Category: Stock Market

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Semiconductor designer Nvidia (NASDAQ: NVDA) has made many millionaires in recent years. Its stock has more than tripled in the last year alone. Among stocks with a market cap of at least $50 billion today, Nvidia has outperformed absolutely everybody over the past three, five, and 10 years. It’s hard to beat this wealth-building machine these days. 

So what’s next? Let’s say I scrape together a robust $20,000 Nvidia position today — can I expect to make a million dollars on that investment?

The short answer is yes, but it’ll take a while and the lofty target result isn’t guaranteed.

Nvidia in the rearview mirror

Looking back, Nvidia’s stock chart from the past eight years is nothing short of extraordinary. Starting from a respectable $23 billion market cap in 2016, the company’s strategy has shifted along with the market opportunity.

Nvidia’s expertise in high-performance graphics cards for gaming and professional graphics turned into a crypto bonanza when enthusiasts found the same cards to be excellent for mining Ethereum (CRYPTO: ETH) tokens. Just as Ethereum switched to a different technology with no need for miners, OpenAI came along with its ChatGPT tool, unveiling a new dawn in generative artificial intelligence (AI). Based on the same high-end graphics platforms as the gaming and crypto surges, Nvidia’s AI accelerator processors powered the back-end creation of ChatGPT’s AI engine.

Now, lots of companies with AI-powered ambitions are buying hundreds or even thousands of extremely pricey accelerator chips and Nvidia is the first supplier that comes to mind at this point. It shows in Nvidia’s spectacular financial results and the stock chart that follows:

NVDA data by YCharts

The chart above shows the return of a $20,000 investment started on May 16, 2016, resulting in a $1.0 million value nearly 8 years later. That’s an average annual return of 67.4%.

The road ahead

At the end of that market-crushing chart, Nvidia is worth $1.4 trillion. The stock rose to this height the hard way, delivering top-notch products attuned to the right market opportunities at the right times. The end result is a legendary price gain with record-high investor returns. Sorting the total stock market’s 10-year gains, I don’t even need to limit the field with a large market-cap requirement to weed out short-lived meme stocks and other gadflies. Nvidia simply offered the strongest decade-long returns of any stock tracked by the screeners at my disposal.

But things are different now. It may be difficult to grow a $23 billion market cap 50-fold, but even tougher when you start with a $1.3 trillion stock-value footprint. Even if Nvidia continues to dominate the AI market, and that trend delivers on the most striking predictions for years to come, it’s unrealistic to assume an average annual return of 67% for another eight-year run.

By the end of that rainbow, Nvidia would be worth $67.6 trillion. That’s more than double the gross domestic product (GDP) of the United States, estimated at $26.9 billion in 2023. I’m sorry, but that’s going to take a while.

Balancing business growth and shareholder rewards

Nvidia’s past performance has set a high bar and it’s important to manage your expectations for the next phase of its AI business. The exceptional gains of recent years are not likely to continue for another 8-year span. That would require not only continued success in the booming AI sector for nearly a full decade, but also sustained hypergrowth in the market itself and unshaken investor confidence in Nvidia’s lofty valuation ratios. The stock trades at 72 times earnings and 30 times sales today. These overheated ratios should cool down over time, raising the needed financial support for that $67 trillion market cap in the process.

Of course, Nvidia could lower the bar with some accounting tricks. The company can return cash to shareholders by means of generous share buybacks and dividends.

Other companies have pursued this strategy before. For example, International Business Machines (NYSE: IBM) has seen its share price fall by 2% over the last 10 years while its market cap shrunk by 14%. At the same time, Big Blue bought back 12% of its issued shares and delivered robust dividend payouts. All in all, IBM investors pocketed a respectable total return of 50% over the same period.

Nvidia could attempt a larger-scale version of this, boosting the returns by sharing cash profits with the company’s investors. Of course, this cash-sharing idea takes away from the company’s freedom to invest in future growth-boosting business plans, so there’s a fine line between generosity and growth-blunting missteps.

And of course, anything is possible over a long enough time span. America’s GDP stopped at $1.5 trillion in 1973, comparable to Nvidia’s market value today. Suggesting that any single company could deserve a trillion-dollar market cap would have sounded ridiculous 50 years ago, but here we stand with 6 stocks in the trillion-dollar club. A few decades from now, that $67 trillion target might not look so silly anymore.

The real question is, will Nvidia still be around in 2064 or 2074, and will it dominate its chosen markets for that long? I don’t think so, but anything is possible.

