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It’s a good day to be invested in Fortescue Metals Group Limited (ASX: FMG) shares. Or, at least, it was.

The stock soared 0.9% earlier this morning to ink a new 52-week high of $23.12. That’s the highest it’s been in 17 months.

However, the iron ore giant’s notable gains didn’t last. The Fortescue share price has slipped to trade at $22.91 at the time of writing, 0.04% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 0.88% at the time of writing while the S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.76%.

So, what might be going on with Fortescue shares today? Let’s take a look.

What’s going on with Fortescue shares today?

Fortescue popped to long-forgotten heights before dropping to near its previous close on Friday morning amid Goldman Sachs’ backhanded outlook.

The top broker today said it saw the ASX mining sector as “more fairly valued” amid China’s reopening.

It also noted it wouldn’t be surprised if share prices in the sector retraced this quarter but was expecting big things for miners in the second half of this year as commodity prices recovered.

That sounds like good news for Fortescue shares, right? Unfortunately not. The stock has been downgraded by the broker.

Goldman Sachs is bearish on the iron ore giant, saying spending on decarbonisation will likely take its toll on the company’s bottom line and future dividends.

The broker now has a $13.40 price target on Fortescue shares – representing a potential 41% downside.

It’s also worth noting the stock has been on a roll this week. Even considering today’s slump, the company’s share price is still 5% higher than it ended last week.

That’s despite the company’s chief financial officer handing in his resignation on Monday. Ian Wells is just the latest executive to walk away from the ASX 200 giant.

The post Why did Fortescue shares just crack a new, 52-week high? appeared first on The Motley Fool Australia.

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More reading

• Goldman tips Fortescue share price to crash 42%
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Here’s why 2023 will be a huge year for passive income

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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ANZ Group Holdings Ltd (ASX: ANZ) shares are pushing higher again on Friday.

At the time of writing, the banking giant’s shares are up 1.5% to $24.60.

This means the ANZ share price is now 4% since the start of the year.

Can ANZ shares keep rising?

The good news is that it may not be too late to buy ANZ shares.

According to a note out of Citi this week, its analysts have retained their buy rating and $29.25 price target on the bank’s shares.

This implies sizeable potential upside of 19% for investors over the next 12 months from current levels.

But the returns don’t stop there! In addition, the broker has pencilled in a $1.66 per share dividend in FY 2023, up from $1.46 per share a year earlier. This represents a very attractive 6.7% dividend yield for investors to look forward to.

What did the broker say?

Citi revealed that it has promoted ANZ to its top pick in the banking sector. This has been driven largely by its exposure to institutional banking. The broker is expecting this side of ANZ’s business to be a strong performer in FY 2023 thanks to the re-emergence of structural tailwinds.

In addition, Citi highlights that the company’s commercial banking business is well-placed in the current environment.

As a result, it believes investors should focus less on its retail banking operations and more on its commercial and institutional banking operations. It said:

The market narrative around ANZ, is in our view, too focused on the retail banking division.

Citi isn’t alone with its positive view on ANZ shares. Earlier this week, the team at Credit Suisse retained its outperform rating and $29.00 price target on the bank’s shares.

The post Buy ANZ shares now for 19% upside AND generous dividend income: broker appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 bank shares are the ones to buy in 2023?
• Top ASX dividend shares to buy in January 2023
• Top brokers name 3 ASX shares to buy today
• Can income investors bank on a 7% dividend yield from ANZ shares?
• Can ASX bank shares deliver in 2023 after higher interest rates?

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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This year is shaping up to be transformative for Sayona Mining Ltd (ASX: SYA).

The lithium up-and-comer expects to restart production at its flagship North American Lithium (NAL) project this quarter. That should see the company with saleable spodumene concentrate in its hands.

No doubt, then, many market watchers might be hopeful the company’s bottom line could end in the green this year. However, there’s likely more to its journey to profitability.

The Sayona share price is currently 23 cents, 62% higher than it was this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen around 3% over the last 12 months.

Let’s take a closer look at what 2023 might bring for the ASX 200 lithium share and when investors might expect it to become profitable.

