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S&P/ASX 200 Index (ASX: XJO) gold shares are in the green today and also solidly up for the week.

The gold stocks have benefited from a boost in the gold price.

Gold edged 0.3% higher overnight, currently trading for US$1,794.81 per troy ounce. That puts the yellow metal up 1.5% since Monday’s opening bell.

While the ASX 200 is down 1.5% since trading commenced on Monday, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold shares outside of the ASX 200 – has gained 0.4%.

But the big gold producers have done much better. Here’s how their shares have moved this week:

• Northern Star Resources Ltd (ASX: NST) shares are up 1.1%
• Newcrest Mining Ltd (ASX: NCM) shares are up 1.7%

• Evolution Mining Ltd (ASX: EVN) shares are up 4.2%

What’s been happening in the world of gold?

With no price-sensitive news out from the ASX 200 gold shares this week, investors look to have rewarded them for the lift in gold prices, and a potentially solid outlook for the yellow metal heading into 2023.

That solid outlook is supported by a surge in bullion demand from global central banks.

As we reported on 24 November, the World Gold Council “revealed that the third quarter of 2022 saw global central banks buying bullion at the fastest rate ever, loading up on gold worth some $20 billion”.

The biggest identified buyers at the time were the central banks of Turkey, Qatar, and Uzbekistan.

But only some 25% of the gold splurge buying was publicly reported at the time.

This saw market watchers, including Justin McQueen, senior market analyst at Capital.com, speculate that China’s central bank may have been behind some of the surge in demand.

“The rationale is that China would look to reduce their exposure to the US dollar and therefore has been stockpiling on gold,” McQueen said.

He added that central banks “excessively accumulating” gold “does provide an undercurrent of support for the precious metal”. That, in turn, would help support ASX 200 gold shares.

Indeed, the China speculation has now proven to be a fact.

As Bloomberg reports, the People’s Bank of China raised its bullion holdings by 32 tonnes in November. It was the first time China reported increasing its gold reserves in more than three years.

With 1,980 tonnes of bullion reserves, the PBoC has the sixth-largest holding in the world.

According to Giovanni Staunovo, an analyst at UBS Group AG, “Gold holdings in China as part of the total reserves are still very low, so there is probably room for further purchases down the road.”

Nicky Shiels, head of strategy at MKS PAMP SA, added, “As deglobalisation accelerates, the non-G-10 nations are expected to ‘re-commoditise’ and ramp up gold holdings.”

That too could offer some tailwinds for ASX 200 gold shares in 2023.

How have these ASX 200 gold shares performed over the year?

Over the past 12 months, the Newcrest Mining share price is down 9%; Northern Star shares are up 20%; and the Evolution Mining share price has lost 25%.

You can see the past year’s price action for the ASX 200 gold shares below.

The post What’s driving ASX 200 gold shares to outperform this week? appeared first on The Motley Fool Australia.

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More reading

• I’d aim for $1 million, buying just 10 cheap ASX shares
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• The Newcrest share price has rocketed 35% since late September. What’s going on?
• Why Air New Zealand, Chalice, Evolution, and Origin shares are rising 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 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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Finally, a day of green ink for the S&P/ASX 200 Index (ASX: XJO)!

After a torrid week of mostly down days, the ASX 200 looks set to snap out of its recent slump and post a positive return this Friday. At the time of writing, the ASX 200 has added a healthy 0.58%, putting the index at just over 7,215 points.

So let’s now dig a little deeper into these end-of-week moves and check out the shares that are presently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Downer EDI Ltd (ASX: DOW)

After its inaugural appearance for the week yesterday, engineering services company Downer again makes the ASX 200’s most traded shares at this point of today’s session. So far this Friday, a hefty 13.54 million Downer shares have been traded on the ASX boards.

Unfortunately for investors, this looks like a consequence of the depressing announcement Downer made yesterday.

The company fronted up to investors admitting that it had overstated $30-40 million worth of earnings. The Downer share price fell more than 20% on this news yesterday, and is down another 4% so far today to $3.66 a share.

