Category: Stock Market

I’d wager that almost all ASX investors love banking a good dividend. There’s the perk of receiving passive income, of course, the appeal of which needs little explanation. But ASX dividends usually come with franking credits attached as well, which are particularly useful to retirees.

Here at the Motley Fool, we are always harping on about the advantages of investing in shares compared to other asset classes. But should ASX dividend shares be the only option for someone who is planning their retirement?

Well, this is a difficult question to answer in a general sense. Every person’s retirement needs will be slightly different, meaning there is no ‘one size fits all’ approach we can advocate.

However, we can point out a few facts that could serve as guiding lights.

Should retirees put all of their money into ASX dividend shares?

Firstly, the returns of ASX shares, as alluded to above, simply outperform most other asset classes on average over long periods of time. They outperform ‘safer’ investments, like fixed-interest government bonds, cash savings and term deposits, usually loved by retirees, by quite a lot.

As such, this logic dictates that investors should be prepared to invest most of their retirement nest eggs in ASX shares. And preferably those that pay generous, fully franked dividends.

However, this logic ignores the main fallibility of shares – market volatility. As anyone who’s ever owned shares can attest to, the market is a frighteningly wild place to have your capital stored away in. Especially your entire life savings.

Share valuations can change on a whim. And they can often take years to recover from a severe slump or market crash. That’s why these assets are often described as ‘risky’.

Whilst it’s true that most retirees simply own shares for the dividend income they produce, dividend income can also be volatile. After all, we saw many of the popular ASX dividend shares on our market slash their payouts during 2020 and into 2021.

This is why diversification is still important for any investor, including a retiree.

Diversification: Still important in retirement

So yes, shares have historically produced the best long-term returns on average. However, the volatility that comes with them means that diversifying into other asset classes is still a prudent strategy.

The proportions that you wish to put into different asset classes is a matter for every individual, their family and their financial adviser.

But a rule of thumb that many professions advocate is that it’s good practice to keep at least three years’ worth of retirement living expenses in cash assets like savings accounts and term deposits.

That’s, at least in theory, enough to ride out any market (or dividend) slump that the world can throw at us. It would have certainly been adequate for a retiree to ride out the COVID crash of 2020.

Meanwhile, the rest of your capital can be invested in other assets that might generate higher returns, but also come with peace-of-mind-sapping volatility.

The post Should I stick to only ASX dividend shares in retirement? appeared first on The Motley Fool Australia.

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More reading

• Here’s the CBA dividend forecast through to 2026
• 3 of the safest ASX 200 dividend shares in Australia right now
• Why ASX 200 investors remain upbeat on Pilbara Minerals shares
• How to generate $50,000 of passive income from ASX shares each year
• 1 ASX growth stock down 40% to buy right now

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 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.

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Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors.

It isn’t hard to see why this is the case.

Earlier this month, the banking giant released its half-year results and reported a 3% decline in cash net profit after tax to $5,019 million.

However, that didn’t stop the CBA board from lifting the bank’s fully franked interim dividend by 2.4% to $2.15 per share.

This represents a payout ratio of 72%, which means that approximately $3.6 billion of CBA’s cash profits are being distributed to shareholders next month.

But what’s next for the CBA dividend? Should we expect more bumper payouts in the future? Let’s find out what analysts are expecting from the bank.

CBA dividend forecast

According to a note out of Goldman Sachs, its analysts have upgraded their medium term earnings and dividend estimates following the release of the bank’s half-year results.

The broker now expects CBA to pay a fully franked final dividend of $2.40 per share for the second half of FY 2024.

This will bring the bank’s total dividends for FY 2024 to $4.55 per share, which represents an attractive dividend yield of approximately 4% for investors. It also means a modest 1.1% increase on FY 2023’s dividend of $4.50 per share.

What’s next?

Looking further ahead, Goldman Sachs now expects the CBA dividend to be $4.55 per share again in FY 2025. This will mean another dividend yield of approximately 4% for shareholders.

