Tag: Motley Fool

The Adore Beauty Group Ltd (ASX: ABY) share price has multiple factors that could make it a useful ASX share to consider.

Adore Beauty was Australia’s first beauty-focused e-commerce website. It’s now the market leader with more than 10,000 products on sale from 260 brands.

Operates in a large and rapidly growing market

The ASX share points out that it has a large and growing addressable market to look at in Australia. The beauty and personal care market in this country is worth $11.2 billion.

Compared to other countries, Australia is in the early adoption part of the process, with online sales currently representing 11.4% of the total sales at $1.3 billion.

While the beauty and personal care category is growing at a compound annual growth rate (CAGR) of 3.8%, online growth is growing at a much faster pace. The forecast CAGR for online growth is 26% between now and 2024. Within the online segment of the market, Adore has a 13% market share and boasts of a long history of growing faster than the market.

Adore Beauty has strong tailwinds behind it, with the accelerated shift to digital and convenience channels, as well as the positive of more consumers like ‘millennials’ and younger cohorts now entering the market.

Globally, accelerated growth is occurring in segments where Adore Beauty is “particularly strong”, such as skincare, which is the company’s largest category.

Heavily pursuing expansion

The e-commerce ASX share is doing everything it can to grow the business, which could also enable the best performance of the Adore Beauty share price.

It wants to have the best offering for customers. Adore Beauty offers a brand portfolio that is not normally found from a single retailer, including prestige department store brands, professional salon and clinic brands, niche brands and masstige.

The company aims to provide a best in class online customer experience that results in loyal, returning customers. In the first quarter of FY22, the company boasted of strong customer retention with returning customer growth of 63% year on year.

Adore Beauty has also been working on a data-driven personalisation and content engagement strategy that educates and entertains customers, making it the first place that customers want to look.

The online beauty business has been expanding its media network of podcasts, videos and blog posts. This year it launched three new podcasts and has three of the top 10 podcasts in the Australian fashion and beauty category.

Adore Beauty expects to maintain an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of between 2% to 4% in the short to medium-term whilst re-investing for growth.

Over the longer-term, it’s expecting scale benefits to increase operating leverage and deliver more EBITDA margin growth.

Rapid revenue growth

The above initiatives and strategies are helping the ASX share grow its sales really quickly.

In FY21 the revenue increased by 48% to $179.3 million, with a 39% increase in active customers to 818,000.

This growth has continued into the first quarter of FY22, with revenue rising by 25% to $63.8 million.

This revenue growth can help the bottom line and Adore Beauty share price over time.

The post 3 compelling reasons why the Adore Beauty (ASX:ABY) share price could be a top buy appeared first on The Motley Fool Australia.

More reading

• 3 hot ASX tech shares to buy in 2022
• Are these 2 ASX tech shares good buys in December?
• 2 small cap ASX shares to get excited about
• 10 ASX shares to buy in 2022
• 2 ASX shares with strong long term growth potential

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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/31VPeEM

Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why. Never has it been so easy for investors to gain access to groups of shares from all corners of the world.

But given how many ETFs there are to choose from, it can be hard to decide which ones to add to a portfolio.

To narrow things down, I have picked out two highly rated and popular ETFs to get better acquainted with in December. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

The first ETF for investors to look at this month is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses.

The operator of the fund, BlackRock, highlights that the ETF gives investors exposure to the top 500 U.S. stocks through a single investment. It notes that Australian investors can use this to diversify internationally and seek long-term growth opportunities for a portfolio.

Among its largest holdings are Amazon, Apple, Facebook/Meta, JP Morgan, Johnson & Johnson, Microsoft, Nvidia, and Tesla.

The iShares S&P 500 ETF has provided in investors with a return of 18.5% per annum since 2016. This means a $10,000 investment five years ago would now be worth almost $23,500.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to over 1,500 of the world’s largest listed companies from major developed countries.

