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  • If I’d invested $1,000 in Woodside shares at the start of 2022, here’s what I’d have now

    Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.

    Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.

    The Woodside Energy Group Ltd (ASX: WDS) share price has been one of the strong performers in S&P/ASX 200 Index (ASX: XJO) in 2022.

    Woodside is one of the world’s largest oil and gas shares. It has a market capitalisation of $60 billion according to the ASX.

    The business has become a lot larger this year. Woodside bought the oil and gas business of BHP Group Ltd (ASX: BHP), though being bigger doesn’t automatically mean that the share price will go up.

    How much $1,000 would have grown into

    In 2022, the Woodside share price has risen by around 40%. Though, it’s worth saying that past performance is not a reliable indicator of future performance, particularly with resource companies.

    The 40% return makes the calculation pretty easy. If I’d bought $1,000 of Woodside shares then this would have turned into $1,400.

    But, that’s just the capital growth of the business.

    Don’t forget that Woodside also pays large dividends to shareholders as well.

    The dividends that the energy giant has declared since the start of 2022 equate to a dividend yield of 14% (at the start of the year), excluding franking credits.

    That would add an extra $140 to the total return, so Woodside investors would have a total of $1,540 from investing $1,000 in the company at the start of the year.

    Why has the Woodside share price performed so well?

    Investors were expecting a strong result from Woodside in the 2022 half-year result as the ‘realised’ oil price more than doubled year over year to $96.40 per barrel of oil.

    Woodside Energy CEO Meg O’Neill had this to say at the time:

    Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets.

    Production for the half year was 19% higher at 54.9 million barrels of oil equivalent, benefiting from the contribution in the month of June of the former BHP assets and improved reliability at our LNG facilities.

    FY22 half-year operating revenue rose 132% year over year to US$5.81 billion and underlying net profit after tax (NPAT) was US$1.82 billion, an increase of 414%.

    Aside from higher prices, Woodside is also benefiting from the BHP merger, with the bigger scale of the business. At the end of August, Woodside said it had already delivered $100 million of the post-merger synergies – it’s actually targeting at least $400 million of annual synergies, which will improve profitability.

    Improved profitability can help the Woodside share price in the long run, though it will likely still be influenced by movements in the resource price.

    The post If I’d invested $1,000 in Woodside shares at the start of 2022, here’s what I’d have now appeared first on The Motley Fool Australia.

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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 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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  • These were the 5 worst-performing ASX All Ords shares in September

    A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share priceA man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

    The S&P/ASX All Ordinaries Index (ASX: XAO) had another month to forget in September, retreating 7.6% against a backdrop of rising interest rates and inflation woes.

    But while the market was feeling worse for wear, some ASX All Ords shares suffered even steeper falls. Let’s take a look.

    MoneyMe Ltd (ASX: MME)

    MoneyMe took out the unfortunate title of the All Ords’ worst performer in September. Its share price was nearly cut in half, tumbling by 47.8% to 46 cents.

    This was triggered by a $20 million capital raising, which was priced at a 28% discount to the last traded MoneyMe share price at the time. The company intends to use this money for growth, supporting debt facilities and transaction costs.

    MoneyMe announced this capital raising alongside its FY22 results, which saw revenue jump 148% to $143 million, aided by a mix of organic and acquisitive growth. 

    However, the company continues to burn through cash. While its net loss after tax blew out from $8 million in the prior year to $50 million in FY22. 

    Hastings Technology Metals Ltd (ASX: HAS)

    Similarly, ASX All Ords share Hastings Technology also came under pressure in September on the back of a capital raising. Hastings shares suffered a steep 36.6% fall across the month to finish at $3.46.

    The company announced a $110 million two-tranche placement at an offer price of $4.40 per share. This represented a 19% discount to the last traded Hastings share price of $5.41.

    Subject to shareholder approval, this will result in roughly 25 million new shares being issued, nearly one-quarter of the company’s existing share count.

