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A brand new ASX lithium share is due to hit ASX boards very soon.

Patriot Battery Metals Inc is due to trade on the ASX next week under the ticker PMT.

The company is led by CEO Blair Way, an experienced international executive. Former Pilbara Minerals CEO Ken Brinsden is the non-executive chairman and a director of Patriot Battery Metals.

Patriot is already listed overseas in Canada on the TSX Venture Exchange as (TSX-V: PMET). Patriot shares soared 8.81% to CAD $8.15 overnight. The company also has two further listings: (OTCQB: PMETF) and (FSE: R9GA).

Lithium explorer

Patriot Battery Metals is exploring the 100% owned Corvette Property in the James Bay region of Quebec.

Corvette says this land hosts “significant lithium potential”. Six distinct clusters of lithium pegmatite have been discovered at the property to date.

Earlier this month, Patriot advised the first hole of the 2022 drill program was completed on 24 October. Another drill program will start in early January 2023. Drill rigs are already at the site.

Patriot also owns the Freeman Creek Gold Property in Idaho, USA. This is said to host two prospective gold prospects.

Other assets include the Pontax Lithium-Gold property and a 40% stake in the Hidden Lake Lithium Property.

Brinsden joined the Patriot team in August. He said:

There is so much to like about the Corvette property, with work to-date demonstrating both local and regional potential for a large-scale project ideally placed within the emerging Nth American lithium raw materials supply chain.

Initial Public Offering

Patriot advised yesterday it has completed an initial public offering on the ASX of 7,000,000 CHESS Depository Interests priced at 60 cents per share. This has raised $4.2 million. The company said it has received approval, subject to usual conditions, to list on the ASX.

The company said:

Patriot is working with ASX to meet the listing conditions and it is expected that trading in Patriot’s CDIs (assigned a code of “PMT”) on the ASX will commence on a normal settlement basis on December 7, 2022.

Patriot is expecting to receive and analyse assay results from its exploration projects after the ASX listing. The company plans to make further announcements in the coming weeks.

The post New ASX lithium share chaired by ex-Pilbara Minerals boss to debut next week appeared first on The Motley Fool Australia.

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More reading

• These 3 ASX 200 dividend shares led the pack in November. Here’s why
• Why CSL shares are this fundie’s top ASX 200 healthcare pick
• Could our dividends now be too reliant on ASX 200 oil shares?
• Why did the Flight Centre share price take a flogging in November?
• Is this a red flag for Wesfarmers shares?

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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S&P/ASX 200 Index (ASX: XJO) dividend shares have been drawing increasing investor interest this year.

With inflation and interest rates on the rise, more investors are after quality income stocks.

The Holy Grail for any dividend stock is not only one that pays a reliable dividend, but also one that offers share price growth.

Below, we look at three stocks that more than fit that bill in November.

Copper and gold shining bright

Kicking off the list is Evolution Mining Ltd (ASX: EVN).

Evolution pays a 2.2% yield, fully franked, and the ASX 200 dividend share gained 29.3% in November.

Evolution enjoyed some solid tailwinds over the month from rebounding gold and copper prices, two of its primary focuses.

The miner trended higher throughout the month and received another big leg up on 24 November. That’s when it reported intersecting â€œsignificant new copper-gold extensions” at its wholly owned Ernest Henry mine, located in Queensland.

This ASX 200 dividend share leapt 36% higher last month

Next up is Canadian iron ore miner Champion Iron Ltd (ASX: CIA).

Champion Iron has a current market cap of $3.3 billion and pays a trailing dividend yield of 3.5%, unfranked.

The ASX 200 dividend share rocketed 35.9% in November without releasing any price-sensitive news. Its stellar performance looks to have been driven by a big increase in the iron ore price.

The industrial metal was trading for approximately US$81 per tonne on 1 November and closed the month at US$103 per tonne.

