Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) spent a second day in the green today. The index closed 0.7% higher at 7,231.8 points – a five month high.

Among its top performers were coal stocks, which led the S&P/ASX 200 Energy Index (ASX: XEJ). The sector was, in turn, among those leading the ASX 200, gaining 1.3% today amid rising oil prices.

The Brent crude oil price lifted 1% to US$88.36 a barrel and the US Nymex crude oil price gained 1.1% to trade at US$80.95 a barrel.

The S&P/ASX 200 Industrials Index (ASX: XNJ) also outperformed, lifting 1.3% on the back of a trading update from Qantas Airways Limited (ASX: QAN).

Other winning sectors included the S&P/ASX 200 Materials Index (ASX: XMJ and the S&P/ASX 200 Utilities Index (ASX: XUJ). They gained 1% and 1.6% respectively.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) weighed on the market, falling 1%.

All in all, nine of the index’s 11 sectors closed Wednesday in the green. But which share outperformed all others to take today’s top spot? Keep reading to find out.

Top 10 ASX 200 shares countdown

The top performing stock on the index on Wednesday was tech favourite BrainChip Holdings Ltd (ASX: BRN). Its share price gained nearly 7% despite the company’s silence.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
BrainChip Holdings Ltd (ASX: BRN)	$0.695	6.92%
Chalice Mining Ltd (ASX: CHN)	$4.95	6.45%
Whitehaven Coal Ltd (ASX: WHC)	$9.62	5.6%
Qantas Airways Limited (ASX: QAN)	$6.18	5.28%
Gold Road Resources Ltd (ASX: GOR)	$1.72	4.24%
Incitec Pivot Ltd (ASX: IPL)	$4.14	4.02%
Brickworks Limited (ASX: BKW)	$21.88	3.94%
Nickel Industries Ltd (ASX: NIC)	$0.98	3.7%
Nufarm Ltd (ASX: NUF)	$6.15	3.54%
Karoon Energy Ltd (ASX: KAR)	$2.38	3.48%

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

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

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More reading

• Why is the Whitehaven share price soaring 17% so far this week?
• Why did the BrainChip share price leap 7% today?
• 3 ASX 200 shares hitting new 52-week highs on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising

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

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The S&P/ASX 200 Index (ASX: XJO) has had a strong week thus far, even though it’s only Wednesday. Since Last Friday, the ASX 200 has added a healthy 1.1%, despite the drop we saw on Monday. But when it comes to the Whitehaven Coal Ltd (ASX: WHC) share price, those ASX 200 gains look pathetic by comparison.

Whitehaven shares have been on an absolute tear this week. Although we’re only just rounding out ‘hump day’, Whitehaven shares have risen from $8.19 each last week to the $9.62 we see today. That’s an increase worth a whopping 17.5% – over only three days of trading too.

So what’s going on with Whitehaven this week that has helped such a whopping win?

Why are Whitehaven shares on fire this week?

Well, it seems that these gains can be put down to what is happening with coal prices. At its core, Whitehaven’s profitability rises and falls on the back of coal prices. And coal has once again been on the rise in late.

Earlier this month, the energy-dense fuel was going for around US$325 per tonne. Today, it’s back over US$355. That’s more than double what coal was going for at the start of the year.

So it’s perhaps no surprise that the Whitehaven share price is up an extraordinary 247% over 2022 thus far.

As we discussed yesterday, there are also some issues in the South American coal market going on right now. The South American coal industry is presently suffering from blockades on some of its transport rail lines.

A group of former employees at South American coal miner Cerrejon are reportedly behind these blockades. If they persist, it could lead to supply constraints in the global coal market, which is already being squeezed by other factors, such as the war in Ukraine.

This could also be feeding into sentiment surrounding coal mines like Whitehaven, as well as the price of coal itself.

So these factors could be what is pushing the Whitehaven share price up so convincingly this week. It’ll be interesting to see how the Whitehaven share price goes over the rest of the trading week.

The post Why is the Whitehaven share price soaring 17% so far this week? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 coal shares smoking hot on Tuesday?
• Why is the Whitehaven share price soaring 8% on Tuesday?

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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The Brainchip Holdings Ltd (ASX: BRN) share price defied the tech sector sell-off on Wednesday, closing 6.92% higher.

Shares in the ASX artificial intelligence (AI) company closed at 69.5 cents each, closing just shy of their intraday high of 70 cents apiece.

Technology was by far the ASX’s worst-performing sector today. This was reflected in the S&P/ASX 200 Information Technology Index (ASX: XIJ) shrinking by 1.05%. To put the loss into the perspective, the next-ranked laggard was the S&P/ASX 200 Real Estate Index (ASX: XRE) which lost 0.34%.