    Proceeds from the cap raise will be used to advance the development of Yangibana, a rare earths project located in the Gascoyne region of Western Australia.

    PointsBet Holdings Ltd (ASX: PBH)

    Fresh off being kicked out of the ASX 200, the PointsBet share price drudged up a 35.9% loss in September. to close out the month at $1.86.

    It appears investors weren’t impressed with the company’s FY22 results. Revenue jumped by 52% to $296 million but operating expenses went through the roof, causing PointsBet’s net loss to balloon by 43% to $268 million.

    PointsBet shares continue to be among the most shorted on the ASX.

    Link Administration Holdings Ltd (ASX: LNK)

    The Link share price was also battered and bruised last month after the $2.5 billion takeover with Dye & Durham finally collapsed.

    Link shares tumbled 33.5% across the month to finish at $2.86, a long way from the takeover offer price of $4.81.

    After several twists and turns over many months, the deal failed to satisfy three conditions necessary for court approval. The most significant relates to the Woodford Matters and associated approval from the United Kingdom Financial Conduct Authority.

    Link adjourned the second court hearing multiple times but in the end, time ran out. With the outstanding conditions not satisfied, the court dismissed the proceedings and ultimately, the deal fell through.

    New Century Resources Ltd (ASX: NCZ)

    Finally, ASX All Ords share New Century’s woes continued in September as its shares crumbled by 33.1% to $1.07.

    For those unfamiliar, New Century describes itself as a mining, tailings management, and economic rehabilitation company. It’s focused on sustainably producing metal from resource assets while rehabilitating legacy impacts on the environment. 

    Investors didn’t appear pleased with New Century’s FY22 results. Revenue leapt by 47% to $408 million. But fair value adjustments and higher production costs led to the company’s net loss more than doubling to $28 million.

    The post These were the 5 worst-performing ASX All Ords shares in September appeared first on The Motley Fool Australia.

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    Motley Fool contributor Cathryn Goh 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 Link Administration Holdings Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • Why is the Core Lithium share price sinking 8% today?

    A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.

    A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.The Core Lithium Ltd (ASX: CXO) share price has returned from its trading halt and sunk into the red.

    In morning trade, the lithium miner’s shares are down almost 8% to $1.02.

    Why is the Core Lithium share price sliding today?

    The Core Lithium share price is sinking today after the company announced the completion of its institutional placement.

    According to the release, the company has raised $100 million before costs via a fully underwritten placement of ~97.1 million shares at $1.03 per new share.

    This represents a discount of 6.8% to where the Core Lithium share price was trading prior to its halt.

    Management advised that the placement received significant demand from numerous, high quality domestic and offshore institutions. It feels this provides a strong endorsement of its accelerated growth strategy at the Finniss Lithium Project.

    It also highlights that it has significantly strengthened its balance sheet, which will enable Core Lithium to fast-track exploration programs, expedite capital development initiatives, and pursue further organic and inorganic growth opportunities.

    Lithium sale

    The company also made another announcement, which has failed to prop up the Core Lithium share price.

    According to the release, the company has completed the first sale of a spodumene DSO product (1.4% Li2O) from its Finniss Lithium Project via a digital exchange platform. A cargo of 15,000 dry metric tonnes (dmt) DSO was tendered on a CIF basis to several pre-screened participants active in the lithium-ion battery supply chain.

    Demand for the spodumene DSO material was strong, which led to Core Lithium commanding a sale price of US$951/dmt. The shipment of the cargo is scheduled for late in the fourth quarter of 2022 from the Darwin Port.

    Core Lithium’s CEO, Gareth Manderson, commented:

    The completion of the spodumene DSO tender is an excellent result for Core and indicates the strong demand for lithium.

    The post Why is the Core Lithium share price sinking 8% today? appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • Here’s why the A2 Milk share price is storming higher today

    A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today

    A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices todayThe A2 Milk Company Ltd (ASX: A2M) share price is on the move on Monday morning.

