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The Fortescue Metals Group Limited (ASX: FMG) share price is tumbling on the back of the iron ore giant’s latest quarterly production results.

Right now, Fortescue stock is trading at $20.42 – 5% lower than its previous close.

Fortescue share price falls as iron ore production slumps

Here are the key takeaways from the S&P/ASX 200 Index (ASX: XJO) giant’s production for the March quarter:

• Ore mined fell 16% quarter-on-quarter (QoQ) and 3% year-on-year (YoY) to 50.3 million wet metric tonnes (wmt)
• Processed 46.1 million wmt of ore – down 8% QoQ but up 17% YoY
• Shipped 46.3 million wmt of ore – a 6% QoQ fall and flat YoY
• C1 cost (representing the ‘direct’ production costs of iron ore) jumped 3% QoQ and 12% YoY to US$17.73 per wmt
• Average revenue came in at US$109 per dry metric tonne (dmt) ­– a 25% QoQ improvement and 9% higher YoY

Fortescue’s shipments for the first nine months of financial year 2023 came in at a record 143.1 million tonnes – a 3% jump on the prior comparable period.

The company ended the period with US$4 billion of cash and $6.1 billion of debt.

What else happened last quarter?

Perhaps the most exciting update in today’s release concerns its majority-owned Iron Bridge Magnetite Project.

Several key milestones were achieved at the project last quarter, culminating in its maiden wet concentrate production last week. Its production will now be pumped to Port Hedland.

The project is expected to produce 22 million tonnes of high-grade 67% iron magnetite concentrate annually, while Fortescue’s share of its capital estimate is around US$3 billion.

Fortescue’s green energy leg Fortescue Future Industries (FFI), also has a busy quarter. It completed construction works at its Gladstone electrolyser manufacturing facility, advanced the Norwegian Holmaneset Project, and signed an investment support and implementation agreement with the Government of Kenya.

What did management say?

Fortescue CEO Fiona Hick commented on the update driving the company’s share price today, saying:

On the Iron Bridge Magnetite Project, I am pleased to report that the first wet concentrate was produced on Friday.

This is a significant milestone for Fortescue as Iron Bridge represents our entry into the highest grade segment of the iron ore market, providing an enhanced product range while also increasing production and shipping capacity.

Together with our strong balance sheet and focus on investing in growth, we are well placed to advance our transition to a global green metals and energy company and ensure all stakeholders continue to benefit from Fortescue’s success.

What’s next?

The ASX 200 mining giant’s full-year guidance hasn’t been changed today. It still expects to ship between 187 million tonnes and 192 million tonnes of iron ore in financial year 2023.

Fortescue’s C1 cost for hematite is tipped to come in between US$18 per wmt and US$18.75 per wmt while its capital expenditure (excluding FFI) is forecast to reach US$2.7 billion to US$3.1 billion.

Finally, FFI is anticipated to demand between US$500 million and US$600 million of operating expenditure and US$230 million of capital expenditure.

Fortescue share price snapshot

Today’s fall sees the Fortescue share price handing back much of its 2023 gains.

The stock has risen just 0.1% higher than it was at the start of this year. Meanwhile, it’s gained 3% since this time last year.

For comparison, the ASX 200 has gained 5% so far this year and is trading flat over the last 12 months.

The post Fortescue share price plummets 5% amid weaker production appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 stock just upped its guidance by as much as 60%
• Are BHP shares a buy following the ASX 200 miner’s latest update?
• 5 things to watch on the ASX 200 on Monday
• Which ASX 200 share has quietly risen 11% in a month?
• Here are the 3 most heavily traded ASX 200 shares 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 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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If you’re looking for ASX 200 dividend shares to buy, then you may want to check out the two listed below that Citi rates as buys.

Here’s why the broker says these are top options for income investors:

Charter Hall Retail REIT (ASX: CQR)

The first ASX 200 dividend share that Citi rates as a buy is Charter Hall Retail. It is a supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company.

Citi highlights that the company has “defensive net property income growth despite rising interest rate profile.” It also like that “CQR’s convenience retail and convenience long WALE portfolio is effective at passing through higher inflation.”

The broker currently has a buy rating and $4.50 price target on its shares.

As for dividends, Citi is expecting the company to pay dividends of 26 cents per share in both FY 2023 and FY 2024. Based on the current Charter Hall Retail share price of $3.77, this will mean very generous 6.9% yields for investors.

