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Fortunately for income investors, the ASX 200 is not short of dividend-paying stocks. This makes the share market a great place to generate passive income.

But which ASX 200 dividend stocks would be good options right now for a passive income boost? Two that have recently been rated as buys are named below:

Centuria Industrial Reit (ASX: CIP)

The first ASX 200 dividend stock that could be a good source of passive income is Centuria Industrial.

It is Australia’s largest domestic pure play industrial REIT with a portfolio of high-quality industrial assets situated in urban infill locations throughout Australia. The company notes that this portfolio is underpinned by a quality and diverse tenant base.

UBS is positive on the company and is expecting Centuria Industrial to pay dividends per share of 16 cents in both FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.19, this represents yields of 5% in both financial years.

The broker also sees double-digit upside for its shares with its buy rating and $3.68 price target.

Rio Tinto Ltd (ASX: RIO)

Over at Goldman Sachs, its analysts think that Rio Tinto is an ASX 200 dividend stock to buy.

It advised that this is due partly to the mining giant’s “compelling relative valuation vs. peers (0.9xNAV vs. BHP 1.05xNAV and FMG 1.5xNAV), [and] strong FCF and Div yield with our bullish view on iron ore, aluminium and copper prices.”

In respect to the latter, the broker is expecting Rio Tinto to be able to pay fully franked dividends per share of US$5.36 (A$8.10) in FY 2023 and then US$4.68 (A$7.07) in FY 2024. Based on the latest Rio Tinto share price of $109.98, this will mean yields of 7.35% and 6.4%, respectively.

Another positive is that as well as a big dividend yield, Goldman sees major upside potential for its shares. The broker currently has a conviction buy rating and $136.20 price target on them.

The post Experts say these 2 ASX 200 dividend stocks are buys for passive income appeared first on The Motley Fool Australia.

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More reading

• What’s going on with Rio Tinto shares and lithium?
• Bought $5,000 worth of Rio Tinto shares last February? Guess how much passive income you’ve already grabbed?
• How does the Fortescue dividend stack up against BHP and Rio?
• How big will the Rio Tinto dividend be next year?
• Could the iron ore price slide below $100 US dollars in 2023?

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 Scott Phillips.

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The Bank of Queensland Limited (ASX: BOQ) share price has dived around 10% over the last month. With the ASX bank share going through this rapid decline, investors may be wondering whether this is an opportunity.

Last year, the prospect of higher interest rates was viewed as a real positive for ASX bank shares because of how they could pass on interest rate rises to borrowers quicker than savers, and increasing earnings banks can make on transaction accounts that pay 0% interest.

Many banks reported an increase in their net interest margin (NIM) in 2022 thanks to the higher interest rates. However, things aren’t turning out as well as hoped for lenders with intense competition in the sector. As we can see on the graph below, Bank of Queensland shares have suffered over the last year.

Fund manager Contact Asset Management has recently commented on the regional bank and whether it’s good value. The investment team started out by saying that the recent FY23 half-year result was “soft”. Hence, let’s have a quick look at the highlights from the report.

Earnings recap

Bank of Queensland said that its cash earnings were $256 million, a reduction of 4% from the first half of FY22.

Cash profit dropped even though the NIM grew by 4 basis points from the second half of FY22. It suffered a 7% rise in operating expenses to $495 million, which reflected “higher inflation and other costs including higher technology expenses and costs for proactive customer contact, technology and cyber security.”

Bank of Queensland shares may have been partly affected by the loan impairment expense of $34 million compared to a credit of $15 million in the first half of FY22. Bank of Queensland said this was driven by an increase in collective provisions reflecting “continued uncertainty around future economic impacts of inflation and interest rate pressures as well as recently observed and forecast declines in house prices.”

There was a 9% cut to the interim dividend per share to 20 cents, so shareholders have seen a reduction of their share value and a smaller payout.

In the bank’s outlook statement, it said that it expects to see “heightened mortgage competition continuing as well as escalated deposit competition due to term funding facility refinancing”, with interim margin compression anticipated.

It also noted that it’s looking to “align the structure” of its organisation to match its customer segments and business model, reduce duplication and leverage the automation of processes.

Fund manager views on Bank of Queensland shares

Contact Asset Management noted the “intensifying competition” in the banking industry for both mortgages and deposits, putting pressure on the NIM.

Bank of Queensland shares are only a small position in the Contact fund, but it intends to be patient “for now given the discount to book value that the shares are currently trading at.”

