There are arguably two types of Australians: Those that relish the nine-to-five grind and those that don't. For those in the latter group, living a never-ending weekend while raking in a 'wage' probably sounds like a dream come true. Fortunately, ASX dividend shares can offer such passive income.

And building a 'wage' through investing in Aussie stocks need not be overly expensive.

I believe that by regularly setting aside funds to buy undervalued, high-quality ASX dividend shares, I could begin preparing an early retirement (or second wage) in 2023. Here's how.

How much do I need to invest to see my wage in dividends?

As of August 2022, the average Australian employee was paid $1,250 each week, according to the Australian Bureau of Statistics. That's around $65,000 annually, pre-tax. So, let's use that as our base.

If one was to realise a notable – but not impossible – annual dividend yield of 8%, one would need an $815,000 portfolio to receive around $65,000 each year in dividend income.

If you're anything like me, that's far from pocket change! Fortunately, it doesn't need to be invested all at once. Here's how I would build it up over the years.

Building a portfolio using compounding

If I were aiming to build a portfolio of dividend shares capable of growing to be worth $815,000, I'd focus on compounding my earnings for now.

By reinvesting any dividend income in shares, I could build up my holdings without forking out extra cash.

I think I could put $250 of the average $1,250 weekly wage aside to invest.

If I did so, and I could realise an 8% yield while reinvesting all my dividends, my portfolio could be worth around $815,000 in under 24 years. That could feasibly see me retiring by 2047.

If I made some lifestyle changes, I could potentially stretch my wage further.

By investing $500 a week, I could reach my goal in under 17 years. That could potentially allow me to kick back for the remainder of my 'working' days from 2040.

Identifying ASX dividend shares to buy

Of course, realising a consistent 8% dividend yield is a hard – but not impossible – ask.

Right now, S&P/ASX 200 Index (ASX: XJO) companies like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), and Cromwell Property Group (ASX: CMW) each offer yields of around 8%.

Though, higher yields can also come with greater risks. On the other hand, a lower yield would increase the time it would take to reach my goal.

Fortunately, I think there's a middle ground. An investor buying ASX value shares that are also capable of paying dividends may find themselves receiving higher returns when their investment's true worth is realised.

Identifying value shares is notoriously tricky. And it's likely made trickier if one is seeking passive income on top. However, it can be done.

If that was my aim, I would analyse a company's business, its true value, balance sheet, and strengths and weaknesses to assess whether it might be able to grow its valuation and payouts in the future.

Still, even the most considered investment can't be guaranteed to provide either dividends or capital gains.

The post Sick of the grind? Here's how I'd aim to replace my wage with dividend income in 2023 appeared first on The Motley Fool Australia.

Investors have probably heard of names like BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA). They are popular dividend picks for some investors.

But, both a large business and a small one can pay a good dividend yield. So, let's look at these two names with high projected payouts.

Cromwell Property Group (ASX: CMW)

Cromwell describes itself as a real estate investor and fund manager with operations across three continents and a global investor base.

According to estimate data on Commsec, the business is projected to pay a distribution per security of 5.8 cents in both FY23 and FY24. This translates into a forward distribution yield of 8.2%.

While the ASX dividend share has been disrupted by rising interest rates, it has been working on simplifying the business by disposing of non-core assets and focusing on being a global capital-light real estate fund manager as a way to enhance long-term value for security holders.

For example, it recently sold a property in Wollongong for $53 million, a 3.9% premium to the book value after settlement adjustments.

It's going to reduce gearing and continue to "de-risk the business until volatility in the global equity and debt markets begins to ease and attractive opportunities for reinvestment present themselves."

Fletcher Building Limited (ASX: FBU)

This business has multiple segments. It manufactures building products, including insulation and cement. The ASX dividend share also builds homes, buildings and infrastructure.

The Fletcher Building share price has plunged around 30% over the past year. This has pushed up the prospective dividend yield for the business.

According to the estimates on Commsec, it could pay a dividend yield of 8.4% in FY23.

The company recently gave an update which said that in its products and distribution divisions, sales volumes are "broadly in line with expectations", slightly softer in the civil sector and robust in the residential finishing trades and the commercial sector.

Management believes that cost inflation is being managed effectively, and gross margins were slightly ahead of expectations.

Fletcher Building said that the Australian business is continuing to improve despite the first half of weather and transport challenges. It's expecting the earnings before interest and tax (EBIT) margin in Australia to be 5%.

In the ASX dividend share's residential and development division, house prices and margins are in line with expectations at around 10% below the peak in late 2021. House sales remain lower than planned.

Its FY23 EBIT target, excluding significant items, is at least $855 million. It said that the balance sheet continues to be in a strong position.

The post 2 ASX dividend shares you've probably never heard of forecasting yields over 8% appeared first on The Motley Fool Australia.

It was the final session before Christmas, and all through the bourse, ASX shares tumbled. The S&P/ASX 200 Index (ASX: XJO) plummeted 0.63% on Friday to close the week at 7,107.7 points. That marks a 0.57% week on week fall.

Today's slump followed a similarly dire session on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) fell 1%, the S&P 500 Index (SP: .INX) dropped 1.5%, and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) plunged 2.2% amid the release of positive economic data.

The United States' gross domestic product rose to an annual rate of 3.2% in the third quarter, according to the third estimate from the Bureau of Economic Analysis. The findings sparked fears of further rate hikes, Reuters reports.

It's probably no surprise then that the rate-sensitive S&P/ASX 200 Information Technology Index (ASX: XIJ) led today's downturn. It fell 1.6% with Novonix Ltd (ASX: NVX) coming in as its worst performer.

