ASX 200 stocks are in the red today with the S&P/ASX 200 Index (ASX: XJO) down 1.24%.

But as is usually the case, there are outliers.

Here are three ASX 200 stocks basking in the green today after their half-year results were released.

Seven Group Holdings Ltd (ASX: SVW)

The Seven Group share price is up 2.23% to $23.81 after the company reported its 1H FY23 results. This ASX 200 stock is now up 14.3% in the year to date.

Seven Group reported underlying revenue of $4.6 billion, up 16% compared to the prior corresponding period (pcp) of 1H FY22. It reported earnings before interest and taxes (EBIT) of $595 million, up 16%. The EBIT is also 6% above consensus expectations among brokers.

Earnings per share (EPS) from continuing operations for the year is 94 cents, up 18%. The ASX 200 stock will pay a dividend of 23 cents on 5 May.

CEO and managing director Ryan Stokes said:

The result highlights the quality of SGH's Industrial Services businesses and the "core plus" nature of the Group portfolio, with solid momentum and earnings growth of more than 20% at WesTrac, Coates and Boral. The results for the half were supported by continued strength in customer activity across the resources, construction, and infrastructure sectors.

Seven upgraded its full-year FY23 guidance to "low to mid-teen per cent EBIT growth". It previously expected high single-digit growth. UBS says the broker consensus is 15%.

According to The Australian, UBS analyst Lee Power reckons this is a "solid result" and the guidance "may be conservative, accounting for potential volatility across both Media and Energy in the 2H."

Vicinity Centres (ASX: VCX)

The Vicinity Centres share price is up 1% to $2.03 after the real estate investment trust (REIT) reported its 1H FY23 results. The ASX 200 stock is now up 1.76% in the year to date.

Vicinity Centres announced a statutory net profit after tax (NPAT) of $176.3 million. This was down substantially on the pcp of 1H FY22 when an NPAT of $650.2 million was recorded.

There was a net property valuation loss of $109.2 million, reflective of the current market downturn due to rising interest rates. Funds from operations (FFO) was $357.1 million, up 24.1% pcp.

Vicinity Centres will pay shareholders a distribution of 5.75 cents per share on 7 March, up 22.3% pcp.

The A-REIT said FFO growth was driven by a 20.5% increase in net property income to $459.6 million.

This growth partly reflects the comparison to the pcp when COVID-19 lockdowns were in place.

However, the company said there was also "continued strength of retail sales leading to improved cash collections, rental growth, and higher percentage rent".

Vicinity's CEO and managing director, Peter Huddle commented that the retail sector "continues to enjoy elevated growth, despite near-term uncertainty … ".

He said this is due to solid ongoing consumer demand supported by low unemployment and robust income growth and savings rates.

The ASX 200 stock now has a revised guidance for FY23, with FFO per share expected to be in the range of 14 cents to 14.6 cents.

Huddle said:

… our revised FFO per security guidance range for FY23 exceeds the original FY23 FFO guidance
range announced to the market on 16 August 2022. This outperformance reinforces the resilience of our operating and financial performance in the somewhat uncertain retail environment.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up 1.1% to $4.61 after the company released its 1H FY23 report. The ASX 200 stock is now up 5.5% in the year to date.

The company reported revenue of $4.3 billion, up 5% on the pcp of 1H FY22. EBIT before significant items totalled $360 million, up 8%, with an improved EBIT margin of 8.4%.

NPAT was $92 million, including $150 million for flagged construction provisions, and down 46% pcp.

The company is guiding a full-year FY23 EBIT before significant items in the range of $800 million to $855 million. It noted that bad weather in New Zealand in January and February would impact their results.

Fletcher Building will pay a dividend of 21.2 NZ cents per share (18 AU cents) on 6 April.

Fletcher Building CEO Ross Taylor said:

We are confident that our strategy positions us well to continue to drive performance and deliver growth, against the backdrop of a dynamic operating environment.

The post 3 ASX 200 stocks moving higher on strong results announcements 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.

Last year was a crazy one for S&P/ASX 200 Index (ASX: XJO) shares. The index slumped 7% over the 12 months ended Friday despite soaring energy and mining shares.

Meanwhile, stocks in other sectors – like retail and tech – suffered. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) tumbled 24% last year while the S&P/ASX 200 Information Technology Index (ASX: XIJ) plunged 36%.

But I think the downturn may have provided an opportunity to build passive income. Here's how I would invest $5,000 in ASX 200 dividend stocks if I were aiming for a second income stream.

Is now a good time to buy ASX 200 shares for dividend income?

Inflation, interest rate hikes, and major global events boosted some ASX 200 shares in 2022 while dragging others lower.