In other words, the market capitalisation is at a lower price than Bank of Queensland’s net assets.

Contact also said that ME Bank acquisition is “integrating well and should deliver on synergies.” The fund manager also pointed out that Bank of Queensland’s boss, Patrick Allaway is “eager to reduce the cost base.” As a concluding, optimistic thought, Contact explained:

We expect to see any sign of good news result in a material re-rating of the stock.

The post Down 10% in a month, are Bank of Queensland shares in for a material re-rating? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 shares to buy if they plunge from June tax-loss selling
• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• Warren Buffett is dumping bank stocks. Should you?
• Bank of Queensland is offering the highest savings interest rate of any ASX bank. What might this mean for shareholders?
• Brokers name 3 ASX shares to buy 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 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 Scott Phillips.

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The Fortescue Metals Group Ltd (ASX: FMG) share price could get a boost over the longer-term over the ASX mining share’s latest move to improve its balance sheet.

Many investors pay a lot of attention to the company’s income statement, but the balance sheet can be just as important, if not more important to a business’ long-term health. Managing a company’s assets and liabilities could be the difference between success and failure.

This week, Fortescue revealed a promising update regarding its balance sheet.

Redemption of senior unsecured notes

The ASX iron ore share announced to the market that it is redeeming its outstanding US$750 million 5.125% senior unsecured notes which are due in May 2024. The redemption will be completed on 1 June 2023.

Fortescue said that the notes will be “redeemed utilising cash on hand, further strengthening Fortescue’s capital structure.” A stronger balance sheet could be good news for the Fortescue share price. 

The company said that the redemption price for the notes will be 100% of the principal amount of the notes redeemed, plus any accrued interest up to, but excluding, the redemption date. Interest will not accrue and the notes will not be deemed to be outstanding on the redemption date.

What’s the benefit of this move?

For Fortescue, it makes sense to redeem the notes and avoid paying that relatively expensive interest rate. I would guess that the interest income Fortescue could generate from having that cash in the bank wouldn’t be as high as much as the notes are costing the ASX mining share.

The company’s net assets figure doesn’t change by making this move, but it should improve the net profit with a lower interest expense.

Investors typically like to value an ASX share based on the net profit after tax (NPAT) or cash flow that they’re going to generate. Given this move should improve the NPAT and cash flow, it’s likely to be seen as a benefit for the Fortescue share price, even if it’s just a small benefit.

Fortescue share price snapshot

As we can see on the graph above, the ASX iron ore share has risen by around 2% over the past year. It has slightly outperformed the S&P/ASX 200 Index (ASX: XJO) over the same time period, which has risen by 1.3%.

The post Could this ‘further strengthening’ boost the Fortescue share price moving forward? appeared first on The Motley Fool Australia.

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More reading

• Could Fortescue be the next ASX 200 miner on the lithium M&A trail?
• How does the Fortescue dividend stack up against BHP and Rio?
• Is the Fortescue share price a buy for its 2024 dividend yield?
• Could the iron ore price slide below $100 US dollars in 2023?
• Why are ASX 200 mining stocks having such a shocking end to the week?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 Scott Phillips.

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Pilbara Minerals Ltd (ASX: PLS) shares have done incredibly well for shareholders over the long term. Young ASX investors in particular are still reportedly loving the ASX lithium share. So in this article, we’re going to look at what’s attracting everyone, thanks to data from a clearing and broker services group.

For investors who don’t know much about the business, Pilbara Minerals is a lithium miner that is trying to dig more lithium out of the ground and also become more involved in the value chain of producing battery-ready lithium.

Lithium is seen as an exciting field because of the predicted growth in electric vehicles as the world decarbonises.

How popular are Pilbara Minerals shares?

The Australian Financial Review reports that according to 300,000 trading accounts at Openmarkets, Pilbara Minerals was the most purchased company among millennial and Generation Z investors in the 12 months to 31 March 2023.

But lithium companies were not among the most popular buys for Baby Boomers or Generation X investors over a three-month or 12-month time period.

The AFR suggested investor interest perked up after a fall in lithium prices of around 70% after China’s decision in January to curb electric vehicle subsidies.

Yet brokers such as Morgan Stanley suggest the lithium market is “turning around” with signs of improvement for the electric vehicle market, and amid tightening demand.

Why this particular ASX lithium share?

Portfolio manager at Acorn Capital, Rick Squires, pointed out that Pilbara Minerals is already producing lithium so it’s not an ASX lithium share that’s in the exploration or mine development stage. He said (courtesy of AFR):

When you start these mines up, they always have problems you never know about. It’s always the unknown unknowns.