Which brings us to…

November’s best-performing ASX 200 dividend share

The best share price gains by any ASX 200 income stock in November were delivered by Origin Energy Ltd (ASX: ORG).

The energy stock pays a 3.7%, partly franked trailing yield and gained a whopping 41.1% over the month.

Origin got a huge boost on 10 November, when the company announced it had received an indicative, conditional, and non-binding proposal from Brookfield Asset Management and MidOcean Energy.

The acquisition proposal valued Origin at $9.00 per share, to be paid in cash. That was 54.9% higher than the Origin share price on 10 November, which saw the ASX 200 dividend share close 34.8% higher on the day.

The post These 3 ASX 200 dividend shares led the pack in November. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Why did the Origin share price rocket 41% in November?
• Here are the top 10 ASX 200 shares today
• Why Appen, Evolution Mining, Rio Tinto, and Xero shares are racing higher
• These were the best performing ASX 200 shares in November
• 5 things to watch on the ASX 200 on Thursday

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 CSL Limited (ASX: CSL) share price has closed above the $300 threshold all week, and today it’s currently trading at $302.17, up 1.2% for the day so far.

Meantime the S&P/ASX 200 Index (ASX: XJO) is down 0.65%.

In an interview with Livewire this week, Wilson Asset Management equity analyst Anna Milne said CSL was her top ASX healthcare share pick for 2023.

Why this expert backs CSL ahead of other ASX 200 options

Milne joins a bunch of other brokers who are also tipping CSL shares for growth next year.

When asked about her top healthcare stock pick for 2023, Milne said:

I know it probably feels like a consensus call but it’s got to be CSL.

Earnings are set to grow almost 30% next year, 15% the year after that and 10% in FY 2025 and beyond.

Seqirus is also set up for a strong year from flu season, and Vifor is a compelling medium-term growth lever. It’s a stock that’s hard to fault.

Who else is tipping growth for the CSL share price in 2023?

Wilsons is tipping a 12-month share price target of $327 for CSL shares and has an overweight rating.

As my colleague James reports, Citi has reaffirmed its buy rating with a share price target of $340. Macquarie retains its outperform rating but recently upped its price target by 4.1% to $343.

Tribeca portfolio manager Jun Bei Liu says CSL shares are among the best ASX shares to buy and hold for several years. Liu says: “Even if we have a US recession or a global recession, it’s not going to slow down. It will grow double digits for the next three years.”

Blake Henricks, portfolio manager at Firetrail Investments, said CSL is a defensive share that can ride out any future market volatility. He says: “It’s large, it’s liquid, it’s healthcare. So to me, it ticks all the defensive boxes. It’s in a defensive growth category.”

What’s been happening with CSL lately?

The big news of late has been the approval of CSL’s unique haemophilia B treatment, called Hemgenix, by the United States Food and Drug Administration.

This drug is a big deal because it’s the first and only one-time gene therapy to become available for adults with haemophilia B. A commercial launch is expected in FY24.

According to the Australian Financial Review (AFR), Hemgenix will be priced at US$3.5 million per dose.

Um, what?

Yes, indeed. It will be the world’s most expensive drug, according to the article.

Of course, this isn’t the price that US patients will pay. It’s what health insurers and government programs like Medicare will pay in exchange for the greater cost savings the treatment will deliver to them.

CSL head of research and development Bill Mezzanotte told the AFR the cost to CSL of bringing Hemgenix to market after more than 10 years in development was more than $US1 billion.

He also argues the enormous value to the healthcare system given the patient population size and the long-term efficacy of a single dose, which will replace multiple doses of other drugs per patient, per week.

Dr Mezzanotte said:

You can’t even measure the difference in a person’s life taking one treatment and not need to think about it for at least 10 to 20 years [versus multiple times a week].

It’s not just their convenience, it’s their sense of mental security, and of course, it saves the healthcare system a lot of money in both the cost of therapy, rescue therapies, the cost of treating a bleed and also the lost productivity of these patients.