The S&P/ASX 200 Energy Index (ASX: XEJ) also plunged 1.1% on the back of a rough night for oil prices. Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) outperformed all other sectors, gaining 0.2%.

Fortunately, however, not all ASX 200 shares were caught up in the sell off.

Top 10 ASX 200 shares countdown

The index's top performing share today was TPG Telecom Ltd (ASX: TPG). Its gains came amid a bullish brokers note tipping it to gain another 11% to trade at $5.50.

Today's biggest gains were made by these shares:

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

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

The S&P/ASX 200 Index (ASX: XJO) broke its winning streak in a dramatic way on Thursday. The index closed 1.84% lower at 6,857.9 points.

Its suffering came after the United States Federal Reserve upped interest rates by 0.75% to between 3.75% and 4% in an effort to tackle rampant inflation overnight. Also likely weighing on markets was chair Jerome Powell's warning that future hikes are likely.  

Wall Street plummeted on the back of the news. The Dow Jones Industrial Average Index (DJX: .DJI) fell 1.6%, the S&P 500 Index (SP: .INX) tumbled 2.5%, and the Nasdaq Composite (NASDAQ: .IXIC) plunged 3.4%.

Back home, the S&P/ASX 200 Materials Index (ASX: XMJ) put out today's worst performance, falling 3%.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) dumped 1.2% despite rising oil prices.

The Brent crude oil price lifted 1.6% to US$96.16 a barrel overnight, while the US Nymex crude oil price gained 1.8% to US$90 a barrel.

But not all was dire. The S&P/ASX 200 Communications Index (ASX: XTJ) was the only sector to close in the green, having gained 0.1%.

So, with all that in mind, which ASX 200 share took out today's top spot? Keep reading to find out.

Top 10 ASX 200 shares countdown

The biggest gain on the ASX 200 today was posted by Perpetual Limited (ASX: PPT). Its share price rocketed 7% after the company rejected a $30 per share takeover bid, saying the offer undervalued it.

Today's biggest gains were made by these shares:

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

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

It was a rough start to the week for the S&P/ASX 200 Index (ASX: XJO), with the index recording its worst session since June. Indeed only four ASX 200 shares finished in the green today. The index closed 2.06% lower at 6,957.60 points.

It followed a disastrous Friday on Wall Street that saw the S&P 500 Index (SP: .INX) slip 3.4% and the Dow Jones Industrial Average Index (DJX: .DJI) dump 3%. Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fell 3.9%.

Perhaps unsurprisingly then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) was today's worst performing sector. It fell 4.4%.

The S&P/ASX 200 Materials Index (ASX: XMJ) came in as the second worst performing sector, with a 2.4% drop. That's despite iron ore futures lifting 0.4% to US$105.38 a tonne on Friday while gold futures slumped 1.2% to US$1,749.80 an ounce. However, Singapore iron ore futures fell as much as 4.4% today to US$101.15, The Australian reports.

And new data from the Australian Bureau of Statistics finding retail turnover lifted 1.3% in July wasn't enough to boost consumer shares today. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) fell 0.9% while the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slumped 2.1%.

Indeed, all of the ASX 200's 11 sectors closed lower today. Nonetheless, four shares managed to record gains, while plenty of others outperformed the broader market.

Top 10 ASX 200 shares countdown

Today's best performing ASX 200 share was none other than A2 Milk Company Ltd (ASX: A2M). It gained 10% as the company posted a 42.3% year-on-year net profit after tax (NPAT) gain for financial year 2022 and announced an on-market buyback.

While the market can't boast 10 gainers, today's top performances were put on by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

The S&P/ASX 200 Index (ASX: XJO) is trading in the green on Thursday, buoyed by results from many shares that call it home.

Earnings season is in full swing this week, with some of the market's biggest names releasing results. Here are three shares recording notable gains on the back of their recent performance.

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is soaring 11% today to trade at $3.53. Its gain comes after the financial services provider posted an underlying net profit after tax (NPAT) of $234.5 million for financial year 2022. That represents a whopping 59% year-on-year improvement.

It also posted a $3.1 billion improvement in platform flows and an 11.8-cent final dividend.

The company's CEO Renato Mato commented, saying:

Our results demonstrate we are pursuing the right strategy and implementing it with focused and accelerated execution.

The company, formerly known as IOOF, realised benefits of its recent acquisition of MLC. Integration of the business is now expected in 18 months, rather than the three years previously anticipated.

Viva Energy Group Ltd (ASX: VEA)

ASX 200 share Viva Energy is also trading in the green on the back of its half-year earnings today. The stock has gained 0.9% to trade at $2.815 at the time of writing.

The energy company posted $611.7 million of earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 139% increase on that of the prior corresponding period. Its NPAT also lifted 218% to $355.4 million while its sales volumes rose 5%.

CEO and managing director Scott Wyatt commented:

Viva Energy's diversified business model has continued to provide resilience to volatile market conditions. Exposure to global refining markets and a diverse range of commercial segments within Australia has provided significant growth and offsets softer conditions in the Retail market.

Cromwell Property Group (ASX: CMW)

Finally, shares in ASX 200 real estate and fund manager Cromwell are trading 0.25% higher at 79.2 cents. The stock is also gaining on the back of financial year 2022 earnings.

Cromwell CEO Jonathan Callaghan commented on the company's results, saying:

I'm pleased to report a solid result, with management activities undertaken throughout the year focused on building the foundations for our renewed vision. We are fully committed to pivoting Cromwell to become a simpler and more capital efficient business with a greater focus on driving securityholder returns through funds and asset management

The company reported $568.8 million of revenue – a 4.4% year-on-year loss – as well as $263.2 million of profit – down 14.6%. Its full-year dividends also dropped by half a cent to 6.5 cents per share.

