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There’s electricity in the air this morning as a handful of ASX lithium shares bask in the excitement of recent acquisition developments.

At the time of writing, the broad S&P/ASX 200 Index (ASX: XJO) is enjoying a green start to the week — rising 0.99% to 7,179.7 points. The sector feeling the most love so far today is materials, catching a 0.66% boost with the Fortescue Metals Group Limited (ASX: FMG) share price being the odd one out.

However, four ASX lithium shares are making some of the biggest waves today. Let’s explore the exact details behind the moves.

IGO makes a $136 million offer for growth

An ASX lithium giant, IGO Limited (ASX: IGO), has made it clear this morning it is looking for additional lithium resources.

As previously reported, the $10.8 billion Australian miner — in conjunction with its joint venture partner Tianqi Lithium — has offered 50 cents per share to acquire Essential Metals Ltd (ASX: ESS).

Following the announcement, shares in Essential Metals have sprung to life, jumping nearly 38% to 47.5 cents apiece. Meanwhile, IGO shares are being pushed 1.9% to the upside today, now trading hands at $14.28.

The $136 million deal would value the Pioneer Dome Project owner at a 45% premium to its Friday closing price.

Mineral Resources doubles down on gas

A release by Mineral Resources Ltd (ASX: MIN) on Friday afternoon confirmed it had taken a 16.35% stake in Warrego Energy Ltd (ASX: WGO). The Mineral Resources share price is catching a 3.1% rally today, lifting to $86.14.

Notably, MinRes’s financial interest in Warrego comes amid a bidding battle for the gas exploration company. Gina Rinehart’s Hancock Group has been duking it out with Strike Energy to try and secure a winning bid on Warrego.

While Mineral Resources is mostly known for its mining services, iron ore, and lithium businesses, it also dabbles in energy. In fact, the investment in Warrego follows a $403 million off-market takeover bid of Norwest Energy NL (ASX: NWE) made in December.

ASX lithium share buying up projects

Barely a month into its listed life and Patriot Lithium Ltd (ASX: PAT) is already looking to spread its wings. Shares in the lithium explorer are up 5.3% today after announcing the acquisition of three prospective land packages in Ontario.

According to the release, the land totals 909sq km in the greenstone belts of the Archean Superior Craton of Ontario. These include the Gorman Project, the Forester Project, and the Birkett Project.

The post 4 ASX lithium stocks moving and shaking on Monday appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares jumping higher today?
• Why is ASX lithium share Essential Metals exploding 40% today?
• Will 2023 get better for ASX 200 shares?
• 2 ASX dividend shares to buy with 5%+ yields – analysts
• Here are the top 10 ASX 200 shares today

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

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The Vanguard Australian Shares Index ETF (ASX: VAS) is a rather special exchange-traded fund (ETF) on the ASX. For one, it’s the only ASX ETF that tracks the S&P/ASX 300 Index (ASX :XKO) rather than the more popular S&P/ASX 200 Index (ASX: XJO).

But more importantly, the Vanguard Australian Shares ETF is, by a mile, the ASX’s most popular ETF by funds under management.

So given the importance of this fund to ASX investors, it’s a good opportunity to examine how its underlying portfolio has changed over the past 12 months.

How has the Vanguard Australian Shares ETF portfolio changed over the past year?

Vanguard hasn’t yet updated its holdings beyond 30 November 2022. So we’ll use that as a benchmark.

12 months ago (as of 30 November 2021), this ETF had the following 10 ASX 300 shares as its top holdings:

1. Commonwealth Bank of Australia (ASX: CBA) with a fund weighting of 7.47%
2. CSL Limited (ASX: CSL) with a weighting of 6.56%
3. BHP Group Ltd (ASX: BHP) with a weighting of 5.45%
4. National Australia Bank Ltd (ASX: NAB) with a weighting of 4.23%
5. Australia and New Zealand Banking Group Ltd (ASX: ANZ) with a weighting of 3.57%
6. Westpac Banking Corp (ASX: WBC) with a weighting of 3.54%
7. Macquarie Group Ltd (ASX: MQG) with a weighting of 3.27%
8. Wesfarmers Ltd (ASX: WES) with a weighting of 3.03%
9. Woolworths Group Ltd (ASX: WOW) with a weighting of 2.32%
10. Telstra Group Ltd (ASX: TLS) with a weighting of 2.27%

