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There are few things as pervasive and potentially destructive to real returns than inflation. The fear of watching rising costs consume investors’ portfolios has many people seeking out the best corners of the S&P/ASX 200 Index (ASX: XJO) to fend off the devaluing phenomenon.

For this reason, the market has tended to steer away from the traditionally dubbed ‘growth shares’. Taking their place in popularity are the companies with proven profits at reasonable prices — otherwise known as ‘value shares‘.

Although, which ASX 200 value shares might not only handle higher inflation but actually benefit from it? Offering potential answers to this question, Lazard Asset Management portfolio manager Aaron Binsted rattled off a few names with Livewire recently.

Let’s take a look at what the fund manager had to say.

Inflation beneficiaries in the ASX 200

According to Binsted, value shares are set to outperform amid a turn away from the speculative side of the market. Behind this confident projection are a number of key factors firming the fund manager’s view. These include rising inflation, earlier rate increases, and extreme volatility.

In the interview, Binsted highlighted three ASX 200 companies that he expects will ride the wave of inflation.

Firstly, the portfolio manager labelled the energy and insurance sectors as breadwinners during the transitioning environment. Of these, Woodside Petroleum Ltd (ASX: WPL) was Binsted’s top pick among energy shares.

With oil prices at seven-year highs, nearing US$100 per barrel, beefed cash flows and margins are enticing to the fund manager. Binsted said:

We know that gas demand is going to have structural growth in Asia for at least the next 20 years. So, it’s a really nice combination of really high returning cash flow, short payback in oil and longer-term steady cash flow on the LNG side

Meanwhile, on the insurance front, QBE Insurance Ltd (ASX: QBE) takes the crown as the pick of the bunch. Binsted expects QBE to gain around 5% to 6% on its earnings per share (EPS) for every 0.25% increase in interest rates. If this turns out to be true, the insurance provider could be staring at bigger profits in the future.

The final ASX 200 share that might be a winner under inflationary circumstances is Computershare Limited (ASX: CPU). According to the experienced investor, EPS could lift 10% for each 0.25% rate rise. The stock registry services provider won over the market with a solid half-year result in early February.

The post 3 ASX 200 value shares to buy for higher inflation: fundie appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Banking on the QBE (ASX:QBE) dividend? Here’s what you need to know
• In a sea of red, the Woodside (ASX:WPL) share price is again hitting new highs. Here’s why
• 5 things to watch on the ASX 200 on Tuesday
• Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season

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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The S&P/ASX 200 Index (ASX: XJO) is staging a mild recovery so far today after yesterday’s nasty fall. At the time of writing, the ASX 200 has gained 0.36% and is sitting at 7,187 points. 

So let’s dive a little deeper and check out the shares that are currently topping the ASX 200’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far on Wednesday

Scentre Group (ASX: SCG)

ASX 200 Real Estate Investment Trust (REIT) Scentre Group is our first share to check out today. The owner of the Westfield brand in Australia has seen a sizeable 16.08 million of its shares change hands so far. This follows the company’s half-year earnings results that were released this morning.

As my Fool colleague Zach covered earlier, this saw Scentre report a 10.9% increase in operating profits and a 103.6% rise in dividend distributions. However, investors don’t seem to be impressed, and have sent Scentre units down a meaningful 4.75% so far today at $3.01 a unit. It’s these factors that are likely behind this elevated volume we see. 

Telstra Corporation Ltd (ASX: TLS)

Telstra is our next share to check out today. This ASX 200 telco has had a notable 17.43 million shares swap owners thus far this Wednesday. 

Unlike Scentre, there has been no major news or announcements out of Telstra today. However, the company is up a beefy 2.3% so far today at $4.02 a share. Also, Telstra has resumed buying its own shares back on the open market. These two catalysts might be responsible for this high trading volume.

Pilbara Minerals Ltd (ASX: PLS)

Lithium producer Pilbara Minerals is our last share today, but certainly not least in terms of trading volume. Pilbara has had 34.1 million shares trade on the markets thus far this Wednesday, topping out the ASX 200. Like Scentre, Pilbara also dropped its half-year earnings report earlier today. As we discussed this morning, the company reported a 49% increase in shipments, along with a whopping 394% surge in sales revenue. 

Investors reacted in a rather strange fashion, sending Pilbara shares down to $2.58 soon after open, but then sending them way back up to the current $2.89 a share, 3.58% higher. Go figure. It’s these earnings and share price volatility that is almost certainly behind this trading volume we are seeing. 

