With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

IDP Education Ltd (ASX: IEL)

According to a note out of Credit Suisse, its analysts have initiated coverage on this language testing and student placement company's shares with an outperform rating and $35.50 price target. The broker likes the company due to its defensive earnings and exposure to structural growth markets. The latter is expected to be supported by the growing middle class in Asia. The IDP Education share price is trading at $27.98 today.

Global Lithium Resources Ltd (ASX: GL1)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this lithium developer's shares with a trimmed price target of $3.60. This follows the release of its latest drilling update, which points to a large north-eastern extension of the existing Manna Deposit. Macquarie was pleased with the update and has only trimmed its valuation to account for a probable equity funding package to support project development. The Global Lithium share price is fetching $1.32 this afternoon.

Woolworths Group Ltd (ASX: WOW)

Analysts at Citi have retained their buy rating and $42.20 price target on this retail giant's shares. The broker is feeling relatively positive on consumer spending and has boosted its earnings estimates marginally to reflect this. Citi is forecasting earnings per share growth of approximately 14% in both FY 2023 and FY 2024. The Woolworths share price is trading at $36.22 on Tuesday.

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

The Woolworths Group Ltd (ASX: WOW) share price has been a good performer in the 2023 calendar year to date. It's up by almost 10%. That compares to just a 1% rise for the S&P/ASX 200 Index (ASX: XJO)

I don't think Woolworths shares are going to keep outperforming the S&P 200 by 9% per month this year. But the supermarket business could still represent a good opportunity at this level.

With that in mind, let's have a look at one expert's view on the company.

The Woolworths share price is 'fully valued'

Writing on The Bull, Arthur Garipoli from Seneca Financial Solutions pointed out that the recent FY23 half-year result was "marginally ahead of analyst forecasts".

He noted that group sales were $33.17 billion, before significant items – this represented an increase of 4% on the prior corresponding period. Earnings before interest and tax (EBIT) grew by 18.4% to $1.64 billion. Garipoli said that food sales were up and the performance of the Big W store performance "improved".

The supermarket business also pointed out that underlying earnings per share (EPS) grew by 11.7% while the dividend per share went up by 17.9% to 46 cents per share.

While food sales only increased by 2.5%, the food EBIT jumped 18.2%. This was boosted by a 48 basis point (0.48%) increase in the gross profit margin to 30.7% and a 30 basis point decline (0.3%) in the cost of doing business (CODB).

In other words, Woolworths has been able to achieve higher margins on the products it's selling, despite inflation impacts, and reduce its costs thanks to lower COVID costs.

After analysing these numbers, Garipoli said:

In our view, the company is fully valued at this point.

Outlook

Sometimes, outlook comments can have a sizeable impact on the Woolworths share price.

The Woolworths CEO Brad Banducci said that the business had a strong start to the FY23 second half.

Operating conditions have "continued to stabilise and sales growth has been robust", he said.

In Australian food, the company reported Woolworths' sales for the first seven weeks of the second half had increased by 6.5%.

Cost growth in the FY23 second half will "also benefit from the non-recurrence of COVID costs". It's also making "good progress on regaining momentum" with its productivity agenda. However, cost inflation in areas like "wages, energy, and supply chain" remains "material and well above recent history".

Woolworths share price snapshot

At the current valuation, the supermarket business has a market capitalisation of $45 billion according to the ASX.

The post Should I buy Woolworths shares at $37? appeared first on The Motley Fool Australia.

Last month's ASX reporting season was "a mixed bag" — but one massive trend was clear to everyone.

That's according to Wilsons equity strategist Rob Crookston, who is in no doubt that ten consecutive months of interest rate rises is causing immense pain for Australians.

"Reporting season provided further evidence that consumers are paring back their expenditure on discretionary goods and big-ticket items, as pulled-forward demand from COVID unwinds and cost of living pressures eat into household budgets," he said in a memo to clients.

Crookston noted how sales have fallen for many retailers, compared to a year earlier.

This is starting to cause a pile-up in warehouses, which can trigger multiple negative effects.

"The moderating consumer demand backdrop has driven a rise in inventory levels for some names," he said.

"Not only is sitting on elevated inventories often a forward indicator of softening demand, it can also create additional costs (e.g. warehousing) while it weighs on free cash flows and increases the risk of product obsolescence, which can necessitate an increase in promotional activity to clear stock."

The tightening of wallets is even impacting businesses that sell essential goods.

"There has also been increasing commentary that consumers are 'trading down', with Woolworths Group Ltd (ASX: WOW) CEO Brad Banducci saying consumers were eating more at home rather than dining out, for example."

The stocks to avoid and one to buy right now

So what does this mean for ASX share investors?

The most straightforward tip from Crookston is to avoid buying into the sectors that are directly hurt by a decline in shoppers.

"The focus portfolio has no exposure to the retail or consumer goods sectors, which we think are close to peak (cyclical) earnings."

However, there is an opportunity to buy ASX shares of businesses that provide consumer services.

These companies are "continuing to benefit from the shift of spending from goods to services and have attractive long-term earnings growth potential". 

Crookston's top buy in this category is Lottery Corporation Ltd (ASX: TLC), which boasts "predictable, infrastructure-like cash flows that are underpinned by its long-dated licences".

"The Lottery Corporation had a stellar 1H23 result, which included EBITDA growth of +15.8% as lottery sales were resilient," he said.

"At the same time, margins benefitted from an increasing penetration of the digital channel."

The great tailwind for the company is the "defensive nature of lottery demand", which has shown resilience in the past through tough economic conditions.

The post Big lesson from reporting season: STAY AWAY from these ASX shares, says expert appeared first on The Motley Fool Australia.

Reporting season really showed how there is "a rocky road ahead" for the Australian economy and ASX shares.

That's according to Datt Capital chief investment officer Emanuel Datt, who reckons whether the country technically descends into recession is largely irrelevant.

"The message we take from the current reporting season is one of unevenness in opportunities and obstacles to performance going forward," he said.

"Labour shortages, inflation and an increasing cost of capital are three of the most visible takeaways."

Labour shortages strike some industries worse than others

But not all stocks are built the same.

It's a simple reality that some sectors are better placed to withstand tougher economic conditions than others.

