Category: Stock Market

The Transurban Group (ASX: TCL) share price is edging higher on Thursday.

Shares in the S&P/ASX 200 Index (ASX: XJO) toll road developer and operator closed yesterday trading for $13.32. In morning trade on Thursday, shares are swapping hands for $13.33, up 0.1%.

For some context, the ASX 200 is up 0.3% at this same time.

This comes following the release of Transurban’s half-year financial results for the six months ending 31 December 1H FY 2024.

Here are the highlights.

Transurban share price gains on revenue increase

• Average Daily Traffic (ADT) increased 2.1% year on year to 2.5 million trips
• Proportional toll revenue increased 6.3% from 1H FY 2023 to $1.76 billion
• Proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $1.33 billion
• Interim unfranked dividend of 30 cents per share, up 13% from the FY 2023 interim dividend

What else happened during the half year?

Transurban noted that the 2.1% increase in traffic over the half year was driven by growth in all its operational regions, along with the opening of new assets.

Sydney’s Rozelle Interchange opened to vehicles in November. The company said the opening of the interchange completed the final piece of WestConnex.

The Transurban share price is in the green this morning, with the company noting that it managed to keep its operational cost growth at 1.7%. That ran below inflation, meaning that in real terms costs fell.

As at 31 December, Transurban had around $3.4 billion in corporate liquidity. 94.6% of its debt book was hedged.

What did Transurban management say?

Commenting on the update seeing the Transurban share price in the green today, CEO Michelle Jablko said the solid traffic result “combined with disciplined operational and financial cost management, has underpinned the financial performance seen in the first half of FY24”.

Jablko added:

Traffic in Brisbane has continued to grow, well supported by net migration. North America saw improved traffic performance, benefitting from return to office trends. Higher congestion and the time savings offered to our customers resulted in increased average toll prices, further complemented by additional access points opening on the Fredericksburg Extension.

She said that during the half year the company had been working with Google “to provide greater transparency on Google Maps in Australia, further empowering our customers to make informed travel choices”.

What’s next for Transurban?

Looking at what could impact the Transurban share price in the months ahead, the company maintained its FY 2024 dividend guidance at 62 cents per share. That’s up 7% from the full-year payout in FY 2023.

Transurban expects the dividend to include around 4 cents per share from WestConnex cash, which was previously held during construction.

“Longer term, we are well-positioned to deliver disciplined growth through existing opportunities, supporting the significant population growth that is forecast in key markets and emerging mobility trends,” Jablko said.

Transurban share price snapshot

The Transurban share price is down 5% since this time last year.

Shares in the ASX 200 toll road operator are up 13% since the recent lows on 31 October.

The post Transurban share price in the green amid 13% dividend boost appeared first on The Motley Fool Australia.

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• These ASX dividend stocks offer 20%+ total returns
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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 positions in and has recommended Transurban 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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Alliance Nickel Ltd (ASX: AXN) shares are on fire on Thursday.

In morning trade, the ASX mining stock is up a remarkable 83% to 5.5 cents.

Why is this ASX mining stock rocketing?

Investors have been scrambling to get hold of the nickel and critical minerals development company’s shares after it made a major announcement.

According to the release, the company has signed a non-binding term sheet with Samsung SDI for the future offtake of battery grade nickel and cobalt sulphate products from the NiWest Nickel-Cobalt Project in Western Australia.

Korea-based Samsung SDI is a world-leading battery and electronic material manufacturer aiming to redefine the worlds of electric vehicles, energy storage systems, and IT devices.

Subject to final negotiations of the definitive terms and conditions and satisfaction of customary conditions, it will enter into a binding offtake agreement with the ASX mining stock for an initial period of six years.

In addition, it was revealed that Samsung SDI and Alliance Nickel will discuss a potential acquisition by Samsung SDI of an equity interest in a project company to be formed by the latter that will hold the NiWest Project.

Management notes that this approach is consistent with its commercial strategy of aligning offtake agreements and project funding.