There’s a lot of institutions that have been burnt before, in terms of that ramp-up and start-up phase…but if it goes well, there’s a rapid re-rating, and you can make a lot of money.

I think retail investors are looking at Core Lithium and the production profile that’s being forecast, and they’re comparing that with Pilbara and Allkem and thinking, ‘wow, there’s really deep value’, but they’re not actually thinking about the risks.

Squires prefers large operators like Pilbara Minerals. As well, the ASX lithium share’s operations are in the stable operating region of Western Australia.

He called Pilbara Minerals and Allkem Ltd (ASX: AKE) “reasonably stable” for resource companies, noting they have established processes, mines with long lives, and proven practices for extracting lithium economically. Squires commented:

Both companies are in the top 100 in the ASX, so they’re large companies. Are they going to go up two or three times? No. But very few companies in the ASX go up two or three times in a year, so it depends on where you want to play.

Foolish takeaway

The ASX lithium share is generating a lot of cash flow. In the three months to 31 March 2023, its cash balance increased by $457 million to $2.68 billion. Not only is the business in an exciting industry, but it’s printing bucketloads of cash at the moment.

Time will tell whether the younger Aussie investors are right in backing this growing lithium star.

The post Why are young ASX investors so in love with Pilbara Minerals shares? appeared first on The Motley Fool Australia.

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More reading

• Brokers say these 3 stellar ASX 200 growth shares are top buys
• 3 ASX 200 lithium shares that smashed the market today
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Where will ASX lithium shares go in 2023?

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 Scott Phillips.

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A curious phenomenon happens with ASX shares in June every year.

A bunch of stocks that performed badly during the financial year plunge even further.

That’s because of the fact that the income tax year in Australia ends on June 30.

Each June, many investors do a “clean out” of their portfolios and cut loose stocks that have done poorly. That means those capital losses will be put on their tax return, reducing their liabilities to the government.

So that’s terrible news for those who want to hold onto those stocks.

But it’s great news for shrewd investors who want to buy ASX shares on the cheap.

Shaw and Partners portfolio manager James Gerrish this week named four S&P/ASX 200 Index (ASX: XJO) shares that investors should consider picking up if they plummet next month.

“The ASX 200 has rallied +10.6% so far this financial year, leading to fewer candidates than on a more balanced year,” he said in Market Matters.

“But there are still plenty of stocks entrenched in the naughty corner in a year when the weak have tended to get weaker and vice versa.”

Two stocks already tempting enough to buy

Debt buyer Credit Corp Group Limited (ASX: CCP), closing Thursday’s session at $16.63, is already in the buy zone for Gerrish’s team.

“After more than halving over the last 18 months we believe the risk/reward has finally swung in favour of the buyers of Credit Corp,” he said.

“With interest rate hikes starting to bite the consumer we believe debt ledgers will become more readily available as people struggle with rising repayments across their various borrowings.”

Conditions are similarly becoming favourable for Lendlease Group (ASX: LLC), which has also plumbed to Gerrish’s desired entry point.

“Market Matters likes Lendlease around the $8 area,” he said.

“As the rental crisis continues to escalate and we are expecting significant immigration over the coming few years, the fundamental backdrop for this property and infrastructure business is starting to improve.”

Two stocks that could be tempting if June is a shocker

Casino operator Star Entertainment Group Ltd (ASX: SGR) has seen its share price more than halve over the past 12 months as it battled a series of well-publicised governance scandals.

With the company facing potentially massive fines from authorities, Star Entertainment shares are already trading near 52-week lows.

But Gerrish could be tempted if it keeps hitting new troughs.

“The risk profile is wide for Star but the value is returning for this unpopular business depending on the potential NSW casino duties with very real risks that NSW Labor may restructure the business model,” he said.

“We believe Star Entertainment will trade between $1.10 and $1.50 through 2023 providing solid opportunities for active/aggressive investors.”

Gerrish’s fourth pick, which is the least preferred, is Bank of Queensland Ltd (ASX: BOQ).

“We see further downside risks for BoQ despite the valuation being close to extreme multiples, but it is starting to represent value into its current decline,” he said.

“We believe it’s too early to catch this falling knife… [But] Market Matters may consider BOQ under $5.”

Bank of Queensland shares closed Thursday at $5.61.

The post 4 ASX 200 shares to buy if they plunge from June tax-loss selling appeared first on The Motley Fool Australia.

