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If you’re an income investor wanting to take advantage of some upcoming dividend payments, then you’ll need to move fast to catch the ones listed below.

Next week, these five ASX shares will be trading ex-dividend for their latest payouts. This means that investors will need to be on their respective share registers ahead of the ex-dividend date in order to be eligible to receive these payments.

Here’s what you need to know:

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer’s shares will be trading ex-dividend on Monday 21 March for its 8 cents per share fully franked interim dividend. Eligible shareholders will then be paid this dividend next month on 14 April.

Blackmores Limited (ASX: BKL)

This health supplements company’s shares are due to trade ex-dividend on Tuesday 22 March. Last month Blackmores declared a modest fully franked 63 cents per share interim dividend, which will be paid to shareholders on 12 April.

Healius Ltd (ASX: HLS)

Healius was a very strong performer during the first half of FY 2022 thanks to COVID testing demand. This allowed the healthcare company to declare a fully franked interim dividend of 10 cents per share. If you want to receive this dividend when it is paid on 5 April, you’ll need to own Healius’ shares before they go ex-dividend on Thursday 24 March.

Myer Holdings Ltd (ASX: MYR)

Earlier this month, this department store operator declared its first dividend in years after reporting a significant improvement in its performance. Myer is paying a fully franked 1.5 cents per share dividend on 12 May, with its shares going ex-dividend for it on Wednesday 23 March.

SEEK Limited (ASX: SEK)

Finally, this job listings giant’s shares will trade ex-dividend on Wednesday 23 March for its fully franked 23 cents per share interim dividend. This dividend will then be paid to eligible shareholders next month on 7 April.

The post 5 ASX shares trading ex-dividend next week appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble
• $20k invested in these ASX shares 10 years ago is now worth…

Motley Fool contributor James Mickleboro owns SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Blackmores Limited and 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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When it comes to dividend investing, a diversified portfolio may not be the answer as most payouts come from a handful of ASX shares.

In fact, co-portfolio manager of First Sentier’s Equity Income Fund, Rudi Minbatiwala, estimates that around 66% of all dividends paid out come from just seven ASX shares, reported the Australian Financial Review.

Income investors chasing yield might be surprised to note that these seven don’t include infrastructure, healthcare, or telecommunications – defensive sectors that typically are bought for their reliable distributions.

ASX shares with the biggest dividend checks

Three of the seven are the ASX iron ore majors. These are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Our readers may have also picked up on the fact that BHP has been crowned the top dividend payer in the world recently.

Their coffers are flushed with cash thanks to the high iron ore prices. While capital investment and costs are rising, these ASX mining shares are still making more money than they need. This is good news for shareholders looking for fat dividend payouts.

The other four high dividend payers are the big banks. These are the Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australian Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Have dividends reached a temporary peak?

The big four ASX banks have traditionally been a favourite among income investors. This is because they pay a more consistent dividend than the miners, which are largely at the mercy of volatile commodity prices.

But there’s a real risk that total dividends from these seven heavyweights may have peaked – at least for now. Minbatiwala pointed to the pullback in the iron ore price from record levels in 2021.

He thinks ASX banks can deliver some improvement, but their lower payout ratios mean dividends will take time to return to previous highs.

The right approach to ASX dividend investing

“That said, we think income investors can benefit from changing their mindset about equity income investing,” said Minbatiwala.

“Attractive income from equities is delivered through the interaction of yield and growth over time, not yield alone.”

This is why those looking for the biggest dividend bang for their buck may not want to blindly purchase these seven.

Among the big miners, Minbatiwala favours BHP and Rio Tinto. As for the ASX banks, he likes National Australia Bank and Commonwealth Bank of Australia.

The post Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones? appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price on watch as CEO sells $1.4m of shares
• Analysts name the best ASX 200 dividend shares to buy now
• BHP share price rebounds after 9-day slide. Here’s why
• What are the real benefits of ESG investing? Here’s what Westpac says
• Fortescue (ASX:FMG) share price jumps as iron ore price soars

Motley Fool contributor Brendon Lau owns Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Commonwealth Bank of Australia, Fortescue Metals Group Limited, National Australia Bank Limited, Rio Tinto Ltd., and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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ASX tech shares have gone through a lot of volatility this year. We’re not even a quarter of the way through 2022 yet. After a sizeable decline, are some leading tech options now worth contemplating?