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

More reading

• Why did ASX 200 shares leap on the latest wages data released today?
• Dividend up 103%, but Scentre Group (ASX:SCG) share price down. What gives?
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• These 5 ASX 200 shares are trading ex-dividend today
• Pilbara Mineral (ASX:PLS) share price sinks 7% amid half-year results and CEO exit

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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The S&P/ASX 200 Index (ASX: XJO) has had a rather interesting day of trading so far this Wednesday. After initially spending most of the opening hour or so of trading in the red, the ASX 200 rebounded strongly mid-morning.

This is intriguing because it was around this time that the Australian Bureau of Statistics (ABS) released the latest data on wages and wage growth. Yes, the ABS has released its wage and labour data for the quarter ending 31 December 2021. And it makes for some interesting reading.

Aussie incomes are up

According to the ABS, Australia’s seasonally adjusted Wage Price Index (WPI) rose by 0.7% over the December quarter. That puts the annual wage growth rate at a solid 2.3%. That’s well above the 1.4% recorded at the same point in the previous year.

Queensland was the state that recorded the highest growth at 0.8%. Victoria, South Australia, Western Australia, and the Northern Territory are dragging the chain at 0.5%.

Here’s some of what Michelle Marquardt, ABS Head of Prices Statistics, had to say on these numbers:

The proportion of pay rises reported over the December quarter was higher than usually seen at this time of year. The implementation of the last phases of award updates and state-based public sector enterprise agreements, on top of a rising number of wage and salary reviews, drove wages up 0.7 per cent over the quarter.

Wage pressure continued to build over the December quarter for jobs with specific skills. Private sector wage growth occurred across a broad range of industries as businesses looked to retain experienced staff and attract new staff. Private sector wages rose 2.4 per cent annually, maintaining the rate of growth recorded in September quarter 2021.

But why would numbers like these cause ASX 200 shares to rise, as appears to have been the case this morning? Don’t higher wages mean higher costs for businesses?

Why are ASX 200 shares rising?

Well, in short, higher wages are a very good indication that the economy is firing on all cylinders. We also happen to have very low unemployment right now by historical standards, so a tight labour market and rising wages mean Australian consumers have more money in their pockets to spend. And higher spending is good news for almost every company on the ASX.

Also, as The Motley Fool’s own Chief Investment Officer Scott Phillips discussed this week, rising wages are an especially good sign amid the rising inflation we have seen in recent months. Higher inflation means higher prices across the economy, so it’s a good sign that wages are rising as well. This is ensuring that Aussie workers’ incomes can at least keep pace with any price increases.

So that might be why the ASX 200 index has powered into the green after the release of these numbers. It’s certainly nothing to turn our noses up at.

At the time of writing, the ASX 200 is up a decent 0.45% to 7,193 points.

The post Why did ASX 200 shares leap on the latest wages data released today? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Wednesday
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• These 5 ASX 200 shares are trading ex-dividend today
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

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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The Bitcoin (CRYPTO: BTC) price is up 2% over the past 24 hours but remains down 14% since this time last week. And it’s down 22% so far in 2022.

One Bitcoin is currently worth US$38,058 (AU$52,207). That gives the world’s original cryptocurrency a market cap of US$715.2 billion.

A tidy sum. But a long way from the US$1.2 trillion market valuation it commanded after hitting all-time highs of US$68,790 on 10 November. Since that high the Bitcoin price has lost 45%, according to data from CoinMarketCap.

Where to next for the Bitcoin price?

Forecasting the price moves of cryptocurrencies is no exact science.

To say the least.

But to garner an idea of where the Bitcoin price could be heading next, we look at 3 expert projections, courtesy of Bloomberg, on what crypto investors could expect next.

First up, John Roque of 22V Research believes that the Bitcoin price could sink below US$30,000 amid the ongoing geopolitical uncertainty.

According to Roque, “In the globe’s latest maelstrom – US/Russia/Ukraine – Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold.”

Nexo co-founder Antoni Trenchev is also eyeing the US$30,000 level. That’s some 21% below the current Bitcoin price.

According to Trenchev (quoted by Bloomberg):

Bitcoin’s inability to hold $40,000 amid heightened Ukraine tensions means $30,000 is back in play. Geopolitics has, for now, replaced inflation as the primary driver of both traditional and crypto markets.