Speaking on its outlook, Callaghan said:

Similar to FY22, the current financial year will be one of change as we continue to simplify the business and focus on reallocating capital from non-strategic investments to new opportunities which will drive growth in our funds management platform.

The post 3 ASX 200 shares in the green following earnings updates appeared first on The Motley Fool Australia.

Many ASX property shares have come under pressure in recent weeks, as concerns over rising interest rates have weighed on investor sentiment.

Unease amid macroeconomic events has led to a sell-off in the sector, with some real estate shares seeing notable losses. While the S&P/ASX 200 Index (ASX: XJO) has slipped 4.2% lower in the past week, the real estate sector is 9.2% worse off.

In light of the situation, we are taking a look at three ASX property shares that are currently debt-heavy. As such, these companies could suffer further falls in the event of additional interest rate hikes.

Debt strapped property shares on the ASX

Before we dive into these companies, it is important to note that high debt levels don't necessarily mean financial trouble is inevitable. At present, all three have interest payments 'well covered' by their earnings before interest and tax (EBIT).

Although, with debt-to-equity ratios above 50%, these ASX property shares are certainly in a more precarious position than they would be if debts were below 40%.

Centuria Office REIT (ASX: COF)

We begin with the least indebted ASX property share on our list, both in percentage and absolute terms. Centuria Office REIT is a real estate investment trust (REIT) operating under the guidance of Centuria Capital Group (ASX: CNI).

As of 31 December 2021, the office real estate-focused REIT recorded $810.22 million worth of debt on its balance sheet. This figure corresponds with a 54.5% debt-to-equity ratio, which is considered high. Even after cash is factored in, the net debt level is around 48%.

Despite this, analysts at Morgans are expecting a distribution of 17 cents per unit in FY23.

Cromwell Property Group (ASX: CMW)

The next ASX property share on our list is the 'cheapest' based on price-to-earnings (P/E) ratios. Global real estate fund manager Cromwell Property Group operates across Europe, Singapore, Australia, and New Zealand with a total of $12.1 billion in assets under management.

At the end of last year, Cromwell reportedly held $2.166 billion worth of debt on its balance sheet. This translates to an 80.3% debt-to-equity ratio, which reduces to 76.3% net of cash. Though, it is worth mentioning the group maintained a 22% profit margin during the depths of the pandemic.

Scentre Group (ASX: SCG)

Lastly, the final installment in our debt-burdened ASX property shares is Scentre Group. This real estate company is known for its portfolio consisting of 42 Westfield centres mostly scattered throughout Australia and New Zealand.

Scentre Group is the most debt-loaded out of our three shares, carrying a total of $15.918 billion worth of debt. Doing the sums, this works out to be a debt-to-equity ratio of 83% and 78% net of cash.

Fortunately for shareholders, the group has swung back into profitability after a difficult period in 2020. However, investors are understandably cautious about how higher interest rates might make operations more expensive for ASX-listed property shares like Scentre Group looking forward.

The post Feel the squeeze: 3 ASX property shares with a whole lot of debt appeared first on The Motley Fool Australia.

Income investors are always on the hunt for high-yielding shares. However, high yields don't necessarily mean high overall returns. For example, sometimes high-dividend stocks can be misleading because of their high yield but depressed share price; this is known as a 'fallen angel'. Regardless of how you look at them, we have put together a list of the 5 highest-yielding ASX 200 stocks based on dividend yield.

Perhaps to no one's surprise, iron ore producers feature heavily in the highest yielding stocks in the S&P/ASX 200 Index (ASX: XJO). This is a product of mainly two predominant factors that have played out over the past year. Firstly, the soaring price of the steelmaking commodity in the first half of the year. Secondly — ironically — is the tumbling price of the same commodity since July.

We'll cover this in more detail shortly, but now, let's dive into the highest yielding stocks in the ASX 200.

High yielding ASX dividend stocks

Cromwell Property Group (ASX: CMW)

The first cab off the ranks is diversified real estate investor and manager, Cromwell Property Group. Some background on Cromwell — it holds nearly $12 billion in assets under management, with over 2,700 tenant customers. These property assets are spread across 15 countries with the majority of the spaces leased as office spaces.

At the time of writing, Cromwell offers a dividend yield of 8.2% based on the dividend payments made over the last 12 months. The annual dividend per share (DPS) has been declining since 2018, while the dividend yield has stayed between the 6% to 9% range. This is due to the fall in the Cromwell Property share price in recent times, which inflates the dividend yield.

BHP Group Ltd (ASX: BHP)

Next on the list of the highest yielding dividend stocks in the ASX 200 is Australia's third-largest listed company, BHP.

A booming period for commodities meant the diversified miner experienced a bumper year for profits. In turn, the company unleashed a dividend bonanza on its shareholders. The increase in dividends paid out to shareholders increased ~150% year on year, bringing the dividend yield to 10.5%.

However, it is worth noting that this yielding has increased with the BHP share price collapsing ~30% from its highs on the back of the falling iron ore price.

AGL Energy Limited (ASX: AGL)

Another victim of declining DPS and surging yields is one of Australia's oldest companies, AGL Energy. It seems the $4 billion electricity and gas provider couldn't catch a break in the last 12 months as additional costs stacked higher and higher. Provisions for out-of-the-money renewable power-purchasing contracts and restoration of generations sites pulled AGL down to a $2.06 billion loss in FY21.

Despite the catastrophe, the company paid a total of 65 cents per share in dividends over the past year. Based on the current AGL share price, that equates to a dividend yield of 10.6%. Once again, this yield is boosted by the company's share price tumbling 54.3% during the payment of those dividends.