"Capital intensive industries such as mining have an advantage in terms of being able to support higher salaries and accordingly appear to be attracting staff from other sectors, albeit at a higher cost than usual," said Datt.

"Labour intensive industries such as logistics, construction and contracting, continue to struggle with high labour costs and lower than typical productivity."

A shortage of workers is still hurting service industries and smaller companies that rely on a casual workforce.

"Though with international student numbers and immigration rising, it is providing relief to these sectors after a problematic three years."

Which stocks can fight inflation?

Reporting season also showed inflation in supply costs is striking ASX-listed companies hard.

"On the capital front, significantly increased interest rates, along with further projected rises, are likely to continue to adversely affect the cost of business funding."

Considering all these headwinds, Datt noted that two S&P/ASX 200 Index (ASX: XJO) businesses exceeded earnings guidance during the February reporting season: Woolworths Group Ltd (ASX: WOW) and QBE Insurance Group Ltd (ASX: QBE).

Both those companies possess the ability to pass on increased costs to their customers, thereby maintaining their margins.

"Limited ability to pass on costs due to shrinking discretionary spending power is a further squeeze from another direction for many businesses particularly in the consumer sector."

The turbulent environment that investors face in 2023 calls for a more active management of stock portfolios, said Datt.

"In our view, the domestic investment scenario is less likely than ever to favour a passive approach in the near to medium term."

The post 'A rocky road ahead': Expert names 2 ASX 200 shares to thrive in a tough 2023 appeared first on The Motley Fool Australia.

That's everything from the big four banks and BHP Group Ltd (ASX: BHP) to Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW) and CSL Limited (ASX: CSL).

This is actually quite unusual compared to other economies. In both the United States and the United Kingdom, quarterly dividend payments are the norm.

This situation that faces ASX investors makes using dividend shares as a source of passive income rather tricky. It can be hard to budget if you finally get to retire off of dividend income, but you only get paid twice a year.

So are there any alternatives to this six-month paycheque schedule?

How to secure monthly dividends on the ASX

Well, investors can always choose a variety of ASX shares. Not all dividend shares pay out their dividends in the same month. For example, Commonwealth Bank Of Australia (ASX: CBA) typically pays out its bi-annual dividends in March and September.

But Woolworths often forks out its shareholder cash in April and October, while Westpac Banking Corp (ASX: WBC) typically schedules its dividends for June and December. 

So you can pick a wide basket of ASX 200 blue chip dividend shares, and get something of a spread in dividend payments.

But otherwise, investors can utilise exchange-traded funds (ETFs) if they desire more frequent cash flow. Most ASX-based ETFs, such as the Vanguard Australian Shares Index ETF (ASX: VAS), will usually pay out quarterly distributions. As do funds covering overseas markets like the iShares S&P 500 ETF (ASX: IVV). These normally occur in January, April, July and October.

So using a mixture of ASX dividend shares and ETFs will get you even more frequent payments.

The final option for those desperate for a monthly paycheque is to find a company, ETF, listed investment company (LIC) or managed fund that pays out dividends every month.

These are rare, but they are out there. One example is the Plato Income Maximiser Fund (ASX: PL8). This LIC prioritises consistently funding monthly dividend paycheques to its investors. These typically come fully franked as well.

Another monthly dividend-payer is the BetaShares Australian Dividend Harvester Fund (ASX: HVST). This ETF also pays out monthly dividend distributions but uses derivatives to boost its come payments as well.

So if you do wish to secure monthly dividend paycheques from your ASX shares, there are a few ways to go about it.

The post Here's how I would secure monthly dividends in the 2024 financial year with these ASX stocks appeared first on The Motley Fool Australia.

As an ASX 200 blue chip share, Woolworths Group Ltd (ASX: WOW) has a well-founded reputation as an investment that can deliver both capital gains and dividends to ASX investors. Indeed, Woolworths stock has delivered healthy amounts of both over the past decade or two: 

Today, this ASX consumer staples giant sits on top of Australia's grocery and supermarket industry, with a higher market share and dominance over its rivals like Coles Group Ltd (ASX: COL).

But just because a company has been successful in the past does not mean it will automatically be a good investment going forward.

So today, let's examine whether the Woolworths share price is a buy.

Buy Woolworths stock: ASX broker

Well, as you might have gathered from the headline, at least one ASX broker is bullish on Woolies shares today. As we covered this week, investment bank and broker Goldman Sachs recently came out with not just a buy rating on Woolworths, but a conviction buy rating.

Goldman has a strong view on Woolworths shares thanks to this business' strong market position and digital prowess. The broker reckons these will enable Woolies to keep its perch at the top of the Australian grocery market and support higher margins in the future.

That's good news for Woowlorths' profitability if Goldman is on the money, which will in turn lead to higher dividends.

Goldman Sachs gives the Woolworths stock price a 12-month target of $41 a share. If realised, that would represent a potential upside of around 10.6% from where the shares are today, not including dividend returns.

Speaking of dividends, Goldman is also bullish on the future income potential of Woolworths shares. Today, Woolies has a trailing dividend yield of 2.67%, fully franked. That stems from the supermarket operator's latest two dividend payments.

These include last year's final dividend of 53 cents per share, as well as the interim dividend of 46 cents per share that investors will bag next month.

But Goldman reckons Woolies will be able to ratchet these payments up substantially in coming years. The broker has a total of $1.03 per share pencilled in for FY2023, and $1.16 per share for FY2024.

No doubt investors will be very happy to hear this news. But we'll have to wait, watch and see if Goldman turns out to be on the money here.

The post Goldman Sachs says buy Woolworths stock for reliable dividends AND 10% share price growth appeared first on The Motley Fool Australia.

The share market can be both a help and a hindrance when it comes to building wealth. But it's only ever a hindrance when investors let it be. 

The market is a funny thing. We all love the liquidity that comes from having shares fluctuate in value on a daily basis. But having the quoted prices of our assets changing constantly can also be very unnerving. Particularly in a market crash or similar event.

Market crashes aren't common. But they do come around sooner or later. And they can have an extremely negative impact on investors' mindsets. Imagine if you had 80-90% of your net worth invested in the share market during the global financial crisis of 2007-2009. At one point, you would have seen the value of your portfolio decline by more than 50%.