The manager of the fund, Vanguard, notes that the ETF offers low-cost access to a broadly diversified range of securities that allow investors to benefit from the long-term growth potential of the global economy. Vanguard appears to believe this makes it suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giant such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The Vanguard MSCI Index International Shares ETF has generated a total return of almost 15.8% per annum over the last five years. This would have turned a $10,000 investment into almost $21,000.

The post 2 highly rated international ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• What kind of dividend does the Vanguard International Shares ETF (ASX:VGS) pay?
• Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF?
• VGS vs VAS: Which ETF comes out on top?
• 2 leading ASX ETFs for excellent global diversification
• 3 ETFs for ASX investors to buy now

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 ETF. 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/31GFXkf

The Telstra Corporation Ltd (ASX: TLS) share price could be an option for income for investors to consider.

Telstra has been one of the biggest payer of dividends over the last decade with its generous dividend policy for shareholders.

The telco recently updated its dividend policy for investors, which indicated the board’s thoughts and intentions about its payouts.

Telstra’s latest dividend policy

Under Telstra’s new T25 strategy, it came out with an updated capital management framework. It included principles to maximise fully franked dividends and seek to grow them over time, to invest for growth and to return excess cash to shareholders.

Whilst delivering on its T25 goals, Telstra also said that it was confident in maintaining a minimum payment of a $0.16 fully franked dividend per share, as long as there are no unexpected material events and subject to the requirements of its capital management framework.

Telstra said that this principle of maximising dividends for shareholders recognised continued feedback from shareholders of the importance of fully franked dividends. It also reflects the company’s intention to return as much cashflow as can be supported by earnings, whilst balancing the objectives and principles of its capital management.

At the current Telstra share price, the $0.16 per share annual dividend translates to a grossed-up dividend yield of 5.6%.

This policy replaced the previous one of paying fully franked dividends of 70% to 90% of underlying earnings. That’s because the company is expecting cashflow to remain ahead of accounting earnings and it’s focused on growing.

What are the T25 goals?

T22 has been the focus for the last few years, which included cost cutting, restructuring and asset sales.

T25 involves extending 5G network coverage to 95% of the population, expanding regional coverage with both 4G and 5%, growing Telstra Plus members to 6 million by FY25, finding $500 million of further net fixed costs by FY25, profit growth and achieving more access to towers.

The profit growth target to FY25 is compound annual growth of mid-single digit underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teens compound annual growth of underlying earnings per share (EPS).

Is the Telstra share price good value?

Credit Suisse thinks so, with a price target of $4.40 on the business with reference to how Telstra wants to keep its mobile competitive advantage in Australia.

However, UBS is just ‘neutral’ on the business with a price target of $4, though the broker does think the telco is turning things around.

The post Is the Telstra (ASX:TLS) share price a buy for dividends right now? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Thursday
• Why the Telstra (ASX:TLS) share price is on watch on Wednesday
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• Why has the Telstra (ASX:TLS) share price had such a lacklustre start to December?
• These 3 ASX 200 shares are topping the volume charts on Monday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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/3rTZV5s

If you’re looking for some new options for your portfolio, then you may want to look at the shares listed below which Morgans rates highly.

Here’s why it has the equivalent of buy ratings on these ASX 200 shares:

Treasury Wine Estates Ltd (ASX: TWE)

The last two years have been difficult for this wine giant due to COVID-19 and China shutting out its premium Australian wines. The good news is that Morgans believes that the company’s outlook is improving greatly and its shares are trading at an attractive level.

Morgans 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.”

The broker currently has an add rating and $14.06 price target on the company’s shares. This compares to the latest Treasury Wine share price of $12.08.

Woodside Petroleum Limited (ASX: WPL)

If you’re interested in gaining exposure to the energy sector, then Morgans thinks Woodside could be a quality option. This is due largely to its transformative merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

Morgans explained: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”

The broker currently has an add rating and $29.95 price target on its shares. This compares to the current Woodside share price of $22.03.

