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The Coles Group Ltd (ASX: COL) share price will be on watch this morning.

This follows the release of the supermarket giant’s half year results.

Coles share price on watch after earnings decline

• Revenue up 1% to $20,785 million
• Earnings before interest and tax (EBIT) down 4.4% to $975 million
• Profit after tax down 2% to $549 million
• Fully franked interim dividend flat at 33 cents per share

What happened during the first half?

For the six months ended 31 December, Coles reported a 1% increase in revenue to $20,785 million. Management advised that this reflects elevated sales as a result of lockdowns across New South Wales, the Australian Capital Territory and Victoria, as well as a strong Christmas trade period in the Supermarkets and Liquor segments.

It is also worth highlighting that this sales growth was delivered despite Coles cycling significantly elevated COVID-19 related sales in the prior corresponding period.

Things weren’t quite as positive for its earnings. Coles reported a 4.4% decline in EBIT to $975 million for the half. This was caused by higher COVID-19 disruption costs, related travel restrictions on Express’ earnings, and transformation project costs.

In respect to COVID-19 costs, Coles estimates that a total of $150 million of COVID costs were incurred during the period. This is up from $105 million in the prior corresponding period.

In addition, approximately $20 million of implementation operating costs attributable to the Witron and Ocado transformation projects were incurred. Though, Smarter Selling benefits in excess of $100 million were delivered during the period.

Overall, this EBIT result appears to have fallen a touch short of expectations. For example, the team at Morgans was forecasting a 3% reduction in EBIT to $988 million.

Segment performance

In respect to its segments, the Supermarkets segment reported a 1.1% increase in sales to $18,016 million and a 0.8% reduction in EBIT to $896 million.

Whereas the Liquor segment reported a 2.7% lift in sales to $1,999 million and a 4.8% reduction in EBIT to $99 million, and the Express segment posted an 8.5% decline in sales to $578 million and a sizeable 62.5% reduction in EBIT to $12 million.

The latter was impacted by lower fuel volumes due to restrictions on movements during COVID lockdowns.

Outlook

No guidance has been given for the second half but management has provided an update on current trading conditions.

It said: “As Omicron spread through the community in the early part of January, Supermarkets sales were elevated before moderating later in the month. There has been significant variation in sales performance between states, store locations and on a week-to-week basis as a result of COVID-19 and floods in South Australia which have had an impact on sales, particularly in Western Australia. Coles will continue to focus on providing trusted value for customers, including through Exclusive to Coles products, despite increasing cost pressures.”

“While the current operating environment remains uncertain, COVID-19 costs of approximately $30 million were incurred in January, primarily due to the large number of COVID-19 related isolations, which have now moderated in February,” it added.

The post Coles (ASX:COL) share price on watch after COVID costs hit earnings appeared first on The Motley Fool Australia.

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• Why UBS is warning of more pain for the Coles (ASX:COL) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. 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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Is the Webjet Limited (ASX: WEB) share price a candidate to take off in 2022?

Well, it already has surged in the last few weeks. Since 27 January 2022, the Webjet share price has jumped 29%.

What is driving the Webjet share price higher?

It was announced on 7 February 2022 that Australia would reopen to all fully vaccinated visa holders, welcoming the return of tourists, business travellers and other visitors from 21 February 2022. That was yesterday.

Visa holders who are not fully vaccinated will still require a valid travel exemption to enter Australia, and will be subject to state and territory quarantine requirements.

Webjet has long said that closed borders cause a significant impact on profit.

A few months ago, Webjet said that demand was already “snapping back” and that there was a rapid return to high booking volumes as borders reopened. WebBeds was profitable since July, whilst the Webjet online travel agency (OTA) returned to profitability in October 2021.

What does the outlook look like?

The ASX travel share is intent on capitalising on the travel recovery. Management believe that its geographic diversification has become a core strength as different regions recover at different times and the market opportunity has increased for all businesses.

WebBeds – the business to business (B2B) segment – was seeing November total transaction value (TTV) tracking at 63% of pre-COVID sales yet many key markets were still to open. It’s not the same business as it was pre-COVID, it has expanded its geographic presence in the North American market, added significant domestic inventory globally and signed a range of new customers.

WebBeds is on track to be 20% more cost efficient when at scale, which will come with a targeted earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 62.5%. This could be supportive for the Webjet share price.

Webjet OTA is also “positioned well for growth” with bookings picking up and the opportunity to capture market share.

