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Some of the leading ASX dividend shares just implemented more dividend increases for shareholders.

Inflation is picking up, so there may be some investors looking for investments capable of growing their payouts at an inflation-beating rate.

Here are those two ASX dividend shares that just gave shareholders a payrise:

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

Soul Pattinson is an investment conglomerate that owns a diversified portfolio across a range of asset classes across different sectors, including private equity, private credit and property.

The company points to its unconstrained, flexible investment mandate that allows it to invest in and support companies from an early stage and grow with them over the long-term.

It has built a portfolio of assets that generate reliable cash flow through market cycles, providing protection during market declines.

The ASX dividend share just reported its half-year result, which included a 114% increase of net cash flow from investments to $182.6 million. Cash flow per share increased 42% year on year.

It increased its FY22 interim dividend by 11.5% to 29 cents per share. That was the 24^th consecutive increase of the interim dividend. At the current Soul Pattinson share price, that means the grossed-up dividend yield is now 3.4%.

Brickworks Limited (ASX: BKW)

Brickworks is a diversified business. It owns 26.1% of Soul Pattinson, a 50% share of an industrial property trust and building products manufacturers in both Australia and the US.

The company just announced a 5% increase to its interim dividend to 22 cents per share. Brickworks’ normal dividend has been maintained or increased every year since 1976. It is the ninth year in a row that it has increased dividends.

In the Brickworks half-year result, it announced that underlying net profit after tax (NPAT) was up by 269% to $330 million and statutory profit increased 720% to $581 million.

The contribution from the ASX dividend share’s property division was a “standout”, with strong demand for the prime industrial land driving a significant increase in the portfolio’s value. The property trust value increased by $349 million. Net trust income increased 7% to $17 million, reflecting rent reviews and additional developments.

The state-of-the-art Amazon facility reached practical completion at the end of December 2021.

Brickworks also announced the intention to launch a new operational property trust to realise value from its Australian building products operational land. An initial portfolio of 15 properties with a gross asset value of around $415 million could go through a sale and leaseback process.

The Australian building products division managed to achieve higher profit margins thanks to improved production efficiencies and higher prices across most business units. This led to the earnings before interest and tax (EBIT) rising by 66% to $27 million.

At the current Brickworks share price, it now has a grossed-up dividend yield of 3.9%.

The post These strong ASX 200 dividend shares just gave shareholders a pay rise appeared first on The Motley Fool Australia.

More reading

• Why Brickworks, JB Hi-Fi, Mesoblast, and Sayona shares are charging higher
• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• Soul Pattinson (ASX:SOL) share price on watch after 281% surge in net profit
• Brickworks (ASX:BKW) share price on watch amid 269% first half profit jump
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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The ASX Ltd (ASX: ASX) share price is up 0.5% in early morning trade at $81.05.

That still leaves the listed exchange group down 13% since the closing bell on 31 December.

So, at the current ASX share price, is it a bargain or still overpriced?

For some insight into that question, we defer to Andrei Stadnik, vice president at Morgan Stanley.

More cost pressure flagged

According to Stadnik – as reported by The Australian – at today’s ASX share price the company is still “too expensive“.

That’s because it trades on a forward price-to-earnings (P/E) ratio of 30 times its forecast FY23 earnings compared to a forward P/E ratio of 21 times for its global competitors.

At the current price, it trades at a trailing P/E ratio of 32 times.

Stadnik expects recently strong listing volume to slow over the year, with additional headwinds from weaker interest rate futures.

Despite forecasting growth from energy derivatives, he expects earnings per share (EPS) growth for the ASX to be in the “low single percentage” range.

Regulators will also be keeping a sharp eye on the company following recent (and several historic) trading glitches as the company moves forward with replacing its CHESS platform with a blockchain-based clearing and settlement system.

All of which could throw up more headwinds for the ASX share price.

According to Stadnik (quoted by The Australian):

We think this, coupled with a tight labour market, especially in tech, will lead to further cost pressure and now expect operating expenses to rise by about 11.5% in FY22E and 11% in FY23.

Stadnik did increase his earnings estimated for FY23-24 by 2%. But that doesn’t change his mind about ASX being pricey at current levels.

“Despite the recent de-rating across financials, ASX’s valuation is still stretched,” he said.

ASX share price snapshot

Over the past 12 months, the ASX share price has gained 13%, outpacing the 9% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

At the current price, ASX shares pay a 2.8% dividend yield, fully franked.