Pilbara Minerals Ltd (ASX: PLS)

Next up we have ASX 200 lithium leader Pilbara Minerals. This session has had a sizeable 23.61 million Pilbara shares trade hands as it currently stands. There hasn’t been much in the way of news or announcements out of Pilbara recently.

So this high volume is probably a byproduct of the share price falls that Pilbara is continuing to endure. Pilbara shares have been volatile today, breaking even several times over the session.

At present, the company has lost 0.78% and is down to $4.45 a share, but has traded between $4.38 and $4.54 today.

Core Lithium Ltd (ASX: CXO)

Our third, final and most traded ASX 200 share today is none other than Pilbara’s fellow lithium stock Core Lithium.

This Friday has had a whopping 44.82 million Core shares bought and sold at this point. This could be a consequence of the dim outlook ASX broker Goldman Sachs came out with for Core this week.

As we covered at the time, Goldman has slapped a sell rating on Core Lithium, with a $1 per share price target. Core Lithium shares are down another 2.12% today, which puts its losses for the week at more than 15%. Ouch.

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

• Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today
• Dividend darling becomes disappointment: What happened to Fortescue shares?
• Why are ASX 200 lithium shares taking another beating on Friday?
• 3 top ASX 200 dividend shares I think are bargain buys right now
• Carnage continues for Downer share price 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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Green energy is the future, fossil fuels are the past.

That’s the basis upon which Fortescue Metals Group Limited (ASX: FMG) has spent the past three years positioning itself as a leader in the global green energy revolution.

Fortescue began all this by forming a subsidiary business, Fortescue Future Industries (FFI), in 2020.

FFI is decarbonising the metals division while creating a whole new green energy business.

What’s green hydrogen got to do with it?

Green hydrogen is a primary focus of Fortescue Future Industries.

FFI CEO Mark Hutchinson said various estimates value green hydrogen as “a multi-trillion-dollar market”.

Fortescue’s first goal is to produce 15 million tonnes of green hydrogen annually by 2030.

It will achieve this through a series of partnerships, including a big one with E.ON, which is one of Europe’s largest energy network operators.

FFI and E.ON have signed a memorandum of understanding entailing FFI supplying up to five million tonnes of green hydrogen per annum to Europe by 2030. That’s a third of FFI’s targeted 2030 production.

We’ve done it before, we’ll do it again

Right now, it’s hard to quantify how the diversification of Fortescue from a pure-play iron ore miner to a global green energy and resources company will pay off in monetary terms.

For now, Forrest is asking shareholders to let history guide them.

At the recent annual general meeting (AGM), he reminded them of Fortescue’s humble beginnings 19 years ago when “the entire cash at [the] bank wouldn’t have covered one hour of today’s payroll”.

He said growing Fortescue Future Industries represented “going back to the beginning … back to the trenches shareholders, with a fighting spirit, right to where we started”.

He spoke of a “more profitable future” as a global green energy and resources company, while also “saving the planet for our kids” and no longer “cooking ourselves” through climate change.

At the AGM, Forrest said:

You would’ve remembered a little David in the Wilderness, armed with nothing more but courage, a giant sense of purpose, and perhaps a slingshot, when we had no ground, no capital … and no way of getting our products to market. Only 19 years ago.

We are now, probably the most respected iron ore producer in the world and the only industrial company to stop the greenwashing and just step beyond fossil fuels to save our kids.

When will Fortescue Future Industries start making money?

Hutchinson says he expects Fortescue Future Industries to achieve earnings in 2024 or 2025.

He adds: “The geopolitical environment will only serve to speed this up. Energy security is leading more and more countries to green energy solutions.”

Green hydrogen is produced using renewable electricity through electrolysis.

Fortescue is currently building the world’s largest electrolyser facility in Gladstone, Queensland. It’s called the Green Energy Manufacturing Centre (GEM). It is expected to produce its first electrolyser in 2023.

GEM will also manufacture wind turbines and solar panels.

Hutchinson said GEM will create “new revenue streams … and [deliver] significant returns for our shareholders”.

