Author: openjargon

I’m going to talk about two S&P/ASX 200 Index (ASX: XJO) shares that I’m bullish about with their cheap valuations and compelling earnings growth potential.

Businesses that have temporarily dropped can be buy-the-dip opportunities. Stocks that are still growing their operations/revenue have a high chance of rebounding, in my opinion. Share prices usually follow the direction of earnings over time and revenue growth is a very important driver of profit growth.

With that in mind, below are the two ASX 200 shares I like the look of and recently decided to invest in.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is a leading pathology business with operations in numerous countries including the USA, Australia, Germany, Switzerland, UK, Belgium and New Zealand.

Despite being in the defensive sector of healthcare, the Sonic Healthcare share price has dropped 25% in the last year, as we can see on the chart below.

The company is no longer receiving the COVID-19 testing revenue, and it’s facing a much higher net interest expense because of higher interest rates and acquisitions.

Why can it keep growing earnings in the long term? There are a number of tailwinds.

Firstly, its base business (excluding COVID-19 revenue) organic revenue growth was 6.2% in the FY24 first half, which I’d say is a solid increase. Total base business revenue rose 15% thanks to acquisitions in places like Switzerland and Germany.

Sonic says that since July 2023, at least A$500 million of new annual revenue has been secured from acquisitions and contract wins.

The company is also expecting to deliver good revenue and margin synergies from recent acquisitions and investments.

I also think the ASX 200 share has tailwinds like ageing populations and growing populations in the key markets of the US, Australia, the UK and Germany.

According to the estimates on Commsec, the Sonic Healthcare share price is valued at 18x FY25’s estimated earnings, with a projected dividend yield of 4% (excluding franking credits).

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is one of the largest global operators. COVID-19 was a rough time for the business, but profit has come soaring back. In the FY24 first-half result, underlying net profit after tax (NPAT) jumped 162% to $57.9 million and statutory NPAT soared 222% to $50.4 million.

Despite that, the Corporate Travel Management share price is down 20% in 2024, as seen on the chart below.

The business is winning new customer contracts and seeing existing customers grow their spending with the ASX 200 share. Since listing in 2010, the business has had a high client retention rate of 97%.

Over the next five years, the business expects revenue to grow by at least 10% per annum. It aims to win $1 billion per year in FY25 and rise to $1.6 billion per year by FY29. Acquisitions (and the acquired revenue) will supplement this.

The company is expecting earnings before interest, tax, depreciation and amortisation (EBITDA) to grow at a compound annual growth rate (CAGR) of 15% thanks to new client wins, retention and project execution.

According to Commsec, the Corporate Travel Management share price is valued at 14x FY25’s estimated earnings with a dividend yield of 3.2% (excluding franking credits).  

The post 2 cheap ASX 200 shares I’d buy for growth and dividends 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

• These are my top ASX 200 share picks for growth right now
• Forget NAB and buy these ASX dividend shares
• 1 ASX dividend stock to buy that’s down 40%
• Here’s how the ASX 200 market sectors stacked up last week
• These ASX dividend winners keep giving investors a pay rise

Motley Fool contributor Tristan Harrison has positions in Sonic Healthcare. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a long time since Leo Lithium Ltd (ASX: LLL) shares have been seen on the ASX boards.

The Africa-based ASX lithium stock has been out of action since the middle of September.

This has been caused by issues arising from the introduction of a new Mining Code in Mali which impacted its Goulamina Lithium Project.

What’s going on with this ASX lithium stock?

The good news for shareholders is that the company’s shares could soon return to trade.

That’s because this morning, Leo Lithium announced that it has come to an agreement with the Mali Government.

According to the release, Leo Lithium and its joint venture partner, Ganfeng Lithium, have signed a memorandum of understanding (MoU) with the Government of Mali which resolves all outstanding issues.

This includes Leo Lithium entering into a further binding share sale and purchase agreement (SPA) to sell its remaining 40% interest in the Goulamina Lithium Project to Ganfeng Lithium for US$342.7 million.

