Author: openjargon

Are you on the hunt for some new additions to your income portfolio this week? Well, I have some good news for you.

Listed below are three ASX 300 dividend shares that brokers have recently named as buys and tipped to offer generous dividend yields.

Here’s what you can expect from their shares them in the near term:

APA Group (ASX: APA)

APA Group could be an ASX 300 dividend share to buy this month according to analysts.

It is an energy infrastructure business with a portfolio of gas, electricity, solar and wind assets.

These assets have generated a growing stream of income over the last couple of decades. So much so, the company is on course to soon make it 20 consecutive years of dividend increases.

Analysts at Macquarie are feeling very positive on the company’s outlook and believe this trend can continue. The broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.55, this equates to 6.5% and 6.7% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter thinks GDI Property could be an ASX 300 dividend share to buy right now.

Especially with the broker believing that the property company is well-positioned to provide investors with some very big dividend yields in the coming years.

The broker is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 61.5 cents, this implies dividend yields of 8.1% for the next three years.

Bell Potter has a buy rating and 75 cents price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX 300 dividend share that get a big thumbs up from analysts at Bell Potter is Rural Funds.

As its name implies, it is a property company with a focus on rural properties. It owns a portfolio of high-quality assets across a number of agricultural industries. This includes orchards, vineyards, water entitlements, cropping, and cattle farms.

As for dividends, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.01, this will mean yields of 5.8% for investors.

Bell Potter has a buy rating and $2.40 price target on its shares.

The post Brokers say these high yield ASX 300 dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

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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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, and 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block and NIB Holdings. 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 200 Index (ASX: XJO) is soaring higher on the heels of this afternoon’s interest rate announcement from the Reserve Bank of Australia (RBA).

The benchmark Aussie index was up 0.8% at 2:30pm AEST. In the minutes that followed, the index rocketed up another 0.5% to currently be up 1.3% for the day.

This came after the RBA reported that it was holding Australia’s official interest rate steady at 4.35%. The interest rate paid on Exchange Settlement balances was also unchanged at 4.25%.

The gains posted by the ASX 200 are somewhat muted as the pause was widely priced into the markets. Though analysts have been upping the odds of a potential rate hike from RBA amid sticky inflation.

While the rapid series of 13 rate hikes instituted by the central bank since May 2022 has brought inflation down from the near 8% levels witnessed at the end of 2022, we’re not out of the woods quite yet.

Here’s what’s happening.

RBA interest rate announcement boosts ASX 200 shares

Commenting on the decision to keep rates on hold that looks to be buoying ASX 200 investor sentiment, the RBA board noted that while data shows inflation Down Under continues to moderate, it’s not coming down as fast as the RBA had been forecasting.

The consumer price index (CPI) increased 3.6% over the year to the March quarter. That’s down 4.1% from the increase recorded over the year to December. But it remains above the RBA’s target range of 2% to 3%.

Of potential concern for ASX 200 investors awaiting a rate cut, the board highlighted that underlying inflation was higher than headline inflation and declined by less. This was largely driven by services inflation, which the board says “remains high and is moderating only gradually”.

While higher interest rates have been working, the RBA said there’s continuing excess demand in Australia’s economy.

As for the labour market and wages, the board said:

Conditions in the labour market have eased over the past year but remain tighter than is consistent with sustained full employment and inflation at target. Wages growth appears to have peaked but is still above the level that can be sustained given trend productivity growth. 

What can investors expect ahead for interest rates?

Whether ASX 200 investors can expect interest rates to rise, fall or remain steady over the rest of the year remains highly uncertain.

“The economic outlook remains uncertain and recent data have demonstrated that the process of returning inflation to target is unlikely to be smooth,” the RBA said.

The RBA’s central forecasts are for inflation to return to its 2% to 3% target range in the second half of 2025 and to the midpoint of that range in 2026. 

