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The BHP Group Ltd (ASX: BHP) share price is in the green amid news the company’s planned takeover of S&P/ASX 200 Index (ASX: XJO) copper giant Oz Minerals Limited (ASX: OZL) has been approved by regulators in Brazil.

That’s one less hurdle the $9.6 billion acquisition has to face. Though, it’s still conditional on shareholder and court approval.

It also comes as the mining sector bounces back from Friday’s carnage. The S&P/ASX 200 Materials Index (ASX: XMJ) is currently up 0.79%.

Right now, the BHP share price is among the sector’s front-runners, up 0.89% to trade at $48.335. In earlier trade, it shot 1.33% higher.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 0.05%.

Let’s take a closer look at the latest on the ASX 200 iron ore miner’s massive copper deal.

BHP share price lifts amid Oz Minerals regulatory approval

The BHP share price is rising amid news Brazil’s Administrative Council for Economic Defence has given the company’s planned acquisition of ASX 200 copper miner Oz Minerals its tick of approval.

A scheme booklet is expected to be sent to Oz Minerals shareholders early next month.

The takeover target accepted BHP’s $28.25 per share bid in November. The Oz Minerals share price is currently $27.96, the same as Friday’s closing price.

The acquisition is expected to face a shareholder vote in late March or early April, with the takeover implemented shortly afterwards.

The BHP share price might also be being impacted by iron ore’s upwards movement today. Iron ore futures lifted 1.1% on Friday to reach US$125.26 a tonne. That marked a weekly gain of 2.1% despite Thursday’s 1.9% fall.

The materials sector plunged 1.4% on Friday, likely partially driven by the steel-making ingredient’s slump, with BHP shares closing the day 1.9% lower.

And it wasn’t just Friday that saw the iron ore giant struggling. Its stock has been underperforming against the ASX 200 for a while now.

Shares in the mining monolith have gained around 6% so far this year while the ASX 200 has jumped nearly 9%. Looking longer term, BHP shares have gained 1% over the last 12 months compared to the index’s 6% rise.

The post BHP share price jumps as Oz Minerals acquisition clears major hurdle appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares being hammered hard on Friday?
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager
• Why are ASX 200 iron ore shares like Rio Tinto sliding lower today?
• Two ‘top prospect’ ASX 200 dividend shares for 2023 revealed: fund manager
• As the BHP share price flirts with $50, do I buy more?

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 Newcrest Mining Limited (ASX: NCM) share price is on the move on Monday morning.

At the time of writing, the gold miner’s shares are up 14% to $25.68.

This latest gain means that the Newcrest share price is now up 24% since the start of the year, as you can see below.

Why is the Newcrest share price rising?

The Newcrest share price is rising today after news of a takeover approach offset a pullback in the gold price on Friday night.

According to the release, after rejecting an earlier offer, Newmont returned on Sunday with an improved conditional and non-binding indicative proposal to acquire Newcrest for 0.380 Newmont shares for each Newcrest share.

Based on the current Newmont share price of US$49.85 and current exchange rates, this equates to an offer of $27.40 per share. This is a 22% premium to the Newcrest share price at Friday’s close.

Newmont’s previous offer, which was swiftly rejected, was for 0.363 shares per Newcrest share, which equates to an offer of $26.15 per share. The company explained the rejection:

The Newcrest Board had considered that the earlier proposal from Newmont would not deliver sufficiently compelling value to Newcrest shareholders and on that basis, rejected the earlier proposal.

Is this offer enough to get a deal done?

This offer appears to be in the region of what Newcrest is looking for. As a result, it hasn’t rejected the offer this time around.

However, it also hasn’t accepted it as of yet. Together with its financial and legal advisers, the Newcrest board is currently considering the indicative proposal.

It notes that it remains subject to a number of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval, and various regulatory approvals.

It also contemplates the establishment of a chess depositary interest (CDI) listing on the ASX for new Newmont shares that would be issued to Newcrest shareholders.

For now, the Newcrest board has told shareholders that they need not take any action in relation to the proposal.

The post Newcrest share price jumps 14% on takeover approach appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why is the Newcrest share price fizzling out on Friday?
• The gold price is near 9-month highs. Could these ASX 200 mining stocks be set to soar?
• 5 things to watch on the ASX 200 on Friday
• Why Centuria Office, Deep Yellow, Newcrest, and Xero shares are racing higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Openpay Group Ltd (ASX: OPY) share price isn’t going anywhere on Monday.

