Day: March 6, 2022

Analysts name 2 ASX 200 dividend giants to buy in March

If you’re wanting to add some ASX 200 dividend shares to your portfolio, then it could be worth considering the two giants listed below.

Here’s why analysts think they could be top options for income investors in March:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share to consider is Australia’s largest bank, Commonwealth Bank. It could be a top option due to its leadership position in the sector and the improving outlook for interest rates in Australia.

Bell Potter certainly thinks it would be a good option. And while its shares are trading at a premium to the rest of the big four, its analysts believe they deserve to and have put a buy rating with a $108.00 price target on them.

The broker commented: “Despite the misgivings of the market and especially COVID-19’s Omicron strain, CBA sees FY22 as a strong year. The unemployment (and underemployment rate) are the lowest since 2008 and Australian household accumulated savings are stronger than ever (likewise the rate at which wage growth in anticipated). Inflation is likely to increase in due course (and that’s a good thing for all banks) while non-mining investment including infrastructure continue to hold up reasonably well. The bank has again bounced back from its lows and is on its way back to its usual top line growth potential.”

As for dividends, the broker is forecasting fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $94.60, this will mean yields of 4.1% and 4.3% respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share to look at is telco giant, Telstra. It could be a top option due to its ever-improving outlook which is being underpinned by the successful execution of its transformative T22 strategy and the impending T25 strategy.

The latter is aiming to drive strong earnings per share growth in the coming years, which could bode well for dividends.

Morgans is very positive on the company and has an add rating and $4.55 price target on them. It feels the market is undervaluing its shares and expects attractive yields for the foreseeable future.

The broker commented: “The SOTP [sum of the part] for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear).”

In respect to dividends, Morgans continues to expect fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.92, this implies yields of 4% for investors.

The post Analysts name 2 ASX 200 dividend giants to buy in March appeared first on The Motley Fool Australia.

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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2 ASX shares rated as strong buys by brokers

A stopwatch ticking close to the 12 where the words on the face say 'Time to Buy' indicating its the bottom of the falling market and time to buy ASX shares

A stopwatch ticking close to the 12 where the words on the face say 'Time to Buy' indicating its the bottom of the falling market and time to buy ASX sharesA stopwatch ticking close to the 12 where the words on the face say 'Time to Buy' indicating its the bottom of the falling market and time to buy ASX shares

There are plenty of opinions out there on different ASX shares. Some stocks are rated as buys by multiple brokers.

If a business is seen as an opportunity by multiple analysts who think there is plenty of upside, then there could be an opportunity there. It is possible that all of those analysts are wrong at the same time though. So, keep that in mind.

Tyro Payments Ltd (ASX: TYR)

As the name may suggest, Tyro is a payments business. Its payment terminals are being used by many thousands of businesses around the country such as cafes.

The Tyro Payments share price has fallen by almost 60% over the past six months, with a 46% drop since the start of the year.

This business is rated as a buy by four brokers, including Ord Minnett and Morgans.

Brokers noted that margins and costs were worse than expected. However, despite the disappointment, brokers are expecting growth from the business.

Tyro is expected to show that transaction volume growth will help the ASX share’s margins.

Management pointed out that the second half is seeing strong momentum. January transaction value was up 35% to $2.7 billion and the February transaction value (to 18 February) was up 50% to $1.8 billion. E-commerce transactions soared 836% to $36.5 million. The payments business gross profit jumped 24% to $11.1 million.

The Ord Minnett price target is $3 on Tyro and the Morgans share price target is $2.68.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an ASX share where it invests in investment managers to give them the optimal environment to deliver strong investment returns.

The company takes care of a number of things including distribution and client services, compliance, finance legal, technology, seed funds under management (FUM) and working capital, fund administration and so on. It means the fund managers can just focus on generating the best returns.

It’s invested in a number of fund managers including Hyperion, Plato, Solaris, Antipodes, Firetrail, Spheria, Metrics, Coolabah and Five V.

Pinnacle is rated as a buy by at least four brokers, including Ord Minnett with a price target of $15. Whilst the Pinnacle share price has fallen by 37% since the start of the year, the broker likes the growth potential of the business. It’s possible the business could make another acquisition – it’s looking for opportunities.

The HY22 result showed that the ASX share’s aggregate affiliate funds under management (FUM) was $93.6 billion at 31 December 2021, which was up 33% year on year. The net profit after tax (NPAT) rose 32% to $30.3 million.

Pinnacle says that it has an excellent platform in place to continue to prosper, driven by growth within existing affiliates, incubating new affiliates and strategies, domestically and offshore.

Ord Minnett thinks the Pinnacle share price is valued at 23x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tyro right now?

Before you consider Tyro, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tyro wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended PINNACLE FPO and Tyro Payments. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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3 buy-rated ASX growth shares analysts are recommending

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price todayA graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

If you’re a fan of growth shares, then you may want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is an integrated content, marketing and e-commerce retail platform with a focus on the $11 billion per year Australian beauty and personal care market. While it has been growing at a rapid rate in recent years and now has almost 1 million active customers, it still only has a tiny share of the market. The good news is that Adore Beauty has been tipped to keep winning market share over the next decade as the structural shift online continues. This bodes well for its future growth.

The team at UBS is positive on Adore Beauty. The broker currently has a buy rating and $4.70 price target on its shares.

Altium Limited (ASX: ALU)

Another growth share for investors to consider buying is Altium. It is the electronic design software provider behind the Altium 365 and Altium Designer platforms. These platforms are the leaders in their field and are now aiming to dominate their market. This bodes well for its future growth given how the Internet of Things (IoT) and AI markets are underpinning an explosion of electronic devices globally. This is expected to lead to a significant increase in demand for electronic design software in the future.

The team at Bell Potter is bullish on Altium. It currently has a buy rating and $38.75 price target on the company’s shares.

Megaport Ltd (ASX: MP1)

A final ASX growth share that could be a buy is Megaport. It is a leading cloud connectivity and networking solutions provider which looks set to benefit massively from two long-term structural tailwinds. These are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS). Goldman Sachs has been looking into its opportunity and estimates it to be $129 billion per annum across its current geographies.

In light of this, it won’t be a surprise to learn that Goldman has a buy rating and $19.50 price target on its shares.

The post 3 buy-rated ASX growth shares analysts are recommending appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Top brokers name 3 ASX shares to buy next week

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

GQG Partners Inc (ASX: GQG)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this fund manager’s shares to $2.27. Morgans was pleased with GQG’s full year results and expects more of the same in FY 2022 thanks to the positive performance of its strategies. The broker expects this to solidify its near-term flows outlook. In light of this, it feels the recent de-rating of its shares is unwarranted and a buying opportunity. The GQG share price was trading at $1.32 at Friday’s close.

Transurban Group (ASX: TCL)

A note out of Macquarie reveals that its analysts have retained their outperform rating with a slightly trimmed price target of $14.80. The broker has been looking at recent traffic data and was pleased to see that some of its roads were now at pre-pandemic levels. Others, particularly those linking to airports, are expected to follow in time once travel markets return to normal. The Transurban share price was fetching $12.59 at the end of the week.

WiseTech Global Ltd (ASX: WTC)

Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this logistic solutions company’s shares to $50.00. This follows the release of the company’s half year results at the end last month. According to the note, the broker thought that WiseTech delivered a strong half year result, which has led to its analysts upgrading their earnings forecasts. The WiseTech share price ended the week at $46.03.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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