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If you’re looking for ASX 200 dividend shares to buy, then the two listed below could be worth considering. Both have been named as buys by top brokers and tipped to provide investors with attractive yields.

Here’s what you need to know about these ASX 200 dividend shares:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 dividend share to look at is quick service restaurant operator Collins Foods.

It is one of the largest operators of KFC restaurants in Australia, has a growing presence in Europe, and a smaller but growing network of Taco Bell restaurants across Australia.

The good news is that management still sees plenty of room for growth in both the Australian and European markets. Late last year, it highlighted that it has a significant organic growth pipeline and attractive opportunities to reach scale in KFC Netherlands and Taco Bell Australia, while adding to its core KFC Australia footprint.

Macquarie is fan of the company and currently has an outperform rating and $14.80 price target on its shares. As for dividends, it is forecasting fully franked dividends per share of 33.4 cents in FY 2022 and 37.7 cents in FY 2023.

Based on the current Collins Foods share price of $10.24, this will mean yields of 3.3% and 3.7%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share to look at is Wesfarmers.

It is the conglomerate behind a high quality portfolio of retail assets as well as a collection of industrial businesses and even a lithium miner.

Among its retail assets are some of the most popular brands in the country. These include Bunnings, Kmart, Officeworks, and Priceline Pharmacy.

Morgans is a fan of the conglomerate and notes that it is run by a highly regarded management team and has a strong balance sheet. The latter could be supportive of further M&A activity in the future. The broker has an add rating and $58.50 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $50.34, this will mean yields of 3.2% and 3.6%, respectively.

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

More reading

• 3 high-yield ASX dividend shares trading near 52-week lows
• If you were smart enough to buy $10,000 of Wesfarmers (ASX:WES) shares a decade ago, here’s how much you’d have now
• Broker: The Coles (ASX:COL) dividend will keep rising
• Today is the last hurrah for API. What does this mean for Wesfarmers (ASX:WES) shares?
• Wesfarmers (ASX:WES) now has control of API, but is the real fight just beginning?

Motley Fool contributor James Mickleboro owns Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Collins Foods Limited. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Collins Foods 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 has enjoyed a very positive week so far. Since last Friday, the All Ordinaries Index (ASX: XAO) has gained a healthy 1.8%, which is a solid result for four days of trading. But even though many ASX shares are recovering of late, many are still close to new 52-week lows. That includes some ASX high-yield dividend shares too.

But, as income investors would be well aware, a falling dividend share price raises a company’s running dividend yield. This can often entice investors to take a second look.

So let’s check out three ASX dividend shares that have seen new 52-week lows in the past month, and check out their new dividend yields. Remember, just because an ASX dividend share has a high trailing yield, it doesn’t mean the company will keep its dividends consistent going forward.

3 high-yield ASX dividend shares near 52-week lows

Magellan Financial Group Ltd (ASX: MFG)

Fund manager Magellan has had a shocker of a year over the past 12 months. This once-venerated fund manager has seen its valuation taken out by 68.3% over the past year. That includes a 32.3% haircut in 2022 alone. Magellan hit a new 52-week low of $13.22 earlier this month. But this unfortunate performance has also resulted in a stupendous trailing dividend yield.

On recent pricing, this ASX dividend share has a trailing yield of 15.49%. What’s interesting about Magellan is that during its half-year results that were reported in February, the company paid out its highest interim dividend on record. However, the recent exodus we have seen with Magellan’s funds under management might mean the company will struggle to fund high dividends in the future.

Wesfarmers Ltd (ASX :WES)

ASX 200 blue chip and dividend share Wesfarmers is next up. Prior to 2022, the phrase ’52-week low’ wasn’t uttered too often next to the Wesfarmers share price. But investor sentiment seems to have cooled off over this company of late.

Wesfarmers is now down more than 20% from the all-time high of $67.20 a share that we saw back in August last year. The company’s recent acquisition of API might have something to do with this.

It was around a month ago that we saw Wesfarmers hit a new 52-week low of $47.44 a share. The conglomerate has only bounced off that low by a few dollars and closed yesterday at $50.34. However, this has pushed the Wesfarmers dividend yield up to 3.38% at this pricing. With the company’s typical full franking credits, that gives Wesfarmers a grossed-up yield of 4.83%.