This morning, the embattled buy now pay later (BNPL) provider made a very troubling announcement.

What’s going on with the Openpay share price?

Last week, Openpay revealed that it was having problems getting hold of its $41 million unused finance facilities.

It appeared to indicate that the financiers weren’t overly keen to put this money up due to its abject financial performance and fear that it would essentially be money down the drain.

Unfortunately, this left the company with a balance of $17 million, which is less than it burned through during the fourth quarter of calendar year of 2022.

Worse still, it meant that Openpay has breached the covenants of loan agreements with senior secured lenders.

And while management advised that constructive discussions were underway with its senior secured lenders, this seems to have amounted to nothing and receivers have now been called in.

Receivers called in

According to the release, Barry Kogan, Jonathan Henry, and Rob Smith, partners of McGrathNicol were appointed joint and several receivers and managers of Openpay at the weekend.

These appointments mean that the receivers and managers are now in control of assets, operations, and trading activities of the company.

And while they are working urgently to determine the appropriate strategy for the business, it doesn’t look good. The release notes that at this time, customers will no longer be able to use the Openpay platform for new purchases. Though, they are still required to pay any outstanding balances in accordance with their existing agreements.

As for the Openpay share price, it will remain suspended until further notice while the assessment of the appropriate strategy is ongoing. A further announcement will be issued in this regard when the time is right.

The post BNPL share Openpay collapses, receivers called in appeared first on The Motley Fool Australia.

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More reading

• Could this BNPL share be wiped from the ASX?

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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The AGL Energy Ltd (ASX: AGL) share price is down heavily compared to pre-COVID times. But, I think there’s a fair chance that it could deliver very good returns in the next few years.

Yes, the last few years have been ugly for shareholders. Over the last four years, the AGL share price has dropped by over 60%.

This year could see another year of a hit to profit, after outages and market volatility. Underlying earnings are also expected to be hit in FY23 by the onerous contract provision adjustments in FY22.

FY23 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $1.25 billion to $1.45 billion, while underlying net profit after tax (NPAT) is expected to be between $200 million to $320 million.

FY24 could be the start of a recovery

The amount of negative sentiment surrounding the business is understandable. Earnings have dropped, the management board have gone through enormous scrutiny and the future of Australia’s domestic energy is somewhat uncertain.

However, I don’t think investor sentiment will always be negative about the business.

AGL has acknowledged that FY23 is challenging for the energy industry and market conditions. However, management believes the business is “well positioned from FY24 to benefit from sustained higher wholesale electricity pricing as historical hedge positions progressively roll-off.”

Earnings are expected to significantly recover over the next few years.

Commsec forecasts suggest that the business could generate around 40 cents of earnings per share (EPS) in FY23, meaning it’s currently valued at 19 times FY23’s estimated earnings.

However, after that, AGL earnings are projected to significantly increase, to 91 cents in FY24. This would put the AGL share price at 8 times FY24’s estimated earnings.

The early projection for FY25 is that AGL could make $1.13 of EPS. This would mean that the energy business is priced at under 7 times FY24’s estimated earnings.

With the recovery in earnings, AGL could start paying good dividends to investors again. According to Commsec, in FY24 AGL could pay a dividend yield of 7.7% (excluding franking credits). In FY25 that dividend yield could be 10%, excluding franking credits.

I think that the combination of very good dividends from FY25 onwards (of a yield of 10%), as well as the market recognising that AGL’s profit path is improving, could lead to a total return (dividends plus capital growth). The total return could be around 100% (or more) if profit jumps and the AGL share price trades on a mid-teen price/earnings (P/E) ratio in 2025.

Renewables to attract investor attention?

Some businesses that are working on expanding their green credentials are getting more investor attention, in a positive way. I think AGL could receive more positive attention from the market as it replaces its coal power generation with new renewable energy.

AGL does have a huge investment path ahead of it. It has been estimated that it could cost up to $20 billion which will be delivered in the 12-year lead-up to its targeted exit from coal-fired generation.

But, AGL will hopefully not need to come up with all that funding itself. It said it will “evaluate various sources of funding, which includes a mix of AGL’s own balance sheet, entering into offtakes, or through partnerships utilising third party capital.”