What might 2023 hold for Sayona Mining?

Fans of Sayona Mining may be excited about the company’s plan to kick off production at the NAL operation in the coming weeks.

It boasts a 75% holding in the operation, with the other 25% owned by Piedmont Lithium Inc (ASX: PLL).

The restarting of the NAL operation will see an offtake agreement with Piedmont come into play, entitling it to snap up the greater of 113,000 tonnes of spodumene concentrate or 50% of the operation’s production.

Indeed, Sayona’s first revenue will likely occur this year. Though, there’s more to profitability than a revenue stream. Let’s dive into the company’s balance sheet.

Breaking down the ASX 200 lithium company’s balance sheet

Sayona Mining’s net cash flow came to a $25.6 million loss in the September quarter. Of that, $5.1 million went towards exploration and evaluation, while $15.5 million was spent on development activities.

Sayona Mining is developing its 60%-owned Moblan Lithium Project and its Authier Lithium Project. It’s also exploring a recently acquired parcel of claims to the west of Moblan.

On top of that, it boasts lithium, gold, and graphite projects in Western Australia. Though, the majority of its Australian lithium assets are subject to earn-in agreements.

All that exploration activity, as well as upgrades to the NAL operation (tipped to cost around $100 million), mean the company’s expenses are relatively notable.

It ended the September quarter with $159.2 million of cash and equivalents. The company previously said it had enough cash to fund it through to the end of this financial year.

After that, it will likely need extra cash to move to the downstream processing of spodumene to lithium carbonate and hydroxide.

When might Sayona Mining post a profit?

With all that in mind, while it’s possible Sayona Mining could reveal a profit this year, I won’t be surprised if it doesn’t.

However, the company is planning to bring its Abitibi hub – comprising the NAL operation and the Authier Lithium Project – into production over this year and next.

The hub is expected to produce up to 220 kilotons of spodumene 6%, or 30 kilotons of lithium carbonate equivalent.

The milestone could produce “sustainable cash flows”, putting Sayona “on a fast track to go downstream into value-added lithium carbonate or hydroxide production”, the company said in its latest quarterly update.

Meanwhile, production at Moblan is tipped for 2025 to 2026, and the company is planning to continue expanding its production capabilities into 2027 and beyond.

Thus, profitability might not evade the ASX 200 lithium share for much longer.

The post Will Sayona Mining turn a profit in 2023? appeared first on The Motley Fool Australia.

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More reading

• Which ASX lithium shares are producing and which are not in 2023?
• Here are the top 10 ASX 200 shares today
• Will 2023 be a golden year for ASX 200 mining shares?
• These 3 ASX 200 lithium shares outperformed all others in 2022
• Could higher global EV sales boost ASX 200 lithium shares?

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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2022 was a great year for ASX 200 dividend share investors. And here’s hoping 2023 will be equally as lucrative.

Of course, we can’t know what this year will bring until it’s over. But today, let’s talk about 3 ASX 200 dividend shares that I own which I think will bring home the bacon in 2023.

3 ASX 200 dividend shares I own for income in 2023

National Australia Bank Ltd (ASX: NAB)

I have owned NAB for a number of years now, and, while this ASX 200 bank share has had a few ups and downs over that time, no one can deny its dividend chops.

As a bank share, NAB has always had a reputation for hefty and fully franked dividend income. The pandemic put a bit of a stopper in the dividend cash flowing to investors over 2020 and (less so) 2021.

But last year saw NAB’s dividends come back with a vengeance. The bank doled out full-year dividends worth $1.51 per share. Some ASX brokers are predicting NAB will keep the pay rises coming over the next few years too. So I’m holding on to my NAB shares this year and beyond in great anticipation.

Adairs Ltd (ASX: ADH)

Adairs is another ASX 200 dividend share I’m holding in 2023. Like many ASX retailers, the Adairs share price has had a rough year or so. But this has boosted the company’s fully franked trailing dividend yield to around 6.5%.

There’s no guarantee that Adairs will pay out the same 18 cents per share this year that it did last year. But I think there’s a strong chance, considering Adairs’ quality and numbers from FY2022.

