Category: Stock Market

The BHP Group Ltd (ASX: BHP) share price is trading lower on Thursday despite the miner being given some good news.

At the time of writing, the mining giant’s shares are down 0.5% to $46.62.

What was the good news?

This morning, OZ Minerals Limited (ASX: OZL) shareholders were invited to vote on BHP’s proposed acquisition of the copper miner at a scheme meeting.

The Big Australian has tabled an offer of $28.25 per share, which values OZ Minerals at $9.8 billion on an enterprise value basis.

The good news for BHP is that the deal took a big step forward today after OZ Minerals shareholders gave the deal the thumbs up.

According to the release, 98.33% of the votes cast by OZ Minerals shareholders were in favour of the scheme.

BHP’s CEO, Mike Henry, was pleased with the results of the meeting. He said:

This is a strong endorsement from OZ Minerals shareholders on the value they will receive under the scheme and the hard work of the OZ Minerals team over many years to create a successful business. We look forward to bringing together our talent and resources to create an even stronger organisation.

This sentiment was echoed by OZ Minerals’ management team, which commented:

Today’s strong endorsement from our shareholders enables the next chapter for OZ Minerals as, pending endorsement of the Court, we will become part of a major global mining company which values our strategy of creating value for stakeholders, enabled by our agile culture of inclusion, innovation and collaboration, as well as our portfolio of modern minerals operating assets and our pipeline of growth opportunities. We thank all our stakeholders for their contribution over the years.

What’s next?

The deal is not quite done just yet, but it is almost there. That’s because the scheme still requires the approval of the Federal Court of Australia.

OZ Minerals is expected to apply for court orders approving the scheme on 17 April 2023. If approved by the court, the scheme is expected to become effective on 18 April 2023 and be implemented on 2 May 2023.

The post BHP share price lower despite OZ Minerals’ shareholders approving takeover appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Buy Rio Tinto shares ahead of BHP: Goldman Sachs
• If I buy BHP shares now, what could my return be in a year’s time?
• The BHP share price is taking off today. Could this be why?
• What’s going on with BHP shares and lithium?

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.

from The Motley Fool Australia https://ift.tt/EjP07JH

Every few months it seems, the ASX share market welcomes a new exchange-traded fund (ETF) to its boards. ETFs are a wildly popular investment vehicle, and investors seem open to all kinds of permutations and combinations when choosing an ETF that works for them.

The ASX is home to many of the most popular ETFs – index funds. There are index funds tracking the S&P/ASX 200 Index (ASX: XJO), the S&P/ASX 300 Index (ASX: XKO), as well as international indexes like the US S&P 500.

But there are also a bevvy of thematic and actively managed funds on the ASX as well.

For example, the Global X Physical Gold ETF (ASX: GOLD) allows investors to invest in gold bullion. The BetaShares Global Cybersecurity ETF (ASX: HACK) allows for exposure to only cybersecurity companies. And the BetaShares Crude Oil Index ETF (ASX: OOO) grants unitholders access to the gains or losses of the global oil price.

Well, today has seen the launch of yet another new ASX exchange-traded fund. It’s the Global X Australia ex Financials & Resources ETF (ASX: OZXX).

The ASX welcomes its latest ETF

This ETF is one that is difficult to classify. It functions in a similar manner to an index fund, holding the 100 largest companies on the ASX by market capitalisation. However, it also actively excludes a huge chunk of our share market – bank and mining shares.

A normal ASX index fund is dominated by banks and miners. Just take the iShares Core S&P/ASX 200 ETF (ASX: IOZ). This ASX 200 index fund tracks the largest 200 companies on the ASX share market without further qualification.

This means that Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) are the second, fourth, fifth, and sixth largest positions in this ETF, accounting for just over 18.5% of the entire ETF’s weighting.

Mining and energy giants BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), and Rio Tinto Limited (ASX: RIO) add another 15.6%.

So that’s a lot of concentration in just two sectors.