If AGL’s earnings and dividends can rebound, I think the business is on course for a promising future with a greener-focused strategy.

The post Why I think AGL shares could double an investor’s money in four years appeared first on The Motley Fool Australia.

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More reading

• ‘Massive job ahead’: Should you buy AGL shares now or wait?
• What’s with the AGL share price on Thursday?
• Attention income investors! These 7 ASX 200 dividend shares are projecting yields of 7%+ in FY24
• Can AGL shares really deliver a 7% dividend yield in FY24?
• 2 ASX 200 dividend stocks I’m running a mile from

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 ASX dividend stock Baby Bunting Group Ltd (ASX: BBN) could be a real winner for both capital growth and dividends in my opinion.

The last 12 months have been rough for the business, after an approximate 50% fall for the ASX retail share.

Amid the volatility and uncertainty of last year, it’s understandable that a number of ASX retail shares were sold off.

However, Baby Bunting continues to languish at close to its 52-week lows, while other retailers like JB Hi-Fi Limited (ASX: JBH) and Nick Scali Limited (ASX: NCK) have recovered a lot of their lost ground.

What’s gone wrong?

It’s fairly understandable why the Baby Bunting share price has taken a bath. The company delivered an update that was disappointing.

Last month, the ASX dividend stock gave an update that revealed its sales were up 6.6% to $254.9 million. But despite becoming a bigger business, its gross profit margin decreased from 39.3% to 37.2%.

It also revealed that pro forma net profit after tax (NPAT) was down 59% to $5.1 million.

While this update showed an improvement in market share, it still suffered despite “being competitive and delivering value to the consumer”.

However, in the second quarter, it made some “important refinements” to its loyalty program, which was done in mid-December. The full benefit of these changes are expected to improve the company’s gross profit margin by between 50 basis points to 80 basis points.

Baby Bunting also said that it has made “strategic adjustments” to pricing and changes to domestic freight arrangements, which have helped the margin.

On top of that, reductions in international shipping rates will “pave the way for further margin improvement” in the second half. It’s also expecting the gross profit margin for FY23 to be between 38% to 39%, after seeing a 38.6% margin in FY22.

The business is also spending money on opening new stores. It’s expecting to open eight new stores in FY23.

In FY23, the business is expecting to make pro forma net profit after tax of between $21.5 million to $24 million.

Why I think the Baby Bunting share price is oversold

The ASX dividend stock faced a competitive environment approximately five years ago, but came through that and then performed very well. I think Baby Bunting will be able to come through this period as well.

Its scale gives it profit margin advantages compared to competitors, the large store network means it can connect with a large number of customers, and its improving online offering is becoming more compelling with a ‘marketplace’.

While there are profit problems in the short term, Baby Bunting is already telling the market that things are turning around.

Commsec earnings projections suggest that profit is going to recover in FY24 and grow further in FY25, enabling the ASX dividend stock to pay a good dividend.

Based on FY25 numbers, the Baby Bunting share price could be valued at under 11 times FY25’s estimated earnings, with a possible grossed-up dividend yield of 9.1%. If the expansion into New Zealand goes well, I think the business has a very promising future over the next three to five years.

In terms of the dividend that it could pay in FY23, the current Commsec estimate is 11.6 cents, translating into a possible grossed-up dividend yield of 6.1%.

The post 1 oversold ASX dividend stock (yielding 6%) to buy in 2023 appeared first on The Motley Fool Australia.

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More reading

• Why I think these 2 ASX dividend shares offer great buying right now
• Why Baby Bunting, Origin, Rio Tinto, and South32 shares are dropping today
• Why did this ASX 300 share just crash 12%?
• 3 ASX All Ords shares forecasting dividend yields of at least 7% in FY24
• 2 ASX dividend shares to buy with 5%+ yields – analysts

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 positions in and has recommended Baby Bunting Group. The Motley Fool Australia has recommended Baby Bunting 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 mining shares are capable of producing strong returns if we buy them at a good price.

Certainly, many resource prices are cyclical because of changing supply and demand.

But when sentiment and demand is low, it can be a good time to invest. Conversely, when resource prices are high, it might be worth considering if it’s wise to wait for a better price.

With that in mind, I think the following three ASX mining shares are worth investing in after the latest changes in their share prices.