Earlier this month, ASX broker Goldman Sachs forecast Adairs’ dividends to hit a total of 20 cents per share in FY2024. So this is another dividend payer that I am very content to have in my portfolio going forward.

Vanguard Australian Shares Index ETF (ASX: VAS)

My final share up for discussion today isn’t really a share. Rather this exchange-traded fund (ETF) from Vanguard is an index fund that covers the 300 largest shares listed on the ASX. That’s a lot of dividend payers to have under one roof.

2022 was a fantastic year for investors of this ETF in terms of dividend distributions, with the fund forking out its highest annual payouts ever. The way this ETF is weighted basically ensures strong income if the big banks and miners on the ASX pay up.

I think there is a good chance we will see big dividends out of these companies over the coming year, so I’m happy to stand in line and wait to see what this ETF throws up.

The post 3 ASX 200 shares I own for big dividends in 2023 appeared first on The Motley Fool Australia.

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More reading

• Are nervous investors returning to the ASX stock market right now?
• Which ASX 200 bank shares are the ones to buy in 2023?
• Invested $1,000 in the Vanguard Australian Shares ETF (VAS) 5 years ago? Here’s how much dividend income you’ve received
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in Adairs, National Australia Bank, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. 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 stock market is in the green this morning as investors digest the latest inflation report from the US. The S&P/ASX 200 Index (ASX: XJO) is currently up by 0.95%.

This latest boost for the ASX appears to be inspired by overseas events as the S&P 500 Index (INDEXSP: .INX) rose 0.3% in response to positive signs for inflation. The iShares S&P 500 ETF (ASX: IVV) (the ASX-listed version) return is negative (by 0.4%) amid a weaker US dollar because it trades in Australian dollars.

What did the latest US inflation numbers say?

According to reporting by CNBC, the consumer price index dropped by 0.1% in December, which is what experts were largely anticipating.

Excluding food and energy, core CPI rose by 0.3% — this was also in line with estimates.

Year over year, headline CPI rose 6.5% and core inflation was up 5.7%. Prices at the petrol pump dropped by 9.4% for the month and are now down 1.5% year over year, according to CNBC.

Retail investors predicted to drive the ASX stock market

In 2020, powered by government stimulus, retail investors collectively played their part in driving the stock market higher after the COVID-19 crash.

Interestingly, Vanda Research has suggested that small US investors appear to be coming back to the stock market and could help push shares higher in the coming months, according to reporting by the Australian Financial Review.

Vanda said in a note:

Retail investors tend to buy equities more aggressively in January and February, following weak net buying in November and December. Moreover, purchases typically see a stronger rebound in January when the S&P500 posts poor returns in December during a down year.

While it is difficult to imagine retail activity jumping 3-7x given the already fourfold rise post-COVID, the continued downtrend in CPI inflation recorded in today’s print could usher an improvement in risk appetite from very bearish levels, pushing retail flows towards the high end of the monthly purchases range (max $US29 billion in Aug ’22).

This could set off another short-term virtuous loop for equities, drawing, at a minimum, some participation from rule-based systematic investors.

The AFR also pointed out that Vanda noted that retail investors reportedly make more investments going into reporting season:

We expect this historical pattern to repeat over the coming weeks, boosting retail purchases. On the flip side, this means that retail activity could start to wane in mid-February after most of the more prominent companies of the S&P 500 will have reported their Q4 results.

Foolish takeaway

The stock market can be influenced by how much demand there is for buying shares. If there’s more demand, it could push up valuations a bit. It’ll be interesting to see if Vanda’s theory plays out in the next few months.

The post Are nervous investors returning to the ASX stock market right now? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Can Woodside shares keep delivering stellar gains in 2023?
• 5 ASX 200 shares smashing new, 52-week highs on Thursday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iShares S&p 500 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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This year could be a great time to start investing in ASX shares in 2023 for beginners for a few different reasons.

I think investing in ASX shares can be a great way to build wealth over the long term.

