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The APA Group (ASX: APA) share price could be a leading ASX dividend share idea for income.

What does APA do?

APA says that it has 15,000 kilometres of natural gas pipelines connecting sources of supply and markets across mainland Australia.

It operates and maintains networks connecting 1.4 million Australian homes and businesses to natural gas. It owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms).

In total it owns or manages and operates a portfolio of assets of around $22 billion and delivers half the nation’s natural gas usage.

ASX dividend share credentials

One of the first things that investors may want to know about is the dividend yield.

In FY21, APA paid a distribution of $0.51 per unit. That equates to a trailing yield of 5.2%.

But the business is expecting to grow the distribution by another 3.9% in FY22 to $0.53 per unit. That translates into a forward yield of 5.4% at the current APA share price.

But there’s more to APA’s distribution than just the yield. It has grown its distribution every single year for more than a decade and a half. That’s one of the longest growth streaks on the ASX.

How does it keep growing its distribution?

The business funds its distribution from its cash flow.

In the recent FY22 half-year result, the free cash flow increased by 22.6% to $515.1 million thanks to higher earnings before interest, tax, depreciation and amortisation (EBITDA), lower interest costs and lower tax payments.

The ASX dividend share grows its cash flow by expanding its asset base and finishing projects.

APA currently has an organic growth pipeline that now exceeds $1.4 billion. In gas infrastructure, that includes the East Coast grid expansion, the Northern Goldfields interconnect and the Kurri Kuri lateral pipeline.

The business is also working on some electricity and renewables projects such as the Gruyere hybrid energy microgrid and Mica Creek solar farm.

Another investment that could have an influence on the APA share price is Basslink. The Basslink is the cable that connects Tasmania with the mainland. The business has bought 100% of Basslink’s senior secured debt at a discount to the face value.

APA intends to work with the receivers and managers, as well as Hydro Tasmania and the State of Tasmania, to put Basslink on a stable footing and convert it into a regulated asset. APA says that this provides a platform for further growth in adjacent energy opportunities.

Is hydrogen part of APA’s future?

APA is working on future energy technologies, playing its part in Australia’s energy transition. The Parmelia gas pipeline hydrogen project proposes a 100% hydrogen conversion of a section of the existing pipeline in WA. Phase 2 is underway, with lab testing of the pipeline materials in gaseous hydrogen conditions.

It’s also doing a feasibility study into the development of a large-scale renewable hydrogen project in Central Queensland with exports to Japan.

APA share price target

Ord Minnett currently has a price target on APA of $10.50, though the rating is currently a ‘hold’. The broker thinks that coal power plant closures will mean that gas will continue to play an important part in the overall system.

The post Here’s why the APA (ASX:APA) share price could be a top dividend share appeared first on The Motley Fool Australia.

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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 owns and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Monday brought continued uncertainty to Wall Street, and major market benchmarks fell sharply as investors tried to figure out what the future might bring. Between soaring consumer prices, the prospect for rising interest rates, and energy markets facing another round of disruptions, market participants haven’t had a clear course to follow. By 12:45 p.m. ET, that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) down 667 points to 32,948. The S&P 500 (SNPINDEX: ^GSPC) fell 95 points to 4,234, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 282 points to 13,031.

It was nearly two years ago that Warren Buffett faced harsh criticism for choosing to sell out of airline stocks at the beginning of the COVID-19 pandemic. The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. Now, though, airlines are still struggling, and their path forward is far from certain. 

The fall, rise, and fall of airline stocks

Before the pandemic began, investors were generally well disposed to airline stocks. An impressive run of profitable years had suggested that the industry had finally found a business model that would work.

The pandemic put a stop to that optimism. Shares of airline stocks plunged 50% to 60% or more from the beginning of 2020 over the course of three months. Most airlines used bailouts to help them survive financially.

But the development and distribution of effective vaccines seemed to put an end point on the trouble for airlines. By spring of 2021, Southwest shares were back above pre-pandemic levels, while other major airlines had trimmed their losses substantially.

Now, though, airlines appear to be back in dire straits. United is down more than 60% from where it started 2020, while American has fallen by more than half. Delta and Southwest are down about 45% and 30%, respectively. Today alone, the four stocks are down between 7% and 11%.

