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The Commonwealth Bank of Australia (ASX: CBA) share price has been a strong performer over the course of 2021.

Since the start of the year, the banking giant’s shares have accelerated to post a gain of more than 20%.

At yesterday’s market close, CBA shares finished the day up a further 0.33% to $100.11. This is not far off its all-time high of $110.19 achieved early last month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) tracked 12% over the same time frame. The benchmark index reached a record high of 7,632 points in mid-August, before going on a mini-rollercoaster ride.

With the year almost done, investors may be wondering what’s ahead for Australia’s largest bank in 2022.

Below we take a glance at some of the key dates to watch out for.

Financial calendar for CBA in FY22

Recently, Australia’s largest bank released its calendar for the 2022 financial year. This includes the first-quarter trading update (Q1 FY22) which had already passed on 17 November 2021.

The biggest date around the corner will be 9 February, when CBA plans to deliver its half-year results. Along with its six-month performance review, the interim dividend is also to be announced.

The ex-dividend date for the interim dividend is scheduled to fall one week later on 16 February. This is when investors must have purchased CBA shares to be eligible for the upcoming interim dividend payment.

In addition, eligible shareholders can elect to participate in the dividend reinvestment plan (DRP) with the deadline being 18 February. For those who participate, a discount will be applied to the volume-weighted average price of receiving CBA shares.

The payment date for the interim dividend is set for 30 March, when investors will collect a portion of the bank’s profits.

In contrast, CBA handed shareholders a fully franked interim dividend of $1.50 per share for the first half of FY21.

The above process will again repeat itself with CBA releasing its full-year results on 10 August.

The board will declare the final dividend for FY22 with the ex-dividend on 17 August. This will be followed by the record day on 18 August, and the last election date for shareholders to opt-in to the DRP on 19 August.

The final dividend payment in which shareholders can expect to be rewarded will be on 29 September. Previously, the company paid out a fully franked final dividend of $2.00 per share in FY21.

Lastly, CBA will hold its 2022 annual general meeting on 12 October. This will likely recap the events over the last 12 months, as well as the near-term outlook for the bank.

CBA share price snapshot

Based on today’s price, CBA presides a market capitalisation of roughly $170.83 billion, with approximately 1.71 billion shares on issue.

The company currently has a trailing dividend yield of 3.50%.

The post Own CBA (ASX:CBA) shares? Here are the key dates for your investor diary in 2022 appeared first on The Motley Fool Australia.

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• 5 investment themes to watch on the ASX share market in 2022
• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?
• Will the CBA (ASX:CBA) share price smash its record high in 2022?
• Fed up with term deposits? How to get 10% income from ASX shares
• 2 buy-rated ASX dividend shares for income investors

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

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The Fortescue Metals Group Limited (ASX: FMG) share price has continued it accent in recent times, following positive investor sentiment.

This week, the mining outfit delivered news regarding a breakthrough achievement for its green offshoot, Fortescue Future Industries (FFI).

At Thursday’s market close, the iron ore producer’s shares dipped by 1.44% to $19.16 apiece.

Fortescue Future Industries make progress

According to its media release, Fortescue Future Industries surpassed a milestone target in its quest into the green hydrogen industry.

The global green energy and product company announced it has designed and built its own electrolyser to produce renewable hydrogen.

A small team from Fortescue Future Industries’ manufacturing arm developed the innovative electrolyser in their Western Australia facility. This is the first time the company has been able to create industrial grade hydrogen.

Fortescue Future Industries is aiming to produce 15 million tonnes of green hydrogen annually by 2030. 

Currently, the company is in the process of installing solar panels at its Dawson Road facility. Once complete, the electrolyser will be able to produce green hydrogen from solar electricity in 2022.

A pressurized alkaline system had been used to generate the hydrogen. The hydrogen gas management system is now fully operational and will be used to test all of the company’s prototypes and concepts.

Fortescue Future Industries CEO, Julie Shuttleworth commented:

This is another outstanding achievement from our FFI in-house scientists and engineers – who are continuing to break new ground. The FFI team has designed and operated our own electrolyser system which will be key to developing FFI’s green hydrogen production into the future.

