Month: May 2022

On Friday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher. The benchmark index rose 1.1% to 7,182.7 points.

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

ASX 200 expected to jump

The Australian share market looks set to start the week with a strong gain following a very positive night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 83 points or 1.15% higher this morning. On Wall Street, the Dow Jones was up 1.75%, the S&P 500 climbed 2.5%, and the Nasdaq stormed 3.3%. Slowing US inflation boosted investor sentiment.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a positive start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1% to US$115.07 a barrel and the Brent crude oil price climbed 1.7% to US$119.43 a barrel. A potential outright ban on Russian oil boosted prices.

AGL demerger on the rocks?

The AGL Energy Limited (ASX: AGL) share price will be on watch this morning amid speculation that the energy giant’s demerger could be scrapped. It is believed that this could also see AGL announce the exit of its chief executive officer, Graeme Hunt, this morning.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price traded edged higher on Friday night. According to CNBC, the spot gold price is up 0.2% to US$1,857.3 an ounce. A softer US dollar supported the precious metal, taking it to its second successive weekly gain.

Tech shares on watch

It looks set to be a great day of trade for the local tech sector after the tech-focused Nasdaq index surged 3.3% higher on Friday night. Investors were scrambling to buy tech shares after data showed that US inflation is slowing. This bodes well for tech favourites such as Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) this morning.

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

More reading

• Why we’re still buying ASX 200 shares that are ‘high emitters’: fundie
• Here’s why I think these 2 ASX growth shares are top buys in May
• These were the worst performing ASX 200 shares last week
• Broker names 2 of the best ASX resources shares to buy now
• Here are the top 10 ASX shares today

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 Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and 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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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:

Codan Limited (ASX: CDA)

According to a note out of Macquarie, its analysts have retained their outperform rating and $11.60 price target on this metal detector focused technology company’s shares. This follows the release of a trading update which revealed that it expects to report a record profit of $100 million in FY 2022. This was in line with the broker’s forecasts. Outside this, Macquarie feels that solid results from recently acquired businesses could boost confidence in future M&A optionality. The Codan share price ended the week at $7.87.

Endeavour Group Ltd (ASX: EDV)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $8.10 price target on this drinks giant’s shares. This follows an investor day update which revealed the company’s growth plans. This includes an increase in its growth capex to fund store expansions, hotel acquisitions, and its digital business. Goldman was pleased with its plans and is comfortable that the company’s balance sheet can fund this increased capex obligation. The Endeavour share price was fetching $7.25 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $4.00 price target on this lithium miner’s shares. This follows the results of Pilbara Minerals’ fifth BMX auction. Macquarie notes that the auction received a winning bid of US$5,955 per dry metric tonne, which was well-ahead of its forecasts. In addition, Macquarie highlights that current lithium prices are significantly higher than its forecasts, which could mean major revisions to its earnings estimates if they don’t retreat. The Pilbara Minerals share price was trading at $2.91 at the end of the week.

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

More reading

• 4 great value ASX shares we just bought: expert
• These were the best performing ASX 200 shares last week
• Here are the 3 most traded ASX 200 shares on Friday
• Why Infomedia, Pilbara Minerals, PointsBet, and Talga shares are racing higher
• ASX 200 midday update: Appen crashes, lithum shares jump

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 Goldman Sachs. The Motley Fool Australia has recommended Macquarie 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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If you’re looking to boost your income portfolio with some new dividend shares next week, then the two listed below could be worth considering.

Here’s why analysts are positive on these dividend shares right now:

Centuria Industrial Reit (ASX: CIP)

The first buy-rated ASX dividend share to look at is Centuria Industrial.

Thanks to strong demand for industrial property, Centuria Industrial has been growing its rental income and funds from operations (FFO) strongly in recent years. Pleasingly, this continued during the first half of FY 2022, with the company reporting further strong growth.

Macquarie is positive on the company’s outlook thanks to ongoing demand for these properties. It currently has an outperform rating and $4.27 price target on the company’s shares.

As for dividends, Macquarie is forecasting dividends per share of 17.3 cents in FY 2022 and then 17.8 cents in FY 2023. Based on the current Centuria Industrial REIT share price of $3.38, this will mean yields of 5.1% and 5.3%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another first ASX dividend share that could be in the buy zone is the Charter Hall Social Infrastructure REIT.

It is a real estate investment trust that invests in social infrastructure properties. These include properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT, highlighting its solid like for like rental growth and 100% occupancy rate during the first half. Another positive is its lengthy leases, with the REIT boasting a weighted average lease expiry of 14.6 years. This provides good visibility on its future earnings and dividends.

