Tag: Motley Fool

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market has been choppy this week, and Wednesday brought some new fears to the table. Market participants are looking closely at rising incidence of new COVID-19 variants, which could threaten to bring yet another wave of cases to areas where vaccination rates have been less than ideal. By the end of the day, major market benchmarks like the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) had managed to recover their lost ground, but many investors remain nervous.

Index	Percentage Change	Point Change
Dow	+0.30%	+104
S&P 500	+0.34%	+15
Nasdaq Composite	+0.01%	+1

Data source: Yahoo! Finance.

One thing that was somewhat surprising was the behavior of vaccine stocks amid worries about new COVID-19 variants. Moderna (NASDAQ: MRNA), BioNTech (NASDAQ: BNTX), and Novavax (NASDAQ: NVAX) were all sharply lower on the day. Below, we’ll look more closely at the moves to try to figure out what’s going on.

Big losses in the vaccine area

The declines in vaccine stocks  were quite substantial. BioNTech made out relatively well with a 4% decline. However, Moderna dropped almost 5% on the day, and Novavax was the hardest hit, falling 14%. Other vaccine hopefuls were also weaker, as Inovio Pharmaceuticals (NASDAQ: INO) dropped almost 7% and Ocugen (NASDAQ: OCGN) lost nearly 5%.

Most analysts attributed the declines in vaccine stocks to the delta variant of COVID-19. The delta variant is much more contagious than earlier variants, and it has become the most prevalent cause of COVID-19 in the U.S. recently. The Centers for Disease Control and Prevention recently estimated that slightly over half of U.S. COVID-19 cases are now coming from the delta variant.

The reason for concern seems to stem from the possibility that as COVID-19 variants evolve, they’ll eventually get to the point at which current versions of vaccines are no longer effective. At least based on preliminary data, that doesn’t seem to be the case with the delta variant. Existing vaccines from Moderna and BioNTech offer protection against the delta variant, albeit with some indications that efficacy might be somewhat reduced compared to earlier variants.

Opportunity abounds

However, declines in vaccine stocks make little sense in light of ongoing worries about COVID-19. The reasons are simple. First, greater awareness of the importance of vaccination to fight future variant mutations should boost sales of currently available vaccines from these companies.

But even more importantly, investors seem to assume that vaccine producers are standing still. Just as the virus can adapt to changing conditions, companies fighting the virus can adapt to the mutations, looking at ways to improve on existing vaccines. That might involve offering booster shots to those who’ve already received vaccinations, or it could eventually lead to entirely different vaccination regimens that could prove effective in fighting more aggressive strains of the virus. Sales of those new and existing products could actually help boost vaccine producers’ longer-term prospects.

With much of the world only now getting their chance to obtain and distribute vaccines to their populations, nervousness about vaccine stocks seems premature at best. If weakness continues, it’ll be hard not to see lower prices for shares of vaccine makers as an opportunity for investors to take advantage of what in hindsight might well look like a bargain.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post With COVID-19 variant threats rising, why are vaccine stocks falling? appeared first on The Motley Fool Australia.

More reading

• Why Moderna shares surged 27% in June
• 3 reasons to buy BioNTech, and 1 reason to sell
• Why Moderna stock jumped 6% Tuesday
• Why BioNTech trounced the Market on Tuesday
• Is this the secret ingredient that could make Moderna shareholders rich?

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3yxGn71

The IDP Education Ltd (ASX: IEL) share price is on the move on Thursday morning.

At the time of writing, the language testing and student placement company’s shares are up 1% to $29.61.

This means the IDP Education share price is now up over 30% in the space of a month.

Why is the IDP Education share price rising?

The catalyst for the rise in the IDP Education share price on Thursday appears to be a bullish broker note out of Goldman Sachs.

According to the note, the has reiterated its buy rating and lifted its price target on its shares to $35.00.

Based on the latest IDP Education share price, this implies potential upside of 18% even after today’s gains.

What did Goldman say?

Goldman Sachs has updated its earnings estimates to reflect the acquisition of the British Council’s Indian IELTS operations and recent COVID-19 disruptions. While the latter has led to lower short term earnings expectations, its long term estimates have increased.

The broker explained: “We have cut our 4Q21 expectations for IELTS testing volumes in India and FY22 SP [student placement] volumes for Australia reflecting COVID disruptions and border closures. This results in EPS changes for IEL in FY21/FY22/FY23 of -7.1%/-7.5%/+8.4%.”

“Despite near-term earnings disruption, we are confident in the eventual bounce-back to pre-COVID trend growth, supported by strong structural growth in international student demand. We think the market is likely to look through near-term COVID disruptions and instead focus on the long-term outlook for the business,” it added.