The post Morgans names 2 ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Woodside (ASX:WPL) share price dips as company eyes east coast market
• How did the Treasury Wine (ASX:TWE) share price perform in November?
• 5 things to watch on the ASX 200 on Thursday
• Woodside (ASX:WPL) share price rises on $5 billion new energy plan

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/3ICJSyV

Crypto investors have been on another wild ride this week.

After hitting all time highs in November, both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have tumbled.

In the past 7 days, Bitcoin, the world’s biggest crypto by market cap, has lost 14% (as at Friday afternoon). Ether, the number 2 crypto, is down a less painful 8% over the full week.

There are numerous forces impacting the price of these leading tokens and other altcoins.

Longer-term, Josh Gilbert, analyst at multi-asset investment platform eToro told The Motley Fool, the metaverse will be a big one amongst those.

What is the metaverse and how does it impact crypto?

The metaverse, in a nutshell, refers to nascent online 3-D virtual environments.

“The noise around the metaverse was accelerated by Facebook changing its name to Meta, but this has since helped to grow the interest around the metaverse,” Gilbert said.

As for the metaverse’s impact on cryptos, and vice versa, Gilbert told us:

Cryptoassets are an integral part of how virtual reality and the metaverse will be constructed. Users will be able to buy, sell and trade virtual assets using cryptoassets through the metaverse. We are already seeing high profile sales of virtual assets through MANA, which is the cryptocurrency of Decentraland.

Which may have you asking, outside of spiritual energy, what exactly is mana?

Gilbert explains:

The MANA coin is used to purchase digital real estate within the Decentraland platform, known as LAND. LAND is essentially a non-fungible digital asset maintained in an Ethereum smart contract. MANA can also be traded with other users for goods and services hosted within the platform.

If you develop your land well enough, companies may even advertise on it. And if your land becomes popular with digital foot traffic, it can even become the ‘virtual version’ of a New York Times Square.

Who wouldn’t want to own land in Times Square? Even virtually.

But can’t the metaverse exist without crypto?

“There is, of course, the potential for a metaverse without crypto,” Gilbert said. “We already have virtual reality games without cryptoassets. But for the full experience, including buying and selling digital assets, then a digital asset such as crypto will be required.”

Why is blockchain a fundamental part of the metaverse?

“Everything on Decentraland is backed by the Ethereum blockchain,” Gilbert told us. “Without blockchain and, therefore crypto, the metaverse doesn’t exist how we imagine.”

Gilbert continued:

So far, blockchains such as Ethereum have proven to be unhackable. This is critical if users are expected to immerse themselves in a wholly digital world, and for the metaverse to reach mainstream adoption. On top of this, we will also need to see instant transactions with the ability to translate 24/7. This is something crypto and the blockchain can offer.

Decentraland itself is a virtual reality blockchain platform that aims to enable users to purchase, build and monetise virtual reality applications, to incentivise a global network of users to develop and operate a shared virtual world.

So, can investors in Bitcoin, MANA or any of the range of altcoins expect a big lift from the rise of the metaverse?

“We have already begun to adopt crypto payments globally, with names such as Visa and Mastercard allowing merchants to accept crypto payments,” Gilbert said.

He added:

Rather than the metaverse reflecting the future of crypto, the metaverse needs crypto to deliver on what we are being told the metaverse will be. So, it’s more the metaverse relying on crypto rather than the other way around. Crypto has a vital role to play in any metaverse.

I feel that this helps provide more use cases for crypto, as critics often argue about what is the ‘real world’ case for some cryptoassets. Here we see just how easily they can enter huge markets, like multi-billion-dollar industries such as music, sports and art, to name a few.

How has the MANA crypto been performing?

Many readers won’t be familiar with MANA. But crypto investors who bought the token a year ago are sitting on gains of some 3,000%.

“2022 will act as a sounding board for further growth with metaverse cryptoassets and of course, the metaverse,” Gilbert told us. “But it will likely be a few more years until we really see the full potential of the metaverse.”