The enduring services inflation was flagged as a key uncertainty. The board expects services inflation to ease more slowly than it previously forecast.

And, in case ASX 200 investors want any more uncertainty, the board added:

There also remains a high level of uncertainty about the overseas outlook. While there has been improvement in the outlook for the Chinese and US economies, and many global commodity prices have picked up, geopolitical uncertainties, including those related to the conflicts in the Middle East and Ukraine, remain elevated.

Reiterating the RBA’s resolution to return inflation to its target range, the board cautioned it believes it will be “some time yet” before this happens. The members added they “will remain vigilant to upside risks”.

So, could the ASX 200 be hit with another rate hike ahead?

Maybe.

According to the board:

The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the board is not ruling anything in or out.

Invest accordingly.

The post ASX 200 rocketing higher on RBA interest rate decision appeared first on The Motley Fool Australia.

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More reading

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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.

It’s been an awful few months for Telstra Group Ltd (ASX: TLS) shares. The ASX 200 telco hit a new 52-week low of $3.57 a share last week. That’s the lowest Telstra has traded at in almost three years.

Today, Telstra shares are pretty much sitting at that new low. They are currently asking $3.60 each after dipping to $3.58 earlier this morning.

At the current stock price, Telstra is now down a nasty 9.2% over 2024 to date. The telco is also nursing a 16.6% loss over the past 12 months. Check that out for yourself below:

We’ve looked at Telstra’s recent woes quite extensively here at the Fool over the past few months.

It seems that the apathy from ASX investors towards Telstra shares began last year when the company decided against spinning off some of its most valuable telecommunications infrastructure. It has continued ever since.

The recent news regarding Telstra’s 3G network seems to have done little to shift the dial.

Telstra, along with other Australian telcos, has been planning to shut off its legacy 3G network for many years now. 3G is a now-antiquated technology that has largely been superseded by the newer and superior (at least in terms of speed) 4G and 5G.

Telstra shares and a 3G delay

4G and 5G networks offer better download speeds and lower latencies than 3G. However, they also require far more infrastructure (towers etc.) to maintain a similar level of coverage.

This has led to 3G remaining relevant across many parts of Australia. Particularly in rural and regional areas that are yet to enjoy a full 4G or 5G rollout.

Like other telcos, Telstra has committed to ending its 3G networks so that the valuable spectrum that this network occupies can be re-utilised for other purposes. However, this plan will only be implemented once the company has ensured that all parts of Telstra’s 3G network are covered by at least 4G.

Until this week, the final shutoff date for Telstra’s 3G network was set for 30 June. However, the telco has announced this week that this date will be delayed by two months to 31 August.

According to planning to shut off its legacy 3G network from Federal Minister for Communications, Michelle Rowland, the Government has voiced concerns that some telco customers who still possess older phones may not be able to make emergency 000 calls once the 3G network is switched off.

Given the government has welcomed Telstra’s decision to postpone its 3G switch-off, perhaps these concerns are why.

It’s unclear if this decision to delay the demise of 3G is feeding into the Telstra share price this week. Saying that, Telstra shares did rise by 0.28% yesterday, and are up another 0.41% today.

No doubt investors will be hoping that the new 52-week low that we’ve recently seen proves to be a bottom for the ASX 200 telco.

The post What does the latest 3G news mean for Telstra shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a higher than average risk tolerance, then it could be worth checking out the ASX penny stock listed below.

Just over three years ago, this company was far from a penny stock with a share price over $15.00.

But a lot has happened since then for good and for bad, which leads us to today.

The ASX penny stock in question is sports betting company Pointsbet Holdings Ltd (ASX: PBH), which is currently changing hands for 47 cents.

Is this an ASX penny stock to buy?

The team at Bell Potter thinks that Pointsbet shares are a great option at current levels.

So much so, this morning it reiterated its buy rating on the company’s shares with a reduced price target of 63 cents.

