Tag: Motley Fool

The S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed 3% in the last month, but this ASX medical share has soared far higher.

The 4DMedical Ltd (ASX: 4DX) share price has rocketed 278% since market close on 3 April from 30 cents to $1.14.

So why has this ASX medical share had such a stellar run lately?

What’s happening?

4DMedical shares have been lifting amid a raft of positive announcements from the company.

In early April, 4DMedical advised it had signed its “first US hospital Software as a Service (SaaS) contract”.

Under a five-year contract with the University of Miami, 4DMedical will provide XV technology to enable the processing of patient data. XV technology enables physicians to detect the level of airflow in the lungs. 

4DMedical described the deal as a “significant milestone” for the company’s commercialisation strategy in the US.

Then on 13 April, 4DMedical provided further details on this sales contract. Under its terms, a minimum of $1 million to $1.5 million in fees is guaranteed to be paid to the company over a five-year term.

Meanwhile, on 26 April, 4DMedical updated the market with a quarterly report. Receipts from customers grew 67% to $1.2 million in the third quarter. The company reported a cash balance at 31 March of $36.8 million.

The company advised it is continuing to meet with US congress members on Capitol Hill to outline the company’s XV Technology and its potential to deliver on PACT Act healthcare for veterans. The former US Secretary for Veterans Affairs, Dr David Shulkin, has recently joined 4DMedical in an advisory role.

Finally, on 1 May, 4DMedical advised it had conducted its first commercial scanning within Veterans Health Administration. This took place at the Harry S. Truman Memorial Veterans Hospital.

Commenting on the news, 4DMedical CEO and founder Andreas Fouras said:

A vision to enable better care for Veterans is core to 4DMedical’s mission and culture. I am delighted to share the success of the first commercial scan at Harry S. Truman Memorial Veterans Hospital, completed by our team working alongside VA [Veterans Affairs] medical professionals.

Share price snapshot

The 4DMedical share price has soared 68% in the last year and 170% in the year to date.

This ASX medical share has a market capitalisation of about $334.7 million based on the latest share price.

The post Guess which ASX medical share has exploded 275% in a month? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 top ASX shares that would have more than doubled your money in 2023
• Guess which ASX healthcare share is rocketing 67% on a US hospital deal

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/t028cRr

The Fortescue Metals Group Ltd (ASX: FMG) share price was under pressure again on Wednesday.

The mining giant’s shares sank 4% to $19.99.

This means the Fortescue share price is now down over 14% from the 52-week high of $23.33 it reached in February.

Is the Fortescue share price cheap enough yet?

Unfortunately, the broker community continues to believe that the Fortescue share price is overvalued even after recent weakness.

In fact, I’m not aware of a single broker that has a buy rating on its shares right now.

The most positive broker is arguably Morgans, which has the equivalent of a sell rating and $18.20 price target on its shares. This implies potential downside of 9% from current levels.

Whereas analysts at Bell Potter, Goldman Sachs, and Morgan Stanley all see scope for the iron ore giant’s shares to crash over 20% from here. They each have sell ratings on its shares with price targets of $14.45, $15.80, and $14.10, respectively.

What is being said about the miner?

Last week, Goldman Sachs revealed why it is so bearish on the Fortescue share price. One reason is its valuation, the other is its dire free cash flow outlook.

In respect to its valuation, the broker highlights that its shares trade at a significant (undeserved) premium to peers. It explained:

[T]he stock is trading at a premium to RIO & BHP on our estimates; 1.4x NAV vs. BHP at c. 0.95x NAV and RIO at 0.9x NAV, c. 5.5x NTM EV/EBITDA (vs. BHP/RIO on c. 5x/3.5x), and FY24 FCF of c. 4% vs. BHP/RIO on c. 7/10%.

As for its free cash flow, the broker believes its material capital expenditure will mean its dividends come under pressure. It adds:

Uncertainties around Fortescue Future Industries (FFI) diversification and Pilbara decarbonisation and impact on dividend and balance sheet. The 2022 FMG site trip to the Pilbara highlighted ongoing elevated spend to maintain hematite group shipments at ~190Mtpa going forward. Combined with the ~US$7-8bn decarb program, we forecast FMG’s capex to increase from ~US$3.3bn in FY23 to US$3.8bn by FY25.