All other sectors were in the green today while the S&P/ASX 200 Index (ASX: XJO) enjoyed a 0.7% boost.

So why did BrainChip’s shares do so well while some of the company’s tech peers struggled to keep their heads above water? Let’s investigate.

What’s going on with the BrainChip share price?

There’s no news today from BrainChip to make sense of why its shares might have done so well on Wednesday.

However, the company’s rally kicked off yesterday when its share price closed 4% higher from its open of 62 cents. It seems the momentum that was building then was fully unleashed today.

Also, one important development unfolded for the company last weekend that may have been reflected in the Brainchip share price on Monday.

BrainChip appoints chief marketing officer

BrainChip announced that it had appointed ex-Amazon hire Nandan Nayampally as its chief marketing officer. Nayampally was said to have a track record in developing intellectual property and helped encourage vendors to use the Alexa Voice assistant while at Amazon.

It seems investors apparently didn’t think much of this announcement at the time as when the Fool reported the news, BrainChip shares were down more than 2% for the day.

Is Tech share investor sentiment returning?

However, things turned a corner on Tuesday. This could be, in part, due to improving sentiment in the US that the Fed has inflation problems under control.

Tech shares like BrainChip blasted off earlier this month when it was announced CPI data came in below forecasts, and the Nasdaq Composite (NASDAQ: .IXIC) had its best one-day gain since March 2020 after the news was announced.

The Nasdaq Composite also gained 1.04% in its most recent trading session too, so confidence could be returning to tech companies like BrainChip to help give certain shares a lift.

The post Why did the BrainChip share price leap 7% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive
• Looking to buy ANZ shares? Here’s why the ASX 200 bank is hitting headlines
• Guess which ASX 200 bank share just upped its final dividend by 580%

Motley Fool contributor Matthew Farley 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 A2 Milk Company Ltd (ASX: A2M) share price has been on a roll in November.

The stock has gained a whopping 18.2% since the final close of October to trade at $6.22 today. For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 5.2% in that time.

So, what’s been going so right for the A2 Milk share price lately? Let’s take a look.

What’s been boosting the ASX 200 stock higher?

There’s been a lot going on with A2 Milk over the last few weeks, and its share price has been reacting favourably.

The first announcement to drive the fresh milk and infant formula company’s stock was a major one. It revealed the United States Food and Drug Administration (FDA) has allowed the company’s infant formula productions to be sold in the North American nation.

Though, it likely won’t be smooth sailing in the US. A2 Milk noted the market is highly competitive and its gross margins will likely be lower than average amid the higher cost of goods.

It was only days later that the company announced the beginning of its NZ$150 million (around $139 million at today’s exchange rate) on-market share buyback.

The capital return activity was first flagged in August and could run for 12 months. Shares bought under the buyback will be cancelled – thereby lowering the number of shares on issue and increasing the value of those remaining.

Finally, the company held its annual general meeting (AGM) on Friday. There, it told investors its performance is tracking in line with its financial year 2023 guidance but warned volatility in currencies could impact its revenue.

It said that, if currencies remain at prevailing levels, revenue growth could end up in the low double-digits, rather than the previously forecasted high single-digits. Meanwhile, its entrance into the US market likely won’t impact its earnings this fiscal year.

A2 Milk share price snapshot

This month’s gain has added to the A2 Milk share price’s decent 2022 performance.

The stock has lifted 12% so far this year. Though, it’s still 1% lower than it was this time last year.

For comparison, the ASX 200 has fallen 5% year to date and 3% over the last 12 months.

The post Why has the A2 Milk share price rocketed 18% so far this month? appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Cettire, Coronado, and Perpetual shares are dropping
• A2 Milk share price tumbles on trading update and chair exit
• 5 things to watch on the ASX 200 on Friday
• Why is the A2 Milk share price thrashing the ASX 200 on Wednesday?
• Can this help A2 Milk pick up the pieces in China?

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 A2 Milk. 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 having another solid day on Wednesday.

In afternoon trade, the benchmark index is up 0.6% to 7,224.7 points. This means the ASX 200 index has now risen almost 7% since this time last month.

However, despite this, the index remains down approximately 5% since the start of the year.