The post The ASX share price has slumped 13% this year. Is it still overpriced? 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 Bruce Jackson.

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Analysts are always looking for cheap ASX shares that could make smart buys. There are a few that value investors may really like.

Businesses that are valued at a low multiple of their projected earnings could turn out to be undervalued. If those supposedly cheap businesses pay a dividend, they could also be attractive options for a flow of dividend income.

With that in mind, here are two cheap ASX shares with low price-to-earnings (P/E) ratios.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop describes itself as a specialty retailer of male and female personal grooming products and aspires to be the market leader in “all things related to hair removal”. It has around 120 owned and franchised stores across Australia and New Zealand. The company is also looking to grow its oral care sales.

The FY22 half-year dividend was increased by 40.6% to 4.5 cents per share. The significant increase in the dividend payout ratio reflects the desire of the ASX share’s board to continue to maximise returns to shareholders while maintaining balance sheet strength and flexibility during this period of variable trading conditions.

After store closures in the first half of FY22, the company is experiencing stronger sales growth in the second half. In the second half of FY22 to 17 February 2022, total sales were up 6.2%, including 23.8% online sales growth.

The online store is reportedly going from “strength to strength”, with increasing site visitation, elevated conversion, and high average transaction values. Active online customers increased almost 50% to 650,000 in the 12 months to 31 December 2021. Management said this presented an exciting opportunity to turn these into loyal, repeat customers in the future.

The cheap ASX share is currently rated as a buy by Ord Minnett, with a price target of $1.30. At the current Shaver Shop share price, it is valued at under 9x FY23’s estimated earnings with a projected FY23 grossed-up dividend yield of 12.4%.

Inghams Group Ltd (ASX: ING)

Inghams describes itself as the largest integrated poultry producer across Australia and New Zealand. To put a number on how much poultry that company produces, Inghams produced 237.1kt of core poultry volume in the first half of FY22 (which was 5.6% higher than the prior corresponding period).

The business is currently rated as a buy by the broker Credit Suisse with a price target of $4.05. That implies a possible upside of more than 30% over the next year. Credit Suisse’s estimates put the current Inghams share price at 11x FY23’s projected earnings.

Credit Suisse has also pencilled in a dividend estimate which equates to a grossed-up dividend yield of almost 9% for FY23 for the cheap ASX share.

As mentioned, Inghams is seeing long-term growth of its poultry volumes, which is helping grow revenue and profit. The FY22 half-year result saw underlying net profit after tax (NPAT) increase by 5.9% to $39.7 million.

The company is working on a number of operational efficiency programs to improve the operations and profitability of the business.

The post 2 cheap ASX shares that value investors could love: Experts appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Top brokers name 3 ASX shares to sell today
• 2 cheap ASX shares for value investors to buy in March 2022: experts
• 2 buy-rated ASX dividend shares for income: experts

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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The Core Lithium Ltd (ASX: CXO) share price is under pressure on Friday.

In morning trade, the lithium developer’s shares are down 2.5% to $1.21.

Why is the Core Lithium share price falling today?

Investors have been selling down the Core Lithium share price today following the release of a shock announcement.

According to the release, the company’s founding Managing Director and CEO, Stephen Biggins, has revealed that he is resigning and will step down from the role by the end of the year. The release notes that Mr Biggins is resigning from the company for personal reasons.

The outgoing Managing Director believes he is leaving the company in a strong position to achieve its goals.

He commented: “After nearly 12 years with Core, I am proud of the contribution I have made to the discovery and development of the Finniss Lithium Project and growing the Company to become Australia’s next lithium producer.”

“Core is in perfect position to reach its next stage of growth as a lithium producer, and I feel it is the right time to step down as Managing Director and pass the torch on to the right person to lead Core in this next stage.”

“Our transformation from explorer to producer is progressing to plan, the financial performance is strong, and at the Finniss Lithium Project, we have built a platform for sustainable growth for many years to come,” he added.

What now?

The release notes that the Core Board has appointed Korn Ferry to commence a thorough and competitive executive search for a new CEO.

Until then, the company’s Chair, Greg English, believes it will be business as usual.

He commented: “Stephen was a foundation director of Core and has put the Company on a pathway for a stronger future. With the development of the Finniss Lithium Project, he has led the biggest transformation in the Company’s history and has set Core up for strong earnings growth.”