Platinum Asset Management Ltd (ASX: PTM)

Another fund manager in Platinum is our last dividend share to check out today. Platinum made a new 52-week low of $2.05 a share earlier this month, and even at the latest pricing, is only a whisker off that low base at $2.10. But again, this has resulted in a massive stretch of the company’s trailing dividend yield. Platinum shares now have a yield of 10.48% in front of them.

Like Magellan, Platinium has been struggling in recent years with fund underperformance. This may have led to a loss of confidence from investors in this ASX dividend share. Unlike Magellan though, Platinum’s most recent dividend represented a cut from last year’s equivalent payment.

The post 3 high-yield ASX dividend shares trading near 52-week lows appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 dividend shares to buy right now
• If you were smart enough to buy $10,000 of Wesfarmers (ASX:WES) shares a decade ago, here’s how much you’d have now
• Broker: The Coles (ASX:COL) dividend will keep rising
• Today is the last hurrah for API. What does this mean for Wesfarmers (ASX:WES) shares?
• Wesfarmers (ASX:WES) now has control of API, but is the real fight just beginning?

Motley Fool contributor Sebastian Bowen 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 Wesfarmers 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard to continue its positive run and carved out a small gain. The benchmark index rose 0.1% to 7,387.1 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to end the week on a positive note following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% higher this morning. In late trade in the US, the Dow Jones is up 0.85%, the S&P 500 is up 1.2%, and the Nasdaq is up 1.6%.

Oil prices ease

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a poor finish to the week after oil prices eased. According to Bloomberg, the WTI crude oil price is down 3.1% to US$111.34 a barrel and the Brent crude oil price is down 3% to US$117.88 a barrel. Traders were selling oil amid hopes that Iranian oil will boost supply.

Premier Investments half year results

The Premier Investments Limited (ASX: PMV) share price will be on watch today when the retail giant releases its half year results. The Smiggle and Peter Alexander owner has previously guided to half year EBIT in the range of $209.5 million and $211.5 million on revenue of $769 million.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price pushed higher. According to CNBC, the spot gold price is up 1.3% to US$1,962.40 an ounce. Demand for safe haven assets amid the Ukraine-Russia conflict and inflation concerns boosted the precious metal.

NAB shares rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price remains in the buy zone according to analysts at Bell Potter. This morning the broker retained its buy rating and lifted its price target on the banking giant’s shares to $34.50. This follows news that NAB is undertaking another $2.5 billion on-market share buy-back.

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

More reading

• Woodside (ASX:WPL) share price climbs as oil extends rally. What’s next?
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Is the Appen (ASX:APX) share price on the comeback trail?
• Why are ASX 200 bank shares underperforming on Thursday?
• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach

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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Small-cap ASX shares have suffered over the past few months, plunging more than their bigger cousins.

Even after a mini-revival over the last few trading days, the S&P/ASX Small Ordinaries (ASX: XSO) index is still down 7.4% for the year, compared to just 2.8% for the S&P/ASX 200 Index (ASX: XJO).

But of course, not all small-cap businesses are the same. 

Sure, some might be feeling the effects of supply chain delays, inflation, or the war in Europe — but every company is different in the way such external factors impact current and future performance.

And if small caps have been faring worse than large caps in recent weeks, this could be a contrarian opportunity to buy in.

This is why Wilsons nominated a bunch of ASX shares that it thinks have been oversold, even though the businesses remain the same as before the correction.

7 businesses that haven’t changed, except for share price

The Wilsons team named seven small-cap ASX shares:

• Accent Group Ltd (ASX: AX1)
• Super Retail Group Ltd (ASX: SUL)
• Temple & Webster Group Ltd (ASX: TPW)
• Integral Diagnostics Ltd (ASX: IDX)
• Netwealth Group Ltd (ASX: NWL)
• Home Consortium Ltd (ASX: HMC)
• Domain Holdings Australia Ltd (ASX: DHG)

“We screen for profitable small caps that in our view have been [disproportionately] sold down this year, and where the outlook in our view has not significantly changed,” stated Wilsons in a memo to clients.

