Stock Pick

Author: openjargon

  • 3 of the best ASX blue chip shares to buy in June

    Two smiling work colleagues discuss an investment or business plan at their office.

    Having some ASX blue chip shares in your investment portfolio is always a good thing.

    But which ones could be great options for investors in June?

    Let’s look at three that brokers rate very highly right now:

    Coles Group Ltd (ASX: COL)

    Analysts at Bell Potter think that supermarket giant Coles would be a great blue chip share to buy. Particularly given recent investments to strengthen its market position. It said:

    Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

    Bell Potter has a buy rating and $19.00 price target on Coles’ shares.

    Qantas Airways Limited (ASX: QAN)

    Goldman Sachs sees Qantas as a top ASX blue chip share to buy right now. The broker believes its shares are undervalued based on its structurally stronger earnings and in comparison to global airline peers. It explains:

    QAN is trading 4% below pre-COVID market capitalization with the enterprise value still 7% lower despite a structurally improved earnings capacity. Relative to regional/ US peers (median PE of 9.1x), QAN is trading on a 29% discount at 6.4x FY25 PE. This is more than 2x below the historical 5Y average discount of 14%. We expect this gap to narrow as QAN delivers earnings that are sustainably above pre-COVID levels and demonstrates ability/ willingness to distribute capital to shareholders while renewing the fleet.

    Its analysts have a conviction buy rating and $8.05 price target on its shares.

    Washington H Soul Pattinson & Company Ltd (ASX: SOL)

    This investment house could be a great ASX blue chip share to buy according to analysts at Morgans. The broker highlights its track record of strong returns and appears to believe this can continue in the future. It said:

    SOL’s investment portfolio includes a diversified pool of assets ranging from listed equities (both large cap and emerging companies), private equity, property and structured yield. On a 20-year horizon, SOL’s annualised TSR is 12.5% vs the All Ords accumulation index of 9%. SOL has a 20-year history of increased dividend distributions, with a 20-year CAGR of c.8%. In our view, SOL’s management team continues to deliver both organic and inorganic growth over the long term. We continue to like the SOL story, particularly its track record of growing distributions.

    Morgans has an add rating and $35.60 price target on its shares.

    The post 3 of the best ASX blue chip shares to buy in June appeared first on The Motley Fool Australia.

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

    Before you buy Coles Group Limited 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 Coles Group Limited 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 positions in and has recommended Goldman Sachs Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 3 ASX stocks Warren Buffett could buy today

    Three business people stand on platforms in the desert and look out through telescopes.

    When it comes to investing, few names command as much respect and admiration as Warren Buffett.

    Known as the Oracle of Omaha, Buffett’s investment philosophy centres around value investing, seeking out companies with strong fundamentals, competitive advantages, and capable management teams.

    His phenomenal performance over 50 years speaks for itself.

    Curious about what Warren Buffett looks for when selecting companies to invest in? I’ve done the research for you and found some ASX companies that could meet his investment criteria.

    Before jumping in, though, a reminder that this is just the first step of the screening process for idea generation purposes. Please remember to do further research before investing your hard-earned money.

    What did Warren Buffett say?

    Buffett is known as a value investor, but he really doesn’t differentiate value investing from growth investing so much. For him, investing is one process where he allocates his capital to excellent companies selling at reasonable valuations.

    Buffett had this to say in his early investment letters:

    Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now.

    In determining great businesses, he famously uses the return on capital employed (ROCE) measure. While here he meant ROCE in a true sense — meaning without undue leverage, accounting gimmickry etc — for simplicity, I will just use the reported return on equity (ROE) from the companies.

    Based on the above, I’ve used the following criteria:

    • Price-to-earnings (P/E) ratio of below 15x using FY24 earnings estimates from S&P Capital IQ
    • Reported ROE of 15% or higher
    • Simple business model that even I can understand how they make money

    Now, here’s the list of three companies that came out of this basic screening process.

    BHP Group Ltd (ASX: BHP)

    Let’s start with a major ASX company that many of us are familiar with: BHP. The mining giant makes its money from producing and selling copper, iron ore, coal and other basic resources across the globe.

    While BHP has to endure the cyclical nature of the commodities it mines, the miner is most likely to generate higher revenues and profits in a couple of decades from today.

    Based on its financials for the 12 months ending December 2023, BHP boasts an ROE of 19%. Although its ROE tends to fluctuate between single digits and north of 40% throughout the commodities cycle, on average, it generates double-digit ROE.

    The BHP share price is traded at just about 11 times based on its FY24 earnings estimates.

    Nick Scali Ltd (ASX: NCK)

    Next up is furniture maker Nick Scali selling through its Nick Scali and Plush brands.

    The company has provided high-quality lounges and other furniture to Australians over decades, and now it is ready to expand its markets to the bigger UK market by acquiring Fabb Furniture.

    Although there’s nothing too sexy about selling furniture, one of Warren Buffett’s famous investments in the past was in Nebraska Furniture Mart, founded in 1937 by a Russian immigrant, Rose Blumkin. Certainly, he doesn’t mind boring businesses.

