One of the best ways to grow your wealth is to make long-term investments, as this allows you to benefit from the magical power of compounding.

One easy way to invest your hard-earned money in this way is with exchange traded funds (ETFs). That’s because ETFs provide investors with access to a large number of shares through a single investment.

This can help diversify your portfolio and lower the risk of you making a large loss on a particular investment.

But which ETFs should you look at for the long term?

Listed below are three high quality ETFs that could be worth considering. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF that could be a top buy and hold option is the BetaShares Global Cybersecurity ETF. This fund provides investors with the opportunity to invest in the cybersecurity sector. This means you’ll be buying companies such as Accenture, Cisco, Cloudflare, Crowdstrike, and Palo Alto Networks. Due to the growing threat of cyberattacks globally, these companies appear well-placed to benefit from increasing demand for their services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to buy and hold could be the BetaShares NASDAQ 100 ETF. This ETF allows investors to buy many of the highest quality companies in the world all in one place. That’s because the BetaShares NASDAQ 100 ETF is home to the 100 largest non-financial shares on the famous NASDAQ exchange. This includes the likes of Amazon, Apple, Google parent Alphabet, Meta, Microsoft, Netflix, and Tesla.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Finally, if you’re aspiring to be like Warren Buffett when investing, then you may want to look at the VanEck Vectors Morningstar Wide Moat ETF. That’s because this Warren Buffett-inspired ETF gives investors access to a group of companies that have sustainable competitive advantages or moats (hence its name). Moats are something the Oracle of Omaha looks for when choosing investments. And given his long-term track record, this investment strategy clearly works. This could make this ETF a great buy and hold candidate.

The post 3 high quality ETFs for ASX investors to buy and hold for decades appeared first on The Motley Fool Australia.

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More reading

• If I could only buy one ASX share today, this would be it
• 12 ASX exchange-traded funds (ETFs) smashing new 52-week highs today
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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 Australia has recommended VanEck Morningstar Wide Moat 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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If you’re looking for some ASX dividend shares to boost your passive income, then you may want to look at the two named below.

Here’s why analysts rate these ASX dividend shares highly:

Rural Funds Group (ASX: RFF)

Bell Potter believes that Rural Funds could be an ASX dividend share to buy right now.

The broker feels that the agricultural property company’s shares are cheap as chips and is expecting some very attractive dividend yields in the coming years. It commented:

RFF is down ~39% from its Jan’22 peak a material underperformance relative to the XPJ, which is down ~21% over the same time frame. The underperformance has come despite double digit YOY gains in agricultural land values in CY22. In effect the current 31% discount to market NAV is implying a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87.

As for dividends, the broker is expecting dividends per share of 11.7 cents in FY 2023 and 12.2 cents in FY 2024. Based on the current Rural Funds share price of $1.87, this will mean yields of 6.25% and 6.5%, respectively.

Bell Potter has a buy rating and $2.65 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32.

Goldman Sachs is bullish on the diversified miner and is expecting some huge dividend yields in the near term. It explained:

We upgrade S32 to Buy (from Neutral) on attractive valuation: Trading at ~0.95xNAV (A$4.6/sh) and on an implied TSR of ~29%, and an attractive NTM EV/EBITDA multiple of ~2.1x vs. the sector average of 4.5x. We assume the share buyback continues (at ~US$250mn p.a) and S32 pays out 50% of earnings (40% ordinary, 10% special dividend component) with the FY23 full year result. On our estimates, S32 is on a supportive dividend yield of c. 5% in FY23, increasing to 14% in FY24.

As mentioned above, Goldman Sachs is expecting a 5% dividend yield in FY 2023 and 14% in FY 2024.

The broker also sees plenty of upside for the South32 share price with its buy rating and $4.80 price target. The miner’s shares were last trading at $4.06.

The post Don’t miss out on these high yield ASX dividend shares: analysts appeared first on The Motley Fool Australia.

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More reading

• Looking to buy an ASX 200 mining stock? Here are 3 reasons to consider South32 shares
• 2 ASX 300 shares I’d buy for long-term dividend income
• Brokers expect big gains and huge dividends from these ASX 200 mining shares
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Looking for regular passive income? Here are 3 ASX dividend shares that pay quarterly

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 Rural Funds 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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Ah, the great ASX debate: Coles Group Ltd (ASX: COL) shares versus Woolworths Group Ltd (ASX: WOW) shares.

Supermarket giants Coles and Woolworths are two of the most similar companies on the ASX. Both consumer staples stocks have been competing in the same market for customers and investors for decades.

Which is the better investment? That depends on who’s being asked. Some investors prefer Woolworths’ clear domination of the Australian grocery market. Others might like the cheaper Coles share price (on a price-to-earnings (P/E) basis) and the higher dividend yield.

