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Shares of banking major National Australia Bank Ltd (ASX: NAB) have left plenty to be desired in 2022.

In what’s traditionally a supportive economic climate for banks – higher interest rates, strong historical mortgage growth, downturn in business cycle – NAB hasn’t managed to step up to the plate this year.

Instead, the share has covered a large range and only secured around a 3% gain year to date.

What’s to like about NAB?

The banking major secured a strong first-half performance, growing interest income to $7.1 billion with total revenue of $8.23 billion, each up roughly 2% from the previous half.

Meanwhile, the return on equity (ROE) was 11.1%, around 60 basis points higher than the six months prior.

Hence, the bank enters the remainder of 2022 both well capitalised and in a profitable position.

Not to mention, on its current market capitalisation of $94.7 billion, NAB certainly has the size factor that may help smooth volatility for equity investors’ portfolios.

It also trades on a trailing 4.7% dividend yield and is forecast to deliver a $1.50 per share dividend in FY23 and $1.70 per share in FY24, according to analysts at Goldman Sachs.

At the current market cap, this represents a 5% and 5.7% forward dividend yield, respectively.

There are also no questions over the bank’s financial health either. NAB’s capital adequacy ratios – Tier 1, Core Tier 1, and Tier 2 figures – are within satisfactory ranges with no volatility in recent years.

It’s not all so rosy…

So, the above illustrates that NAB is perhaps a great company [on financial reporting metrics] but we are investors and need to understand if the great company is also a great investment.

One important factor to consider is the bank’s corporate value, made up of its earnings and investments. We record these in shorthand using ratios.

Below is a table that compares National Australia Bank to the other banking majors:

Name	P/E	Estimated Forward P/E	Dividends Per Share (DPS)	Div. Yld (%)	Price to Book	Price to Sales
National Australia Bank Ltd	15.93	13.97	2.00	6.68	1.51	5.58
Sector average	11.15	9.55	1.15	9.48	2.96	3.07
Group median	11.27	9.13	0.60	8.91	1.05	2.88
Commonwealth Bank of Australia	17.40	17.62	5.50	5.84	2.20	6.35
National Australia Bank Ltd	15.93	13.97	2.00	6.68	1.51	5.58
Westpac Banking Corp	15.63	10.83	1.73	8.03	1.05	3.51
Australia and New Zealand Banking Group Ltd	11.55	9.90	2.04	8.67	1.11	3.68
Bendigo and Adelaide Bank Ltd	10.96	10.48	0.76	8.91	0.72	2.81
Bank of Queensland Ltd	10.98	8.85	0.63	9.16	0.72	3.42
NAB’s Premium/Discount to Group	41.4%	53.0%	not comparable	-25.1%	44.1%	93.5%

As can be seen, the share trades at a premium to peers within its peer group based on the metrics above.

It’s fair to ask what kind of bang NAB investors are getting for their buck as, ideally, one would like to be paying a discount to access the bank’s strengths, not a premium.

There are also macroeconomic headwinds that must be considered in the investment debate. There is no denying that a downturn in the Australian economy could spell further losses for NAB shares, particularly given the bank’s significant exposure to the domestic mortgage market.

This is coupled with higher lending rates from the banks. Although that should theoretically lift net interest income, given increased competition within the Australian mortgage market, the margin on this income has thinned.

In terms of valuation, NAB shares are trading at a premium to the bank’s peers (unjustifiably so), however, recent earnings trends to date have been strong.

Meanwhile, the NAB share price is floating today and is currently down 0.63% to $29.77.

The post NAB shares: Boring or beautiful? appeared first on The Motley Fool Australia.

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More reading

• Looking to buy CBA shares? Here’s how the bank’s balance sheet stacks up
• The NAB share price has gained 10% in 3 months. Too late to buy?
• Which ASX 200 bank share will win the great tech battle?
• Why has the NAB share price tanked 3% today?
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended 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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The Arafura Resources Limited (ASX: ARU) share price is among one of the best performers on the ASX today.

This comes despite the company not releasing any announcements to the market since its presentation at the Emerging Leaders Conference.