New challenges in the skies

Problems are lining up for airlines in new and troubling combinations:

• Traffic volumes had only begun to get back to pre-pandemic levels, as pent-up demand for travel largely overcame lingering worries about new COVID-19 variants. Prospects for broader global reopening had looked better. Yet with geopolitical risks having entered the picture, those favorable trends might well reverse themselves.
• One thing that had kept airlines as healthy as they were at the beginning of the pandemic was that energy prices fell to levels not seen in decades. In two years, energy prices returned to more normal levels. Now, the possibility of oil market disruptions related to Russia and its attack on Ukraine have sent oil prices to their highest levels in more than a decade. With jet fuel being a major cost for airlines, the news wasn’t welcome.

Buffett’s sale hinged on the idea that the industry might never look the same as it did before the pandemic. With new communication methods making in-person travel less vital, even a partial reduction in demand would require a dramatic response from airlines. Indeed, with much weaker balance sheets for many airlines and the prospects of renewed bailout support seeming dimmer, Buffett’s concerns might well turn out to have been correct.

Know your thesis

Buffett thinks long term, and it’s always premature to judge long-term decisions based on how stocks move in a month, quarter, or even year. Airlines might well turn out OK from here, but it’s clear that they’ve faced many of the ongoing uncertainties that prompted Buffett to seek greener pastures elsewhere. 

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

The post Could Warren Buffett’s airline sales turn out to be right after all? appeared first on The Motley Fool Australia.

More reading

• Here’s why the APA (ASX:APA) share price could be a top dividend share
• 4 reasons why top broker says Woolworths (ASX:WOW) shares are a buy right now
• Own the VanEck Gold Miners ETF (ASX:GDX)? Here’s what you’re invested in
• Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today
• Here’s why the Calix (ASX:CXL) share price is storming higher today

Dan Caplinger owns Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Delta Air Lines and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Shares in retail conglomerate Woolworths Group Ltd (ASX: WOW) are up nearly 2% in early trading on Tuesday, fetching $35.25 a share at the time of writing.

It’s been a mixed bag for Woolworths so far in 2022, with its shares dropping 7% in the red after a shaky start to the year.

This has effectively erased the bulk of gains earned over the last 12 months. The Woolworths share price is now around 2% in the green during that time.

Below is a chart of the retailer’s recent performance against the S&P ASX 200 Index (ASX: XJO).

However, one broker is seeing past the short-term noise and is urging its clients to buy Woolworths with an upside potential of around 14% as at today’s opening price. JP Morgan outlines four reasons for buying Woolies shares in its investment analysis on the company.

Is Woolworths a buy?

Analysts at JP Morgan tip Woolworths to have a bumper year in 2022.

The broker’s analysis centres around Woolworths’ core operations that, it says, held strongly during the pandemic or have firmly recovered from its effects.

The first buying factor boils down to growth in key segments like food (fresh and perishable) and operating cash flows, JP Morgan says.

“Food LFL [like for like] sales growth supported by local, online and ongoing execution capabilities, as Woolworths continues to execute across its strategy of convenience, fresh and range,” analysts say.

“Operating leverage, falling COVID-19 costs and lower labour inflation are supports for EBIT margin expansion.”

Secondly, the Everyday Needs segment is performing well and is a key differentiator to Woolworths’ earnings and, therefore, the investment case, the broker says.

“The Everyday Needs ecosystem leverages and extends the competitive advantages of the Food business, while adding to [its] earnings growth.”

Thirdly, Big W, the company’s chain of discount department stores, has apparently shown a strong turnaround and “has been a positive”, according to the broker.

That’s important to consider, analysts say, seeing as department stores across the country were severely impacted by COVID-19 lockdowns. It seems Big W has passed the broker’s litmus test for “further opportunity due to DC [distribution centre] and store network optimisation”.

Finally, JP Morgan believes Woolworths is at the tip of the spear when it comes to its online platform, suggesting the group has a better offering in the post-COVID world.

Analysts believe this could put Woolworths in an above-market growth position, tipping its online penetration could easily more than triple in FY22.

“We view Woolworths’ market-leading online platform favourably and see sustained levels of high online penetration post-COVID. After a period of normalisation, we expect online penetration to continue to grow to ~14% over the next five years (versus 4.2% in CY19),” the broker concluded.

JP Morgan rates Woolworths a buy and values the company at $39.50 per share, suggesting a potential for decent upside should its thesis play out.

Woolworths share price snapshot

In the last 12 months, the Woolworths share price is up around 2%, however, is down 7.2% this year to date.

During the past 30 days of trading, Woolies shares have risen around 2% but are down marginally over the past week. With these returns, Woolworths is trailing the broad index’s performance this year.

The post 4 reasons why top broker says Woolworths (ASX:WOW) shares are a buy right now appeared first on The Motley Fool Australia.