‘Delighted’

The ASX mining stock’s managing director and CEO, Paul Kopejtka, was delighted with the news. He said:

We are delighted to introduce Samsung SDI as a new potential long term strategic partner in the NiWest Project, particularly given the current challenging market conditions facing the critical minerals sector.

The term sheet is further validation of the credentials of the NiWest Project, its strategic significance to Tier-one automakers and battery manufacturers and the importance of the supply of specialty materials that comply with the US Inflation Reduction Act. Samsung SDI has an existing business relationship with our strategic partner and cornerstone investor Stellantis N.V. and we look forward to building a strong partnership as we move towards first production from NiWest.

The post Guess which ASX mining stock is surging 80% on deal with Samsung appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 stock is jumping on a 95% profit surge
• REA share price tumbles despite 22% profit jump
• AGL share price rockets 15% after half-year profit surge
• Cochlear shares jump 6% on guidance upgrade
• A boring ASX All Ords share offering an exciting 40% return

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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News Corporation (ASX: NWS) shares are popping on Thursday.

In morning trade, the ASX 200 media stock is up over 9% to a 52-week high of $43.10.

Why is this ASX 200 stock jumping?

Investors have been buying the media giant’s shares after it released its second quarter results. Here’s a summary of what the company reported:

• Quarterly revenue up 3% to US$2.59 billion
• Total EBITDA was up 15.6% to US$473 million
• Net income jumped 95% to US$183 million
• Adjusted earnings per share up 86% to 26 US cents

What happened during the quarter?

For the three months ended 31 December, the ASX 200 stock reported a 3% lift in revenue to US$2.59 billion.

This was driven primarily by higher Australian residential revenues at REA Group Ltd (ASX: REA), continued strong growth in the Dow Jones professional information business, increased digital sales, and improved returns due to better sell through of Book Publishing inventory.

Offsetting some of this growth were lower revenues at Move due to continued challenging housing market conditions in the U.S. and lower advertising revenues at the News Media segment.

On the bottom line, the ASX 200 stock posted a 95% jump in net income to US$183 million. This reflects lower costs at the Book Publishing segment, gross cost savings, and improved equity losses of affiliates.

Management commentary

News Corp chief executive, Robert Thomson, was pleased with the quarter. He said:

News Corp again saw growth in both revenue and profitability this quarter as we continue to realize the collective benefit of our strategic shift to digital and subscription revenues, and away from sometimes volatile advertising revenues. Our net income rose to $183 million from $94 million in the same quarter last year and our reported EPS was 27 cents, compared to 12 cents for the same period last year, driven by a 16% surge in Total Segment EBITDA. We had particularly robust results across the three core pillars of our business – Dow Jones, Book Publishing and Digital Real Estate Services – and believe there are strong prospects for further growth as difficult macro conditions ease in some of our markets.

Thomson also spoke about the rise of generative AI and the role that News Corp can play in it. He adds:

We expect to be a core content provider for Generative AI companies, who need the highest quality, timely content to ensure the relevance and accuracy of their products. We patently prefer negotiation to litigation, courtship to courtrooms. But let’s be clear, in my view those who repurpose without approval are stealing and are undermining the very act of creativity – counterfeiting is not creating, and the AI world is replete with content counterfeiters.

The post Guess which ASX 200 stock is jumping on a 95% profit surge 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 REA Group. The Motley Fool Australia has recommended REA 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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The REA Group Ltd (ASX: REA) share price is under pressure on Thursday.

In morning trade, the property listings company’s shares are down 4% to $176.17.

Investors have been X the company’s shares after it released its half-year results.

REA share price tumbles on half-year results

For the six months ended 31 December, REA reported:

• Revenue up 18% to $726 million
• Operating expenses up 11% $287 million
• EBITDA (excluding associates) up 22% to $439 million
• Net profit up 22% to $250 million
• Fully franked Interim dividend up 16% to $0.87 per share

What happened during the half?

REA had another strong half, delivering an 18% increase in revenue to $726 million for the period. This was driven by a 17% increase in Australia revenue to $682 million and a 21% lift in India revenue to $44 million.

In respect to its local operations, the company revealed that its flagship realestate.com.au website continues to dominate its market.