The broker currently has a conviction buy rating and $4.20 price target on its shares and is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.57, this implies yields of 4.8% and 5.1%, respectively.

The post Analysts name 2 ASX dividend shares to buy with 5% yields appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 top ASX 200 dividend shares to buy now
• Analysts name 2 high yield ASX dividend shares to buy now
• 2 buy-rated ASX dividend shares for income: experts
• Brokers rate these ASX dividend shares as buys

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 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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There are a handful of ASX shares that I think would make excellent buys to hold for the long term.

Companies with long-term growth plans and large potential markets can generally produce good compound returns over the coming years, in my opinion.

I believe those elements together with recent share price volatility make the two ASX shares below even more attractive. Let’s take a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that has seen a hefty decline since the beginning of the year, but its FY22 result showed a lot of progress.

The company points out that breast cancer screening presents a “significant opportunity” for the business. There are 92 million women screened globally each year, with 39 million in the United States. Volpara has reached a market share of 35.5% of US women having a Volpara product used on their images and data, compared to 32% in FY21.

There are plenty of other metrics that make this company a great long-term investment, in my opinion. Its average revenue per user (ARPU) continues to climb. ARPU was US$1.40 in FY21 and grew to US$1.51 in FY22. Growth here can be achieved by selling more modules to more clients.

Volpara’s subscription revenue rose by 37% year on year to NZ$24.8 million over the year. It came with a gross profit margin of 91%, which allows the business to invest that growth profit into growth areas of the business growth such as marketing and research and development.

One focus for the ASX share in FY23 is to expand its total addressable market, which could help lengthen the company’s long-term growth runway.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that is focused on the IT sector, actively managed by “an experienced team with demonstrated sector experience.”

It aims to provide exposure to a portfolio of IT companies that have global addressable markets. Bailador invests in private technology companies at the expansion stage.

Some of its investments include Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), InstantScripts, Nosto and Mosh.

Typically, it’s looking for businesses that are run by the founders, have been in operation for two to six years, have a proven business model with attractive unit economics, international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

Some of the types of areas the ASX share likes to look at include subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telecommunication appliances and services.

I think it could be a good opportunity because of the long-term investment approach it takes with its holdings, which themselves are attractive long-term businesses.

At the end of April 2022, it had net tangible assets (NTA) per share (pre-tax) of $1.99. The current Bailador share price of $1.36 at Friday’s close is at an attractive discount to that NTA level.

These factors are why I think the underlying portfolio is likely to continue to perform well over the coming years, particularly starting at this lower valuation of the Bailador share price.

The post 2 ASX shares I think are great long-term buys appeared first on The Motley Fool Australia.

More reading

• Could now be a great time to start investing in ASX shares?
• Volpara share price up on record full-year results
• 2 ASX-listed companies that are growing rapidly
• Buy these 2 impressive ASX shares in May 2022: experts

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. has positions in and has recommended Bailador Technology Investments Limited and VOLPARA FPO NZ. The Motley Fool Australia has positions in and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Bailador Technology Investments 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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S&P/ASX 200 Index (ASX: XJO) shares are under increasing pressure to reduce their emissions to help mitigate global warming.

ASX 200 shares that are seen to be high emitters tend to be left off the investment lists of environmental, social, and corporate governance (ESG) focused retail investors and funds.

But this year Russia’s invasion of Ukraine, and the resulting boycotts of Russian oil, gas and coal, have demonstrated how reliant the world still is on fossil fuels.

While European nations have led the global charge in championing renewable energy, many are finding it could take several years to wean themselves off Russia’s fossil fuels.

Meanwhile, here in Australia, the newly elected Labor government has more ambitious emissions reduction targets than the outgoing Coalition, putting additional pressure on ASX 200 shares to do more on the environmental front.

A big opportunity for ASX 200 shares

Addressing the Labor government’s more ambitious 2030 emissions targets, David Gilmour, portfolio analyst & ESG specialist at Yarra Capital Management, said that this presents “the largest opportunity on our pathway to net zero emissions: making dirty cleaner”.

“For too long, sustainability investment has centred on future facing industries, like renewables, and blatantly ignored the dirtiest industries,” he said. “The focus has been on the cure to emissions, with no consideration to prevention. Divestment has been the weapon of choice.”

With the electricity sector in the United States only accounting for about a third of emissions, Goldman Sachs believes the biggest cuts by 2030 will be delivered by oil and gas producers, diversified metals and mining, and aluminium, where you’ll find few ESG investors holding shares.

According to Gilmour:

Domestically it’s a similar story. Like the US, Australia’s electricity sector only accounts for around 30% of total emissions. Labor’s new target for a 43% reduction on emissions to 2030 (based on 2005 levels) will require substantive efforts from industry and transport.