    Nick Scali has an astonishing ROE history, hovering around 50%, and the company is trading at a forward P/E ratio of 14 times on FY24 estimates by S&P Cap IQ.

    Super Retail Group Ltd (ASX: SUL)

    Last on my list is Super Retail Group, a retailer behind popular chains like Super Cheap Auto, Macpac, Rebel and BCF.

    As my colleague Sebastian pointed out, its business tends to cope better with economic cycles than other consumer discretionary companies.

    Super Retail Group has grown its earnings per share from 70 cents in FY19 to $1.15 in FY23. Even in the challenging business environment, the company reported a solid half-year result, increasing half-year revenues by 3.2%.

    Over the last ten years, its ROE has moved between 8% and 27%. According to its half-year FY24 report, it is standing at approximately 20%.

    The Super Retail Group shares are trading at a forward P/E ratio of 13 times.

    The post 3 ASX stocks Warren Buffett could buy today appeared first on The Motley Fool Australia.

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

    Before you buy Bhp 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 Bhp 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 positions in Nick Scali. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 1 incredible ASX dividend stock to buy now and hold forever

    An Australian farmer wearing a beaten-up akubra hat and work shirt leans on a fence with livestock in the background and a blue sky above.

    Rural Funds Group (ASX: RFF) is an ASX dividend stock that everyone should pay attention to, in my opinion. It’s one ASX share I have bought myself recently and plan to hold forever.

    The farmland real estate investment trust (REIT) is unique on the ASX. There are plenty of operating agriculture companies, but their profit and performance can often be quite volatile. Rural Funds can provide a higher level of stability because its underlying earnings are based on consistent rental income rather than variable commodity-linked revenue.

    Why it looks like a buy now

    Every business has an underlying balance sheet value, which can be measured with the net asset value (NAV) metric. This is a net total of the assets minus the liabilities.

    Every result, Rural Funds tells investors what its adjusted NAV is, which includes the market value of its water entitlements (rather than at cost).

    Rural Funds disclosed that its adjusted NAV on 31 December 2023 was $3.07 per unit, which was up around 5% from 30 June 2023, primarily due to the asset revaluations.

    At the current Rural Funds share price, it’s at a discount of around 33% to the December 2023 NAV. I think that’s a compelling discount.

    It’s challenging to say precisely how much the ASX dividend stocks’ farms are worth without Rural Funds going through a sales process, but another way to judge it would be to look at the distribution yield.

    The business currently pays an annual distribution of 11.73 cents per unit, which translates into a distribution yield of 5.8%. I think that’s a solid starting point for the passive income.

    Why I’d hold Rural Funds shares forever

    Farmland has been a valuable asset for many centuries, if not thousands of years. I believe it will continue to be a useful asset for a long time to come, so I’m comfortable with the idea of owning Rural Funds shares for the rest of my life.

    The business has rental growth built into its contracts, with some contracts linked to CPI inflation and others having a fixed annual increase. This can help drive rental income higher over time, offsetting the higher cost of debt and hopefully helping fund larger distributions in future years.

    Another tailwind for the business is that the Australian and global population continues climbing, which should be a helpful tailwind for food demand, which can help increase the underlying value for Rural Funds’ farms.

    Overall, I think this ASX dividend stock is a solid candidate to own for the ultra-long term.

    The post 1 incredible ASX dividend stock to buy now and hold forever 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 Tristan Harrison has positions in Rural Funds Group. 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.

  • This skinny house is so narrow that some people can touch both walls at once — and its price just fell again. See inside.

    A side by side image showing the exterior of the skinny house, with a blue-gray shingled facade, black trim, and a white roof, with an image of the narrow kitchen on the left with cabinets on one side and a counter with tall stools on the other.
    A skinny house in Washington, DC, which is six feet wide at its narrowest point, just dropped its price to around $570,000.

    Courtesy of Jennifer Young

    • A Washington DC developer was forced to build a skinny home — six feet wide at its narrowest point.
    • Zoning laws made it hard to build any bigger on the 0.02-acre property, the listing agent said.
    • The narrow home listed for $799,900 in July 2023, but the price just dropped further to $570,265.

    A real-estate developer in Washington, DC, had a small canvas to build a modern home.

    Now there's a 10-foot-wide, one-bedroom skinny home on what used to be a driveway.

    It's for sale for $570,265 — an almost 29% price reduction from the $799,900 it was asking when it first hit the market in July 2023.

    Jennifer Young, the home's listing agent with Keller Williams Chantilly Ventures, said zoning laws changed shortly after developer Nady Samnang purchased the 0.02-acre property, so they had to either scrap the idea of building a home or tighten their floor plan.

    "It literally came down to sometimes a centimeter of getting the exact measurements right to both comply with DC zoning and build a really nice home that was functional," Young told Business Insider.

    Samnang, a contractor bought it in 2021 for $200,000, according to the Zillow listing.