The previously agreed co-operation agreement, which included offtake rights, will be terminated. However, Ganfeng will pay a 1.5% gross revenue fee over 20 years to Leo Lithium in exchange for the offtake and other rights given up.

Sale breakdown

The ASX lithium stock advised that the US$342.7 million cash consideration that is payable by Ganfeng Lithium is structured as follows:

• US$10.5 million non-refundable deposit to be paid within 10 days of executing the sale and purchase agreement.
• US$161.0 million payable on completion of the transaction following satisfaction of conditions precedent.
• US$171.2 million payable on 30 June 2025 or an earlier date.

Management notes that US$342.7 million is equivalent to A$0.43 per Leo Lithium share. This compares to its most recent share price of A$0.505.

When will Leo Lithium shares return?

With these issues now resolved, it may not be long until we see this ASX lithium stock trading again.

Management advised that it will discuss with ASX the necessary next steps to lift the suspension. Though, it concedes that the lifting of the suspension will be at the discretion of the ASX. An update will be provided in due course.

Leo Lithium Managing Director, Simon Hay, believes the agreement is in the best interests of shareholders. He said:

Despite our best efforts to reach a viable agreement with the Mali Government and considering the increasing risks associated with operating in Mali, the impact of the new 2023 Mining Code and the Company’s financial position for future funding, the Board of Leo Lithium has determined that a sale of the Company’s remaining interest in Goulamina is in the best interests of Leo Lithium shareholders. The Board believes the executed Sale and Purchase Agreement with Ganfeng provides our shareholders with certain value under highly challenging circumstances.

Our relationship with Ganfeng remains strong, and we look forward to the next phase of our partnership. We have deeply appreciated our shareholders’ patience and support whilst we worked to settle this issue with the Mali Government. Given the circumstances, we believe this settlement and sale of the Project to Ganfeng represents the best outcome for all Goulamina stakeholders.

The post ASX lithium stock suspended for 8 months gearing up to resume trading 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

• 2 cheap ASX 200 shares I’d buy for growth and dividends
• Why I think this ASX 300 stock is a fantastic pick for dividend income
• Flight Centre share price lifts off amid record full year sales prediction
• If you invest $8,000 in Bank of Queensland shares, here’s how much passive income you’ll get
• Goodman share price hits record high on second FY24 guidance upgrade

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.

The S&P/ASX 300 Index (ASX: XKO) stock Rural Funds Group (ASX: RFF) is one of my top picks for dividend income within the index.

I like to own businesses that I believe have enough earnings stability to deliver passive income, even during difficult times for the economy.

The COVID-19 period was a perfect example that not all blue-chip dividends are safe, with cuts from stocks like ASX bank shares and Transurban Group (ASX: TCL).

Rural Funds is a real estate investment trust (REIT) that owns different farm types including almonds, macadamias, cattle, vineyards and cropping.

There are a few key reasons why I’d buy Rural Funds shares (again) for dividend income.

Good rental growth for this ASX 300 stock

The business has long rental contracts, which can provide stability and long-term rental growth through a mix of rental indexation mechanisms.

Over half of the rental income is linked to CPI inflation, so this period of elevated inflation has been supportive for rental income growth. Another 33% of the rental income has fixed rental income (with market reviews). These two areas of rental income growth can help drive the underlying value and rental profits of the ASX 300 stock.

Rural Funds is also working on macadamia orchard developments, with a 40-year lease commenced in January 2024. Development of 3,000 hectares is forecast to be materially complete in 2024. Rent is earned on the value of land, water and capital expenditure as it’s deployed – $173 million was deployed by the end of the first half of FY24, with an increase forecast to $298 million by FY25.

Solid distribution yield

A good, higher-yield ASX dividend share needs to have a solid distribution yield in my books. Ideally, it’s better than what someone could get from a savings account.

