 Milk share price wavers amid class action news appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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Those invested in AMP Ltd (ASX: AMP) shares for the dividends have likely been bitterly disappointed over the last few years.

Aside from a special dividend paid in 2020, the S&P/ASX 200 Index (ASX: XJO) company hasn’t handed investors a portion of its profits since 2019.

Previously, the financial services provider said it would reinvestigate potential dividends following its demerger.

But, with its plan to split now scrapped, when might investors hear word of a dividend from AMP? Let’s take a look.

When might AMP shares next pay a dividend?

The last few years have been tough on AMP and its share price. The company’s stock has tumbled 77% over the last five years. It’s trading at $1.13 today.

For those who missed it, the company’s downfall was seemingly spurred by the financial services royal commission. The decision to drop its dividends in financial year 2018 and ditch them entirely in financial year 2019 only exacerbated the pain.

Ultimately, the embattled company came up with a plan to return to growth by splitting in two. AMP noted it would review its capital management strategy and dividends following the demerger.

It was to break into AMP Limited and AMP Capital’s private markets business, the latter dubbed Collimate Capital.

If that name sounds familiar, it’s likely because the business was recently sold for around $2 billion. Thus, the demerger won’t be going ahead.

So, when will the company consider paying dividends now? Well, that’s ultimately a mystery.

However, it’s expecting to hand most of the proceeds of the Collimate Capital sale to shareholders.

That will likely see AMP undergoing an on-market share buyback or capital return. The latter could take the form of a special dividend, reports The Motley Fool’s Brendon Lau.

Additionally, the company’s annual general meeting this Friday might provide more answers on future dividends. As might its half-year results, set to drop in August.

It might be worth keeping hopes low for now, though.

Back in January, my Fool colleague James Mickleboro reported broker Citi wasn’t expecting AMP shares to pay a dividend until financial year 2024.

The post When might the dividend drought break for AMP shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 month? Then have a look at the ones listed below that have been given buy ratings and tipped to pay big dividends.

Here’s what you need to know about these dividend shares:

Australia and New Zealand Banking Group (ASX: ANZ)

This banking giant could be a dividend share to buy. Particularly given the positive outlook for interest rates in Australia and its solid performance so far in FY 2022. In respect to the latter, ANZ recently released its half-year results and reported cash earnings from continuing operations of $3,113 million. This represents a 4% increase over the prior corresponding period.

In response to its half-year update, the team at Citi maintained their buy rating and $30.75 price target on the bank’s shares.

In addition, the broker has pencilled in fully franked dividends per share of 147 cents in FY 2022 and then 170 cents in FY 2023. Based on the current ANZ share price of $25.85, this implies yields of 5.7% and 6.6%, respectively, over the next two years.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is mining giant BHP. It is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Thanks to strong commodity prices, these operations are generating high levels of free cash flow. And with BHP’s balance sheet remaining robust, the majority of this free cash flow is likely to find its way to shareholders in the form of dividends.

Citi is also very positive on BHP and has a buy rating and $56.00 price target on its shares.

It recently commented that there is “too much cash flow to ignore.” The broker expects this to underpin fully franked dividends per share of ~$4.86 in FY 2022 and then ~$4.89 in FY 2023. Based on the current BHP share price of $46.99, this implies yields of 10.3% and 10.4%, respectively.

The post Experts name 2 ASX dividend shares to buy with big fully franked yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I have supreme confidence in: fund manager
• Is the Telstra share price cheap compared to other ASX 200 shares?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

What happened

Shares of several U.S.-based electric vehicle (EV) companies are moving higher today and investors can probably thank Rivian Automotive (NASDAQ: RIVN) for that. Shares of Rivian jumped as much as 11.2% in early trading today, and that helped the stocks of other EV names, including Lucid Group (NASDAQ: LCID) and Nikola (NASDAQ: NKLA), to also move higher by 6% and 6.8%, respectively. 

All three stocks cooled down somewhat after the early jumps. As of 12:20 p.m. ET, shares of Rivian, Lucid, and Nikola were holding gains of 8.6%, 1.6%, and 2.2%, respectively. And there was good reason as to why Rivian remained the strongest of the group. 

So what

After the entire EV sector has seen recent stock declines driven by manufacturing and cost headwinds, Rivian CEO RJ Scaringe injected some new confidence with a filing yesterday showing he just bought more than $1 million worth of his company’s stock. Investors often say that there can be many reasons to sell, but there’s only one reason why an insider adds to holdings of their company’s common stock — they expect it will move higher. 

In a note that seems to support Scaringe’s thoughts, widely followed Morgan Stanley analyst Adam Jonas just maintained the equivalent of a buy rating on Rivian shares. Though the analyst lowered the stock’s price target from $85 to $60 per share, that still represents an increase of more than 140% above Monday’s closing price. 

Now what

Earlier this year, Rivian and Lucid both sharply reduced vehicle production targets for 2022. But both also just maintained those reduced projections when they reported first-quarter results. Rivian had said that even though it had the equipment and processes in place to produce 50,000 of its electric vehicles this year, it only expects to make 25,000 due to parts shortages from supply chain constraints. 

In the Morgan Stanley note, Jonas said he doesn’t even expect Rivian to hit that target. He believes the company may only produce 15,500 vehicles this year. He has also reduced production estimates for 2023, 2025, and 2030. But based on his price target, he still believes there is plenty of upside for the shares with his more conservative view looking ahead. 

Beyond solving near-term supply chain issues, Rivian and Lucid expect to grow production in the next several years with new manufacturing plants being brought online. After the CEO showed he also seems to think that growth will lead to a rising stock price, investors took up several names in the sector today. 

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

The post Why Rivian is helping drive electric vehicle stocks higher today appeared first on The Motley Fool Australia.

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Howard Smith has positions in Lucid Group, Inc. and Nikola 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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