Mineral Resources Ltd (ASX: MIN)

Mineral Resources is one of the most interesting resource businesses in my opinion. It’s a leading mining services business but it is also aiming to grow both its iron ore and lithium production.

It is sometimes called the cheapest ASX lithium miner on the ASX. Mineral Resources also wants to become a top five hydroxide producer, with “full vertical integration – [a] pit to battery manufacturer”.

The ASX mining share is also working on its transition to becoming a large, low-cost iron ore producer, with a goal of reaching more than 90 mt per annum in a few years.

In FY24, it could generate $16 of earnings per share (EPS), putting it at under six times FY24’s estimated earnings, according to Commsec. It may also pay an annual dividend per share of $6, translating into a potential grossed-up dividend yield of 9.6%.

Aeris Resources Ltd (ASX: AIS)

This is a relatively small company that is predominately a copper miner. However, it also produces gold, zinc, and silver.

Aeris is working on the Stockman project in Victoria, which will unlock another source of production and cash flow for the business. This is a copper and zinc project.

The business is working hard on cost management while aiming to increase its production over time. It continues to spend millions on exploration to try to find its next project.

In FY24, this ASX mining share could generate 15 cents of EPS, which would put the Aeris share price at under five times FY24’s estimated earnings, according to Commsec.

I don’t think the market is fully appreciating how much profit this company could generate in the next few years. It could also turn into a good dividend payer at this share price.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price has recovered most of the ground that it lost at the end of 2022.

I think the ASX lithium share has demonstrated enough over the last few months to justify the excitement.

It’s still generating a lot of cash flow. At the end of December 2022, it finished with a huge cash balance of $2.2 billion.

Profitability is very strong. In the three months to 31 December 2022, it saw production rise 10% quarter over quarter to 162,151 dry metric tonnes (dmt). The average realised sales price was up 33% quarter over quarter to US$5,668 per dmt. The unit operating cost was down 5% quarter over quarter to A$579 per dmt.

I like the company’s plans to increase its lithium production and also gain exposure to more of the lithium value chain. I’d have preferred to buy it at a cheaper price, but I still think it has long-term potential with how many electric vehicles are expected to be produced.

Based on Commsec estimates, Pilbara Minerals shares are valued at under eight times FY24’s estimated earnings.

The post 3 top ASX mining shares I’d dig into and buy in February appeared first on The Motley Fool Australia.

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More reading

• Buy Pilbara Minerals and this ASX dividend share: experts
• These are the best ASX 200 mining shares to buy now: Morgans
• 3 ASX 200 lithium stocks that leapt beyond 20% in January
• Can buying Pilbara Minerals shares today create long-term wealth?
• Dividend forecasts: 3 ASX 200 shares with 6%+ yields

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 Zip Co Ltd (ASX: ZIP) share price is down almost 80% over the last 12 months. It has fallen more than 90% from its peak in 2021.

There are several other ASX growth shares that suffered a heavy sell-off over the last 12 or so months, such as Xero Limited (ASX: XRO) and Megaport Ltd (ASX: MP1). But, the buy now, pay later (BNPL) industry seems to have been hit particularly hard.

We could point to a number of things that have happened. The key culprit seems to be the higher interest rates.

Higher rates have changed the game

The Reserve Bank of Australia (RBA) has increased the interest rate by 300 basis points (3.00%) since the start of last year.

One big impact of that is how much fewer investors are valuing the growth of ASX growth shares because the risk-free return (cash and government bonds) is higher.

Warren Buffett, one of the world’s greatest investors, once explained why changing interest rates can have such an impact:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

But, higher interest rates also impact the profitability of Zip as well.

Not only had Zip been reporting a falling cash transaction margin – it was 3.8% in FY20 and 2.3% in FY22 – but more expensive interest costs could flow through the business. If its margins are lower, it won’t make as much money in the future as previously planned.

But, the business does have a medium-term cash transaction margin range target of between 2.5% to 3%.

Can the Zip share price recover?

Zip has acknowledged it’s facing multiple problems. Management has also pointed to people having less for discretionary spending because of inflation, as well as the potential for increased regulatory requirements.

On the interest rate side, Zip has pointed to a few different things. First, accelerated capital recycling underpinned by “product construct”. Second, its performance with customers’ balances supports its ‘Master Trust’ AAA rating in Australia. Finally, Zip noted the “robust two-sided revenue model provides pricing flexibility to maintain margins.”