    Samnang, tasked with figuring out how to build a narrow home on a driveway in between two alleys, told The Washington Post that the design went through many iterations and took nearly seven months to get approved by the city's permit office.

    "I wanted to quit so many times," he told the Post.

    The skinny house has drawn interest from people across the country.

    "It's one of the most-viewed homes on Zillow that I've ever seen in my career," Young said. "We do have quite a bit of looky-loos, but we have a lot of first-time buyers looking and investors — people that want to Airbnb it or rent it to college kids."

    Nady Samnang and his brother Dean purchased the 700-square-foot lot at the beginning of 2021 with plans to build a four-story home.
    The exterior of a skinny home in Washington, DC.
    An outside look at the skinny home.

    Courtesy of Jennifer Young.

    According to Zillow, they purchased the lot for $200,000.

    Originally, they were going to build a four-story house at double the width, but DC zoning restrictions changed shortly after he bought the land.
    The exterior of a skinny home in Washington, DC.
    The home is built on what used to be a driveway.

    Courtesy of Jennifer Young.

    "They changed zoning right after he bought it so they were kind of screwed and they either were going to scrap a deal or try to build a tiny home," Young said.

    Construction was difficult with such a narrow space and the materials had to be brought in by hand.
    The front entrance and kitchen of a skinny home.
    A view of the kitchen.

    Courtesy of Jennifer Young.

    "All the materials had to be brought in by hand versus pulling a truck up to the site because it is a very condensed area," Young said. "There's a road, but big work trucks can't come through and it's a very tight space to work in."

    Although the house is 6 feet wide at its narrowest point, it still has several amenities that you'd find in any modern home.
    The narrow outdoor patio of a skinny home.
    The outside patio.

    Courtesy of Jennifer Young.

    It even has a fenced patio big enough for an intimate seating area.

    Bringing materials in was not the only challenge. Samnang also had to get creative when finding space for basics inside.
    A powder room under the stairs of a skinny home.
    The powder room underneath the stairs.

    Courtesy of Jennifer Young.

    Samnang told the Post that the powder room under the stairs was an "extreme challenge" because of a DC code that requires toilets and sinks to be at least 15 inches apart. He had to opt for a skinny sink to fit.

    Lucky for the future buyer, the skinny home comes fully furnished.
    The living room of a skinny home.
    The living room with windows on both sides.

    Courtesy of Jennifer Young.

    No need to haul in a bed upstairs or search for a couch that fits — those items come with the home.

    "They just went pretty modern and they chose all the right finishes that are popular now," Young said. "They had to do something that made it as luxury and contemporary and high end as they could within these restrictions."

    It was first listed on Zillow for $799,900, making it $1,333 per square foot.
    A bedroom in a skinny home.
    A view of the bedroom.

    Courtesy of Jennifer Young.

    It's 45 feet long and 10 feet across at its widest point.

    The price has since dropped to as low as $570,265 in May.
    A full-bathroom in a skinny home.
    The upstairs bathroom with a washer and dryer.

    Courtesy of Jennifer Young.

    "It's definitely hard to price," Young said. "There's not one single comparable because everything around it is condos and it's not comparable to condos.

    The Zillow listing has nearly 50,000 views and over 900 saves — numbers that Young says are rare for the area.
    The front entrance and kitchen of a skinny home.
    Another look at the kitchen.

    Courtesy of Jennifer Young.

    "It's probably the most-viewed DC listing in years right now," Young said.

    Investors have taken an interest in using the house as a rental unit for students or as an Airbnb.
    Built-in seating in a skinny home
    Built-in seating in the kitchen.

    Courtesy of Jennifer Young.

    Young said it doesn't have any condo or homeowner association fees, which could be enticing for someone looking to rent it out.

    Young said that people are drawn to its spectacle but there are plenty of interested buyers as well.
    Stairs and floor-to-ceiling windows in a skinny home.
    A hallway flanked by a glass door leading to the outdoor patio.

    Courtesy of Jennifer Young.

    "It's a very popular building," she said. "I think half the people are 'looky-loos,' and half are very interested."

    Read the original article on Business Insider

  • B-52 bomber crew picks up award for pulling their plane out of life-threatening ‘catastrophic’ failures at 1,200 feet

    B-52
    B-52

    US Air Force/Senior Airman Luke Hill

    • A B-52 bomber crew received an award for fighting through "catastrophic" aircraft failures.
    • The crew faced a string of problems while flying to Barksdale Air Force Base.
    • Air Force Global Strike Command gave the bomber crew the General Curtis E. LeMay Award.

    A US Air Force B-52 bomber crew received an award for pulling off an exceptional recovery during a life-threatening emergency.

    "All the systems kicked off at once, and the aircraft went completely dark, engines flamed out, and controlling the aircraft became a battle," Capt. Matthew Walls, one of three aircrew members aboard the B-52H Stratofortress bomber at the time, described in a Thursday press release.