Super Retail Group Ltd (ASX: SUL)

Another ASX 200 dividend share that Citi has tipped as a buy is Super Retail. It is the retailer behind brands such as Rebel and Super Cheap Auto.

The broker currently has a buy rating and $14.50 price target on its shares.

Citi believes that “management’s continued investment in growing (e.g. rCX) and improving the business (e.g. analytics capability) together with the net cash balance sheet put it in good shape to navigate a more difficult consumer environment.”

In respect to dividends, the broker is forecasting fully franked dividends per share of 78 cents in FY 2023 and 72 cents in FY 2024. Based on the latest Super Retail share price of $13.31, this will mean yields of 5.85% and 5.4%, respectively.

The post Why Citi says these ASX 200 dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Here are the ASX 200 dividend shares to buy: analysts
• Are these ASX All Ords shares ready to buy at fundamentally fire sale prices?
• 5 things to watch on the ASX 200 on Friday
• I’m looking for once-in-a-decade opportunities in the stock market recovery
• ‘Attractive valuations’: 2 ASX shares to buy now before they explode

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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 Rio Tinto Ltd (ASX: RIO) share price dipped below $120 at the end of last week. Could this dip be an opportunity to buy the ASX mining share at a cheaper price after getting a look at the company’s most recent quarterly update?

A mining company doesn’t have much control over the resource price. However, how much production the company produces is also important. Rio Tinto is involved with several commodities, though iron ore and copper may be seen as the most important in the portfolio for the short to medium term.

Let’s remind ourselves about Rio Tinto’s operational performance in the first quarter of 2023.

Quarterly performance

I’m going to compare the figures against the first quarter of 2022 – the year-over-year comparisons.

Rio Tinto’s Pilbara iron ore shipments grew by 16% to 82.5 million tonnes (mt), while production increased by 11% to 79.3 mt.

Bauxite production fell 11% to 12.1 mt. Aluminium production rose 7% to 785 kt. Mined copper was unchanged year over year at 145 kt. Titanium dioxide slag production rose 4% to 285 kt. Iron Ore Company of Canada saw production rise 5% to 2.5 mt.

Overall, it seemed like a solid quarter – it was the highest ever first quarter shipments achieved for the Pilbara iron ore business.  

Promising progress on growth

The business can point to investments and growth where it’s developing projects. This is important to help support and hopefully grow the Rio Tinto share price.

It is ramping up production at its Gudai-Darri project, with the mine expected to reach its capacity in 2023.

During the quarter, it also formed a joint venture with China Baowu Steel Group after receiving regulatory approvals. Construction of the first co-designed mine has started.

It’s also making progress on the large copper project called Oyu Tolgoi in Mongolia. Construction of the conveyor to surface works continued to plan and is over 40% complete. It also awarded “major” contracts for upgrade works planned for the concentrator, with contractors mobilising to the site.

At the Simandou iron ore project in Guinea, negotiations towards the co-development of the project’s infrastructure progressed with the March signing of a shareholder agreement. This is another step towards securing the cost estimates, schedule, fiscal regime and regulatory authority approvals necessary to progress the co-development.

At the Rincon lithium project in Argentina, the development of the lithium carbonate starter plant is ongoing.

My view on the Rio Tinto share price

The reason why I wanted to cover all of those projects is that it shows Rio Tinto isn’t just sitting on its existing mines. It’s actively working on maintaining its strong iron ore position in the global market while expanding its exposure to green commodities like lithium and copper.

In the shorter term, Rio Tinto’s share price will likely be heavily influenced by the iron ore price. I think the current iron ore price of around US$120 per tonne is high enough for the ASX mining share to generate good earnings. But, there’s a chance the iron ore price could go higher as China’s economy recovers from the COVID lockdowns, as we’ve seen in other economies. But, it could also go lower, particularly if China exerts more pressure.

I like how the business is future-proofing itself by focusing on decarbonisation commodities, which is why I’d rank it near the top of a list of ASX mining shares I’d want to own. It’s quite possible that it could go lower from here, and its large size makes it harder to deliver strong gains, but scale also means it can make a lot of profit during the good times, with potentially good dividends flowing to shareholders.

For investors interested in Rio Tinto shares, I’d say it’s a buy for its copper and lithium exposure. But, a lower Rio Tinto share price would be more appealing.

The post Is the Rio Tinto share price a buy at under $120? appeared first on The Motley Fool Australia.