Zip pointed out it’s a licensed credit provider in Australia and “well-placed to adapt to change”, and that it’s supportive of fit-for-purpose regulation.

For Zip shares to recover back to above $6 from under 70 cents could take a lot of underlying growth.

But, the company thinks that it can grow a lot further.

It thinks that buy now, pay later (BNPL) can grow over 2x between 2021 to 2025. Zip thinks the core addressable market in Australia, New Zealand and the US is technically $11.7 trillion, with the BNPL, with the BNPL penetration only being around 2% of that.

While the growth rate in percentage terms has slowed, Zip continues to grow at an impressive double-digit rate. In the second quarter of FY23, its revenue rose 12% to $188 million and transaction volume jumped 22% quarter over quarter to $2.7 billion.

If it can keep increasing its cash transaction margin, ensure bad debts stay relatively low and keep growing revenue, then Zip can keep rising in my opinion. But, there’s a long way to go for the Zip share price to reach $7. However, I do think $1 is possible in the next year or two if the underlying performance keeps improving.

The post Can the Zip share price ever recover? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• If I buy $1,000 of Zip shares now, what could my returns be this year?
• Avoid my biggest mistake in investing: fund manager
• The Zip share price: Has it bottomed out?
• Why Coronado Global, Mincor, OFX, and Zip shares are dropping today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, Xero, and Zip Co. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended 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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The Commonwealth Bank of Australia (ASX: CBA) share price has put on a stellar performance over the last five years.

It’s gained 45.8% in that time. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted just 29%.

Today, CBA shares trade for $111.15 each – mere cents off their all-time high of $111.43 hit on Friday.

Glancing to the past, however, an investor could have bought 65 CBA shares for $5,000 in February 2018, paying $76.25 apiece and walking away with nearly $44 in change.

That holding would now be worth $7,224.75. But what about the big four bank’s dividends?

Let’s consider the total return those invested in the ASX 200 bank share have likely seen over the last five years.

All the dividends CBA shares have offered since 2018

Here are all the dividends on offer from CBA shares over the last half-decade:

CBA dividends’ pay date	Type	Dividend amount
September 2022	Final	$2.10
March 2022	Interim	$1.75
September 2021	Final	$2
March 2021	Interim	$1.50
September 2020	Final	98 cents
March 2020	Interim	$2
September 2019	Final	$2.31
March 2019	Interim	$2
September 2018	Final	$2.31
March 2018	Interim	$2
Total:		$18.95

As the chart above shows, CBA shares have each yielded $18.95 in passive income since early 2018.

That means a 65-share-strong parcel probably would have handed an investor $1,231.75 in dividends over that time – bumping the potential return on investment (ROI) to a notable 70.6%.

And that’s before we consider the compounding benefits those dividends may have brought had they been reinvested, perhaps through the bank’s dividend reinvestment plan (DRP).

Not to mention, the franking credits attached to each of the bank’s offerings during that time. Certainly, they may have brought some shareholders extra benefits come tax time.

Right now, CBA shares trade with a 3.46% dividend yield.

The post If you stocked up on $5,000 of CBA shares 5 years ago, here’s how much dividend income you’ve made appeared first on The Motley Fool Australia.

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More reading

• 3 of the safest ASX 200 dividend stocks in Australia
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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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One of the main attractions of investing in stocks is how easy it is to receive passive income from ASX dividend shares without having to do any work.

Once we own the shares and have directed where we want the dividends to be paid, we can just watch the dividends roll into the bank account.

Some businesses on the ASX have been going for decades. Having strong and stable operations means they can reward shareholders with dividend payments regularly each year.

While dividends aren’t guaranteed, I think the three ASX dividend shares I’m going to talk about are likely to keep paying good dividends for a very long time.

Telstra Group Ltd (ASX: TLS)

Telstra is the largest telecommunications business in Australia, and it has been known for paying a decent dividend yield since the GFC.

I am confident Australia will continue to use telecommunications beyond the foreseeable future. Indeed, they may become even more integral.

The capabilities of 5G could mean that the technology may replace the fixed cables of the NBN as a household’s preferred way to connect to the internet at some point. If it could win over households, this would be a very useful boost for Telstra’s profit margin.

