Category: Stock Market

Fortunately for income investors, there are plenty of ASX dividend shares for them to choose from on the Australian share market.

But which ones could be top options for investors in July?

Let’s take a look at four top dividend shares that analysts are tipping as buys. They are as follows:

APA Group (ASX: APA)

APA Group could be an ASX dividend share to buy. It is an energy infrastructure company that owns, manages, and operates a portfolio of gas, electricity, solar and wind assets.

Macquarie sees its shares as a buy. The broker currently has an outperform rating and $9.40 price target on them.

As for dividends, the broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $7.99, this equates to 7% and 7.2% dividend yields, respectively.

Charter Hall Retail REIT (ASX: CQR)

Citi thinks that the Charter Hall Retail REIT could be an ASX dividend share to buy. It is a property company focusing on supermarket-anchored neighbourhood and sub-regional shopping centres.

The broker has a buy rating and $4.00 price target on its shares.

Citi expects inflation-linked rental increases to underpin dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.25, this will mean very large yields of 8.6%.

Rio Tinto Ltd (ASX: RIO)

Analysts at Goldman Sachs think Rio Tinto could be a top option for income investors. It likes the mining giant due to its “compelling relative valuation” and its forecast for “strong production growth in 2024 & 2025.”

The broker has a buy rating and $138.90 price target on the miner’s shares.

Goldman expects fully franked dividends per share of US$4.29 (A$6.41) in FY 2024 and then US$4.55 (A$6.80) in FY 2025. Based on the latest Rio Tinto share price of $119.00, this will mean yields of approximately 5.4% and 5.7%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share that could be a buy in July is youth fashion retailer Universal Store.

Bell Potter is feeling bullish about the company and recently put a buy rating and $6.15 price target on its shares.

It is forecasting fully franked dividends per share of 24 cents in FY 2024 and then 31 cents in FY 2025. Based on its current share price of $4.97, this will mean yields of 4.8% and 6.2%, respectively.

The post Buy Rio Tinto and these ASX dividend shares in July appeared first on The Motley Fool Australia.

More reading

• Forget term deposits and buy these ASX dividend shares
• Brokers name 3 ASX dividend stocks to buy
• Could this move unlock $40 billion for Rio Tinto shares?
• Brokers name 3 ASX shares to buy now
• Here are 3 ASX retirement shares to buy in July

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a relatively positive note. The benchmark index rose 0.1% to 7,767.5 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Monday following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.45% lower. In the United States, the Dow Jones was down 0.1%, the S&P 500 was 0.4% lower, and the Nasdaq dropped 0.7%.

Oil prices soften

It looks like ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.25% to US$81.54 a barrel and the Brent crude oil price was down 0.3% to US$85.00 a barrel. This couldn’t stop US crude oil from recording its third weekly gain amid rising tensions in the Middle East.

Buy TechnologyOne shares

Goldman Sachs thinks that TechnologyOne Ltd (ASX: TNE) shares are in the buy zone right now. After looking at the enterprise software provider’s opportunity in the UK market, the broker has reiterated its buy rating with an improved price target of $19.70 (from $18.85). It said: “The UK addressable market is 2-3x ANZ, with minimal current penetration (<1% wallet share) and a similar competitive dynamic to ANZ, creating a significant long-term growth runway for TNE.”

Gold price edges higher

It could be a relatively positive start to the week for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher on Friday. According to CNBC, the spot gold price was up 0.1% to US$2,339.6 an ounce. This was driven by rate cut optimism after US inflation came in as expected.

IGO’s lithium dividend

IGO Ltd (ASX: IGO) shares will be on watch today after the battery materials miner released an update on its lithium business. According to the release, the company has received $159.3 million in dividend payments from Tianqi Lithium Energy Australia (TLEA) for the June 2024 quarter. This brings total dividends received from TLEA during FY 2024 to $761.4 million. IGO CEO, Ivan Vella, commented: “The substantial dividend IGO has received from TLEA during FY24, during a period of heightened market volatility and complexity, is testament to the value our lithium business can generate through the cycle.”

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

More reading

• 3 fantastic ASX growth shares to buy in July
• Retirement planning guide: 710,000 Aussies to retire over next 5 years
• These were the five worst ASX 200 shares to own in FY24
• Here’s how the ASX 200 market sectors stacked up last week
• These were the best performing ASX 200 shares in June

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

Happy new financial year!

