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Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors and it isn’t hard to see why.

Over the last three decades, Australia’s largest bank has paid billions and billions of dollars in dividends to its shareholders.

The good news is that this is unlikely to change any time soon, with analysts forecasting bigger and bigger dividends over the coming years.

With that in mind, let’s take a look to see what it would take to generate a $500 monthly income from CBA’s shares.

How to make $500 monthly income from CBA shares

As a reminder, in FY 2022, the banking giant paid its shareholders a fully franked $3.85 per share dividend.

According to a note out of Goldman Sachs, its analysts expect this to increase to $4.68 per share in FY 2023. After which, the broker expects further increases to $4.84 per share in FY 2024 and then $4.91 per share in FY 2025.

If you wanted to generate $500 of monthly income from CBA shares, you would need to receive $6,000 of dividends each year and then distribute them accordingly.

In order to receive $6,000 of dividends in FY 2023, you would need to own 1,282 shares based on Goldman’s dividend estimate.

That’s no small purchase, unfortunately. With the CBA share price currently fetching $96.95, this would mean an investment of almost $125,000.

But it sure could be worth it if you have those funds at your disposal. Based on Goldman’s estimates, your investment would then generate $6,200 worth of dividends in FY 2024 and then almost $6,300 the following year.

That’s a total of $18,500 of dividends in the space of three years.

And if its shares were to bounce back from current levels to hit its recent high of $111.43, your $125,000 investment would grow to be worth approximately $143,000.

The post How to make $500 of monthly income from CBA shares appeared first on The Motley Fool Australia.

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More reading

• ASX big four bank shares close the day ahead as financial fears linger
• Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick
• Online trading in these ASX 200 bank stocks is surging. Here’s why
• Which ASX 200 big four bank share could be the safest to hold?
• ASX 200 bank shares shrug off global banking turmoil to leap higher

Fetching Disclosure…

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Brickworks Limited (ASX: BKW) just announced its FY23 half-year result which included ongoing growth for its underlying value and underlying profit. The report revealed that the S&P/ASX 200 Index (ASX: XJO) dividend share could be materially undervalued.

The business reported a number of impressive financial metrics considering the widespread uncertainty over the past year.

It said that total revenue increased by 13% to $584 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 25% to $607 million and underlying net profit after tax (NPAT) went up 24% to $410 million.

The Brickworks dividend was increased by the board to 23 cents per share, a rise of 5%.

Building products EBITDA was largely steady, with an uplift in North America offset by a “modest fall” in Australia.

Brickworks reported that properties within the industrial joint venture trust continue to be completed and property values have increased thanks to strong demand and rent potential.

Now I will look at two aspects of the business – is it good value and an effective ASX 200 dividend share?

Is the Brickworks share price significantly undervalued?

Brickworks is very open about how much the undervalued assets within its business are worth.

The ASX 200 dividend share has four different asset groups – listed investments, the property trust net tangible assets (NTA), the building products NTA and development land. It also has net debt.

Most of the value of the listed investments segment is represented by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, the old investment conglomerate. It also owns FBR Ltd (ASX: FBR) shares, which is a business working on a bricklaying robotic truck. This segment had a worth of $2.73 billion on 31 January 2023.

Its property trusts are industrial properties that it owns half of, along with Goodman Group (ASX: GMG). These industrial properties are benefiting from higher revaluations, with strong demand and fast growth of rental potential. This provides a stable asset base for Brickworks, and growing rental profit. The property trust NTA is $2.24 billion for Brickworks.

Brickworks has a building products NTA of $577 million, which includes both the Australian building products business and the North American building products business.

It has three large parcels of land which have a combined “as is” market value of $461 million. This land has been identified for development and is planned for sale into the property trust.

Finally, it has net debt of $595 million.

Therefore, Brickworks revealed that it had a total inferred asset value of $5.4 billion at 31 January, which translates into $35.56 per share.

At the current Brickworks share price, that’s a discount of around 33%. I’m not suggesting that Brickworks shares should trade at $35. But, with Brickworks being a long-term investor in the Soul Pattinson shares and the industrial properties, I believe it’s worthwhile taking a very long-term view of the ASX 200 dividend share and its appealing dividend payouts.

Dividend credentials

This company’s normal dividend has been maintained or grown every year since 1976. That’s 47 years since the last decrease.

The result included another 5% increase in the dividend. That’s a solid boost.

Brickworks’ leader, Lindsay Partridge, said today:

We are proud of our long history of dividend growth, and the stability this provides to our shareholders.

