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The All Ordinaries Index (ASX: XAO) is off to a rough start this year, having fallen 1.35% right now. But not all shares on the ASX’s iconic index are suffering.

The Weebit Nano Ltd (ASX: WBT) share price is rocketing 6.15% higher today on exciting news of the company’s next-generation memory technology. The All Ords tech share is currently swapping hands for $3.45.

So, what’s got the market excited about the Weebit Nano share price on the first trading day of 2023? Let’s take a look.

Why this All Ords tech share is surging on Tuesday

The Weebit Nano share price is taking off after the company announced it’s released its first 22-nanometre (nm) demonstration chip to manufacturing – a process known as having been taped-out.

The demo chips integrate the company’s embedded resistive random-access memory (ReRAM) module in an advanced 22nm fully depleted silicon on insulator (FD-SOI) process technology.

22nm is one of the industry’s most common process nodes. It’s also too small to allow the use of embedded flash.

Weebit Nano’s demo chip aims to fill the resulting gap, offering a low-power, cost-effective embedded non-volatile memory solution able to withstand harsh environments.

Commenting on the news driving the All Ords tech share higher today, CEO Coby Hanoch said:

We are continuing to accelerate Weebit’s path towards more advanced geometries to meet a clear market need in applications such as microcontrollers, IoT [internet of things], 5G, edge AI [artificial intelligence], and automotive.

There is increased interest from companies looking to use our ReRAM to create exciting new products in these areas.

The company worked with partners CEA-Leti and CEA-List to scale its ReRAM technology to 22nm.

Weebit Nano share price outperforms tech sector

Today’s gain is just the latest for the Weebit Nano share price. It’s managed to dodge the carnage felt by the broader tech sector over the last 12 months.

The stock is currently 20% higher than it was this time last year. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has tumbled 35%.

The post Guess which ASX All Ords tech share is starting 2023 with a 6% gain appeared first on The Motley Fool Australia.

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• Arafura share price sinks 12% as Gina buys up big

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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A new year gives me the opportunity to review how things went in 2022. Some of my ASX shares managed gains, while others suffered double-digit losses. I’ll be happy to buy more of two of them.

It was a very rough year for some sectors of the ASX share market. Inflation and the subsequent interest rate rises have sent some investors running for the exits, with a number of ASX tech shares and ASX retail shares down more than 50% over the past year, such as the Temple & Webster Group Ltd (ASX: TPW) share price.

While I’m not expecting most of 2023 to be like 2022, there could be more volatility ahead. Who knows what’s going to happen next? That’s part of the fun of investing.

Fortescue Metals Group Limited (ASX: FMG)

My best-performing ASX share was the ASX iron ore share, Fortescue. It rose by around 7% in 2022.

I think it must be pointed out that the timing of the start and end of the 12-month return has played a part here. If the 12-month comparison were done on 13 January, the Fortescue share price would have shown a decline, though if the 12-month return were calculated in it mid-December it would show an even better return than 7%.

Just over a year ago, the iron ore price had slumped to below US$100 per tonne, amid fears about the Chinese real estate sector, including Evergrande. Remember that? But then the Fortescue share price recovered through November and December 2021.

There has been another recovery through November 2022 for Fortescue, as China’s COVID restrictions were removed. This could lead to an economic boost like we saw in western countries during 2022.

Not only did the Fortescue share price rise over the year, but it also paid a full-year dividend of A$2.07 per share, adding around 11% to the return (excluding franking credits).

Due to the strengthening iron ore price, I don’t think I’m going to buy any more Fortescue shares unless there’s a significant fall, which could be triggered by a drop in the iron ore price to below US$100 again.

Duxton Water Ltd (ASX: D2O)

This company owns water entitlements and leases them out to farmers on short-term or long-term contracts. The Duxton Water share price rose around 6% over 2022.

Despite the very heavy rainfall that southeast Australia has experienced over the last year, water values have held up well, despite there being an abundance of the commodity at the moment.