The post Here’s what crypto investors need to know about the metaverse appeared first on The Motley Fool Australia.

More reading

• Bitcoin (CRYPTO:BTC) sinks again. Who’s going to catch that falling knife?
• Is the RBA about to join the digital currency revolution?
• Why the Bitcoin price declined over the last 24 hours
• Why Ethereum, Dogecoin, and Polkadot are heading lower today
• Survey reveals surprising crypto swing as Aussie housing bubble fears grow

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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/3dFYLm4

There are some ASX dividend shares that leading brokers think are buys.

These companies are ones that brokers are expecting to pay a large dividend yield over the next financial year and look like they are good value.

An ASX dividend share isn’t necessarily worth owning because it pays a dividend, or even a big yield.

Brokers believe there is plenty of share price potential for these two ASX dividend shares which are also expected to pay large income yields:

New Hope Corporation Limited (ASX: NHC)

New Hope is one of the largest coal miners in Australia. It also has other operations relating to exploration, port operation, oil and agriculture.

It’s currently rated as a buy by at least four brokers, including Credit Suisse, which has a price target of $2.70 on the business.

The latest quarter of earnings and its balance sheet gave the broker food for thought about the business.

The three months to October 2021 showed a 3.1% drop of total coal sold whilst total saleable coal production experienced a 17.4% drop. The New Acland site continues to transition into care and maintenance. The final coal sales are expected in November and December.

However, the ASX dividend share noted that thermal coal prices continue to be high and demand remains strong. This helped the business achieve underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter of A$242.5 million.

The debt facility that was reported at 31 July 2021 of A$310 million has been fully paid from operational cash flows.

Credit Suisse has estimated that New Hope is going to pay a grossed-up dividend yield of 21.9% in FY22 and 16.4% in FY23.

Pendal Group Ltd (ASX: PDL)

Pendal is a global investment management business which offers a range of different investment strategies.

It’s currently rated as a buy by at least five brokers, including Morgan Stanley which has a price target on the business of $8.80.

The broker was pleased to see the progress of the ESG and impact investing and believes that this earnings avenue is underappreciated by the market.

Its assets in sustainable and impact strategies grew by 68% to $5.2 billion over FY21. Pendal says that this area presents a significant global opportunity for the ASX dividend share. There is a funding gap to meet the UN sustainable development goals, with there also being growing demand for ESG product offerings.

The Regnan Global Equity Impact Solutions strategy was delivered to clients in all regions, attracting flows of around $400 million in its first year. The Regnan Water and Waste Fund was launched in September 2021.

Overall, underlying earnings per share (EPS) increased by 17% to 48.2 cents, whilst total dividends per share went up 11% to 41 cents per share. That means the trailing grossed-up dividend yield is 10.2%.

Based on the estimate from Morgan Stanley, Pendal is expected to pay a grossed-up dividend yield of 11.6% in FY22.

The post 2 ASX dividend shares rated as strong buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here’s why the New Hope (ASX:NHC) share price is sinking today
• 2 ASX shares rated as strong buys by analysts
• ASX 200 coal shares unfazed by Johnson’s ‘death knell’ amid record prices
• Here’s why ASX 200 coal shares are in the spotlight 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 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/31U9o1F

Fortescue Metals Group Limited (ASX: FMG) Future Industries, the green division of the resources giant, has signed a green hydrogen deal in Indonesia.

Fortescue Future Industries (FFI) is a key enabler of Fortescue’s decarbonisation strategy. It also has a strategy to become a leader in the renewable energy and green products industry, with a vision of making green hydrogen the most globally traded seaborne commodity in the world.

Fortescue Future Industries signs Indonesian deal

FFI and the North Kalimantan Provincial Government of the Republic of Indonesia have signed a ‘co-operation agreement’ to explore and study the potential for renewable energy and green hydrogen projects.

This follows on from a memorandum of understanding signed five months ago.

