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If you’re looking to boost your income with some dividend shares, then you may want to consider the ones listed below.

Both ASX dividend shares are rated as buys and expected to provide investors with big yields in the near term.

Here’s what you need to know about them:

Pilbara Minerals Ltd (ASX: PLS)

If you don’t mind investing in the resources sector, then the first ASX dividend share to consider is Pilbara Minerals.

Last month, this lithium miner delighted its shareholders by declaring a maiden interim dividend. The company made the move in response to the mountains of cash it is generating from its lithium.

And while opinion is divided on where lithium prices are going from here, the team at Macquarie expects them to be strong enough to allow Pilbara Minerals to pay some big dividends in the coming years.

Its analysts are expecting the miner to reward shareholders with a 45 cents per share dividend in FY 2023 and a 34 cents per share dividend in FY 2024. Based on the latest Pilbara Minerals share price of $4.16, this will mean yields of 10.8% and 8.2%, respectively.

Macquarie has an outperform rating and $7.70 price target on the company’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share to consider buying is insurance giant QBE.

Morgans is a big fan of the company and has it on its best ideas list. The broker was pleased with QBE’s “very strong FY22 performance versus market expectations” and expects more of the same in FY 2023. This is thanks to key tailwinds of “premium rate increases and higher investment income which remain supportive of earnings growth.”

In respect to dividends, the broker is expecting an 83 cents per share dividend in FY 2023 and then a 94 cents per share dividend in FY 2024. Based on the latest QBE share price of $15.27, this equates to yields of 5.4% and 6.2%, respectively.

Morgans has an add rating and $16.96 price target on this insurance giant’s shares.

The post Buy these ASX 200 shares now for big dividend yields: brokers appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals shares: Bull vs. Bear
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie tips 100% total return from Pilbara Minerals shares
• Why you need defensive ASX shares in your portfolio right now: WAM
• Big yields and even bigger gains lie ahead for these ASX 200 shares: analysts

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 is a school of thought that the entertainment industry is one that can remain resilient through economic downturns.

The idea is that consumers will stay home more and watch television or streaming services, or gamble as a distraction from a troubled world.

After ten consecutive months of interest rate rises, this theory is about to get a sore workout in Australia.

Here are two ASX shares that fit the bill that one expert is recommending as buys:

‘Fundamentals are strong’

Nine Entertainment Co Holdings Ltd (ASX: NEC) operates a free-to-air television network, streaming service Stan, as well as a national stable of newspapers and radio stations.

Ord Minnett senior investment advisor Tony Paterno was impressed with what the company presented during the reporting season.

“The diversified media giant posted group revenue of $1.403 billion in the first half of fiscal year 2023,” Paterno told The Bull.

“This represented a 5% increase on the prior corresponding period.”

Paterno was not too worried about net profit after tax, which was down 16%. 

“Group fundamentals are strong, backed by a solid balance sheet,” he said.

“In our view, the shares were trading at a discount at $1.91 on March 2. We retain our $2.80 fair value estimate.”

The television network also scored a coup last month when it secured the broadcast rights to the next five Olympic games.

The Nine share price is down more than 27% over the past 12 months.

‘The offer is appealing’

Star Entertainment Group Ltd (ASX: SGR) has seen its share price halve over the past year as multiple government enquiries questioned its fitness to hold its casino licences.

But with new management installed, perhaps it can’t get any worse.

Paterno noted the company raised some much-needed cash with a $595 million institutional issue at $1.20 per share.

“Star Entertainment expects to raise about $205 million from its retail entitlement offer. The offer will close on March 13,” he said.

“The capital initiatives will dilute our fair value estimate, but we believe the offer is appealing on valuation grounds.”

The money will be used to pay off debt and provide “liquidity headroom”, according to Paterno. 

“New South Wales and Queensland regulators have imposed fines totalling $200 million on Star Entertainment,” he said.

“Shareholders should examine the retail entitlement offer before investing.”

