Tag: Motley Fool

  • 5 things to watch on the ASX 200 on Monday

    Broker looking at the share price on her laptop with green and red points in the background.

    Broker looking at the share price on her laptop with green and red points in the background.

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a very disappointing fashion. The benchmark index sank 2.2% to 7,205.6 points.

    Will the market be able to bounce back from this on Monday? Here are five things to watch:

    ASX 200 expected to tumble

    The Australian share market looks set to start the week in the red following a poor night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.3%, the S&P 500 dropped 0.6%, and the Nasdaq tumbled 1.4%.

    Oil prices rise again

    Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a decent start to the week after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price rose 1.4% to US$109.77 a barrel and the Brent crude oil price climbed 1.5% to US$112.39 a barrel. Oil prices rose after supply concerns continued.

    Westpac half-year results

    The Westpac Banking Corp (ASX: WBC) share price will be on watch when Australia’s oldest bank releases its half-year results. According to a note out of Goldman Sachs, for the six months ended 31 March, its analysts expect the banking giant to report cash earnings of $3,146 million. This will be an 11% decline on the prior corresponding period. A net interest margin of 1.82% and a 60 cents per share fully franked interim dividend are also expected.

    Gold price rises

    Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price rose on Friday night. According to CNBC, the spot gold price is up 0.4% to US$1,882.8 an ounce. However, this wasn’t enough to stop the precious metal from recording its third consecutive weekly decline amid rising rates.

    REA share price is in the buy zone

    The REA Group Limited (ASX: REA) share price was sold off last week after the property listings company’s third-quarter update disappointed. Goldman Sachs appears to see this as a buying opportunity. This morning the broker has reiterated its buy rating with a trimmed price target of $164.00.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    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 REA Group Limited 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.

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  • Top brokers name 3 ASX shares to sell next week

    Keyboard button with the word sell on it.

    Keyboard button with the word sell on it.

    Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

    Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

    AMP Ltd (ASX: AMP)

    According to a note out of UBS, its analysts have retained their sell rating and 90 cents price target on this financial services company’s shares. Although AMP’s latest funds under management update was in line with the broker’s expectations, its assets under management disappointed. In light of this and its belief that AMP’s shares are expensive, the broker appears to see no reason to change its recommendation at this point. The AMP share price ended the week at $1.18.

    Flight Centre Travel Group Ltd (ASX: FLT)

    A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on this travel agent’s shares to $15.55. Citi was disappointed with Flight Centre’s quarterly update, which revealed softer than expected revenue margins. It feels that this and its break-even total transaction value requirement points to the company taking on very low margin revenue. The Flight Centre share price was fetching $20.98 on Friday.

    Magellan Financial Group Ltd (ASX: MFG)

    Analysts at Morgan Stanley have retained their underweight rating and $11.00 price target on this fund manager’s shares. This follows the release of Magellan’s funds under management update, which the broker estimates saw $1.5 billion flow out of the company’s funds last month. And while Morgan Stanley acknowledges that Magellan’s investment performance improved in April, it is still underperforming on longer term measures, which is unlikely to be supportive on fund inflows. The Magellan share price ended the week at $17.25.

    The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 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.

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  • Top brokers name 3 ASX shares to buy next week

    Red buy button on an apple keyboard with a finger on it.

    Red buy button on an apple keyboard with a finger on it.

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Australia and New Zealand Banking Group Ltd (ASX: ANZ)

    According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this banking giant’s shares to $32.00. UBS was pleased with ANZ’s performance during the first half of FY 2022 and notes that its results came in ahead of expectations. Though, the broker acknowledges that the quality of the earnings beat was low and driven by write-backs. Overall, the broker feels the bank’s shares are cheap, particularly given its improving outlook as rates rise. The ANZ share price ended the week at $26.76.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this pizza chain operator’s shares to $108.42. Citi highlights that Domino’s US has reported a recovery in the carryout channel. Assuming the carryout channel is also recovering in other European markets, the broker expects this to be a positive for the company, particularly in markets like France where it had a strong carryout business pre-Covid. The Domino’s share price was fetching $66.29 at Friday’s close.

    Lovisa Holdings Ltd (ASX: LOV)

    Another note out of Citi reveals that its analysts have retained their buy rating but trimmed their price target on this fashion jewellery retailer’s shares to $20.40. Citi notes that Lovisa latest trading update reveals that its strong sales growth has continued despite global supply constraints. Looking ahead, the broker is bullish on Lovisa due to its long term growth potential underpinned by existing markets and potential new markets. The Lovisa share price ended the week at $16.63.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • The New Hope share price has rallied 60% in 2022. Is there more to come?