Let’s compare those to how the Vanguard Australian Shares Index ETF’s holdings looked as of 30 November 2022:

1. BHP Group Ltd with a weighting of 10.37%
2. Commonwealth Bank of Australia with a fund weighting of 8.29%
3. CSL Limited with a weighting of 6.51%
4. National Australia Bank Ltd with a weighting of 4.51%
5. Westpac Banking Corp with a weighting of 3.75%
6. Australia and New Zealand Banking Group Ltd with a weighting of 3.33%
7. Woodside Energy Group Ltd (ASX: WDS) with a weighting of 3.18%
8. Macquarie Group Ltd with a weighting of 2.92%
9. Wesfarmers Ltd with a weighting of 2.48%
10. Telstra Group Ltd with a weighting of 2.07%

So you can see that, while some of the players have been shuffled, the Vanguard Australian Shares ETF song largely remains the same.

What are some of the changes?

Perhaps the largest change over these 12 months is the entry of Woodside Energy Group, displacing ASX 300 blue chip stalwart Woolworths from the top ten shares. This reflects the merger between the old Woodside Petroleum and BHP’s oil division that was finalised in the middle of last year.

This resulted in Woodside becoming a much larger company and thus getting a boost in representation in this ASX ETF.

Speaking of BHP, you’ll also notice that the Big Australian shot up from the third-largest holding 12 months ago to the top spot it presently occupies. This is the result of BHP’s ‘unification’ program implemented at the start of 2022.

BHP rehomed its London-listed shares back to the ASX, also resulting in an almost-doubled presence on the local market.

But otherwise, the major holdings in the Vanguard Australian Shares ETF are fairly similar to where they were 12 months ago. But who knows what 2023 will bring for investors in the ASX’s most popular ETF?

The post How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares jumping higher today?
• Bought $1,000 of Woodside shares 10 years ago? Here’s how much dividend income you’ve received
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• Buy NAB and this ASX dividend share for a passive income boost: analysts
• How much profit are BHP shares going to make in 2023?

Motley Fool contributor Sebastian Bowen has positions in CSL, National Australia Bank, Telstra Group, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group and Wesfarmers. 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 Argosy Minerals Limited (ASX: AGY) share price was a strong performer in 2022.

During the 12 months, as you can see below, the lithium producer’s shares rose an impressive 78%.

Can the Argosy Minerals share price keep rising?

The good news for investors is that one leading broker believes Argosy Minerals shares can rise further in 2023.

According to a recent note out of Canaccord Genuity, its analysts have a speculative buy and 85 cents price target on the Argentina-based lithium producer’s shares.

Based on the current Argosy Minerals share price of 65.2 cents, this implies potential upside of 30% for investors over the next 12 months.

What did the broker say?

Canaccord Genuity highlights that Argosy Minerals recently produced its first battery quality lithium carbonate during commissioning at its 2,000tpa Rincon operation. It believes the production of 250kg of 99.76% lithium carbonate “represents a significant validation of its production process.”

And while the broker acknowledges that there is still work to be done, it has been pleased with its progress so far. The broker commented:

The company must now ramp up to nameplate capacity over the first half of 2023 and maintain quality metrics. However, it marks the transition of AGY becoming a producer of lithium carbonate, one of only two ASX-listed companies to do so to date.

Canaccord Genuity also provided investors with an idea of what to expect from the company’s financials in 2023 in 2024. It is forecasting EBITDA of $50 million on revenue of $68.8 million in FY 2023 and EBITDA of $62.5 million on revenue of $82.7 million in FY 2024.

Though, the broker sees scope for higher earnings if lithium prices don’t soften as much as it is forecasting. It explained:

We have trimmed our sales number for 2023E leading to a 25% fall in EBITDA to A$50m. […] If we were to run a spot price of US$67,350/t as a scenario, our 2023E EBITDA would lift 66% to A$83m and our 2024E EBITDA would lift 117% to A$137m.

All in all, the broker appears to see Argosy Minerals as a top option in the lithium space for investors with a high tolerance for risk.