Rio Tinto Limited (ASX: RIO)

That brings us to the second-highest yielding dividend stock in the ASX 200, Rio Tinto. Once again, following a common thematic of the cash-heavy iron ore producers, Rio Tinto has gone on a dividend splurge over the past 12 months.

With profits ballooning to US$18.8 billion, up from US$7.2 billion in the prior year, the mining giant had plenty of ammo to distribute large payouts to shareholders over the past 12 months. As a result, the company's DPS for the last year stands at US$9.312. This equates to a dividend yield of 13% based on the current Rio Tinto share price.

Fortescue Metals Group Limited (ASX: FMG)

Finally, the highest yielding dividend stock in the ASX 200 is the fast-growing Aussie iron ore producer, Fortescue Metals.

Benefitting from the soaring iron ore prices in the first half of the year, the company chaired by Andrew 'Twiggy' Forrest grew its earnings by more than double the previous year. As a result, the company decided to increase dividends by a similar proportion, rising from US$1.403 to US$3.035 in the space of 12 months.

Unfortunately for shareholders, the Fortescue share price was the hardest hit out of the big iron ore producers, falling by nearly 50% over the last few months. As a result, the company's dividend yield has been inflated to an astronomical 27.9% — making it easily the highest yielding dividend stock in the ASX 200.

The post These are the 5 highest yielding dividend stocks in the ASX 200 appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) finished the day well into the green with an extra push after lunch. The benchmark index finished 0.44% higher at 7,302.5 points. Let's take a look at some of the ASX shares that were the most heavily traded today:

Whitehaven Coal Ltd (ASX: WHC)

Coal miner Whitehaven was one of the most active ASX shares on the markets again today, with 21.2 million shares traded by the end of the session. After another 5.2% rise in the Whitehaven share price today, the company's shares are now up by 61% over the last month. Investors have been turning to the coal miner as prices for the carbon-dense rock rally.

Cromwell Property Group (ASX: CMW)

Cromwell Property shares gained the interest of the market today. Following numerous ASX-listed real estate investors reporting substantial upticks in property valuations, the sector gained momentum across the board. Cromwell finished the session up 2.22%, with 24 million shares having been traded. Although the company didn't release an update today, SCA Property Group (ASX: SCP) did. SCA cited a 13.1% increase in its retail property portfolio since December 2020.

Scentre Group (ASX: SCG)

Another property beneficiary among the most traded ASX shares, Scentre Group gained 2.5% today. More than 28 million shares exchanged hands during Thursday's session. Once again, Scentre Group didn't post any announcements pertaining to its own property portfolio today. But it looks like investors were guessing it's likely experienced a similar appreciation in value. The optimism towards Scentre today is clear, with it taking out the top spot for most actively traded.

The post These 3 ASX shares were the most actively traded on Thursday appeared first on The Motley Fool Australia.

On Monday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week with a disappointing decline. The benchmark index fell 0.35% to 6,799.5 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market looks set to rebound on Tuesday. According to the latest SPI future, the ASX 200 is poised to open 41 points or 0.6% higher this morning. This is despite it being a mixed night of trade on Wall Street. Late on, the Dow Jones is up 0.35% but the S&P 500 is down slightly and the Nasdaq index has fallen 0.65%. The forced liquidation of positions held by the multibillion-dollar family office Archegos Capital Management has been weighing on US shares.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed higher despite the Suez Canal opening for business again. According to Bloomberg, the WTI crude oil price is up 0.85% to US$61.50 a barrel and the Brent crude oil price has risen 0.6% to US$64.96 a barrel.

Tech shares under pressure

Tech favourites such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) could have another tough day on Tuesday after US tech stocks sank lower overnight. This appears to have been driven by a small rise in bond yields on Monday. At the time of writing, the tech-focused Nasdaq index is down 0.65%.

Gold price sinks

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price tumbled lower. According to CNBC, the spot gold price is down 1.35% to US$1,711.20 an ounce. Traders were selling the precious metal after the US dollar strengthened and bond yields rose.

Shares going ex-dividend

A number of shares are going ex-dividend this morning and could trade lower. This includes Atlas Arteria Group (ASX: ALX), Centuria Industrial REIT (ASX: CIP), and Cromwell Property Group (ASX: CMW). Elsewhere, eligible Commonwealth Bank of Australia (ASX: CBA) shareholders can look forward to being paid the banking giant's 150 cents per share dividend this morning.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

For example, out of the top 10 large caps, the share prices of Lendlease Group (ASX: LLC), Vicinity Centres (ASX: VCX), and Scentre Group (ASX: SCG) all increased by 2% or more. In the mid caps, Cromwell Property Group (ASX: CMW), and Abacus Property Group (ASX: ABP) sit on the leaders table. 

What drove the ASX REITs performance today?

One strong driver is the housing figures released today by CoreLogic.

CoreLogic's most recent data shows that house prices nationally rose by 0.4%, with the exception of Victoria. Small markets like Darwin and Adelaide saw increases of 1.2%, with Canberra and Hobart recording rises of 1%. Perth and Brisbane recorded modest changes, up 0.6% and 0.5% respectively, while Sydney's housing prices edged up 0.1%. 

CoreLogic pointed to low stock levels and strong demand as drivers behind the October rises. As quoted in the Australian Financial Review (AFR), CoreLogic head of research Tim Lawless went on to say; 

I think partly we can attribute that to the fact they generally have had better management of the virus itself, so we haven't seen further lockdowns. But also they have better affordability and seem to be quite attractive to first-home buyers so there are some outside factors beyond the virus being better contained.