According to the article, a 2021 study published in the Journal of Medical Economics found it cost the healthcare system more than US$20 million to treat a moderate to severe haemophilia B patient over their lifetime.

CSL share price snapshot

CSL shares crossed the $300 mark for only the third time in 2022 last week.

Immediately before COVID-19 hit the Australian share market, the CSL share price was about $340.

The post Why CSL shares are this fundie’s top ASX 200 healthcare pick appeared first on The Motley Fool Australia.

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More reading

• Why did the CSL share price leap 7% in November?
• ‘Buy it for 5 years’: Jun Bei Liu’s 3 best ASX shares for 2023
• ‘Back a winner’: Expert names his 3 best ASX shares for 2023
• 2 high quality blue chip ASX 200 shares named as buys by analysts
• CSL share price ‘ticks all the defensive boxes’: fundie

Motley Fool contributor Bronwyn Allen has positions in Csl. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Csl. 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 has been a winner from the global energy shortage, it would have to be oil shares. Energy elites of the S&P/ASX 200 Index (ASX: XJO) have enjoyed enormous profits as conflicts crimp the supply of the commodity.

For shareholders, it has meant a plentiful year for dividends. According to Janus Henderson’s latest Global Dividend Index report, the recent third quarter was a record for global payouts — rising 7% to $415.9 billion thanks largely to oil producers.

However, it begs the question: could the delectable dividends that are being injected into Australian portfolios from oil, gas, and energy companies pose a risk to future income? After all, the commoditised sector is known for its cyclical habits.

How much of ASX 200 dividends are from oil and gas?

In the third quarter of the calendar year, oil producer dividends surged 75% to a record $46.4 billion globally. This was a byproduct of elevated oil prices compared to the prior corresponding period, as shown below.

Locally, our biggest energy company increased its interim dividend by nearly four-fold to US$1.09 per share amid the amplified prices. As a result, Woodside Energy Group Ltd (ASX: WDS) became one of the top five dividend-payers on the ASX.

Sourcing data from S&P Market Intelligence, oil and gas companies constituted approximately 8% of the total $28.45 billion in Aussie payouts in Q3, the majority of which was delivered by Woodside.

The energy sector’s contribution was bolstered by large cash drops from the likes of Santos Ltd (ASX: STO), APA Group (ASX: APA), and Ampol Ltd (ASX: ALD). In total, oil and gas companies served up more than $2.2 billion in divvies to shareholders.

Notably, one in five Australian companies sliced their dividends in the third quarter. Comparatively, only one in ten companies globally reduced their payouts.

Is it too much?

Many investors rely on the dividends from the ASX 200 via index-tracking passive exchange-traded funds (ETF). Any material changes to large contributors to the index could impact future income. So, could oil and gas payouts put a dent in your next payday?

The short answer is yes, but the more nuanced answer is: it depends… At around 8% of total ASX 200 dividends, oil and gas companies are far from the most important sector when it comes to income.

Instead, banks and mining companies are responsible for the majority of income generated by an investment in the index. At least that was the case in the third quarter.

According to S&P Global, banks made up roughly 21% of payouts. Meanwhile, mining companies took the number one spot in Q3 with 45% of all dividends delivered.

It would seem the risk of falling oil and gas dividends pose a minor risk to the total ASX 200 yield. The benchmark index remains heavily exposed to other areas of the market.

The post Could our dividends now be too reliant on ASX 200 oil shares? appeared first on The Motley Fool Australia.

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More reading

• Why did the Flight Centre share price take a flogging in November?
• Is this a red flag for Wesfarmers shares?
• 10 ASX dividend shares paying more than 10% yield right now
• The pessimists were wrong. Again.
• Should you buy yourself Webjet shares for Christmas?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price underperformed the S&P/ASX 200 Index (ASX: XJO) by around 10% over the course of November.