At the time of writing, the rare earth developer’s shares are up 8.22% to a 3-month high of 39.5 cents.

Let’s take a look at what is driving this charge behind Arafura shares.

What’s pushing Arafura shares into positive territory?

In a sea of red across the ASX Indices, the S&P/ASX 200 Materials Index (ASX: XMJ) is heading the opposite direction to climb 0.88%.

A number of ASX shares in the lithium and critical minerals industry are gaining ground because of the quarterly rebalance that takes effect today.

The S&P Dow Jones Indices announced the S&P/ASX Indices changes at the beginning of this month.

The inclusion of Arafura in the S&P/ASX 300 Index provides a much-welcomed boost for the company’s shares.

This is because fund managers must abide by their investing mandate which permits them to only buy shares included in specific indices.

Each index comprises a number of companies that have the largest market capitalisation of that group.

Arafura share price recap

From September 2021 to March this year, the Arafura share price moved in circles trading in the mid-teens range.

However, its shares rocketed by more than 130% in the following days of the company being granted a government award.

After hitting a multi-year high of 50 cents in June, Arafura shares have come back down to trade around under 40 cents.

Year-to-date, the share is up 83%.

Based on today’s price, Arafura presides a market capitalisation of approximately $629.47 million.

The post Why is the Arafura share price rocketing 8% today? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares having a cracking Monday
• The Arafura Resources share price is down 7% this morning
• Why investors might be getting excited about Arafura shares
• Arafura defies sell-off in ASX mining shares to stay buoyant. Is this why?
• 3 ASX mining shares that rocketed more than 15% on Monday

Motley Fool contributor Aaron Teboneras 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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ASX lithium shares continue to draw massive investor interest.

Just how much interest?

Well, Pilbara Minerals Ltd (ASX: PLS), as one example, has seen trades worth more than $110 million go through today already, just halfway through the lunch hour.

With more buyers than sellers, that trading action puts the Pilbara Minerals share price back into new all-time high territory, even as the All Ordinaries Index (ASX: XAO) dips into the red.

Pilbara shares closed on Friday trading for $4.59 and are currently fetching $4.81 apiece, up 4.8%. That takes out the previous all-time (closing) high of $4.74, which the miner hit on 13 September last week.

With today’s gains factored in, the Pilbara Minerals share price is up a stellar 134% over the past 12 months.

And Pilbara is just one of three ASX lithium shares notching new record highs today.

Also hitting intraday record highs today

Iris Metals Ltd (ASX: IR1) shares are also at new all-time highs in mid-day trading.

The ASX lithium share closed Friday at $2.12 and is currently trading for $2.38, up 12.3%. Iris hit a fresh record only two trading days ago, closing for $2.17 per share on 15 September. Investors with the foresight to buy shares this time last year will now be sitting on eye-popping gains of 1,020%.

And the third ASX lithium share which, briefly, shot into new record high territory today is Global Lithium Resources Ltd (ASX: GL1).

Global Lithium closed on Friday trading for $2.78. Investors bid the Global Lithium share price up to $2.94 in the first hour of trade, taking out the previous closing high of $2.93 set on 15 September.

However, the tide turned for this ASX lithium share in later trade, and it’s since fallen to $2.69. Don’t feel too bad for long-term shareholders though. The Global Lithium share price is still up 587% over the last 12 months.

What’s driving investor interest in ASX lithium shares?

None of the three companies mentioned above has released any price-sensitive information today.

And the lithium price, while still trading right near its own record highs, also hasn’t shot higher.

So, today’s investor interest in ASX lithium shares is likely driven by the strong, long-term outlook for lithium prices. Atop some bargain hunting following Friday’s broad sell-off.

Lithium is a key element in the batteries that power electric vehicles (EVs). And with the global EV market growing fast, and forecast to continue booming amid the global push to decarbonise, demand for the lightweight, conductive metal is likely to remain robust.

The post 3 ASX lithium shares smashing new, all-time highs on Monday appeared first on The Motley Fool Australia.

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More reading

• Can the Pilbara Minerals share price continue stretching higher?
• ASX lithium mania: Is the ‘incredible amount of interest’ sustainable?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX lithium shares take a beating on Friday
• Why is the Pilbara Minerals share price in reverse today?