Other events 

DEXUS Property Group (ASX: DXS) today announced it has sold a North Sydney office tower above its book value. Moreover, it was recently reported that Amazon.com, Inc. (NASDAQ: AMZN) would be opening one of its fulfillment centres on a Dexus logistics park. It is estimated that Dexus has generated around $2 billion from planned exits and unsolicited offers recently. In a conversation with the AFR, Dexus chief investment officer Ross Du Vernet said:

We're selling assets at book value and we're buying back our stock at more than a 20 per cent discount to NTA [net tangible assets]. That is a very straightforward and value-enhancing trade for us.

The Dexus share price rose by 2.26% today.

Additionally, GPT Group (ASX: GPT) announced today it is planning to sell its 25% stake in 1 Farrer Place, the Sydney CBD landmark. At 30 June, its stake was valued at $584.6 million. The GPT Group has claimed two drivers behind the decision. First, the company prefers to hold or manage office towers it owns 50% or more of. Second, it intends to use the funds to grow its already increasing logistics pipeline.

The GPT share price finished the day up 2.98%.

The post Why REITs led the pack on the ASX today appeared first on The Motley Fool Australia.

The Cromwell Property Group (ASX: CMW) share price is climbing today after ARA Asset Management Limited (ARA) added a sweetener to its hostile takeover bid. The Cromwell share price is currently trading 3.4% higher to 91 cents.

News of the takeover bid by Singapore-based ARA Management became public on June 23 when the Cromwell board strongly advised against the move.

Which companies are involved?

Cromwell is a diversified real estate investor and manager with operations on three continents and a global investor base. Cromwell has a market capitalisation of $2.3 billion. As of 31 December 2019 the company had a direct property investment portfolio valued at $3.2 billion and total assets under management of $11.9 billion across Australia, New Zealand and Europe.

ARA Asset Management is an Asia Pacific real assets fund manager with a global reach. As at 31 December 2019, the ARA Group managed SGD$88 billion in gross assets across 28 different countries. The ARA Group is headquartered in Singapore and boasts that its investors include some of the world's largest pension funds, sovereign wealth funds, financial institutions, endowments and family offices.

How the takeover offer unfolded

Cromwell shares rallied on June 24 following news that ARA intended to acquire 29% of all Cromwell stapled securities in which it did not already hold an interest.  If successful, this would take ARA's stake in Cromwell to 52.6%. Cromwell management was – and still is – strongly against any takeover.

On July 21, Cromwell responded strongly to ARA's proportional bid telling investors to "ignore ARA's opportunistic proportional takeover offer and misleading statements". The company also said that ARA's bidders statement contained "material omissions and failed to disclose their true intentions".

However, it did conclude that ARA should not seize control without paying a premium. The latest offer has increased the amount ARA would pay.

ARA's latest offer

Today, the Cromwell share price is on the rise after ARA  upped its offer for Cromwell shares by 4.4 per cent. This comes as it seeks to win over everyday retail security holders and lift its stake through market purchases in Cromwell.

It remains to be seen if Cromwell shareholders will accept the higher offer.  ARA has stated that in the absence of a competing proposal emerging, it will not increase its offer further.

The higher offer means the Singapore-based company has raised its bid by just $32 million, despite the overall bid being worth around half a billion dollars.

The post Cromwell share price jumps on acquisition update appeared first on The Motley Fool Australia.

Trading in Cromwell Property Group (ASX: CMW) was temporarily paused Tuesday morning pending an announcement. The announcement, released at 10:06 am, related to an off-market proportional takeover bid from ARA Asset Management Limited (ARA). By close of trade Tuesday, the Cromwell share price had jumped 8.05% to 94 cents.

Why did the Cromwell share price jump?

Cromwell shares rallied following news that ARA intends to acquire 29% of all Cromwell stapled securities in which it does not already hold an interest. If successful, this would take ARA's stake in Cromwell to 52.6%. The offer price of 90 cents per share was slightly higher than Monday's closing price of 87 cents. According to Cromwell, ARA proposed it would execute the partial takeover by acquiring 29 out of every 100 Cromwell shares it doesn't already own. 

Cromwell Property Group announced the following in relation to the proportional takeover offer:

"Cromwell securityholders are advised to take no action in relation to the proportional offer. Cromwell notes the unsolicited and opportunistic nature of the proportional offer and that the proportional offer is not an offer to acquire all securities held by securityholders in Cromwell. Cromwell will provide a further announcement in due course when it has evaluated and assessed the terms of the proportional offer."

The announcement went on to state "In the interim, Cromwell will continue to operate and execute its business strategy in the ordinary course as previously flagged to the market on 4 June 2020".

What did ARA say?

In its letter to Cromwell, ARA boasted that "the offer price is a premium to Cromwell's recent trading prices despite ongoing market volatility". The offer represented a 9.8% premium to the company's 30-day volume weighted average price of 82 cents.

ARA already has an existing interest in Cromwell securities of 24%. The asset manager wrote "Given Cromwell's elevated gearing levels in conjunction with the uncertainty surrounding rental collections and asset values as a result of COVID-19, ARA is concerned that Cromwell will seek to undertake a material equity raising at a discount to the offer price".

It also suggested that the likelihood of a competing offer was reduced due to ARA's existing 24% stake in Cromwell.

What's next for the Cromwell share price?

The Cromwell share price is up 38.2% from its 52-week low of 68 cents. It's also down 25% since this time last year and nearly 30% below its 52-week high of $1.35 reached in November 2019. 

The proportional takeover bid could play out in a number of ways. Overall, however, it should be positive for shareholders. At the current bid, it seems unlikely that shareholders will accept given the Cromwell share price is now already above 90 cents. However, a new higher bid may be accepted by shareholders enabling ARA to take its holding to above 50%. 

If ARA is successful in obtaining a holding greater than 50%, it will have the ability to appoint board members. This would then enable the asset manager to execute its own strategies for Cromwell Property. As suggested yesterday, this would likely include blocking any potential capital raisings. 