While building a brand new business division and decarbonising the metals business requires a major financial investment, Forrest also points out the cost savings that will be achieved over time.

He said: “Renewable energy is everywhere … it’s yours and ours and as your Fortescue adopts it, down comes your operating costs, up goes your margins …”.

He explained:

By 2030, our plan is to invest US$6.2 billion in decarbonising and future-proofing Fortescue. The investment will be highly positive for shareholders and displace the equivalent of 1 billion litres of diesel every year by 2030.

At market prices, we will save US$3 billion by 2030, so a net investment is only US$3.2 billion, and we continue to save over US$800 million a year, every year. If we’re not buying the filthy stuff.

If we continue to just buy oil and gas, our own modelling shows we will blow up $17 billion of your capital while busily destroying the planet for your children.

Forrest says “green energy will become cheaper than fossil fuel” which will lead to mass adoption of it as an energy source across a range of industries all over the world.

And Fortescue Future Industries wants to be well-established and ready to service that demand.

Writing in the FY22 annual report, Forrest said Fortescue’s new purpose is, “To lead the green energy revolution – and, once again, set a record-breaking industry benchmark in everything we do. We have already begun. We must become the Saudi Arabia, not of oil, but of green hydrogen.”

Shareholders seem to agree, with 100,000 ASX investors buying Fortescue shares since the formation of Fortescue Future Industries in 2020. That’s a 125% increase.

Will FFI drain Fortescue’s balance sheet?

Forrest reckons Fortescue has “one of the strongest balance sheets in the mining world”.

The capital allocation for Fortescue Future Industries is 10% of Fortescue’s net profit after tax (NPAT).

As my Fool colleague Tristan points out, FFI’s total expenditure in FY22 was US$534 million, including US$148 million in capital expenditure and US$386 million in operating expenditure.

Anticipated expenditure in FY23 is between US$600 million to US$700 million, including US$100 million of capital expenditure and US$500 million to US$600 million of operating expenditure.

At the AGM, Hutchinson said FFI’s project finance “will be separately secured through the substantial market demand for green investments”.

He explained:

There is considerable and growing international capital for green projects, with the world’s largest asset managers now firmly committed to funding the climate transition.

We are working closely with banks, multilaterals and export credit agencies, globally. They are actively seeking to invest and commit the capital required to scale green energy projects that will allow the world to meet its targets under the Paris Agreement.

The Fortescue share price is up 3.15% today to $21.46. It has gained 25% in value over the past month.

The post Will Fortescue’s green hydrogen plans really pay off for shareholders? appeared first on The Motley Fool Australia.

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More reading

• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Dividend darling becomes disappointment: What happened to Fortescue shares?
• Here are the top 10 ASX 200 shares today
• Why have 100,000 new investors been buying Fortescue shares over the past 3 years?

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

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Despite the tyranny of distance from the rest of the world, or perhaps because of it, Australia has produced its fair share of innovations.

There are, in fact, companies listed on the ASX right now that are working on sophisticated, market-leading technologies that could one day improve the lives of many around the world.

This week Wilson Asset Management analysts identify two such ASX shares that they recommend as a buy: 

Helping people heal from terrible injuries

ASX biotechnology shares have taken an absolute pummeling over the past 12 months.

But equities dealer Will Thompson is high on Aroa Biosurgery Ltd (ASX: ARX).

“Aroa develops, manufactures and distributes medical products,” he said in a WAM video.

“Their product is, with the fear of oversimplifying it, just a really high-quality Band-Aid, which you’d use if you were in a bad motorcycle crash and you lost quite a bit of skin.”

The concept itself is mature, but Aroa’s product is different from incumbents as it is made organically.

“Next year there’s a few regulation changes, which could really benefit it.”

In a horrible year for its peers, the Aroa share price is actually 7% higher than where it started 2022. The ASX share has rocketed up an eye-popping 44% since the start of October.

According to Thompson, Aroa has already put some runs on the board.

