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It was another disappointing day of trade for the Magellan Financial Group Ltd (ASX: MFG) share price on Friday.

The struggling fund manager’s shares ended the day almost 7% lower at $14.20. This latest decline means the Magellan share price has now lost over a third of its value in just 2022.

And if we were to go back and compare things to this time last year, the company’s shares are down by a whopping two-thirds.

Why did the Magellan share price tumbling today?

Investors were selling down the Magellan share price on Friday following the release of an update on the performance of flagship Global Fund.

As you might have guessed from the share price reaction, Magellan’s team did the not deliver a strong investment performance during the month of February. In fact, the Global Fund lost 7.2% during the month, which compares unfavourably yet again to a 5.4% decline by its benchmark.

This means that on a 12-month basis the flagship fund is now trailing its benchmark by a sizeable 9.1%.

Investors appear concerned that this underperformance could continue to weigh on its funds under management (FUM). Particularly given its high management fees of 1.35%.

As a comparison, rival GQG Partners Inc (ASX: GQG) charges management fees of just 0.49% on average for its funds. Furthermore, its global equity strategy returned -0.57% net of fees during February, much better than Magellan’s 7.2% decline.

Is this a buying opportunity?

The team at UBS don’t believe the weakness in the Magellan share price is a buying opportunity. Earlier this week the broker put a sell rating and $13.50 price target on the fund manager’s shares.

Unfortunately, its analysts now have concerns with its infrastructure FUM. UBS warned that there is an emerging risk that these FUM will be next to flow out to other fund managers. This follows a recent investment underperformance from this side of the business.

The post Here’s why the Magellan (ASX:MFG) share price fell 7% today and could keep falling appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• 15% yield! But are these ASX high-yield shares dividend traps?
• Down 31% this year: Top broker tips more pain for Magellan (ASX:MFG) share price
• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• 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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The Transurban Group (ASX: TCL) share price has travelled sideways over the course of the last few years.

COVID-19 headwinds impacted traffic levels as state government-mandated restrictions were enforced Australia-wide. This led Transurban shares to falter while management focused on navigating the business through the pandemic.

Below, we calculate if the dividends have been worth the wait if a shareholder made an investment 3 years ago.

What if you had invested $10,000 in Transurban shares 3 years ago?

If you had invested $10,000 in Transurban shares on this day 3 years ago, you would have bought them for around $12.53 each. This would have given you approximately 798 shares without factoring in any dividend reinvestments over the years.

Fast-forward to today, the current Transurban share price is $12.73. This means those 798 shares would now be worth around $10,158.54 (798 shares x $12.73). When considering percentage terms, this implies an upside of 1.59%.

In contrast, the ASX 200 has returned a yearly average of 4.75% to shareholders in the past 3 years.

And the dividends?

Over the course of the last 3 years, Transurban has made a total of 6 bi-annual dividend payments from June 2019 to 2022.

Adding those 6 dividends payments gives us an amount of $1.285 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $1,025.43 (798 shares x $1.285).

When putting both the initial investment gains and dividend distribution, an investor would have made roughly $11,183.97.

In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $11,493.76.

Transurban share price snapshot

Over the past 12 months, the Transurban share price has shed around 1%, driven by poor trading conditions.

Its shares hit a 52-week low of $12.03 in January, before finding support around the mid $12 mark.

Based on the current share price, Transurban commands a market capitalisation of around $39.09 billion.

The post The Transurban (ASX:TCL) share price has gained under 2% in 3 years. Have the dividends been worth the wait? appeared first on The Motley Fool Australia.

More reading

• Why this broker says the Transurban (ASX:TCL) share price can drive 14% higher
• Top brokers name 3 ASX shares to buy next week
• Why brokers rate these ASX 200 dividend shares as buys
• Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
• Just banked the Transurban (ASX:TCL) dividend? Here’s what you need to know

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Shares in Neometals Ltd (ASX: NMT) charged higher on Friday to finish trading at 5.76% in the green at $1.47.

Investors appeared to be bidding shares up today amid the release of Neometals’ earnings results for the half-year ended 31 December 2021, which was released yesterday.

Whilst the release was deemed to be non-sensitive, it’s still more than worth a look to check in on the company’s progress.

What happened this year for Neometals?

