Day: June 4, 2022

2 popular ETFs that could be buys for ASX investors

Man looking at an ETF diagram.

Man looking at an ETF diagram.

Exchange traded funds (ETFs) can be a fantastic way to balance out your portfolio. This is because ETFs provide investors with easy access to a large and diverse group of shares.

With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

The first ETF for ASX investors to take a look at is the Betashares Global Sustainability Leaders ETF.

It could be a good option for investors looking for ethical options. That is because the ETF gives investors exposure to large global stocks that have been passed strict ESG screens and been identified as climate leaders. Among the shares included in the fund are the likes of Adobe, Apple, Home Depot, Nvidia, Toyota, and Visa.

Shaw and Partners’ Felicity Thomas recently rated the ETF as a buy. She told Livewire: “This is one of my favourites, so it’s definitely a buy for me. I really like that they do positive carbon screening. They also pay a 5.7% distribution yield, which is great.”

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

Another ETF that could be a top option is the VanEck Vectors Video Gaming and eSports ETF.

As its name implies, this ETF gives investors exposure to a portfolio of the largest companies involved in the video game industry. This includes video game developers and hardware providers.

VanEck highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. It notes that there are 2.7 billion active gamers worldwide, which is more than iPhone users and Netflix users combined.

Among the ETF’s major holdings are graphics processing units giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Roblox.

The post 2 popular ETFs that could be buys for ASX investors 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

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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 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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What’s in store for the Wesfarmers share price in June?

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX 200 shares today as the market rebounds

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX 200 shares today as the market rebounds

May 2022 saw the Wesfarmers Ltd (ASX: WES) share price go backwards. Could June 2022 be better for the business?

Wesfarmers is one of the biggest businesses in Australia. It operates a number of well-recognised Australian retailers including Bunnings, Officeworks, Kmart, Catch and Target.

The latest we’ve heard from the business was from a strategy briefing day.

Investor day

Wesfarmers re-iterated to investors that its primary objective is to provide a satisfactory return to shareholders. There are a number of areas that it’s focusing on to make those returns happen.

One of those factors is “anticipating the needs of our customers and delivering competitive goods and services.” Another is “looking after our team members and providing a safe, fulfilling work environment.” A third one was “taking care of the environment”.

Wesfarmers is currently working on its data and digital ecosystem. It established ‘OneDigital’ in the second half of FY22 and extended the benefits of the OnePass membership program to Kmart and Target.

It has strengthened its e-commerce capabilities, while Bunnings and Officeworks have partnered with Flybuys.

The company also said that it’s developing platforms for long-term growth.

It’s putting money into developing the Mt Holland lithium project.

Wesfarmers has established a health division after acquiring Australian Pharmaceutical Industries.

It is exploring capacity expansion and adjacent industry opportunities within WesCEF (chemicals, energy and fertilisers). Those opportunities it’s looking at include ammonia and sodium cyanide plants, as well as clean energy projects.

Management is also working on the continued development of Bunnings, including Tool Kit Depot and Beaumont Tiles. Bunnings is a large contributor to the Wesfarmers profit and therefore the Wesfarmers share price.

Improving operations

The ASX share also noted that it’s looking to accelerate the pace of its continuous improvement.

Areas of focus include improving supply chain capabilities, increasing resilience and operational agility, optimising store networks, focusing on sustainability and supporting team members and the community.

Outlook

Investors like to focus on the potential outlook, so investors may be taking that into account with the Wesfarmers share price.

The company noted that market conditions remain uncertain and “challenging”. There have been continued COVID-related disruptions to the global supply chain and labour availability in some states. It also noted inflationary impacts, though the business wants to be a price leader for customers.

Wesfarmers says that it’s focused on building market share and integrating sustainable practices to ensure long-term profitability.

Expert ratings on the Wesfarmers share price

Opinions are quite mixed on the business.

On the one hand, there is a broker like Morgans with a buy rating on Wesfarmers and a price target of $58.40. That suggests a possible rise of more than 20% over the next 12 months.

Then there’s Citi which rates Wesfarmers as a sell, with a price target of just $42. One of the reasons for the cautiousness is that Bunnings could face earnings difficulties as house prices decline.

