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The A2 Milk Company Ltd (ASX: A2M) share price has dropped 2% in March to date. But could April 2022 be a better month for the company?

The market sent A2 Milk shares up to $5.89 on the day of the company’s FY22 half-year result. That report revealed that earnings before interest, tax, depreciation and amortisation (EBITDA) was down 45.3% to $97.6 million, while net profit after tax (NPAT) dropped 53.3% to $56.1 million.

However, the company is starting to talk about a recovery.

FY22 half-year positive comments

Management said that the HY22 report was in line with the company’s expectations and it’s expecting to deliver revenue growth in FY22.

While HY22 revenue was “marginally” lower, down 2.5% to $660.5 million, it was up 24.8% on the second half of FY21.

The company said that China-label infant formula sales were constrained by A2 Milk in the first quarter of FY22 to rebalance distributor inventory levels. Those sales were down 11.4% year on year. However, there was consumer offtake growth in-store and online was up double-digits with a higher market share.

A2 Milk also said that while English and other label infant formula sales were down 9.8% year on year with lower market share, there was an improvement in the sales trajectory during the half. This was particularly in the ANZ [Australia-New Zealand] reseller channel.

The company also said that its brand health metrics improved after a significant marketing campaign in the second quarter, with Chinese-label metrics also improving. The brand ‘investment’ increased in the first half of FY22 by 37.3%.

Management pointed to A2 Milk’s growth strategy refresh to respond to the rapidly-changing Chinese infant formula market dynamics. It said this refresh has been completed and implementation is underway, with “good early progress across key initiatives”.

The company’s final positive point was that its outlook for the FY22 second half has improved. The FY22 second half is expected to be “significantly” better than the second half of FY21 and also better than the first half of FY21. Growth in both Chinese-label and English-label infant formula is expected.

However, the higher revenue isn’t expected to translate into higher earnings as the company invests significantly in marketing or other areas that will help its growth strategy.

What do brokers think of the A2 Milk share price?

Citi is one of the few brokers to be positive on the ASX share. Citi rates A2 Milk as a buy, with a price target of $7.02. That implies a potential rise of around 30% over the next month, if the broker ends up being right. The broker sees both risks and opportunities in the Chinese market for A2 Milk.

Meanwhile, Credit Suisse is neutral on the dairy business with a price target of $5.75.

In terms of the valuation, using Citi’s numbers, the A2 Milk share price is valued at 38x FY22’s estimated earnings and 29x FY23’s estimated earnings.

The post Could the A2 Milk share price be in for a better month in April? appeared first on The Motley Fool Australia.

More reading

• What was the highest ever A2 Milk (ASX:A2M) share price?
• Why A2 Milk, Atlas Arteria, Block, and Boral shares are tumbling today
• Why is the A2 Milk (ASX:A2M) share price falling today?
• Broker tips A2 Milk (ASX:A2M) share price to rise 30% from here
• 5 things to watch on the ASX 200 on Monday

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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Commonwealth Bank of Australia (ASX: CBA) shareholders will have something to cheer about today as the company pays out its latest dividend.

The banking giant is set to reward eligible investors with a fully-franked interim dividend of $1.75 per share.

At Tuesday’s market close, the CBA share price finished 0.22% higher to $106.37.

For context, the S&P/ASX 200 Index (ASX: XJO) also climbed yesterday with a 0.7% gain to 7,464 points.

Let’s take a look at all the details regarding the company’s dividend.

CBA pays out H1 FY22 dividend

CBA reported strong growth across key metrics in its results for the first half of the 2022 financial year.

In summary, cash net profit after tax (NPAT) rose 23% year on year to $4,746 million. This was supported by strong business outcomes, reduced remediation costs, and lower loan loss provisions due to an improved economic outlook.

Management noted that despite the robust performance, this was partially offset by lower margins. This came from customers switching to fixed rate home loans, the impact of rising swap rates, and continued pressure from home loan competition.

Nonetheless, the board opted to increase its interim dividend by 17% on H1 FY21’s $1.50 per share.

When calculating against the current share price, CBA is trailing on a forecast fully-franked dividend yield of 3.29%.

Furthermore, the payout ratio is calculated to be 62% on the bank’s cash NPAT basis. This is slightly under management’s target range of 70% to 80% of earnings. Nonetheless, when looking at a normalised cash NPAT basis, the payout ratio is lifted to 70%.

