Day: February 21, 2023

Expect big yields from these ASX 200 dividend shares in 2023 and 2024: brokers

A woman looks excited as she holds Australian dollars in the air.

A woman looks excited as she holds Australian dollars in the air.

Are you looking for dividend shares to buy this week?

If you are, you may want to check out the two listed below that have been tipped to provide big yields in 2023 and 2024.

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

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that has been tipped as a buy is insurance giant QBE.

Morgans is positive on the company and was very impressed with its recent full year results release. The good news is that the broker believes it is well-placed to build on this in FY 2023 and FY 2024. It commented:

QBE’s FY22 result NPAT (US$770m) was an 18% beat versus consensus, with the 2H22 dividend (A30cps) 11% above consensus. Overall, in our view, this was a very strong FY22 performance versus market expectations.

Heading into FY23, the key tailwinds are premium rate increases and higher investment income which remain supportive of earnings growth, as highlighted by QBE expecting a mid-teens ROE versus 10.5% in FY22.

The broker expects this strong form to underpin dividends per share of 83 cents in FY 2023 and 94 cents in FY 2024. Based on the latest QBE share price of $15.00, this equates to yields of 5.5% and 6.3%, respectively.

Morgans has an add rating and $16.96 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been tipped as a buy is Westpac.

It is one of the big four players in the Australian market and the owner of the Westpac, Bank SA, Bank of Melbourne, Rams, and St George brands.

Goldman Sachs is very positive on the bank and believes it is well-placed for earnings and dividend growth thanks to rising interest rates and its cost cutting plans. In respect to the latter, it said:

Despite WBC recently revising its FY24E cost target to A$8.6 bn (from A$8.0 bn), the bank’s performance on cost management remains strong in this inflationary environment with a 9% step down in underlying costs expected over the next two years.

The broker expects this to lead to fully franked dividends per share of 147 cents in FY 2023 and 156 cents in FY 2024. Based on the current Westpac share price of $22.84, this will mean yields of 6.4% and 6.9%, respectively.

Goldman Sachs has a conviction buy rating and $27.74 price target on the bank’s shares.

The post Expect big yields from these ASX 200 dividend shares in 2023 and 2024: brokers appeared first on The Motley Fool Australia.

Looking to buy dividend shares to help fight inflation?

If you’re looking to buy dividend shares to help fight inflation then you’ll need to get your hands on this… Our FREE report revealing 3 stocks not only boasting inflation-fighting dividends…

They also have strong potential for massive long-term returns…

See the 3 stocks
*Returns as of February 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ERXfMOx

These ASX tech shares are buys with 30%+ upside: brokers

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

Are you wanting to add some ASX tech shares to your portfolio before the sector rebounds fully?

If you are, then you may want to look at the two listed below that have been tipped as buys with 30%+ upside by brokers.

Here’s what they are saying about these ASX tech shares:

NextDC Ltd (ASX: NXT)

The first ASX tech share that brokers rate as a buy is NextDC.

It is involved in the development and operation of independent data centres in Australia. NextDC has a focus on providing scalable, on-demand services to support outsourced data centre infrastructure and cloud connectivity for enterprises of all sizes.

Morgans is positive on the data centre operator and believes it is well-placed for growth thanks to the structural shift to the cloud and its new developments. It commented:

NXT should deliver another good set of results in FY23 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT’s new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

Morgans has an add rating and $13.30 price target on NextDC’s shares. This compares to the latest NextDC share price of $10.11.

Readytech Holdings Ltd (ASX: RDY)

Another ASX tech share that has been named as a buy is this leading provider of mission-critical software-as-a-service (SaaS) solutions.

ReadyTech provides these solutions to defensive end-markets such as education, employment services, workforce management, government, and justice sectors. This bodes well in the current environment where some businesses are cutting back on spending.

It is for this reason and its attractive valuation that Goldman Sachs is very positive on the company. It commented:

RDY remains a tech value play within our coverage universe, trading at a >50% discount to peers when accounting for its robust growth outlook. Government software has been a pocket of strength and resilience within TMT (~3/4 of RDY’s earnings) and we are positive on RDY’s ability to deliver mid-teens organic growth at an expanding profit margin through the cycle.

Goldman has put a buy rating and $4.45 price target on its shares. This compares to the current ReadyTech share price of $3.59.

The post These ASX tech shares are buys with 30%+ upside: brokers appeared first on The Motley Fool Australia.

Renowned futurist claims this could be… “The last invention that humanity will ever need to make”?