The post This ASX 300 lithium share boomed in 2022, and still has 30% upside: broker appeared first on The Motley Fool Australia.

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More reading

• These were the 3 best performing ASX lithium shares of 2022
• 3 ASX All Ordinaries shares up by more than 60% in 2022
• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher

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

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The Core Lithium Ltd (ASX: CXO) share price is roaring higher amid news the company is relocating west.

The lithium favourite is shifting its head office from Adelaide to Perth in a bid to better its foothold in the mining industry. It has also welcomed two new executives to its ranks.

Right now, the Core Lithium share price is soaring 4.56%, trading at $1.26. And it’s not the only lithium stock posting notable moves today.

The IGO Ltd (ASX: IGO) share price is up 1.5% after the company announced its plan to partially take over fellow lithium stock Essential Metals Ltd (ASX: ESS). Meanwhile, shares in Mineral Resources Ltd (ASX: MIN) are gaining 2.8% amid the revelation of its new 16% stake in takeover target Warrego Energy Ltd (ASX: WGO).

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 0.88% at the time of writing, while the company’s home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) – has lifted 1.39%.

Let’s take a closer look at the latest from the ASX 200 lithium favourite.

Core Lithium announces move to Western Australia

The Core Lithium share price is surging on Monday. Its gain follows news the company will move its headquarters to Perth – dubbing the Western Australian capital “the corporate centre of Australia’s lithium industry”.

The shift is expected to provide better access to mining services providers and a larger talent pool while retaining a direct route to the company’s Finniss Project, located near Darwin.

A Perth-based office is expected to be established by mid-2023, with the Adelaide headquarters tipped to close by the end of the year.

Core Lithium CEO Gareth Manderson commented on the move, saying:

Perth has become Australia’s lithium hub … Relocating the corporate head office to Perth makes sense for Core and forms part of our broader strategy to build a sustainable, value-driven lithium business.

All of the company’s Adelaide-based employees have been given the option to relocate.

The ASX 200 lithium favourite has appointed Melissa Winks as executive general manager of sustainability – a newly created position that reflects the company’s “commitment to sustainable practices”.

Additionally, it announced Andrew Forman would join the company as interim chief financial officer (CFO).

Forman will work alongside current CFO Simon Iacopetta to complete a handover before his February appointment. Iacopetta announced his intent to step down in November.

The company expects to appoint a permanent Perth-based CFO by mid-2023.

Core Lithium share price snapshot

The Core Lithium share price was one of the ASX 200’s best performers of 2022. And, by the looks of things, 2023 could be another big year for the stock.

The lithium share rose 73% over the course of last year. If that wasn’t enough, it’s gained another 23% since 30 December.

For comparison, the ASX 200 fell around 5% last year and has lifted 1% since the final close of 2022.

The post Why is the Core Lithium share price soaring 4% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Are healthy returns on the horizon for ASX 200 healthcare shares in 2023?
• 5 things to watch on the ASX 200 on Monday
• What’s the outlook for ASX 200 lithium shares in 2023?
• The 3 ASX 200 bank shares that outperformed all others in 2022

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

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The Essential Metals Ltd (ASX: ESS) share price is rocketing higher on Monday morning.

At the time of writing, the lithium explorer’s shares are up 40% to 48.5 cents.

As you can see below, this is the highest level the Essential Metals share price has traded at since October.

Why is the Essential Metals share price rocketing higher?

Investors have been scrambling to buy the company’s shares this morning after it accepted a takeover offer from Tianqi Lithium Energy Australia.

Tianqi Lithium Energy Australia is a joint venture lithium business owned by lithium giants Tianqi Lithium and IGO Limited (ASX: IGO).

According to the release, the parties have entered into a scheme implementation agreement that will see Tianqi Lithium Energy Australia acquire 100% of Essential Metals for 50 cents per share in cash via a scheme of arrangement.

This represents a 45% premium to the Essential Metals share price at Friday’s close and values the company at $136 million on a fully diluted basis.

The Essential Metals board of directors has unanimously recommended that shareholders vote in favour of the scheme, and each director intends to vote their shares in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert’s report

Why acquire Essential Metals?