And for a third year in a row, Goldman believes that the bank will be paying out a fully franked $4.55 per share in FY 2026. So, that is of course another 4% yield for shareholders to look forward to that year.

The post Here’s the CBA dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Why is the CBA share price sinking on Wednesday?
• High rates, falling profits: Why are ASX bank shares losing out this reporting season?
• You need to act fast if you want to receive the next CBA dividend
• Why these 3 top ASX 200 stocks grabbed the Motley Fool’s headlines this week
• 5 steps to becoming a milionaire with ASX shares

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. 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.

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Looking for ‘safe’ ASX 200 dividend shares on the share market is a journey without end. You can get close, but you’ll never quite cross the line.

That’s because there’s no such thing as a ‘safe dividend share’. Companies are never under any obligation to fund a dividend. So technically, we can’t even call a company that has paid a dividend every year for a century an absolutely 100 per cent safe income stock.

But, we can get close. So today, let’s discuss three ASX dividend shares that I think get about as close as you can get to being reliable income providers.

3 of the safest ASX 200 dividend shares on the market

Telstra Group Ltd (ASX: TLS)

First up is ASX 200 telco Telstra. Telstra is a beloved income stock for many ASX investors, and for good reason. The telco has been a strong dividend payer for decades now. It was also a star performer over the pandemic, keeping its payouts steady whilst others were delivering deep dividend cuts.

Telstra’s earnings base is highly defensive – think about how many Australians would be to give up their mobile connections or home broadband.

Coupled with Telstra’s tangible edge in network quality and coverage, I regard this company as one of the safest ASX shares money can buy for dividend income. At recent pricing, Telstra shares offer a fully-franked dividend yield of 4.51%.

Coles Group Ltd (ASX: COL)

Coles is another ASX dividend share that has demonstrated great strength and reliability in recent years. Similarly to Telstra, Coles shareholders got through 2020 and 2021 unscathed when it came to income. In fact, Coles was able to increase its annual dividend in both years.

Again, the company’s earnings base proves why this was possible. Food, drinks and household essentials are essential buying for every Australian. And that means Coles, as one of the cheapest places to buy these life essentials, is always going to have a reliable stream of customers.

Coles shares last traded on a fully-franked dividend yield of 4.2%.

Transurban Group (ASX: TCL)

Finally, let’s discuss ASX 200 toll road operator Transurban. If you live in Sydney or Melbourne, chances are you’d be intimately familiar with this company, or at least with the vast network of arterial toll roads it operates. Transurban owns almost every tolled road in Sydney, as well as several more across Melbourne, Brisbane and North America.

Many of Transurban’s routes are major traffic arteries and difficult to avoid when motoring around our largest cities. Traffic volumes tend to be resilient to economic maladies like inflation and recessions, giving Transurban another defensive earnings base.

Speaking of inflation, Transurban has the right to raise its tolls on many of its roads every quarter by at least the rate of inflation. This makes it a great investment and gets close to a safe ASX dividend share for investors who want to keep ahead of price increases.

At the last traded price on Friday, Transurban shares came with a trailing dividend yield of 4.60%.

The post 3 of the safest ASX 200 dividend shares in Australia right now appeared first on The Motley Fool Australia.

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More reading

• How to generate $50,000 of passive income from ASX shares each year
• Why these 4 ASX 200 shares grabbed the Motley Fool’s headlines this week
• 3 ASX shares to buy and hold forever
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today

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

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Like every S&P/ASX 200 Index (ASX: XJO) lithium stock, Pilbara Minerals Ltd (ASX: PLS) shares have been hit hard by free-falling lithium prices.

With global supply growth of the battery critical metal now outpacing the demand growth outlook over the medium-term, lithium prices have cratered by around 80% from their November 2022 highs.

This was reflected in Pilbara’s half year results (1H FY 2024), released on Thursday. Though investors took those results in stride, with Pilbara Minerals shares closing the day flat.

What did the ASX 200 lithium stock report?