The ASX 300 stock is expecting to pay a distribution per unit of 11.73 cents, which currently translates into a distribution yield of 5.8%.

The business still intends to target distribution growth of 4% per annum, as well as generating capital growth.

Discount to NAV

A REIT investor can only know what the true net asset value (NAV) is if they try to sell the assets.

Rural Funds regularly gets independent valuers to work out what the asset values are. The business said its adjusted NAV – which includes water entitlements at market value rather than at cost – was $3.07 at 31 December 2023. The Rural Funds share price is at a 35% discount to this NAV.

The Rural Funds share price has dropped over 30% from its peak in early 2022. I think it’s a good time to buy shares at around $2.

The post Why I think this ASX 300 stock is a fantastic pick for dividend income 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

• Brokers say these high yield ASX 300 dividend shares are top buys
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• Where I’d invest $10,000 in ASX shares for passive income
• Here are 3 ASX income shares to buy in May
• 3 high-yield ASX 300 dividend stocks to buy for your income portfolio

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. 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.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is flying higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $20.59. In morning trade on Wednesday, shares are swapping hands for $20.89 apiece, up 1.4%.

For some context, the ASX 200 is up 0.24% at this same time.

This comes as investors mull over the trading update and presentation by Flight Centre CFO Adam Campbell at the Macquarie Conference.

Here are the highlights.

Flight Centre share price boosted on reaffirmed profit guidance

The Flight Centre share price is marching higher, with the company eyeing record sales for the full 2024 financial year (FY 2024). Campbell said the business was on track to exceed the previous record total transaction value (TTV) of $23.7 billion it achieved in FY 2019.

And despite impacting its year-on-year growth, Flight Centre lauded falling airfare prices as a “very positive development”.

Campbell said that while international airfare prices were still above pre-COVID levels, they’re now falling in Australia and “expected to stimulate further demand, particularly in leisure” travel.

The Flight Centre share price is also likely gaining support after the company reaffirmed its profit guidance, saying it expected strong year-on-year growth.

With trade said to be “broadly in line with expectations”, management is continuing to target underlying profit before tax (PBT) in the range of $300 million to $340 million for FY 2024.

This compares to PBT of $106 million in FY 2023. Campbell highlighted that if Flight Centre achieved the midpoint of its targeted profit range, this would represent 200% year-on-year growth.

In another strong metric, Flight Centre reported improved margins. In the third quarter (Q3 FY 2024), the company’s underlying PBT margin increased by 0.60% from Q3 FY 2023.

Campbell noted that revenue and cost margins were both tracking well ahead of the prior corresponding period. He added these were set for “further improvement as the market recovery continues and as key strategies gain traction, delivering operating leverage”.

Among the positive emerging market trends, the company said its outbound capacity in April was tracking at 95% of pre-COVID levels in Australia.

A history of growth

Though still in recovery mode from the COVID blow, the Flight Centre share price has a history of growth.

That’s been supported by the company’s remarkable achievement of growing its TTV year-on-year 25 times in 29 years since listing. Campbell noted that two of the years it failed to grow TTV were during the pandemic closures.

Among the company’s strengths, he cited that its leisure business was leveraged to outbound travel, noting this market had grown at a 5.9% compound annual growth rate (CAGR) over the 40 years pre-COVID.

The post Flight Centre share price lifts off amid record full year sales prediction 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

• These are the 10 most shorted ASX shares
• These ASX 200 blue-chip shares could rise 20% to 30%
• These are the 10 most shorted ASX shares
• 10 top ASX shares to buy in May
• Morgans says these are some of the very best ASX 200 shares to buy

Motley Fool contributor Bernd Struben 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After wobbling their way through 2023, ASX bank shares have been on a tear this year. Why?

Well, when the investment world is dominated by inflation and interest rates, one offer remains attractive: earning passive income from dividends.

ASX bank shares? They can be fortress-like dividend payers.