Approximately 10.6 million people visited each month on average, with 52% exclusively using realestate.com.au. In addition, it had 126.1 million average monthly visits, with visitors spending 3.0 times longer on realestate.com.au each month on average compared to the nearest competitor.

This helped support listings growth of 4% for the half nationally, with Sydney and Melbourne listings increasing 19% and 18%, respectively.

Failing to hold up the REA share price today was news that the company delivered positive jaws during the half despite the inflationary environment. Positive jaws is the term used to describe revenue growth quicker than costs.

REA’s operating expenses were up 11% to $287 million for that half. This increase was driven by remuneration increases, growth in technology costs and higher revenue-related variable costs. Excluding the impact of the CampaignAgent acquisition, group and Australia operating costs increased by only 9%.

This ultimately led to REA’s EBITDA and net profit increasing by an impressive 22% during the half, which allowed its board to boost its dividend by 16% to 87 cents per share.

Management commentary

REA Group CEO, Owen Wilson, was rightfully pleased with the half. He commented:

REA has delivered an outstanding result driven by strong yield growth and the benefit of a more normalised listings environment. This resulted in a strong uptake of our premium products as customers sought to leverage our leading audience to maximise their campaigns in the strengthening market. REA India’s momentum also continued with price and customer growth and new premium depth products delivering strong revenue growth.

How does this compare to expectations?

Goldman Sachs was pleased with the half, noting that it came in ahead of expectations. It commented:

Sales/EBITDA/NPAT +18%/+23%/+22% vs. pcp to A$726mn/A$426mn/A$250mn, which were +0%/+2%/+2% vs. GSe, with EBITDA +2% vs. Visible Alpha Consensus Data (A$415mn). With Dec-23 listings flat, the 3% deferral drag in the half was greater than expected, but this was offset by stronger Commercial/Developer revenue growth (+11%).

Outlook

Management is feeling positive about the second half but acknowledges that it could be softer.

It advised that Residential Buy yield growth is anticipated to be lower for the second half, because the first half outperformance of Melbourne and Sydney listings is unlikely to continue for the entire period.

In addition, it has lifted its cost guidance for FY 2024. This could be partly why the REA share price is falling today.

The company advised that “group operating cost growth in the mid to high-teens is anticipated in FY24, with positive operating jaws targeted.”

Wilson concludes:

We are very pleased with our first half result. The confidence that interest rates are at or very near the peak, should see the healthy market conditions we are enjoying today continue throughout 2024. We will continue to invest in further personalisation and new experiences for our audience, new products that will deliver further value for our customers and the increasing demands of consumers around privacy and data security.

The REA share price remains up over 40% since this time last year.

The post REA share price tumbles despite 22% profit jump appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
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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 REA Group. The Motley Fool Australia has recommended REA 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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The AGL Energy Limited (ASX: AGL) share price is on the move on Thursday.

In morning trade, the energy giant’s shares are up 15% to $9.16.

This follows the release of the company’s half-year results.

AGL share price rocket on stunning profit growth

Here’s a summary of how it performed for the six months ended 31 December:

• Revenue down 20.8% to $6,183 million
• Underlying profit after tax up 358.6% to $399 million
• Underlying earnings per share up 359.7% to 59.3 cents
• Interim dividend up 225% to 26 cents per share

What happened during the half?

As mentioned above, AGL’s revenue fell 20.8% to $6,183 million during the half. This reflects a 12.7% increase in Customer Markets revenue, which was offset by a 33% decline in Integrated Energy revenue.

But that couldn’t stop the company’s underlying profit after tax from increasing 358.6% to $399 million. Management advised that this reflects improved fleet availability and flexibility, more stable market conditions, and the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions.

Whereas in the prior corresponding period, the company battled with volatile energy market conditions and forced plant outages.

In addition, management notes that Trading and Origination Gas and Consumer gross margin also increased despite overall lower customer demand.

Overall, this allow AGL to declare an interim dividend of 26 cents per share, which is up from 8 cents per share a year earlier. It will be paid to shareholders next month on 22 March.

