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ASX mining share Norwest Minerals Ltd (ASX: NWM) shot the lights out on Thursday. The junior miner’s share price screamed 60% higher on a positive company update.

Investors went positively crazy over the stock, with more than 30 million shares traded today. To put that into perspective, Norwest has a 30-day average trading volume of 362,000 per day.

The Norwest share price finished the session at 7.2 cents.

What did the ASX mining share report?

The gold and base metals explorer released assay results from its maiden drilling program at its 100% owned Bali Copper Project in Western Australia today.

The assay results from 33 drill holes showed “broad intervals of significant copper mineralisation”.

One example is 1.4% copper at 52 metres from 0 metres, including 4.4% copper at 12 metres from four metres. Sixteen individual metres of copper assaying above 3% was found.

The highest concentration discovered was 11.2% copper.

The assay results also showed intervals of lead, zinc, and silver.

The Bali Copper Project comprises approximately 8km of the Bali shear zone. Norwest says the area has “numerous copper and other base metal prospects”.

What did the company say?

Norwest CEO Charles Schaus commented:

This is the first drilling undertaken at Bali since 1989 and we are very encouraged by the results.

The program tested each of the four prospects by systematic drilling of holes along strike with the aim of locating the source(s) for the high-grade copper exposed at surface.

All prospects returned one or more wide drill intersections of copper mineralisation.

Norwest also reported that mapping and rock chip assays have identified seven further copper-rich veins at the site. Plans for another drilling program are now underway.

Norwest share price snapshot

The Norwest Minerals share price has risen by 137% over the past six months.

However, it has halved in value since listing on the ASX at 14 cents back in November 2018.

Norwest Minerals has a market capitalisation of around $15 million based on the current share price.

The post Guess which ASX mining share exploded 60% on Thursday appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 3 ASX growth shares to own in 2023
• 3 catalysts that could boost Novonix shares in 2023
• Here are the top 10 ASX 200 shares today
• Why I think these 3 ASX 200 dividend shares are top buys for retirement
• Buy this ASX 200 bank share with 21% upside: Morgan Stanley

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

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Last year was undoubtedly a traumatic year for holders of Novonix Ltd (ASX: NVX) shares. The share price of the battery technology company was slashed by 84% in 2022 as investors turned their backs on cash furnaces en masse.

This year is shaping up to be another capital-intensive 12 months for Novonix. However, there are still a few developments that could put a fire under Novonix shares in 2023.

1. Electric vehicle adoption continues

Most will know of the cataclysmic descent that Tesla Inc (NASDAQ: TSLA) shares have experienced lately. One of the pressures contributing to the fall has been the concern of a central bank-induced recession in 2023.

The prevailing view is that electric vehicle (EV) sales will decrease as consumer spending weakens. However, a number of analysts still expect EV adoption to rise throughout 2023 and the proceeding years.

J.D. Power, a United States consumer research firm, is forecasting EV market share to grow from 7% to 12% this year. In a similarly bullish tone, global professional services firm Ernst & Young expects electric vehicle sales in the US, China, and Europe to surpass all other engines by 2030.

If EVs continue to make use of lithium-ion batteries, there’s a possibility that Novonix shares could benefit from the increased cathode and anode demand.

2. Inflation Reduction Act could boost Novonix shares

The Inflation Reduction Act (IRA) was introduced by the White House in August last year. Around $370 billion is aimed at funding clean energy and securing a robust supply chain for green materials in the US.

Furthermore, part of the IRA entails a $7,500 consumer tax credit on EVs using IRA-compliant materials. In other words, car manufacturers are incentivised to partner with critical mineral producers in the US.

Novonix is strategically constructing its facilities within the US and could catch a tailwind from this government legislation.

It is worth noting that Tesla recently filed to construct a 1.4 million square feet expansion to its Giga Texas facility — which includes a US$216 million cathode production building.

3. Potential for more China tariffs

The third and final catalyst that could give Novonix shares a boost in 2023 involves China and tariffs. Section 301 tariffs on imports from China into the United States are under review, as stated in the company’s recent annual general meeting presentation.

