The ASX All Technology Index (ASX: XTX) has been a standout performer in 2024. Delivering an impressive 13.4% gain since the start of the year, the index's success highlights the growing strength of Australia's technology sector.

The All Technology Index has been a stellar performer since its launch in February 2020, climbing 69.6% in that period. The index is designed to measure the performance of technology companies listed on the ASX. It includes a broad range of tech-related businesses, including software, hardware, and IT services. 

Key players in the index

The ASX All Technology Index includes a mix of well-established companies and promising newcomers. Some of the most notable companies within the index are:

• Xero Ltd (ASX: XRO): Cloud-based accounting software company offering intuitive financial management tools
• REA Group Ltd (ASX: REA): Operates popular property websites like realestate.com.au.
• WiseTech Global Ltd (ASX: WTC): Provides software solutions to the logistics sector

Factors driving the growth

The COVID-19 pandemic significantly accelerated digital transformation across industries. Companies invested heavily in technology to support remote work, e-commerce, and digital customer engagement. This surge in demand for tech solutions boosted the performance of companies in the sector. 

Increased demand has been reflected in strong earnings reports. Xero reported a 75% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) in FY24, which reached $527 million. REA reported a 24% increase in EBITDA for the 9 months ended 31 March 2024. Likewise, WiseTech Global reported a 23% increase in EBITDA in 1HFY24. 

A supportive regulatory environment in Australia has fostered growth in the tech sector. Government support through grants, tax incentives, and innovation programs has played a crucial role in fostering a conducive environment for tech companies to scale operations. 

Many ASX-listed tech companies, such as Xero and WiseTech Global, have successfully expanded their footprint beyond Australia, tapping into international markets. This global presence has provided them diverse revenue streams and reduced reliance on the domestic market, further strengthening financial performance.

What is the outlook for the ASX All Technology Index? 

As we move through 2024, the outlook for Australian tech stocks remains optimistic, though not without potential challenges. The continued emphasis on digital innovation and the growing importance of technology in everyday life are expected to sustain demand for tech solutions. Companies within the ASX All Technology Index are likely to benefit from ongoing trends such as the rise of artificial intelligence, cybersecurity, and cloud computing.

Nonetheless, several factors could influence the tech sector's performance. Economic conditions, including inflation and interest rates, will play a significant role in shaping the investment landscape. Higher interest rates could impact the valuation of tech stocks as investors reassess the risk-reward profile of growth-oriented companies. 

Keeping a balanced perspective and focusing on long-term growth drivers will assist investors in navigating the Australian tech stock landscape and capitalise on opportunities ahead.

The post This ASX index is up 13% in 2024. Is there more up its sleeve? appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 3 top ASX shares as buys in April
• Forget Easter eggs, these ASX shares could be your best buys this month
• 3 ASX shares to buy before the next market rally
• 3 amazing ASX growth shares I'd buy and hold for the next decade
• Why KMD, Tamboran Resources, Whitehaven Coal, and WiseTech Global shares are falling today

Motley Fool contributor Katherine O’Brien 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 REA Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX retail shares are mixed today after the release of the latest retail sales data from the Australian Bureau of Statistics (ABS). Shortly before market close, the ASX consumer discretionary sector is the third-worst performing of the day, with heavyweights like Wesfarmers Limited (ASX: WES) and JB Hi-Fi Limited (ASX: JBH) lagging the S&P/ASX 200 Index (ASX: XJO).

Elsewhere in the sector, though, Harvey Norman Holdings Limited (ASX: HVN) is trading flat and Temple & Webster Group Ltd (ASX: TPW) is surging almost 3% on the back of share buyback news.

The April numbers revealed a small increase in retail sales for April 2024. Seasonally adjusted, retail trade rose by 0.1% month-on-month and 1.3% compared to April 2023. 

The combination of inflation and high interest rates is squeezing retail spending. Clothing, footwear, and personal accessory retailing saw a decline of 0.7% in April, and food retailing was down 0.5%. Sales of household goods, however, showed a positive trend rising by 0.7%. Department stores also experienced a modest increase of 0.1%, maintaining their positive trajectory over recent months. 

Analysts have predicted sales will remain flat throughout 2024 due to rising living costs, high household debt, and economic uncertainty. This could dampen profit expectations for ASX 200 retail shares. JB Hi-Fi advised earlier this month that sales remained resilient, but cautioned that the retail market was "challenging and competitive". Other major retailers like Wesfarmers, which owns Kmart and Target, could also be impacted by the insipid outlook.

Online sales accelerate

Overall retail sales may be down, but the portion of sales taking place online is accelerating. Data from the latest NAB Online Retail Sales Index reveals Australians spent $57.14 billion on online retail in the 12 months to April, making up about 13.4% of the total retail trade. The performance of online retail has consistently outpaced broader retail, leading to an increase in the online share of total retail sales.

Retailers with a strong online presence and diversified product offerings have seen substantial benefits from the ongoing shift towards online shopping. Companies like JB Hi-Fi and Temple & Webster have invested heavily in their e-commerce infrastructure and have seen significant share price gains over the past few years.

The accelerated shift to online could arguably further strengthen the market position of companies that have invested in their e-commerce infrastructure and allow them to stay ahead of competitors with less developed online capabilities.

Foolish takeaway

Despite mixed trading in ASX retail shares following modest retail sales growth in April, the accelerating shift to online shopping could present a silver lining. Retailers with strong e-commerce platforms may be well-positioned to navigate the challenging economic landscape and capitalise on the growing online retail market.

The post ASX retail shares mixed amid modest April sales growth appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX shares to buy for a beginner investor
• Why these ASX shares are rated as buys in April
• 3 ASX defensive shares to buy in uncertain markets
• 3 reasons to buy Wesfarmers shares today
• Bell Potter says this ASX 200 stock can rise 38% and pay a 6% dividend yield

Motley Fool contributor Katherine O’Brien 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 Temple & Webster Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman, and Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia's inflation rate has experienced notable fluctuations over the last couple of years. It has been significantly influenced by global disruptions such as the COVID-19 pandemic and geopolitical tensions. These factors, coupled with supply chain constraints and rising commodity prices, have escalated costs across various sectors. This poses a challenge for investors looking to maintain the real value of their portfolio returns.

Impact of inflation on real returns

Inflation erodes the purchasing power of money, directly impacting the real returns of investments. For investors in the stock market, this means that nominal gains can be offset by the rising cost of living, leading to diminished actual wealth accumulation. This underscores the importance of strategic investment choices that can outpace inflation and preserve capital.

Defensive share investment strategies

In response to inflationary pressures, one strategy is to focus on defensive stocks in sectors less sensitive to economic cycles. Think consumer staples and utilities. These sectors are considered defensive because they provide essential goods or services that remain in demand, regardless of economic conditions.

Companies like Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) play a critical role in everyday life by providing necessary goods. Despite economic downturns, demand for products from these companies tends to remain stable, making them resilient investment choices during inflationary times. 

Coles reported robust results for 3QFY24. Supermarket sales revenue was up 5.1% to $9,065 million. Woolworths has also demonstrated strong financial performance recently, with group sales up 2.8% over the same period to $16,800 million. Despite these results, both companies' share prices fell on the day of the quarterly updates.

Both supermarkets have seen their earnings increase year on year since 2020, but their share prices have been heading in the opposite direction. The Coles share price is down 10% over the past year while the Woolworths share price is down 17%. Both companies, however, have the potential to bounce back speedily following corrections in the share price which could serve savvy investors well.

Utilities are another pillar of defensive investing. Companies like AGL Energy Limited (ASX: AGL) supply essential services like electricity and gas. Utilities are indispensable, which can provide a buffer against economic swings. AGL recently raised its earnings guidance for FY24, with net profit after tax (NPAT) expected to be between $760 million and $810 million, up from $680 million and $780 million. 

The AGL share price is down 14% from its peak in July 2023 but has been trending upwards since February 2024, when it announced a quadrupling of interim profit.

Foolish takeaway

Investing in defensive stocks, such as those in the consumer staples and utilities sectors, can present a prudent approach to safeguarding your portfolio against inflation. These sectors offer the dual benefits of stability and consistent demand, which are crucial during times of economic uncertainty and rising prices.

By strategically incorporating such stocks, investors can protect their portfolios and possibly achieve real growth in value. This makes defensive share strategies essential to a well-rounded investment approach during inflationary periods.

