All Ordinaries Index (ASX: XAO), or All Ords, shares saw plenty of volatility last year and I think 2023 could be another year of big movements.

The All Ords is an index of approximately 500 of the biggest businesses listed on the ASX.

Typically, the index’s performance is heavily influenced by the returns of the biggest companies, because they make up such a large percentage of the All Ords.

I’m talking about names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Other All Ords ASX shares that have sizeable positions in the index include Woodside Energy Group Ltd (ASX: WDS), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

Here are my thoughts on some of the sectors.

ASX tech shares

While none of the tech names are among the biggest holdings, collectively the way they were punished in 2022 did have an effect on the All Ordinaries. Just look at how far the Xero Limited (ASX: XRO) share price dropped last year.

Higher interest rates may have been the key culprit for hurting the valuations last year. But, I think these heavily hit ASX tech share names could look like opportunities to investors when interest rates finally stop going up, if not before.

Some of the businesses that saw the biggest declines in 2022 could have the best chance of outperformance during the rebound. Names with attractive long-term revenue growth outlooks include Xero, Megaport Ltd (ASX: MP1), Frontier Digital Ventures Ltd (ASX: FDV) and Life360 Inc (ASX: 360).

Resource shares

On Friday I outlined my thoughts in a separate article regarding S&P/ASX 200 Index (ASX: XJO) mining shares.

I suggested that it’s likely to be a good year for many ASX 200 mining shares with China coming out of lockdowns. This could be good news for All Ords ASX shares iron ore miners, copper miners and other commodities if strong Chinese buying returns.

Unless Russian energy production is reintegrated back into the global system in 2023, I can’t see ASX coal shares or ASX energy shares having a bad year either.

The global demand for lithium still seems promising for the coming years, so I think it could be a good year of cash flow for ASX lithium shares.

ASX bank shares

The banking sector is going through rapid change with the Reserve Bank of Australia (RBA) interest rate now much higher than it was a year ago.

All Ords ASX bank shares are increasing interest rates faster for borrowers than savers, so it’s increasing their profitability. I think this has been a good boost for share prices of names like Westpac already.

I think bigger profits and dividends are likely in 2023. I’m not sure if the share prices can rise much more from here. It may depend on when banks start reporting an increase in arrears amid the higher interest rates – a large increase in arrears could worry investors. A small rise could be positive and allay fears.

All Ords ASX retail shares

Some areas of retail are seen as cyclical. People need to keep buying food, but new TVs and new cars may be seen as less essential.

However, the share price reaction is another part of the equation. A number of ASX retail shares have fallen significantly. I don’t believe that retail conditions are going to seem tough forever.

So, I believe names like Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY), Adairs Ltd (ASX: ADH) and Universal Store Holdings Ltd (ASX: UNI) could be longer-term opportunities.

By the end of 2023, the outlook could be more positive for retailers, compared to today.

Foolish takeaway

Overall, I think it’s going to be a positive year for All Ords ASX shares, particularly when including the dividend income.

I wouldn’t be surprised to see tech as the best-performing sector this year after the difficult year last year.

My investment strategy will continue to be to find ASX shares I think can perform over the long term.

The post My top predictions for ASX All Ords shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy these top ASX growth shares: experts
• How I’d invest $40k in ASX shares and aim for $1 million
• One oversold ASX 300 dividend share (with a 6% yield) to buy now
• 3 ASX All Ords shares getting hammered on disappointing results
• Watch these 2 ASX 200 growth shares take off this year: expert

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 positions in and has recommended Adairs, CSL, Frontier Digital Ventures, Life360, Megaport, Temple & Webster Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has positions in and has recommended Adairs, Telstra Group, Wesfarmers, and Xero. The Motley Fool Australia has recommended Adore Beauty Group, Frontier Digital Ventures, Macquarie Group, Megaport, Temple & Webster Group, and Westpac Banking. 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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If you’re searching for new passive income investments, then read on!

Listed below are two ASX 200 dividend shares that have been named as buys by brokers.

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

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

The first ASX 200 dividend share that could be a buy is ANZ Bank. It is of course one of the big four banks.

The team at Citi is positive on the bank and is forecasting big dividend yields from its shares in the coming years.

The broker expects this to be supported by net interest margin (NIM) improvements driven by rising interest rates.

Citi is forecasting fully franked dividends of $1.66 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current ANZ share price of $24.75, this will mean yields of 6.7% and 7.1%, respectively.

The broker also sees plenty of upside potential with its buy rating and $29.25 price target.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX dividend share for investors to consider is Domino’s.

Due to its shares being sold off last year due to tough trading conditions and inflationary pressures, they now offer a more attractive than normal yield. And while this yield is certainly not as great as what is on offer with ANZ’s shares, that could change in the future if all goes to plan.

Management is aiming to double its store network this decade. If it can continue to deliver on its same store sales target and improve its margins, this could lead to some incredible earnings and dividend growth over the same period.

It is partly for this reason that Morgans believes investors should be buying its shares. In fact, the broker believes that “now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.”

Morgans has an add rating and an $90.00 price target on the company’s shares.

As for dividends, the broker is forecasting partially franked dividends per share of $1.55 in FY 2023 and $1.89 in FY 2024. Based on the current Domino’s share price of $73.25, this will mean yields of 2.1% and 2.6%, respectively.

The post 2 excellent ASX passive income shares to buy next week: analysts appeared first on The Motley Fool Australia.

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More reading

• ANZ’s cheat sheet: How can ASX investors make the most of ‘ample opportunity’ in 2023?
• Dividends, dividends, dividends! 3 ASX 200 bank shares forecasting yields over 8%
• What could we expect for ASX 200 bank shares this earnings season?
• How to prepare your portfolio for the ‘old normal’: Scott Phillips
• Should I buy ANZ shares before earnings season?

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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