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More reading

• Why Bank of Queensland, Lithium Power, Piedmont Lithium, and Rio Tinto are falling
• Goldman Sachs says the Rio Tinto share price is ‘compelling value’ after Q1 update
• ASX 200 mining shares sink as iron ore price nears 2023 low
• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
• Rio Tinto share price falls despite record iron ore exports

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 Mineral Resources Ltd (ASX: MIN) share price has spoilt investors over the last five years, gaining at nearly 15 times the rate of the S&P/ASX 200 Index (ASX: XJO).

In fact, a $3,000 investment five years ago likely would have seen one boasting 169 shares in the mining giant, paying $17.69 apiece.

Today, that parcel would be worth a whopping $13,300.30. The Mineral Resources share price last traded at $78.70.

For comparison, the ASX 200 has risen 23% since April 2018.

In the meantime, the mining services provider and producer of iron ore and lithium has been a relatively consistent dividend payer. Let’s take a look.

Dividends paid to holders of Mineral Resources shares since 2018

Here are all the dividends paid to those holding Mineral Resources shares since this time five years ago:

Mineral Resources dividends’ pay date	Type	Dividend amount
March 2023	Interim	$1.20
September 2022	Final	$1
August 2021	Final	$1.75
February 2021	Interim	$1
August 2020	Final	77 cents
March 2020	Interim	23 cents
September 2019	Final	31 cents
March 2019	Interim	13 cents
September 2018	Final	40 cents
Total:		$6.79

That’s right, each Mineral Resources share has yielded $6.79 of dividends since April 2018. That means our figurative parcel has likely provided $1,147.51 of passive income.

At that rate, the total return on investment (ROI), considering both dividends and share price gains, offered by the ASX 200 miner in that time reaches an impressive 383%.

And that’s before considering the potential compounding that might have been realised had a shareholder reinvested their dividends, using the cash to buy more stock in the company.

Not to mention, all the company’s dividends have come fully franked. Thus, they might have provided additional benefits for some investors at tax time.

Right now, Mineral Resources shares offer a 2.78% dividend yield.

The post Invested $3,000 in Mineral Resources shares in 2018? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Why Mineral Resources shares are a ‘top pick’ for this broker
• Here are the top 10 ASX 200 shares today
• Here’s the latest forecast for ASX 200 lithium stocks from UBS
• Get big gains and huge dividends from these ASX 200 mining shares: brokers
• Why Core Lithium, Neuren, Norwest, and Pilbara Minerals shares are pushing higher

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 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 ASX dividend shares I’m going to write about in this article look like passive income beasts to me. I think they’d be good buys for the next decade.

There is a wide range of businesses on the ASX, but I think there are some that could demonstrate defensive earnings and therefore pay resilient dividends.

Some parts of the economy seem to be rapidly changing, while others may be fairly predictable for the long term. That’s why I like the look of these two names.

Duxton Water Ltd (ASX: D2O)

The idea behind Duxton Water is that it is building a portfolio of permanent water entitlements with the aim it can then provide “flexible water supply solutions” to Australian farmers. It offers long-term entitlement leases, forward allocation contracts, and spot allocation supply.

I think water entitlements have a promising long-term future – water is obviously key for farmers. Growth (inflation) of food prices over time can further enable higher water prices.

The business has guided that the 2023 interim dividend will be 3.5 cents per share, the 2023 final dividend will be 3.6 cents per share, and the 2024 interim dividend could be 3.7 cents per share.

The ASX dividend share has shown a desire to grow the dividend payment for shareholders, which is promising for the next ten years for potential income growth.

At 31 March 2023, the business had a pre-tax net asset value (NAV) of $2.13 per share. The Duxton Water share price is currently $1.72 a share, a 19% discount to this, which is quite hefty. The company is currently doing a share buyback, which is also helping grow shareholder value.

I think the business can keep growing the asset value and dividends for investors over time. The next two dividends to be announced are expected to total 6.9 cents per share, which would be a grossed-up dividend yield of 5.7%.

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a large, global pathology business.

The ASX healthcare share has grown its annual dividend per share each year since 2013, so it has already built a dividend growth streak of around a decade and I think it can continue growing the payment to shareholders for a number of years to come.

Sonic Healthcare actually has a stated progressive dividend policy, so it wants to grow its dividend each year for investors.

Over the last few years, it has benefited from the high level of COVID-19 testing that it carried out. Even in the first half of FY23, it was still seeing millions of dollars of COVID-19 testing revenue. That result saw the FY23 half-year dividend increase by 5%.

In the long term, I think the business will benefit from the return to a normalised level of testing for its core business, while expanding into new pathology services, including through its AI partnership project.