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

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The Endeavour Group Ltd (ASX: EDV) share price is out of form again on Monday.

In afternoon trade, the drinks company’s shares are down over 1% to $7.08.

This means the Endeavour share price is now down 15% since this time last month.

Is the Endeavour share price good value?

While the recent weakness in the Endeavour share price may be disappointing for shareholders, one leading broker sees it as a buying opportunity for the rest of us.

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $8.10 price target on the company’s shares.

Based on the current Endeavour share price, this implies potential upside of over 14% for investors over the next 12 months.

Goldman is also expecting an attractive ~3% dividend yield from its shares in FY 2023, which stretches the total potential return beyond 17%.

What did the broker say?

The broker notes that the Tasmanian government intends to introduce a state-wide player card system to provide harm protection to those most at risk of problem gambling.

This would limit player losses to a maximum of $100 per day, $500 per month, or $5000 per year.

However, Goldman believes this will have an immaterial impact on Endeavour’s performance due to the size of the Tasmanian market. And even if the same system was introduced across the country, its analysts don’t believe the impact will be overly material.

The broker commented:

EDV has 150 Gaming Machines in TAS (c. 1.2% of total machines) which we estimate contributes to A$6mn in revenue (0.1% of group).

We do not see any signs of this impacting any other states; however, if this was to be extrapolated outside of Tasmania, we estimate that 3.75% of industry gaming expenditure would be impacted, translating to 0.3% of sales or 3.8% of PBT for EDV.

And while Goldman acknowledges that this could weigh on sentiment slightly, it continues to rate Endeavour’s shares as a buy and remains very positive on the company’s long term growth outlook. It concludes:

In our view, while this may offer short term overhang, we have a more constructive view on EDV’s longer term growth aspirations as it may accelerate the speed of independent publicans exiting the industry due to the increasing cost and complexity of the operating environment. Given we see an immaterial impact of the standalone Tasmania announcement and no signs of roll-out beyond Tasmania, we make no changes to our existing forecasts and maintain our Buy rating.

The post Goldman Sachs tips major upside for the Endeavour share price appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Attention Endeavour shareholders: Here’s some news on your dividends
• 5 things to watch on the ASX 200 on Friday
• How do Endeavour’s dividends stack up against its old parent Woolworths?
• Here are the top 10 ASX 200 shares today

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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Eagle-eyed market watchers might have noticed a distinct change to the S&P/ASX 200 Index (ASX: XJO) this morning.

There are eight new faces on the index after the latest quarterly rebalance took effect prior to the market’s open.

Generally, being added to the ASX 200 boosts a company’s share price as funds tracking the index are forced to snap up its stock. However, it’s likely that most of that action has been completed by now.

Let’s take a look at how the newbies are settling in among many of the market’s iconic names.

After kicking the day off in the green, the ASX 200 is down 0.16% right now.

How are the ASX 200 newbies performing?

Eight companies found themselves added to the ASX 200 this morning after S&P Dow Jones Indices’ September rebalance came into effect.

And leading the pack of newcomers is John Lyng Group Ltd (ASX: JLG). Shares in the building services company have gained 1.8% to trade at $6.17 at the time of writing.

Coming in second best are shares in New Zealand telco Spark New Zealand Ltd (ASX: SPK). The Spark share price has lifted 1% to $4.525 right now.

Also trading higher are ASX 200 newbies Lovisa Holdings Ltd (ASX: LOV) and Charter Hall Social Infrastructure REIT (ASX: CQE). They’ve both gained 1% to trade at $22.75 and $3.495 respectively.

Meanwhile, shares of Karoon Energy Ltd (ASX: KAR) have lifted 0.2% to $2.015 while Capricorn Metals Ltd (ASX: CMM) stock is up 0.3% at $2.88.

Sadly, not all shares are celebrating their addition to the index today.

Stock in Smartgroup Corporation Ltd (ASX: SIQ) has fallen 0.5% to trade at $5.395.

But the greatest suffering is being felt by the newly-crowned ASX 200 lithium share.