However, while these ratings are opposite, the profit estimates are quite similar. Citi thinks the Wesfarmers share price is valued at 24 times FY22’s estimated earnings with a projected grossed-up dividend yield of 5.4%.

The post What’s in store for the Wesfarmers share price in June? appeared first on The Motley Fool Australia.

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

Before you consider Wesfarmers, 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 Wesfarmers 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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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers 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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Here are 2 excellent ASX dividend shares rated as buys

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

Looking for dividends shares to buy for your income portfolio? If you are, you may want to check out the two listed below.

Here’s what you need to know about these ASX dividend shares:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that could be in the buy zone is Baby Bunting. It is a leading baby products retailer with a network of superstores across Australia.

While the retail sector is a tough place to be right now due to rising inflation, the team at Citi remains very positive on the company. Last month, the broker retained its buy rating and $6.22 price target on its shares.

Citi is particularly positive on Baby Bunting due to its private label opportunity, which it believes has a significant runway for growth. It also highlights that it has a strong position in a less discretionary category. It expects this to support strong sales and earnings growth in the coming years.

As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.35, this will mean yields of 3.7% and 4.4%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been rated as a buy is HomeCo Daily Needs REIT. It is a property company with a focus on neighbourhood retail, health and services, and large format retail. The latter include retail parks that were owned by Aventus before the two companies merged.

Goldman Sachs is a big fan of HomeCo Daily Needs and has a buy rating and $1.70 price target on its shares.

Its analysts believe the company is well positioned to benefit from the shift to omni channel retailing. Goldman also highlights that the company has additional external growth opportunities to drive earnings growth over the medium-term. This includes development and asset optimisation opportunities.

As for dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.33, this will mean dividend yields of 6% and 6.75%, respectively.

The post Here are 2 excellent ASX dividend shares rated as buys 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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Why ‘you’re not going to go wrong’ with the Macquarie Telecom share price: fundie

A woman smiles widely while using an old fashioned hand set telephone with dial.A woman smiles widely while using an old fashioned hand set telephone with dial.

Investors have sold off shares of Macquarie Telecom Group Ltd (ASX: MAQ) in recent weeks, pushing prices 11% lower this past month of trade.

At the time of writing, the MAQ share price is also down 13% this year to date, fetching $63.37 apiece at the close on Friday.

Despite the downward pressure, market pundits still see value in the stock, sliding against the market’s view on the company.

TradingView Chart

Beaten down, but not beaten

When asked about resilient stocks on his radar recently, Gary Rollo from Montgomery Investment Management was straight to the point in naming Macquarie Telecom.

The data centre player has “got major clients like the cloud hyper-scalers as clients… growing their business pretty strongly and also the Aussie government,” he noted when speaking to Livewire’s Buy, Hold, Sell

“They’re basically digitalising more rapidly than the market probably expects.”

Rollo added the strength of Macquarie Telecom’s balance sheet and that he saw “great numbers in the second half” from the company.

In the group’s latest earnings results, revenue saw a 4% uptick to $149 million whereas pre-tax earnings came in 11% higher at $40.5 million.

From this amount, operating cash flows were reported at $37.6 million, a year-on-year gain of more than $10 million. Rollo added:

[With] Macquarie Telecom, you’re not going to go wrong and it’s got lots of value left on the table. We think it’s worth somewhere between $80 and a hundred bucks, even in a higher interest rate environment.

Macquarie Telecom bounced from a 3-month low of $56.37 on 26 May in a relief rally that extended to $64.40 per share.

Prices have levelled off but Rollo appears to be a buyer at these levels keeping a long term, fundamental framework in mind.

Despite the volatility this year, the Macquarie Telecom share price has clipped a 27% gain in the past 12 months.

The post Why ‘you’re not going to go wrong’ with the Macquarie Telecom share price: fundie appeared first on The Motley Fool Australia.

Should you invest $1,000 in Macquarie Telecom Group right now?

Before you consider Macquarie Telecom Group, 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 Macquarie Telecom Group 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

More reading

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 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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