Acquisitions to drive future growth?

But perhaps the main reason Goldman Sachs believes the IDP Education share price is good value right now is the prospect of further earnings accretive acquisitions in the future.

Goldman commented: “In our view, the acquisition of BC’s Indian IELTS operations is an indication of IEL’s willingness to deploy capital toward synergistic acquisitions, and may pave the way for further transactions in other countries. While we take no view on any specific transactions, we move our target price methodology to DCF and apply an uplift of A$3.20 to our DCF to capture the potential value from further acquisitions. Our new 12-month TP is A$35.00; with this offering 20% upside, we reiterate our Buy rating.”

The post IDP Education (ASX:IEL) share price higher on bullish broker note appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy today
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• These were the best performing ASX 200 shares last week

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 shares of and has recommended Idp Education Pty Ltd. 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/36khOOV

The Netwealth Group Ltd (ASX: NWL) share price is on the move on Thursday morning.

At the time of writing, the investment platform provider’s shares are up 5% to $16.81.

Why is the Netwealth share price charging higher?

Investors have been bidding the Netwealth share price higher today following the release of its quarterly update.

According to the release, Netwealth’s Funds Under Administration (FUA) stood at $47.1 billion at the end of June. This was a 12.7% or $5.3 billion increase since the end of March and includes positive market movements of $2.2 billion. It also represents a 49.6% or $15.6 billion increase over the prior corresponding period.

This was driven largely by net inflows of $3.1 billion, which was double the net inflows recorded in the same period last year. This means that Netwealth continues to lead the industry for FUA net inflows in 2021.

As a result, at the end of March, the company’s market share had increased to 4.6% from 3.6% a year earlier. This makes Netwealth the sixth largest and fastest growing platform provider by net fund flows in Australia.

FUM growth continues

Also growing strongly and giving the Netwealth share price a boost was its Funds Under Management (FUM). The release explains that the company’s FUM increase $1.2 billion or 11.9% over the three months to $11.7 billion. This is up $4.5 billion or 61.4% over the same period last year.

This was underpinned by further strong growth in managed accounts to 9,835, which is up 69.7% over the prior corresponding period.

The Netwealth share price has been a very strong performer over the last 12 months. Today’s gain means its shares are now up an impressive 81% since this time last year. This has been driven by its strong FUA growth and the prospect of higher cash rate in the not so distant future. The ultra low cash rate has been a drag on its margins over the last couple of years.

The post Netwealth (ASX:NWL) share price up 5% on quarterly update appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• 3 blue chip shares that smashed the ASX 200 index in FY21
• This ASX share is the perfect inflation fighter, experts say
• ASX 200 down 0.3%: Coles and Challenger updates, gold miners sink

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 shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. 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/3wjzx3L

The stellar surge in the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price on a takeover bid is only the start of a trend on our markets.

Many more ASX shares will also be taken private, according to the chief executive of Hamilton Lane, Mario Giannini.

The Australian Financial Review quoted the fund manager as saying that there is too much money in private capital markets chasing too few assets.

More ASX shares to be taken private through M&A

That means more publicly listed ASX shares will get privatised. Our share market is sounding like the property market where there are too many buyers chasing too few listings.

The Sydney Aviation Alliance consortium lobbed a $8.25 a share bid for the nation’s largest airport, which is a 43% premium to the Sydney Airport share price.

The consortium is made up of infrastructure investors and superfunds. Thanks to cheap money from record low rates and stimulus, “patient capital” is looking for long-term productive assets.

Other ASX shares that been bolstered by M&A

We’ve already seen a number of merger and acquisitions (M&A) hitting our bourse. The Telstra Corporation Ltd (ASX: TLS) share price is one of the more recent examples. The telco sold a 49% stake in its mobile towers for $2.8 billion to an eager infrastructure consortium.

Let’s also not forget that the Altium Limited (ASX: ALU) share price and Vocus Group Ltd (ASX: VOC) share prices have also been touched by the M&A bug. These are only a few examples of ASX shares under the M&A spotlight.

Why more ASX shares could be taken private

Hamilton Lane outlined a few reasons why its betting on a public-to-private shift. Giannini believes private companies can respond more quickly to black swan events. That’s a handy skill, as the COVID-19 pandemic showed us.

He also pointed out that managers of a private company tend to own a larger share of the business. This aligns their interests to that of investors.

Further, private company investors are willing to cough up more for assets. This is because they can focus on long-term growth and not be distracted by a gyrating ASX share price.