A previously enforced 25% tariff on artificial graphite from China could soon be removed. This temporary waiver was set to expire at the end of 2022. If removed, the supply of graphite from Novonix could look economically more appealing to suppliers.

If any change in tariffs bolsters the company’s future demand for offtakes, the Novonix share price could benefit.

The post 3 catalysts that could boost Novonix shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• The Novonix share price crashed a whopping 84% in 2022. What’s next?
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares are leading the market higher today

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

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There was likely a spring in the step of S&P/ASX 200 Index (ASX: XJO) investors today as the market jumped higher. The index closed Thursday’s session 1.18% higher at 7,280.4 points.

It followed a joyous session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI) lifted 0.8% on Wednesday while the S&P 500 Index (SP: .INX) rose 1.3% and the Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.8%.

Back home, the banks led the way, with the S&P/ASX 200 Financials Index (ASX: XFJ) flying 1.5% higher.

The S&P/ASX 200 Energy Index (ASX: XEJ) also posted a 1.2% gain after a strong night for oil prices and bullish comments from market experts.

Bringing up the ASX 200’s rear on Thursday was the S&P/ASX 200 Utilities Index (ASX: XUJ). It rose just 0.2%.

So, with all that in mind, let’s take a look at the shares that posted the ASX 200’s biggest gains today.

Top 10 ASX 200 shares countdown

Lithium share Pilbara Minerals Ltd (ASX: PLS) took out today’s top spot with a 4.5% gain, closing the session at $4.16. That leaves it a whopping 15% higher than where it started 2023.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$4.16	4.52%
Liontown Resources Ltd (ASX: LTR)	$1.565	4.33%
West African Resources Ltd (ASX: WAF)	$1.25	3.31%
Imugene Limited (ASX: IMU)	$0.17	3.03%
Lake Resources N.L. (ASX: LKE)	$0.865	2.98%
Boral Limited (ASX: BLD)	$3.18	2.91%
Domain Holdings Australia Group Ltd (ASX: DHG)	$2.92	2.82%
Fortescue Metals Group Limited (ASX: FMG)	$22.92	2.78%
ASX Ltd (ASX: ASX)	$67.99	2.7%
Corporate Travel Management Ltd (ASX: CTD)	$16.67	2.65%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Can Woodside shares keep delivering stellar gains in 2023?
• 5 ASX 200 shares smashing new, 52-week highs on Thursday
• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher

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

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When building a retirement portfolio, I would look for S&P/ASX 200 Index (ASX: XJO) shares with defensive qualities, strong business models, positive long-term outlooks, and a track record of dividend payments

By doing this, I believe you will be left with a portfolio that has the potential to grow at a solid rate in the future whilst also providing you with a growing source of passive income in retirement.

But which ASX 200 shares could be top options for a retirement portfolio? Three that I would consider buying are listed below.

Coles Group Ltd (ASX: COL)

I think this supermarket giant could be a quality option for a retirement portfolio. That’s because Coles encompasses all of the desirable traits I outlined above. This is particularly the case with its defensive qualities. You only need to look at the company’s performance during the pandemic to see that.

In respect to dividends, Morgans is expecting Coles to pay fully franked dividends of 64 cents per share in FY 2023 and 66 cents per share in FY 2024. This represents yields of 3.8% and 3.9%, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 share that I believe would be a great option for retirees is Telstra. It is of course Australia’s largest telco, providing millions of people with internet and phone services.

If times were hard, my phone and internet would be the last things I would give up. And I’m sure I’m not alone in that. I feel this makes Telstra a defensive option for investors.

And while its growth has been lacking over the last decade, its T22 and T25 strategies have changed that. Telstra is now targeting mid-single digit underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

Morgan Stanley expects this to underpin fully franked dividends of 17 cents per share in FY 2023 and 18 cents per share in FY 2024. Based on the latest Telstra share price, this will mean yields of 4.2% and 4.5%, respectively.

