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The Collins Foods Ltd (ASX: CKF) share price is having a day to forget.

In morning trade, the quick service restaurant operator’s shares are down 17% to $8.33.

Why is the Collins Foods share price sinking?

Investors have been selling down the Collins Foods share price on Tuesday following the release of the company’s half year results. Here’s how it performed:

• Revenue up 15% to $614.3 million
• Underlying EBITDA up 0.5% to $95.4 million
• Statutory net profit after tax down 58% to $11 million
• Underlying net profit after tax down 14.2% to $24.8 million
• Fully franked interim dividend flat at 12 cents per share

What happened during the half?

For the six months ended 16 October, Collins Foods reported a solid 15% increase in revenue to $614.3 million thanks to growth across all business units.

KFC Australia reported a 10.6% increase in revenue to $479.6 million, KFC Europe delivered a 32% increase in revenue to $111.8 million, and Taco Bell posted a 42.6% increase in revenue to $21.1 million. The key KFC Australia business’ growth was driven by a combination of new store rollouts and same store sales growth of 5.1%. The latter reflects increased ticket value and broadly flat transaction numbers.

Things weren’t quite as positive for the company’s earnings, with underlying net profit after tax falling 14.2% to $24.8 million. Management advised that this was driven by margin headwinds from cost inflation.

On a statutory basis, net profit after tax was down a disappointing 58% to $11 million. This includes an $11.9 million after tax non-cash impairment of eight Taco Bell restaurants.

Taco Bell’s struggles

The Taco Bell brand has failed twice before in the Australian market and things weren’t looking good during the half. Although it delivered strong overall revenue growth, this was driven by new store openings, which offset a 7.8% decline in same store sales.

In order to prevent it failing a third time in Australia, management has decided to pause new restaurant builds beyond those already committed and refine the business from top to bottom. Nevertheless, Collins Foods’ CEO, Drew O’Malley remains positive on the brand. He said:

We are refining every element of the business, from marketing and media spend to portioning and product quality, to ensure we meet and exceed customer expectations. We have paused new restaurant builds, other than the five-six already committed, to enable us to work with Yum! to regain traction on sales before further recommencing the rollout and scaling the brand. We are confident in the future prospects of Taco Bell given its value position within the fastest growing QSR segment.”

Outlook

No guidance was given for the second half, but management revealed that sales have remained strong for its KFC operations.

During the first six weeks of the half, it has achieved KFC same store sales growth of 5.6% in Australia and 14.8% in Europe. However, it has warned that “significant inflationary headwinds are continuing in both markets, with margin pressure expected to remain for the balance of FY23.”

No sales data was provided for the struggling Taco Bell brand.

O’Malley concluded:

Operating in the resilient QSR sector, we believe we are well positioned to navigate the current challenging environment. When combined with Collins Foods’ focus on operational excellence, supported by a highly capable and experienced management team, and the flexibility that comes with a healthy balance sheet, we retain our recipe for success to deliver sustainable earnings growth over the long term.

The post Here’s why this ASX 200 share is crashing 17% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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 Northern Star Resources Ltd (ASX: NST) share price is down 2.6% to $10.31 in early trade this morning, joining a broader market selloff.

Despite the dip, the S&P/ASX 200 Index (ASX: XJO) gold stock is up an impressive 18% since the closing bell on 31 October.

It’s not just the Northern Star share price that’s outperformed. It’s been a good month for most ASX gold miners, buoyed by a 5.8% rise in the price of bullion in November.

Gold is currently trading for US$1,741 per troy ounce, up from US$1,645 at the beginning of the month.

That’s seen the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gain 15% over the month, compared to a gain of 5% posted by the ASX 200.

That’s the price action in November so far.

So, what can investors expect from the Northern Star share price moving forward?

Now what?

Atop the outlook for the gold price (which we’ll get to shortly), there is a range of company-specific factors that will determine how the Northern Star share price performs in the months ahead.

In the miner’s September quarterly activities report, the company reported its balance sheet was strong, with net cash of AU$173 million as at September 30, and with cash and bullion combined totalling AU$473 million.

