Tag: Motley Fool

Small-cap ASX share Silk Logistics Holdings Ltd (ASX: SLH) has been tipped as a top pick by Cyan Investment Management co-founder Dean Fergie.

In its most recently reported financial results, the warehousing and logistics company saw its FY22 revenue increase by 22% to $394 million. The small-cap ASX share also reported a whopping 45% increase in net profit after tax (NPAT), which reached $15.8 million.

At the current share price of $2.22, Silk Logistics has a market cap of $175 million and pays a fully franked trailing dividend yield of 3.9%.

Small-cap ASX shares emerging from tough year

The past 12 months weren’t particularly kind to most of the smaller ASX shares.

Commenting on the headwinds facing small-caps, Fergie said (courtesy of The Australian):

There was a lot that happened last year in terms of geopolitical activity, and certainly inflation, that really came out of left field for investors. It was a terrible year (for small caps), it was really a place that no one wanted to be in.

To give you some idea, over the past 12 months the S&P/ASX 200 Index (ASX: XJO) has gained 9.8%. The S&P/ASX Small Ordinaries Index (ASX: XSO), on the other hand, dropped 2.4% over that same period.

But, as Fergie noted, “certainly so far this year, we’ve already seen a very, very strong rebound”.

Indeed, the Small Ordinaries has gained 8.9% since the opening bell on 3 January, outpacing the 8.1% gains posted by the ASX 200.

And Fergie believes that strength could lead to some extra tailwinds for small-cap ASX shares moving forward.

 â€œI think that might prompt more people to get involved,” he said. “As it goes up, people start to have a little bit of FOMO and so they put money in, which ticks the market up further.”

Which brings us back to Silk Logistics.

Explaining why Silk is a top small-cap ASX share pick for Cyan, Fergie said (quoted by The Australian):

We’re still seeing some companies in the online space and the like bring in a lot of goods from overseas. They want warehousing transportation and Silk now has a really good, domestic-wide footprint in Australia. They’re well-funded and seeing good growth.

He added that the ASX share is “reasonably defensive too”.

Silk Logistics share price snapshot

As you can see in the chart below, the Silk Logistics share price is up 3.7% since the opening bell on 3 January.

Over the past 12 months, the small-cap ASX share has gained 6.2%.

The post Small-cap ASX share ‘well-funded’ with ‘good growth’: fund manager appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers name 3 ASX shares to buy now
• Why is the BHP share price in the green today?
• Why this ASX 200 retail share is ‘best positioned’ for 2023: Morgan Stanley
• Why Liontown, Megaport, Origin, and Tyro shares are pushing higher today
• Why is the Whitehaven Coal share price tanking 6% today?

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 recommended Silk Logistics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XTdnoH4

S&P/ASX 200 Index (ASX: XJO) retail share Premier Investments Ltd (ASX: PMV) has been tipped to outperform among ASX retail stocks in 2023 by broker Morgan Stanley.

The specialty fashion retail operator is active in Australia, New Zealand, Asia, and Europe. It has a current market cap of $4.4 billion and pays a trailing dividend yield of 3.6%, fully franked.

Why Morgan Stanley upgraded the ASX 200 retail share

Morgan Stanley analysts, led by equity analyst Joseph Michael, say Aussie retailers and their investors should prepare for a challenging year ahead.

According to Michael (courtesy of The Australian):

Retail demand and margins surprised on the upside in 2022. Looking into 2023, we expect the impact of these headwinds to intensify as savings buffers fade, the impact of rising rates flows through and reopening tailwinds dissipate…

In the current challenging backdrop we have a preference for retailers with: i) global expansion optionality; ii) margin levers; iii) track record of beating market expectations; iv) strong balance sheets; and v) high insider ownership.

Morgan Stanley said that retail share Premier Investments ticks those boxes.

The broker’s analysts noted:

We are attracted to Premier’s global expansion opportunity (via Smiggle), its long track record of beating market expectations (on apparel brand execution in the face of higher offshore competition, rent negotiations with landlords and scaling Smiggle and Peter Alexander) and capital management optionality (we see scope for more dividends/buybacks or highly accretive M&A).