“It recently posted some storing sales numbers and actually showed that there’s some cash generation as well,” he said.

“Next year’s going to be a big year for them, so it’s a buy.”

Helping resist global warming

Because of the bearish nature of markets this year, new ASX listings were few and far between.

LGI Ltd (ASX: LGI), which floated in October, is a rare example of a 2022 debutant that isn’t in the resources sector.

Thompson explained that LGI is a gas abatement provider.

“Where all your rubbish and landfill goes, they take the methane out of that area,” he said.

“Methane’s 26 times worse for the environment than carbon dioxide. They turn that into energy, which they supply back into the market.”

Therefore the business takes in revenue from both power generation and carbon credits.

“They’re doing some really interesting investments where they think they can probably increase profitability by putting a battery in the system. So that’s where the capital’s going.”

The initial public offer saw IGL shares sold at $1.50 per share. The stock closed Thursday at $1.97.

The post Buy 2 ASX shares for cutting-edge tech changing the world: expert appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today
• Should you invest in small-cap ASX shares?
• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Beat the All Ordinaries with this unstoppable ASX dividend share

Motley Fool contributor Tony Yoo 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 has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Allkem Ltd (ASX: AKE)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this lithium miner’s shares with a buy rating and $15.20 price target. With the broker expecting lithium prices to fall materially in the coming years, it feels investors should be very selective with where they invest. It likes Allkem due to its attractive valuation at 1x NAV and its plan to grow production 4x by FY 2027. The Allkem share price is trading at $13.02 on Friday.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgans have initiated coverage on this airline operator’s shares with an add rating and $8.50 price target. Following Qantas’ latest update, the broker believes the discount being applied to its shares is unwarranted. Its analysts feel that solid value exists in Qantas’ shares given their expectation for further EBITDA growth over FY24/25 and pent-up travel demand underpinning a healthy demand environment for some time. The Qantas share price is fetching $6.21 this afternoon.

Rio Tinto Ltd (ASX: RIO)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this mining giant’s shares with an improved price target of $125.00. This follows an increase in spot commodity prices in recent weeks, which has led to an upgrade to its earnings estimates for the miner. The Rio Tinto share price is trading at $117.50 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Why are ASX 200 lithium shares taking another beating on Friday?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in Allkem. 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) is on course to end the week with a solid gain. At the time of writing, the benchmark index is up 0.5% to 7,210.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 18% to 59 cents. This follows the company’s strange decision to raise capital while it is the subject of a takeover approach. Bigtincan has raised $30 million from institutional investors at 60 cents per new share. SQN, which is aiming to acquire Bigtincan for 80 cents per share, described the decision as “value-destructive” for shareholders. Investors appear concerned it could now withdraw its offer.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 2.5% to $1.15. Investors have been selling this lithium developer’s shares this week after it was the subject of a bearish note out of Goldman Sachs. The broker initiated coverage on Core Lithium with a sell rating and $1.00 price target. Goldman is expecting lithium prices to tumble materially from the second half of next year.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price is down 4.5% to $8.38. This morning, this investment management company released an update on its performance fees. According to the release, for the 12 months ended 31 December, Pinnacle expects its net share of performance fees from affiliates to be potentially less than $1 million. This compares with $6.4 million for the corresponding period.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is down 2.5% to 29.75 cents. Investors have been selling this energy explorer’s shares after Beach Energy Ltd (ASX: BPT) withdrew from the race to acquire the company. This leaves Hancock Energy in pole position to complete the deal.

The post Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Why is ASX tech share Bigtincan crashing 20% on Friday?
• Why are ASX 200 lithium shares taking another beating on Friday?
• Warrego Energy share price slides as Hancock takeover offer trumps Beach
• Has the Core Lithium share price ‘run ahead of fundamentals’?

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 Bigtincan and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Bigtincan and Pinnacle Investment Management 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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Investing in small-cap ASX shares can increase the likelihood of realising greater returns. Conversely, snapping up smaller stocks can increase the risks involved in investing.

