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As we head into the cooler autumn months, we asked our Foolish contributors to compile a list of ASX dividend shares experts reckon are worth considering in March. Here is what the team came up with.

Tristan Harrison: Brickworks Limited (ASX: BKW) 

Brickworks is a building products business with a trailing grossed-up dividend yield of 4.1%.  

The company funds its dividend – which hasn’t been cut for more than 40 years — from the growing cash flow of its investments division and a 50% stake of the industrial property trust.  

The trust builds industrial properties on excess Brickworks land. It just completed a huge warehouse in Sydney for Amazon. It’s also building several other large distribution warehouses for other businesses, including major supermarkets.  

Pre-committed developments completed over the next two years will add $50 million of gross rent and increase leased assets by $1.2 billion.  

Motley Fool contributor Tristan Harrison does not own shares of Brickworks. 

Mitchell Lawler: Infomedia Limited (ASX: IFM)

Infomedia could be considered a little-known software-as-a-service (SaaS) company operating in the automotive industry. Its primary order of business is providing a leading online Electronic Parts Catalogue – connecting automotive dealers with up-to-date part manufacturing data. 

While many tech companies have been sold off in recent months – including Infomedia (down ~23%) – due to the market going risk-off, this business remains profitable and debt-free. 

Additionally, Infomedia announced the appointment of its new CEO last week following the resignation of its former CEO in October last year.

For the income investor, this company touts a dividend yield of approximately 3.5% with 70% franking.

Motley Fool contributor Mitchell Lawler does not own shares in Infomedia Ltd.

James Mickleboro: Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT is the largest Australian ASX-listed real estate investment trust that invests in social infrastructure properties. These are properties such as emergency command centres, pathology facilities, childcare centres, and council buildings.

At the last count, the company owned 364 properties and boasted a 100% occupancy and a massive 14.6-year weighted average lease expiry.

Goldman Sachs is very positive on its future and has a conviction buy rating and $4.20 price target on its shares. Its analysts stated: “We continue to believe the REIT is positioned for a solid growth outlook given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue accretive investment opportunities.”

As for dividends, the broker is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on the current Charter Hall Social Infrastructure share price of $3.99 at Monday’s close, this implies yields of 4.3% and 4.6%, respectively.

Motley Fool contributor James Mickleboro does not own shares of Charter Hall Social Infrastructure REIT.

Sebastian Bowen: iShares Global Consumer Staples ETF (ASX: IXI)

This ETF invests in a global basket of consumer staples shares. It has holdings from a range of regions, but mostly from the United States.

Consumer staples companies typically manufacture goods that are deemed as food, drinks, or household essentials. Although this ETF has a seemingly bland trailing yield of roughly 2.1%, it holds many companies that are dividend aristocrats, such as Coca-Cola Company, PepsiCo and Walmart.

A dividend aristocrat is a company that has raised its dividend payments every year for at least 25 years. Additionally, consumer staples, due to their defensive ‘needs-based’ nature, can help to add stability to a portfolio.

Motley Fool contributor Sebastian Bowen does not own shares of the iShares Global Consumer Staples ETF, but owns Coca-Cola, PepsiCo and Walmart.

Aaron Teboneras: Dicker Data Ltd (ASX: DDR) 

Dicker Data is an Australian distributor of computer hardware, software, and related products. Its vendor partners include many of the world’s leading IT names. 

In its FY21 financial scorecard, the company reported double-digit growth for both total revenue and profit after tax. It also expanded its active service base with more than 8,200 reseller partners. 

As a result, the board opted to increase its quarterly dividend to 15 cents per share. This represented a 66.6% increase from the 9 cents declared in the previous period. 

The company noted that it intends to maintain its dividend policy and to continue paying interim dividends in quarterly instalments. 

Over the past 12 months, Dicker Data has delivered dividends totalling 42 cents, up 27.3% on FY20. 

Furthermore, the Dicker Data share price has accelerated 25% since this time last year. 

Motley Fool contributor Aaron Teboneras owns shares of Dicker Data Ltd. 

The post Top ASX dividend shares to buy in March appeared first on The Motley Fool Australia.