The Webjet boss John Guscic said:

The opportunities are significant with pent-up demand evident globally as we see travel snapping back as markets open. Our reduced cost base, enhanced technology and strong customer service ethos, in conjunction with a culture of constant product innovation, places us in a powerful position to capture bookings as the recovery continues. Our strong capital base also ensures we can take advantage of strategic opportunities as they arise in a realigned and changing global industry.

For example, it recently announced a US$10 million strategic investment in ROOMDEX, a US-based leader in automated hotel upselling solutions. Webjet has secured a 49% stake with a future option to acquire the remaining 51%. WebBeds plans to offer ROOMDEX products to maximise hotel partners’ revenue from every room sold.

Broker opinions on the Webjet share price

Morgans rates Webjet as a buy, with a price target of $6.60. That’s a potential double digit upside this year.

Ord Minnett is even more positive on the business, with a buy rating and a price target of $7.31. That’s upside of more than 20%.

The post Is the Webjet (ASX:WEB) share price about to fly higher? appeared first on The Motley Fool Australia.

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• Why are ASX travel shares taking flight today?
• These are the 10 most shorted ASX shares
• Why the Webjet (ASX:WEB) share price is a seriously undervalued ASX share: expert
• These were the best performing ASX 200 shares last week

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 Webjet 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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Ooh!Media Ltd (ASX: OML) shares jumped 5.15% into the green on Monday after the company announced its financial results for the full year ended 31 December 2021.

The Ooh!Media share price finished the day up at $1.735 as investors responded positively to the company’s earnings results.

Ooh!Media share price jumps on home audience rebound

Key takeouts from the company’s earnings results included:

• Revenue up 18% to $503.7 million – strong revenue recovery across key formats
• Revenue in Road for November and December 2021 at record monthly levels
• Gross margin of 44.1%, (up 1.8 points) – “strong recovery towards pre-COVID levels”
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 24% to $77.6 million, with margin expansion leveraging revenue growth
• Underlying net profit after tax (NPAT) of $12.7 million compared to a loss of $8.5 million in prior year
• Financial position strengthened further – gearing ratio down to 0.8 times (from 1.8 times CY20) and net debt reduced by 43% compared to 31 December 2020
• Net profit after tax (NPAT) (pre AASB16) of $800,000 compared to a loss of $24.3 million in the prior year
• Reported loss after tax (post AASB16) of $10.3 million compared to a loss of $36.2 million in prior year.

What else happened this period for Ooh!Media?

According to the company, it “successfully leveraged the continuing recovery in Out of Home audiences during the year to deliver an 18% year-on-year lift in revenue to $504 million”.

Apparently, the diversity of Ooh!Media’s assets across a range of out of home formats “ensured it was able to deliver this revenue uplift despite substantial lockdowns in Q3 CY21 and early Q4 and some formats (Fly, Office, Rail) continuing to be impacted by the pandemic”.

Not only that, the company maintained significant operating leverage that enabled it to grow earnings and operating income faster than revenue. In other words, each change in sales translated into a higher change in earnings for the company this half.

As such, this resulted in a 24% increase in underlying EBITDA “despite lower rent abatements and no government wage subsidies in CY21 compared to CY20”.

Ooh!Media is also set to start rewarding shareholders via a newly-reinstated dividend.

“As a result of oOh!’s strong financial position, the Company will recommence dividends to shareholders for CY21” the company remarked.

Management commentary

Speaking on the announcement, Ooh!Media chief executive officer, Cathy O’Connor, said:

oOh! successfully leveraged Out of Home audience growth to deliver a much improved financial result. The strong result is a testament to our strategy. As the market leader across Australia/New Zealand, we are uniquely positioned to capitalise on the audience recovery in Out of Home. Our scale and diversity across a number of formats means we are also able to deliver this growth despite some formats such as Fly, Office and Rail continuing to be impacted by the pandemic. Meanwhile, our strong operating leverage means we continue to grow earnings faster than revenue which has enabled the Company to return to profitability this year on a pre AASB16 basis and recommence dividends to shareholders. We are also generating further momentum into FY22 with a solid start to the year. First quarter revenue is pacing 15% ahead of the prior corresponding quarter and at 93% of the first quarter 2019. For the medium term, the fundamentals for Out of Home as a growth advertising medium remain compelling. This will only be enhanced by further significant digital investment opportunities across key formats.

What’s next for Ooh!Media?

According to the company, it has started the new financial year well and “revenue for the first quarter CY22 is pacing at 15% higher than Q1 2021 and at 93% of Q1 2019”.