Just how low can it go?

There’s no absolute floor to the Bitcoin price, save zero. But most crypto analysts don’t see the token falling nearly that far.

Trenchev believes it will find strong support at US$30,000, saying US$29,000 appears to be a “last line in the sand” for crypto investors.

Katie Stockton, founder of Fairlead Strategies, offers a slightly more bearish outlook.

Turning to the charts, she said the world’s biggest crypto could fall to US$27,200 where it would face its next “key technical test”.

The post Down 14% in a week, where to next for the Bitcoin price? appeared first on The Motley Fool Australia.

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• Have Bitcoin price falls cemented gold as the best safe-haven asset?
• Why Bitcoin, Ethereum and Dogecoin plunged this weekend
• The Bitcoin price just fell 8%. What’s going on?
• Why Bitcoin, Ethereum, and Dogecoin plunged today
• How this tech giant could ‘put booster rockets’ under crypto: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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 Australian Ethical Investment Ltd (ASX: AEF) share price is sliding today amid the company’s half-year results.

At the time of writing, the company’s shares are trading at $7.69 apiece, a 4.47% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.22%.

Let’s take a look at what the wealth management company reported today.

Australian Ethical reports boost in net profit

Highlights of the company’s half-year (H1 FY22) results include:

• Underlying profit after tax (UPAT) of $5.4 million, a 12% gain on the previous corresponding period (PCP) of H1 FY21
• Net profit after tax (NPAT) attributable to shareholders of $5.4 million, up 5%
• Operating revenues surged 38% to $35.2 million
• Interim dividend of 3 cents per share, fully franked
• Diluted earnings per share (EPS) compound annual growth rate of 24%

What else happened in the half?

The surge in operating revenue was underpinned by excellent growth of new customers and net flows, along with solid investment performance. However, this was partly offset by fee reductions in June and October.

The company’s operating expenses also soared 45% to $27.4 million due to more hires, marketing, and project expenses. The company hired five new strategic project contractor staff and employee numbers jumped from 72 in the PCP to 92.

Australian Ethical increased its funds under management by 38% from $5.05 billion in the PCP to $6.94 billion. Average funds under management also surged 47%.

Net flows increased by 42% to $0.6 billion while managed fund flows, excluding institutional, exploded 129%. This was due to strong traction with advisers and direct investors. Total managed fund flows including institutional grew by 37%.

Customer numbers increased 22% compared to the previous half. Managed fund customers rose 32%, while super members went up 20%.

Australian Ethical allocated $0.7 million to its philanthropic foundation during H1 FY22. This went towards a new grants program and a ‘Giving Green’ guide to help Australians donate to climate change.

The interim dividend of 3 cents per share was the same as the previous financial year. The record date for the dividend is 2 March while it will be paid on 17 March.

Management commentary

Speaking on the results, Australian Ethical CEO John McMurdo said:

As an investment business, we are of course closely leveraged to the markets and mindful that current volatility is likely to continue. Even with restrictions easing, the sweeping impact of Omicron shows that sentiment around the pandemic can still shift quickly, while inflationary pressures and political tensions are a front of mind concern for investors.

And while we remain well-positioned to benefit from regulatory, policy, market, and investor tailwinds, any outlook is subject to economic and market conditions.

What’s next for Australian Ethical

Australian Ethical is looking into options to grow its institutional client base. At the moment, institutional clients represent 6% of funds under management.

Commenting on the future outlook, McMurdo added:

We remain focused on implementing our strategic roadmap to capture the opportunities ahead of us amid growing demand from retail and institutional investors for quality ethical investing solutions.

Our confidence to succeed comes from the quality of our people, our ethical investing pedigree and our financial strength.

Australian Ethical share price summary

The Australian Ethical share price has gained nearly 8% in the past year although it is down a significant 44% year to date.

For perspective, the benchmark ASX index has returned around 5% over the past year.

Australian Ethical has a market capitalisation of about $868 million based on today’s share price.

The post Australian Ethical Investment (ASX:AEF) share price falls despite profit boost appeared first on The Motley Fool Australia.

More reading

• 2 unstoppable ASX shares growing rapidly
• Green light, red light! Why did the Australian Ethical (ASX:AEF) share price plunge 13% today?
• 2 ASX shares riding the wave of green energy and ethical investing
• Could Australian Ethical (ASX:AEF) be about to launch a new ETF?
• Are these 2 high-growth ASX shares now beaten-up opportunities?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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Lots of ASX shares are seeing declines of share prices this year. But certain stocks are being beaten up more than others. Experts think that some of these top ASX shares are opportunities.