Public listings losing its flavour?

Giannini also noted that listed companies are falling out of favour. The number of public listings has halved in the United States over the past decade.

“In the private sphere, everybody involved – the owners and the managers – all have a real stake in the outcome, and they can take actions quickly, and it matters to them,” he was quoted by the AFR.

“I think the problem in the public sphere is you have owners in the form of pension funds and institutions who are not really active. They’re sort of these passive investors, and you have management that generally doesn’t own a huge amount of the company that are making decisions.

“It’s a governance model that isn’t as effective, I think, as the private model.”

Regardless of whether the public-to-private trend accelerates, M&A is likely to be a big feature among ASX shares in 2021.

The post Expert says more ASX shares to follow Sydney Airport (ASX:SYD) takeover trend appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX tech shares named as buys
• Here are 3 of the most traded ASX 200 shares today
• Could Sydney Airport’s (ASX:SYD) buyout offer be selling investors short?
• Telstra (ASX:TLS) to repay up to $25 million to customers for slow internet
• Here are 3 ASX 200 shares that were on the move today

Motley Fool contributor Brendon Lau owns shares of Telstra Corporation Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium and 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/3dTTWWt

The S&P/ASX 200 Index (ASX: XJO) shares that pay dividends could be a good place to search for income.

Some businesses are expected to pay healthy dividend yields over the next 12 months and beyond, with growth expected.

The below two companies are leaders in their industry and also are paying dividends to their shareholders:

Premier Investments Limited (ASX: PMV)

Premier Investments is one of the leading retailers in the ASX 200. It operates through a number of different brands including Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans and Dotti. It also has sizeable holdings of Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR). Premier recently increased its holding to more than 15% of Myer.

According to earnings estimates on Commsec, Premier Investments is expected to pay an annual dividend per share of $0.875 per share in FY22. That would equate to a grossed-up dividend yield of 4.6% for FY22.

Whilst its physical store network has been disrupted by COVID-19 since March 2020, Premier Investments has seen high levels of online sales growth which has helped increase profit margins. The company is looking forward to a global retail recovery from COVID-19, particularly for Smiggle which has been impacted by closed schools.

Around a month ago, the business gave a trading update for FY21. It said that its total global sales for the first 18 weeks of the second half of FY21 were up 70% on the comparable period in the second half of FY20 and up 15.8% on the comparable 18 weeks of the second half of FY19.

One of the highlights of the ASX 200 share’s update was that all 122 Smiggle stores in the UK and Ireland re-opened during April 2021 and May 2021.

It’s expecting that its retail FY21 earnings before interest and tax (EBIT) will be in a range of between $340 million to $360 million, pre-AASB16. That would represent growth of between 82% to 92% on the underlying FY20 EBIT.

This profit growth is being driven by a number of things including “strong” online sales growth and highly profitable online performance, “exceptional” gross margin expansion in the second half to date with an increase of over 380 basis points, and strong cost control (including reducing rent).

Carsales.Com Ltd (ASX: CAR)

Carsales says it’s the largest online automotive, motorcycle and marine classifieds business in Australia. It also has operations internationally, with stakes in leading online automotive classified businesses in Brazil, South Korea, Malaysia, Indonesia, Thailand and Mexico.

According to estimates on Commsec, Carsales is projected to pay an annual dividend per share of $0.516 in FY22. That translates to a grossed-up dividend yield of 3.5%.

One of the latest moves by the ASX 200 share was to acquire a 49% interest of leading US digital marketplace business Trader Interactive, funded through a $600 million capital raising. At the time of the announcement, the ASX 200 share said that the acquisition represents a strategically compelling opportunity for Carsales to further build out its international scale and industry diversification with exposure to attractive verticals in the US.

In terms of operating performance, Carsales continues to produce growth despite the impacts of COVID-19 on the business and the industry. In the first six months of FY21, it saw double digit earnings growth with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 18% and adjusted net profit after tax (NPAT) growth of 17%.

The interim dividend was increased by 14% to 25 cents per share.

The post 2 ASX 200 shares that could be great for dividends appeared first on The Motley Fool Australia.

More reading

• Myer (ASX:MYR) share price on watch after responding to Premier investment
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Challenger soars, Zip jumps
• Here are 3 of the most traded ASX 200 shares today
• These ASX 200 tech shares are beating the broader market 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 owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended carsales.com 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/3wlTS8p

The AMP Ltd (ASX: AMP) share price could be on the move on Thursday.

This follows news that the embattled financial services company is offloading another asset.

What did AMP announce?

