Tag: Motley Fool

  • Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week?

    Four people in business suits and white hard hats sit in front of desk and cheerFour people in business suits and white hard hats sit in front of desk and cheerFour people in business suits and white hard hats sit in front of desk and cheer

    What a rollercoaster last week was for ASX shares. Monday and Tuesday saw the All Ordinaries Index (ASX: XAO) fall, while Wednesday and Thursday saw it in the green. On Friday, it was in the red again. But investors in the Cobalt Blue Holdings Ltd (ASX: COB) share price had nothing to worry about.

    Cobalt Blue shares rocketed an impressive 30.9% over the course of last week, rising from 55 cents per share to 72 cents. That puts Cobalt Blue up around 44% in 2022 so far.

    So what has happened to give investors such a surge of optimism over the last week?

    Cobalt Blue share price charges up

    Well, it has to be said that it’s not entirely clear. Cobalt Blue’s Broken Hill Cobalt Project was granted ‘major project status’ recently.

    This development means Cobalt Blue will receive government support for the project, which aims to produce “high quality, battery-ready cobalt sulphate”. This sparked a surge of optimism for the Cobalt Blue share price at the time as it surged by more than 20% at one point. But that was made public on 2 March, more than a week ago.

    But we could also be seeing a general rise in investor sentiment towards Cobalt Blue and other ASX cobalt shares. As my Fool colleague Mitchell reported on Friday, the price of raw cobalt itself has been surging of late.

    The metal is a key ingredient inside many lithium-ion rechargeable batteries, itself a huge growth industry. As such, investors and suppliers alike have been keen to secure a piece of the market.

    Cobalt Blue is one of the biggest cobalt plays on the ASX. But it is not the only cobalt company to have enjoyed some recent gains. Jervois Global Ltd (ASX: JRV) is another ASX cobalt share. Although Jervois didn’t have quite the week that Cobalt Blue had, its shares are still up an impressive 44% or so over the past six months.

    At the current Cobalt Blue share price, this ASX resources share has a market capitalisation of $213.6 million.

    The post Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Cobalt Blue right now?

    Before you consider Cobalt Blue, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cobalt Blue wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    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 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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  • Buying Qantas (ASX:QAN) shares is more than a COVID-19 recovery play: expert

    A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.

    If one rack’s the mind for a typical ASX COVID recovery share, the Qantas Airways Limited (ASX: QAN) share price would have to be one of the strong contenders. Qantas, largely due to its nature as an airline, was of course hard hit by the emergence of the pandemic two years ago. Between 21 February and 20 March 2020, the Qantas share price fell by a nasty 63% or so.

    But it didn’t take long for Qantas shares to change from COVID-19 victim to ‘recovery play’. The Qantas share price rose by an enriching 142% or so between March 2020 and October 2021.

    But more recently, we have started to see Qantas shares stagnate. The Flying Kangaroo remains down 8.5% over the past 12 months on current pricing. It’s also down by 5.8% this year to date.

    So are Qantas shares just a spent recovery play as they stand today?

    Why Qantas shares are a buy: analyst

    The answer is a definite ‘no’, according to Sean Drennan, High Conviction Fund analyst for fund manager Firetrail. Here’s some of what he had to say on why he is bullish on Qantas shares right now:

    COVID has not only dominated the headlines, but it has also dominated the stock market’s perception of Qantas… But there are several factors that are currently being overlooked that make Qantas extremely compelling for investors willing to look through the headlines.

    While Qantas is accruing losses, cash is still coming in the door, as people book flights in advance for future travel. Management also just raised $800 million through the sale of excess land. All up, this gives Qantas about $4 billion in available liquidity to withstand the turbulence… The key point here is that Qantas’ balance sheet remains resilient…

    As the dominant domestic airline, we are confident that Qantas will not only survive the pandemic, but emerge in a much stronger competitive position… There is a huge amount of pent-up demand.

    The crisis hasn’t been wasted…

    Drennan points to a resurgence in worldwide travel bookings amid a relaxation of travel restrictions around the globe Looking at the medium- to long-term outlook, Drennan points to Qantas’ competitive position as a key advantage for the company. That’s especially true for the domestic market.

    He also points to the $1 billion in costs that management has stripped out of Qantas over the pandemic as a reason to be bullish.

    He concludes by predicting that Qantas will return to paying dividends in the not-too-distant future. That would boost shareholders’ returns even further.

    No doubt Qantas shareholders will be hoping that Drennan and Firetrail are right in their analysis of Qantas shares’ potential. But we shall have to wait and see how the ‘national carrier’ fares over the next few years to be sure.

    At Friday’s closing Qantas share price of $4.85, this ASX 200 airline has a market capitalisation of $9.3 billion.

    The post Buying Qantas (ASX:QAN) shares is more than a COVID-19 recovery play: expert appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Qantas right now?