Previously on 2 March, Cromwell released an announcement suggesting that ARA was attempting a 'takeover by stealth'. Cromwell's management also clashed with the asset manager over its attempt to elect an appointed nominee to the board three months after his appointment had been struck down at the AGM. At this time Cromwell also stated that shareholders should take no action in response to approaches by ARA.

Stay tuned…

The post Why the Cromwell share price soared higher yesterday appeared first on The Motley Fool Australia.

Earlier in the day there were fears that a potential trade deal between the US and China was off the table. But President Trump soon confirmed on Twitter that wasn't the case.

Woolworths Group Ltd (ASX: WOW) profit hasn't grown like its sales

Woolworths announced a number of things today in an update to the market. The Woolworths share price declined around 0.75%.

The ASX 200 supermarket business said that for FY20 it expects to report earnings before interest and tax (EBIT) (post AASB 16 and before significant items) of between $3.2 billion to $3.25 billion. On a comparable basis, FY19's EBIT was $3.29 billion.

A sizeable part of the disappointing EBIT was the fact that the hotels division is still losing money due to COVID-19 restrictions. FY20 Hotels EBIT is expected to be $160 million to $170 million, compared to $355 million in FY19.

The FY20 fourth quarter sales growth for the ASX 200 business was more impressive. In the 10 weeks to 14 June 2020, Australian food sales grew by 8.6%, New Zealand food sales grew by 15.1%, Big W sales grew by 27.8% and Endeavour Drinks sales grew by 21.4%.

Woolworths plans to transform its NSW grocery supply chain network by developing an automated regional distribution centre and a semi-automated national distribution centre at Moorebank Logistics Park in Sydney. Woolworths will invest $700 million to $780 million in the technology and fitout of the two distribution centres over the next four years and it has signed an initial lease term of 20 years with Qube Holdings Ltd (ASX: QUB). The Qube share price went up 7.8% today.

The decision to carry out this supply chain investment will result in a one-off pre-tax cost of $176 million. This will be counted as a significant item in FY20. The other significant items for FY20 include $230 million for Endeavour Group transformation costs and $185 million for salaried store team member remediation.

Western Areas Ltd (ASX: WSA) share price surges

The share price of ASX 200 resource business Western Areas jumped 16%.

Western Areas announced today it had some highly encouraging results from the first diamond drill hole at the Sahara prospect within the Western Gawler Project in South Australia. It has intersected over 200m of nickel and copper bearing sulphides.

There is an average of 2% to 5% of sulphide content across the entire intrusive body.

Western Areas managing director Dan Lougher said: "This is an excellent result from our first drill hole at the Sahara prospect, intercepting broad widths of nickel and copper bearing mineralisation. We keenly await the assay results, but it is already clear from what we have seen in the drill core, that we have a significant exploration result that merits immediate follow up work."

Cromwell Property Group (ASX: CMW) share price rises 8%

The Cromwell share price rose 8% to $0.94 today as news came of a proportional takeover offer from large shareholder ARA Asset Management.

ARA has made an off-market offer to acquire 29% of all Cromwell shares not currently owned by ARA for $0.90 per stapled security.

The ASX 200 share's leadership has advised shareholders to take no action, stating that the offer was unsolicited and opportunistic in nature.

The offer is a 3.4% premium to the last closing price of $0.87. It's also a 9.8% premium to the 30-day volume weighted average price of $0.82.

AMP Limited (ASX: AMP) finally deliver some good news

Embattled ASX 200 financial services business AMO announced today that the sale of AMP Life to Resolution Life has received all regulatory approvals and confirmed it expects the transaction to complete after the market closes on 30 June 2020.

AMP said it will provide an update to the market on 1 July 2020.

The AMP share price rose by around 8% today.

Challenger Ltd (ASX: CGF) share price drops almost 10%

The ASX 200 annuity business came back to trade after completing the institutional part of its capital raising.

The 55 million new shares were raised at a price of $4.89 per share. This was an 8.1% discount to the last traded price. The placement was "significantly oversubscribed".

Managing director and CEO Richard Howes said: "We are very pleased with the strong support shown by institutional shareholders for Challenger's commitment to maintaining a strong capital position while at the same time providing flexibility to enhance earnings.

"This raise supports the business to remain strongly capitalised through this period of ongoing market uncertainty."

The post ASX 200 finishes higher, Woolworths gives update appeared first on The Motley Fool Australia.

Why bear markets are a good time to build passive income streams

Bear markets are the most painful times when it comes to the share market.

Share prices decline painfully. Profit disappears. Confidence falls. Even dividends are cut, though the cut is usually less affected than the profit drop. This is to Boards having discretion about what dividend payments will be.

However, I think it's important to remember when share prices fall it causes the dividend yield to increase for potential passive income investors (assuming the dividend isn't cut).

I'll give you an example. If a reliable dividend share starts with a 4% dividend yield and the share price drops 33% then the new yield for potential investors is 6%. This is the type of dividend opportunity I'm seeing with shares like Brickworks Limited (ASX: BKW) and Duxton Water Ltd (ASX: D2O).

What about the ones with coronavirus-affected or cyclical dividends?

There are plenty of shares on the ASX that are likely to see dividend cuts over the next 12 months because of the direct coronavirus effects (like travel bans) or the indirect economic consequences.

I think we may see painful dividend cuts from companies like Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Premier Investments Limited (ASX: PMV) and Cromwell Group (ASX: CMW).

I believe it's a yield trap to think that the next 12 months of CBA dividends will be $4.31 per share, equating to a 10% grossed-up dividend yield. It could actually be 8% with a 20% dividend cut. It may be 5% with a 50% dividend cut. Not great for short-term passive income. 