If, like many investors, you took the end of FY24 as an opportunity to shake up your ASX share portfolio, you may now be looking to fill some holes in it.

Whether you cashed in some gains, offloaded a loser or two, or are simply looking to further diversify, right now could be the perfect time to usher in a few new investments.

We asked our Foolish writers which ASX shares they think deserve pride of place in your portfolio in FY25 and beyond.

Here is what they came up with:

7 best ASX shares for July 2024 (smallest to largest)

• Betashares Global Uranium ETF (ASX: URNM), $130.96 million
• Step One Clothing Ltd (ASX: STP), $253.92 million
• PWR Holdings Ltd (ASX: PWH), $1.10 billion
• Corporate Travel Management Ltd (ASX: CTD), $1.94 billion
• Betashares Nasdaq 100 ETF (ASX: NDQ), $4.95 billion
• Transurban Group (ASX: TCL), $38.34 billion
• ResMed Inc (ASX: RMD), $42.75 billion

(Market capitalisations as of market close 28 June 2024).

Why our Foolish writers love these ASX stocks

Betashares Global Uranium ETF

What it does: URNM is intended to track the performance of a basket of Australian and international uranium miners. The ETF provides instant diversification with exposure to 38 leading uranium producers across the globe.

By Bernd Struben: I believe the nuclear renaissance sweeping across the world is still in its early days. If that proves true, then this uranium-focused ASX ETF is well-placed for long-term outperformance.

Aussie investors will recognise two of URNM’s top 10 holdings: Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE).

Over the past 12 months, the Betashares Global Uranium ETF has gained more than 54%. With shares having slipped 15% since late May, this could be an opportune entry point. The ETF paid out 40 cents per share in unfranked dividends in 2023.

Furthermore, it was only in December that 22 nations – including the United States, Japan, and France – pledged to triple their nuclear power capacity by 2050. And the US Government recently said it would invest up to US$900 million to accelerate the development of nuclear energy.

As with most commodities, it takes a lot of time to bring new uranium mines into production. And with demand looking like it will keep rising sharply, I expect uranium supplies will be playing catchup for some years yet.

Motley Fool contributor Bernd Struben does not own units of the Betashares Global Uranium ETF.

Step One Clothing Ltd

What it does: Step One Clothing is a direct-to-consumer online retailer of underwear. According to the company, it offers “high quality, organically grown and certified, sustainable, and ethically manufactured innerwear”. It has a presence in Australia, the United Kingdom, and the United States.

By Tristan Harrison: The Step One Clothing share price has dropped by around 25% since 12 April 2024, making it look pretty cheap to me.

The business is gaining traction across its core markets – in the FY24 first-half period, total revenue rose 25.5% to $45 million, with 8.9% growth in Australia, 38% growth in the UK, and 256% growth in the US.

The HY24 result also delivered rising profit margins, which is a great sign for future profit growth as revenue builds. The company’s gross profit margin increased 0.5 percentage points to 81.2% and its earnings before interest, tax, depreciation, and amortisation (EBITDA) margin increased 1.7 percentage points to 22.5%. Net profit after tax (NPAT) rose by 34.7% to $7.1 million.

If Step One can grow its presence in the UK and the US, including expanding the distribution of its women’s lines, then I think the company’s future is very bright.

According to Commsec estimates, the Step One share price is valued at 21x FY25’s estimated earnings and it could pay a grossed-up dividend yield of 6.6% in that year. 

Motley Fool contributor Tristan Harrison does not own shares of Step One Clothing Ltd. 

PWR Holdings Ltd

What it does: PWR Holdings is a leading provider of advanced cooling solutions for motorsports and automotive industries worldwide.

By Kate Lee: PWR Holdings ticks many boxes for me, as I recently covered here. 

It is a global market leader in cooling systems, initially recognised for supporting Formula 1 racing teams, but its expertise extends far beyond motorsports. 

Notably, its aerospace and defence segment is growing rapidly, contributing 12% of revenue in 1H FY24. 

Additionally, PWR Holdings is a founder-led company with high insider ownership and superior return on equity (ROE) ratios, consistently above 20%.

The PWR Holdings share price has dropped 15% from its peak in February, placing its price-to-earnings (P/E) ratio at 34x based on FY25 earnings estimates by S&P Capital IQ. This is at a mid-point of its historical trading range of between 20x and 52x.