More reading

• Why CSL, Dicker Data, Elders, and Virtus Health shares are charging higher
• Leading brokers name 3 ASX shares to buy today
• 2 ASX dividend shares with big yields that analysts rate as buys
• Broker names the 3 best ASX tech shares to buy today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Dicker Data Limited, and Infomedia. The Motley Fool Australia owns and has recommended Brickworks, Dicker Data Limited, and iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Infomedia. 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 fund manager Wilson Asset Management (WAM) has told investors about two compelling ASX shares that it has in its portfolio.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

There’s also one called WAM Capital Limited (ASX: WAM) which targets “the most compelling undervalued growth opportunities in the Australian market”.

The WAM Capital portfolio has delivered an investment return of 15.8% per annum since its inception in August 1999, before fees, expenses and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAO) return of 8.4% per annum over the same timeframe.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

Ardent Leisure Group Ltd (ASX: ALG)

Ardent Leisure owns and operates leisure and entertainment businesses in Australia and the US, including theme parks such as Dreamworld, WhiteWater World and SkyPoint.

WAM pointed out that during February 2022, the ASX share announced its FY22 half-year result beat expectations in its important US business, Main Event Entertainment. This business operates 45 bowling centres in 16 states in the US.

The fund manager noted that Main Event Entertainment continued to outperform constant centre revenue expectations, by achieving levels of over 20% growth in the financial year to date compared to pre-COVID levels in FY20.

Main Event Entertainment’s growth pipeline remains “robust” with plans for three new centres to open in the second half of FY22. As domestic and international border restrictions continue to ease, the fund manager believes momentum will return to the entertainment sector and it sees a strong outlook for both Main Event Entertainment and Dreamworld.

Uniti Group Ltd (ASX: UWL)

This ASX share is described as a business focused on the construction of core telecommunications infrastructure and is the owner and operator of fibre cable networks across Australia.

In February 2022, Uniti Group announced its FY22 half-year result, which showed a 98.4% increase in revenue to $109.5 million and a 130.3% increase in operating cash flow to $65.4 million. The ASX share’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year was $70.5 million, up 140.3%.

WAM noted that despite achieving a result that was in-line with what the market was expecting, Uniti Group’s half-year result disappointed the market, resulting in a fall of the Uniti Group share price after the announcement.

In February, Uniti Group commenced its on-market share buyback. WAM sees the potential for the company to make earnings accretive acquisitions thanks to its “strong” balance sheet.

The post These 2 compelling ASX shares are a buy: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 punished ASX shares that don’t deserve to be (and experts are buying)
• I’m still kicking myself for missing the ASX company with the perfect business model: expert
• Broker names the 3 best ASX tech shares to buy today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Dream result: Ardent Leisure (ASX:ALG) share price soars 18% on earnings

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 Uniti 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) was back on form and started the week with a strong gain. The benchmark index rose 1.2% to 7,149.4 points.

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

ASX 200 expected to sink

The Australian share market looks set to give back the majority of yesterday’s gains on Tuesday. This follows a volatile start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1.05% lower. In late trade, the Dow Jones is flat, the S&P 500 has fallen 0.65%, and the Nasdaq is down 1.8%. The Dow was up as much as 450 points at one stage before paring its gains.

Oil prices fall heavily

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices sank. According to Bloomberg, the WTI crude oil price is down 7.3% to US$101.42 a barrel and the Brent crude oil price has fallen 6.7% to US$105.14 a barrel. This follows talks between Russia and Ukraine, as well as new COVID lockdowns in China.

Rio Tinto acquisition

The Rio Tinto Limited (ASX: RIO) share price will be on watch today after it announced a non-binding proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill that it doesn’t already own. The mining giant has made an all-cash offer of ~US$2.7bn. If the deal completes, Rio Tinto’s share of the Oyu Tolgoi operation will increase to 66%.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 1.55% to US$1,954.40 an ounce. This follows a rise in Treasury yields amid rate hike optimism.

Shares going ex-div

A number of ASX 200 shares are going ex-dividend this morning and could trade lower on Tuesday. This includes media giant News Corp (ASX: NWS), copper miner Sandfire Resources Ltd (ASX: SFR), and telco TPG Telecom Ltd (ASX: TPG).