Not that Premier won’t be impacted by stubbornly high inflation, likely further interest rate hikes from the RBA, and diminishing consumer savings. But the strength of the ASX 200 retail share’s balance sheet and management should see it outperform.

“It is best positioned among retailers in our coverage to navigate the tough conditions with a strong balance sheet and high-quality leadership team,” Michael said.

Morgan Stanley upgraded Premier Investments to overweight. It has a price target for the company’s shares of $30.50. That’s 11% above the current share price of $27.51.

Premier Investments share price snapshot

As you can see in the chart below, the Premier Investments share price has gained 11% so far in 2023.

Over the past 12 months, the ASX 200 retail share is up just under 2%, having fallen sharply during the initial wave of interest rate hikes.

The post Why this ASX 200 retail share is ‘best positioned’ for 2023: Morgan Stanley appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Are ASX 200 retail shares on sale in 2023?
• Falling inflation! Could the party be back on for ASX 200 retail shares?
• 2 ASX 300 retail shares to buy right now, and one to avoid: Macquarie
• Why Brainchip, IAG, Premier Investments, and Telix shares are sinking today

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 recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/sU3fk4D

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decent gain. In afternoon trade, the benchmark index is up 0.35% to 7,494 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 6% to $1.63. This is despite there being no news out of the lithium developer. However, a number of lithium shares are rising today. This may be due to optimism that lithium prices will stay higher for longer. This would be particularly good news for Liontown, which is expected to commence production next year.

Megaport Ltd (ASX: MP1)

The Megaport share price is up almost 6% to $7.33. Investors have been buying this network as a service operator’s shares after Morgans upgraded them to an add rating with a $9.00 price target. It commented: “Valuations for quality tech are now back to 20 year / long run averages (fair value). Interest rates should normalise and, assuming this occurs, investors may reassess the fact that we are back into a no growth world.”

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price is up 1.5% to $7.43. This morning, this energy company upgraded its Energy Markets earnings guidance for FY 2023. It now expects underlying EBITDA to be between $600 million and $730 million. This is up from $500 million to $650 million and excludes the potential impact of the introduction of the legislated coal price cap.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 3.5% to $1.55. This has been driven by news that Tyro has offered due diligence access to Potentia. This follows the recent non-binding takeover offer of $1.60 per share from the private equity company. While that offer was rejected, Tyro appears to be hoping that a better offer will be made once Potentia has done its due diligence.

The post Why Liontown, Megaport, Origin, and Tyro shares are pushing higher today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is this ASX 200 tech share racing 6% higher today?
• Origin share price higher on earnings guidance upgrade
• Which ASX lithium share executive just invested $1.5 million in his company?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Megaport and Tyro Payments. The Motley Fool Australia has recommended Megaport and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NqIG5yR

It’s been a generally positive day for ASX shares and the share market so far this Friday. At the present time, the S&P/ASX 200 Index (ASX: XJO) has recorded a small but solid gain of 0.34%, putting the index at just under 7,500 points. But it’s been an entirely different story when it comes to the Whitehaven Coal Ltd (ASX: WHC) share price.

Whitehaven Coal shares are having a shocker, no way around it. The ASX 200 energy share has plunged by a nasty 5.92% at the time of writing, down to $8.50 a share. That comes after Whitehaven closed at $9.04 a share on Wednesday and opened at $8.77 this morning.

So what’s up with Whitehaven that could explain this sizeable drop?

Why is the Whitehaven share price getting a whipping today?

Well, it’s not entirely clear, unfortunately. There’s been no fresh news out of Whitehaven today. Or indeed since the company posted its latest quarterly update back on 20 January.

This update was received positively at the time. Whitehaven announced that the three months to 31 December yielded a 21% increase in production against the previous quarter, as well as a 16% lift in sales.

Management is now expecting to rake in earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.6 billion for the current half. That would be a massive increase over the $600 million in EBITDA that Whitehaven delivered in the prior corresponding period.