Three ASX 200 shares that are having far better years are listed below. Here’s why they just hit 52-week highs:

AMP Ltd (ASX: AMP)

The AMP share price hit a 52-week high of $1.33 on Wednesday. This stretches the financial services company’s year to date gain to 33%. AMP’s divestment of the Collimate Capital business, solid loan book growth, the recent reiteration of guidance, and its on-market share buyback all appear to have given the AMP share price a big in 2022 after several disappointing years.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price has continued its impressive run and reached a 52-week high of $88.14 today. When the mining and mining services company’s shares hit that level, it meant they were up over 50% in 2022. This has been driven largely by Mineral Resources’ lithium operations, which are expected to drive very strong earnings growth in FY 2023. In fact, Goldman Sachs expects the company’s EBITDA to triple this year thanks largely to these operations.

Qantas Airways Limited (ASX: QAN)

The Qantas share price has taken off again on Wednesday and hit a 52-week high of $6.23. Investors have been scrambling to buy this airline operator’s shares after it upgraded its guidance just over a month after last upgrading it. Qantas is expecting to post underlying profit before tax of between $1.35 billion and $1.45 billion for the first half. This represents a $150 million increase to the guidance range given in October. Impressively, this is being achieved despite the company expecting to record its highest ever fuel bill.

The post 3 ASX 200 shares hitting new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising
• Macquarie is cooling off on its outlook for BHP shares. Should you?
• Why did the Mineral Resources share price just smash its all-time high?
• 5 ASX lithium shares to buy: brokers

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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating on this auto part company’s shares with an improved price target of $7.96. This follows the release of an update at Bapcor’s investor day event. Citi notes that the earnings upside from the Better than Before strategy is expected to >$100 million in FY 2025. This was better than it was expecting. Outside this, the broker continues to expect Bapcor to outperform in an increasingly challenging macro environment. The Bapcor share price is trading at $6.69 today.

Nanosonics Ltd (ASX: NAN)

A note out of Morgans reveals that its analysts have upgraded this infection prevention company’s shares to an add rating with a $4.91 price target. Morgans notes that Nanosonics has provided a four-month trading update which showed that revenue was up 42% over the prior corresponding period. The broker notes that this means Nanosonics is tracking ahead of guidance and consensus estimates. In light of this and share price weakness in 2022, the broker sees a lot of value in its shares. The Nanosonics share price is fetching $4.16 on Wednesday.

Temple & Webster Group Ltd (ASX: TPW)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this online furniture retailer’s shares to $7.60. According to the note, the broker likes Temple & Webster due to its nascent structural growth opportunity that it feels is underappreciated by the market. The broker believes investors should focus on the long term instead of near term revenue headwinds and uncertainty around the housing market. The Temple & Webster share price is trading at $5.05 this afternoon.

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

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More reading

• 11 ASX shares that make Abrdn’s World Cup team
• Why Fortescue, Healius, Nanosonics, and PEXA shares are dropping
• Why is the Nanosonics share price crashing 12% today?
• Why I think these beaten-up ASX shares are compelling contrarian buys
• Here are the 10 most shorted ASX shares

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 Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Bapcor and Temple & Webster Group Ltd. 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 an ASX share has what looks like a dividend yield of 18% on the table, it is more than enough to compel at least a few investors to take a closer look. That’s exactly what is happening with the Magellan Financial Group Ltd (ASX: MFG) sales price right now.

Yes, Magellan shares today have a trailing dividend yield of 18% on the table. Compare that with some other ASX dividend peers, and it looks even better. Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS) and Rio Tinto Limited (ASX: RIO) are all famous dividend payers on the ASX. But CBA shares are offering a dividend yield of ‘just’ 3.57% right now. For Telstra it’s 4.19%, and for Rio, 9.1%.

Magellan is running rings around its competition in this arena.

So this is a no-brainer buy, right? Buy some Magellan shares, get your capital back within six short years, and enjoy free dividend income from then until Judgement Day?

Well, not so fast.

Can Magellan shares really give investors an 18% dividend yield?

See, a dividend yield reflects the past, not the future. Magellan’s whopping 18% yield is derived from the last two dividend payments the company has made. There was the March interim dividend of $1.10 per share, and the final dividend of 68.9 cents per share from September.

Together, that is a total of $1.79 in dividend income for 2022. This gives Magellan a trailing dividend yield of 18% on the current share price of $9.94 (at the time of writing).

But for investors to receive an 18% yield going forward, Magellan must keep its dividend payouts at or above these levels. And that is going to be very difficult for this company.

Many ASX shares have a codified ‘dividend policy’ – Magellan is one of those shares.

Here’s what the company says its policy is when it comes to shareholder payouts:

The Company has a Policy of paying Interim and Final Dividends of 90% to 95% of the underlying net profit after tax of the Group’s funds management business, excluding any performance fees.

