Category: Stock Market

The ASX All Ordinaries (ASX: XAO) stock Pacific Current Group Ltd (ASX: PAC) might be on course to pay investors significant passive income in the coming years.

For investors who haven’t heard of this business before, it describes itself as a multi-boutique asset management firm. It applies resources, including “capital, institutional distribution capabilities and operational expertise”, to help its partners grow. In other words, it invests in compelling fund management businesses and aims to help them expand.

It’s invested in a number of different managers, including GQG Partners Inc (ASX: GQG), Astarte Capital Partners, Banner Oak, Aether, Roc Partners, Victory Park, and Cordillera.

The company has been building a track record of paying dividends to investors. It grew its dividend each year between FY18 to FY22. Time will tell whether FY23 includes an increase, but the projections on Commsec are currently promising for growth.

Potential for $1,000 of passive income a month

Pacific Current could pay an annual dividend per share of 41 cents in FY23, representing a potential increase of almost 8% compared to the FY22 annual payment. At the current Pacific Current share price, that potential payment represents a grossed-up dividend yield of 8%.

The All Ords ASX stock doesn’t pay a monthly dividend. But we can take the annual dividends and divide that amount into 12 equal parts.

Just using the cash element of the dividend, and ignoring the franking credits, to get $12,000 of annual dividends with the 2023 annual payout, we’d need to own 29,269 Pacific Current shares. The Pacific Current share price at the time of publishing is $7.11, so that would represent a hefty investment of $208,000.

However, the dividend payout is expected to rise in FY24 to 46 cents per share. This would make the forward grossed-up dividend yield around 9%. Thinking about that passive income payment, it would mean an investor would only need to own 26,087 Pacific Current shares. That equates to a slightly more modest investment of $185,500.

Can the ASX All Ords stock deliver dividend growth?

I think that Pacific Current is demonstrating some of the right attributes to deliver growth.

In its FY23 half-year result, it reported that the funds under management (FUM) of its investment partners grew by 3.5% to A$175 billion, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 35% in Australian dollar terms.

The business is expecting growth in both management fees and performance fees, thanks to fund managers raising capital from investors, or having already recently deployed capital. Also, a number of funds or strategies are nearing the point of generating performance fees that will benefit Pacific Current.

On top of that, new commitments and inflows are expected to continue, while additional investments are also expected. Pacific Current recently announced its investment in the fund manager Cordillera.

Once interest rates stop increasing, this could be a natural boost for the ASX All Ords stock, the passive income it can generate, and the underlying fund managers.

The post Want $1,000 in monthly passive income? Buy 29,270 shares of this ASX All Ords stock appeared first on The Motley Fool Australia.

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More reading

• $1,600 annual dividend income from a $20,000 ASX share portfolio? Here’s how

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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I think the ASX share market is a great way for investors to build wealth. It’s possible for some investments to grow significantly. People can use that to make hundreds of thousands of dollars, or perhaps even $1 million.

Of course, nothing is certain in the share market. For starters, volatility can throw up a lot of uncertainty and cause large swings over a short time period.

Plus, just because a business is doing well now doesn’t mean it will be doing well in five years or ten years.

But, if we can identify the ones that have a long growth runway and are executing well on their goals then they may be able to achieve large financial gains.

I’ve picked out three names that I think could produce great compounding returns over the next decade. If I invested $50,000 in each of them and held for the long term, I’d hope to be able to reach $1 million with ASX shares.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This is one of my preferred exchange-traded funds (ETFs). It enables investors to buy a group of US-listed businesses that have strong economic moats. In other words, the businesses are rated as having strong competitive advantages.

Competitive advantages can come in many different forms, including intellectual property, brand power, cost advantages or other forms of an economic moat.

But, the portfolio only invests in those businesses when Morningstar analysts think it’s trading at an attractive price.

This investment style has led to the index that the ETF tracks to return an average return per annum of 19.2% over the last decade to March 2023 and 17.1% per annum over the past five years.

Past performance is not a guarantee of future results at all, particularly if we’re talking about returns of more than 15% per annum. But, without a working crystal ball and for the fun of doing the calculation, if the $50,000 were to grow at 17% per annum over the next decade, then it could turn into approximately $240,000.