Fortescue Future Industries chair, Dr Andrew Forrest added:

This electrolyser was internally designed, built and commissioned by a small, dedicated team of experts – an impressive achievement that is representative of the hard work that is happening across the whole of FFI.

The team spent thousands of hours on this project, facing setbacks along the way, but they pushed forward and managed to produce hydrogen before their stretch target date.

Fortescue share price snapshot

Up until the end of July, Fortescue shareholders were enjoying strong gains, hitting an all-time high of $26.58 apiece. That all came crashing down in the following months, with its shares touching a low of $13.90 in early October.

Since then, its shares have rebounded to around the half-way levels achieved in the first half of 2021.

On valuation metrics, Fortescue commands a market capitalisation of roughly $58.99 billion and has approximately 3.08 billion shares on issue.

The post This week, Fortescue (ASX:FMG) produced its own hydrogen for the first time. What does this mean? appeared first on The Motley Fool Australia.

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• What are experts saying to expect for ASX hydrogen shares in 2022?
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• Own Fortescue Metals (ASX:FMG) shares? Here’s what to watch in 2022
• These 5 ASX shares grew revenue by more than 70% in the last year
• Fed up with term deposits? How to get 10% income from ASX shares

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

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Are you interested in adding some more ASX shares to your portfolio?

Three ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. It could be worth considering due to its leading position in a market exposed to the Internet of Things and artificial intelligence booms. The proliferation of electronic devices these markets are causing is expected to lead to increasing demand for its software over the next decade.

Jefferies is positive on Altium and currently has a buy rating and $48.83 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. While the pandemic hit Aristocrat hard, it has bounced back strongly and appears to be winning market share from its rivals. Another positive is that its digital business, now called Pixel United, continues to grow strongly and generate significant recurring revenues. In addition, the company is in the process of making a major acquisition that looks set to give its growth an extra boost in the coming years.

Morgans is a fan of the company. It has an add rating and $52.00 price target on its shares.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

A final option to consider is actually an ETF that gives investors access to a group of highly promising growth shares. The BetaShares Asia Technology Tigers ETF gives investors exposure to ~50 outstanding tech companies that are leading Asia’s technological revolution. Among the companies included in the fund are the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

While regulatory concerns have been weighing on their shares this year, this could have created a buying opportunity for long term focused investors.

The post Analysts name 3 ASX growth shares to buy right now appeared first on The Motley Fool Australia.

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• 2 ASX growth shares analysts rate as buys

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 Altium. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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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Let’s face it, the S&P/ASX 200 Index (ASX: XJO) has had a pretty good run the past 20 months.

With just a few days remaining in 2021, it’s up more than 10.6% for the year. Since the darkest days of the coronavirus panic in March 2020, the ASX 200 has surged more than 50%.

So maybe it’s not the biggest surprise that experts are warning 2022 is not going to be as fruitful as the preceding couple of years.

2022 to be ‘shaped by volatility’

One of those professionals is deVere Group chief Nigel Green, who warns portfolios will take a “hammer blow” in the new year unless proper preparation is undertaken.

“Headwinds… are likely to outnumber the tailwinds in 2022 as the world continues to readjust to the post-pandemic era.”

Tribeca portfolio manager Jun Bei Liu told The Motley Fool that she expects next year to end with positive returns but will not match the dizzying heights of 2020 and 2021.

“Risky bets are unlikely to pay off.”

She added that “volatility is going to dominate headlines” in the new year.

Green agreed, saying the next 12 months will be “shaped by volatility” and 3 major risks need to be mitigated by all investors.

“First is inflation. It’s a risk that is a major concern for most investors around the world. Why? Because it kills returns by eroding the buying power.”

The United Kingdom and New Zealand have already lifted cash rates this year, and the United States has earmarked an acceleration of its wind-down of stimulatory policies.

What will China do?

The second big risk is China.

“The country’s economic growth is uncertain. Much of the recent slowdown has been fuelled by the wider impact of the collapse of huge property developers such as Evergrande,” said Green.

“There are now serious worries that this could initiate a worrying credit crunch that would be disastrous for the world’s second-largest economy, which would have global repercussions.”

Liu reckons China will quickly bring in stimulus to maintain its growth rate, but other worries remain.

“Its border is likely to remain closed as it maintains a zero-COVID policy leading up to the People’s Congress later in 2022.”