In addition to the Interim and Final Dividends, the Company has a policy of paying an annual Performance Fee Dividend of 90% to 95% of the net crystallised performance fees after tax. Any Performance Fee Dividends will be paid annually alongside the Final Dividend.

So in order to have steady or rising dividends, Magellan must first secure steady or rising net profits after tax.

Falling profits mean falling dividends

Well, that’s not what’s happening. In its full-year earnings results for FY2022, Magellan reported a 3% drop in adjusted net profits after tax to $399.7 million. The company’s profits before tax and performance fees fell by 11% to $470.6 million.

What’s worse, Magellan averaged a funds under management (FUM) figure of $94.3 billion across FY2022. As of 31 October 2022, this figure had dropped to $51 billion with $2.4 billion in fund outflows over October alone.

A fund manager makes the lion’s share of their profits from charging management fees on invested capital. Charging 1.35% on $94.3 billion of FUM is going to give you far more cash than 1.35% of $51 billion.

Thus, the likelihood of Magellan being able to even maintain its 2022 dividends next year, let alone grow them, is looking rather dire. If this is the case, investors won’t be receiving anything close to an 18% yield on cost if they buy Magellan shares today.

But then again, we don’t yet know what might happen. Magellan may be in some strife. But it is still a company with very little debt, and plenty of cash on its books.

Even if the company cuts its dividends by half next year, investors today would still enjoy a yield of around 9% on today’s pricing.

So anything could happen. But when it comes to the 18% figure, don’t be fooled. The fact that Magellan is trading on a trailing dividend yield of 18% right now is about as useful as a chocolate teapot.

The post Should I buy this ASX 200 share for its whopping 18% dividend yield? appeared first on The Motley Fool Australia.

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More reading

• Hamish Douglass has been selling down his Magellan shares. Should you?
• The Magellan share price has caved 50% so far this year. Are directors seriously asking for a pay rise?
• Here are the top 10 ASX 200 shares today
• 5 of the craziest things making news on the ASX this week
• Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch…

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation 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 ASX dividend share space is full of interesting names from a variety of sectors. While volatility has caused valuations to drop in many sectors, this could mean even bigger dividend yields because of lower share prices.

Nearly every investor has likely heard of names like Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG). But, after recent runs of their share prices, the yields they’re offing are seemingly a bit lower.

However, the below three names could be opportunities for both investment income and capital growth.

Metcash Limited (ASX: MTS)

Metcash is a business that supplies a wide range of independent liquor businesses and food retailers in Australia, including IGA. It also owns the hardware brands Mitre 10, Total Tools, and Home Timber & Hardware. In fact, it’s the second-largest player in both liquor and hardware in Australia.

Even though the business is seeing ongoing growth across its segments, the Metcash share price is down more than 10% since the start of May 2022.

In FY23, for the 23 weeks to 9 October, total group sales were up 7.7%. Food sales were up 2.6%, or 5.7% excluding tobacco. Hardware sales were up 17.1%. Liquor sales were up 12%.

The ASX dividend share’s sales were boosted by local neighbourhood shopping, improved competitiveness of independent retail networks, and inflation.

The business aims to pay “reliable dividends”, with a dividend payout ratio of approximately 70% of underlying net profit after tax (NPAT). According to Commsec, Metcash is expected to pay a grossed-up dividend yield of 7.5%.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is the largest retailer in Australia specifically for babies and their families.

There are a number of areas the business is working on. It’s investing in its e-commerce capabilities, trying to grow its market share from its core business, aiming to grow in new markets (including New Zealand), and improving its profit margins.

The ASX dividend share wants to expand its range, and grow its store network to at least 110 stores in Australia and at least 10 stores in New Zealand.

However, while total sales growth in FY23 to 7 October 2022 was 12%, the gross profit margin was down 230 basis points and net profit was down $3 million year over year. Competitor pricing is partly to blame, according to Baby Bunting, as well as an increase in costs.

In 2022 to date, the Baby Bunting share price is down more than 50%. In FY23, it’s expected to pay a grossed-up dividend yield of 7.7% according to Commsec.

Accent Group (ASX: AX1)

Accent is a leading shoe retailer in Australia. It sells a number of different brands including Dr Martens, Henleys, Hoka, Kappa, Vans, and The Athlete’s Foot.

The business is steadily growing its store network, which is increasing its scale and giving it the potential to sell more products.

The Accent share price has been rising in recent weeks. However, it’s still down 33% in 2022 to date. This has had a significant impact on the share’s expected forward dividend yield. Commsec numbers suggest the business will pay a grossed-up dividend yield of 8.3% in FY23.