    As the heavy bomber's crew was navigating around severe thunderstorms on their way to Barksdale Air Force Base in Louisiana on December 13, 2022, the aircraft, Scout 94 went into an uncontrolled roll.

    Two of the plane's electrical generators were off, four of the bomber's engines gave out, and the aircraft was descending quickly while decelerating below normal approach speed.

    Walls recalled that the emergency, which happened as they were making preparations to land the plane, "was sudden and caused brief but extreme disorientation to myself and the other crew members."

    Capt. Charles Powell, 11th Bomb Squadron director of staff, Lt. Col. John Conway, Air Combat Command TRSS Detachment 13 commander, and Capt. Matthew Walls, 343 Bomb Squadron unit deployment manager, stand for their photo in front of a B-52H Stratofortress June 3, 2024 at Barksdale Air Force Base, La. They recently earned the Air Force Global Strike Command General Curtis E. LeMay award for the outstanding bomber crew category for overcoming multiple failures during a flight, but still managing to land the aircraft safely.
    Capt. Charles Powell, 11th Bomb Squadron director of staff, Lt. Col. John Conway, Air Combat Command TRSS Detachment 13 commander, and Capt. Matthew Walls, 343 Bomb Squadron unit deployment manager, stand for their photo in front of a B-52H Stratofortress June 3, 2024 at Barksdale Air Force Base, La.

    Airman 1st Class Rhea Beil

    Capt. Charles Powell attempted to restart the engines and managed to bring back two of the four that had given out.

    Lt. Col. John Conway, another crew member, said "the reason Captain Powell was able to recover the aircraft safely is because he has trained to a six-engine approach many times and holds himself to a high standard when he trains."

    He added that "Capt. Powell and Capt. Walls both performed admirably and with immense poise that day."

    The bomber lost its engines on one side. Shortly after the two engines restarted, the crew was able to make an unusual turn back against the roll, declare an emergency, and achieve a safe landing with assistance from air traffic control.

    The crew's actions were significant, as they successfully recovered the unwieldy aircraft at a low altitude of just 1,200 feet while flying over a populated area in Bossier City.

    "The Scout 94 crew overcame multiple catastrophic failures to safely land the aircraft, averting potential disaster in the air and on the ground," the Air Force said.

    During the 2023 Air Force Global Strike Command Operations Awards, the B-52 crew received the Air Force Global Strike Command General Curtis E. LeMay Award in the outstanding bomber crew category.

    "I'm very proud of how we handled the situation," Walls said of the emergency that lasted only minutes but required a quick response. "It was fast and intense, and there wasn't time for discussion, just action. In my opinion, everyone fell into their role and did what was required."

    Read the original article on Business Insider

  • Top ASX shares to buy in June and hold for retirement

    A mature-aged couple high-five each other as they celebrate a financial win and early retirement

    Everyone wants a comfortable retirement — one in which you can relax with family and friends, enjoy time for hobbies and travel, and allow the money you’ve worked so hard for to keep working for you.

    But sadly, this aspirational lifestyle doesn’t just magically materialise when you hit retirement age. It needs to be planned and nurtured throughout your working life.

    One way to help secure your financial freedom and enable you to retire sooner is by investing in ASX shares. By creating a diverse portfolio of quality Australian companies, you can start building a passive income stream and allow the magic of compounding to boost your wealth over time.

    On that note, we asked our Foolish writers which ASX shares they would recommend buying in June and holding through to retirement.

    Here is what they came up with:

    6 best ASX shares for your retirement fund right now (smallest to largest)

    • Betashares Global Cybersecurity ETF (ASX: HACK), $889.88 million
    • Lifestyle Communities Ltd (ASX: LIC) $1.51 billion
    • Brickworks Limited (ASX: BKW), $4.08 billion
    • iShares S&P 500 ETF (ASX: IVV), $7.88 billion
    • Washington H Soul Pattinson & Company Ltd (ASX: SOL), $11.55 billion
    • Macquarie Group Ltd (ASX: MQG), $75.16 billion

    (Market capitalisations as of market close 7 June 2024).

    Why our Foolish writers say these ASX stocks are great long-term buys

    Betashares Global Cybersecurity ETF

    What it does: HACK is an exchange-traded fund (ETF) that currently holds 30 leading global companies focused on cybersecurity. At the time of writing, the ETF’s top four holdings are Broadcom, Cisco Systems, Crowdstrike, and Palo Alto Networks.

    By Bernd Struben: When it comes to ASX shares to buy and hold for retirement, I like the instant diversity that comes with buying the HACK ETF. Furthermore, management periodically amends the ETF’s holdings and specific weightings.

    With an eye on the long term, the demand for the services provided by the companies HACK holds in safeguarding personal, business and government data from malicious players is only likely to increase. Last week’s data breach announced by Ticketek was just the latest reminder of the ongoing cyber threats.

    I also think many of these companies are likely to benefit from the rapid advancement in artificial intelligence (AI), which in turn should boost the returns HACK shareholders will receive.