CBA share price snapshot

Adding to its impressive gains, the CBA share price has surged around 24% in the last 12 months. This has predominantly been driven by its gains achieved last month, up 13%.

CBA has a price-to-earnings (P/E) ratio of 22.54 and commands a market capitalisation of roughly $181.51 billion.

The post The CBA dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Buy or sell? ASX experts rate the CBA share price for April
• 2 ASX shares to guide you through a turbulent 2022: expert
• Why have investors been selling off CBA shares?
• Top brokers name 3 ASX shares to sell next week

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

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The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch closely on Wednesday.

This follows the release of a bombshell announcement out of the telco giant this morning.

Why is the Telstra share price?

All eyes will be on the Telstra share price this morning after the company announced the retirement of its chief executive officer (CEO), Andrew Penn.

According to the release, Mr Penn has announced his intention to retire on 31 August after serving more than seven years in the role.

Telstra has been quick to find a replacement and has revealed that the company’s current chief financial officer (CFO), Vicki Brady, will officially take over as CEO on 1 September. She will work with Penn over the coming months to ensure that the transition is a smooth one.

This is the same route that Andy Penn took to the top job. He joined as CFO in 2012 before being promoted to the CEO role in 2015.

Telstra’s chairman, John Mullen, believes that Andy Penn will be leaving a positive and enduring legacy for the transformation he has led during his time as CEO.

He commented: “Andy has led Telstra during a period of significant change and will be known for his courage in setting a bold ambition through the T22 strategy to deliver a transformed experience for customers, shareholders and employees. There is no doubt the strategy has delivered beyond expectations and has laid the foundations for Telstra’s recently announced T25 strategy and a renewed focus on growth and innovation.”

The new CEO

Mr Mullen notes that Mr Penn developed a strong team to ensure the ongoing successful leadership of the company and believes Telstra is in safe hands with Vicki Brady.

He explained: “The greatest testament to this is the ability to announce an internal successor to the role of CEO and I am thrilled to be able to announce Vicki in the role today.”

“Having started her career with KPMG, Vicki subsequently worked in a range of finance, commercial and strategy roles before moving into broader business leadership positions. She has made a significant contribution to Telstra including her work in developing our new go to market plans as part of the T22 strategy. She has played a key leadership role in the development of Telstra’s T25 strategy and is well placed to lead the company through its next phase. She could not be more qualified to take over the reins to deliver on our T25 commitments.”

The post Telstra share price on watch amid shock CEO exit appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares analysts rate as buys for April
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Ringing the changes: Telstra share price jumps amid latest restructuring news
• These 3 ASX 200 shares are topping the volume charts on Monday
• How much is the next Telstra dividend?

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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Owners of Rio Tinto Limited (ASX: RIO) shares may want to know what a leading broker just said about the ASX mining share.

Rio Tinto is one of the world’s biggest commodity businesses. The iron ore segment usually makes the most profit, but it’s also in multiple other commodities such as bauxite, aluminium, alumina and copper.

It also just completed the acquisition of the Rincon lithium project for $825 million in Argentina, after receiving approval from Australia’s Foreign Investment Review Board (FIRB). The mining company says that lithium demand is expected to grow by between 25% to 35% per annum over the next decade, with a significant supply and demand deficit expected from the second half of this decade.

Updated broker thoughts on the Rio Tinto share price

According to reporting by the Australian Financial Review, UBS recently upgraded its rating on Rio Tinto.

UBS used to rate the large ASX mining share as a sell, but it upgraded the rating to ‘neutral’. The broker’s price target on Rio Tinto went up to $104, up from $90.

The broker pointed to the disruption to the iron ore market amid the Russian invasion of Ukraine and economic data in China that was stronger than expected.

However, UBS is still cautious about saying the business has gone through a complete turnaround.

The AFR quoted UBS with its comments on Rio Tinto:

Management has changed materially since 2020 and potentially some progress is being made with the key issues.

However, it is too early to be confident that Rio has turned the corner and we note there will be further challenging strategic decisions over the next six to 12 months which have the potential to impact shareholder value.

Morgan Stanley’s rating on the Rio Tinto share price

But UBS isn’t the only broker that recently updated its thoughts.