Putting the last two declared dividends together, the business has a current grossed-up dividend yield of 3.8%.

While it doesn’t have the biggest dividend around, I think Brickworks represents good value for the long term, and the growing dividend is attractive in this uncertain climate.

The post Is this the cheapest ASX 200 dividend share to buy today? appeared first on The Motley Fool Australia.

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More reading

• Why Brickworks, Healius, Mincor, and Northern Star shares are rising today
• Brickworks share price higher on record half-year profit
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares where the dividends don’t stop
• $1,000 in monthly passive income? Buy 18,462 shares of this ASX 200 stock

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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If you’re in the process of building a retirement portfolio or adding to one, it may be hard to decide which ASX shares to buy given the recent market volatility.

The good news is that exchange traded funds (ETFs) are here to make your life easier.

An ETF is a diversified collection of assets that combines the benefits of both managed funds and ASX shares and offers investors a simple and cost-effective way to achieve diversification in their investment portfolios.

Among the many ETFs options out there to choose from is one in particular that could be suitable for investors seeking to earn income in retirement. It is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Why buy this ETF for a retirement portfolio?

Rather than picking some ASX dividend shares to buy, you could just buy the Vanguard Australian Shares High Yield ETF for your retirement portfolio.

This ETF aims to provide investors with access to a portfolio of ASX shares that have higher than average forecast dividends. Vanguard explains:

VHY is built smarter. Unlike most high yield equity ETFs, VHY uses forward looking broker estimates to determine which securities go in the fund. This ensures VHY can look past historical information and capture the securities that are forecast to pay a higher yield.

There are a number of high quality ASX 200 shares included in the ETF. This includes income investor favourites such as BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Wesfarmers Ltd (ASX: WES).

At present, the ETF provides investors with a forecast dividend yield of 5.4%. This is well ahead of the Australian share market historical average of approximately 4%.

The post Buy this ASX ETF for retirement income appeared first on The Motley Fool Australia.

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More reading

• Is a dividend ETF really better than an ASX index fund for income?
• These ETFs could be top options for buy and hold investors
• Income investors could get very big dividends from these ASX ETFs
• Buy this ASX ETF for big retirement income
• Dividend dessert: Which ASX ETFs are the sweetest for a 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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 Sigma Healthcare Ltd (ASX: SIG) share price is down 1.63% after the company released its FY23 full-year results today.

Meantime, the S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.59%, largely due to the United States Federal Reserve’s latest interest rate rise.

Let’s see what the pharmaceutical distributor, wholesaler, and franchisor revealed to the ASX today.

Sigma Healthcare share price down but EBITDA up 65%

Sigma Healthcare reported a return to profit in FY23 with “capacity for growth” from here.

The highlights for the 12 months ending 31 January 2023 are:

• Net revenue of $3.66 billion, up 6.2% on the prior corresponding period (pcp) of FY22
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $49.6 million, up 65.3% pcp
• Net profit after tax (NPAT) of $1.8 million, up from a $7.2 million loss pcp
• Net debt of $67 million, down 55% pcp
• Final fully franked dividend of 0.5 cents, payable on 18 April.

What else happened in FY23?

In a statement, Sigma said it had simplified its business operations and processes, stabilised its ERP [enterprise resources planning] systems, and completed its DC [data centre] infrastructure rebuild.

Sigma reduced its five pharmacy franchise brands to two — Amcal and Discount Drug Stores — and commenced phasing out the other brands, which include Guardian.

In a statement, the company said:

Whilst this may lead to some disruption in the current year, the merger of brands will provide critical mass to drive customer engagement and support our longer-term strategy.

It referred to a renewed strategy and leadership team “to deliver a sustainable business” moving forward.

What did management say?

Sigma CEO Vikesh Ramsunder said:

Following 12-months in the role, I am pleased to report that we have returned to profit, strengthened our balance sheet and made significant progress in the transformation of the company.

We now have a much stronger operational platform to improve service delivery to customers, which underpins our pursuit of growth opportunities and will incrementally deliver improved financial outcomes for shareholders.

The sale of Sigma’s unprofitable CHS Hospital distribution business for $44 million will be finalised on 31 March, subject to regulatory approval.

Ramsunder commented:

This is the fourth transaction as part of our strategy to simplify our business and focus on our core community pharmacy operations.

The sale will release $35 million to $40 million of cash for the business.

Sigma will rename its CHS business ‘Sigma Healthcare Logistics’ and pursue opportunities in third-party logistics from here.

What’s next?