Historically, the ASX share market has returned an average of between 9% to 10% per annum. That includes dividends being re-invested, but not any relevant franking credits.

One of the advantages is that investors can begin with as little as $500. Buying a property can take a deposit of tens of thousands of dollars.

If $500 were to compound at 10% per annum for a decade, it would grow to around $1,300. But, we don’t know what future returns are going to be. It could grow to an even bigger amount or less than that.

Though, over any given year, share prices can seem quite volatile. But that’s normal.

Just look at how Commonwealth Bank of Australia (ASX: CBA) shares have moved over the past 12 months.

What would be a good place to invest $500?

There are a few different ways to invest for beginners.

Starting by investing in a business that we see in everyday life could be a good place to begin with. It might be more tangible for an investor to see their business in real life.

Examples of blue chips that might be interesting include Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Westpac Banking Corp (ASX: WBC), Wesfarmers Ltd (ASX: WES) (which owns Bunnings and Kmart), REA Group Limited (ASX: REA) (which owns realestate.com.au) and Qantas Airways Limited (ASX: QAN).

But, if it’s hard to make a choice, there are ASX share investments that enable people to invest in a whole group of businesses in one investment. Investors can buy a whole basket of shares in one go. One of the most popular ways to do it is called an exchange-traded fund (ETF).

There are ETFs that investors can pick that give access to the global share market or the Australian stock market.

For example, the iShares S&P 500 ETF (ASX: IVV) is invested in 500 of the biggest US businesses. While they are listed in the US, most of them are global companies such as Apple, Microsoft, Amazon.com, Berkshire Hathaway and Alphabet (Google). ETFs can provide great diversification.

ETFs are administered by a fund manager, and that fund manager charges an annual fee. The iShares S&P 500 ETF has a very low fee of just 0.04% per annum, while there are others that can charge 1% or even more. The higher the fee, the more the long-term value of the portfolio is reduced. The effect of fees compound as well.

But, I don’t think beginners should go for a small, or risky, ASX share to start with. It’s good to start with an investment that has a good chance of working out well.

However, The Motley Fool website is a great place to find resources on researching ASX shares and industries.

Foolish takeaway

I think ASX shares can be a really good way to grow $500 into a larger amount over the long term. But, whatever an investor goes for, it’s important to be patient. A good investment can take a while to play out into a positive outcome. Share market volatility can be painful in the short-term, but can provide opportunities to buy shares at cheaper levels.

The post How I’d invest my very first $500 in ASX shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 bank shares are the ones to buy in 2023?
• Buy Telstra and this ASX 200 dividend share: Morgans
• Why I think these 3 ASX 200 dividend shares are top buys for retirement
• Dividend stocks: Why I’m buying now for supercharged and long-lasting passive income
• 5 ASX 200 shares smashing new, 52-week highs on Thursday

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, REA Group, Westpac Banking, and iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Life360 Inc (ASX: 360) share price is roaring higher on Friday morning.

In early trade, the location technology company’s shares were up 14% to $5.57.

The ASX All Ords tech share has pulled back a touch since then but remains up 7% to $5.23.

Why is the Life360 share price charging higher?

As well as getting a boost from a rebound in the tech sector, investors have been bidding the Life360 share price higher today after the company released a trading update.

According to the release, the company’s strong performance continued in the fourth quarter of 2022. This saw core Life360 subscription revenue (excluding Tile and Jiobit) growth exceeding 54%, which was in line with guidance.

In addition, the company confirmed that its year end cash position met guidance, with cash balance of $90 million, adjusted for $32 million of net placement proceeds.

Also meeting guidance was its full year revenue and adjusted EBITDA. It is expected to come in at the lower end of its guidance range of US$225 million to US$240 million in revenue and an EBITDA loss of US$37 million to US$41 million.

Pleasingly, Life360 revealed that it has experienced a resumption of normalised growth and churn patterns since the completion of iOS price changes in mid-December.

Restructure

Another positive that could be boosting the Life360 share price is the announcement of a restructure that will reduce its workforce by 14% and generate cost savings of US$15 million.

