Month: June 2024

The Titanic is overrated, deep-sea explorers say. The wealthy keep venturing to it anyway.

An inflatable Titanic in the middle of a park.
An inflatable Titanic slide seen at a park in Placentia, California.

  • The Titanic wreckage site continues to be a big draw for the wealthy and adventurous.
  • But experienced deep-sea explorers tell Business Insider there's nothing more to see there.
  • Hot sea vents and deep-water coral reefs are under-explored and far more accessible, explorers say.

The Titanic may be one of the most popular and identifiable wreckage sites in the history of sea travel.

It also may be one of the most overrated, deep-sea explorers told Business Insider.

More than a century after the ocean liner sank to the bottom of the Atlantic, the Titanic has proven the staying power of its lore, not least in part due to James Cameron's 1997 film, which became the first billion-dollar box office success. The film reignited interest in the ship and created a fandom that lives strong to this day. Titanic-themed birthday, anyone?

Then, in 2023, five people died in OceanGate's Titan submersible during a dive to the wreckage site, once again placing the iconic ship at the forefront of the news cycle.

Despite the wreckage's thorough documentation and the recent fate of the OceanGate submersible, the wealthy and well-resourced continue to pour efforts to venture 12,500 feet into the ocean just to see the site of the 1912 sinking.

Passengers on the Titan paid up to $250,000 for a seat inside the submersible. Now, billionaire real estate investor Larry Connor said he will voyage to the Titanic.

Deep-sea explorers are left wondering: Why?

'People are trying to impress people'

"The wreck is well-documented," Karl Stanley, a submersible expert, told BI in a recent interview. "That's probably the best documented deep-water wreck there is."

Stanley, who owns a submersible tourism company, Stanley Submarines, was one of many colleagues who warned OceanGate's CEO Stockton Rush about the dangers of rushing to produce a vessel that could take people to the Titanic.

For him, the wealthy's desire to visit the shipwreck has less to do with a genuine passion for deep-sea exploration and more to do with namesake recognition.

"I think whatever market exists for tourism to the Titanic is extremely analogous to the kind of clientele that pays Sherpas to drag them up Mt. Everest," Stanley said, referring to the Nepalese ethnic group that dwells in the Himalayan mountains. Some climbers pay up to $15,000 per expedition to have a Sherpa guide, BI previously reported.

Since the early 1900s, more than 330 people have died on the mountain, and 107 of them were Sherpas, according to The Himalayan Database.

Stanley said there are more dangerous but less traveled mountains and shipwrecks that are less deep but better preserved, such as the HMHS Britannic, Titanic's sister ship, which lies in a relatively shallow grave of about 400 feet, near the Greek island of Kea.

"People are trying to impress people," he said.

Guillermo Söhnlein, the cofounder of OceanGate who left the company in 2013, agreed with Stanley.

While he doesn't want to discourage anyone's genuine passion for the iconic ocean liner, Söhnlein told BI in an interview that the Titanic "holds no interest for me whatsoever."

"One of the reasons I talked with Stockton all the time in the recent years is he would always call me before the expedition to see if I wanted to come to the Titanic," he said.

"And honestly, I never had any desire to go to the Titanic. I just don't see the appeal of it," Söhnlein said, "For me, personally, I think a big part of that is because I prefer exploration. And the Titanic has already been visited, it's been documented, its been filmed. James Cameron has done a phenomenal job on it."

Brine pools and unexplored blue holes

Stanley and Söhnlein said they're less interested in shipwreck sites overall and more keen on exploring the ocean's ecosystem.

"Hot sea vents, brine pools, and deep-water coral reefs would all be more interesting than a shipwreck and can be accessed by going 2,000-5,000 feet, not the 13,000 feet it takes to get to the Titanic," Stanley said.

Similarly, Söhnlein is interested in deep trenches and hydrothermal vents — something Rush was also passionate about, he said.

Söhnlein explained that they're "almost completely unexplored," "play key roles in our planetary dynamics," and "they likely hold thousands of undiscovered and unknown life forms."