When these earnings were released, Whitehaven shares shot up more than 6% at the time. But the company has been trending lower ever since, a trend which is obviously continuing today.

Perhaps investors feel like they got ahead of themselves with these results. After all, Whitehaven shares, even after falling more than 10% since 20 January, are still up more than 220% over the past 12 months. With gains like these, it becomes very tempting for investors to take profits off the table.

Trouble in the coal mine?

But perhaps investors have also been spooked by Whitehaven’s fellow ASX 200 coal share Coronado Global Resources Inc (ASX: CRN)

Coronado posted quarterly earnings of its own back on Tuesday of this week. While Coronado also posted some impressive numbers, investors seemed spooked by the company’s mining costs surging 34.5% over the quarter, largely a consequence of wet weather, maintenance and inflation.

Perhaps this is getting Whitehaven’s investors worried as well.

Whatever the reason for Whitehaven’s big drop today, longer-term investors would still be way ahead with this coal mining giant.

At the current Whitehaven Coal share price, this ASX 200 energy share has a market capitalisation of $3.42 billion, with a trailing dividend yield of 11.3%.

The post Why is the Whitehaven Coal share price tanking 6% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Accent, Mineral Resources, Newcrest, and Whitehaven Coal shares are dropping
• Consumer spending defies logic as inflation rages higher, locking in yet another interest rate hike in February
• Looking to energise returns with this pocket of undervalued ASX shares in 2023
• Why Whitehaven Coal shares could ‘continue rewarding’ ASX 200 investors in 2023: expert
• Should I buy ASX mining shares now or not?

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.

from The Motley Fool Australia https://ift.tt/qJltDjO

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.4% to 7,495.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 3% to $2.04. This morning, analysts at Morgans responded to the retailer’s trading update by retaining their hold rating on the company’s shares with an improved price target of $2.20. While the broker was impressed with Accent’s update, it feels there are better value options in the sector for investors.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down over 2% to $92.12. This appears to have been driven by a broker note out of Goldman Sachs. According to the note, the broker has downgraded the mining and mining services company’s shares to a neutral rating with a trimmed price target of $87.00. Goldman made the move on valuation grounds, noting: “Since upgrading MIN to a BUY on 11 April 2022, the stock is up ~58% vs. the ASX200 roughly flat (-0.2%) over the same period.”

Newcrest Mining Ltd (ASX: NCM)

The Newcrest Mining share price is down almost 3% to $22.33. This may have been caused by a broker note out of UBS. Its analysts weren’t overly impressed with the gold miner’s quarterly update. This has led to the broker cutting its earnings estimates and valuation accordingly. That latter has seen UBS retain its neutral rating but cut its price target to $21.00. It sees better value in other gold shares.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 6% to $8.49. This is despite there being no news out of the coal miner. Though, it is worth noting that other coal shares are sinking on Friday. On another note, this morning Origin Energy Ltd (ASX: ORG) released an update this morning and spoke about the proposed coal price cap and the compensation it may receive.

The post Why Accent, Mineral Resources, Newcrest, and Whitehaven Coal shares are dropping appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Mineral Resources share price falls on Goldman Sachs downgrade
• Invested $1,000 in Mineral Resources shares 10 years ago? Here’s how much passive income you’ve made
• 5 things to watch on the ASX 200 on Friday
• Forget gold! ASX 200 blue-chip shares could be the new safe-haven asset
• Why Accent, Iluka, Myer, and QBE shares are charging 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XEj3iqz

It’s been a decent day of trading so far for the S&P/ASX 200 Index (ASX: XJO) this Friday. At the time of writing, the ASX 200 has gained a decent 0.41% and is trading at just under 7,500 points. But it’s been an even better day for the Commonwealth Bank of Australia (ASX: CBA) share price.