Despite its relatively high multiple, the company offers a robust growth outlook, led by a trustworthy management team, in my view.

PWR Holdings shares offer a dividend yield of around 1.25% at Friday’s closing price of $10.98.    

Motley Fool contributor Kate Lee does not own shares of PWR Holdings Ltd. 

Corporate Travel Management Ltd

What it does: Founded by Jamie Pherous 30 years ago, Corporate Travel Management has grown into a global travel management solutions provider, serving customers in the United States, Australia, New Zealand, Europe, and Asia.

By Mitchell Lawler: Corporate Travel Management has all the makings of a great company: it’s founder-led, financially disciplined, and has a large opportunity for further growth. Yet, shares in this profitable business are back to 2016 levels. 

Corporate Travel has grown its net earnings by 136% since 2016 despite the turbulence caused by COVID-19. Specifically, the travel management company recorded $111.1 million in net profits after tax (NPAT) for the 12 months ended 31 December 2023, recovering from $27.7 million in the prior year.

As economic weakness weighs, the market has punished Corporate Travel stock this year, down almost 33%. Personally, I see it as a rare chance to build a position in a proven and profitable business with a good margin of safety.

Motley Fool contributor Mitchell Lawler does not own shares of Corporate Travel Management Ltd.

Betashares Nasdaq 100 ETF

What it does: The NDQ ETF tracks the performance of the NASDAQ 100 Index (NASDAQ: NDX) (before fees and expenses). 

By Bronwyn Allen: The NDQ ETF gives Aussie investors exposure to the 100 largest companies listed on the NASDAQ. The NASDAQ is full of innovation stocks. These are typically global businesses that are leaders in their fields and bring world-changing products and services to the fore. These include the Magnificent Seven stocks of Meta Platforms, Amazon, Apple, Alphabet, Nvidia, Microsoft, and Tesla.

Secondly, the NDQ ETF is highly complementary for ASX 200 ETF investors because it provides geographical earnings diversification (Fun fact: 50% of earnings are non-US), and its sector composition is the opposite of the ASX 200.

The NDQ ETF is overweight in tech stocks with very minor exposure to financials and materials, while the ASX 200 is overweight in banking and mining shares. And while past performance is no guarantee of future performance, it’s hard to ignore the 137% NDQ ETF price lift over five years compared to an approximate 16% gain for the ASX 200. 

Motley Fool contributor Bronwyn Allen does not own units of the Betashares Nasdaq 100 ETF.

Transurban Group

What it does: Transurban is the ASX’s largest toll road stock, operating several arterial tolled routes across Brisbane, Melbourne, and Sydney.

By Sebastian Bowen: In these uncertain times, I’m increasingly looking for stability and defensiveness in my ASX share portfolio. With that in mind, few companies fit the bill better than toll-road operator Transurban.

If you’ve ever driven in Sydney, Melbourne, or Brisbane and paid a toll, chances are you’ve been a Transurban customer. Traffic volumes tend to be highly stable and predictable, which in turn makes the earnings (and dividends) of this company relatively easy to anticipate. 

What’s more, Tranurban has negotiated very generous contracts for most of its tolled roads. It is often able to raise its tolls every quarter by either the rate of inflation or by an annualised 4%, whichever is higher. 

That bodes well for any income investor looking for a reliable stream of cash flow from their portfolios. This July, Transurban shares are trading on a dividend yield of close to 5%. As such, this is a stock that I would happily add to my portfolio right now.

Motley Fool contributor Sebastian Bowen does not own shares of Transurban Group.

ResMed Inc

What it does: ResMed is a medical device company that primarily provides cloud-connectable devices for the treatment of sleep apnoea, chronic obstructive pulmonary disease, and other respiratory conditions.

By James Mickleboro: ResMed shares have been very volatile over the last 12 months. This has been driven by concerns over the emergence of weight loss wonder drugs like Ozempic and Mounjaro. The latter caused a sharp selloff during the final week of June when trial results revealed it was effective at treating sleep apnoea in obese people.

However, it is worth noting that the strongest results were achieved with a combination of Mounjaro and a continuous positive airway pressure (CPAP) device. In light of this, while weight loss drugs are likely to negatively impact ResMed’s total addressable market (TAM), they are unlikely to be category killers. I think this makes June’s underperformance a great buying opportunity for investors in July.  

Ord Minnett certainly does, too. Last week, it put a buy rating and a $33.50 price target on RedMed shares.