The share price of emerging lithium producer Sayona Mining Ltd (ASX: SYA) is tumbling 7.9% to 26.7 cents despite the company’s silence.

The post The ‘in’ crowd: How are the ASX 200 newcomers performing today? appeared first on The Motley Fool Australia.

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More reading

• Sayona Mining share price swings wildly on ASX 200 debut
• The ASX 200 is getting a shakeup today. Here’s the tea
• Here’s why this ASX 200 retail share is on my buy radar
• 5 things to watch on the ASX 200 on Monday
• Broker names 2 top ASX shares to buy

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 Johns Lyng Group Limited. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET. The Motley Fool Australia has recommended Johns Lyng Group Limited and Lovisa 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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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.

It has been a tumultuous year in crypto, with prices falling dramatically since the start of the year but rallying this summer. Massive catalysts that will bring permanent changes to the second-largest cryptocurrency and the crypto world have arrived. With all of this going on, it’s a good time to keep a long-term perspective and look at three top cryptocurrencies to buy and hold forever. 

1. Ethereum

The Merge, Ethereum’s (CRYPTO: ETH) long-awaited transition from the proof-of-work consensus to proof of stake, was completed last week. 

While it has become a common misconception that The Merge will speed up transactions on the Ethereum network and lower fees, there will be other benefits. The transition to proof of stake will enable more Ethereum holders to participate in earning rewards from the network because they can now stake their Ethereum to earn a cut of transaction fees. While holders need to have 32 Ethereum and meet several other requirements to do this, plenty of third-party services like Coinbase (NASDAQ: COIN) allow customers with smaller amounts of Ethereum to commit their Ethereum to staking pools to earn interest. Coinbase currently pays out an annual percentage yield of 3.25% on staked Ethereum.

The Merge will also dramatically reduce Ethereum’s carbon footprint, because power-hungry mining equipment will no longer be running night and day to produce blocks of Ethereum. Some sources estimate that Ethereum’s pre-Merge energy consumption was equivalent to that of a country like Chile. Experts predict that the switch to proof of stake will reduce this energy intensity by over 99%, which is a big deal for the planet and for investors who may now feel more comfortable investing in Ethereum. 

The great thing about holding Ethereum for the long term is that while The Merge is a huge deal, Ethereum’s developers aren’t stopping there. Vitalik Buterin, Ethereum’s co-founder, estimates that the blockchain will only be at 55% of its potential after The Merge. The Merge paves the way for sharding, in which the blockchain is split into many chains to ease congestion on the network, which should eventually help improve speed and lower fees once fully implemented. The level of progress so far and the future ambition make Ethereum, the second biggest crypto by market value, an asset to buy now and hold forever.  

2. Bitcoin 

While all eyes have been on Ethereum ahead of The Merge, Bitcoin (CRYPTO: BTC) has been quietly rebounding, gaining about 15% since hitting its cycle low of $17,664 in mid-June. 

After The Merge, Bitcoin, the No. 1 crypto by market value, will stand alone as the major proof-of-work asset atop the crypto world. Bitcoin proponents view Bitcoin’s proof-of-work consensus as more secure than proof of stake and believe that The Merge will enhance Bitcoin’s image as a secure decentralized network. I believe that both proof of work and proof of stake have their own merits and I view owning both Bitcoin and Ethereum as the most sensible approach for investors.  

Some have questioned Bitcoin’s status as an inflation hedge as the price of Bitcoin has fallen this year in part due to rising inflation in the U.S. But it’s important to remember that Bitcoin is a global network with users all over the world. Despite its decline this year, it still represents a viable and accessible safe-haven asset for individuals in countries with rampant long-term inflation, such as Turkey and Venezuela. The maximum supply of 21 million Bitcoin is an appealing feature in a world where governments are printing ever-increasing amounts of currency, decreasing the purchasing power of the existing currency in the process. I don’t know if the price of Bitcoin will be higher or lower a week from now, but I feel good owning it as a potential hedge against future inflation and believe all investors can benefit from owning even just a small amount in their portfolios.  