The post Core Lithium (ASX:CXO) share price falls on shock CEO exit appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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Computershare Limited (ASX: CPU) shareholders, rejoice – the ASX 200 tech stock’s share price has surpassed its all-time high three times this week.

Making its latest moves even more impressive, the financial services company has been silent for more than a month.

The Computershare share price blew past the $24 mark for the first time ever on Tuesday, hitting $24.05 in intraday trade.

It surpassed that point on Wednesday when it reached $24.20. And, finally, it broke its still-shiny record once more during yesterday’s session, hitting $24.35 before slipping into the red.

As of Thursday’s close, the Computershare share price was $24.05, 5.5% higher than it was at the end of last week.

So, what’s been driving the share registry provider’s stock lately? Let’s take a look.

What’s boosting this ASX 200 tech share to new heights?

The Computershare share price is launching higher this week despite the company’s silence. However, it’s not alone in its gains.

Over the course of this week so far, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has been outperforming the broader S&P/ASX 200 Index (ASX: XJO).

The former has gained 3.89% since last Friday’s close, while the latter is up 1.27%.

Fortunately, Computershare dodged much of the tech sector’s struggles earlier this year.

While the ASX 200 Info Tech index tumbled around 21% between the start of 2022 and the end of February, the Computershare share price recorded a 6% gain.

Its strong performance could have been due to expectations the company could benefit from rising interest rates, unlike most tech stocks.

T. Rowe Price head of Australian equities, Randal Janneke, noted his belief that the company would perform well in a high inflationary environment last month.

Additionally, the company’s first-half results, released in February, detailed a 4.6% increase in revenue and a 16.7% boost to earnings before interest and tax, excluding margin income.

Computershare share price snapshot

It likely goes without saying that 2022 has been good to the Computershare share price.

So far this year the company’s stock has gained 18%. It’s also 61% higher than it was this time last year.

The post This ASX 200 tech share has inked 3 all-time highs this week 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 Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus after the company gave an update to investors and outlined how it expects the corporate travel market to perform.

Flight Centre is more than just the leisure segment of its business. In-fact, in the first half of FY22, its corporate segment produced more total transaction value (TTV) and revenue ($2 billion and $192 million, respectively) than the leisure segment ($950 million and $112 million).

Flight Centre noted that the corporate segment experienced a continued strong sales recovery, with almost 150% TTV growth year on year.

The corporate business generated about 60% of Flight Centre’s total TTV, this is up from 40% in pre-COVID times.

The corporate travel underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $30 million was better than the leisure’s half-year EBITDA loss of $155 million.

Flight Centre corporate travel operational update

The ASX travel share just gave a corporate travel update. Flight Centre said that there had been a “strong rebound” from February. The corporate travel segment is targeting a return to monthly profitability in March or April 2022. It was close to breakeven in February 2022.

Management said that the company is maintaining cost discipline while continuing to invest in key drivers. Large customers are reinstating travel programs as COVID-19 concerns subside.

Flight Centre continues to monitor the effects of the Russian invasion of Ukraine, but it reported no noticeable impact on the corporate or leisure sector recovery to date.

The ASX travel share said that it’s increasing its market share organically, fed by a multi-billion dollar pipeline of new account wins, and that it’s maintaining a high retention rate.

Its wins are expected to drive TTV growth globally, but especially in the Americas and EMEA (Europe, Middle East and Africa) where around 70% of new business captured during the pandemic is set to trade.

Flight Centre now has greater exposure to government accounts after major wins in France, Singapore and the UK.

Corporate travel outlook

The ASX travel share said that there is pent-up demand for face-to-face meetings. It noted that government restrictions are easing, with the UK and Europe leading the way.

Flight Centre said that ‘external travel’ continues, while ‘internal travel’, meetings and events have picked up in the past six months.

Flight Centre expects a return to 60% to 75% of pre-COVID corporate travel in FY23.

It also said that customer needs are changing. There is increased demand for services, with a shift from supplier direct channels to managed travel. The ASX travel share also said there is less ‘leakage’, with safety and compliance driving higher adoption of travel programs.

In terms of the competitive landscape, Flight Centre said that large corporations have less choice and are seeking an alternative. Legacy travel management companies are reportedly struggling to adapt to new needs.

The ASX travel share also claimed that small and medium enterprise (SME) customers see limitations in technology-only companies.

Is the Flight Centre share price a buy?