    Before you consider Qantas, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    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 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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  • Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst

    Smiling man sits in front of a graph on computer while using his mobile phone.Smiling man sits in front of a graph on computer while using his mobile phone.Smiling man sits in front of a graph on computer while using his mobile phone.

    ASX investors might not be used to the Pilbara Minerals Ltd (ASX: PLS) share price falling in any kind of sustained way. Sure, Pilbara has made a name for itself as one of the more volatile shares on the S&P/ASX 200 Index (ASX: XJO).

    But this is a company that has given investors a return of 189% over the past year, after all. Not to mention its 515% return over the past five years.

    And yet, here we are. The Pilbara share price is down more than 10% in the past month alone. It’s also down more than 26% from the new all-time high of $3.89 a share that we saw back in January.

    But could this rare pullback for Pilbara shares represent a buying opportunity? One analyst thinks so.

    Why the Pilbara share price is a buy: analyst

    Henry Jennings of Marcus Today, recently wrote a ‘Stock Ideas’ piece for broker NABtrade. Jennings did acknowledge Pilbara’s slowing production, as well as the upcoming departure of the company’s CEO. However, he also argued that renewal might not be a bad idea for Pilbara, and “fresh eyes may be a positive”.

    Here are some more of his arguments (with some humour thrown in):

    [Pilbara] have good exposure to spot prices around 30% I understand…

    The new auction pricing mechanism (known as BMX, not bandits) reminds me of the time when BHP and RIO stopped fixed price iron ore contracts with Japan and embraced the spot market. Being a current producer means that PLS can access these higher prices now. That is a huge positive. Volumes down but realised prices up.

    After recent falls, the stock is now starting to look attractive and with brokers now upgrading lithium price forecasts, PLS is a buy at around 280c. Having a producer is a bedrock but it is also good to have an explorer with upside potential.

    So there you have it, Jennings rates Pilbara as a buy, with a share price target of $2.80. That’s not too far off of the closing price of $2.87 we saw on Friday.

    At this share price, Pilbara Minerals has a market capitalisation of $8.6 billion.

    The post Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pilbara Minerals right now?

    Before you consider Pilbara Minerals , you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    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 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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  • 2 ASX dividend shares with attractive yields

    ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

    ASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividendASX expensive defensive shares man carrying large dollar sign on his back representing high P/E ratio or dividend

    If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

    Both dividend shares are expected to provide investors with yields of over 4% in the near term. Here’s what you need to know about them:

    BWP Trust (ASX: BWP)

    The first ASX dividend share to look at is commercial property company, BWP.

    It has a focus on warehouses, with the majority of its properties leased to hardware giant Bunnings Warehouse. In fact, the company is the largest owner of the hardware giant’s properties and counts Bunnings’ owner, Wesfarmers Ltd (ASX: WES), as a major shareholder.

    BWP has been a positive performer over the last couple of years thanks largely to the strength of the Bunnings business. The retailer’s strong sales and profits have allowed BWP to collect rent mostly as normal and also underpinned a notable increase in the value of its properties.

    In FY 2022, management expects to pay shareholders a distribution in the region of 18.29 cents per unit. Based on the current BWP share price of $4.00, this will mean a 4.6% dividend yield.

    Rural Funds Group (ASX: RFF)

    Another ASX dividend share that offers an attractive yield is this agricultural real estate investment trust (REIT).

    Rural Funds owns a diversified portfolio of Australian assets which are leased to large industry players including Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE). The company also recently added to its portfolio through the acquisition of a number of cattle and cropping properties in Queensland.

    All in all, these properties and their fixed rental increases and long leases leave Rural Funds well-placed for growth over the next decade.

    In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $2.76, this represents a yield of 4.25%.

    The post 2 ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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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 owns and has recommended RURALFUNDS STAPLED and 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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  • 5 things to watch on the ASX 200 on Monday

    Two brokers analysing stocks.

    Two brokers analysing stocks.Two brokers analysing stocks.

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell 0.95% to 7,063.6 points.

    Will the market be able to bounce back from this on Monday? Here are five things to watch:

    ASX 200 expected to rise

    The Australian share market looks set to start the week on a positive note. This is despite a poor finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.3%, and the Nasdaq tumbled 2.2%.

    Public holidays

    A number of states are observing public holidays on Monday. And while this won’t stop the Australian share market from opening, it could mean that trading volumes are lower than normal during today’s session.

    Oil prices storm higher

    Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices charged higher. According to Bloomberg, the WTI crude oil price is up 3.1% to US$109.33 a barrel and the Brent crude oil price has risen 3% to US$112.67 a barrel. Despite this sizeable gain, oil prices posted their biggest weekly decline since November.