A pragmatic approach to investing in Nvidia

So yes, Nvidia just might be able to grow that a $20,000 investment into a cool million, but it’s a long road to that ambitious target and many things can go wrong along the way. Remember, this stock delivered the richest shareholder returns of any company over the last decade, and even that stellar run barely exceeded the 50-fold gain it takes to meet that goal.

That being said, I’m not closing out my own Nvidia position anytime soon, though I might take advantage of its recent moonshot by diversifying some of the gains into other investment ideas. I’m still looking at a proven AI giant with a bright future, and its valuation has calmed down a bit in recent weeks. Buying Nvidia stock today makes perfect sense if you can stomach it trading at nosebleed-inducing prices. The next wave of processor orders for AI systems could make the last surge look forgettable by comparison.

So feel free to invest in Nvidia today. Just don’t expect the incredible returns of the last 8 years to continue for another multi-year span. To make me a happy Nvidia investor, all the company needs to do is deliver stock price gains comparable to or exceeding the stock market as a whole.

At an annual clip of 15%, a 50-fold return would materialize after 28 years. Patience is a virtue, dear reader. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Could investing $20,000 in Nvidia stock make you a millionaire? appeared first on The Motley Fool Australia.

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More reading

• Why Nvidia stock skyrocketed 239% in 2023
• Is it too late to buy Nvidia stock?
• One artificial intelligence (AI) stock I’d buy over Nvidia for 2024

Anders Bylund has positions in Ethereum, International Business Machines, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended International Business Machines. The Motley Fool Australia has recommended Nvidia. The Motley Fool Australia has recommended and has positions in Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Liontown Resources Ltd (ASX: LTR) shares are crashing into the red again on Thursday.

In morning trade, the lithium developer’s shares are down 12% to $1.20.

Why are Liontown shares crashing?

There are a couple of reasons why Liontown shares are under pressure this morning.

The first is further weakness in the lithium industry, which has led to most ASX lithium shares falling today.

For example, Arcadium Lithium (ASX: LTM), Core Lithium Ltd (ASX: CXO), and Pilbara Minerals Ltd (ASX: PLS) shares are all down approximately 2.5% at the time of writing.

Albemarle selldown

Another reason why its shares are falling today are reports that its former suitor, Albemarle Corp (NYSE: ALB), has offloaded its stake in the lithium developer following its failed takeover bid.

As a reminder, Albemarle was seeking to acquire Liontown for $6.6 billion or $3.00 per share. However, with Gina Rinehart effectively purchasing a blocking stake, the lithium giant withdrew its offer in October.

The company explained:

Albemarle has advised Liontown that its decision to withdraw its proposal was due to the growing complexities associated with executing the transaction. Albemarle has confirmed to Liontown its favourable view of the flagship Kathleen Valley project and Liontown’s management.

Albemarle may have a favourable view of the project, but it isn’t sticking around to see its development as a major shareholder.

According to the AFR, Albemarle was looking to sell the stake for a price of $1.26 to $1.32 per share on Wednesday. The former represents a 7.4% discount where Liontown shares closed the session.

And while the company has not yet commented on the reports, it is worth noting that approximately 96.26 million Liontown shares were traded before the market open for $1.26 per share. It seems quite likely that this was Albemarle’s stake.

Liontown’s shares are now down 60% over the last four months.

The post Why are Liontown shares crashing 12% today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Copper and lithium: Broker says these ASX mining shares can double in value
• Which had the better year in 2023: Core Lithium, Liontown or Pilbara Minerals shares?
• These are the 10 most shorted ASX shares
• Up 25% in 2023, here’s what went right and what went wrong for the Liontown share price

Motley Fool contributor James Mickleboro owns Arcadium shares. 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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BHP Group Ltd (ASX: BHP) shares are on the move on Thursday morning.

At the time of writing, the mining giant’s shares are down 1.5% to $45.65.

This follows the release of the Big Australian’s second quarter update.

BHP shares falls on Q2 update

According to the release, iron ore production came in 4% higher quarter on quarter at 65.8Mt, bringing its half year production to 129Mt (down 2% half on half). This puts the company on track to achieve its unchanged FY 2024 guidance of 254Mt to 264.5Mt.

BHP shipped a total of 70.3Mt of iron ore from WAIO (100% basis) during the period. This was achieved with an average iron ore price of US$109.47 per wet metric tonne, which is up 12% since the first quarter.