    At the time of writing, the infant formula company’s shares are up 3% to $5.56.

    Why is the A2 Milk share price rising?

    Investors have been bidding the A2 Milk share price higher this morning following the release of an update on the company’s Chinese operations.

    According to the release, the company has renewed its exclusive import and distribution arrangements with China State Farm Agribusiness Holding Shanghai (CSFA) for a term of five years from 1 October 2022.

    CSFA has been A2 Milk’s strategic distribution partner in China since 2013 and is the exclusive import agent for its China label products.

    The release also notes that CSFA is a wholly owned subsidiary of China National Agriculture Development Group Co (CNADC), which is the parent company of China Animal Husbandry Group (CAHG). The latter holds a 25% interest alongside A2 Milk’s 75% interest in Mataura Valley Milk (MVM) located in New Zealand.

    Management commentary

    A2 Milk’s managing director and CEO, David Bortolussi, commented:

    We are pleased that our long-standing arrangements with China State Farm have been renewed for a term of five years through to the end of September 2027. The extension of arrangements with China State Farm confirms the strength of our relationship with key partners in China and our shared confidence in the future We are grateful for China State Farm’s ongoing support and our relationship with CNADC group which will be critical to our joint success in China going forward.

    This sentiment was echoed by the chairman of CSFA, Mr Zhang Lei. He said:

    The a2 Milk Company has been an important strategic partner of ours for many years. We are delighted and honoured to continue our relationship and partnership with a Company that has achieved such unique success, as the pioneer of A2 protein products in the China market, with a strong brand and ultra-premium products. This renewal signals the strength of our long-term partnership and we look forward to the future with great excitement.

    The post Here’s why the A2 Milk share price is storming higher today appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • This high-yielding ASX 200 share is trading ex-dividend tomorrow

    A young investor working on his ASX shares portfolio on his laptopA young investor working on his ASX shares portfolio on his laptop

    The Sims Ltd (ASX: SGM) share price will be on watch tomorrow as the ASX 200 metals company turns ex-dividend.

    Tomorrow, Sims will be taking away entitlements to its partially franked final dividend of 50 cents per share.

    This means that today is the final day to lock in this dividend, which will be paid on 19 October.

    Investors buying Sims shares tomorrow won’t score the latest dividend. But they’ll likely be able to pick up shares at a reduced price.

    This is because a company’s shares usually fall on the day they turn ex-dividend as the value of the dividend leaves the share price.

    While the extent of the drop is influenced by market sentiment, it’s usually in relative proportion to the size of the dividend.

    Given that Sims’ final dividend equates to a yield of around 3.7%, the Sims share price will likely come under fire tomorrow as shares turn ex-dividend.

    Did Sims crush it in FY22?

    FY22 was a bumper year for Sims. Revenue jumped by 57% to $9.3 billion, driven by a combination of higher sales volumes and higher sales prices.

    This strong growth flowed through to earnings as the company delivered its best underlying earnings before interest and tax (EBIT) results on record. Underlying EBIT nearly doubled to $756 million.

    In terms of segment performance, North America Metal achieved the largest improvement in underlying EBIT, which surged by 114% to $293 million. This was driven by higher trading margins and higher volumes on the back of strong demand from domestic and export markets. Recent acquisitions also had a hand in the growth.

    Commenting on the results, CEO and managing director, Alistair Field said:

    I am proud that we delivered the strongest Underlying EBIT result on record and significant trading margin and volume increases. I am also pleased that return on productive assets grew by 16.0 ppts to 39.0%, and cash flow from operations increased by 323.3%, enabling us to lift our cash distribution to shareholders, while maintaining our balance sheet strength.

    On the back of these results, Sim declared FY22 dividends of 91 cents per share, partially franked. This represents a mammoth 117% hike from the annual dividends of 42 cents declared in the prior year.

    At current prices, Sims shares are spinning up a trailing dividend yield of 6.8%.

    The company is also delivering further returns to shareholders through an on-market share buyback.

