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Does a 7% dividend yield sound pretty good to you? How about one with full franking? That would help gross this 7% yield up to a whopping 10%. With savings accounts and term deposits offering (at best) yields of around 4% right now, I’m sure it sounds pretty good. So time to check out the ASX 200 share with this yield on the table today.

It is none other than JB Hi-Fi Ltd (ASX: JBH). Chances are you’d know JB. It’s one of the most dominant ASX 200 retailers in the country, selling everything from vinyl records, games and movies to TVs, fridges, and washing machines.

So is this 7%-yielder really an ASX share to buy this December and hold for 10 years? Can we even expect a 7% yield going forward?

Let’s dig in.

So yes, JB is offering a 7% fully franked dividend yield today. That figure comes from JB’s last two dividend payments. Those consisted of the interim dividend from March, worth $1.63 a share. And the September final dividend of $1.53 per share. The 2022 total of $3.16 in dividends per share is an all-time record for JB Hi-Fi.

But JB’s current 7% yield is also made possible by this share’s anaemic performance over 2022 thus far. Year to date, JB shares have lost 7.35% of their value, as you can see below:

That’s a fall worth around twice that of the broader S&P/ASX 200 Index (ASX: XJO). As any good dividend investor knows, a falling share price boosts a company’s trailing dividend yield.

So let’s dig a little deeper into this dividend. Over FY2022, JB Hi-Fi made $4.795 in earnings per share (EPS) over this financial year. The company paid out $2.70 of those earnings per share as dividends per share.

That gives JB a dividend payout ratio of 56.3%. That isn’t high at ASX standards (the major ASX banks regularly break 80%). But it isn’t particularly low either.

That means that for this dividend to be sustainable going forward, JB needs to keep its pedals to the metal.

All signs show that this is likely, at least in the next year or two.

Is ASX 200 retailer JB a long-term winner?

For FY2022, JB reported that its sales were up 3.5% to $9.2 billion. It also reported a 7.7% rise in net profit after tax (NPAT) to $545 million. The EPS of $4.795 was an 8.8% rise over FY21’s $4.41.

Back in FY18, JB only had sales worth $6.9 billion, NPAT of $233 million, and EPS of $2.03. So this is clearly a company that knows how to grow.

In October this year, JB gave investors a peek into its numbers for FY2023 so far. And they were impressive.

Between 1 July and 20 September 2022, the company reported that sales in its Australian stores were 14.6% higher than for the same quarter last year. For its New Zealand stores, it was 27.7% and for The Good Guys, 12.3%.

Now, there’s no guarantee JB will continue to grow at the same rate as it has done over the next decade. This is a company that will certainly feel the effects of a recession — if the next decade does bring one. But it certainly has a lot of runs on the board.

As such, I would feel very comfortable buying this ASX 200 retail share this December and holding it in my portfolio over the long term. That dividend would be fine company too.

The post 7% dividend yield! One ASX 200 share to buy in December and hold for 10 years appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here’s why the Beach Energy share price is diving 6% on Tuesday
• What’s in store for the Woolworths share price in December?
• Is Core Lithium the hottest stock on the ASX 200 right now?
• The Sayona Mining share price went backwards in November. What now?

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 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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It’s been a disappointing Tuesday for the S&P/ASX 200 Index (ASX: XJO) so far this session. After reporting a nice gain yesterday, the ASX 200 has slipped today, with the index currently nursing a loss of 0.46%. That puts the ASX 200 at just over 7,290 points.

But let’s not dwell too long on those sobering numbers. It’s time now to take a look at the ASX 200 shares currently topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Core Lithium Ltd (ASX: CXO)

As we went through this morning, ASX 200 lithium share Core Lithium is never far from the ASX 200’s most traded shares. So far today, a hefty 16.09 million Core Lithium shares have found their way to a new home. There’s been no fresh news out of Core itself that could explain this volume.

So what we are seeing is probably a consequence of what the company’s shares are doing. Core Lithium has taken a bit of a beating today, with its share price currently down 1% at $1.297. It fell more than 4% during intraday trading.

As my Fool colleague Monica covered this afternoon, most ASX lithium shares are being put in the firing line amid rumours coming out of the Chinese market that lithium demand could be cooling.

South32 Ltd (ASX: S32)

ASX 200 resources share South32 is the next stock worth taking a gander at. So far this Tuesday, a notable 16.33 million South32 shares have trekked to a new owner. We haven’t had any new developments out of this company either.

