Day: June 22, 2022

Here are 2 ASX dividend shares with 4%+ yields

Australian dollar notes rolled into bundles.

Australian dollar notes rolled into bundles.

Looking to boost your income with some dividend shares? Then you might want to look at the two listed below.

Both of these dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

The first dividend share to look at is leading self-storage operator, National Storage. Through its portfolio of over 200 centres, the company provides tailored storage solutions to around 100,000 residential and commercial customers.

And while this sounds like a large network, management still sees plenty of room to grow in the future. It notes that the self storage industry remains highly fragmented, giving it plenty of high-quality acquisition opportunities. This bodes well for its income and distribution growth over the long term.

Ord Minnett is a fan of National Storage. The broker currently has a buy rating and $2.60 price target on its shares.

As for dividends, its analysts are forecasting dividends per share of 10 cents in FY 2022 and FY 2023. Based on the current National Storage share price, this equates to yields of 4.5%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share for income investors to look at is this agricultural focused real estate investment trust (REIT). It owns a high quality portfolio of assets across a range of agricultural industries. These include almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms.

Rural Funds’ properties are leased on long term contracts to major players in the industry such as Australia’s largest meat processor, JBS Australia and wine giant Treasury Wine Estates Ltd (ASX: TWE). Together with its built in periodic rental increases, this provides Rural Funds with great visibility on its future earnings and distributions.

Speaking of which, in FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. After which, it is planning to do the same in FY 2023, lifting it to 12.2 cents per share. Based on the current Rural Funds share price, this represents yields of 4.5% and 4.65%, respectively.

The post Here are 2 ASX dividend shares with 4%+ yields 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

See The 5 Stocks
*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 positions in and has recommended RURALFUNDS STAPLED. 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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Goldman names 2 ASX healthcare shares to buy

private health insurance diagram.

private health insurance diagram.

If you’re looking for exposure to the healthcare sector, then the two shares listed below could be top options.

Here’s why analysts at Goldman Sachs believe they are well-placed for growth in the future:

Integral Diagnostics Ltd (ASX: IDX)

The first healthcare share to look at is diagnostic imaging services provider, Integral Diagnostics.

Goldman highlights that the recovery in imaging volumes from the COVID-19 pandemic is underway. Combined with easing cost pressures in FY 2023, the broker expects this to allow Integral Diagnostics to deliver strong earnings growth. The broker explained:

Looking forward, we expect the cost pressures to taper in FY23E (+7%), albeit with upside if management achieves their target of low-single-digit growth which, on our numbers, would result in favorable EBITDA growth of +23% in FY23E.

Goldman Sachs has a buy rating and $4.20 price target.

ResMed Inc (ASX: RMD)

Another ASX healthcare share that Goldman rates highly is ResMed.

Its analysts believe that ResMed is well-placed for growth thanks to a huge backlog of new patients waiting to be diagnosed. And while it acknowledges that there is a risk that these patients try alternative therapies, it doesn’t expect any shifts to substitutes to be material. The broker commented:

There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).

Goldman currently has a buy rating and $34.40 price target on ResMed’s shares.

The post Goldman names 2 ASX healthcare shares to buy 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

See The 5 Stocks
*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 positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Cochlear Ltd. and Integral Diagnostics 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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Analysts name 2 top ASX 200 shares to buy today

An ASX shares broker analysing a chart tracking the A2 Milk share price

An ASX shares broker analysing a chart tracking the A2 Milk share price

Are you interested in adding some ASX 200 shares to your portfolio following the market crash? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about these ASX 200 shares:

Cochlear Limited (ASX: COH)

The first ASX 200 share for investors to look at is Cochlear. It is one of the world’s leading hearing solutions companies with a portfolio of industry-leading implantable hearing devices.

Analysts at Morgans are very positive on the company, particularly given its improving earnings profile. The broker explained commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

The broker currently has an add rating and $244.50 price target on Cochlear’s shares.

Webjet Limited (ASX: WEB)

Another ASX 200 share for investors to look at is online travel agent, Webjet.

The team at Goldman Sachs is very positive on the company. The broker believes Webjet is well-placed for growth in the coming years as the travel market recovers from the pandemic. It explained:

We forecast WEB to report +11.9% CAGR growth in EBITDA over FY19-24e taking a through COVID view, driven by 1/ a fundamentally stronger Bedbanks business driven by cost outs and stronger market share growth, 2/ Opportunities for market share growth in the B2C business and 3/ A strong balance sheet with a Net cash balance of c. A$108mn as at end of FY22.

