If you’re looking to boost your passive income with some dividend shares, then you might want to look at the two listed below.

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

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share to look at is the Healthco Healthcare and Wellness REIT.

Goldman Sachs is a fan of this health and wellness focused real estate investment trust. This is due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It commented:

[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.

Goldman has a conviction buy rating and $2.05 price target on its shares.

In addition, the broker is forecasting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.69, this will mean yields of 4.4% for income investors.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a buy is Rural Funds.

It is an agricultural focused real estate investment trust (REIT) that owns a portfolio of assets across a number of agricultural industries. These include orchards, vineyards, water entitlements, cropping, and cattle farms.

Bell Potter is positive on the company and believes its shares are trading at a very inviting level. It recently commented:

Discounts of this magnitude to adjusted NVA have only been seen in the period after its compliance listing (2014-15) and following the issue of the Bonitas short report (in Aug-Sep’19). To this end the current discount to adjusted NAV reflects what historically would be considered an attractive entry point and we upgrade our rating from Hold to Buy.

The broker currently has a buy rating and $2.75 price target on Rural Funds shares.

As for dividends, it is forecasting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.46, this represents yields of 4.75% and 5.15%, respectively.

The post Buy these ASX dividend shares for a passive income boost: analysts appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy next week
• Near a 52-week low, this enticing ASX dividend share could be bottoming out
• Boost your passive income with these ASX dividend shares: analysts
• 2 ASX dividend shares that have raised their payouts by 20% in 5 years
• 40% sale! 2 cheap ASX shares to buy for a better 2023: fundie

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 Rural Funds Group. 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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Exchange-traded funds (ETFs) on the ASX have become increasingly popular in recent years, as they offer a simple way for investors to diversify their portfolios in a single transaction. However, with so many ETFs available, it can be difficult to know if you’re paying too much.

As the late and great investor, Benjamin Graham said, “A great company is not a great investment if you pay too much for the stock.” While an ETF isn’t just one company — rather a basket of companies — the message still applies.

What our resident expert suggests

The most obvious cost when it comes to investing in ETFs is the management expense ratio, also known as the management fee. This fee is charged by the issuer of the product to remunerate themselves for conducting the activities involved with managing the funds in the ETF.

Luckily, Motley Fool Australia chief investment officer Scott Phillips discussed this during a recent Sharesies webinar. Speaking with Sharesies’ Australia manager, Brendan Doggett, Phillips explained how the management fee is typically determined, stating:

Depending on what index it is, in which countries, and how difficult or easy it is for the fund manager to buy those shares — it can [vary]. I think the lowest one I’ve seen is 0.03%. I’m pretty sure that’s the Vanguard S&P 500 or total market index. That’s like 30 cents for every $1,000… really, really small.

On the other hand, you will see some are more than 1% and that might be, I don’t know, the Botswana clean energy and oil index, or something, right. So the harder it is to get that market, the more you have to pay, the less liquidity, the fewer people are investing in it the more you have to pay. 

The management fee is part and parcel of investing in ASX ETFs. However, there are ways to make sure you’re not paying more than necessary. Phillips provided one way to investigate the costs associated with an ETF, suggesting:

The best thing to do is if you find an index you like — you want to track the ASX 200 or 300, for example — then find the ETF providers that do that index and compare those providers if you want to get the cheapest price you can for the investment strategy you want to follow.

More ways to assess the costs of an ASX ETF

While the management fee is typically the most important expense for an ETF, there are other factors to consider. These additional traits of an ETF aren’t necessarily classed as costs, but they can impact your returns.

• Trading price versus net asset value
• Bid-ask spread — usually dependent on the level of liquidity for the ETF
• Size of the ETF — larger ETF can mean lower fees than a smaller ETF

Because an ETF is simply a collection of shares in other companies, the unit price should approximately reflect the total sum of securities allotted to each share in the ETF. This value is referred to as the net asset value.

However, sometimes the demand for the ETF can be greater than the underlying assets. While it shouldn’t necessarily make or break an investment, it’s worth looking at whether the ASX ETF is trading at a discount or premium to its net assets.

The post How do you know if you’re paying too much for an ASX ETF? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here’s a dirt-cheap ASX 200 share with a 7% dividend yield
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell)
• I’m buying JB Hi-Fi stock now while it’s under $44

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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With the returns on cash nearing 4% and heightened economic uncertainty, investors are raising the bar on what they require when investing in ASX 200 shares.

Gone are the days when a 2% or 3% dividend yield was considered adequate. A decent risk-free return from cash parked at the bank means the criteria to invest elsewhere is more stringent. Especially when we could be hurling toward a recession.

