Category: Stock Market

If you are in the process of building a retirement portfolio, then you may want to check out the quality ASX 200 shares listed below.

They have been named as buys and tipped to generate great returns for investors. Here’s what you need to know about them:

CSL Ltd (ASX: CSL)

The first ASX 200 retirement share that could be a top option for investors right now is CSL. It is a biotechnology giant with operations spanning plasma therapies, vaccines, and kidney disease treatments.

Morgans sees value in its shares at current levels and highlights that they are trading at a discount to long-term averages. The broker has an add rating and $315.35 price target on its shares. It commented:

While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.

And while Morgans’ price target isn’t far off now, it is worth noting that analysts at Macquarie are even more positive. They have an outperform rating and $330.00 price target on its shares. And with the broker tipping strong earnings growth over the coming years, it sees scope for its shares to rise to $500 within three years.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 share that could be a good option for a retirement portfolio is insurance giant QBE Insurance.

Goldman Sachs thinks highly of the company and feels that trading conditions are very favourable right now. So much so, it recently put a buy rating and $20.50 price target on its shares. This implies potential upside of 20% for investors over the next 12 months.

It believes that the company is well-placed thanks to the commercial rate cycle. It said:

QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encompassing Europe) and North America. We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

Another positive is that the broker is expecting QBE to provide investors with good dividend yields in the near term. It is forecasting yields of 5.25% in FY 2024 and then 5.6% in FY 2025.

The post 2 ASX 200 retirement shares to buy now appeared first on The Motley Fool Australia.

More reading

• CSL shares hit new 52-week high! What’s next?
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• ASX 200 re-writes history. Which companies are leading the charge?
• Buy these quality ASX dividend shares for passive income

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX stock Step One Clothing Ltd (ASX: STP) has all the factors needed to continue beating the market, in my eyes. I think the ASX dividend share could be an excellent investment opportunity.

Step One describes itself as a “leading direct-to-consumer online retailer for innerwear.” It offers an “exclusive range of high-quality, organically grown and certified, sustainable, and ethically manufactured innerwear that suits a broad range of body types.”

The Step One Clothing stock price has increased more than 40% in the year to date, as shown in the chart below. That compares to a rise of 5% for the S&P/ASX 200 Index (ASX: XJO) in 2024.

However, the business has dropped around 25% since 12 April 2024, making it significantly cheaper and giving investors an opportunity to invest at a much better valuation. Let’s explore.

Strong revenue growth

One of the main things that can drive a business significantly higher is the speed of revenue growth.

If its revenue can rise by more than 10% per year over the long term, it gives the earnings and share price a good chance of growing at a compound annual growth rate (CAGR) of at least 10% per year, too.

Step One Clothing reported in the FY24 first-half result that its total revenue increased by 25.5% to $45.1 million. It also added 182,000 new customers in the HY24 period.

One compelling thing about the business is that it’s delivering rapid growth in overseas markets.

Australia only saw 8.9% revenue growth to $26.2 million, but the United Kingdom experienced 38% revenue growth to $14.6 million, while United States revenue jumped 256% to $4.1 million.

There’s no guarantee it will continue ramping up sales in the UK and US in the short term, but the ASX dividend stock’s progress is very promising. It can expand into other countries like Canada in the future.

Improving profit margins

For a business to become successful, I believe it needs to grow more than just revenue. It should also grow profit.

It’s particularly beneficial for shareholders if profit margins can rise. Investors usually value businesses based on the profit generated, so if margins rise, then profit can soar faster than revenue.

The HY24 result saw the gross profit margin improve by 0.5 percentage points to 81.2%, and the earnings before interest, tax, depreciation and amortisation (EBITDA) margin improved by 1.7 percentage points to 22.5%.

While total HY24 revenue rose 25.5%, the net profit after tax (NPAT) increased by 34.7%, thanks to the NPAT margin improving by approximately 5.1 percentage points to 27%.

In my eyes, the company has a very promising future if margins keep increasing.

Excellent dividends

The company has been very generous to shareholders in terms of dividend payouts. In recent results, the ASX stock has provided shareholders with payments, which equate to a dividend payout ratio of 100%.