The post 47% upside: Expert names 2 entertainment ASX 200 shares to buy for cheap appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend on Friday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Which ASX 200 company just put aside $150 million for fines and penalties?
• Star Entertainment shares return to trade after raising $595 million. What’s next?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Red Leaf Securities chief executive John Athanasiou gives his thoughts on the ASX shares that are savagely discounted at the moment.

Cut or keep?

The Motley Fool: Let’s examine three ASX shares that have been devastated this year, and see if you think each of these is now a bargain buy or a value trap.

The first one is Megaport Ltd (ASX: MP1), which has plunged almost 60% over the past year.

John Athanasiou: It’s down quite significantly and it’s one of the most shorted stocks on the ASX, Megaport. They’ve got a short interest of roughly 9%. 

This network provider, they appear to be targeted by these shorters because they’ve got operating issues, it seems. So I would call it for now a value trap, even though I do like the tech sector. There’s no rush into it right now.

MF: Fair enough. Maybe you’d consider it if it got even cheaper?

JA: I would definitely consider it if it gets cheaper. Absolutely, yeah.

MF: The next one is Poseidon Nickel Ltd (ASX: POS). It’s also down about 60% over the past 12 months. Your thoughts?

JA: In relation to Poseidon Nickel, even though I do like my small to micro-cap stocks, I would be a little bit cautious and wait for their Black Swan project to restart before getting involved in that one. 

I am bullish on nickel prices, but at this stage, nickel prices have fallen a fair bit. They’re beginning to recover. But I think it’d be a more cautious approach and wait until that Black Swan project restarts.

MF: There’s probably other producers that are already in production mode, aren’t there?

JA: Exactly. So there’s other opportunities out there. And if you want exposure to the resource, then you can go to the majors as well.

MF: The third one is Dusk Group Ltd (ASX: DSK), which is a retailer down about 39% over the past year. What do you reckon?

JA: Discretionary retailers had a real rough time and Dusk is no different. 

The RBA rate [rises] are really starting to bite on consumer spending. I just don’t see consumers rushing out to buy candles no matter how good they smell right now. 

They did mention their online sales are decreasing and the CEO, Peter King, is trying to offset this by opening six new stores. Now obviously you’d imagine that’ll impact margins, opening new stores and the cost associated with bricks-and-mortar. 

Even though we’re bullish on the market, we’re avoiding discretionary spending because it’s only now we’re seeing the real world impact of cash rates rising. 

There will be a time to buy Dusk, but I don’t think it’s right now. Maybe towards the end of the year or early next year, you’ll be looking at discretionary retail stocks.

The ASX share for a comfortable night’s sleep

MF: If the market closed tomorrow for four years, which stock would you want to hold?

JA: Well, four years is a long time not to have any information. So in light of that, I’d have to go conservative. I’m looking at Commonwealth Bank of Australia (ASX: CBA). 

They pay you a decent dividend, 4%. They essentially grow with the Australian economy and they’re going to be around in four years.

The post 3 ASX shares to avoid like the plague (and one to buy for the next 4 years): expert appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Lynas, Megaport, and Universal Store shares are dropping today
• Morgans names 3 of the best ASX shares to buy in March
• Megaport share price tumbles 10% on CEO resignation
• Bond blitz: CBA offers 6.7% yield, but not on its shares
• Why are ASX 200 tech stocks like Xero having such a stellar start to the week?

Motley Fool contributor Tony Yoo has positions in Dusk Group, Megaport, and Poseidon Nickel. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Dusk Group and Megaport. 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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Owning Pilbara Minerals Ltd (ASX: PLS) shares has come with a rollercoaster of emotions so far in 2023. While the lithium producer‘s share price is up 14% so far this year, the past month has delivered a 13% decline.

A meteoric rise in profits and the company’s inaugural dividend have been overshadowed by a sharp fall in the price of lithium. Bringing unease to shareholders, lithium carbonate prices are back to where they were a year ago as supply begins to momentarily catch up with demand.