He added that “the electricity sector is already stretched to its limit with a forecast 49% reduction by 2030 from today’s levels.”

Without additional cuts from the electricity sector, Labor will need to achieve a 22% reduction in emissions from other sources to achieve its target. That compares to the Coalition’s former forecast for a 1% increase.

The case for investing in these ‘dirty’ shares

Which brings us to 3 ‘dirty’ ASX 200 shares Yarra holds positions in.

Noting that Yarra supports Labor’s proposal to strengthen the existing Safeguard Mechanism, Gilmour said, “Investors must also play an important role. We believe strongly in company engagement over exclusion; the former can lead to outperformance, while the latter shifts ownership to parts of the market with less oversight and deprives companies of capital when they need it most.”

He said this was the reason Yarra was invested in ASX 200 shares unlikely to top the list of ESG investors, like Alumina Limited (ASX: AWC) and Worley Ltd (ASX: WOR).

According to Gilmour:

That’s why we are shareholders in high emitters such as Alumina, a company with a harder pathway to net zero but has the capability to benefit from the transition. AWC is already among the lowest emitters among major alumina producers, is pursuing early-stage technologies and is a clear beneficiary of green capex given the expected growth in demand for aluminium (39% demand growth to 2030).

We are also overweight on Worley, which is well positioned to capture higher structural demand from energy transition work over and above its traditional work for the oil & gas industry.

The recently rebranded ASX 200 energy share, Woodside Energy Group Ltd (ASX: WDS), also makes the cut.

“Early this year we established a position in Woodside Petroleum (WPL), a company which predominantly produces gas and has a new strategy to invest $US5bn in new energy opportunities by 2030,” Gilmour said.

“Our focus remains on working with management to strengthen its 2030 interim target and lower its reliance on offsets,” he added.

Some food for thought for ESG investors running their slide rules across potential ASX 200 shares.

The post Why we’re still buying ASX 200 shares that are ‘high emitters’: fundie appeared first on The Motley Fool Australia.

More reading

• TGIF: Here’s why ASX 200 energy shares are outperforming today
• ‘We’re close to the bottom’: Expert flags share market sectors to buy before the rally
• 5 things to watch on the ASX 200 on Friday
• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?
• 5 things to watch on the ASX 200 on Thursday

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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I’m a big believer in investing in emerging ASX growth shares for the medium term.

For example, if you had picked up Vulcan Energy Resources Ltd (ASX: VUL) shares two years ago, you’d be up more than 2,500%. That means an initial $5,000 investment would have given you a total return of more than $133,000.

Show me a property or term deposit that can give you a return of 20x in just two short years.

Of course, companies like Vulcan Energy only come around so often. However, the idea is to monitor the share market news and look into ASX shares that present strong growth potential.

If you can identify the right emerging ASX growth share, it could possibly be worth a fortune down the track.

Below, I’ve chosen two ASX shares that I think investing $5,000 now can turn into $100,000 within the next five years. Big call. Let’s take a look.

Argosy Minerals Ltd (ASX: AGY)

Argosy is a mining and exploration company with a 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina. The flagship mine is situated within the ‘lithium triangle’ – the world’s dominant lithium production source.

The company also wholly owns and operates the Tonopah Lithium Project in Nevada, United States.

Argosy has been creating tailwinds over the past few months as construction at the Rincon Project nears completion.

With its first production of lithium carbonate product expected in the next quarter, this will be sold to domestic customers in Argentina.

The hype around the lithium space has continued to surge with investors taking notice of the incredible gains made so far.

Argosy is progressing towards the next stage of ramping up its modular 2,000 tonne per annum (tpa) operation to 12,000tpa.

The company’s shares are up almost 400% over the past 12 months after finishing 3.57% higher to 43.5 cents yesterday.

The promising lithium mining company has a market capitalisation of just $541.90 million.

In comparison, investor favourite Pilbara Minerals Ltd (ASX: PLS) has a market capitalisation of $8.25 billion.

If Argosy can reach those levels, then shareholders could be expecting returns of around 15x from where it trades today.

BrainChip Holdings Ltd (ASX: BRN)

BrainChip develops software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications. The company’s primary focus is its Akida neuromorphic processor unit hardware product.

In layman’s terms, the Akida chip thinks like a human brain and can be used globally in a variety of purposes.

I think BrainChip has huge potential to materially grow in the future, particularly given its partnership with NASA. This is due to its advanced Akida chip which could offer huge advantages for NASA’s future space missions.