So again, it seems some share price action is to thank for the high volumes we are seeing. South32 shares have been a bit bouncy today. The company initially plunged down to $4.19 a share this morning, but recovered briefly by rising as high as $4.36 this afternoon.

However, the shares are presently trending lower again, and are going for $4.325 each at the time of writing.

Pilbar Minerals Ltd (ASX: PLS)

Another ASX 200 lithium stock in Pilbara Minerals is our final share of the day this Tuesday. At this point, a sizeable 26.42 million Pilbara shares have been bought and sold on the ASX today. Like South32, Pilbara’s shares have also been volatile.

The company has shuttled between $4.42 and $4.62 a share today with the share price currently just below the breakeven line at $4.605, down 0.11% for the day. This is the likely explanation for the elevated trading volumes on display.

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

• Here’s why the Beach Energy share price is diving 6% on Tuesday
• Why are ASX 200 lithium shares taking a lashing today?
• What’s in store for the Woolworths share price in December?
• Is Core Lithium the hottest stock on the ASX 200 right now?
• The Sayona Mining share price went backwards in November. What now?

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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Eagle-eyed market watchers have likely noticed the Bellevue Gold Ltd (ASX: BGL) share price’s sluggishness on Tuesday. The stock hasn’t gone anywhere today, and there’s a good reason why.

The S&P/ASX 300 Index (ASX: XKO) gold explorer entered a trading halt this morning as it undergoes a capital raise. It has also provided an update on its namesake project’s development.

The Bellevue Gold share price closed at $1.21 on Monday. And there it’s expected to stay until Thursday’s open.

Let’s take a closer look at what’s going on with the ASX gold stock today.

Bellevue stock halted amid capital raise

The Bellevue Gold share price is on ice today as the company undertakes a $60 million placement.

New shares in the gold developer are being offered for $1.05 apiece under the placement ­– a 13.2% discount to the stock’s previous close.

The company will also offer eligible shareholders the option to snap up new shares for the placement price under a $10 million share purchase plan (SPP). The SPP is expected to open next Wednesday.

The funds raised will go towards the Bellevue Gold Project’s underground development and additional exploration. It will also provide more financial flexibility during project construction and ramp-up.

Bellevue managing director Steve Parsons says “every aspect of the project is going to plan or better”, continuing:

Development rates, grade control drilling results, and exploration are all exceeding our expectations.

The success is providing us with an opportunity to unlock the value of the project sooner and to a greater extent than originally planned.

The project’s first production is targeted for the second half of 2023, with ramp-up expected two months later.

Construction activities are well advanced and mining development is ahead of schedule. Approvals and permitting remain on track, with the company expecting pre-commercial production costs to come in at around $219 million.

Bellevue share price snapshot

The Bellevue Gold share price has been on a run lately. It’s soared 53% over the last 30 days to sit 42% higher than it was at the start of 2022. It has also gained 53% since this time last year.

For comparison, the S&P/ASX All Ords Gold Index (ASX: XGD) has gained 16% in the last month. Though, it has fallen 9% year to date and 3% over the last 12 months.    

The post Why is the Bellevue Gold share price on ice 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 Tuesday
• Here’s why the Beach Energy share price is diving 6% on Tuesday
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• ASX 200 slips as RBA lifts interest rates for the eighth month running
• Morgans names 2 more of the best ASX shares to buy in December

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 Beach Energy Ltd (ASX: BPT) share price is in the red today.

Beach shares are currently down 4.49% at $1.81 a share, after recovering from a 6.59% fall earlier today. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.33% at the time of writing.

Let’s take a look at what is impacting the Beach Energy share price today.

What is going on?

Beach shares are falling more than other ASX oil and gas producers today. At present, Woodside Energy Group Ltd (ASX: WDS) is up 0.3% while Santos Ltd (ASX: STO) shares are down 1.29%.

Oil prices fell more than 3% overnight, as my Foolish colleague James reported this morning. However, WTI crude oil is now trading 0.9% higher at US$77.62 a barrel, while Brent Crude oil is also up 0.87% to US$83.40 a barrel, according to Bloomberg.

There has been some news impacting a key contractor for a Beach Energy gas project today. Clough Limited has been placed into voluntary administration with Deloitte as the administrator.

Clough is the engineering, procurement, and construction contractor for the Waitsia stage two project, a joint venture between Beach and Mitsui & Co Ltd, north of Perth.