Goldman currently has a buy rating and $6.90 price target on Webjet’s shares.

The post Analysts name 2 top ASX 200 shares to buy today 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

See The 5 Stocks
*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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Webjet 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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What’s the outlook for ASX 200 bank dividends?

A man in a suit looks surprised as he looks through binoculars.A man in a suit looks surprised as he looks through binoculars.

The ASX 200 big four bank shares are known to be great dividend payers. They’re a favourite among retiree investors because they typically dish out greater dividend yields than most ASX shares.

Wait, wait. Yes, it’s true that the ASX mining shares and ASX energy shares may pay stupendous dividends this year, and possibly next year, due to the current commodities boom. But that’s a cyclical thing.

When it comes to regular, reliable, and strong dividends over the long term you’d be … um, Foolish to ignore the big banks.

What dividend yields are the ASX bank shares paying now?

As my Foolish colleague Sebastian reported yesterday, the dividend yields of the big four ASX bank shares currently range from about 4.2% to 6.6%.

At the top is Australia and New Zealand Banking Group Ltd (ASX: ANZ). ANZ pays a dividend yield of about 6.6% at current share price levels.

Next is Westpac Banking Corp (ASX: WBC) which pays about 6.2% in dividends.

Then there’s the business banking specialist National Australia Bank Ltd (ASX: NAB). Its dividend yield sits at about 5.2% at current share price levels.

Last but not least is Commonwealth Bank of Australia (ASX: CBA) at about 4.2%.

All of the big four ASX bank shares pay fully franked dividends. That means you get the maximum tax break possible when you do your tax return.

Retiree investors also love fully-franked dividends because they get paid in cash if their taxable income is beneath the taxable threshold. Bonus!

What about Macquarie dividends?

Should we look at Macquarie dividends too? Seems relevant given the company is often referred to as the ‘fifth bank’ amongst the big four?

According to Seb’s calculations, Macquarie pays 3.8% with 40% franking at the moment. That’s pretty good for a banking share that trades at almost twice the price of Australia’s largest banking business, CBA.

Remember, the dividend yield is calculated as a percentage of the share price. This week Macquarie is trading in the early $160s. (Fun fact: It was trading above $200 in January before the market correction began.)

So, what’s the outlook for ASX 200 bank dividends?

Well, to pay a strong dividend, any ASX business has to make a strong profit. That’s how dividend payouts are funded. And some experts believe there are revenue and cost headwinds for the banks.

According to a report in the Australian Financial Review (AFR), analysts have attributed the recent sell-off in ASX bank shares to “fears that sharp interest rate increases will cause an economic slowdown that flows through to the property market and hurts the banks’ customers”.

Furthermore, this would “potentially bring an end to years of bumper growth in lenders’ mortgage portfolios, fuelled by record low interest rates and a booming housing market”.

What do the brokers think?

The article quotes fund manager T. Rowe Price, which is “significantly underweight” on the Australian banks.

The manager “believes their earnings could weaken sharply in the next six to 12 months as slowing growth sparks an increase in non-performing loans”.

T. Rowe went even further in its gloomy outlook, saying it “would not be surprised if CBA and NAB suspended their most recent buybacks in light of developing macroeconomic conditions”.

Equity analyst Nick Vidale said:

As for the outlook for dividends, we think a good outcome for the banks in the coming years would be if they were able to hold dividends flat.

However, Plato Investment Management says ASX bank shares will remain good income stocks in the short term.

Plato’s managing director Don Hamson said:

We don’t expect dividend cuts in the near future … However, we are less bullish on the potential for further bank buybacks given increased market uncertainty, and the fact that all the big four bought back capital either on or off-market in the past year.

Concerns about rising loss provisions are way overdone. Similarly, we think speculation about a potential recession is way too premature.

Australia has very high employment rates and people with a job usually pay their mortgage.

Given ASX bank shares have been sold off, Plato reckons their dividend yields look even more attractive.

Broker UBS says the major Australian banks are in a good position to handle rising interest rates.

This is largely because the big banks are carrying $15 billion in collective provisions.

Head of Australian bank research at UBS John Storey, said:

There would need to be a substantial blow-up in credit provisions to derail the Australian banks earnings story.

The post What’s the outlook for ASX 200 bank dividends? 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

See The 5 Stocks
*Returns as of January 12th 2022

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Motley Fool contributor Bronwyn Allen has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Group Limited, and Westpac Banking Corporation. 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 Macquarie Group Limited and Westpac Banking Corporation. 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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