Morgans is not convinced yet. It has a ‘hold’ rating on the business, with a price target of $19.56 after the FY22 half-year loss was worse than expected. The broker noted the improving situation in February. According to Morgans, Flight Centre may start generating a net profit again in the 2023 financial year.

The post Own Flight Centre (ASX:FLT) shares? Here’s the company’s outlook on corporate travel appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
• Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20%
• Why is the Flight Centre share price lifting off 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 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 Bruce Jackson.

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The Cochlear Limited (ASX: COH) share price has been a standout performer since the company released its first-half results in February.

The hearing solutions company’s shares surged to a year-to-date high of $231.97 in early March. This represents a 22% increase from the $190.25 recorded on the day prior to the company delivering its financial results.

At Thursday’s market close, Cochlear shares finished 0.80% lower to $221.53.

Below we take a look at how the company performed in H1 FY22 and the interim dividend declared for investors.

H1 FY22 performance sends the Cochlear dividend higher

In the half-year report for the 2022 financial year, Cochlear reported double-digit growth across key metrics.

In summary, sales revenue increased by 10% to $815.3 million over the previous corresponding period. This was predominantly underpinned by Cochlear implants (units), up 7% to 18,598 units. Services came next in line, up 19% to $256.5 million for the six months ending 31 December.

Following the above result, underlying net profit after tax (NPAT) soared 26% to $157.5 million.

In addition, underlying earnings per share (EPS) also improved to $2.40 per share, up 26% from $1.90 in H1 FY21.

Based on Cochlear’s performance, the board declared an unfranked interim dividend of $1.55 per share. This reflects a 35% lift from the $1.15 declared in the prior comparable period.

The payout ratio is 65% of the company’s underlying net profit.

When can Cochlear shareholders expect payment?

Cochlear will pay the interim dividend to eligible shareholders next month on 21 April.

However, to be eligible you’ll need to own Cochlear shares before the ex-dividend date which falls on Monday 28 March. This means if you want to secure the dividend, you will need to purchase Cochlear shares by today at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

The post Keen to bank the Cochlear (ASX:COH) dividend? Here’s what you need to know appeared first on The Motley Fool Australia.

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• The Cochlear (ASX:COH) share price has bounced back from the pandemic. Are there more gains to come?
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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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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The Premier Investments Limited (ASX: PMV) share price will be one to watch on Friday.

This follows the release of the retail conglomerate’s first half results.

Premier Investments share price on watch after outperforming guidance

• Premier Retail global sales up 0.6% to $769.9 million
• Online sales up 27.3% to $195.4 million
• Online sales now represent 25.4% of Premier Retail sales
• Premier Retail earnings before interest and tax (EBIT) up 5.5% to $212 million
• Group net profit after tax down 13% to $163.6 million
• Interim dividend up 35.3% to a record 46 cents per share fully franked

What happened during the first half?

For the six months ended 29 January, Premier reported a modest 0.6% increase in global sales to $769.9 million. This was driven by its online businesses, which delivered a 27.3% increase in sales to $195.4 million and helped offset the loss of 42,675 trading days. This means that online sales now account for a total of 25.4% of Premier Retail sales.

Key drivers of its sales growth were Peter Alexander sales of $227.4 million (up 11.4%) and positive momentum from its Smiggle business, which reported a 5.6% improvement in sales.

As for earnings, a 119 basis point lift in Premier Retail’s EBIT margin underpinned a 5.5% increase in its EBIT to $212 million. This was a touch ahead of management’s guidance of $209.5 million and $211.5 million.

Premier is also a major shareholder of Breville Group Ltd (ASX: BRG). The company’s share of profit after tax of its associate for the period was $20.35 million, up from $16.85 million a year earlier. It also received dividends from Breville totalling $4.9 million for the six months.

This ultimately led to group net profit after tax of $163.6 million. And while this is down 13% over the prior corresponding period, it didn’t stop the company from increasing its fully franked interim dividend by 35.3% to a record 46 cents per share.

Management commentary

Premier’s Chairman, Solomon Lew, commented: “1H22 was one of the most challenging and unpredictable halves of the pandemic. Under government mandates, stores in our largest markets were shut for most of the first quarter equating to 42,675 trading days during the period. In the final two months of 1H22, we managed the impacts of the Omicron variant across our entire global business. Despite these challenges, Premier has once again delivered outstanding results, reflecting the high calibre of our Board, our talented senior management team, and the commitment and dedication of our team members across the globe.”