Out of the group, the analysts held a marginally higher conviction for Super Retail, Temple & Webster, and Integral Diagnostics compared to the rest.

After a 30% share price correction, Super Retail is looking good in the immediate future as COVID impacts diminish.

“Our expectations around a strong Easter performance and potential benefit from next week’s Federal Budget are not yet reflected in the share price.”

Integral Diagnostics will be another post-pandemic recovery story, according to Wilsons.

“The radiology operator was hit by COVID closures over the new year, stalling the reopening benefits,” the memo read.

“Recent $90 million equity raising now leaves the stock digesting this additional capital.”

The Wilsons team reckons Temple & Webster shares are simply cheap now after the company was caught up in the general sell-off of high-growth names.

Domain also plunged from the same fate, although some of it was its own doing.

“In the HY22 result, management warned [of] higher costs and an easing property market in Sydney and Melbourne, which hit the share price.”

The two retail stocks had the most economical 12-month forward price-to-earnings ratio, with Accent at 13.3 and Super Retail trading on 11.6.

The post 7 small-cap ASX shares that have been oversold: Wilsons appeared first on The Motley Fool Australia.

More reading

• Broker names 2 quality ASX dividend shares to buy
• Analysts name 2 ASX 200 dividend shares to buy now
• Top fund manager reveals 2 smart ASX shares to buy
• Why ASX, Coronado, Graincorp, and Integral Diagnostics shares are dropping today
• 2 ASX shares to buy now at bargain prices that you’ve forgotten about

Motley Fool contributor Tony Yoo owns Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netwealth, Super Retail Group Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended Netwealth and Super Retail Group Limited. The Motley Fool Australia has recommended Accent Group, Integral Diagnostics Ltd, and Temple & Webster Group 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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If you have a tolerance for high risk options, then small cap shares could be worth considering.

This is because having a bit of exposure to this side of the market could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are three small cap ASX shares that have been rated as buys:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this growing online marketplace for local services. The team at Morgans is very positive on Airtasker. This is due to the broker’s belief that the company has a very attractive business model and a significant market opportunity that is in the early stages of ecommerce adoption.

Morgans has an add rating and $1.27 price target on the company’s shares.

Catapult Group International Ltd (ASX: CAT)

Another small cap to look at is Catapult. It is a global sports analytics and wearables company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. Catapult’s products are used by many of the biggest sports teams in the world. During the first half of FY 2022, the company reported a 13% increase in revenue to $37.5 million. This was driven by 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

Jefferies is very positive on Catapult. It currently has a buy rating and $3.00 price target on the company’s shares.

PlaySide Studios Limited (ASX: PLY)

A final small cap share to look at is PlaySide Studios. It is one of the largest independent video game developers in Australia with a portfolio of 50+ titles that are delivered across mobile, virtual reality, augmented reality, and PC platforms. The company has also recently announced work for hire deals with games publishing giants 2K Games and Activision Blizzard.

Canaccord Genuity currently has a buy rating and $1.30 price target on its shares.

The post Here are 3 small cap shares brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares analysts are tipping for big things
• 2 ASX growth shares experts think have exciting futures
• 4 fallen ASX shares that are still awesome businesses: expert
• 3 small cap ASX shares tipped for big things by analysts
• 2 compelling ASX shares expecting big growth this decade

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 Catapult Group International Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns and has recommended Catapult Group International 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been outperforming its closest rival in 2022.

It has gained 9.15% year to date, whereas the Bank of Queensland Limited (ASX:BOQ) share price has increased just 1.56%.

Though, both banks have been outperforming the broader market lately. So far this year, the S&P/ASX 200 Index (ASX: XJO) has slumped 2.67% while the All Ordinaries Index (ASX: XAO) has fallen 3.25%.

So, what’s been driving one of the two smaller banks to outperform the other lately? Let’s take a look.

Why is the Bendigo Bank share price outperforming BOQ’s?

The Bendigo Bank share price has had a great start to 2022. It has outperformed all but one of the ASX’s major banks’ stocks over the year so far.

Australia’s fifth largest retail bank’s shares were bolstered earlier this year by the release of its half-year results.