So, can the electrifying commodity producer continue to harvest monster profits, or could the top of the cycle be behind it?

To try to answer this question, we found one bull and one Pilbara Minerals bear among our team of writers. Eager to share their thoughts, our Foolish duo delves into whether or not Pilbara Minerals shares could be a sound investment right now.

Here is what they said:

The bull case for Pilbara Minerals shares 

By Bernd Struben: I’m long-term bullish on Pilbara Minerals based on a number of strengths.

First, the company is the sole owner of the Pilgangoora Lithium-Tantalum Project in Western Australia, the world’s largest, independent hard-rock lithium operation.

Second, while lithium prices may come under pressure over the medium term amid oversupply concerns, the metal will remain in strong demand amid the rapid global growth of EVs and grid storage batteries.

Around 75% of the world’s consumption of lithium currently goes into rechargeable batteries. Furthermore, EV sales are forecast to grow tenfold over the next decade. It’s expected that EVs will represent 30% of sales in China in 2023, up from only 5% in 2019.

Third, Pilbara Minerals recently posted some stellar half-year results. Compared to the six months ending 31 December 2021, the miner reported a 989% increase in statutory net profit after tax (NPAT), which reached $1.2 billion. Meanwhile, the company’s revenue of $2.2 billion was up 305%.

Fourth, Pilbara Minerals leapt onto income investors’ radars when its board declared the first-ever dividend of 11 cents per share, fully franked. That represents a 2.6% trailing yield. But that’s just the interim dividend. I expect Pilbara will pay out at least that much for a final dividend when the company reports its full-year results.

And fifth, Pilbara Minerals is doing an excellent job of increasing its output. Production of spodumene concentrate leapt 83% over the six months (from the prior corresponding half year) to reach 309,255 dry metric tonnes (dmt). And the miner recently lifted its production guidance for the full year to between 600,000 and 620,000 dmt.

Should lithium prices fall as much as the extreme bearish cases suggest, Pilbara’s profits and dividends will likely shrink. But longer-term, I believe investors will look back at today’s share price and wish they’d bought more.

Motley Fool contributor Bernd Struben does not own shares in Pilbara Minerals Ltd.

What about the grizzly bear? 

By Sebastian Bowen: There’s little doubt Pilbara Minerals is a well-run company. It has indeed seen unprecedented success in 2022 and 2023 so far, recently delivering bumper profits and its first-ever dividend payment.

But just because a company has seen success doesn’t mean it will be a good long-term investment.

At its core, Pilbara is a price-taker. Most ASX shares are able to set the prices for the goods or services they provide. This enables the best companies to compound their earnings and profits over time. But Pilbara, like all miners and drillers, is at the mercy of the markets.

In Pilbara’s case, this company holds regular auctions where buyers decide what they want to pay for Pilbara’s lithium products. This is great when lithium prices are elevated, as they are right now. But like all commodities, lithium goes through cycles.

When prices rise, producers are incentivised to increase output and therefore supply. Over time, increased supply reduces the pricing of said commodity. Most commodities fluctuate in this way, which makes it difficult for the companies that produce them to consistently grow profits.

If lithium prices go through a down cycle sometime in the future (which I believe is inevitable), we could well see Pilbara’s profits collapse, and its new dividends trimmed or even suspended. This fundamental nature of commodity-based shares like Pilbara makes them less than ideal candidates for a buy-and-hold investment in my view.

Further, Pilbara’s business case is built around the assumption that lithium will continue to play a massive role in the electrification of transport. Yes, right now almost all electric vehicles use lithium-ion batteries. But other battery technologies, using other metals, have been dominant before.

What happens to Pilbara if vanadium batteries become more effective and efficient than lithium-based ones, for example? I think it’s a coin-toss situation when debating whether lithium will forevermore be the world’s dominant battery technology.

So, all in all, I think there are too many risks with Pilbara’s business case to make it a solid long-term investment. Lithium is an important metal in today’s economy. But that doesn’t mean any company producing lithium products has a license to print money indefinitely.