• Loss for the period from continuing operations of $2.86 million, down from $4.01 million the year prior
• Profit from discontinued operations of $12.812 million for the period
• Profit for the period of $9.943 million, up substantially from a loss of $4.03 million last year
• Earnings per share (EPS) of $1.81 gained from a loss per share of 74 cents compared to FY20
• Cash and equivalents of $68.57 million at the end of the period

What else happened in this period for Neometals?

During the period, Neometals entered into a joint venture (JV) with SMS group GmbH. The 50:50 JV is called Primobius GmbH and was incorporated to “co-fund and complete final stage evaluation activities and to consider
commercialisation of the [lithium-ion battery] LIB recycling technology”, the company says.

“During the period, Primobius made strong progress towards technical and commercial validation of its sustainable LIB Recycling Technology”, it added.

This progress includes formation of a demonstration plant to showcase results to partners and advancing both Class 3 engineering and feasibility studies at the site.

Primobius has also exclusively licenced its LIB recycling technology to Stelco SPV. The agreement will allow Stelco to advance commercial sourcing agreements and advance its construction and operating permit process, per the release.

Neometals is also exploring opportunities to commercially apply its proprietary “vanadium recovery processing flowsheet on stockpiles of vanadium bearing steel manufacturing by-product”.

To date, it is pursuing two partnerships in Scandinavia, namely in Finland and Sweden.

What’s next for Neometals?

Neometals say that in the coming period, it aims to update its SysCAD model for specific brine feed at the Bondalti project. It will also engage contractors to perform pilot tests at the site.

With respect to the demonstration site and upcoming studies, Neometals says both of these remain on schedule for completion in June 2022.

The company did not provide any formal earnings or financial guidance for the coming period.

Neometals share price snapshot

In the last 12 months, the Neometals share price has soared over 336% and is up another 3% this year to date.

Over the previous month, shares have held gains and are up around 1%, but have fallen 8% in the red this week.

The post Here’s why the Neometals (ASX:NMT) share price surged 6% on Friday appeared first on The Motley Fool Australia.

More reading

• Neometals (ASX:NMT) share price surges 10% amid dual listing

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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Today, the S&P/ASX 200 Index (ASX: XJO) took a step backward after the US posted its highest rate of inflation in 40 years last night. At the end of the session, the benchmark index finished 0.94% lower at 7,063.6 points.

While there were plenty of fallers today, the market offered up a few green beacons to be grateful for. These were in the form of energy and mining shares — our typical ‘risk off’ names on the ASX boards. As you might expect, the shares that performed the worst as the inflationary thematic stepped up were tech and consumer discretionary.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, AVZ Minerals Ltd (ASX: AVZ) was the biggest gainer today. Shares in the lithium developer took a 7.19% ride to the upside during Friday’s session despite there being no announcements from the company. Find out more about AVZ Minerals here.

The next biggest gaining ASX share today was yet another lithium company, Allkem Ltd (ASX: AKE). Just like AVZ, Allkem (formerly Galaxy Resources and Orocobre) did not post any new information today. However, the commodity space has been rife with enthusiasm as future supply is shrouded in uncertainty. Uncover the latest Allkem details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
AVZ Minerals Ltd (ASX: AVZ)	$0.895	7.19%
Allkem Ltd (ASX: AKE)	$10.59	4.96%
Champion Iron Ltd (ASX: CIA)	$6.85	4.58%
GQG Partners Inc (ASX: GQG)	$1.275	3.66%
Alumina Ltd (ASX: AWC)	$2.03	3.05%
South32 Ltd (ASX: S32)	$4.89	2.95%
Mineral Resources Ltd (ASX: MIN)	$46.43	2.74%
Meridian Energy Ltd (ASX: MEZ)	$4.91	2.72%
Coronado Global Resources Inc (ASX: CRN)	$2.01	2.55%
Incitec Pivot Ltd (ASX: IPL)	$3.70	2.49%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps
• 3 ASX lithium stocks that brokers rate as buys
• 2 pieces of good news about Biden’s crypto mandate for metaverse investors
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Mitchell Lawler 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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One of the leading brokers in Australia has had a close look at the National Australia Bank Ltd (ASX: NAB) share price.

The judgement is that NAB is a leading investment candidate in the banking sector to consider.

What’s going on with the NAB share price?

The NAB share price has continued to rise since the low of the COVID-19 crash.

In 2022 to date, NAB shares have risen by 2%. In the past year it has gone up by 14.5%.