We continue to think FMG is at an inflection point on capital allocation, and to fund the ambitious strategy, we assume the company raises ~US$5.5bn of new debt, reduces the dividend payout ratio from the current ~65% in 1H FY23 to ~50% from FY24 onwards (bottom end of the 50-80% guidance range), and increases gross gearing to ~30% by FY26 (in-line with the company’s target of 30-40%).

The post Here’s what brokers are saying about the Fortescue share price in May appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Own Fortescue shares? You may have missed this week’s ‘game changer’ moment
• Why did the Fortescue share price tumble 7% in April?
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• How I’d generate $400 in monthly passive income from 2 ASX 200 iron ore shares
• Looking to buy ASX 200 iron ore shares? Here are 5 reasons not to

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.

from The Motley Fool Australia https://ift.tt/05N6H2T

When a company’s senior management offloads a large chunk of shares, it almost always sparks some consternation amongst shareholders. And that’s exactly what has happened with ASX 200 lithium stock Sayona Mining Ltd (ASX: SYA) shares this week.

According to an ASX notice put out yesterday, Brett Lynch offloaded 4.578 million Sayona shares on 26 April in an on-market trade. This transaction was worth $892,509.

Not only is Lynch the managing director of Sayona Mining, but he is also the company’s CEO. So is this sale of shares by the CEO a red flag for Sayona investors today?

At first glance, it might appear that way. After all, the Sayona share price has had a rough few months. The company has fallen from the 30 cents per share levels that we saw back in January to the 20 cents a share the company is commanding today:

Many investors have the view that a CEO should be as closely aligned with the financial interest of shareholders as possible. So a CEO share sale is rarely greeted with enthusiasm by investors. Especially when the company’s valuation has been sliding recently.

Is the CEO’s sale a red flag for Sayona shares?

But remember, CEOs are bound by the same rules of prudent wealth management as the rest of us. Thus, it’s arguably difficult to fault a CEO for wanting to diversify their wealth and not hold all of their eggs in one basket.

A deeper look into the ASX notice gives us some valuable context as well.

Yes, it’s true that Lynch sold a large tranche of shares late last month. But the ASX notice also reveals that while Lynch offloaded more than 4.5 million shares on 26 April, he also acquired a far higher 30.62 million shares two days later on 28 April. Lynch didn’t purchase these shares. They were issued after he exercised 30.62 million listed options.

But the fact remains that Lynch sold 4.578 million Sayona shares, and then acquired 30.62 million. Hardly an absence of ‘skin in the game’.

After both of these transactions, Lynch still holds 164.28 million Sayona shares. Those would have a value of approximately $32.86 million, going off of today’s pricing.

So we can’t exactly fault Lynch for selling a small portion of his overall Sayona position. Maybe he had a tax bill to pay, maybe he wanted to buy a new house, or go on a holiday. All in all, this transaction doesn’t seem to indicate anything out of the ordinary – and certainly wouldn’t be construed as a red flag by too many investors.

 

The post The CEO has sold 4.5 million Sayona Mining shares in the past week. Is this a red flag? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Sayona Mining share price sink 5% in April?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/r5yncEY

Two ASX mining shares have delivered investors more than 10-bagger gains over the past year.

And that’s during a 12-month period that’s seen the All Ordinaries Index (ASX: XAO) fall by 3%.

The mining stocks in question are the aptly named Meteoric Resources NL (ASX: MEI) and Lindian Resources Ltd (ASX: LIN),

We’ll look at what drove Meteoric Resources’ smashing outperformance first.

Strategic acquisition spurs investor interest

One year ago today, Meteoric Resources was trading for 1.5 cents per share. As of market close yesterday, those same shares were changing hands for 15.5 cents apiece.

That’s a whopping 12-month gain of 933% for this ASX mining share. Or enough to turn a $1,000 investment into $10,330.

Meteoric Resources share price really went, erm, meteoric in December. That’s when the company emerged from a trading halt to announce its acquisition of a potential world-class ionic clay rare earth project.

The Tier 1 Ionic Clay Rare Earth Element (REE) project is located in the Minas Gerais state of Brazil.