Essential Metals is a lithium exploration company which owns 100% of the Pioneer Dome Project in Western Australia.

It is one of only 14 JORC compliant spodumene lithium resources in Australia, with a defined JORC resource of 11.2 Mt @ 1.16% Li2O. The company also holds several other interests in early-stage exploration projects across lithium, nickel and gold.

IGO’s acting CEO, Matt Dusci, explained the rationale for acquiring the company. He said:

Both IGO and TLC are committed to progressing and growing our lithium joint venture business. The ESS transaction provides an opportunity to accelerate lithium exploration to bring new resources to production. It also complements the significant growth opportunities within the TLEA [Tianqi Lithium Energy Australia] business which include the continued expansion of the Greenbushes operation, the successful ramp up Train 1 of the lithium hydroxide facility at Kwinana and progressing towards the financial investment decision for Train 2.

We look forward to supporting TLEA with future work programs over the ESS assets, as the joint venture seeks to bring new resources to production to address the market deficit of raw materials critical for clean energy transition.

The post Why is ASX lithium share Essential Metals exploding 40% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium shares lead the market higher on Friday
• Could copper become ‘the lithium’ of 2023?

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

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The Woodside Energy Group Ltd (ASX: WDS) share price had a ripper 2022. Looking further back, however, the stock has underperformed over the last 10 years.

If an investor were to have bought $1,000 worth of the oil and gas giant’s stock in January 2013, they likely would have walked away with 29 shares and $7 change, paying around $34.23 apiece.

Today, the Woodside share price is trading at $34.61 – just 1.1% higher than it was 10 years ago. Thus, the figurative parcel would currently be valued at $1,003.69.

. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is around 50% higher than it was in January 2013.

But could the dividends offered to those invested in Woodside over that time have made up for its share price’s sluggishness? Let’s take a look.

How much have Woodside shares paid in dividends in 10 years?

Here are all the dividends offered by Woodside over the last 10 years, rounded to the nearest cent:

Woodside dividends’ pay date	Type	Dividend amount
October 2022	Interim	$1.60
March 2022	Final	$1.46
September 2021	Interim	41 cents
March 2021	Final	15 cents
September 2020	Interim	36 cents
March 2020	Final	83 cents
September 2019	Interim	53 cents
March 2019	Final	$1.27
September 2018	Interim	73 cents
March 2018	Final	63 cents
September 2017	Interim	62 cents
March 2017	Final	65 cents
September 2016	Interim	45 cents
April 2016	Final	60 cents
September 2015	Interim	92 cents
March 2015	Final	$1.84
September 2014	Interim	$1.19
March 2014	Final	$1.15
September 2013	Interim	93 cents
May 2013	Special	61 cents
April 2013	Final	64 cents
Total:		$17.57

As the chart above shows, Woodside stock has paid out a total of $17.57 per share in dividends over the last 12 years.

That means our imagined parcel would have yielded $509.53 in passive income over its life.

It also means a person who bought $1,000 of Woodside shares for $34.23 apiece in 2013 might have recognised a 52.4% return on investment (ROI), including both share price gains and dividends.

Additionally, all offerings handed out by the ASX 200 company in that time have been fully franked. That means some shareholders might have recognised taxation benefits.

Woodside shares currently offer an 8.8% dividend yield.

The post Bought $1,000 of Woodside shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• How are ASX 200 energy shares tracking in the first week of trade?
• 3 key factors that helped propel the Woodside share price 60% higher in 2022
• 5 things to watch on the ASX 200 on Friday
• Is the party over for these ASX 200 energy shares in 2023?