    What’s the outlook for the Sims share price?

    In response to Sims’ FY22 results, broker Goldman Sachs retained a neutral rating on Sims shares.

    Goldman remains positive on the long-run demand trend for scrap metal. However, the broker is forecasting a ~50% drop in Sims’ EBIT in FY23 as global scrap prices head south and global steel demand weakens.

    Goldman has a 12-month price target of $16.70 for Sims shares, which implies a potential upside of 20% from current levels.

    The Sims share price last traded at $13.38. It’s tumbled by 38% over the past six months but zooming out over the past year, Sims shares have gained 6%.

    In comparison, the S&P/ASX 200 Index (ASX: XJO) has backpedalled by 14% and 10% over the last six and 12 months, respectively.

    The post This high-yielding ASX 200 share is trading ex-dividend tomorrow appeared first on The Motley Fool Australia.

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    Motley Fool contributor Cathryn Goh 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 no. 1 quality that top stocks share (and it’s not even close)

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

    A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.

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

    The stock market sell-off has compressed the valuations of good and bad businesses alike. All three major indexes — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite — are in a bear market. And while it may be tempting to go bottom fishing by scooping up shares of stocks that are down big off their highs, the safer and potentially more rewarding route is to simply stick with top companies that stand out from the competition.

    Investors categorize stocks into buckets — like growth stocks versus value or dividend stocks. But no matter the size of the company or its industry, there’s one key trait that all top stocks share: consistency. Here’s why investing in consistent companies can be an excellent strategy for outlasting a prolonged bear market.   

    Setting expectations

    Consistency can take different forms depending on the company. But as a rule of thumb, consistent businesses are those that bridge the gap between expectations, financial goals, and real results.

    As a recent example, FedEx‘s (NYSE: FDX) inability to forecast accurately caused the largest single-day percentage stock decline in company history. The shipping specialist’s upbeat tone and record guidance from late June proved to be way off base after it called for lower-than-expected first-half fiscal 2023 results and failed to provide full-year fiscal 2023 guidance.

    FedEx has a track record of inconsistency that dates back to the peak of the U.S.-China trade war in 2018, when the company produced lower-than-expected results and routinely missed guidance. FedEx may be an inexpensive stock with a decent dividend yield. And it could even be a nice turnaround play. But it is far less consistent than its peer, United Parcel Service (NYSE: UPS).     

    UPS has a better track record than FedEx of hitting its financial guidance, navigating challenges, and deploying capital efficiently without overspending. The package delivery industry is cyclical and capital-intensive. UPS and FedEx depend on a blend of business-to-business and business-to-consumer deliveries to domestic and international buyers. Both companies sport incredibly sophisticated supply chains, logistics, and distribution networks. Labor and fuel costs are high, making forecasting an essential quality of a good package delivery company. No one has a crystal ball. But being roughly right when it comes to accurately predicting buyer behavior separates an excellent package delivery company like UPS from an OK one like FedEx.

    In sum, the main differentiating factor between these two companies isn’t their dividend yields, valuation, or even a year’s worth of revenue or earnings. Rather, it is the ability of UPS to better leverage its resources and capital to execute on goals and limit disappointing shareholders. 

    Delivering on long-term targets

    Another core trait of consistent companies is their ability to deliver on long-term targets. For some companies, that could simply mean growing the dividend and supporting it with free cash flow (FCF) or sustaining a high profit margin while growing the top line. For others, it could mean bringing a new product or service to market and increasing customer adoption and retention.

    Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. It wasn’t long ago that investors questioned the feasibility of Apple’s wearables, its penetration into wireless earbuds, its ability to continue generating growth from its phones and computers, and the establishment of its services segment. Apple has proven that it has arguably the strongest consumer electronic product ecosystem of any company in the world. Its ability to make new versions of its flagship products while also integrating new products and services into the ecosystem has led to sustained growth, high margins, efficient use of capital, and outsized profits.