After closing October at $16.65, stock in the travel agent crumbled to finish November trading for $16.06. That leaves the Flight Centre share price having fallen 3.54% over the 30-day window.

For comparison, the ASX 200 rose 6.13% to end November at a then-six-month high of 7,284.2 points. Meanwhile, the company’s home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ), gained 1.33% last month.

So, what went wrong for the Flight Centre share price in November? Let’s take a look.

What weighed on the Flight Centre share price last month?

There was only one day of price-sensitive news weighing on the ASX travel share last month.

That came on the back of the company’s annual general meeting (AGM), where management provided a trading update for the first four months of financial year 2023.

Its total transaction value lifted 246% on that of the corresponding period to $6.8 billion, while its revenue rose 248% to $667 million. Its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) also increased to $61 million, while its underlying pre-tax profit was in the green.

However, the company’s revenue margin remained at 9.8% amid reduced front-end commission payments from certain airlines, my Fool colleague James reports.

The travel agent expects its first-half underlying EBITDA to come in at $70 million to $90 million.

Sadly, the market bid the Flight Centre share price 3.76% lower on the back of its AGM and trading update.

Following the release, Goldman Sachs tipped the company’s profits to recovery strongly later this financial year and next. The broker said Flight Centre’s revenue margin “remains a key concern”.

Right now, the stock is 14% lower than it was at the start of 2022. It has also fallen 8% since this time last year.

For comparison, the ASX 200 has fallen 4% this year and has gained 1% since this time last year.

The post Why did the Flight Centre share price take a flogging in November? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• The Flight Centre share price has collapsed 20% in the last 6 months, but have the fundamentals improved?
• 5 ASX 200 shares with founders steering the ship
• Macquarie is cooling off on its outlook for BHP shares. Should you?
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Wesfarmers Ltd (ASX: WES) shares are down 0.2% during the lunch hour, currently swapping hands for $48.89 apiece.

This comes amid some wider selling action following a weak lead in US markets. At the time of writing the S&P/ASX 200 Index (ASX: XJO) is down 0.7%.

That’s today’s price action for you.

Now what’s all this about a potential red flag for Wesfarmers shares?

Is this a red flag for Wesfarmers shares?

Wesfarmers, if you’re not familiar, is a diversified company with broad retail operations. Its subsidiaries include top names like Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, along with industrial businesses Coregas and Covalent Lithium.

The red flag in question was raised by UBS and relates to Wesfarmers’ Bunnings operations, the company’s largest division.

UBS analyst Shaun Cousins said Wesfarmers shares could face some headwinds with sales of outdoor furniture and gardening goods at Bunnings impacted by wet weather.

According to Cousins (courtesy of The Australian):

Reduced Bunnings sales and earnings before tax due to lower revenue per Bunnings store … due to lower DIY revenue – wet weather delaying, and overall reducing, spring sales, plus a more conservative outlook – albeit still above pre COVID due to a better network.

Atop the inclement weather, Wesfarmers shares could be impacted by the impacts of inflation and rising interest rates, much of which are yet to be felt.

“Looking forward, the Australian consumer is facing significant headwinds from the rising cost of living across energy, food, fuel and housing costs, with house prices falling,” Cousins said.

However, he added that the company’s business setup puts it in a strong position to compete in this environment:

For Wesfarmers, the company is comparatively well positioned for a slower consumer environment, especially in its larger retail businesses Bunnings and Kmart. Each holds a strong value proposition for consumers with a track record of lowering prices / holding back prices in the face of cost inflation.

UBS revised its earnings per share (EPS) guidance for Wesfarmers by 0.8% in 2023 and up 2.8% in 2024.

Don’t forget the dividends

Taking a positive view on Wesfarmers shares, in part because of the company’s lengthy track record as a reliable dividend payer, is Morgans.

The broker forecasts that Wesfarmers will continue to offer investors reliable, fully franked dividend payouts over the next two years.