Management commentary

AGL’s managing director and CEO, Damien Nicks, was pleased with the half. He said:

Our first half result was driven by improved fleet availability and flexibility, more stable market conditions, along with the impact of higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions.

This improved result, compared with the challenges experienced in the first half of the prior year, which was impacted by volatile energy market conditions and forced plant outages, supports the ongoing investment in our transition. The increase in earnings from our well risk managed gas portfolio and customer business also contributed to this result, despite overall lower customer demand.

Outlook

Potentially giving the AGL share price an added boost today was its guidance for FY 2024. Management has narrow its guidance to towards the upper end of its previous range.

It expects underlying EBITDA between $2,025 million and $2,175 million (previously between $1,875 million and $2,175 million) and underlying net profit between $680 million and $780 million (previously between $580 million and $780 million).

The AGL share price is now up 15% over the last 12 months.

The post AGL share price rockets 15% after half-year profit surge appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
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• Is the AGL share price a buy before its half-year results drop?
• Buying AGL shares? Here’s how much you could receive in dividends in 2024
• ‘Oversold’: 2 beaten-up ASX 200 shares ready to be given a fair go

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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Cochlear Limited (ASX: COH) shares are on the move on Thursday morning.

At the time of writing, the hearing solutions company’s shares are up 6% to $310.00.

Why are Cochlear shares charging higher?

Investors have been fighting to get hold of the company’s shares today after it released an update on its guidance for FY 2024.

According to the release, Cochlear has had a stronger than expected first half for cochlear implant revenue and therefore believes it will now outperform its guidance over the full year.

As a reminder, Cochlear was guiding to underlying net profit of $355 million to $375 million for FY 2024.

However, today’s update reveals that it is now guiding to underlying net profit in the range of $385 million to $400 million, which will represent a 26% to 31% increase on FY 2023’s result.

First half update

While its results will be released in full later this month on 19 February, management has given investors a taste of what’s to come.

It advised that it expects to report a first half sales revenue increase of 25% (20% in constant currency) to $1,113 million with underlying net profit of $192 million.

Cochlear’s CEO and President, Dig Howitt, commented:

Cochlear implant trading conditions have been strong across the first half, with units growing 14%. We have maintained the market share gains made in FY23 and market growth has continued to be robust across both developed and emerging markets, as well as all age segments – children, adults and seniors. The key change to our expectations is that we now expect to achieve 10-15% growth in our cochlear implant units for FY24 compared to the high single-digit growth expected in August.

The post Cochlear shares jump 6% on guidance upgrade appeared first on The Motley Fool Australia.

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More reading

• Why is the Cochlear share price tumbling 5% on Tuesday?

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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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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ASX index funds are becoming an increasingly popular option for investors. Exchange-traded funds (ETFs) allow investors to buy a whole group of shares or assets in a single investment.

But, investors shouldn’t just buy something because it’s popular – that could mean chasing a crowd and being late to the party, which could result in losses if someone overpays.

There are many compelling factors to like ASX index funds, and I’m going to outline some of my preferred reasons to like them below.

Low management fees

One of the best reasons to like ASX index funds is how low the costs are. The fund providers aren’t trying to do extensive analysis, outperform the market or other things that result in costs.

Simply copying an index, like the S&P/ASX 200 Index (ASX: XJO) or S&P/ASX 300 Index (ASX: XKO), can be done very cheaply. Active fund managers might charge 1% per annum, whereas an option like Vanguard Australian Shares Index ETF (ASX: VAS) has an annual management fee of 0.07%.

Lowering fees can make a big difference to the long-term returns. If $1,000 is invested in an ASX ETF for 20 years and it makes 9% per annum it would grow to $6,009. If it rose by 10% per annum, it becomes $7,227. That’s 20.27% better overall, simply because of a slight difference in return/fees.

Diversification

A lot of ASX index funds which are based on broad-based indices can offer pleasing diversification. It’s good not to have all one’s eggs in the same basket. If an ASX ETF is invested in plenty of different assets and businesses, I think this can reduce the risk.