It also noted that it remains prioritised on revenue growth and putting its capital to work in order to generate cash returns for the company.

“While the impact of the Omicron variant on overall demand for advertising media has been limited, there has been a pronounced impact on audience environments which have seen substantially less foot traffic than pre-COVID such as Offices and Airports Capital expenditure for the full year is expected to be between $45 million and $55 million and remains focused on revenue growth opportunities and concession renewals”, it concluded.

Ooh!Media share price snapshot

In the past 6 months, the Ooh!Media share price has gained 19.66%. The past year, however, has seen the company’s shares rise by just 2.06%.

The post Earnings boost: Ooh!Media (ASX:OML) share price spikes 5% with audience rebound 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 recommended oOh!Media 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 Fortescue Metals Group Limited (ASX: FMG) share price has been drifting lower in recent weeks.

Since 11 February 2022, Fortescue shares have dropped by 14%.

The iron ore price has seen a decline as well. According to Commsec the iron ore price has fallen to US$133.5 per tonne. It wasn’t long ago that it was above US$150 per tonne.

What’s the cause? Market commentators might suggest it’s because of Chinese influence. The Australian Financial Review reported that “China’s state planner and the market regulator told some iron ore traders to release excess inventory and reduce stocks to reasonable levels following a joint investigation in Qingdao, one of the country’s largest iron ore ports.”

China is the key buyer of iron ore, so what the Chinese do can have a significant impact on demand and prices. This can also have a flow-on effect on the Fortescue share price.

Fortescue also recently reported its FY22 half-year result for the six months to 31 December 2021.

HY22 result

Fortescue revealed that its revenue fell by 13% to $8.13 billion and net profit after tax (NPAT) dropped 32% to $2.78 billion.

The decline in profit led to a 41% reduction of the dividend to $0.86 per share. There was also a reduction of the Fortescue dividend payout ratio to 70% from 80%.

Another element of the profitability reduction was that the discount paid for Fortescue’s lower grade iron ore is increasing. In the half-year period it was a 70% realisation of the average Platts 62% CFR Index, down from 90% in the prior corresponding period.

Indeed, brokers like Credit Suisse have made reference to the fact that they expect the discount to widen which will be detrimental for Fortescue’s iron and hurt profitability.

Fortescue’s higher grade solution

The ASX miner has been looking at some other projects that could increase the grade of iron ore produced. This could support the profit and the Fortescue share price.

The broker UBS says that completing the Iron Bridge project is important. It’s expected to deliver its first production in December 2022. It will deliver 22mt per annum of high-grade 67% Fe magnetite concentrate product.

Fortescue also said that the innovative process design, including the use of a dry crushing and grinding circuit, will deliver globally competitive capital intensity and operating costs.

Regarding concerns about WA’s closed borders limiting access to specialist skills required, the state’s long-term border will come down in early March 2022.

It has entered into an agreement with the Government of the Republic of Gabon to develop the Belinga Iron Ore Project in the country, which is in West Africa. It’s a 36-month exclusivity period. There will initially be exploration works to determine the potential size and grade of the deposit, as well as logistics solutions.

The Gabon Minister for petroleum, gas, hydrocarbons and mines said that the Belinga deposit is one of the world’s largest high-grade iron deposits.

Fortescue has also signed a binding memorandum of understanding to complete an assessment of Sinosteel’s Midwest Magnetite Project, with the assessment to include a rail and port development at Oakajee.

Fortescue share price snapshot

Whilst the company has seen a drop since mid-February, it is still up 40% since the end of October 2021 with the iron ore price going through a recovery.

However, currently, both Credit Suisse and UBS rate it as a sell with price targets of $16.30 and $14 respectively.

The post Why new iron projects could drive the Fortescue (ASX:FMG) share price higher appeared first on The Motley Fool Australia.

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• Dividends down, Fortescue (ASX:FMG) Future Industries spending up. Here’s the miner’s justification

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Share markets have been jittery all year, mainly due to fears of interest rate rises.

An increase in borrowing costs undoubtedly is painful for businesses. Cash flow is diminished, and every dollar paid to suppliers costs more.

And of course, interest rate rises make other forms of investment, like bonds, more attractive. So ASX shares take a hit as capital flows out of stock markets.

But there is a sector that actually benefits from upward-moving rates: finance.

A boost in rates directly translates to an increase in earnings for companies like banks and insurance providers.