The ASX mining share said it would leverage the advanced nature of the Caldeira Project and “the excellent technical work already completed” to “move rapidly towards becoming a significant participant in the global rare earth industry”.

Indeed, just a few weeks later, the company released a promising early progress report.

“The initial testwork of the metallurgy at the Caldeira Project is very encouraging,” Meteoric Resources director, Andrew Tunks said at the time.

Shares have continued to gain in 2023 with more promising results out of Caldeira along with some of the miner’s other projects.

Which brings us to…

This ASX mining share is up 1,279% in a year

You won’t hear anyone complaining about the 933% 12-month gains delivered by Meteoric Resources.

But ASX mining share Lindian Resources managed to outpace those gains.

One year ago, the stock was trading for 2.9 cents per share. At market close yesterday, the Lindian Resources share price stood at 40 cents.

That’s a gain of 1,279% in a year. Or enough to turn that $1,000 investment into $13,791.

And as with Meteoric, much of the past year’s success looks to be linked to the strategic acquisition of a “globally significant” rare earths project.

On 1 August, the company reported that it was acquiring 100% of the shares in Rift Valley Resource Developments Limited. Rift Valley is the owner of the Kangankunde Rare Earths Project, located in Malawi.

Commenting on the acquisition on the day, Lindian chairman Asimwe Kabunga said:

This is without doubt an outstanding development for Lindian that delivers a huge value opportunity for shareholders…

This binding transaction gives Lindian control of one of the world’s premier undeveloped rare earths deposits, at a time when global demand is universally forecast to accelerate materially in the years ahead.

At the time, the ASX mining share closed the day up 33%.

The post Explosive growth! 2 ASX mining shares rocketing around 1,000% in a year appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 of the best ASX ETFs for global investing
• Why did the Qantas share price struggle in April?
• 4 reasons to buy ASX 200 banks stocks right now
• Brokers say buy these ASX dividend stocks for their big fully franked yields
• 3 ASX 200 bank shares to go ‘long and bullish’ on right now

Motley Fool contributor Bernd Struben 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.

from The Motley Fool Australia https://ift.tt/i2143jt

If you’d like to make some global investments but aren’t sure which shares to buy, you could look at exchange traded funds (ETFs).

But which ETFs could be good options for investors wanting to invest globally?

Two high quality options that could help you achieve this investment goal are listed below. Here’s what you need to know about them:

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

The first ASX ETF to look at is the Vanguard All-World ex-U.S. Shares Index ETF.

This ETF gives you access to approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States.

The fund manager, Vanguard, also highlights that it gives investors access to many sectors that are not well represented in Australia. In fact, the Australian share market only accounts for approximately 5% of the portfolio. The largest country allocations are Japan, China, United Kingdom, France, and Canada.

Among this ASX ETF’s holdings you’ll find shares such as Royal Bank of Canada, AIA Group, HSBC Holdings, Samsung, LVMH Moet Hennessy Louis Vuitton, and Taiwan Semiconductor.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF for investors to look at for global investing is the Vanguard MSCI Index International Shares ETF.

This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries. And unlike the previous ETF, this includes the United States stock market.

Vanguard highlights that the ETF provides investors with low-cost access to a broadly diversified range of stocks that allows them to participate in the long-term growth potential of international economies.

Among the ETF’s largest holdings are household names such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The post 2 of the best ASX ETFs for global investing appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 top ASX ETFs hitting new 52-week highs on Friday
• 3 highly rated ETFs for ASX investors to buy in May
• I think this underrated reason is key to why ETFs can be great investments
• 3 reasons why the Vanguard MSCI Index International Shares ETF (VGS) could be an excellent investment for beginners
• 3 quality ASX ETFs for investors to buy for the long term

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 positions in and has recommended Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The Qantas Airways Limited (ASX: QAN) share price hit turbulence in April, surging to a new 52-week high before slumping to close the month lower than it started it.

Stock in the national carrier closed March trading at $6.62 before leaping to its highest point since the onset of the pandemic – reaching $6.94 on 5 April.

Then it plunged to a low of $6.25 a little over a week later and ended the month trading at $6.60. That marked a 0.3% fall over the 30-day period.