The post Safeguarding against inflation: A defensive share strategy appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX defensive shares to buy in uncertain markets
• Why are AGL shares rising today?
• AGL Energy gives green light to $490m Kwinana gas project
• Why Woolworths and these ASX dividend shares could be buys in April

Motley Fool contributor Katherine O’Brien 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 Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When directors, officers, or executives purchase shares in their own companies, it can send a powerful message about the business's underlying health and future prospects. Insider buying can serve as a grassroots indicator of potential, sometimes preceding positive developments that lead to stock price appreciation. For investors, these moves offer a hint to look beyond the noise of the market and consider where insiders are putting their own money.

Recently, insiders at four S&P/ASX 200 Index (ASX: XJO) companies — ALS Ltd (ASX: ALQ), Super Retail Group Ltd (ASX: SUL), Sonic Healthcare Ltd (ASX: SHL), and Gold Road Resources Ltd (ASX: GOR) — have made notable purchases, suggesting value that others may have overlooked.

ALS

ALS is a global testing, inspection, and certification company. It delivered its FY24 results last week, recording a 6.8% increase in revenue and a final dividend of 19.6 cents. The company has undertaken eight acquisitions over the past 12 months which are expected to add $152 million to revenue on a full year basis. It is targeting mid single digit organic revenue growth in FY25. 

Super Retail Group 

Super Retail Group is a leading retailer specialising in auto, outdoor, and sports products in Australia. The company operates through several well-known retail brands including Supercheap Auto, BCF, and Rebel. Despite current inflation and interest rate challenges, the retailer managed to record total sales growth of 2% for the first 43 weeks of FY24. It expects to open 27 stores total in FY 24 and close 4 stores. 

Sonic Healthcare

Sonic Healthcare is a global company providing laboratory medicine/pathology and radiology services across multiple countries. In its most recent earnings update Sonic Healthcare reported strong organic revenue growth with earnings before interest tax depreciation and amortisation (EBITDA) forecast to be approximately $1.6 billion in FY24. Inflationary pressures are weighing on profit growth; however, the company is set to reap the benefits of FY24's investments in the form of synergies and enhanced returns from FY25 onward. 

Gold Road Resources 

Gold Road Resources is an Australian gold production and exploration company primarily focused on the Gruyere Gold Mine, one of Australia's largest and lowest-cost gold mining operations. The company produced 64,323 ounces of gold in the March quarter with production sold at a strong spot gold price of $3,137 an ounce. Analysts have recently revised forecast gold prices upwards driven by expectations of Federal Reserve rate cuts and a weakening US dollar. 

Foolish takeaway 

Insider buying can not only strengthen investor confidence but also provide a compelling narrative about latent value in ASX-listed companies. When company leaders invest their own money into their operations, it can be a strong endorsement of the business' current health and future prospects. Whether it's ALS's strategic acquisitions poised to boost revenue, Super Retail Group's expansion despite economic headwinds, Sonic Healthcare's robust growth trajectory, or Gold Road Resources capitalising on favourable gold prices, these insider purchases signal a bullish outlook for these ASX 200 shares.

The post 4 ASX 200 shares being scooped up by insiders appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 healthcare shares at multi-year lows
• Experts rate these 2 ASX growth shares as buys this month!
• Buy, hold, sell: What is Ord Minnett saying about this popular ASX 200 stock?
• How to invest $10,000 in ASX dividend shares in 2026
• 5 ASX shares I'd buy with $5,000 today

Motley Fool contributor Katherine O’Brien 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX biotech shares have been showing significant signs of momentum lately. Exciting clinical trial results and strong investor interest are propelling the sector forward. Plenty of upcoming catalysts and company-specific developments could mean the rest of 2024 is also busy for ASX biotech stocks. 

The biotechnology industry combines biology with technology to develop products for various applications. Biotech stocks are shares in companies developing biotech products, which could have medical, agricultural, or industrial applications. 

Many biotech firms focus on genetics and molecular biology to innovate. Extensive research and development (R&D) is undertaken to create new therapies and technologies. This means substantial R&D spending generally precedes revenue generation. Success in biotech can lead to significant rewards, however, with share values potentially soaring following technological breakthroughs or drug approvals. 

Risks and rewards 

The biotech sector is known for its volatility, driven by the high stakes of clinical trials. The performance of biotech shares tends to be driven by company-specific developments, such as trial data, rather than broader economic factors. This means the sector is generally non-cyclical and can provide potential diversification benefits. 

The ASX is home to a number of groundbreaking biotech companies pioneering innovative therapies. For example, Telix Pharmaceuticals Ltd (ASX: TLX) develops radiopharmaceutical diagnostic agents and therapeutic products that are reshaping oncological care. Fellow ASX 300 biotech Clinuvel Pharmaceuticals Limited (ASX: CUV) develops treatments for serious skin disorders. Both Clinuvel and Telix have successfully commercialised products and are expanding their market presence. This should bode well for future revenue streams. 

The ASX also hosts an array of emerging biotech firms that are beginning to make their mark. Botanix Pharmaceuticals Ltd (ASX: BOT) develops dermatological products and drug treatments. The company is preparing for the upcoming commercial launch of a topical treatment for underarm sweating. Federal Drug Administration (FDA) approval for the treatment is expected by late June 2024. 

Meanwhile, Neuren Pharmaceuticals Ltd (ASX: NEU) is focused on developing treatments for severe neurodevelopmental disorders like Rett syndrome and Fragile X syndrome. It recently achieved FDA approval for a drug that treats Rett syndrome in adults and children over two years old. This is the first and only approved treatment for this condition. Another Neuren Pharmaceuticals drug candidate is also in trials for the treatment of several other disorders. 

As these companies progress through regulatory pipelines and reach commercial stages, the impact on their valuations could be transformative.  

What does the future hold for ASX biotech shares? 

Biotech firms on the ASX are benefitting from global trends that favour advancements in medical technology and increased healthcare demand. The performance of individual biotech companies, however, is ultimately dependent on successful outcomes from R&D activities.
 
Investing in this sector comes with high volatility and risk, but does offer substantial growth potential. Current trends suggest a positive trajectory for ASX biotech shares, making them an interesting sector for investors looking for exposure to innovative healthcare solutions.

The post Which ASX biotech shares are pioneering the future of medicine? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 3 ASX 200 healthcare shares to buy amid sector rout
• 3 reasons to buy this red-hot ASX healthcare stock today
• These were the best-performing ASX 200 shares in March
• Up 57% since February, why Telix shares could keep leaping higher in 2026

Motley Fool contributor Katherine O’Brien 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In the bustling world of retail, not all that glitters is gold. The Reject Shop Ltd (ASX: TRS), an established discount retailer, has seen its share price touch 52-week lows recently. A combination of sector-wide and company-specific challenges has driven the stock price down. Investors must now decide if these issues are merely bumps in the road or indicative of fundamental flaws.

The Reject Shop's plunge

The Reject Shop, known for its budget-friendly offerings, has seen its stock price fall to $4.13, down from $5.80 late last year. The fall can be attributed to several factors. Firstly, there have been significant changes in the company's leadership, including the resignation of the General Counsel and Company Secretary, and other shifts within the board. Such leadership transitions can often lead to uncertainty among investors​. 

Despite improvements in earnings per share (EPS) in FY23 compared to the previous year, consensus EPS estimates were adjusted downwards in October 2023, dampening investor sentiment​. 

Comparing ASX retail share rivals

Another contributing factor has been the general challenges faced by the retail sector in Australia. Shifts in consumer behaviour and competitive pressures have impacted the entire industry. According to the Australian Bureau of Statistics, household spending on discretionary items decreased by 0.1% in the year to March, with rising interest rates forcing households to cut back. 

Other ASX-listed retail stocks have also felt the pinch. Take, for example, Adairs Ltd (ASX: ADH), which has seen its share price fall more than 5% over the past year. Adairs reported a decrease in earnings before interest, tax, depreciation and amortisation (EBITDA) of 14.6% in 1H24. The Reject Shop saw a 16% decrease. 

Retail is also grappling with broader economic factors such as fluctuating consumer confidence and the undeniable impact of e-commerce. For traditional stores like The Reject Shop and Adairs, adapting to this new digital reality is crucial for survival. Sector-wide, there is a strong push towards adopting digital innovations to enhance efficiency and customer engagement. 

Is recovery on the horizon for this ASX retail share?

Retailers are expected to continue facing economic pressures such as inflation and high interest rates. This will squeeze profit margins and challenge operational costs. Nonetheless, consumer habits are shifting towards more value-driven purchases due to high living costs. This trend favours discount retailers who can offer compelling price points.