Telstra’s profit outlook seems more positive these days as the telco works on lowering costs and increasing revenue, as well as diversifying its operations. Expectations of a higher profit have meant the ASX dividend share has started to increase its dividend.

According to Commsec, the grossed-up dividend yield in FY23 could be 5.8%.

Macquarie Group Ltd (ASX: MQG)

Macquarie is the most impressive bank on the ASX, in my opinion. It’s an investment bank, not just a bank in the lending and savings accounts business.

It has a number of divisions, including asset management. This provides it with a consistent source of solid earnings. Macquarie also has a commodities and global markets (CGM) division which has been making a bucketload of money amid the volatility in energy markets over the last 12 months.

The ASX dividend share generates more than two-thirds of its earnings away from Australia and New Zealand. As such, it’s a global business.

Its ability to invest and grow anywhere, across a number of financial segments, gives me confidence it can weather any downturn and perform in the long term. One example is its leading role in financing green energy developments.

According to Commsec, Macquarie could pay a grossed-up dividend yield of around 4% in FY23.

Metcash Ltd (ASX: MTS)

Metcash is a diversified business that has three segments. It supplies independent supermarkets, such as IGAs, around Australia. Metcash supplies a number of independent liquor retailers like Cellarbrations, The Bottle-O, IGA Liquor, Thirsty Camel, Duncans, and Porters Liquor.

The business also has a hardware division, which owns the brands Mitre 10, Home Timber & Hardware, and Total Tools.

COVID-19 seems to have changed the way some people shop, with more people preferring their local supermarkets and liking what they’re seeing. The company’s food revenue continues to grow, liquor is performing well, and hardware has started FY23 strongly.

With hardware now generating the largest part of the company’s profit, I think the business has more growth potential.

The ASX dividend share has committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT).

According to Commsec, Metcash could pay an annual dividend of around 22 cents in FY23, translating into a grossed-up dividend yield of 7.6%.

The post 3 ASX dividend shares for lazy investors appeared first on The Motley Fool Australia.

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More reading

• Top ASX value shares to buy in February 2023
• Top brokers name 3 ASX shares to buy next week
• Here’s how I’d start building a second income this February, for $30 a week
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager

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 Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Metcash. 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues its long run as the most shorted ASX share after its short interest rose gain to 14.2%. Short sellers appear to believe that the market is too optimistic on Flight Centre’s revenue margins.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 12.7%. Valuation concerns may be weighing on this betting technology company’s shares.
• Megaport Ltd (ASX: MP1) has seen its short interest remain at 9.8%. Short sellers will have been pleased to see this network as a service provider’s shares crash last week after a disappointing quarterly update. Operational trends were far weaker than expected.
• Sayona Mining Ltd (ASX: SYA) has 9.2% of its shares held short, which is down week on week once again. Short sellers appear to be targeting Sayona and other lithium shares on the belief that lithium prices have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9%, which is down slightly week on week. Goldman Sachs believes this lithium developer’s shares are vastly overvalued compared to peers.
• Liontown Resources Ltd (ASX: LTR) is another lithium share being targeted by short sellers. It has short interest of 7.8%, which is up week on week. Lithium price concerns and project cost blow outs may be behind this.
• Lake Resources N.L. (ASX: LKE) has 7.2% of its shares held short, which is down week on week. J Capital has gone public with why it is shorting this lithium developer. It has concerns over its DLE technology and project funding.
• ARB Corporation Limited (ASX: ARB) has entered the top ten with short interest of 6.9%. A soft start to FY 2023 and uncertainty in the US market appear to be behind this.
• Zip Co Ltd (ASX: ZIP) is back in the top ten with short interest of 6.9%. Short sellers may believe the market is being too optimistic on Zip’s profitability target.
• Brainchip Holdings Ltd (ASX: BRN) has rejoined the top ten with short interest of 6.7%. Yet another disappointing quarterly performance from this meme stock appears to have given short sellers even more confidence in their bearish views.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Core Lithium: An ASX 200 share to buy in February? 
• Brokers name 3 ASX shares to buy now

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 ARB Corporation, Betmakers Technology Group, Megaport, and Zip Co. The Motley Fool Australia has recommended ARB Corporation, Betmakers Technology Group, Flight Centre Travel 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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