Motley Fool contributor James Mickleboro owns shares of ResMed Inc.

The post Top ASX shares to buy in July 2024 appeared first on The Motley Fool Australia.

More reading

• Could these be the best ASX tech ETFs to buy for FY25?
• Here’s how the ASX 200 market sectors stacked up last week
• 4 of the best ASX ETFs to buy in July
• 3 ASX dividend stocks to buy with 5% to 7% yields
• Here are the top 10 ASX 200 shares today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Corporate Travel Management, Meta Platforms, Microsoft, Nvidia, PWR Holdings, ResMed, Tesla, and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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, Corporate Travel Management, PWR Holdings, and ResMed. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Betashares Global Uranium Etf, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The tech sector has been flying over the last 12 months and strong returns have been recorded by investors.

But don’t worry if you missed out. That’s because many analysts remain very positive on the sector’s outlook.

So, if you’re looking for exposure to this side of the market in FY 2025, it could be worth considering the exchange-traded funds (ETFs) in this article.

Here’s what you need to know about these funds:

BetaShares Global Cybersecurity ETF (ASX: HACK)

One pocket of the tech sector which is predicted to grow materially in the future is the cybersecurity industry.

In fact, Betashares notes that “an estimate of the total addressable market by McKinsey suggests that the cybersecurity market is $1.5-$2.0 trillion globally, and at best only 10% penetrated with a very long runway for growth.” This is expected to lead to cybersecurity revenue growing at an annual rate of 10.6% through 2024 to 2028.

This means that the companies included in the BetaShares Global Cybersecurity ETF could be well-placed to outperform in the coming years.

The BetaShares Global Cybersecurity ETF is up 26% since this time last year.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX tech ETF that could be a great option in FY 2025 is the BetaShares Asia Technology Tigers ETF.

This popular fund gives investors easy access to the best tech stocks in the Asian region. Though, it excludes Japan.

Many of these are the Asian region’s equivalents of the West’s biggest and best tech companies. This includes e-commerce giant Alibaba, search engine leader Baidu, iPhone manufacturer Taiwan Semiconductor Manufacturing Company, Temu owner Pinduoduo, and WeChat owner Tencent Holdings.

Over the past 12 months, the BetaShares Asia Technology Tigers ETF has risen 26%.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Possibly saving the best to last. A final option to look at is the BetaShares NASDAQ 100 ETF.

While this ETF isn’t strictly technology-focused, it is filled to the brim with many of the biggest and best tech companies that the world has to offer. This includes Apple, Nvidia, and Microsoft, to name just three.

Betashares notes that the Nasdaq 100 has outperformed over the last decade thanks largely to the innovation of the 100 companies included in the fund. The good news is that it expects this trend to continue. The fund manager said:

In order for companies to innovate and grow in the 21st century, investment in research and development (R&D) is crucial. The largest 15 companies on the Nasdaq are the biggest R&D spenders, allocating an average of 16.9% of their revenues to R&D over the past 12 months. It has been this spending on innovation in areas like enterprise, cloud computing, cybersecurity, and more recently AI that has ultimately led to underlying growth.

The BetaShares NASDAQ 100 ETF is up almost 30% since this time last year.

The post Could these be the best ASX tech ETFs to buy for FY25? appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• 4 of the best ASX ETFs to buy in July
• The smartest ASX ETF to buy with $1,000 right now
• How do you spot an innovation stock?
• 5 excellent ASX ETFs to grow your wealth

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 Apple, Baidu, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. 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 Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Betashares Capital – Asia Technology Tigers Etf, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking for exposure to the healthcare sector in FY 2025? If you are, then check out the three ASX shares listed below.

They have just been tipped as Bell Potter’s top healthcare stocks to buy now:

Aroa Biosurgery Ltd (ASX: ARX)

Aroa Biosurgery describes itself as a soft-tissue regeneration company committed to unlocking regenerative healing for everybody.

Bell Potter is feeling very positive about the company’s outlook and has put a buy rating and 90 cents price target on its shares. It is expecting the ASX healthcare stock’s strong top line growth to continue in FY 2025 and FY 2026. It said:

In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU’s provided highly supportive data on the rate of wound healing.

Cyclopharm Ltd (ASX: CYC)

Bell Potter is also bullish on this global radiopharmaceutical company which has a focus on pulmonary care. Especially given its strong balance sheet following a recent capital raising.