With La Nina (the wetter weather pattern) on track to end soon, this could mean less ‘supply’ of water and could mean higher prices. But, I’m not basing my investment interest on a guess about the weather or short-term water entitlement price movements.

I think water entitlements are a good way to get indirect exposure to the large food sector in Australia. Plus, the ASX water share can offer differentiated returns to the S&P/ASX 200 Index (ASX: XJO).

At the current Duxton Water share price, it’s at a 14% discount to the post-tax net asset value (NAV). Plus, it’s forecasting dividend growth for the next couple of years, so I will be looking to buy more of this stock in 2023.

L1 Long Short Fund Ltd (ASX: LSF)

This ASX share is a listed investment company (LIC) that invests in a mix of ASX shares and international shares.

It has the ability to ‘short’ shares – betting that a share price will go down – as well as invest normally. This can mean that it can deliver stable, or even positive, returns during volatile years like 2022.

But, I think it’s worth saying that negative returns from its ‘long’ investments can still lead to negative overall returns – or the shorted shares can rise, which would also mean negative returns.

I’m looking to buy more shares of this LIC this year at a net tangible assets (NTA) discount in the high single digits or low double digits. I also like the idea of the growing dividend from this LIC.

The post My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 defining moments for Fortescue shares in 2022
• 2 ASX 200 shares I’m never selling
• Iron ore price in 2023: Bull vs. bear
• Better buy for 2023: BHP vs. Fortescue shares
• 25% of my retirement portfolio is in these 5 ASX shares: Here’s why I believe they’re winners for 2023 and beyond

Motley Fool contributor Tristan Harrison has positions in Duxton Water, Fortescue Metals Group, and L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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It certainly was a year to forget for the Zip Co Ltd (ASX: ZIP) share price and its shareholders.

During the 12 months, the buy now pay later (BNPL) provider’s shares lost a whopping 88% of their value after falling from $4.33 to a lowly 51 cents.

Why did the Zip share price crash?

Investors were selling down the Zip share price last year amid broad weakness in the tech sector and concerns over the company’s future.

The former was driven by aggressive interest rate hikes from central banks across the world to combat inflation. This put significant pressure on the valuations of tech shares and particularly loss-making ones.

And boy, is Zip a loss-maker! In August, the company released its full year results and revealed a loss of $1.1 billion.

While the majority of this loss was non-cash – an $821.1 million impairment of goodwill and intangibles – Zip still recorded an adjusted loss before income tax of $256.5 million for FY 2022.

In addition, concerns that rising interest rates could cause bad debts to spike also weighed on its shares. And although Zip has adjusted its credit risk settings in an attempt to offset this, there are fears that it could stifle its growth.

Particularly given the increasing competition in the BNPL market. This includes the arrival of tech giant Apple in the space with the launch of its BNPL service.

Apple’s BNPL service works with any merchant that already supports Apple Pay and does not require a new payments terminal. Furthermore, consumers can use the service even if the merchant doesn’t actively offer BNPL.

Will 2023 be better?

The performance of the Zip share price over the next 12 months is likely to be impacted largely by the company’s profitability goals.

Management is aiming for cash EBTDA profitability in FY 2024. If it can demonstrate that it is on track to achieve this, then it could bode well for the company’s shares.

However, conversely, if the tough economic environment pushes back its profitability timeframe, it could have major consequences for the Zip share price. Particularly given its cash burn and high debt load.

All in all, it certainly will be an interesting year for the company.

The post The Zip share price crashed 88% in 2022. Can it recover in 2023? appeared first on The Motley Fool Australia.

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• Here are the 10 most shorted ASX shares
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• Here are the 10 most shorted ASX shares

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 Zip Co. 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 Mach7 Technologies Ltd (ASX: M7T) share price is off to the races on this first day of trading in 2023.

Shares in the ASX listed medical imaging systems provider leapt more than 20% on open and are currently up 18.4% in morning trade.

Here’s what’s piquing ASX investor interest today.

What did the company report?