    Apple has shown that despite its size, it can still grow quickly and drive shareholder value through organic growth and boosting earnings per share through buybacks. The below chart says it all.

    AAPL Shares Outstanding data by YCharts

    In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. Apple’s ability to reinvest capital efficiently in its business and still have plenty of dry powder to buy back its own stock is a testament to the success it has had with hitting its long-term goals of product innovation and vertically integrating its business with both hardware and software. Companies a fraction of the size of Apple tend to have trouble growing profits at a faster rate than revenue. But Apple’s ability to drive profits at a faster rate than sales is an example of its pricing power and loyal customer base. 

    Profiles in consistency

    UPS and Apple are just two examples of the many consistent companies that are on sale now. Although they are in different industries and have little in common as companies, they are very similar investments. At the end of the day, long-term investing aims to find companies that can continue delivering growth over time.

    For UPS, growth results in a larger dividend, the expansion of routes and services, and branching into new markets such as healthcare and automotive. 

    In Apple’s case, growth results in share buybacks, product development, and expanding its ecosystem to retain existing customers, boost revenue per customer, and attract new customers into the ecosystem. 

    By understanding what consistency looks like, an investor can put their hard-earned savings to work in quality companies no matter the industry. 

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

    The post The no. 1 quality that top stocks share (and it’s not even close) appeared first on The Motley Fool Australia.

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    Daniel Foelber 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 Apple and FedEx. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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  • 2 ASX dividend shares that have doubled their payouts in 5 years

    A woman looks shocked as she drinks a coffee while reading the paper.A woman looks shocked as she drinks a coffee while reading the paper.

    Some ASX dividend shares haven’t grown their dividends over the last few years. But, a select few are now paying substantially more than they were five years ago.

    Businesses that have been growing profits have the financial flexibility to pay shareholders larger payments.

    While it’s hard to say what the next five years will look like, I think it could be interesting to look at some ASX dividend shares’ growth performance, their current yields, and what they’re expected to pay next.

    Dicker Data Ltd (ASX: DDR)

    Dicker Data describes itself as a technology hardware, software, cloud, cybersecurity, access control and surveillance distributor.

    In FY22 so far it has paid 26 cents per share, which represents two of the expected four quarterly payments.

    In the first half of FY17 it paid 8 cents per share, so HY22 represents an increase of 225%. Indeed, the FY22 half-year dividend is 55% more than the entire FY17 dividend.

    At the current Dicker Data share price, the last four dividends from the ASX dividend share amount to 50 cents per share, equating to a grossed-up dividend yield of 7%.

    The broker Morgan Stanley currently has an overweight (buy) rating on Dicker Data with a price target of $14. That suggests that the Dicker Data share price could go up by more than 30% over the next year.

    In FY23, the broker expects Dicker Data to pay a grossed-up dividend yield of 5.7%.

    Pinnacle Investment Management Group Ltd (ASX: PNI)

    Pinnacle Investment Management is a business that invests in other asset managers and helps them grow by enabling them to focus on the investing side of things. Pinnacle can offer services like distribution and client services, middle office and fund administration, compliance, finance, legal and so on.

    It is invested in fund managers like Plato, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah and Five V. Pinnacle tries to invest in some of the leading fund managers around.

    In FY22, the ASX dividend share paid an annual dividend of 35 cents per share. In FY17 it paid an annual dividend of 7 cents per share. That means it has increased its dividend by 400% in that time.

    At the current Pinnacle share price, it has a trailing grossed-up dividend yield of 6%.

    The broker Macquarie currently rates Pinnacle as a buy, with a price target of $11.78. That’s a potential rise of around 40% over the next year.

    In FY24, the broker is currently predicting Pinnacle could pay a grossed-up dividend yield of 7%.

    The post 2 ASX dividend shares that have doubled their payouts in 5 years appeared first on The Motley Fool Australia.

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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 Dicker Data Limited and PINNACLE FPO. The Motley Fool Australia has positions in and has recommended Dicker Data Limited and PINNACLE FPO. The Motley Fool Australia has recommended 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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  • Will the Westpac share price rebound in October?