Foolish takeaway

The Reject Shop's recent stock price woes are emblematic of the broader pressures facing the retail sector. The question for investors is not just whether The Reject Shop can adjust to these challenges, but whether it can leverage them as opportunities.

With consumers increasingly price-conscious, discount retailers like The Reject Shop could be well-positioned to capture market share. To do so, they will need to adapt and innovate effectively.

The post Is this crushed ASX retail share a buy? appeared first on The Motley Fool Australia.

More reading

• 2 under-the-radar ASX shares with bags of potential
• Brokers rate these 3 top ASX shares as buys in April
• Are these ASX blue chips now too cheap to ignore?
• Buy, hold, sell: Cochlear, South32, and Westpac shares
• These are the 10 most shorted ASX shares

Motley Fool contributor Katherine O’Brien 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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation funds invest in a diverse range of assets, including shares listed on the ASX. Popular ASX shares among superannuation funds tend to be those that offer stability, strong dividends, and growth potential.

What type of ASX shares do super funds invest in? 

Superannuation funds often invest in blue-chip stocks. This is due to their market stability, strong corporate governance, and consistent dividend payments. They also seek out shares with a strong dividend yield as these can provide a steady income stream. This is important for funds that are in the pension phase, where they need to pay out benefits to retirees.

Investing across a variety of sectors helps super funds diversify and spread risk. Popular sectors include financials, resources, healthcare, and consumer staples. While stability is crucial, super funds also look for companies with potential for capital growth. This helps ensure that the fund's assets grow over time to meet future liabilities.

3 ASX 200 shares superannuation funds love 

According to Super Guide, the most popular Australian shares invested in by self-managed superannuation funds include BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). These stocks are favoured for their blend of stability, dividend yield, and growth potential. These attributes make them suitable for long-term investment strategies aimed at providing retirement security.

• BHP: A global resources company, BHP has significant operations in iron ore, copper, and coal, commodities with enduring demand. BHP continues to invest in new projects and expand existing operations, particularly in copper and iron ore, which are crucial for the global transition to renewable energy. The company is known for solid dividend payments, with a dividend policy that aims to pay out a minimum of 50% of underlying earnings.

• Wesfarmers: Wesfarmers owns several major retail brands including Bunnings Warehouse, Kmart, Target, and Officeworks. Bunnings remains a standout performer, often driving the group's earnings with its strong market position in home improvement. Kmart and Officeworks also contribute significantly to the group's performance. The company typically reports solid revenue, reflecting its strong presence in the retail market. Wesfarmers is also known for providing reliable dividend payments, which are highly valued by superannuation funds. 

• Woolworths: As a major player in the retail sector, Woolworths operates Australia's largest supermarket chain. The company's performance is reliable and consistent, appealing to funds looking for defensive stocks. It generally reports strong revenue, driven by its widespread network of stores and online operations. Woolworths is also known for providing consistent dividends. 

Foolish takeaway

Superannuation funds gravitate towards S&P/ASX 200 Index (ASX: XJO) shares like BHP, Wesfarmers, and Woolworths. These companies offer stable market performance, reliable dividend income, and strategic positioning for future growth. Investing in these types of shares helps equip superannuation funds to ensure financial security for their members in retirement.

The post Why superannuation funds love these 3 ASX 200 shares  appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX shares to buy for a beginner investor
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 mining shares this fund manager is backing for long-term growth
• Buying ASX 200 mining shares? Here's how Rio Tinto, Fortescue and BHP stacked up in March
• 3 ASX defensive shares to buy in uncertain markets

Motley Fool contributor Katherine O’Brien has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Female ASX investors are increasingly making their mark in the traditionally male-dominated fund management world. Women bring a unique perspective and strategy to their portfolios. According to a recent Goldman Sachs study, funds managed by women or gender-mixed teams outperformed those managed exclusively by men.

With a knack for identifying stocks that deliver value on multiple fronts, female ASX investors are setting new standards of investment excellence. Here we dive into four S&P/ASX 300 Index (ASX: XKO) shares in top female fund managers' portfolios. 

Value-based investing delivers for Allfrey

Catherine Allfrey is a director and portfolio manager at Wavestone Capital, which she co-founded in 2006. Her investment approach seeks "quality companies with a sustainable competitive advantage at a reasonable price." Allfrey doesn't invest in companies that aren't profitable and favours a value-oriented approach. Her portfolio includes CSL Ltd (ASX: CSL) and Resmed CDI (ASX: RMD). 

CSL is a leading biotechnology company that serves patients in more than 60 countries. It is particularly renowned for its work in plasma-derived and recombinant therapeutic products. Having delivered a 13% increase in Net Profit After Tax (NPAT) in 1H24, CSL is expecting revenue growth of 9% – 11% this financial year. 

Resmed develops and manufactures medical devices for the treatment and management of respiratory disorders. Its range includes cloud-connected digital health solutions such as CPAP machines and ventilators. Resmed reported year-on-year revenue growth of 12% in 2Q24. The company plans to lean into the expansion of the large and growing sleep and breathing health markets. 

Conviction brings long-term gains for Liu

Jun Bei Liu is the Portfolio Manager of Tribeca's Alpha Plus fund. She employs a high conviction approach to investing that emphasises taking a longer-term view. Her portfolio includes Pro Medicus Limited (ASX: PME) and Temple & Webster Group Ltd (ASX: TPW). 

Pro Medicus services the medical imaging industry, providing sophisticated software that enables doctors to interpret medical images remotely and in real-time. Pro Medicus reported 1H24 was the most successful in its history. Revenue was up more than 30% as the company looked to expand its presence in key markets. 

Temple & Webster Group is an online furniture and home decor retailer offering a vast range of products. The company leverages technology to offer a personalised shopping experience with an extensive selection from local and international suppliers. Temple & Webster reported a 31% increase in 1H24 revenue driven by growth in both repeat and first-time customers. On track to reach $1 billion-plus in 3-5 years, Temple & Webster's FY24/25 days will be focused on high growth and market share gains. 

Foolish takeaway 

Female investors are not only achieving high returns but changing the way fund managers invest in the ASX and beyond. Their insightful investment choices and success stories serve as a testament to the power of the female perspective. 

The post 4 ASX 300 shares Australia's top female investors choose appeared first on The Motley Fool Australia.

More reading

• Are these ASX blue chips now too cheap to ignore?
• 3 ASX shares that could double over the next decade (or much sooner)
• 3 quality ASX shares to buy for a beginner investor
• Are '50% off' CSL shares a once-in-a-decade opportunity?
• 3 ASX shares to buy before the next market rally

Motley Fool contributor Katherine O’Brien has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, Pro Medicus, ResMed, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In a world where financial security is paramount, dividend shares can provide a reliable source of passive income. Dividend shares distribute a portion of company profits back to shareholders. This provides a regular income stream in addition to potential capital gains.

The S&P/ASX 200 Index (ASX: XJO) showcases some of the most robust dividend-paying companies. Here are four ASX 200 companies renowned for their consistent dividend payments.

Reliable mining dividends: Fortescue Metals Group Ltd (ASX: FMG)

Fortescue Metals, a giant in the iron ore industry, has long been a favourite for dividend seekers. Known for its high yield and strong cash flow, Fortescue has consistently paid handsome dividends, particularly during periods of high iron ore prices.

With the share price having declined in 2024, the mining company is now offering an attractive dividend yield of 8.32%.

Footwear and lifestyle: Accent Group Ltd (ASX: AX1)

Accent Group sells many of the most popular footwear brands in Australia. Despite the retail sector's volatility, Accent Group has shown resilience with a strategic approach to physical stores and online sales. Their progressive dividend policy is supported by a strong market presence.

With a dividend yield of 7.40%, it is an attractive pick for those looking to diversify into retail dividends.

Banking on dividend shares: Bank of Queensland Ltd (ASX: BOQ)

Bank of Queensland appeals to dividend seekers with its stable payout history and a strong presence in the regional banking sector. As a smaller player compared to Australia's big four banks, BOQ often offers higher yield percentages, catering well to risk-tolerant investors looking for substantial income flows.

With a current dividend yield of 6.65%, Bank of Queensland is well ahead of its larger competitors. 

Retail rewards: Super Retail Group Ltd (ASX: SUL)

Super Retail Group, the conglomerate behind well-known retail brands like Supercheap Auto, BCF, and Rebel, has capitalised on the consumer shift to domestic travel and home-centric activities. This shift has bolstered their financial performance, underpinning a robust dividend policy. For investors, this means potential for both capital appreciation and a steady dividend payout.