The Mach7 share price is rocketing after the company announced it has inked a multi-year deal with a Total Contract Value (TCV) of approximately $16.7 million.

The signed sales order comes from a new customer, Akumin Inc, a NASDAQ listed outpatient radiology service provider with a large footprint amongst United States’ hospitals, health systems and physician groups.

The contract involves Mach7’s entire Enterprise Imaging Platform including its Vendor Neutral Archive (VNA), eUnity Diagnostic Viewer and Workflow Applications. Mach7 said this will enable it to provide true cloud-based, enterprise-wide imaging and informatics solutions.

Payments for the $16.7 million 10-year capital contract will be staged annually across the life of the contract. $7.5 million of revenue is expected to be recognised in the 2023 financial year. Annual support fees are weighted to the second half of the contract term.

Commenting on the largest customer contract in the company’s history, which is helping send the Mach7 share price sharply higher, CEO Mike Lampron said:

Our vendor agnostic easily integrated product suite and migration services were key requirements for the massive data ingestion and consolidation associated with Akumin’s cloud-focused radiology ecosystem.

This deal together with the recent sales order received from our new partner, Nuvodia increases our exposure to the fast-growing outpatient radiology market and demonstrates that our technology appeals to customers across the size spectrum.

Mach7 share price snapshot

The Mach7 share price went backwards in 2022, as you can see in the chart below. But longer-term investors are unlikely to be complaining, with shares up 211% over the past five years. For some context, the All Ordinaries Index (ASX: XAO) has gained 15% over that same period.

The post Mach7 signs $17 million contract – share price jumps 20% at open appeared first on The Motley Fool Australia.

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• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Mach7 Technologies. The Motley Fool Australia has recommended Mach7 Technologies. 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 Westpac Banking Corp (ASX: WBC) share price was a strong performer in 2022.

Australia’s oldest bank’s shares rose a sizeable 9.4% during the 12 months.

This compares favourably to the S&P/ASX 200 Index (ASX: XJO) and its 5.5% decline during the same period.

It also means that it was the best-performing big four bank in 2022.

Why did the Westpac share price smash the market?

Investors were bidding the Westpac share price higher last year thanks to its much-improved outlook.

This was driven by the Reserve Bank of Australia increasing the cash rate to combat inflation, which has boosted bank margins materially.

For example, when Westpac released its FY 2022 results in November, it revealed a 5 basis points increase in its net interest margin (NIM) during the second half to 1.90%.

However, that’s only the beginning of its NIM improvements, according to many analysts. In fact, Goldman Sachs highlights that “management’s guidance on its FY23 NIM trajectory was better than we had previously anticipated.” As a result, the broker now expects a NIM of 2.05% in FY 2023.

What’s 2023 looking like for its shares?

While a lot can happen in the space of 12 months, as things stand, Goldman Sachs believes it is onwards and upwards for the Westpac share price.

So much so, the broker has a conviction buy rating and $27.60 price target on the bank’s shares.

Its analysts believe Westpac and rival National Australia Bank Ltd (ASX: NAB) can provide double digit returns each year over the next three years. The broker explained:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years. Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

The post The Westpac share price smashed the other ASX 200 banks in 2022. What now? appeared first on The Motley Fool Australia.

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• How I’d invest $1,000 in ASX 200 shares for rising inflation
• 23 ASX shares to buy in 2023 – brokers
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• Better buy for 2023: Westpac vs. ANZ shares
• Buy Westpac and this ASX 200 dividend share: brokers

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

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Last year was a crazy one for S&P/ASX 200 Index (ASX: XJO) shares. The index slumped 7% over the 12 months ended Friday despite soaring energy and mining shares.

Meanwhile, stocks in other sectors – like retail and tech – suffered. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) tumbled 24% last year while the S&P/ASX 200 Information Technology Index (ASX: XIJ) plunged 36%.

But I think the downturn may have provided an opportunity to build passive income. Here’s how I would invest $5,000 in ASX 200 dividend stocks if I were aiming for a second income stream.