Bendigo Bank reported an 8.5% increase in revenue over the first half of financial year 2022, as well as a 31.7% boost to statutory net profit.

Its cash earnings also increased 18.7% while its net interest margin compressed 14 basis points.

Potentially more notable though was Bendigo Bank’s bolstered dividend.

The bank announced it would be providing shareholders with a fully franked 26.5 cent dividend. That was 12.8% more than its previous interim dividend.

The Bendigo Bank share price gained 4.4% on the back of its half year results.

It’s worth noting that, on the release of its results, Bendigo Bank’s stock stopped trading alongside the S&P/ASX Financials Index (ASX: XFJ), as it had been previously.

Sadly, the Bank of Queensland share price hasn’t experienced such a boost – yet. Additionally, it has been mirroring the financial sector in 2022.

The Bank of Queensland is set to release its interim results on 14 April. No doubt, the market will be keeping a close eye on how it performed over the first half.

It’s also worth noting, brokers are bullish on both Bendigo Bank and the Bank of Queensland.

As The Motley Fool Australia’s Zach Bristow recently reported, 73% of analysts covering Bank of Queensland believe its shares are a buy.

Meanwhile, brokers at Credit Suisse, Morgans, and Jarden Australia all recently upgraded their outlook on Bendigo Bank shares, as my colleague Monica O’Shea reports.

The post Why has the Bendigo Bank (ASX:BEN) share price been smashing BOQ in 2022? appeared first on The Motley Fool Australia.

More reading

• The Bank of Queensland (ASX:BOQ) share price has rallied 11% in 2 weeks
• Brokers: Buy these 2 underrated ASX dividend shares
• Can the Bendigo Bank (ASX:BEN) share price stick above the $10 mark?
• Are Bank of Queensland (ASX:BOQ) shares cheap right now? Read what analysts say
• 2 dividend shares analysts rate as buys with big yields and even bigger upside

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 owns and has recommended Bendigo and Adelaide Bank 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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Electro Optic Systems Holdings Ltd (ASX: EOS) shares crumbled today despite no news being released by the Australian technology company.

But let’s put this into perspective. Up until today, the Electro Optic Systems share price has been skyrocketing. In fact, the shares are up by 39% in 30 days.

This mostly relates to a number of countries upping their defence spending in light of the Russia-Ukraine conflict. War is on the minds of ASX investors and space is the new defence frontier, it seems.

This has special relevance to Electro Optic Systems as it develops and produces electro-optic technologies for the aerospace market, including defence.

Australia investing $7 billion in space defence

Australia is ramping up its space defence spending, committing about $7 billion over the next 10 years to develop our space capabilities. This could spell good news for the Electro Optic Systems share price.

Yesterday, the Department of Defence announced the establishment of a Defence Space Command. It also released its Defence Space Strategy, which aims to secure Australia’s access to space for civilian and military uses.

Defence Space Commander Air Vice-Marshal Cath Roberts said integrated space capabilities incorporating all arms of the Australian Defence Force were necessary in today’s world.

In a report in The Guardian, Air Vice-Marshal Roberts said theoretically a Chinese satellite could take out Australia’s national broadband network (NBN).

Roberts said: “The activities by China and Russia, which have been fairly well documented in the public domain, scare me. I think our lack of capability at the moment against those threats … that is concerning.”

She further stated:

What we see from space gives us an unsurpassed advantage in surveillance and intelligence. It is central to how we will fight and win in the future across multi-domain operations, using advanced hypersonics, precision strike missiles and guided weapons. We are enhancing our sovereign capabilities so Australia can be self-reliant in the detection of threats and collection of information for the defence of our nation.

Electro Optic Systems derives most of its revenue from defence customers, particularly in North America. It develops and manufactures advanced fire control, surveillance, and weapon systems for approved military clients.

What’s been happening at Electro Optic Systems lately?

Last week, Electro Optic Systems announced a strategic review to maximise shareholder value. The board reckons the company is undervalued given its exciting future prospects.

As my Fool colleague Aaron reported last week, management has been seeking funding options for its wholly-owned United States subsidiary, SpaceLink. This relates to the manufacture and launch of a constellation of medium earth orbit satellites to create a “communications superhighway for the space economy”.