This sentiment was echoed by Premier Retail’s CEO, Mr Richard Murray.

He said: “We are delighted with Premier Retail’s strong 1H22 result which was achieved despite the volatile trading environment. The Group has had to pivot rapidly during 1H22 to combat numerous logistical challenges in the face of lengthy government mandated lockdowns and the emergence of the Omicron variant during the latter part of the half. This result has been delivered through rigorous planning and execution across all areas of our business. It was particularly pleasing to see the record results from Peter Alexander, Portmans and Online. Further, the Smiggle business has shown positive momentum during the half as children have returned to school and COVID-19 restrictions have eased.”

Outlook

No guidance was given for the full year due to the volatile operating environment. Though, management revealed that the second half has started positively. It advised that Premier Retail global sales were up 6.2% during the first five weeks of the half.

In addition, due to the strength of its balance sheet, the company appeared to hint that it could be on the lookout for acquisitions.

It said: “The Premier Board remains optimistic about the Group’s ability to continue to deliver, however also recognises the Group is operating in highly uncertain times. The Board notes that the environment, whilst challenging for many businesses, may present new opportunities for the Group given the strength of its Balance Sheet.”

The post Premier (ASX:PMV) share price on watch after earnings beat and record dividend appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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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 recommended Premier Investments 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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Have you invested in cryptos like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) or any of the wide range of altcoins over the course of the 2021-2022 financial year?

If so, the Australian Taxation Office will want the details come tax filing time.

Here’s this guidepost from the ATO website:

If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.

If you have transacted with a foreign cryptocurrency exchange you may have tax responsibilities in another country.

With more than a million Aussies estimated to have invested in cryptos over the past year, The Motley Fool reached out to Mark Chapman, director of tax communications at H&R Block Australia, for some handy tips in how to sort out your crypto related tax details.

How to pay taxes on your investments in cryptos

“Capital Gains Tax (CGT) applies on gains arising from investment in crypto currency,” Chapman informed us.

This is calculated based on the difference between the amount you paid for the cryptocurrency and the amount you disposed of it for. Any profit is subject to CGT, which can potentially be discounted by 50% if you hold your crypto asset for more than 12 months.

He said that the ATO considers disposal of your crypto investment to occur when:

• selling cryptocurrency for Australian dollars
• exchanging one cryptocurrency for another
• gifting cryptocurrency
• trading cryptocurrency
• using cryptocurrency to pay for goods or services

“In some cases, such as when you gift it, market value is substituted for proceeds,” he added.

Are you a crypto investor or trader?

Chapman said that it makes a difference to the ATO whether you’re classified as an investor in cryptos or a crypto trader:

If you buy and sell cryptocurrency on a regular basis with a view to making a profit, then the profits on disposal of the cryptocurrency will not be subject to CGT but will be assessable income since you will be regarded as a trader rather than an investor. In effect, you’ll be regarded as being in business as a buyer/seller of cryptocurrency.

He admitted the distinction between the two can “be a fine line”:

Broadly speaking if you are turning over your cryptocurrency every few days chasing profits, you have many transactions and you are running a business-like structure (with for example a business plan, accounts and records of trading stock, business premises, licences or qualifications, a registered business name and an Australian business number), you will be a trader.

If you are holding the cryptocurrency with a view to long term gain, you are likely to be an investor.

He said that for people classified as traders, the sales and purchases of cryptos are converted to Aussie dollars at the date the transactions are paid. “You must also apply the trading stock rules to determine if there is any income or deduction due to the changing value of your trading stock.”

Is there a way to sell without paying taxes?

We’d never advocate any kind of tax avoidance. But we had to ask about any legal means to avoid or minimise taxes on crypto sales.

Chapman largely threw cold water on that idea.

“In most cases, no,” he said. Chapman continued:

Some taxpayers mistakenly think that you can buy up to $10,000 of cryptocurrency and avoid CGT by taking advantage of the personal use exemption.

This exemption only applies where the cost of the cryptocurrency does not exceed $10,000 and you can demonstrate that the cryptocurrency was to fund genuine personal consumption, such as paying for a holiday, a car, your wedding, etc.

Mistakenly relying on this exemption is one of the biggest reasons people fall foul of the ATO. Expect to be asked to provide proof that you either did – or intended to – use your cryptocurrency to fund personal spending on goods and services.