Is now a good time to buy ASX 200 shares for dividend income?

Inflation, interest rate hikes, and major global events boosted some ASX 200 shares in 2022 while dragging others lower.

Fortunately, the market’s long-term performance may sow hope in the hearts of investors. The ASX 200 has historically always returned to and surpassed its previous highs following a downturn.

That means many of the market’s embattled sectors likely house some bargain shares right now.

And there’s a further silver lining for investors hunting a second income. Falling share prices tend to drive dividend yields higher.

Many companies’ dividends remained stable through 2022’s downturn, thereby potentially letting investors get a slice of the pie for less than they might’ve otherwise paid.

Thus, I believe now could be a good time to shift through the rubble in search of quality ASX 200 dividend shares trading for cheap prices. By doing so, I believe I could turn $5,000 into a passive income stream through the power of compounding.

Compounding returns

There’s no shortage of ASX 200 shares currently trading with dividend yields of around 8% following a disastrous 2022.

They include JB Hi-Fi Limited (ASX: JBH), Nine Entertainment Co Holdings Ltd (ASX: NEC), and Fletcher Building Limited (ASX: FBU), to name a few.

An 8% dividend yield would see a $5,000 investment returning $400 over the next 12 months.

That’s not exactly life-changing. However, I would aim to compound my dividends by reinvesting them in ASX 200 shares.

By doing so, and assuming my yield stays the same, I could turn my initial investment into $10,795 in 10 years’ time. At that point, it would be capable of paying out around $864 each year.

But the true magic comes later. In 30 years’ time, my figurative $5,000 investment – reinvested time and time again – could be worth $50,313. That, with an 8% yield, could return $4,025 annually.

And that’s without considering share price growth or a consistent investment strategy.

Choosing wisely

The ultimate challenge I face in putting my strategy to work is to identify oversold buys in the current environment.

While a high dividend yield might herald an oversold stock, it might also suggest a company isn’t spending its cash wisely, making its offerings unsustainable.

Thus, I would pay particular attention to a company’s cash flow and balance sheet to help determine if it’s a buy right now.

The post Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income appeared first on The Motley Fool Australia.

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• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Jb Hi-Fi and Nine Entertainment. 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 share market is full of interesting businesses. But, there are some compelling companies listed elsewhere around the world. We can get access to those with ASX exchange-traded funds (ETFs).

Some ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS) track an index with businesses that are spread across a variety of sectors, such as the S&P/ASX 300 Index (ASX: XKO).

But, there are a growing number of ETFs that provide investors with access to a specific industry or theme.

A report by Sharesies has identified which ETFs investors have been buying. While the Vanguard Australian Shares Index ETF was the most popular, I’m going to outline the next two most popular ETFs that were bought in November 2022 on the Sharesies platform.

VanEck Global Clean Energy ETF (ASX: CLNE)

The purpose of the ETF is to give investors exposure to 30 of the largest companies involved in “clean energy production and associated technology and equipment globally”, according to VanEck. These businesses are from both ‘developed’ and ‘developing’ markets.

There are four main areas that this ASX ETF is invested in – independent power producers and energy traders (33% of the portfolio), electrical equipment (29.3%), semiconductors and semiconductor equipment (24.8%), and electric utilities (12.9%).

In terms of geographic weighting, the US is the biggest allocation with 41%, but many countries have a weighting of more than 2.5%: Spain (10%), China (9.2%), Israel (7.5%), New Zealand (6.6%), Denmark (5.3%), Canada (4.6%), Japan (4.2%), Brazil (2.9%), and Austria (2.6%).

At the end of November 2022, these were the ten biggest positions in the portfolio: Solaredge Technologies, Vestas Wind Systems, Sunrun, First Solar, Enphase Energy, EDP Renovaveis, Bloom Energy, Xinyi Solar, Chubu Electric Power, and Brookfield Renewable. Those positions make up around 48% of the total portfolio.

This ASX ETF comes with an annual management fee of around 0.65%.