The company is also looking to turbocharge growth in its defence and space divisions.

Electro Optic Systems share price snapshot

The Electro Optic share price closed Thursday’s session down 11.89% to $2.89. It is down almost 45% over the past 12 months but up 21% this year to date.

The post Electro Optic (ASX:EOS) shares down 12% today but up 40% in a month appeared first on The Motley Fool Australia.

More reading

• Electro Optic (ASX:EOS) share price surges again, up 50% in 7 days. Here’s why
• Why is the Electro Optic (ASX:EOS) share price rocketing 16% today?
• What’s impacting the Electro Optic (ASX:EOS) share price this week?
• Could this ASX defence share be set to benefit from the Ukraine crisis?
• Electro Optic (ASX:EOS) share price plunges 13% on net loss

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings 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 Medibank Private Ltd (ASX: MPL) share price has had a sluggish start to the year.

Medibank shares have fallen 11% since 4 January, the first trading day of the year. In today’s trade, the share fell 0.33% to $3.05.

Let’s take a look at what has been impacting the Medibank share price.

What’s going on with Medibank?

The private health insurance giant’s shares have had a tough start to the year after gaining 11% in 2021.

Medibank was hit with a downgrade recommendation from the team at JP Morgan earlier this year. The broker recommended the share price as a ‘sell’ and reduced the price target from $3.30 to $3.

The company also faced calls to pass more COVID savings back to members from the Private Hospital Association chief executive Michael Ross.

The Medibank share price fell 14% between market close on 7 January and 31 January alone. Elective surgery bans in Victoria and NSW amid the Omicron variant wave could have impacted the company’s shares.

On 25 February, the Medibank share price slipped 4% on the back of the company’s H1 FY22 results. Net profit after tax (NPAT) dropped 2.7% to $220.2 million. The company reported elective surgery restrictions during the COVID-19 pandemic had taken a toll.

Commenting on the elective surgery bans, CEO David Koczkar said:

We’ve always committed to return all permanent net claims savings due to COVID. And while we are pleased to be able to support our customers throughout the pandemic, now is the right time for governments to minimise future use of restrictions to elective surgery.

In late February, Medibank appointed Kathryn Fagg AO and Peter Everingham to the board as non-executive directors. Commenting on the appointment, chairman Mike Wilkins said:

As our company continues to grow, and as we continue to increase our focus on delivering for our customers, we are pleased to be able to appoint two new directors with such extensive experience and a proven track record.

These new non-executive directors will commence their roles on 31 March.

In better news for the company, Broker Credit Suisse has recently put a $3.50 price target on the Medibank share. This is nearly 15% more than the current share price.

Medibank declared a franked interim dividend of 6.1 cents per share

Medibank share price snapshot

The Medibank share price has climbed nearly 5% in the past 12 months, but it has shed 6% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has leapt 9% in the past 52 weeks.

Medibank has a market capitalisation of about $8.4 billion based on its current share price.

The post Why has the Medibank (ASX:MPL) share price lost 11% since early January? appeared first on The Motley Fool Australia.

More reading

• Own Medibank (ASX:MPL) shares? Now you own a piece of this tech start-up
• Healthy upside: Expert rates Medibank (ASX:MPL) share price as a good buy
• Leading brokers name 3 ASX shares to buy today
• Own Medibank (ASX:MPL) shares? Here’s all you need to know about the latest dividend
• Medibank (ASX:MPL) share price backtracks as profit slips

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 Transurban Group (ASX: TCL) share price has fallen by around 6% since the start of 2022. But could the business soon see a recovery and drive higher?

For readers that don’t know, Transurban is one of the world’s largest toll-road operators. It designs, builds, owns and operates toll roads. Its asset base includes some of Australia’s most well-known toll roads such as the Logan Motorway and AirportlinkM7 in Brisbane, CityLink and the West Gate Tunnel in Melbourne, and the Eastern Distributor and WestConnex in Sydney.

But it’s becoming increasingly global. Transurban also has operations in Greater Washington, United States and Montreal, Canada.