So, do small-cap ASX shares deserve a place in your portfolio? Well, I can’t speak for you. Personally, however, I would consider including a few small-caps in my holdings.

What is a small-cap?

Before we get too involved, let’s break down the definition of a small-cap.

As the name suggests, they are listed companies with smaller market capitalisations – often referred to a valuation – than the ASX’s giants.

As a rule of thumb, they have a market cap of a few hundred million to $2 billion. The S&P/Small Ordinaries Index (ASX: XSO) is often thought to be the benchmark index for small-caps.

As small-caps are small, they are also often growth shares. And therein lies the reason I would consider them for my portfolio.

Small caps can double as growth stocks

While S&P/ASX 200 Index (ASX: XJO) giants have plenty of cash and competitive advantages banked away to help them weather tough times, their potential growth is also generally limited.

Small-cap ASX shares, meanwhile, are often up-and-comers. That means investors can get in on quality companies before they make it big.

Many of the ASX’s biggest players were once tiny shares.

Fortescue Metals Group Limited (ASX: FMG) was just a penny stock in 2003, as my Fool colleague Sebastian reports. Today, it’s worth around $66 billion.

Though, not all small shares are future winners. Investing in small stocks can be riskier than investing in the big end of town, particularly as smaller companies may struggle more than their larger counterparts during hard times.

And, of course, picking future goliaths when they’re nothing but seedlings is notoriously difficult, but you’ve got to be in it to win it, in my opinion.

Beyond the growth potential on offer by small-cap ASX shares, I would consider a handful for diversification purposes.

Using small-cap ASX shares to diversify

Building a diverse portfolio can be key to navigating risk.

While risk is near-synonymous with investing, buying quality business in a variety of sectors – and sizes – can help protect one against single sector downturns and make the most of the good times.

That may mean a bit of stock picking. Though, I think the time and attention it takes to pick stocks I believe in is a small price to pay for a diverse portfolio.

However, if that were to sound like too much work, there are many ASX exchange-traded funds (ETFs) and index funds that provide exposure to many small-caps.

The post Should you invest in small-cap ASX shares? appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Beat the All Ordinaries with this unstoppable ASX dividend share
• Seeing stars: ASX 200 casino operator hit with another blow
• ASX lithium newcomer Patriot Battery Metals dumps 28% on third day of trade
• Why is ASX tech share Bigtincan crashing 20% on Friday?

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 S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is pushing higher. In afternoon trade, the benchmark index is up 0.4% to 7,203.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 2.5% to $1.69. Investors appear pleased that Beach has decided to withdraw from the race to acquire Warrego Energy Ltd (ASX: WGO). Beach will instead expand its current active exploration drilling program in the Perth Basin. It believes the bidding war demonstrates that the area is one of the most exciting gas plays in Australia.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 4% to $6.56. Investors have been buying this mineral exploration company’s shares this week following the release of promising drilling results from the Julimar Complex in Western Australia. Drilling at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation.

Nitro Software Ltd (ASX: NTO)

The Nitro Software share price is up 2.5% to $2.11. This morning the company revealed that Potentia has increased its takeover offer by 10% to $2.00 cash per share. However, this is still lower than where Nitro’s shares trade today. This could be a sign that investors expect a further bid to be made.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up almost 3% to $117.59. This follows another rise in the benchmark iron ore price overnight to beyond US$110 a tonne. Not even news that Morgans has downgraded this mining giant’s shares to a hold rating has been able to stop its ascent. Morgans said: “Despite stable fundamentals, reduced value upside leaves us neutral on the large iron ore miners.”

The post Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Warrego Energy share price slides as Hancock takeover offer trumps Beach
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Beating the All Ordinaries Index (ASX: XAO) is a hard ask for most investors. Index investing is a highly efficient process, and if an investor wants to beat the index, they need to have the right temperament, be patient, and of course, find the right individual shares.

So let’s talk about one ASX dividend share that I think can help any investor beat the All Ords.

It’s Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts is one of the oldest companies on the ASX. Its roots go back to pre-Federation days. But today, Soul Patts is a rather unique ASX share.

