Although more Australian companies are paying dividends in 2023, many have reduced payouts, with the year-to-date total slightly behind 2022’s figures, according to CommSec research. The big miners are leading the cuts, while energy producers are lifting dividends to reflect record high gas prices.
A higher net interest margin drove a 10 per cent increase in CBA’s net profit after tax, while Wesfarmers benefited from a strong performance by Kmart Group and the chemicals division. But with much of the upside for these companies already priced in, investors should be clear about valuations before buying in.
Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.
Falling resource and commodities prices are worrying investors and resource companies have dropped sharply in price in July. Analysts are mixed on their outlook for resources companies, with some tipping energy companies to outperform while other experts favour diversified resources companies.
China is tipped to be the largest economy in the world, yet most client portfolios contain little to no exposure to China A-Shares. While the ease of access has often been cited as one of the reasons for the omission, there are a number of managed funds and ETFs that cover this growing asset class that can easily be implemented.
And there goes the 2022 financial year. It flew by at the blink of an eye. A pandemic, a few supply-chain disruptions, a war in Europe, rising energy prices, climate change and soaring inflation. What more could you ask?
Following the reopening of global markets post-Covid, there was a sudden change in macro-economic conditions caused by massive stimulus spending and supply constraints, and central bankers were caught asleep at the wheel while inflation surged in the background. Central bankers are now talking tough.
Morningstar has released its Best Stock Ideas, which highlight the top Australian and New Zealand companies that are trading at a discount to their fair valuations. This month it has 15 companies in its list having added Fineos Corporate Holdings and Newcrest Mining.
The latter half of 2021 and the majority of 2022 have been among the most challenging periods for investors in several decades. The traditional balanced portfolio, defined as one that holds 40 per cent of assets in government bonds and 60 per cent in indexed equities, is on track for the sixth-worst beginnings to a year in the last century.
The exchange-traded fund (ETF) sector has been among the biggest winners of the pandemic, seeing significant inflows and more investors entering the market. Among the most popular strategies to come to market have been so-called ‘thematic’ ETFs, which offer exposure to a secular trend or opportunity.