On the positive side of the ledger, the ASX 200 lithium miner achieved a 7% year on year increase in sales volumes for the six months. Though that was far from enough to counter the 67% slide in its average realised price.

Lower lithium prices drove a 65% decrease in revenue to $757 million. And underlying profit after tax was down 78% from 1H FY 2023 to $273 million.

The pricing pressure saw Pilbara Minerals shares come without a dividend for the half. The company first began paying dividends in 2023.

That will, however, help the miner maintain its strong balance sheet. Pilbara had a cash balance of $2.1 billion as at 31 December.

Commenting on the suspended dividend, Megan Stals, market analyst at online brokerage platform Stake said, “Some investors may be disappointed that Pilbara is deferring its dividend. But, given low lithium prices, it appears to be a sensible move for the balance sheet as headwinds continue to weigh on the sector.”

Why ASX 200 investors are buying Pilbara Minerals shares

Commenting on the outlook for Pilbara Minerals shares on the day of the results, CEO Dale Henderson said:

With the company’s low unit-cost structure and strong balance sheet, Pilbara Minerals is uniquely placed to better withstand periods of softer pricing whilst continuing to build-out the production base to capitalise on improved pricing conditions.

Stals said those lower costs offer Pilbara an advantage over most rival ASX lithium stocks.

“Pilbara’s relatively low unit costs have so far seen the company withstand softer pricing, providing a competitive advantage over others in the sector,” she said.

Stals also noted that the miner could benefit down the track as it was moving ahead with two major expansion projects.

“The company’s large relative size means there could be the opportunity to increase market share in time for the next lithium upturn.”

This means that “investors could see the current price slump as an opportunity to buy” Pilbara shares, she said.

Indeed, the data from the Stake platform indicates numerous ASX 200 investors are already eyeing the longer-term potential.

According to Stals:

Trading volume on Stake shows that enthusiasm for lithium stocks has slightly tapered off in recent months, but Pilbara remains within our top ten most popular buys.

Following Thursday’s results, she said, “We have seen twice as many buys as sells, showing investors are on the whole still positive about Pilbara’s long-term prospects.”

The post Why ASX 200 investors remain upbeat on Pilbara Minerals shares appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy now
• Here’s why Pilbara Minerals shares could crash 21%
• Pilbara Minerals shares lower on disappointing half-year earnings miss
• Pilbara Minerals share price on watch amid 78% half-year profit decline and no dividend
• Pilbara Minerals shares could drop 12% on upcoming results if history repeats itself

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.

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Wouldn’t it be great if you could generate $50,000 of passive income from ASX shares?

This might be enough for you to quit your day job and let your investments do the work for you.

And while $50,000 in passive income each year might seem like a pipe dream, history shows that is achievable.

Though, it doesn’t happen overnight. It will take a long-term approach and a disciplined investment strategy.

How to make $50,000 in passive income with ASX shares

The first step is to make regular investments into high-quality ASX shares.

If you can invest $1,000 a month you could gradually build a substantial portfolio over time.

You may want to consider allocating your investment across a range of reliable dividend paying ASX shares, focusing on established companies with a track record of sustainable payouts.

But it’s important to note that we don’t want to withdraw our dividends in the near term.

That’s because by reinvesting your dividends back into the market, you can take advantage of compounding returns and grow your portfolio at a faster rate.

Many ASX shares offer dividend reinvestment plans (DRPs). These allow shareholders to automatically reinvest their dividends in additional shares, often at a discounted price. Exploring these options can be a big boost to your investment strategy.

Compounding returns

Historically, the share market has generated a return of approximately 10% per annum.

There’s no guarantee that this will happen in the future, but we’re going to base our calculations on this figure.

If you were to achieve a 10% annual return and invest $1,000 a month, in 10 years you would have grown your portfolio to approximately $200,000.

While this is a sizeable figure, it’s still a little soon to start typing up your resignation letter.

Based on a 5% dividend yield, a $200,000 portfolio would provide investors with passive income of $10,000. We need to keep going.