Where the cost of your cryptocurrency assets exceeds $10,000, the personal use exemption will not be available and CGT will apply, whether the asset was for personal use or not.

What should you do before the end of the financial year?

With the end of the financial year closing in, we asked Chapman how crypto investors should prepare themselves today. According to Chapman:

Usually, you must pay tax on any profits/gains arising in a tax year after you lodge your tax return for that year. If you lodge yourself, your tax return must be sent to the ATO by 31 October 2022. If you use a tax agent, the lodgement date may be as late as 15 May 2023.

When it comes to your crypto investments, he advised that you keep good records regarding:

• the date of the transactions
• the value of the cryptocurrency in Australian dollars at the time of the transaction
• what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).

He advised keeping records, including:

• receipts of purchase or transfer of cryptocurrency
• exchange records
• records of agent, accountants and legal costs
• digital wallet records and keys
• software costs related to managing your tax affairs.

And you’ll want to hold onto these records for 5 years from the time you lodge your tax return.

Unless you’re a tax whiz and understand all the complexities involved around cryptos, you’ll want to strongly consider getting with a tax agent who’s atop digital assets.

H&R Block, for example, uses CryptoTaxCalculator.

Chapman told us this software program “is able to consolidate all digital transactions across multiple wallets, to calculate capital gains and losses of the previous year, and what your tax on each trade may be”.

Happy crypto investing!

The post Investing in cryptos? Here’s what you need to know come tax time: expert appeared first on The Motley Fool Australia.

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• Will higher interest rates take a bite out of the Bitcoin price in 2022?
• What’s ahead for the Bitcoin price in 2022 amid rising interest rates?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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With interest rates almost guaranteed to head upwards this year, multiple experts are emphasising profitability, or at least positive cash flow, as essential for investment.

“As interest rates rise, if you don’t have any profit or cash flow coming through then your valuation is going to deteriorate very rapidly,” Burman Invest chief investment officer Julia Lee told Switzer TV Investing this week.

“So it is important to back those more mature companies… that do have a stable growth outlook as well as profit coming in through the door.”

On top of this, the team at Wilsons reckon small cap ASX shares are especially due for a revival.

“On a valuation basis, small cap PE ratio multiples have compressed almost 20% since the peak in 2020 and now sit in line with the 5-year average,” read its memo to clients.

“This suggests Australian small caps are now approaching an oversold level.”

So combining the need for cash flow and small-cap potential, Wilsons analysts named 5 ASX shares from its Australian Equity Focus List that are worth considering at the moment.

Small caps that are also profitable

All of Wilson’s picks are currently profitable except for Telix, which is scheduled to head into the black in the 2024 financial year:

• Pinnacle Investment Management Group Ltd (ASX: PNI)
• Healthco Healthcare and Wellness REIT (ASX: HCW)
• Judo Capital Holdings Ltd (ASX: JDO)
• Silk Laser Australia Ltd (ASX: SLA)
• Telix Pharmaceuticals Ltd (ASX: TLX)

Out of the group, the analysts rate Silk Laser and Telix as the highest conviction buys.

“Silk Laser offers laser hair removal and other non-surgical aesthetic products and services,” read the Wilsons memo.

“Operational performance remains encouraging, leveraged to COVID reopening.”

The team added that the stock price might be depressed due to “a perceived overhang” from private equity firm Advent International’s shares recently coming out of escrow.

Wilsons isn’t the only advisory firm bullish on the stock. Morgans investment advisor Jabin Hallihan also rated Laser Silk shares as a buy last week.

“The full-year outlook is for solid growth,” he told The Bull.

“The company generated revenue of $182.5 million in the 2022 first half — an 18.5% increase on the prior corresponding period.”

Telix, meanwhile, has just received clearance from the US Food and Drug Administration (FDA).

“We look for news flow on sales and revenue success beginning later this half,” stated Wilsons.

“Large capital raising in 4Q21, with cash break-even still 12-24 months away.”

The post 5 profitable small-cap ASX shares to buy right now: Wilsons appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to buy for CHEAP that have the same name: experts
• 2 buy-rated small cap ASX shares analysts believe have 60%+ upside
• 2 ASX shares rated as strong buys by brokers
• This ASX share just halved in price, so why is it time to buy?
• 3 growing small cap ASX shares going places

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Judo Capital Holdings Limited and PINNACLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended SILK Laser Australia 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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