Tag: Motley Fool

If you’re just starting your investment journey and aren’t sure which ASX shares to buy, then you could consider exchange traded funds (ETFs) instead.

ETFs provide investors with an easy way to invest because they allow you to buy large groups of shares through just a single investment.

But which ETFs would be good for beginners? Two to consider are listed below. Here’s what you need to know about these top ETFs:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a good option for beginners is the BetaShares NASDAQ 100 ETF. This ETF provides investors with access to 100 of the largest non-financial companies listed on Wall Street’s famous exchange.

These 100 stocks are some of the biggest and best companies in the world and household names such as Google parent Alphabet, Amazon, Apple, Meta (Facebook), Microsoft, Netflix, Nvidia, Starbucks, and Tesla.

It has been a very difficult year for the NDQ ETF and its units are down materially. However, due to the quality in the ETF, the long term remains very positive. This could make it a great time to be snapping up this hugely popular ETF.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that could be a great investment option for beginners is the VanEck Vectors Morningstar Wide Moat ETF.

If you’re a fan of legendary investor Warren Buffett, then this ETF could be for you. This Buffett-inspired ETF gives investors access to a group of companies that have sustainable competitive advantages or moats.

Moats are a characteristic that Buffett looks for when he’s finding his investments. And given his track record over many decades, it’s hard to argue against this strategy.

The fund is currently invested across ~50 attractively priced shares boasting these qualities. This includes the likes of Adobe, Alphabet, Intel, Kellogg Co, and Walt Disney.

The post 2 high quality ETFs for ASX beginner investors to buy in 2023 appeared first on The Motley Fool Australia.

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More reading

• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• New kids on the ASX block: Why did Gen Z flock to the BetaShares Nasdaq ETF (NDQ) in 2022?
• Down 27% this year, is the Betashares Nasdaq 100 ETF (NDQ) a buy before 2023?
• One Warren Buffett-style stock I’m ‘never’ selling
• Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat 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 S&P/ASX 200 Index (ASX: XJO) tumbled into the weekend on the back of a dire session on Wall Street. The index closed 0.78% lower at 7,148.7 points today. That marks a 0.89% week-on-week fall.

Fears of a recession following the recent rate hike from the US Federal Reserve appeared to drive New York indices lower overnight. The Dow Jones Industrial Average Index (DJX: .DJI) fell 2.2%, the S&P 500 Index (SP: .INX) dropped 2.5%, and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) plunged 3.2%.

With that in mind, I doubt it’s a surprise to anyone that Aussie tech stocks were among those suffering the most today. The S&P/ASX 200 Information Technology Index (ASX: XIJ) plummeted 2%. The Block Inc (ASX: SQ2) share price led the sector’s fall with a 6.2% tumble.

On the other hand, the S&P/ASX 200 Energy Index (ASX: XEJ) posted the biggest gain, rising 0.3% despite falling oil prices.

The Brent crude oil price fell 1.8% to US$81.21 a barrel and the US Nymex crude oil price dropped 1.5% to US$76.11 a barrel.

All in all, two of the ASX 200’s 11 sectors closed in the green today. But which stock outperformed all others to end the week on the highest high? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was Aurizon Holdings Ltd (ASX: AZJ).

It gained 4% on news the company has found a buyer for its East Coast Rail business. The competition watchdog declared the business’ sale a condition of Aurizon’s previous acquisition of One Rail Australia.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Aurizon Holdings Ltd (ASX: AZJ)	$3.87	4.03%
Kelsian Group Ltd (ASX: KLS)	$6.08	3.58%
Coronado Global Resources Inc (ASX: CRN)	$1.99	3.11%
New Hope Corporation Limited (ASX: NHC)	$6.24	2.8%
Spark New Zealand Ltd (ASX: SPK)	$5.05	2.64%
Viva Energy Group Ltd (ASX: VEA)	$2.76	2.6%
Ampol Ltd (ASX: ALD)	$28.58	2.47%
Sayona Mining Ltd (ASX: SYA)	$0.21	2.44%
Brickworks Limited (ASX: BKW)	$22.59	2.26%
Charter Hall Long WALE REIT (ASX: CLW)	$4.62	2.21%

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares smashing the market on Friday
• Why Aurizon, Norwest, Rio Tinto, and Strike Energy shares are rising today
• Why did the Sayona Mining share price dive 7% on Thursday?
• Here are the top 10 ASX 200 shares today
• Here are the old and new energy ASX 200 shares that investors were buying last month

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 Block and Brickworks. The Motley Fool Australia has positions in and has recommended Block and Brickworks. The Motley Fool Australia has recommended Aurizon. 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 Woolworths Group Ltd (ASX: WOW) share price slipped into the red today after an important week for the large S&P/ASX 200 Index (ASX: XJO) share.