    Illustration of men and women pushing share price graph up

    Illustration of men and women pushing share price graph upThe Westpac Banking Corp (ASX: WBC) share price has been drifting lower in recent times – can things turn around for the ASX bank share?

    It’s down close to 10% since mid-August and down 14% since early June.

    But, that could seem strange considering the Reserve Bank of Australia (RBA) interest rate is going up. There has long been a thought that higher interest rates would lead to higher profitability for banks by boosting the net interest margin (NIM).

    The NIM measures how much profit banks are making on their lending, by looking at the overall lending rate and the cost of funding its loans (from places like savings accounts).

    However, bank investors don’t seem excited by the quickly-rising interest rate from the RBA. Australia’s central bank has been increasing the interest rate by 50 basis points per month over the last few months.

    Why has the Westpac share price been going backwards?

    The reason for the decline, aside from the general market declines, could be that the pace of interest increases surprised investors. Small increases would probably have been useful for the banks. But, these quicker increases could cause issues for the loan book because borrowers may run into financial issues if they can’t afford their much-higher repayments.

    The FY22 half-year result was also mixed. Year over year, revenue was down 8% and cash earnings declined by 12%. It reported a return on equity (ROE) of 8.7%, down from 10.75% in FY19.

    Westpac told investors that its net interest margin (NIM) was down as competition for lending and low interest rates impacted margins.

    What could October bring?

    I think Westpac’s share price will likely be influenced by the ongoing volatility of the market. The Friday trading of the US share market saw another sell-off. For example, the S&P 500 Index (SP: .INX) fell 1.5% on Friday.

    This week, the RBA is expected to increase the interest rate again in October.

    As reported by Finder, its RBA cash rate survey of 39 experts and economists pointed almost unanimously to another basis point increase, meaning that the cash rate will rise to 2.85% in October.

    While the business doesn’t report its FY22 result this month, investors may be thinking about what it might say when it reports on 7 November 2022.

    There could also be plenty more volatility in relation to energy markets, the Russian invasion of Ukraine and so on.

    Will the Westpac share price rise from here?

    Without a crystal ball, it’s hard to say.

    However, the broker Citi seems very bullish on Westpac, with a price target of $30. That implies a possible rise of over 40% over the next 12 months. It’s expecting Westpac to earn much more profit in FY23, with a rise in the NIM.

    If Westpac meets Citi’s projections, the Westpac share price is valued at under 9 times FY23’s estimated earnings with a possible grossed-up dividend yield of 11%.

    Macquarie thinks banks will benefit from higher NIMs, but there could be trouble down the track with loan quality. It has a price target of just $22.25 on Westpac, putting the bank at under 12 times FY23’s estimated earnings.

    The post Will the Westpac share price rebound in October? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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  • Here are the 10 most shorted ASX shares

    The words short selling in red against a black background

    The words short selling in red against a black background

    At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted share on the ASX after its short interest rose to 15.5%. Concerns over the travel market recovery saw Flight Centre’s shares sink to a 52-week low last week.
    • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 13.9%. This betting technology company’s shares appear to have been targeted due to their lofty valuation and its cash burn.
    • Block Inc (ASX: SQ2) has seen its short interest rise slightly to 10.6%. Short sellers may be going after this payments company due to tech sector weakness, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry.
    • Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up week on week. A short report from a renowned short seller reveals that it is targeting the company largely due to doubts over its DLE technology.
    • Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.8%. Valuation concerns and significant weakness in the tech sector are likely to be behind this short interest.
    • Nanosonics Ltd (ASX: NAN) has short interest of 8.1%, which is up slightly week on week. Short sellers continue to target this infection prevention company amid concerns over its disruptive business model change in the key US market.
    • Breville Group Ltd (ASX: BRG) has seen its short interest rise to 7.8%. This may be due to concerns over what the uncertain economic backdrop could mean for consumer spending.
    • Inghams Group Ltd (ASX: ING) has short interest of 7.8%, which is down slightly week on week. Concerns over higher input costs may be behind this short interest.
    • Zip Co Ltd (ASX: ZIP) has seen its short interest rebound slightly to 7.8%. Doubts over the company’s profitability targets have been weighing on sentiment this year.
    • Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 7.6%. This fund manager’s shares have dropped 36% in 2022. It appears as though short sellers see more pain ahead.