But Coles may have an ace up its sleeve in 2023 that could help settle the debate.

ASX broker rates Coles shares as a buy today

As we covered earlier this week, ASX broker Citi recently came out with a highly bullish outlook on Coles. The broker gave the supermarket chain a buy rating, together with a 12-month share price target of $20.20.

The primary reason Citi sees so much potential for Coles is the company’s new automated distribution centre (ADC) in Redbank, Queensland. Citi reportedly toured the new facility and reckons Coles is “moving in the right direction”, with ADCs having “the potential to provide a cost advantage over competitors”.

According to Coles:

The first ADC of its kind in Australia, it will revolutionise the way we get the products customers want, where and when they need them… The ADC will support less manual handling, more flexible rosters and greater opportunities to rotate through tasks.

The new ADC is one reason why Citi is forecasting Coles to increase its dividends to 69 cents per share for FY2023. Then to 73 cents for FY2024 and 80 cents for FY2025. Coles shares have paid out a total of 66 cents per share in fully-franked dividends over the past 12 months. That gives the Coles share price a dividend yield of 3.64% today.

Woolworths is also investing in automation technology for its supply chains. But it seems that Citi thinks Coles has the upper hand here.

The Coles share price has slightly outperformed that of Woolworths over the past five years, as you can see below:

But only time will tell if the next five years will bring the same outperformance for Coles investors.

The post Is this a compelling reason to buy Coles shares over Woolworths? appeared first on The Motley Fool Australia.

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More reading

• No savings at 40? Here’s my 3-step plan for $1,500 of passive income a month
• Experts say these top ASX dividend stocks are buys
• Why I’d buy companies with pricing power to comfortably beat the ASX index
• 2 ASX 200 dividend stocks brokers rate as top buys
• Up 17% in 2023, are Woolworths shares still worth buying?

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 positions in and has recommended Coles 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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If you’re in the market for some new portfolio additions, then you will be pleased to know that a number of ASX 200 shares have recently been tipped as buys.

Here’s why brokers are particularly positive on these top shares:

Allkem Ltd (ASX: AKE)

Bell Potter believes this ASX 200 lithium share is still great value despite recent gains following the announcement of a merger with Livent Corp (NYSE: LTHM). The broker has a buy rating with a $19.20 price target on its shares. The broker commented:

AKE is now in-play; we think it is likely the LTHM merger will proceed and are not confident that an interloper will emerge. On a stand-alone basis the company has a strong production and earnings growth profile into what we expect to be an exceptionally strong market for lithium. Combining with LTHM and the NYSE listing could see an earnings multiple uplift. AKE is trading at a slight discount to the implied deal value, which we expect will close if deal certainty improves.

BHP Group Ltd (ASX: BHP)

A note out of Goldman Sachs reveals that its analysts are bullish on this mining giant. The broker currently has a buy rating and $49.90 price target on the Big Australian’s shares. Goldman named four reasons why it is positive on BHP. It said:

Our Buy thesis on BHP is based on: (1) Attractive valuation, but at a premium to S32 & RIO (2) GS bullish iron ore, copper and met coal, (3) Optionality with +US$20bn copper pipeline and improved production growth, (4) Robust FCF, but still below RIO & S32.

CSL Limited (ASX: CSL)

Morgans is a fan of this ASX 200 biotherapeutics share and has an add rating and $337.92 price target on it. The broker believes CSL is well-placed for growth now its headwinds have faded. It said:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.

Goodman Group (ASX: GMG)

Citi is a fan of this integrated industrial property company and has a buy rating and $24.30 price target on its shares. The broker believes Goodman is well-positioned to deliver solid earnings growth for the foreseeable future. It said:

We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings. The stock currently trades at c. 19x FY24e, below global industrial peers, despite having higher earnings growth and lower leverage. We therefore see upside to the share price and retain Buy.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that has been named as a buy is ResMed. Goldman Sachs is a fan of the sleep treatment solutions company and has a buy rating and $39.60 price target on its shares. It commented:

We continue to see a long-duration runway of HSD organic growth for RMD, and we believe valuations (PE: 31.4x / EV/EBITDA: 22.0x) both c.6% below 5-year averages and growth-adjusted valuation of 2.6x (sector 2.4x) are not demanding in the context of various near/long-dated tailwinds.

The post 5 ASX 200 shares to buy according to brokers appeared first on The Motley Fool Australia.

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More reading

• The copper price could explode. This is the ASX share to take advantage
• Why BHP shares made our headlines this week
• What’s the forecast for the CSL share price in the second half of 2023?
• Buy these excellent ASX 50 shares now: broker
• Buy these ASX shares with big dividend yields: Goldman Sachs

Motley Fool contributor James Mickleboro has positions in Allkem and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman 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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