Morgans expects Wesfarmers to payout dividends of $1.82 per share in FY23 and $1.89 per share in FY24. At the current share price of $48.89 that equates to a yield of 3.7% in FY23 and 3.9% for FY24.

Morgans has an add rating on Wesfarmers shares with a $55.60 price target, 14% above the current price.

The post Is this a red flag for Wesfarmers shares? appeared first on The Motley Fool Australia.

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More reading

• The Wesfarmers share price had a strong run in November
• Top brokers name 3 ASX shares to buy today
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Broker says these top ASX 200 dividend shares are buys

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 positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX dividend shares with yields over 10%? What could be better?

An ASX dividend share offering a 10% or greater yield on one’s cash is a compelling proposition. We only found out this week that Australia’s annual inflation rate is running at 6.9%. This technically means that if a dividend yield is under that threshold, the payments alone are not keeping your returns above breakeven.

So a 10% yielder is looking pretty good on that basis.

But finding high-yield ASX dividend shares is a bit of a risky business. There are plenty out there, to be sure. But if an ASX dividend share is offering a trailing yield above 10%, it’s a sign that an investor might have to be wary. A company’s trailing dividend yield reflects the past, not the future.

And if the share market lets a share trade with a trailing yield of more than 10%, it can often mean that many investors aren’t expecting the dividends to continue at that level.

Otherwise, there would be more buyers, pushing the yield lower. So, always take a high dividend yield with a grain of salt.

But we digress. Here are 10 ASX dividend shares offering a dividend yield above 10% right now. The data comes from S&P Global Market Intelligence.

10 ASX shares with dividend yields over 10% today

Smartgroup Corporation Ltd (ASX: SIQ)

Smartgroup has paid out 66 cents per share in dividends over the past 12 months. That includes the March special dividend of 30 cents per share. This gives Smartgroup a trailing dividend yield of 12.6% right now.

Tabcorp Holdings Limited (ASX: TAH)

Gaming services provider Tabcorp has doled out payments worth a collective 13 cents per share this year. That gives Tabcorp a trailing yield of 12.42% at current pricing. But keep in mind that Tabcorp spun out Lottery Corporation Ltd (ASX: TLC) earlier this year, so this could affect Tabcorp’s future dividend levels.

Yancoal Australia Ltd (ASX: YAL)

ASX coal share Yancoal is next up. This coal company has rained cash on its shareholders this year. It has doled out $1.03 in ordinary dividends per share, as well as a special dividend of 20.4 cents, for a total of $1.23 in dividends per share for 2022. That translates to a trailing dividend yield of 17.56% for just the ordinary dividends, and a whopping 21%, including the special dividend.

Magellan Financial Group Ltd (ASX: MFG)

ASX fund manager Magellan is another high-yielding share right now. This company has rolled out a total of $1.79 in dividends per share this year. At Magellan’s current share price, that is worth a trailing yield of 18.34%

Latitude Group Holdings Ltd (ASX: LFS)

Financial services company Latitude is another relative newcomer to the ASX, having only listed in April last year. But it has certainly hit the ground running when it comes to dividend payments. Latitude has funded a total of 15.7 cents per share in dividends in 29022. That gives the ASX financial share a trailing yield of 11.89% right now.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the ASX’s more well-known dividend payers these days. And over 2022, Fortescue did not disappoint in this regard. Investors have enjoyed a total of $2.07 in dividend payments per share this year. That gives Fortescue a trailing yield of 10.51% today.