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

More reading

• Why is the Rio (ASX:RIO) share price down 12% in a week?
• Hero to Xero? The Xero (ASX:XRO) share price is now down 36% in 2022
• Why now is a great time to invest in ASX shares (even if you’re fearful of an uncertain world)
• These ASX 200 shares trade ex-dividend tomorrow. Here’s what you need to know
• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble

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 TPG Telecom 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 Rio Tinto Ltd (ASX: RIO) share price has slumped in the past week after trading ex-dividend.

Rio shares have lost 12% between Monday 7 March and today’s close. The company’s share price finished the day 0.52% down, at $111.12.

Let’s take a look at what’s impacted the Rio share price during the past week.

Why did the Rio share price fall?

A major reason for the share price fall was the company trading ex-dividend last week. The company will be offering a fully-franked final dividend of US$10.40 per share on 21 April.

Trading ex-dividend tends to make a company’s share price fall in proportion to the dividend paid out, as my Foolish colleague Aaron noted last week. Any shareholders who bought Rio Tinto shares on or after ex-dividend day are not eligible for the latest dividend.

Iron ore prices may have also impacted the Rio share price in the past week. The global iron ore price slipped 4% from $US159 per tonne on 7 March to the latest reported price of $152.50, Trading Economics data reveals.

In other news, Rio also revealed it was cutting all ties with Russia on Thursday. This sparked questions about the company’s Queensland Alumina Limited refinery. Russian company Rusal holds 20% of this business. There is speculation Rio may need to buy out Rusal’s share of the venture.

Also last week, Rio was hailed as one of the top three dividend payers in the world for 2021. The only ASX share to top Rio in the list of global dividend payers was BHP Group Ltd (ASX: BHP). Fortescue Metals Group Limited (ASX: FMG) came in at number 10.

Rio share price snapshot

The Rio share price has shed nearly 5% in the past year. It’s fallen 9% in the past month alone although it is up 11% year to date.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 5.7% over the past 12 months.

Rio has a market capitalisation of about $41 billion based on its current share price.

The post Why is the Rio (ASX:RIO) share price down 12% in a week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• Guess which 3 ASX 200 shares are among the top 10 dividend payers in the world
• Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant?
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today

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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We all know that 2022 hasn’t been the kindest year to ASX shares thus far. Even after today’s robust gains on the market, the S&P/ASX 200 Index (ASX: XJO) remains down 5.8% year to date. However, that’s nothing compared to the Xero Limited (ASX: XRO) share price.

Xero shares have certainly not been a market beater in 2022. In fact, while the ASX 200 has lost 5.8% this year, the Xero share price has plunged by a rather astounding 35.99% over 2022 so far. It’s also down 17.24% over the past 12 months.

Xero share price cops a beating

Now, investors may have gotten used to Xero giving back astronomical returns. After all, this is a company that, despite its recent woes, remains up more than 425% over the past 5 years. So what’s changed for Xero?

Well, unfortunately, it’s not exactly clear. We haven’t gotten much news out of the company in 2022. Xero hasn’t even reported any earnings this year.

But what we do know is that Xero is a pre-profit growth share that, prior to this year, had enjoyed some astounding gains. And this company is not the only one of those that has copped a belting this year. 2022 has seen tech shares of all stripes suffer immense losses.

Take Zip Co Ltd (ASX: Z1P). It’s down a far-nastier 64.1% year to date. Before Afterpay was swallowed by Block Inc (ASX: SQ2), it had also had a rough trot. And Block shares have been under the weather as well, losing more than 20% since their ASX debut.

In fact, the entire S&P/ASX All Technology Index (ASX: XTX) remains down more than 23% year to date.

So it’s possible that Xero has just been caught up in a general market distaste for growth and tech companies that has been one of the defining themes of ASX investing so far this year.

But now that Xero is down by a notable 36% or so in 2022, and down an even more significant 40% from the all-time highs we saw late last year, many investors might be wondering if it could be time to buy Xero shares.

Could it be time to buy?

