Day: March 7, 2023

2 excellent ETFs for ASX investors to buy now

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

Are you wanting to add some diversification to your portfolio? If you are, then you might want to look at exchange traded funds (ETFs).

The reason for this is that ETFs give investors easy access to a large and diverse number of different shares through just a single investment.

With that in mind, listed below are two ETFs that are popular with investors. Here’s what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard highlights that this ETF gives investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among the many high quality companies that investors will be owning a part of are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Procter & Gamble, and Visa.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF that could be a top option for investors is the Vanguard US Total Market Shares Index ETF. Especially if you’d rather just invest in the United States and not globally.

That’s because this ETF allows you to invest into a massive 4,000 US listed shares in one fell swoop.

Vanguard highlights that this allows investors to participate in the long-term growth potential of US listed companies.

As well as tech giants such as Amazon, Apple, and Microsoft, you’ll be buying a slice of iconic US companies such as Boeing, JP Morgan, Starbucks, Tesla, and Walmart.

The post 2 excellent ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

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*Returns as of March 1 2023

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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 Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. 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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Buy NAB and this ASX passive income share: analysts

Woman holding some cash

Woman holding some cash

If you’re looking for dividend shares to buy this week, then the two listed below could be worth checking out.

Both have been named as buys by analysts and tipped to provide attractive yields. Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that has been named as a buy for income investors is HomeCo Daily Needs.

HomeCo Daily Needs is a property investment company with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans is a fan and has an add rating and $1.50 price target on HomeCo Daily Needs’ shares. Following its first-half results, the broker commented:

HDN offers investors exposure to a portfolio of daily needs assets with its large development pipeline to provide both near-term and future growth opportunities. FY23 guidance was reiterated; metrics stable across the $4.7bn portfolio; and cap rate expansion was offset by property income growth. Looking ahead, the focus also remains on recycling assets and the development pipeline which has been boosted to +$600m from +$500m.

As for dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.28, this will mean dividend yields of 6.5% and 6.6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs is a fan of this big four bank and sees it as an ASX dividend share to buy.

Its analysts currently have a buy rating and $35.42 price target on its shares. The broker was impressed with NAB’s first-quarter performance and believes it is well-placed to continue this positive form. It explained:

We reiterate our Buy on NAB given: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and we believe NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s 1Q23 operating trends seem consistent with management commentary at its FY22 result (here), particularly with regard to NIMs, which we view as a positive given the commentary CBA made at its 1H23 result (here), which suggested NIMs have peaked. Reiterate Buy.

In respect to dividends, Goldman Sachs is expecting NAB to pay fully franked dividends of $1.73 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current NAB share price of $29.71, this means yields of 5.8% and 5.9%.

The post Buy NAB and this ASX passive income share: analysts appeared first on The Motley Fool Australia.

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*Returns as of March 1 2023

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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 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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Why did the Woodside CEO just sell off over $200,000 worth of shares?

a man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.a man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.

When a company executive sells off shares in their own business, it can often raise some eyebrows with investors. Those chosen few who manage the finances and operations of an ASX 200 company are well paid for the privilege.

So it understandably causes some consternation when those people reduce the skin they have in the game they are running.

That is especially so when it comes to a company CEO.

This is the situation that is confronting shareholders of the ASX 200 energy giant Woodside Energy Group Ltd (ASX: WDS) this week. Yesterday, just before market open, Woodside released an ASX announcement detailing some share sales that were initiated by its CEO Meg O’Neill.

Woodside CEO offloads shares, should investors be worried?

According to the release, O’Neill sold 6,761 shares of Woodside on 1 March for a sum of $244,774.34. That works out at an average selling price of $36.20 per share.

However, this wasn’t an ordinary share sale. O’Neill, alongside other Woodside executives, is entitled to receive what are known as ‘restricted shares’ under the company’s remuneration policy.

Restricted shares are awarded to executives based on corporate performance criteria. They are ordinary shares that are issued on a deferred basis, typically for three or five years.