Cutting-edge technology mixed with insatiable demand is an investor’s dream, in my opinion.

Valued at $1.97 billion, BrainChip is still a relatively emerging company that is looking to dominate the AI market.

While the BrainChip share price has been volatile, it’s up 90% since this time last year.

In January, the company’s shares soared to an all-time high of $2.34 before profit-takers swooped in.

Should BrainChip be able to deliver on its potential, I think its share price is extremely attractive at the price of $1.06 apiece.

Remember Foolish readers, investing requires immense discipline and patience.

The post Why I think these two ASX shares could turn $5,000 into $100,000 appeared first on The Motley Fool Australia.

More reading

• Why is the BrainChip share price tumbling 5% on Wednesday?
• Why BHP, BrainChip, Chalice Mining, and Fisher & Paykel shares are dropping
• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• Why is the BrainChip share price rocketing 15% higher today?
• The BrainChip share price just plunged 8%, what happened?

Motley Fool contributor Aaron Teboneras has positions in Argosy Minerals Limited. 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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There are a lot of exchange traded funds (ETFs) funds out there for investors to choose from.

Three quality ETFs that you may want to look deeper into are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF has come under significant pressure this year due to weakness in the tech sector and concerns about extended lockdowns in China. And while it is unclear if it has reached a bottom yet, the risk-reward on offer for long-term investors appears very attractive at the current level. Particularly given the quality of the companies in the ETF. This includes the leaders of the Asian technological revolution, such as Alibaba, Baidu, JD.com, Pinduoduo, and Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another quality ETF to look at is the BetaShares Crypto Innovators ETF. It has also come under pressure this year due to weakness in the tech sector and crypto market. And once again, while it’s impossible to know if the selloff is over, investors with a long-term focus may do very well from this high risk ETF. Especially if you believe that cryptocurrencies are going to change the world. That’s because this ETF gives investors access to the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes the likes of Coinbase, Silvergate, and Riot Blockchain.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

At the other end of the risk scale is the Vanguard MSCI Index International Shares ETF. It could be a top option for investors looking for a low risk way to diversify their portfolio. That’s because this popular ETF provides investors with exposure to a massive ~1,500 of the world’s largest listed companies. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 fantastic ETFs for ASX investors to buy next week appeared first on The Motley Fool Australia.

More reading

• Why is the Betashares Asia Technology Tigers ETF having such a cracker of a day?
• 2 beaten down ETFs for investors to buy now
• Why I think it’s a good time to buy the Vanguard MSCI Index International Shares ETF (VGS)
• 2 fantastic ETFs for ASX investors to buy next week
• 3 top ETFs for ASX investors to buy now

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 Betashares Crypto Innovators ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and Vanguard MSCI Index International Shares 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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I think that ASX growth shares are looking really attractive in May 2022. The recent declines and volatility mean that prices are lower and values look better.

The ASX share market can be like a supermarket sometimes. There are times when particular products are on sale and may seem cheap enough to buy. However, if nearly everything is on sale at the supermarket, I’d want to choose my favourite meal ideas at the better price.

Translating that into ASX shares – a lot of ASX growth shares are much cheaper than they were at the start of the year. There are a lot of investments that now look like bargains to me. Below are two of my favourites.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is like the Amazon of Australian homewares and furniture. It sells hundreds of thousands of products. A lot of those products are shipped directly by suppliers, which reduces shipping times and reduces the need for Temple & Webster to hold as much inventory.

How much cheaper is the Temple & Webster share price? It’s down around 60% in 2022. Ouch. But, I think it’s now a really good long-term opportunity.

There is a long-term trend for more shopping being done online, which I think will benefit the business over time. It already claims to be a leading e-commerce retailer.

I think that the compounding growth of the business is compelling. In the four months to 30 April 2022, the business saw 23% revenue growth compared to the prior year. This was growth of 116% compared to 2020.

Increasing revenue and scale will help grow the operating leverage, allowing the business to re-invest for growth in things like marketing, technology development, product range and the overall customer experience. Increased scale will also help the ASX growth share achieve better unit economies, including cost advantages in product sourcing, logistics and marketing.

At this lower Temple & Webster share price, I reckon the business has a good future ahead.

Xero Limited (ASX: XRO)

The cloud accounting software business is my other pick for May 2022 (and the long-term).

There aren’t many large, high-quality tech shares on the ASX. But I think Xero is one of those great names.

It has a very gross profit margin of 87.3% — this is creeping higher every year. A strong gross profit margin means that most of the revenue turns into gross profit. That gross profit can be spent on areas that help grow and improve Xero, such as product development, marketing, wages and so on.