Northern Star also maintained its FY23 guidance of 1.56 million to 1.68 million ounces of gold sold at an all-in sustaining cost (AISC) of AU$1,630 to AU$1,690 per ounce.

Those company-specific figures should bode well for the Northern Star share price.

But, as we outlined up top, the miner’s returns are also heavily influenced by the price of the precious metal it digs from the ground.

As for the outlook for the gold price – and, by extension, the Northern Star share price – keep an eye on the US Federal Reserve. Gold’s strong run in November has partly been thanks to the market pricing in a more dovish Fed moving forward.

A slower pace of interest rate hikes from the world’s top central bank tends to support bullion prices, as gold pays no yield.

Atop how they’re setting interest rates, you’ll want to watch the gold-buying activities of the world’s central banks as well.

According to the latest report from the World Gold Council, in the third quarter of 2022, gold demand “was bolstered by consumers and central banks”.

The report highlighted that “central bank buying picked up significantly with estimated record purchases of nearly 400 tonnes in the third quarter”.

And there’s likely to be even more central bank buying on the horizon, which should offer some further tailwinds to the Northern Star share price.

The World Gold Council’s recent central bank survey indicated 25% of the banks intend to increase their gold reserves in the next 12 months.

Commenting on the central bank buying spree, Justin McQueen, senior market analyst at Capital.com, said, “The fact that central banks have been excessively accumulating does provide an undercurrent of support for the precious metal.”

Northern Star share price snapshot

With the strong performance in November behind it, the Northern Star share price is now up a solid 9% in 2022. That handily outperforms the 5% year-to-date loss posted by the ASX 200.

The post The Northern Star share price has soared 18% so far in November. What now? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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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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Some of the smaller ASX dividend shares might be able to pay some of the largest dividend yields.

A business like Commonwealth Bank of Australia (ASX: CBA) is solid, but it gets a lot of fund manager and household attention. It’s also a very large business that is unlikely to deliver a lot of growth and due to many investors focusing on the big bank, it’s not as likely to be cheap as the smaller, undiscovered names.

But it’s worth pointing out that just because something is small doesn’t mean it will do well. However, the lower valuation could make up for that and give investors a bit of a margin of safety.

The three small ASX dividend shares below are ones that are buy-rated and are expected to pay large income yields.

MotorCycle Holdings Ltd (ASX: MTO)

MotorCycle Holdings is a business that sells motorbikes through a large network of locations. It sells a variety of brands like Yamaha, Harley Davidson, Ducati, Honda, and Suzuki.

It recently announced it was acquiring Mojo Group for $60 million, which is one of Australia’s largest importers and wholesalers of motorcycles, genuine spare parts, and accessories.

The small ASX dividend share is still experiencing supply chain challenges, but acquisitions are adding to earnings. It’s investigating expansion into industry segments where it’s unrepresented. Despite positive current trading conditions, it’s preparing for more subdued trading conditions as consumer demand moderates.

It’s rated as a buy by Morgans, with a price target of $3.42. It’s expected to pay a grossed-up dividend yield of 11.8% in FY23.

Lindsay Australia Ltd (ASX: LAU)

The ASX dividend share describes itself as an integrated transport, logistics, and rural supply company. Its focus is on road transport, logistics, and warehousing services as well as specialist services to rural suppliers, with an emphasis on the horticultural industry.

Lindsay is aiming to diversify its revenue sources, which has seen it expand into rail. It has also acquired 27 refrigerated containers in the first quarter of FY23, expanding the fleet to 403 containers. Rail will “continue to deliver revenue growth into FY23”, the company says.

With its road segment, it’s expanding its trailer fleet to increase operational capacity. In the rural division, it is continuing to explore opportunities to expand in “key horticulture regions” either organically with low-cost start-ups or by acquisitions of established businesses.

It will continue to assess acquisition opportunities that could diversify its geographical reach and range of services.

But it expects the high demand for services to persist. In FY23, it’s expecting earnings before interest, tax, depreciation and amortisation (EBITDA) of between $68 million to $71 million.