As such, here’s a pair of ASX shares in the finance industry that experts are urging investors to buy before rates actually head north:

‘Improving customer satisfaction and market share gains’

Out of the big four banks, Marcus Today portfolio manager Thomas Wegner favours National Australia Bank Ltd (ASX: NAB).

“First quarter 2022 results were ahead of expectations,” he told The Bull.

“Cash earnings grew 9.1% on the prior corresponding period.”

In a year where most ASX shares have lost ground, the NAB stock price has gained 4.6% so far. It’s climbed a stunning 11.5% over the past fortnight.

Wegner is a true believer of NAB’s turnaround narrative. 

“Improving customer satisfaction and market share gains were solid achievements given the challenging operating environment. NAB had been losing market share in the past two years,” he said.

“Management is also optimistic about the outlook and is targeting flat expenses in the 2022 financial year.”

According to CMC Markets, 11 out of 16 analysts currently rate NAB as a “buy”. The remaining 5 designate it as “hold”.

Calculated from the current stock price, NAB is paying out a tidy 4.1% dividend yield to its shareholders.

Buy the dip for this Queensland player

Financial services giant Suncorp Group Ltd (ASX: SUN) is Red Leaf Securities chief John Athanasiou’s pick.

After popping up 6% for the year-to-date earlier this month, Suncorp shares have cooled to be flat for 2022.

“The recent share price fall provides a buying opportunity,” Athanasiou said.

He acknowledged that the company’s performance in the first half of the 2022 financial year didn’t meet market expectations.

“Group net profit after tax fell 20.8% to $388 million in the first half of fiscal year 2022,” he said.

“The result was impacted by natural hazard events and operational impacts from COVID-19. This diversified financial services company is strong, and we expect performance to improve in the second half.”

Eight out of 12 analysts currently rate Suncorp shares as a “buy”, according to CMC Markets. The other 4 advise investors to “hold”.

At the current stock price, Suncorp is giving out a dividend yield of 5.5%.

The post Rate rise coming? 2 finance ASX shares to buy right now appeared first on The Motley Fool Australia.

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• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why did the NAB (ASX:NAB) share price smash 4-year highs today?
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Motley Fool contributor Tony Yoo 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 Starpharma Holdings Ltd (ASX: SPH) share priced closed in the red on Monday after the company released its interim report and financial results for the half-year ended 31 December 2021.

Starpharma shares finished the day 5% down at 98.5 cents.

Starpharma share price tanks amid earnings growth

Key takeaways from the company’s earnings results today include:

• Cash balance at 31 December 2021 $51.3 million, excluding $7.7million received in January 2022 for the FY21 R&D tax incentive refund
• Revenue of $1.9 million, up 200% on the prior corresponding period (pcp), including significant sales of VIRALEZE in Vietnam following the product’s launch in December 2021
• Net operating cash outflows of $11.2 million, excluding $7.7 million of R&D tax incentive refund
• Reported loss for half-year of $8.4M, 19% lower than pcp of $10.4 million

What else happened this half for Starpharma?

The company hit a number of milestones surrounding its product offerings and clinical trial momentum during the half. For example, successfully launched its Viraleze label in Vietnam following registration and signing of a sales and distribution agreement in the region.

As a result, the product is now available through a number of the largest pharmacy chains in Vietnam both in store and online. Starpharma says that, collectively, these pharmacy chains have approximately 1300 pharmacies throughout Vietnam.

The company also achieved launches for Viraleze in Italy, Saudi Arabia and New Zealand during the half, each significant milestones per the release.

“Regulatory processes are ongoing in a number of markets, including Australia and other countries in the Middle East. In the UK, dialogue continues between Starpharma and the UK regulator, MHRA”, the company remarked.

Starparma’s loss for the period of $8.4 million reduced by 19% and was underlined by increased sales of Viraleze on a lower cost base.

Management Commentary

Speaking on the announcement, Starpharma’s CEO, Dr Jackie Fairley said:

Starpharma has achieved a number of valuable milestones throughout the half-year across our DEP® portfolio. We were delighted to sign a new DEP® Research Agreement with a leading global pharmaceutical company. This
new partnership builds on our existing relationships with AstraZeneca, Merck & Co., Inc., and Chase Sun. It has also been exciting to see AstraZeneca expand the potential indications for AZD0466 through a new clinical trial in patients with advanced non-Hodgkin’s lymphoma, which is expected to commence shortly.

What’s next for Starpharma?

