Day: March 14, 2023

Buy Macquarie and this ASX 200 passive income share: analysts

A man holding a cup of coffee puts his thumb up and smiles while at laptop.

A man holding a cup of coffee puts his thumb up and smiles while at laptop.

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

Both are in the banking sector but operate in very different ways. Here’s what you need to know about these ASX dividend shares:

Macquarie Group Ltd (ASX: MQG)

The first ASX 200 dividend share that could be in the buy zone is this investment bank.

Morgans is a fan and has an add rating and $214.51 price target on the company’s shares.

The broker likes Macquarie due to its strong performance in FY 2023 and its structural growth opportunities. It commented:

MQG is a quality franchise, exposed to structural growth areas, and the company has performed exceptionally well in a more difficult FY23 environment. MQG has also consistently delivered attractive returns over time (~15% average ROE) and with >10% share price upside to our price target (A$214), we maintain our ADD recommendation.

In respect to dividends, the broker is expecting partially franked dividends of $7.41 per share in FY 2023 and $7.13 per share in FY 2024. Based on the current Macquarie share price of $176.53, this will mean yields of 4.2% and 4%, respectively.

National Australia Bank Ltd (ASX: NAB)

Goldman Sachs is a fan of this big four bank and sees it as an ASX 200 dividend share to buy.

Its analysts currently have a buy rating and $35.42 price target on its shares.

The broker is positive on NAB due partly to its exposure to commercial lending, which it expects to outperform in the current environment. The broker commented:

We are Buy rated on NAB given: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and 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

As for dividends, Goldman 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 $28.10, this means yields of 6.15% and 6.25%.

The post Buy Macquarie and this ASX 200 passive income share: analysts appeared first on The Motley Fool Australia.

Where should you invest $1,000 right now? 3 dividend stocks to help beat inflation

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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 positions in and has recommended Macquarie 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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These are the best ASX 200 mining shares to buy in March: Morgans

Two miners standing together with a smile on their faces.

Two miners standing together with a smile on their faces.

There are a lot of options for investors in the mining sector. But with so much choice, it can be hard to decide which ones to buy over others.

Don’t worry, because the team at Morgans has been busy picking out the best ASX shares to buy this month. Two ASX mining shares that the broker has on its list are named below.

Here’s why they could be top mining options for investors:

Mineral Resources Ltd (ASX: MIN)

This mining and mining services company is on Morgans’ list again in March. The broker continues to believe that Mineral Resources is the perfect option for investors looking for exposure to China’s reopening from the pandemic. The broker explained:

MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN’s diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN’s lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H’CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Morgans has an add rating and $102.00 price target on Mineral Resources’ shares. The broker is also forecasting a double digit dividend yield next year.

South32 Ltd (ASX: S32)

The other ASX 200 mining share that makes the list this month is South32. Morgans is bullish on the diversified mining giant due to its belief that it is well-placed for the future thanks to its portfolio transformation. It commented:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

Morgans currently has an add rating and $5.60 price target on South32’s shares. The broker expects an almost 5% dividend yield this year.

The post These are the best ASX 200 mining shares to buy in March: Morgans appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

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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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3 excellent ETFs for ASX investors to buy for the long term

Man looking at an ETF diagram.

Man looking at an ETF diagram.

There are plenty of exchange traded funds (ETFs) for investors to choose from on the Australian share market. But which ETFs could be top options right now?

Listed below are three excellent ETFs from very different sides of the market that could be worth considering. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at is the BetaShares Global Cybersecurity ETF. This fund provides investors with the opportunity to invest in the rapidly growing cybersecurity sector. This means you’ll be buying companies such as Accenture, Cisco, Cloudflare, Crowdstrike, and Palo Alto Networks. As we saw countless times last year, cyber attacks are on the rise and demand for cybersecurity services is growing. This bodes well for the companies included in this ETF.

BetaShares Global Energy Companies ETF (ASX: FUEL)

If you’re keen to gain exposure to the booming energy market, then the BetaShares Global Energy Companies ETF could be the way to do it. This ETF allows investors to invest in many of the largest energy producers in the world through a single investment. Through this ETF you’ll be owning a slice of the likes of BP, Chevron, ConocoPhillips, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A final ETF for investors to look at buying is the BetaShares NASDAQ 100 ETF. This incredibly popular ETF gives investors access to some of the highest quality companies in the world. Among the companies you’ll be investing in are Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Netflix, and Tesla. With the NASDAQ still down 11% over the last 12 months, then it could be a good time to make a long term investment.

The post 3 excellent ETFs for ASX investors to buy for the long term appeared first on The Motley Fool Australia.

“Cornerstone” ETFs for building long term wealth…

Scott Phillips says plenty of people who hear the ‘ETFs are great’ story don’t realise one important thing. Not all ETFs are the same — or as good as you may think.

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*Returns as of March 1 2023

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 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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Here’s why this top broker is tipping 27% upside for ANZ shares

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

ANZ Group Holdings Ltd (ASX: ANZ) shares have taken a bit of a beating recently.

Concerns over the Silicon Valley Bank collapse have sent many investors to the exits, driving the bank’s shares deep into the red.

The good news is that if you have confidence in the Australian banking sector, then this may have created a mouth-watering opportunity for investors.

ANZ shares could have huge upside

According to a recent note out of Citi, its analysts believe that ANZ is the best bank to buy right now.

Citi was pleased with ANZ’s first-quarter update and believes its earnings are currently ahead of expectations.

As a result, the broker has named it as its top pick in the sector with a buy rating and $29.25 price target on its shares. Based on the current share price, this implies potential upside of 27% over the next 12 month for ANZ shares.

Citi commented:

ANZ’s 1Q23 disclosures exhibited strong trends in both lending growth and asset quality. No earnings disclosure was provided, but we think that after backing out RWA movements from capital, it comfortably implies above market earnings, although subject to movements in deductions/reserves.

Citi also highlights that ANZ’s asset quality remains strong despite the current environment. It adds:

Despite fears of deteriorating asset quality, impaired assets declined again in the quarter, although this could be the bottom as seasonally mortgages and personal credit arrears tick higher in the March quarter.

The broker concludes:

Institutional lending momentum continued and accelerated in the Dec qtr, which we expect was driven by more available liquidity and pricing vs debt markets. ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

Don’t forget the dividends

But there’s more than just upside on offer with ANZ shares. The broker is also expecting some big dividend yields in the near term.

Citi is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. This would mean yields of 7.2% and 7.6%, respectively, for investors.

The post Here’s why this top broker is tipping 27% upside for ANZ shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australia And New Zealand Banking Group right now?

Before you consider Australia And New Zealand Banking Group, 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 Australia And New Zealand Banking Group 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 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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