Base Resources Ltd (ASX: BSE)

Mineral sands producer Base Resources is next. This company has given investors two dividends worth 3 cents per share each over 2022. On today’s share price of 21 cents, that equates to a trailing yield of a whopping 28.57%

SPDR S&P/ASX 200 Resources ETF (ASX: OZR)

This exchange-traded fund (ETF) has had a top year when it comes to distribution payouts. This fund, as its name implies, holds a basket of ASX resources shares. So you can understand why it has been able to make its investors very happy in this regard. Investors have enjoyed payments worth a total of $2.08 per unit this year. That gives this ETF a trailing yield of 14.54% on today’s pricing

Regal Investment Fund (ASX: RF1)

Listed investment trust Regal is another dividend share with an enviable yield. Investors have enjoyed distributions worth 39.56 cents per unit over the past 12 months. That gives the Regal Investment Fund a trailing distribution yield of 12.21%.

SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI)

Our final share to check out today is another ETF. As its name implies, this fund from SPDR focuses on holding a basket of high-yield dividend shares. It pays distributions quarterly, which, over the past 12 months, totals $4.29 per unit. On the current unit price of $27.95, that gives this ETF a trailing yield of 15.35%.

The post 10 ASX dividend shares paying more than 10% yield right now appeared first on The Motley Fool Australia.

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More reading

• Fortescue’s green hydrogen ambitions: Prosperous or preposterous?
• How the Fortescue share price defied the bears and jumped 32% in November
• What’s boosting the Fortescue share price on Wednesday?
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Here’s what’s boosting these ASX 200 mining giants today

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 positions in and has recommended Smartgroup. 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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With apologies to Paul McDermott… Its been a good news week!

Some of the best news in ages

2022 has been a doozy. And it’s not over yet.

But this week has been a good one.

First, inflation came in lower than expected. Now, if you’d told me 12 months ago that we’d be celebrating an inflation rate of 6.9%, I’d have told you there was a better chance of the Socceroos making it to the Round of 16 at the World Cup and…

Oh.

Well, anyway, an unexpected drop in the inflation rate is good for everyone (except those who were seriously indebted and hoping rising prices would do most of the heavy lifting!).

It hopefully means things will be cheaper, in future, than they otherwise might have been.

It hopefully means interest rates won’t have to go up as far, or for as long.

And it means fewer Australians will do it tough than otherwise could have been the case.

There’s a long way to go.

This could be a false dawn.

But… it’s something!

Speaking of good news, though, the ASX was up 6.1% in November.

Remember those people who said, a month ago, that it was all doom and gloom?

Yeah.

Not so much.

Of course, share prices could fall again. And maybe further than they’ve risen, at least in the short term.

But it’s yet another reminder not to listen to the permanently-morose brigade.

And over the long term? My money is – literally – on the fact that I think the ASX will continue to generate serious long term value.

Capping Gas? It’s a tough one.

The news this week, that the Federal Government is planning to cap the price of natural gas, is a big deal.

First, it’s great news for Australians already doing it tough financially. Remember, the Federal Budget predicted gas prices would go up another 50% in 2023. Many people just couldn’t have afforded that, on top of other rising prices and rising rates.

Second, speaking of rising prices, a cap on gas will help alleviate the pressure on other prices right across the economy, taking (a little) heat out of inflation. That’s good too.

But third, this is pretty challenging ideological territory. Does a country that embraces our system of democratic capitalism really want to start whacking price caps on things? And after the fact? We have ways to get our share of profits – tax being the biggest one – and shouldn’t that be enough, as prices rise? (I’m on record saying resource rents should be higher, but this is different altogether.)

Gotta say, I’m torn. On balance, I think the good that a price cap will do, more than offsets the clear and unwelcome downsides. But I’d hate to think this sort of thing becomes a regular or permanent feature of government policy.

How about some planning, huh guys?

And how did we get into this mess? Well, in part because of an unforeseen war in Europe. That’s one of those things you can’t really predict.

But that’s not the only cause. And you can plan for these sorts of unexpected surprises.

It’s easy, in hindsight – just as with COVID – but we can at least learn some lessons and plan for the next unexpected issue.

Me?

I’d implement a national strategic reserve for fuels, including oil and gas. It’s a no-brainer.