Motley Fool contributor Sebastian Bowen does not own shares in Pilbara Minerals Ltd.

The post Pilbara Minerals shares: Bull vs. Bear appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie tips 100% total return from Pilbara Minerals shares
• Big yields and even bigger gains lie ahead for these ASX 200 shares: analysts
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) jumped after the RBA’s cash rate meeting and ended the day with a solid gain. The benchmark index rose 0.5% to 7,364.7 points.

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

ASX 200 expected to fall

The Australian share market looks set to give back yesterday’s gains and more on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.9% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.8%, the S&P 500 is down 1.7% and the Nasdaq is 1.4% lower. This follows comments by the US Federal Reserve that rates may go higher than previously expected.

Oil prices sink

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.7% to US$77.52 a barrel and the Brent crude oil price has dropped 3.4% to US$83.26 a barrel. Traders were selling oil on US rate hike concerns.

InvoCare downgraded

The team at Morgans has downgraded InvoCare Limited (ASX: IVC) shares to a hold rating with an improved price target of $12.19. This follows news that TPG has tabled a non-binding takeover offer of $12.65 per share. The broker assigns a 70% probability that the deal completes and appears to believe investors should be locking in their gains.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough session after the gold price tumbled overnight. According to CNBC, the spot gold price is down 2% to US$1,818.5 an ounce. A hawkish US Fed put pressure on the precious metal,

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend on Wednesday and could trade lower. This includes logistics solutions company Brambles Limited (ASX: BXB), retail group Super Retail Group Ltd (ASX: SUL), and energy giant Woodside. The latter will then be paying a massive 211.3 cents per share final dividend to shareholders in April.

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

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• Why did the Woodside CEO just sell off over $200,000 worth of shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Owners of this ASX 200 share are soon going to receive a bigger dividend
• 5 ASX 200 shares trading ex-dividend today
• Why InvoCare, Pentanet, Sayona Mining, and Weebit Nano shares are storming higher

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ASX shares capable of both capital growth and dividend income are a rare combination sought by many investors.

Sure, one could pick up a big bank to reap income, but they have no massive prospect of growth in a saturated market.

Conversely, a high-flying tech company might do the trick for future growth, but very rarely do they pay out a decent dividend. Any free cash is ploughed back into the business to fuel further growth.

In the current climate of a stressed economy from rising interest rates, stocks with the golden combination have become even rarer.

Fortunately for The Motley Fool readers, one expert named two such ASX shares they could buy right now:

‘Well managed’ business giving plenty back to investors

The Silk Logistics Holdings Ltd (ASX: SLH) share price has remarkably gained more than 20% over the past 12 months, during a period when most non-mining stocks tanked.

What’s more, it already pays out a dividend yield of 4.7%.

Morgans investment advisor Jabin Hallihan reckons the stock price could head up 54% from the current level of around $2.47 while paying out even more dividend.

“Our valuation is $3.80 a share,” Hallihan told The Bull.

“We forecast a gross dividend yield of about 5%.”

The business is “well managed”, he added, and presented impressively during reporting season.

“The integrated logistics provider posted revenue of $253.6 million in the first half of fiscal year 2023, an increase of 39.1% on the prior corresponding period,” Hallihan said.

“Underlying net profit after tax of $9.8 million represented an increase of 32.4%.”

The Morgans team is expecting Silk Logistics to rake in between $480 million and $500 million for the full financial year.

‘A significant development’ for lithium business

Mining services provider Mineral Resources Ltd (ASX: MIN) digs up all sorts of minerals, but its involvement in lithium production has seen its share price rocket 83% over the past year.

But the stock has remained flat over the past month due to a lukewarm reporting season.

Hallihan is still bullish on the Western Australian company.

“While the first half 2023 result didn’t meet consensus expectations, we expect a stronger second half as we anticipate lower costs.”

He noted the recently announced budding agreements with the US company Albemarle Corporation (NYSE: ALB).