    New Hope share price ASX mining shares buy coal miner thumbs up

    New Hope share price ASX mining shares buy coal miner thumbs up

    The New Hope Corporation Limited (ASX: NHC) share price has risen by close to 60% in 2022. Could the coal miner keep going up?

    New Hope is one of the largest coal miners in Australia. It currently has a market capitalisation of more than $3 billion according to the ASX.

    What has happened to the New Hope share price?

    A couple of months ago the business announced its FY22 half-year result.

    With that result, it disclosed that the average sales price achieved at 31 January 2022 was A$192.38 per tonne. That represented an increase of 147% compared to a year ago. The closing realised price for the reporting period was A$236.66 per tonne.

    The miner reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $554.4 million, which was a rise of 583%.

    It generated $330.4 million, which compares to a loss of $55.4 million in the prior corresponding period.

    The CEO of New Hope, Rob Bishop, said that the company is “well-positioned to continue generating strong, sustainable shareholder returns, with demand for high-quality, lower-emissions thermal coal expected to remain robust in the short to medium term as supply remains constrained.”

    Mr Bishop pointed to “strong demand and lower than normal stock levels held by customers” as reasons for why the thermal coal price has been pushed well above the long-term average. New Hope said that its forward sales book will support “robust returns”.

    The business grew its interim dividend from 4 cents to 17 cents, while also declaring a 13 cents per share special dividend.

    Is the New Hope share price an opportunity?

    According to reporting by the Australian Financial Review, Merlon Capital Partners lead portfolio manager Neil Margolis thought that the New Hope share price was attractive in 2020.

    Mr Margolis points out that despite the large rise of New Hope, it is still on a cash flow yield “well north” of 50%. However, the fund manager doesn’t think a US$300 per tonne spot price will be maintained. For that reason, Merlon has been taking some profits.

    However, Mr Margolis does still see value in the business, stating:

    Being screened out by many large institutional investors on ESG is a reason it still offers value. We favour active ownership over divestment and have engaged constructively with the board indicating our preference for existing mines over expansion, responsible site remediation and the return of all surplus cash-flows and franking credits to shareholders, rather than pursuing capital destructive growth projects and acquisitions.

    Expectations for FY22

    The forecast on Commsec is that New Hope will generate $1.04 of earnings per share (EPS) and pay an annual dividend of 73 cents per share.

    That puts the New Hope share price at 3.5x FY22’s estimated earnings with an estimated FY22 grossed-up dividend yield of 29%.

    The post The New Hope share price has rallied 60% in 2022. Is there more to come? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in New Hope right now?

    Before you consider New Hope, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and New Hope wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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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 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 CSL share price has tumbled 8% this year. Here’s why these top brokers still have faith

    Medical or healthcare workers grasp hands in the universal expression of teamworkMedical or healthcare workers grasp hands in the universal expression of teamwork

    Leading brokers are keeping their faith in stalwart blue-chip ASX share, CSL Limited (ASX: CSL). This is despite the biotherapies company’s shares trading 20% down on their pre-pandemic peak of $336.40.

    CSL finished the session on Friday at $268.16, down 2.93% for the day and almost 8% down year-to-date.

    A major reason for the CSL share price being this low is two very tough years during the pandemic. CSL relies on blood plasma donations to develop its suite of medicines and vaccines. COVID-19 lockdowns around the world, particularly in the United States, made this incredibly difficult.

    What has been happening lately for CSL?

    As my Fool colleague Monica reported on Tuesday, plasma collections are now roughly back to pre-pandemic levels. CSL is also using new technology to reduce the time it takes to donate plasma by 30%.

    In addition, CSL is awaiting the finalisation of its acquisition of Swiss company, Vifor Pharma. Vifor is a world leader in the development and manufacture of products to treat kidney disease and iron deficiency. CSL recently told the ASX that everything was on track for the purchase to be completed next month.

    The company also presented at the 2022 Macquarie Australia Conference in Sydney this week.

    So, what are the experts saying about CSL?

    Citi recently reaffirmed its buy rating on CSL with a share price target of $335 price target. This implies a potential 25% upside on Friday’s closing price.

    Bell Potter likes CSL’s leadership position in plasma therapies and also what the Vifor Pharma buy will do for the company. The broker explained:

    The soon to be completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency.