So how can one hope to retire rich if the market falls like that? After all, it took several years for the ASX 200 to recover from the global financial crisis. That's a lot of years to live off a reduced asset base.

Well, the answer is dividends.

Most investors are familiar with dividend payments. In fact, many would probably think the passive income you can get from a dividend share is one of the best things about investing in the stock market.

But what most investors might not realise is how much dividends contribute to investors' overall returns here on the ASX.

Dividends are the key to retiring rich – especially in a stock market crash

To illustrate, let's examine one of ASX's oldest index funds. The SPDR S&P/ASX 200 Fund (ASX: STW) has been listed on the share market since 2001, As such, it has a very enlightening history we can look back on.

So according to this ETF's provider, this ASX 200 index fund has returned an average performance of 7.86% per annum since it first listed in 2001, assuming dividends are reinvested.

But of that 7.86%, only 3.19% per annum comes from capital growth. The remaining 4.67% per annum hails from dividend income. That's not even close to a 50-50 split.

During a market crash, it's capital returns that get hit hard. But many ASX dividend shares keep their income taps open. During the COVID crash of 2020, the ASX 200 fell by roughly 32.5% top to bottom:

But many ASX dividend shares kept paying dividends.

BHP Group Ltd (ASX: BHP) supported investors with a solid $1.75 in dividends per share. Fortescue Metals Group Limited (ASX: FMG) did the same, paying out one of the larger annual dividend payments in its history at $1.76 per share.

It was a similar story with Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

During market downturns, the dividend payments from ASX shares can still keep you happily retired. You might not feel rich, with the value of shares fluctuating wildly. But the returns from dividends can certainly help you to stay afloat until the markets can recover.

The post How can I hope to retire rich when the share market is falling? appeared first on The Motley Fool Australia.

Here's why analysts rate them highly right now:

Macquarie Group Ltd (ASX: MQG)

The first ASX 200 dividend share to buy could be investment bank, Macquarie.

Analysts at Morgans are positive on the company and believe Macquarie is well-placed for the long term thanks partly to structural drivers.

It highlights the company's "exposure to long-term structural growth areas such as infrastructure and renewables" and its potential to "benefit from recent market volatility through its trading businesses."

Morgans has an add rating and $222.80 price target on Macquarie's shares.

In respect to dividends, the broker is expecting Macquarie to pay partially franked dividends of $8.28 per share in FY 2023 and $7.64 per share in FY 2024. Based on the current Macquarie share price of $185.47, this implies yields of 4.5% and 4.1%, respectively.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that has been named as a buy is Woolworths.

Goldman Sachs rates the retail giant highly thanks to its strong market position and digital leadership. The broker is expecting the latter to support further market share and margin gains in the future, which could be good news for its earnings and dividend growth.

Goldman currently has a conviction buy rating and $41.00 price target on the company's shares.

As for dividends, the broker is forecasting fully franked dividends of $1.03 per share in FY 2023 and $1.16 per share in FY 2024. Based on the current Woolworths share price of $36.48, this will mean yields of 2.8% and 3.2%, respectively.

The post Buy these ASX 200 dividend shares for passive income: analysts appeared first on The Motley Fool Australia.

This week, Westpac predicted the Reserve Bank will roll out no less than seven interest rate cuts throughout 2024 and 2025. If these eventuate, they will certainly bring some welcome relief for Aussie homeowners, who have been grappling with the rising cost of living and surging mortgage repayments since May 2022.

But we still have 2023 to get through. And unfortunately, on that front, the news is slightly less rosy.

Westpac is tipping two more rises this year and expects the cash rate to peak at 4.1% in June. Australia's oldest bank says that's where rates will stay for the remainder of the year, with the first cut not expected until March next year. 

One way to help ease the sting of inflation is with some additional income. But if you're already working as hard as you can, and don't have time for a side hustle, what then?

ASX dividend shares could be the answer. 

So, we asked our Foolish writers which ASX dividend stocks they think are worth buying in March for a passive income boost. Here is what they said:      

7 best ASX dividend shares for March 2023 (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $177.68 million
• Super Retail Group Ltd (ASX: SUL), $2.93 billion
• Charter Hall Long WALE REIT (ASX: CLW), $3.29 billion
• Pilbara Minerals Ltd (ASX: PLS), $12.62 billion
• Coles Group Ltd (ASX: COL), $24.08 billion
• Woolworths Group Ltd (ASX: WOW), $44.73 billion
• Westpac Banking Corp (ASX: WBC) $77.45 billion

(Market capitalisation as of 2 March 2023)

Why our Foolish writers love these ASX passive-income stocks

Bailador Technology Investments Ltd

What it does: Bailador is a growth capital fund focused on the IT sector. It looks to invest between $5 million and $20 million into tech companies seeking growth-stage investment.

Bailador prefers relatively young businesses with proven business models and "attractive unit economics". It also likes founder-led companies with international revenue generation, a significant market opportunity, and the ability to generate repeat revenue.

By Tristan Harrison: I like the investment style of Bailador, which has enabled its portfolio to perform well over the last three years, delivering an average annual return of 13.9%.

The company's dividend policy is to pay a fully-franked dividend yield of 4% per annum of pre-tax net tangible assets (NTA), paid semi-annually.

Its pre-tax NTA was $1.79 at 31 January 2023. But, because the latest Bailador share price at the time of writing was $1.22 – a 32% discount to the latest stated NTA – the yield on the actual share price is around 5.9%, or 8.4% grossed-up for franking credits.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Super Retail Group Ltd

What it does: You might know this company by its unmistakable red, yellow, and white automotive brand, Supercheap Auto. However, Super Retail Group is much bigger than its revving roots.

Today, it houses some of the strongest brands in Australian retail, including Rebel, BCF, and Macpac, in addition to Supercheap Auto.

By Mitchell Lawler: The latest half-year results from Super Retail Group were remarkably good, demonstrating the resiliency and diversity that Anthony Heraghty (CEO) and the team have built in the group.

Normalised earnings increased 36% on the prior corresponding year, adding to a commendable history of growth. Yet, the company trades at a price-to-earnings (P/E) ratio of around 11 times. While this is roughly in line with the industry average, I believe it underappreciates the quality of the four individual brands.

In my opinion, the sum of the parts should skew the P/E ratio more toward 15 – placing the valuation closer to $4.1 billion than its current $2.9 billion.