This morning AMP announced that it has entered into a binding agreement with Macquarie Group Ltd (ASX: MQG) to sell its AMP Capital’s Global Equities and Fixed Income (GEFI) business.

According to the release, Macquarie Asset Management will acquire the business for a consideration of up to $185 million.

Management notes that this sale delivers on AMP Capital’s strategy to focus on high-growth opportunities in private markets across real estate, infrastructure and associated adjacencies. It also believes it is an important step in preparing the AMP Capital business for its planned demerger in the first half of 2022.

Furthermore, it highlights that the transaction delivers on the previously announced strategy for the AMP Capital public markets business to increase the scale of GEFI through partnerships or sale. As part of the Macquarie Group, it believes GEFI will be positioned to further improve its high-quality client service offering and to expand its client base and product set over time.

AMP Capital advised that it is also in the process of transferring the Multi-Asset Group business to AMP Australia to create an end-to-end superannuation and investment platform business.

AMP’s Acting Chief Executive Officer, James Georgeson, said: “In bringing together two well-known Australian investment businesses with strong track records, we’re pleased to deliver such a positive outcome for our clients, our GEFI teams and AMP shareholders. Our review of the GEFI business last year showed it had strong investment capabilities and performance but needed greater scale and broader distribution reach to compete effectively.”

“Macquarie is a high quality and respected manager, with a complementary culture and capabilities, well-placed to develop the business and deliver continued strong investment performance for its expanded client base. We are committed to working with Macquarie to integrate and transition our clients and teams, and to explore new partnership opportunities to enhance the products and services we both provide to our clients,” he added.

The AMP share price is down 28% since the start of the year. Shareholders will no doubt be hoping for better in the second half of the year.

The post AMP (ASX:AMP) share price in focus after Macquarie (ASX:MQG) asset sale agreement appeared first on The Motley Fool Australia.

More reading

• 3 high-yielding ASX dividend shares
• ASX lithium shares could get boost from Macquarie (ASX:MQG) upgrade
• The AMP (ASX:AMP) share price is down 27% in 2021
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Why the Macquarie (ASX:MQG) share price is pushing higher again

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2TFhrvQ

The Myer Holdings Ltd (ASX: MYR) share price will be one to watch on Thursday.

This follows the release of a response to the recent buying of shares by retail conglomerate Premier Investments Limited (ASX: PMV).

What did Myer say?

In response to Premier Investments acquiring an interest greater than 15% in the department store operator, Myer has reached out to discuss the investment. This includes discussing the possibility of giving Premier Investments what it really wants – a seat on the Myer Board.

Myer’s Acting Chairman, JoAnne Stephenson, reminded shareholders that the company has previously stated that it was open to constructive and positive dialogue with its major shareholders, with a primary objective of delivering value for all shareholders.

She commented: “Acknowledging that Premier Investments has increased its holding in the Company to greater than 15% and the significance of this change, I have reached out to Mr Lew and look forward to constructive dialogue.”

“The Board is open to discussing appropriate Board representation of Premier Investments through nomination to the Myer Board,” she added.

However, Stephenson has warned that board representation is far from guaranteed.

She explained: “In considering this, we would need to be satisfied around any issues or potential conflict that Premier’s representation on Myer’s Board could create and whether they could be addressed through governance protocols or other means.”

What now?

Myer doesn’t appear to want to make any changes to its strategy following this investment and stressed that its Customer First Plan is delivering results. Nor does the company want this development to distract it.

Stephenson said: “We have a well-articulated strategy in the Customer First Plan and it is delivering positive results, as seen at our 1H results despite the ongoing challenges that lockdowns and CBD traffic limitations present.”

“Our balance sheet has been significantly strengthened through tighter inventory management and cash generation, we have improved our range of products, reduced space, significantly grown our online business, all whilst maintaining discipline over costs and capital expenditure.”

“We are keen to have Board matters resolved as soon as possible. The Board is focused on ensuring that [CEO] John King and his management team are able to execute the all-important upcoming peak trading period without distraction,” she concluded.