With a dividend yield of 6.72%, Super Retail Group provides a competitive potential dividend return. 

Benefits of dividend shares

Dividend shares can serve as a source of steady cash flow. This can be particularly valuable during economic downturns or market volatility because these payments provide financial stability independent of share price movements. Moreover, reinvesting dividends can significantly enhance an investment's growth potential over time through the power of compounding.

For those seeking passive income, these four ASX 200 companies offer promising dividends backed by solid business strategies and market positions. Whether you lean towards mining, banking, or retail, each provides a unique angle on dividend investing.

The post After passive income? Check out these ASX 200 dividend shares appeared first on The Motley Fool Australia.

More reading

• Buying ASX 200 mining shares? Here's how Rio Tinto, Fortescue and BHP stacked up in March
• Why I'd buy dirt-cheap ASX shares now and aim to hold them for a decade
• ASX 200 mining shares ride a rollercoaster in March quarter
• 3 reasons why this could be a great time to buy Fortescue shares!
• ASX 200 mining shares rebound after March sell-off creates opportunities

Motley Fool contributor Katherine O’Brien 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 Super Retail Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Exchange Traded Funds (ETFs) can be attractive investment vehicles for those looking to gain exposure to sectors without needing to purchase stocks directly. An increasing number of ASX ETFs are making it easier than ever for investors to access specialised markets and growth opportunities. 

Known for their cost-effectiveness, ETFs provide the flexibility of buying and selling throughout the trading day, just like stocks. They also have the advantage of built-in diversification. This can help manage risk while providing the potential to participate in the growth of multiple companies. For investors aiming for growth in emerging and rapidly evolving sectors, growth ETFs can serve as a key component of strategic investment portfolios. 

High growth technology

The robotics, artificial intelligence (AI), video gaming, and esports sectors are at the forefront of technological innovation and market growth. Investors interested in these areas could see strong returns over the near future. The rapid pace of technological advancements in AI and robotics is transforming industries globally, enhancing productivity and creating new market opportunities.

Similarly, video gaming and esports industries are benefiting from increased engagement and broader demographic appeal. Gaming is becoming a mainstream form of entertainment with competitive gaming adding a new dimension to the industry. Meanwhile, Esports has created a substantial market for game publishers, developers, hardware manufacturers, and streaming services.

Growth ETF: robotics and AI

The Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) provides exposure to key players in the robotics and artificial intelligence sectors. This includes companies involved in industrial robotics, automation, autonomous vehicles, and AI technology. Tracking the Indxx Global Robotics & Artificial Intelligence Thematic Index, the fund offers significant growth potential. This is due to its focus on companies likely to benefit from increased adoption and technological advancements in these fields.

Growth ETF: video gaming and esports 

The VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO) offers access to some of the biggest companies in the video gaming and eSports industries. These include global leaders like NVIDIA Corp (NASDAQ: NVDA) and Activision Blizzard Inc (NASDAQ: ATVI). The gaming industry has seen exponential growth in recent years, driven by increasing consumer demand and the shift towards digital entertainment. 

ESPO is positioned to capitalise on gains in this sector as eSports gain recognition as a legitimate sport. Continuous innovation in gaming technology and the rising popularity of interactive entertainment provide strong tailwinds.

Why I think these growth ETFs could double in value 

RBTZ and ESPO represent compelling opportunities in the rapidly growing fields of AI and e-gaming. Both ASX ETFs are positioned in sectors that have shown robust growth in recent years with no signs of slowing down. Investing in these ETFs could be particularly attractive for those bullish on technological innovation and consumer engagement in digital platforms. 

RBTZ and ESPO focus on future technologies and entertainment, sectors poised for significant expansion in the coming years. For this reason, I think these ASX ETFs have the potential to produce substantial returns, even doubling in value over the coming year.

The post 2 ASX growth ETFs I think could double in value over the next year appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ASX ETFs to buy and hold after the selloff
• Meet the newest humanoid robotics ASX ETF from Global X
• 3 of the best ASX ETFs to buy and hold for a decade
• 3 reasons this AI and Robotics ASX ETF is a long term play
• 3 exciting ASX ETFs for Aussie growth investors to buy and hold

Motley Fool contributor Katherine O’Brien 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 Nvidia. The Motley Fool Australia has recommended Nvidia and VanEck Vectors Video Gaming And eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the journey from $1,000 to $10,000 may seem formidable, focusing on high-potential ASX growth shares could be the key.

In this article, we'll explore three ASX growth stocks that I think have the potential to multiply an initial stake of $1,000 tenfold.

Understanding ASX growth shares

ASX growth shares are companies with potential to substantially increase in value. This could be through innovative business models, pioneering technology, or by tapping into burgeoning markets. These companies usually have potential for substantial revenue and market share expansion. 

The growth trajectory of such stocks can result in significant capital appreciation. However, it's important to recognise the higher volatility and risks involved. Investors should conduct thorough research and tailor portfolios to include a mix of shares that align with their risk tolerance.

These ASX growth shares are involved in innovative industries that look set to grow substantially in coming years: 

• NextDC Ltd (ASX: NXT): Builds and manages data centres across Australia. The company reported a 31% increase in total revenue in 1H24. A record-forward order book is expected to ramp into billing across FY25 to FY29. With cloud computing and data centres becoming indispensable in our digital world, NextDC's potential for expansion makes it an attractive option for growth-focused investors.
• Megaport Ltd (ASX: MP1): Specialises in elastic interconnection services. These services enable businesses to rapidly connect their network infrastructure to other services and data centres across the globe. Megaport reported a 43% increase in gross profit for 1H24 with record earnings before interest, taxes, depreciation, and amortisation (EBITDA). As enterprises continue to adopt flexible and scalable cloud solutions, Megaport's scalable and on-demand services are likely to become more critical. 
• Weebit Nano Ltd (ASX: WBT): Develops next-generation memory technology with the potential to replace traditional flash memory. The company generated its first IP licensing revenues in Q2 FY24, demonstrating its significant technical progress in recent years. With applications in a wide range of electronics, Weebit Nano's technology could drive significant market share and stock value increases.

Risk management and growth potential

While the prospect of turning $1,000 into $10,000 is exciting, it's essential to approach ASX growth shares with thorough research and risk assessment. Diversifying across different sectors can mitigate the risk and enhance the potential for significant returns.

It's crucial to maintain realistic expectations and understand that high rewards often come with high risks. To make informed decisions, investors need to keep abreast of market trends, company performance, and technological advancements.

Foolish takeaway

Investing in ASX growth shares with strong fundamentals and revolutionary technologies offers the prospect of substantial financial growth.

With the right strategy and a bit of luck, turning $1,000 into $10,000 is an ambitious yet achievable goal on the ASX.

The post How I'd use ASX growth shares to turn $1,000 into $10,000 appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX growth shares I'd buy and hold for the next decade
• 2 ASX stocks that could help turn $10,000 into $1 million
• Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?
• Bullish on artificial intelligence? Here are 3 ASX shares I'd buy
• 3 ASX tech stocks that belong in every long-term portfolio

Motley Fool contributor Katherine O’Brien 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 Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the influence of artificial intelligence (AI) expands across industries here in Australia and globally, ASX investors are keen to harness its potential.

One effective way to capitalise on this tech revolution is to invest in AI-focused exchange-traded funds (ETFs). These funds offer a diversified entry point into a range of companies in the AI tech sector.

And by investing in ASX AI ETFs, you can participate in the growth of AI technologies while mitigating the risks associated with single-stock investments. Let's take a closer look.

What are ASX AI ETFs?

AI ETFs track the performance of ASX companies involved in AI research and development. There are a growing number listed on the ASX. Some of the most popular include:

• BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) invests in companies involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
• Global X ETF Artificial Intelligence ETF (ASX: GXAI) tracks the performance of the Indxx Artificial Intelligence and Big Data Index, which includes stocks like NVIDIA Corp (NASDAQ: NVDA) and Amazon.com Inc (NASDAQ: AMZN).
• The Global X Semiconductors ETF (ASX: SEMI) provides exposure to the semiconductor industry, which is crucial to developing AI technologies. 

These ETFs track a broad variety of AI companies, including large and small-cap stocks. They also offer global exposure to various countries, such as the United States, China, and Europe.