BetaShares Climate Change Innovation ETF (ASX: ERTH)

This investment provides a more diversified exposure to the fight against climate change. It’s invested in up to 100 global companies that make at least 50% of their revenue from “products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions”.

Sectors covered within the ETF include clean energy providers, along with companies tackling “green transport, waste management, sustainable product development, and improved energy efficiency and storage”.

Looking at the allocations, green energy gets the biggest allocation with 23.8% of the portfolio, followed by ‘enabling solutions’ (21.9%), green transportation (21.3%), sustainable products (21.1%), and water and waste improvements (11.9%).

The portfolio is a bit more US-focused than the first one I outlined, with a weighting of 53.9% to the United States. Other weightings of more than 2% include China (8.6%), South Korea (6.2%), Denmark (5.1%), France (4.4%), Japan (3.5%), Spain (2.5%), Sweden (2.3%), and Germany (2.1%).

The top holdings of this ASX ETF look very different from the VanEck one. Here are the biggest 10 positions: Trane Technologies, Enphase Energy, Eaton, Vestas Wind Systems, American Water Works, Ecolab, Samsung, Cie De Saint-Gobain, East Japan Railway, and BYD.

This ETF comes with an annual management fee of 0.65%.

The post 2 ASX ETFs that investors are using to bet on the future appeared first on The Motley Fool Australia.

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More reading

• Telstra shares fell short in 2022. Can they deliver in 2023?
• Morgans names 2 ASX 200 dividend shares to buy with 5%+ yields
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received
• Growth stock crash: is now the time to buy Xero shares?
• 3 defining moments for Fortescue shares in 2022

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 Brookfield Renewable. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Ecolab, First Solar, and SolarEdge Technologies. 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 Telstra Group Ltd (ASX: TLS) share price saw a negative return in 2022, falling by around 5.5%. When the dividends are added to the return, the picture looks a bit better for the telco.

However, keep in mind that Telstra’s share price performance did beat the S&P/ASX 200 Index (ASX: XJO). The ASX 200 fell 7.25% over the year.

So, while Telstra shares did drop, it managed to slightly outperform the ASX index.

FY22 result revealed promise

On a guidance basis, Telstra reported that its FY22 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 8.4% to $7.3 billion, while free cash flow went up 5.9% to $4 billion. Total income was $22 billion (down 4.7%).

In FY23, the business is expecting to deliver total income of between $23 billion to $25 billion, which would represent growth. Underlying EBITDA is expected to be between $7.8 billion to $8 billion, which would be a growth of between 6.8% to 9.6%.

The above underlying EBITDA guidance includes a contribution from Digicel Pacific, which is a Pacific island-focused telco that Telstra bought during the year.

Telstra’s board decided to increase the final FY22 dividend by 6.25% to 8.5 cents, which could signal that future increases are intended.

Can Telstra shares deliver in 2023?

Investors often like to judge a business by its ability to generate profit. The more profit it makes, the higher the valuation could go. The fact that Telstra is predicting underlying profit growth in FY23 is promising.

If the ASX 200 hadn’t dropped by 7%, things may have been better for the Telstra share price. Higher interest rates were probably a key culprit for the decline. As billionaire Ray Dalio once said:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

Commsec numbers suggest that Telstra is going to generate 17.1 cents of earnings per share (EPS) while paying a dividend per share of 17 cents in FY23. A higher dividend (up from 16.5 cents per share) could boost investor sentiment about Telstra shares.

Plus, Telstra is on its journey of the T25 strategy which aims to cut costs, roll out 5G coverage, increase dividends and improve customer and employee satisfaction.

One of the main boosts to Telstra’s earnings could be that it has announced it’s going to increase mobile prices in line with CPI inflation, which could be a sizeable boost to organic revenue.

The post Telstra shares fell short in 2022. Can they deliver 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended 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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If you’re looking for dividends for your income portfolio, then it could be a good idea to check out the two shares named below.