Step One Clothing said of the HY24 result:

The company’s funding level following this dividend distribution is deemed sufficient to support future expansion and ensure ongoing financial stability. The company is targeting a full year payout ratio of 100% of NPAT.

The dividend is fully franked to the maximum extent possible, demonstrating the board’s commitment to aligning the interests of its investors with the company’s financial success.

According to the forecasts on Commsec, at the current Step One share price, it could pay a grossed-up dividend yield of 6.4% in FY25 and 6.9% in FY26.

The post 1 market-beating, dividend-paying ASX stock that’s a steal right now appeared first on The Motley Fool Australia.

More reading

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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 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 BHP Group Ltd (ASX: BHP) share price will be on watch on Wednesday.

That’s because the mining giant has just released its fourth quarter update.

Let’s see how the Big Australian performed during the three months ended 30 June.

BHP share price on watch following Q4 update

BHP revealed that iron ore production came in at 69Mt for the fourth quarter. This was up 13% from the third quarter. This was driven by record monthly and quarterly production at WAIO as a result of the strong underlying performance at the mines and the benefits of Port Debottlenecking Project 1. This underpinned iron ore sales of 68.4Mt for the quarter.

For the full year, BHP’s iron ore production increased 1% to a record 260Mt. Sales for the year rose 3% to 260.7Mt with an average realised price of US$101.04 per wmt. This is up 9% from US$92.54 per wmt in FY 2023.

Also growing quarter on quarter was BHP’s copper production. It reported production of 505kt, which was an 8% increase from the third quarter. This reflects higher concentrator grade and throughput at Escondida and record production at Carrapateena following the commissioning of Crusher 2 in the previous quarter.

For FY 2024, total copper production increased 9% to 1,865kt with an average realised price of US$3.98 per pound. The latter is up 8% year on year.

Elsewhere, metallurgical coal and energy coal production was down 18% and 10%, respectively, for the quarter. This reflects divestments and unfavourable weather.

This ultimately led to metallurgical coal falling 23% year on year. Whereas energy coal production still rose 8% from FY 2023.

Finally, nickel production was up 22% in the fourth quarter and 2% in FY 2024.

Management commentary

BHP’s CEO, Mike Henry, was pleased with the way the miner finished the year. He said:

We finished the year with a strong fourth quarter, achieving several production records and we are meeting current production and unit cost guidance for all commodities. WAIO continued its strong performance, delivering a second consecutive year of record production on the back of ongoing incremental improvements along its supply chain as we progress toward our medium-term goal of increasing production to greater than 305 Mtpa.

We achieved a strong performance across our copper business globally, underpinned by the highest production in four years at Escondida and another year of record production from Spence in Chile. Successful integration at Copper South Australia has delivered additional production tonnes, and exceeded the annualised synergies planned at the time of the OZL acquisition.

FY 2025 guidance

BHP sees potential for another record year of iron ore production in FY 2025. It is forecasting production of 255Mt to 265.5Mt.

In addition, copper production could be set for an increase in FY 2025. BHP is guiding to production between 1,845kt to 2,045kt.

The BHP share price is down 5% over the last 12 months.

The post BHP share price on watch after record-breaking FY24 iron ore production appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• No savings? I’d use the Warren Buffett method to earn lifelong passive income with ASX shares
• Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?
• BHP share price marching higher amid legal cost sharing agreement with Vale
• It’s official, Aussies are getting richer! Here’s how

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.

If you are on the lookout for new income portfolio additions, then read on.

That’s because listed below are four ASX dividend stocks that analysts believe could be quality picks for investors this month. Here’s what they are expecting from them:

Aurizon Holdings Ltd (ASX: AZJ)

Over at Ord Minnett, its analysts think that Aurizon could be an ASX dividend stock to buy.

It is a rail freight operator that transports a range of commodities, including mining, agricultural, industrial and retail products across a network spanning thousands of kilometres.

Ord Minnett expects this network to support partially franked dividends of 18.6 cents per share in FY 2024 and then 24.4 cents per share in FY 2025. Based on the current Aurizon share price of $3.66, this will mean dividend yields of 5.1% and 6.7%, respectively.

Ord Minnett has an accumulate rating and $4.70 price target on its shares.