Commenting on the news in a statement today, Beach said:

Beach and Mitsui E&P Australia (Mitsui), its joint venture partner and Waitsia operator, will work closely with the administrator, contractors, and stakeholders to ensure continued progress of the 250 TJ/day Waitsia Stage 2 gas plant.

Beach has been working with Mitsui in planning for various outcomes and will continue to work to deliver the best outcome for the project.

Meanwhile, Mitsui said it is too “early to speculate” on the impact on project. In a statement cited by Reuters, Mitsui said:

Given that an administrator has only just been appointed for Clough, it would be premature to speculate on the precise impacts for the Waitsia Gas Project Stage 2.

Share price snapshot

Beach Energy shares have soared nearly 53% in the past year, while they have gone up 42% in the year to date.

For perspective, the benchmark ASX 200 index has climbed 1% in a year.

Beach has a market capitalisation of more than $4 billion based on the current share price.

The post Here’s why the Beach Energy share price is diving 6% on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Block, Magellan, and St Barbara shares are dropping
• What’s in store for the Woolworths share price in December?
• Is Core Lithium the hottest stock on the ASX 200 right now?
• The Sayona Mining share price went backwards in November. What now?
• 2 ASX 200 directors buying and selling their company shares in the past week

Motley Fool contributor Monica O’Shea 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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1) It continues to be a tough old grind for those – like myself – who are not invested in the resources sector. 

Fund manager reports for November are just coming out, with QVG Capital saying the Small Resources Sector was up 11.6% in the month.

“With limited exposure to Resources, we did not keep up with the benchmark.”

Rather than jump into a resources sector which they say “usually lacks the earnings certainty of through-the-cycle return on invested capital (ROIC) we desire,” QVG Capital is sticking with industrials such as fast growing Johns Lyng Group Ltd (ASX: JLG) and even faster growing Lovisa Holdings Ltd (ASX: LOV).

Although not traditionally cheap – fast fashion jewellery retailer Lovisa shares trade at around 40 times earnings –  with sales up 60% for the first 19 weeks of FY23, it won’t take too long for the company to grow into its premium valuation.

As QVG Capital reminds us, over longer timeframes, share prices follow earnings. If Lovisa can keep up its breakneck global store opening pace in conjunction with double digit comparable store sales, the future looks bright.

2) Put simply, equity markets are facing two major headwinds…

1. Higher interest rates.
2. Slower economic growth. 

The Reserve Bank of Australia (RBA) today raised interest rates by another 25 basis points, bringing the cash rate to 3.1%. 

Whilst this inflicts more pain on variable-rate mortgage holders, long-suffering savers are finally able to earn a decent return on their cash balance, with some savings accounts paying close to 4%.

A no-risk 4% compares pretty well to the 3.6% fully franked dividend yield on offer for Commonwealth Bank of Australia (ASX: CBA) shares, and very well to the 2.7% fully franked dividend yield on offer for Woolworths Group Ltd (ASX: WOW) shares. Given those two companies are both growing slowly and trading on premium valuations, given the choice, I’d happily park my cash in the bank.

No wonder industrial sector equities are on struggle-street.

3) The economy is not the stock market, and so although 2023 is likely to see slower or even negative growth for some companies, shares could perform well.

In a recent article on Livewire titled “Why 2023 could be the biggest buying opportunity since the GFC,” J.P. Morgan Asset Management’s global team believes “2023 will see the traditional 60/40 portfolio record its best year since 2010. In their view, average forecast returns for both equities and bonds will continue to climb even if a global recession hits.”

The team is tipping both developed and emerging market equities to rebound, and although the S&P/ASX 200 Index (ASX: XJO) has outperformed its developed market peers, they are projecting it to return 7%+ per annum over the next 10-15 years.

In a world fixated on the next monthly move by the RBA or the next inflation print or the next jobs report, you’ve got to love their long-term perspective. 

A 7% per annum return compounded over 10 years will roughly double your money. Not exciting like the tech-stock boom (RIP) some of us recently enjoyed, but very good, especially when compared to just about every other asset. Can you imagine your $1 million investment property doubling in value by 2032? It would require someone taking on an astronomical monthly repayment to take that property of your hands. 

No wonder property prices are falling.

4) So which stocks will be beneficiaries in 2023?

If only we knew. The J.P. Morgan boffins referenced above have a preference for defensive sectors, including healthcare and banking stocks.

I’m happy to pass on bank shares. 