The company continues to make acquisitions, which I think is promising for expanding the scale of its business.

The post Passive income beasts: 2 ASX dividend shares I’d buy for the next decade appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 shares going gangbusters in high inflation (and what they have in common)
• How much do you need to invest to give up work and live only off dividend income?
• 4 ASX All Ords shares trading ex-dividend next week
• Passive income: How much to invest to get $800 per month
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison has positions in Duxton Water. 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 Sonic Healthcare. 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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There are a number of ASX blue chip shares for investors to choose from, but two of the strongest to consider are Commonwealth Bank of Australia (ASX: CBA) shares and Telstra Group Ltd (ASX: TLS) shares.

CBA is the largest ASX bank share, while Telstra is the largest ASX telco share. Both are leaders in their respective fields in Australia with the largest market shares.

But which of these heavyweights is the best to buy for potentially more reliable returns?

Dividends

Firstly, it’s important to say that no return on the share market can be truly ‘safe’. Share prices move every trading day with different buyers and sellers. Sometimes investors become nervous and sell their shares for a discounted price.

Dividends are paid from company profits and can be a bit more consistent than the share price because it is the boards of the companies that decide the level of the payments.

Let’s look at the current expectations for the possible dividend yields for the two ASX blue chip shares.

Commsec forecasts, which are provided by independent sources, suggest that CBA shares could pay a grossed-up dividend yield of 6.3% with a possible annual dividend per share of $4.40. Telstra shares could pay a grossed-up dividend yield of 5.7% with a potential annual dividend per share of 17 cents per share.

But, there’s more to the dividend than just the current financial year for these ASX blue chip shares. Knowing where the dividend is going could be important too, considering how important the dividend return can be for shareholders.

By FY25, CBA could pay an annual dividend share of $4.57, which would be a grossed-up dividend yield of 6.5%. Telstra could pay an annual dividend per share of 19 cents per share in FY25, which would translate into a grossed-up dividend yield of 6.3%.

So, over the next couple of years, CBA might pay a larger dividend yield. However, Telstra’s dividend could grow at a faster pace and narrow the gap between the yields over time.

Which is the better ASX blue chip share?

For me, Telstra has a key sector advantage over CBA. The ASX bank share receives good cash flow from people and businesses that pay cash flow monthly.

Telstra is the leader in the telco space, it has a strong position with its 5G network. There are only a few real competitors for Telstra such as TPG Telecom Ltd (ASX: TPG) — which includes Vodafone Australia — and Singapore-owned Optus.

But with CBA, there are many competitors. On the ASX alone, there are numerous players all offering a loan just like CBA such as Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), Suncorp Group Ltd (ASX: SUN), and MyState Limited (ASX: MYS).  

Indeed, there is so much competition in the banking sector that it seems to be pushing down the lending margins. Meanwhile, Telstra is expecting higher profit margins with its T25 strategy.

I’d choose Telstra shares as my preferred ASX blue-chip share. I think there is going to be appealing demand growth in telco services thanks to an increase in video streaming, other services, and new technologies that will need a data connection such as automated cars.

The final factor that makes me pick Telstra is that it’s diversifying its earnings, opening up new growth streams with Telstra’s digital healthcare division, and the Asian growth with its recent Digicel Pacific acquisition.

The post Better ASX blue-chip share to buy for safe returns: CBA vs. Telstra appeared first on The Motley Fool Australia.

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More reading

• Building wealth through dividend investing: 5 ASX shares to boost your income
• Own Telstra shares? Here are 3 things you might have missed in the last 30 days
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here’s why CBA shares have been making headlines this week
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?

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 positions in and has recommended Bendigo And Adelaide Bank, Macquarie Group, and Telstra Group. The Motley Fool Australia has recommended Tpg Telecom and Westpac Banking. 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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Bank of Queensland Limited (ASX: BOQ) shares fell 6% last week. That’s not exactly a huge plunge, but the bank’s share price is now down 17% from its 2023 high in February. So could the ASX bank share be worth buying?

It was a very interesting result considering everything that’s happened over the past year with strong inflation and interest rate hikes.

Despite common thinking that higher interest rates could be a boost for the bank’s profitability, the statutory net profit after tax (NPAT) took a huge hit.

Let’s have a look at some of the financial highlights that may have affected the BOQ share price.

Earnings recap

Bank of Queensland reported that its cash earnings after tax fell 4% year over year to $256 million. But its statutory NPAT sank 98% to $4 million.