Ramsunder stopped short of providing specific FY24 guidance. But he said operational improvements and a strengthened balance sheet should lead to reported EBIT of between $26 million and $31 million.

The board has also approved a new dividend payout policy of between 50% and 60% of reported NPAT.

Sigma Healthcare share price snapshot

The Sigma Healthcare share price is up 10.5% over the past 12 months.

This compares to a 6.6% fall in ASX All Ords shares and a 4% climb in the S&P/ASX 200 Health Care Index (ASX: XHJ).

The post Sigma Healthcare share price falls despite company’s return to profit appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords tech shares rebounding strongly from the SVB fallout (and 2 still tumbling)

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Pilbara Minerals Ltd (ASX: PLS) share price is 3% in the red today.

However, in earlier trade, Pilbara shares tumbled 6.7% from $3.60 to $3.36 before recovering some of its losses. Pilbara shares are currently trading at $3.49, at last look.

Let’s take a look at what could be impacting the Pilbara Minerals share price today.

Why are Pilbara shares falling?

Pilbara shares may be tumbling today, but it is not the only ASX lithium share on the decline. Other lithium explorers falling today include Core Lithium Ltd (ASX: CXO), down 3.17%, and Piedmont Lithium Inc (ASX: PLL), plunging 6.67%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.86% today.

Lithium shares including Pilbara appear to be falling amid reports on a falling lithium price.

Lithium carbonate (99.5% battery grade) has descended 2.37% in a day to 288,000 Chinese Yen (US$41.9), Shanghai Metals Market data shows.

In the past four months, lithium prices have been cut in half, a report out of Bloomberg stated.

Meanwhile, in news out of Chile, all new lithium projects will now need to use a new lithium extraction method to reduce water losses.

Bloomberg reported this government measure may risk future supply from the nation, despite its huge reserves of lithium. Chile mining Minister Marcela Hernando said:

For us, any future development has to done with direct extraction.

Wider market turmoil could also be impacting sentiment in ASX lithium shares today. As my Foolish colleague Bernd reported this morning, the US Federal Reserve lifted rates by 0.25% overnight.

Commenting on the rate rise, Fed chair Jerome Powell said:

It is important that we sustain that confidence with our actions as well as our words.

We are committed to restoring price stability, and all of the evidence says that the public has confidence that we will do so.

The S&P 500 Index (SP: .INX) fell 1.65% on US markets on Wednesday, with the S&P/ASX 200 Index (ASX: XJO) also sliding today, down 0.55%.

US lithium giant Albermarle Corporation (NYSE: ALB) descended 3.06% overnight, however, in after-hours trade it rose 0.25%. Similarly, Livent Corp (NYSE: LTHM) dropped 2.87% on the New York Stock Exchange on Wednesday, but in after-hours trade lifted 0.89% into the green.

Pilbara share price snapshot

The Pilbara Minerals share price has lifted 12% in the last year. However, it has tumbled by 18% in the last month.

Pilbara has a market capitalisation of nearly $10.5 billion based on the current share price.

The post Why is the Pilbara Minerals share price sliding today? appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 lithium shares? You’ll want to read this
• Why are ASX lithium shares sinking today?
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why New Hope, Pilbara Minerals, Westpac, and Zip shares are pushing higher

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.

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Looking for a source of passive income? ASX dividend shares are one of the best places to go.

Most shares listed on the ASX will provide you with income. But this doesn’t just come in the form of dividends. So today, let’s discuss three ways ASX shares can pay you a second income stream.

3 ways you can get paid passive income from ASX shares

Dividends

Let’s get the obvious one out of the way. Most large shares on the ASX pay their shareholders dividends. These usually come every six months. Dividends are a portion of a company’s profits that its management decides to give to shareholders.

A company’s dividend is never guaranteed, and companies decide how much each payment will be every six months (or whether there will be a payment at all). But the best ASX shares tend to raise their dividend payments over time too, so if you find a winner, it can pay you passive income for your entire life.

Franking credits

The oft-overlooked companion of dividend payments, franking credits provide income to investors as well. Now, most investors who haven’t retired will only be able to access this income in the form of the tax credits that franking provides. In essence, franking allows most investors to deduct their value from their other income come tax time.

So while you won’t see this passive income in your bank account from the franking itself, you will get a bigger tax return than you otherwise would. But for retirees who have a low level of taxable income, it’s possible to receive an actual cash refund from your franking.

Capital gains

This one is an interesting concept. Good quality shares go up most of the time. That means it’s possible to occasionally sell some and profit from the passive income this provides, while still maintaining your capital base.