Green is also anxious about the Chinese Communist Party’s “state-sponsored attack on private capital”.

“The regulatory attack on tutoring, and other sectors such as gaming and ride-sharing, appears to highlight the Chinese government’s new thinking and its increasing push for control of private enterprise,” he said.

“Investors will be required to take a leap of faith regarding China’s political strategies.”

The pandemic hasn’t finished yet

The emergence of Delta and Omicron this year has taught markets that one can’t predict what will happen with the coronavirus.

Liu, nevertheless, thinks economic recovery will continue in Australia.

“Domestic travel should return to normal by mid-year and international travel should recover meaningfully by later 2022.”

A looming federal election will also have some stimulatory impact on select industries, according to Liu.

“We are likely to see more stimulus to consumers though not meaningful in comparison to the handout over the past few years.”

Green is less certain about the economic recovery.

“Will it impact economies due to the introduction of new restrictions? Which sectors will be hit the hardest? How will it impact the workforce? How will already shaky supply chains be managed?” he said.

“These are questions that can directly impact investor returns but to which we still have no answers.”

‘Portfolios must reflect the future, not the past’

To mitigate these risks in 2022, Green suggested investors hold on for the long term and review the composition of their portfolios.

“It’s essential that investors stay invested. As we know, history has shown us that markets tend to go up over the long term,” he said.

“As the world moves ahead to a post-pandemic era, it’s crucial that investors ensure their portfolios are suitably diversified across asset classes, sectors, currencies, and regions.”

Liu also encouraged investors to be hands-on with their holdings over the coming year.

“2022 will see active investors perform well as they can cut through the noise and find hidden gems overlooked by the market.”

Green reminded investors to always be mindful of one thing when adjusting their holdings.

“Investor portfolios must reflect the future, not the past.”

The post 2022 will be a shocker, so this is what to do: experts 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 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 Webjet Limited (ASX: WEB) share price has gone down 5% in December. In the last month it has actually dropped by 8%.

This is despite the business reporting a bumpy but ongoing recovery from the worst of the COVID-19 impacts.

What’s going on with the Webjet share price?

It’s hard to know exactly why some investors are deciding to sell at lower prices than they were before.

It may or may not be a coincidence that the Omicron variant of COVID-19 has risen to prominence around the world over the last month after South Africa reported the new variant to the World Health Organisation on 24 November 2021. As mentioned, Webjet shares have declined 8% since that time.

Some countries have been re-introducing restrictions in winter in the northern hemisphere, particularly in Europe.

Some countries like Germany, Portugal and Finland have scheduled restrictions to come in around Christmas, forcing venues like bars and nightclubs to shut. Spain is making it mandatory to wear a face mask outside again.

However, that’s not the only thing that investors may be thinking about over the last month. Webjet also reported its FY22 half-year result to investors a month ago.

Webjet HY22 result

At the time, Webjet said that its business was turning around as global travel markets started to reopen.

WebBeds had been profitable since July, with costs down 31% compared to pre-COVID and on track to be 20% more cost efficient at scale. November 2021 total transaction value (TTV) was 63% of pre-COVID volumes despite many ‘key markets’ not yet being open.

The Webjet online travel agency (OTA) business returned to profitability in October 2021. It was profitable in the first quarter, but the lockdowns and border closures impacted that.

It was seeing a rapid return to high booking volumes as markets reopened in the third quarter, which was tracking ahead of the second quarter.

The board was feeling reassured enough by market conditions to reveal that the deferred FY20 interim dividend of $0.09 per share was going to be paid on 23 December 2021.

However, despite the progress, the six months to September 2021 showed a reported net loss after tax of $61.8 million and an underlying loss of $43.8 million. That compares to an underlying loss of $58.5 million in the six months to December 2020. The bottom line can have a significant impact on investor thoughts on the Webjet share price.

Management said that the opportunities are “significant” with pent up demand evident globally.

The company thought the ongoing vaccinations, boosters and anti-viral treatments would stabilise the impact of COVID within the next six to twelve months. Webjet also said it would be back at pre-COVID volumes by the second half of FY23, which was October 2022 to March 2023.

But those comments were before the huge rise of Omicron cases, so time will tell how much impact that has on those expectations.

