Tag: Motley Fool

Brokers have named some interesting ASX dividend shares as buys. They could be leading options for income in the coming years.

Sometimes share prices can be quite volatile, but dividends may be able to offset some of the fear factor by paying a regular stream of income to investors.

With that in mind, here are two to consider, according to brokers:

Inghams Group Ltd (ASX: ING)

Inghams is one of the country’s largest poultry businesses, supplying a huge amount of chicken to Aussies every year.

The Inghams share price has seen some volatility in recent months as COVID impacts bite. Two of the main impacts have been a higher price of feed for the poultry and staff shortages due to COVID (and isolating).

However, the ASX dividend share noted that just over a month ago that changes to the isolation rules for close contacts in the food sector were assisting with the staff shortages. As operating conditions normalised, it was expecting production capacity to recover quickly to meet customer and consumer demand.

In terms of the dividend, Inghams aims to pay reliable dividends to shareholders, with a dividend payout ratio of between 60% to 80% of underlying net profit after tax (NPAT).

FY21 saw an annual dividend of 16.5 cents per share from the poultry company, reflecting a payout ratio of 70.8% of underlying net profit.

Citi is expecting Inghams to pay a grossed-up dividend yield of 6% in FY22 and 7.8% in FY23.

Centuria Capital Group (ASX: CNI)

Centuria is an investment manager with over $20 billion of assets under management (AUM). The business is centred around property funds management and investment bonds.

The business is rated as a buy by the broker Morgan Stanley, with a price target of $3.45. This offers upside of close to 20%.

This ASX dividend share recently announced its FY22 half-year result which showed a 16% increase of AUM growth. It also delivered a 73% rise in operating profit after tax to $56.7 million.

It’s expecting to deliver operating earnings per security (EPS) of 14.5 cents, which would be an increase of 20.8%. It has also provided guidance of a distribution of 11 cents per security. This income guidance translates into a yield of 3.75%.

Broker Morgan Stanley is wary of what effect the prospect of higher interest rates will have on the real estate sector and net flows. The broker likes that Centuria offers exposure to attractive ’emerging’ sectors like agriculture and healthcare.

The real estate business says it’s focused on generating long-term income and potential performance fees for investors.

The post 2 ASX dividend shares that brokers say are buys appeared first on The Motley Fool Australia.

More reading

• Slam dunk: Centuria (ASX:CNI) share price slips amid growth-filled half-year
• 2 ASX shares every dividend investor needs to know about
• 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 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.

from The Motley Fool Australia https://ift.tt/hqca6ol

The JB Hi-Fi Limited (ASX: JBH) share price will be on watch this morning.

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

JB Hi-Fi share price on watch after announcing share buyback

• Total sales down 1.6% to $4.86 billion,
• Online sales up 62.6% to $1.1 billion
• EBIT down 9.1% to $420.5 million
• Net profit after tax down 9.4% to $287.9 million
• Interim dividend of 163 cents per share
• Capital return of up to $250 million to shareholders by way of an off-market buyback

What happened during the first half?

For the six months ended 31 December, JB Hi-Fi reported a 1.6% decline in total sales to $4.86 billion and a 9.4% reduction in net profit after tax to $287.9 million. However, these numbers won’t come as a surprise to investors as they were pre-released to the market in January.

What will come as a pleasant surprise, though, is that management is planning to return all of this profit and more back to shareholders via its interim dividend and an off-market $250 million share buyback. A total of up to $437 million will be returned to shareholders.

In respect to its dividend, JB Hi-Fi is paying investors a fully franked 163 cents per share dividend. This is down 9.4% year on year, which is in line with its earnings decline. Though, as with its sales and earnings, this dividend is up meaningfully on a two-year basis.

JB Hi-Fi Group CEO, Terry Smart, commented: “We are pleased to report strong sales and earnings for HY22. We continued to see elevated demand across all of our sales channels, particularly online which our customers seamlessly transitioned to during the various lockdowns demonstrating the strength and trust in our brands.”

Outlook

JB Hi-Fi has started the second half positively, delivering year on year growth across its key businesses during January. This was thanks to heightened customer demand and comes despite battling supply chain and operational disruption as a result of COVID-19.

The release explains that total sales were up 4.3% for JB Hi-Fi Australia and 2.5% for The Good Guys during the month. The performance of the JB Hi-Fi New Zealand business is improving, but its sales still remained down 1.5% year on year in January.

No guidance has been given for the remainder of the second half due to COVID uncertainty.