    The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.

    History of the CSL share price

    The CSL share price began a fantastic decade of growth in late 2011 when it was trading at about $30. Over about the next five years, CSL shares grew in value by 225%. They cracked the $200 mark in mid-2018 and the $300 mark in early 2020.

    CSL currently trades on a price-to-earnings (P/E) ratio of 52.79 and pays an annual dividend yield of 1.12%.

    The post The CSL share price has tumbled 8% this year. Here’s why these top brokers still have faith appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CSL right now?

    Before you consider CSL, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in CSL Ltd. 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.

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  • 3 high quality ETFs for ASX investors to buy this month

    ETF with different images around it on top of a tablet.

    ETF with different images around it on top of a tablet.

    If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the way to do it.

    But which ETFs could be top options right now? Listed below are three excellent ETFs that could be worth considering as long term investments:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    This popular ETF gives investors exposure to the growing Asian economy. The BetaShares Asia Technology Tigers ETF provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. BetaShares highlights that the technology sector is underrepresented in the Australian share market and may also provide a complement for investors with an existing allocation to U.S. based technology companies.

    BetaShares Crypto Innovators ETF (ASX: CRYP)

    The BetaShares Crypto Innovators ETF could be an ETF to consider if you’re interested in the high risk world of cryptocurrencies. BetaShares notes that the fund gives investors exposure to the growth potential of the crypto economy through a portfolio of companies that are at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto markets. Among its holdings you’ll find Coinbase, Core Scientific, Galaxy Digital, Riot Blockchain, and Silvergate.

    VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

    Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. When everybody’s favourite investor, Warren Buffett, looks for an investment, he has a preference for companies with sustainable competitive advantages or moats. VanEck has taken this into account and built a whole ETF around it. This ETF currently contains 52 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Boeing, Coca Cola, Kellogg Co, Meta Platforms (Facebook), Philip Morris, and Walt Disney.

    The post 3 high quality ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. 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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  • 3 high quality ETFs for ASX investors to buy this month

    ETF with different images around it on top of a tablet.

    ETF with different images around it on top of a tablet.

    If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the way to do it.

    But which ETFs could be top options right now? Listed below are three excellent ETFs that could be worth considering as long term investments:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    This popular ETF gives investors exposure to the growing Asian economy. The BetaShares Asia Technology Tigers ETF provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. BetaShares highlights that the technology sector is underrepresented in the Australian share market and may also provide a complement for investors with an existing allocation to U.S. based technology companies.

    BetaShares Crypto Innovators ETF (ASX: CRYP)

    The BetaShares Crypto Innovators ETF could be an ETF to consider if you’re interested in the high risk world of cryptocurrencies. BetaShares notes that the fund gives investors exposure to the growth potential of the crypto economy through a portfolio of companies that are at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto markets. Among its holdings you’ll find Coinbase, Core Scientific, Galaxy Digital, Riot Blockchain, and Silvergate.

    VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

    Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. When everybody’s favourite investor, Warren Buffett, looks for an investment, he has a preference for companies with sustainable competitive advantages or moats. VanEck has taken this into account and built a whole ETF around it. This ETF currently contains 52 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Boeing, Coca Cola, Kellogg Co, Meta Platforms (Facebook), Philip Morris, and Walt Disney.

    The post 3 high quality ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. 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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  • Analysts say investors should buy these top ASX shares

    Two brokers analysing stocks.

    Two brokers analysing stocks.

    There are a lot of shares to choose from on the Australian share market.

    In order to narrow things down for investors, listed below are two ASX shares that are highly rated by analysts. Here’s what they are saying about them:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The first ASX share for investors to look at is this pizza chain operator. Its shares have been having a tough year due to weakness in Japan and concerns over inflationary pressures.

    However, it is worth remembering that these issues are expected to be short-lived. In light of this, it may be best focusing on the long term, which looks very positive thanks to its store expansion plans.

    The team at Morgans remain positive on the company and believe recent share price weakness is a buying opportunity.

    The broker commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

    Morgans has an add rating and $100 price target on the company’s shares.

    Nitro Software Ltd (ASX: NTO)

    Another ASX share to look at is Nitro Software. It is the global document productivity software company behind the Nitro Productivity Suite. This suite offers businesses of all size integrated PDF productivity and eSignature tools.

    Its shares have also been hammered this year. This has been driven by a selloff in the tech sector, which has been felt hardest among loss-making companies. And while Nitro isn’t expected to be profitable for several years, it is well-funded and has a huge market opportunity to grow into in the future.