The broker currently has a buy rating and $3.40 price target on the ASX healthcare stock. It said:

Cyclopharm recently completed a $24m capital raise with funds to provide working capital to support the expanding revenue base in the US. Since receiving FDA approval for Technegas in the US in September 2023, CYC has notched up numerous firsts including contract signings and first revenues earned. […] The company estimates the US market for Technegas at US$180m annually inclusive of US$90m being the initial market for diagnosis of pulmonary embolism (PE) which it believes it can win within 5 to 7 years from launch. The second stage of the market also relates to PE where the company believes it can win market share in those patients currently diagnosed via CT.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, another radiopharmaceutical company that could be a buy according to Bell Potter is Telix. It has a buy rating and $19.00 price target on its shares.

Bell Potter likes the company due to its revenue-generating Illuccix product, as well as its promising product pipeline. The broker explains:

The fundamental drivers of value remain firmly in place, including: revenues from the sale of Illuccix continue to grow; recently completed submission of the Biological license application for Zircaix in early June; and additional catalysts including submission of the New Drug Application for Pixclara, commencement of enrolment in the prostate cancer therapy and initial data from the STARLITE trial.

The post Bell Potter names the best ASX healthcare stocks to buy in FY25 appeared first on The Motley Fool Australia.

More reading

• Guess which small cap ASX stock could rise 50% in a ‘transformational year’
• Here are the top 10 ASX 200 shares today
• Why Capitol Health, Capricorn Metals, Credit Clear, and Telix shares are storming higher
• Why these 3 ASX 200 shares just earned substantial broker upgrades
• Telix Pharmaceuticals share price sinks on unexpected Nasdaq news

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

The good news for growth investors is that there are plenty of quality options to choose from on the Australian share market.

But which ones could be buys in July?

Let’s take a look at three ASX growth shares that brokers rate highly:

IDP Education Ltd (ASX: IEL)

This language testing and student placement company could be an ASX growth share to buy according to analysts at Goldman Sachs.

While the company’s growth is expected to be challenged this year and next year due to industry headwinds, the broker believes its growth will resume the following year and then continue long into the future. It commented:

IEL remains well placed to capitalise as conditions normalise into FY26E, with IEL selectively investing for growth while SP competitors come under significant pressure. In our view the regulatory headwinds are cyclical, while structural SP growth can resume off the FY25E baseline.

Goldman has a buy rating and $21.75 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share to consider buying in July is NextDC. It is one of the Asia-Pacific region’s leading data centre operators.

The team at Morgans is feeling very positive about the company’s outlook. It is forecasting strong earnings growth in the coming years thanks to the incredible demand for data centre capacity. It explains:

Structural demand for cloud and colocation remains incredibly strong. NXT’s new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

Morgans has an add rating and $19.00 price target on NextDC’s shares.

TechnologyOne Ltd (ASX: TNE)

Over at Bell Potter, its analysts think that growth investors should be looking at TechnologyOne. It is a leading enterprise software provider.

Bell Potter highlights that TechnologyOne has been growing at a quicker and quicker rate in recent years. The good news is that it believes this trend will continue. It said:

The growth in Technology One’s PBT [profit before tax] over the last four years has been 13%, 14%, 15% and 16%. We expect this trend of a steadily increasing rate of growth will continue in FY24 and the PBT growth will be either 17% or 18% (we currently forecast 17.5%). The company guidance for FY24 is PBT growth of 12-16% but the likely full year revenue of around $500m and the flagged 100bp increase in the margin suggests or implies PBT of >$152m which equates to growth of 17% or more.

Bell Potter has a buy rating and $20.25 price target on TechnologyOne’s shares.

The post 3 fantastic ASX growth shares to buy in July appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• $20,000 invested in NextDC and these ASX shares 10 years ago is worth how much?
• 9 ASX 200 shares finishing FY24 on a 52-week high
• These 3 ASX shares have unstoppable dividend growth
• 5 potentially cheap ASX shares being bought by insiders

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

About 710,000 Australians intend to take up retirement over the next five years, according to the Retirement and Retirement Intentions report published by the Australian Bureau of Statistics (ABS).

There are currently 4.2 million retirees in Australia. Most people entering retirement today are baby boomers, who were born between 1945 and 1964.

The youngest of this cohort is 60 years old. This means all baby boomers have reached their preservation age for access to superannuation. So, they can now access a lifetime of savings — and plenty are doing so.

