If you’re looking for a passive income boost in 2023, then ASX dividend shares could be the answer.

But which shares should you buy? Two that have been recently rated as buys and tipped to provide attractive yields are listed below.

Here’s why experts say they could be worth owning:

Baby Bunting Group Ltd (ASX: BBN)

This leading baby products retailer could be an ASX dividend share to buy according to analysts at Morgans.

Although Baby Bunting is having a tough time in FY 2023, the broker remains positive and sees its share price weakness as a buying opportunity. So much so, its analysts have recently put an add rating and $3.60 price target on its shares. Morgans said:

With the shares nearly 30% lower than they were before the AGM, there has, in our view, been an overreaction to the update. BBN is still the largest specialist in a comparatively defensive retail segment. It still has compelling opportunities to grow its share of a growing market through store rollout, entry into New Zealand, range expansion and the launch of an online marketplace. It’s trading on 12x FY24 P/E. ADD.

As for dividends, the broker is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.70, this will mean yields of 5.2% and 5.9%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

The Healthco Healthcare and Wellness REIT could be another ASX dividend share to buy.

That’s the view of analysts at Goldman Sachs, which think very highly of the health and wellness focused real estate investment trust. In fact, the broker has put a coveted conviction buy rating on its shares with a price target of $2.05.

Goldman likes the company due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It explained:

[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.

In respect to dividends, Goldman expects 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 $1.70, this will mean yields of 4.4% for investors.

The post Buy these ASX dividend shares for a passive income boost in 2023 – experts appeared first on The Motley Fool Australia.

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More reading

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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 Baby Bunting Group. The Motley Fool Australia has recommended Baby Bunting 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted ASX share with short interest of 14.7%, which is up slightly week on week again. Short sellers appear to believe that the market is too optimistic on the travel industry recovery.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 13%. This betting technology company’s shares have been crushed this year and short sellers don’t appear to believe the pain is over.
• Perpetual Limited (ASX: PPT) now has 12.7% of its shares held short, which is up week on week again. Short sellers have been increasing their positions after it was pressured into completing the acquisition of fellow fund manager Pendal Group Ltd (ASX: PDL). This effectively rules out a takeover of its own.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 11.4%. Short sellers may be targeting this network as a service operator’s shares due to the sky high multiples they trade on.
• Sayona Mining Ltd (ASX: SYA) has 10.1% of its shares held short, which is up slightly week on week. This may be due to fears that lithium prices could have peaked.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease to 8.1%. There may be concerns over Zip’s high debt and quest to become profitable.
• Core Lithium Ltd (ASX: CXO) has jumped into the top ten with short interest of 8%. Concerns over production delays and falling lithium prices have been weighing on this lithium developer’s shares.
• Lake Resources N.L. (ASX: LKE) has short interest of 8%, which is down week on week. This lithium developer is allegedly having issues producing battery grade lithium at scale from its Kachi operation.
• Breville Group Ltd (ASX: BRG) has seen its short interest edge higher to 7.9%. This may have been driven by concerns that spending on household goods could suffer in 2023.
• Nanosonics Ltd (ASX: NAN) has short interest of 6.8%, which is down sharply week on week. Investors have concerns over this medical device company’s sales model change in the key United States market.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 5 ASX lithium stocks to buy in 2023: brokers
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Is Core Lithium the next Pilbara Minerals?
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• 3 ASX All Ordinaries shares up by more than 60% in 2022

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 Betmakers Technology Group, Megaport, Nanosonics, and Zip Co. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, and Megaport. 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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Now is a good time to buy these S&P/ASX 200 Index (ASX: XJO) shares, or so the companies’ directors seem to believe. Three ASX 200 companies have revealed five notable insider buys this month.

Insider buying is often seen as a sign those in the know expect big things from a share. Thus, it can put a stock on the map for other investors.

So, which ASX 200 shares have been snapped up by their directors in December? Let’s look at six trades made by five directors across three companies.

5 ASX 200 directors snapping up their company shares

Powering higher

An interesting year for AGL Energy Limited (ASX: AGL) culminated with four new directors in November, two of whom bought into the company this month.