Over the long-term, the tech sector may have delivered some high-performers, but it has also seen some tough drops in this calendar year.

Here are two ASX tech shares to consider:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The NDQ ETF has seen a decline of 17% since the start of 2022. However, it has risen by almost 150% over the last five years despite the setback this year.

One of the benefits of owning this investment is that in one trade, investors can get access to companies that are changing the way we live, according to BetaShares. The named examples are Apple, Amazon and Google (Alphabet).

But as the name of the ETF suggests, there are actually 100 businesses in the portfolio.

There are numerous global technology names in the holdings such as Microsoft, Nvidia, Tesla, Meta Platforms (Facebook), PayPal, Adobe and Netflix.

But, it’s not just a tech-only ETF. There are plenty of other businesses in different sectors like Costco, PepsiCo, Moderna, Intuitive Surgical, Starbucks and Mondelez.

The annual management cost of the Betashares Nasdaq 100 ETF is 0.48%.

Xero Limited (ASX: XRO)

Xero is one of the world leaders in the cloud accounting software space. However, the Xero share price has fallen by around 32% since the start of 2022. But, it’s up 477% over the last five years.

The ASX tech share now has more than 3 million subscribers. This number continues to grow at a double-digit pace. For the half-year results to 30 September 2021, Xero reported that its total subscribers grew by 23% to 3 million.

It is seeing growth in many countries, including Australia, New Zealand, the UK, the USA, Canada, South Africa, and Singapore.

The growth in subscribers is helping the company’s operating revenue, which increased 23% to $505.7 million in the HY22 result. The average revenue per user (ARPU) grew 5% to $31.32, while the annualised monthly recurring revenue jumped 29% to $1.13 billion.

Xero’s gross profit margin remains high and continues to grow. It increased another 1.4 percentage points to 87.1%.

The ASX tech share says that small businesses around the world increasingly recognise the critical importance of digital tools to help them adapt and succeed in a changing operating environment.

Management said that there are multiple drivers for cloud-based software adoption, including “digitisation of tax compliance, innovation of financial services and an imperative for small businesses to prepare for the future.” That’s why Xero thinks it has exciting opportunities ahead.

It’s going to keep re-investing the cash generated to drive long-term shareholder value, subject to investment criteria and market conditions.

The post Are these 2 ASX tech shares excellent buys right now? appeared first on The Motley Fool Australia.

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• Guess how much $5,000 invested in Xero (ASX:XRO) shares 10 years ago would be worth now
• Hero to Xero? The Xero (ASX:XRO) share price is now down 36% in 2022
• 3 top international ETFs for ASX investors to look at this month
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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. owns and has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Meta Platforms, Inc., Microsoft, Netflix, Nvidia, PayPal Holdings, Starbucks, Tesla, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Inc., Alphabet (C shares), and Moderna Inc. and has recommended the following options: long March 2023 $120 calls on Apple, short April 2022 $100 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS and Xero. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, Nvidia, PayPal Holdings, and Starbucks. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price is pushing higher on Friday.

In morning trade, the lithium developer’s shares are up 3.5% to $9.89.

Why is the Vulcan share price charging higher?

Investors have been bidding the Vulcan share price higher today after the lithium developer released an update on its Zero Carbon Lithium Project in Germany.

According to the release, Vulcan has commenced the pre-fabrication of its Direct Lithium Extraction (DLE) Demonstration Plant offsite in Germany. This means that the commissioning of the demo plant is on track for the middle of the year.

This follows the successful operation of its DLE Pilot Plant for almost 12 months, which is reporting consistent lithium concentration and low level of impurities. Management notes that lithium recovery rates are averaging 94% to 95%, which is above the levels noted in the 2021 Pre-Feasibility Study.

Vulcan also revealed that it has commenced discussions with local stakeholders to expand operations at its 100% owned geothermal renewable energy plant in Insheim. This would see the company provide heating and energy security to local communities.

Management commentary

Vulcan’s Managing Director, Dr. Francis Wedin, was pleased with the developments.