Fortunately, the market's long-term performance may sow hope in the hearts of investors. The ASX 200 has historically always returned to and surpassed its previous highs following a downturn.

That means many of the market's embattled sectors likely house some bargain shares right now.

And there's a further silver lining for investors hunting a second income. Falling share prices tend to drive dividend yields higher.

Many companies' dividends remained stable through 2022's downturn, thereby potentially letting investors get a slice of the pie for less than they might've otherwise paid.

Thus, I believe now could be a good time to shift through the rubble in search of quality ASX 200 dividend shares trading for cheap prices. By doing so, I believe I could turn $5,000 into a passive income stream through the power of compounding.

Compounding returns

There's no shortage of ASX 200 shares currently trading with dividend yields of around 8% following a disastrous 2022.

They include JB Hi-Fi Limited (ASX: JBH), Nine Entertainment Co Holdings Ltd (ASX: NEC), and Fletcher Building Limited (ASX: FBU), to name a few.

An 8% dividend yield would see a $5,000 investment returning $400 over the next 12 months.

That's not exactly life-changing. However, I would aim to compound my dividends by reinvesting them in ASX 200 shares.

By doing so, and assuming my yield stays the same, I could turn my initial investment into $10,795 in 10 years' time. At that point, it would be capable of paying out around $864 each year.

But the true magic comes later. In 30 years' time, my figurative $5,000 investment – reinvested time and time again – could be worth $50,313. That, with an 8% yield, could return $4,025 annually.

And that's without considering share price growth or a consistent investment strategy.

Choosing wisely

The ultimate challenge I face in putting my strategy to work is to identify oversold buys in the current environment.

While a high dividend yield might herald an oversold stock, it might also suggest a company isn't spending its cash wisely, making its offerings unsustainable.

Thus, I would pay particular attention to a company's cash flow and balance sheet to help determine if it's a buy right now.

The post Here's how I'd invest $5,000 in ASX 200 shares to earn a second income appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 2% to $6.79. This appears to have been driven by a broker note out of Citi. According to the note, the broker has downgraded the regional bank's shares to a neutral rating with a reduced price target of $7.30. Citi believes the bank's profit growth will be challenged in the near term.

Block Inc (ASX: SQ2)

The Block share price is down 5% to $97.69. Investors have been selling this payments company's shares after a poor showing from its US listed shares overnight. Block's shares on the NYSE sank 7.5% on Thursday night after the tech sector was sold off amid concerns over rising interest rates.

Fletcher Building Limited (ASX: FBU)

The Fletcher Building share price is down almost 3% to $4.59. This morning, this building materials company released an update on the New Zealand International Convention Centre and Hobson Street Hotel project (NZICC). According to the release, despite good progress on site, the complexity of the rebuild means costs are now expected to exceed insurance proceeds on NZICC. This has resulted in an additional NZ$150 million provision for costs to complete the project.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is down 2% to $20.42. Investors have been selling Newcrest and other gold miners today after interest rate expectations climbed. This put pressure on the gold price during overnight trade and has led to the S&P/ASX All Ordinaries Gold index falling 2.4% this afternoon.

The post Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) fell on Tuesday amid the Reserve Bank of Australia's latest rate hike. The index closed the day 0.47% lower at 7,291.3 points.

The central bank put forward an eighth consecutive rate hike today in yet another bid to tackle inflation, which sat at 6.9% at last count. The benchmark interest rate is now 0.25% higher at 3.1%.

Weighing heaviest on the ASX today was the S&P/ASX 200 Information Technology Index (ASX: XIJ). It slumped 2%. That's perhaps unsurprising given rate hikes are particularly hard on non-profitable companies – a brief many of the market's favourite tech stocks fit.

The S&P/ASX 200 Energy Index (ASX: XEJ), meanwhile, lifted 0.1% despite falling oil prices.

The Brent crude oil price fell 3.4% to US$82.68 a barrel, while the US Nymex crude oil price dropped 3.8% to US$76.93 a barrel.

The S&P/ASX 200 Materials Index (ASX: XMJ) slipped 0.8% today, while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) and the S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 0.2% and 0.5% respectively.

All in all, four of the ASX 200's 11 sectors closed higher today. But which stock took out today's top spot? Keep reading to find out.

Top 10 ASX 200 shares countdown

Coal favourite Whitehaven Coal Ltd (ASX: WHC) led the way today, gaining 2.7%. That's despite no news having been released by the company.

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.

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

Fletcher Building Limited (ASX: FBU)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this building products company's shares with a buy rating and $5.90 price target. Goldman notes that Fletcher Building's shares are trading on a forward PE ratio of 8.5x and at a 41% discount to the S&P/ASX 200 index. It points out that this is notably lower than average multiples and broadly in line with GFC levels. And while the broker accepts that its key markets are near cyclical highs, it feels this is more than priced in. The Fletcher Building share price is trading at $4.67 today.