    As for those returns, as at 30 April, the HACK ETF had returned 38.6% over 12 months. The five-year returns average 15.2% annually. Management fees run at 0.67% a year.

    Motley Fool contributor Bernd Struben does not own units of the Betashares Global Cybersecurity ETF.

    Lifestyle Communities Ltd

    What it does: Lifestyle Communities develops, owns and manages affordable, independent-living, residential land-lease communities. At present, it has 32 residential land-lease communities under contract, in planning, in development, or under management.

    By James Mickleboro: I think Lifestyle Communities could be a great buy-and-hold option for a retirement portfolio this month. Particularly after a sell-off in April means that its shares are down by almost a third year to date.

    This sell-off has been driven by short-term headwinds, which are weighing on its performance. However, nothing has changed with respect to its long-term outlook. Goldman Sachs highlights that this remains very positive thanks to “structural growth in demand for land lease as the sector increases its penetration among retirees.”

    In addition, the broker notes that “industry build rates [are] below demand from an ageing population.” It feels this bodes well for Lifestyle Communities and expects settlements “to increase considerably into FY25/26E, driving earnings growth and unlocking cash flow.”

    Goldman Sachs currently has a buy rating and an $18.45 price target on Lifestyle Communities shares.

    Motley Fool contributor James Mickleboro does not own shares of Lifestyle Communities Ltd.

    Brickworks Limited

    What it does: Brickworks is a leading manufacturer of building products, including bricks, pavers, and masonry blocks, in Australia and North America. The company is also engaged in property and investment activities.

    By Kate Lee: As of December 2023, Brickworks had shareholders’ equity of $3.5 billion. Compared to its current market capitalisation of just over $4 billion, this translates to a price-to-book (P/B) ratio of 1.15 times. This is at the low end of its historical trading range of 1x to 1.6x over the last 10 years.  

    While Brickworks is a well-established building materials manufacturer, this business segment represents just about $608 million, or 17% of its shareholders’ equity. The remainder is primarily composed of two parts: investments in listed shares, most notably in Washington H Soul Pattinson & Company Ltd (ASX: SOL), valued at approximately $3 billion, and its property development ventures in collaboration with Goodman Group (ASX: GMG).

    I think these property ventures offer significant growth potential. As I recently covered, Brickworks holds prime industrial land holdings in strategic locations such as Western Sydney. Demand for industrial properties — think those logistics centres for retailers, usually located near metropolitan cities — has been soaring globally as consumer demand for online shopping continues to increase.

    The ongoing strength of rental prices, increases in land values due to limited supply, and continued land development are likely to support Brickworks’ property valuation, in my view.

    In addition, Brickworks is known for its consistent dividend payments, which are attractive to income-focused investors. It offers a fully-franked dividend yield of 2.47% at Friday’s closing share price of $26.72.

    I think now is a perfect opportunity to buy this great dividend payer and enjoy the dividend growth in the years to come until your retirement.    

    Motley Fool contributor Kate Lee owns shares of Brickworks Limited. 

    iShares S&P 500 ETF

    What it does: The iShares S&P 500 is an exchange-traded fund (ETF) that tracks the most popular index in the world — the S&P 500 Index (SP: .INX). This index represents the largest 500 companies listed on the US markets. 

    By Sebastian Bowen: When thinking about investments one can simply buy today and conceivably hold for decades without much thought, this index fund comes to mind. Endorsed by the legendary Warren Buffett himself, an S&P 500 index fund offers the best of American capitalism. 

    For one, it holds 500 of the largest companies in America, and the world for that matter, offering instant industrial, geographical, and economic diversification. 

    But the US markets arguably also house the highest calibre businesses on the planet. Apple, Netflix, Alphabet, PayPal, American Express, Coca-Cola, Amazon, McDonald’s… all of these top-tier companies can be found as an investment within the iShares S&P 500 ETF. 

    I think the United States will be the backbone of the global economy for decades to come and continue to house the highest-quality businesses in the world to boot. For these reasons, I would happily add this index fund to any retirement portfolio today. 

    Motley Fool contributor Sebastian Bowen owns shares of Apple, Netflix, Alphabet, PayPal, American Express, Coca-Cola, Amazon, and McDonald’s.

    Washington H Soul Pattinson & Company Ltd

    What it does: Soul Patts is an investment business that has been listed on the ASX since 1903. It started as a pharmacy chain and now has a diversified portfolio of assets. Chair Robert Millner is the fourth-generation leader from the same family to chair the company. 

    By Tristan Harrison: I believe an effective ASX share for retirement is one that can provide stability, long-term growth and solid dividends.

    Soul Patts has created a portfolio of defensive investments that generate resilient cash flow. Some of its biggest allocations are in the sectors of resources, telecommunications, property, agriculture, financial services, electrification, bonds/credit, and swimming schools.

    The ongoing growth of its existing assets, plus occasional new investments, is helping Soul Patts increase its own cash flow. This growing cash flow is funding a growing river of dividends from the business. Pleasingly for people in retirement, this ASX share has grown its dividend every single year since 2000, though future increases are not guaranteed.