CBA shares are outperforming the market so far this Friday. The ASX’s largest bank share has presently gained a healthy 0.57%, which puts the bank at $109.46 a share. But earlier this morning, CBA climbed as high as $109.77. That’s a new 52-week high for CommBank shares, as you can see below:

Now, $109.77 may be CBA’s new 52-week high. But it is not the highest share price Commonwealth Bank shares have ever traded at. There’s not much in it, but back in November 2021, CBA shares hit an all-time record high of $110.19 a share. So that high watermark remains just a little out of reach, at least for now.

So why are CBA shares hitting new highs today?

Why is the CBA share price at a new 52-week high?

Well, it’s got nothing to do with any news out of the bank itself. CBA hasn’t released any meaningful ASX announcements in 2023 at all, as of yet.

So perhaps investors are betting that CBA’s upcoming trading update report will be a positive one. As my Fool colleague looked at last week, CBA is scheduled to deliver its next market update on 15 February next month.

Rising interest rates are generally good news for ASX banks, so maybe investors are expecting to see this codified in next month’s numbers.

Or maybe investors are getting excited about the prospect of more dividends from ASX’s largest bank share. As we discussed earlier this month, ASX broker Morgans has recently come out and predicted that ASX dividend investors will enjoy dividends per share worth $4.10 in the 2023 financial year.

That would be a substantial increase from CBA’s total of $3.85 in FY2022. But even better, the broker is also forecasting that CBA will keep the pay rises coming with an anticipated total of $4.55 in dividends per share by FY2024.

If that came to pass, it would represent an increase of 18.2% from FY2022’s dividend payment.

Whatever the reason for today’s share price gains and new 52-week high, I’m sure most CBA investors would be in a celebratory mood this Friday.

The post Why did the CBA share price just hit a new 52-week high? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Investing in ASX 200 bank shares? Here’s the dividend outlook for 2023
• Does the Vanguard Australian Shares ETF’s unique structure deliver better returns than the ASX 200?
• CBA shares: A decent ASX 200 passive income stock to buy?
• This could crash the earnings season party for ASX 200 bank shares: Macquarie
• What could we expect for ASX 200 bank shares this earnings season?

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.

from The Motley Fool Australia https://ift.tt/V75U4ZC

The Lake Resources NL (ASX: LKE) share price is rising today amid the company’s quarterly activities report.

Lake shares are up 2.48% and are currently fetching 82.5 cents apiece. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.48% at the time of writing. Core Lithium Ltd (ASX: CXO) shares are climbing 1.79%, while Pilbara Minerals Ltd (ASX: PLS) shares have slipped into the red, down 0.2%.

Let’s take a look at what Lake Resources reported to the market today.

$133 million available

Highlights from Lake’s quarterly report included:

• $133,266,000 of total cash balance at the end of the quarter
• Mineral resource estimate of 2.2 million tonnes of lithium carbonate equivalent (LCE)
• Inferred resources of 3.1 million tonnes of LCE
• $383,000 in payments to related parties of the entity and their associates

What else did Lake Resources report?

Lake Resources reported it is well funded with more than $133 million in cash available and no debt at the end of 2022.

The company reported a 100% boost in its mineral resources estimate during the quarter.

Another highlight was signing two offtake agreements with WMC Energy and SK On for up to 50,000 tonnes per annum of lithium carbonate from Lake’s Kachi project in Argentina.

Lake’s project extraction technology partner Lilac Solutions also managed to operate the demonstration plant at Kachi for 1,000 consecutive hours, producing 40,000 litres of lithium chloride eluate as at 31 December.

The company is aiming to deliver high-quality lithium to the battery materials supply chain using Lilac’s disruptive, ion exchange extraction technology.

Lake “strengthened” its executive team, appointing Scott Munro as senior vice president of technology, strategy, and risk. Karen Greene has also taken on the role of senior vice president of investor relations and communications.

What’s ahead?

Lake Resources is planning to complete a definitive feasibility study (DFS) by mid-2023. Demonstration plant validation will continue prior to completion of the DFS.

Lithium chloride eluate from the Kachi project, extracted by Lilac, is being shipped to Saltworks to make lithium carbonate.