BHP’s copper operations had a softer quarter following a very strong start to the year. Copper production was down 4% quarter on quarter to 437.4kt, but up 7% half on half to 894.4kt. This also leaves BHP well-positioned to achieve its unchanged guidance for FY 2024.

Metallurgical coal production was up 2% in the second quarter to 5.7Mt. However, for the half, it came in 17% lower at 11.3Mt. In light of this, management has lowered its FY 2024 guidance from 28Mt-31Mt to 23Mt-25Mt.

Finally, Energy coal production was up 7% for the quarter and 36% for the half, and Nickel production was down 3% in the second quarter but up 4% for the first half. BHP’s guidance for both remains unchanged, but with Energy coal now expected to be at the top end of its range.

How does this compare to expectations?

The market was expecting iron ore shipments of 72.5Mt from WAIO, which would have been a 1% increase quarter on quarter.

In addition, copper production was expected to be 454kt and met coal was forecast to come in at 6.9Mt.

As you can see above, this means that the miner has fallen a short of expectations with this update. This may explain why BHP’s shares are falling today.

Management commentary

BHP’s CEO, Mike Henry, was pleased with the quarter and half. He said:

Operationally, BHP has had a solid first half. WA Iron Ore production was up 5% quarter-on-quarter, while first half copper production rose 7% reflecting a record half at Spence and ongoing strong performance and additional tonnes at Copper South Australia. NSW Energy Coal had its best first half in five years, while BMA had a tough six months following significant planned maintenance and low starting inventories. At Nickel West, we are evaluating options to mitigate the impacts of the sharp fall in nickel prices.

We progressed our growth agenda during the quarter with ongoing construction of the Jansen mine in Canada and the sanction of Jansen Stage 2, which doubles our planned potash production capacity. In South Australia, we successfully integrated our Copper SA business and significant exploration drilling beneath Olympic Dam has identified attractive copper mineralisation above 1% grade along a 2 km strike, with areas above 2%.

The post BHP shares tumble after missing expectations in second quarter appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• ‘Deteriorating demand’: Should you be worried about your BHP shares in 2024?
• Top brokers name 3 ASX shares to buy next week
• Top ASX shares for beginner investors to buy in 2024
• The 8 ASX mining stocks Goldman Sachs says are buys in 2024

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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A couple of ASX All Ords shares are sinking deep into the red on Thursday following the release of updates.

Let’s dig deeper and find out what’s going on. Here are the shares in question:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 2.5% to $35.11 today after fuel retailer provided guidance for the full year.

According to the release, the ASX All Ords share is expecting its unaudited Replacement Cost Operating Profit (RCOP) EBIT for the full year to be “slightly ahead” of the record results delivered in 2022, on a continuing basis.

While this looks positive on paper, the market was expecting a stronger result after its stellar third quarter performance, which saw its RCOP EBIT increase 65% on the prior corresponding period.

Management notes that growth in earnings from non-refining divisions offset a reduction in refinery earnings from the historically high levels in the prior year.

In addition, the company revealed that the Lytton Refiner Margin (LRM) averaged US$10.52 per barrel in the fourth quarter. This is down sharply from US$19.69 per barrel in the previous quarter. This reflects a rise in landed crude premiums and reduced product crack spreads compared to the third quarter.

APM Human Services International Ltd (ASX: APM)

The APM share price is also sinking today and is down 35% to 85 cents. Investors have been hitting the sell button today after the international human services provider released an update on its first half performance.

The ASX All Ords share expects to report revenue of $1.14 billion and underlying NPATA of $55 million for the six months ended 31 December. This compares to revenue of $853.7 million and underlying NPATA of $85.4 million a year earlier.

Management blamed this on tough labour market conditions and higher interest costs and taxes.

It expects things to improve in the second half, noting that “2H24 EBITDA and NPATA to be higher than 1H24 with a second half earnings skew consistent with prior periods.”

The post Guess which ASX All Ords shares are sinking after poor updates appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Top ASX passive income shares to buy in January 2024
• Here’s how I’d target $450 a month in passive income from ASX 200 dividend shares

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The S&P/ASX 200 Index (ASX: XJO) has risen 9% since 31 October 2023, and it’s fairly close to its all-time high. Could this be a good time to invest in ASX 200 shares to get rich?

Once-in-a-decade opportunity?

It’s common for the share market to go through volatility. There are no rules about when share prices are going to go up and down.

The share market has seen several moments of heavy declines in the last few years such as the COVID-19 crash in 2020, the inflation-caused decline in 2022 when interest rates started rising, and another interest rate-induced decline in October 2023.