It is worth noting that the reduction in its price target isn’t a downgrade per se. Rather, it reflects the company’s recent decision to return 39 cents per share in capital to shareholders following the completion of the sale of its US operations.

Based on the current Pointsbet share price, this new price target implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Bell Potter has been running the rule over the ASX penny stock following the sale of its US operations and believes the market is undervaluing its businesses. It explains:

We note that, at the current share price, the Australian and Canadian businesses combined are being valued at approximately $126m assuming cash of around $30m after the second capital distribution. In our view this is too low given we value the Australian business alone at $150m. A value of $126m for Australia – if we assume Canada is worth nothing – equates to an EBITDA multiple of c.8x based on our FY25 forecasts (after allocating a portion of corporate overheads). But obviously we believe Canada is worth something – as well as the Banach technology – so the actual multiple being applied to Australia is <8x.

The broker also believes that Pointsbet could be an attractive takeover target for one of its rivals. It adds:

We also believe PointsBet is a potential takeover target given the simplified structure (just Australia and Canada), the shift to cash flow/EBITDA positive, the sufficiently strong Balance Street, the proprietary technology and it being the fifth largest player in Australia. The market here is now relatively mature so in our view the only way to grow meaningfully is through consolidation and PointsBet is an obvious potential target.

The post 1 ASX penny stock to buy in May while it is still only 47 cents appeared first on The Motley Fool Australia.

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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 PointsBet. 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.

There have been some really big winners among S&P/ASX 200 Index (ASX: XJO) stocks over the past few years.

Of the big gainers pack, one ASX 200 stock leaps to the forefront for me. Particularly as it’s involved in an unloved industry in a world moving towards decarbonisation.

Yet, as has been clearly demonstrated since Russia’s invasion of Ukraine, this “dirty’ industry remains vital for most nations that wish to keep their citizens’ lights on and their fridges cool during the lengthy global transition towards reliable and affordable cleaner energy.

And despite Australia’s own sustainable energy plans, global coal demand is booming, led by new coal-fired power plants in China. India and Japan are among the other populous nations rolling out new coal power plants.

Which brings us to ASX 200 coal stock Whitehaven Coal Ltd (ASX: WHC).

A 628% gain from this ASX 200 stock

One year ago today, on 7 May 2021, you could have snapped up Whitehaven shares for $1.27 apiece.

Meaning for $10,000 you could have bought 7,874 shares for this ASX 200 stock.

May 2021 also marked the beginning of a strong upward price trend for both thermal coal (primarily used for generating electricity) and coking coal (primarily used in steel manufacturing).

In May 2021 thermal coal was trading for around US$98 per tonne.

By September 2022 that same tonne was worth a record high of around US$440 per tonne.

This helped drive the ASX 200 stock to its own all-time highs at the time.

While the Whitehaven share price has retraced from those records, you’re unlikely to hear any long-term investors complaining.

At the time of writing on Tuesday afternoon, Whitehaven shares are swapping hands for $7.95 apiece.

That means the 7,874 shares you bought with your $10,000 investment three years ago are worth $62,598.30.

But wait.

Let’s not forget the dividends.

Adding in that passive income

There’s a good reason Whitehaven shares are popular among passive income investors.

Since March 2022 the ASX 200 stock has paid out a total of five dividend payments, all but one fully franked.

Adding them up and this equates to $1.29 in total dividend payouts you would have received if you bought the stock three years ago.

That’s assuming you spent those as they came in rather than reinvesting, which could have netted you even more gains.

So, adding those five dividend payouts to the $7.95 current Whitehaven share price and the total accumulated value of Whitehaven shares since May 2021 comes to $9.24 a share.

Meaning the 7,874 shares of this ASX 200 stock you bought three years ago today would now be worth a whopping $72,755.76!

The post 1 ASX 200 stock that turned $10,000 into $72,756 in just 3 years appeared first on The Motley Fool Australia.

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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.