Some of the ETFs that offer strong diversification with excellent holdings include iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Passive investing

Some investments take a lot of management. I’d guess that a lot of people would prefer for their investments to take up as little time and mental effort as possible.

There’s no need to try to manage ASX ETFs – it’s simply being invested in a particular share market and tracking whatever happens.

I think ASX ETFs are much easier to manage than a residential property, a farm or other things.

Regularly changing portfolio

One of the main advantages, in my opinion, is that an ASX ETF’s portfolio is regularly changing.

Plenty of businesses fall by the wayside over time, and staying invested in those businesses would be to our portfolio’s detriment, in my opinion.

The fact that the ASX index fund portfolios change means they include the upcoming winners and ensures they can still be long-term investments as they sell down poor-performing investments.

Imagine if the VGS ETF was still invested in the businesses that were the biggest 30 or 40 years ago – it wouldn’t have done anywhere near as well as it has.

I think this is one of the best reasons why ASX ETFs can make solid long-term returns.

Good performance

Plenty of the good ASX ETFs have delivered good long-term returns, which would help investors grow their wealth.

Over the long term, the ASX share market and global share market have returned an average of around 10%.

If an investor were able to invest $1,000 per month into ASX index funds and the ASX ETF delivered an average return per annum of 10%, it would turn into $687,000 in 20 years.

I think investing in ASX index funds can be a very useful wealth-building activity.

The post 5 reasons to buy an ASX index fund today appeared first on The Motley Fool Australia.

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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 iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Often investors think that they have to invest in an exciting tech stock for mega returns.

But that isn’t always the case. In fact, sometimes even boring ASX All Ords shares can deliver the goods for investors.

For example, Bell Potter believes that Australian beef company Australian Agricultural Company Ltd (ASX: AAC) could generate huge returns for investors.

It owns and operates Australia’s largest cattle herd with around 433,000 head spread over its properties across Queensland and the Northern Territory.

Why buy this ASX All Ords share?

Bell Potter believes that the company’s shares are thoroughly undervalued at the current level.

Particularly given that since reporting its latest results, its analysts “have witnessed a sharp upward movement in cattle market indicators.”

This bodes well for the company and has led to the broker increasing its earnings estimates for the near term. It said:

Operating EBITDA upgrades of +1% in FY24e, +24% in FY25e and +2% in FY26e.

In response to this, the broker has retained its buy rating and lifted its price target on the ASX All Ords share to $2.00 (from $1.90 perviously).

Based on its latest share price, this implies potential upside of approximately 42% for investors over the next 12 months.

The broker highlights that Australian Agricultural Company’s shares are trading at a deep discount to net asset value (NAV). It explains:

Our Buy rating is unchanged. Cattle prices have rebounded strongly and US meat pricing indicators remain fairly firm. AAC has not benefited from the same recovery in its share price to date and continues to trade at a material 40% discount to 1H24 NAV, despite a 50% rally in the heavy steer indicator and an 87% rally in the EYCI post balance date.

The post A boring ASX All Ords share offering an exciting 40% return 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 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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Passive income is a really appealing way of receiving investment returns. We don’t need to do anything as the pleasing payments keep rolling in every six (or three) months. ASX shares in particular are a great way to potentially get a resilient 5% passive income return.

I think investors who want yield should pay closer attention to ASX dividend shares because savings options are starting to reduce their payout. For example, a number of financial institutions recently cut their term deposit rates.

One of the most appealing things about investing in income-paying businesses is that they can pay an appealing yield this year and deliver growth for the next year because they are regularly investing to grow the business to make more profit.

It can be tricky to find businesses that provide a mixture of good yield and predictable dividends. But, there are a couple I’ll point to: global pathology ASX share Sonic Healthcare Ltd (ASX: SHL) and energy infrastructure business APA Group (ASX: APA).

Here are three things I really want to tell you about both businesses.

Passive income yield and growth

I’m going to tell you about two ASX dividend shares that, between them, could pay an average dividend yield of 5% in FY24.

On Commsec, the projection is that Sonic Healthcare could pay an annual dividend per share of $1.07, which would translate into a grossed-up dividend yield of 4.8%. It has grown its annual dividend each year since 2013 and the board has a “progressive dividend policy”.