The good news is thanks to compounding, your portfolio will really start to explode in value from here.

For example, if we fast-forward another 10 years, all else equal, your portfolio will have ballooned to approximately $725,000.

We’re getting closer. A 5% yield on this portfolio would generate passive income of $36,250.

But don’t worry, it will take just three more years of $1,000 per month investments and 10% returns to get us to our end goal.

At that point, your portfolio would be worth $1 million and an average 5% dividend yield across it would produce $50,000 of passive income.

Overall, this demonstrates what is possible with ASX shares. It just takes a combination of patience, diversification, investing in quality, and consistent reinvestment of dividends.

The post How to generate $50,000 of passive income from ASX shares each year appeared first on The Motley Fool Australia.

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More reading

• Why these 4 ASX 200 shares grabbed the Motley Fool’s headlines this week
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• 25 ASX 200 shares with ex-dividend dates next week
• A once-in-a-decade chance to get rich from ASX 200 shares?

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.

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IDP Education Ltd (ASX: IEL) shares have been sold off over the last 12 months.

Concerns over the loss of its language testing monopoly in Canada and student visa changes have led to its shares losing almost 40% of their value.

This leaves the ASX growth stock trading within a whisker of its 52-week low of $18.29.

Is this ASX growth stock a buy?

While this decline is disappointing, the team at Goldman Sachs believes that investors should be chomping at the bit to snap up its shares while they’re down.

In response to the company’s recent half-year results release, the broker has retained its buy rating with a $26.60 price target.

Based on the current IDP Education share price of $18.55, this implies potential upside of 43% for investors over the next 12 months.

In addition, Goldman expects a 46 cents per share dividend in FY 2024. This represents a modest but attractive 2.5% dividend yield, boosting the total potential return beyond 45%.

What did the broker say about IDP Education?

The broker believes that the ASX growth stock is going to be a stronger business when the dust settles on recent industry events.

It then expects IDP Education to go through a period of very strong earnings growth. It explains:

IEL is likely to emerge through this period of short-term regulatory tightening with a more diversified business and stronger SP market position to capitalise on the long-term structural growth in international education, setting up the company for multi-year mid-teens earnings growth. On that basis, the shares represent attractive value, and we reiterate Buy.

All in all, the broker appears to believe it could be a great option for investors that are willing to be patient.

The post 1 ASX growth stock down 40% to buy right now appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs says these ASX growth shares are destined for big things
• These are the 10 most shorted ASX shares
• Want to outperform? This ASX 200 stock could generate a 35% return in 12 months
• Why BHP, IDP Education, Pro Medicus, and Whitehaven Coal shares are dropping
• 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 positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian age pension may not be enough to live on, but it’s not far off.

In fact, all you need to top it up is $100,000 in superannuation and that will be enough to cover the cost of a ‘modest’ lifestyle in retirement.

That’s according to the regularly updated AFSA Retirement Standard, which was created by the Association of Super Funds of Australia (ASFA) in 2004 and is endorsed by the Federal Government.

Do you agree?

Let’s find out how much the Australian pension currently is, and how much money AFSA reckons we need each year to cover our living expenses after we stop working.

How much does life in retirement cost?

AFSA provides quarterly estimates as to how much money we need to fund a ‘modest’ or ‘comfortable’ lifestyle in retirement.

The latest quarterly estimates are from the 2023 September quarter. They include a comprehensive breakdown of expenses for both singles and couples.

The estimates assume you own your home without a mortgage and you’re “relatively healthy”.

For the purposes of this article, we’re targeting a modest lifestyle.

In this case, AFSA says a retired couple aged 65 to 84 needs $46,620.05 per annum.

A single retiree needs $32,417.48 per annum.

In order to cover these costs, AFSA says both singles and couples need $100,000 in superannuation at age 67 and only a part-age pension.

AFSA assumes retirees draw down all their super capital and invest it, receiving a 6% return per annum.

There are very significant pros and cons to taking super as a lump sum, so always seek professional advice before making major financial decisions like this.