It’s rated as a buy by the broker Ord Minnett, with a price target of 76 cents. It’s expected to pay a dividend yield of 6.1% in FY23.

COG Financial Services Ltd (ASX: COG)

This business describes itself as Australia’s leading finance broker aggregator and equipment leasing business for small to medium-sized enterprises (SMEs).

In FY23 to date, COG Financial Services has seen underlying net profit (NPATA) rise by 26% year-over-year to 31 October 2022. There has been “strong activity” in all segments and this is expected to continue “given mega trends supporting mining, infrastructure, transport and agriculture”.

The company said its scale means it can now support significant investment in its own software platform, giving it “the advantage of having the best offering in the market”.

This ASX dividend share is rated as a buy by the broker Ord Minnett with a price target of $2.11. The broker likes the growth the business is seeing in multiple areas. COG Financial is projected to pay a grossed-up dividend yield of 8.6% in FY23.

The post 3 high-yield ASX dividend shares you’ve probably never heard of appeared first on The Motley Fool Australia.

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More reading

• Bought $1,000 of ANZ shares 10 years ago? Here’s how much dividend income you’ve received
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lindsay Australia Limited. The Motley Fool Australia has recommended Lindsay Australia Limited. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price hasn’t gone all too far over the last 10 years, but have the dividends made up for it?

Right now, stock in the smallest of the S&P/ASX 200 Index (ASX: XJO) big four banks is trading at $24.72. That’s 11% lower than it was at the start of 2022 and 6% lower than it was this time last year.

For comparison, the ASX 200 has fallen 5% this year and is trading flat over the last 12 months.

Looking further back, if an investor snapped up $1,000 worth of ANZ shares exactly 10 years ago today, they likely would have walked away with 41 securities – paying $23.90 apiece – and $20 change.

Today, that parcel would be worth $1,013.52, or 3.4% more than our imaginary investor paid.

While any return is better than a loss, that 3.4% gain is relatively dire compared to the ASX 200’s approximate 60% rise over the last 10 years.

So, have ANZ’s dividends made up for its share price’s weak performance? Let’s take a look.

How much have ANZ shares paid in dividends in 10 years?

Here’s a breakdown of all the dividends offered to those invested in ANZ shares over the last 10 years:

ANZ dividends’ pay date	Type	Dividend amount
December 2022	Final	74 cents
July 2022	Interim	72 cents
December 2021	Final	72 cents
July 2021	Interim	70 cents
December 2020	Final	35 cents
August 2020	Interim	25 cents
December 2019	Final	80 cents
July 2019	Interim	80 cents
December 2018	Final	80 cents
July 2018	Interim	80 cents
December 2017	Final	80 cents
July 2017	Interim	80 cents
December 2016	Final	80 cents
July 2016	Interim	80 cents
December 2015	Final	95 cents
July 2015	Interim	86 cents
December 2014	Final	95 cents
July 2014	Interim	83 cents
December 2013	Final	91 cents
July 2013	Interim	73 cents
December 2012	Final	79 cents
Total:		$15.90

As we can see, ANZ shares have handed investors $15.90 in dividends per share over the decade just been, including the bank’s upcoming December offering.

That means $1,000 worth of shares bought back then would have paid out $651.90 in dividends.

Combining that with the ANZ share price’s 3.4% rise, the stock has returned 69.95% since November 2012.

And of course, those dividends could have been reinvested in ANZ shares, allowing our figurative investor to benefit from the magic that is compounding.

Not to mention the potential benefits of franking credits. All dividends offered to those holding ANZ shares over the last decade have been fully franked at 30%, meaning some investors might have recognised additional benefits at tax time.

With all that in mind, I think it’s safe to say that ANZ’s dividends have made up for its share price’s weak performance over the last 10 years. The stock currently trades with a 5.9% dividend yield.

The post Bought $1,000 of ANZ shares 10 years ago? Here’s how much dividend income you’ve received 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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The Woodside Energy Group Ltd (ASX: WDS) share price is having a disappointing day on Tuesday.

In morning trade, the energy giant’s shares are down 5% to $35.12.

Why is the Woodside share price tumbling into the red?