The regional bank reported housing loan growth of $0.2 billion compared to the second half of FY22, while business loan growth was $0.5 billion.

The net interest margin (NIM) improved 4 basis points to 1.79%, compared to the FY22 second half.

However, the operating expenses increased by 7% year over year, which was a major factor in the fall of the cash earnings. The bank put this down to higher inflation and other costs including higher technology expenses and costs for “proactive customer contact, technology, and cybersecurity”.

It also reported a loan impairment expense of $34 million, compared to a credit of $15 million in the first half of FY22. This was because it increased its collective provision, reflecting uncertainty about future economic impacts after inflation, interest rate pressure, and house price declines.

The statutory profit took a $260 million hit with a $60 million provision for the ‘integrated risk program’ provision and a $200 million impairment of goodwill.

BOQ warned that it is possible that additional matters are identified as a result of further analysis or regulator requirements that could increase the scope and cost of the integrated risk program.

BOQ’s interim dividend payment was 20 cents per share, which represented a 9% decline compared to the prior corresponding period.

Is the BOQ share price a buy?

I think that the benefits of increased lending profitability, helping the NIM, may have peaked.

In the ASX bank share’s outlook comments, BOQ noted 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”.

The bank is working on improving its technology, reducing duplication and levering the automation of processes, which should make it a more efficient bank and, hopefully, enable more lending. That should be positive.

Using the estimates on Commsec, BOQ could generate 62.9 cents of earnings per share (EPS) in FY24. That would put the current BOQ share price at under 10x FY24’s projected earnings. It could also pay a grossed-up dividend yield of 9.9% in that year. Those are appealing statistics.

This is the lowest the BOQ share price has been since 2020, so it could be a medium-term opportunity. However, it doesn’t strike me as the highest-quality ASX bank share, so I’m not sure how much long-term growth it will be able to achieve. I’m not looking to buy it for my own portfolio because of the lack of longer-term compounding potential.

The post Are Bank of Queensland shares a buy following the latest results? appeared first on The Motley Fool Australia.

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More reading

• Why Bank of Queensland, Lithium Power, Piedmont Lithium, and Rio Tinto are falling
• Why Bank of Queensland, Link, Silk Laser, and Zip shares are pushing higher
• Everything you need to know about the latest Bank of Queensland dividend
• Bank of Queensland share price lifts despite plunging profits
• 5 things to watch on the ASX 200 on Thursday

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 BHP Group Ltd (ASX: BHP) share price dropped around 5% in the final two trading days of last week and it’s down around 10% from the end of January 2023 to now. So is the S&P/ASX 200 Index (ASX: XJO) mining share a good buying opportunity at its current price?

As the ASX’s biggest company, what happens with the business can have an outsized impact on the ASX and perhaps even Australia.

As with a number of the ASX’s blue chips, the main insights we get into the company’s performance are through its half-year results, full-year results, and perhaps annual general meetings (AGM).

But with BHP, and other ASX 200 mining shares, investors also get operational mining updates every three months.  

We heard last week about BHP’s operational performance for the three months to 31 March 2023.

The numbers

In that quarterly update, copper production grew 10% year over year to 405.9 kt. Iron ore production was flat at 59.8 mt. Metallurgical coal production was down 13% to 6.9 mt. Energy coal production increased 53% to 3.9 mt. At the same time, nickel production went up 5% to 19.6 kt.

While the business achieved strong numbers for iron, copper, and nickel, the quarter also included the death of a BHP worker who died in a rail incident in February.

Progress with the acquisition

BHP noted that shareholders of copper miner OZ Minerals Limited (ASX: OZL) recently voted “overwhelmingly” in favour of BHP’s takeover offer.

The management of BHP is now focused on integrating the OZ Minerals business as it builds an “internationally competitive copper business in South Australia and incorporating West Musgrave into its nickel options in Western Australia”.

Searching for more growth

The comments made by BHP CEO Mike Henry were promising regarding BHP’s expansion investment efforts and the outlook for resources from both China and India:

We are pursuing growth options in copper and nickel globally – we aim to have up to 10 drill rigs on the ground at Oak Dam in South Australia in the next few months and have seen promising results from a potential new copper prospect in Arizona. In Canada, we signed $260 million (CAD) in new contracts with Indigenous suppliers in March, and construction of the Jansen potash project is on track.

Recent engagements with customers in China and India have reaffirmed our positive outlook for commodity demand, with China’s economic rebound and solid momentum in India’s steelmaking growth helping to offset the impact of slowing growth in the US, Japan, and Europe.