He commented: “Vulcan is combining the fields of geothermal renewable energy and lithium battery materials, to create the world’s first fully integrated renewable energy and battery raw materials company. Geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany’s energy security and independence. Geothermal energy in Germany has the potential to account for 50% of heat supply in Germany if backed up by sufficient investment.”

“Vulcan’s geothermal and lithium divisions are leaders in their field and are working hard to continue to realise significant project milestones in the development of Vulcan’s Zero Carbon Lithium Project. It is encouraging to see the consistent and successful track record of our lithium Pilot Plant as it comes up to one year of operation, and positive to see the Demo Plant start to take shape. At a time when Europe, particularly Germany’s, reliance on Russian energy is being keenly felt, we stand committed to helping ensure Europe’s and Germany’s energy independence and security of supply of sustainably sourced battery metals,” Dr Wedlin added.

The post Here’s why the Vulcan (ASX:VUL) share price is charging higher today appeared first on The Motley Fool Australia.

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• 2 ASX lithium shares that brokers rate as buys with huge upside potential
• Why did the Vulcan Energy (ASX:VUL) share price plunge 6% on Monday?

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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Leading fund manager Wilson Asset Management (WAM) has revealed two ASX shares that it rates as buys within the WAM Research Limited (ASX: WAX) portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that “invests in the most compelling undervalued growth opportunities in the Australian market”.

The WAM Research portfolio has delivered gross returns (that’s before fees, expenses, and taxes) of 15.3% per annum since the investment strategy changed in July 2010, which is superior to the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 9% per annum.

These are the two compelling ASX shares that WAM outlined in its most recent monthly update for WAM Research.

Accent Group Ltd (ASX: AX1)

The fund manager described Accent Group as an Australian-based company that operates more than 700 stores, over 20 online platforms with 19 brands including Platypus, Vans, and Skechers, that are focused on the footwear sector.

WAM pointed out the company recently announced its FY22 half-year result that included earnings before interest and tax (EBIT) of $30.3 million which was in line with market expectations.

The fund manager noted that Accent Group highlighted in its result that trading in January and February 2022 was severely impacted by COVID-19-related disruptions in Australia and New Zealand, with deliveries from some external suppliers delayed.

Why is WAM particularly bullish on Accent? The fund manager said it believes Accent Group’s trading will improve and the relaxation of restrictions should contribute to increased foot traffic across its store footprint.

Ardent Leisure Group Ltd (ASX: ALG)

Ardent Leisure is the other ASX share named in the WAM Research portfolio.

This company operates in Australia in the US. It may be best known for its theme parks, including Dreamworld and WhiteWater World.

Ardent Leisure was one of the better performers for the WAM Research portfolio last month after beating expectations in its half-year report with its “key” US business called Main Event Entertainment. What does Main Event do? It operates 45 bowling centres in 16 US states.

WAM noted that Main Event Entertainment continued to outperform ‘constant centre revenue’ expectations with growth of 20% in the financial year to date compared to pre-COVID levels in FY20.

The Ardent Leisure share price jumped 18% after investors got a look at the result.

The ASX share reported that its EBIT jumped 98.9% to a loss of $0.5 million. The net loss after tax improved 55.3% to $36.8 million.

WAM said Main Event Entertainment’s growth pipeline remains “robust” with plans for three new centres to open in the second half of FY22.

The fund manager believes that as domestic and international border restrictions ease, momentum will return to the entertainment sector. It sees a strong outlook for both Main Event Entertainment and Dreamworld.

The post Top fund manager reveals 2 smart ASX shares to buy appeared first on The Motley Fool Australia.

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• Why is the Accent (ASX:AX1) share price further sliding today?
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• What’s the outlook for ASX retail shares like Kogan (ASX:KGN)?

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

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

What happened

Tesla (NASDAQ: TSLA) stock moved higher on Thursday afternoon, rising 3.6% through 2:25 p.m. ET — the stock’s third straight day of price gains.

That’s kind of strange, given that the big news on Tesla today isn’t exactly “good” news. 

So what

As Bloomberg reports, rising interest rates on debt offerings — which make it more expensive for companies to raise capital — caused Tesla to suspend a planned $1 billion sale of bonds secured by revenue from Tesla car leases as collateral.  