The Woodside share price is being sold off today after the company completed a review of its 2023 corporate plan. This includes its costs, production, and sales forecasts for the year ahead, which has led to the release of the energy producer’s guidance for FY 2023 this morning.

Firstly, in respect to its capital expenditure, Woodside expects to spend US$6 billion to US$6.5 billion on capex in FY 2023. This assumes no change to current participating interests. Approximately half of this will be put towards the Scarborough operation.

Moving on, Woodside expects production of 180 – 190 million barrels of oil equivalent (MMboe) in FY 2023. This is the first full year of production since the BHP Group Ltd (ASX: BHP) petroleum transaction and compares to its FY 2022 production guidance of 153 – 157 MMboe.

However, it is worth noting that Woodside recently delivered third quarter production of 51.2 MMboe, which annualises to 204.8 MMboe. So, investors could be a touch underwhelmed with FY 2023’s production guidance, which may explain the weakness in the Woodside share price today.

This guidance comprises LNG production of 83-85MMboe, pipeline gas production of 40-42MMboe, crude and condensate production of 50-55MMboe, and natural gas liquids production of 7-8MMboe.

It is worth noting that it doesn’t include any production from the Sangomar Field Development Phase 1, which is targeting first oil in late 2023. In addition, management notes that Mad Dog Phase 2 is undergoing commissioning and Woodside assumes for production guidance purposes a start-up in mid-2023.

No production costs guidance was provided for FY 2023.

The post Woodside share price tumbles 5% on FY23 guidance appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price tanking today?
• Would this side of Woodside put you off buying its shares?
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• Crude down, stocks up: Here’s what happened to Woodside shares the last time this occurred

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.

from The Motley Fool Australia https://www.fool.com.au/2022/11/29/woodside-share-price-tumbles-5-on-fy23-guidance/

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Imagine you could go back in time to November 2008. Amazon‘s (NASDAQ: AMZN) share price has dropped like a brick and is down well over 50% year to date. Would you buy the stock? You’d be crazy not to do so. Amazon went on to deliver a staggering 88x gain by the end of 2021.

Now let’s return to the present. Amazon’s share price has dropped like a brick yet again. It’s down the most since that huge sell-off 14 years ago. Should you back up the truck and load up on Amazon stock?

Behind Amazon’s plunge 

To answer that question, we need to first examine the factors behind Amazon’s steep plunge this year. Much of the blame can be placed on macroeconomic headwinds and uncertainty that have caused the overall stock market to fall.

Amazon’s revenue growth has been dampened by the strong U.S. dollar. In the third quarter alone, the company’s sales were around $900 million lower due to unfavorable foreign exchange rates. 

But Amazon’s growth is slowing even on a constant-currency basis. The company expects Q4 revenue will increase by only 2% to 8% year over year, with an impact of foreign exchange rates of around 460 basis points (or 4.6%). 

What’s Amazon’s main problem? Inflation. CFO Brian Olsavsky said in the company’s Q3 conference call, “The continuing impacts of broad-scale inflation, heightened fuel prices and rising energy costs have impacted our sales growth as consumers assess their purchasing power and organizations of all sizes evaluate their technology and advertising spend.” 

However, the top line isn’t Amazon’s only issue. The company’s earnings are also falling because of a significant increase in spending. This has contributed to Amazon’s free cash flow, arguably the most important measure of its financial health, sinking into negative territory.

Two important questions

One of the most important questions to ask when considering whether or not to buy Amazon stock now is: Are the company’s issues only temporary? I think the answer is clearly “yes.”

The two biggest challenges for Amazon right now — the strong U.S. dollar and high inflation — are intertwined. The dollar is strong in large part because of the Federal Reserve’s monetary policy. And the Fed’s policy, which is focused on aggressively raising interest rates, is in place to try to curb inflation.

Sooner or later, though, the Fed’s moves will cause inflation to moderate. We’re seeing a few signs that it could already be happening, such as the lower-than-expected producer price index announced earlier this month. When the Fed feels that inflation is in check, it will stop raising interest rates and will eventually lower them.