Inghams Group Ltd (ASX: ING)

Analysts at Morgans think that Inghams could be an ASX dividend stock to buy. It is Australia’s leading poultry producer and supplier.

It likes the company due to its leadership position and attractive valuation. It also expects some great yields from its shares in the near term. Morgans is forecasting fully franked dividends of 22 cents per share in FY 2024 and FY 2025. Based on the current Inghams share price of $3.62, this will mean dividend yields of 6.1%.

Morgans has an add rating and $4.25 price target on its shares.

Telstra Group Ltd (ASX: TLS)

The team at Goldman Sachs thinks this telco giant could be a top ASX dividend stock to buy right now.

Especially after the company increased its mobile plans. The broker believes its mobile business will underpin low risk earnings and dividend growth in the coming years.

In respect to the latter, Goldman is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $4.30 price target on Telstra’s shares.

Transurban Group (ASX: TCL)

Finally, analysts at Citi think that Transurban could be an ASX dividend stock to buy.

It builds and operates toll roads in Australia and North America. Among its portfolio are CityLink in Melbourne and the Eastern Distributor in Sydney.

Thanks partly to its positive exposure to inflation, the broker is expecting Transurban to be in a position to pay dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.94, this will mean yields of 4.9% and 5%, respectively.

Citi has a buy rating and $15.50 price target on its shares.

The post Buy Telstra and these ASX dividend stocks this week appeared first on The Motley Fool Australia.

More reading

• Here is the earnings forecast out to FY28 for Telstra shares
• Why analysts rate these ASX dividend shares as buys
• Top brokers name 3 ASX shares to buy next week
• Buy Coles and these ASX 200 dividend stocks in July
• Why I keep buying shares of this 5%-yielding ASX dividend stock

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 and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) shares were out of form on Tuesday. The mining giant’s shares tumbled 2.5% to $116.81.

Investors were hitting the sell button in response to a second quarter update which fell short of the market’s expectations.

Has this created a buying opportunity for investors? Let’s see what analysts at Goldman Sachs are saying about the miner.

What is the broker saying?

Goldman highlights that Rio Tinto’s update was a touch on the mixed side with positives and negatives. It commented:

RIO reported Pilbara iron ore shipments of 80.3Mt, ahead of GSe (+2%) but in line with consensus. IOC production missed by c.15% (2.2Mt) on lower mining rates and maintenance; regional wildfires are likely to impact 3Q volumes. Pilbara 1H’24 realised price of US$105.8/t was lower than GSe at US$106.5/t. Pilbara cash cost guidance is unchanged at US$21.75-23.5/t (GSe US$23.3/t) with June H costs expected to be above the top end due to lower 1H volumes.

The good news is that the broker still believes that Rio Tinto can achieve its guidance for the full year. It adds:

For RIO to hit the midpoint of Pilbara shipments guidance of 323-338Mt (GSe 331Mt), a 2H run-rate of 345Mtpa is required, which we believe is achievable.

Are Rio Tinto shares a buy?

In response to the update, Goldman has reaffirmed its buy rating with a trimmed price target of $136.10. Based on its current share price of $116.81, this implies potential upside of 16.5% for Rio Tinto’s shares over the next 12 months.

In addition, the broker is expecting dividend yields of approximately 5.5% in both FY 2024 and FY 2025, which boosts the total potential 12-month return to approximately 22%.

Goldman continues to believe that its shares are good value compared to peers. It said:

Compelling relative valuation: trading at c. ~0.8x NAV (A$144.0/sh) vs. peers (BHP ~0.9x NAV and FMG ~1.3x NAV) and c. ~5.5x NTM EBITDA at GSe base case, below the historical average of ~6-7x. 2.

It also highlights its attractive free cash flow (FCF) and dividend yield. The broker adds:

FCF/dividend yield in 2024E (c. 6%/6% yield) & 2025E (c. 7%/6% yield) driven by our bullish view on aluminium and copper in 2H24 (~30% of group EBITDA in 2024 increasing to 45-50% by 2026) and constructive view on iron ore.