Transurban Group (ASX: TCL)

A final ASX 200 share that I would buy for a retirement portfolio is Transurban. It is a toll road operator with a collection of important roads across Australia and the United States. These include CityLink in Melbourne, WestConnex in Sydney, and the Logan Motorway in Brisbane.

I believe Transurban looks well-placed for long-term growth thanks to population growth, urbanisation, and the value of time. In respect to the latter, Transurban estimates that customers using its roads (compared to alternative routes) saved a total of 323,000 hours of travel time each workday in FY 2022.

Combined with its positive exposure to inflation (toll increases) and significant growth pipeline, I’m confident that Transurban will provide investors with a growing stream of dividends over the next decade.

For now, Citi is expecting the company to pay dividends of 53 cents per share in FY 2023 and 55.8 cents per share in FY 2024. This equates to yields of 4% and 4.2%, respectively.

The post Why I think these 3 ASX 200 dividend shares are top buys for retirement appeared first on The Motley Fool Australia.

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More reading

• Can Telstra shares deliver 16% upside AND a healthy dividend this year?
• Brokers name 2 ASX dividend shares to buy now
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• I’d listen to Warren Buffett and invest in ASX shares with wide economic moats
• Buy Telstra and this ASX 200 dividend share for income in 2023: brokers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra 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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The S&P/ASX 200 Index (ASX: XJO) bank share Macquarie Group Ltd (ASX: MQG) is seen as a compelling opportunity, according to Morgan Stanley.

The Macquarie share price has seen plenty of pain over the past year. In the last 12 months, it’s down by 15%.

But, while shareholders may be nursing a financial bruise, the broker Morgan Stanley has suggested that the ASX 200 bank share could rise by more than 20% over the next year.

Reasons for the bullish call on the Macquarie share price

According to reporting by The Australian, Morgan Stanley currently has a price target of $215 on the company. That implies a possible rise of 21% at the time of writing.

One of the main reasons for the optimistic outlook for the ASX 200 bank share is US gas price volatility. When gas price volatility increases, the company’s commodities and global markets (CGM) division can generate higher earnings.

According to reporting by the newspaper, the gas price dispersion index rose by 80% year over year to a decade high in the three months to 31 December 2022.

Morgan Stanley analyst Andrei Stadnik said that the quarter for the three months to March was currently tracking at 50%. The analyst said:

We think the market gives MQG little credit for growth in commodities, but it still supports EPS [earnings per share] and dividends and generates capital for growth.

This could be important because the commodity revenue reportedly comprises around 35% of group revenue. Stadnik also reportedly noted that the European gas price volatility had remained “historically high”.

The Europe, Middle East and Africa (EMEA) regions account for around 25% to 30% of CGM’s revenue. If commodity revenues rise by 7.5%, then the analyst’s EPS estimate will increase by 6.5%.

What is the valuation?

Using the estimated numbers on Commsec, the Macquarie share price is valued at under 16x FY23’s estimated earnings, with a possible dividend yield of 3.6%, ignoring the effect of franking credits.

Of the analyst opinions that Commsec has collated, eight rate the ASX 200 bank share as a buy, five rate it as a hold, and one has a sell rating.

The post Buy this ASX 200 bank share with 21% upside: Morgan Stanley appeared first on The Motley Fool Australia.

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More reading

• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• ASX financial shares lifted the ASX 200 today
• Boost your passive income with these ASX dividend shares next year
• 3 top dividend payers of the ASX 200

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. 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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Investors around the world keep a close eye on the goings-on of Warren Buffett and the multi-billionaire’s company Berkshire Hathaway Inc (NYSE:BRK.A)(NYSE:BRK.B). However, a deal between the investing great and home-grown insurance share Insurance Australia Group Ltd (ASX: IAG) has been under Aussies’ noses for years.

The market has been reminded about a whole of account quota share (WAQS) agreement between S&P/ASX 200 Index (ASX: XJO) insurer IAG and Berkshire Hathaway subsidiary National Indemnity Company (NICO) today with news of its renewal. Though, other key deals between the pair have been scrapped.