“We expect an equal joint venture conversion agreement to obtain a capacity of producing 100,000 tonnes of lithium chemicals a year from 2025.

“It’s a significant development amid increasing demand for lithium.”

The Morgans team has placed its fair valuation for Mineral Resources at $102, suggesting a 16.4% upside from the current level.

The dividend yield for Mineral Resources stands at 2.5% fully franked.

The post 2 ASX shares offering both growth and nice dividends: expert appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price slides as Norwest takeover bid heats up
• Which ASX All Ords shares would be on my watchlist for generating massive dividends?
• Want passive income? These are the ASX dividend shares to buy according to experts
• What’s happening with ASX 200 lithium stocks this week?
• Buy Minerals Resources shares for 21% upside: broker

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Silk Logistics. 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 wanting to add some diversification to your portfolio? If you are, then you might want to look at exchange traded funds (ETFs).

The reason for this is that ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs that are popular with investors. Here’s what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard highlights that this ETF gives investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the many high quality companies that investors will be owning a part of are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Procter & Gamble, and Visa.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF that could be a top option for investors is the Vanguard US Total Market Shares Index ETF. Especially if you’d rather just invest in the United States and not globally.

That’s because this ETF allows you to invest into a massive 4,000 US listed shares in one fell swoop.

Vanguard highlights that this allows investors to participate in the long-term growth potential of US listed companies.

As well as tech giants such as Amazon, Apple, and Microsoft, you’ll be buying a slice of iconic US companies such as Boeing, JP Morgan, Starbucks, Tesla, and Walmart.

The post 2 excellent ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 excellent ETFs for ASX investors to buy in March
• These top ETFs could be great options for beginner ASX investors
• 2 fantastic ETFs for ASX investors to buy and hold

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for dividend shares to buy this week, then the two listed below could be worth checking out.

Both have been named as buys by analysts and tipped to provide attractive yields. Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that has been named as a buy for income investors is HomeCo Daily Needs.

HomeCo Daily Needs is a property investment company with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans is a fan and has an add rating and $1.50 price target on HomeCo Daily Needs’ shares. Following its first-half results, the broker commented:

HDN offers investors exposure to a portfolio of daily needs assets with its large development pipeline to provide both near-term and future growth opportunities. FY23 guidance was reiterated; metrics stable across the $4.7bn portfolio; and cap rate expansion was offset by property income growth. Looking ahead, the focus also remains on recycling assets and the development pipeline which has been boosted to +$600m from +$500m.

As for dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.28, this will mean dividend yields of 6.5% and 6.6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs is a fan of this big four bank and sees it as an ASX dividend share to buy.

Its analysts currently have a buy rating and $35.42 price target on its shares. The broker was impressed with NAB’s first-quarter performance and believes it is well-placed to continue this positive form. It explained:

We reiterate our Buy on NAB given: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and we believe NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s 1Q23 operating trends seem consistent with management commentary at its FY22 result (here), particularly with regard to NIMs, which we view as a positive given the commentary CBA made at its 1H23 result (here), which suggested NIMs have peaked. Reiterate Buy.

In respect to dividends, Goldman Sachs is expecting NAB to pay fully franked dividends of $1.73 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current NAB share price of $29.71, this means yields of 5.8% and 5.9%.

The post Buy NAB and this ASX passive income share: analysts appeared first on The Motley Fool Australia.

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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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When a company executive sells off shares in their own business, it can often raise some eyebrows with investors. Those chosen few who manage the finances and operations of an ASX 200 company are well paid for the privilege.

So it understandably causes some consternation when those people reduce the skin they have in the game they are running.

That is especially so when it comes to a company CEO.

This is the situation that is confronting shareholders of the ASX 200 energy giant Woodside Energy Group Ltd (ASX: WDS) this week. Yesterday, just before market open, Woodside released an ASX announcement detailing some share sales that were initiated by its CEO Meg O’Neill.

Woodside CEO offloads shares, should investors be worried?