The company will endeavour to build out each of its product offerings throughout the remainder of 2022, namely through ongoing clinical trials and country launches.

Aside from that, no formal guidance was provided by the company on Monday.

Starpharma share price snapshot

The Starpharma share price has tanked more than 57% in the past 12 months and is down 26.5% this year to date as well.

In the past week it has lost 4% and after collapsing another 14% in the previous month.

The post Not enough: Starpharma (ASX:SPH) share price plunges despite 200% revenue growth 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. owns and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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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So, on Monday, Australia’s international border was opened for the first time in two years.

When it was clear in March 2020 that the COVID-19 pandemic had taken hold in the country, the federal government sealed the borders. And during the last couple of years, Australia ended up with arguably the harshest isolation measures in the developed world, with some of its own citizens having trouble entering.

But a flight from Los Angeles landing in Sydney on Monday morning marked the teary end of Australia’s self-imposed exile, according to the Sydney Morning Herald.

All fully vaccinated travellers are now allowed to enter Australia without having to serve any isolation periods.

It’s wonderful news for separated family and friends, as well as the tourism sector.

But one expert nominated an unexpected ASX-listed company that would be celebrating Australia rejoining the international community.

Who knew a non-travel company could be so dependent on open borders?

TPG Telecom Ltd (ASX: TPG) is the third-largest telecommunications company in Australia, operating recognisable brands like Vodafone, TPG, and iiNet.

Like most technology stocks, the TPG share price has taken a brutal hit recently.

The company’s shares have fallen almost 18% since their high on 4 October to close Monday at $5.97.

But for Red Leaf Securities chief executive John Athanasiou, TPG is set to increase earnings from Australia’s reopening.

“We expect TPG to benefit from increasing demand for global roaming services in response to international borders re-opening,” he told The Bull.

He’s not the only one thinking the same way. Investors Mutual Limited senior portfolio manager Simon Conn last week cited the same tailwind in marking TPG shares as a buy.

“It’s a fully integrated telecommunications business that has been impacted by COVID, with the lack of roaming, as people haven’t been travelling and overseas arrivals haven’t been coming into the country.”

Athanasiou also likes the outlook for another segment of its business.

“TPG is capable of growing its fixed wireless business, which we expect will provide further upside to its shareholders.”

Conn agreed, seeing what TPG’s bigger rival did with its infrastructure.

“Telstra Corporation Ltd (ASX: TLS) just sold their towers business for 28 times EBITDA,” he said in a Livewire video.

“TPG trades at eight times and they have a similar asset base, which they could then sell and stake in to crystallise some value and pay down debt and accelerate the increase in dividends.”

The post Australia’s borders just reopened: The ASX share set to cash in appeared first on The Motley Fool Australia.

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

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Red Leaf Securities chief executive John Athanasiou shows that even small-cap funds hold some large-cap ASX shares to protect against volatility.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

John Athanasiou: Red Leaf Securities is a boutique brokerage firm that specialises in small-cap stocks — small Australian equities.

We follow a top-down approach to investing, so we pick the sectors that we believe will outperform the market, then do our research. And from there, we pick the best company within that sector. Essentially, our objective is to provide alpha to our clients by adding under-researched Australian companies to their portfolios, which are typically in the small-cap space.

MF: What’s your investment horizon like?

JA: It varies, but typically, we like to see a result in the small-cap space over six months to a year.

MF: The last couple of months have been a tough time for all ASX shares, but especially small caps. They’ve taken a bit of a battering, haven’t they?

JA: They certainly have, particularly in the technology sector.

We all know the two primary reasons for that: the situation in Ukraine and concerns over rising cash rates [and] inflation. We believe that this provides an opportunity to have another look into the small caps space. 

ASX shares with biggest convictions

MF: What are your two biggest holdings?

JA: Even though we specialise in small-cap stocks, we also have large-cap stocks. We want to be conservative. As I mentioned, our objective is to create alpha, so that does allow us to have an overweight position in the large-cap stocks.

One of our two biggest holdings, in light of that, is Macquarie Group Ltd (ASX: MQG).

Obviously, it’s benefitted from a low-interest-rate environment. It pays a dividend of circa 3% on a given day. And we believe in the short to medium term, it will benefit from the disruption that we’re seeing now in the energy markets.

On top of that, going forward, there is real potential for the green investment businesses to outdo their utilities and infrastructure investments. We foresee that as a potential upside going forward.

MF: A couple of months ago, Macquarie actually became one of the big four banks, didn’t it?