For comparison, the S&P/ASX 200 Index (ASX: XJO) rose 1.83% last month to recover all its March losses.

So, why did the Qantas share price experience headwinds in April? Let’s take a look.

Qantas stock struggles in April

Last month was a relatively quiet one for Qantas. Though, there was one announcement with the potential to shift its share price – and it was likely a disappointing one for the airline’s fans.

Qantas’ long-standing plan to acquire charter airline Alliance Aviation Services Ltd (ASX: AQZ) was knocked back by regulators, citing competition concerns.

The Australian Competition and Consumer Commission (ACCC) said the takeover – which valued Alliance at $919.2 million on an enterprise basis – would likely reduce competition in the supply of air transport services to the resource industry.

ACCC Chair Gina Cass-Gottlieb said the role the airlines play for fly-in-fly-out (FIFO) workers is “an essential service” for an “important part of the Australian economy”, continuing:

It is critical that competition in this market is protected.

Qantas quickly queried the regulator’s findings, announcing its intent to seek more information on the decision, saying:

Qantas remains confident the acquisition would not substantially lessen competition in any market.

Though, the ACCC did provide the airline with a win last month.

It re-authorised Qantas and Jetstar to coordinate with two Jetstar Asian-based joint ventures and, conditionally, for Jetstar Japan to coordinate with Japan Airlines until 2028.

Qantas share price snapshot

Fortunately, its lacklustre April wasn’t enough to send the Qantas share price into the longer-term red.

The stock is 9% higher than it was at the start of 2023. It has also gained 12% since this time last year.

Meanwhile, the ASX 200 is currently 3% higher year to date but has fallen 2% over the last 12 months.

The post Why did the Qantas share price struggle in April? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s what this broker is saying about the Qantas share price
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How might Qantas shares perform under Vanessa Hudson?
• Brokers name 3 ASX 200 blue chip shares to buy
• Why Beach, Computershare, Endeavour, and Qantas shares are dropping today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Alliance Aviation Services. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/FGN9Y0m

S&P/ASX 200 Index (ASX: XJO) bank stocks have been through significant volatility since the beginning of COVID-19. Yes, there are some worrying factors to consider. But sometimes it pays to be positive.

In the past few months, I’ve written about strong competition in the banking sector and the rising funding costs because of higher interest rates on customer deposits (and sources of funding).

It’s not surprising that a number of the ASX bank stocks, such as Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB), have dropped more than 10% since early February considering the increasingly competitive environment for banks.

However, there are also a number of reasons to be positive, in my opinion.

Big dividends coming

The higher interest environment has led to banks earning higher profits, for now at least.

Higher earnings per share (EPS) means that banks like Australia and New Zealand Banking Group Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Commonwealth Bank, and NAB are all expected to grow their dividends in FY23.

This could result in very attractive grossed-up dividend yields from the major ASX 200 bank stocks.

Commsec numbers suggest the ANZ grossed-up dividend yield for FY23 could be 9.4%, the Westpac grossed-up dividend yield could be 9.1%, the NAB grossed-up dividend yield could be 8.6%, and the CBA grossed-up dividend yield could be 6.4%.

Competition is lessening?

While competition may be hurting margins, there are signs that the worst of the competition could be over.

NAB has said it’s not going to join in with the strong competition, according to the Australian Financial Review. In fact, we saw some banks increase rates outside of the normal RBA cycle, suggesting that ASX 200 bank stocks may not be competing as hard to win borrowers.  

Better valuation

As I’ve mentioned, we’ve seen ASX 200 bank stock share prices drop by more than 10% since February. While that’s not exactly a crash, it does mean that investors are now able to buy a slice of those businesses at a better price.

The lower the price we can buy bank shares, the higher the dividend yield and the more likely it is that we can achieve capital growth.

Let’s look at the current forward price/earnings (P/E) ratio. But remember, these are just forecasts.

The ANZ share price is valued at 10x FY23’s estimated earnings.

The Westpac share price is valued at just over 10x FY23’s estimated earnings.

The NAB share price is priced at 11x FY23’s estimated earnings.

The CBA share price is valued at more than 16x FY23’s estimated earnings.