How much is the age pension?

The full age pension delivers $42,988.40 per annum to couples and $28,514.20 to singles. These amounts include the full pension supplement and energy supplement. The age pension is taxable.

The Australian age pension is indexed to inflation and is increased twice per year on 20 March and 20 September. You can review the last round of changes here.

As outlined earlier, AFSA reckons a retired couple aged 65 to 84 seeking a modest lifestyle needs $46,620.05 per annum to cover their costs, and single retirees need $32,417.48 per annum.

So, the pension amounts are not far off, but you’ll need your superannuation to make up the difference.

AFSA assumes retirees seeking a modest lifestyle have a $100,000 super lump sum invested at a 6% return rate, plus a part pension on top.

Australian retirees typically receive a part pension when they don’t meet the income test or asset test for the full pension.

Is $100,000 in superannuation really enough?

To fund a modest lifestyle, AFSA reckons $100,000 in lump sum super at age 67 is enough, explaining:

The lump sums needed for a modest lifestyle are relatively low due to the fact that the base rate of the Age Pension (plus various pension supplements) is sufficient to meet much of the expenditure required at this budget level.

AFSA adds:

In March 2023, ASFA revised the modest and comfortable lump sums needed to reflect the high rate of infl ation, and that there has been no real increase in the Age Pension as price growth has been greater than the increase in average wages.

Foolish takeaway

The AFSA guidelines are exactly that — just a guide.

Take a look at the AFSA cost breakdowns for both a modest and comfortable retirement to determine your goals. You’ll need a much higher superannuation lump sum if you want a comfortable lifestyle.

Meantime, if you’re a young investor hoping to self-fund your retirement, you may find some inspiration in our article: How much would I need to invest in ASX shares for a retirement income of $100,000?

Always seek formal financial advice before making important decisions relating to your pension, superannuation, and retirement.

The post Retirees: Is the Australian pension enough to live on? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX ETFs to supercharge your wealth
• These ASX shares could rise 30% to 50% in 12 months
• Are these top ASX shares dirt cheap and must-buys right now?
• Here’s the average Australian superannuation balance at age 60 in 2024
• Here’s why I’m steering clear of Core Lithium shares

Motley Fool contributor Bronwyn Allen 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.

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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

They provide investors with access to groups of high-quality shares with a single click of the button. This can make them a great way to supercharge your wealth with little effort.

But which ETFs could be top options right now?

Listed below are four excellent ETFs that could be great options:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to look at is the BetaShares Asia Technology Tigers ETF. It provides investors with easy access to the largest technology companies in Asia (excluding Japan). Among the tigers in its portfolio are giants such as Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF could be another good option for investors. It was recommended by the fund manager’s chief economist, David Bassanese, last year. This ETF is focused on approximately 150 global companies that rank highly on four quality metrics. This means that you are buying a slice of the very best companies that the world has to offer.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ASX ETF that gives you access to some of the best companies in the world is the BetaShares NASDAQ 100 ETF. This fund is home to the 100 largest (non-financial) shares on the famous NASDAQ index. This is where you’ll find all the big tech giants such as Apple, Amazon, Microsoft, Nvidia, and Tesla.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, the Vanguard MSCI Index International Shares ETF could be worth looking at. It allows investors to buy a slice of ~1,500 of the world’s largest listed companies in one fell swoop. This could make it a great way to diversify your portfolio effortlessly.

The post 4 ASX ETFs to supercharge your wealth appeared first on The Motley Fool Australia.

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• These ASX ETFs could be world class options in February
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, JD.com, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Betashares Capital – Asia Technology Tigers Etf, JD.com, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to boost your returns in 2024, then it could be worth checking out the three ASX shares listed below.

That’s because they have been tipped by brokers to rise between 30% and ~50% over the next 12 months. Here’s what you need to know:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Bell Potter thinks that this biopharmaceutical company is an ASX share to buy right now.