Airtasker Ltd (ASX: ART)

Airtasker is a very different company from the sorts of businesses that Vaneck Morningstar Wide Moat ETF invests in. It’s another one I’d choose for a $50,000 investment.

The ASX share offers a platform that allows users to advertise a task that needs doing. That task could be almost anything – furniture assembly, accounting, photography, removalists, painting, food delivery and so on.

It’s a small business with a market capitalisation of around $100 million. I’m looking at it as an idea that could grow significantly. Just growing to a $1 billion valuation would mean the business is ten times bigger, which could mean the $50,000 investment growing to $500,000, assuming the Airtasker share count doesn’t change much.

How likely is Airtasker to achieve that growth?

I think the company has a lot to like about it. It has a gross profit margin of more than 90%, which means that a large majority of new revenue turns into gross profit, which can be used to invest for further growth, such as marketing or product development. Its software-based operating model also means that it doesn’t take much capital to grow.

It’s targeting the very promising and large markets of the United States and the United Kingdom. Airtasker is growing quickly.

In the FY23 half-year result, trailing 12-month (TTV) UK gross marketplace volume (GMV) saw 83% growth year on year to £3.5 million, while UK revenue rose 153% to £0.4 million. US posted tasks grew 5.5x year over year to 34,000, with tasker offers up 9.4x year over year to 54,000. Total organic revenue grew 23% to $17.1 million.

If the ASX share can keep growing revenue, then I think it can keep re-investing and growing strongly.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of affordable jewellery with a global network of stores. It has a sizeable position in Australia, France, Germany, the UK, South Africa and the US. This is the third pick I’d invest $50,000 into for growth.

But, I think the company has plenty of potential to add a lot more stores in France, Germany, the UK and the US.

There are also some very promising markets that Lovisa has only recently entered into, where it only had a small number of stores (less than five) at the time of the FY23 half-year result. These include Canada, Mexico, South America and Hong Kong.

I believe there is huge potential for this company to roll out hundreds, if not thousands, of new stores across the world, particularly if it’s able to successfully expand into India and mainland China.

I think the ASX share’s profit can grow significantly in the coming years, which will enable the Lovisa share price to keep climbing.

There’s also the potential that the business could decide to increase its addressable market with an offering of more expensive jewellery, perhaps with a different brand. But, that’s not a core part of my thesis.

Not only could the profit grow, but Lovisa’s dividend could also keep growing too, which would add to the wealth-building effect.

The post Want a possible $1 million in retirement? Invest $50,000 each in these 3 ASX shares and wait a decade appeared first on The Motley Fool Australia.

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More reading

• Buy and hold these 3 ASX ETFs for a decade
• How to get rich by following Warren Buffett’s advice
• These world-class ASX 200 growth shares are buys according to brokers
• Here are the top 10 ASX 200 shares today
• 3 ETFs that could be top buys right now

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 Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has recommended Lovisa and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you want to make some buy and hold investments but aren’t sure which ASX shares to buy, then you could look at exchange traded funds (ETFs) instead.

That’s because ETFs allow you to invest in a large group of shares in one fell swoop.

But which ETFs might be top buy and hold options? Listed below are three top ETFs that could be worth considering as long term investments:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF could be a top buy and hold option for investors.

Given the high profile cyber incidents that have happened over the last 12 months, it will be no surprise to learn that worldwide spending on cybersecurity is predicted to increase materially in the future. This bodes well for the companies included in this fund, which are working to reduce the impact of cybercrime globally. This includes Accenture, Cisco, and Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Over the last five years, the ETF has generated an average annual return of 14.92%. This would have doubled a $10,000 investment into approximately $20,000.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider as a buy and hold investment is the BetaShares NASDAQ 100 ETF.

This ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world such as Amazon, Alphabet, Apple, Meta Platforms, Microsoft, and Tesla. Collectively, these 100 companies appear well-placed for growth over the long term, which bodes well for the performance of this ETF.

Over the last five years, this ETF has generated an average annual return of 18.43%. This would have turned a $10,000 investment into approximately $23,300.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Legendary investor Warren Buffett is a big fan of buying and holding high quality companies with sustainable competitive advantages or moats. And if you look at his incredible track record, this strategy clearly works!