Super Retail shares are currently offering a dividend yield of 5.3%. Remember, the stock's ex-dividend date is just around the corner, 8 March.

Motley Fool contributor Mitchell Lawler does not own shares in Super Retail Group Ltd.

Charter Hall Long WALE REIT

What it does: Charter Hall Long WALE REIT is just that – a real estate investment trust (REIT) focused on properties with long-weighted average lease expiries (WALE). As of the end of the first half, the REIT boasted 99.9% occupancy and an average WALE of nearly 12 years.

By Brooke Cooper: The Charter Hall Long WALE REIT share price has struggled lately, falling nearly 12% over the last 12 months, alongside the S&P/ASX 200 Index (ASX: XJO) real estate sector.

But soaring inflation and rising interest rates weighing on the sector don't pose such a threat to this REIT.

Its tenants undergo annual rent increases, with half linked to CPI and the other half fixed at average increases of 3.1%.

And it's also tipped to grow its dividends. Citi forecasts the REIT to pay 28 cents per share this financial year. At that rate, Charter Hall Long WALE could boast a 6.2% dividend yield at its current share price.

Motley Fool contributor Brooke Cooper does not own units in the Charter Hall Long WALE REIT.

Pilbara Minerals Ltd

What it does: Pilbara Minerals' primary focus is its 100%-owned Pilgangoora Lithium-Tantalum Project, located in Western Australia. The project is the world's largest independent hard-rock lithium operation.

By Bernd Struben: Pilbara Minerals is capitalising on the massive growth in electric vehicles (EVs) and grid storage batteries, which is likely to see global lithium demand continue to increase.

Last week, the company reported a 989% year-on-year increase in half-year net profit after tax (NPAT). Management also declared Pilbara's inaugural dividend of 11 cents per share (cps), fully franked.

CEO Dale Henderson called it "a huge milestone". He said with "massive growth steps in the months and years ahead, this is just the beginning".

Indeed, analysts at Goldman Sachs forecast Pilbara will pay a final dividend of around 20 cps, bringing the full-year payout to 31 cps. That equates to a 7.7% yield at the current share price.

Pilbara Minerals shares have gained 45% in 12 months.

Motley Fool contributor Bernd Struben does not own shares in Pilbara Minerals Ltd.

Coles Group Ltd

What it does: Coles Group is an ASX dividend share that needs little introduction. It is Australia's second-largest grocer and also has a significant presence in the takeaway alcohol market.

By Sebastian Bowen: This ASX 200 dividend heavyweight's income chops seem to go from strength to strength. Just last month, Coles delivered its latest earnings report.

Aside from announcing healthy rises in revenue and profits, Coles also increased its interim dividend yet again by 9.1% to 36 cents per share, fully franked.

This continues the pleasing pattern we have seen from this blue-chip share, which has ratcheted up its dividend every six months since floating on the ASX in its own right.

With inflation and interest rates still on the boil, I think Coles is a great place to look for dividend income this March.

Motley Fool contributor Sebastian Bowen does not own shares in Coles Group Ltd.

Woolworths Group Ltd

What it does: Woolworths is Australia's biggest supermarket retailer and also owns Big W.

By Bronwyn Allen: I like the defensive nature of this ASX dividend share. Woolworths is a mature, long-established business that will, arguably, continue to pay dividends no matter what the economy is doing.

In fact, in tough economic times, it may just pay you more. Case in point: This year's Woolworths interim dividend of 46 cents per share fully franked is almost 20% higher than last year's, thanks to strong 1H FY23 earnings.

In a clear demonstration that ASX consumer staples companies can tolerate inflationary impacts better than most, Woolworths raised its food prices by 7.7% in Q2 FY23, which is almost exactly in line with Australia's annual inflation rate of 7.8%.

The supermarket giant booked a 14% increase in net profit after tax (NPAT) to $907 million over 1H FY23, with the value of sales up 4%.

Motley Fool contributor Bronwyn Allen does not own shares in Woolworths Group Ltd.

Westpac Banking Corp

What it does: Westpac is one of Australia's largest banks. It operates under several brands, including St George, Bank of Melbourne, Bank SA, and of course, Westpac.

By James Mickleboro: If you don't already have exposure to the banking sector, then I think Australia's oldest bank could be a great option for income investors in March. That's because I believe it has the strongest earnings outlook relative to the rest of the big four.

This is due to the combination of rising interest rates and the bank's bold cost-reduction plans. The latter sees Westpac aiming to reduce its cost base to $8.6 billion by FY 2024, compared to $13.3 billion in FY 2021.

Goldman Sachs is expecting Westpac to pay fully-franked dividends of $1.47 per share in FY 2023 and then $1.56 per share in FY 2024. Based on the Westpac share price of $21.64 as at Thursday's close, this will mean generous yields of 6.8% and 7.2%, respectively.

Motley Fool contributor James Mickleboro owns shares in Westpac Banking Corp.

The post Top ASX dividend shares to buy in March 2023 appeared first on The Motley Fool Australia.

Woolworths shares seemingly didn't get an invite to this ASX 200 party. While the Index is healthily in the green today, Woolworths shares are nursing a fairly hefty loss. The supermarket giant ended yesterday at $36.77 a share.

But today, Woolies shares are trading at $36.04 at the time of writing. That's a good 1.99% below where this blue-chip share finished up at yesterday.

So why does it look like investors are singling out Woolworths shares for punishment this Thursday?

Well, they're not really. See, Woolworths shares are falling today because this ASX blue chip has just traded ex-dividend.

Last month, Woolworths revealed its latest earnings report to investors, covering the six months to 31 December 2022. As we covered at the time, these results were well-received by the market. Woolworths reported sales growth of 4% to $33.17 billion.

The company's earnings before interest and tax (EBIT) rose by an even larger 18.4% to $1.64 billion, while net profit after tax (NPAT) was up 14% to $907 million.

This enabled Woolworths to declare a fully franked interim dividend of 46 cents per share for the half. That was a pleasing rise of 17.9% over last year's interim dividend of 39 cents per share.

Woolworths share price falls as company trades ex-dividend

But, as we warned on Tuesday, eligibility for receiving this dividend is now closed for new investors. That's because Woolworths has just traded ex-dividend. When a share goes ex-dividend, it cuts off new investors from receiving an upcoming dividend.