Well, there are more than a few brokers who think it could be. Goldman Sachs, Citi and Morgan Stanley have all rated Xero as a buy in the past month. As have analysts at Sage Capital and even here at The Motley Fool (be sure to check out why Fool analyst Ryan Newman likes Xero).

So there are a lot of fans of this cloud-based accounting software provider at the moment.

At the current Xero share price, this ASX 200 tech share has a market capitalisation of $13.95 billion.

The post Hero to Xero? The Xero (ASX:XRO) share price is now down 36% in 2022 appeared first on The Motley Fool Australia.

More reading

• Why now is a great time to invest in ASX shares (even if you’re fearful of an uncertain world)
• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• 2 punished ASX shares that don’t deserve to be (and experts are buying)
• Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst
• These were the best performing ASX 200 shares last week

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

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The Telstra share price finished in the green today amid speculation it plans to buy a major stake in Fetch TV.

The company’s shares gained 1.56% today and were trading at $3.90 at the market close. In comparison, the  S&P/ASX 200 Index (ASX: XJO) closed 1.2% higher.

Let’s take a look at what might have impacted investor sentiment in the telco today.

Potential new deal

Speculation is mounting Telstra plans to buy a 51% stake in Fetch TV, an independent Australian pay-TV provider offering streaming services via the internet.

According to a report in the Sydney Morning Herald, the telco plans to build a combined platform that can “compete against international companies such as Apple and Google”.

Telstra also holds a 35% stake in pay-TV provider, Foxtel. Fetch TV has coverage in at least 670,000 homes.

Sources told the publication that Telstra and Fetch TV were in advanced talks about a possible deal that could be finalised as soon as the end of March.

Flood assistance

In other news, Telstra has offered $250,000 for communities impacted by the floods in Queensland and New South Wales.

Telstra CEO Andy Penn said in a statement on Friday:

As part of our overall support for flood-affected communities, the Local Flood Grants will provide either cash or technology to the value of up to $10,000 to eligible local organisations.

Our local Telstra teams have been on the ground working around the clock to get communities back online as quickly as possible.

Furthermore, analysts have recently recommended Telstra as a potential dividend share to buy.

As my My Foolish colleague James reported, Morgans predicts a fully franked dividend of 16 cents per share in FY 2022 and FY 2023. The broker has a $4.56 price target on Telstra shares.

Telstra share price ASX recap

The Telstra share price is up 27% over the past 12 months, but shares in the telco have dropped 3% in the past month and are down 6.7% year to date.

For perspective, the benchmark ASX 200 has returned nearly 5% over the past year.

Telstra has a market capitalisation of almost $46 billion based on its current share price.

The post Telstra (ASX:TLS) share price climbs amid rumours the telco plans to take on US giants appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX 200 dividend shares with top yields
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why was everyone talking about the Telstra (ASX:TLS) share price today?
• Own Telstra shares? Here’s why the telco faces new legal action
• Broker sees 19% upside for Telstra (ASX:TLS) share price and 4% dividend yield

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

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The Novonix Ltd (ASX: NVX) share price finished in the red on Monday, closing at $5.12, down 0.19% on the day.

It’s been a difficult year for Novonix shareholders who have seen their holdings lose more than 44% in value since trading recommenced in 2022.

While the company has struggled, the S&P/ASX All Technology Index (ASX: XTX) has also faltered more than 22% this year so far. However, Novonix is still trailing well behind the broad tech sector over that time.

What’s up with Novonix shares?

The market has punished the battery materials and technology company in recent months with Novonix shares continuing their rapid descent from a high of $10.68 in early January.

At the same time, the broad tech sector has taken a downturn as well. In fact, Novonix tends to track the index quite closely, as shown below.

Not only that, but rising yields on long-dated bonds has resulted in a correction to high-beta and high-growth equities in 2022.

The relationship between bond yields and stock valuations is inversely related, so the rise in yields has compressed ASX tech share valuations this year to date (as shown below).

Hence, with a downturn in the wider sector, this appears to have spilled over into downward pressure on Novonix as well.

Today, the company’s shares traded at near six-month lows on volumes less than 50% of the four-week trading average.

Investors have been piling out of the company since it reported a much larger expenditure base for the first half. Brokers took notice of the blowout too and made note of the company’s capital management.