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More reading

• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• Warren Buffett is dumping bank stocks. Should you?
• Bank of Queensland is offering the highest savings interest rate of any ASX bank. What might this mean for shareholders?
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now

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 Scott Phillips.

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ASX mining share Tietto Minerals Ltd (ASX: TIE) finished the session yesterday at 54 cents, down 1.8% for the day and down 18% over the past month.

This gives the junior gold miner a market capitalisation of $598.15 million.

Katana Asset Management says the ASX mining share is ‘simply too cheap’ at this price level.

Let’s find out a bit more about Tietto Minerals.

Junior ASX mining share offers big value

Tietto owns West Africa’s newest producing gold mine, the Abujar Gold Project on the Ivory Coast.

Tietto is in the final stages of ramping up to full production after achieving its first ore production in December 2022 and its first gold pour in January this year.

The miner expects to reach or exceed full nameplate production by next month.

Broker impressed by low-cost, long-life mine

Tietto Minerals shares are down almost 30% in the year to date and down 18% over the past month.

Katana’s Australian equity fund portfolio manager Romano Sala Tenna told the Australian Financial Review (AFR) that this recent pullback has provided a buying opportunity.

Sala Tenna said:

[Tietto Minerals] has just finished construction and has commenced production at its mine in the safe jurisdiction of Cote d’Ivoire.

The recent pullback in its share price values the business at under $600 million.

This is simply too cheap for a low-cost, long-life company that will soon be producing at around 200,000 ounces per annum.

What’s the latest news from Tietto?

Tietto recently upgraded the Abujar mineral resource estimate by 10% to 3.83 Moz.

The company is now revising its Life of Mine production plan for delivery in Q3 CY23.

Tietto Managing Director Dr Caigen Wang said Abujar is “an extensive gold system of which less than 10% has been explored to date”.

He expects the revised Life of Mine plan to show “significant improvements.”

In its March quarter report, Tietto said it expects to produce 25,000 to 30,000 ounces of gold in Q2 2023.

From there, it forecasts gold production of between 105,000 to 120,000 ounces from 1 July to 31 December at an all-in sustaining cost (AISC) of US$875 to US$975 per ounce.

Its full-year forecast is 134,000 ounces to 154,000 ounces.

A ‘healthy financial position’

Like all ASX gold shares, Tietto is benefitting from high gold prices.

The spot gold price has recently been testing its previous record high of US$2,069.40 set in 2020.

Tietto said its gold sales in the March quarter totalled 7,586 ounces at an average price of US$1,980 per ounce.

In a statement, the company said:

Tietto ended its first partial quarter of Abujar operations in a healthy financial position with $6.96m
cash on hand and $5.7m in bullion on hand and is expecting strong cash generation from operating
activities in Q2 2023.

Perfect timing for this ASX mining share

It seems that full production at Abujar is coming online at just the right time.

Top broker Goldman Sachs is forecasting the average gold price to go higher over coming years.

Goldman is expecting an average price per ounce of US$2,008 in Q2 FY23, US$2,078 per ounce in Q3 FY23, and US$2,108 per ounce in Q4 FY23.

It gets better in 2024 with the Goldman team tipping an annual average of US$2,175 per ounce.

They predict an average gold price of US$2,087 per ounce in 2025 and US$2,000 per ounce in 2026.

The post The ASX mining share that’s ‘simply too cheap’! appeared first on The Motley Fool Australia.

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More reading

• Why are young ASX investors so in love with Pilbara Minerals shares?
• 4 ASX 200 shares to buy if they plunge from June tax-loss selling
• Own Webjet shares? Here’s what to look for in next week’s full-year results
• Buy these excellent ASX 50 shares now: broker
• Is it possible Appen shares have finally bottomed?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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Owners of Webjet Limited (ASX: WEB) shares might be on the edge of their seats next week as the travel company gears up to release its full-year earnings.

The online travel agency will drop its results for financial year 2023 on Wednesday morning, and investors could be in for a treat.

Webjet shares finished the day trading for $7.39 apiece yesterday, 0.82% higher than their previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) closed up 0.52%.

Let’s dive into what those invested in Webjet shares might expect to find in next week’s earnings release.

What can fans of Webjet shares expect from the company next week?

Looking back to FY22

Before we look forwards, let’s glance backwards. All the way back to this time last year when Webjet released its financial year 2022 earnings.

Then, the ASX 200 travel giant posted $1.6 billion of total transaction value (TTV), $138 million of revenue, and a $15 million earnings before interest, tax, depreciation, and amortisation (EBITDA) loss.