So, it wouldn’t be true to think the share market can only decline once a decade.

It’s true that the ASX 200 was a lot cheaper a few months ago and even lower in 2022 and 2020. So, we can’t call the current ASX 200 valuation the best time to invest.

But, it wouldn’t surprise if ASX 200 shares fell again at some point in 2024. Partly because the market does regularly (but unpredictably) fall, and partly because it has risen strongly in recent times. That’s interesting considering interest rates haven’t actually started falling yet, and may not decline in the US or Australia for many months still. The market may have gotten ahead of itself, but we’ll have to wait and see what happens.

Can the ASX 200 help us get rich?

There are a few different ways to invest in 200 of the biggest businesses on the ASX, even if they’re not exactly tracking the ASX 200.

iShares Core S&P/ASX 200 ETF (ASX: IOZ) and SPDR S&P/ASX 200 (ASX: STW) are two of the most obvious exchange-traded funds (ETFs) that track the index.

Other good ways to get exposure to the same sorts of ASX 200 shares include the BetaShares Australia 200 ETF (ASX: A200) and the Vanguard Australian Shares Index ETF (ASX: VAS).

We can regularly invest in these sorts of ASX ETFs without worrying about the valuation too much.

The last decade of returns from the ASX 200 hasn’t exactly shot the lights out, it has been overshadowed by the global share market where there has been more growth.

But, if the ASX 200 is able to deliver annual returns per annum of around 9% to 10%, then investors can see their portfolio values double in less than ten years, which is an attractive wealth growth rate. $100 becomes $259 in ten years if it’s growing at 10% per annum, though no one knows what future returns are going to be.

In other words, I think ASX 200 shares can always help us become wealthier. But, when the share market is noticeably down, it can be a good idea to considering invest more.

For me, there are individual ASX 200 shares that may be able to deliver much stronger returns than the ASX 200.

I like to regularly write about the names I see as opportunities. With individual names, I always think there are stocks at valuations that can help us become richer over time.

The post ASX 200 shares: A once-a-decade opportunity to get rich? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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.

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The ASX tech stock Xero Limited (ASX: XRO) has generated big returns for shareholders. In the past year, it has risen by 50% and in five years it has gone up by 160%.

This company provides cloud accounting software which aims to help business owners, accountants, bookkeepers and financial advisers access and work on a business’ financial information.

Its various tools and automated offerings help people save a lot of time. Time is money of course.

Some investors may be thinking that it’s too late to invest in Xero stock considering it has risen so much and the market capitalisation is now more than $16 billion.

But, I’m going to say why I don’t think it’s too late to invest in this ASX tech share.

Strong revenue growth continues

When revenue is continuing to grow at a good rate, the share price can keep rising.

Investors would have made a mistake a decade ago to avoid businesses like Visa, Mastercard, Microsoft, Alphabet and Apple because their revenue kept growing and that helped drive profit, which has helped send all of their share prices higher over the years.

Xero is still doing very well at growing revenue. There are two main elements of its revenue – how many subscribers it has and how much they are paying.

In the FY24 first half, Xero reported 13% subscriber growth to 3.94 million subscribers and 6% average revenue per user (ARPU) growth to $37.38.

That combination helped operating revenue soar 21% to almost $800 million and the annualised monthly recurring revenue (AMRR) rose 19% to $1.77 billion.

If revenue keeps growing more than 10% per annum for many years then Xero’s underlying value could keep increasing strongly.

Excellent margins

There’s not much point in growing revenue if it doesn’t help improve the bottom line, in my opinion.

Revenue growth for Xero is very valuable because of its high-profit margins – it has a gross profit margin of 87.5% (which rose from 87% in the first half of FY23). That means most of the new revenue can turn into usable profit which Xero can spend on more software development or marketing. Extra revenue and gross profit can also flow to the profitability metrics if the company doesn’t spend that money.

Xero stock is benefiting from rapidly growing profit. HY24 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 65% to $204.5 million, operating profit increased 225% to $67.4 million and free cash flow soared $91 million to $106.7 million.

The intangible nature of software could mean Xero’s profit margins continue to rise – where profit rises faster than revenue – which could excite investors even more.

In FY24, the company is targeting an operating expense to operating revenue ratio of around 75%.

AI

Xero is the sort of business that could significantly help subscribers operate more efficiently, assist with better insights and improve their Xero experience, as well as increase the productivity of Xero’s teams to help customers faster.

Xero stock has already benefited from its ability to help customers through technology, and this could be the next stage of that assistance.