These are businesses that have long-term growth aims and now the share prices are better value according to leading brokers:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is currently rated as a buy by a few brokers, including Credit Suisse with a price target of $13.54. That’s a potential upside of almost 90%. The Temple & Webster share price has fallen by 33% since the start of the year.

This business likes to describe itself as Australia’s leading pure-play retailer for furniture and homewares.

The ASX share’s growth is capturing a lot of analyst investor attention. In the first half of FY22, it managed to generate $235.4 million of revenue – this was growth of 46% year on year and 218% over a two-year period.

Temple & Webster managed to achieve the sixth straight quarter of revenue per active customer growth. This is helping increase the value of each customer to the ASX share. The number of active customers jumped 34% to 906,000.

The business is focused on growing beyond its core categories. Trade and commercial revenue was up 49% in the period, representing 7% of the total revenue. Home improvement (think paint, plumbing and so on) revenue was up 95%, representing 4% of total revenue. Management said that the company is well placed to be a leading player in both markets.

It’s continuing to invest for growth with technology, data, the customer experience and so on. Trading in the FY22 second half to 6 February 2022 showed revenue growth of 26% year on year.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is another that has fallen. Since the start of the year, it has fallen around 14%.

But it’s rated as a buy by at least five brokers including Morgans. The broker’s price target is $6, which is more than 20% higher than where it is today.

Morgans was impressed by a number of metrics that the ASX share recently reported. The broker also thinks that Baby Bunting will be able to grow more with a wider range of products and increase its position in the market.

Baby Bunting reported that first half total sales grew by 10% to $239.1 million with comparable store sales growth of 6.8%. Online sales were 23.8% of sales, up from 19.7% of sales last year. Online sales grew by 32.6% to $56.8 million.

Private label and exclusive product sales grew by 25.3% to be 44.5% of total sales. Increasing this helps margins. The long-term target is 50%.

The company grew underlying net profit after tax (NPAT) by 16.4% and the interim dividend was increased by 13.8% to 6.6 cents per share.

Based on Morgans’ numbers, the Baby Bunting share price is valued at 21x FY22’s estimated earnings and 17x FY23’s estimated earnings.

The post 2 beaten-up ASX shares to buy for the long-term: experts appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Leading brokers name 3 ASX shares to buy today
• These are the 10 most shorted ASX shares
• Here’s why the Baby Bunting (ASX:BBN) share price has dived 5% in 2 days
• 3 reasons why the Temple & Webster (ASX:TPW) share price is a buy after its plunge: experts

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Baby Bunting and Temple & Webster Group 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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Shares in construction materials magnate Boral Limited (ASX: BLD) are flat today and now trade less than 1% in the green at $3.64.

After going ex-dividend earlier this month – where the company returned a mammoth $3 billion to shareholders –the Boral share price is now trading around its 52-week lows.

However, the group’s half year results released last week weren’t enough for investors to onboard back into Boral shares. Instead, they’ve remained flat until today.

Why’s the Boral share price trending at yearly lows?

The big drop seen in early February is readily explained by the return of capital to shareholders. However, Covid-19 lockdowns caused an impulse of pain for the company’s earnings in 1H FY22.

For instance, net profit after tax (NPAT) before significant items was down 12% year on year, leading earnings per share (EPS) to plunge 10%.

Hence, investors trimmed early gains seen after Boral’s dividend and have sent the share price tracking lower during the past week after it released earnings.

Not only that, it appears that the days of big, fat juicy dividends for Boral’s shareholders might be over for the time being, if language from its CEO Ryan Stokes is anything to go by.

According to reporting from The Australian, the company’s chief executive reckons that Boral will use its balance sheet to fund future growth rather than shareholder accounts.

Don’t forget that Boral got a circa. $2.1 billion cash bastion from the sale of its US Fly Ash business earlier this month as well, replenishing its free cash flow and current asset position after dividends.

Stokes said that the surplus capital “provides flexibility” for Boral to put its balance sheet to work, but that dividends aren’t “a high priority”.

Instead, the focus is on core operations and driving growth in the Australian construction materials business, the group’s chief said.

What now for the Boral share price?