And the mad scramble on energy prices and security is a direct consequence of policy paralysis in Canberra. Investors aren’t going to fund coal projects that will be socially and environmentally unviable in a few short years. But renewable energy investments weren’t going to be made unless and until the backers of these potential projects had sufficient certainty.

And so here we are. It truly was a failure of national policy, and we’re now – literally – paying the price.

But it’s not just supply policy. It’s demand policy, too. Building standards, efficiency measures and other things – which would reduce demand, and hence prices – are no-brainers.

Investors know about putting a little money down, now, for a bigger return later. Maybe the pollies missed the memo?

… and a bouquet

I’m probably biased. No, not politically. But I was a big fan of David Pocock on the rugby field, so I’m probably inclined to be positive about his time as a Senator.

But his work on the workplace policy that has just been passed by both houses of Parliament was exemplary. Not because of his final decision, per se – you can draw your own conclusions on what you think of it – but because of the way he went about learning as much as he could, then speaking to as many people as possible, trying to weigh up the pros and cons, then negotiating in good faith with the government.

The result? He voted on the policy. Not the politics. And did his best to improve the bill.

Well done, Senator.

Quick takes

Overblown: The FTX thing. I mean, it’s a big deal. Lots of money has been blown up. But I mean the soap opera bit. Getting sucked into the soap opera of the whole thing is bad for your wealth. As reality TV goes, I guess it’s tantalising and exciting and, well, car-crash TV. But, it’s still reality TV. There are lessons to be learned, for sure. But it’s not a ‘business’ story anymore – it’s just theatre. Don’t get distracted.

Underappreciated: We spend a lot of time talking about people who might have got themselves in over their heads because of what Phil Lowe did or didn’t say. But – and stay with me here – he didn’t say ‘never’, he said ‘2024’. Those borrowers were going to have to pay the piper at some point. Which is not to say I don’t care – I do – but it’s a reminder that the difference is probably 15 months. 18 tops. But the other lesson? It’s yet another example of people assuming their current circumstances will continue forever, when we all know that’s not the case. The same is probably true of share prices…

Fascinating: Maybe it’s just me. Or the people I hang around with. Or random chance. But it feels like a change is in the air. Increasingly, I’m seeing people pay up for quality, on the basis that paying more, now, for something that’s going to last longer, is a better bet. It’s something I’ve been increasingly doing, something I chatted about with my podcast co-host Andrew Page, in an upcoming episode, and something I’m seeing with friends and on social media. Maybe it’s just a coincidence. Or a flash in the pan. But I’m not so sure. I’m keeping an eye on it.

Quote: “The risk of paying too high a price for good-quality stocks – while a real one – is not the chief hazard confronting the average buyer of securities. Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions.” – Benjamin Graham

Fool on!

The post The pessimists were wrong. Again. appeared first on The Motley Fool Australia.

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More reading

• Should you buy yourself Webjet shares for Christmas?
• Why is the Woodside share price on the slide today?
• Why did the Origin share price rocket 41% in November?
• Buy this cheap ASX 200 share with ‘the best property balance sheet on the market’: fundie
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!

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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The Webjet Limited (ASX: WEB) share price has outperformed over the last few months — could the travel stock still have more room to fly?

The S&P/ASX 200 Index (ASX: XJO) travel giant posted a return to profit in November following its dire earnings tumble amid the COVID-19 pandemic.

However, the Webjet share price is still more than 35% lower than it was in February 2020. Right now, the stock is swapping hands for $6.29 apiece.

Could it keep covering ground towards its pre-pandemic highs in the new year and beyond? Here’s what experts think about buying the travel stock this holiday season.

Are Webjet shares a buy this holiday season?

Could Webjet shares be a buy this Christmas? Blackmore Capital chief investment officer Marcus Bogdan believes so.

The expert likes the company’s recently revealed revenue and earnings, as well as its balance sheet and potential to capitalise on the travel sector’s recovery, as per Livewire. Bogdan continued:

I think that recovery will persist for the foreseeable future.