But, in my opinion, CBA could be the first ASX bank to recover back to its former dividend level in perhaps three years from now. It could be back to paying $4 or more per share. If you take the longer-term view, this could be an opportunistic time to buy future dividends for passive income.

However, I'd prefer the financial shares of Macquarie and Challenger Ltd (ASX: CGF) over CBA for their long-term growth prospects.

How much of a difference does it make for passive income?

Well the S&P/ASX 200 Index (ASX: XJO) is currently down around 25% since the declines began after 21 February 2020. Each individual share will have different dividend prospects. But if that share it has fallen by 25% it boosts the dividend yield substantially. 

If a yield was 4%, it is boosted to 5.3%. Imagine you invested $100,000 today – you get an extra $1,333 in dividends compared to if you invested a couple of months ago (assuming no dividend cuts).

If a yield was 6% it is boosted to 8%, and so on.

Foolish takeaway

I think this is an opportunistic time to start building up your passive income stream. You can get a much bigger dividend yield, whether it's now or later. I believe this will mean more dividends hitting your bank account in the coming years.

The post How to build great passive income streams during bear markets appeared first on The Motley Fool Australia.

Last week was a volatile but positive one for Australian investors. The benchmark S&P/ASX 200 Index (ASX: XJO) ended its losing streak and recorded a 25.8 points or 0.5% gain to end the week at 4842.4 points.

Will things be better next week? Here are a few things to watch:

Wall Street tumbles but futures pointing higher.

The S&P/ASX 200 is poised to open the week a fraction higher despite heavy declines on Wall Street on Friday night. The Dow Jones dropped over 900 points or 4.1%, the S&P 500 fell 3.4%, and the technology-focused Nasdaq index tumbled 3.8% lower. Despite this, current SPI futures are pointing to the S&P/ASX 200 Index opening the week 6 points higher on Monday.

Shares going ex-dividend.

A number of ASX 200 shares are due to go ex-dividend next week and could trade lower. These include 4×4 auto parts manufacturer ARB Corporation Limited (ASX: ARB), real estate investment trust and property group Cromwell Group (ASX: CMW), and retail giant Harvey Norman Holdings Limited (ASX: HVN).

Dividends being paid.

The good news for retirees and income investors is that a number of blue chip ASX 200 shares are due to pay their dividends next week. This includes banks Bendigo and Adelaide Bank Ltd (ASX: BEN) and Commonwealth Bank of Australia (ASX: CBA), mining giant South32 Ltd (ASX: S32), insurance giant Suncorp Group Ltd (ASX: SUN), and conglomerate Wesfarmers Ltd (ASX: WES).

Flight Centre and Webjet scheduled to return.

The shares of embattled travel agents Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are scheduled to return from their suspensions next week. Both companies are currently working on capital raisings in order to provide sufficient liquidity to see them through these incredibly difficult trading conditions. Though, there is speculation that both companies are finding it harder than they would like to get the required funding.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended ARB Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post What to watch on the ASX 200 next week appeared first on The Motley Fool Australia.

The Cromwell Group (ASX: CMW) share price is edging lower today after ASX real estate investment trust (REIT) released its half-year FY20 results.

What did Cromwell announce?

Cromwell revealed that statutory profit for the half-year to 31 December 2019 was $227.3 million, up from $111.1 million 1H19. This result is equivalent to 8.78 cents per security (cps), which the company noted is a 59% increase on the 5.52 cps result in the prior period.

Total assets under management (AUM) came in at $11.9 billion, while operating profit for the period was $134.1 million, up from $82.6 million in the prior corresponding half.

Meanwhile, Cromwell's net tangible assets (NTA) increased from $0.99 to $1.04 in the current half. The company also reported that weighted average lease expiry (WALE) was 6.1 years and debt tenor came in at 4.2 years.

Strategy update

Cromwell commented that its 'Invest to Manage' strategy continues to bear fruit. This strategy involves the company investing to acquire or develop assets, creating new funds, selling down to capital partners, and then recycling the proceeds.

Cromwell's achievements during the half-year included the sale of the Northpoint Tower and the recycling of capital into 400 George Street, a joint venture with LDK Healthcare.

The company also announced it has exchanged contracts to sell its 50% interest in 475 Victoria Avenue, Chatswood, to a private fund managed by BlackRock Real Estate. Cromwell further noted that it will enter into a joint venture relationship for the expansion of the asset.

Company outlook and strategy moving forward

Cromwell commented that it anticipates operating profit to be no less than 8.30 cps and distributions no less than 7.50 cps. This, the company added, represents an operating profit per security yield of 7.03% and distributions per security yield of 6.36% based on yesterday's closing price of $1.18.

Cromwell also announced it is undertaking a strategic review in conjunction with its advisers, UBS and Goldman Sachs. The review may incorporate a formal sale process of the group or parts of the group as well as a review of the capital structure required to execute its strategy. The review is expected to conclude prior to the announcement of Cromwell's full-year FY20 results.

The post Cromwell share price edges lower on first-half results appeared first on The Motley Fool Australia.

The Cromwell Property Group (ASX: CMW) share price is on watch this morning after the company announced its share purchase plan (SPP) was oversubscribed.

What did Cromwell announce this morning?

The Aussie property group said strong support was received from Cromwell's eligible security holders, with applications totalling approximately $32.5 million received under the company's 24 July SPP.

This represents an oversubscription of around $2.5 million, which Cromwell has elected to accept in full to fund its future growth pipeline.

The proceeds from the SPP, together with the around $375 million raised from Cromwell's successful institutional placement (completed on Thursday 27 June 2019), will be used to fund a number of strategic growth opportunities as part of Cromwell's 'Invest to Manage' strategy, including more than $1.0 billion of acquisition opportunities in Australia and Europe.