Fortescue Future Industries is proposing to produce green hydrogen and green ammonia in North Kalimantan for domestic use and export markets. These will be powered by renewable energy which will be built in the North Kalimantan Province in Indonesia.

Not only does FFI plan for the projects to provide significant economic benefits to the region, but it will also have the “highest standards of social and environmental sustainability.” It will aim to use local labour expertise and use local goods and services.

What facilities does FFI want to build?

The idea is that Fortescue Future Industries could potentially build an industrial processing facility that is able to produce a minimum of 600,000 tonnes of green hydrogen per annum.

This project is still needs to go through further studies as well as be approved by Fortescue board.

The green industrial business noted that its operations are in-line with the vision and mission of President Joko Widodo and Governor Zainal in providing jobs for local people and generating opportunities for local businesses.

FFI also said that it supports the President’s measures in opening pathways for green investment and initiatives to decarbonise Indonesia’s economy through green hydrogen fuel which is produced with zero emissions.

FFI CEO commentary

The boss of Fortescue Future Industries, Julie Shuttleworth, said:

FFI is supportive of Indonesia’s efforts to decarbonise its economy. We look forward to working together with the Provincial Government and local communities to help place North Kalimantan at the forefront of developing renewable resources that will power green hydrogen and green ammonia production.

We are proud that our Cooperation Agreement places human rights, environment and then economics, in that order, in every discussion we have with every government in the world – including Indonesia.

New CEO

Fortescue announced this week that after a 10-year process of investigating various solutions to global warming, it is officially transitioning into a vertically integrated green energy and resources group.

As part of the announcement, it was announced that Fortescue CEO Elizabeth Gaines was transitioning to a new role as Fortescue’s global green hydrogen brand ambassador as well as remaining as a non-executive director of Fortescue.

The company is now looking for a CEO and other leaders with “exceptional skills and global experience across heavy industry, manufacturing and renewable energy.”

The post Fortescue (ASX:FMG) Future Industries signs Indonesian hydrogen deal appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Fortescue (ASX:FMG) share price falls following surprise CEO exit
• Why did the AGL share price outperform the ASX 200 today?
• Fortescue (ASX:FMG) share price rises amid green train progress
• Here’s why the Fortescue (ASX:FMG) share price is having a green day

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.

from The Motley Fool Australia https://ift.tt/3yheKQT

The S&P/ASX 200 Index (ASX: XJO) returned to form last week after Omicron concerns eased. The benchmark index charged 1.5% higher to end the period at 7,353.5 points.

While a good number of shares rose with the market, some climbed more than most. Here’s why these were the best performing ASX 200 shares last week:

Metcash Limited (ASX: MTS)

The Metcash share price was the best performer on the ASX 200 last week with a gain of 13.9%. Investors were buying this wholesale distributor’s shares following the release of a strong half year result. For the six months ended 31 October, Metcash reported a 1.3% increase in revenue to $7.2 billion and underlying profit after tax growth of 13.1% to $146.6 million. Another positive was that Metcash revealed strong sales growth across its businesses so far in the second half.

Mesoblast limited (ASX: MSB)

The Mesoblast share price wasn’t far behind with a gain of 12.5% last week. This appears to have been driven by an update on its DREAM-HF Phase 3 trial of Rexlemestrocel-L in patients with chronic heart failure and low ejection fraction (HFrEF). According to the release, the trial found the greatest benefit from Rexlemestrocel-L is in HFrEF patients with diabetes, ischemia, or both.

St Barbara Ltd (ASX: SBM)

The St Barbara share price was a strong performer and charged 9.8% higher over the five days. Investors were buying gold miners last week after the price of the precious metal rebounded. This led to the S&P/ASX All Ords Gold index rising an impressive 3.4% over the period. For the same reason, the Gold Road Resources Ltd (ASX: GOR) share price rose 9.7% last week.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was on form and stormed 9.4% higher last week. This gain appears to have been driven by a rebound in the tech sector and particularly in the US gambling industry. For example, the Draftkings share price was up 11% on the Nasdaq from Friday’s close through to Thursday’s close.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Friday
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• 2 highly rated ASX 200 shares to 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. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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/3EPVUCP

If you’re building an income portfolio, then you might want to look at the ASX shares listed below.