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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

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

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

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted ASX share with short interest of 14.7%, which is up week on week. Short sellers may believe that investors are too optimistic about Flight Centre’s recovery from the pandemic. Particularly given revenue margin pressures.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rebound to 13%. This betting technology company’s shares have been crushed over the last 12 months, but short sellers don’t appear to believe they have bottomed yet.
• Perpetual Limited (ASX: PPT) has 12.9% of its shares held short, which is up week on week. The fund management industry is going through a difficult period right now as rates rise.
• Megaport Ltd (ASX: MP1) has seen its short interest ease slightly to 11.1%. This network as a service operator’s shares have come under pressure in recent months amid concerns over the capital intensive nature of its business and its cash flow generation.
• Sayona Mining Ltd (ASX: SYA) has 10.5% of its shares held short, which is up week on week. Short sellers may be targeting Sayona Mining due to concerns that lithium prices could have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.4%, which is flat since last week. Production delays and falling lithium prices may be behind this.
• Breville Group Ltd (ASX: BRG) has seen its short interest edge lower to 7.4%. Short sellers may be going after this appliance manufacturer due to fears that consumer spending on household goods could soften in 2023 due to housing market weakness and the cost of living crisis.
• Zip Co Ltd (ASX: ZIP) has seen its short interest remain flat at 7.4%. This high level of short interest may have been driven by concerns over Zip’s high debt and doubts over its ability to become profitable in the near term.
• Lake Resources N.L. (ASX: LKE) has short interest of 7.2%, which is down week on week. One short seller, J Capital, is alleging that this lithium developer is having issues producing battery grade lithium at scale.
• Chalice Mining Ltd (ASX: CHN) has seen its short interest ease to 7.1%. Short sellers may be targeting Chalice due to delays to the mineral exploration company’s scoping study.

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

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More reading

• 5 things to watch on the ASX 200 on Monday
• What’s the outlook for ASX 200 lithium shares in 2023?
• Can ASX tech shares rise from the ashes in 2023?
• The Sayona Mining share price exploded 46% in 2022. Can it keep up the momentum this year?
• 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 Betmakers Technology Group, Megaport, and Zip Co. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, and Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) healthcare shares saw a very mixed performance during the COVID-19 years of 2021 and 2022. But will 2023 be a stronger year?

For a few names, the pandemic saw elevated earnings. COVID testing produced a lot of extra profit and cash flow for names like Sonic Healthcare Ltd (ASX: SHL), as illustrated below, and Australian Clinical Labs Ltd (ASX: ACL).

But the COVID-testing businesses have seen their share prices plunge over the past year as COVID testing has reduced.

Many other ASX 200 healthcare shares actually suffered because surgeries and other forms of healthcare were delayed. Two examples of such delays impacting earnings during COVID include Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH).

CSL Limited (ASX: CSL) also suffered because the pandemic increased the cost of blood plasma and also reduced collections.

What’s the outlook for ASX 200 healthcare shares?

The companies that saw surgery delays now have waiting lists, so they can benefit from that strong demand in FY23.

While COVID testing is dropping, it’s still happening. For the month of October 2022, Sonic Healthcare reported that it generated $57.7 million of COVID-related revenue, which suggests that testing cash flow can still benefit those companies involved.

The investment giant Blackrock is one of the investors that likes the healthcare sector at the moment.

Blackrock said that healthcare is benefiting from a structural transition amid ageing populations. It said that healthcare has “appealing valuations and likely cash flow resilience during downturns”.

The fund manager suggested that it also likes healthcare because it’s “developing medicine and equipment to help meet ageing population needs”.

Valuations

While some ASX 200 healthcare shares have fallen, they still don’t have incredibly low price-to-earnings (P/E) ratios, reflecting investor confidence in their defensive nature.

Using the Commsec earnings projections for FY23, these are some of the valuations:

The CSL share price is valued at 35 times the estimated earnings.

The Ramsay Health Care share price is valued at 39 times the estimated earnings.

The Sonic Healthcare share price is valued at 19 times the estimated earnings.

The Cochlear share price is valued at 45 times the estimated earnings.

The ResMed CDI (ASX: RMD) share price is valued at 31 times the estimated earnings.

The post Are healthy returns on the horizon for ASX 200 healthcare shares in 2023? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear 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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If you’re an income investor looking for dividends to boost your passive income, then you may want to consider the ASX dividend shares named below.

Both of these ASX dividend shares have been rated as buys and tipped to provide investors with attractive yields in the coming years.

Here’s what you need to know about these shares:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share for income investors to consider is the Healthco Healthcare and Wellness REIT.

This health and wellness focused real estate investment trust invests in properties including hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Analysts at Goldman Sachs are positive on the company and have a conviction buy rating and $2.14 price target on its shares.