Mr Smart concluded: “While it remains an uncertain retail environment, we will continue to stay focused on what we can control. Our highly engaging in-store and online shopping experiences delivered by our passionate and knowledgeable team members, and our continued focus on leveraging our scale to deliver great value will ensure we meet our customers’ needs during these challenging times.”

The post JB Hi-Fi (ASX:JBH) share price on watch after announcing results and $250m buyback appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 strong ASX dividend shares hiding in plain sight
• ASX retail shares have slumped in 2022. Could there be more pain to come?
• Have your cake and eat it: These ASX shares have been paying regular dividends whilst growing their share prices
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?

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.

from The Motley Fool Australia https://ift.tt/uZ1TFMJ

The Webjet Limited (ASX: WEB) share price is an attractively undervalued ASX share according to one leading broker.

For readers that don’t know exactly what Webjet does, there are three divisions to this business.

The first is the Webjet online travel agency (OTA) business which most of the public would know the ASX share for. Next, is the segment that services business travellers called WebBeds. Finally, there is a car and campervan hire business called Go-See.

Why is the Webjet share price undervalued?

The broker Ord Minnett believes that the Webjet share price has a 20% upside this year with a price target of $7.31.

Ord Minnett thinks that Webjet will do well, or is doing well, when it comes to the rebound of travel after all of the COVID impacts.

One of the key elements that the broker likes about Webjet’s potential when it comes to WebBeds is the idea of being more profitable at scale.

When the ASX travel share released its FY22 half-year result, it said that WebBeds has an increased market opportunity due to an expansion with the business-to-customer (B2C) channel. WebBeds is also targeting previously untapped domestic markets and increasing the North American market penetration.

WebBeds is targeting a greater share of a larger market opportunity, with the business-to-business (B2B) total transaction value (TTV) now being worth more than A$70 billion. Webjet is targeting a 14% share of this.

Webjet has streamlined its technology, enhanced Rezchain (blockchain) efficiencies, it’s leveraging data analytics and it is simplifying processes across the business.

WebBeds is on track to be 20% more cost efficient when at scale. This is one of the main reasons that Ord Minnett likes the current Webjet share price. Before COVID-19, WebBeds had a target of ‘8/4/4’. This meant that revenue would be 8% of TTV, costs would be 4% of TTV and earnings before interest, tax, depreciation and amortisation (EBITDA) would be 4% of TTV. That translated to the EBITDA margin target being 50%.

But now, WebBeds is targeting ‘8/3/5’. That means that the EBITDA margin is 5% of TTV, but it would be an EBITDA margin of 62.5% when compared to revenue.

WebBeds has been profitable since July thanks to domestic sales in North America and Europe. November 2021 TTV was tracking at 63% of pre-COVID, with bookings tracking at 69%. Many larger markets were yet to open.

The Webjet OTA returned to a positive EBITDA thanks to domestic border openings and a highly scalable cost base. It can scale key costs in line with demand.

Valuation

Ord Minnett is expecting the business to return to profitability in FY23. Based on the projected numbers, the Webjet share price is valued at 26x FY23’s estimated earnings.

UBS, which also rates Webjet as a buy, is even more optimistic about the profit potential. This broker puts the Webhet share price at 20x FY23’s estimated earnings.

The post Why the Webjet (ASX:WEB) share price is a seriously undervalued ASX share: expert appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Broker says buy Webjet (ASX:WEB) instead of Flight Centre shares
• The ASX 200 just hit 3-week highs. What’s next?
• On a roll. Why is ASX 200 travel share Webjet (ASX:WEB) skyrocketing?
• Why are ASX travel shares Flight Centre (ASX:FLT), Qantas and Webjet lifting off today?

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.

from The Motley Fool Australia https://ift.tt/yh3rGzC

The iron ore price has continued to rise, could this mean that the Rio Tinto Limited (ASX: RIO) share price is an opportunity?

Well, the market has certainly noticed. Since the start of 2022, Rio Tinto shares have gone up by around 23%.

Does a higher iron ore price make Rio Tinto shares a buy?

Commodity businesses are very dependent on the price of the commodity. If the price goes up then it can add to profitability. But if prices fall then it can be very detrimental to profit because it still costs around the same to extract that commodity from the ground.

But at the moment, iron ore is going up. On Friday, Commsec noted that iron ore had gone up 4.8% to US$153.75 per tonne. In the middle of November 2021, the iron ore price had fallen below US$90 per tonne.