More drilling is underway at Kachi to further define the resource at the project.

Lake is also continuing drilling at the Cauchari, Olaroz and Paso lithium brine projects in Argentina. Lake is aiming to “accelerate the drilling program with the intention to advance all three projects rapidly toward defined resources”.

Share price snapshot

The Lake Resources share price has returned 64% in the last year.

Lake Resources has a market capitalisation of about $15.5 billion based on the current share price.

The post Lake Resources share price rises amid quarterly update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• Will Lake Resources become profitable in 2023?
• Here are the top 10 ASX 200 shares today
• 3 catalysts for Lake Resources shares to take off in 2023
• Here are the 10 most shorted ASX shares

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.

from The Motley Fool Australia https://ift.tt/QNysoOW

S&P/ASX 200 Index (ASX: XJO) bank shares are all well into the green so far in 2023.

Here’s how the big four bank stocks have performed since the opening bell on 3 January:

ANZ Group Holdings Ltd (ASX: ANZ) shares are up 8.0%.

National Australia Bank Ltd (ASX: NAB) shares have gained 7.9%.

The Westpac Banking Corp (ASX: WBC) share price is up 4.8%.

And Commonwealth Bank of Australia (ASX: CBA) shares have gained 8.5%. The CBA share price is now edging back to retake its November 2021 all-time highs, currently trading for $109.38.

But it’s not just share price growth that attracts many ASX 200 investors to the big bank shares.

Income investors are also drawn by their historically reliable, and relatively juicy, fully franked dividend yields.

What kind of trailing dividends do the big four ASX 200 bank shares pay?

Before looking ahead at what kind of dividends ASX 200 bank share investors might expect in 2023, here are the yields they’ve delivered over the past 12 months, all 100% franked.

Remember, when looking at dividends, most often you’ll see trailing dividend yields reported, as below. Future (or forecast) dividends are based on expected future earnings and may be higher or lower than the trailing yields accordingly.

With that said:

• NAB pays a trailing dividend yield of 4.8%
• CBA pays a trailing dividend yield of 3.6%
• ANZ pays a trailing dividend yield of 5.9%
• Westpac pays a trailing dividend yield of 5.3%

Those are the yields of yesteryear.

Now, what kind of dividend payouts can investors in ASX 200 bank shares expect in 2023?

Broker tips big boost in 2023 dividend payouts

For some insight into that, we defer to the analysts at Morgan Stanley (courtesy of The Australian Financial Review).

All up, the broker expects the big four banks to boost their combined dividends by an average of 9% in 2023.

But some of the ASX 200 bank shares are forecast to reward investors with a bigger dividend lift than others.

According to Morgan Stanley estimates:

• CBA leads the pack, forecast to deliver a 17% year-on-year increase in dividends from $3.85 per share to $4.50 per share
• NAB comes in number two and is forecast to increase its dividends by 10% from $1.51 per share to $1.66.
• Westpac is forecast to boost its dividends by 9% from $1.25 to $1.36 per share.
• ANZ (which pays the highest trailing dividend yield) lags the other ASX 200 banks here and is forecast to increase its dividend payout by 1% from the $1.46 per share paid out last year.

There you have it.

Happy income investing!

The post Investing in ASX 200 bank shares? Here’s the dividend outlook for 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman Sachs names 2 ASX dividend shares to buy now
• Forget gold! ASX 200 blue-chip shares could be the new safe-haven asset
• Does the Vanguard Australian Shares ETF’s unique structure deliver better returns than the ASX 200?
• 5 things to watch on the ASX 200 on Wednesday
• Everything you need to know about Wednesday’s Australian inflation data release

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 recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/QgsSi6a

The Megaport Ltd (ASX: MP1) share price is on course to end the week strongly.

In morning trade, the network as a service provider’s shares are up 6% to $7.34.

Why is this ASX 200 tech share racing higher?

The catalyst for the rise in the Megaport share price on Friday has been the release of a bullish broker note out of Morgans.