Woolworths shares closed on Friday trading for $34.31 apiece, a fall of 0.06%.

It comes after the company announced an asset sale and investment worth more than a combined $1 billion this week.

While it may be best known as a supermarket business, it’s the other areas that Woolworths is invested in that have captured the headlines.

Further sale of its former liquor and hotels division

A few days ago, it announced that it was going to sell a 5.5% stake in Endeavour Group Ltd (ASX: EDV) through a block trade at a price of $6.46 per share.

Woolworths reminded investors that this sale still meant it retained an interest in Endeavour Group and “has no current invention to undertake a further selldown in the short-to-medium-term”.

At the time, Woolworths said it doesn’t have “any information that is not generally available that a reasonable person would expect to have a material effect on the price or value of Endeavour Group’s securities”.

Woolworths CEO Brad Banducci said:

Our decision to reduce our stake comes after a successful transition from ownership to partnership with Endeavour Group. The proceeds will be used for strategic investments and general corporate purposes.

Acquisition of majority of Petspiration

Woolworths quickly put the money to work by announcing the purchase of 55% of pet group Petspiration. This is the business that has a number of segments including PETstock retail stores (and other retail brands), vet clinics and grooming stations.

The cash purchase price of $586 million represents an enterprise value of 11x earnings before interest, tax, depreciation, and amortisation (EBITDA). The business generated $158 million of EBITDA in the 12 months to September 2022.

Woolworths said the investment is expected to deliver “strong returns” with an internal rate of return (IRR) in the “mid-teens” and there are identified value creation opportunities. In time, it could help profits and, in turn, the Woolworths share price.

Banducci said of the acquisition:

Specialty pet is a large and growing retail segment in which we have limited presence. We are delighted to be investing alongside founders, Shane and David Young, in Petspiration, the number two player in the segment. Specialty pet is a logical adjacency given the high penetration of pet ownership across Australia and New Zealand. The partnership will allow us to meet more of our customers’ pet family needs with a complementary range of specialty pet products and services, strengthen the Everyday Rewards loyalty program and unlock opportunities for material value creation across both businesses.

Woolworths share price snapshot

Over the last month, the Woolworths share price has risen by around 2%. However, it is down 9% this year to date.

The post Shopping spree: What happened to the Woolworths share price today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• Should you buy Wesfarmers stock before it pops?
• 3 ASX shares to buy for a possible recession next year

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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It’s been another rough day for the S&P/ASX 200 Index (ASX: XJO) so far this Friday. At the time of writing, the ASX 200 is down by a painful 0.52%, pulling the index down to under 7,170 points. But it’s ASX 200 tech shares that are really feeling the pain today.

Tech shares are getting fried up this Friday, no way around it. Tech is one of the worst-performing ASX 200 sectors on the market today, only trailing ASX gold shares in losses.

Take the Block Inc (ASX: SQ2) share price. Block shares are presently down by a nasty 5.82% at $96.94 a share. Xero Limited (ASX: XRO) has slipped by 2.54% to $73.90 each, while Altium Limited (ASX: ALU) shares have lost 3% of their value to $36.46 a share. Appen Ltd (ASX: APX) has fallen by a depressing 4% to $2.52.

So why is the tech space getting singled out for some of the worst ASX 200 losses this Friday?

Why are ASX 200 tech shares getting fried up this Friday?

Well, it’s not entirely clear. But it is likely that what is happening over on the US markets is to blame here. The US markets have been roiled this week by the US Federal Reserve’s decision to raise interest rates by 0.5%.

Further, Fed chair Jay Powell made some hawkish comments that indicated that the Fed is far from finding an interest rate ceiling.

This decision, and accompanying comments from Powell, saw the US market tank, particularly the tech-heavy NASDAQ 100 Index.

Higher interest rates are especially damaging for tech shares since many are priced on their future growth prospects, rather than their present profitability.