    The company has paid a dividend every year since it was listed in 1903. That means it has delivered passive income through two world wars, two global pandemics, economic crashes (including the GFC and the Great Depression), various prime ministers, and so on.

    With a grossed-up dividend yield of around 4%, I think Soul Patts is a solid choice for income and potential capital growth over time. 

    Motley Fool contributor Tristan Harrison owns shares of Washington H Soul Pattinson & Company Ltd. 

    Macquarie Group Ltd

    What it does: Macquarie is a diversified banking giant that differentiates itself through a suite of non-banking services, including investment, asset management, commodities, and infrastructure. I believe Macquarie’s point of difference offers it a competitive advantage that will compound over time.

    By Zach Bristow: Rising market tensions, the inflation/rates axis, and a new commodities supercycle have set the new investment landscape. In my opinion, Macquarie is well-positioned to be a long-term beneficiary of these macroeconomic crosscurrents.

    Firstly, as mentioned, Macquarie’s offering is differentiated from other Aussie banks, given its exposure to capital markets, infrastructure, and commodities trading. This broad exposure to critical industries gives the bank more recession-proof earnings.

    We saw this in FY 2022/23 when many banks were operating tight net interest margins (NIMs), and Macquarie threw off $13.50 in earnings per share (EPS) on dividends of $7.50 apiece. I believe a strong competitive advantage like this is a necessity to comfortably hold an investment into retirement. 

    Secondly, while Macquarie’s operating profits were down this year – due to an exceptionally strong 2023 – the bank’s 13% return on equity (ROE) in H2 FY 2024 surpassed the industry’s five-year average of 11%. This fuelled dividends of $6.40 per share for the full year. 

    At the current price-to-earnings (P/E) ratio of 21 times, this dividend offers the investor a 3% trailing yield on a 4% earnings yield, comparable to most high-interest vehicles â€“ but also with the prospects of substantial long-term capital gains.

    In my opinion, the price/value equation is skewed in our favour when thinking about holding Macquarie shares into retirement.

    Motley Fool contributor Zach Bristow does not own shares of Macquarie Group Ltd.

    The post Top ASX shares to buy in June and hold for retirement appeared first on The Motley Fool Australia.

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Global Cybersecurity ETF, Brickworks, Cisco Systems, CrowdStrike, Goldman Sachs Group, Goodman Group, Macquarie Group, Netflix, Palo Alto Networks, PayPal, Washington H. Soul Pattinson and Company Limited, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: short June 2024 $67.50 calls on PayPal. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, Goodman Group, Netflix, PayPal, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Oh, so now I can’t shoot fireworks at a Lambo from a helicopter?

    screenshot of a youtube vdieo of a helicopter shooting a car
    A YouTuber's video of a helicopter blasting a sports car with fireworks got him into hot water, as part of the evidence presented by the feds.

    Department of Justice

    • YouTuber Alex Choi faces federal charges connected to filming a fireworks video that targeted a Lamborghini from a helicopter.
    • Authorities say he was filming without a permit and illegally using fireworks on federal land. They revoked the pilot's license. 
    • But whatever happened to our freedom?! (Seriously, though: Don't do this.)

    We used to be a country that was founded on the immutable principles of freedom of life, liberty, and the pursuit of happiness.

    Now, you can't even shoot fireworks at a Lamborghini from a helicopter for a YouTube video without the nanny state getting involved!

    Federal authorities arrested YouTuber Alex Choi on Thursday on charges stemming from a Fourth of July video he posted last summer. In the video, two women shoot fireworks from a helicopter at a blue Lamborghini set to Miley Cyrus's song "Party in the USA."

    Choi, a car influencer with 1 million subscribers to his YouTube channel, typically posts videos of various stunts with sports cars, like using his Lamborghini to tow other cars or filming passenger reactions as he rapidly accelerates while driving on streets.

    The video, "Destroying a Lamborghini with Fireworks," which contained a paid promotion, has been removed from YouTube (a mirror of it exists on Instagram).

    helicopter firing at car
    A screenshot from Choi's YouTube Video.

    Department of Justice

    A criminal complaint filed by the US Attorney's office in California's Central District states that Choi violated the law during the filming of his video, "Destroying a Lamborghini with Fireworks." He faces one count of causing the placement of an explosive or incendiary device on an aircraft. He also filmed on Bureau of Land Management land without a permit or insurance and used fireworks on BLM land, according to charging documents.

    The charging papers also say the FAA investigated the video, which was filmed in the El Mirage Dry Lakebed in San Bernadino, California. The agency revoked the helicopter pilot's license in December 2023.

    The AP reported that Choi appeared in court Thursday and was released on a $50,000 bond. He'll be arraigned July 2.

    This isn't the first time a YouTuber has gotten in trouble for a stunt.

    In 2021, a YouTuber intentionally crashed a plane in California for a video and had to serve six months of jail time for the stunt. A few weeks ago, the city of Seattle fined an Instagrammer $83,621 over penalties for reckless driving of a modified car he called the "Belltown Hellcat."

