Looking for a blue chip ASX 200 share or two for your portfolio following the market selloff? Listed below are two that have been given buy ratings recently.

Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.

Goodman recently released its third-quarter update and revealed that it continues to experience strong demand for its properties. This is being driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets.

Demand has been so strong, that last week management upgraded its earnings guidance for the second time in FY 2022. Its latest guidance reveals expectations for annual growth of at least 23%.

The good news is that its growth looks unlikely to stop here. Goodman has $13.4 billion of development work in progress, which is expected to underpin further solid growth over the coming years.

Citi is a fan of the company and sees the recent weakness in the Goodman share price as a buying opportunity. Following its third quarter update, the broker said: “We re-iterate Buy and see the -25% YTD share price decline as a good entry point.”

Citi currently has a buy rating and $29.50 price target on the company’s shares. This implies potential upside of 51% for investors.

Xero Limited (ASX: XRO)

Another ASX 200 share that has been sold off is Xero. The leading cloud-based business and accounting software provider’s shares are down 40% since the start of the year due to weakness in the tech sector.

While this is disappointing, analysts at Goldman Sachs believe this could be a buying opportunity for long term focused investors. Particularly given its view that Xero is a “compelling global growth story” with potential for multi-decade strong growth. This is being underpinned by its global expansion and platform strategy, which Goldman highlights is “showing positive signs.”

The broker recently reiterated its buy rating on the company’s shares with a $118.00 price target. This suggests potential upside of 35% for investors over the next 12 months.

The post Analysts name 2 ASX 200 shares to buy after the selloff appeared first on The Motley Fool Australia.

More reading

• What’s happening with ASX 200 tech shares today?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Do experts think the Xero share price is a buy?
• ‘We see value’ in this dividend ASX share: expert

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at right now? Listed below are three high quality ETFs that could be worth considering:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at is the BetaShares Global Energy Companies ETF. With oil prices at sky high levels and looking unlikely to pullback materially any time soon, the companies included in this ETF appear well-placed to deliver bumper profits in the near term. Among the fund’s holdings are a range of energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to look at is the BetaShares NASDAQ 100 ETF. This high quality ETF gives investors access to many of the world’s greatest companies. This includes iconic companies such as Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. While these companies have been sold off this year amid weakness in the tech sector, this could have created a buying opportunity for long term focused investors.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. As its name implies, this popular ETF gives investors exposure to the biggest companies in a global video game market estimated to comprise 2.7 billion active gamers. Among the shares that are included in the fund are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 high quality ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Nasdaq 100 ETF (NDQ) is sinking today
• Are these 2 sold-off ASX growth shares now cheap bargains?
• 3 top ETFs for ASX investors to buy now
• Here are 2 quality ETFs that are now a lot cheaper
• 2 high quality ETFs for ASX investors to buy after the market meltdown

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 positions in and has recommended BETANASDAQ ETF UNITS and BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woolworths Group Ltd (ASX: WOW) is undoubtedly a popular ASX share. This could be for one or more of many possible reasons.

For one, chances are highly likely that many prospective Woolworths shareholders are also customers. Woolworths is, after all, the grocer with the highest market share in the country. Woolworths has also been on the ASX boards for decades, and its size and scale in the consumer staples sector means that many investors consider Woolworths to be an ASX 200 blue-chip share.

This is only accentuated by Woolworths’ long history of paying dividends. The company hasn’t missed a dividend for decades now. But its history of dividend payments certainly hasn’t been perfect. For one, the company has yet to beat its 2015 annual total of $1.39 in dividends per share. 2021 saw the company dole out $1.08 in dividends.

So how safe is the Woolworths dividend if it can be cut so dramatically?

Is the Woolworths dividend a safe bet?

Well, that’s a complex question. Just because Woolworths hasn’t been increasing its dividends year in, year out doesn’t mean the company’s dividend isn’t safe.

As my Fool colleague covered a few months ago, Woolworths’ 2021 dividends represented a payout ratio of 65.45% of the company’s earnings per share (EPS). That means the company kept almost 35% of its earnings within the business.

If Woolies had a payout ratio of 90-95%, we could say that its dividend safety was under a cloud. But on these metrics, it looks as though Woolworths can easily afford to keep the dividend taps open.

But for investors looking for income certainty, Woolworths shares might not be the best bet, going off of history.

We’ve already examined the company’s patchy dividend record over the past decade. And the ongoing COVID-19 pandemic has played havoc with Woolies’ costs in recent years. This is probably partly why 2022’s interim dividend of 39 cents was less than 2021’s 53 cents.

At the closing Woolworths share price today, this ASX 200 blue-chip share has a market capitalisation of $41.8 billion, with a fully franked dividend yield of 2.68%.

The post How safe is the Woolworths dividend? appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Leading brokers name 3 ASX shares to buy today
• Is the Woolworths share price a buy following the latest acquisition or a no deal?
• 5 things to watch on the ASX 200 on Monday
• Woolworths share price lifts following $218m online marketplace deal

Motley Fool contributor Sebastian Bowen 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Shares of Insurance Australia Group Ltd (ASX: IAG) traced lower today and finished trading down 0.44% at $4.51 apiece.

The loss eclipses a 9% downfall for the insurance giant in the last 12 months, amid a difficult two years for the insurance industry across 2020/21.

How might IAG hold up in another catastrophe?

Analysts at Goldman Sachs forecast that ‘catastrophe risks’ are likely to worsen before normalising back to positive trends in a recent note.

Whilst IAG is investing substantial amounts in mitigating climate change and catastrophe risks, “an issue of this magnitude is difficult to manage,” Goldman says.

Ultimately, the broker says, insurers like IAG will need to reflect this risk premium in their price setting and to factor in inflation.

Meanwhile, analysts at Morgan Stanley see the ‘volatility’ of catastrophe risk to be a going concern for IAG.

The investment bank quotes research from Swiss insurance and reinsurance firm Swiss Re, which now sees natural catastrophes growing at a long-term rate of 5-7%.

On this basis, Morgan Stanley reckons that Australian insurers like IAG will have to absorb more catastrophe risk in their earnings profile, which could ultimately impact its share price.

So to answer the question, judging by the analysis of these brokers, is that another catastrophe is certain to have some kind of impact on insurers like IAG.

Just what that impact might be, remains to be seen.

IAG share price snapshot

According to Bloomberg data, 58% of analysts covering IAG rate it a buy right now, whereas 25% have it as a hold. The remaining coverage – around 17% – says to sell IAG shares.

This year to date IAG shares have snaked around 6% into the green following another positive month of trade.

The post How might the IAG share price fare with another ‘catastrophe’? appeared first on The Motley Fool Australia.

More reading

• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• How does the IAG share price stack up against analyst ratings?
• Top brokers name 3 ASX shares to sell today
• What is the dividend yield on IAG shares in May?
• The IAG share price has gained 6% in a month. Is this just the beginning?

Motley Fool contributor Zach Bristow 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 has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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