One name worth noting is Bank of Queensland (ASX: BOQ). According to its latest filings, the company serves around 1.4 million customers and has a 2.73% share of the Australian residential mortgage market.

The Bank of Queensland share price has lagged the broader ASX 200 Banks Index (ASX: XBK), which has advanced 8.4% since January.

Other ASX bank shares, such as Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ), have also outperformed the Bank of Queensland share price in 2024.

But you shouldn’t look away yet.

Bank of Queensland currently offers us the highest dividend yield out of all the banking majors. As far as investment goes, this is a unique point.

What is the Bank of Queensland dividend yield?

Bank of Queensland shares were swapping hands at $5.86 apiece recently, producing a trailing dividend yield of 6.5%. For context, the dividend yield on iShares Core S&P/ASX 200 ETF (ASX: IOZ) at the time was 3.63%, nearly 1.8 times smaller.

This is the highest yield among the banking majors. By comparison, CBA and NAB currently offer yields of 3.9% and 6.1%, respectively. Here’s a recent snapshot.

ASX Bank shares dividend yield

Company	Recent share price	Trailing dividend	Current dividend yield
Bank of Queensland Ltd	$5.86	$0.38	6.5%
Bendigo and Adelaide Bank Ltd	$9.76	$0.62	6.4%
ANZ Group Holdings Ltd	$28.48	$1.75	6.1%
Westpac Banking Corporation	$26.42	$1.42	5.4%
Commonwealth Bank of Australia	$115.23	$4.55	3.9%
Macquarie Group Ltd	$183.83	$7.05	3.8%
National Australia Bank	$34.40	$1.67	4.9%
Group average	—	$2.49	5.3%

What this means is that a $1,000 investment in Bank of Queensland stock would theoretically produce $65 of annual income to the investor. You simply multiply the investment by the yield to gain your dividend income.

An $8,000 investment would theoretically yield $520 of annual income if one were to invest in Bank of Queensland shares today ($8,000 times 6.% = $520.00).

We can’t forget the effect of franking credits, either. The bank’s most recent dividend was franked at 100%, bringing the full gross yield – that is, adjusted for franking credits – to 9.46% at the time of publication.

Can investors actually gain $530 in passive income from investing $8,000 in Bank of Queensland shares?

All this sounds great on paper. But this is the trailing dividend yield. For it to remain constant, the rate of dividends must continue going forward, and the share price mustn’t creep too high.

For example, if the bank were to reduce its dividend to $0.35 per share today, the dividend yield would fall to 5.6%. The opposite is also true if it were to increase. See the table below.

Change	Dividend per share	Yield at recent share price ($5.86)
Increase	$0.50	8.55%
Same	$0.41	7.01%
Decrease	$0.35	5.98%

Just remember – companies pay dividends from their earnings. If profits are down, the dividend payment may be reduced.

So, if Bank of Queensland maintains its current annual dividend and the share price remains steady, investors could expect to earn $520 of income for every $8,000 invested in Bank of Queensland shares. If it doesn’t? These figures will change.

Based on the company’s track record, profits, and overall strength of the economy, it would be hard to see Bank of Queensland slash its dividend any time soon, in my best estimation.

The post If you invest $8,000 in Bank of Queensland shares, here’s how much passive income you’ll get 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

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Looking for passive income? These 2 ASX All Ords shares trade ex-dividend next week!
• After passive income? Check out these ASX 200 dividend shares
• These are the 10 most shorted ASX shares

Motley Fool contributor Zach Bristow 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Goodman Group (ASX: GMG) share price is scaling new heights on Wednesday.

In early trade, the industrial property company’s shares rose 1.5% to a new record high of $34.90.

Why is the Goodman share price rising?

Investors have been buying the company’s shares this morning following the release of its third quarter update.

According to the release, Goodman delivered a strong operating performance for three months, which management believes positions the business well for the full year and into FY 2025.