In the meantime, Amazon is wisely cutting costs to improve its bottom line and free cash flow. The company announced major layoffs recently. It’s also shutting down several businesses that have weighed on growth.

There’s also another important question that investors should consider: Does Amazon have strong growth prospects? Again, I think the answer to this question is a resounding “yes.”

E-commerce in the U.S. made up only 14.1% of total retail sales in the third quarter of 2022. Cloud hosting remains an attractive option for businesses, with Amazon Web Services still the No. 1 player in this market. Amazon also has other potential growth drivers, including its moves into digital advertising, healthcare, and streaming TV.

Back up the truck?

Probably the biggest knock against Amazon is its valuation. The stock trades at more than 46 times expected earnings. I suspect that most discounted cash flow models analyzing Amazon would indicate that the stock is overvalued despite its sharp decline this year.

However, Amazon has appeared to be overvalued throughout its entire history. That hasn’t prevented the stock from delivering massive returns. The reality is that Amazon is a business that’s difficult to value because its management team continually comes up with new ways to grow. That’s a good “problem” to have for investors.

Amazon isn’t likely to go on the huge surge going forward as it did after 2008. But I fully expect the stock will nonetheless return to its winning ways in the not-too-distant future. Should you back up the truck and load up on Amazon stock? I think so.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you back up the truck and load up on Amazon stock? appeared first on The Motley Fool Australia.

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More reading

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Fortescue Metals Group Limited (ASX: FMG) share price has significantly outperformed the S&P/ASX 200 Index (ASX: XJO) over the past month. Fortescue shares have gone up by around 30% while the ASX 200 has only risen by 5%.

A significant part of that rise may be because the iron ore price has risen in recent weeks.

The commodity price is a key influencer on profitability because of how much leverage it gets out of changes in the resource price.

Fortescue’s costs don’t really change if the iron ore price changes, aside from paying more to the government. However, when the iron ore price goes higher, it predominately adds to the net profit after tax (NPAT). This can then boost the dividend as well.

But, despite the recent strong run, one expert thinks that there could be further to run for the iron ore miner.

Optimistic case for the Fortescue share price

John Athanasiou from Red Leaf Securities suggested on The Bull that the Fortescue share price has been “benefiting from speculation that China will ease COVID-19 restrictions.”

In Athanasiou’s opinion, an easing of COVID-19 restrictions could lead to the iron ore price being pushed up.

He also referenced the fact that the iron ore miner had a record-breaking first quarter of FY23 when it shipped 47.5 million tonnes of iron ore, which was an increase of 4% on the prior corresponding period.

What else was reported in the second quarter?

Fortescue revealed that it achieved an average revenue per dry metric tonne (dmt) of iron ore of US$87, while C1 costs were US$17.69 per wet metric tonne. There was a price escalation of key input costs, including diesel and labour rates, partly offset by a lower exchange rate.

At 30 September 2022, it had US$3.3 billion of cash and the net debt position was US$2.8 billion.

In terms of how it managed to achieve the strong production, Fortescue said that it reflected “strong operating performance across the supply chain and availability of inventory”.

The business also said that it is making progress with a number of its green energy plans. It noted that it has entered into a global strategic collaboration with energy infrastructure developer Tree Energy Solutions which aims to “accelerate the development of a world leading green hydrogen and green energy import facility in Germany.”

Fortescue share price snapshot

Over the past six months, the iron ore miner has fallen by around 4%.

The post Up 30% in a month, why the Fortescue share price could have further to run: fundie appeared first on The Motley Fool Australia.

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More reading

• Where will Fortescue shares be in 5 years?
• If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have
• Skin in the game: The ASX share in my portfolio I’m most excited about
• Does an investment in Fortescue shares provide the ‘healthiest’ ASX exposure to iron ore?
• 3 reasons this fundie is still bullish on ASX mining shares

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

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It’s been a ripper year for the Whitehaven Coal Ltd (ASX: WHC) share price.

The market has been bidding the thermal coal giant’s stock higher amid soaring demand for the black rock, driving the company to post record financial year 2022 earnings.

Right now, the Whitehaven share price is trading at $9.43. That marks a whopping 242% return in 2022, before considering dividends.