IDP Education Ltd (ASX: IEL)

A note out of UBS reveals that its analysts have retained their buy rating on this language testing and student placement company's shares with a slightly trimmed price target of $35.25. The broker has been looking at visa data and believes that growth in key markets points to positive trading conditions for IDP Education. Overall, it is positive on the company's outlook and sees plenty of value in its shares at the current level. The IDP share price is fetching $29.57 on Monday.

Monash IVF Group Ltd (ASX: MVF)

Analysts at Macquarie have retained their outperform rating and $1.30 price target on this fertility treatment company's shares. Although IVF treatments fell slightly in October according to Medicare data, the broker notes that this followed a big increase in September. In addition, Macquarie believes Monash IVF is well-placed to grow quicker than the market and grow its share. This bodes well for its earnings growth in FY 2023 and beyond. The Monash IVF share price is trading at $1.00 this afternoon.

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

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to start the week in the red following a mixed session on Wall Street on Friday night. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning. On Wall Street, the Dow Jones was up 0.45%, the S&P 500 fell slightly, and the NASDAQ dropped 0.5%.

Oil prices drop

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough start to the week after oil prices tumbled on Friday night. According to Bloomberg, the WTI crude oil price was down 2.1% to US$76.28 a barrel and the Brent crude oil price fell 2% to US$83.63 a barrel. Traders were selling oil due to concerns that soaring COVID cases in China could lessen demand.

Costa shares downgraded

The Costa Group Holdings Ltd (ASX: CGC) share price is fully valued according to analysts at Bell Potter. According to the note, the broker has downgraded the horticulture company's shares to a hold rating with an improved price target of $2.90. It commented: "We downgrade our rating from Buy to Hold following the recent recovery in the share price."

Gold price flat

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price traded flat on Friday. According to CNBC, the spot gold price was steady at US$1,754.93 an ounce during the session. A stronger US dollar put pressure on the precious metal.

Fletcher Building given buy rating

The Fletcher Building Limited (ASX: FBU) share price could be great value according to Goldman Sachs. This morning the broker initiated coverage on the building products company with a buy rating and $5.90 price target. While Goldman believes that key markets are at or near cyclical peaks, it believes "the share price captures the cyclical headwind (and more)."

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

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has risen strongly over the past month, up 13.66%.

The ANZ share price is in the green this morning, breaching $26 per share for the first time since May.

Top broker Citi reckons there is more growth ahead for the ANZ share price.

Why will the ANZ share price keep rising?

According to a report in The Australian today, top broker Citi thinks ASX shares related to housing are winners. The broker says ASX investors should "start to build positions now" in such companies.

The most obvious housing-related companies to invest in are ASX bank shares. This is because they are the biggest lenders to households and hold billions of dollars in mortgages on Australian property.

Citi expects the Reserve Bank of Australia to raise the official cash rate to a peak of 3.35% in early 2023. It expects an average fall in house prices of 23% from the peak to the trough — sometime late next year.

But here's the clincher for ASX investors.

Citi's own quantitative analysis indicates that housing-related shares tend to hit their floor six months before house prices.

They also begin to outperform the broader market about a year before the trough in house prices.

Citi says:

This suggests that investors should start to build positions now, with the added fillip near-term of several stock and sector nuances which underpin our view of more compelling value today.

These range from industry impacts like excess liquidity in banks and an elongated building cycle – to more stock specific (factors like) acquisitions.

Which ASX shares related to housing does Citi recommend?

Citi sees upside in the ANZ share price, along with the Westpac Banking Corp (ASX: WBC) share price.

The broker's other housing-related ASX share picks outside banking are Harvey Norman Holdings Limited (ASX: HVN), Nick Scali Limited (ASX: NCK), Mirvac Group (ASX: MGR), CSR Limited (ASX: CSR), Fletcher Building Limited (ASX: FBU), and BlueScope Steel Limited (ASX: BSL).

ANZ released its full-year results last week and declared a final dividend of 74 cents per share.

This was a 2.8% increase on the FY21 final dividend.

The ANZ share price currently offers a trailing grossed-up dividend of 8%.

The post Up 14% in a month, why the ANZ share price can keep delivering: Citi appeared first on The Motley Fool Australia.

The cost of building a home is rising at its fastest pace since the GST was introduced in 2000. Interest rates are going up and housing values are going down. Construction companies are going bust due to labour shortages, lack of access to building materials, and the rising cost of these materials. And fewer people are choosing to build new houses, with approvals down 14.4% over the past 12 months.