In fact, trading was so strong that the company has upgraded its guidance for FY 2024 for a second time.

Initially, Goodman was targeting operating earnings per share growth of 9% this year. It then upgraded this to 11% growth when it released its half year results in February.

Management now expects operating earnings per share growth of 13% in FY 2024. This is being underpinned by a portfolio occupancy rate of 98% and 12-month rolling like-for-like net property income growth of 4.9%.

Management commentary

Goodman’s CEO, Greg Goodman, was pleased with the quarter. He said:

Our active asset management continues to optimise returns for our investors as we deliver essential infrastructure for the expanding digital economy. The location and quality of our properties enables increased productivity, driving demand as our logistics customers are seeking to improve their supply chain efficiency using automation and offering faster transit times. We continue to develop large-scale, high value, data centres, and expand our global power bank to address growing data centre demand as AI usage and cloud computing expands.

During the quarter we internalised the management of the NZX-listed Goodman Property Trust providing a platform for growth for GMT. We continue to review our assets and capital allocation globally, and expect further recycling of capital over time.

Outlook

Speaking about the company’s outlook, Goodman acknowledges that real estate markets will be volatile but believes it is well placed to navigate this. He adds:

The Group continues to execute on its strategy. The challenge of the uncertain interest rate environment, persistent inflation, combined with slowing economic growth, is prolonging volatility in global markets and increased cost of capital.

In the near term we believe aggregate logistics demand is likely to remain at more moderate levels compared to that experienced in the pandemic period. However, supply has been significantly reduced globally, and is generally very constrained in our markets. Our customers remain focused on maximising productivity from their space, preferring infill locations and increasing their investments in technology and automation. Combined with the scarcity of available assets in the markets we operate, should support rental growth and high occupancy.

At the end of the quarter, Goodman had $12.9 billion of development work in progress across 82 projects.

The Goodman share price is up 72% over the last 12 months.

The post Goodman share price hits record high on second FY24 guidance upgrade 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 Wednesday
• This ASX 200 real estate stock has been flying ahead of tomorrow’s key update. Should you buy?
• Here are the top 10 ASX 200 shares today
• Why Carnarvon Energy, Goodman, Nickel Industries, and Southern Cross Electrical are rising
• 3 excellent ASX 200 blue-chip shares to buy in May

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 Goodman Group. 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.

The Japanese stock market could be a smart place to invest for a number of different reasons. I’m going to talk about a particular ASX ETF that could give good exposure to Japanese stocks. Warren Buffett himself recently decided to invest in Japan stocks.

Why is the Japan stock market attractive?

There have been a number of changes made in Japan that could lead to better long-term returns.

For example, the Japanese financial regulator, called the Financial Services Agency, has been campaigning for companies to undo their cross-holdings, which is generally viewed as an inefficient use of capital.

The Tokyo Stock Exchange has been asking companies that are trading at a discount to the balance sheet values to announce plans about how they’ll close that discount.

There are also signs that wage growth could start flowing through the economy,

Another benefit for Aussies is that the Japanese Yen is at close to the weakest exchange rate this century compared to the Australian dollar, so it’s much cheaper for Aussies to buy stakes in Japanese companies at the moment.

Buffett’s Berkshire Hathaway has invested billions in five Japanese companies that are somewhat similar to Berkshire Hathaway because of how diversified their earnings are across numerous sectors. Those businesses include Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui, and Sumitomo Corp.

How to invest in Japanese stocks with an ASX ETF

There are a few different ways to get exposure to Japanese stocks on the ASX, with exchange-traded funds (ETFs) playing a key role.

I think the iShares MSCI Japan ETF (ASX: IJP) could be a good way to do it because it’s entirely invested in Japanese stocks, while ETFs focused on the entire global share market only have a portion of the portfolio invested in Japanese stocks.

The IJP ETF gives exposure to large and mid-sized companies in Japan, providing access to around 85% of the Japanese stock market. At the time of writing, there are a total of more than 220 positions in the portfolio.