Any shareholder who owned Woolworths shares as of yesterday's close will be receiving this latest 46 cents per share dividend. But any investors who buy Woolies today onwards will not be seeing this next paycheque from the company.

As such, we have just seen Woolworths share become nominally less valuable, reflecting this dividend getting cut off. So it's no surprise to see the Woolworths share price retreat today, demonstrating this fall in value. This is typically what we see when an ASX share trades ex-dividend.

Eligible Woolworths investors can now look forward to receiving this latest dividend next month on 13 April.

In the meantime, the Woolworths share price right now gives this ASX 200 blue chip share a dividend yield of 2.75%.

The post Why is the Woolworths share price sliding lower today? appeared first on The Motley Fool Australia.

As we covered at the time, Woolworths reported a bevvy of green numbers. Sales were up a pleasing 4% to $33.17 billion, while earnings before interest and tax (EBIT) lifted by 18.4% to $1.64 billion. Net profit after tax (NPAT) was also up, this time by 14% to $907 million.

But the centrepiece of this earnings report was arguably Woolworths' new dividend. The grocery giant declared an interim dividend of 46 cents per share, fully franked. That represents an impressive 17.9% rise over the interim dividend of 39 cents per share investors saw in 2022.

This latest dividend from Woolworths will bring the company's trailing annual dividend to 99 cents per share, fully franked. That's going off of Woolies' last final dividend, the 53 cents per share payment that investors bagged last September.

Woolworths shares' turbocharged dividend is inbound

But if any investor is overcome with a need to receive this next dividend from Woolworths shares, they had better be quick. That's because the ex-dividend date for said payment is fast approaching.

An ex-dividend date is a date a company must nominate when it declares a dividend. It provides a cutoff date for eligibility to receive a dividend payment.

Put simply, if an investor owns shares of Woolworths before the ex-dividend date, they are entitled to the dividend payment in question. However, if the investor buys Woolworths shares on or after the ex-dividend date, they miss out. That's why we normally see a share price drop on the day a company goes 'ex-div'.

In Woolies' case, the company is scheduled to trade ex-dividend on this Thursday, 2 March. This means that any investors wishing to net this latest dividend from Woolies will have to own the shares by the end of tomorrow's trading session.

Then, eligible investors have until 6 March to opt for Woolworths' optional dividend reinvestment plan (DRP) if they wish to receive additional Woolworths shares in lieu of a cash payment.

Payment day will then come around on 13 April.

So, a lot happening for Woolworths investors this week.

At yesterday's closing Woolworths share price, this ASX 200 blue chip share has a dividend yield of 2.68%.

The post Hoping to bag the bigger Woolworths dividend? You'll need to hurry appeared first on The Motley Fool Australia.

Many ASX 200 shares like to pay out their dividends fairly soon after reporting their most recent numbers. But before a company can pay out a dividend, it must first choose an ex-dividend date, cutting off new investors from receiving the said dividend.

Loads of ASX 200 shares have already traded ex-dividend for their latest dividend payments. But there are quite a few that are scheduled for next week.

So let's discuss seven such shares that are about to cut investors off from their latest shareholder payments and trade ex-dividend for their next dividend.

7 ASX 200 shares going ex-dividend next week

Fortescue Metals Group Limited (ASX: FMG)

ASX 200 iron ore miner Fortescue is first up. Fortescue shares will go ex-dividend on Monday, 27 February, for the upcoming interim dividend. Investors will receive a reduced 75 cents per share, fully franked dividend payment on 29 March next month.

Santos Ltd (ASX :STO)

ASX 200 energy share Santos is next up. Santos will cut investors off from eligibility for its next interim dividend on Monday as well. Investors will then receive the 21.9 cents per share fully franked dividend on 29 March as well.

Telstra Group Ltd (ASX: TLS)

Telstra delighted its investors with a dividend hike earlier this month. Investors will be bagging an 8.5 cents per share dividend, fully franked of course, on 31 March. But Telstra is going ex-dividend for this payment on Wednesday 1 March.

Woolworths Group Ltd (ASX: WOW)

Next up is ASX 200 blue chip Woolworths. Woolies was another share that gave investors a dividend pay rise this earnings season. Shareholders can circle 13 April as payday for Woolworths' interim dividend of 46 cents per share, fully franked.

But investors will need to own the company's shares before the ex-dividend date of 2 March if they wish to receive it.

Coles Group Ltd (ASX: COL)

Not to be outdone by its arch-rival, Coles is also trading ex-div next week. Coles upped its own interim dividend as well this earnings season.

Coles owners will receive their payout a bit earlier than Woolies too, with 30 March as the date set for dividend payment of Coles' 36 cents per share, fully franked dividend. But the companies are sharing 2 March as their ex-dividend date.

AMP Ltd (ASX: AMP)

Much to the delight of investors, AMP is returning to paying dividends in 2023 after a four-year drought. 1 March is the ex-dividend date for AMP's next dividend payment.

Investors will then have to wait until 3 April to bag the 2.5 cents per share payment. This dividend will be only partially franked at 20%.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, let's talk about Treasury Wine. Treasury will give investors its next payment on 4 April – a fully franked interim dividend of 18 cents per share. But new shareholders will be cut off from this dividend when the company goes ex-dividend on 3 March.

Foolish takeaway

These aren't the only major ASX 200 shares going ex-div next week though.

Watch out for Evolution Mining Ltd (ASX: EVN), Amcor plc (ASX: AMC), Domino's Pizza Enterprises Ltd (ASX: DMP), Ampol Limited (ASX: ALD), Platinum Asset Management Ltd (ASX: PTM), Pro Medicus Ltd (ASX: PME) and NIB Holdings Ltd (ASX: NHF) as well.

The post 7 ASX 200 shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

The ears of those invested in S&P/ASX 200 Index (ASX: XJO) supermarket shares may have pricked this morning as giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) revealed their plan to cooperate on a multi-million-dollar recycling blitz.

The pair have made a public offer to take on stockpiles of soft plastic waste left in limbo after the collapse of REDcycle.

The recycling outfit's soft plastics recycling scheme, employed by both supermarkets and over 270 consumer brands, was suspended in November. It came after REDcycle was revealed to have stockpiled thousands of tonnes of the material due to insufficient processing capacity.