Söhnlein's company, Blue Marble Exploration, recently announced it would venture into Dean's Blue Hole, a site in the Bahamas about 660 feet from the surface.

A picture of the ocean with a hole in the middle.
Dean's Blue Hole

"Dean's Blue Hole is an enigma for geologists studying underwater caverns," Blue Marble Exploration's website says. "It is the largest of its kind in the world, and yet very little is known about it, including how it formed more than 15,000 years ago."

The company adds that it expects to find "human remains" of people who drowned in the blue hole "due to a variety of misfortunes."

It's unclear how many people died at the site. The most notable case occurred in 2013 when American freediver Nicholas Mevoli attempted to break a freediving record by reaching 72 meters in a single breath, The New York Times reported. Mevoli surfaced but died shortly after.

Read the original article on Business Insider

Income booster: Here’s an ASX dividend stock that yields 6% and provides quarterly cash payments

Man holding Australian dollar notes, symbolising dividends.

Investors seeking stable income in a volatile market often turn to dividend stocks. One such compelling option on the ASX is Rural Funds Group (ASX: RFF), a real estate investment trust (REIT) specialising in agricultural assets.

With an attractive distribution yield of approximately 6% and the benefit of quarterly cash payments, Rural Funds offers a unique opportunity for income-focused investors.

Even better, Rural Funds is set to pay its quarterly dividends next week. Is now the perfect time to buy Rural Funds shares ahead of its ex-dividend date on 27 June?

Understanding Rural Funds Group

Rural Funds Group is Australia’s only diversified agricultural REIT. It owns a portfolio of high-quality agricultural assets, including almond orchards, vineyards, cattle and cotton properties, macadamia orchards, and water entitlements.

These assets are leased to experienced operators under long-term agreements, providing a stable income stream and potential for capital growth.

Farmland has been a valuable asset for centuries, and it is likely it will remain so for the foreseeable future. The long-term stability appeals to many investors, as my colleague Tristan highlighted. Additionally, the ongoing growth of both Australian and global populations is a significant tailwind for the business.

Why Rural Funds stands out for dividend investors

The Rural Funds unit price has dropped 35% from its all-time high of $3.18 in January 2022 and has hovered around the $2 mark over the past year.

At the current price, Rural Funds offers a distribution yield of 5.67%, higher than many other dividend-paying stocks on the ASX.

Unlike many ASX dividend shares that pay dividends semi-annually, Rural Funds provides quarterly distributions. This regular income can be especially beneficial for retirees who rely on passive income for their living expenses.

Rural Funds’ diversified portfolio across different agricultural sectors reduces the risk associated with any single commodity or market. The REIT’s properties are leased to reputable operators under long-term agreements, often with built-in rental escalations.

Trading below its book value

After the recent weakness in its unit price, Rural Funds is trading below its book value. Rural Funds is trading at a price-to-book (P/B) ratio of 0.73x based on its reported number. However, this includes its water entitlements at their book values. Adjusting for this, reflecting the estimated market value of these assets, the company estimates its net asset value (NAV) at $3.07 per unit as of 31 December 2023. This makes its adjusted P/B ratio even lower, at 0.67x.

Such attractive valuations caught eyes of some analysts. Bell Potter highlighted its attractive valuation and high distribution yield as the reasons to like Rural Funds, as my colleague James said.

The Rural Funds Group share price finished Friday’s trading up 0.98% at $2.07.

The post Income booster: Here’s an ASX dividend stock that yields 6% and provides quarterly cash payments appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rural Funds Group right now?

Before you buy Rural Funds Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rural Funds Group 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 may be better buys…

See The 5 Stocks
*Returns as of 5 May 2024

More reading

Motley Fool contributor Kate Lee 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.