So O’Neill clearly received these shares and now she is able to sell them. Which she has.

But should investors be worried?

Well, that’s up to every individual shareholder. Some might like to see management figures like O’Neill accumulate every share they can, giving them the highest level of shareholder alignment when it comes to financial interests.

But good wealth management principles don’t suspend for company executives, even CEOs. Most investors would agree that putting all of your eggs in one basket is a poor way to run a share portfolio.

Diversification is important, even for CEOs. So perhaps other shareholders won’t mind that O’Neill invests in other assets outside Woodside shares. Perhaps she needs the money for a new house, or a holiday.

Even so, it’s not like O’Neill doesn’t have skin in the Woodside game. After this sale, O’Neill still owns (directly and indirectly) 155,727 Woodside shares, with a value of just over $5.85 million. She also owns another 165,147 restricted shares, and 106,488 performance rights.

So perhaps considering this, the sale of just over $244,000 worth of Woodside shares might not seem so significant. Investors don’t seem to think so anyway, considering they have sent the Woodside share price up more than 5% in the past week alone:

The post Why did the Woodside CEO just sell off over $200,000 worth of shares? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woodside Petroleum Ltd right now?

Before you consider Woodside Petroleum Ltd, 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 Woodside Petroleum Ltd wasn’t one of them.

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See The 5 Stocks
*Returns as of March 1 2023

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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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Qantas share price takes off to new multi-year high on Tuesday

A kid wearing a pilot helmet holds a paper plane up to the sky.A kid wearing a pilot helmet holds a paper plane up to the sky.

The Qantas Airways Limited (ASX: QAN) share price hit a new 52-week high today of $6.71. This represents its highest price since the COVID-19 crash.

Shares in the airline have done well for shareholders over the last year, rising by 45%. In the past six months, they have gained around 25%.

The Qantas share price has been steadily climbing since the initial reaction to the airline’s FY23 half-year result. From 23 February 2023 to now, it has gone up by almost 10%.

Investors may have harked back to that result today, as well as taking in news the airline is planning to significantly increase its workforce.

Strong travel demand continues

The company recently announced that in the first six months of the year, it made underlying net profit before tax of $1.43 billion and statutory net profit after tax (NPAT) of $1 billion. This was a big swing compared to the losses it had been seeing during COVID. The recovery has certainly been helpful for the Qantas share price.

Thanks to the strong financials, net debt declined to $2.4 billion and the business announced a share buyback of up to $500 million.

Qantas pointed to a “material improvement in operational performance and customer satisfaction”.

Qantas CEO Alan Joyce said:

When we restructured the business at the start of COVID, it was to make sure we could bounce back quickly when travel returned. That’s effectively what’s happened, but it’s the strength of the demand that has driven such a strong result.

Fares have risen because of higher fuel costs, but also because supply chain and resourcing issues meant capacity hasn’t kept up with demand. Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares.

In terms of overheads, we expect the costs we’re carrying from the extra operational buffer will start unwinding from this half and into next financial year.

Investors may not have liked the sound of “downward pressure” on fares, considering how much profit Qantas is currently making from those high fares.

However, the airline said that travel demand is expected to remain strong throughout FY23 and into FY24. Domestic and international capacity is expected to increase throughout the second half of FY23, though this could come with moderating fares. However, fares are expected to remain “significantly above” FY19 levels.

That does sound promising for profitability and the Qantas share price.

Growth plans

Last week, the company announced that it expects to create more than 8,500 new highly skilled jobs, including new pilots and engineers.

Over the next decade, Qantas is expecting to grow its number of people from 23,500 currently to 32,000 by 2033.

While hiring more people doesn’t necessarily influence the Qantas share price, it could suggest the business is expecting to become much bigger and, by extension, could be making more profit.

Qantas share price snapshot

Over the past month, the Qantas share price is up around 0.5%.

The post Qantas share price takes off to new multi-year high on Tuesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas Airways Limited right now?

Before you consider Qantas Airways 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 Qantas Airways 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 March 1 2023

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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 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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