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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 VanEck Gold Miners ETF (ASX: GDX) has significantly outperformed Australia’s benchmark index in 2022 so far.

It has gained an impressive 20.5% since the start of this year, compared to the S&P/ASX 200 Index‘s (ASX: XJO) 7.3% tumble.

It has also outperformed the S&P/ASX All Ords Gold Index (ASX: XGD) by around 9%.

Right now, a slice of the VanEck Gold Miners ETF will set an investor back $52.40.

So, what stocks has the exchange traded fund (ETF) snapped up to outperform the broader market and the gold sector in 2022? Let’s take a look.

Here’s what makes up VanEck Gold Miners ETF’s portfolio

As the name suggests, the VanEck Gold Miners ETF is made up of stocks involved in the gold mining industry.

Its biggest holding is Newmont Corporation (NYSE: NEM) shares. Stock in the US$61.7 billion gold miner make up 17% of the ETF’s portfolio, as of 4 March.

Its second largest investment is Barrick Gold Corp (NYSE: GOLD), making up 12%.

Franco Nevada Corp (NYSE: FNV), Agnico Eagle Mines Ltd (NYSE: AEM), and Wheaton Precious Metals Corp (NYSE: WPM) each make up between 6% and 9% of the ETF’s holdings.

One Aussie gold miner has managed to squeeze into a crowning position in the VanEck Gold Miners ETF. Newcrest Mining Ltd (ASX: NCM) shares represent 4.6% of its portfolio.

It also owns Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN) – they sit at 2.5% and 1.9% of its holdings respectively.

Less than 1% of its holdings are dedicated to ASX gold miners Perseus Mining Limited (ASX: PRU), Silver Lake Resources Limited (ASX: SLR), Regis Resources Limited (ASX: RRL), Gold Road Resources Ltd (ASX: GOR), Capricorn Metals Ltd (ASX: CMM), Ramelius Resources Limited (ASX: RMS), and West African Resources Ltd (ASX: WAF).

The post Own the VanEck Gold Miners ETF (ASX:GDX)? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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During a volatile 2022, the Lovisa Holdings Ltd (ASX: LOV) share price has seen its fair share of wild swings.

Just yesterday, the fashion jewellery retailer’s shares plummeted by almost 10% on the back of weak investor sentiment. This has likely been caused by the recent downturn across the entire ASX market. In particular, the S&P/ASX 300 Retailing index (AXRTKD) fell another 1.11% on Monday.

Today, the company’s shares are again in the red. However, this is likely due to trading ex-dividend today.

At the time of writing, Lovisa shares are down 5.03% to $16.81.

Let’s take a closer look at what this means for the company’s shareholders.

Shareholders set eyes on Lovisa’s interim dividend

With investors having locked in the company’s latest dividend, the Lovisa share price is tumbling.

Typically, when a company reaches this day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

In the half-year report, Lovisa reported double-digit growth across key metrics and increased its interim dividend by 85%.

Management noted this was due to the strong cash outcome and balance sheet position for the first half.

Lovisa ended the calendar year with $52.7 million of net cash and no debt.

Overall, net profit after tax (NPAT) rose to $36.7 million, a lift of 70.3% compared to $21.5 million in the prior year.

When can shareholders expect to be paid?

For those eligible for Lovisa’s interim dividend, shareholders will receive a payment of 37 cents per share on 24 April. The dividend is 30% franked, which means investors can expect to receive some tax credits from this.

And, in case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.

Lovisa share price summary

Since the beginning of 2022, Lovisa shares have lost 15%. The ASX 300 Retailing Index has also fallen by around 17% from its former highs on 4 January. 

Lovisa shares reached an all-time high of $23.07 in November, before backtracking.

Based on today’s price, Lovisa commands a market capitalisation of roughly $1.9 billion.

The post Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today appeared first on The Motley Fool Australia.

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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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Calix Ltd (ASX: CXL) share price has been a positive performer on Tuesday.

In morning trade, the environmental technology company’s shares are up 4% to $6.51.

This means the Calix share price is now up approximately 225% since this time last year.

Why is the Calix share price storming higher?

Investors have been bidding the Calix share price higher today following the release of a positive announcement.

According to the release, Calix has received Australian Pesticides and Veterinary Medicines Authority (APVMA) approval for its safe, environmentally friendly crop protection product, Booster-Mag. This comes just over two years after it first submitted an application for Booster-Mag as a non-lethal insecticide for the suppression of two-spotted mite in tomatoes and field and protected crops.

Though, its journey started long before that. Management advised that the registration of Booster-Mag is the culmination of six years of scientifically rigorous product and application development.