The stock paid out 48 cents per share in that time – bringing its total return for the last 11 months to nearly 260%.  

For comparison, the S&P/ASX 200 Index (ASX: XJO) has dumped nearly 5% this year.

So, with all those gains under its belt, is now a good time for Whitehaven shareholders to cash out of the stock? That’s what one fundie thinks.

Fundie tips Whitehaven shares as a sell

While financial year 2022 was largely brilliant for Whitehaven, the new fiscal year has brought new challenges. Notably, flooding has seen the company reduce its run of mine (ROM) production guidance.

It now expects to declare between 19 million tonnes and 20.4 million tonnes of managed ROM production in financial year 2023 – down from previous guidance of between 20 million tonnes and 22 million tonnes.

Whiles its Narrabri mine’s expected output was lifted, that of its Maules Creek and Gunnedah mines were dropped.

That’s one reason Seneca investment advisor Arthur Garipoli tips the stock as a sell, as per The Bull.

Another reason behind Garipoli’s bearishness is the risk of softening coal prices amid a mild European winter. Garipoli continues:

The share price has risen from $2.76 on January 4 to trade at $8.895 on November 24. Investors may want to consider locking in some profits.

Garipoli isn’t the only expert seemingly cautious of the coal giant lately.

Though, QVG Capital portfolio manager Josh Clark is more hopeful, recently tipping Whitehaven shares to be a hold. He said, courtesy of Livewire:

[T]he thermal coal price … looks incredibly expensive on long-term forecasts or longer-term historic prices. And then it looks ridiculously cheap on spot thermal coal prices.

One thing we know is that thermal coal prices have got to come down at some point.

So, the game you’re trying to play is to get paid back on a really cheap multiple before that commodity price starts moving down.

Meanwhile, Katana Asset Management co-founder Romano Sala Tenna outlines a bullish view on coal prices, telling my Fool colleague Bernd Struben:

I definitely see coal being stronger for longer. Is it US$350 per tonne? Probably not. Is it US$250 or US$200 per tonne for thermal, possibly. But that’s still incredible prices for thermal coal. I think we’ve got some runway on some of the thermal coal plays.

No doubt all eyes will be on the Whitehaven share price in coming months and years after its meteoric 2022 rise.  

The post Up 240% in 2022, is it time to cash in the chips on Whitehaven shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• The Whitehaven chair just cashed out $1.8 million in shares. Here’s the latest
• What’s happening with ASX 200 coal shares this week?
• 5 of the craziest things making news on the ASX this week
• 8%+ dividend yields! 3 ASX 200 shares I’d snap up to beat inflation

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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There are a number of S&P/ASX 200 Index (ASX: XJO) dividend shares that are known for paying large dividends. Investors may like to know about some of the ones that could offer both capital growth and dividend potential.

The dividend income from names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) can be large. But, given how big those companies are, it may be questionable how much bigger they can become.

However, there are a number of ASX 200 dividend shares that investors could build a portfolio around.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This is one of the largest investment companies in Australia. At more than a century old, it’s one of the oldest on the ASX. It has paid a dividend every year in its listed existence. The company has also grown its dividend each year since 2000, which is the longest growth streak on the ASX.

Soul Pattinson has a diversified portfolio across a number of sectors, such as resources, telecommunications, property, building products, agriculture, financial services, industrials, and so on.

Commsec numbers suggest that the business could pay an annual ordinary dividend of 77 cents per share in FY23, which would be a grossed-up dividend yield of around 4%.

APA Group (ASX: APA)

APA Group owns a portfolio of gas pipelines around Australia, transporting half of the country’s gas usage. It owns other gas-related energy infrastructure (including power generation and storage). The ASX 200 dividend share also owns a growing portfolio of renewable energy assets.

The business is seeing a steady rise in its distribution as its cash flow grows. It has grown its annual payout every year for more than a decade and a half. It’s exploring the potential of being able to transport hydrogen inside the pipelines, which would lengthen the useful life of the pipeline.

Commsec numbers indicate that it could pay an annual distribution of 55 cents in FY23, translating into a forward yield of 4.85%.