Yet fund manager Allan Gray says it's a great time to buy this ASX 200 share in the construction game. That share is Fletcher Building Limited (ASX: FBU).

Allan Gray managing director and chief investment officer, Simon Mawhinney says Fletcher Building is trading "at a discount to fair value":

Most investors shy away from buying companies that are likely to exhibit a decline in earnings in the short term, regardless of the price at which the company trades. This creates the opportunity for us to
invest in companies at a discount to fair value. Fletcher Building Limited is one such company.

Why is this ASX 200 share falling?

The Fletcher Building share price is down 0.7% to $4.38 in late afternoon trading on Friday. The ASX 200 share has fallen 37.4% in 2022 so far and 36.5% over the past 12 months.

Allan Gray analyst Sudhir Kissun says:

While we can't be sure exactly why Fletcher Building's share price has been falling for the past year, the prospect of a downturn in building activity is a likely explanation.

Even though it might be tempting to sit on the sidelines and wait for the cycle to hit rock bottom, it is important to remember that sharemarkets are forward looking.

Share prices usually hit the bottom well before the cycle is at its lowest. In the case of Fletcher Building, its share price may already factor in the impact of a modest economic downturn.

A 'compelling opportunity'

Allan Gray outlines the case to buy this ASX 200 share in its September 2022 quarterly commentary.

Firstly, Kissun reckons the business metrics look good. By the way, these numbers are in New Zealand currency because Fletcher is headquartered in New Zealand.

Kissun explains:

With a share price at the time of writing in late-September of NZ$5.16 per share, Fletcher Building has a market value of NZ$4.0b. Added to its very manageable net debt of NZ$0.9b, its enterprise value is NZ$4.9b.

… we estimate that its lowest EBIT in the past 15 years was around NZ$420m (this is after adjusting for businesses that Fletcher Building has disposed of and therefore will not contribute to earnings in the future). The market is valuing the company at a little less than 12 times this depressed level of EBIT.

Not only is this meaningfully below the broader sharemarket multiple today, but it is also likely that earnings from this depressed level would grow significantly faster than the market (and therefore
warrant a higher multiple than the market).

In our experience, this type of situation, in which the market is offering us a company at a lower-than-market multiple of depressed earnings, has the makings of a compelling investment opportunity.

Is the Fletcher Building share price a buy?

Kissun says:

When we value cyclical companies, we try to gauge what the company might earn on average through the cycle, across good times and bad. We believe a sustainable mid-cycle EBIT for Fletcher Building should be in the region of NZ$600m, which is almost 30% below management's guided EBIT for FY23 of NZ$820m.

Mid-cycle EBIT of NZ$600m would result in net earnings after interest and tax of approximately NZ$400m. It might not be unreasonable to ascribe a price-to-earnings (P/E) multiple of 16 times to these mid-cycle earnings, which would equate to a market value of NZ$6.4b or approximately NZ$8.15 per share. Compared to the share price of NZ$5.16, this represents potential upside of over 50%.

The Allan Gray Australia Equity Fund holds $61.7 million worth of Fletcher Building shares.

The ASX 200 share represents 3% of the fund's value as at 30 September.

The post Too cheap to ignore this ASX 200 share with a 'compelling' valuation: fundie appeared first on The Motley Fool Australia.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Thursday after Wall Street rebounded. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning. On Wall Street, the Dow Jones rose 0.1%, the S&P 500 climbed 0.35% and the NASDAQ pushed 0.75% higher.

News Corp named as a buy

The News Corp (ASX: NWS) share price is great value according to analysts at Godman Sachs. This morning the broker retained its buy rating and $31.00 price target on the media company's shares. This implies potential upside of almost 24% for investors over the next 12 months.

Oil prices rise

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have decent day after oil prices pushed higher on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.6% to US$88.70 a barrel and the Brent crude oil price is up 1.15% to US$94.23 a barrel. Supply concerns continue to boost prices.

Shares going ex-dividend

Another group of shares will be going ex-dividend on Thursday and could trade lower. This includes building materials company Fletcher Building Limited (ASX: FBU), battery materials miner IGO Ltd (ASX: IGO), investment company Seven Group Holdings Ltd (ASX: SVW), and mining giant South32 Ltd (ASX: S32).

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price fell again overnight. According to CNBC, the spot gold price is down 0.7% to US$1,706.60 an ounce. Rate hike bets continue to weigh on the precious metal.

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

A wave of companies in the S&P/ASX 200 Index (ASX: XJO) have already seen their shares turn ex-dividend this month.

