Tag: Motley Fool

1) It has been a brutal year for those of us invested in growth and/or small cap stocks, with sharply rising interest rates having the effect of sending share prices of many such companies down 50% or more.

And the fight against inflation is not over yet, with central banks around the world still tightening, hoping to pull off a miracle soft landing, but more likely sending many economies into recession.

The narrative is shifting from questioning how high interest rates need to rise, and when central banks will pivot to lowering them, to predicting the severity and duration of the economic downturn. 

“Wall Street’s 2023 profit decline could rival GFC,” says the headline in the AFR, with Michael Wilson, Morgan Stanley’s chief US equity strategist, saying the earnings recession could be similar to what transpired in 2008-09.

Based on its bearish earnings forecast, the investment bank is suggesting US equities could plunge more than 20% from current levels. Thankfully, “Morgan Stanley does not see signs of distress in the housing market or systemic financial risk, meaning it does not expect 50 per cent downside for shares, as seen in 2008,” according to the AFR article.

“The fixation on inflation and the Fed continues, but markets appear to have moved past it and onto the real concern – earnings growth/recession,” Mr Wilson said. “Rates and inflation may have peaked, but we see that as a warning sign for profitability.”

2) Right on cue, enter plus size retailer, City Chic Collective Ltd (ASX: CCX) which today warned of continued volatile trading, with overall demand below expectations.

In response, City Chic has increased its promotional activity to drive demand, resulting in further gross margin compression. The company now expects to report a small underlying EBITDA loss in the first half, a half that encompasses the peak Black Friday and Christmas trading periods. Or should that be Red Friday, given Black Friday is thought to derive its name from the day when retailers go from losses to profits in the trading year?

The City Chic share price has taken yet another bath today, down 22% to 46 cents, and is now down 91% in the past 12 months.

Buying a falling knife – like City Chic – is fraught with danger. Profit warnings often come in threes, and turnarounds either don’t turnaround, or can take longer than expected to recover.

It appears the Spheria Asset Management Australian Microcap Fund has been on the wrong side of the City Chic trade – so far at least – given comments in its November monthly update…

“We believe the share price fall has created an opportunity to buy a business at a significant discount to our view of its intrinsic value. The core driver of their earnings continues to be their Australian City Chic store business. Given the share price weakness you are buying the Australian business for ~5x normalised EBIT with potentially more upside for profit turnarounds at its international online businesses – Avenue (US based) and Evans (UK based).”

Stock picking – especially in this economic environment – is tough, especially in the retail sector. Consumers’ willingness to spend on discretionary items is clearly going to deteriorate in 2023 as higher interest rates eventually take their toll. 

Beware the falling knife.

3) Coal, lithium and energy stocks have helped the S&P/ASX 200 Index (ASX: XJO) avoid the big falls seen on US markets, the Whitehaven Coal Ltd (ASX: WHC) share price taking the gold medal for the biggest gain in 2022, up over 300%, showing coal demand to be anything but in terminal decline.

Also helping prop up the ASX 200 index have been three out of the four big bank shares, with Westpac Banking Corp (ASX: WBC) shares up 8.9%, National Australia Bank (ASX: NAB) shares up 4.9% and Commonwealth Bank of Australia (ASX: CBA) shares up 4.6%. The odd bank out is Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares down 13.8% so far in 2022.

Beloved for their full franked dividends, bank shares also prop up many self managed super funds, helping deliver a solid year for many retirees. 

As thoughts turn to 2023, a year of falling house prices and subdued consumer confidence – and with them, lower lending demand and higher default rates – the premium valuation afforded CBA shares leaves little downside protection. 

Even the famed CBA fully franked dividend is not looking overly attractive, yielding just 3.6%, about the same as you can earn risk-free in a bank savings account. 

CBA shares are not the only popular blue chip stock trading on a premium valuation. According to S&P Capital IQ, Telstra Group Ltd (ASX: TLS) shares trade on 28 times earnings and Woolworths Group Ltd (ASX: WOW) shares trade on 27 times earnings. 