A couple of weeks ago, the ASX dividend share announced that year-to-date sales were up 52%, while the gross profit margin was up 570 basis points (or 5.70%). It has focused on delivering full-price sales. The company is also expecting to open around 50 new stores in the first half of FY23.

The post 3 ultra-high-yield ASX dividend shares you might regret not buying at these prices appeared first on The Motley Fool Australia.

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More reading

• Almost ready to retire? Here’s why I’d be buying up ASX dividend shares right now
• Experts say these ASX dividend shares are buys today
• Experts name 2 ASX shares with fully franked dividend yields to buy next week
• 3 key things I look for when buying ASX dividend shares
• Analysts name 2 beaten down ASX dividend shares to buy

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 recommended Accent Group, Baby Bunting, and Metcash 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.6% to 7,223 points.

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

Calix Ltd (ASX: CXL)

The Calix share price is up 5% to $5.23. This morning the environmental technology company announced that it has signed an agreement with global building materials company, CEMEX. The two parties will work together to decarbonise the construction value chain through new Carbon Capture, Utilisation, and Storage (CCUS) projects.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 6% to $4.94. Investors have been buying this mineral exploration company’s shares following the release of a drilling update from the Julimar project. According to the release, recent drilling demonstrates the potential for material resource growth at Julimar, with several outstanding new intersections up to 650 metres beyond the current resource.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 5% to $6.18. This morning the airline operator surprised the market with a guidance upgrade just over a month after last upgrading it. Management expects the airline to post an underlying profit before tax of between $1.35 billion and $1.45 billion for the half. This represents a $150 million increase to the guidance range given in October.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has continued its positive run and is up a further 4.5% to $9.53. Investors have continued to buy coal miners on Wednesday. This may be on the belief that they are still cheap at current levels based on sky high coal prices. The Whitehaven Coal share price is up almost 250% in 2022.

The post Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising appeared first on The Motley Fool Australia.

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More reading

• Macquarie is cooling off on its outlook for BHP shares. Should you?
• Why is the Chalice Mining share price surging 10% on Wednesday?
• Qantas share price soars 6% on surprise profit guidance upgrade
• Here are the top 10 ASX 200 shares today
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

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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The BHP Group Ltd (ASX: BHP) share price is up around 1% today to $43.89 and 15% higher over the past 12 months.

Dubbed ‘The Big Australian’, BHP is now the biggest share of the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.

Over the long term, it is probably considered to be among the bluest of blue-chip shares. It is certainly a cornerstone of many retirees’ portfolios.

So, why is BHP among a bunch of ASX 200 shares kicked out of Macquarie’s model investment portfolios?

Macquarie turfs BHP from model portfolios

Brokers publish model portfolios to help their clients keep their investments up-to-date and growing.

However, changes to model portfolios do not indicate an official buy, sell, or hold recommendation.

According to The Australian, Macquarie has dropped several high-profile ASX 200 shares from its model holdings.

On the out is BHP and fellow ASX mining share South32 Ltd (ASX: S32). Also gone are ASX travel shares Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN).

Also turfed is Australia and New Zealand Banking Group Ltd (ASX: ANZ), Tabcorp Holdings Ltd (ASX: TAH), James Hardie Industries plc (ASX: JHX), and Seven Group Holdings Ltd (ASX: SVW).

Macquarie is forecasting a United States recession in 2023. It thinks the bottom of the market in Australia is six or seven months away.

Macquarie’s Matthew Brooks explains that the changes to the model portfolios were made to “reduce exposure to earnings risks, while still trying to minimise exposure to highly valued stocks”.

There was no specific commentary on BHP shares from the broker.

Morgans says buy the BHP share price

Another top broker, Morgans, has just named BHP shares among its best ideas again this month.

As my Fool colleague James reported yesterday, Morgans likes BHP for its dividends, operational diversity, and strong balance sheet.

Morgans has an add rating on BHP and a $47 share price target.

Morgans commented:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers.

The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors.

While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

The broker is tipping fully franked dividends of approximately $2.96 per share in FY23 and $2.99 in FY24.

The post Macquarie is cooling off on its outlook for BHP shares. Should you? appeared first on The Motley Fool Australia.

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More reading

• Why Calix, Chalice Mining, Qantas, and Whitehaven Coal shares are rising
• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive
• Looking to buy ANZ shares? Here’s why the ASX 200 bank is hitting headlines
• Qantas share price soars 6% on surprise profit guidance upgrade
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited, BHP Billiton Limited, Flight Centre Travel Group Limited, James Hardie Industries plc, Macquarie Group Limited, and Qantas Airways 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 recommended Flight Centre Travel Group Limited and Macquarie Group 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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