Expert thoughts on the Webjet share price

The broker UBS thinks that Webjet is a buy, with a price target of $6.85, suggesting potential upside of more than 30% over the next year. It thinks that the ASX travel share can do well over the coming years as demand returns and operating leverage comes into play.

It thinks that Webjet can display a good recovery beyond FY23 if it is able to hold onto (or even grow) its market share.

On UBS’ numbers, the Webjet share price is valued at 17x FY23’s estimated earnings.

The post Christmas is a bumper time for travel, so why is the Webjet (ASX:WEB) share price still struggling in December? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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As was widely expected, the Reserve Bank kept the cash rate on hold at a record low of 0.1% in 2021.

Although the outlook for interest rates is now improving, most economists believe 2022 is still too soon for a rate hike. For example, the team at Westpac Banking Corp (ASX: WBC) expect the cash rate to stay on hold at 0.1% for the entirety of 2022 before rising to 0.25% in March 2023.

And even then, it could be years before rates rise to a level that makes term deposits a liveable source of income.

In light of this, dividend shares look set to remain one of the best ways to generate a passive income in 2022 and for a number of years beyond.

With that in mind, listed below are three ASX 200 dividend shares analysts are tipping as both buys and generous dividend payers.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

This banking giant could be an ASX 200 dividend share to buy according to the team at Bell Potter. Its analysts currently have a buy rating and $30.00 price target. Thanks to its strong position in business banking, Bell Potter is expecting ANZ to be able to reward shareholders with fully franked dividends per share of 144 cents in FY 2022, 151 cents in FY 2023, and 154 cents in FY 2024. Based on the current ANZ share price of $27.40, this will mean yields of 4.8%, 5.5%, and 5.6%, respectively.

South32 Ltd (ASX: S32)

This mining giant could be a top option for income investors according to the team at Goldman Sachs. This is due to its diverse operations and exposure to in-demand commodities such as aluminium. Goldman expects South32’s free cash flow to support fully franked dividend yields greater than 10% per annum for the next five years. Its analysts currently have a conviction buy rating and $4.40 price target on South32’s shares.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs is also very positive on this telco giant thanks to its T22 and T25 strategies. It expects these to underpin fully franked dividends of 16 cents per share in FY 2022 and FY 2023, and then 18 cents per share in FY 2024 and 19 cents per share in FY 2025. Based on the current Telstra share price of $4.12, this will mean fully franked yields 3.9% and then 4.35% and 4.6%, respectively. Goldman has a buy rating and $4.40 price target on the company’s shares.

The post 3 ASX 200 dividend shares to buy for 2022 and beyond appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price may have smashed the market in 2021 with its 19% gain, but one leading broker believes there’s more to come.

Who is bullish on the ANZ share price?

According to a recent note out of Morgans, its analysts have retained their add rating and $31.00 price target on the banking giant’s shares.

Based on the current ANZ share price of $27.40, this implies potential upside of 13% for investors over the next 12 months.

But it gets better! Morgans is forecasting a fully franked $1.47 per share dividend in FY 2022. If we add this into the equation, the total return on offer here is approximately 18.5%.

What did the broker say?

One of the reasons that Morgans is positive on the ANZ share price is the bank’s exposure to business and institutional banking. It believes structural tailwinds are building for the latter.

Morgans commented: “With increasing expectations for global rate rises and steepening yield curves, the outlook for the Markets business – which benefits from volatility in interest rate and foreign exchange markets – is improving.”

The broker also notes that the Institutional business is well-placed to benefit from the decarbonisation trend.

Its analysts explained: “The two other key businesses within the Institutional division are Corporate Finance and Trade. ANZ sees structural tailwinds for these two businesses over the medium term as a result of the transition to a low carbon global economy. We therefore believe it is conceivable that revenue growth of the Institutional division will outperform ANZ’s other divisions over the next 2-3 years.”

All in all, this could make the bank’s shares worth considering right now even though they have performed so strongly in 2021.

The post Broker tips ANZ (ASX:ANZ) share price to keep rising appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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There are plenty of businesses that pay income to shareholders. But only some ASX dividend shares may be worth considering for their cash payouts.

Investments that have a commitment to paying investors a high level of cash out of their profit may have a greater focus on providing a good yield.