Put another way, that’s an earnings yield for both stocks of about 3.5%, a rating that might make sense when interest rates are at close to zero, but leaves little downside protection with the RBA cash rate likely headed to 3.6% before Easter. 

Retirees looking to preserve capital whilst banking fully franked dividends from popular blue chip stocks might be looking at a much tougher 2023.

The post Little downside protection for popular ASX 200 stocks as 2023 looms a much tougher year for blue chip stocks appeared first on The Motley Fool Australia.

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More reading

• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• Why did this ASX All Ordinaries share just crash 19%?
• Should I buy NAB shares for 2023?
• Building a passive income for retirement? Check out these ASX 200 dividend shares – analysts
• Are Westpac shares worth buying now for dividend income in 2023?

Motley Fool contributor Bruce Jackson 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 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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Hopes of a last-minute Santa rally this December seem to be fading fast, as the S&P/ASX 200 Index (ASX: XJO) records another loss so far this Tuesday. At the time of writing, the ASX 200 has tanked by a nasty 1.55%, putting the index at just over 7,025 points.

Rather than trying to figure all of that out, let’s instead take a gander at the ASX 200 shares currently at the top of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Star Entertainment Group Ltd (ASX: SGR)

Once again, ASX 200 casino operator Star Entertainment makes an appearance on this list today, with a chunky 14.91 million shares traded thus far. And once again, it’s bad news for shareholders. Fresh off of yesterday’s horrid 17.8% drop, Star shares have fallen another 9.67% so far this Tuesday to a new 52-week low of $1.92 a share at the time of writing.

It seems that news of a new state government tax on casino earnings is continuing to weigh on this gaming share today, and explains the high volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Now time for a regular on this list in ASX 200 lithium share Pilbara Minerals. This Tuesday has had a decent 19.44 million Pilbara shares swap hands as it currently stands.

With no fresh developments out from the company, this looks like a consequence of the share price falls we are seeing with Pilbara today. At present, Pilbara has lost a nasty 3.72% and is back down to $3.88 a share. The lithium leader has now lost around a third of its value since its record high of $5.66 last month.

Core Lithium Ltd (ASX: CXO)

Finally today we have another ASX 200 lithium share in Core Lithium. This session has had a massive 21.18 million Core Lithium shares bought and sold on the share market so far. Just like Pilbara, this looks like it is the result of a depressing share price move.

Unfortunately for Core Lithium investors, the market seems intent on singling out Core for punishment. This lithium share has lost a painful 5.83% so far this Tuesday, putting it down to $1.02 a share. Core shares are now down close to 50% from last month’s record high of $1.88 per share.

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

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More reading

• Guess which ASX 200 director just sold off $27 million worth of their company’s shares
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Core Lithium share price has 25% upside: Macquarie
• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• 5 things to watch on the ASX 200 on Tuesday

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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Rio Tinto Limited (ASX: RIO) shares offer investors a very high dividend yield much of the time. The ASX iron ore share pays one of the largest dividends on the ASX, although there’s more to a dividend than just the dollar amount.

Of course, the changing iron ore price can have a major impact on the Rio Tinto share price, the company’s profitability, and its profit.

However, as we’ve seen, even if the iron ore price drops, the company is still able to pay a pleasing dividend yield.

I think it largely comes down to two key reasons.

Quite high dividend payout ratio

When a company makes a net profit after tax (NPAT), the board has the choice to pay a dividend.

If a business makes $10 of profit and pays a $4 dividend, that’s a 40% dividend payout ratio. If it pays $7.50 then it’s a payout ratio of 75%. The higher the payout ratio, the higher the dividend yield.

Every business needs to balance the desire to reward shareholders, strengthen its balance sheet, and re-invest for growth.

For Rio Tinto, its target is to return between 40% to 60% of underlying earnings on average through the cycle.

According to the company, it has paid an average of 60% of its profit in ordinary dividends over the past six years. It has also made additional returns, such as special dividends. The average total payout was 74% over the past six years.

Checking Commsec numbers, Rio Tinto is expected to pay out 64.5% of its net profit in FY23, which could result in a forward grossed-up dividend yield of 8.9% with a $7.09 per share dividend. The FY24 payout ratio could be 67.3% according to the $6.48 per share projection, translating into a future grossed-up dividend yield of 8.1%.