The good news is that the VanEck Vectors Morningstar Wide Moat ETF makes it easy for investors to replicate his strategy. It currently contains approximately 50 shares with these qualities, including the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Over the last five years, the ETF has returned 16.78% per annum. This means a $10,000 investment would have turned into approximately $21,700.

The post Buy and hold these 3 ASX ETFs for a decade appeared first on The Motley Fool Australia.

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More reading

• How to get rich by following Warren Buffett’s advice
• 3 ETFs that could be top buys right now
• Up 20% in 2023 so far, is it too late to buy Betashares Nasdaq 100 ETF (NDQ) units?
• Say hello to the ASX’s newest ETF
• 3 ASX ETFs I’d buy and hold for 10 years

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 BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. 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 VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Growth investors certainly are a lucky bunch! That’s because there are a large number of ASX growth shares that have been tipped to grow strongly over the long term.

Two such shares are listed below. Here’s why analysts have named them as buys:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to buy could be Aristocrat Leisure, which is one of the world’s leading gaming technology companies.

Goldman Sachs is a fan of the company and has a buy rating and $45.70 price target on its shares. Based on the current Aristocrat share price of $37.50, this suggests potential upside of 22% for investors over the next 12 months.

Goldman is very positive on the company’s long term growth outlook. So much so, it has the company on its conviction list. It commented:

ALL’s long-term outlook remains strong, and the group remains a key diversified growth investment option. Additionally, ALL also offers the strongest outlook potential return on our large cap consumer segment. We add ALL to our ANZ Conviction List.

Xero Limited (ASX: XRO)

Analysts at Citi are bullish on this cloud accounting platform provider. They currently have a buy rating and $105.70 price target on its shares. Based on the latest Xero share price of $91.87, this implies potential upside of 15% for investors.

Citi was pleased with the company’s recent decision to reduce its workforce to cut costs. It has boosted its earnings estimates to reflect this and is now forecasting explosive earnings growth in the coming years. It commented:

Xero’s decision to reduce ~15% of its headcount is unsurprising given: i) revenue/EBITDA per headcount has been limited (~1%) over the last two years; and ii) when considering that growth is expected to slow next year due to delays to MTD as well as softer macro conditions. We maintain our Buy rating as we expect Xero to deliver 3-year EBITDA CAGR >35% which reflects revenue growth of ~19%

The post Brokers say these ASX growth shares could generate big returns for investors appeared first on The Motley Fool Australia.

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More reading

• Why ASX tech shares are so much more attractive than US stocks
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• Conviction list: Goldman Sachs says Xero share price can rise 37%
• Supercharge your portfolio with these 3 ASX growth shares: brokers
• Could buying Xero shares at under $95 make me rich?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Dividend investing has long been a popular and proven strategy for building wealth over the long term.

If you invest in ASX shares that pay regular dividends, you can generate a steady stream of passive income while also benefiting from potential capital appreciation.

But how can you achieve this? Let’s find out.

The power of dividends

One of the keys to successful dividend investing with ASX shares is to take advantage of the power of compounding. Instead of spending your dividends, you can choose to reinvest them back into your portfolio to generate even more income.

Over the long term, this can have a snowball effect, as your portfolio grows exponentially and generates an ever-increasing income stream.

Other benefits of dividend investing

In addition to the above, there are other benefits to consider. One is that dividend-paying ASX shares are generally more stable than their non-dividend-paying counterparts. This is because companies that consistently pay dividends are usually more mature and have a proven track record of profitability.

This means they can offer some level of protection during periods of market turbulence, which could make them an attractive option for risk-averse investors.

But which ASX shares should you buy for dividends?

The good news is that investors are spoilt for choice when it comes to ASX dividend shares.

But five in particular that analysts think could be worth considering ahead of others are named below.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon is Australia’s largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets through its extensive national rail and road network. Morgans is positive on the company and has an add rating and $3.81 price target on its shares. It expects a partially franked dividends of 17 cents per share in FY 2023, which equates to a 4.9% yield.

Coles Group Ltd (ASX: COL)

Morgans also recommends this supermarket operator as an ASX dividend share to buy. It has an add rating and $19.60 price target on its shares. As for dividends, the broker is forecasting a fully franked 66 cents per share dividend in both FY 2023 and FY 2024. This will mean yields of 3.6% in both years.