Tomorrow, more dividends will be taken off the table as a handful of ASX 200 shares whisk away entitlements to their upcoming dividend payments.

Without further ado, here are three notable ASX 200 shares going ex-dividend tomorrow.

South32 Ltd (ASX: S32)

Today will be the last day to scoop up South32's fully franked final dividend of 17 US cents, which includes a special dividend of 3 US cents. It will be paid on 13 October.

The ASX 200 miner delivered record earnings and cash flow in FY22, capitalising on elevated commodity prices.

Underlying revenue jumped 45% to US$10.6 billion while underlying earnings surged four-fold to US$2.6 billion.

Across the financial year, South32 declared ordinary dividends of 22.7 US cents. This represents a whopping 363% increase from the ordinary dividends seen in FY21.

What's more, the board declared special dividends of 3 US cents, up from 2 US cents in the prior year.

Altogether, South32 shares are currently printing a sizeable trailing dividend yield of 8.7%. Including franking credits, this yield cranks up to 12.4%.

Seven Group Holdings Ltd (ASX: SVW)

Seven Group is another ASX 200 share going ex-dividend tomorrow. Shares will be trading without a fully franked final dividend of 23 cents, which will be paid on 28 October.

In FY22, the diversified investment group delivered underlying net profit after tax (NPAT) of $577 million, up 14% from the prior year. This was driven by outperformance at WesTrac, Coates, Beach Energy Ltd (ASX: BPT) and Boral Limited (ASX: BLD).

However, on a statutory basis, NPAT backtracked by 4%, impacted by impairments and transaction costs at Boral and Seven West Media Ltd (ASX: SWM).

Ultimately, Seven decided to hold its fully franked annual dividends steady at 46 cents. This puts Seven shares on a trailing dividend yield of 2.4%, which grosses up to 3.5% including franking credits.

Fletcher Building Limited (ASX: FBU)

Rounding out this trio of ASX 200 shares turning ex-dividend tomorrow is Kiwi building products company, Fletcher.

Fletcher recently announced its FY22 results, hiking its unfranked final dividend by 22% to 22 NZ cents. 

As part of a Kiwi tax regime, the company will also be paying a supplementary dividend of roughly 3.9 NZ cents per share to shareholders who aren't New Zealand residents.

Investors who own Fletcher shares by the time the market closes today should see these funds land in their account on 6 October.

Amidst a backdrop of supply chain disruptions, Fletcher delivered revenue of NZ$8.5 billion in FY22, up 5% from the prior year.

Earnings before interest and tax (EBIT) before significant items grew at a faster clip, lifting 13% to NZ$688 million.

Across the financial year, Fletcher declared annual ordinary dividends of 40 NZ cents per share, up 33% from FY21. 

This puts Fletcher shares on a trailing dividend yield of 7.1%. Including supplementary dividends, this yield ticks up above 8%.

The post Here are 3 ASX 200 shares turning ex-dividend tomorrow appeared first on The Motley Fool Australia.

The Fletcher Building Limited (ASX: FBU) share price is well into the green after the company revealed a 42% lift in profit in its FY22 full-year results.

The Fletcher Building share price opened today's session at $5.14, up 4.26% on yesterday's close of $4.93.

Shares in the ASX-listed New Zealand company are currently swapping hands for $5.11, up 3.65% for the day so far.

Let's take a look at the numbers.

Fletcher Building share price up on positive FY22 report

Fletcher Building said it achieved its forecasts for FY22. Here are the key metrics:

• Revenue NZ$8,498 million, up 5% from the prior corresponding period (pcp)
• Net profit after tax (NPAT) of NZ$432 million, up 42% from pcp
• EBIT before significant items of NZ$756 million, up 13% from pcp
• Return on Funds Employed (ROFE) before significant items of 19.3%, compared to 18.8% pcp
• Cash flows from operations of NZ$592 million, compared to NZ$879 million pcp
• Fully imputed final dividend of 22 NZ cents per share to be paid on 6 October. ASX shareholders will receive a dividend of 25.882353 NZ cents.

Fletcher Building says it has a strong balance sheet with "solid cash flows partly offset by some inventory rebuild and housing investment".

The profit increase will result in a 33% bump in total annual dividends to 40 cents per share.

What else happened in FY22?

Over the year, Fletcher Building also completed an NZ$274 million share buyback program.

The buyback was announced on 26 May 2021.

What did management say?

Fletcher Building CEO Ross Taylor said:

Fletcher Building delivered strong results in FY22 across all key metrics. Our performance highlighted our ability to deal with a dynamic operating environment, while remaining focused on delivering long term, sustainable growth.

Our balance sheet remains robust with $1.1 billion liquidity and net debt of $670 million at year end. This positions us well as we move into the new financial year and continue to invest in the growth of the business.