Factors to consider when investing in ASX AI ETFs

Before you invest in an AI ETF, there are a few things to think about:

• Investment objectives: What are your investment objectives? Are you looking for long-term growth or short-term gains?
• Risk tolerance: How much risk are you willing to take? AI ETFs can be volatile, so it's essential to be comfortable with the level of risk involved.
• Fees: ETFs typically have lower fees than actively managed funds. However, it's important to compare the fees of different ETFs before you invest.
• Liquidity: This measures how easily an ETF can be bought and sold. ETFs with high liquidity are easier to trade.

Investing in the future 

Investing in ASX AI ETFs offers a strategic gateway into the rapidly evolving realm of artificial intelligence.

As the technological landscape continues to shift, ASX AI ETFs provide broad exposure to a dynamic sector without the concentrated risk of individual stock investments. 

Before committing capital, you should carefully evaluate your financial goals and risk tolerance, consider associated fees, and assess the liquidity of your chosen ETFs to ensure alignment with your investment strategy.

By doing so, you can position yourself to benefit from the technological advancements that AI promises, while navigating the inherent volatility of this transformative industry.

The post Future focus: How to diversify your portfolio with ASX AI ETFs appeared first on The Motley Fool Australia.

More reading

• Meet the newest humanoid robotics ASX ETF from Global X
• 3 of the best ASX ETFs to buy and hold for a decade
• As AI spending accelerates these ASX ETFs could help you tap into the boom
• 3 reasons this AI and Robotics ASX ETF is a long term play
• 3 ASX ETFs that could be strong picks for investors in their 30s

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

Artificial intelligence (AI) is rapidly changing the world as we know it. One of the best ways for investors to get in on the action is to invest in ASX AI shares.

AI technology is already having a major impact on our lives. It's the driving force behind everything from self-driving cars to facial recognition technology. And it's only going to become more prevalent in the years to come.

Recognise these ASX AI shares?

There are a number of AI companies listed on the ASX, representing a variety of industries. Well-known AI companies include:

• Appen Ltd (ASX: APX) collects and annotates data for machine learning. Its data is used by some of the world's largest technology companies, including Alphabet Inc, Amazon.com Inc, and Microsoft Corp.
• BrainChip Holdings Ltd (ASX: BRN) develops AI chips used in a variety of applications, including autonomous vehicles, robotics, and medical devices.
• Cochlear Ltd (ASX: COH) produces implantable hearing devices that use AI to improve the hearing experience of people with hearing loss.
• CSL Ltd (ASX: CSL) develops and manufactures vaccines and biotherapies using AI to accelerate drug discovery and development.
• REA Group Ltd (ASX: REA) operates real estate portals in Australia, Asia, and North America using AI to personalise the user experience and deliver targeted advertising.

These are just a few of the many ASX AI shares. As the sector continues to develop, we can expect to see even more companies in this industry.

Investing in ASX AI shares

Investing in ASX AI shares can be a rewarding experience, but it's important to do your research before you buying. Here are a few things to keep in mind:

• Understand the risks: AI is a rapidly changing field, and there is no guarantee that any company will be successful. It's important to understand the risks involved before you invest in any AI shares.
• Do your research: Do your due diligence and learn about the companies you're investing in. Look at financial statements, read annual reports, and follow industry news.
• Diversify your portfolio: Don't put all your eggs in one basket. Diversify your portfolio by investing in various ASX shares and assets across different market sectors, investment styles and even geographic locations.

Foolish takeaway 

AI is a rapidly growing industry with the potential to revolutionise many aspects of our lives.

Investing in AI shares can offer compelling benefits due to the vast growth potential and transformative impact of the technology across various industries. AI can be used for everything from enhancing customer service with chatbots to advancing manufacturing through robotics. This broad applicability opens up multiple revenue streams. 

As AI continues to evolve, it will play a critical role in driving future economic and technological advancements. With diligence, investing in the industry has the potential to yield substantial returns. 

The post How to invest in the future with ASX AI shares appeared first on The Motley Fool Australia.

More reading

• Are these ASX blue chips now too cheap to ignore?
• Buy, hold, sell: Cochlear, South32, and Westpac shares
• Are '50% off' CSL shares a once-in-a-decade opportunity?
• 3 ASX shares to buy before the next market rally
• 3 ASX shares down 25% (or more) to buy right now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Katherine O’Brien has positions in Alphabet, Amazon, Appen, CSL, and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Appen, CSL, Cochlear, Microsoft, and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, CSL, Cochlear, and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commodities prices for precious metals are on the rise in 2024. Strong demand for safe-haven assets amid economic uncertainty has seen the gold price top US$2400 an ounce.

Copper has also performed well, with prices elevated due to strong demand from renewable energy sectors. 

Economic forces drive gold higher   

This is welcome news for ASX gold mining stocks such as Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN), and Perseus Mining Ltd (ASX: PRU). They have seen decent share price rises this year to date, with Northern Star's shares up 11.7% and Perseus trading 21.2% higher. Evolution is up just 0.63% since January but is enjoying a 13% increase over the past 12 months.

Analysts maintain a bullish outlook for gold as inflationary pressures and geopolitical tensions drive investors towards the precious metal. 

Sustained interest in gold as a hedge against inflation and currency devaluation supports a higher price trajectory. Growing market demand in sectors like technology and jewellery, especially from emerging markets, is also contributing.

The rising gold price translates to increased revenues for gold mining shares, boosting financial performance. Higher gold prices can also make mining projects that were previously non-viable become profitable, leading to operational expansion.

Northern Star's KCGM Mill expansion is on track, while Evolution Mining advises that new drilling results have provided attractive propositions for future production. 

Recent uptrends in copper commodities prices

Higher copper prices can be attributed to a combination of supply constraints and robust demand driven by key sectors. Production issues, including the closure of significant mines and reduced output targets by major producers, have tightened supply.

On the demand side, copper is experiencing significant growth due to its essential role in renewable energy technologies and electric vehicles. ASX copper miners are the beneficiaries of this trend. Companies like Sandfire Resources Ltd (ASX: SFR) and Aeris Resources Ltd (ASX: AIS) have seen a marked rise in share prices since the start of the year, up 24.3% and 8.33%, respectively. 

Cleaner energy sources, including solar and wind power, require substantial amounts of copper for their infrastructure, as does electric vehicle (EV) production.

Copper is critical to these applications due to its excellent conductivity and durability. Additionally, economic recovery and industrial expansion in China, which consumes nearly half of the world's copper, has amplified demand. 

Foolish takeaway

Rising trends in precious metal commodity prices underscore a robust period for investors and mining companies alike. Gold continues to glitter against the backdrop of inflationary fears and geopolitical uncertainties. Meanwhile, copper's crucial role in the green energy transition paints a bullish picture, fuelled by escalating global demands for sustainable technologies. 

These dynamics enhance the financial outlook for commodity companies like Northern Star Resources, Evolution Mining, and Sandfire Resources. As commodity prices carve a path to profitability, I think the outlook for precious metal mining stocks shines bright.

The post Glitter up: Which ASX shares are commodities prices shining on in 2024? appeared first on The Motley Fool Australia.

More reading

• Why Greatland Resources, Newmont, Northern Star, and Qantas shares are rising today
• Up 33% in 2 weeks, Northern Star share price surging again today on $500 million news
• Northern Star Resources posts Q3 gold sales, on track for FY26
• Should you buy the dip on gold shares? Expert
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Katherine O’Brien 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.

Diversification presents an enticing opportunity for investors to broaden their ASX portfolios beyond traditional stocks and bonds.

Let's examine the benefits and opportunities associated with four diversifying investments within the ASX: Real estate investment trusts (REITs), commodities, infrastructure shares, and emerging industries.

REITs: A gateway to property investments

REITs offer a practical entry point into the real estate market. They enable investors to gain exposure to property without the hefty capital required for direct investment.

By pooling funds with other investors in a REIT, you can access a diversified portfolio of commercial, residential, and industrial properties.

Investing in REITs provides for potential capital appreciation as well as regular income streams from rental yields. This combination makes REITs an attractive option for investors seeking both growth and income.

Further, because the property and share markets are not perfectly correlated, REITs can act as a diversifying investment.

Commodities: A hedge against volatility

Investing in commodities such as gold, silver, and other precious metals can serve as a strategic hedge against inflation and currency fluctuations.

There are various ways to invest in commodities, including direct purchases, via exchange-traded funds (ETFs), and through investing in the stocks of companies within the materials and energy sectors.

Commodities typically have a low correlation with other asset classes, making them a possible alternate store of value.