APA is expected to pay a distribution per security of 56 cents in FY24, which would translate into an FY24 distribution yield of 6.7%. It has grown its distribution each year since 2004. That’ll be 20 years of consecutive growth if it grows this year.

If an equal amount is invested in both, the average yield would be 5.75% if the forecasts become a reality.

Organic growth

For me, it’s essential that an ASX share’s core business is delivering decent growth. That helps protect against competition, it can offset long-term inflation and it can fund bigger passive income payouts to shareholders.

APA owns a large network of gas pipelines, transporting half of the country’s gas usage. A large majority of its revenue is linked to inflation, so this inflationary period has led to pleasing revenue growth for the business.

Sonic Healthcare’s core business is also seeing pleasing growth – in the first four months of FY24, it saw organic revenue growth of 7%. It can benefit from tailwinds like an ageing population and an increasing population.  

Investing in growth

These two ASX dividend shares are putting a lot of money towards expanding and diversifying their earnings.

APA continues to expand its pipeline network to new places, which can enable stronger cash flow. It’s also investing in renewable energy and electricity transmission. The business is also exploring the possibility of using hydrogen in its pipes.

Sonic Healthcare is looking to use technology developments to help its operations. It’s looking at microbiome testing and also investing in developing AI. The business is expanding geographically through acquisitions, with a recent focus on Germany and Switzerland.  

The post Here’s how I think you can make a predictable 5% in passive income in 2024 appeared first on The Motley Fool Australia.

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More reading

• Beginner investors: 5 top Aussie stocks I’d buy for 2024
• The 3 best ASX dividend shares for 2024
• 2 defensive ASX income shares I think investors should consider buying for bumper returns!
• This 5%-yielding ASX 200 dividend giant looks like a hidden gem to me
• 3 ASX shares I think are ready for dividend hikes in 2024

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. 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.

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If you’re an income investor on the lookout for some new dividend options, then read on!

That’s because analysts are tipping the three ASX dividend stocks as buys with attractive dividend yields.

Here’s what you need to know:

Accent Group Ltd (ASX: AX1)

Accent could be an ASX dividend stock to buy according to analysts at Bell Potter.

The broker likes the footwear retailer due to its strong market position and its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

Bell Potter has a buy rating and $2.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of 11.8 cents in FY 2024 and then 13.7 cents in FY 2025. Based on the latest Accent share price of $2.11, this represents dividend yields of 5.6% and 6.5%, respectively.

ANZ Group Holdings Ltd (ASX: ANZ)

Goldman Sachs thinks that this banking giant could be an ASX dividend stock to buy right now.

It continues to prefer ANZ due largely to “the improving profitability of its Institutional business.” It also sees “further upside risk to ANZ Group returns from mix shifts in its Institutional division.”

Goldman currently has a buy rating and $27.85 price target on its shares.

In respect to income, Goldman is forecasting fully franked dividends per share of $1.62 in both FY 2024 and FY 2025. Based on the current ANZ share price of $27.42, this will mean dividend yields of 5.9%.

Super Retail Group Ltd (ASX: SUL)

A final ASX dividend stock that has been given the thumbs up by analysts is Super Retail.

It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands.

Citi is feeling very positive about the retailer and feels that the market underestimates its earnings potential. The broker has a buy rating and $19.00 price target on its shares.

It also expects some attractive yields from the retailer. It has pencilled in fully franked dividends per share of 82.5 cents in FY 2024 and then 93.5 cents in FY 2025. Based on the latest Super Retail share price of $15.87, this will mean good yields of 5.2% and 5.9%, respectively.

The post Buy ANZ and these ASX dividend stocks now appeared first on The Motley Fool Australia.

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More reading

• Better ASX bank buy: ANZ or NAB shares?
• ASX news: ANZ share price hits new 52-week high
• Want to buy ASX 200 bank shares? You need to read this
• 3 ASX dividend shares for income investors to buy now
• 1 ASX dividend giant I’d buy before ANZ shares for February onwards

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Accent 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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