The bank has experienced volatility in the last couple of months, just like most ASX shares on the share market.

The latest business insight that investors have had about NAB was its FY22 first-quarter update.

Quarterly update

It generated $1.8 billion of cash profit – this was up 9.1% year on year. Cash earnings before tax and credit impairment charges were up 6%.

NAB explained that asset quality remained “benign” and it’s experiencing “good momentum” across the business despite the environment remaining competitive.

In Australia over the three months to December 2021, home lending grew by 2.6% and SME (small and medium enterprise) business lending increased by 3.4%. It gained market share in its core lending and deposit products. New Zealand loan growth was 2.2%.

Looking at how that profit growth occurred – revenue rose 8%, reflecting higher volumes. Expenses increased 2%, mainly reflecting higher salaries and leave costs, combined with investment to support growth, partly offset by productivity benefits. It’s targeting broadly flat expenses in FY22.

Profit and profitability can have a sizeable influence on the NAB share price in the eyes of some investors.

The net interest margin (NIM) – a key banking profitability metric – saw a decline of 5 basis points to 1.64%. Part of that decline happened because of competitive pressures and the housing lending mix.

NAB’s ratio of loans that are more than 90 days past due decreased 13 basis points to 0.81%.

The NAB CEO Ross McEwan said:

We remain optimistic about the outlook of Australia and New Zealand and are well positioned to continue to grow with a strong balance sheet and disciplined execution of a clear strategy.

Is the NAB share price a buy?

Ord Minnett certainly thinks so, with an ‘accumulate’ rating. It has a price target of $33.50, which offers an upside of around 10%.

The broker thinks that NAB will be able to offer better earnings growth than its competitors like Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

Ord Minnett thinks that NAB will pay a grossed-up dividend yield of 7% in FY22.

The post Is the NAB (ASX:NAB) share price a buy? Top broker expects sector-leading earnings growth appeared first on The Motley Fool Australia.

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• Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans
• 2 excellent ASX dividend shares analysts rate as buys
• 5 things to watch on the ASX 200 on Friday
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Broker names 2 high yield ASX dividend shares to buy right now

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 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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Investing in the small side of the share market carries more risk than other areas. However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio given the potential returns on offer.

For example, listed below are two small cap ASX shares that have been tipped to shoot materially higher from current levels. Here’s what you need to know about them:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform and software as a service (SaaS) provider that connects consumers with trusted tradies. The Hipages platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals, while also enabling them to optimise their operations through its SaaS product.

Goldman Sachs is a very big fan of Hipages. It believes that “HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

The broker currently has a buy rating and $3.60 price target on its shares. This compares to the latest Hipages share price of $2.19.

Silk Laser Australia Limited (ASX: SLA)

Another small cap ASX share to watch closely is Silk Laser. It is one of Australia’s largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. Silk’s five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products. These services have remained popular during the pandemic, resulting in strong sales growth since its listing.

A note out of Wilsons last week reveals that it continues to rate Silk Laser highly. The broker was impressed with the company’s strong growth during the first half in challenging trading conditions and remains positive on its long term growth potential.

Wilson has an overweight rating and $5.25 price target on the company’s shares. This compares to the current Silk Laser share price of $2.94.

The post 2 buy-rated small cap ASX shares analysts believe have 60%+ upside appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ASX growth shares analysts rate as buys
• 3 growing small cap ASX shares going places
• High risk, high reward: Analysts tip 2 small cap ASX shares for big things
• Hipages (ASX:HPG) share price plunges 6% on half-year loss
• 3 excellent ASX growth shares to buy before it’s too late

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 Hipages Group Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is enduring a disappointing end to the week’s trading this Friday after yesterday’s strong gains. At the time of writing, the ASX 200 has lost 0.8% at just under 7,100 points.

But rather than letting that ruin our weekends, let’s instead check out the ASX 200 shares that are currently at the top of the ASX’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Friday

Telstra Corporation Ltd (ASX: TLS)

Telstra is our first share to take a look at this Friday. So far, a notable 20.64 million of this ASX 200 telco’s shares have been bought and sold on the markets today. There have been no major developments with Telstra this Friday thus far. In saying that, the company’s share price has had a weak day today, and is currently down a disappointing 0.77% at $3.85 a share. It’s possibly this move that has sparked so many shares moving around. 