The Woolworths share price is $37.05 right now, 0.3% higher than its previous close. Meanwhile, that of Coles is lifting 0.28%, trading at $17.95. For comparison, the ASX 200 is up 0.04% at the time of writing.

Woolworths and Coles team up on recycling offer

If you own shares in Woolworths or Coles (or both) you might be interested to learn of their pact to take responsibility for stockpiles of recyclable material that might otherwise end up in a landfill.

They intend to implement a strategy to safely store the mountain of soft plastics until they can be processed.

Woolworths and Coles have each vowed to make a multi-million-dollar contribution towards the effort. They will also welcome contributions from other outfits previously involved with REDcycle.

Coles chief operations and sustainability officer Matt Swindells said the supermarkets have paid a combined $20 million to REDcycle over the last decade and are "deeply disappointed by the unrecycled stockpiles".

REDcycle is yet to accept nor deny the offer. Its cooperation is needed to access the stockpiled material. The outfit's founder and CEO Liz Kasell commented:

REDcycle is and will always be dedicated to seeing recovered soft plastics successfully recycled, and we welcome the supportive and collaborative approach by the Coles and Woolworths.

The Environmental Protection Agency (EPA) Victoria previously fined REDcycles' operator after it failed to disclose the locations and amount of soft plastic piled in the state. The agency had uncovered 14 warehouses as of 3 February.

Woolworths CEO Brad Banducci said Australians were "let down" by REDcycles' failure to recycle soft plastics, continuing:

We hope REDcycle will allow us to help get the best outcome for the environment, and restore community trust in our recycling systems.

The offer doesn't extend to taking on any of REDcycle's liabilities or acquiring the business.

Soft Plastics Taskforce to hand down roadmap

News of the supermarket operators' offer comes ahead of the release of a roadmap prepared by the Soft Plastics Taskforce.

The Australian Competition & Consumer Commission authorised the task force shortly after the suspension of REDcycle's program. Woolworths, Coles, and Aldi were able to engage in meetings as the task force considered a solution for soft plastics recycling.

Minister for the Environment and Water, Tanya Plibersek commented on the release from Woolworths and Coles, saying:

This is the kind of positive action and leadership I hoped to see from the supermarkets when I brought them together through the Soft Plastics Taskforce.

The Soft Plastics Taskforce is due to release a public roadmap next week that will provide information about the steps to reinstate collection systems around the country.

The post Own Woolworths shares? Supermarket giant moves to team up with Coles on recycling blitz appeared first on The Motley Fool Australia.

Not only does a dividend give an insight into the financial health of a company, but investors just like to see that passive income in their hands.

Some ASX 200 shares have given investors a dividend pay cut this season, such as BHP Group Ltd (ASX: BHP) and AGL Energy Limited (ASX: AGL). But let's discuss four ASX 200 shares that have gone the other way and ramped up their dividend payments for investors.

4 ASX 200 dividend shares upping their payouts in 2023

Woolworths Group Ltd (ASX: WOW)

ASX 200 blue chip Woolworths is first up. Woolies delighted its investors with its latest dividend announcement on Wednesday. The grocery giant will be forking out a fully-franked 46 cents per share in April.

That's a good 17.9% higher than the interim dividend of 39 cents that investors received last year. But it comes in at the same level as Woolies' interim dividend from 2021. At yesterday's close, Woolworths stores now have a dividend yield of 2.49%.

Coles Group Ltd (ASX: COL)

And that brings us to Woolworths' arch-rival Coles. Coles also upped its dividend game this earnings season. The supermarket operator announced its own earnings on Tuesday this week, and these also included a dividend boost for investors.

Coles paid out an interim dividend of 33 cents per share in 2022, but announced a hike of its own this week, with investors now in line to bag a fully-franked 36 cents per share interim dividend in 2023. That's the largest dividend Coles has paid out since listing on the ASX in 2018.

That's a 9.1% boost though, which isn't quite as large of an increase as Woolies managed. Coles now trades on a dividend yield of 3.69%.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 200 share giving investors a pay rise this earnings cycle is the healthcare heavyweight Ramsay. This company used to have one of the best dividend streaks on the ASX, raising its payouts every single year between 2000 and 2019. Alas, the pandemic sadly brought this to an end in 2020.

But Ramsay seems to be getting back on that horse, and just yesterday announced a fully-franked interim dividend of 50 cents per share for 2023. That's a 3% increase over 2022's corresponding dividend of 48.5 cents per share. Ramsay shares are yielding 1.43% right now.

Medibank Private Ltd (ASX: MPL)

Our final ASX 200 share worth checking out today is another healthcare share in Medibank Private. Medibank was another ASX stock that reported yesterday. In these earnings, the insurer revealed an interim dividend of 6.3 cents per share, fully franked.

That's a rise of 3.28% over 2022's interim dividend of 6.1 cents per share. Medibank is another ASX 200 share that is building up a solid dividend streak. It paid out 12 cents per share in total in 2020, 12.7 cents per share in 2021 and 13.4 cents in 2022.

With this latest dividend, it is on track to raise its annual total in 2023 as well. Medbank shares have a dividend yield of 4.09% today.

The post Passive income watch: 4 ASX 200 shares that announced boosted dividends this week appeared first on The Motley Fool Australia.

One of the blockbuster ASX 200 earnings reports this week came from the blue-chip giant Woolworths Group Ltd (ASX: WOW). Woolworths reported its earnings for the first half of FY2023 (the six months to 31 December) just yesterday. 

Investors clearly liked what the supermarket kingpin had to say. By the end of yesterday's trading session, the Woolworths share price had vaulted a solid 1.99% higher to $37.45 a share:

This was understandable, seeing as Woolworths put up some pretty strong numbers.

As we went through at the time, the grocer reported a 4% rise in sales to $33.17 billion. Earnings before interest and tax (EBIT) rose 18.4% to $1.64 billion, while net profit after tax (NPAT) spiked 14% to $907 million.

Income investors would have been especially tickled. Woolies upped its interim dividend substantially. The company is soon set to pay out 46 cents per share, fully franked. That's a 17.9% lift over last year's corresponding dividend payment.