Rural Funds Group (ASX: RFF)

Bell Potter is positive on this agricultural property company and has a buy rating and $2.65 price target on its shares. It expects a generous yield again this year and is forecasting an 11.7 cents per share dividend in FY 2023. This represents a 6% yield at current levels.

Telstra Group Ltd (ASX: TLS)

This telco giant could be an ASX dividend share to buy according to Goldman Sachs. Its analysts have a buy rating and $4.60 price target on its shares. They also expect a 17 cents per share dividend in FY 2023, which equates to a fully franked 4% yield.

Westpac Banking Corp (ASX: WBC)

Finally, Goldman Sachs is also bullish on this banking giant and has a conviction buy rating and $26.64 price target on its shares. The broker also expects a big dividend yield and is forecasting fully franked dividends of $1.44 per share in FY 2023. This will mean a 6.5% yield for investors.

The post Building wealth through dividend investing: 5 ASX shares to boost your income appeared first on The Motley Fool Australia.

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More reading

• Own Telstra shares? Here are 3 things you might have missed in the last 30 days
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy now
• 5 reasons I’m still positive about this ASX 300 share despite the 40% drop
• Can Westpac shares really deliver 15% upside AND a 6% dividend yield?

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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, Rural Funds Group, and Telstra Group. The Motley Fool Australia has recommended Aurizon and Westpac Banking. 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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One of the many joys of investing in the share market is being able to own a piece of a company you know and love. It’s a great feeling buying a much-loved product or service, knowing that you also have a stake in the company that is making it. Not to mention the earnings it will receive from your purchase. One could call it the circle of life of the investing world.

But here in Australia, we don’t have the same opportunities of participating in this circle as some of the larger economies of the world.

For example, over in the United States, you can buy an iPhone, have a Coke, or purchase something on Amazon with the full ability to own a chunk of the companies that are providing these goods and services.

The ASX has its downsides…

But here in Australia, I doubt that too many customers of our largest companies would have such a level of affinity. When was the last time you heard someone describe their love of Telstra Corporation Ltd (ASX: TLS)? Or BHP Group Ltd (ASX: BHP)?

Most Australians probably don’t even have a firm grasp of what CSL Limited (ASX: CSL) does. And bashing banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) is something of a national sport.

Luckily, there is still a way for ASX investors to own shares (albeit indirectly) of the likes of Apple Inc (NASDAQ: AAPL), Coca-Cola Co (NYSE: KO) and Amazon.com Inc (NASDAQ: AMZN). It’s using exchange-traded funds (ETFs), of course.

ETFs work by grouping large baskets of shares together under one investment. By purchasing units of the iShares S&P 500 ETF (ASX: IVV) for example, you are getting a small piece of Amazon, Apple and Coca-Cola, all in one package.

Investing in what you love… with ETFs

But what if one of your favourite companies isn’t listed in the United States? That’s a conundrum I am personally facing.

One of my favourite companies in the world is Nintendo Co Ltd (TYO: 7974). If you’re unaware, Nintendo is one of the world’s largest gaming companies. It makes home consoles such as the Wii and Switch. But it also (in my opinion) owns some of the world’s most valuable intellectual property.

Have you heard of Mario and Luigi? Princess Peach and Bowser? All are video game characters owned by Nintendo. What about Pikachu? Pokemon is also a Nintendo franchise.

These characters have been delighting both children and adults for decades now.

How I plan to buy one of my favourite stocks in the world with an ASX ETF

Pick anyone under a certain age, and it’s likely that one or more of these video game characters played a formative role in their childhoods. That includes this writer. As such, I regard Nintendo as having some of the most valuable entertainment-related intellectual property in the world. Perhaps only rivalled by the likes of Walt Disney Co (NYSE: DIS).

I happen to love using Nintendo products and would love to share in that commercial prosperity as a part-owner of this company. But Nintendo is listed on the Tokyo Stock Exchange in Japan. As such, is a rather difficult company to invest in from Australia.

But luckily, there is an ASX ETF for that.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) is a fund that, according to the provider, seeks to give investors acute exposure to “a diversified portfolio of the largest and most liquid companies involved in video game development, esports and related hardware and software globally”.