Paladin Energy Ltd (ASX: PDN)

ASX 200 uranium share Paladin is next up. This Friday has witnessed a sizeable 25.98 million shares swap hands as it currently stands. Again, we’ve had no news out of the company itself. However, Paladin has had what could only be described as a wild week. Its shares remain up 8.18% over the past 5 trading days. Today, it’s up 0.58% at the time of writing at 86 cents a share. But it has been moving around a bit, with stints in both positive and negative territory. It’s probably this volatility that has Paladin on this list today. 

Nickel Mines Ltd (ASX: NIC)

This eponymous ASX 200 miner tops our trading volume list today. We have seen a whopping 43.47 million Nickel Mines shares change owners as it currently stands. This could have also been sparked by volatility. Nickel Mines shares are currently flat at $1.22 each after rising by as much as 2.5% earlier in the trading day. It’s been a big week for the company. Yesterday saw Nickel Mines halt its share purchase plan after some wild price swings. It also had a trading halt on Wednesday. All of these factors could be involved in the elevated trading volume we are currently seeing today. 

The post These 3 ASX 200 shares are topping the volume charts this Friday appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Nickel Mines, SG Fleet, and Whitehaven Coal are pushing higher
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps
• Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on?
• 2 pieces of good news about Biden’s crypto mandate for metaverse investors
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 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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ASX mining shares are capitalising on the latest commodities rally since 2022 began.

The S&P/ASX 300 Metal & Mining Index (ASX: XMM) has spiked almost 5% this year to date and 10.5% over the past 12 months.

Within this buoyant sector are 2 small-cap mining shares that are outperforming their peers in the ASX resources space.

They are Siren Gold Ltd (ASX: SNG) and Firebird Metals Ltd (ASX: FRB). Take a look at their 5-day returns on the chart below.

Siren Gold Ltd (ASX: SNG) 

Shares in Siren Gold are soaring above 25% today and are currently exchanging hands at 30 cents apiece.

Investors are piling into the gold miner following a company announcement advising it has intersected gold during drilling at its Alexander River project in New Zealand.

As The Motley Fool reported earlier today, “The intercept in the drill hole returning visible gold was comprised of 2-3 metres of strong acicular arsenopyrite, followed by a 0.6 metre quartz vein with significant visible gold”.

The price of gold has shot to record highs of US$2,052 per troy ounce in recent days. Traders have since pared gains so now the yellow metal is sitting at US$1,991/t.oz.

With the gold spot and futures both rallying to new heights, investors have been piling into ASX gold shares.

In the past 12 months, Siren shares have tanked by 22% but have soared by almost 15% in the past 30 days.

Siren Gold has a market capitalisation of $23.5 million.

Firebird Metals Ltd (ASX: FRB)

Shares in Firebird Metals are also surging higher today and now trade at 39 cents apiece following a company announcement.

At one point today, Firebird shares were trading more than 20% higher at 39.5 cents each before levelling off a little.

Investors are responding positively to the company advising of a “game changing resource upgrade” at its flagship Oakover project.

Firebird announced it had delivered a 170% increase in resources at the site following completion of a 233-hole reverse circulation (RC) drilling program.

The Oakover resource has grown to 172 Mt @ 9.9% Mn (7% Mn cut-off) from 64 Mt @ 10% Mn”, Firebird said. “Importantly 58.7 Mt at 10.4% Mn at the Sixty Sixer deposit is now in the Indicated category.”

Now the company has set its next moves following the discovery. Apparently, management has made the decision to pivot the growth strategy.

From here on in, it will “focus on completing key workstreams to assess a larger long-term (20+ years) operation to create a substantial manganese hub”.

After listing on the ASX in early 2021, Firebird shares have fallen 30% into the red, but have soared 28% this week.

Firebird has a market capitalisation of $17.73 million.

The post 2 tiny ASX mining shares leaping 20% today appeared first on The Motley Fool Australia.

More reading

• Why is this ASX gold share minnow rocketing 15% today?

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 tech sector has come under pressure again on Friday. In late trade, the S&P ASX All Technology index is down a disappointing 3%, stretching its year to date decline to almost 25%.

Investors have been selling tech shares again today after a particularly strong inflation reading in the United States sparked fears of even quicker than expected rate hikes.

Rising rates are bad news for tech shares as they lead to higher discount rates (in valuation models) and lower the present value of future cash flow.