The IAG share price is up 0.84% on the back of the announcement, trading at $4.80.

Let’s take a closer look at what agreements the pair have and haven’t renewed.

IAG share price lifts on news of Buffett agreement

The IAG share price has climbed on Thursday after the company announced it renewed one of its previous agreements with Buffett’s Berkshire Hathaway.

The renewed WAQS agreement represents 20% of IAG’s WAQS program. It came into effect on 1 January 2023 and applies until 31 December 2029.

Quota share deals see an insurer – in this case IAG – offering a reinsurer – such as NICO – a portion of insurance premiums in exchange for paying out the same portion of claims – in this case, 20%.

IAG has now renewed 30% of the 32.5% WAQS with various reinsurers. Negotiations on the remaining portion are expected to be completed in the coming months.

Meanwhile, a strategic relationship agreement and equity ownership subscription agreement previously made with Berkshire Hathaway won’t continue.

IAG formed a strategic relationship with Buffett’s company in 2015. The billionaire said at the time:

I am 84 years old and this is my first investment in an Australian company. I’ve been very derelict, but it has been worth waiting for.

Back then, Berkshire Hathaway forked out $500 million for a 3.7% stake in IAG, paying $5.57 per share.

It also agreed its stake in the ASX 200 insurer would remain between 3.7% and 14.9%. Meaning the billionaire might now be free to sell his holding in the company.

IAG chief financial officer Michelle McPherson commented in today’s release, saying:

The terms of the renewed agreement with Berkshire Hathaway’s NICO reflect the maturing of our partnership, and the removal of supporting subscription and strategic relationship agreements provides consistency with our other quota share partner arrangements.

The post What do IAG shares have in common with Warren Buffett? appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, IAG, Premier Investments, and Telix shares are sinking today
• Starting 2023 with no savings? I’d follow Warren Buffett and start building wealth
• Why AMP, Computershare, IAG, and Telix shares are dropping today
• I would follow Warren Buffett’s advice when buying ASX shares in 2023
• I’m listening to Warren Buffett and buying cheap ASX 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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has positions in and has recommended Insurance Australia Group. The Motley Fool Australia has recommended Berkshire Hathaway. 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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It’s turning out to be yet another corker of a day for the ASX share market and the S&P/ASX 200 Index (ASX: XJO) so far this Thursday.   

At the time of writing, the ASX 200 has lifted by an impressive 1.25% to back above 7,280 points.

But let’s take a deeper dig into these pleasing market machinations by taking stock of the shares currently topping the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Core Lithium Ltd (ASX: CXO)

First up today is the ASX 200 lithium producer Core Lithium. So far today, a sizeable 9.84 million of this company’s shares have been traded on the markets. There have been no big announcements out of Core Lithium today.

So we can probably put this volume down to what is happening with the company’s shares themselves. Core Lithium shares have been bouncing around a little bit today. But the company is still up by a decent 1.02% at $1.19 a share. It got as high as $1.22 earlier in the session.

Whitehaven Coal Ltd (ASX: WHC)

Next up is the ASX 200 energy share Whitehaven coal. This Thursday has had a notable 11.24 million Whteihaven shares find a new home thus far. We haven’t heard anything out of Whitehaven recently either.

However, that hasn’t stopped this coal miner from enduring a nasty slump today. Bucking the broader market, Whitehaven shares are currently down by a nasty 2.1% at $8.66, after dipping as low as $8.33 this morning. This loss is probably to blame for the high volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Finally today, we have another ASX 200 lithium share, the popular Pilbara Minerals. A hefty 20.64 million Pilbara shares have been bought and sold over this Thursday’s session as it currently stands. This looks like a consequence of the big push higher that the Pilbara share price is presently experiencing.