Some of the biggest positions within the ASX ETF that I haven’t already mentioned include Toyota, Sony, Hitachi, Honda Motor, Softbank, Nintendo, Daikin, Asahi and Fujitsu.

Looking at the industry allocation, there are four sectors with a weighting of more than 10%: industrials (23.15%), consumer discretionary (18.95%), IT (14.77%) and financials (13.36%).

Past performance is not a guarantee of future performance, but over the past decade, the IJP ETF has returned an average of 9.6% per annum, while the Vanguard Australian Shares Index ETF (ASX: VAS) has returned an average of 8.2% over the last 10 years.

I think it could be a very interesting time to invest in Japan stocks, via this ASX ETF.

The post I’d follow Warren Buffett and buy this ASX ETF right now for exposure to Japan stocks 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

• Goodman share price hits record high on second FY24 guidance upgrade
• How to invest in uranium on the ASX
• Woodside shares are down 17% in 6 months. Is now the right time to buy?
• Why Telstra shares could be dirt cheap in May
• Analysts give their verdict on ANZ shares: Should you buy?

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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Uranium is getting a lot of attention from ASX investors in 2024.

With many countries seeing nuclear power as the answer to clean energy, the demand outlook for the chemical element has become incredibly positive.

However, this is happening at a time when uranium supply is under pressure due to softer than expected production in Kazakhstan, which is the world’s largest producer.

In addition, the United States is in the process of banning Russian uranium, which is just adding to the supply issues.

But this is all good news for ASX uranium stocks, which stand to benefit greatly from sky high prices of the chemical element.

How can you invest in uranium on the ASX?

Fortunately for investors, there are a good number of uranium stocks listed on the ASX.

This includes Alligator Energy Ltd (ASX: AGE), Bannerman Energy Ltd (ASX: BMN), Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN) and Peninsula Energy Ltd (ASX: PEN).

Investors can also choose to invest in an exchange-traded funds (ETF) instead to gain exposure to this side of the market.

The Betashares Global Uranium ETF (ASX: URNM) aims to track the performance of an index that provides investors with access to a portfolio of leading companies in the global uranium industry.

As well as local players like Boss Energy and Paladin Energy, you would be buying a slice of giants Cameco Corp (NYSE: CCJ) and Kazakhstan’s Kazatomprom.

Which uranium stocks do brokers like?

Given how ASX uranium stocks have rocketed over the last 12 months, investors may be wondering which ones are still in the buy zone.

Well, Bell Potter sees value in Boss Energy’s shares. It currently has a buy rating and $6.35 price target on them, which implies potential upside of 13% for investors.

Over at Morgan Stanley, its analysts have an overweight rating and $17.45 price target on Paladin Energy’s shares. Though, this offers only modest upside of approximately 3% from current levels.

Deep Yellow is another ASX uranium stock that Bell Potter likes. It has a buy rating and $1.90 price target on the Tumas project owner’s shares. This suggests potential upside of 13% is possible for investors from current levels.

Finally, Bell Potter sees the most value in Alligator Energy shares with its buy rating and 10 cents price target. This is over 50% higher than where the uranium stock trades today.

The post How to invest in uranium on the ASX 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

• Here are the top 10 ASX 200 shares today
• Paladin Energy share price hits a 12-year high: Too late to buy?
• These 2 ASX uranium shares just smashed multi-year highs!
• 5 ASX ETFs to invest $10,000 into next week
• Here are the top 10 ASX 200 shares today

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 recommended Cameco. The Motley Fool Australia has recommended Betashares Global Uranium Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Energy Group Ltd (ASX: WDS) shares closed up 1.9% on Tuesday but remain down 17.0% over six months.

Six months ago, shares in the S&P/ASX 200 Index (ASX: XJO) energy stock were trading for $33.54. At market close on Tuesday, those same shares were swapping hands for $27.84 apiece.