Foolish takeaway

I think Xero stock is still a buy, with a lot of potential profit growth to come over the next few years as its market share hopefully increases in places like Australia, the UK, South Africa and the US.

The post Is it now too late to buy Xero stock? appeared first on The Motley Fool Australia.

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More reading

• True blue tech: The ASX shares I’d buy to build a Nasdaq index-inspired portfolio
• Sliding Doors: Brainchip vs Xero shares
• Here’s how the ASX 200 market sectors stacked up this week
• ASX blue-chip stocks: My best of the best for January 2024
• The No. 1 ASX 200 shares of each market sector in 2023

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Apple, Mastercard, Microsoft, Visa, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Alphabet, Apple, and Mastercard. 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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Evolution Mining Ltd (ASX: EVN) shares had a day to forget on Wednesday.

During the session, the gold miner’s shares lost 17% of their value to finish at $3.10.

Investors were hitting the sell button after the company’s quarterly update fell well short of expectations.

The question now, though, is whether this is a buying opportunity? Let’s find out if it is.

Should you buy Evolution Mining shares?

The team at Goldman Sachs has been running the rule over the update. And while the broker was not impressed with its performance, it has seen enough to keep its buy rating.

Commenting on its performance, its analysts said:

EVN reported group Dec-Q gold production/sales of 161koz/170koz, well below expectations on lower production at Cowal and Mungari (weather) and ongoing disruptions/underperformance at Redlake.

While EVN has left group FY24 guidance unchanged (789koz; AISC A$1,340/oz; +/-5%), expecting other assets to meet or exceed the mid-point of their original production guidance (with Cowal and Ernest Henry at the highest confidence), we revise our gold production down to 734koz (from 763koz) on risk of ongoing weather disruptions and ongoing Red Lake underperformance (which we now assume remains below original FY24 guidance over the medium term).

But despite this, the broker believes there are reasons to stay positive. One of those is its strong free cash flow yield, which remains above 10% for FY 2025 and FY 2026.

In light of this, the broker has retained its buy rating with a reduced price target of $3.70 (from $4.20).

Based on the where Evolution Mining shares currently trade, this implies potential upside of over 19% for investors between now and this time next year. It concludes:

On our LT gold price of US$1,750/oz, EVN is trading on ~1.05x NAV (on our medium-term Red Lake production downgrades), or pricing ~US$1,830/oz gold (peer average ~1.05x NAV (NST 1.1x) and ~US$1,800/oz), though near-term FCF yields of c. 10% in FY25/26E remain attractive vs. peers at ~0-10%.

The post Should you buy Evolution Mining shares following Wednesday’s 17% dive? appeared first on The Motley Fool Australia.

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More reading

• Why Evolution Mining, Pantoro, Energy Resources, and Insignia shares are dropping today
• Why is the Evolution Mining share price crashing 16% today?
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• Goldman names 3 ASX 200 gold stocks to buy and 3 to hold

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Building a passive income of more than $191,000 a year would be life-changing for most Aussies.

Myself included.

And ASX dividend shares offer a great means to achieving that goal.

While my portfolio of ASX shares may lose value over shorter periods, or even an entire year, history shows that longer-term the stock market beats every other asset class.

Now if I invest $500 each month, or $6,000 a year, I obviously won’t reach my $191,000 annual passive income goal overnight. I’ll need to be patient. And I’ll need to do thorough research on the ASX shares I add to my portfolio.

If I wasn’t comfortable with that level of research, I’d seek out some expert advice.

Let’s look at some numbers.

What kind of returns can I target?

Let’s get an idea of my timeline to build up to more than $191,000 in yearly passive income. Over the past three years, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 24%. Or an average annual gain of 8%.

But I believe I could do better. With diligent research or perhaps that expert advice, I believe I could achieve an average 10% annual return over time.

Now I’d be sure to invest in a diversified basket of ASX shares (at least 10), with a preference for S&P/ASX 200 Index (ASX: XJO) stocks. These tend to be less volatile than small-cap shares, yet the right ones can still deliver tidy gains to investors.

In 2023, for example, Commonwealth Bank of Australia (ASX: CBA) shares delivered an accumulated gain (including dividends) of 13.4%.

I’d also lean towards ASX shares that offer franking credits on their dividends. That way, I should be able to hold onto more of my passive income at tax time.

And I’d also be sure to reinvest any and all dividends coming my way. That will help me achieve my goal significantly sooner.

The road to more than $191,000 in annual passive income

As mentioned up top, my road to more than $191,000 a year in passive income isn’t a short one.