As covered here recently, tech shares that are not yet profitable have been hit the hardest and seen their shares de-rate materially.

Goldman Sachs notes: “Technology companies with low/no profitability have been hardest hit by rising rates, falling -40% on average since the Nov-21 vs -24% for profitable tech and -14% for US tech. […] with the median company de-rating -25% and NEA, NXL, NTO de-rating >50%.”

While this is disappointing, it could have created a buying opportunity for investors. For example, the two ASX tech shares listed below have just hit 52-week lows or worse but could end up being bargain buys if analysts are on the money.

Here’s what you need to know:

ELMO Software Ltd (ASX: ELO)

The ELMO share price has continued its slide and hit a four-year low of $3.34 on Friday. This means the HR technology company’s shares have lost approximately 27% of their value in 2022.

According to a recent note out of Morgan Stanley, its analysts have an overweight rating and $7.80 price target on the company’s shares. This implies potential upside of ~130%.

Nitro Software Ltd (ASX: NTO)

The Nitro share price has been under pressure again on Friday and dropped to a 52-week low of $1.16. This latest decline means the document productivity software company’s shares are now down by over 50% since the start of the year.

Goldman Sachs sees this as a buying opportunity. Last week its analysts reiterated their buying rating and $2.60 price target on Nitro’s shares. This suggests over 100% upside over the next 12 months for investors.

The post Bargain basement? 2 ASX tech shares slumping to 52-week lows today appeared first on The Motley Fool Australia.

More reading

• Analysts see almost 100% upside for these ASX shares
• Goldman says the tech selloff has made Xero (ASX:XRO) shares a buy
• 2 small cap ASX shares that are highly rated by brokers
• Buy these 2 impressive ASX shares in March 2022: experts
• Nitro (ASX:NTO) share price sinks 14% despite record result

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 Elmo Software. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Nitro Software 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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BHP Group Ltd (ASX: BHP) shares are in focus after the S&P/ASX 200 Index (ASX: XJO) miner topped the list of highest paying dividend stocks in the world in 2021.

That’s according to data from Janus Henderson.

The Motley Fool covered off 2 other ASX 200 shares that made the top 10 dividend payer list earlier today. You can find that here.

With BHP shares coming in at number 1, Blake Henricks, deputy managing director at Firetrail, and Michelle Lopez, Head of Australian Equities at abrdn, offer their views on the miner, courtesy of Live Wire.

What’s not to like?

At the current share price, BHP pays a trailing dividend yield of 9.8%.

Now that doesn’t make BHP the highest yielding share on Earth in 2021. However, the total dividend payouts by the company in dollar terms were unmatched.

Asked whether BHP shares were a buy or hold, Lopez said:

It’s a buy for us. And, yes, it’s got to 9% and even a 6% yield going forward as commodity prices come back a little bit, which is our expectation. But clearly, we’ve got a very constructive outlook from a demand perspective.

Even with her outlook of iron ore and commodity prices retracing from the current high levels, Lopez pointed out, “We’ve got China, expectations of stimulus coming through. We’re starting to see the property market over there pick up again, and infrastructure.”

Lopez also likes the miner’s cash flows.

“I think the near term is very well supported from a cash flow perspective,” she said. “And from valuation perspective, it’s trading close to its NAV [net asset value].”

For Henricks, BHP shares are a hold. He said “there are some better opportunities out there” among resource shares.

However, turning back to BHP, he added, “But it’s net cash, huge amounts of assets, what’s not to like?”

How have BHP shares been tracking?

BHP has gone from gains to small losses today and it’s back to flat at time of writing.

That’s a fair bit better than the ASX 200, which remains down 0.9% at this same time.

Juicy dividends aside, BHP shares have also handily outpaced the index in 2022, gaining 12.4% compared to a 6.9% loss by the benchmark.

The post ‘What’s not to like’ about BHP (ASX:BHP) shares? Experts weigh in appeared first on The Motley Fool Australia.

More reading

• Guess which 3 ASX 200 shares are among the top 10 dividend payers in the world
• Is this still the dawning of the age of ASX commodity shares?
• Record $36bn in dividends could help ASX share market recovery
• 3 under-the-radar commodity prices soaring since the Ukraine crisis
• Here’s why the BHP (ASX:BHP) boss is still optimistic about China

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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