Furthermore, it highlights that Booster-Mag is the first registration of a magnesium hydroxide insecticide in the world, which opens it up to a sizeable market opportunity.

What’s next?

Management will initially focus on the suppression of two spotted mite in tomato and cucurbit crops, which present an addressable market opportunity estimated at 16,000 hectares in Australia. It notes that both tomato and cucurbit crops are vulnerable to insect pests and disease and, as such, conventional pesticides are critical.

But it doesn’t stop there. The company is part of several larger field trials overseas where other types of crops and applications, such as anti-fungi, are being evaluated. These could extend its addressable market to an estimated 500,000 hectares.

In order to reach these markets, Calix is now developing commercial relationships with specialist global crop protection companies with the expertise and capability to fully utilise Calix’s material bioactivity.

The post Here’s why the Calix (ASX:CXL) share price is storming higher today appeared first on The Motley Fool Australia.

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• Calix (ASX:CXL) share price jumps 11% following half year update

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 Endeavour Group Ltd (ASX: EDV) share price has managed to handily outperform the S&P/ASX 200 Index (ASX: XJO) since listing on 24 June last year.

While the ASX 200 is down 3.3% since 24 June, the Endeavour share price has leapt more than 15% higher. It’s also up 10% in the past month.

Why have investors been rewarding the company?

Endeavour, as you’re likely aware, is a spin-off from the supermarket giant Woolworths Group Ltd (ASX: WOW).

The company has a market cap of $12.5 billion. Its portfolio includes well-known alcohol businesses like Dan Murphy’s, BWS, Cellarmasters and more. It also owns numerous licensed hospitality venues and manages more than 330 licensed venues.

ASX investors rewarded the company after it released strong financial results in its maiden reporting season as a listed company.

Some highlights included a 15.6% leap in group net profit after tax (NPAT), which reached $311 million. Earnings per share (EPS) were up 16% from the prior corresponding period to 17.4 cents per share (cps). And Endeavour declared an interim dividend of 12.5 cents per share, fully franked.

The Endeavour share price gained 10% on the day.

But after such a strong run of outperformance, can the company continue to deliver?

Why the Endeavour share price has still ‘got legs’

For some insight into what investors might expect in the year ahead for the Endeavour share price, we defer to Michelle Lopez, Head of Australian Equities at abrdn.

Asked by Live Wire which single share “stood out as a great result in reporting season”, Lopez said:

For us, Endeavour was one of those. And Endeavour was the spinoff from Woolies. They had the retail side, which is your Dan Murphy’s and BWS, and then you had the pubs and hotels. So they own a portfolio nationwide. And really that stood out, particularly the margins within the retail business, they were significantly higher than expectations. So it drove a 20% beat at the earnings line.

Among the strengths supporting the Endeavour share price, Lopez highlighted the company’s broadly diverse portfolio:

Endeavour’s one of these stocks that almost there’s a natural hedge within the business itself. So yes, they’ve got the retail side. But they’ve also got the pubs and the hotels. And it’s the largest portfolio from a listed company. They get the reopening trade. They’ve done really well, up until now, from consumption at home, and now pivoting into the hotels, which is three times the margin of the in-home. So I think that one did really well.

Lopez noted that the Endeavour share price gained 10% on 21 February, the day it reported those results.

“But I still think it’s got legs from here,” she added.

The post Up 10% in a month, why the Endeavour (ASX:EDV) share price has still ‘got legs’: fundie appeared first on The Motley Fool Australia.

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• Party pooper? Why the Endeavour (ASX:EDV) share price is slumping today
• Here’s what you need to know about the Woolworths (ASX:WOW) dividend
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• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher

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

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

What happened

Shares of EV truck and technology company Cenntro Electric (NASDAQ: CENN) gained as much as 56.7% in mid-day trading Monday. Shares of the small-cap stock lost some of those gains but still ended the day up 20.8%.

So what

Cenntro makes commercial electric utility vehicles, including box and flat bed trucks, vans, and terrain vehicles. Shares soared after Cenntro announced an acquisition today that will expand its capabilities in Europe. While a relatively small purchase valued at about $16.5 million, that amount represented more than 5% of Cenntro’s total market capitalisation heading into today’s trading.

Now what

Relative to Cenntro’s market cap, an acquisition that size would be like Tesla making an investment worth about $45 billion. That would be meaningful, and investors believe this could be meaningful for Cenntro’s growth plans.