Sonic Healthcare Limited (ASX: SHL)

This company is one of the largest healthcare pathology businesses in the world. It also offers radiology services, plus it has been heavily involved with COVID testing (which continues).

The Sonic Healthcare share price has fallen more than 30% in 2022 to date, boosting the prospective dividend yield. It has a stated progressive dividend policy. In FY23 it is expected to pay an annual dividend per share of $1.01, according to Commsec, translating into a grossed-up dividend yield of 4.5%.

Telstra Group Ltd (ASX: TLS)

This is the largest ASX 200 dividend share on the list.

Australia’s biggest telecommunications business has long been seen as a dividend payer. But, it’s finally getting back to dividend growth. It grew its final FY22 dividend from 8 cents per share to 8.5 cents per share – an increase of 6.25%.

The business is cutting costs, rolling out 5G, growing Telstra Health and increasing prices in line with inflation.

According to Commsec, it’s expected to pay an annual dividend per share in FY23, which translates into a grossed-up dividend yield of 6%.

Brickworks Limited (ASX: BKW)

Brickworks is a diversified building products business. It owns half of an industrial property trust along with Goodman Group (ASX: GMG), as well as a sizeable chunk of Soul Pattinson shares.

The ASX 200 dividend share is the largest brickmaker in Australia and the northeast of the US. It also recently signed a deal to supply millions of bricks to the UK.

Brickworks hasn’t seen a dividend cut for more than 40 years, so there has been a lot of stability. It’s expected to pay a grossed-up dividend yield of 4.1% in FY23.

The post 5 ASX 200 dividend shares to build your portfolio around appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares to weather the inflation storm: fundie
• Telstra share price ‘hasn’t fully captured the upside in value’: fundie
• Almost ready to retire? How to generate $70k per year of passive income from ASX dividend shares
• Use the ASX 200 market correction to retire early. Here’s how

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended APA Group, Brickworks, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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 New Hope Corporation Limited (ASX: NHC) share price has been on fire this year.

Since the start of the year, the coal miner’s shares have rocketed 145% higher.

Can the New Hope share price keep rising?

The good news for investors is that it may not be too late to snap up New Hope’s shares.

According to a note out of Morgans, its analysts have retained their add rating with a slightly trimmed price target of $6.80.

Based on the current New Hope share price of $5.68, this implies potential upside of approximately 20% for investors.

What did the broker say?

While Morgans was a touch disappointed with New Hope’s first quarter update, it remains positive and believes the market is undervaluing its shares. Particularly given that Acland 3 cash flows are not far away from being generated. The broker commented:

1Q (unaudited) EBITDA missed our forecast due mainly to a planned 3 week CHPP shutdown at Bengalla, reducing quality and price realisations temporarily. We think the market under-appreciates Acland 3 cash flows now only 12 months away.

Its analysts also like the company due to its dividends. In fact, Morgans believes a yield of 20% is possible based on current prices. It said:

We forecast accumulation of $1.4bn of net cash by end FY23 pre dividends and buybacks. If we exclude $250m as a balance sheet buffer then plausibly +$1.15bn ($1.22ps) is available for distribution via the announced buyback (up to $300m) and dividends. We think a forecast $1.00ps FY23 dividend forecast is fair, but of course will rely on actual earnings and the balance between actual pricing, NHC’s view on value and therefore percentage of the buy-back actually executed.

Based on its forecast for a $1.00 per share fully franked dividend in FY 2023, this equates a 17.6% yield. And if you’re able to put those franking credits to use, the gross yield lifts beyond 20%.

Morgans concluded:

We think that NHC can re-rate on: 1) abatement of abnormal selling post notes conversion; 2) recognition of approaching Acland 3 cashflow; 3) ongoing coal price resilience/ strength; and 4) clear capital management upside.

The post Broker says this ASX 200 share has 20% upside and a 20% dividend yield appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• New Hope shares have soared 152% in 2022. Is it time to cash in?
• Brokers name 3 ASX shares to buy today
• What’s happening with ASX 200 coal shares this week?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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