One of those companies just happens to be Nintendo. As it currently stands, Nintendo stock is the sixth-largest company in this ETF’s portfolio. It accounts for approximately 5.2% of the total weighted holdings.

Foolish takeaway

So I’m planning on buying this ETF in 2023 so I can get some exposure to one of my all-time favourite companies. It’s a perfect example of the wonders of modern investing – such an endeavour would have been almost impossible for an Australian even 15 years ago.

 

The post Here’s how I’ll use this ASX ETF to invest in my favourite stock appeared first on The Motley Fool Australia.

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More reading

• 2 great ETFs for ASX investors to buy now
• Top ASX ETFs to buy in April 2023
• 2 high quality ETFs for ASX investors in April
• Down over 25% from the peak, can these 2 ASX tech ETFs deliver big returns by 2025?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon.com, Apple, Coca-Cola, Telstra Group, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, CSL, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo and has recommended the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF, Amazon.com, Apple, Walt Disney, Westpac Banking, and iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for the secret to wealth accumulation? If you are, then look no further than legendary investor, Warren Buffett.

Over many decades, the Berkshire Hathaway (NYSE: BRK.B) leader has amassed a US$100+ billion fortune through his simple investment strategies and disciplined approach to the share market.

In light of this, by following some of the Oracle of Omaha’s timeless advice, you could also become rich in the future.

Buffett’s advice

Firstly, when it comes to investing, Buffett advises that you “never invest in a business you cannot understand.”

Sure, it could be exciting investing in some hot new tech company promising to change the world, but very few will actually achieve their aspirations.

Unless you know the business model and competitive landscape thoroughly, this is just the same as gambling. The likely outcome is that you will lose your money by speculating on these types of ASX shares. So, stick to what you understand, as this will help you make informed investment decisions.

Competitive advantages

Another key to Buffett’s success has been his focus on companies with sustainable competitive advantages and fair valuations. In his 1995 letter to shareholders, he quipped:

In business, I look for economic castles protected by unbreachable moats.

But it is also important to understand what is driving that moat and how sustainable it is before committing to an investment. He adds:

We are trying to figure out what is keeping — why is that castle still standing? And what’s going to keep it standing or cause it not to be standing five, 10, 20 years from now. What are the key factors? And how permanent are they? How much do they depend on the genius of the lord in the castle?

If that sort of research sounds too time-consuming, don’t worry. That’s because there’s an ETF that has been set up to replicate Buffett’s investment style – Vaneck Morningstar Wide Moat ETF (ASX: MOAT).

Think long term

Finally, unless you win the lottery, wealth isn’t generated overnight. It will take time and discipline to become rich with ASX shares.

Buffett’s approach to investing is heavily focused on the long-term. He believes that investors should buy shares with the intention of holding them for decades, not just for a few months or years. This mindset allows investors to ride out market fluctuations and benefit from the power of compounding. He once said:

Our favourite holding period is forever.

It certainly could pay (literally) to listen to Warren Buffett’s advice on this. For example, ASX shares have generated an average total return of 9.6% per annum over the last 30 years.

This means that if you had invested $500 a month or $6,000 a year into ASX shares during this time and earned the market return, you would have grown your portfolio to $1 million. And if you doubled your investment to $1,000 a month or $12,000 a year, the value of your portfolio would also have doubled to $2 million.

And while we can’t say what will happen in the future, these returns are in line with historical averages. So, it wouldn’t be unreasonable to hope for similar over the next 30 years.

A final word

Let’s close this out now with another key piece of advice from the Oracle of Omaha in relation to not being put off by the inevitable bad investment that happens from time to time. He said:

The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.

The post How to get rich by following Warren Buffett’s advice 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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) closed the week in the red, falling 0.43% in Friday’s session to close at 7,330.4 points. That leaves it 0.42% lower than it was this time last week.

Weighing the index down today were its two largest sectors.

The S&P/ASX 200 Materials Index (ASX: XMJ) slumped 1.5% with the iron ore majors – Rio Tinto Ltd (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP) – among those posting the biggest falls.

Meanwhile, the S&P/ASX 200 Financials Index (ASX: FMG) dropped 0.7%, dragged down by the Bank of Queensland Ltd (ASX: BOQ) share price’s 5% tumble.