While it revealed an $85 million statutory loss for the period, it also noted it had returned to profit in the second half of last financial year.

That was reiterated in November when Webjet announced it had realised a $32 million profit for the first half – sending its share price soaring 10%.

Broker forecasts Webjet to beat FY23 guidance

So, with all that considered, it’s reasonable to expect the company could post its first full-year profit since financial year 2019 next week.

In November, it forecast its WebBeds business to exceed pre-pandemic profitability over the full year, with second-half EBITDA to come in at least $10 million above pre-pandemic levels.

Meanwhile, profitability for its business-to-consumer segment – housing its online travel agency and GoSee offering – is expected to be in line with the first half.

Broker Goldman Sachs, however, expects the company’s actual earnings to come in higher.

It tips Webjet to post around $338 million of revenue – representing a potential 145% improvement – and $124 million of EBITDA – a potential $139 million increase.

However, consensus is that the company won’t return to dividend just yet. CommSec figures suggest it could pass that milestone in financial year 2024.

Webjet share price snapshot

The Webjet share price has outperformed in recent months.

The stock has gained 21% since the start of 2023. It has also risen 28% since this time last year.

For comparison, the ASX 200 has gained 4% year to date and 1% over the last 12 months.

The post Own Webjet shares? Here’s what to look for in next week’s full-year results appeared first on The Motley Fool Australia.

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More reading

• Buy these excellent ASX 50 shares now: broker
• Is it possible Appen shares have finally bottomed?
• Buy these ASX shares with big dividend yields: Goldman Sachs
• 3 magnificent ASX dividend shares that could turn $5k into $50,000
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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The team at Morgans has a best ideas list that it updates every month.

To be included on this list, an ASX share has to offer the highest risk-adjusted returns over a 12-month timeframe and be supported by a higher-than-average level of confidence.

A couple of shares from the super exclusive ASX 50 index that have made the list this month are named below. Here’s why the broker is bullish on them:

CSL Limited (ASX: CSL)

This biotherapeutics company could be an ASX 50 share to buy according to Morgans.

The broker believes that CSL’s outlook is very positive now after COVID headwinds dissipated and tailwinds emerged. In addition, the broker feels that its shares are trading at a level that could be classed as “good value” historically. It explains:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.

Morgans has an add rating and $337.92 price target on CSL’s shares. This compares to the latest CSL share price of $302.82.

Seek Ltd (ASX: SEK)

Another ASX 50 share that Morgans rates highly is job listings giant Seek.

Its analysts are positive on the company due to their belief that it will benefit from a number of tailwinds in the near term. These tailwinds are expected to lead to increased reliance on the company’s products and services. It explains:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

Morgans has an add and $28.40 price target on Seek’s shares. This compares favourably to the current Seek share price of $23.85.

The post Buy these excellent ASX 50 shares now: broker appeared first on The Motley Fool Australia.

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More reading

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• Top brokers name 3 ASX shares to buy next week
• The top 10 ASX shares held by millionaires
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in CSL and Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Appen Ltd (ASX: APX) shares finished the session on Thursday up 6.49% to $2.46 per share.

They’ve had a 14% bump over the past five trading days, although, in the middle of that, they dropped like a stone to a seven-year low of $1.91 after coming out of a trading halt on Wednesday.

Okay, that’s gonna take some explaining. We’ll get to that in a minute.

Bigger picture, the thoroughly bloodied and beaten-up ASX tech share is actually in the green for the year to date, up 4.24% despite all its woes.

While it’s still in tumultuous territory, could the bleeding be over for this former market darling?

What’s going on with Appen shares this week?

Appen shareholders could seek some solace from Zip shares investors these days.

Both stocks are in the doghouse, down more than 90% from their peak prices reached just a few years ago.

But both of them have zoomed higher this week, prompting speculation that the worst may be over.

Hmmmm. Let’s review the week’s Appenings.

On Tuesday, Appen requested a trading halt and announced a $60 million capital raising.

The offer was $1.85 per new share, which is one heck of a discount.

It’s almost 25% lower than yesterday’s closing price and more than 40% lower than where Appen shares were before last Wednesday’s calamitous trading update.

(That update sent the Appen share price spiralling 28% in one day from $3.19 to $2.29.)

Also on Tuesday, the company released an investor presentation to sell the capital raise to institutional and retail investors, and to explain its strategy for a refresh.