    Choi did not immediately respond to a request for comment from Business Insider sent to his management agency.

    Now, sure, the stunt was wildly dangerous not just to the Lamborghini driver — recklessly setting off illegal fireworks in California comes with a risk of wildfire. (In case it's not clear we're speaking in jest, seriously: Don't do this.)

    But the spirit and creativity of this stunt? Our founding fathers would be proud.

    Read the original article on Business Insider

  • Sports Illustrated’s ex-publisher wants $200 million from Authentic Brands Group, saying it stole website and employees

    A Sports Illustrated swimsuit issue on a magazine rack with other magazines visible to the side.
    A Sports Illustrated swimsuit issue on a magazine rack.

    Richard B. Levine / Corbis via Getty Images

    • The Arena Group lost its license to publish SI after a takeover by 5-Hour Energy owner Manoj Bhargava.
    • Bhargava's odd remarks confused and unsettled some employees of the storied sports brand.
    • But Arena's lawsuit says Authentic and SI's new publisher plotted to poach employees and website content.

    The former publisher of Sports Illustrated has filed a $200 million legal counterpunch against the magazine's new publisher and the owner of its intellectual property.

    In late 2023, the Arena Group lost the rights to publish SI, its best-known brand, after 5-Hour Energy creator Manoj Bhargava took over Arena and missed a licensing payment to Authentic Brands Group. ABG awarded the publishing license to Minute Media and sued Bhargava for $49 million, accusing him of acting like a "gangster" in their negotiations.

    On Friday, Bhargava and his company hit back — and they're seeking $200 million for what they claim was a plot by ABG and Minute Media to string the Arena Group along while making copies of its websites and laying the groundwork to poach its employees and biggest spenders.

    "ABG deceived Arena by promising to work with Arena in good faith to renegotiate Arena's license so as to allow Arena to continue to operate Sports Illustrated," the complaint says. "Privately, ABG and Minute had been partnered for weeks, conspiring to steal Arena's code and publisher relationships."

    The counter-suit also took aim at CVC Capital Partners and BlackRock, investors in ABG, although they weren't named as parties to the lawsuit. In the complaint and in a statement, Steve Janisse, a spokesman for Arena and Bhargava, said it was unethical for them to have assisted in what it characterized as ABG's sham negotiations.

    "It's amazing that CVC Capital and BlackRock would condone this type of corporate behavior," said Janisse. "To be honest, we're surprised they aren't calling for a change of leadership at ABG." An executive at CVC didn't immediately respond to emails and a representative for BlackRock declined to comment.

    Bhargava has a history of aggressive legal action. A 2012 Forbes profile noted that he had already filed more than 90 lawsuits. Bhargava, who made his billions selling 5-Hour Energy Drink, showed the Forbes reporter a "cemetery" bookcase in his office, lined with energy shot bottles from competitors his company had sued or legally bullied out of the market, calling them the "gravestones" of his vanquished rivals.

    Bhargava's lawsuit adds to the morass of legal actions that have formed around Arena Group. In early April, ABG sued Arena and Bhargava for the missed licensing payment and a $45 million termination fee.

    Arena, whose stock trades for less than half of what it did at the start of 2024, included that $45 million fee in a loss of nearly $91 million that it recorded in connection with the loss of the SI brand last quarter.

    Ross Levinsohn, the former Arena CEO who was fired when Bhargava took over, has also sued Arena, claiming he was retaliated against. Shortly thereafter, Levinsohn, who became CEO of Arena in 2020 before being fired in 2023, became the target of a lawsuit filed by Arena's founders, who claim he mounted a "fraudulent coup" to enrich himself at the expense of Arena and other shareholders, according to Front Office Sports.

    ABG and Minute Media didn't immediately reply to comment requests.

    Read the original article on Business Insider

  • 3 things homebuyers should do to hack the unaffordable housing market, according to Fannie Mae’s chief economist

    buying a home

    PM Images/Getty Images

    • There are three ways homebuyers can play the housing market to their advantage, according to Fannie Mae.
    • The firm's chief economist gave his top tips to first-time homebuyers in a recent interview.
    • The housing market remains supply-constrained, which has pushed up home prices, he said.

    The housing market is historically unaffordable, but according to Fannie Mae's lead economist, prospective buyers can do a few things to make things to get a leg up.

    Doug Duncan, chief economist of the government-sponsored mortgage finance giant, noted the challenging environment for first-time homebuyers, with mortgage rates hovering near 20-year highs and a dearth of inventory keeping home prices elevated.

    The 30-year fixed mortgage rate has been stuck around 7% all year. Single-family home prices, meanwhile, climbed 7.4% in the first quarter.

    "Supply-constrained," Duncan said of the housing market, speaking to Yahoo Finance on Thursday. "That's been a theme for several years, it's kind of repeating the story, but it's the story."