However, there is another important factor that can play a large part.

Low earnings multiple

The price/earnings (P/E) ratio has a big influence on the dividend yield.

Rio Tinto typically trades on a low P/E ratio, which means that the Rio Tinto share price is trading at a smaller multiple to its earnings per share (EPS) than other shares such as Commonwealth Bank of Australia (ASX: CBA), which is at a high-teen earnings multiple.

If the P/E ratio goes higher, this will push the dividend yield lower. It’s the opposite when the P/E ratio is low – the dividend yield can end up being pretty high.

Utilising Commsec numbers, the Rio Tinto share price is valued at 10 times FY23’s estimated earnings and under 12 times FY24’s estimated earnings.

If the Rio Tinto dividend stayed the same but the Rio Tino share price doubled, then the dividend yield would be half as high.

Foolish takeaway

Rio Tinto is one of the largest dividend payers, and it’s expected to keep it up in the coming years. Copper and lithium could play a bigger role in the company’s fortunes in the coming years, but iron could have the biggest influence. Will the iron ore price keep going up? That question could have a major influence on the medium-term outlook for both the Rio Tinto dividend and the Rio Tinto share price.

The post Why is the Rio Tinto dividend yield so high? appeared first on The Motley Fool Australia.

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More reading

• Could copper become ‘the lithium’ of 2023?
• Own Rio Tinto shares? Here are the key dates to watch in 2023
• Why did the iron ore price just hit a 6-month high?
• Why Aurizon, Norwest, Rio Tinto, and Strike Energy shares are rising today
• Why is the Rio Tinto share price wallowing on Wednesday?

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 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 Novonix Ltd (ASX: NVX) share price has experienced a destructive share price crash of 80% during 2022. This dramatic drop in value has left many investors wondering if the crash is justified, and what could have caused such a steep decline.

One possibility is that Novonix’s financial performance has not lived up to expectations. Typically, a difference between market expectations and reality can only be sustained for so long before investors react.

The Novonix share price entered the year with its chest puffed out — parading a $10.52 price tag. Exactly 353 days later, the scenery isn’t as picturesque for the battery technology company. Today, shares in the same company are swapping hands at $1.73, as displayed above.

Is there a good reason for the punishment?

It’s worth taking a closer look at Novonix’s financial performance to see if this is a possible reason for the share price crash.

According to the company’s financial statements, Novonix has seen accelerating revenue growth in recent years. From FY20 to FY21, Novonix increased its revenue by 28% to $5.23 million. Amping up the growth, revenue grew by 61% in FY22.

However, the company’s bottom line has significantly deteriorated in the current year. In an environment where capital is becoming more expensive, it wouldn’t be a surprise if investors became less bullish on Novonix as its losses widened. Losses in FY22 totalled $71.44 million, taking a gigantic leap deeper from $18.08 million in the prior year.

Novonix finished the September ending quarter with $181.77 million of cash on hand. Although, with a worsening cash burn, shareholders might be concerned about future dilution if the company fails to navigate to positive cash flow with its current capital.

It’s also worth considering whether the overall market conditions played a role in Novonix’s share price crash. Novonix fits somewhere in between a tech share and a battery material share. While battery material producers — such as ASX lithium shares — have generally performed well this year, tech shares have had a miserable run.

Novonix share price walloping warranted?

So, is Novonix’s 80% share price crash justified? It’s difficult to say for certain without the benefit of hindsight. Even now, the company could appear richly valued given its trading at 102 times revenue for the trailing 12 months.

On the flip side, many non-financial achievements were obtained during the year. These include:

• Securing a graphite supply agreement with KORE Power
• Entering negotiations with the US Department of Energy for US$150 million of funding
• Constructed and opened multiple manufacturing and testing facilities

The above developments are encouraging for long-term investors. However, the market has shown that it wants profits to support a rich valuation. The Novonix share price could risk further declines if the company continues to churn through its capital.

The post Is Novonix’s 80% share price crash in 2022 justified? appeared first on The Motley Fool Australia.