Last month, Morgans said that Novonix had spent almost $9 million more than the broker’s estimates on operations and that headcount has doubled in its battery testing services division.

As a result of its market forecasts and the likelihood of operating costs increasing again next year, the broker lowered its valuation to $4.88 per share but kept a hold rating on the stock.

Novonix share price snapshot

In the last 12 months, the Novonix share price has shot up around 85% and is leading the benchmark over that time.

However, in the last month alone it has collapsed 22% and is flat over the last five days of trading.

The company has a market capitalisation of $2.4 billion.

The post Why is the Novonix (ASX:NVX) share price down 44% YTD? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• ASX tech shares take a hammering on Friday
• Why is the Novonix (ASX:NVX) share price down 22% in a month?
• Expert explains why this investment opportunity is ‘much bigger’ than hydrogen
• Novonix (ASX:NVX) share price jumps as net assets, cash earnings spike

Motley Fool contributor Zach Bristow 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 CSL Ltd (ASX: CSL) share price closed higher today, finishing 2.37% in the green at $262.62.

The gain comes despite nothing remarkable coming out of the biotech giant’s camp today.

However, the company’s shares jumped from the open, trading as high at $264.17 apiece and as low as $258.53 each during the day.

What happened?

There’s been nothing price-sensitive out of CSL’s corner today. However, it appears that healthcare shares, on the whole, are strengthening this week.

The S&P/ASX 200 Health Care Index (XHJ) gained around 2% from the start of trade today, finishing 1.86% higher.

CSL is also on the rise this week, as illustrated by the chart below.

In a note that bodes well for CSL, analysts at Citi have pointed out potential growth in the blood plasma collection industry.

The broker reckons that CSL’s blood plasma collection volumes could normalise to pre-pandemic levels, which could have a positive impact on the company’s share price.

Currently, more than 87% of brokers covering CSL have it as a buy right now whereas just two firms have it as a hold, according to Bloomberg Intelligence. Indeed, there are no analysts urging clients to sell the company right now.

So what?

Lower bood plasma collections have plagued CSL’s growth engine since late 2020 when volumes took a huge hit amid the COVID-19 pandemic.

CSL is offering some donors incentives in a bid to increase volumes. At the same time, it was reported CSL upped its payment to US donors during the pandemic to entice people to keep their appointments. CSL is one of a handful of blood plasma collection vendors around the world.

Recently, on 10 March, the company advised that it had received clearance in the US for use of the Rika Plasma Donation System developed by Terumo Blood and Cell Technologies.

“CSL Plasma believes additional features of the new Rika system can enable the collection of more plasma, in shorter periods of time, supporting quality and safety, and ultimately better serving patients who rely on plasma-based therapies,” the company said in a statement.

Citi’s rating appears to recognise CSL’s efforts to drive its collection volumes higher.

CSL share price snapshot

In the last 12 months, the CSL share price has climbed almost 4% but is down almost 10% this year to date.

During the past month, things have turned around with the company’s shares gaining almost 6%.

CSL has a market capitalisation of more than $126 billion.

The post Why CSL (ASX: CSL) shares climbed on Monday appeared first on The Motley Fool Australia.

More reading

• Why CSL, Dicker Data, Elders, and Virtus Health shares are charging higher
• Leading brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• $20k invested in these ASX shares 10 years ago is now worth…
• The CSL (ASX:CSL) share price has struggled to gain traction in 2022. Does that make it cheap?

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

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ASX shares drove north today amid a snapback rally that’s been in situ since early March.

The benchmark S&P/ASX 200 Index (ASX: XJO) jumped 1.21% today to 7,149.4 points at the close, its highest level in a week.

There’s no denying a seismic shift has taken place amongst global equity markets when it comes to the themes of environment, sustainability and governance (ESG).

In fact, there’s a whole new investment ‘factor’ that has arisen as a result of the paradigm shift – similar to the value, momentum and growth factors, for example.

However, there are still a number of hurdles ASX shares must overcome in order to cross over to ‘greener’ pastures so to speak, and to which investors must still be aware of the risks involved.