Rio Tinto is expected to report a strong result for FY21 after revealing triple-digit profit growth in the half-year result.  Those half-yearly numbers saw free cash flow rise 262% to US$10.2 billion, underlying earnings grew by 156% to US$12.2 billion and the total dividend jumped by 262% to US$5.61 per share.

It recently released its fourth-quarter production result, showing that 2021 iron ore production was down 4% to 319.7 mt. Aluminium production was down 1% to 3,151 kt and mined copper production was down 7%.

But FY21 is the past. Share prices are normally forward looking. Is the Rio Tinto share price an opportunity for FY22?

Expectations for 2022

Commsec numbers currently suggest that Rio Tinto is going to generate $12.88 of earnings per share (EPS) in 2022. With that, the mining giant is expected to pay a dividend of $9.79 per share, which translates into a grossed-up dividend yield of 11.4% at the current Rio Tinto share price.

It’s hard to say what the iron ore price is going to do next. Some analysts like UBS were expecting the iron ore price to languish at around US$80 by now, or at least get there in the shorter-term.

But the iron ore price has soared.

Price targets

UBS still rates the Rio Tinto share price as a sell, with a price target of $90. Plenty of other brokers’ ratings are currently a buy like Macquarie’s and Morgan Stanley’s.

But Rio Tinto shares have actually run ahead of some price targets, like Morgan Stanley’s target of $109. Macquarie has a price target of $130 on Rio Tinto, suggesting a single-digit upside for capital growth over the next year.

Lithium expansion?

Analysts have noted the disappointing news that the Serbian government has blocked Rio Tinto’s exploration licences for the lithium project for Jadar because of environmental concerns.

However, it has diversified its lithium diversification attempt by buying the Rincon lithium project in Argentina for $825 million, which is a large undeveloped lithium brine project in the Salta Province of Argentina.

The post The iron ore price is rising, time to jump on the Rio Tinto share price? appeared first on The Motley Fool Australia.

More reading

• Could opening WA borders expose ASX 200 mining shares to production risks?
• Why IAG, Rio Tinto, Unibail, and Westpac shares are pushing higher
• Here’s what Rio Tinto (ASX:RIO) boss says is ‘causing some challenges’ right now
• Why the end of the Winter Olympics could be good news for the Rio Tinto (ASX:RIO) share price
• Are these the best ASX 200 blue chips to buy right now?

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

from The Motley Fool Australia https://ift.tt/AMRWxqQ

If you’re looking to boost your income portfolio, then you may want to look at the shares listed below.

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

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share to look at is Dexus Industria. It is an industrial and office focused property company formerly known as APN Industria.

This REIT owns interests in office and industrial properties that provide functional and affordable workspaces for businesses. The fund’s portfolio was last valued at $1.78 billion and aims to provide sustainable income and capital growth prospects for shareholders over the long term.

Morgans is a fan of Dexus Industria and recently put an add rating and $3.65 price target on the company’s shares. It is also forecasting dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the current Dexus Industria share price, this will mean yields of 4.7% and 4.8%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share to consider is NAB. It could be a quality option for income investors that don’t already have exposure to the banking sector.

The team at Bell Potter is very positive on NAB and was pleased with its first quarter update last week. So much so, the broker retained its buy rating and lifted its price target on the bank’s shares to $32.50.

Following its stronger than expected update, Bell Potter has upgraded its earnings and dividend forecasts. In respect to the latter, the broker is now forecasting fully franked dividends of 136 cents per share in FY 2022 and 140 cents per share in FY 2023.

Based on the current NAB share price of $29.84, this will mean yields of 4.6% and 4.7%, respectively, over the next couple of years.

The post Analysts name 2 excellent ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Is the NAB (ASX:NAB) share price a buy for the 7% dividend yield?
• Brokers tip NAB (ASX:NAB) share price to storm to a new 52-week high
• 5 things to watch on the ASX 200 on Friday
• Why AMP, AVZ, Megaport, and NAB shares are pushing higher

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.

from The Motley Fool Australia https://ift.tt/zLIKRbe

On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week in a disappointing fashion. The benchmark index tumbled 1% to 7,217.3 points.

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

ASX 200 expected to fall again

The Australian share market looks set to start the week in the red following a selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 76 points or 1.1% lower this morning. On Wall Street, the Dow Jones fell 1.4%, the S&P 500 dropped 1.9%, and the Nasdaq sank 2.8% lower.