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More reading

• Why did the Novonix share price have such a stellar run today?
• Here are the top 10 ASX 200 shares today
• The Novonix share price has crashed another 14% already this week. What’s going on?
• Why did the Novonix share price crash 16% in November?
• These were the worst performing ASX 200 shares in November

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 Johns Lyng Group Ltd (ASX: JLG) share price is plummeting on Tuesday after the company revealed a director had offloaded four million of its shares.

Lindsay Barber, who is both the S&P/ASX 200 Index (ASX: XJO) company’s chief operating officer and one of its directors, sold the parcel in a bid to diversify his personal portfolio.

As of Monday’s close, four million Johns Lyng shares would have been worth around $27.2 million. Though, the building services company didn’t reveal the amount Barber received from the sale.

The market is reacting poorly to news of the sale and an accompanying guidance update.

It’s bidding the Johns Lyng share price 13.22% lower to trade at $5.91 at the time of writing.

Let’s take a closer look at the latest from the ASX 200 industrials share.

ASX 200 share tumbles on insider selling

The Johns Lyng share price is suffering amid another bout of insider selling today.

Barber recently sold 31% of his personal stake in the company, retaining around 8,871,000 shares.

The company states the insider remains committed to his role and has vowed not to sell any more shares within the next 12 months.

It’s just the latest round of insider selling going down among Johns Lyng bigwigs.

Both Barber and managing director and CEO Scott Didier sold a million shares in May. Didier was later revealed to have offloaded another four million shares in October.

All sales were undergone for personal reasons. The former was a move to manage their portfolios while the latter was to finance Didier’s move to the US.

Reconfirmed guidance

Johns Lyng also reconfirmed its financial year 2023 guidance today. It still expects to post around $1 billion of sales revenue and $105 million of earnings before interest, tax, depreciation, and amortisation (EBITDA).

Today’s fall included, the Johns Lyng share price is down 33% year to date. It has also fallen 28% since this time last year.

Comparatively, the ASX 200 has dropped 7% year to date and 3% over the last 12 months.

The post Guess which ASX 200 director just sold off $27 million worth of their company’s shares appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng 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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ASX gold exchange-traded funds (ETFs) like the Global X Physical Gold ETF (ASX: GOLD) seem to be the talk of the ASX town this week.

Gold is a rather peculiar asset to invest in. Unlike ASX shares, you can buy and sell gold outside the ASX by just going to a bullion shop. Or a jeweller.

But there are many ways to invest in gold on the ASX too. There are gold miners, of course. The ASX has quite a few, such as Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). But there are also gold ETFs to consider.

Take the Global X Physical Gold ETF. This fund, according to the provider, is backed by physical gold bullion. This bullion, in the form of “segregated, individually identified and allocated” bars, is held in a London vault. As such, an investment into the Global X Physical Gold ETF is an indirect investment in these gold bars.

If investors don’t want to store physical gold bullion in their homes, then an ETF like this is a viable alternative for any investor seeking exposure to gold.

But why gold in this day and age?

Why is gold all the rage right now?

Well, gold is an asset that is traditionally viewed as a hedge against inflation, economic uncertainty and financial instability. With rising interest rates, high inflation, the ongoing war in Ukraine and a possible recession next year, investors might be a bit nervous going into 2023.

The Future Fund certainly is. Australia’s sovereign wealth fund warned investors in its last portfolio update that it would be positioning its investment portfolio:

Looking ahead, key issues will be the extent of monetary policy tightening required to achieve inflation targets, how markets will respond to tightening measures, and the impact of fiscal policy measures on global financial systems. Ongoing geopolitical tensions also continue to pose risks to investors.

The Board continues to take a prudent approach to positioning the portfolio. We are focused on sustaining a portfolio that is as robust as possible to a range of scenarios, and that balances our risk and return objectives. We expect that real returns will continue to be much lower than in recent decades.

According to recent reporting in The Australian, this includes investing in gold. The Future Fund reportedly began buying exposure to the precious metal in 2020.

Today, Future Fund chief executive Raphael Arndt told The Australian that the Fund is holding “a few percent” in gold, a stake that probably did the fund well in 2022.