In last night’s trading session, the NASDAQ crashed by a horrid 3.2%. So ASX tech shares were never going to have a rip-roaring kind of day today. That’s the most likely explanation as to why tech shares are having such a disappointing end to the trading week this Friday.

The post Why are ASX 200 tech shares being fried on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today
• One ASX share I’ve been buying in preparation for the next bull market
• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• 5 things to watch on the ASX 200 on Friday

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 positions in and has recommended Altium, Appen, Block, and Xero. The Motley Fool Australia has positions in and has recommended Block and Xero. 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 Fortescue Metals Group Limited (ASX: FMG) share price spent much of Friday outperforming before dipping into the red on the home stretch.

Stock in the iron ore giant started the day in the red before soaring – peaking at $20.73, 1.57% higher than its previous close.

That was despite the S&P/ASX 200 Index (ASX: XJO) tumbling over the course of the day following a brutal overnight session on Wall Street. Right now, the ASX 200 has dropped 0.53%.

Meanwhile, the Fortescue share price has sadly dropped into the red in late afternoon trade. It’s down 0.49% at $20.31 at the time of writing.

What might have inspired the stock’s rollercoaster of a day? Let’s take a look.

What’s going on with the Fortescue share price today?

The Fortescue share price has been up, down, and all around today amid surging iron ore prices, strength in the materials sector, and recognition of its boss, billionaire Andrew ‘Twiggy’ Forrest.

The S&P/ASX 200 Materials Index (ASX: XMJ) was among the market’s best-performing sectors for much of today. And while it has slipped into the red this afternoon, it’s still outperforming the broader market, down 0.34%.

The sector was buoyed as Singapore iron ore futures hit a six-month high. The steelmaking ingredient’s value surged amid reports from official Chinese media stating the nation will target economic growth by bolstering consumption and demand.

Meanwhile, Fortescue shares might have been front of mind today after the Australian Financial Review revealed Forrest has been included in its Business People of the Year list.

The publication wrote Forrest’s recent multi-billion acquisition of CWP Renewables, via his privately-owned Squadron Energy, cemented his place on the list.

The buy crowned the billionaire Australia’s largest renewable energy investor, operator, and developer.

Today’s moves included, the Fortescue share price is 2.5% higher than it was at the start of 2022. It has also gained 8% since this time last year.

The post What’s going on with the Fortescue share price on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price having another day to forget?
• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Why Chalice Mining, Fortescue, Mincor, and Zip shares are dropping today
• Why is the Fortescue share price tanking on Tuesday?
• Could the VAS ETF outperform the BHP share price 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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The second last Friday before Christmas. I don’t know about you, but it really feels like it, doesn’t it!

Don’t let them change the rules

I posted an article (and sent an email) this morning about the potential for some changes in financial advice that would likely, in my view, increase the risks for consumers.

If it’s recommended and implemented, it would remove the requirement for financial advisors to act in the ‘best interests’ of their clients. Which begs the question ‘If they’re not acting in our best interests, what are they doing?’.

Precisely.

I’ll have more to say if and when the government considers such a recommendation, but this is something you need to know about.

We need to make sure the government knows we want advice to continue to be in the ‘best interests’ of clients.

It’s staggering that I even have to type that. But 2022 has been one of those years, huh?

Some great holiday listening (and reading!)

A quick plug, here. You probably know we produce two podcasts: Motley Fool Money and The Good Oil.

The most recent episode of the latter is a ripper.

I spoke with long time business journo, Michael Pascoe.

But it wasn’t just a business chat.

He obviously has a sharp business and policy mind, and it was fascinating to get his take on where we’ve been, where we are, and where we’re going.

But he’s also written a book, recently. A memoir of sorts, it’s a cracking read and a book I highly recommend. So, if you’re looking for something to listen to, and then something to read, check out my chat with Michael on The Good Oil, then buy his book (he reads the audiobook, which I reckon is even better), The Summertime of our Dreams!

And there are lots more great episodes already in the podcast feed, and more to come – so make sure you check them out!

‘Tis the season

I mean yes, it’s that season. But it’s also the season for a phalanx of ‘year ahead’ articles.

And in financial circles that means forecasts.

Or, more honestly, ‘guesses’.

“What will the economy do?”

“Where will the ASX be by next Christmas?”

“Will Elon go completely mad?”

Okay, that last one might not be a common question. But you get my drift.