Kerry Schott bought 12,000 shares in the ASX 200 utilities company for around $8.16 apiece on 9 December – forking out a total of $97,918.80.

That same day, fellow AGL board newbie Christine Holman bought 13,000 shares for $8.09 each – totalling $105,170.

Both buys have proven to be good ones so far. The AGL share price has taken off in 2022, as the chart below shows.

Building market confidence

Sadly, this year hasn’t been nearly as good to shares in ASX 200 property and infrastructure group Lendlease Group (ASX: LLC). Its stock has been walloped this year.

But the tumble might have created a buying opportunity for its CEO and managing director Tony Lombardo.

He bought 10,000 shares in the company on 1 December, paying around $7.69 apiece – a total of $76,890.

He backed that up again just six days later, forking out another $40,755 for 5,500 more shares, each priced at $7.41.

ASX 200 directors take a bite of Collins Food shares

Another embattled ASX 200 share that’s been the subject of insider buying this month is Collins Food Ltd (ASX: CKF). The company operates various fast-food franchises around Australia and the world.

The first insider buys going down at Collins Food this month was made by director Kevin Perkins. The insider bought 20,000 shares in the ASX 200 company on 2 December, paying $160,141.32 for the parcel, or around $8.01 per share.

The final insider purchase I’ll mention was conducted on 21 December.

Then, Bella Kaye – spouse of chair Robert Kaye – forked out $50,181.42 for 7,000 more shares in the company. That represents a purchase price of around $7.17 apiece.

The post 5 ASX 200 directors who have been buying up their company shares this month appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Retail Food Group, Starpharma, and TPG shares are rising today
• Buy Westpac and this ASX 200 dividend share: brokers
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• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today

Motley Fool contributor Brooke Cooper 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 Collins Foods. The Motley Fool Australia has recommended Collins Foods. 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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No doubt many Aussies are feeling the financial pinch this time of the year. Fortunately, now is a good a time as any to begin building a second income by investing in ASX dividend shares.

And one needn’t have a substantial amount of cash tucked away to do so. I would invest for my future even if I could only spare $5 a day.

Here’s how I would go about it.

How I would choose ASX shares for my portfolio

Of course, there’s a bit more to investing than that. I would need to identify the ASX shares I felt capable of providing consistently strong returns.

Personally, I would look for companies with decent cash flows, manageable debt levels, and competitive advantages. Above all, however, I would look to invest in a diverse set of companies I understand and believe in.

One such share could, in my personal opinion, be supermarket operator Woolworths Group Ltd (ASX: WOW) – and Goldman Sachs agrees.

Though, even then the most considered investment isn’t guaranteed to offer share price appreciation or dividends in the future.

I would also consider my $5 a day investment the baseline and never waver from it. Ideally, I would grow my daily or monthly contribution over the year to grow my second income stream faster.

How much income could a daily $5 investment create?

A fiver a day invested in ASX dividend shares might not sound like much, but it can add up over the long term. Particularly if we consider the benefits of compounding. Let’s do the math.

Saving $5 a day will see an investor with around $152 set aside each month, or $1,825 a year.

But I wouldn’t use that extra cash as spending money. I would reinvest my dividends for years before I begin to take them as passive income.

The S&P/ASX 200 Index (ASX: XJO) returned an average of around 9.3%, including dividends, over the last 10 years.

If I managed to realise such a return and compounded my dividends by reinvesting them in ASX shares, my portfolio would be worth $37,401 in 12 years’ time.

At that point, it would be capable of paying $155 a month in passive income if I achieved a 5% dividend yield.

However, by investing $5 a day consistently for 25 years, my portfolio could grow to $161,540 and be capable of offering approximately $8,000 of annual passive income – all for $5 a day.

The post My $5 a day plan to build a second income with ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• I’d aim for a $1 million by buying just a handful of ASX shares
• How I’d target passive income by investing $75 a month in ASX dividend shares
• I’m listening to Warren Buffett and buying cheap ASX shares
• Will the BHP dividend in 2023 be bigger than last year?
• 5 ASX lithium stocks to buy in 2023: brokers

Motley Fool contributor Brooke Cooper 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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