To illustrate, a broad-based ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) has returned a historical average of 8.95% per annum since its inception in 2009 (including dividend returns).

If an investor sold 2% of their Vanguard investment every year, it has the potential of providing a meaningful income stream without erasing all of the gains the investment is producing,

The post Here are 3 ways to get passive income from ASX shares appeared first on The Motley Fool Australia.

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More reading

• Is a dividend ETF really better than an ASX index fund for income?
• Want high income right now? These are the ASX dividend shares I would buy
• I bought these two ASX shares last week, here’s why
• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF
• 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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 could be significant value on offer with the Aristocrat Leisure Limited (ASX: ALL) share price at current levels.

That’s the view of analysts at Goldman Sachs, which have just reiterated their bullish view on the ASX 200 gaming technology share following its investor round table event.

What is Goldman saying about this ASX 200 share?

According to the note, the broker has retained its buy rating and $42.80 price target on the company’s shares.

Based on where this ASX 200 share is currently trading, this implies potential upside of 18.5% for investors over the next 12 months.

And with Goldman expecting a 2.1% dividend yield from its shares, the total potential return stretches beyond 20%.

Aristocrat has a ‘significantly strong’ outlook

Goldman is bullish on this ASX 200 share due to its belief that it has a very positive outlook. This is for both Aristocrat’s core poker machine and digital businesses, as well as its fledging Anaxi (iGaming) business.

In response to the investor round table, the broker commented:

Overall, ALL’s progress remains on track with expectations with Australia gaming noted to be weak (GSe Australia Segment profit for 1H23e expected -28% vs. pcp). We view ALL as strategically the most diversified amongst our gaming coverage, holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now the launch into the growing iGaming market. While short-term headwinds persist in the form of supply chain, spend for longer term growth etc., ALL’s outlook and iGaming opportunity remain significantly strong, in our view. We are Buy rated on ALL.

All in all, the broker believes this is a top growth share for investors to buy right now.

The post This ASX 200 growth share’s outlook is ‘significantly strong’: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Buy these ASX growth shares now: analysts
• Buy and hold these ASX 200 shares: brokers
• 2 ASX growth shares to buy: Goldman Sachs
• How I’d invest $20,000 in ASX 200 shares to aim for a million

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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S&P/ASX 200 Index (ASX: XJO) lithium shares were among the best performers on the index in 2022.

Well, at least up through November. That’s when lithium prices hit all-time highs, having leapt more than 1,250% in just two years.

But 2023 has seen lithium stocks come back to earth as the price for the battery-critical metal they dig from that earth has tumbled.

Today, the leading ASX 200 lithium shares are again underperforming the benchmark index.

The ASX 200 is down 0.7% in afternoon trade, following US markets lower in the wake of the latest interest rate increase from the US Fed.

Here’s how the top lithium stocks are tracking at this same time:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 5.1%
• Core Lithium Ltd (ASX: CXO) shares are down 5.1%
• Allkem Ltd (ASX: AKE) shares are down 3.8%
• IGO Ltd (ASX: IGO) shares are down 1.7%
• Mineral Resources Ltd (ASX: MIN) shares are down 2.5%

So, why are ASX 200 lithium shares under extra pressure today?

Why are ASX 200 lithium shares falling today?

Most of the selling action looks to be related to concerns that the lithium price has further to fall.

And this comes after the price for the ‘white gold’ has already halved since November’s record highs, with lithium currently trading at the lowest levels in 14 months.

That’s cutting into the profitability of ASX 200 lithium shares and is giving some investors pause.

As a BloombergNEF report noted, “Lithium carbonate prices saw a greater rate of decline as greater supply growth outlook for the year coincides with weaker demand sentiment.”

Supply and demand dynamics

On the demand side, 2022 saw Chinese battery manufacturers ramp up production to take advantage of government subsidies, which have now been wound down. China’s government is also ending subsidies for EV purchases. The combination is expected to see a material reduction in lithium demand.

On the supply side, soaring lithium prices encouraged a wave of resource explorers to turn their sights on the battery-critical metal. All while ASX 200 lithium shares have moved to expand their own projects.

A number of new, large-scale projects are coming online over the coming months, including Core Lithium’s Finniss Project in the Northern Territory.

That leads Nio Inc’s CEO, William Li to forecast that the lithium price has further to fall, believing the price will “quite likely” drop to around 200,000 yuan or less in the fourth quarter of 2023.

That’s down from the recent price of 295,000 yuan per tonne.

“Starting from this year, we are going to see more output from upstream. We believe demand probably is not going to be that strong compared with the past,” Li said (quoted by Bloomberg).