Though, not all was dire on the Aussie bourse. The S&P/ASX 200 Health Care Index (ASX: XHJ) and the S&P/ASX 200 Industrials Index (ASX: XNJ) both lifted 0.6%.

And on that note, let’s take a look at the ASX 200 stocks outperforming all others on Friday.

Top 10 ASX 200 shares countdown

Taking out the top spot on the index today was the Whitehaven Coal Ltd (ASX: WHC) share price – gaining 6% to close at $7.38.

The coal miner dropped its quarterly production report this morning, detailing a fall in production and coal prices.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Whitehaven Coal Ltd (ASX: WHC)	$7.38	5.88%
Boral Limited (ASX: BLD)	$4.13	5.63%
Lynas Rare Earths Ltd (ASX: LYC)	$6.84	4.75%
Pilbara Minerals Ltd (ASX: PLS)	$4.02	3.34%
Seven Group Holdings Ltd (ASX: SVW)	$23.40	2.68%
Sayona Mining Ltd (ASX: SYA)	$0.20	2.56%
Capricorn Metals Ltd (ASX: CMM)	$4.45	2.53%
New Hope Corporation Limited (ASX: NHC)	$5.33	2.3%
Lendlease Group (ASX: LLC)	$7.76	2.24%
Telix Pharmaceuticals Ltd (ASX: TLX)	$10.00	2.15%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Link, Lynas, Telix, and Whitehaven Coal shares are pushing higher today
• Lynas share price gains despite quarterly revenue taking a 28% dive
• Whitehaven share price lifts as production tumbles 12%
• How to mine $100 a month in passive income from 2 ASX 200 coal stocks

Motley Fool contributor Brooke Cooper 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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Owners of Telstra Group Ltd (ASX: TLS) shares are likely all over the company’s earnings and dividends. But there’s a lot more going on at the telco when you scratch the surface.

From partnering with an S&P/ASX 200 Index (ASX: XJO) banking giant, investing in a cybersecurity start-up, and receiving a stern warning from regulators, there’s plenty that investors might have missed.

Let’s delve into three notable happenings shareholders might have missed in the last 30 days.

3 recent happenings owners of Telstra shares may have missed

Teaming up with CBA

Telstra and banking goliath Commonwealth Bank of Australia (ASX: CBA) joined forces late last month to protect customers from phone scams.

Their pilot project, named Scam Indicator, will use a Telstra application programming interface (API) to allow CBA to check if a customer is on a phone call ­– a major scam indicator.

Simulations suggest Scam Indicator has the potential to mitigate between $15 million and $20 million of customer losses. It’s expected to be made available to customers of both Telstra and CBA later this year.

Venturing into cybersecurity

Next came news of the ASX 200 telco’s venture capital leg, Telstra Ventures.

It jumped on board a capital raise, investing in artificial intelligence (AI)-powered cybersecurity start-up Safe Security.

The software-as-a-service provider has grown at a rate of more than 200% for three years now, but that’s just the start, according to CEO and co-founder Saket Modi, who said:

Tailwinds from regulators, cyber insurance, and boards to understand and quantify cyber risk in an aggregated and granular manner are propelling Safe into this exponential growth phase.

Regulator’s wrath

Finally, some not-so-good news for Telstra might have been missed by those holdings its shares. The company was issued a formal warning from the Australian Communications and Media Authority (ACMA) this week.

The watchdog found the company breached consumer protection laws when it cut or suspended services to more than 5,400 customers without providing proper notice.

A Telstra spokesperson said the telco self-reported the issue – caused by a now-corrected error – to the regulator last year, explaining:

We quickly identified a system error that meant customers without an email address on credit management didn’t receive a letter letting them know that their service would be restricted unless payment was made.

ACMA chair Nerida O’Loughlin said customers were likely left with “significant additional stress” during times of hardship as a result of the error.

Telstra share price snapshot

The Telstra share price has gained 3.2% over the last 30 days to close Friday’s session down 0.12% at $4.28. It’s also lifted 5.8% over the last 12 months.

Comparatively, the ASX 200 has lifted 5% over the last month and fallen 3% since this time last year.