These income businesses could be excellent ASX dividend shares in 2022 and beyond:

BHP Group Ltd (ASX: BHP)

The resources giant is currently rated as a buy by the brokers at Macquarie Group Ltd (ASX: MQG) with an expectation of a grossed-up dividend yield of 13.2% in FY22 and 9.8% in FY23.

Macquarie is seeing a recovery of Chinese steel demand over December, whilst inventory has been falling.

BHP has benefited from good prices for some of its other commodities like copper and the iron ore price is firming.

The ASX dividend share is working on the decarbonisation and modernisation of its portfolio. Soon enough, it will be divesting its petroleum division to Woodside Petroleum Limited (ASX: WPL) whilst expanding its exposure to a greener commodity – potash.

The potash Jansen project has a very long projected life and is expected to earn a high earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

Whilst the business performance is quite dependent on commodity prices year to year, its diversified portfolio can lead to less volatility, more growth avenues and opportunities.

Centuria Industrial REIT (ASX: CIP)

This real estate investment trust (REIT) owns a large portfolio of industrial that are predominately in city locations across Australia.

It is also rated as a buy by Macquarie, with a price target of $4.16. The broker is expecting Centuria Industrial REIT to pay a distribution yield of 4.3% in FY22 and 4.6% in FY23.

The ASX dividend share’s property portfolio is now worth $3.8 billion, after valuations were done on most of its properties. On a like for like basis, the portfolio value increased $281 million, or 9.6%, from the previous balance sheet values.

Centuria Industrial REIT’s pro forma net tangible assets (NTA) increased to $4.22 per unit at 31 December 2021, with the weighted average capitalisation rate ‘firming’ to 4.20%.

The Centuria Industrial REIT fund manager Jesse Curtis said:

The Australian industrial real estate market has continued to strengthen through capital value growth and yield compression. Sector tailwinds have attracted a significant wave of capital seeking to increase exposure to industrial assets. Investment activity, coupled with record low vacancy and robust tenant demand, is likely to drive strong rental growth resulting in continued appreciation of industrial asset values.

The post Got money to invest for income? Here are 2 ASX dividend shares that could be buys appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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There is an ASX share that’s recently transformed itself that’s not getting the attention it deserves.

That’s according to Fairmont Equities managing director Michael Gable, who reckons the time is ripe to buy into Metcash Limited (ASX: MTS).

“Metcash is transitioning from a food wholesaler facing structural headwinds to a hardware retailer and wholesaler with a market-leading trade offer,” he said on the Fairmont blog. 

“Based on the company’s results for the 6 months to 31 October 2021 (1H22), the transition is happening faster than expected.”

Hardware now contributes more than food

For a company associated with the ubiquitous IGA supermarket chain, it is incredible that the hardware business now brings in more money than groceries.

“The hardware division reported an outstanding result, with strong contribution from both the Total Tools acquisition and the pre-existing Independent Hardware Group (IHG) business.”

According to Gable, the trade segment is “the key driver of strength” within Metcash’s hardware division.

The hardware business saw revenue growth of about 18%.

“Profitability also improved meaningfully, with hardware posting EBIT [earnings before interest and taxes] margins of 6.7%,” said Gable.

“This was 160 basis points higher than 1H21 and the highest in over 7 years — and driven by Total Tools.”

Store roll-out and “retailer conversion strategy” at Total Tools is a “key growth driver” for Metcash, according to Gable.

“There were 94 stores in the network and Metcash is targeting [approximately] 130 stores by 2025 and plans to open [approximately] 10 stores per annum,” he said.

“This expansion is likely to lead to a material step-up in network sales and divisional EBIT of $85m over the next 5 years.”

Metcash’s supermarket business isn’t doing badly either

Despite being eclipsed by the hardware arm, Gable insisted Metcash’s supermarket business is in a “significantly better competitive position” than 2 or 3 years back.

“The company has been able to maintain a premium in shelf prices, has a successful store refurbishment program (where IGA retailers are re-investing in their stores), and has markedly improved its market share,” he said.

“To date, much of this market share has been retained.”

Metcash, due to its position as a wholesaler, is “a net beneficiary of inflation”.

That is because wholesale contracts are typically written in terms of a percentage of sales basis, rather than a flat dollars-per-item rate.