Goldman advised that it is a fan of Healthco Healthcare and Wellness due to its strong balance sheet and its exposure to government-backed sub-sectors. It believes this makes it one of the “top picks in the sector.”

As for dividends, Goldman is expecting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.72, this will mean yields of 4.35% for investors.

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs is also a fan of this big four bank. Its analysts currently have a buy rating and $34.81 price target on its shares.

The broker is positive on NAB due to its exposure to commercial lending, which it expects to perform better than home lending in the current environment. Goldman also notes that the work NAB has done on productivity and cost management “leaves it well positioned for an environment of elevated inflationary pressure.”

In respect to dividends, Goldman Sachs is expecting NAB to pay fully franked dividends of $1.66 per share in FY 2023 and $1.73 per share in FY 2024. Based on the current NAB share price of $29.76, this means yields of 5.6% and 5.8%, respectively.

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

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has been through a lot of pain over the last couple of months.

Since 9 November, it’s down 28%. However, over the past six months, it has risen by close to 70%. Certainly, it has been a very volatile time for the ASX lithium sector generally.

Is the negativity warranted?

On 26 October 2021, Pilbara Minerals announced that it had sold 10,000 dry metric tonnes (dmt) of spodumene concentrate for US$2,350 per dmt via the Battery Material Exchange (BMX).

Over the course of 2022, the company reported progressively higher prices through a number of BMX auctions. On 16 November 2022, it reported the sale of a 5,000 dmt cargo for US$7,805 per dmt.

In just over a year, the auction price jumped 230%.

But, on 14 December 2022, it revealed that it had sold two cargoes totalling 10,000 dmt for an average price of US$7,552 per dmt. That represented a decline of around 3% from the November auction. Investors may be thinking that the November auction price was the peak. The question is, is it going to keep falling?

However, at US$7,500 per dmt, Pilbara Minerals is still generating significant profit and cash flow.

The company also reported on 21 December 2022 that it had achieved a “significant improvement in pricing outcomes” with its major offtake customers, after completing price reviews. This revised price applies for all shipments in December 2022 and onwards.

Pilbara Minerals said that based on market pricing data, average pricing would equate to approximately US$6,300 per dmt (CIF [cost, insurance, freight] China) on an SC6.0 equivalent basis.

Essentially, the business is still experiencing strong pricing outcomes.

KPMG’s mining outlook for 2023 suggested that the mining outlook is “largely positive”. National Mining and Metals Leader at KPMG Australia Nick Harridge said that the “key demand story is highlighted with lithium”.

The report also said: “The pace of EV sales is increasing with nearly half of the current stock of EVs sold in the last year. But the transition away from fossil fuels will continue to require a rapid increase in the number of EVs manufactured.”

What’s the outlook for the Pilbara Minerals share price?

According to the forecast on Commsec, the ASX lithium share is valued at five times FY23’s estimated earnings and eight times FY24’s estimated earnings. Both of those valuations do not seem very demanding at all.

Remember, the lithium miner is looking to ramp up its production capacity of total spodumene concentrate across its Pilgangoora project of up to one million tonnes per annum. Plus, the business is working on growing its presence in the value chain of the lithium battery-making process, which means it will be able to capture more of the value.

Analysts are mixed on the company at the moment. Of the 16 analyst calls covered by Commsec, three are sells, six are holds, and seven are buys.

While Goldman Sachs currently rates it as a hold (according to Commsec), the price target of $4.70 implies a possible rise of around 20% over the next year.

What happens in 2023 could be largely dependent on the lithium price. If the commodity price holds up, then investor confidence could return – it’s already up more than 9% in 2023 to date.

With more electric vehicles expected to be manufactured in the coming years, I think the Pilbara Minerals share price is a long-term buy, with a possible dividend yield of 3.8% (excluding the effect of franking credits).

The post What is the outlook for the Pilbara Minerals share price in 2023? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 lithium shares in 2023?
• Here are the top 10 ASX 200 shares today
• Why is the Pilbara Minerals share price racing 6% higher today?
• ASX 200 lithium shares lead the market higher on Friday
• 3 ASX growth shares to buy with huge upside potential – analysts

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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