Day: 18 September 2022

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:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

According to a note out Citi, its analysts have retained their buy rating and $29.00 price target on this banking giant’s shares. Citi is feeling positive about the banking sector thanks to rising rates and the unprecedented levels of excess liquidity. Its analysts are expecting this to underpin strong returns and drive a meaningful increase in net interest margins. The ANZ share price ended the week at $23.55.

Charter Hall Group (ASX: CHC)

A note out of Goldman Sachs reveals that its analysts have initiated coverage on this property company with a buy rating and $16.50 price target. The broker made the move largely on valuation grounds. It highlights that Charter Hall trades at 11x EBITDA compared to its five-year average of 15x EBITDA. The broker also notes that its shares are trading at a sizeable discount to both the ASX 200 and ASX 200 REITs index and sees scope for that to change. The Charter Hall share price was fetching $12.32 at Friday’s close.

Mineral Resources Limited (ASX: MIN)

Analysts at UBS have retained their buy rating and $83.00 price target on this mining and mining services company’s shares. According to the note, UBS has been busy looking at what could happen if Mineral Resources decided to demerge its lithium operations and list them on Wall Street. The broker suspects that the business could command a 6x FY 2024 EBITDA multiple, which it estimates would give it a valuation of A$17 billion. This is notably more than the company’s entire market capitalisation of A$13 billion, which includes more than just its lithium operations. The Mineral Resources share price ended the week at $66.39.

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

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More reading

• Top broker values Mineral Resources rumoured lithium spin-off at $17 billion
• Brokers name 3 ASX shares to buy today
• Why has the ANZ share price been outperforming the ASX 200 this week?
• Here are the top 10 ASX 200 shares today
• Which ASX 200 bank share will win the great tech battle?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett is one of the best investors of all time. Since 1965, Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), the masterfully crafted conglomerate he helped build, has returned over 20% annually, creating fortunes for its share-owners along the way.

Berkshire’s public stock portfolio is thus closely watched by investors seeking to build lasting wealth in the stock market. Investing alongside great investors can be an excellent strategy for those seeking outsize returns. Here are Buffett’s largest stock holdings.

Apple: 41.6% 

Buffett once called Apple Inc. (NASDAQ: AAPL) “probably the best business I know in the world.” That’s high praise from the master investor, who has become one of the richest people in the world by carefully identifying elite businesses with powerful competitive advantages.

It’s perhaps unsurprising, then, that Apple is Berkshire’s largest position by far. Buffett’s investment company owns more than 915 million shares of Apple that are currently valued at a staggering $142 billion. 

Buffett values Apple’s beloved brand and sticky ecosystem. He has come to understand the iPhone’s central place in the lives of more than 1 billion people. Buffett also knows that once someone buys an iPhone, they tend to buy other Apple products and services and remain a loyal customer.

Moreover, Buffett appreciates the tech titan’s tremendous cash flow production. Apple generated more than $90 billion in free cash flow during just the first nine months of its fiscal 2022. That whopping sum allows Apple to reward its investors with a steadily rising dividend income stream and a massive stock buyback program. These share purchases have helped to boost Berkshire’s ownership percentage of Apple’s earnings over time, which Buffett applauds. 

Bank of America: 10.2% 

Bank of America Corporation (NYSE: BAC) is Berkshire’s second-largest holding and another Buffett favorite. BofA, as the company is often called, accounts for over 10% of Berkshire’s portfolio, a stake valued at roughly $35 billion. 

Buffett thinks highly of CEO Brian Moynihan, who has helped to strengthen BofA’s operations following its near collapse during the Great Recession and financial crisis of 2007-2009. Since taking the helm on Jan. 1, 2010, Moynihan has prioritized risk management and a return to traditional banking fundamentals.

Although pandemic-related disruptions and a difficult macroeconomic backdrop have been challenging for BofA and other financial institutions, Buffett views the bank as a core, long-term holding. And over longer periods of time, top-tier banks tend to grow and profit along with the expansion of the overall economy.

To maximize its odds of success, BofA is cutting expenses in its traditional branch operations and investing aggressively in digital banking technology. This has positioned BofA to benefit from the boom in mobile banking and app-based transactions — and gain market share from its less tech-savvy rivals.

With Bank of America’s stock price down about 22% in 2022 due mostly to short-term recessionary fears, you currently have the opportunity to scoop up shares of this best-of-breed bank at a hefty discount.

Chevron: 7.8% 

The oil sector has recently become the apple of Buffett’s eye. It’s easy to see why. Energy stocks tend to perform well during inflationary times. And Chevron Corporation (NYSE: CVX) is particularly well positioned to profit from higher oil and gas prices.

The war in Ukraine is driving many countries in Europe and around the world to seek out new sources of dependable energy supplies. Chevron is working to meet this vital global need for energy by ramping up its production of oil and liquified natural gas. 

The energy titan’s profits, in turn, are soaring. Chevron’s revenue surged 83% year over year to $68.8 billion in the second quarter, while its adjusted earnings rocketed 245% to $11.4 billion. Chevron is committed to passing on much of its profits to shareholders via a hefty dividend — its shares currently yield 3.5% — and stock buybacks.

These factors have no doubt contributed to Buffett’s decision to make Chevron Berkshire’s third-largest public stock holding. Berkshire owns more than 163 million shares of the oil and gas giant, a stake valued at nearly $27 billion. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 60% of Warren Buffett’s portfolio is invested in these 3 stocks appeared first on The Motley Fool Australia.

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More reading

• 3 things the world’s smartest investors do in every bear market
• Should you buy stocks now or wait? Here’s Warren Buffett’s advice
• 5 reasons I wouldn’t touch Shiba Inu with a 10-foot pole
• Amazon, Microsoft, and Alphabet have partnered with this US cloud stock. Is it a buy?
• 2 unstoppable Warren Buffett stocks that can turn sitting cash into growing wealth

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Joe Tenebruso 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 Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Are you looking to boost your retirement 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:

Coles Group Ltd (ASX: COL)

The first ASX dividend share for retirees to consider is supermarket giant Coles.

It could be a top option due to its defensive qualities, positive exposure to inflation, and solid growth outlook. The latter is being underpinned by the company’s bold refreshed strategy, which is focusing on cutting costs through automation and efficiencies. This is expected to boost Coles’ profitability in the coming years.

Citi is positive on Coles and has a buy rating and $20.10 price target on its shares.

In respect to dividends, the broker is forecasting fully franked dividends of 74 cents per share in FY 2023 and 79 cents per share in FY 2024. Based on the latest Coles share price of $16.60, this will mean yields of 4.45% and 4.75%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share for retirees to consider is Telstra.

This telco giant could be a good option now that its outlook is arguably the most positive it has been in over a decade.

For example, last month the company released its FY 2022 results and revealed a return to growth and a surprise dividend increase. But it won’t stop there, with Telstra’s T25 strategy now in place, the company is targeting high-teens underlying earnings per share compound annual growth through to FY 2025.

The team at Morgans are positive on the telco giant. Its analysts currently have an add rating and $4.60 price target on the company’s shares.

Morgans is also forecasting another 16.5 cents per share dividend in FY 2023. Based on the current Telstra share price of $3.81, this equates to a 4.3% dividend yield.

The post Experts name 2 ASX dividend shares for your retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Are these ASX blue-chip shares losing their defensive benefits?
• Why is the Coles share price tumbling today?
• Why the Telstra share price could actually be a growth opportunity: fundie
• 5 things to watch on the ASX 200 on Wednesday
• Supermarket shakeup: Do Coles shares offer better dividends than Woolworths?

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 COLESGROUP DEF SET and Telstra Corporation 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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