And finally, Goldman likes Rio Tinto due to its production growth potential. It explains:

RIO is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~4-7% in 2025 & 2026 driven by the ramp-up of the Oyu Tolgoi UG copper mine & a recovery at Escondida and Bingham, higher Pilbara Fe shipments with the ramp-up of new mines, and a rebound in aluminium production + the acquisition of Matalco.

The post Should you buy Rio Tinto shares after the miner’s update? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?
• Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping
• Rio Tinto shares fall on soft second quarter update
• 5 things to watch on the ASX 200 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 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.

Yesterday’s ASX session was a fairly muted one for investors. Tuesday saw the All Ordinaries (ASX: XAO) Index lose 0.23% of its value to finish at 8,243.3 points. But it was a far more dramatic day for DroneShield Ltd (ASX: DRO) stock.

Droneshield shares started the day by printing yet another new record high of $2.72 a share. But that was in the first minutes of trading, and it was all downhill from there. By mid-afternoon, the company had seemingly inexplicably lost more than 30% of its value. Droneshield even got down to $1.79 a share at one point.

The stock was suspended from trading for a couple of hours but returned to trading about an hour before the closing bell. When said bell rang, the company closed at $2.02 a share, down a horrid 22.31% for the day.

As we covered at the time, it was initially hard to see what was going on with Droneshield stock. There wasn’t any news or announcements from the company we could point to.

So it was speculated this was just a severe case of everyone trying to take their money off the table at once.

After all, this was a stock that was up by more than 615% year to date at one point yesterday. The company was also up almost 80% over just the preceding month.

But now that the dust has settled somewhat, we have a clearer picture of what went on during Tuesday’s trading session.

What on earth happened to DroneShield stock on Tuesday?

Naturally, after yesterday’s unexpected stock price plunge, Droneshield was sent a ‘please explain’ share price query by the ASX after its shares were temporarily halted from trading.

When asked to give its best explanation for what went on yesterday afternoon, Droneshield pointed the finger at an article that was released, discussing its shares. This article, the company asserted, included the following:

• Share price performance over the recent period;

• Comparison of DRO’s market cap to several large companies across different industries in the Australian market;

• Statements by two fund managers on their opinion of DRO’s valuation being overheated;

• Statements from two stock analysts on their outlook for DRO;

• Brief summary of DRO’s business;

• Reference to DRO being a popularly traded stock on several broker platforms; and

• A historical sale of DRO’s shares held by one of DRO’s Directors’, Jethro Marks.

The company also told investors that “There is no new information or change of circumstance around the business”. It also affirmed it was complying with all ASX listing rules.

What’s next?

Given the rather unusual and unexpected nature of yesterday’s events, we’ll only know how investors will react when the market opens today. It’s arguably possible that we’ll see a big rise upward for Droneshield stock. But then again, it’s equally possible that there will be another sell-off, or not much movement at all.

It is worth noting that Droneshield shares were still being heavily sold when they returned to trading yesterday afternoon after the company had made its case. But it’s unclear how investors will react today after everyone has had a breather. We’ll soon find out.

The post What’s next for Droneshield stock after Tuesday’s 22% drop appeared first on The Motley Fool Australia.

More reading

• Big ASX news! DroneShield share price crashes 31%
• Top 10 most traded ASX shares and US stocks in June
• Are ASX small-cap shares back in vogue amid a big shift?
• Would I be crazy to buy DroneShield shares now at over $2?
• 3 ASX small-cap shares that soared 250% to 675% in FY24

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 DroneShield. 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.

If you’re looking for some tech sector exposure, then you may want to check out these two stocks in this article.

That’s because analysts at Bell Potter have just named them as ASX tech stocks to buy. Here’s what the broker is saying about them:

Hub24 Ltd (ASX: HUB)

The first ASX tech stock that Bell Potter is bullish on is Hub24. It is an investment platform provider with $84.4 billion of funds under administration (FUA).

Bell Potter has been impressed with the company’s growth in FY 2024 and believes it is well-positioned to continue this positive trend in the coming years. In light of this, it feels its shares are undervalued at current levels. It said:

We reiterate our Buy recommendation. HUB looks cheap relative to other high growth specialist platforms and the outlook for principal net flows should underpin incremental earnings growth. Our preference is predicated on a large exposure to superannuation assets. Delivering on complex integrations is another tick in our view.