Morgan Stanley noted that Reuters recently reported that Guinea has reached a deal with miners to resume activities on the Simandou iron ore development, after resolving infrastructure disputes.

Simandou has more than 4 billion tonnes of ore according to Guinea’s government.

The news organisation reported that Mines Minister Moussa Magassouba said on state television that a framework agreement had been signed between the government and companies involved in the project, which includes Rio Tinto.

Morgan Stanley thinks it could be several years until the first ore is achieved at Simandou.

Morgan Stanley rates Rio Tinto as a buy, with a price target of $130.50.

Valuation

UBS thinks the Rio Tinto share price is valued at under 7x FY22’s estimated earnings and under 9x FY23’s estimated earnings.

Morgan Stanley thinks the ASX mining share will generate even stronger profit. Morgan Stanley believes that the Rio Tinto share price is valued at under 6x FY22’s estimated earnings and under 9x FY23’s estimated earnings.

The broker also thinks Rio Tinto has a projected FY22 grossed-up dividend yield of 18.7% and an estimated FY23 grossed-up dividend yield of 12.1%.

The post Own Rio Tinto shares? Here’s why UBS says ‘it is too early to be confident’ appeared first on The Motley Fool Australia.

More reading

• What’s with the Rio Tinto (ASX: RIO) share price today?
• Why international investors are flocking to ASX shares right now
• Why APM, Firefinch, Rio Tinto, and Soul Patts shares are charging higher today
• What is the outlook for ASX 200 mining shares in April?
• Why is the Rio Tinto (ASX:RIO) share price up today?

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 Bruce Jackson.

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If you’re looking to boost your income portfolio in April, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share for income investors to look at is Dexus Industria. It is an industrial and office focused property company that was formerly known as APN Industria.

Dexus Industria owns interests in office and industrial properties that provide functional and affordable workspaces for businesses.

As per its latest update, the fund’s portfolio was last valued at $1.78 billion and was spread across a number of major Australian cities. From this portfolio, management has set itself a target of providing sustainable income and capital growth prospects for shareholders over the long term.

Morgans appears to believe management will deliver on its targets. It recently put an add rating and $3.65 price target on the company’s shares. The broker is also forecasting dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the current Dexus Industria share price of $3.44, this will mean yields of 5% and 5.1%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that has been rated as a buy is Telstra.

This is due to optimism over the telco giant’s outlook thanks to the successful execution of its transformative T22 strategy and the impending growth-focused T25 strategy. The latter will see Telstra aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

Morgans is also a fan of Telstra and currently has an add rating and $4.55 price target on the company’s shares. The broker feels the market is undervaluing its shares on a sum of the parts basis.

As for dividends, Morgans continues to expect fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.93, this implies yields of 4.1%.

The post 2 ASX dividend shares analysts rate as buys for April appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Ringing the changes: Telstra share price jumps amid latest restructuring news
• These 3 ASX 200 shares are topping the volume charts on Monday
• How much is the next Telstra dividend?
• Own Telstra shares? Here’s how the telco plans to use drones to create carbon credits

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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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, Marcus Today portfolio manager Ben O’Leary picks two ASX shares in pole position to take advantage of how the world is changing.

Hottest ASX shares

The Motley Fool: What are the two best stock buys right now?

Ben O’Leary: I’ve got a couple of genuine growth stocks here with some structural long-term tailwinds.

The first one is WiseTech Global Ltd (ASX: WTC). They had results in February — their revenue operating earnings were up 18% and 54%, their EBITDA [earnings before interest, tax, depreciation, and amortisation] underlying profit blew consensus expectations out of the water, and they upgraded their growth items as well. They showed that their numbers are going really well. 

They are a genuine growth company with wins that are about benefiting from the longer term structural changes in the shipping industry. And they are really revolutionising that. 

The big thing with their numbers is they’ve got recurring revenues. Last year, 90% of their revenue was recurring, which is very impressive. We know customers are a really important thing in the long-term success of any business. That’s why things like Amazon.com Inc (NASDAQ: AMZN) and Netflix Inc (NASDAQ: NFLX) and whatnot have done so well, because of their customer retention, and [WiseTech’s] customer loss was below 1% for nine years in a row last year. So they really do get people on board and keep them on board.