The post Own Telstra shares? Here are 3 things you might have missed in the last 30 days appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Buy Qantas and this blue chip ASX 200 share: analysts
• No savings at 40? I’d invest $5 a day in ASX shares for passive income of $7,800 a year
• Why I think Telstra shares could be a top buy for passive income in 2023 and beyond

Motley Fool contributor Brooke Cooper 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s really depressing for shareholders to watch a high-quality ASX 200 share going down, down, down after hitting an exciting historical peak.

But that’s what’s been happening for James Hardie Industries plc (ASX: JHX) investors since early 2022.

The building materials supplier hit a historically high price of $58.07 on 8 December 2021.

Over the previous two years, the ASX materials share had returned an outstanding 97% capital gain.

Today, the James Hardie share price hit an intraday high of $34.60.

That’s well off its all-time high, but it’s an 11.4% improvement over the past four weeks.

So, has the tide turned?

What’s driving this ASX 200 share higher of late?

James Hardie hasn’t released any price-sensitive news since 3 March, when it announced it had been removed from the ASX 200 due to its falling share price.

However, brokers have been saying since the start of 2023 that James Hardie has been oversold.

Two reasons for the share price decline were rising inflation and interest rates, both of which hurt the housing markets in Australia and also the United States, where James Hardie has a significant business.

On top of that, global supply chain disruptions have caused many delays in housing construction activity.

Bureau of Statistics data released this month shows a 15% decline in new home builds and a 34% decline in apartment builds.

Master Builders Australia chief economist Shane Garrett says there now are fewer new projects in the pipeline.

All of this led to James Hardie reducing its guidance for FY23 when it released its Q3 FY23 results in February.

However, inflation has turned a corner and is easing off in both Australia and the US.

Australia has also paused its interest rate hikes, and the latest data from CoreLogic points to a stabilisation in house prices.

So, are investors returning to James Hardie shares because they look like a bargain with gathering tailwinds?

What do the experts say?

Back in February, after James Hardie reduced its FY23 guidance, top broker Citi said the ASX 200 share was “close to an inflection”.

Citi analyst Samuel Seow said:

Following a weaker than expected result, we believe the market will be looking for the last downgrade and we think this could be it.

Ironically, we see [the Q3] result as a buying event, and the total shareholder return outlook should be positive from here.

The James Hardie share price closed at $31 that day.

Seow said the company was “attractive”, trading on an FY24 “trough earnings” multiple of 19 times.

Seow cited increased US mortgage applications and the 30-year fixed rate “appearing to settle” as tailwinds for the ASX 200 share.

Citi maintained its buy rating but lowered its 12-month share price target by 6.5% to $34.60. Funnily enough, that’s the intraday high James Hardie shares reached today.

Are ASX 200 share investors listening?

Also in February, Baker Young managed portfolio analyst Toby Grimm said James Hardie could only move up from here.

Grimm said:

With US interest rates likely to peak during the first half of calendar year 2023, we see potential for a share price recovery later this year.

In our view, the shares offer long-term value at current levels.

At the time, 11 out of 16 analysts on CMC Markets recommended buying the ASX 200 share. Ten of them rated it a strong buy.

Also, fund manager L1 Capital said the ASX 200 share could “grow at an above-market rate for many years to come”.

Last month, Goldman Sachs said James Hardie was one of several ASX 200 shares flying under the radar.

Goldman gave James Hardie a buy rating and a 12-month share price target of $39.50.

It highlighted that its “share price is implying an EBIT of US$681m vs GSe FY24e of US$716m.”

Today, Wilsons equity strategist Rob Crookston says James Hardie is “an attractive investment at this juncture“.

Crookston explains:

There are strong structural tailwinds behind the US and Australian housing markets.

We think James Hardie is well placed to take advantage of market softness to strengthen its market position and drive further profitable volume share gains.

James Hardie currently trades on a price-to-earnings ratio (PE) of 17x, which is 1 standard deviation below its 10-year average.

James Hardie will announce its Q4 FY23 results before the market open on 16 May.

The post Which ASX 200 share has quietly risen 11% in a month? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Passive income plan: I’d invest $100 a week in ASX 200 shares to earn $7,500 of annual dividends
• Lynas share price gains despite quarterly revenue taking a 28% dive
• 5 things to watch on the ASX 200 on Friday
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. 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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