New figures from the Australian Prudential Regulation Authority (APRA) show a significant surge in superannuation benefit payments over the past year as this wave of retiring boomers rolls through.

Baby boomers can also access the age pension once they reach their ‘retirement age’. For this generation, the retirement age ranged from 65 years and six months to 67 years, depending on the year of birth.

Gaining access to funds is the number one factor prompting Australians to retire, according to the ABS.

In FY23, a government pension or allowance was the main source of personal income at retirement for 43% of retirees. This was followed by superannuation, an annuity, or a private pension at 27%.

Many retirees also have investments outside superannuation from which they derive other forms of income, such as dividends.

How much money do you need for retirement?

According to the AFSA Retirement Standard, couples need about $690,000 in superannuation by retirement age, plus a part-pension, to have a comfortable retirement lifestyle.

The Association of Super Funds of Australia (ASFA) defines a comfortable lifestyle as money for life’s essentials plus private health insurance, many exercise and leisure activities, occasional restaurant meals, a domestic holiday every year and an overseas trip every seven years.

AFSA estimates that a comfortable lifestyle costs $72,148.19 per year.

Single retirees need $595,000 in superannuation and a $51,278.30 budget to have a comfortable retirement lifestyle.

A ‘modest’ retirement lifestyle is cheaper.

It requires both singles and couples to have $100,000 in superannuation at retirement, plus a part pension, to cover annual living expenses of $46,944 for couples and $32,666 for singles.

AFSA’s estimates assume you own your own home without a mortgage. They also assume that you draw down all your superannuation capital and invest it with a 6% return per annum.

What about investments outside superannuation?

A Findex study shows 85% of Australians are investing in assets like shares and property outside their superannuation fund.

The study showed baby boomers preferred to invest in bank savings (60%), property (50%) and shares (46%).

The Motley Fool guide to retirement planning

The Motley Fool has a comprehensive retirement planning guide to help Australians save and invest to create a fantastic life of leisure once they stop working.

One investment option is to build a portfolio of reliable ASX dividend shares for retirement.

The aim is to create a strong stream of passive income derived from fully franked dividends.

It’s up to you to decide which stocks are best for your long-term retirement objectives.

Super Guide has revealed the 20 most popular ASX shares held by self-managed superannuation funds (SMSFs). This provides some insight as to which stocks some of your fellow retirement savers prefer.

The top five stocks listed below all pay fully franked dividends.

• BHP Group Ltd (ASX: BHP) shares (48% of SMSFs holding ASX shares are invested in BHP)
• Woodside Energy Group Ltd (ASX: WDS) shares (45.6%)
• Westpac Banking Corp (ASX: WBC) shares (40.9%)
• Commonwealth Bank of Australia (ASX: CBA) shares (39.1%)
• National Australia Bank Ltd (ASX: NAB) shares (38.9%)

New research just released by superannuation provider Vanguard reveals more SMSFs are putting money into exchange-traded funds (ETFs) these days.

ETFs provide handy diversification of stocks in a single trade.

The post Retirement planning guide: 710,000 Aussies to retire over next 5 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group, Commonwealth Bank Of Australia, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Although the returns on offer with term deposits are the best they have been in years, and could yet improve further if the RBA lifts rates again, they still pale in comparison to what’s available from ASX dividend shares.

For example, the shares listed below not only offer better yields but also have the potential to generate meaningful capital returns.

And while the share market is not risk-free, like term deposits are, the risk/reward on offer from these ASX shares could be compelling based on what analysts are saying. Here’s what you need to know:

APA Group (ASX: APA)

APA Group could be a good alternative to a term deposit. Particularly given that it could be classed as a lower risk option. This is because as an energy infrastructure company and owner of a $27 billion portfolio of gas, electricity, solar and wind assets, it has very defensive and predictable earnings.

You only need to look at its dividend history to see this. APA Group will soon increase its dividend for the 20th year in a row. Few ASX shares can match that record.

Macquarie is very positive on the company and has an outperform rating and $9.40 price target on its shares. This implies a potential upside of ~18% for investors over the next 12 months.

The broker also expects some generous dividend yields. It is forecasting dividends of 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $7.99, this equates to 7% and 7.2% yields, respectively.

Accent Group Ltd (ASX: AX1)

While this ASX dividend share is certainly higher up the risk scale than APA Group, its forecast dividend yields and major upside potential arguably make it worth considering.