Cromwell said it will also look to use the proceeds, along with recycled capital from asset sales, to deliver more than $1.0 billion of accretive value-add development opportunities across Cromwell's existing Australian Core+ and Active real estate portfolio.

Cromwell CEO Paul Weightman said that the level of support received from both institutional and retail investors was a strong endorsement of Cromwell's 'Invest to Manage' strategy.

"We are committed to our strategy of growing our global funds management platform. The funds raised under the institutional placement and the SPP show that our securityholders support our strategy, and will give us certainty of funding to pursue the opportunities we have identified while also strengthening the balance sheet," Mr Weightman said.

Based on the increased offer size, 28,294,234 securities will be issued and are expected to be allotted on Wednesday 31 July 2019. Transaction confirmation statements are expected to be sent out on or about Thursday 1 August 2019.

What does this mean for the Cromwell share price?

The Cromwell share price has climbed 20% higher since the start of the year to $1.18 per share as the Aussie real estate stocks have generally performed strongly so far this year.

However, with this latest oversubscribed SPP, I wouldn't be surprised to see the Cromwell share price dip in early trade with investors clearly keen to offload some of their shares to the company.

The Cromwell Group currently boasts a market cap of $3.1 billion and trades on a price-to-earnings (P/E) ratio of 11.2x earnings, and while low, is typical of real estate investment trusts (REITs) given their high payout ratios.

Cromwell shares are currently yielding a handy 5.1%, and with a 52-week high of just $1.27 per share, momentum could be a factor that carries the Cromwell share price higher later in the day.

The post Cromwell share price on watch after oversubscribed purchase plan news appeared first on The Motley Fool Australia.

The Cromwell Property Group (ASX: CMW) share price is on watch this morning after the Aussie property manager announced the sale of its 50% stake in Northpoint Tower.

What did Cromwell announce?

In its after-market ASX announcement, Cromwell said it had exchanged contracts to sell its 50% interest in Northpoint Tower for $300 million to Early Light International.

Following the sale, Early Light will acquire a full ownership interest in the building.

Early Light is a Hong Kong-based company which is currently the world's largest manufacturer of toys.

Management said that the sale of Cromwell's remaining interest in Northpoint, alongside its recent successful $375 million institutional placement and new 3-year €225 million (A$365 million) syndicated facility will provide certainty of funding for the group.

Cromwell has its eye on $1.0 billion of acquisition opportunities that are either in exclusive due diligence or advanced negotiations as well as over $1.0 billion of value-add development opportunities.

The company's Chief Investment Officer (CIO) said the company is continuing to "identify value-enhancing investment opportunities across both its Indirect and Direct Property Investment segment" that will deliver "medium-term growth in enterprise value" for investors.

Northpoint comprises 44 levels of mixed office and retail tenancies, with Cromwell acquiring its stake in the building for $139.35 million in December 2013.

A $130 million redevelopment commenced in January 2016 and reached practical completion on time and on budget in March 2018 before Cromwell's sale of its stake for a tidy $300 million.

The sale is subject to Foreign Investment Review Board (FIRB) approval and is expected to settle in mid-September 2018.

What's been happening to the Cromwell share price?

The Cromwell share price is up 20% so far this year to $1.18 per share and is approaching its 52-week high of $1.27 which it achieved just last week.

Cromwell's share price dropped sharply last Tuesday as the company completed its $375 million institutional placement at $1.15 per new security, which investors saw as a sign that its then-$1.27 was a little bit on the pricey side.

The company appears to be in good financial shape and will be releasing its full-year results in August 2019.

The post Cromwell share price on watch after $300 million Northpoint Tower sale appeared first on The Motley Fool Australia.

The ASX 200 (Index: ^AXJO) (ASX: XJO) was eventful again this week. Here are four big stories you may have missed that affected the ASX 200 index:

Afterpay Touch Group Ltd (ASX: APT)

The buy now, pay later business had a pretty rough end to the week. The Afterpay share price fell around 10% on Friday, or even more from the intraday's high point.

The cause of the decline was the announcement by payments business Visa that it will be entering the buy now, pay later arena. There is a suggestion that the buy now, pay later instalment option could be offered for free to merchants because Visa still makes money on every transaction it processes.

The REIT sector's capital raisings 

We've seen a quick succession of capital raising from the real estate investment trust (REIT) sector to take advantage of demand for higher-yielding assets.

Some of the examples of REIT capital raisings are: Centuria Industrial Reit (ASX: CIP), Growthpoint Properties Australia Ltd (ASX: GOZ), National Storage REIT (ASX: NSR) and Cromwell Group (ASX: CMW).

It remains to be seen whether these REITs purchase properties at attractive long-term prices or whether they overpay.

CSR Limited (ASX: CSR) 

The construction materials business held its AGM this week and told us that volumes in April and May have been largely flat on the March quarter even as it acknowledged the tailwinds for the industry of the Federal election win by the Liberals and other factors.

Not only is this not good for CSR but it also raises question marks for a number of other industry participants like Boral Limited (ASX: BLD), Beacon Lighting Group Ltd (ASX: BLX), Reece Ltd (ASX: REH) and Adelaide Brighton Ltd. (ASX: ABC).

Metcash Limited (ASX: MTS) 

The IGA supermarket supplier and hardware owner delivered its FY19 report this week.

Investors weren't too pleased by what they saw in the result and commentary, with the share price down over 14% over the week.

Revenue grew by 1.8% to $12.7 billion excluding charge through sales and underlying net profit after tax (NPAT) fell 3% to $210.3 million.

The post 4 investment stories you missed in the ASX200 this week appeared first on The Motley Fool Australia.