This year has been a dire one for most major asset classes. The S&P/ASX 200 Index (ASX: XJO) remains down by more than 6.5% year to date. The US S&P 500 Index has fared even worse, copping a fall of more than 20%. Property and bonds have also been general money losers.

And yet the Global X Physical Gold ETF is up more than 6% this year so far, proving the value of owning gold for a risk-averse portfolio like the Future Fund.

The post Why is everyone suddenly talking about the Global X Physical Gold ETF? appeared first on The Motley Fool Australia.

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More reading

• M&A action: ASX lithium share halted amid major acquisition
• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today
• Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. 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 Arizona Lithium Ltd (ASX: AZL) share price is in the freezer as the market prepares to hear news of merger and acquisition activity.

That $159 million Aussie lithium stock is rumoured to be acquiring Canada’s Prairie Lithium – which reportedly comes with an $80 million price tag.

The Arizona Lithium share price entered a trading halt on Monday morning, leaving it frozen at 6.2 cents.

And there it will remain until tomorrow morning unless the company drops more details this afternoon.

Let’s take a closer look at what could be going down at the ASX lithium share this week.

Arizona Lithium shares frozen as ASX waits for M&A news

Arizona Lithium requested its shares be halted on Monday morning amid what it described as a “material acquisition”. Sadly, that’s all we’ve got from the horse’s mouth so far.

Meanwhile, the Australian Financial Review reports the ASX company is gearing up to buy Prairie Lithium in a part-cash, part-scrip deal worth around $80 million.

The unlisted Canadian company is exploring the nation’s Saskatchewan province for lithium brine resources. Arizona Lithium is also exploring lithium in North America. It holds Arizona’s Big Sandy project.

Work on Big Sandy’s definitive feasibility study kicked off last month. It’s expected to be completed within a year.

The potential that production at Prairie Lithium’s project could kick off sooner than at Big Sandy is a major factor in the rumoured acquisition, according to the publication.

No doubt all eyes will be on the Arizona Lithium share price when it returns to trade. Particularly as this year has seen it tumble into the red.

The ASX lithium share is currently down 48% year to date. It has also fallen 31% since this time last year.

The post M&A action: ASX lithium share halted amid major acquisition appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today
• Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• Here’s how I’d invest $10,000 in ASX shares for 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped into the red. At the time of writing, the benchmark index is down 0.55% to 7,094.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

AGL Energy Limited (ASX: AGL)

The AGL share price is up 2% to $8.04. Investors have been buying this energy company’s shares despite there being no news out of it. They may be looking for safe havens given the share market’s current volatility.

Invictus Energy Ltd (ASX: IVZ)

The Invictus Energy share price is up 17% to 34.5 cents. Yesterday this energy explorer revealed that underwater drilling encountered fluorescence and elevated gas shows in multiple zones of the Upper Angwa primary target. Managing Director Scott Macmillan said: “We have had further encouraging signs from the Mukuyu-1 sidetrack well since drilling recommenced, with multiple zones encountering elevated gas shows and fluorescence in our Upper Angwa primary target proving relatively consistent with the original Mukuyu-1 well.”

Maas Group Holdings Ltd (ASX: MGH)

The Maas share price is up 2% to $2.64. This is despite there being no news out of the construction materials, equipment and service provider. Though, it is worth highlighting that Goldman Sachs initiated coverage on the company this month with a buy rating and lofty $4.20 price target. This implies significant upside over the next 12 months.

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 share price is up almost 2% to 57 cents. This morning, this medical imaging software solutions company announced a sales agreement with Nuvodia. The agreement is for Mach7’s entire Enterprise Imaging Platform, which will provide a true enterprise wide PACS solution. The subscription contract has a five-year term and a total contract value of $2.5 million. Nuvodia is a US-based national IT and radiology service provider that creates, manages, and supports mission-critical IT environments.

The post Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today appeared first on The Motley Fool Australia.