    Gold price falls

    Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a difficult start to the week after the gold price pulled back on Friday night. According to CNBC, the spot gold price fell 0.8% to US$1,985 an ounce. The gold price softened amid rate hike optimism.

    Iron ore price edges lower

    The shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) will be on watch on Monday following a slight pullback in the iron ore price on Friday night. According to Metal Bulletin, the spot benchmark iron ore price dropped 1.2% to US$154.50 a tonne. The two mining giants saw their US listed shares fall ~4% and ~3%, respectively, on Friday.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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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  • 2 fantastic ASX 200 growth shares to buy according to analysts

    happy investor, share price rise, increase, up

    happy investor, share price rise, increase, uphappy investor, share price rise, increase, up

    If you’re looking for growth shares, then look no further. Listed below are two ASX 200 growth shares which have been tipped for strong growth in the future.

    Here’s why analysts rate them as buys:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The first ASX 200 growth share to consider is Domino’s. It is one of the world’s largest pizza chain operators with ~3,200 stores across the ANZ, Asia-Pacific, and European regions.

    Its shares have fallen like dominoes in 2022 due to a softer than expected performance during the first half in Asia and a de-rating of growth shares.

    The team at Morgans believe this has created a buying opportunity for investors and has recently upgraded its shares to an add rating with a $115.00 price target.

    It said: “DMP remains a growth story. It has a platform to deliver a positive trajectory of sales and earnings as its store rollout strategy continues and network efficiencies increase. After a period of sustained weakness in the share price, we think now is the time to give DMP another look. We upgrade to ADD.”

    NextDC Ltd (ASX: NXT)

    Another ASX 200 growth share that could be a buy is NextDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud.

    Especially given its world class network of data centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets.

    Citi is a fan and was impressed with its half year results. It currently has a buy rating and $14.55 price target on NextDC’s shares.

    The broker said: “NXT delivered a strong result with increasing utilisation of Gen 2 assets driving solid revenue growth and margin expansion, while revenue metrics improved HoH (revenue per MW up 7% HoH). While the current backlog underpins FY23e earnings, we have lowered our forecasts to reflect a slower ramp and conversion of the pipeline. We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst.”

    The post 2 fantastic ASX 200 growth shares to buy according to analysts appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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  • 2 buy-rated ASX 200 dividend shares with top yields

    Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below that have been named as buys by analysts.

    Here’s why these ASX 200 dividend shares could be worth considering right now:

    National Australia Bank Ltd (ASX: NAB)

    The first ASX 200 dividend share that could be in the buy zone is NAB. This is due to its strong position in business banking, the positive outlook for interest rates, and its acquisition of Citi’s Australian consumer business. The latter will fill a gap in its offering and support its future growth.

    Bell Potter is very positive on NAB and has a buy rating and $32.50 price target on its shares.

    The broker is also expecting attractive yields in the coming years, with fully franked dividends per share of 132.5 cents in FY 2022 and 134.5 cents in FY 2023. Based on the current NAB share price of $29.94, this will mean yields of 4.4% and 4.5%, respectively, over the next couple of years.

    Telstra Corporation Ltd (ASX: TLS)

    Another ASX 200 dividend share to look at is Australia’s largest telecommunications company, Telstra.

    It could be a quality option for income investors due to its increasingly positive outlook. This follows years of earnings declines and dividend cuts brought about by the rollout of the NBN.

    The key to its positive outlook will be the T25 strategy, which has management targeting solid and sustainable growth in the coming years. Combined with 5G and rational industry competition, some analysts are tipping Telstra to soon increase its dividend for the first time in almost a decade.

    In the meantime, the team at Morgans is expecting fully franked 16 cents per share dividends in FY 2022 and FY 2023. Based on the current Telstra share price of $3.84, this will mean yields of 4.2%.

    Morgans has an add rating and $4.56 price target on its shares.

    The post 2 buy-rated ASX 200 dividend shares with top yields appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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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 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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  • Top brokers name 3 ASX shares to buy next week

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Lovisa Holdings Ltd (ASX: LOV)

    According to a note out of Morgans, its analysts have retained their add rating and $24.00 price target on this fashion jewellery retailer’s shares. The broker has been looking at the retail sector and picked out Lovisa as one of its top picks. It likes the company due to its belief that it will continue to grow whatever happens to consumer sentiment. Especially with its new management team and global expansion plans. The Lovisa share price ended the week at $17.89.

    Ramsay Health Care Limited (ASX: RHC)

    A note out of Citi reveals that its analysts have a buy rating and $75.00 price target on this private hospital operator’s shares. The broker highlights that the company’s 53% owned Ramsay Santé business is aiming to acquire Swedish listed GHP Specialty Care for 228 million euros or ~30x 2021 EBIT. While Citi feels this is quite expensive, it believes the transaction would complement Ramsay’s Nordic-based Capio business. Overall, regardless of this deal completing, the broker feels Ramsay is well-placed for several years of positive earnings momentum as the pandemic subsides. The Ramsay share price was fetching $60.71 at Friday’s close.