The online travel agent posted $175.7 million of revenue for the first half of financial year 2023 – a whopping 217% year-on-year improvement. It was an even better turn-around for its underlying earnings before interest, tax, depreciation, and amortisation (EBTIDA), which grew 557% to reach $72.5 million.

Bogdan is far from alone in his bullish view on the Webjet share price.

Morgans senior analyst Belinda Moore recently hailed Webjet as “a stronger business coming out of COVID”, noting its “management hasn’t wasted a crisis”. The broker tips the stock to post $120 million of full-year EBITDA.

Goldman Sachs is also hopeful, tipping Webjet shares as a conviction buy and slapping them with a $6.90 price target.

However, not all experts are so hopeful. Firetrail Investments deputy managing director and portfolio manager Blake Henricks believes the stock is a hold, saying, courtesy of Livewire:

The thing I like about Webjet is that it has pivoted more to that [business-to-business] side and so those earnings are going to be more robust with higher margins. We look out a couple of years and we say it’s probably on a low 20s [price-to-earnings].

I think that’s okay, but it’s had a very good run. What we’ve seen in many categories is, as they rise, they tend to then moderate.

Right now, the Webjet share price is 16% higher than it was at the start of 2022. It’s also 18% higher than it was this time last year.

The post Should you buy yourself Webjet shares for Christmas? appeared first on The Motley Fool Australia.

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• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Woodside Energy Group Ltd (ASX: WDS) share price is in the red today.

Woodside shares are down 2% and currently fetching $35.91 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.56% today.

Let’s take a look at what is happening with the Woodside share price.

What’s going on?

Woodside is not the only ASX energy share falling today. Santos Ltd (ASX: STO) shares are down 1.41%, while Beach Energy Ltd (ASX: BPT) shares are sliding 0.27%.

The Brent Crude oil price is currently down 0.1% to US$86.88 a barrel, while WTI Crude Oil is falling 0.04% to US$81.19 a barrel at last look.

The natural gas price is up 0.82% to US $6.79 per MMBtu.

Analysts at Morgans have retained a “hold” rating on the Woodside share price, as my Foolish colleague James reported this morning. Morgans cut the price target on the Woodside share price to $34.50. Analysts said:

One thing is for sure, WDS expects less production in 2023 than it or the market had anticipated.

Woodside held an investor briefing on Thursday.

Speaking at the investor briefing day, Woodside chief executive Meg O’Neill raised concerns about potential gas price caps. She said:

One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark.

The company revealed it expects to deliver a compound annual growth rate (CAGR) of 4% between 2023 and 2027.

Woodside said the “key catalysts” for production growth are the Sangomar oil development, located off Senegal, and Scarborough start-up in Western Australia.

However, in quotes cited by The Australian, O’Neill raised concerns about uncertainty arising from Santos’ court appeal over the Barossa gas project.

Commenting on the potential implications of this case for Woodside’s Scarborough project, O’Neill said:

It is worrying. We are concerned about the uncertainty that the court case has created. That said, we are working very closely with the regulator, and the government to understand what exactly do we need to do to meet their expectations.

On Tuesday, Woodside released an FY 2023 guidance. The company is forecasting it will produce 180 million – 190 million barrels of oil equivalent (MMboe) in FY 2023.

Woodside share price snapshot

The Woodside share price has soared 70% in the last year, while it has gained nearly 64% year to date.

For perspective, the ASX 200 has returned 1.2% in the last year.

Woodside has a market capitalisation of more than $68 billion based on the current share price.

The post Why is the Woodside share price on the slide today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why CogState, Downer, Temple & Webster, and Woodside shares are dropping
• Woodside share price falls as the ASX 200 giant targets 4% annual growth
• The Woodside share price has dropped for 5 days in a row. What’s going on?
• Is OPEC about to give ASX 200 energy shares a boost?

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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