Boral now faces the hurdle of producing a total real rate of return – i.e. one that factors in inflation – higher than the current rate of inflation.

Capital gains won’t get there, seeing as the stock is now down more than 40% for the year. However, with the 7 cents per share special dividend and interim dividend of 23 cents, this is a growth of more than 200% on last year’s interim dividend. So the income component in Boral’s investment debate certainly stacks up for this year.

Yet, moving forward, the language from Stokes is steering Boral away from this kind of bulky dividend, and thus the forward dividend yield and capital gain might not match up to the level of inflation.

Traditionally, market pundits seek a return that outpaces the level of inflation in the economy, as a truer measure of investment performance. This ‘real return’ is adjusted for inflation, versus nominal return, which just looks at the absolute numbers.

From February 2021–22, Boral easily outmatched more ‘defensible’ asset classes like government bonds and gold, as seen on the chart below.

However, times are different, and financial markets are now pricing in more pessimism than before, and many ASX indices are showing nervous jitters in the last month.

As such, the performance of ASX shares has faltered whereas defensible asset classes (like gold and bonds) have surged once again.

For example, since November last year one could have purchased gold bullion or the Australian Government 10 year note and received a rate of return beating inflation.

The divergence has got most pronounced since Boral’s dividend date and has failed to recover, as shown on the chart below.

Both of these are traditionally lower-risk asset classes compared to stocks, but returns have been fairly lacklustre over recent years.

The yield to maturity on the 10-year is currently at 2.256%, offering a return that matches CPI growth in Australia. Meanwhile, gold bullion has curled up by 5% in this time, as the market piles into the yellow metal.

Hence it’s yet to be seen if Boral will offer the superior returns to shareholders in terms of capital gains and dividends that it formerly did.

In the past 12 months, the Boral share price has fallen 29% and is down 40% this year to date.

The post Why did the Boral (ASX:BLD) share price just hit a new 52-week low? appeared first on The Motley Fool Australia.

More reading

• Boral (ASX:BLD) share price edges lower as COVID hits profits
• These were the worst performing ASX 200 shares last week
• Why Boral, Magellan, REA, and SEEK shares are falling today
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Did the Boral (ASX:BLD) share price really just collapse 40%?

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.35% to 7,186.4 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Accent Group Ltd (ASX: AX1)

The Accent share price is up 10% to $2.11. Investors have been buying this footwear retailer’s shares following the release of its half year results. Although Accent posted a sharp decline in profits due to COVID headwinds, investors appear optimistic that its performance will improve now lockdowns have come to an end.

Healius Ltd (ASX: HLS)

The Healius share price is up 5.5% to $4.42. This follows the release of the healthcare company’s half year results. Healius revealed a 43% increase in revenue to $1,339 million and a massive 226% jump in underlying net profit after tax to $245.6 million. This strong growth was driven largely by demand for COVID testing services.

PEXA Group Ltd (ASX: PXA)

The PEXA share price has jumped 15% to $19.65. Investors have been buying the property settlement platform company’s shares after it reported a 46% increase in half year revenue to $145.4 million and a 71% jump in EBITDA to $75.5 million. This was ahead of expectations and led to management upgrading its full year pro forma guidance from $107.6 million to between $120 million and $130 million.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is up 3.5% to $44.25. This morning the logistics solutions technology company released its half year results and revealed strong top and bottom line growth. WiseTech reported an 18% increase in revenue to $281 million and a 77% jump in underlying net profit after tax to $77.3 million. This strong performance has led to management upgrading its FY 2022 earnings guidance.

The post Why Accent, Healius, PEXA, and WiseTech shares are rising today appeared first on The Motley Fool Australia.

More reading

• Healius (ASX:HLS) share price up 6% after tripling half year profits
• Great expectations: Why is the Wisetech (ASX:WTC) share price not gaining more today?
• ASX 200 (ASX:XJO) midday update: Woolworths impresses but Domino’s crashes after earnings miss
• PEXA (ASX:PXA) share price rockets 10% on guidance boost
• Accent (ASX:AX1) share price lifts 6% despite ‘severely impacted’ first half results

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

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Amongst the ASX 200’s blue-chip shares, the BHP Group Ltd (ASX: BHP) share price was one to watch over 2021. During the year that was, BHP shares fell by around 2% over the 12-month period. This was despite the fact that the Big Australian’s shares rose by 26% between January and the end of July.