3. Ravencoin 

With a market cap of $530 million and a ranking of 71 in terms of market cap, Ravencoin (CRYPTO: RVN) is much smaller and less established than Bitcoin or Ethereum. There is thus more risk when investing in Ravencoin, but there is substantial upside as well. Unlike Bitcoin and Ethereum, which have price points in the thousands of dollars, you can buy Ravencoin for just about $0.06. Ravencoin has posted a scintillating performance this summer, with a gain of more than 50% in the past 30 days alone.

Ravencoin’s summertime surge is because it is a proof-of-work crypto that can be mined with GPU (graphics processing unit) mining equipment. All of the GPUs that were mining Ethereum needed somewhere to go after the Ethereum Merge, and Ravencoin is one of the most attractive destinations. Ravencoin’s hash rate has surged, indicating that miners have already moved over to Ravencoin.

A short-term catalyst is all well and good, but here’s why Ravencoin is much more than just a short-term trade. Ravencoin was created with the purpose of allowing individuals to create their own tokens. Users can burn 500 Ravencoin and make their own token that represents a real-world asset. An example of how this could be useful is real estate tokenization. A property owner could use Ravencoin to tokenize an investment property and divide it into 100 pieces. This would give property investors significantly more liquidity than they enjoy today and lower the barriers to entry for investing in real estate.

Bitcoin, Ethereum, and Ravencoin are all good choices to buy now and hold forever. Cryptocurrencies are volatile and are best suited for risk-tolerant investors. For these investors, buying the top cryptocurrencies now while the market is uncertain is a move that could pay off over the long run. 

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

The post 3 cryptocurrencies to buy and hold forever appeared first on The Motley Fool Australia.

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More reading

• Ethereum’s merge is done: now what?
• 3 reasons the Ethereum price could gain in the post-Merge months
• Ethereum’s merge spotlights a key strength, says Coinbase exec
• 5 reasons I wouldn’t touch Shiba Inu with a 10-foot pole
• Why Ethereum is diving today

Michael Byrne has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Coinbase Global, Inc., and Ethereum. 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.

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

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The All Ordinaries Index (ASX: XAO) is falling 0.15% today, but three shares on the index are pushing far higher.

The Lake Resources N.L. (ASX: LKE), Polynovo Ltd (ASX: PNV) and Arafura Resources Limited (ASX: ARU) are all lifting today.

Let’s take a look at why these ASX All Ordinaries shares are having such a good day.

Lake Resources

Lake Resources shares are surging 12% today. The lithium explorer’s shares are lifting on the back of an update on the Kachi Lithium Project in Argentina. Lake announced ongoing work with Lilac Solutions on the Kachi project is taking place and all parties “are confident” on-site operations will be successful.

This follows news of a dispute between Lake and Lilac on 14 September. Construction work on the facility housing the Lilac demonstration plant is finished. Dry commissioning of the plant started on Wednesday. Lake said Lilac is planning to start on-site processing of Kachi brines from the plant in the first week of October.

Polynovo

The Polynovo share price is rising 9% today. Investors are buying up Polynovo shares on news of US Food and Drug Administration (FDA) clearance for NovoSorb MTX. Novosorb MTX is a product innovation for soft tissue regeneration for the management of complex wounds. This new product improves PolyNovo’s addressable market in the US by about $500 million.

Commenting on the news, Polynovo CEO Swami Raote said:

The creation of MTX is an exciting example of surgeon led product development that opens a significant new market for us.

Arafura Resources

The Arafura Resources share price is lifting 8% today. Today, Arafura has officially joined the ASX 300. This is a result of an S&P Dow Jones Indices September quarterly review. Arafura is a rare earth explorer working on the Nolans project in the Northern Territory. Arafura is aiming to supply 5% of the world’s Neodymium and Praseodymium (NdPr) oxide. The company has signed Memorandum of Understandings with Hyundai and GE Renewable Energy.

The post 3 ASX All Ordinaries shares having a cracking Monday appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price rocketing 19%?
• Here are the 10 most shorted ASX shares
• PolyNovo share price jumps 11% on FDA update
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Polynovo share price halted amid FDA news

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. 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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Coles Group Ltd (ASX: COL) shares could be a leading pick for dividend income in the coming years.