The leading lithium share is currently up by a whopping 3.64% to $4.12 each. As my Fool colleague touched on earlier today, this looks like a response to a big night over on the US markets for lithium stocks last night, as well as some love from ASX broker Citi.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

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More reading

• Power up: 3 best ASX 200 energy shares of 2022
• Can Woodside shares keep delivering stellar gains in 2023?
• 5 ASX 200 shares smashing new, 52-week highs on Thursday
• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher
• Oil best China reopening play: Goldman Sachs

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

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National Australia Bank Ltd (ASX: NAB) shares are having a strong day on Thursday.

In afternoon trade, the banking giant’s shares are up 2% to $30.70.

As you can see below, this means its share price is now up over 20% from its June low.

Is it too late to buy NAB shares?

The good news for investors is that Goldman Sachs doesn’t believe it is too late to buy NAB shares.

In fact, its analysts are expecting the bank’s shares to rise another 15% from current levels. The broker has a buy rating and $35.41 price target on them.

In addition, Goldman is expecting NAB to pay a $1.73 per share dividend in FY 2023. This equates to a 5.6% dividend yield, which increases the total potential return beyond 20%.

Three reasons to invest

Goldman Sachs has outlined three key reasons why it thinks investors should buy NAB shares.

The first two relate to the bank’s overweight exposure to commercial banking. It explained:

Our Buy rating on NAB is predicated on: i) NAB providing the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term, ii) our expectation that commercial lending will be better insulated from competitive pressures particularly prevalent in mortgage lending.

The third reason is the hard work it has already undertaken on cost management initiatives. Goldman said:

NAB’s cost management initiatives, which seem further progressed vs. peers, has allowed it to deliver the highest levels of productivity over the last three years, and we think this leaves it well positioned for an environment of elevated inflationary pressure (c. A$400 mn productivity savings expected in FY23).

All in all, this could make NAB a top option if you’re looking for banking sector exposure in 2023.

The post 3 reasons to buy NAB shares right now: Goldman Sachs 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
• Buy these strong blue chip ASX 200 shares now: analysts
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023
• Can ASX bank shares deliver in 2023 after higher interest rates?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?

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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A broad range of ASX dividend stocks pay attractive dividend yields to investors. I’m using the difficult period for investment markets we’re currently in to supercharge my long-term passive dividend income.

I think ASX dividend shares are a great way to grow wealth over the long term. Companies can pay and boost dividends and achieve strong price growth if the profit grows over time.

The current economic period appears particularly compelling to invest in due to the lower share prices in general across the ASX share market.

Better yields

A dividend yield can be heavily affected by movements in the short term.

If an ASX dividend stock has a dividend yield of 5%, but then the share price drops 20%, the dividend yield turns into 6%.

Think about how much of a difference that could make if someone was going to invest $1 million of cash. At a 5% yield, it would generate an income of $50,000. With a 6% yield, it makes $60,000 in income. That’s an extra $10,000 of income from the same investment just because the valuation has dropped.

The Wesfarmers Ltd (ASX: WES) share price is a good example of this. It has dropped by more than 25% since its peak in August 2021. According to Commsec, the company could pay a grossed-up dividend yield of 5.5% in FY23.

With investors pushing down share prices amid strong inflation and higher interest rates, we currently have the opportunity to invest in companies that are now paying much better yields, assuming the dividend isn’t cut. It’s a good chance to boost my passive dividend income.

Why I’m investing in ASX dividend stocks now

It’s not often that quality names like Wesfarmers fall by 20% or more.

But I don’t think that investor pessimism is going to stick around forever. At some point, the US central bank will stop raising interest rates. In 2024, there might even be interest rate cuts.

I generally believe that the share prices of good businesses will start going up again. This will have the effect of pushing down dividend yields a bit.

For example, if a business with a dividend yield of 6% sees a 10% rise in the share price, then the dividend yield is reduced to 5.4% — at least until the company increases the dividend payment for shareholders.

In the long term, I think investing at these lower prices can also give us a greater chance of achieving capital growth, on top of boosting passive income.

Recent examples of names that I’ve invested in at a lower share price for a bigger dividend yield include Brickworks Limited (ASX: BKW) and Bailador Technology Investments Ltd (ASX: BTI).

