16% dividend yield: Fund names 2 slammed ASX shares to buy for the long run

Sure, it’s been a frightening time for investors. But 2022 has also been an opportunity to pick up some absolute bargains as quality ASX shares end up heavily discounted.

With this in mind, it’s prudent to see which stocks have fallen radically in recent weeks but the professionals are still backing for a long-term rise.

This allows a low entry point for maximum long-term returns.

Fortunately, the analysts at QV Equities revealed two such stocks in a recent memo to clients.

Short-term pain, long-term gain

The QVE team admitted its fund fell behind its benchmark slightly in October.

“The main reasons for the lagging performance were some very strong performances by lithium stocks, which the portfolio is not exposed to, as well as strong rises in several consumer discretionary stocks, which we remain cautious on given what looks to be a tough 2023 ahead for the sector.”

The portfolio was also held back by “some disappointing performances” seen in a pair of “key stocks”.

“Ampol Ltd (ASX: ALD) fell 5.3% in October following a mixed quarterly update in which its fuel distribution business recorded an unexpected loss due to one-off factors, while the company’s other divisions performed strongly.”

The Australian Clinical Labs Ltd (ASX: ACL) share price also took a 4.3% hit downwards for the month as COVID-19 testing volume continued to wind down.

“Although the company also reported that its underlying business is still growing strongly.”

Despite these short-term losses, the QVE team is keeping the faith.

“Both Ampol and Australian Clinical Labs remain very well positioned in their industries with strong balance sheets and we retain our positive long-term view of their prospects.”

How ASX stocks Ampol and ACL have been going

During a time when energy and fuel prices have been soaring, it may be surprising that the Ampol share price is actually down 8% year to date. 

It does pay out a juicy 5.8% dividend yield though.

The petroleum provider last month named as one of the 22 ASX shares that Wilsons is targeting for their high-income yield.

October was not the only bad month for Australian Clinical Labs. Its stock price has almost halved since the start of the year.

A life of queuing for hours for a PCR test and scrambling to purchase rare rapid COVID-19 tests now seems like a distant memory, even though that was just 10 months ago.

The devaluation of ACL does mean its dividend yield now stands at a remarkable 15.8%.

The post 16% dividend yield: Fund names 2 slammed ASX shares to buy for the long run 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

• Why ANZ, Australian Clinical Labs, Core Lithium, and Kogan are sinking today
• Another ASX All Ords share is plunging 12% on cyberattack news
• 22 high-yield ASX dividend shares Wilsons is targeting
• Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping

Motley Fool contributor Tony Yoo 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/v3zlURa