Obviously they are a high-growth tech company, so they are going to be pushed on the valuation grounds when the market gets worried about that, which they have recently. It’s a little bit at the whims of what the central banks decide to do, but we’ve recently got a little bit more clarity there and the market is factoring in something like seven [US Federal Reserve] raises by the end of the year. So even though that will be a factor on pressure and valuations, I think from our perspective, it’s mostly priced in and the tailwinds behind it will hopefully outweigh that. It’s culled 15% from the top with that little pressure, so seeing a bit of an opportunity for a good long-term investment that’ll push years into the future.

MF: It hasn’t discounted quite as much as many other ASX tech shares, has it?

BO: No, it’s held up probably because of those numbers they reported. Because it reported so well, it did show that there is a reason you’re buying it. It’s not just a story, there’s numbers behind it that are serious. 

The second one there I’ll jump to is Johns Lyng Group Ltd (ASX: JLG). It’s one we’ve liked here for quite a while. It’s done really well for us. It’s a building services company that specialises in emergency construction work. So they have a lot of contracts with insurers. Its core business is centred around the restoration of properties that have been damaged in external events like floods and fires. And we know that there’s the trend, which is a really unfortunate trend, of climate change, extreme weather events. We’ve seen some really unfortunate ones recently, but the numbers show that growing year to year.

That means that Johns Lyng Group is going to be in demand, and companies like that are going to be in demand. There’s going to be a lot of restoration work needing to be done and continuing to be done. 

They’ve shown an ability to get those contracts and get the work and grow with that demand. So they’ve performed really well. We see there’s a lot of scope for them to continue to perform well. And they’re what we call here a bottom left to top right stock. So when you look at [the share price] chart, it goes pretty much bottom left to top right, so it’s a really nice trend there. 

They’re a similar story as WiseTech, where it is on a high P/E [price-to-earnings ratio]. So when the whole market tips on valuation grounds, it does come under a bit of pressure. But again, we think there are a lot of tailwinds going into the future that could see it still form an opportunity to lock in a long-term position.

MF: You’ve already touched on this a bit, but you’re not too worried about the fact that it has gone up quite a bit in the last couple of years — that the valuation isn’t too high?

BO: Obviously it’s a factor, but we are talking about a genuine growth company here. I think it’s definitely one, you won’t find it being one of our biggest holdings. We’re taking a tactical risk here, but we see the upside is there. 

They had quite a bit of consolidation within the industry. They’ve been quite aggressive in their own expansion. So I think they’re there. They’re ready to take their slice of the pie and keep getting those contracts and sending vests out to grow with that increased demand in years to come.

MF: As you say, we saw from the floods in eastern Australia a couple of weeks ago, demand for its services is not going to fall, is it?

BO: Yeah, exactly. Every year the things we’re seeing tell us there have been more extreme weather events, which is really unfortunate. But … people are going to need their homes rebuilt. Also, the infrastructure needs to be maintained and rebuilt after these disasters, so someone’s got to do it.

The post 2 ASX shares cashing in on irresistible global trends: expert appeared first on The Motley Fool Australia.

More reading

• What is the outlook for ASX dividend shares in the tech sector?
• Is this the ‘secret sauce’ for ASX 200 tech share price growth?
• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead
• I’m still kicking myself for missing the ASX company with the perfect business model: expert
• Why did the WiseTech (ASX:WTC) share price jump 6% today?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon, Netflix, and WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended Amazon and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is travel finally back?

Who knows. But we now have the best chance we’ve had in more than two years.

The world is a different place from early 2020 when the COVID-19 pandemic first started.

The medical experts now know a lot more about how to treat the deadly disease. The majority of Australians are vaccinated. Governments are no longer resorting to lockdowns, regardless of daily infection numbers.

Even unrestricted international travel is back on the cards, according to Montgomery Small Companies Fund portfolio manager Dominic Rose.

“Both the UK and the European Union have scrapped COVID-19 testing requirements for fully vaccinated travellers,” he said on the Montgomery blog.

“While recent commentary from numerous US airlines suggests that North American leisure activity is back at or near pre-pandemic levels with corporate improving to 25% to 30% behind.”

With this in mind, Rose’s team has picked 4 ASX travel shares they love the look of right now:

Acquisition spree takes earnings higher than pre-COVID

Corporate Travel Management Ltd (ASX: CTD) took advantage of lockdown disruptions by raising fresh equity to acquire other businesses.