According to the note, the broker has upgraded the ASX 200 tech share to an add rating with a $9.00 price target.

Based on where its shares are currently trading, this implies potential upside of over 22% for investors over the next 12 months.

Why did the broker upgrade Megaport shares?

The broker made the move on the belief that the risk/reward on offer with Megaport shares is compelling now after a period of share price weakness.

Morgans also believes that the worst is over for ASX 200 tech shares and that valuations are fair again. And with global economic growth likely to struggle in the near term, it feels that investors could soon return to the tech sector. It explained:

In CY22 we had an underweight view on the technology sector. CY22 was brutal for technology and growth stocks. Inflation/interest rates were the main culprit. As we look into CY23 we think it’s improbable interest rate rises will be anywhere near as dramatic as CY23 so the macro backdrop looks better for tech.

Valuations for quality tech are now back to 20 year / long run averages (fair value). Interest rates should normalise and, assuming this occurs, investors may reassess the fact that we are back into a no growth world. […] Quality tech can grow regardless of weak economic conditions. Profit growth should reignite interest in the tech sector once again and this profit growth should drive share price appreciation.

The post Why is this ASX 200 tech share racing 6% higher today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• My top predictions for ASX All Ords shares in 2023
• Watch these 2 ASX 200 growth shares take off this year: expert
• My ASX shares fell 15% last year. Here’s what I’m doing now
• Here are the top 10 ASX 200 shares 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 positions in and has recommended Megaport. 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.

from The Motley Fool Australia https://ift.tt/Heiq7tG

S&P/ASX 200 Index (ASX: XJO) healthcare share ResMed Inc (ASX: RMD) is marching higher in morning trade.

ResMed shares closed yesterday trading for $32.96 per share and are currently trading for $33.71, up 2.28%.

This comes after the blue-chip healthcare stock released its quarterly second-quarter results for the 2023 financial year (Q2 FY23) this morning.

Read on for the highlights.

What results did the ASX 200 healthcare share report?

The ResMed share price is in the green after the ASX 200 healthcare share reported revenue of $1.03 billion for the three months ending 31 December. That’s up 16% from the prior corresponding period of Q2 FY22 when the company reported revenue of $849.9 million.

On a constant currency basis, revenue grew by 20%. ResMed credited this to increased demand for its sleep and respiratory care devices coupled with a diminished competitive supply.

Meanwhile, gross margin contracted by 0.30% to 56.1% while income from operations increased 13% from the prior corresponding period. This helped drive ResMed’s non-GAAP (Generally Accepted Accounting Principles) operating profit up 14%.

Diluted earnings per share (EPS) came in at $1.53, up 12% from the $1.37 EPS in the prior corresponding quarter. EPS was lifted by strong sales but received some headwinds from higher operating expenses over the quarter.

ResMed declared a quarterly cash dividend of 44 cents per share with a record date of 9 February. The dividend will be paid out on 16 March.

What did management say?

Commenting on the quarterly results sending the ASX 200 healthcare share higher today, ResMed CEO Mick Farrell said:

We significantly increased production and delivery of flow generator devices to meet the incredible demand from customers, resulting in strong sales growth in the Americas, and solid overall performance for our business across 140 countries…

We cleared the final regulatory hurdles and closed the acquisition of MEDIFOX DAN, expanding our outside-hospital Software-as-a-Service (SaaS) business to its first market outside the US. We will deliver ongoing, sustainable growth through this exciting expansion of our business model in Germany, with strong links to both our global SaaS business and our market-leading German business in sleep and respiratory care.

How has this ASX 200 healthcare share been tracking?

The ResMed share price is off to a strong start in 2023, up 11% since the opening bell on 3 January.

As you can see in the chart below, over the past 12 months the healthcare share has gained 7%.

The post ASX 200 healthcare share charges higher as quarterly revenue surges appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares to buy in the hottest sector for 2023: Firetrail
• 3 excellent ASX 200 growth shares with major upside potential: analysts
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares tipped to rise higher: experts

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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/B2fbVlw