    Whitehaven Coal Ltd (ASX: WHC)

    Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this coal miner’s shares to $4.70. Goldman increased its valuation to reflect an increasingly positive thermal coal price outlook due to supply side issues in Indonesia, Australian, and Russia. In addition, it sees a compelling de-gearing and capital returns story emerging. The Whitehaven Coal share price ended the week at $4.04.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Lovisa Holdings Ltd and Ramsay Health Care 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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  • 2 ASX dividend shares with yields above 5%

    Some ASX dividend shares offer income yields of more than 5%. Banks are certainly not offering that level of income from savings accounts at the moment.

    But a business isn’t worth buying just because it pays a dividend, even if the yield is large.

    The share price also has to make sense for it to be an attractive valuation.

    Here are two ASX dividend shares with attractive yields and good valuations according to brokers:

    Nick Scali Limited (ASX: NCK)

    Nick Scali is rated as a buy by the broker Citi, with a price target of $17.60. At the current Nick Scali share price, Citi thinks that it will pay a grossed-up dividend yield of 9.5% in FY22.

    The FY22 half-year result from the furniture business was stronger than the broker was expecting and it still has more good sales lined up with its order book.

    In the first six months of FY22, Nick Scali grew its revenue by 5.4% to $180.3 million, though net profit fell by 6.6%. It paid an interim dividend of $0.35 per share.

    The ASX dividend share explained that more than half of its store network was closed during the first quarter. There were also production delays, particularly in Vietnam, which was in lockdown for a period of three months.

    Nick Scali’s gross profit margin increased 30 basis points to 64.3%, though the acquired business Plush had a gross profit margin of 54.8%.

    January 2022’s outstanding order bank was 70% higher than last year.

    Over the long-term, the company is aiming to reach at least 85 Nick Scali stores and 90 to 100 Plush stores.

    The online division of Nick Scali is making a high level of profit – half-year revenue was $13.7 million, with earnings before interest and tax (EBIT) of $8 million.

    GQG Partners Inc (ASX: GQG)

    GQG is a fund manager with around US$90 billion of funds under management (FUM).

    Since the start of the year, the GQG share price has fallen by more than 25%.

    But its FUM on 31 December 2021 was US$91.2 billion. The FUM only fell 1.5% to US$89.8 billion by 28 February 2022, so GQG shares have fallen much further in percentage terms.

    The company noted in the monthly FUM update for February 2022 that there has been extraordinary volatility, but it has continued to see positive net flows. It added $1.6 billion of net flows in February, taking the company to $2.5 billion in net new flows in the year to date.

    All of the fund manager’s investment strategies show outperformance over three and five years.

    It also noted that the ASX dividend share has very limited direct exposure to Russia in its investment strategies.

    GQG has committed to paying a high level of profit out as a dividend for investors. In the recently-reported result for the period ending 31 December 2021, it paid out 90% of its profit generated since the initial public offering (IPO).

    The business is currently rated as a buy by the broker Morgans with a price target of $2.27. based on the broker’s FY22 expectations, GQG has a forecast dividend yield of 7.1%.

    The post 2 ASX dividend shares with yields above 5% appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

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  • Top brokers name 3 ASX shares to sell next week

    Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

    Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

    Appen Ltd (ASX: APX)

    According to a note out of Macquarie, its analysts have retained their underperform rating and $5.70 price target on this artificial intelligence data services company’s shares. This follows news that the company has made a small investment in a synthetic data company Mindtech. Macquarie notes that this will give Appen exposure to a growing synthetic data market and expanding its addressable opportunity. However, this isn’t enough for a more positive view. Macquarie continues to have concerns about its outlook and lack of guidance in FY 2022. The Appen share price ended the week at $6.81.

    Commonwealth Bank of Australia (ASX: CBA)

    Another note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant’s shares. Macquarie believes that Australian banks are likely outperform the broader market in the early stages of the Reserve Bank’s rising-rate cycle. This is despite risks to the global economy stemming from Russia’s invasion of Ukraine. However, it believes other banks are better placed to experience margin benefits and continues to see its shares as expensive. The CBA share price was fetching $99.38 at Friday’s close.

    Fortescue Metals Group Limited (ASX: FMG)

    Analysts at Citi have retained their sell rating and cut their price target on this iron ore miner’s shares to $16.00. While the broker acknowledges that iron ore prices are likely to remain strong in 2022, it isn’t enough for a more positive view. Particularly given Citi’s concerns over the company’s Fortescue Future Industries business. The Fortescue share price ended the week at $18.23.

    The post Top brokers name 3 ASX shares to sell next week 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. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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