This ASX share bought out US corporate travel agent Travel & Transport, and the Helloworld Corporate arm of fellow ASX-listed player Helloworld Travel Ltd (ASX: HLO).

“While competitors were scrambling to cut operating costs during the depths of the downturn, mainly headcount which negatively impacts customer service levels and therefore client retention, Corporate Travel Management was strategically expanding through opportunistic M&A,” said Rose.

“The company is now estimated to be the fourth largest global corporate travel manager worldwide with fully recovered EBITDA [earnings before interest, taxes, depreciation. and amortisation] of around $265 million, some 77% higher than pre-COVID levels.”

While Rose acknowledged that post-pandemic work habits may be more home-based, he feels Corporate Travel Management is well-placed to outperform the competition.

“Being predominantly a northern hemisphere business, the trans-Atlantic route remains a key catalyst for the company, along with workers returning to offices — at least partially.”

Corporate Travel Management shares have actually risen more than 4% for the year so far.

This airline is 3.5 times bigger now than before COVID

Alliance Aviation Services Ltd (ASX: AQZ), remarkably, was a rare company in the travel sector that profited from the pandemic.

“Alliance Aviation Services seized the moment when global airline fleets were grounded and airlines offloaded assets at distressed prices to stay liquid,” said Rose.

“In June 2020, the company raised $122 million in equity to purchase a fleet of 32 Embraer E190 aircraft from various vendors, paying just cents in the dollar.”

Then it just waited for other airlines to lease those planes. Indeed, Qantas Airways Limited (ASX: QAN) has taken options on 18 of them already.

The new fleet has increased Alliance’s capacity by a whopping 3.5 times compared to the pre-COVID era.

“In addition to being a much larger business once the expansion assets are fully deployed, we view the company as more diversified with expanded leisure exposure (complementing the FIFO business),” Rose said.

“And we also expect improved unit economics given the higher asset utilisation of the new E190s compared to the older Fokker aircraft.”

The Alliance share price has dipped 10% this year.

Tale of two travel agents 

Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) might have different strengths in physical stores and online sales respectively, but both these ASX travel shares raised huge money during the pandemic just to “keep the lights on”.

“Flight Centre is arguably the most levered play to a rebound in travel activity,” said Rose.

“Management’s response to the initial demand shock was to stand down staff and raise equity capital at deeply discounted prices ($700 million equity raise in April 2020 plus a number of subsequent convertible bond issues) to strengthen the balance sheet and fund the significant working capital unwind (ticket refunds).”

Rose’s team sees a brighter post-COVID era for this ASX share though, as smaller competitors have died out or shrunk even further over the past two years.

“Despite having half the number of shop fronts, management still expects to retain 95% customer reach,” said Rose.

“As such, Flight Centre should retain its dominant market position in the Australian leisure travel market with potential to take further share from weakened competitors as conditions improve.”

Flight Centre shares have gained more than 6% so far in 2022, although they are still 19% down from their October high. 

Meanwhile, Webjet turned its focus to its wholesale WebBeds division during the pandemic.

“WebBeds is looking to take advantage of the changed competitive landscape and become the No. 1 travel wholesaler globally (currently No. 2),” said Rose.

“Additionally, Webjet, which commanded a 50% share of domestic online bookings pre-pandemic, is aiming to outperform the market recovery by 1.5x as the structural migration towards online accelerates and underpinned by superior technology.”

The Webjet share price has headed up almost 4% for the year, although it’s still almost 15% below its November peak.

The post Finally! 4 travel ASX shares ready to take off appeared first on The Motley Fool Australia.

More reading

• Do Flight Centre shares pay dividends?
• Despite the COVID crash, here’s what $10,000 invested in Webjet (ASX:WEB) shares 10 years ago would be worth now
• Flight Centre share price edges lower despite ‘important step’
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price soaring today?

Motley Fool contributor Tony Yoo owns Corporate Travel Management Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alliance Aviation Services Ltd. and Helloworld Limited. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. and Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a great day and stormed higher. The benchmark index rose 0.7% to 7,464.3 points.