What's next?

Fletcher Building said it was "well positioned to deliver strong growth in FY23 at present market levels".

It is targeting a more than $100 million improvement on its FY22 EBIT in the next financial year.

Fletcher Building share price snapshot

The Fletcher Building share price is down 27% over the year to date.

This compares to a 6% dip in the S&P/ASX 200 Index (ASX: XJO).

The post Fletcher Building share price lifts on 40% profit boost appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are pushing higher:

Ampol Ltd (ASX: ALD)

The Ampol share price is up 5% to $34.77. This appears to have been driven by a broker note out of Morgan Stanley. According to the note, the broker has retained its overweight rating and lifted its price target to $39.00. It is bullish due to improving refining margins and increasing fuel volumes.

Downer EDI Limited (ASX: DOW)

The Downer share price is up 2% to $5.07. Investors have been buying this engineering company's shares after it announced two major contract wins. Downer has been awarded two road maintenance contracts by Auckland Transport, valued at approximately $800 million over a maximum term of 10 years. Management notes that these contracts expand Downer's strong working relationship with Auckland Transport.

Fletcher Building Limited (ASX: FBU)

The Fletcher Building share price is up 5% to $4.68. The catalyst for this was the release of the building products company's investor day update. That update reveals that management has reiterated its earnings before interest and tax guidance for FY 2022. It expects EBIT before significant items to come in at ~NZ$750 million.

REA Group Limited (ASX: REA)

The REA share price is up 2% to $101.15. This morning analysts at Citi reiterated their buy rating and $153.50 price target on this property company's shares. This implies potential upside of ~50% for investors over the next 12 months. Citi sees NSW stamp duty changes as a positive for REA.

The post Why Ampol, Downer, Fletcher Building, and REA shares are pushing higher appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 today:

St Barbara share price tanks

The St Barbara Ltd (ASX: SBM) share price has been sold down to a multi-year low on Wednesday. This morning the gold miner revealed that it has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.

Fletcher Building shares jump

The Fletcher Building Limited (ASX: FBU) share price is storming higher today. This follows the release of the building products company's investor day update. That update reveals that Fletcher Building has reiterated its earnings before interest and tax (EBIT) guidance for FY 2022. It expects EBIT before significant items to come in at ~NZ$750 million.

Zip shares drop to multi-year low

The Zip Co Ltd (ASX: ZIP) share price has continued its slide and hit a new multi-year low. This buy now pay later provider's shares have come under pressure this week amid speculation it could be about to give up on the UK and US markets. This is due to the large losses the company is making internationally.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Fletcher Building share price with a 6% gain following the release of its investor update. Going the other way, the worst performer has been the St Barbara share price with a 12% decline. This follows the aforementioned update out of the gold miner.

The post ASX 200 midday update: St Barbara and Zip drop to multi-year lows appeared first on The Motley Fool Australia.

Some businesses are considered as ASX growth shares, like Xero Limited (ASX: XRO) and Altium Limited (ASX: ALU).

However, there are a handful of businesses that are both buy-rated and offer a good potential yield. Here are two of them:

DEXUS Property Group (ASX: DXS)

Dexus describes itself as Australia's leading fully integrated real estate group, managing a portfolio of Australian property worth $45.3 billion. It directly owns $18.3 billion of office, industrial and healthcare properties.

The ASX dividend share says that its $17.8 billion pipeline provides the opportunity to grow both portfolios and enhance future returns.

Dexus says that it's benefiting from key megatrends of urbanisation, technology advances and the growth in pension capital flows. Management thinks the business is well-positioned to continue to leverage these trends to support investor returns.

Its goal is to deliver superior risk-adjusted returns from high-quality real estate and seek opportunities that can deliver sustainable income while growing and diversifying the funds management business.

Valuation gains across the total property portfolio for the period to 31 December 2021 helped the 3.1% increase in the net tangible asset (NTA) per security to $11.77.

It's currently rated as a buy by the broker Morgan Stanley with a price target of $12.57. The broker is expecting Dexus is going to pay a yield of 5% in FY22.

Fletcher Building Limited (ASX: FBU)

Fletcher Building is a manufacturer, home builder, and partner on major construction and infrastructure projects. It has a significant presence in New Zealand but it also has operations in Australia and the South Pacific.

The ASX dividend share recently revealed its FY22 half-year result which saw another period of growth.

Revenue increased 2% to $4.06 billion. Earnings before interest and tax (EBIT) went up 3% to $332 million. Net profit after tax (NPAT) jumped 41% to $171 million.

The second-quarter EBIT was $264 million, up 73% year on year. This offset COVID-19 lockdown impacts of around $105 million of EBIT in the first quarter.