Is the BHP share price a buy?

BHP has proven itself as one of the best in the world at what it does. The ASX 200 mining share has made huge profits over the last few years and paid big dividends.

It’s tricky to say what the iron ore price will do next. Chinese entities obviously want to pay a lower price, but it could rise in the short term if the Chinese economy recovers strongly from COVID-19 impacts.

As such a large business, it’s harder for a new project or acquisition to ‘move the needle’ for BHP. It’s hard for the business to deliver outperformance when it’s so big.

I do like the growing exposure to nickel and copper, while potash could be a useful addition once the Canadian Jansen project is operational.

The BHP share price has dropped 5% since my bearish view on the company. It’s a bit better now, but I’d prefer it to be cheaper before saying it’s a good price to buy in at — perhaps under $40. But, due to its size, I think there are other ASX mining companies that could be better opportunities.

The post Are BHP shares a buy following the ASX 200 miner’s latest update? appeared first on The Motley Fool Australia.

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• What is this broker saying about the BHP share price following the miner’s update?
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• Passive income plan: I’d invest $100 a week in ASX 200 shares to earn $7,500 of annual dividends

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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There are plenty of options for investors to choose from in the ASX 200 banking sector. But as far as analysts at Citi are concerned, investors should be loading up on ANZ Group Holdings Ltd (ASX: ANZ) shares.

The broker recently named ANZ as its top pick in the sector and sees some big returns ahead for investors.

Why ANZ shares?

According to the note, the broker believes that ANZ shares are the best option in the sector right now due to the bank’s stronger than expected performance in FY 2023 and its institutional business.

In respect to its performance, the broker believes that ANZ’s first-quarter update suggests that it is performing above the market’s expectations. It said:

ANZ’s 1Q23 disclosures exhibited strong trends in both lending growth and asset quality. No earnings disclosure was provided, but we think that after backing out RWA movements from capital, it comfortably implies above market earnings.

A key driver of this could be its institutional business, which the broker believes is performing particularly well in the current environment. It adds:

Institutional lending momentum continued and accelerated in the Dec qtr, which we expect was driven by more available liquidity and pricing vs debt markets. ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

Big returns

The note reveals that Citi has a buy rating and $27.25 price target on the bank’s shares.

Based on the current ANZ share price of $24.33, this implies potential upside of 12% over the next 12 months.

And with Citi forecasting fully franked dividends of $1.66 per share in FY 2023, which equates to a 6.8% yield, the total return on offer with ANZ shares stretches to almost 19%.

All in all, this could make it worth considering ANZ if you’re looking for banking sector exposure after recent weakness.

The post Why ANZ shares are Citi’s ‘top pick’ in the ASX 200 banking sector appeared first on The Motley Fool Australia.

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• Passive income plan: I’d invest $100 a week in ASX 200 shares to earn $7,500 of annual dividends
• These are the best ASX 200 bank shares to buy: brokers
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• Here’s the ANZ dividend forecast through to 2025
• Passive income seekers: Experts say these ASX dividend shares 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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There are a lot of blue chip ASX 200 shares to choose from on the Australian share market.

To narrow things down, I have picked out a couple of blockbusters that brokers are particularly positive on.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

This kitchen appliance manufacturer could be an ASX 200 blue chip share to buy.

That’s the view of analysts at Goldman Sachs, who believe that Breville is well-placed for growth over the coming years. In fact, the broker is forecasting double-digit earnings growth despite the tough economic environment. It explained:

[We] expect BRG will continue to execute on GP margin expansion. We remain supportive of BRG’s characteristics as a high quality name in a secular growth category and believe they will be able to demonstrate revenue and EBIT CAGR of 7.6% and 11.1% over FY22-25.

Goldman has a buy rating and $22.70 price target on its shares. This compares to the latest Breville share price of $20.30.

Goodman Group (ASX: GMG)

Another ASX 200 blue chip share to buy could be Goodman. It is a leading industrial property company with a world class portfolio of assets spanning the globe.

Thanks to the success of its integrated own+develop+manage strategy, it has delivered strong returns to investors over the last decade.

The good news is that analysts at Citi believe that this strong form can continue. It commented:

GMG’s 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. […] We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

Citi has a buy rating and $24.00 price target on Goodman’s shares. This compares to the latest Goodman share price of $19.10.

The post Strengthen your ASX portfolio with these blue chip blockbusters: analysts appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares this week
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• These are the 10 most shorted ASX shares this 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 recommended Goodman Group. 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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