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

ASX 200 expected to rise

It looks set to be another good day for the Australian share market on Wednesday following a positive night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.8%, the S&P 500 is up 1.2%, and the Nasdaq is up a sizeable 1.9%.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.5% to US$104.37 a barrel and the Brent crude oil price has fallen 1.9% to US$110.28 a barrel. Promising signals from Russia-Ukraine peace talks weighed on prices.

Federal Budget

Last night the Federal Government delivered its pre-election budget with a focus on two key themes: the cost of living and national security. Some ASX 200 shares that look set to benefit include JB Hi-Fi Limited (ASX: JBH) and Xero Limited (ASX: XRO) from a “go digital” incentive and toll road operator Transurban Group (ASX: TCL) from a 22 cents per litre fuel excise reduction for six months.

Gold price down again

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price continued to fall. According to CNBC, the spot gold price is down 1.1% to US$1,921.5 an ounce. This has been driven by Russia-Ukraine peace talks reducing safe haven asset demand.

Dividends being paid

It’s a very big day for dividend payments on Wednesday with a number of popular ASX 200 dividend shares rewarding their shareholders today. This includes energy company AGL Energy Limited (ASX: AGL), banking giant Commonwealth Bank of Australia (ASX: CBA), iron ore miner Fortescue Metals Group Limited (ASX: FMG), and conglomerate Wesfarmers Ltd (ASX: WES).

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

More reading

• Buy or sell? ASX experts rate the CBA share price for April
• Leading brokers name 3 ASX shares to sell today
• Global poster child? Why this fundie is bullish on the Santos share price
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why Beach, Melbana, St Barbara, and Tietto shares are dropping

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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Wesfarmers Limited and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in April, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is NextDC. It is a leading data centre operator with a collection of world class centres across key capital city locations throughout Australia. The company is also aiming to grow its network with edge centres in regional areas and expand overseas. All in all, this appears to have positioned NextDC perfectly to capture the increasing demand for data centre capacity thanks to the structural shift to the cloud.

Citi is bullish on the company’s outlook. It has a buy rating and $14.55 price target on NextDC’s shares. This compares to the latest NextDC share price of $11.44.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Morgan Stanley is positive on SEEK. Its analysts currently have an overweight rating and $36.00 price target on its shares. This compares to the most recent SEEK share price of $29.33.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share to look at is enterprise software provider TechnologyOne. It is currently transitioning to become a software-as-a-service (SaaS) focused business and is delivering strong results. Pleasingly, management expects this to continue and is targeting annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.

The team at Bell Potter is a very positive on the company’s growth outlook. The broker has a buy rating and $15.00 price target on its shares at present. This compares to the latest TechnologyOne share price of $11.48.

The post Analysts name 3 ASX 200 shares that could generate strong returns appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns NEXTDC Limited and SEEK 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 SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for some exchange traded funds (ETFs) to add to your portfolio next month? If you are, it could be worth taking a closer look at the three ETFs listed below.

Here’s what you need to know about these top ETFs:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at for April is the BetaShares Global Energy Companies ETF. It provides investors with access to a number of the largest energy companies outside Australia. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than their Australian peers. Among its holdings are energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to consider in April is the iShares S&P 500 ETF. This popular ETF gives investors access to the top 500 listed U.S. companies. BlackRock, which operates iShares, believes this ETF is a good way for investors to diversify internationally. The fund manager also notes that it offers long-term growth opportunities for a portfolio. Among the companies included in the fund are Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF for investors to look at for next month is the VanEck Vectors Morningstar Wide Moat ETF. This Warren Buffett inspired ETF gives investors access to a group of companies with sustainable competitive advantages or moats. The fund is currently invested across almost 50 attractively priced shares boasting these qualities. This includes the likes of Alphabet, Altria, Boeing, Coca Cola, Kellogg Co, Walt Disney, and even Warren Buffet’s own Berkshire Hathaway. Given how successful Buffett’s style of investing has been over multiple decades, this ETF could be a top option for long term focused investors.

The post 3 top ETFs for ASX investors in April appeared first on The Motley Fool Australia.

More reading

• Are these 2 top ETFs buys in April?
• Here are 4 popular ETFs for ASX investors to check out
• Are these 2 top ASX growth shares buys right now?
• 3 top international ETFs for ASX investors to look at this month
• Here are 3 top ETFs for ASX investors to watch

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. owns and has recommended BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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