And, of course, the only answer to those questions (yes, even the Elon one) is “I don’t know”.

I’m lucky, too. I work for a business that lets me say ‘I don’t know’ without fear of losing my job.

Predictions are interesting. But for investors, they’re probably best left alone.

For my money, your time is better spent not predicting, but preparing.

Making sure your financial circumstances are flexible enough to allow for a range of possible outcomes. And that your portfolio is designed similarly.

If you have a truly long term perspective, that’s also very helpful – meaning you don’t have to make a series of short term predictions, hoping you’ll be right.

I own a group of businesses that I hope will be more profitable in five years’ time, and at prices I hope will go meaningfully higher over a similar timeframe.

That’s it.

What will happen on the ASX next year? To quote the great John Pierpont Morgan, “It will fluctuate”.

Quick takes

Overblown: Speaking of predictions… I don’t make them, but I do think most things tend to ‘mean revert’ – that is, they tend to be cyclical around an average, and tend to head back toward average over time. If I was a betting man, I think that’ll happen with oil, gas and coal prices, over time. I think these high prices will be, with hindsight, an aberration. We need to help some people deal with the impact of high energy prices. But I don’t think it’ll be a long term issue.

Underappreciated: It’s hard to say that something which gets national headlines can be ‘underappreciated’, but I’m not sure most people realise just how incredible 3.4% unemployment really is. 64,000 jobs created last month, highest participation rate on record, and almost anyone who wants a job can get one (with obvious exceptions). The economy has problems, and the future is uncertain, but this unemployment result is truly exceptional.

Fascinating: This week alone, we’ve seen reports of breakthroughs in nuclear fusion, computer chips to help paralysed people communicate, and a Harry and Meaghan documentary. Two out of three ain’t bad? (Seriously, though, while the headlines are focussed on the big daily things, life keeps getting better and better, in labs and offices around the world. Stay optimistic!)

Where I’ve been looking: I pick stocks for a living, but recently we launched an ETF-only service for those building an ETF portfolio or who want to use ETFs as a portfolio cornerstone. I’ve been spending a bit of time this week looking through the growing list of options. There are some really great ETFs. And some that give me the sense that the providers seem to be taking the… mickey. Just remember not all ETFs are the same. (And, shameless plug: the service is very, very cheap. Join us at fool.com.au/join-etf-investor But also, read all the Ts & Cs on the site etc etc)

Quote: “Pundits forecast not because they know, but because they are asked.” — John Kenneth Galbraith.

Fool on!

The post New rules, a new book, and new forecasts appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Fortescue share price on Friday?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• I’m racing to buy dirt-cheap ASX dividend shares before it’s too late
• 2 ASX ETFs trading ex-dividend next week
• Guess which ASX 200 share is trading ex-dividend next week

Motley Fool contributor Scott Phillips 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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After a rather volatile week, the S&P/ASX 200 Index (ASX: XJO) looks to be closing up on a sour note so far this Friday.

At the time of writing, the ASX 200 has fallen by another 0.41%, which has left the index at roughly 7,175 points.

But time now to focus on something else. So let’s now take a look at the ASX 200 shares currently at the peak of the market’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Liontown Resources Ltd (ASX: LTR)

First up this Friday is the ASX 200 lithium share Liontown Resources. So far today, a hefty 17.86 million Liontown shares have crossed the market to a new owner.

We haven’t heard anything new out of Liontown itself today, or indeed this month so far. So this volume is probably the result of the share price movements this company has experienced this session. Liontown shares have been volatile.

The company briefly broke even this morning, but investors have now sent the shares to $1.54 each, a nasty fall of 2.53% for the day so far.

Core Lithium Ltd (ASX: CXO)

Another ASX 200 lithium share is next up this Friday in Core Lithium. Today, we’ve seen a sizeable 29.22 million Core shares bought and sold on the markets thus far. Core has also been volatile today. But not quite in the same way.

The company opened in the red this morning but then had a pleasing spike up to $1.08 a share. At present, Core shares are going for $1.06 each, up by 0.95%. This volume is probably a consequence of the announcement Core made this morning.

As my Fool colleague Brooke covered at the time, Core has revealed that it has had some encouraging results from drilling work at its flagship Finniss Project.

Pilbara Minerals Ltd (ASX: PLS)

Our third, final and most traded ASX 200 share today is yet another lithium stock in Pilbara Minerals, with a whopping 34.609 million shares traded so far.