If the battery-critical metal does indeed face another 30% plus slide by Q4 2023, ASX 200 lithium shares will likely continue to come under pressure.

Longer-term, any retrace in the big lithium miners’ share prices could prove to be a profitable entry point, with global lithium demand still forecast to continue growing strongly over the next decade.

The post Investing in ASX 200 lithium shares? You’ll want to read this appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares sinking today?
• Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today
• Core Lithium share price tumbles 4% on milestone sales agreement
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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.

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Are you looking for ASX 200 dividend shares to buy for a second income? If you are, then you may want to check out the two listed below that have been named as buys.

Here’s why they could help you in your second income quest:

Harvey Norman Holdings Limited (ASX: HVN)

Goldman Sachs believes that recent weakness in the Harvey Norman share price could have created a buying opportunity for investors. Especially for those searching for big dividend yields!

The broker believes the market is undervaluing Harvey Norman and highlights that its shares are trading at just 6x FY 2024 estimated earnings ex-property. This is notably cheaper than its rivals.

Goldman currently has a buy rating and $4.70 price target on the retailer’s shares.

As for dividends, the broker is expecting fully franked dividends per share of 36 cents in FY 2023 and then 30 cents in FY 2024. Based on the current Harvey Norman share price of $3.71, this will mean yields of 9.7% and 8.1%, respectively.

Macquarie Group Ltd (ASX: MQG)

Morgans is a fan of this investment bank and is tipping it as a buy.

The broker believes Macquarie is well-placed for the long term thanks thanks to its “exposure to long-term structural growth areas such as infrastructure and renewables.” It also highlights its potential to “benefit from recent market volatility through its trading businesses.”

In respect to dividends, the broker is expecting Macquarie to pay partially franked dividends of $8.28 per share in FY 2023 and $7.64 per share in FY 2024. Based on the current Macquarie share price of $171.32, this implies yields of 4.8% and 4.45%, respectively.

Morgans has an add rating and $222.80 price target on Macquarie’s shares.

The post Buy these ASX 200 dividend shares for a second income: analysts appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares I’d buy if there is panic selling
• $72m and counting: ASX 200 director’s massive share buy-up continues
• Want high income right now? These are the ASX dividend shares I would buy
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 director has bought $50m worth of shares in a fortnight?

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 Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Macquarie 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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ASX lithium shares are tumbling on the market today.

Lithium explorers in the red today include:

• Core Lithium Ltd (ASX: CXO), sliding 5%
• Pilbara Minerals Ltd (ASX: PLS), falling 5%
• Sayona Mining Ltd (ASX: SYA), descending 2.5%
• Lake Resources N.L. (ASX: LKE), plummeting 5.56%
• Mineral Resources Ltd (ASX: MIN), down 2.44%
• Piedmont Lithium Inc (ASX: PLL), tumbling 6.67%
• Allkem Ltd (ASX: AKE), dropping 3.74%

Let’s take a look at what is going on with ASX lithium shares.

What’s happening?

Lithium shares appear to be tumbling today amid a decline in the lithium price and wider market turmoil.

The lithium carbonate price in China has descended 30% in a month to 290,000 yuan (US$42.147), Caixin Global reported today.

This reflects lower Electric Vehicle (EV) sales in China, leading to lower demand for lithium in EV batteries.

Lithium hydroxide is also down 1.29% to US$68,600 on the London Metal Exchange.

Commenting on the lithium price in a research report this morning, ANZ economist Madeline Dunk said:

Lithium prices remained under pressure despite Chile requiring all new projects to use an untried process in a bid to reduce water losses.

The requirement may constrain future production from the world’s biggest holder of reserves just as demand is picking up.

Lithium shares in the United States also descended yesterday, with Sociedad Quimica y Minera de Chile (NYSE: SQM) sliding 1.04%, and Livent Corp (NYSE: LTHM) shares descending 2.87%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is struggling overall amid wider market falls. The S&P/ASX 200 (ASX: XJO) is down 0.74%.

This follows the S&P 500 Index (SP: .INX) tumbling 1.65% overnight amid news that the US Federal Reserve will raise rates by 25 basis points.

Meanwhile, Core Lithium advised the market today it has found a buyer for its maiden lithium production. Spodumene concentrate produced at the company’s Finniss Lithium Operation in the Northern Territory will be sold to long-term customer Sichuan Yahua.

The post Why are ASX lithium shares sinking today? appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today
• Core Lithium share price tumbles 4% on milestone sales agreement
• What was with ASX lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today

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.

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