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More reading

• Buy AGL shares for 17% upside: top broker
• Here are the top 10 ASX 200 shares today
• 2 directors have been buying up AGL shares. Should you?
• Why is the AGL share price tumbling on Monday?
• Top brokers name 3 ASX shares to buy next week

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 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 iShares S&P 500 ETF (ASX: IVV) is not an exchange-traded fund (ETF) that has a strong reputation for dividend income. Covering the S&P 500 Index on the US markets, this ASX ETF holds 500 of the largest companies listed in America.

You’ll find everything from Apple, Microsoft, and Amazon to Exxon Mobil, Costco, and Tesla here in this ETF. As well as American Express, Coca-Cola, and Kraft Heinz.

US shares are not known for their high dividends, which of course don’t come with franking credits either. But the S&P 500 Index still has a robust dividend record and, as such, so does the iShares S&P 500 ETF.

This fund actually pays out a dividend distribution every quarter, not every six months, as is the norm here in Australia.

When is the iShares S&P 500 ETF’s latest dividend distribution?

The iShares S&P 500 ETF’s next dividend distribution is coming soon too. How soon? Well, investors can look forward to their next quarterly payout on 5 January. But if they wish to receive it, any new investors had better be quick. This ETF is scheduled to trade ex-distribution tomorrow, 21 December.

That means that any investor who doesn’t own iShares S&P 500 ETF units by the end of today’s trading session will be ineligible for this latest dividend distribution.

This is the iShares first dividend distribution payment since this ETF’s recent stock split. The fund split its units in a 15-to-1 unit division earlier this month.

iShares only released exactly how much investors can expect from this latest payout this morning. Unitholders can look forward to receiving a payment worth 12.63 cents per unit on 5 January. That will bring this ETF’s total distributions for the past 12 months to 53.6 cents per share on a post-split basis.

This total gives the iShares S&P 500 ETF a trailing dividend distribution yield of 1.4% on the current unit price of $38.15 (at the time of writing).

The post Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• Will there be a stock market crash in 2023?
• Is the iShares S&P 500 ETF (IVV) a buy following its stock split?
• Is the iShares S&P 500 ETF (IVV) really down 95% today?
• What you need to know about next week’s iShares S&P 500 ETF (IVV) stock split
• 2 ASX ETFs I’d buy right now if I were in my 20s

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Amazon.com, American Express, Apple, Coca-Cola, Costco Wholesale, Kraft Heinz, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, Costco Wholesale, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon.com, Apple, and iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Woodside Energy Group Ltd (ASX: WDS) share price is defying the market’s tumble on Tuesday. Its strong performance follows a good night for oil prices.

Right now, the Woodside share price is $36.01. That’s 0.73% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.59% so far today to trade at 7,091.9 points at the time of writing.

Let’s take a closer look at what’s bolstering the Woodside share price above the market’s fall today.

What’s going right for the Woodside share price today?

The Woodside share price is outperforming alongside many of its oil-producing peers today.

The stock is one of many driving the S&P/ASX 200 Energy Index (ASX: XEJ) to trade in the green, defying the market’s downturn. The energy sector is currently up 0.46% – making it the ASX 200’s best-performing sector so far today.

Its gain follows a strong night’s trade for oil. The Brent crude oil price rose 1% to US$79.80 a barrel overnight while the US Nymex crude oil price gained 1.2% to US$75.19 a barrel.

The black liquid’s value lifted amid rising hopes China might relax its COVID-19 restrictions, thereby likely increasing demand for the energy commodity, Reuters reports.

Its gains also come despite concerns the United States could fall into a recession after the nation’s Federal Reserve continued to battle rampant inflation with back-to-back rate hikes last week.

A rise in oil prices tends to drive Woodside’s stock higher. That’s because much of the company’s earnings depend on the commodity’s value. The higher the oil price, the more cash the oil producer can bring in.

Joining Woodside in the green today is the Santos Ltd (ASX: STO) share price. It’s gained 0.35% at the time of writing.

Meanwhile, fellow oil stock Beach Energy Ltd (ASX: BPT) is suffering alongside the market, falling 0.62%.

The post Why is the Woodside share price smashing the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Invest, or not to invest in ASX shares: Why I think the pessimists are wrong again
• Is the Pinnacle share price the ASX 200’s biggest bargain right now?

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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