What are the roadblocks?

ASX shares have certainly come a long way since the days when ‘creating shareholder value’ was the primary means and focus of most publicly listed companies.

“However, obstacles that presently prevent some companies and investors from fully utilising sustainable finance remain, which in some cases are impeding further overseas investment into the region”, says Anthony Miller, chief executive of Westpac Institutional Bank.

In the release titled “Financing for Sustainability: Asia Pacific’s evolving ESG market”, the bank manager covers the state of sustainable finance in the region, including the milestones and challenges ahead.

Among these, lack of reliable data is the biggest obstacle for both investors and issuers Miller says, noting that this impedes the ability to measure the impacts of sustainable finance.

“For issuers [of finance], the lack of reliable data to measure the impact of sustainable finance presently ranks as the single biggest obstacle by 25% of respondents”, Miller noted.

This is above the remaining 16% of secondary issues related to transaction costs and insufficient green or sustainable assets, he added.

What else?

Reporting requirements are another thorn in the side of investors and companies alike when it comes to ESG, Miller said, particularly since it is such a novel and new domain.

“In their own jurisdictions, most investors (75%) and issuers (74%) agree that the regulatory and reporting requirements for ESG investments or disclosures in their country are clear”, Miller said.

“Regionally though, 79% of issuers and investors agree or strongly agree that growth of sustainable finance in Asia Pacific will be impeded without regional agreement on regulatory and reporting requirements for corporate climate risk”.

Issues around data aren’t an easy fix, the banking manager also said, particularly as it comes down to factors like classification, taxonomy and specific regulations.

Across the Asia Pacific (APAC) region, approaches differ substantially and this is something that is being looked at in focus. For instance, back in November, the International Sustainability Standards Board (ISSB) announced its plans to develop global sustainability reporting standards for the financial market.

Not only that but all APAC exchanges are required to have ESG disclosures, although there doesn’t appear to be official arrangements across the board. According to Miller:

But significant progress will be required in the near future for the market to reach its full potential and for investors and issuers to be able to access the reliable, comparable information required to make informed investment decisions.

The post 3 roadblocks for ASX shares trying to become greener : Expert appeared first on The Motley Fool Australia.

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• Vulcan (ASX:VUL) investors don’t bite after earnings, shares down 13% YTD
• Neometals (ASX:NMT) shares surge 12% on plans to partner with ‘one of the greatest names in the automobile industry’
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Motley Fool contributor Zach Bristow 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 Ampol Ltd (ASX: ALD) share price is in the green today after the company agreed to offload its New Zealand business Gull.

The petroleum company’s shares are currently swapping hands at $28.83, a 2.49% gain.

So what did Ampol announce today?

New agreement

Ampol has entered a binding agreement with Australian investment manager Allegro for the sale of its New Zealand business Gull. This follows a competitive trade sales process, according to the company.

Allegro will acquire 100% of Gull for net cash proceeds of about NZ$509 million. There is also an assumption by Allegro of approximately $63 million of leases and debt-like items.

Ampol plans to use the proceeds of the sale to help fund the acquisition of Z Energy (ASX: ZEL).

In a statement authorised by the Ampol board, the company said:

Ampol committed to divest Gull in full to ensure any potential competition law issues were fully addressed as part of its application to the NZCC for approval to acquire Z Energy.

It is expected the Gull divestment will occur within a prescribed period following completion of the scheme to acquire Z Energy which remains on track to complete in the first half of 2022.

Gull is made up of Ampol Limited, ALD Group Holdings NZ Limited, Gull New Zealand Limited, and Terminals New Zealand Limited. Between them, the companies own a network of 112 service stations, a 91ML fuel import terminal at Mount Maunganui, and six retail properties.

The deal is subject to conditions, including approval from the New Zealand Commerce Commission.

Ampol on the ASX share price snapshot

The Ampol share price has slipped 3% this year to date but has gained almost 21% over the past 12 months.

In the past month, Ampol shares have dropped 9% and are down 4% over the past week.

Ampol has a market capitalisation of about $6.9 billion based on its current share price.

The post Ampol (ASX:ALD) shares higher on sale of its Gull business in NZ 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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