Do you want a passive income boost? If you do, then the ASX dividend shares listed below could be the way to do it.

Here’s why these could be passive income shares to buy now:

Transurban Group (ASX: TCL)

The first ASX share that could provide investors with a passive income boost is Transurban.

Citi believes the toll road operator could be a great option in the current environment due to its positive exposure to inflation. It commented:

With concerns around inflation being more sticky and higher for longer, we believe investors are likely to remain attracted to companies providing protection to rising inflation. We see TCL as being particularly attractive given ~70% of toll revenue is linked to inflation, downside protection to traffic even if we enter a recessionary period (given exposure to urban roads), and inorganic upside from the current and future development pipeline.

As for dividends, the broker is forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $14.12, this will mean yields of 4.1% and 4.25%, respectively.

Citi has a buy rating and $16.00 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been tipped as a buy is Universal Store.

Goldman Sachs believes the growing youth fashion retailer could be a great option. This is due to the company’s exposure to younger consumers, which it expects to continue spending thanks to minimum wage increases and their lower exposure to rising interest rates. It explained:

We believe the young Australian consumer is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.

In respect to dividends, the broker is forecasting fully franked dividends of 27 cents in FY 2023 and 34 cents in FY 2024. Based on the latest Universal Store share price of $4.95, this equates to yields of 5.45% and 6.9%, respectively.

Goldman Sachs currently has a buy rating and $8.05 price target on its shares.

The post 2 growing ASX passive income shares to buy now: brokers appeared first on The Motley Fool Australia.

(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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Huge yields! These are the best ASX passive income shares to buy now: Morgans
• Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts
• Buy these 3 ASX retail shares: Morgans
• Experts name 2 high quality ASX 200 shares to buy for your retirement portfolio
• Dividends: Why analysts rate these ASX shares highly

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.

from The Motley Fool Australia https://ift.tt/inlHI0J

The global banking system is being tested this month. Could March 2023 be the start of another stock market crash?

We’ve already seen the collapse of Silicon Valley Bank (SVB), though it has reportedly been sold to First Citizens.

Credit Suisse is being taken over by UBS in what seems to be an emergency deal.

Investors have now turned their attention to the troubled German bank Deutsche Bank. The Deutsche Bank share price has dropped around 25% since 9 March 2023.

We’ve seen large declines in some of the biggest ASX bank shares recently. For example, the Commonwealth Bank of Australia (ASX: CBA) share price has fallen 13% since 14 February this year. The Westpac Banking Corp (ASX: WBC) share price is down 11% over the same time, and the ANZ Group Holdings Ltd (ASX: ANZ) share price has dropped around 13%.

How likely is a stock market crash?

In some ways, we could say that there already has been a sell-off. Since 9 March, the S&P/ASX 200 Index (ASX: XJO) has dropped 4.8%. I wouldn’t call that a crash, but it’s a decent fall in just a few weeks.

However, the rest of the global share market hasn’t declined like that. Banks are a sizeable presence in the global economy, but they have a bigger presence on the ASX than other markets. The S&P 500 Index (INDEXSP: .INX) is down less than 1% since 8 March 2023.

But, investors may remember the terrible impact the 2008 global financial crisis (GFC) had on the share market. In the northern hemisphere, banks collapsed, and there was a stock market crash across the global economy.

Another GFC or fallout from inflation?

ANZ CEO Shayne Elliott believes this period of instability is different to the GFC. The Australian Financial Review quoted him:

The GFC was fundamentally a crisis around the quality of assets and the loans that banks make, and that’s not what the risk is here. This is a different issue. This is really to do with the global war on inflation and how central banks are raising rates very quickly in order to combat that, and that has casualties.

I can almost guarantee regulators around the world are thinking of new things they need to put in place to protect depositors and the economy from change going forward. And so there will be a whole bunch of things that we need to prepare for.

He also suggests that there’s always a “casualty” in these events, though regulators and governments will try to limit the damage.

I think that governments will try to do everything they can to ensure that households and businesses aren’t hurt much, even if banks do run into trouble.

My view on ASX bank shares

In my opinion, the ASX bank shares aren’t in any real danger – I think they’re too well capitalised to collapse.

It would be problematic if there was a cascade of sizeable bank failures in the US or Europe. I’d say that would likely cause a bear market. But, I don’t think that’s the most likely outcome at this stage.

It’s only when lots of depositors yank their funds out of a bank that we’d see any more sizeable banks run into trouble, in my opinion. But, I think the COVID-19 pandemic period and recent weeks have shown that governments will probably do what’s needed to protect the safety of the whole economic system.

But, investor jitters can send share prices down rapidly, causing a temporary stock market crash.