Last week, the broker retained its buy rating with a new price target of $22.25. This implies potential upside of 55% for investors from current levels. It said:

Clinuvel maintains a lean, vertically integrated business model that we expect to generate EBIT margins of ~50% in FY24 and FY25. Scenesse remains the only approved drug for EPP patients globally, with the most advanced competitors still ~3-4 years away, if successful.

Coronado Global Resources Inc (ASX: CRN)

If you don’t mind investing in the resources sector, then this coal miner could be an ASX share to buy.

Morgans is feels the company’s shares are very cheap and has put an add rating and $1.75 price target on them. This suggests a return of approximately 30% for investors before dividends. It commented:

CRN looks far too cheap, but we think the market will wait for tangible production/ cost and physical market improvement before narrowing this discount.

Qantas Airways Limited (ASX: QAN)

Analysts at Goldman Sachs think investors should be snapping up Qantas shares while they trade on depressed levels.

Last week, the broker responded to the airline operator’s half-year results by retaining its buy rating with a price target of $8.05. This suggests potential upside of 52% for investors.

Goldman believes the market is undervaluing its significantly improved earnings capacity. It said:

Despite negative revisions, we note that our FY24 EPS remains 52% above pre-COVID levels even as the business faces higher (vs pre COVID) fuel prices, elevated current customer investment and a 10% yoy GSe decline in unit revenue (FY24 RASK is 24% above pre-COVID equates to average 4.4% per annum). Despite this, QAN is trading 17% below its pre-COVID market capitalization with the enterprise value 24% lower. Retain Buy.

The post These ASX shares could rise 30% to 50% in 12 months appeared first on The Motley Fool Australia.

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More reading

• Qantas descends, Treasurer’s RBA dilemma and Twiggy’s payday: Scott Phillips on Nine’s Late News
• Brokers name 3 ASX shares to buy now
• Why Qantas shares could rise over 50%
• 5 things to watch on the ASX 200 on Friday
• Why Clinuvel, Medibank, Sayona Mining, and Tabcorp shares are sinking 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 positions in and has recommended Goldman Sachs Group. 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.

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With the market roaring higher this year, it’s getting harder to find value for money with ASX shares.

But that doesn’t mean that there aren’t any cheap ASX shares for you to buy.

For example, analysts think the two shares named below are undervalued and could provide strong returns for investors.

Here’s what they are saying about them:

Regis Resources Ltd (ASX: RRL)

This gold miner could be cheap according to analysts at Bell Potter.

In response to the company’s half year update, which was ahead of its expectations, the broker retained its buy rating and $2.60 price target. This implies over 50% upside from current levels.

The broker commented:

RRL is one of the largest ASX gold producers with an attractive all-Australian asset portfolio and organic growth options which are unique at this scale. RRL now offers unhedged exposure to the gold price and strong free cash flow growth over FY24 and FY25. These attributes also make RRL an appealing corporate target in the current M&A environment. Our NPV-based valuation is unchanged at $2.60/sh and we retain our Buy recommendation.

Universal Store Holdings Ltd (ASX: UNI)

This youth fashion retailer could be another cheap ASX share to buy according to analysts at Morgans.

In response to its strong half-year update, the broker has retained its add rating with an improved price target of $5.65. This would mean a return of 26% for investors. It commented:

UNI’s focus on offering high quality, fashionable apparel in a well presented store environment with high levels of service is paying off. Despite the challenges facing the consumer discretionary market, especially among the younger demographic, the 1H24 performance was highly resilient. Costs were well controlled and margins outperformed expectations, resulting in EBIT coming in 6% above forecast. The core youth consumer appears to be picking up. We have increased our FY24 EBIT estimate by 4% and reiterate our Add rating with an increased target price.

The post Are these top ASX shares dirt cheap and must-buys right now? appeared first on The Motley Fool Australia.

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More reading

• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today
• Here are 3 ASX retail shares moving up to 19% on half-year results today
• 5 things to watch on the ASX 200 on Tuesday
• 1 ASX dividend stock down 50% to buy in February
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has positions in Universal Store. 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.

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