What’s happening to the Transurban share price?

There has been a lot of volatility on the ASX share market amid the Russian invasion of Ukraine as well as the prospect of higher interest rates to deal with strong inflation.

Why could interest rates matter to the valuation of a toll road business? Legendary investor Warren Buffett once said this about interest rates:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So, every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Traffic has been impacted by COVID-19, it’s still lower than it was pre-COVID. However, traffic levels are recovering from the worst point seen in 2020.

FY22 half-year earnings wrap

The Transurban share price is slightly higher than when it reported in mid-February 2022.

With the impacts of lockdowns in places like Melbourne and Sydney, Transurban experienced a 4.8% decrease in average daily traffic across the portfolio in the FY22 half-year results. It also experienced a 0.2% decline of proportional toll revenue to $1.16 billion.

However, total proportional costs rose 10% to $417 million. This led to a 4% reduction of proportional earnings before interest, tax, depreciation and amortisation (EBITDA) to $805 million.

Free cash, including capital releases, fell 2% to $459 million.

Opportunity pipeline

Transurban says that it has a long-term investment horizon and a pipeline of opportunities in core markets which enables it to take a disciplined approach in growing the portfolio.

Some examples of those opportunities in the next five years include the Brisbane Logan Motor and Gateway Motor widening. In the US, there are opportunities like phase 1 of the Maryland Express Lanes project and “future traditional toll road and Express Lanes acquisition opportunities”.

Is the Transurban share price compelling?

The listed investment company (LIC) Australian Foundation Investment Co. Ltd (ASX: AFI) thought that Transurban shares were attractive, with AFIC adding shares to its portfolio in the last few months.

AFIC says that Transurban has a good track record of capital allocation by management, driving “strong” long-term free cash flow growth. The LIC also said that Transurban has a solid balance sheet.

The investment company is expecting a FY23 recovery for Transurban. It noted that the cost blowout issue at the West Gate Tunnel project has now been resolved. AFIC likes the pipeline of potential opportunities, which it called attractive.

Another investment fund that likes Transurban is Magellan Infrastructure Fund (Currency Hedged) (ASX: MICH). On 28 February 2022, Transurban was one of the biggest ten positions in the portfolio. Toll roads made up 14% of the total portfolio.

The post 2022 is not being kind to the Transurban (ASX:TCL) share price. Could this be set to change? appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 shares is AFIC (ASX:AFI) betting on to make money?
• Worried about how rising petrol prices might impact the Transurban (ASX:TCL) share price? Read this
• The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait?
• Why this broker says the Transurban (ASX:TCL) share price can drive 14% higher
• Top brokers name 3 ASX shares to buy next week

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 Magellan Infrastructure Fund. 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 Kalamazoo Resources Ltd (ASX: KZR) share price had a positive day of trade on Thursday.

The mineral explorer’s shares jumped a massive 30% to 39 cents.

Why did the Kalamazoo Resources share price jump 30%?

The rise in the Kalamazoo Resources share price was a bit of a mystery. So much so, the company was hit with a speeding ticket from stock exchange operator ASX Ltd (ASX: ASX).

However, the mineral explorer’s management team were at a loss to explain why there was a sudden buying frenzy.

When quizzed about the rise, Kalamazoo confirmed that it was not aware of “any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.”

Nor was the company “aware of any other explanation.”

What else could it be?

It is worth noting that while Kalamazoo Resources has been known as a gold explorer previously, its recent foray into lithium has piqued the interest of some investors.

In July last year, the company reported the identification of significant pegmatite-hosted lithium mineralisation potential at Kalamazoo’s 100% owned gold and base metals DOM’s Hill Project, East Pilbara.

This operation is close to two of the world’s largest pegmatite-hosted lithium mines at Pilgangoora and Wodgina, which are owned by Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN), respectively.

Since then the company has entered into a joint venture with lithium giant Sociedad Química y Minera de Chile (SQM), which will see SQM earn an additional interest in mineral rights based on exploration activities.

Based on the Kalamazoo Resources share price performance, some investors may be optimistic that these activities will uncover something material in the near future.

The post This ASX lithium share just rallied 30% and copped a speeding ticket 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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