Bell Potter has a buy rating and $53.20 price target on its shares. This implies potential upside of 14% for investors from current levels.

Integrated Research Limited (ASX: IRI)

Another ASX tech stock that could be a buy according to Bell Potter is experience management solutions provider Integrated Research.

It designs, develops, implements, and sells solutions that optimise business-critical systems. This provides insights, monitoring, and support to keep payment hubs, unified communications ecosystems, and contact centres running as they should.

Bell Potter was pleased with the company’s performance during the second half and notes that management now expects to hit the upper end of its guidance range for revenue and earnings. This has ultimately boosted the broker’s confidence in the tech stock’s outlook and underpinned an increase in its valuation. It said:

We have updated each valuation used in the determination of our price target for the forecast changes and also rolled forward the DCF by a year. We have also increased the multiples we apply in the PE ratio and EV/EBITDA valuations from 9.5x and 7.25x to 10.5x and 7.75x and also reduced the WACC we apply in the DCF from 10.2% to 9.7% due to the strong FY24 result and relatively positive outlook.

Bell Potter has put a buy rating and $1.05 price target on the company’s shares. Based on its current share price of 90 cents, this suggests that upside of 17% is possible over the next 12 months.

The post 2 ASX tech stocks to buy now: Broker appeared first on The Motley Fool Australia.

More reading

• Why EOS, Hub24, Integrated Research, and Kingsgate shares are pushing higher
• Up 80% in a year, why is this ASX 200 stock hitting a record high today?
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• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?
• Buy this ASX tech stock with a $600b opportunity

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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pilbara Minerals Ltd (ASX: PLS) shares will be on watch next week.

That’s because the lithium giant is scheduled to release its highly anticipated quarterly update on 24 July.

Ahead of the release of the update, let’s take a look at what the market is expecting from the miner when it hands down its report card.

What should you expect?

According to a note out of Goldman Sachs, its analysts are expecting Pilbara Minerals to report stronger than expected spodumene production for the three months ended 30 June.

It is forecasting production of 194,000dmt, which is up 10.2% quarter on quarter and 19% on the prior corresponding period.

Whereas the consensus estimate is for a smaller increase in production to 184,000dmt for the fourth quarter.

What about sales?

Goldman is expecting Pilbara Minerals’ spodumene sales to also come in ahead of expectations. It is forecasting sales of 209,000dmt, compared to the consensus estimate of 190,000dmt.

However, the broker believes this will be achieved with a realised spodumene price of US$923 per tonne. This is short of the consensus estimate of US$961 per tonne. It is also down 71.7% from US$3,256 per tonne a year earlier.

Still profitable

Despite the collapse in lithium prices, Goldman expects Pilbara Minerals’ operations to remain profitable. The broker has pencilled in unit cash costs (including freight and royalties) of US$489 per tonne. This will be down from US$519 per tonne in the previous quarter.

At the end of the quarter, the broker expects this to leave Pilbara Minerals with a cash balance of US$1,299 million.

Should you buy Pilbara Minerals shares?

Despite its relatively positive view on the company’s operations, Goldman Sachs isn’t recommending Pilbara Minerals shares as a buy.

It currently has a sell rating and $2.60 price target on its shares. Based on its current share price of $3.00, this implies potential downside of approximately 14% for investors over the next 12 months.

It recently commented:

We see near-term FCF continuing to decline on lithium prices and increasing growth spend (c. -10% FCF yield in FY24E, and c.0% in FY25-27E). Overall, we see PLS spending ~A$0.85bn on P1400, taking total capex spend from FY24E to FY28E on current and P1400 expansions to ~A$3bn, ~A$0.9bn ahead of consensus which already prices further expansion. Furthermore, we see PLS’ net cash declining to ~A$0.8-0.9bn (though still a relatively strong position vs. some peers and defensive into a declining lithium price), where with the stock trading at ~1.2x NAV (peer average ~1.05x), or pricing ~US$1,300/t spodumene (including a nominal value of A$1.1bn for growth) vs. peers at ~US$1,210/t (lithium pure-plays ~US$1,110/t; GSe US$1,150/t LT real), we see PLS as relatively expensive on fundamentals.