Quality large-cap ASX 200 healthcare stocks like CSL Limited (ASX: CSL), Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH) all trade on nose-bleed valuations. I’ll pass on them too, thank you very much.

No wonder stock picking is hard.

5) One sector that is cheap is energy, despite many shares having already had a great run so far this year.

Interviewed in the AFR, SG Hiscock portfolio manager Hamish Tadgell says his fund is positioned for higher inflation and the energy transition, with a top three holding being Woodside Energy Group Ltd (ASX: WDS) shares.

The Woodside share price has already gained more than 60% so far in 2022, but Tagell’s still a fan, saying in terms of balance sheet, “it’s got good growth options through Scarborough and the West Australian developments it’s looking at. And that’s in a world where I think there’s clearly an increased demand for gas.” 

Woodside shares trade at just eight times trailing earnings. Add in a trailing 9% fully franked dividend yield and you can see the attraction. 

The post 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap appeared first on The Motley Fool Australia.

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More reading

• What’s in store for the Woolworths share price in December?
• Is Core Lithium the hottest stock on the ASX 200 right now?
• Buy Xero and this ASX growth share for 2023: analysts
• Is the CSL share price set to take off in December?
• Leading brokers name 3 ASX shares to buy today

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 positions in and has recommended CSL, Cochlear, Johns Lyng Group, and Lovisa. The Motley Fool Australia has recommended Cochlear, Johns Lyng Group, Lovisa, and Ramsay Health Care. 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) was down 0.6% in early morning trade before recouping most of those losses to be trading down a slender 0.1% at 2:30pm AEDT.

The ASX 200 had marched higher during the course of the day despite a steep drop in US stock markets overnight.

At 2:30pm, the Reserve Bank of Australia (RBA) released its interest rate decision.

The RBA announced a 0.25% hike in interest rates, bringing the official cash rate to 3.10%. This was broadly in line with expectations, though some analysts had been tipping a more dovish stance in the face of softening inflation.

Atop today’s cash rate hike, the RBA board also increased the interest rate on Exchange Settlement balances by another 0.25%, taking that to 3.00%.

Investors reacted by sending the ASX 200 down to a 0.3% intraday loss in the minutes following the release of the decision.

December now marks the eighth consecutive month of interest rate hikes from the central bank.

It may be hard to believe, but 3 May marked the first rate increase of this tightening cycle. Seven months ago, the official cash rate stood at 0.10%. And it was the first time the RBA had raised rates since November 2010.

What did the RBA report on today’s interest rate increase?

Explaining the bank’s decision to tighten yet again, RBA governor Philip Lowe pointed out that inflation in Australia “is too high”.

Inflation through the year to October has been running at 6.9%.

Lowe said much of this is due to global factors.

However, he added, “Strong domestic demand relative to the ability of the economy to meet that demand is also playing a role. Returning inflation to target requires a more sustainable balance between demand and supply.”

And inflation figures for the full year are expected to come in still higher, likely pressuring the ASX 200 today.

According to Lowe:

A further increase in inflation is expected over the months ahead, with inflation forecast to peak at around 8% over the year to the December quarter. Inflation is then expected to decline next year.

The RBA forecasts that CPI inflation will slow “over the next couple of years”. In 2024 it expects CPI inflation will be “a little above 3%”.

As for the Aussie economy, Lowe noted it’s still growing solidly, which is broadly good news for ASX 200 shares.

But the RBA expects growth to moderate in 2023 “as the global economy slows, the bounce-back in spending on services runs its course, and growth in household consumption slows due to tighter financial conditions”.

The RBA is forecasting growth of around 1.5% in both 2023 and 2024.

The central bank also noted that the labour market “remains very tight”. The unemployment rate in October fell to 3.4%, the lowest level since 1974. That’s seen wages growth “continuing to pick up from the low rates of recent years”.

Hoping to avoid a “prices-wages spiral”, the RBA does expect wages to continue rising.

Lowe stressed that “The Board’s priority is to re-establish low inflation and return inflation to the 2–3% over time.”

Perhaps also giving ASX 200 investors the jitters was Lowe’s admission that “the path to achieving the needed decline in inflation and achieving a soft landing for the economy remains a narrow one”.

What can ASX 200 investors expect next

ASX 200 investors should take note that the RBA “expects to increase interest rates further over the period ahead”.

However, Lowe said this “is not on a pre-set course” as the bank monitors the range of forces impacting inflation Down Under.

“The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that,” Lowe concluded.