    Goldman Sachs is very positive on Nitro and sees it as a great long term pick for investors.

    It commented: “We appreciate that a material re-rate likely requires a change in sentiment towards unprofitable tech companies, however we think NTO screens attractively relative to tech peers and on a longer-term view. Our focus now shifts to NTO’s execution on its pipeline of new business and e-sign cross-sell opportunities, with concerns over balance sheet now eased. We see NTO as an attractive long-term growth opportunity at a discounted valuation.”

    Goldman has a buy rating and $2.35 price target on the company’s shares.

    The post Analysts say investors should buy these top ASX shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Dominos Pizza Enterprises Limited and Nitro Software 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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  • Broker names 2 of the ‘best’ ASX dividend shares to buy next week

    A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer

    A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer

    If you’re looking at dividend shares to buy, then you may want to check out the ones listed below that are on a Morgans’ best ideas list this month.

    Here’s why these ASX shares could be among the best dividend shares to buy next week:

    BHP Group Ltd (ASX: BHP)

    The first ASX dividend share to look at is the Big Australian. This mining giant has been tipped to pay big dividends in the near term thanks to sky high commodity prices.

    For example, Morgans is expecting BHP to pay fully franked dividends per share of $3.93 in FY 2022 and $2.95 in FY 2023. Based on the current BHP share price of $46.80, this will mean yields of 8.4% and 6.3%, respectively.

    Morgans also sees meaningful upside for its shares and has an add rating and $54.30 price target on them. The broker explained why it is bullish:

    We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

    Wesfarmers Ltd (ASX: WES)

    Another ASX dividend share that Morgans rates highly is this conglomerate. Morgans likes the company due to its quality portfolio, strong management team, and robust balance sheet.

    As for dividends, the broker expects fully franked dividends of $1.62 per share in FY 2022 and $1.81 per share in FY 2023. Based on the current Wesfarmers share price of $49.60, this will mean yields of 3.3% and 3.65%, respectively.

    As with BHP, the broker also sees decent upside for its shares. It has an add rating and $58.50 price target on them. The broker commented:

    WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.

    The post Broker names 2 of the ‘best’ ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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  • These 2 ETFs could help to protect ASX investors against inflation

    A businessman waers armour and holds a shield and sword.A businessman waers armour and holds a shield and sword.

    Inflation has been a central concern of ASX investors for a few months now. But ever since learning that inflation is now running at a two-decade high here in Australia, that concern has only grown more acute. Inflation and the higher interest rates that usually come with it can have wide-ranging consequences for ASX shares.

    That’s why it is important to understand how inflation might affect a share portfolio, and what you can do to mitigate its corrosive effects. So let’s check out two ASX exchange-traded funds (ETFs) that could help in this endeavour.

    2 ASX ETFs that could help protect against inflation

    BetaShares Global Banks ETF (ASX: BNKS)

    This ETF from BetaShares enables investors to invest in a wide range of banks from around the world in one fund. You’ll find US banks like JPMorgan and Wells Fargo here, as well as Royal Bank of Canada, HSBC Holdings, and Citigroup.

    Bank shares are often identified as clear winners during times of inflation, given that they can easily preserve their margins if interest rates rise. Our own chief investment officer Scott Phillips discussed this very phenomenon this week. BNKS also pays out a healthy dividend distribution, further adding to its inflation-resistant properties.

    BetaShares Global Energy Companies ETF (ASX: FUEL)

    Any Australian who drives a fuel-powered vehicle would be acutely aware of the inflation-resistant nature of oil and other forms of energy.

    Since energy consumption is usually a ‘need’ rather than ‘want’, there is always demand for energy in normal economic circumstances, even if prices are rising. Thus the companies that extract, refine, and sell energy products like petrol, diesel, and gas have an inherent advantage in periods of high inflation. And this FUEL ETF covers these kinds of companies.

    It currently invests in energy giants like BP, Shell, Chevron, and Exxon Mobil. This ETF has already risen by almost 27% over the past six months, which is significant since this is the period that inflation concerns have significantly increased. FUEL also pays out a healthy dividend distribution.

    The post These 2 ETFs could help to protect ASX investors against inflation appeared first on The Motley Fool Australia.

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    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Chevron and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Banks ETF – Currency Hedged and BetaShares Global Energy Companies ETF – Currency Hedged. 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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