Yesterday, Pilbara topped this list following its disastrous 11.4% share price drop. Today, this pain seems to be continuing with Pilbara shares down another 0.99% at the time of writing to $3.99 each.

But Pilbara shares were in the green for most of the morning, only dipping this afternoon. That’s despite some love from ASX broker Morgans, which we looked at this morning. Again, it’s probably volatility that is the cause of so many shares flying around the ASX today.

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

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More reading

• Brokers name 3 ASX shares to buy today
• Why is the Core Lithium share price gaining on Friday?
• Make or break: the one metric I’ll be watching for Pilbara Minerals shares next year
• Pilbara Minerals share price selloff ‘a significant over-reaction’: broker
• 5 things to watch on the ASX 200 on Friday

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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If there’s one piece of stock market wisdom that we can all take to the bank, it is that good-quality ASX dividend shares never stay cheap for long.

The legendary investor Benjamin Graham, who once took a young Warren Buffett under his wing, proselytised that the stock market was a voting machine in the short term, but a weighing machine in the long run.

So let’s talk about some dirt-cheap ASX dividend shares that I think are too cheap to ignore today. Retail has been one of the sectors hardest hit this year. Rising interest rates seem to have convinced investors that retail shares are in for a shellacking very soon.

There is some merit to this line of thinking of course. When times are tough, consumers typically tighten their belts by cutting back on non-essential spending. And that typically includes retail.

2 ASX retail shares with massive dividend yields right now

But some of the falls we have seen in good-quality retail names have arguably been extreme. Take Harvey Norman Holdings Limited (ASX: HVN), one of the most dominant retailers in the country.

In 2022 to date, Harvey Norman shares have fallen by a painful 17% or so. Harvey Norman has also shed close to a third of its value since its last all-time high above $6 a share back in early 2021:

But this has left Harvey Norman shares with a trailing and fully-franked dividend yield of 8.98% today. With the value of that full franking, this yield would gross up to a whopping 12.83%.

Now Harvey Norman could well cut its dividend next year if times do get tougher, meaning that investors would not enjoy an 8.98% yield if they bought shares today.

But even if the dividends go back to the 24 cents per share that Harvey Norman paid out during the COVID-ravaged year of 2020 next year, investors would still enjoy a yield of 5.74% on the current Harvey Norman share price. That’s 8.2% grossed-up.

JB Hi-Income?

It’s a similar story with another top-notch ASX retailer in JB Hi-Fi Limited (ASX: JBH). JB shares are down by almost 13% this year, as you can see below:

But this has left the company with a fully-franked trailing dividend yield of 7.43% right now.

Again, JB is one of the strongest retailers in Australia. In FY 2022, this company reported a 7.7% rise in net profits after tax (NPAT) and a 43% increase in its final dividend.

Now, JB might not manage the total of $3.16 in dividends per share that it has managed in 2022 next year. But even if its dividends fell back to 2020 levels, investors would enjoy a yield of 6.57% on today’s current share price.

I think the market has oversold these top-quality companies this year on fears about what might happen next year. But this is exactly the kind of sentiment that creates a compelling buying opportunity.

Do I think both JB Hi-Fi and Harvey Norman will be around in 10 years, bigger and more successful than they are today? Yes.

As such, I see little reason not to take advantage of the steep share price falls we have seen over 2022. I think this is a great chance to lock in a pretty massive fully-franked dividend yield for years to come.

The post I’m racing to buy dirt-cheap ASX dividend shares before it’s too late appeared first on The Motley Fool Australia.

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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 positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Jb Hi-Fi. 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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Any ASX dividend investor worth their salt knows all about the ex-dividend date – the date that new investors are cut off from receiving an upcoming dividend payment.

Ex-dividend dates are usually notable events. For one, they are the dividing line between who gets cash and who doesn’t. But because new investors aren’t eligible for a dividend after the ex-dividend date passes, the value of said dividend leaves the company’s share price on the ex-dividend date. This usually results in a large share price fall.

Well, it’s not just ASX shares that can trade ex-dividend. Exchange-traded funds (ETFs) can pay dividends too. And as such, ETFs have ex-dividend dates as well.

Of course, dividends from an ETF are technically called distributions. This reflects the fact that an ETF is a trust, and not a company. As such, an ETF’s ex-dividend date is actually called its ‘ex-distribution’ date.