Cenntro chairman and CEO Peter Wang said in a statement:

Through this acquisition, we gain a significant geographical advantage and the addition of key management personnel within the European region, unlocking significant global growth opportunities for the company.

The purchase of Tropos Motors Europe will allow Cenntro to offer more light-to-medium-duty commercial vehicles by adding a European customer base, as well as expand its assembly capabilities and distribution network. Commercial delivery and work vehicles are a niche for EV manufacturers that should continue to grow as companies work to lower their carbon footprint. With oil prices spiking at the same time today, investors are putting money in many EV manufacturers, like Cenntro, they think will have plenty of market demand to satisfy.

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

The post Why 1 small EV stock soared more than 20% today appeared first on The Motley Fool Australia.

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Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.

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

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The REA Group Limited (ASX: REA) share price is falling again with the market on Tuesday.

In morning trade, the property listings company’s shares are down 2.5% to a new 52-week low of $124.51.

Is the REA share price weakness a buying opportunity?

While the weakness in the REA share price in 2022 has been disappointing, it could be a buying opportunity for investors.

According to a recent note out of Goldman Sachs, its analysts have a buy rating and $167.00 price target on the company’s shares.

Based on the current REA share price, this implies potential upside of 34% for investors over the next 12 months.

Why is the broker positive on REA?

Goldman Sachs was pleased with the company’s performance during the first half of FY 2022.

It commented: “REA also delivered strong 1H22 earnings growth which was broadly in-line with our expectations, but was weaker in the core Australia business. With a strong start to 2H (i.e. listings +14% in Jan), and continued pricing/depth residential tailwinds, we expect solid 2H momentum.”

And while the broker suspects that investors may have concerns over REA’s ability to build on this next year, its analysts continue to forecast earnings growth in FY 2023.

Goldman explained: “We believe investor focus will now be on the outlook into FY23, given slowing price/depth contributions and a very tough listings comparable. We forecast FY23 EBITDA growth of +7%, assuming (1) -5% listings headwinds (-7% adj. for non-repeat of Fed Election) offset by +6% price and +3% depth/new products (such as Audience Max/Connect) (2) Improving trends in Commercial/Developer given strong expected project commencements; (3) Continued growth at Hometrack; (4) Improved MOC earnings; and (5) International momentum, particularly with smaller India losses.”

Goldman is forecasting EBITDA of $682 million in FY 2022, then $729 million in FY 2023 and $818 million in FY 2024.

Based on these forecasts, the broker clearly believes the REA share price is good value at the current level.

The post 52-week low: Broker says the REA (ASX:REA) share price has 30% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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March could be a big month for these ASX uranium shares – they’ve been recognised as two of the exchange’s largest companies.

Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) will join the All Ordinaries Index (ASX: XAO) on 21 March.

Right now, the Boss Energy share price is $2.36. That of Deep Yellow is 85 cents.

Interest in the companies might also be boosted by news of Australia’s future nuclear-powered fleet, released this week.

Let’s take a closer look at what all this could mean for these ASX uranium shares.

Could these ASX uranium shares be in for a big month?

Boss Energy and Deep Yellow shares could be boosted when the ASX uranium companies are added to the All Ords.

Their addition to the All Ords could see trading of their stock intensify for a period. That’s because funds tracking the All Ords will need to buy in to continue reflecting the index.

Additionally, fund managers mandated to trade only in All Ords constituents might turn their attention to the ASX uranium shares.

The index tracks the 500 largest companies on the ASX, representing nearly 90% of the exchange’s value.

According to the ASX, Boss Energy has a market capitalisation of around $673 million.

Meanwhile, Deep Yellow’s valuation is approximately $329 million.

The companies might also be in the spotlight this week amid news of Australia’s planned nuclear-powered submarine fleet.

Neither company is publicly involved with the fleet. However, news on the nuclear-powered vessels tends to draw attention to the ASX uranium sector.

Prime Minister Scott Morrison announced yesterday a new submarine base will be built on Australia’s east coast.

The cost of the new base – to be located in Brisbane, Newcastle, or Port Kembla – is unclear.

However, the Department of Defence estimates more than $10 billion will be needed to support the shift to nuclear-powered submarines.

On top of that, the ASX uranium shares might be in the spotlight on news Australia could acquire nuclear-powered submarines earlier than expected.

Defence Minister Peter Dutton signalled the government’s decision on which submarines to acquire under the AUKUS alliance could be finalised within months, according to reporting by the ABC.

The minister also noted the fleet could be in operation before 2040 – as is currently expected.

The post Why these 2 ASX uranium shares could be set for a boost this month appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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