It has already started an impressive dividend streak, growing its annual dividend each year since it was divested from Wesfarmers Ltd (ASX: WES) in FY19.

There are not too many S&P/ASX 200 Index (ASX: XJO) shares that grew their dividend in 2020 as the COVID-19 pandemic caused financial difficulties for many businesses and sectors.

But, Coles was one of the impressive few that did grow its dividend in 2020. And 2021. And 2022.

How much did the Coles dividend increase in FY22?

The Coles board decided that the final dividend of FY22 would be 30 cents per share. That was an increase of 7.1% year over year.

The Coles interim dividend was maintained at 33 cents per share. So the full-year dividend of 63 cents per share was an increase of 3.3% compared to FY21’s payout.

A 7.1% increase for the last six months of the 2022 financial year was a good increase. What’s more, it represented a rise that was faster than inflation.

Coles’ revenue is benefitting from the increase in inflation because it means customers are paying more for the same basket of products going through the checkout.

However, Coles’ costs aren’t immune to an increase as well. Coles commentated on its FY23 outlook:

We have seen further cost price inflation in produce due to recent flooding, in bakery due to wheat commodity prices, and in packaged groceries due to various supply chain cost increases including wages, packaging, raw ingredients and freight.

Consistent with our suppliers and customers, we are also seeing inflationary pressures impacting our own cost base with increasing wages, rent, fuel, supply chain and capital costs. In addition, COVID-19 and the flu has seen increased team member absenteeism costs continue to impact the business.

What could this mean for future dividends?

Coles is expected to achieve profit growth and dividend growth in FY23 and FY24. This could be a useful driver for the Coles share price. We all need to eat food, so I believe Coles could be a defensive choice for the next few years.

In FY23 it will be cycling against the sales boost of lockdowns in the first half of FY22 and inflation in the second half of FY22. However, Coles Express can benefit from increased mobility now that lockdowns have finished. And higher fuel prices are another factor to consider.

In FY22, Coles’ earnings per share (EPS) increased by 4.6% to 78.8 cents. Using the estimates on CMC Markets, Coles is expected to grow its EPS slightly to 81.7 cents in FY23. Then it’s expected to achieve more growth in FY24 as EPS increases to 87.7 cents.

The profit growth is expected to help fund higher dividend payments.

In FY23, Coles is expected to grow its dividend by 6% to 66.8 cents per share according to the numbers on CMC Markets. Then, Coles is predicted to increase its dividend by another 6.3% to 71 cents per share.

If these predicted numbers come true, then the FY23 grossed-up dividend yield could be 5.7% and the FY24 grossed-up dividend yield could be 6.1%.

Foolish takeaway

With the Coles share price down by 14% over the past month, I think this could be an opportunistic time to consider this supermarket business which is investing for growth, including its large, heavily-automated warehouses that could boost efficiencies and margins.

I believe it’s building a promising reputation as an ASX dividend share.

The post Why I think Coles shares are a top buy for ASX dividend investors appeared first on The Motley Fool Australia.

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• Experts name 2 ASX dividend shares for your retirement portfolio
• Are these ASX blue-chip shares losing their defensive benefits?
• Why is the Coles share price tumbling today?
• 5 things to watch on the ASX 200 on Wednesday
• Supermarket shakeup: Do Coles shares offer better dividends than Woolworths?

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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers 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 AGL Energy Limited (ASX: AGL) share price has started the week poorly.

In afternoon trade, the energy company’s shares are down 2.5% to $6.94.

Why is the AGL share price falling?

While the AGL share price was already in the red today, it has edged even lower since the release of an announcement during late morning trade.

According to the release, AGL is making key changes to the renewal of its board and management as it prepares to announce the outcomes of its review of strategic direction and confirm guidance later this month.

One of those changes sees AGL’s chair, Peter Botten AC, step down from the role with immediate effect today. He is being replaced by current board member Patricia McKenzie.

McKenzie is currently the chair of NSW Ports and the Sydney Desalination Plant group companies. She was also previously the chair of Essential Energy, a director of APA Group (ASX: APA), AEMO, Macquarie Generation, and Transgrid, CEO of the Gas Market Company, and a key participant in the Council of Australian Government’s National Energy Reform.