    Duncan outlined his top tips for homebuyers in today's market:

    1. Have a good credit score

    Mortgage rates are elevated, and having a poor credit score makes borrowing costs even steeper, Duncan said.

    "No matter who you talk to, there's different kinds of lenders. All of them are going to look, first of all, at what's your credit? Do you have a good credit score?" he said. "They want to know, what's your risk profile?"

    Real estate economists say mortgage rates likely won't come down significantly anytime soon. Mortgage rates are influenced by real interest rates in the economy, and Fed officials aren't in a rush to cut rates while inflation remains above their target and the economy remains strong.

    2. Shop around with multiple lenders

    Homebuyers should talk to multiple lenders before locking in their mortgage. Buyers who shop around tend to score better deals and more affordable rates, Duncan said.

    "Make them compete. They don't make money if they don't make a loan to you, so they have an interest in satisfying you, just like you have an interest in getting a good deal. So shop around for sure," he added.

    3. Don't try to time the market

    You be in the market for a home because you can afford it at the moment — not because you're waiting for prices or mortgage rates to come down, Duncan said.

    "What I always give people as advice when they ask, 'Is now a good time to buy a house?' is if you have a family budget or a household budget. That's the most important clause, because any lender is going to ask you things that's going to come out of that budget, and if you can budget it all out, you know how to immediately answer those questions and you'll get a better deal at the end of the day," Duncan said.

    People betting that mortgage rates or home prices will come down soon are taking a gamble. Some homebuyers can afford to speculate on the market, but most first-time homebuyers cannot, Duncan noted.

    "You want to take a well-educated financial management approach to that decision because you'd like to be able to sustain it," he said.

    First-time homebuyers accounted for 32% of all home sales in 2023, well below the historical average of 38%, according to data from the National Association of Realtors.

    The good news is that some real estate experts see a recovery slowly forming for the housing market. Supply is expanding and home prices are starting to fall in key metros, Charles Schwab said in a recent note.

    Read the original article on Business Insider

  • Median household wealth for Black Americans is projected to hit $0 by 2053. My estate plan is designed to protect me from that.

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    A side-by-side composite featuring a close-up shot of a family looking at financial documents and headshot of the author, Jala Eaton

    Getty Images; Jala Eaton; BI

    • I'm working hard to build wealth, and I want to make sure it lasts forever.
    • My estate plan is designed to maintain my assets and ensure I don't leave any surprise debt behind.
    • This article is part of "My Financial Life," a series helping people live and spend better.

    Estate planning is a fancy way of saying you're planning for the future — a time when you'll be unable to manage your health and wealth.

    Many people focus on financial planning, but not as many think about the broader picture. However, the process doesn't need to be complicated — it's a matter of creating legal documents appointing people to speak and act for you.

    I'm an estate-planning attorney, and I've seen how important this process is and where some people's plans fall short.

    I want to continue helping others after I'm physically unable to do so. A 2017 study by the Institute for Policy Studies looking at long-term projections for the racial wealth gap found that median Black household wealth could reach zero by 2053. That means my long-term goals need to factor into my estate plan to secure generational wealth.

    I want to thrive today and help my future beneficiaries avoid conflicts, excessive taxes, financial burdens, and disputes that could cost time and money.

    My financial plan and my estate are intertwined

    I considered several questions about my estate when deciding on my financial goals:

    1. When I reflect on the wealth I have — and the wealth I'm building — what do I want done with it when I die?
    2. Who is or will be capable of managing my assets?
    3. What will happen to my digital legacy — my online accounts, digital files, pictures, and investments?
    4. What tax consequences will my choices have now and in the future?
    5. How will I keep my estate plan and financial plan updated as my life changes?

    My estate plan consists of a financial power of attorney, an advance directive, a guardian nomination, a will, and a trust. As an estate-planning attorney, I frequently encounter families who created a trust but didn't understand how it works and don't have a plan for its upkeep.

    My estate plan is designed to support all the assets I leave behind and ensure the financial moves I'm making now stay on track. For example, if I buy a house, I have to make sure there's a plan so my trust (and the trustees I leave in charge) can continue paying for the house. I'm accounting for a mortgage, maintenance and remodeling costs, and property taxes. In one case I saw property taxes go from $3,000 to $11,000 a year following a property transfer.

    I want to minimize the debt my trust will have to pay off

    If your estate plan is set up correctly, some debts cannot be collected after death. I've chosen to save, invest, and pay down debts to minimize the bills my estate and trust would be responsible for. Considering my estate plan early in life will help me figure out which debts I should pay off first.

    When it comes to my plans, the most important part is educating the people around me about my moves and my wishes. It's easy for your plan to fail when the people you leave in charge don't know what to do or how to do it. Having financial conversations and being transparent is the best way to ensure my financial and estate plans remain on track.

    My goal is to create a comprehensive financial road map that will address my current needs and future aspirations. I've thought about my financial stability at every stage of life. I've found it helps to think about your long-term goals and values first. Then you can ask yourself the big questions — the who, what, why, and how — and get the ball rolling.

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