Oil prices storm higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong start to the week after oil prices stormed higher on Friday. According to Bloomberg, the WTI crude oil price rose 3.6% to US$93.10 a barrel and the Brent crude oil price rose 3.3% to US$94.44 a barrel. Escalating tensions between Russia and Ukraine sent prices higher

JB Hi-Fi first half update

The JB Hi-Fi Limited (ASX: JBH) share price will be on watch this morning when it releases its first half results. Last month the retail giant advised that it expects to report a 1.6% decline in sales to $4,861.8 million and a 9.4% decline in net profit after tax to $287.9 million. All eyes will be on its trading update for January and the start of February.

Gold price edges higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price rose on Friday night. According to CNBC, the spot gold price rose 0.25% to US$1,842.1 an ounce. The gold price added almost 2% to its value over the five days amid increased demand for safe haven assets.

Platinum downgraded to sell

The Platinum Asset Management Ltd (ASX: PTM) share price could be overvalued according to analysts at Bell Potter. This morning the broker has downgraded the fund manager’s shares to a sell rating and cut the price target on them by 38% to $2.22. It commented: “PTM’s underperformance highlights that this is not a stock for all seasons, and we cannot currently see much attraction.”

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

More reading

• 2 of the ‘best’ ASX shares to buy right now
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
• 2 compelling ASX 200 shares that keep growing their dividends
• 2 strong ASX dividend shares hiding in plain sight
• Down 24% in 2022: Is the Xero (ASX:XRO) share price a strong buy?

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.

from The Motley Fool Australia https://ift.tt/g1NCEGW

Looking for some small cap tech shares to buy? Then have a look at the ones listed below.

Here’s why they could be worth getting better acquainted with:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software that allows sales and service organisations to improve mobile worker productivity through smart devices. Management highlights that businesses such as Nike, Prudential, and Starwood Hotels trust Bigtincan to enable customer-facing teams to intelligently prepare, engage, measure and continually improve the buying experience for their customers.

Morgan Stanley has an overweight rating and $2.10 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap to watch is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite. This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Bell Potter is a fan of Nitro. It currently has a buy rating and $3.25 price target on its shares.

Serko Ltd (ASX: SKO)

Serko could be a small cap share to watch very closely now the travel market recovery is underway. It is an online travel booking and expense management provider with a number of quality solutions that have large market opportunities. Another positive is that it recently signed a deal with US online travel booker Booking.com. This has the potential to be a game-changer over the coming years as the travel giant migrates its customers onto the Serko platform.

Ord Minnett recently retained its buy rating with a $7.93 price target.

The post Analysts name 3 small cap ASX tech shares with major upside potential appeared first on The Motley Fool Australia.

More reading

• Why Cettire, GrainCorp, James Hardie, and Nitro shares are pushing higher
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• ‘Plenty of uplift’: Here’s why the Nitro (ASX:NTO) share price took off today
• 3 excellent ASX tech shares Goldman Sachs rates as buys
• Why Cettire, Novonix, Serko, and Zip shares are sinking 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 BIGTINCAN FPO and Serko Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nitro Software Limited, and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/eWuhKCE

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

Here’s why analysts rate them as buys:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands. Thanks to its investment in product development, these brands have been resonating well with consumers for many years. This has underpinned consistently solid sales and earnings growth. And with the company benefiting from favourable industry tailwinds and continuing to grow its footprint globally, the future looks bright for Breville.

Morgan Stanley is a very positive on Breville. The broker currently has an overweight rating and $36.00 price target on its shares. The broker believes a recent update from rival DeLonghi demonstrates strong industry demand.

Life360 Inc (ASX: 360)

Another ASX growth share to look at is Life360. This growing technology company is responsible for the Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing. As of its last update, the company’s user base had reached over 30 million globally. This is generating significant recurring revenues and opens the door to material cross and upselling opportunities for its recently acquired businesses. These are wearables company Jiobit and items tracking company Tile.

Bell Potter is bullish on the company’s future. It currently has a buy rating and $13.51 price target on its shares. Its analysts believe its “share price [is] set for a 180.”

NEXTDC Ltd (ASX: NXT)

A final ASX 200 growth share that could be a buy is NEXTDC. If is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Especially given its world class network of data centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets.

Citi is a fan and currently has a buy rating and $15.40 price target on NEXTDC’s shares. It believes the company’s Asian expansion is nearing following positive developments in Singapore this month.

The post 3 fantastic ASX 200 growth shares to buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares to buy after recent market weakness
• Why are these ASX 200 tech shares tumbling more than 6% on Friday?
• What are brokers expecting for ASX tech shares this earnings season?
• 3 buy-rated ASX 200 shares with plenty of upside potential
• Here are 3 excellent ASX growth shares for investors in February

Motley Fool contributor James Mickleboro owns Life360, Inc. and NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. 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.

from The Motley Fool Australia https://ift.tt/jE5DxbL

At the current BHP Group Ltd (ASX: BHP) share price, could it be a juggernaut for dividends in 2022?