According to the release, O’Neill sold 6,761 shares of Woodside on 1 March for a sum of $244,774.34. That works out at an average selling price of $36.20 per share.

However, this wasn’t an ordinary share sale. O’Neill, alongside other Woodside executives, is entitled to receive what are known as ‘restricted shares’ under the company’s remuneration policy.

Restricted shares are awarded to executives based on corporate performance criteria. They are ordinary shares that are issued on a deferred basis, typically for three or five years.

So O’Neill clearly received these shares and now she is able to sell them. Which she has.

But should investors be worried?

Well, that’s up to every individual shareholder. Some might like to see management figures like O’Neill accumulate every share they can, giving them the highest level of shareholder alignment when it comes to financial interests.

But good wealth management principles don’t suspend for company executives, even CEOs. Most investors would agree that putting all of your eggs in one basket is a poor way to run a share portfolio.

Diversification is important, even for CEOs. So perhaps other shareholders won’t mind that O’Neill invests in other assets outside Woodside shares. Perhaps she needs the money for a new house, or a holiday.

Even so, it’s not like O’Neill doesn’t have skin in the Woodside game. After this sale, O’Neill still owns (directly and indirectly) 155,727 Woodside shares, with a value of just over $5.85 million. She also owns another 165,147 restricted shares, and 106,488 performance rights.

So perhaps considering this, the sale of just over $244,000 worth of Woodside shares might not seem so significant. Investors don’t seem to think so anyway, considering they have sent the Woodside share price up more than 5% in the past week alone:

The post Why did the Woodside CEO just sell off over $200,000 worth of shares? appeared first on The Motley Fool Australia.

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

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The Qantas Airways Limited (ASX: QAN) share price hit a new 52-week high today of $6.71. This represents its highest price since the COVID-19 crash.

Shares in the airline have done well for shareholders over the last year, rising by 45%. In the past six months, they have gained around 25%.

The Qantas share price has been steadily climbing since the initial reaction to the airline’s FY23 half-year result. From 23 February 2023 to now, it has gone up by almost 10%.

Investors may have harked back to that result today, as well as taking in news the airline is planning to significantly increase its workforce.

Strong travel demand continues

The company recently announced that in the first six months of the year, it made underlying net profit before tax of $1.43 billion and statutory net profit after tax (NPAT) of $1 billion. This was a big swing compared to the losses it had been seeing during COVID. The recovery has certainly been helpful for the Qantas share price.

Thanks to the strong financials, net debt declined to $2.4 billion and the business announced a share buyback of up to $500 million.

Qantas pointed to a “material improvement in operational performance and customer satisfaction”.

Qantas CEO Alan Joyce said:

When we restructured the business at the start of COVID, it was to make sure we could bounce back quickly when travel returned. That’s effectively what’s happened, but it’s the strength of the demand that has driven such a strong result.

Fares have risen because of higher fuel costs, but also because supply chain and resourcing issues meant capacity hasn’t kept up with demand. Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares.

In terms of overheads, we expect the costs we’re carrying from the extra operational buffer will start unwinding from this half and into next financial year.

Investors may not have liked the sound of “downward pressure” on fares, considering how much profit Qantas is currently making from those high fares.

However, the airline said that travel demand is expected to remain strong throughout FY23 and into FY24. Domestic and international capacity is expected to increase throughout the second half of FY23, though this could come with moderating fares. However, fares are expected to remain “significantly above” FY19 levels.

That does sound promising for profitability and the Qantas share price.

Growth plans

Last week, the company announced that it expects to create more than 8,500 new highly skilled jobs, including new pilots and engineers.

Over the next decade, Qantas is expecting to grow its number of people from 23,500 currently to 32,000 by 2033.

While hiring more people doesn’t necessarily influence the Qantas share price, it could suggest the business is expecting to become much bigger and, by extension, could be making more profit.

Qantas share price snapshot

Over the past month, the Qantas share price is up around 0.5%.

The post Qantas share price takes off to new multi-year high on Tuesday appeared first on The Motley Fool Australia.

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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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