So, following on this hefty slide, are Woodside shares a buy right now?

I believe so.

Here’s why.

Is now the time to buy Woodside shares?

The pain for Woodside shares really began back in mid-September. Since the closing bell on 15 September, shares are down 27.5%.

There have been a few company-specific issues that have dragged on the share price over this time.

That includes some issues securing government approval for its flagship Scarborough offshore energy project, some shareholder issues with the company’s environmental action plans, and the failed discussions to secure a merger with rival Santos Ltd (ASX: STO).

However, those issues are now largely water under the bridge. Scarborough is now proceeding on track, and the botched Santos merger is fading into the woodwork.

As for the environmental plans, I’m confident that management will concoct a new plan that shareholders will support without throwing up excessive headwinds for the Woodside share price.

How about the oil price?

Oil and gas prices don’t move in lockstep, but they do tend to follow similar trends.

Back in September, when Woodside shares were some 28% higher than today, the Brent crude oil price reached US$97 per barrel. By mid-December, it had dipped to US$73 per barrel and has been on a bit of a rollercoaster this year, trading for US$84 per barrel on Tuesday afternoon.

This is another reason Woodside shares could be an excellent buy right now. After all, the time to buy these sorts of companies is near their cyclical lows.

And there are good reasons to believe that the oil price is more likely to head higher than lower from today’s levels.

According to Rebecca Babin, a senior energy trader at CIBC Private Wealth (courtesy of Bloomberg), “Over US$7 of geopolitical risk premium has been unwound over the past two weeks as the conflict [in the Middle East] avoided additional escalation.”

However, as much as we hope for an extended and permanent peace, sadly, I don’t think that’s very likely in the medium term.

Disruptions to oil shipments in the Red Sea are likely to continue. And Israel has rejected the latest cease-fire proposals in Gaza as entirely unacceptable. Israel now is pursuing its military operations against Hamas in the city of Rafah.

“Geopolitics is back in the driving seat for crude oil traders after last week’s drop. The demand outlook remains supported by expectations of Fed’s rate cuts,” Charu Chanana, an analyst at Saxo Capital Markets, said.

In other potential tailwinds for Woodside shares, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are also intent on supporting the oil price. The cartel is widely expected to extend its current supply cuts through the second half of 2024.

Even Iraq and Kazakhstan, two members who’ve been cheating on their pledged cuts, have indicated they’ll slash output enough to make up for their earlier overproduction.

Woodside shares and LNG

Another reason I’m optimistic that Woodside shares present a longer-term bargain at current levels is the growing realisation that natural gas (LNG) is crucial to Australia’s, and much of the world’s, transition to renewable energy sources.

Last week, Energy Minister Chris Bowen flagged the need for companies to source new gas supplies.

“Slogans like ‘gas-led recovery’ and ‘no new gas’ are equally catchy – and equally unhelpful to explaining the proper role of gas in our net zero energy mix,” Bowen said (quoted by The Australian Financial Review).

Bowen added:

Gas will play an important role in electricity by firming and peaking renewables… While technologies like green hydrogen will be vital – and I am very optimistic about Australia’s role in the global hydrogen supply chain – there are not yet substitutes for gas in many industrial settings.

Don’t forget the dividends

Woodside shares are also attractive for their juicy, fully franked dividends.

Despite coming down over the past 12 months, at the current share price, Woodside trades on a fully franked trailing yield of 7.8%.

But if oil and gas prices tick higher from here, as I expect, the dividends are likely to run higher again, too.

And investors buying at today’s much reduced Woodside share price would then be realising an even higher yield than 7.8%.

The post Woodside shares are down 17% in 6 months. Is now the right time to buy? 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

• Morgans names the best ASX 200 stocks to buy in May
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX dividend stocks to buy for an income boost
• 5 things to watch on the ASX 200 on Monday
• Why are ASX 200 energy shares getting smashed in May?

Motley Fool contributor Bernd Struben 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.