“Metcash is expected to pass on price inflation that it receives to its retail partners in order to maintain its relative price position in comparison to the market,” said Gable.

“This is where IGA has typically enjoyed a pricing premium given its increased convenience offer in comparison to the major competitors.”

Now’s the time to buy Metcash shares

A 2 December dip saw the Metcash share price bottom out at $3.92.

Back then, Gable forecast that he would buy in when the stock gained upwards momentum past the $4.30 “breakout” mark.

Well, the market has since cottoned onto Metcash’s tailwinds and has already driven the stock price up 10%. The Metcash share price closed Thursday at $4.34.

“Metcash should continue to rally from here,” said Gable.

“The slight dip and retest of the breakout from the past day or so is another buying opportunity before the share price gets too far away from the breakout.”

Longer term, Metcash shares have gained around 26% this year and 90% over the past 5 years. The stock also yields a handy 4.61% in dividends.

The post Now’s a small window to buy this booming ASX share: expert appeared first on The Motley Fool Australia.

More reading

• Fed up with term deposits? How to get 10% income from ASX shares
• How will ASX retail shares go in 2022?
• These were the best performing ASX 200 shares last week
• 2 leading ASX dividend shares for compelling income
• Why is the Metcash (ASX:MTS) share price smashing Coles this year?

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 Rural Funds Group (ASX: RFF) share price has risen by 20% over 2021. It has been a market-beating performance by the real estate investment trust (REIT) considering the S&P/ASX 200 Index (ASX: XJO) has only risen by 10.5% over the same time period.

Rural Funds is an agricultural farmland REIT which owns a diverse portfolio across almonds, macadamias, cattle, vineyards and ‘cropping’ (sugar and cotton).

What has been influencing the Rural Funds share price in 2021?

Rural Funds has seen a steadily climb of its share price over the last ten months. Indeed, it has gone up more than 30% since 24 February 2021.

A few months ago the business released its FY21 result which showed growth of the distribution for investors and an increase of the underlying value.

FY21 saw the pro forma net asset value (NAV) rise by 13% to $2.20. It generated 11.9 cents of adjusted funds from operations (AFFO) per unit – the rental profit – and paid a distribution per unit of 11.28 cents, which was an increase of 4%.

Management have a goal of increasing the Rural Funds distribution by 4% per annum. Rural Funds has guided another 4% increase in FY22 to 11.73 cents per unit.

The Rural Funds share price has continued to rise as it announced more acquisitions.

Recent acquisitions

On 8 November 2021, it announced that it was buying properties including a 1,917 hectare cattle and cropping property and a 4,130 hectare cropping property. Included with those acquisitions it bought were 20,733 ML of water entitlements which it plans to use to improve the productivity of the properties, including expanding irrigated cropping areas and pasture improvement.

It also announced the acquisition of two macadamias orchards totalling 475 hectares of land, located in Queensland. These mature orchards immediately added to income generation but still have the potential for improved yields and expansion of the planted area.

The above acquisitions led to Rural Funds changing its FY22 AFFO forecast to 11.8 cents per unit.

On 29 November 2021, Rural Funds announced that it had exchanged contracts for a 27,879 hectare cattle and cropping property aggregation. There is potential here for productivity improvements, according to Rural Funds. This acquisition came with 12,448 ML of water entitlements, which Rural Funds plans to use to improve the productivity, including expanding irrigated cropping areas and increasing the cattle carrying capacity through pasture improvement and additional water points.

Earlier this week, Rural Funds proposed the idea of increasing the guarantee to J&F. The guarantee currently generates a return of between 9.73% to 11.25%. If the guarantee is increased from $100 million to $132 million, the FY22 AFFO guidance will be increased to 11.9 cents per unit.

What to make of the Rural Funds share price?

The broker UBS has noted the recent acquisitions and thinks that it will add to earnings by around 8% by FY24.

However, the UBS rating on Rural Funds is only ‘neutral’ at the moment after the strong price run. The price target is $2.78, so the broker is expecting the Rural Funds share price to drop by just over 10% over the next year.

The post The Rural Funds (ASX:RFF) share price has gone up 20% in 2021. Is it still a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns RURALFUNDS STAPLED. 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 RURALFUNDS STAPLED. 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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