The post Own Pilbara Minerals shares? Here’s what to expect from next week’s Q4 update appeared first on The Motley Fool Australia.

More reading

• 5 ways ASX shares investors define financial success
• Here’s the lithium price forecast through to 2027
• Are AGL or Pilbara Minerals shares a better buy?
• Top 10 most traded ASX shares and US stocks in June
• These are the 10 most shorted 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.

Looking to boost your income portfolio with some good dividend yields? If you are, then check out the buy-rated ASX dividend shares listed below.

They have been named as buys and tipped to provide income investors with yields of X to Y. Here’s what you need to know about them:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX dividend share that could be a buy is HealthCo Healthcare & Wellness REIT.

It is a real estate investment trust with a mandate to invest in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness property assets.

Bell Potter is a big fan and highlights its “significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.”

In the near term, the broker is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.15, this will mean dividend yields of 7% and 7.2%, respectively.

Bell Potter currently has a buy rating and $1.50 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that could be a buy this week is IPH. It is an intellectual property solutions company with operations across the world.

Analysts at Goldman Sachs are tipping its shares as a buy. The broker believes IPH is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.”

It expects this to underpin fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. Based on the current IPH share price of $6.15, this represents yields of 5.5% and 6%, respectively.

Goldman currently has a buy rating and $8.70 price target on IPH’s shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be a great pick for income investors is Universal Store. It is a youth fashion retailer that operates the Universal Store, Thrills, and Perfect Stranger store brands.

Morgans thinks it would be a top option for investors. It likes the retailer due to its belief that its “growth opportunities are in place” and that “customers continue to respond well to the Universal Store banner.”

In respect to dividends, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $5.19, this will mean yields of 5% and 5.6%, respectively.

The broker currently has an add rating and $6.50 price target on its shares.

The post Buy these ASX dividend shares with 5% to 7% yields appeared first on The Motley Fool Australia.

More reading

• Why brokers say these ASX income stocks are top buys
• Top high-yield ASX shares to buy in July 2024
• 3 high-yield ASX dividend shares to supercharge your passive income stream
• Very big dividend yields are expected from these ASX stocks
• Buy these ASX dividend shares for 5% to 7% yields

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 recommended IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ran out of steam and dropped into the red. The benchmark index fell 0.2% to 7,999.3 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rebound

It looks set to be a better day for the Australian share market on Wednesday thanks to a positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.65% higher. On Wall Street, the Dow Jones was up 1.8%, the S&P 500 rose 0.65% and the Nasdaq climbed 0.2%. The Dow Jones had its best session in over a year.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.25% to US$80.88 a barrel and the Brent crude oil price is down 1.2% to US$83.84 a barrel. Chinese demand concerns put pressure on oil prices.

BHP Q4 update

BHP Group Ltd (ASX: BHP) shares will be on watch today when the mining giant releases its fourth quarter update. The market is expecting the Big Australian to report iron ore shipments of 74.9Mt for the three months with a realised iron ore price of US$101 per tonne. The consensus estimate for copper production is 470kt with a realised price of US$4.05 per tonne. And nickel production is expected to come in at 4.9Mt for the quarter.

Gold price surges to record high

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session after the gold price surged to a record high overnight. According to CNBC, the spot gold price is up 1.7% to US$2,470.7 an ounce. This has been driven by hopes that the US Federal Reserve will cut rates soon.

Buy Rio Tinto shares

The Rio Tinto Ltd (ASX: RIO) share price could be good value according to analysts at Goldman Sachs. In response to the mining giant’s quarterly update, the broker has retained its buy rating with a trimmed price target of $136.10. It said: “Compelling relative valuation: trading at c. ~0.8x NAV (A$144.0/sh) vs. peers (BHP ~0.9x NAV and FMG ~1.3x NAV) and c. ~5.5x NTM EBITDA at GSe base case, below the historical average of ~6-7x.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• No savings? I’d use the Warren Buffett method to earn lifelong passive income with ASX shares
• Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?
• Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping
• Rio Tinto shares fall on soft second quarter update

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.