Thanks to “continuing casual footwear trends and as sports, fitness & wellness related spending remains a priority,” Bell Potter is bullish on the footwear retailer and sees a lot of value in its shares.

The broker currently has a buy rating and $2.50 price target on them. Based on the current Accent share price of $1.94, this implies potential upside of almost 30% for investors over the next 12 months.

As for income, the broker is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. This represents dividend yields of 6.7% and 7.5%, respectively.

The post Forget term deposits and buy these ASX dividend shares 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie 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.

The S&P/ASX 200 Index (ASX: XJO) was on form in FY 2024. Over the 12 months, the benchmark index delivered a solid return of 7.8% before dividends.

Unfortunately, not all shares on the ASX 200 were able to rise with the market. Here’s why these were the worst performers on the index during the year:

Liontown Resources Ltd (ASX: LTR)

The Liontown Resources share price was the worst performer on the ASX 200 in FY 2024 with a 68% decline. This was driven by the collapse of its proposed takeover by Albemarle Corp (NYSE: ALB) and significant lithium price weakness. The latter is bad news for Liontown, which will be commencing production at the Kathleen Valley Lithium Project in the coming weeks. For many of the same reasons, the IGO Ltd (ASX: IGO) share price lost 63% of its value during the 12 months. Liontown and IGO are not alone, though. Many other ASX lithium stocks are down materially over the same period.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price wasn’t far behind with a 54% decline over the 12 months. Investors were selling this casino and resorts operator’s shares due to concerns over news that the NSW Independent Casino Commission is launching another inquiry. In addition, the company’s trading performance was very disappointing. Management blamed the subdued performance on its Premium Gaming Rooms (PGRs) business.

Healius Ltd (ASX: HLS)

The Healius share price was out of form and sank 49% during the financial year. Investors were selling this medical and pathology centre operator’s shares due to its significant underperformance. In addition, the company was forced to undertake capital raising at a significant discount to its prevailing share price. The company advised that it decided to raise the funds to reduce its net debt and reset its balance sheet with appropriate gearing.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price lost 46% of its value during FY 2024. This was also driven partly by the significant downturn in the performance of the building materials company. Fletcher Building advised that market conditions across the company’s Materials and Distribution divisions have weakened throughout the year. In light of this, it revealed that it will fall short of its EBIT before significant items guidance. In addition, management warned that it expects market conditions to remain challenging in both New Zealand and Australia in the near term.

The post These were the five worst ASX 200 shares to own in FY24 appeared first on The Motley Fool Australia.

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• 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 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 share market has historically delivered investors a return of 10% per annum.

While this is a very good return, there are some ASX shares that have been tipped to rise significantly more than this over the next 12 months.

Let’s take a look at three ASX shares that analysts believe have market-beating potential:

Amotiv Ltd (ASX: AOV)

The first ASX share that could have plenty of upside is Amotiv. Until recently, it was known as GUD Holdings. It is a diversified automotive parts company and the name behind brands such as Narva and Ryco.

Morgans is a fan of the company and has an add rating and $13.71 price target on its shares. This implies potential upside of 30% for investors. It commented:

GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD’s investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.

Endeavour Group Ltd (ASX: EDV)

Over at Goldman Sachs, its analysts believe this drinks giant’s shares are cheap. Last week, the broker reaffirmed its buy rating with an improved price target of $6.50. Based on where the ASX share is currently trading, this suggests that upside of 28% is possible for investors.

The broker likes Endeavour due to its defensive qualities and attractive valuation. It commented:

Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in.

Lynas Rare Earths Ltd (ASX: LYC)

Bell Potter thinks that this rare earths producer’s shares are undervalued at current levels. Last week, the broker put a buy rating and $7.80 price target on its shares. This implies potential upside of 31% for investors over the next 12 months.

Its analysts believe that rare earths prices are close to rebounding from recent weakness. It said:

We continue to see prices painstakingly grind higher from current levels through to the end of the year. China domestic supply may continue to keep a lid on rapid price revisions, however not at current levels. Reports of activity over March highlighted a reduction in NdPr oxide imports into China and a reluctance of domestic miners to sell material to downstream magnet makers whose stockpiles were bottoming out. Combine this with a rapid rise in EV production globally and you have a more positive outlook for NdPr.

The post These ASX shares could rise 25% to 30% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Endeavour 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.