The share market sell-off has produced plenty of high-yielders across the S&P/ASX 200 Index (ASX: XJO). Though, as earnings potentially take a hit from tightened budgets, some of these companies might be forced to cut their dividends to a more sustainable level. There’s a good chance ASX-listed retailers will be some of the hardest hit in a recessionary environment.

The 15% year-to-date fall in the Super Retail Group Ltd (ASX: SUL) share price would suggest investors are already anticipating poorer performance. Looking at the company’s recent margins, the concern could be warranted.

A concern for the Super Retail share price?

Trading at a price-to-earnings (P/E) ratio a touch more than 10 times, Super Retail Group looks dirt-cheap compared to the Australian market average of 14.5 times. But the company’s share price isn’t trading at a discount for no reason.

At the annual general meeting, Super Retail management highlighted the segment results of Supercheap Auto, Rebel, BCF, and Macpac. Notably, the company experienced reductions in its gross margins across all segments compared to the previous year, as follows:

• Supercheap Auto: 60 basis point decline in gross margin
• Rebel: 80 basis point decline in gross margin
• BCF: 38% decline in profit before tax
• Macpac: undisclosed decline in gross margin

For the most part, the deteriorating margins were labelled a consequence of increased supply chain costs and a normalisation in promotional activity.

It appears investors are worried that profits could fall further, and this concern might be justified. Between 2016 and 2019, Super Retail Group’s profit margin floated between 2.6% and 5.1%. In FY22, the company’s margin remained above historical levels at 6.8%.

If the company were to return to a margin of say 3.85% (on the same revenue), for example, Super Retail Group would be trading on a P/E of around 17 times based on the current market capitalisation.

Is the dividend yield maintainable?

The all-important question for investors that are assessing whether Super Retail shares are worth buying for the income is: can it stay at these levels?

In FY22, the company coughed up 70 cents per share in dividends. As depicted above, this is around 40% more than its payouts pre-pandemic. There is a chance that dividends could fall from here as profits normalise.

However, as recently reported, Morgans believes there is potential for a special dividend in the future. The broker pointed out that Super Retail Group has accumulated over $250 million worth of franking credits.

The post Here’s a dirt-cheap ASX 200 share with a 7% dividend yield appeared first on The Motley Fool Australia.

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More reading

• Morgans has put these ASX shares on its Christmas wishlist
• Why did ASX 200 retail shares lead the market to fresh 25-week highs today?

Motley Fool contributor Mitchell Lawler 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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail 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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The S&P/ASX 200 Index (ASX: XJO) has shaken off the malaise that has been gripping it this week and posted a strong gain at this point of Wednesday’s trading session. At the time of writing, the ASX 200 has gained a very healthy 1.35%, which lifts the index to just under 7,120 points.

Hooray. Let’s now dig a little deeper into these market moves by checking out the shares currently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Evolution Mining Ltd (ASX: EVN)

First up today is ASX 200 gold miner Evolution. So far this Wednesday, a decent 13 million Evolution shares have found a new ASX home. This looks like a consequence of the stellar day Evolution shares are enjoying today.

The gold miner, like its peers, is lifting dramatically after a strong rise in the price of gold overnight. Evolution shares are up a pleasing 7.75% so far today to $3.06 a share.

Liontown Resources Ltd (ASX: LTR)

Next up this session, we have ASX 200 lithium share Liontown Resources. A hefty 14.4 million Liontown shares have traded hands as it currently stands. With no fresh news out of Liontown so far, this volume could be in response to the significant volatility we have seen in Liontown shares on the markets.

Liontown initially started out with a bang this morning, rising as high as $1.40 a share (up almost 2.5%). But investors seem to have gotten cold feet as the day has progressed, with Liontown now down to $1.32 a share, a loss of 2.22% for the session.

Pilbara Minerals Ltd (ASX: PLS)

Third and finally today, we have another ASX 200 lithium share in Pilbara Minerals. This Wednesday has seen a notable 25.38 million Pilbara shares bought and sold on the share market. A very similar situation to Liontown seems to be at work here.

Pilbara also opened strongly this morning, shooting up to a high of $4.02 soon after market open (up more than 3%). But again, investors have had a change of heart as the day has progressed, and Pilbara shares are now down to $3.83 each, a loss of 0.91%.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 gold shares having such a stellar run today?
• Why European Lithium, Evolution, Medadvisor, and REA shares are charging higher
• Pilbara Minerals share price leaps on positive lithium price update
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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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