Eventually, I think that a high gross profit margin will allow Xero to generate a large net profit after tax (NPAT) when it is no longer investing so heavily in growth.

There are two other things that I really like about this ASX growth share.

It has a global subscriber base, which is quickly growing. At the end of FY22, it had 3.3 million subscribers (up 19% year on year). This is spread across places like Australia, the United Kingdom, North America and South Africa. There is a very large addressable market for Xero to target.

The other thing I like about Xero is its software as a service (SaaS) nature. It receives monthly revenue from subscribers and this allows investors (and management) to easily see what the next 12 months of revenue could be.

Xero’s annualised monthly recurring revenue (AMRR) increased 28% to NZ$1.2 billion in FY22. The actual FY22 operating revenue was NZ$1.1 billion. So, there’s already some revenue growth baked in for the next 12 months.

But these two ASX growth shares aren’t the only two I’d be happy to go shopping for. We’ll look at some of my other favourites another time.

The post Here’s why I think these 2 ASX growth shares are top buys in May appeared first on The Motley Fool Australia.

More reading

• Could now be a great time to start investing in ASX shares?
• Analysts name 2 ASX 200 shares to buy after the selloff
• What’s happening with ASX 200 tech shares today?
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• Do experts think the Xero share price is a buy?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. has positions in and has recommended Amazon, Temple & Webster Group Ltd, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Amazon and Temple & Webster Group Ltd. 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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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Carsales.Com Ltd (ASX: CAR)

Thanks to the structural shift online for auto listings, its expansion internationally, and acquisitions, Carsales has been growing at a solid rate over the last decade. This has underpinned strong returns for investors, with its shares averaging a total return of 16.2% per annum since 2012. This means that if you had invested $20,000 into Carsales’ shares 10 years ago, it would be worth $90,000 today.

Goodman Group (ASX: GMG)

Another market beater during the last 10 years has been this integrated commercial and industrial property company. This has been driven by Goodman’s highly successful focus on investing in and developing high quality industrial properties in strategic locations close to large urban populations and in and around major gateway cities globally. Over the period, the company’s shares have generated an average total annual return of 20.8% for investors. This would have turned a $20,000 investment into $130,000 today.

ResMed Inc. (ASX: RMD)

Finally, ResMed shares have been a great place to invest over the last decade. This sleep treatment company’s shares have beaten the market thanks to its consistently solid sales and earnings growth over the period. ResMed’s growth has been driven by its industry-leading solutions and the growing awareness and prevalence of sleep disorders. Over the last 10 years, ResMed’s shares have generated an average total return of 24.7% per annum. This means that an investment of $20,000 into its shares in 2012 would have grown to be worth~$180,000 this year.

The post How to turn $20,000 into $180,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 shares to buy after the selloff
• 3 ‘disruptive’ ASX companies Aussies now can’t live without
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• ‘We see value’ in this dividend ASX share: expert
• Why this broker says ResMed is an ASX 200 share to buy

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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and carsales.com 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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Are you looking for dividend shares to buy? If you are, the two listed below could be worth considering.

Both are rated as buys and tipped to provide investors with attractive yields. Here’s what you need to know:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share for income investors to look at is the Charter Hall Long Wale REIT.

This REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors. This includes 78 hotel properties that are all leased to Endeavour Group Ltd (ASX: EDV).

As its name implies, the Charter Hall Long WALE REIT boasts very long leases. As of its last update, its weighted average lease expiry stood at a sizeable 12.2 years. This is a big positive and provides great visibility on future earnings.

Citi is very positive on the REIT. It currently has a buy rating and $5.71 price target on its shares.

As for dividends, Citi is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.86, this will mean yields of ~6.3% for both years.

HomeCo Daily Needs REIT (ASX: HDN)

Another buy-rated ASX dividend share to look at is the HomeCo Daily Needs REIT.

It is another property company but this time with a focus on convenience-based assets. This includes neighbourhood retail and large format retail (retail parks).

Goldman Sachs is a fan of the company and believes it is well-positioned to continue its growth over the medium term thanks to “the shift to omni channel retailing.” In addition, the broker feels HomeCo Daily Needs REIT’s shares are undervalued based on its positive growth outlook and diversified tenant base.

Goldman has a buy rating and $1.70 price target on the company’s shares, which is meaningfully higher than the current HomeCo Daily Needs share price of $1.33.

It also expects some big dividend yields in the near term and is forecasting dividends per share of 8 cents in FY 2022 and then 9 cents in FY 2023. This equates to yields of 6% and 6.9%, respectively.

The post Experts are tipping these ASX dividend shares as buys appeared first on The Motley Fool Australia.

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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 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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