As we speak, two ASX ETFs are quickly approaching their next ex-distribution date.

Let’s discuss them.

2 ASX ETFs going ex-dividend next week

The first is the Vanguard FTSE All-World ex-US ETF (ASX: VEU). This ETF is a rather massive one in scope from provider Vanguard. It invests in a basket of roughly 3,500 shares hailing from countries all around the world, with the exception of the United States.

You’ll find ASX shares here, as well as those from Canada, Taiwan, Japan, China, Europe, India, and the United Kingdom.

This ETF pays out dividend distributions every quarter. Its latest distribution payment is due on 20 January 2023. However, only investors who own this ETF’s units on or before the ex-distribution date of 20 December (next Tuesday) will be eligible for payment.

Vanguard hasn’t yet disclosed the exact amount investors can expect to see for this distribution. The final amount in Australian dollar terms will only be revealed on 16 January.

Next up we have the Vanguard US Total Market Shares Index ETF (ASX: VTS). Another ETF from Vanguard, this fund covers not just the popular S&P 500 Index (SP: .INX), but a total of 4,030 shares on the US markets. This gives investors massive diversification across large and small-cap US shares.

Although the larger names like Apple and Amazon are still dominant in this ETF, name any US public company you can think of, and it’s probably in this fund too.

The Vanguard US Total Market Shares Index ETF also pays out quarterly distributions. Again, Vanguard hasn’t yet disclosed exactly how much investors can expect to be paid out yet. However, we do know that the next distribution date for this ETF will be on 25 January 2023.

Investors have until the ex-distribution date on 23 December to buy units of this ETF if they wish to receive this payment. The final amount in Aussie dollars will then be disclosed on 19 January next year.

The post 2 ASX ETFs trading ex-dividend next week appeared first on The Motley Fool Australia.

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• Here are 2 fantastic ETFs for ASX investors in 2023
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon.com and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon.com and Apple. 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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Metcash Limited (ASX: MTS) shares are rapidly approaching the ex-dividend date. This is the date where the S&P/ASX 200 Index (ASX: XJO) share’s owners will be allocated the upcoming dividend, but new shareholders will miss out.

The ex-dividend date is 20 December 2022, so investors wanting the dividend will need to own shares before then.

How much is Metcash going to pay as a dividend?

In its FY23 half-year result, the company announced that it had declared an interim dividend of 11.5 cents per share, which was a 9.5% year-over-year increase.

This dividend came after a 13.7% increase in underlying earnings per share (EPS) to 16.6 cents. The company is paying around 70% of its underlying net profit after tax (NPAT) as a dividend to investors.

An 11.5 cents per share dividend enables the company to pay out an attractive amount of cash flow, while still having plenty to re-invest back into the business for more growth and efficiencies.

Metcash says it has a continued focus on delivering “superior shareholder returns”, which is why it has a target dividend payout ratio of 70% underlying net profit.

How big will the full-year dividend be?

The broker Citi’s numbers suggest that Metcash shares could pay a full-year dividend of 22.5 cents per share, which would translate into a grossed-up dividend yield of 7.5%.

This half-year dividend alone amounts to a grossed-up dividend yield of 3.8% from the ASX 200 share.

With Metcash having a dividend payout ratio that’s fixed to the performance of its profit, the performance of that profit will be key for future payouts.

In the first four weeks of the second half of FY23, the company continued to see growth.

Metcash’s food segment has seen sales growth of 4%, or 10.6% excluding tobacco, reflecting “strong demand” and inflation.

Hardware total sales increased by 8% year over year. There has been a contribution from both acquisitions and inflation, though adverse building conditions have been a headwind.

Liquor total sales increased by 8.9% year over year thanks to a “continuation of strong demand across retail stores and on-premise customers”.

Metcash share price snapshot

Over the last month, Metcash shares have risen by around 8%.

The post Guess which ASX 200 share is trading ex-dividend next week appeared first on The Motley Fool Australia.

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More reading

• Can a high-yield ASX dividend stock still be safe?
• Metcash share price higher on dividend boost
• 5 things to watch on the ASX 200 on Monday
• Almost ready to retire? How to generate $70k per year of passive income from ASX dividend shares
• 3 ultra-high-yield ASX dividend shares you might regret not buying at these prices

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Metcash. 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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