Tech billionaire Mark Cuban believes the world’s first trillionaires are going to come from it…

And just like the internet and smartphones before it, this technology is set to transform the world as we know it. It’s already changing the way you work, how you shop… and it’s even helping to save lives — Perhaps that’s why experts predict it could grow to a market defying US$17 trillion dollar opportunity?

If you’re wondering what could be the engine room of the next bull market… You’ll need to see this…

Learn more about our AI Boom report
*Returns as of February 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ReadyTech. The Motley Fool Australia has recommended ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Rrm12Gz

Buy these ETFs for passive income and growth

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

The good thing about exchange traded funds (ETFs) is that they offer investors ways to invest in groups of shares that fit their investment objectives.

For example, the two ETFs listed below provide investors with access to two very different groups of shares. One could be suitable for income investors, whereas the other may suit investors looking for growth.

Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

Investors that are looking for growth options might want to consider the BetaShares Global Cybersecurity ETF.

This ETF gives investors access to the leading players in the global cybersecurity sector. This includes high quality, growing companies such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

As you saw with the Optus and Medibank Private Ltd (ASX: MPL) cyberattacks last year, cybersecurity is becoming incredibly important for businesses and consumers. With sensitive information being accessed by hackers, both companies are facing major reputational damage and potential penalties and compensation.

And with cyberattacks expected to increase in the future, demand for cybersecurity services is forecast to grow materially over the coming years. This bodes well for this ETF and its holdings.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you’re looking for income options, the Vanguard Australian Shares High Yield ETF could be a top option.

As you might have guessed from its name, this ETF provides investors with exposure to ASX-listed shares that have higher than average forecast dividends. This is a diverse group of shares, with Vanguard ensuring that you don’t get lumped with just miners or banks.

Among the shares included in the fund are Rio Tinto Ltd (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC). The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.6%.

The post Buy these ETFs for passive income and growth appeared first on The Motley Fool Australia.

Scott Phillips’ ETF picks for building long term wealth…

If you’re an investor looking to harness the sheer compounding power of ETFs, then you’ll need to check out this latest research from 25-year investing veteran Scott Phillips.

He’s painstakingly sorted through hundreds of options and uncovered the small handful he thinks are balanced and diversified. ETFs he thinks investors could aim to hold for years, and potentially build outstanding long term wealth.

Click here to get all the details
*Returns as of February 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 BetaShares Global Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/EUGkoLa

Why did the Arafura share price charge 10% higher on Tuesday?

A miner reacts to a positive company report mobile phone representing rising iron ore priceA miner reacts to a positive company report mobile phone representing rising iron ore price

It ended up being a pretty dreary day for ASX shares and the All Ordinaries Index (ASX: XAO) this Tuesday. By the end of trading, the All Ords had slipped by 0.1% down to just under 7,550 points. But it was a different story altogether when it came to the Arafura Rare Earths Ltd (ASX: ARU) share price.

This All Ords rare earths share had an absolutely cracking day today. Arafura closed at 60 cents each yesterday and opened at 62 cents this morning. But by the end of the session, the company was commanding a share price of 66 cents each, a pleasing 9.09% lift.

So what on earth went on today that prompted this dramatic rise in Arafura’s value?

Why was the Arafura share price on fire today?

Well, unfortunately, it’s not entirely clear. There hasn’t been any major news or announcements out of Arafura this week so far.

However, we have seen some similar, albeit not quite as enthusiastic moves, amongst some of Arafura’s nearest and dearest. Its larger cousin Lynas Rare Earths Ltd (ASX: LYC) also had a good day, rising by 1.2% to $8.43 a share.

And we also saw some big moves in the lithium space.

Leading lithium stock Pilbara Minerals ended up lifting by 4.52% to $4.39 a share. Sayona Mining Ltd (ASX: SYA) was up 4.88% to 21.5 cents a share, while Liontown Resources Limited (ASX: LTR) was up close to 4%.

So it looks like investors were just caught up in a wave of goodwill towards future-facing ASX shares in the lithium and rare earths space today. That is the best explanation we have for why the Arafura Rare Earths share price had such a cracking Tuesday.

But this only continues the absolutely stellar year this company has had so far in 2023. Year to date, Arafura is now up an impressive 47% or so, smashing the returns of the broader market:

Earlier this month, my Fool colleague Brooke looked at some of the reasons investors have been buying into Arafura of late, so make sure to check that out.

No doubt investors will be hoping that this run for the Arafura share price continues.

The post Why did the Arafura share price charge 10% higher on Tuesday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Arafura Resources Limited right now?

Before you consider Arafura Resources Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Arafura Resources Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of February 1 2023

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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.

from The Motley Fool Australia https://ift.tt/79R35ez