Infrastructure shares: A backbone of steady income

Infrastructure investments on the ASX encompass a wide range of essential services, including transportation, utilities, and energy. Think Transurban Group (ASX: TCL) and Atlas Arteria Group (ASX: ALX).

Infrastructure assets typically provide stable and predictable returns, often linked to inflation, making them a defensive cornerstone for investors seeking reliable income.

Because of the essential nature of the services offered by infrastructure funds, demand tends to remain constant, therefore providing a safeguard against economic downturns.

This means infrastructure investments can act a diversifying investment, reducing overall portfolio volatility.

Emerging Industries: Investing in the Future

The ASX is also a platform for forward-thinking investors to engage with emerging industries and technologies, such as renewable energy, biotech, and fintech.

These sectors stand on the brink of significant growth, significantly driven by innovation and the global shift towards sustainability. Investing in companies within these industries provides diversification benefits and can potentially yield high returns as they expand.

Broadening portfolio horizons

Diversifying investments in your ASX portfolio offers benefits such as reduced volatility, protection against inflation, and the potential for enhanced returns.

However, it's vital to approach these investments with a clear understanding of the risks and how they fit into your overall investment strategy.

With careful research, diversifying investments can unlock new avenues for growth and stability.

The post 4 ASX stock investments to instantly diversify your portfolio appeared first on The Motley Fool Australia.

More reading

• 2 under-the-radar ASX shares with bags of potential
• Brokers rate these 3 top ASX shares as buys in April
• Are these ASX blue chips now too cheap to ignore?
• Buy, hold, sell: Cochlear, South32, and Westpac shares
• These are the 10 most shorted ASX shares

Motley Fool contributor Katherine O’Brien 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 Transurban Group. 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.

In recent years, environmental, social, and governance (ESG) investing has surged from a niche interest to a central strategy in the portfolios of astute investors worldwide.

On the ASX, ESG investing is reshaping priorities, spotlighting companies that not only aim for financial success but also demonstrate a strong commitment to sustainability and ethical practices.

ESG investing trends on the ASX

Growing awareness of the impacts of climate change, social responsibility, and corporate governance has fueled an uptick in ASX investing on the ASX. Investors are increasingly applying non-financial factors to their investment analysis process to identify material risks and growth opportunities. 

There are now more than $783 billion responsible investment assets under management in Australia. In 2024, this trend is set to continue, with ESG funds attracting substantial inflows as more individuals seek to align their investments with their values.

Indeed, in the final quarter of 2023 alone, sustainable funds in Australia and New Zealand attracted more than USD$567 million in inflows. 

What are the benefits?

Investing in companies that prioritise ESG criteria isn't just about making ethically sound choices; it's a strategy that offers tangible benefits for investors.

Firstly, ESG investing places a spotlight on long-term sustainability — companies focused on this principle tend to prepare for future challenges and opportunities. This can result in greater resilience and adaptability amid market volatility, potentially leading to more stable returns.

ESG investing taps into a growing trend where consumers and investors alike demand greater corporate responsibility. Companies that align with these values are likely to attract a more loyal customer base and a more committed pool of investors, which can drive sales and, by extension, share price growth.

This alignment with broader societal shifts can not only enhance a company's brand reputation but also secure a competitive edge in the marketplace.

Another significant benefit of ESG investing is risk mitigation. Companies that actively manage their environmental impact, maintain robust governance practices, and foster positive social relationships are often less susceptible to scandals, legal troubles, and operational disruptions.

This risk reduction is crucial for investors seeking to protect portfolios from unexpected downturns caused by non-financial factors.

Future focus

ESG investing opens doors to innovative and emerging sectors. By focusing on companies that lead in sustainability, investors gain exposure to industries at the forefront of addressing global challenges, such as renewable energy, clean technology, and sustainable agriculture.

These sectors not only promise growth as the world shifts towards more sustainable practices but also offer the opportunity to contribute positively to pressing global issues.

ESG investing embodies the principle that financial success and positive global impact are not mutually exclusive.

By incorporating ESG criteria into investment decisions, investors can achieve a portfolio that supports sustainable growth, aligns with their values, and contributes to a more resilient global economy.

ESG standouts on the ASX

While many ASX-listed companies are making strides in ESG, a few stand out for their exceptional commitment to sustainability and ethical practices.

Names such as CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), Xero Ltd (ASX: XRO), and Bank of Queensland Ltd (ASX: BOQ) are frequently cited for their robust ESG frameworks.

This makes them attractive to investors looking to make a positive impact without sacrificing returns.

Foolish takeaway

ESG investing on the ASX is more than a trend — it's a fundamental shift in how we approach investing for the future. By focusing on companies that excel in environmental, social, and governance criteria, investors not only stand to benefit financially but also contribute to a more sustainable world.

As the ESG landscape evolves, staying informed and choosing wisely will be key to achieving both financial and ethical returns.

The post The ESG investing revolution: What you need to know to profit appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 3 top ASX shares as buys in April
• Are these ASX blue chips now too cheap to ignore?
• Buy, hold, sell: Cochlear, South32, and Westpac shares
• Are '50% off' CSL shares a once-in-a-decade opportunity?
• Forget Easter eggs, these ASX shares could be your best buys this month

Motley Fool contributor Katherine O’Brien has positions in CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In the world of investing, market volatility can unsettle even the most seasoned investors. Yesterday's share market plunge, which saw the S&P/ASX 200 Index (ASX: XJO) drop a hefty 1.8%, demonstrates that.

However, understanding how to navigate these turbulent times can turn potential challenges into opportunities for portfolio growth. Here's how to stay afloat and thrive in fluctuating markets.

Understanding market volatility

Market volatility refers to how much the price of assets on the stock market fluctuates over a short period. Imagine it like the sea: on calm days, the waves are small and predictable, but on stormy days, they're big and unpredictable.

In the stock market, these "waves" are the prices of stocks. When prices change a lot and quickly, the market is considered "volatile". While volatility can indicate risk, it also presents opportunities for buying high-quality stocks at lower prices.

Market volatility is often sparked by a mix of factors that can shake investor confidence and lead to rapid price changes.

These can include economic reports, such as changes in unemployment rates or inflation, political events like elections or policy changes, and global incidents, such as natural disasters or geopolitical tensions.

Technological changes and market speculation can also fuel volatility. When investors react to these events, their collective actions can cause stock prices to move dramatically. It's like a domino effect, where one event triggers a chain reaction of buying or selling, leading to fluctuating market prices.

How to navigate market volatility

Navigating market volatility requires a blend of patience, strategy, and informed decision-making.

By understanding the triggers of market swings and adopting a disciplined approach, investors can position their portfolios to weather the ups and downs while aiming for long-term growth.

1. Embrace a long-term perspective

The first step in managing volatility is adopting a long-term investment strategy. Historically, the markets have trended upwards over the long term despite short-term fluctuations.

By focusing on long-term goals, investors can avoid making hasty decisions based on temporary market movements.

2. Diversification is key

Diversification across different asset classes (stocks, bonds, real estate) and within asset classes (various sectors, industries, geographic locations) can reduce your portfolio's susceptibility to market volatility. This strategy ensures that a decline in one sector doesn't disproportionately affect your entire portfolio.

3. Embrace the power of dollar-cost averaging

Dollar-cost averaging involves regularly investing a fixed amount of money, regardless of the market's condition. This method can mitigate the impact of market volatility, as you buy more shares when prices are low and fewer when prices are high, potentially lowering the average cost per share over time.

4. Stay informed, but don't overreact

Staying informed about market trends and economic indicators is crucial, but it's equally important not to overreact to short-term market movements.

Emotional investing can lead to poor decision-making. Instead, focus on your investment strategy and adjustments based on changes in your financial goals or risk tolerance.

Foolish takeaway

Navigating market volatility requires a combination of strategic planning, emotional discipline, and an understanding of market dynamics.

By embracing a long-term perspective, diversifying your investments, utilising dollar-cost averaging, and making informed decisions without succumbing to panic, you can not only weather volatile markets but also capitalise on the opportunities they present.

Remember, volatility is not just a challenge to overcome; it's a landscape to navigate for growth.

The post Strategies for successfully navigating market volatility appeared first on The Motley Fool Australia.

More reading

• How much superannuation do you need to retire? It's probably a lot less than you'd think
• Here are the top 10 ASX 200 shares today
• ASX 200 suddenly turns lower as fresh war fears hit before Easter
• Why did the ASX 200 just plunge 1.4% in Thursday afternoon trade?
• This monthly income ASX ETF yields 7%, and every ASX investor should take note

Motley Fool contributor Katherine O’Brien 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.