“A significant portion of the bonds” had already been placed through fund managers since the bond offering began on March 7, notes Bloomberg. But the sales were suddenly interrupted when “short-term interest rate benchmarks [moved] sharply higher.” This raises the prospect that Tesla won’t be able to get access to all $1 billion of the expected fund-raise, potentially disrupting its near-term financial plans.

Now what

That’s the bad news. Now here’s the good: Suspending the offering might also mean that Tesla doesn’t get surprised by high interest rates it must pay on the bonds.

What’s more, Tesla doesn’t necessarily need cash from these bonds right away. According to the latest data from S&P Global Market Intelligence, Tesla’s balance sheet boasts $17.7 billion in cash against only $8.9 billion in debt. And with strong free cash flows of $3.5 billion generated over the past year, the company really isn’t hurting for cash at all. Tesla’s entirely capable of self-financing.

Maybe the real story here really isn’t the obvious headline: “Tesla had to suspend its bond offering.” Maybe the real story is that Tesla’s balance sheet is so rock solid that it didn’t need to issue bonds in the first place — and that’s the good news that is driving Tesla stock higher. 

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

The post Why Tesla stock keeps driving higher appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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.

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

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Insider buying is often regarded as a bullish indicator. This is because few people should know a company better than its own directors.

The theory is that if they have the confidence to buy shares, it could be a sign that things are going well and they expect them to appreciate in value.

Conversely, when directors sell shares, it is often regarded as a bearish signal. After all, you’d be unlikely to sell shares if you thought they were about to increase in value.

With that in mind, this morning Commonwealth Bank of Australia (ASX: CBA) revealed that an insider has been selling some of the banking giant’s shares.

What did CBA announce?

According to a change of director’s interest notice from this morning, CBA Chief Executive Officer (CEO), Matt Comyn, has been trimming down his holding this week.

The notice reveals that Mr Comyn sold a total of 13,520 shares through an on-market trade on Tuesday 15 March 2022. This represented 21.2% of Comyn’s direct interest in the bank, reducing his direct holding down to 50,003 shares.

The leader of Australia’s largest bank received an average of $103.40 per share, which equates to a total consideration of approximately $1.4 million.

Time to panic?

While the CBA share price has rallied hard and is trading within touching distance of its record high, it may be unwise to panic.

After all, Comyn still has a sizeable direct holding of CBA shares with a market value of ~$5.3 million. In addition, the CEO has a hefty indirect holding of 32,084 shares and countless performance rights that could vest in the coming years.

This, you could argue, means that the CEO’s interests remain firmly aligned with shareholders’ interests.

The post CBA (ASX:CBA) share price on watch as CEO sells $1.4m of shares appeared first on The Motley Fool Australia.

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• The CBA share price has soared 8% in a week. What’s happening?
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• The CBA (ASX:CBA) share price has gone nowhere in 10 months… time to buy?
• Top brokers name 3 ASX shares to sell next week

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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With the S&P/ASX 200 Health Care index down 11% since the start of the year, now could be an opportune time to look at the sector.

But which shares should investors consider buying? Two healthcare shares that brokers rate as buys are listed below. Here’s what you need to know about them:

Cochlear Limited (ASX: COH)

The first ASX 200 healthcare share to consider is Cochlear. It is a leading manufacturer and distributor of cochlear implantable devices for the hearing impaired. It has operations across over 30 countries distributing its Nucleus sound processors and Baha bone conduction implants.

While demand for its devices was subdued during the worst of the pandemic, Cochlear has bounced back over the last 12 months with strong profit growth. Pleasingly, analysts at Morgans expect this positive form to continue in the coming years.

It commented: “Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, is all suggestive of an improving earnings profile.”

Morgans has an add rating and $233.20 price target on Cochlear’s shares.

ResMed Inc (ASX: RMD)

Another high quality ASX 200 healthcare share to consider is ResMed. It is a global leader in the development, manufacturing, distribution, and marketing of medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders. These include sleep disordered breathing, chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.

ResMed has been growing at a solid rate for years and appears well-positioned to continue this trend long into the future. Especially given its world class product portfolio, high level of investment in R&D, the growing prevalence and education of sleep disorders, and a major product recall by one of its rivals.