But what made BHP worth watching was not the (at times) wild share price performance. It was the dividends that BHP was paying out. The 2021 interim dividend of $1.31 per share was one of the highest BHP has ever paid. And the final dividend of $2.715 per share that investors received on 21 September was a record high.

The total $4.026 per share in dividends that BHP investors enjoyed in 2021 was a massive increase on the already solid $1.75 per share total from 2020.

The 2021 payouts would give BHP shares a trailing dividend yield of 8.36% on the current share price of $48.13.

And yet, BHP has once again upped the stakes.

Last week, the mining giant reported its half-year earnings results. These contained some very pleasant news for income investors. The company announced a record new interim dividend of US$1.50 per share. At today’s currency exchange rates, that translates into a payment worth $2.07 per share. That’s a new record high for the interim payout.

And with this payout included, BHP’s dividend yield now stands at a whopping 9.94%. With BHP’s full franking credits, that grosses up to a rather monstrous yield of 14.2%. Even its raw yield is amongst the highest you will see out of almost any ASX 200 blue chip right now.

Is BHP’s 14% dividend yield here to stay?

The thing to remember about a company like BHP is that its record-high dividends are built on a foundation of historically high commodity prices. BHP primarily deals with iron ore, coal, oil, and copper. And all of these commodities have seen meaningful price appreciation in recent months, and years in some cases.

But commodities are notoriously cyclical, and if (or when) they do come back to Earth, it might be prudent to expect lower dividend payments from BHP and other companies that mine them. No dividend is ever guaranteed to stay at a consistent level, as is evident from looking through BHP’s long dividend history.

But that doesn’t mean shareholders can’t enjoy the windfall coming their way. The interim BHP dividend will be paid on 28 March.

The post Does BHP (ASX:BHP) really have a 14% dividend yield right now? appeared first on The Motley Fool Australia.

More reading

• The iron ore price outlook could be darkening amid China’s latest plans
• 2 ASX 200 dividend shares named as buys
• ASX 200 shares stage comeback amid Russia optimism
• Why has the South32 (ASX:S32) share price rocketed 60% in 6 months?
• Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season

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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been on the up-and-up these last few weeks.

In fact, it’s the best performing major S&P/ASX 200 Index (ASX: XJO) banking stock of the last fortnight, boasting an 11.6% gain.

At the time of writing, Bendigo Bank’s shares are trading at $10.10, having gained another 0.15% today.

For context, the ASX 200 is currently up 0.2% while the All Ordinaries Index (ASX: XAO) has gained 0.3%.

Let’s take a look at what’s been driving the ASX 200 retail bank’s stock lately.

Why is the Bendigo Bank share price outperforming lately?

The Bendigo Bank share price has grown from $9.05 at the ASX’s close on Tuesday 8 February to trade at $10.10 today.

Only the share price of National Australia Bank Ltd. (ASX: NAB) has come close to recording such a gain. It’s boomed 7.8% over the last 14 days.

Looking at the broader market, the Bendigo Bank share price’s moves are even more impressive. The S&P/ASX 200 Financials Index (ASX: XFJ) has gained just 2% in that time, while the ASX 200 is trading relatively flat.

So, what’s been driving the bank’s stock higher? Well, Bendigo Bank dropped its earnings for the first half of financial year 2022 early last week, sending its share price surging 4.4% on the day of the release.

Over the 6 months ended 31 December 2021, the bank’s statutory net profits surged 31.7% while its revenue increased 8.5% on those of the first half of financial year 2021.

It was residential lending that spurred its impressive earnings. It grew by 8.4% over the period, compared to 7.6% system growth.

While the market was seemingly happy with the bank’s results, brokers responded with mixed reactions.

As The Motley Fool Australia’s Zach Bristow reported, analysts at JP Morgan were concerned about the bank’s cost cutting targets.

Meanwhile, those at Barclay were extra bullish on the bank’s stock following its earnings.

The post Up 11% in two weeks. What’s been driving the Bendigo Bank (ASX:BEN) share price lately? appeared first on The Motley Fool Australia.

More reading

• To buy, or not to buy, that is the question: Analysts are indecisive on Bendigo Bank (ASX:BEN) shares after mixed earnings
• Why are ASX 200 bank shares getting so much love today?
• Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• Bendigo Bank (ASX:BEN) share price lifts amid 32% jump in profits

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 owns and has recommended Bendigo and Adelaide Bank 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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