ASX resources shares had a booming August 2021 earnings season. Commodity prices were strong for much of FY21, boosting returns for resources shareholders.

The iron ore price rose above US$220 a tonne earlier this year benefitting major miners such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG). The gold price has also been elevated, boosting incomes for gold miners such as Newcrest Mining Ltd (ASX: NCM).

This translated into strong cash flows and record profits for ASX resources shares. Shareholders were rewarded with outsize dividends, many of which may flow back into the share market given current low interest rates.

COVID-19 did not cause serious disruptions to resource production, and government stimulus measures increased demand for raw inputs, leading to higher commodity prices. 

How have ASX resources shares performed against the market?

ASX resources shares have underperformed the broader market recently, possibly on fears that higher commodity prices won't last.

The All Ordinaries Index (ASX: XAO) is up 10% over 2021. However, the BHP share price has fallen 4.3% since January and the Rio Tinto share price is down 7.5%. Shares in Fortescue Metals have plummeted 26.3% over 2021, while the Newcrest Mining share price is down 11%.

This month, iron ore prices fell to their lowest level since December last year, while gold prices have also backed away from recent highs.

Who are the winners this earnings season? 

Despite the recent withdrawal in commodity prices, ASX resources shares benefited from strong prices for most of FY21, leading to plenty of earnings season winners.

Rio Tinto and Fortescue achieved record financial results in the period to 30 June — Rio Tinto's earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year grew 118% to $21,037 million while Fortescue's earnings (EBITDA) for the full year grew 96% to US$16.4 billion.

Government stimulus in response to COVID-19 pressures has driven strong demand at a time of constrained supply resulting in a spike in prices. Rio Tinto reported free cash flow of $10.2 billion, with underlying earnings per share of 751.9 US cents, a 156% increase on FY20. The miner declared an interim dividend of 561 US cents per share, representing 75% of underlying earnings. 

Fortescue achieved record shipments, revenue, earnings, and cash flow in FY21, reflecting strong performance across the supply chain and heightened customer demand. Shareholders were rewarded with a $2.11 final dividend, bringing FY21 dividends to A$3.58 per share, a 103% increase on the previous year. This represented an 80% payout of net profit after tax, which was US$10.3 billion, up 117%. 

Fortescue finished the financial year with cash on hand of US$6.9 billion and net cash of US$2.7 billion. Delivering its second consecutive year of record performance, Fortescue is investing in its iron ore operations as well as pursuing opportunities in renewable energy. 

Newcrest also delivered record profits and free cash flows, delivering on full-year guidance. The gold miner produced 2.1 million ounces of gold and 142.7 thousand tonnes of copper (a record) in FY21.

The company has kept costs low, allowing for record margins even as the gold price has increased across the year.

This translated to record statutory and underlying profits for Newcrest of $1.2 billion, up 80% and 55% respectively. Annual free cash flow was a record $1.1 billion. Newcrest declared a fully franked final dividend of US 40 cents per share, 129% higher than the prior year. This brought full-year dividends to a record US 55 cents per share, equal to a 41% payout of FY21 free cash flow. 

And the losers? 

There were no real losers amongst resources shares this earnings season — BHP also delivered strong financial results and a record full-year dividend. BHP's earnings (EBITDA) increased 69% to US$37.4 billion, with free cash flow up 140% to US$19.4 billion.

Iron ore accounted for the bulk of earnings, at US$26.3 billion, followed by copper with earnings of US$8.5 billion. Earnings per share increased 88% to US 337.7 cents per share assisted by a strong underlying performance across the portfolio of assets. A final dividend of US 200 cents per share was declared. This brings full-year dividends to US 301 cents per share, a 151% increase on FY20. 

Simultaneously with the release of its full-year results, BHP announced plans to enter a merger with Woodside Petroleum Limited (ASX: WPL). The companies plan to combine their respective oil and gas portfolios in an all-stock merger, creating a global top 10 energy company by production.

BHP's oil and gas business would merge with Woodside, with Woodside issuing new shares to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders. The merger is intended to maximise the value of BHP's oil and gas assets through increased operating scale and synergies. 

What is the outlook for ASX resources shares?

Fortescue has provided guidance for iron ore shipments of 180 — 185 million tonnes in FY22. This would be on par with the 182.2 million tonnes of ore shipped in FY21. Capital expenditure in FY22 is projected at US$2.8 — US$3.2 billion, slightly below the US$3.6 billion spent in FY21.

Rio Tinto has provided guidance for iron ore shipments of 325 to 340 million tonnes over 2021. Capital expenditure is expected to be ~$7.5 billion a year for each of FY22 and FY23. 

Newcrest is in a strong financial position with net cash of $176 million as at 30 June 2021 and significant liquidity. This enables investment in attractive growth projects. The gold miner will fund a pipeline of organic growth options from expected cash flow generation as well as the strong balance sheet.

Newcrest has provided guidance for gold production of 1,800 — 2,000 million ounces in FY22 and copper production of 125 – 130 thousand tonnes of copper. 

BHP is focused on executing the merger with Woodside, which it says will provide shareholders with a choice to weight exposure between BHP and petroleum via Woodside. The combined entity will have a greater scale and diversity of geographies, products, and markets. A more diversified product portfolio is intended to support energy transition. 

The post How have ASX resources shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 mining shares this fund manager is backing for long-term growth
• Buying ASX 200 mining shares? Here's how Rio Tinto, Fortescue and BHP stacked up in March
• Why sitting out this ASX share market chaos could cost you big
• Why now could be the perfect time to buy ASX dividend stocks
• $7,500 invested in Rio Tinto shares 10 days ago is now worth…

Motley Fool contributor Katherine O’Brien 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 Bruce Jackson.

ASX energy shares play a vital role in powering the economy. These companies are involved in producing and supplying energy, developing oil and gas reserves, and refining and fuel production.

Woodside Petroleum Limited (ASX: WPL), engaged in petroleum exploration and production, is the ASX's largest energy stock. Santos Ltd (ASX: STO), an oil and gas producer, and AGL Energy Limited (ASX: AGL), which produces and sells electricity, are also major players.

Results for ASX energy shares were mixed in the August earnings season — the sector is currently in a state of flux, with several mergers and demergers planned.

As society moves toward cleaner energy sources, industry participants are restructuring and refining operations as they position their businesses for the future. 

How have ASX energy shares performed against the market?

Shares in the energy sector have underperformed the broader market in 2021. The AGL share price has declined steadily, falling almost 50% over the course of the year. By contrast, the All Ordinaries Index (ASX: XAO) has gained more than 10% year to date.

AGL's share price fall means the company was removed from the S&P/ASX 50 (ASX: XFL) in the most recent quarterly rebalance. Share in Woodside Petroleum have also dropped this year, currently down more than 16% year to date, while the Santos share price is around 6% lower for the year. 

Who are the winners this earnings season? 

Santos was a winner this earning season, reporting record half-year production and sales volumes.

Production increased 23% while sales volumes were up 15%. Product sales revenue reached US$2,040 million, providing a free cash flow of US$572 million.

Net profit was US$354 million, up from a loss of US$289 million in 2020. This allowed for the payment of a fully franked dividend of US5.5 cents per share, 162% higher than the previous interim dividend. 

Santos is progressing a planned merger with Oil Search Ltd (ASX: OSH), under which Santos will acquire all shares in Oil Search for consideration of new Santos shares. Oil Search shareholders are expected to hold approximately 38.5% of the merged group, with Santos shareholders owning approximately 61.5%.

The merged entity is expected to have a pro forma market capitalisation of A$21 billion, positioning it among the 20 largest global oil and gas companies. 

Improved oil and gas prices in 1H 2021 boosted Woodside Petroleum's earnings before interest, tax, depreciation and amortisation (EBITDA), which increased to $1,496 million from $974 million in 1H2020.

The company reported that sales revenue was boosted by a recovery in LNG and oil demand towards pe-pandemic levels. Underlying profit increased by 17% to $354 million for the half-year.

The company declared an interim dividend of US 30 cents per share, representing a payout ratio of approximately 80% of underlying profit after tax. The result reflected a strong rebound in market conditions following the uncertainty brought on by COVID-19 in 2020. 

The day before the release of its half-year results, Woodside announced plans to enter a merger with BHP Group Ltd (ASX: BHP). The plan is for the companies to combine their respective oil and gas portfolios by an all-stock merger. This will create a global top 10 independent energy company by production.