This restructure enables the streamlining of operations to drive lower operating expenses, and a sharpened focus on the company‘s key strategic product initiatives to enhance its leadership in family safety and security.

Together with continuing strong subscription revenues, the restructure is expected to deliver positive operating cash flow and adjusted EBITDA from the second quarter of 2023. This is a quarter earlier than previously announced. Management also then expects to report positive operating cash flow and adjusted EBITDA for the full year.

Life 360 CEO, Chris Hulls, appears confident on the year ahead. He said:

We are moving into 2023 in a very strong position to pursue our global growth agenda, with significant upside opportunity from the launch of the bundled hardware subscription in Q1, a strong balance sheet and an accelerated trajectory to profitability.

The post Why this ASX All Ords tech share is rocketing 14% today appeared first on The Motley Fool Australia.

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More reading

• Can ASX tech shares rise from the ashes in 2023?
• Leading brokers name 3 ASX shares to buy today
• 23 ASX shares to buy in 2023 – brokers
• Bell Potter names the ASX tech shares to buy in 2023
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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 S&P/ASX 200 Index (ASX: XJO) bank share sector has a number of potential ideas to think about.

I think that the big four names of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) have scale advantages that others in the sector don’t have.

Before considering the big four ASX bank shares, I’ll point out that my preferred name in the financial share sector is Macquarie Group Ltd (ASX: MQG) because of its global earnings base, long-term growth focus and revenue diversification across different sectors.

The current environment of rising interest rates is seen as a positive for banks because they are able to pass on the interest rate rises faster to borrowers than savers. It’s enabling them to increase their net interest margin (NIM).

A NIM measures the overall lending rate of a bank compared to the cost of that funding.

For example, if a bank has lent $200,000 with an interest rate of 4.5%, and there is also a saver with $200,000 in a savings account with an interest rate of 2.5%, this translates into a NIM of 2%.

Which ASX 200 bank shares could make good investments?

The CBA share price has seen plenty of volatility over the past year. But, it has managed a gain over the past 12 months.

However, one of the main downsides to the bank as an investment at the moment is the valuation. The share price by itself doesn’t give much context to whether it’s expensive. We can look at the price/earnings (P/E) ratio which shows us what multiple of the earnings the share price is currently valued at. The higher the number, the more expensive it seems.

When comparing similar businesses, such as big banks, a significantly higher P/E ratio can make it stick out.

According to (independent, third party) estimates on Commsec, the CBA share price is valued at more than 17 times FY23’s estimated earnings.

CBA is a great bank. However, its business activities are very similar to the other big banks, and I’m not sure it deserves to trade on an earnings valuation that’s around a third more expensive.

I think the job that NAB’s management is doing at cranking up the performance is very good. The focus on the basics seems to be working as it’s leading to profit growth. I believe NAB is in good hands with the CEO and chair. Commsec numbers put the NAB share price at just over 12 times FY23’s estimated earnings.

In my opinion, NAB is the leading domestic ASX 200 bank share to choose from.

The other two large banks are also interesting investment considerations. The Westpac share price is valued at just 11 times FY23’s estimated earnings. Westpac’s cost reduction plan and rising NIM will hopefully be enough for the business to achieve good profit growth, combined with a good dividend yield.

ANZ also trades on a cheap valuation, and the bank’s retail division has been improving – its loan processing times are now on the same level as competitors. However, the proposed acquisition of the banking division of Suncorp Group Ltd (ASX: SUN) could be a major distraction for management. Even so, it’s only valued at 10 times FY23’s estimated earnings.

Expert views

Looking at the analyst ratings on Commsec, seven rate ANZ as a buy, none rate CBA as a buy, six rate NAB as a buy and nine rate Westpac as a buy.

The post Which ASX 200 bank shares are the ones to buy in 2023? appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy NAB shares right now: Goldman Sachs
• Here’s why 2023 will be a huge year for passive income
• Top ASX dividend shares to buy in January 2023
• Buy these strong blue chip ASX 200 shares now: analysts
• Top brokers name 3 ASX shares to buy 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price has started 2023 in a positive fashion.