Even better, Woolworths also told investors that in the first seven weeks of the half-year ending 30 June this year, Australian food sales are up 6.5% against last year's numbers. New Zealand food sales have lifted 6.3% and Big W sales by a pleasing 9.7%.

So all in all, it was arguably a very solid earnings report from Woolies. As we noted yesterday, the company outperformed most of the market's expectations, which would have delighted investors even further.

But this begs the question: is the Woolworths share price a buy, now that these earnings have seen the light of day?

Is the Woolworths share price a post-earnings buy right now?

Well, one ASX broker who thinks so is Goldman Sachs. Earlier this month, we looked at Goldman's buy rating on Woolies shares.  

And yesterday, the broker argued that these earnings contained nothing to dent its confidence.

Here's some of what Goldman said on Woolworths' half-year results:

The margin outcome for Australia Supermarket and the better than expected run-rate in 2H23 first 7 weeks is the bright spot…

Overall we continue to believe that the more advantaged omni-channel execution capability of WOW will continue to drive longer term market share gains and cost efficiencies for EBIT margin expansion. Reiterate Buy.

Goldman has maintained its buy rating on Woolies shares, together with its 12-month share price target of $41.20. If that target is realised in the next year, investors would enjoy a 10% upside from where the shares are today. That doesn't include any returns from Woolworths' fully-franked dividends either.

So that's at least one ASX broker who rates Woolworths shares as a post-earnings buy. We'll have to wait for what the next 12 month has in store to see if Goldman is on the money. But no doubt investors will be pleased as punch with that assessment.

At the last Woolworths share price, this ASX 200 grocery giant has a market capitalisation of $45.56 billion, with a dividend yield of 2.46%.

The post Should I buy Woolworths shares following the ASX 200 supermarket giant's latest results? appeared first on The Motley Fool Australia.

The Woolworths Group Ltd (ASX: WOW) dividend has been supercharged on the back of strong earnings during the first half of FY23.

Woolworths shareholders will receive a fully franked dividend of 46 cents per share on 13 April.

That's 17.9% higher than last year's interim Woolworths dividend and ahead of analysts' expectations, which were 43.9 cents per share.

Why has Woollies turbocharged its dividend?

In short, a big profit is the reason why Woolworths has raised its interim dividend this year.

As my Fool colleague James reported this morning, Woollies beat expectations on many financial metrics.

The supermarket chain raised prices due to inflation, while a reduction in COVID-19 costs allowed it to boost its net profit after tax (NPAT) by 14% to $907 million. Sales were also up 4% to $33,169 million.

Woolworths raised its food prices by an average of 7.7%, which is in line with the headline inflation figure in Australia of 7.8% per annum.

In 1H FY22, the company encountered direct COVID costs of $239 million. Obviously, that didn't happen in 1H FY23, which made a massive difference to the bottom line. The cost of doing business margin dropped by 29 basis points as a result.

How does the Woolworths dividend compare to Coles?

Coles Group Ltd (ASX: COL) reported its results yesterday, including a fully franked interim dividend of 36 cents per share.

That is 9.1% higher than last year's interim dividend and the largest single dividend Coles has ever paid out.

So, the Woolworths dividend, boosted by 18%, represents a better increase by comparison.

But let's look at dividend yield, too.

The Woolworths share price is currently $37.01, up 0.8% for the day. That means the interim Woolworths dividend of 46 cents per share represents a yield of 1.24%.

By comparison, the Coles share price is currently $18.04, down 0.5% for the day. That means the interim Coles dividend of 36 cents per share provides a yield of 1.99%.

Over the past 12 months, the Woolworths share price has risen by 5.2% and the Coles share price has increased by 4.5%.

The post The Woolworths dividend has just been boosted by 18%. Here's the lowdown appeared first on The Motley Fool Australia.

In morning trade, the retail giant's shares are up almost 3% to $37.72.

Why is the Woolworths share price pushing higher?

Investors have been bidding the Woolworths share price higher this morning after the company's half-year results came in ahead of expectations.

For the six months ended 31 December, Woolworths reported a 4% increase in sales to $33,169 million and an 18.4% lift in earnings before interest and tax (EBIT) to $1,637 million.

This was underpinned by sales growth across the Australian Food, Big W, Metro Food, and Australian B2B segments, as well as the non-recurrence of direct COVID costs totalling $239 million.

This ultimately allowed Woolworths to lift its interim dividend by 17.9% to a fully franked 46 cents per share.

Also potentially boosting the Woolworths share price has been its strong start to the second half. For the first seven weeks of the half, Australian Food sales are up 6.5%, New Zealand Food sales are up 6.3%, and Big W sales are up 9.7%.

Broker reaction

Goldman Sachs, which had tipped Woolworths to positively surprise with its earnings, commented:

WOW reported 1H23 results with group sales A$33.2B +4.0% in-line with GSe and Group EBIT of A$1.64B +18.5% YoY and +7% vs GSe. Income tax expense was slightly higher than anticipated leading to Group Underlying NPAT of A$907mn, +14% YoY and +2% vs GSe.

All in all, the broker was pleased with the result and remains positive on the future. Though, it is keen to see how the company responds to rival Coles Group Ltd (ASX: COL) stepping up its competition. It said:

The margin outcome for Australia Supermarket and the better than expected run-rate in 2H23 first 7 weeks is the bright spot though we will need to understand the execution strategy to maintain/continue to gain market share in the face of COL stepping up competition more aggressively with greater focus on value and also supply chain upgrades to come. GPM expansion opportunity into 2H23 (which is largely unimpacted by COVID cost reduction) would also be key to understand flow-through to EBIT margin sustainability as COVID cost savings reduce as a positive catalyst in 2H23 and FY24.

The broker concludes by reiterated its buy rating (and $41.20 price target). It said:

Overall we continue to believe that the more advantaged omni-channel execution capability of WOW will continue to drive longer term market share gains and cost efficiencies for EBIT margin expansion. Reiterate Buy.

The post Woolworths share price higher on strong result and 'better than expected' second-half start appeared first on The Motley Fool Australia.

That's because the supermarket giant has just released its half-year results and reported strong earnings growth.

Woolworths share price following results release

• Sales up 4% to $33,169 million
• Earnings before interest and tax (EBIT) up 18.4% to $1,637 million
• Net profit after tax up 14% to $907 million
• Fully franked interim dividend up 17.9% to 46 cents per share

What happened during the half?