Morgans is also positive on ResMed. It commented: “While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

The broker has an add rating and $40.46 price target on the company’s shares.

The post Analysts name 2 ASX 200 healthcare shares to bring your portfolio back to life appeared first on The Motley Fool Australia.

More reading

• 3 quality blue chip ASX 200 shares analysts are tipping as buys
• Are Cochlear (ASX:COH) shares worth buying for dividends?
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• 3 more of Morgans’ best ASX share ideas for March
• You can’t pick the bottom, but these 4 ASX shares are already bargains: expert

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 Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. 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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Investors have experienced much volatility already in 2022, and many experts predict the rest of the year won’t be much smoother.

WAM Leaders Ltd (ASX: WLE) portfolio manager John Ayoub reckons portfolios are currently in “a game of 3D chess” at the moment.

“I say that because we are juggling rate movements, we are juggling coronavirus and now we are juggling more on Ukraine and Russia,” he told a conference call to clients this month.

“From that perspective, it makes it awfully difficult to get a clear and confident path as to the shape of the portfolio for the next month, let alone for the next 6 to 12 months.”

To combat the uncertainty, Ayoub is currently looking for very specific attributes in ASX shares he’ll purchase.

“Two clear characteristics that the portfolio is now demonstrating a lot more than previously [are] quality and defensive earnings attributes,” he said.

“That’s really where we see our safe haven within the portfolio to ride out this volatility over the next little while.”

The fab 5 to hold onto this year

Ayoub named 5 specific ASX shares that his fund has added recently that meet this “safe haven” definition:

• Brambles Limited (ASX: BXB)
• Endeavour Group Ltd (ASX: EDV)
• Tabcorp Holdings Limited (ASX: TAH)
• Wesfarmers Ltd (ASX: WES)
• Treasury Wine Estates Ltd (ASX: TWE)

The fund manager said his team has been taking advantage of a “dislocation in the market”.

“We see their earnings, their ability to withstand the volatility of global events, particularly in the short-to-medium-term, as key drivers within the portfolio.”

The 5 companies include merchants that provide staple products and those that will see a growth in activity and earnings regardless of interest rate rises.

“Staples [and] inflation beneficiaries are the areas of the portfolio which have become more present and more prominent,” he said.

“We are at the coalface daily and managing risk and adapting as we get new information. That is what we are really focused on right now.”

WAM Leaders itself has gained 2% this year so far to trade at $1.52 on Thursday afternoon. As of the end of February, the listed investment company was trading at a 3.4% premium to net tangible assets.

The post 5 ASX shares to ride out the 2022 volatility: expert appeared first on The Motley Fool Australia.

More reading

• Analysts name the best ASX 200 dividend shares to buy now
• Wesfarmers (ASX:WES) shares in focus as API deal looks all but sealed
• The Woolworths (ASX:WOW) share price has only added $4 in 8 years. Have the dividends been worth it?
• 2 compelling blue chip ASX shares to buy: top fund manager
• Own Wesfarmers (ASX:WES) shares? Here’s how the numbers are looking in the API takeover vote

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Treasury Wine Estates 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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If you’re looking for ASX 200 dividend shares to buy, then the two listed below could be worth considering. After all, these shares are among the best ideas list for one of Australia’s top brokers, Morgans.

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

Wesfarmers Ltd (ASX: WES)

Morgans is a fan of this conglomerate due to its belief that it owns some of the best retail brands Australia has to offer. The broker also feels recent share price weakness has created a buying opportunity and has put an add rating and $58.50 price target on its shares.

As for 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 $50.64, this will mean yields of 3.2% and 3.6%, respectively.

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

Westpac Banking Corp (ASX: WBC)

The team at Morgans also rates this banking giant highly and has an add rating and $29.50 price target on its shares. The broker believes Westpac can achieve its cost cutting targets and is optimistic on its margin outlook.

In respect to dividends, the Morgans has pencilled in fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the latest Westpac share price of $23.68, this will mean yields of 5% and 6.75%, respectively.

Its analysts commented: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”

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

More reading

• Wesfarmers (ASX:WES) shares in focus as API deal looks all but sealed
• What are the real benefits of ESG investing? Here’s what Westpac says
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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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