BHP is one of the biggest dividend payers on the ASX. With the business unifying its UK and Australia business onto the ASX, it’s probably going to be paying the biggest dividend to shareholders (in total dollar terms).

But investors just need to know about the dividend yield on a single BHP share basis and what that means for their portfolio.

How big will the BHP dividend yield be in 2022?

There are different estimates for how big the dividend is going to be for FY22.

Commsec numbers suggest the FY22 dividend is going to be $3.78 per share. That translates into a grossed-up dividend yield of 11%.

Macquarie thinks that BHP will have a FY22 grossed-up dividend yield of 10%. Citi believes that BHP is going to pay a grossed-up dividend yield of 11.3%.

BHP is benefiting from a strong environment for many of its commodities. The iron ore price is steadily climbing. Oil has recovered from the COVID crash. There is an expectation of strong long-term demand for copper and nickel as the world decarbonises.

The S&P/ASX 200 Index (ASX: XJO) resources giant earns its revenue by producing vast amounts of commodities and selling them. Higher resource prices largely translate into extra profit, aside from paying the necessary government taxes. Higher earnings can help the BHP share price and the dividend.

Production remains strong

The company is taking advantage of the higher prices by continuing to achieve high levels of production volume.

In the six months to December 2021, copper production was down 12% to 742kt, but the company said that was due to lower volumes at Olympic Dam due to the planned smelter maintenance campaign, which was completed in January 2022.

The iron ore half-year production was up by 1% to 129.4 mt thanks to strong supply chain performance, increased ore car availability and the continued ramp-up of South Flank.

Petroleum production rose 5% year on year to 53.2 million barrels of oil equivalent.

Oil to be replaced by potash

BHP is on track to divest its oil business to Woodside Petroleum Limited (ASX: WPL).

But it’s planning to grow with another commodity – potash. This is a type of fertiliser that is used to boost land productivity, but it is meant have lower emissions than alternatives.

The commodity giant says that potash provides BHP with increased leverage to key global mega-trends including a rising population, changing diets, decarbonisation and improving environmental stewardship.

Jansen is the name of the project which comes with a series of high-returning growth options. It’s expected to generate an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 70%. It’s expected to become one of the world’s largest potash operations.

Potash could play a major part in influencing the BHP share price and dividend in the coming decades.

The post At today’s share price, is BHP (ASX:BHP) going to be a dividend juggernaut in 2022? appeared first on The Motley Fool Australia.

More reading

• Could opening WA borders expose ASX 200 mining shares to production risks?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How far off is BHP (ASX:BHP) from producing ‘green steel’?
• The ASX 200 just hit 3-week highs. What’s next?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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

from The Motley Fool Australia https://ift.tt/kWICaqb

Investors that are looking for some new ASX shares to buy might want to consider the two listed below.

These ASX shares have been named among the best picks by a leading broker. Here’s what Morgans is saying about them:

Santos Ltd (ASX: STO)

This energy company could be a top option for investors according to Morgans. Its analysts have put an add rating and $9.15 price target on the company’s shares. Based on the current Santos share price of $7.42, this suggests potential upside of over 23% for investors.

Its analysts like the company due to its growth profile, which was boosted from the recent merger with Oil Search.

The broker said: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe.”

“With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger,” it added.

Treasury Wine Estates Ltd (ASX: TWE)

Morgans is a fan of this wine giant and currently has an add rating and $14.06 price target on its shares. Based on the current Treasury Wine share price of $10.69, this implies potential upside of almost 32% for investors.

Its analysts are positive on its growth outlook and believe recent share price weakness has left its shares trading at a very attractive level. This is particularly the case in comparison to long term multiples.

The broker commented: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 onwards. Organic growth will be supplemented by M&A.”

“On this front, we view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important. This high margin business should see TWE achieve its US margin target two years earlier than planned. We see recent share price weakness as a great buying opportunity in this high quality company. The stock is currently trading at a material discount to its long term PE range,” it concluded.

The post 2 of the ‘best’ ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 ASX shares to rise with higher interest rates
• 5 things to watch on the ASX 200 on Thursday
• What to expect when Treasury Wine (ASX:TWE) uncorks its results next week
• ‘A lot of opportunities’: Why this broker is bullish on Santos (ASX:STO) shares

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 Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/owAlIpK