Both ASX dividend shares have big yields and have been named as buys by analysts. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to consider buying is this mining giant. BHP has a collection of world class operations across a number of geographies and commodities. Pleasingly, while iron ore prices have fallen heavily from recent highs, other commodities have been picking up the slack.

As a result, BHP has been tipped to generate significant free cash flow again in FY 2022. And thanks to the strength of its balance sheet, this is expected to lead to generous dividend payments in the near future.

The team at Morgans, for example, is forecasting fully franked dividends of $3.40 per share in FY 2022 and $2.44 per share in FY 2023. Based on the current BHP share price of $39.96, this will mean yields of 8.5% and 6.1%, respectively.

Morgans has an add rating and $45.70 price target on the company’s shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be in the buy zone is Super Retail.

It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands. These popular brands have been generating strong sales growth over the last few years and appear well-placed to continue this trend over the 2020s.

This is thanks to their strong market positions, expansion opportunities, and track record of same store sales growth.

The team at Citi is positive on Super Retail. The broker currently has a buy rating and $16.00 price target on the company’s shares.

As for dividends, Citi is forecasting fully franked dividends per share of 67 cents in FY 2022 and then 64.5 cents in FY 2023. Based on the current Super Retail share price of $12.59, this will mean yields of 5.3% and 5.1%, respectively.

The post Analysts say these high yield ASX dividend shares are buys appeared first on The Motley Fool Australia.

More reading

• Evergrande officially defaults, downgraded by Fitch. What next?
• BHP (ASX:BHP) share price in focus amid unification proposal
• Here’s why ASX 200 mining shares are flying higher
• Morgans names 2 high yield ASX dividend shares to buy now
• RBA maintains interest rate but removes 2024 reference. What could this mean for ASX 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. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail 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/3EPr79e

It was a great five days for the S&P/ASX 200 Index (ASX: XJO) last week. Despite a subdued finish, the benchmark index rose 1.5% over the period to end it at 7,353.5 points.

Unfortunately, not all shares were able to climb with the market. Here’s why these were the worst performing ASX 200 shares last week:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price was the worst performer on the ASX 200 last week with a 10% decline. Investors were selling this struggling fund manager’s shares after it announced the surprise exit of its Chief Executive Officer, Dr Brett Cairns. Magellan provided very little detail around the exit, other than saying that Dr Cairns is leaving for personal reasons. This sparked speculation of a boardroom fallout, which was refuted by Magellan’s Chairman. The fund has promoted its Chief Financial Officer, Ms Kirsten Morton, to the top job on an interim basis.

Virgin Money UK (ASX: VUK)

The Virgin Money share price was some way behind as the next worst performer with a 4% decline. This was despite there being no news out of the UK-based bank. However, Virgin Money UK’s shares have come under pressure since the release of its full year update last month. That update revealed that the bank will incur 275 million pounds in restructuring costs over the next three years. This was approximately double what the market was expecting.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price was out of form and dropped 3.6% over the five days. This could have been driven by weakness in nickel prices caused by new supply coming onto the market. In addition, profit taking may have weighed on the company’s shares following some strong recent gains. For example, the Nickel Mines share price is still up 31% since this time last month despite last week’s decline.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price was a poor performer and lost 3.3% of its value last week. This may have been caused by profit taking. A week earlier the quick service restaurant operator’s shares were among the best performers after investors responded positively to its half year results. Collins Foods reported a 9.5% increase in revenue to a record of $534.2 million and a 31.6% jump in underlying net profit after tax to $28.9 million.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Friday
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• What I’d do with these ASX dogs of 2021: expert
• 2 highly rated ASX 200 shares to buy

Motley Fool contributor James Mickleboro owns Collins Foods 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 Collins Foods 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/30eMMsm