ASX exchange-traded funds (ETFs) offer a one-step process to diversify your stock holdings. 

Most ASX ETFs hold a sizeable basket of different shares. Or in some cases bonds or even cryptos.

ETFs have also gained in popularity among income investors seeking a simpler way to access dividends without having to research dozens of companies themselves.

While the majority of listed companies only pay out dividends once or twice per year, a few ASX ETFs make their distribution payments every month. A handy feature for income investors keen to access the dividends in a timely fashion.

This ASX ETF offers monthly dividend payments

Among the funds paying monthly distributions is Betashares Australian Dividend Harvester Fund (ASX: HVST).

HVST aims to offer investors mostly franked, passive income that beats the net income yield of the wider ASX.

The ETF provides instant diversity, holding 40 to 60 different shares. The portfolio is rebalanced every three months with the goal of providing the highest gross yield outcome.

Its top holdings by sector are in the financials sector (30%), the materials sector (25%) and the healthcare sector (10%).

As at 31 January, its two biggest shareholdings were BHP Group Ltd (ASX: BHP) at 13.2% and Commonwealth Bank of Australia (ASX: CBA) at 10%.

The ASX ETF’s 12-month distribution yield works out to 7.2%. The fund’s gross distribution yield over the 12 months was 10.1%, at an average franking level of 93%.  

HVST’s most recent monthly dividend of 7.1 cents per share will be paid out next Thursday, 16 March, with a 78% franking level.

Just as with any share trading on the ASX, the ETF’s returns will also be impacted by its share price when an investor opts to sell.

As you can see in the chart above, the HVST share price is up 4% in 2023 and down 3% over the past 12 months.

The post Guess which ASX ETF pays dividends every month? appeared first on The Motley Fool Australia.

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• Top ASX ETFs to buy in March 2023

Motley Fool contributor Bernd Struben 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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Wesfarmers Ltd (ASX: WES) is one of the leading businesses for potential passive income in my opinion. But, is the right time to buy?

I think it’s important to recognise that there can be a difference between how good a business is and whether it’s a good time to buy its shares.

Over the past five years, BHP Group Ltd (ASX: BHP) has been one of the best and biggest dividend payers in the world. But, the BHP share price has been very volatile. There can be attractive times to invest in the company, and times when it’d be wise to stay on the sidelines.

While I don’t think Wesfarmers shares are as cyclical as BHP’s, I think it’s just as worthwhile to question their price.

Interestingly, the Wesfarmers share price is slightly up over the past 12 months, despite higher interest rates, though it is still down more than 20% since August 2021. The Wesfarmers share price has risen by more than 10% in 2023 to date.

Is now a good time to buy Wesfarmers shares for passive income?

I’d always like to buy my target investments at an even cheaper price. If I had a crystal ball, it’d be able to tell me whether the negativity surrounding higher interest rates is going to hurt Wesfarmers’ share price or the company’s profit in the next 12 months.

But we don’t know what’s going to happen next, so we can only judge whether the current investment is good or not.

According to Commsec, the Wesfarmers share price is valued at 23x FY23’s estimated earnings based on an earnings per share (EPS) prediction of $2.16. By FY25, EPS is expected to rise to $2.49.

The dividend is expected to come in at $1.87 per share in FY23, $1.94 per share in FY24, and $2.19 per share in FY25.

That looks like attractive passive dividend income growth in 2023 and beyond. The current projected grossed-up dividend yield for FY23 is 5.3%. That looks like a solid yield to me and comfortably more than what investors might be able to get from a term deposit.

I think it’s a quality business

I think that Bunnings, Kmart, and the Wesfarmers chemicals, energy and fertiliser (WesCEF) business are three of the best businesses in Australia. The fact that they continue to invest and grow is a very positive sign in my opinion. Ongoing population growth in Australia is a useful tailwind for Wesfarmers’ earnings. Strong commodity prices are helpful for WesCEF. I think the future looks bright for the company.

It’d have been more rewarding to buy Wesfarmers shares at a price of under $43 last year. However, I think Wesfarmers will be able to keep growing profit for years to come. But there could be a time that the Wesfarmers share price goes down to a more attractive level during 2023.