Strong loan books

The big ASX bank stocks collectively saw a very low level of arrears over 2022. It’s possible that things will noticeably worsen for them over 2023. But we haven’t seen that yet.

If bank loan books perform better than feared, then this could mean better-than-expected profits for banks.

House prices may also perform better than feared, which could mean fewer bad debts than expected, even if loan arrears grow.

On top of all that, the banks do have well-capitalised balance sheets, as measured by the common equity tier 1 (CET) ratios.

Foolish takeaway

When you put all of that together, I think it’s possible the banks produce solid total returns from here, even if that’s only the dividend return in the short term.

The post 4 reasons to buy ASX 200 banks stocks right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX 200 bank shares to go ‘long and bullish’ on right now
• Top ASX passive income shares to buy in May 2023
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/sd7PuL2

Looking for more passive income? Then you may want to check out the ASX dividend stocks listed below.

Both have been named as buys and tipped to provide investors with attractive fully franked yields. Here’s what you need to know about them:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend stock that has been tipped as a buy is Dicker Data.

It is a technology distributor to over 10,000 resellers across the ANZ region. The company distributes a wide portfolio of products from the world’s leading technology vendors. This includes Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, and Microsoft.

The team at Morgan Stanley is very positive on the company’s outlook and is expecting Dicker Data’s earnings to be strong enough to underpin some big dividends in the near term.

For example, the broker is forecasting fully franked dividends per share of 43.8 cents in FY 2023 and 48.8 cents in FY 2024. Based on the latest Dicker Data share price of $8.01, this will mean yields of 5.45% and 6.1%, respectively.

Morgan Stanley currently has an outperform rating and $10.00 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend stock that has been tipped as a buy is Super Retail. It is the retail conglomerate behind brands such as Macpac, Rebel, and Super Cheap Auto.

Goldman Sachs is a big fan of the company. In fact, just this morning the broker has responded to the company’s quarterly update by reiterating its buy rating.

It highlights that “the company’s positive trading update continues to display resilience that is built upon its competitive advantage of high loyalty.” The good news is that this will soon be “further bolstered in 2H23 as the company launches the Rebel loyalty program and continues to build personalisation capabilities.”

Goldman is expecting this to support fully franked dividends per share of 74.1 cents in FY 2023 and then 62.6 cents in FY 2024. Based on the current Super Retail share price of $13.45, this will mean yields of 5.5% and 4.7%, respectively.

Goldman Sachs has a buy rating and $14.90 price target on its shares.

The post Brokers say buy these ASX dividend stocks for their big fully franked yields appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Passive income alert! Experts say buy these ASX dividend shares with big and growing yields
• Why Citi says these ASX 200 dividend shares are buys
• Here are the ASX 200 dividend shares to buy: analysts
• Get a passive income boost from these ASX dividend shares: analysts
• 5 steps to bring in $1,000 per month in passive income

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 positions in and has recommended Dicker Data and Super Retail Group. The Motley Fool Australia has positions in and has recommended Dicker Data and Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Ty2me7X

Amid the chaos of 11 interest rate rises over the last year, there is one sector that’s been forgotten as a beneficiary.

The banking sector, which dominates the S&P/ASX 200 Index (ASX: XJO) alongside mining, derives a natural benefit from higher interest rates paid by borrowers.

The enviable strength of the major four banks in Australia meant that the local industry even admirably fought through the storms that troubled the US and European institutions in recent months. 

In fact, the S&P/ASX 200 Banks (ASX: XBK) index is only down 2.2% year to date, while its American cousin Dow Jones US Banks Index (DJX: DJUSBK) has taken a 14.1% tumble.

That’s all while the Aussie stocks paid out handsome dividend yields.

Shaw and Partners portfolio manager James Gerrosh reckons Aussie banks unfairly get a bad rap.

“The press so often likes to knock our banks, but they’ve definitely helped most Australians super over the last few years,” he said in a Market Matters newsletter.

So which ASX bank stocks would he be invested in right now?

Fierce competition is ‘running out of steam’

Gerrish revealed that his team is “long and bullish” towards National Australia Bank Ltd (ASX: NAB).

“NAB is set to release its 1H23 result this Thursday with the market looking for NPAT of $4,148 million and an accompanying 91 cent fully franked dividend,” he said.