JA: It technically did, yes.

And talking about the big four, our other biggest investment, and it sounds really boring, is actually Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Their margins have slightly decreased, but we see that improving. All the big four, essentially, will benefit from rising rates. That’ll improve margins and it’ll moderate the negative impact low interest rates have had on their margins. 

In addition to that, we know that ANZ has made a lot of progress in simplifying their home loans. They’ve lost their market share, but they’ve improved their back office, their technologies.

Which means that your home loan will be approved in a far more timely fashion compared to its peers.

MF: They copped flack for lengthy loan approval times in recent years, haven’t they? So plenty of upside there?

JA: Yeah, there’s the upside. So that’s why we picked them out of the big four.

The post 2 big-cap ASX shares that even this small-cap expert recommends appeared first on The Motley Fool Australia.

More reading

• Is the ANZ (ASX:ANZ) share price a buy for the 7.3% dividend yield?
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Macquarie (ASX:MQG) shares have rallied 34% in a year. Here’s why this fundie says there’s more to come
• Own ANZ (ASX:ANZ) shares? The bank just tipped $70m into a new ‘green’ partnership

Motley Fool contributor Tony Yoo owns Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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If you’re looking to boost your income portfolio with some dividend shares, then the two listed below could be worth considering.

Here’s why these ASX 200 dividend shares could be in the buy zone right now:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. With commodity prices at favourable levels and tipped to remain this way for some time, the Big Australian is generating significant free cash flow. This is providing the mining giant with the opportunity to reward shareholders with big dividends and consider M&A activities.

Although the BHP share price has rallied strongly recently, the team at Macquarie still see scope for it to keep rising. Last week the broker retained its outperform rating and $54.00 price target.

As for dividends, Macquarie is forecasting fully franked dividends per share of ~$4.20 in FY 2022 and then ~$2.54 in FY 2023. Based on the current BHP share price of $48.24, this implies potential yields of 8.7% and 5.3%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share that could be in the buy zone is NAB.

Thanks to its very positive performance so far in FY 2022 (12% increase in Q1 cash earnings), NAB’s shares have been strong performers this year.

The good news is that the team at Bell Potter still see value in its shares at the current level. The broker was impressed with its first quarter performance and put a buy rating and $32.00 price target on the bank’s shares.

In addition, it has pencilled in dividends per share of 132.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $30.75, this equates to fully franked yields of 4.3% and 4.4%, respectively.

The post 2 ASX 200 dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• 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
• Why inflation doesn’t impact all ASX shares equally
• Fund manager reveals one key metric in finding quality ASX shares during a correction

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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On Monday, the S&P/ASX 200 Index (ASX: XJO) overcame a tough start to record a small gain. The benchmark index rose 0.15% to 7,233.6 points.

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

ASX 200 futures pointing lower

The Australian share market is expected to open the day sharply lower this morning following a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 74 points or 1% lower. In Europe, the DAX dropped 3%, the CAC fell 2%, and the FTSE lost 0.4%. Wall Street was closed on Monday for the President’s Day holiday.

Coles half year results

The Coles Group Ltd (ASX: COL) share price will be in focus on Tuesday when the supermarket giant releases its half year results. According to a note out of Morgans, it is forecasting a 3% reduction in earnings before interest and tax (EBIT) to $988 million. It commented: “While increased at-home consumption due to lockdowns in NSW, VIC and ACT in 1Q22 were positive for sales, higher COVID costs could have a negative impact on margins.”

Oil prices rise again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a great day after oil prices charged higher. According to Bloomberg, the WTI crude oil price is up 3% to US$93.86 a barrel and the Brent crude oil price has risen 3.1% to US$96.44 a barrel. Russia-Ukraine tensions continue to support oil prices.

Gold price rises

The Russia-Ukraine tensions are also supporting the gold price, which could bode well for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, at the time of writing, the spot gold price is up 0.4% to US$1,907.90 an ounce.

Nanosonics half year results

The Nanosonics Ltd (ASX: NAN) share price will be on watch today when the infection prevention company releases its half year results. According to a note out of Morgans, its analysts are forecasting revenue of $63.2 million and EBITDA of $11.3 million. The latter is ahead of the market consensus estimate of $10.3 million.

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

More reading

• ASX 200 shares stage comeback amid Russia optimism
• Here are the top 10 ASX shares today
• 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
• Here’s why ASX 200 gold shares turned sharply lower mid-day today

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 Nanosonics Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Nanosonics 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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