I think the lower share prices of APA Group (ASX: APA), Wesfarmers, Sonic Healthcare Ltd (ASX: SHL) and Brickworks are all attractive contenders for good dividend growth in the coming years while offering solid yield today.

The post Dividend stocks: Why I’m buying now for supercharged and long-lasting passive income appeared first on The Motley Fool Australia.

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More reading

• Why have ASX investors been buying Wesfarmers shares to hold?
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023
• Want 17% upside plus dividend income? Broker says buy Wesfarmers shares
• My top predictions for ASX 200 shares in 2023
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and Brickworks. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, and Wesfarmers. The Motley Fool Australia has recommended Bailador Technology Investments and Sonic Healthcare. 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 200 energy shares had a stellar year in 2022 and energy was the best-performing sector by a mile.

The S&P/ASX 200 Energy (ASX: XEJ) rose by 40% compared to a 5.5% dip for the S&P/ASX 200 Index (ASX: XJO).

The surge was largely due to the war in Ukraine, which has significantly disrupted the world’s energy supply arrangements and prompted massive increases in commodity prices for coal, oil, and gas.

So no surprise that the top three performing ASX 200 energy shares in 2022 were from these sectors.

The following data is from S&P Global Market Intelligence canvassing ASX 200 energy share price gains from the close on 31 December 2021 to the close on 31 December 2022.

Whitehaven Coal Ltd (ASX: WHC)

The top-performing ASX 200 energy share was Whitehaven, with an astonishing 261% share price gain.

This was largely due to coal prices hitting all-time highs in 2022.

As my Fool colleague Brooke reports, Whitehaven posted a record $1.95 billion profit for FY22. It had a 1,396% year-over-year increase in earnings before interest, tax, depreciation, and amortisation (EBITDA).

Shareholders enjoyed a higher dividend in 2022 as a result.

Looking ahead, my Fool colleague James reports consensus estimates of an FY24 dividend of 91 cents per share. This represents a 10.5% dividend yield.

Bell Potter is far more bullish, predicting a $1.66 per share dividend, which equates to a 19.3% yield.

The Whitehaven share price is trading at $8.61 on Thursday afternoon.

New Hope Corporation Limited (ASX: NHC)

The share price of fellow ASX coal miner New Hope skyrocketed 185% in 2022.

Its FY22 profit rose by nearly 1,140% to $983 million year-over-year and its underlying EBITDA came in about 330% higher at $1.58 billion.

Looking ahead, New Hope has the biggest potential dividend yield of FY24, as my Fool colleague James reports.

Consensus estimates tip the ASX 200 coal share will pay $1.30 per share. This equates to a 22% dividend yield at today’s share price.

Citi is expecting an even greater dividend at $1.93 per share — a whopping 32% yield.

The New Hope share price is trading at $5.90 on Thursday afternoon.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price rose by 62% last year due to higher oil prices and the company’s merger with the petroleum business of BHP Group Ltd (ASX: BHP).

About 70% of Woodside’s assets are involved in gas production, and the merger turned it into one of the top 10 LNG players in the world.

In August, Woodside announced a 400% profit surge and declared the largest interim dividend since 2014. The dividend was triple the size of the interim dividend paid for the 1H FY21.

As my Fool colleague Tristan reports, Woodside has revealed that its dividend policy will be based on its net profit after tax (NPAT), with a minimum dividend payout ratio of 50%.

The company has also noted “additional opportunities to provide returns through special dividends and share buybacks.”

The Woodside share price is trading at $36.16 on Thursday afternoon.

The post Power up: 3 best ASX 200 energy shares of 2022 appeared first on The Motley Fool Australia.

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More reading

• Can Woodside shares keep delivering stellar gains in 2023?
• Oil best China reopening play: Goldman Sachs
• Here’s why 2023 will be a huge year for passive income
• 3 ASX 200 dividend shares with HUGE passive-income potential for FY24
• With a projected 20% dividend yield, is this ASX 200 energy share for real?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Group and Woodside Energy Group. 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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