The post ASX 200 slips as RBA lifts interest rates for the eighth month running appeared first on The Motley Fool Australia.

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More reading

• Morgans names 2 more of the best ASX shares to buy in December
• Qantas share price takes off despite ACCC warning
• Why I think this ASX 200 share is high-risk, but also high-reward
• Why Domino’s, New Hope, PolyNovo, and Telstra shares are pushing higher today
• Why are ASX 200 lithium shares taking a lashing 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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The team at Morgans has been busy picking out its best ASX share ideas for December.

These are the shares that its analysts think offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The first two shares we looked at can be found here. Read on for the next two:

ResMed Inc (ASX: RMD)

This sleep treatment focused medical device company has been named as one of Morgans’ best ideas.

Morgans likes ResMed largely due to its strong position in digital health. It is expecting the company’s portfolio of cloud-connected products to be a key driver of growth in the future. The broker explained:

While we expect the next few quarters to be volatile as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans currently has an add rating and $37.00 price target on ResMed’s shares.

Westpac Banking Corp (ASX: WBC)

If you’re looking for banking sector exposure then Morgans thinks that Westpac could be the way to do it.

The broker believes that Australia’s oldest bank is well-placed to deliver the strongest return on equity improvement thanks partly to its major cost cutting plans. Its analysts expect this to support attractive dividend yields. It commented:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Morgans has an add rating and $25.80 price target on the bank’s shares.

The post Morgans names 2 more of the best ASX shares to buy in December appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Will the RBA raise rates again next week? Here’s what Westpac expects
• Buy Westpac and this ASX dividend share: broker
• Why did the Westpac share price lag the ASX 200 in November?
• The 3 best-performing ASX 200 bank shares in November revealed

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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The Qantas Airways Limited (ASX: QAN) share price is in the green this afternoon amid the competition watchdog’s warning to Aussie airlines.

On announcing that the price of discounted economy airfares hit a 15-year high in September, the Australian Competition & Consumer Commission (ACCC) warned airlines it will be watching to ensure they don’t withhold capacity in a bid to keep revenues high.

The news might have turned the market’s attention to the Qantas share price today. Right now, the airline’s stock is swapping hands for $6.21, 0.32% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.15% at the time of writing.

Let’s take a closer look at the news that might have put the national airline in the spotlight on Tuesday.

ACCC vows to keep an eye on Aussie airlines

The Qantas share price is lifting off amid news demand for air travel soared last quarter.

The latest ACCC Airline Competition in Australia report found domestic airfares surged beyond pre-pandemic levels in that period. The average revenue per passenger came in 27% higher in October 2022 than in October 2019.

Airfares were buoyed by strong demand amid constrained supply brought about by high jet fuel costs and operational challenges, ACCC commissioner Anna Brakey said.

The segment impacted the greatest was discounted economy fares. The watchdog noted that strong demand meant airlines didn’t need to offer discounts to fill planes.

Indeed, an index of discounted economy fares across Australia’s top 70 domestic routes in November 2022 came in at more than double April’s 11-year low. The same index hit a 15-year high in September.

The findings lead Brakey to warn airlines that the watchdog will be keeping an eye on them:

Historic lows and highs for discount airfares in the same year illustrate how changeable this market has been as the industry recovers from the pandemic.

We accept that the airlines are still experiencing some pandemic-related resource challenges, but the ACCC will be monitoring them closely to ensure they return capacity to the market in a timely manner to start easing pressure on airfares.

We would be concerned if airlines withheld capacity to keep airfares high.

Qantas tied with Regional Express Holdings Ltd (ASX: REX) in cancelling the fewest flights in October, just 2.2%. The flying kangaroo also boasted the best on-time performance, with 25.8% of its flights landing late – compared to the industry total of 30.7%.

Its budget leg, Jetstar, however, posted the worst performance in both measures. It cancelled 8.8% of flights while 35.6% arrived late.

Qantas share price snapshot

Recent news Qantas expects to post an underlying pre-tax profit of $1.35 billion to $1.45 billion for the current half bolstered its share price late last month.

The stock is now trading for 20% more than it was at the start of 2022. It has also gained 24% since this time last year.

Comparatively, the ASX 200 is down 4% year to date but up 1% over the last 12 months.

The post Qantas share price takes off despite ACCC warning appeared first on The Motley Fool Australia.

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

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When it comes to investing, it’s important to invest in ASX shares that meet your risk profile.