Top brokers name 3 ASX shares to buy next week

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Life360 Inc (ASX: 360)

According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $17.75. Bell Potter notes that Life360 has announced that its Life360 app has now surpassed 2 million paying circles. This was notably ahead of the broker’s expectations. In fact, Bell Potter was only expecting 1.98 million paying circles at the end of the first half. It feels this bodes well for the company going into the seasonally strong third quarter of the year. As a result, its analysts appear confident that the company is destined to deliver another strong result this year. The Life360 share price ended the week at $15.66.

Light & Wonder Inc (ASX: LNW)

A note out of Morgans reveals that its analysts have initiated coverage on this gambling products and services provider’s shares with an add rating and $172.00 price target. According to the note, the broker has been impressed with Light & Wonder’s restructuring and rebranding. It notes that this has resulted in the significant capture of land-based market share in Australia. While that is positive, the real reason Morgans is bullish is that it believes Light & Wonder can replicate this in the massive United States market. In addition, its analysts highlight that its digital segments are performing well, with its social casino division, SciPlay, significantly outpacing the rest of the market. The Light & Wonder share price was fetching $152.18 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Morgan Stanley have upgraded this supermarket giant’s shares to an overweight rating with an improved price target of $37.00. According to the note, the broker made the move in response to the release of the results of a major household survey. These results have made the broker more positive on the supermarket industry. This is because it feels that the survey points to consumer trends that will lead to better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the survey point to Woolworths being the biggest winner from these trends. As a result, it has promoted the company to be its top industry pick. The Woolworths share price ended the week at $33.63.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

Should you invest $1,000 in Life360 right now?

Before you buy Life360 shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 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 may be better buys…

See The 5 Stocks
*Returns as of 5 May 2024

More reading

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX passive income: Earn $1000/month

A smiling woman with a handful of $100 notes, indicating strong dividend payments

Having passive income would certainly be very helpful in the current environment.

Unfortunately, unless you’re lucky enough to already have a bank account filled to the brim with cash, it’s going to be too late to generate a sizeable income from the share market immediately to combat the cost of living crisis.

However, don’t let that stop you from making it a long term goal, so that you are ready to tackle any cost of living shocks that could happen in the future.

Generating $1,000 of monthly passive income from the ASX

If you wish to pull in $1,000 of monthly passive income from the ASX, you’re going to need to generate $12,000 of dividends each year.

The good news is that there are a fair number of ASX shares on the local bourse that analysts are forecasting to provide 6%+ yields. This includes the likes of APA Group (ASX: APA), Stockland Corporation Ltd (ASX: SGP), and Accent Group Ltd (ASX: AX1).

If you are able to build a diversified portfolio of ASX shares that provides you with an overall yield of 6%, you would need a portfolio valued at $200,000 to generate total dividends of $12,000 a year.

Investors that already have this amount of cash to invest can now do this and relax and watch the passive income come in. But if you’re starting from zero, you will need a plan.

How to get started

The first step for passive income investors to take is to make consistent investments in the share market.

For example, if you can invest $5,000 into the share market each year, your portfolio would grow to be worth $200,000 in 16 years if you achieved an average total return of 10% per annum. This is broadly in line with historical averages, so not guaranteed but certainly possible.

After which, investors will need to find a high quality group of ASX shares to invest these funds into.

Investors may wish to build a diverse portfolio by splitting their $5,000 investment across a number of ASX shares. This could also include ETFs, which allow investors to buy large groups of shares in one go.

Next, let compounding work its magic. This is what happens when you earn returns on top of returns. It essentially supercharges your wealth, particularly the longer you leave it.

For example, 10 years of investing $5,000 and earning a 10% per annum return would turn into $88,000. But if you keep going just six more years, you will have grown your portfolio by a further $112,000 to the target amount of $200,000.

At that point, you now have enough to start generating material passive income from the ASX.

Overall, by following these steps, you could turn the ASX into your own personal ATM.

The post ASX passive income: Earn $1000/month appeared first on The Motley Fool Australia.

Should you invest $1,000 in Apa Group right now?

Before you buy Apa Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Apa Group 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 may be better buys…

See The 5 Stocks
*Returns as of 5 May 2024

More reading

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 Apa Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.