The post Myer (ASX:MYR) share price on watch after responding to Premier investment appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Myer soars, Ramsay down
• Why the Myer (ASX:MYR) share price is up 9% today
• Which ASX 200 shares are winners from the latest retail trade figures?
• 2 ASX 200 shares that might be buys for growth
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments 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/3jRsqN8

If you’re looking for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three excellent ETFs that could be worth getting better acquainted with. Here’s what you need to know:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This popular ETF gives investors exposure to the growing Asian economy. The BetaShares Asia Technology Tigers ETF provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. There are also a host of lesser known companies, such as Meituan Dianping and Pinduoduo, with explosive growth potential.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF for investors to consider is the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the global cybersecurity sector. Given how prevalent cyberattacks are becoming and how much infrastructure is now in the cloud, demand for cybersecurity services is expected to rise strongly in the future. This bodes well for companies included in the fund such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Finally, the BetaShares NASDAQ 100 ETF could be another ETF to consider. This ETF gives investors exposure to the 100 largest non-financial shares on the NASDAQ index. These are many of the largest companies in the world and household names. Among the 100 are giants including Amazon, Alphabet, Apple, Facebook, Microsoft, Netflix, Nvidia, and Tesla. Given the positive long term outlooks of these companies, the Nasdaq 100 has been tipped to outperform the broader market again over the next decade.

The post 3 excellent ETFs for ASX investors in July appeared first on The Motley Fool Australia.

More reading

• AGL and Zip shares were among the most traded ASX shares last week
• 2 ETFs that could be buys in July 2021
• 2 compelling ASX shares that could be buys in July 2021
• 3 quality ETFs for ASX investors in July
• 2 quality ETFs for the new financial year

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 shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS, BETANASDAQ ETF UNITS, and BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Here’s why these ASX dividend shares could be in the buy zone right now:

Mineral Resources Limited (ASX: MIN)

The first dividend share to look at is Mineral Resources. It is a leading mining and mining services company with exposure to iron ore and lithium.

It is the owner of the Wodgina operation, which is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. Mineral Resources also jointly owns the Mt Marion Lithium project with Jiangxi Ganfeng Lithium, which it operates under a life-of-mine mining services contract. This is complemented by its Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Analysts at Macquarie are very positive on Mineral Resources. They currently have an outperform rating and $73.00 price target on the company’s shares. The broker is also forecasting dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $57.50, this will mean fully franked yields of 5.8% and 5.3%, respectively, over the next two financial years.

Scentre Group (ASX: SCG)

Another dividend share to consider is Scentre. While its Westfield properties in Australia struggled during the pandemic, the worst now appears to be over and a return to growth is being predicted.

For example, Goldman Sachs is positive on Scentre and is forecasting solid revenue, income, and dividend growth in the coming years. It notes that inflation expectations are currently at their highest level since 2015. This is good news for Scentre as it is more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.

Goldman is forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Based on the latest Scentre share price of $2.78, this equates to yields of 5% and 6.1%, respectively.

The post 2 highly-rated ASX dividend shares for income investors in July appeared first on The Motley Fool Australia.

More reading

• Why the Mineral Resources (ASX:MIN) share price is moving higher
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• 2 highly rated ASX mining shares that could be buys
• 5 best ASX 200 mining and resource shares of financial year 2021
• These were the best performing ASX 200 shares last week

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

from The Motley Fool Australia https://ift.tt/2VhrCai

On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and stormed higher. The benchmark index rose 0.9% to 7,326.9 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher this morning. This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.35%, and the Nasdaq edge ever so slightly higher.

Oil prices fall again

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be in the red today after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 2% to US$71.85 a barrel and the Brent crude oil price has fallen 1.9% to US$73.12 a barrel. OPEC uncertainty has been weighing on prices.

IDP Education shares given buy rating

The IDP Education Ltd (ASX: IEL) share price could be good value according to Goldman Sachs. This morning the broker reiterated its buy rating and lifted its price target to $35.00. Its analysts commented: “In our view, the acquisition of BC’s Indian IELTS operations is an indication of IEL’s willingness to deploy capital toward synergistic acquisitions, and may pave the way for further transactions in other countries.” The IDP Education share price is currently trading at $29.25.

Gold price rising

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could push higher today after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,803.10 an ounce. The precious metal pushed higher after bond yield dipped in response to the US Fed’s meeting minutes.

Tech shares on watch

The tech sector was in fine form on Wednesday and was a key driver of the ASX 200’s gains. However, an underperformance by the tech-heavy Nasdaq index last night could mean it is a different story on Thursday. This will mean the likes of Appen Ltd (ASX: APX) and Zip Co Ltd (ASX: Z1P) will be on watch today.

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

More reading

• ASX 200 rises, Challenger soars, Zip jumps
• ASX 200 oil shares tumble as OPEC+ nations squabble
• Here are 3 of the most traded ASX 200 shares today
• These ASX 200 tech shares are beating the broader market today
• Why Nanosonics, Oil Search, Opthea, & Piedmont Lithium are tumbling

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 shares of and has recommended Appen Ltd, Idp Education Pty Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Appen 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/3dTtzzX