BHP's oil and gas business would merge with Woodside, and Woodside would issue new shares to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders. 

And the losers? 

AGL's earnings (EBITDA) fell 18% in FY21 to $1,666 million, reflecting a challenging year for the energy company.

Results were impacted by lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll off of legacy supply contracts.  Underlying profit after tax fell 34% to $537 million, reflecting the impact of increasing generation supply and lower demand arising from the pandemic and milder weather.

A statutory loss of $2,058 million was reported, including $2,929 million of impairment losses previously announced. Despite challenges in the wholesale market, AGL continues to consolidate its position as Australia's largest multi-product energy retail with solid organic and inorganic growth. The company added 254,000 services to customers in FY21, with customer churn flat across the year. 

AGL has confirmed it intends to undertake a demerger to create two energy businesses with separate listings on the ASX. AGL Energy Limited is to become Accel Energy Limited, a baseload power producer focused on redeveloping its sites as low-carbon industrial energy hubs.

AGL Australia Limited, an energy retailer backed by flexible energy trading, storage and supply, will be demerged. The demerger is intended to protect value and provide greater strategic focus for both entities. 

What is the outlook for ASX energy shares?

AGL has provided guidance for underlying EBITDA of $1,200 million to $1,400 million and net profit after tax of $220 million to $340 million in FY22. The company expects to deliver a $150 million reduction in operating costs (excluding depreciation and amortisation) in FY22 compared to FY20.

AGL has expressed cautious optimism regarding its outlook, noting it is well-positioned to benefit from any sustained recovery in wholesale electricity prices. Plans are progressing to implement the demerger in the fourth quarter of FY22. 

Thanks to improved oil prices, Santos says it is on track to deliver free cash flow of more than $1.1 billion in 2021.

Santos and Oil Search are expected to sign a binding merger agreement in the coming weeks, with the due diligence period set to expire on 13 September 2021. The merger is expected to create a regional champion with a diversified portfolio of long-life, low-cost oil and gas assets. Substantial potential synergies are expected to be unlocked. 

The Woodside BHP merger is expected to take place during the second quarter of the 2022 calendar year.

The expanded Woodside will boast a high margin oil portfolio and long life LNG assets with resilient, high margin operating cash flows. These assets are expected to generate attractive returns for the next decade but will need to be positioned within society's transition to clean energy. 

The post How have ASX energy shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• 5 things to watch on the ASX 200 on Thursday
• How ASX 200 energy shares like Santos, Beach and Woodside surged in March's sinking market
• Why are AGL shares rising today?
• These were the best-performing ASX 200 shares in March

Motley Fool contributor Katherine O’Brien 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 Bruce Jackson.

The Australian telecommunication landscape is dominated by Telstra Corporation Ltd (ASX: TLS), but there are a host of smaller players listed on the ASX that are making their mark on the industry.

The August earnings season gave investors the opportunity to examine the performance of not just Telstra, but ASX telecommunication shares including TPG Telecom Ltd (ASX: TPG), Spark New Zealand Ltd (ASX: SPK), and Chorus Limited (ASX: CNU). 

How have ASX telecommunications shares performed against the market?

Telstra shares have performed strongly this year. The Telstra share price is up 28% year to date, compared to 12.5% for the All Ordinaries Index (ASX: XAO) over the same period.

Shares in Spark are up just 0.73% for the year, trading slightly below levels last seen pre-COVID. The TPG share price, on the other hand, is currently down 6% since January. Similarly, the Chorus share price has fallen 9.2% in 2021. 

Who are the telco winners this earnings season? 

Telstra announced it had reached a turning point in its financial performance and outlook in FY21.

The telecommunications giant delivered results in line with guidance and is projecting earnings growth in FY22. Telstra says it is building financial momentum. It reported strong performance in its mobile business, green shoots in certain growth businesses, and a diminishing impact from the NBN.

Total income decreased 11.6% to $23.1 billion and reported EBITDA decreased 14.2% to $7.6 billion in FY21. Profits, however, increased 3.4% to $1.9 billion.

Shareholders will receive a fully franked final dividend of 8 cents per share, consisting of an ordinary dividend of 5 cents and a special dividend of 3 cents, This brings total dividends for the year to 16 cents per share. 

Telstra is three years into a four-year transformation strategy. The company says it is on track or has delivered around 80% of its targets.

"We have transformed Telstra to become a simpler, more digitally enabled and leaner business," CEO Andrew Penn said.

The company is undergoing a restructure which involves the separation and sale of InfraCo Towers. Up to $1.35 billion of the proceeds will be returned to shareholders in FY22 via an on-market share buyback.

According to Penn, this is a clear demonstration of how the company is creating additional long-term value for shareholders. The remainder of the proceeds from the transaction will be used for debt reduction to ensure Telstra maintains balance sheet strength and flexibility. 

Spark New Zealand reported its half-year results last month which revealed a decline in revenue driven by a loss of roaming revenues. Nonetheless, the phone and internet provider managed to deliver earnings growth at the top end of the guidance range thanks to disciplined costs management.

Revenue declined 0.8% to $3,953 million but Spark New Zealand's earnings grew 1% to $1,124 million. Higher depreciation and amortisation costs and an increase in tax expenses drove a decline in profits, with NPAT falling 8.6% to $384 million. Mobile service revenue grew 0.5%, but the broadband market saw a revenue decline of 1.3% due to continued competitive pressure and slower overall market growth.

Although the New Zealand economic recovery has been stronger than expected, closed international borders are impacting Spark New Zealand through the loss of roaming revenues and lower overall growth in some markets. 

And the losers?

Chorus was another telecommunications provider that experienced a drop in revenue due to softer market conditions. Together with competition from other fibre and wireless networks, this resulted in a $12 million drop in revenue compared to FY20.

Chorus' earnings, however, increased marginally at $649 million compared to $648 million in FY20. This was thanks to tight management of costs and the absence of once-off COVID-19 costs incurred in FY20. Chorus boasted 871,000 active fibre connections at the end of the financial year, up from 751,000 the year before. This is well on the way to Chorus' target of 1 million connections next year. 

The TPG share price dipped on the release of the company's half-year results last month, which revealed an 8% drop in profits. This was impacted by the fact that HY20 profits benefitted from a one-off accounting credit.

The HY21 results reveal the full impact of the Vodafone TPG merger, as the HY20 results only had four days' contribution from TPG Corporation. Reported revenue increased 71% from HY20 to $2.63 billion while TPG's earnings increased 67% to $886 million. The merger synergy program is on track and delivered $38 million in cost synergies during HY21 as part of its $70 million synergy target for 2021. 

What is the outlook for ASX telecommunication shares?

Telstra is predicting a return to growth for its underlying business in FY22. The company has provided full-year guidance for income of $21.6 — $23.6 billion and earnings of $7.0 — $7.3 billion.

The company is continuing to progress the proposed corporate restructure of its organisation, which involves the creation of separate subsidiaries. The restructure is expected to be undertaken by way of a scheme of arrangement, for which shareholder approval should be sought before the end of the year. 

Spark New Zealand has significant infrastructure investments planned for FY22. An additional $25 million is being invested to accelerate the 5G rollout. This will support the company in delivering 90% population coverage by the end of calendar 2023. Spark New Zealand is also exploring shared ownership models for 'passive' components of its mobile network and fibre. Discussions are ongoing in this regard and there is no certainty any transaction will proceed. 

TPG's key strategic focuses for the second half of the year are bringing more fixed customers onto its own infrastructure, improving mobile performance, and achieving its merger cost synergy target. It is on track to reach 85% 5G population coverage in 10 of Australia's largest cities and regions by the end of 2021, supporting future growth in mobile and home wireless. 

Chorus has provided guidance for FY22 earnings of $640 million — $660 million, with total dividends of 26 cents per share. The company is transitioning to a new dividend policy based on a majority pay-out range of free cash flow.

The dividend is temporarily constrained by high capital expenditure related to ultra-fast broadband, however Chorus expects to provide further detail on the dividend outlook in February 2022. 

The post How have ASX telecommunication shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX dividend stocks for reliable income
• Here are the top 10 ASX 200 shares today
• Why now could be the perfect time to buy ASX dividend stocks
• Is Telstra stock a buy at $5.37 a share?
• 3 must-own ASX dividend shares which belong in every portfolio

Motley Fool contributor Katherine O’Brien 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.