As well as making sure you sleep soundly each night, doing so means that you’re not putting your financial well-being at risk.

Generally speaking, your risk profile lowers as you age. When you first start out investing, you might be able to put some of your funds in high-risk shares because if you get burned, you’ve got plenty of time to try to recover your losses. However, when you’re nearing retirement, I don’t believe it is wise to risk your nest egg in a meme stock like Brainchip Holdings Ltd (ASX: BRN) for example.

But that doesn’t necessarily mean you should just only buy high-risk ASX shares when you’re young.

I would suggest you build a balanced portfolio filled with high-quality, blue chip shares and dedicate a smaller portion of it to higher-risk options.

How do you decide which high-risk ASX share to buy?

Investors should look to identify high-risk shares that have high-reward potential.

After all, there’s no point investing in an ASX share if you stand to gain 10% but risk losing 50%. You might find better odds at a casino!

With that in mind, I would avoid companies that have unproven business models and limited revenue, such as the aforementioned Brainchip. Particularly if they operate in industries dominated by multinational giants. This puts the odds firmly against them succeeding and you could end up losing most, or even all, of your investment.

Instead, I would look for companies that are generating meaningful revenue and growing it each year.

My high risk/high reward pick

One high-risk ASX share that ticks the box for me is Megaport Ltd (ASX: MP1). It is a leading provider of cloud connectivity and networking solutions across data centres globally.

Megaport’s software layer provides users with an easy way to create and manage network connections. Through its network, businesses can then deploy private point-to-point connectivity between any of the locations on Megaport’s global network infrastructure.

Thanks to the cloud computing boom, this is proving to be very popular with end users and has underpinned solid revenue growth in recent years. For example, during the first quarter of FY 2023, Megaport reported revenue of US$23 million. This was up 5% from the fourth quarter and annualises to US$93 million.

But the good news is that this revenue is nothing in comparison to its total addressable market (TAM).

Goldman Sachs has previously stated that Megaport’s “opportunity for further growth is immense (GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies)”. This is being driven by “two structural tailwinds that accelerated through COVID-19, including: (1) The adoption of public cloud & multi-cloud usage; and (2) The growth in Networking as a Service (NaaS)”.

And thanks to its first-mover advantage in the industry, Goldman believes it is well-placed to capture a big slice of this huge market. In the near term, its analysts are forecasting the following:

Year	FY 2023	FY 2024	FY 2025
Revenue ($m)	A$151.1	A$203.8	$264.5

[Goldman Sachs estimates]

Major upside potential

In light of this, it will come as no surprise to learn that its analysts currently rate Megaport’s shares as a buy with a $9.50 price target.

Based on the current Megaport share price of $6.70, this implies a potential upside of approximately 42% for investors over the next 12 months.

I think this makes it a top high-risk/high-reward share for investors to consider today if their risk profile allows it.

The post Why I think this ASX 200 share is high-risk, but also high-reward appeared first on The Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) is out of form on Thursday. In afternoon trade, the benchmark index is down 0.1% to 7,318.3 points.

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

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 2% to $68.35. This morning analysts at Morgans reiterated their add rating with an improved price target of $90.00. It said: “Recent positive share price movements in the global QSR sector, combined with the accretive impact of the [German joint venture] transaction, result in our target price increasing from $88 to $90. We retain an ADD rating.”

New Hope Corporation Limited (ASX: NHC)

The New Hope share price is up 2% to $5.77. Investors have been buying New Hope and other coal miner shares on Tuesday. They appear to be betting on coal prices remaining higher for longer, which is likely to underpin bumper profits and dividends in the near term.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up over 1.5% to $1.96. This appears to have been driven by a bullish broker note out of Macquarie. According to the note, the broker has retained its outperform rating and lifted its price target on the medical device company’s shares to $2.30. Macquarie believes PolyNovo is well-placed for growth following its recent capital raising.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is up 1.5% to $4.07. This is despite there being no news out of the telco giant. However, it is worth noting that Morgan Stanley spoke positively about the company on Monday. According to the note, the broker has retained its overweight rating and lifted its price target to $4.75. Morgan Stanley suspects that a major share buyback could be undertaken if Telstra’s restructure leads to assets being sold off.

The post Why Domino’s, New Hope, PolyNovo, and Telstra shares are pushing higher today appeared first on The Motley Fool Australia.

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More reading

• Where will Telstra shares be in 5 years?
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
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• Buy Telstra and this ASX dividend share: experts

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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