    The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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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  • Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds

    A couple working on a laptop laugh as they discuss their ASX share portfolio.A couple working on a laptop laugh as they discuss their ASX share portfolio.

    ASX dividend shares could be an interesting place to look for income. Yields on bonds are increasing as interest rates rise. But, dividend yields on ASX dividend shares are also going up.

    As share prices go down, it pushes the prospective dividend yield up as well as making the actual valuation more attractive.

    Looking at an example of bond yields, the exchange-traded fund (ETF) Vanguard Australian Government Bond Index ETF (ASX: VGB), Vanguard says that the running yield here is 2.89% and the yield to maturity is 3.66%.

    I’m going to list a few ASX dividend shares that could provide better income than bonds for investors wanting to invest $5,000.

    APA Group (ASX: APA)

    This business owns a national gas pipeline, it transports around half of the country’s natural gas usage. It also has various energy generation (gas and renewable) and storage assets.

    The yield has been pushed up by APA shares falling by around 20% since early August. It’s expecting to pay a distribution of 55 cents per security, which would be a 3.8% increase compared to FY22. The FY23 distribution yield is expected to be 5.75%.

    APA Group has recently committed to reducing its emissions by 30% in gas transmission, reducing emissions intensity by 35% in power generation, and implementing an active program to reduce emissions it can control in electricity transmission.

    The business has one of the longest-running consecutive annual dividend increases in the S&P/ASX 200 Index (ASX: XJO).

    Collins Foods Ltd (ASX: CKF)

    Collins Foods is a major franchisee of KFC outlets across Australia and Europe. It also has a growing Taco Bell network in Australia.

    The business has continued to grow its revenue and profit. FY22 revenue increased 11.1% to $1.18 billion, while underlying net profit after tax (NPAT) from continuing operations improved by 25% to $59.7 million.

    The ASX dividend share saw its dividend rise by 17.4% to 27 cents per share. At the current Collins Foods share price, it has a trailing grossed-up dividend yield of 4.4%.

    It continued to see sales growth in the first seven weeks of FY23, particularly in Europe. KFC Netherlands has seen same-store sales growth of 12.2% and KFC Germany with 19.4% sales growth. It’s planning to open nine to 12 KFC Australia restaurants, two to five KFC Europe restaurants and nine to 12 Taco Bell restaurants. It wants Taco Bell to reach scale within three years.

    The broker Morgans, which rates Collins Foods as an add with a price target of $11.50, thinks that Collins Foods will pay a grossed-up dividend yield of 4.6%.

    Accent Group Ltd (ASX: AX1)

    Accent is an ASX retail share that sells a variety of shoe brands, both owned brands and ones it acts as a distributor for. Examples of the brands include CAT, Dr Martens, Glue Store, Henleys, Hoka, Hype, Kappa, Nude Lucy, Sneaker Lab, Stylerunner, The Athlete’s Foot and Vans.

    While it suffered from store closures due to COVID restrictions in FY22, it can benefit from a full year of ‘normal’ trading days in FY23. That may explain some of the 48.9% sales growth that it saw in the first seven weeks of FY23. Its gross profit margin was also “well ahead” of FY22. The business is also hoping to open 50 stores in FY23.

    Morgans rates this one as an add as well, with a price target of $2. It thinks the business could pay a grossed-up dividend yield of 10%.

    The post Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds appeared first on The Motley Fool Australia.

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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 Collins Foods Limited. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool Australia has recommended Accent Group and 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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