The company said the funds would pay for one-off costs associated with its cost reduction program, provide balance sheet flexibility, and general working capital to support its return to profitability.

Before the market open on Wednesday, Appen informed the ASX that it had completed the $21 million institutional component of its equity raising.

Appen’s CEO Armughan Ahmad said:

Appen is delighted with the successful outcome of the Institutional Component of the Equity Raising and the support received from both existing and new institutional shareholders.

We look forward to executing on the vision we have communicated to the market and delivering results for our shareholders.

Less than an hour later, the tech share resumed trading and flatlined at the open, dropping 17% to $1.91.

That’s the lowest price Appen shares have traded at since their pre-WAAAX club days in 2016.

Appen shares hit a new low but bounce back hard

Interestingly, the stock rebounded over the day and finished the session on Wednesday at $2.34.

You got that? Appen shares dropped 17% at the open… then finished the day 0.4% higher than Tuesday’s halted share price.

Talk about a rollercoaster ride.

Anyway, with the $21 million institutional part done, the $38 million retail entitlement offer will commence on 23 May and close on 6 June.

Approximately 32.2 million new Appen shares will be issued under the equity raising. That represents about 26% of Appen’s existing shares on issue.

That’s a fair bit of dilution for existing shareholders to stomach.

What do the brokers think?

As reported in The Australian, top broker Bell Potter has responded to the news of the capital raising by increasing its rating on Appen shares to hold.

But its 12-month price target of $2.20 is lower than where Appen shares are currently trading.

So that’s not very inspiring for investors.

Last week, before the capital raise was announced, my Fool colleague James reported on how a few other brokers are thinking in relation to Appen shares.

The Morgan Stanley team had retained their underweight rating and cut the price target on Appen shares to $2.

The broker appeared uncertain about how Appen will be able to generate revenue growth while also cutting costs.

Macquarie analysts had downgraded Appen shares to underperform and cut their price target by more than half to $1.18.

This was largely due to the broker expecting Appen to perform poorly for a while.

Based on Macquarie’s valuation alone, it looks like this week’s seven-year low of $1.91 may not be the bottom for Appen shares.

The post Is it possible Appen shares have finally bottomed? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Best & Less, Incitec Pivot, and Weebit Nano shares are falling
• Deja vu! Why is the Appen share price crashing 17% today?
• Why is the Appen share price in a trading halt?
• Macquarie forecasts Appen shares to crash a further 47%
• Broker gives its verdict on the Appen share price crash

Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. 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 Scott Phillips.

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Are you looking for big dividend yields? Then look no further!

Two shares that have been rated as buys and tipped to provide investors with big dividend yields by Goldman Sachs are listed below.

Here’s what its analysts are saying about these dividend shares right now:

BHP Group Ltd (ASX: BHP)

If you don’t mind investing in the mining sector, then BHP could be a top option to consider.

That’s because Goldman Sachs is expecting this mining giant to provide investors with some very big dividend yields in the near future.

For example, the broker is forecasting fully franked dividends of US$2.05 (A$3.09) per share in FY 2023 and US$1.63 (A$2.46) per share in FY 2024. Based on the current BHP share price of $44.24, this will mean dividend yields of 7% and 5.6%, respectively.

Goldman also sees potential for BHP shares to rise from current levels. It currently has a buy rating and $49.90 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that has been tipped to provide a big dividend yield is Universal Store. It is a youth fashion retailer behind brands including Perfect Stranger, Thrills, and (of course) Universal Store.

Goldman Sachs is very positive on the retailer. It advised that this is due to “UNI’s strong medium term growth drivers in the form of 1) significant store roll out opportunity, with the youth fashion market under-penetrated in our view, and 2) compelling margin improvement opportunities from retailing private label apparel.”

The broker is expecting this to underpin fully franked dividends per share of 24 cents in FY 2023 and 31 cents in FY 2024. Based on the current Universal Store share price of $4.40, this will mean dividend yields of 5.45% and 7%, respectively.

As with BHP, Goldman sees plenty of room for Universal Store’s shares to rise from where they currently trade. The broker has an add rating and $7.45 price target on them.

The post Buy these ASX shares with big dividend yields: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price outpeforming the ASX 200 today?
• How does the Fortescue dividend stack up against BHP and Rio?
• I’d invest $3,000 each in these ASX dividend shares for almost $1,000 in annual income
• Why the BHP dividend forecast has caught my attention!
• Goldman Sachs says these ASX dividend stocks with big yields are 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. 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 Scott Phillips.

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