Wesfarmers share price snapshot

Over the past month, Wesfarmers shares have risen by 2%.

The post Is right now the time to buy Wesfarmers shares for passive income? appeared first on The Motley Fool Australia.

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More reading

• How can I hope to retire rich when the share market is falling?
• Experts name 2 ASX 200 dividend shares for a passive income boost
• I’d aim for $1 million, thanks to just a few ASX shares
• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• ASX investors: How to earn $533 each month in passive income

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 positions in and has recommended Wesfarmers. 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 had a rather weird, yet overall positive, day of trading at this point on Thursday. 

After initially plunging soon after market open this morning, the ASX 200 has staged a recovery over the session, and is currently up by 0.2% at the time of writing, putting the Index at just over 7,320 points.

Let’s hope this optimism holds. But whilst we wait and see, let’s now take stock of the shares that are currently topping the ASX 200’s share trading volume charts right now, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Thursday

Telstra Group Ltd (ASX: TLS)

First up this Thursday is the ASX 200 telco Telstra. So far this session, a decent 14.88 million Telstra shares have been phoned in for trading. We haven’t had any fresh news from Telstra for more than a week. So this volume is the probable consequence of the company’s share price movements today.

So far this session, Telstra has had a bumpy but positive movement. The telco’s shares are presently up a healthy 0.73% at $4.15 each but have bounced between $4.13 and $4.17 over the trading day. It’s probably this bouncing around which is eliciting the share volumes on display here.

South32 Ltd (ASX: S32)

Next up is the ASX 200 mining share South32, with a chunky 15.1 million shares having been exchanged on the share market at this point. This could be an after-effect of South32 going ex-dividend this morning.

As we dug into earlier, the resources giant has cut off eligibility for its upcoming dividend payment today, with the South32 share price falling by a notable 1.3% as a result. It could be this drop that is responsible for South32’s presence here today.

Pilbara Minerals Ltd (ASX: PLS)

Finally today, we have the ASX 200 lithium leader Pilbara Minerals. This Thursday has seen a sizeable 18.26 million Pilbara shares change hands as it currently stands. There haven’t been any developments out of this company itself this Thursday.

But that hasn’t held back investors from giving the Pilbara share price, alongside most other ASX lithium shares, a 4.02% boost so far to $4.26 a share. It’s this gain that has probably resulted in Pilbara’s position on the top of this list today.

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

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• How can I hope to retire rich when the share market is falling?
• Is the party well and truly over for ASX 200 coal shares?
• Here’s why the South32 share price is being hammered today
• Here’s how I’d invest $20,000 in ASX 200 shares for a supercharged second income
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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 Telstra 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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The Gascoyne Resources Ltd (ASX: GCY) share price has returned from its suspension and crashed deep into the red.

At one stage today, the ASX gold miner’s shares were down as much as 49% to 9.9 cents.

The Gascoyne Resources share price has recovered a touch since then but remains down 43% at 11.2 cents.

Why is this ASX gold share crashing?

Investors have been selling down this ASX gold share on Thursday after it completed a highly dilutive capital raising.

According to the release, the company has raised gross proceeds of $17.8 million following the settlement of an institutional placement and accelerated institutional entitlement offer. These funds were raised at 10 cents per new share, which represents a 48.7% discount to its last close price.

The company will now look to raise a further $8.5 million from retail investors at the same price.

Why is it raising funds?

The company intends to use the proceeds of the capital raising to support its “exciting” Never Never gold deposit.

Gascoyne Resources’ Managing Director and CEO, Simon Lawson, commented:

The strong support for the equity raising reinforces the value of Gascoyne’s portfolio and validates the steps taken by management late last year to preserve shareholder value through placing the Dalgaranga gold mine on care and maintenance.

We believe we have a very exciting future as Gascoyne is fully funded through to mid-2024 and is able to spend considerable time and money on delineating and expanding the exciting high-grade Never Never gold deposit.

The ASX gold share also notes that Never Never is expected to be the cornerstone of a new, higher-grade mine plan with a restart decision at Dalgaranga targeted for the second half of 2024.

The post Guess which ASX gold share just crashed 49% appeared first on The Motley Fool Australia.

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• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
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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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