For the six months ended 31 December, Woolworths reported a 4% increase in sales to $33,169 million.

This was driven by a 2.4% increase in Australian Food sales, a 17.4% jump in Metro Food sales, a 15.3% lift in Big W sales, and a 23% jump in Australian B2B sales, which offset weaker sales in New Zealand Food and the WooliesX online business.

Woolworths' key Australian Food business benefited from food inflation. It continued to rise during the half due to industry-wide cost pressures, with Q2 average price growth of 7.7%, marginally higher than Q1 growth of 7.3%. Long Life prices continued to increase but some Fruit & Vegetable prices moderated as supply improved.

The company's EBIT grew at a much quicker pace of 18.4% to $1,637 million during the half. This reflects improvements in its cost of doing business (CODB) margin, which declined 29 basis points largely due to the non-recurrence of direct COVID costs of $239 million that were incurred in the prior corresponding period.

This ultimately led to Woolworths reporting a 14% jump in net profit after tax to $907 million, allowing the board to increase its dividend by 17.9% to 46 cents per share.

How does this compare to expectations?

The good news for the Woolworths share price today is that this result appears to have come in ahead of expectations.

According to a note out of Goldman Sachs, its analysts were expecting group sales growth of 3.5% and EBIT growth of 12%. The market was also expecting a fully franked interim dividend of 43.9 cents per share.

Woolworths has beaten on all metrics with 4% sales growth, 18.4% EBIT growth, and its 46 cents per share dividend.

Management commentary

Woolworths Group CEO, Brad Banducci, was pleased with the half. He commented:

Our first half result benefitted from a focus on improving our customer shopping experience, restoring our operating rhythm, the non-recurrence of material COVID costs in the prior year and strong seasonal trading. Despite continued supply chain challenges during the half, most customer metrics improved, with Customer Care a highlight and Group VOC NPS increasing on Q1 and the prior year.

Cost-of-living pressures are being felt by our customers due to industry-wide inflation and helping all our customers get their Woolies worth remains our number one priority. A focus on affordability and availability, and an inspirational Christmas resulted in Group H1 sales growth of 4.0% (3-yr CAGR: 7.5%) and EBIT growth of 18.4% (3-yr CAGR: 7.1%).

Outlook

More good news for the Woolworths share price today is that the company has had a strong start to the second half. During the first seven weeks of the half, the company has achieved the following sales growth:

• Australian Food sales up 6.5%
• New Zealand Food sales up 6.3%
• Big W sales up 9.7%

And while the company's earnings are not expected to grow as strongly in the second half, a solid full year result appears to be on the cards. Mr Banducci concluded:

In summary, sales momentum has continued to be solid in the half to date and the operating rhythm of our business continues to improve. However, EBIT growth in H2 will be below H1 as we cycle a more normal second half. We will continue to balance the needs of all our stakeholders, including providing our customers with great value; treating our suppliers fairly; offering competitive pay and a positive working environment for our team; continuing to play our part in creating a better tomorrow; and delivering sustainable financial results for our shareholders.

The post Woolworths share price on watch amid first-half earnings beat appeared first on The Motley Fool Australia.

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

ASX 200 expected to sink

The Australian share market looks set to fall again on Wednesday following a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.6% lower this morning. In late trade on Wall Street, the Dow Jones is down 2%, the S&P 500 is down 2%, and the Nasdaq has sunk 2.3%. Higher trreasury yields and soft retail earnings have spooked investors.

Oil prices slide

ASX 200 energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued days after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$76.12 a barrel and the Brent crude oil price has fallen 1.4% to US$82.85 a barrel. Recession fears appear to be weighing on prices.

Santos full-year results

Santos Ltd (ASX: STO) is another energy share that will be on watch on Wednesday. That's because this morning the company is releasing its full-year results and is expected to report a profit after tax of US$2.6 billion. Citi expects this to lead to a partially franked full year dividend of 30 cents per share.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough session after the gold price tumbled overnight. According to CNBC, the spot gold price is down 0.5% to US$1,841.5 an ounce. Rate hike concerns weghed on the precious metal.

Woolworths half-year results

The Woolworths Group Ltd (ASX: WOW) share price will be in focus today when the retail giant releases its half year results. According to a note out of Goldman Sachs, its analysts expect group sales growth of 3.5% but earnings before interest and tax (EBIT) growth of 12% on higher EBIT margins. The market is expecting a fully franked interim dividend of 43.9 cents per share.

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

That's because the retail giant is scheduled to release its half year result on 22 February.

Let's take a look to see what the market is expecting from the company.

What is the market expecting from Woolworths?

It's fair to say that the market is expecting a strong result from the retailer.

For example, according to a note out of Goldman Sachs, its analysts are expecting Woolworths to outperform rival Coles Group Ltd (ASX: COL). It is forecasting earnings before interest and tax (EBIT) growth of 12% for Woolworths and flat earnings for Coles.

This strong earnings growth is expected to be underpinned largely by margin expansion in the supermarket business and group sales growth of 3.5%. The broker explained:

In 1H23, we expect group sales growth of 3.5% but EBIT growth of 12% on higher EBIT margins. Specifically for Australia Supermarkets, we expect sales growth of 2.9% with comps sales of 2.3% (2Q23 comps sales 6.0%) and EBIT growth of 16.7% YoY due to 70bps of EBIT margin expansion to 5.8%. Compared to COL, we expect that GPM will hold largely steady due to more personalized offers focusing on targeted promotions, while lower COVID cost with no material implementation cost step-up on the supply chain should provide a tailwind for margins. We also increase Big W EBIT margin to ~1.9% (vs ~1.3% previously) due to still healthy trading in 1H23 observed for consumer spending.

Goldman also suggested that investors look out for any commentary on its recently announced strategy. It added:

We see strategic merit in management's announced strategy to amalgamate Big W and MyDeal with Petspiration (following the planned acquisition of the latter, which is expected to close in mid 2023) into the "Everyday Needs" part of the business, though execution will be the focus given none of these businesses are clear leaders in their sub-segment.

The post Own Woolworths shares? Here's what the market is expecting from its half year results appeared first on The Motley Fool Australia.