Fletcher Building is expecting the FY22 second half to be "very solid" with forward indicators pointing to continuing volumes.

Beyond this financial year, Fletcher Building thinks it's very well positioned to drive growth. In New Zealand, it's investing in its increased manufacturing capacity and driving product and market growth.

In FY23, it's expecting to further improve BIT margins across the group to 10% in FY23. It has a maturing pipeline of investments that will keep driving growth beyond FY23, according to the company.

Credit Suisse rates Fletcher Building as a buy, with a price target of $9.30. It's expecting that in FY22, the ASX dividend share will have a yield of 6%.

The post 2 ASX dividend shares to buy this month: experts appeared first on The Motley Fool Australia.

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

Fletcher Building Limited (ASX: FBU)

The Fletcher Building share price is up over 2% to $6.90. Investors have been buying the building products company's shares following the release of a bullish broker note out of UBS. According to the note, the broker has upgraded the company's shares to a buy rating with an NZ$8.00 (A$7.59) price target. UBS expects Fletcher Building to benefit from the reopening of the ANZ economy.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 5% to $33.78. On Thursday, analysts at Macquarie upgraded this fund manager's shares to an outperform rating with a $38.00 price target. Macquarie made the move on valuation grounds following a significant de-rating. It feels Magellan's shares are too cheap to ignore, especially given the potential for a dividend yield of ~7% in FY 2022.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up a further 5% to $5.92. Investors have been buying the buy now, pay later (BNPL) provider's shares this week after US retailer Target launched Sezzle's BNPL service across its network. Consumers shopping with the retail giant ahead of the holiday season will now be able to pay for their purchases in instalments through Sezzle or rival Affirm.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price is up 2% to $1.22. This morning the dendrimer products developer announced a sales and distribution agreement for Viraleze with Admenta Italia Group. It is a leading pharmaceutical retail and wholesale distribution company in Italy. Viraleze is a broad-spectrum antiviral nasal spray which is applied in the nose to provide a physical barrier between viruses and the nasal mucous membrane. The product traps and irreversibly inactivates virus, including SARS-CoV-2.

The post Why Fletcher Building, Magellan, Sezzle, & Starpharma are racing higher appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower this morning. This follows a mixed night on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 drop 0.15%, and the Nasdaq rise 0.1%.

Telstra shares rated as a buy

The Telstra Corporation Ltd (ASX: TLS) share price could be good value according to analysts at Goldman Sachs. In response to its T25 update, the broker retained its buy rating and $4.40 price target on the telco giant's shares. It commented: "Telstra held its T25 Investor Day, with the key strategic/financial updates consistent with our prior expectations. FY25 targets for strong earnings growth were provided, implying a high degree of confidence in the outlook, given expectations for mid-single digit EBITDA growth p.a. and a similar quantum of mobile service revenue growth."

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is flat at US$72.60 a barrel and the Brent crude oil price is up 0.25% to US$75.65 a barrel. An easing storm threat in the US weighed on oil prices.

Carsales goes ex-div, dividends being paid

The Carsales.Com Ltd (ASX: CAR) share price could trade lower today after going ex-dividend for its 22.5 cents per share fully franked final dividend. Elsewhere, Fletcher Building Limited (ASX: FBU), Pinnacle Investment Management Group Ltd (ASX: PNI), and Tabcorp Holdings Limited (ASX: TAH) shareholders can look forward to being paid their dividends this morning.

Gold price sinks

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after the gold price dropped notably lower. According to CNBC, the spot gold price is down 2.3% to US$1,754.10 an ounce. This was driven by a rise in the US dollar thanks to strong US economic data.

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

It's that time of the year when professional investors sell off their winners and look for the next bargains.

One ASX share that Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg are excited about for the new financial year is Fletcher Building Limited (ASX: FBU).

The New Zealand company plays in the not-so-glamorous construction materials supply business. Think along the lines of concrete and flooring.

The Wilson trio revealed that both WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX) funds now hold the stock.

"Its share price finished the financial year up 104%," they wrote in a memo to clients.

"Fletcher Building is in a strong financial position, announcing that it expects earnings before interest and tax (EBIT) for FY2021 to be between $650 million to $665 million — towards the upper end of the previous guidance range."

Fletcher Building just gave heaps of money back to investors

The excellent numbers gave Fletcher Building enough confidence to reward its shareholders handsomely last month.

"The company began returning capital to shareholders in the form of a NZ$300 million ($280 million) on-market share buyback in June," read the Wilson memo.

Fletcher chief executive Ross Taylor said in May that "leverage [is] expected to remain below our target range in the medium term". 