In addition, current non-executive director Diane Smith-Gander AO is stepping down with immediate effect.

Commenting on the exits, Patricia McKenzie said:

I would like to acknowledge and thank Peter Botten for his significant contribution as a member of the AGL Board over the past six years, including as Chairman over a challenging 18 months. I would also like to acknowledge and thank Diane Smith-Gander for her outstanding contribution to the Board over the past six years, including as Chair of the People & Performance Committee.

The company has been through a period of significant change and uncertainty, and I am stepping into the Chair role to provide clear direction and stable experienced leadership as we redesign our energy portfolio and deliver the outcomes of the review of strategic direction.

What else?

Another major change will see AGL’s CEO, Graeme Hunt, step down from the role at the end of the month.

He will be replaced on an interim basis by current CFO Damien Nicks. Finance and energy executive Gary Brown will act as interim CFO during until a permanent CEO is appointed. AGL advised that there is currently a short list of Australian and global candidates.

McKenzie also commented on Hunt’s exit. She said:

Graeme will leave the company at the end of the month having led with deep commitment and professionalism through an extraordinary time of change.

The post AGL share price dips following changing of the guard appeared first on The Motley Fool Australia.

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• AGL share price slides amid shareholder revolt
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• The AGL share price has tumbled 16% in a month. What’s next?
• Are AGL shares offering a bigger final dividend than Origin this year?

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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It’s a big day for the Sayona Mining Ltd (ASX: SYA) share price this Monday. Not because of the wild volatility we have seen with the lithium company’s shares, mind you. At present, the Sayona share price has lost a nasty 3.45% so far this session to 28 cents a share after bouncing around all morning.

But that’s not the main reason why investors will be talking about this company today. No, today, is the first day that Sayona mining can claim membership of the ASX’s most prestigious club – the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is the flagship index of the Australian share market. It summarises the performance of the largest 200 shares of the ASX by market capitalisation into a single metric. For an ASX share to be eligible for ASX 200 inclusion, it has to fulfil a few criteria. But the most important factor is that it needs to be among the largest 200 ASX shares by market cap.

Since a company’s market capitalisation is basically determined by a company’s share price, the 200 largest shares on the ASX share market change all the time. To reflect this, indexes like the ASX 200 are typically rebalanced every three months. This ensures that the index accurately reflects the state of the share market.

Sayona share price makes its ASX 200 debut

Fortunately for the Sayona Mining share price, this latest rebalancing has been kind. Today, Sayona shares officially join the ASX 200 Index. The company joins other lucky entrants like Karoon Energy Ltd (ASX: KAR) and Lovisa Holdings Ltd (ASX: LOV) in gaining an ASX 200 membership card.

In their place, shares like Zip Co Ltd (ASX: ZIP) and EML Payments Ltd (ASX: EML) have been kicked out of the index.

Now, you might think that ASX 200 inclusion would be beneficial to a company’s share price. This is logically sound. ASX 200 membership means any ASX 200 index fund that tracks the index now has to hold the new shares.

Plus, there are many fund managers that have an ASX 200-only mandate. As such, there are potentially more investors that can invest in these companies now. But the index providers know that changing the index can spark some share price destabilisation because of this.

As such, we typically find out well in advance what any index changes might be coming. In this case, we found out that Sayona shares would be joining the index way back on 2 September.

So everyone involved had plenty of time to prepare. That probably explains why we aren’t seeing a massive rush of goodwill into the Sayona share price this Monday. But even so, it’s still a great day for this company.

The post Sayona Mining share price swings wildly on ASX 200 debut appeared first on The Motley Fool Australia.

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More reading

• The ASX 200 is getting a shakeup today. Here’s the tea
• Why is the Sayona Mining share price diving 5% on Friday?
• Why is the Sayona Mining share price tumbling 6% on Wednesday?
• Investors are obsessed with ASX lithium shares, but what about this other critical battery metal?
• Why is the Sayona Mining share price soaring 8% on Monday?

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 positions in and has recommended EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Lovisa 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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