If there were a large decline, I’d look at past crashes like the GFC and COVID-19 to give me confidence that, at some point, share prices would likely recover. I think it’s times of global economic distress that can present the best times for investors to buy shares.

The post Will the turmoil among global banks trigger a stock market crash? appeared first on The Motley Fool Australia.

(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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Banking crisis ‘clearly not over’: ANZ
• A director is buying up CBA shares. Should you?
• Best ASX 200 bank share to buy now: ANZ vs Westpac
• ASX 200 bank shares lift despite Deutsche Bank stock tumble
• How I’d aim for $250 in monthly passive income from ANZ shares

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 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/kc02Yzl

Are you wanting to buy some ASX growth shares but aren’t sure which ones to buy? Don’t worry, because analysts have recently tipped the two listed below as buys.

Here’s why these could be the growth shares to buy right now:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to buy could be Aristocrat Leisure. It is one of the world’s leading gaming technology companies with operations covering poker machines, mobile games, and real money gaming.

Morgans is very positive on the company’s long term growth potential. It commented:

We’re optimistic about ALL’s long-term growth potential, given its superior capitalisation and strong ability to invest in the development of its land-based and digital gaming businesses. Additionally, ALL has a high cash conversion rate and ROCE, despite running a capital-light model. Additionally, ALL has ample funding for investment in online RMG, even following the recent buyback extension.

It currently has an add rating and $43.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a buy is Temple & Webster. It is Australia’s leading pureplay online furniture and homewares retailer. It also has a smaller online business that is trying to challenge Bunnings.

While time will tell whether its new business will succeed, Goldman Sachs doesn’t appear to believe that needs to happen to make Temple & Webster shares a successful investment. This is due to its strong position in a retail category that is in the early stages of shifting online. It recently commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

Goldman has a buy rating and $6.50 price target on its shares.

The post Want big returns? Buy these ASX growth shares: analysts appeared first on The Motley Fool Australia.

(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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Leading brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy now
• Citi rates these 3 ASX 200 blue chip shares as buys
• Buy Pilbara Minerals and this exciting ASX growth share: analysts

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 Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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/tLGMUSX

ASX gold shares could be a place to find safety and even positive returns. Certainly, there is significant volatility in share markets worldwide at the moment, but perhaps gold can be the antidote.

The global banking sector continues to see volatility, with Deutsche Bank being the latest bank to see investor uncertainty.

Gold has been a store of wealth for thousands of years and has tracked inflation over time.

For some reason, the yellow metal has managed to build a reputation of being a hedge against share market and other asset declines.

Indeed, being able to benefit from something going up when other assets go down could be a very useful strategy, if it works.

However, ASX gold mining shares can have similar sorts of risks to those of other commodities. So, I’d want to choose gold assets that seem relatively trustworthy in the face of all this uncertainty, like the two potential options below.

Evolution Mining Ltd (ASX: EVN)

Evolution Mining is an ASX gold mining share that operates five wholly-owned mines: Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon and Ernest Henry in Queensland, and Red Lake in Ontario, Canada.

What investors may notice about that list is that all of the mines are located in dependable countries where there are high levels of trust in mining and taxation laws, as well as a strong belief in capitalism. In other words, I like the jurisdictions where Evolution Mining’s mines are located.

The business is expecting to significantly increase its gold production, with the company projecting a 25% increase between FY22 to FY24. In FY24, Evolution could produce 800,000 ounces of gold. In the first half of FY23, it made around US$330 million of operating mine cash flow.

It also has exposure to copper through its Ernest Henry operations.

In FY24, the ASX gold share is expected to generate earnings per share (EPS) of $2.95 and pay annual dividends of 9.5 cents per share. That means the current Evolution Mining share price is valued at under 12x FY24’s estimated earnings with a potential grossed-up dividend yield of 4.6%.

Global X Physical Gold ETF (ASX: GOLD)

If investors want to try to avoid exposure to mining risks, then I think I’d want to choose an exchange-traded fund (ETF) like this one – it’s backed by physical gold. Each physical bar is segregated, individually identified, and allocated.

The ETF comes with an annual management cost of 0.40%. The physical gold bullion is held in the vault(s) of the bank of JPMorgan Chase in London. This vault is audited twice a year, with the auditor’s reports made available for investors to inspect.

ETF’s unit price has risen nicely over the past decade, but it’s impossible to say what the value of the ETF will do in the future.

The post These are the ASX gold shares I’d buy amid the banking squeeze appeared first on The Motley Fool Australia.

(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

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• ASX 200 gold shares are defying today’s sell-off. Here’s why
• 5 things to watch on the ASX 200 on Thursday

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.

from The Motley Fool Australia https://ift.tt/Phs8VMu