These ASX 200 dividend shares have been rated as buys by analysts at Morgans. Here’s what the broker is saying about them:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that Morgans has tipped as a buy is insurance giant QBE.

The broker is feeling positive about the company’s outlook thanks to rising premiums and cost reductions. It explained:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE

In respect to dividends, Morgans expects QBE to pay a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $13.43, this equates to yields of 3.1% and 5.7%, respectively.

Morgans has an add rating and $14.93 price target on QBE’s shares.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that Morgans has named as a buy is South32.

It is a mining giant with a diverse collection of operations providing exposure to a range of commodities including aluminium, copper, manganese, and nickel.

Morgans remains positive on South32 despite its soft start to the financial year. The broker sees it as well-placed to benefit from China’s recovery from the pandemic and likes its portfolio transformation and strong balance sheet. Its analysts said:

Slow start to the year but S32 remains in robust shape, with clear exposure to a recovery scenario for China growth. […] We expect S32 to continue transitioning its portfolio further towards base metals, with a strong balance sheet supporting potential for further M&A. We view S32 as a key large-cap (ex-iron ore) sector pick.

As for dividends, Morgans is expecting South32 to pay fully franked dividends per share of 23 cents in FY 2023 and 21.6 cents in FY 2024. Based on the current South32 share price of $4.00, this will mean yields of 5.75% and 5.4%, respectively.

The broker has an add rating and $5.30 price target on the miner’s shares.

The post Morgans names 2 ASX 200 dividend shares to buy with 5%+ yields 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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If you invested $1,000 in AGL Energy Limited (ASX: AGL) shares in early 2013, you might be disappointed in your investment so far. Fortunately, however, the company’s dividends have offset the worst of its stock’s performance.

The energy provider’s share price has crumbled in recent years amid rising demand for greener power. AGL is Australia’s biggest greenhouse gas emitter. Thus, it’s been centre to such conversations – and it’s started a few of its own.

The company’s initial proposal to spin off its dirtiest assets was dramatically scrapped last year, replaced with a $20 billion plan to ditch coal in favour of renewables.

Its plan for a greener future, alongside the soaring energy sector, saw the AGL share price gain 28% last year. Zooming out, however, shows a bleaker picture.

The AGL share price has crashed around 45% over the last decade. A $1,000 investment in the energy giant in early 2013 would likely have seen a buyer walk away with 68 shares, paying $14.57 apiece, and $9 change.

Today, that parcel would be worth just $548.76. The AGL share price last traded at $8.07.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 49% over the last 10 years.

Have AGL’s dividends made up for its share price’s poor performance in that time? Let’s take a look.

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

Here are all the dividends AGL has offered over the last decade:

AGL dividends’ pay date	Type	Dividend amount
September 2022	Final	10 cents
March 2022	Interim	16 cents
September 2021	Final	34 cents
March 2021	Interim	31 cents
March 2021	Special	10 cents
September 2020	Final	51 cents
March 2020	Interim	47 cents
September 2019	Final	64 cents
March 2019	Interim	55 cents
September 2018	Final	63 cents
March 2018	Interim	54 cents
September 2017	Final	50 cents
March 2017	Interim	41 cents
September 2016	Final	36 cents
March 2016	Interim	32 cents
September 2015	Final	34 cents
March 2015	Interim	30 cents
September 2014	Final	33 cents
April 2014	Interim	30 cents
September 2013	Final	33 cents
April 2013	Interim	30 cents
Total:		$7.84

While those invested in AGL shares haven’t realised much in the way of gains over the last decade, the company’s dividends have at least seen them break even.

The company has paid out $7.84 per share in that time, meaning our figurative parcel would have yielded $533.12 in dividend income in that time.

That leaves our imagined $1,000 purchase – considering both the AGL share price’s slump and the company’s offerings – with an 8.2% return on investment (ROI) over the last 10 years.

Additionally, many of the ASX 200 giant’s dividends have been franked. That means they might have brought extra benefits for some investors at tax time.

AGL shares are currently trading with a 3.2% dividend yield.

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

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

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