"This position provides us with capacity to recommence capital management and distribute up to NZ$300 million to shareholders."

Fletcher's ASX shares were up 0.93% on Friday, to trade at $7.02 in the afternoon.

Future looking bright for Fletcher

The Wilson portfolio managers don't believe the party has ended with the June buybacks.

Fletcher Building will continue to be a post-COVID recovery winner, they reckon.

"We believe Fletcher Building is well positioned to take advantage of market tailwinds, including a pick-up in construction activity and the low interest rate environment," their memo read.

"Additionally, the company continues to benefit from federal government stimulus, such as the Home Builder scheme in Australia and infrastructure stimulus in New Zealand."

Fletcher now has a market capitalisation of $5.74 billion. The company is dual-listed in its country of origin as Fletcher Building Limited (NZE: FBU).

The post This ASX share is up 104% and just gave $280m to shareholders appeared first on The Motley Fool Australia.

High-performing fund manager Wilson Asset Management (WAM) has revealed two ASX shares that it rates as buys within the WAM Research Limited (ASX: WAX) portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that invests in the most compelling undervalued growth opportunities in the Australian market.

The WAM Research portfolio has delivered gross returns (that's before fees, expenses and taxes) of 16.3% per annum since the strategy changed in July 2010, which is superior to the S&P/ASX All Ordinaries Accumulation Index return of 9.5% per annum.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Virtus Health Ltd (ASX: VRT)

Virtus Health is a fertility business. WAM Research explains that it helps more than 5,000 people become parents each year as the largest provider of assisted reproductive services in Australia, the market leader in Ireland and Denmark, and a growing presence in Singapore and the UK.

It operates 43 in vitro fertilisation (IVF) clinics globally, as well as seven day hospitals and the Virtus diagnostic and pathology service.

As it recovers from the impacts of the COVID-19 pandemic, Virtus is seeing a "strong uplift" in demand for IVF services.

The ASX share is considering licensing its technology through its precision fertility capabilities to other IVF players globally. WAM Research said this would be a revenue stream which is not capital intensive, and a strategy the fund manager believes will see significant upside.

The fund manager is also positive on Virtus Health CEO Kate Munnings, who was appointed in March 2020. WAM Research thinks Ms Munnings has the ability to monetise the intellectual property within the organisation to pursue other revenue sources in precision fertility, genetics testing and digitalisation.

Fletcher Building Limited (ASX: FBU)

The other ASX share that WAM Research referred to was Fletcher Building, which is a manufacturer, home builder and partner on major construction and infrastructure projects.

The fund manager pointed out that in May, Fletcher Building announced that earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21 is expected to be between $650 million to $665 million, which is at the upper end of its previous guidance range.

WAM Research also referred to the capital return that Fletcher Building is going to return to investors in the form of a NZ$300 million on-market share buyback as a result of its strong balance sheet.

The fund manager is positive on the ASX share as building market activity remains robust and government stimulus continues to support the sector. This will underpin the delivery of a "strong" uplift in EBITDA margins over the next one or two years.

The post Top fund manager names these 2 ASX shares as buys appeared first on The Motley Fool Australia.

The Fletcher Building Limited (ASX: FBU) share price is on the move on Wednesday.

At the time of writing, the building products company's shares are up 4.5% to a 52-week high of $7.02.

Why is the Fletcher Building share price rising?

Investors have been buying the company's shares this morning after it provided an update on its guidance for FY 2021 and revealed plans to return funds to shareholders.

According to the release, Fletcher Building is expecting to achieve earnings before interest and tax (EBIT) of NZ$650 million to NZ$665 million in FY 2021. This is at the top end of its previous guidance range.

CEO Ross Taylor commented: "We continue to make material progress on executing our strategy and achieving key financial targets. We are seeing a broadly stable market environment with trading conditions in the second half of FY21 largely consistent with the first."

"Despite some supply chain constraints and input cost pressures, we continue to see good margin performance from the business. Forward indicators for market activity are pointing to ongoing robust volumes in New Zealand and Australia, with our businesses focused on delivering above market growth and improved profitability in this environment."

Share buyback

In light of its positive form and its strong balance sheet, Fletcher Building has announced that it will undertake a capital return to shareholders of up to NZ$300 million. This will be achieved through an on-market share buyback, commencing in June.

Mr Taylor commented: "Fletcher Building's balance sheet is in a strong position, with leverage expected to remain below our target range in the medium term. This position provides us with capacity to recommence capital management and distribute up to NZ$300 million to shareholders, with the most effective method being an on-market share buyback."

The post Why the Fletcher Building (ASX:FBU) share price just hit a 52-week high appeared first on The Motley Fool Australia.