So it’s best to get started earlier in life.

If I began investing just $500 a month in ASX shares at the age of 30, and achieve my 10% average annual gains, then I can let the magic of compounding do its work.

Here’s how my ASX share portfolio will have grown over the years:

• At 10 years: $103,770
• At 20 years: $383,348
• At 30 years: $1,140,163
• At 40 years: $3,188,890

As you can see, after 40 years of diligently investing $500 a month, and by now ready to retire, my ASX passive income portfolio has grown to almost $3.2 million.

If can achieve a 6% yield from that portfolio, which I believe I could, that would give me a passive income of $191,333 a year without having to touch that invested capital.

And leaving that $3,188,890 invested in quality ASX shares should help me keep growing my wealth as markets rise.

The post How I’d aim to turn $500 a month into a stunning passive income of more than $191k a year appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX dividend shares to buy now
• 5 things to watch on the ASX 200 on Thursday
• 5 ways to get richer in 2024 without a pay rise
• There’s great value right now in the ASX 200, especially in stocks like this one
• Targeting a $53,000 second income starting with just $1,000 of savings?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re an income investor on the lookout for some new additions to your portfolio, then read on.

That’s because listed below are three ASX dividend shares that brokers have recently been named as buys.

Here’s what sort of dividend yields you can expect from them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that analysts have named as a buy is supermarket giant Coles.

Citi remains very bullish on the company and has a buy rating and $17.50 price target on its shares.

While the broker isn’t expecting an overly strong result in FY 2024, it believes solid growth is coming in FY 2025 and FY 2026.

Citi expects this to underpin fully franked dividends of 64 cents per share in FY 2024, 70 cents per share in FY 2025 and then 79 cents per share in FY 2026. Based on the current Coles share price of $15.50, this will mean yields of 4.1%, 4.5%, and 5.1%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that analysts are feeling positive on is Healthco Healthcare and Wellness REIT.

It is a leading health and wellness-focused real estate investment trust with a high quality, diversified portfolio of assets.

The team at Morgans is positive on the company and has an add rating and $1.67 price target on its shares.

As for income, it is forecasting dividends per share of 8 cents in both FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.33, this will mean yields of 6% in both years.

Stockland Corporation Ltd (ASX: SGP)

A third ASX dividend share that could be a buy according to analysts is Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager.

Citi is bullish and notes its “strong medium-term growth outlook and cheap valuation.” The broker has a buy rating and $5.10 price target its shares.

As well as a cheap valuation, the broker is forecasting some big dividend yields. It expects dividends per share of 27 cents in FY 2024 and FY 2025. Based on the current Stockland share price of $4.41, this will mean yields of 6.1% across both years.

The post Brokers name 3 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 1 ASX dividend stock down 40% to buy right now
• ‘Bombed-out’ ASX REITs are bargain shares, says expert
• Buy Coles and these ASX dividend stocks
• These ASX dividend stocks could be buys this month
• Will a competition review hurt Woolworths and Coles shares?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again. The benchmark index fell 0.3% to 7,393.1 points.

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

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.4%, the S&P 500 has fallen 0.8%, and the Nasdaq is 0.95% lower. Rate cut doubts put pressure on markets.

Oil prices mixed

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.3% to US$72.63 a barrel and the Brent crude oil price is down 0.4% to US$77.96 a barrel. This follows the release of mixed economic data from China and the US.

BHP update

BHP Group Ltd (ASX: BHP) shares will be on watch on Thursday when the mining giant releases its second quarter update. The market is expecting iron ore shipments of 72.5Mt, which will be a 1% increase quarter on quarter. Elsewhere, copper production is expected to be down slightly to 454kt and met coal is expected to be up 23% to 6.9Mt.

Gold price tumbles

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor day of trade after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.05% to US$2,008.9 an ounce. This was driven by rate cut doubts.

Albemarle sells down Liontown stake

The Liontown Resources Ltd (ASX: LTR) share price will be on watch today amid reports that Albemarle Corp (NYSE: ALB) is offloading its stake in the lithium developer following its failed $6.6 billion takeover. According to the AFR, the lithium giant was looking to sell the stake for a price of $1.26 to $1.32 per share. The former represents a 7.4% discount to its last close price.

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

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• Here are the top 10 ASX 200 shares today
• Why Santos shares could face headwinds despite $5.7 billion Barossa win
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• Copper and lithium: Broker says these ASX mining shares can double in value
• 5 things to watch on the ASX 200 on Wednesday

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