“The headlines in the three bank results will be one thing but the market will also be looking very closely at key metrics such as net interest margins (NIM), plus of course rhetoric around the state of play economically.”

A once-in-a-generation interest rate hike sequence has definitely assisted the banks, but strong competition in the banking industry has cancelled out this tailwind somewhat.

But that seems to be peaking.

“We actually believe the intense competition between the country’s largest lenders is running out of steam with Westpac Banking Corp (ASX: WBC) hiking rates for new mortgages last month by +0.1% after the RBA kept rates on hold.”

‘Surprises on the upside’

The other big four bank that Gerrish’s team favours is ANZ Group Holdings Ltd (ASX: ANZ), which delivers its update on Friday.

“Market Matters is long and bullish towards ANZ,” he said.

“The market [is] looking for net profit after tax (NPAT) of $3,538 million and an accompanying 79 cent fully franked dividend.”

ANZ is the only big four to have increased share price this year, but the current entry point still looks tempting.

“The valuation story is attractive with ANZ trading at book value, and below historical averages, compared to other major banks.”

Gerrish’s third “long and bullish” pick is not from the big four, but is still a giant in the industry.

“We like Macquarie Group Ltd (ASX: MQG) medium [term], which, as a company, has proven its ability to increase earnings even in a tough economic backdrop.”

It will also provide a financial update on Friday.

“Macaquarie’s retail banking business continues to outperform the entire sector and has consistently posted record mortgage net flows,” said Gerrish.

“Overall, we can see surprises on the upside in Friday’s numbers.”

The post 3 ASX 200 bank shares to go ‘long and bullish’ on right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Buy NAB and this ASX dividend share: analysts
• Why did ANZ shares smash the other ASX 200 banks in April
• Should I snap up Macquarie shares ahead of this week’s full-year results?
• What’s happening with ASX 200 banks today as First Republic teeters on the brink of collapse?

Motley Fool contributor Tony Yoo has positions in Macquarie 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 positions in and has recommended Macquarie Group. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/NZcV5Tl

Analysts at Goldman Sachs believe that it could be time to pounce on BHP Group Ltd (ASX: BHP) shares.

This morning, the broker has upgraded the mining giant’s shares to a buy rating with a price target of $49.90.

Based on the current BHP share price of $43.27, this implies potential upside of just over 15% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividend yields of 7.1% in FY 2023 and 5.7% in FY 2024. This stretches the potential returns on offer with BHP shares to beyond 20%.

Why did Goldman upgrade BHP shares?

According to the note, the broker has now incorporated the OZ Minerals acquisition into its valuation.

Interestingly, Goldman doesn’t see a lot of immediate valuation creation from the acquisition. In fact, the broker suspects it could be value dilutive in the near term. It explains:

The OZL acquisition will increase BHP’s copper production by ~7% and earnings by a modest 1% in FY24 on our estimates, however will also lift group capex and gearing and lower FCF over the medium term.

We see the deal as slightly value dilutive even at our top of the street, long run copper price forecast of US$4.3/lb (real $), and assuming part of the identified ~US$1.5bn (mid-point) in potential synergies associated with both the Olympic Dam and Nickel West smelters are captured over the next 5-10 years.

So why the upgrade? Well, the upgrade is simply due to the current valuation of BHP shares. Goldman believes recent weakness has created a buying opportunity for investors. It adds:

Although we believe BHP’s biggest challenge will be the execution of the Carrapateena block cave and West Musgrave projects within OZL’s budget and timeframe, along with capturing the potential synergies with the smelters that we have identified, we upgrade BHP to Buy (from Neutral) based on attractive valuation after the recent ~15% drop in the stock price since January. The slide in share price is due to the recent drop in iron ore and copper prices on the back lower than expected Chinese steel demand and developed market copper demand in 1Q.

The post Why Goldman Sachs just slapped a buy rating on BHP shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Investing for passive income? Here’s your dividend yield if you bought BHP shares in July
• Bye bye OZ Minerals shares
• Worried about the market? 2 ASX dividend stocks that could help you sleep at night
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• How I’d generate $400 in monthly passive income from 2 ASX 200 iron ore shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/x3fD2zi