It is a conglomerate running a massive and diversified portfolio of investments, which includes large chunks of other top-quality ASX shares.

These include Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC). But Soul Patts doesn’t just own other ASX shares. It also has large stakes in unlisted assets. These include farms, swim centres, corporate credit and water rights.

An unstoppable All Ords dividend share?

Apart from this impressive diversification, there are two more reasons why I think Soul Patts has what it takes to be an unstoppable investment and crush the All Ordinaries Index going forward.

The first is its unrivalled dividend track record. Soul Patts is the only ASX dividend share that can boast a 21-year streak of raising its dividend payments.

Since 2003, this company has delivered an 8.5% per annum compounded annual growth rate for its shareholder payouts.

In 2003, the company gave its investors a total of 17 cents per share in dividend income. In 2022, that had grown to 72 cents per share. I see no reason this streak will end anytime soon.

The second is this company’s track record of destroying the All Ordinaries Index’s returns over decades.

In its recently-held 2022 annual general meeting, Soul Patts confirmed that its shares have delivered a total shareholder return (including capital gains and dividends) of 12.5% per annum over the past 20 years (to 20 November 2022).

That compares rather well against the All Ordinaries Accumulation Index, which averaged 9.1% per annum over the same period. Soul Patts told investors that its shares have given investors a cumulative return of 945% since 2002, more than double the All Ords’ 461%.

Here’s a look at the Soul Patts share price against the All Ords since the turn of the century:

So it’s Soul Patts’ diversified portfolio of investments, unbeatable dividend track record, and market-crushing performance over two decades that leads me to believe this ASX All Ordinaries share is an unstoppable market beater.

The post Beat the All Ordinaries with this unstoppable ASX dividend share appeared first on The Motley Fool Australia.

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More reading

• 3 high-yielding ASX dividend shares that have surged more than 50% this year
• 3 passive income ASX 200 dividend shares that can help make you richer
• 10 ASX shares to buy in 2023
• Here are the top 10 ASX 200 shares today
• Why Domino’s, New Hope, PolyNovo, and Telstra shares are pushing higher today

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended Tpg Telecom. 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 hits keep on coming for S&P/ASX 200 Index (ASX: XJO) casino operator Star Entertainment Group Ltd (ASX: SGR).

Star Entertainment shares went into a trading halt at the company’s request shortly after market open this morning.

The ASX 200 casino operator’s share price was up 0.6% for the day, at $2.55 per share when trading was paused.

Why is trading in the ASX 200 casino operator paused?

Star Entertainment requested the trading pause after the company was hit with yet another $100 million fine. This one coming from Queensland.

Star noted, “The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.”

Queensland’s Attorney-General and Justice Minister, Shannon Fentiman, announced the penalty today after Star’s operating practices in the state’s casino were deemed unsuitable.

The ASX 200 casino operator faces a 90-day licence suspension should it fail to improve its practices by 1 December next year.

“Essentially, this means that Star has 12 months to get their house in order if they do not want to see a 90-day suspension of their licence,” Fentiman said (quoted by News.com).

Star was found to have enabled gamblers who had been banned interstate to gamble in its casinos in Queensland. Concerns were also raised over deficiencies in the company’s anti-money laundering/counter-terrorism financing program.

According to Fentiman:

These penalties have been considered very carefully following the damning findings of the Gotterson Review as well as considering the responses by Star as part of the show cause process…

Like many Queenslanders, I was appalled at the extent of the actions of The Star in welcoming excluded persons to their casinos and the exorbitant incentives on offer for questionable gamblers.

Star Entertainment share price snapshot

The Star Entertainment share price, pictured below, has taken a beating this year, down 33% in 2022. That compares to a year-to-date loss of 5% posted by the ASX 200.

The post Seeing stars: ASX 200 casino operator hit with another blow appeared first on The Motley Fool Australia.

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More reading

• Why PolyNovo, Smartgroup, Star, and WiseTech shares are falling
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 shares that could be too cheap to ignore: fund manager

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 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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