As you can see below, the lithium developer’s shares have rebounded strongly from significant weakness in December.

This leaves Core Lithium’s shares trading almost 17% higher year to date at $1.19.

Where next for the Core Lithium share price?

Unfortunately, the team at Goldman Sachs believes the company’s shares are heading lower again from here.

According to a note from this morning, the broker has reiterated its sell rating and 95 cents price target.

Based on the current Core Lithium share price, this suggests that the ASX 200 lithium share could tumble 20% over the next 12 months.

What did the broker say?

The main reason for Goldman’s bearish sentiment is the company’s valuation. The broker explained:

CXO looks relatively expensive vs. peers trading at 1.4x NAV (peer average ~1.0x; on GSe LT US$1,000/t spodumene), pricing in ~US$2,050/t (peer average ~US$1,100/t) or implying current pricing persists for ~1.5 years (peer average <1 year), while also having the lowest average operating FCF/t LCE — essentially embedding significant resource upside and capacity expansion/life extension ahead of fundamentals, in our view.

Goldman also believes production risks are not appreciated by the market. It adds:

We see production risk as the Finniss project moves through ramp up on project complexity (moving between different open pits and underground configurations), and the required exploration/resource upside to support capacity expansion/life extension currently priced into the stock looks significant.

Overall, the broker feels investors should be skipping Core Lithium and buying rival Allkem Ltd (ASX: AKE) right now. As covered here, Goldman Sachs has a buy rating and $15.20 price target on the latter.

The post Here’s what Goldman Sachs is saying about the Core Lithium share price now appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Which ASX lithium shares are producing and which are not in 2023?
• Why has the Core Lithium share price already surged 18% this year?
• Will Core Lithium turn a profit in 2023?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor James Mickleboro has positions in Allkem. 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 last five years have been good for the Vanguard Australian Shares ETF (ASX: VAS).

The exchange-traded fund (ETF) tracking the S&P/ASX 300 Index (ASX: XKO) has seen its unit price shoot 16.5% higher in that time.

The VAS ETF was trading at $77.28 in January 2018. At that price, $1,000 would have bought 12 units, leaving an investor with around $73 in change.

Today, its units are swapping hands for $90 apiece. That means our figurative parcel would now be worth $1,080.

For comparison, the ASX 300 has gained 20.3% in that time.

But how much has the VAS ETF returned when we also factor in the dividends it’s handed out in that time? Let’s take a look.

How much has the VAS ETF paid in dividends in 5 years?

Here are all the dividends offered by the Vanguard Australian Shares ETF over the last half-decade, rounded to the nearest cent:

VAS dividends’ pay date	Dividend value
October 2022	$1.45
July 2022	$2.16
April 2022	$2
January 2022	70 cents
October 2021	$1.41
July 2021	56 cents
April 2021	77 cents
January 2021	43 cents
October 2020	57 cents
July 2020	21 cents
April 2020	67 cents
January 2020	72 cents
October 2019	$1.07
July 2019	82 cents
April 2019	92 cents
January 2019	71 cents
October 2018	$1.12
July 2018	$1.02
April 2018	67 cents
January 2018	68 cents
Total:	$18.66

As the chart above shows, each Vanguard Australian Shares ETF unit has provided $18.66 in dividends over the last five years.

That means our 12-unit-strong parcel likely yielded $223.92 in that time – or around 24% of its purchase price.

Further, the ETF has returned 40.6% since January 2018 when we tally both dividends and share price gains. That’s certainly nothing to scoff at.

And those returns might have been bolstered if our imagined investor had reinvested their dividends, thereby compounding their holding.

Right now, the Vanguard Australian Shares ETF is trading with a 7% dividend yield.

The post Invested $1,000 in the Vanguard Australian Shares ETF (VAS) 5 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Here’s why 2023 will be a huge year for passive income
• Generations of Aussie investors own this ASX ETF. Do you?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• The Vanguard Australian Shares Index ETF (VAS) sank 9% in 2022. What’s the outlook for 2023?
• Chasing the latest Vanguard Australian Shares (VAS) ETF payout? Don’t miss the cut-off

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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