The Global X Australia ex Financials & Resources ETF takes these sectors out of the equation. Instead, this ETF’s current largest holdings (in order) consist of CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), and Transurban Group (ASX: TCL).

Because this is a new ETF, we don’t yet have any kinds of performance metrics to analyse it. But it would certainly make for a closer look for any investor worried about overexposure to banks or miners in an ordinary ASX index fund.

The Global X Australia ex Financials & Resources ETF charges a management fee of 0.25% per annum, or $25 a year for every $10,000 invested.

The post Say hello to the ASX’s newest ETF appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX ETFs I’d buy and hold for 10 years
• I’d buy and hold these 2 ASX shares to cash in on a surging gold price
• Here are 3 fantastic ETFs for ASX investors to buy and hold this month
• Top ASX ETFs to buy in April 2023
• 2 amazing ASX ETFs I’d love to buy for my portfolio

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and CSL. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/kzA3aDC

The Aristocrat Leisure Limited (ASX: ALL) share price is edging lower on Thursday.

At the time of writing, the ASX 200 gaming technology company’s shares are down 1% to $37.45.

Should you buy the dip with this ASX 200 share?

One leading broker that is likely to see today’s weakness as a buying opportunity is Goldman Sachs. In fact, this morning, the broker released a very bullish broker note relating to Aristocrat.

According to the note, the broker has added the ASX 200 share to its coveted conviction list with a buy rating and $45.70 price target.

Based on the current Aristocrat share price, this implies potential upside of 22% for investors over the next 12 months.

Goldman also expects a modest 2% dividend yield, which bumps up the total potential return to 24%.

Why is Aristocrat on Goldman’s conviction list?

Goldman notes that there are concerns about how to “factor in game decay and new game pipeline for Pixel United.” However, the broker isn’t concerned and explains why:

For Pixel United, we believe that there is less concern on the outlook for Social casino games vs. games like RAID where decline in game revenue is more likely. We update our outlook for RAID to factor in a natural game decline based on similar Squad RPG games, although recent in-game activations offer further upside to this view. Excluding these, it is notable that earnings from New Game pipeline only contributes to c. 11% return on the cumulative D&D spend for new game development.

Another key reason for its positive view on this ASX 200 share is its valuation. The broker believes that the market is underestimating the potential of its new Anaxi (iGaming) business and sees scope for a major rerating in the near future. It explained:

If we remove our valuation for Anaxi of A$2.3bn in EV (adjusted for D&D), ALL’s current market cap implies 15.7x P/E for rest of ALL’s portfolio which translates to 1.8x PEG, compared to historical averages of 21.3x and 2x respectively, both at unwarranted discounts in our view. We believe that ALL could re-rate strongly as the market gains more confidence on 1/ the outlook for the mobile gaming business and 2/ the potential for growth in Anaxi. At current valuation levels, the market only factors in Anaxi as more of a free-optionality that comes along with the more established gaming businesses in our view.

The post Goldman Sachs just added this ASX 200 share to its coveted conviction list appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy Pilbara Minerals and these ASX growth shares in April: experts
• Top ASX growth shares to buy in April 2023
• Top brokers name 3 ASX shares to buy next week
• Want big returns? Buy these ASX growth shares: analysts
• Leading brokers name 3 ASX shares to buy 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.

from The Motley Fool Australia https://ift.tt/XeAtBQF

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to snap its winning streak with a small decline. At the time of writing, the benchmark index is down 0.2% to 7,327.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

29Metals Ltd (ASX: 29M)

The 29Metals share price is down 6% to $1.22. This may due to ongoing concerns over the impact that inclement weather is having on its Capricorn Copper operation. Last month, the company warned that extreme weather had led to the Mount Isa Shire (including Capricorn Copper) being declared a natural disaster zone.

Block Inc (ASX: SQ2)

The Block share price is down 6% to $94.01. This follows a similarly severe drop from the payments company’s NYSE listed shares during overnight trade. However, it is worth remembering that Block is currently being targeted by a well-known short seller, Hindenburg Research. Fellow payments shares also dropped overnight.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is down 3% to $7.10. This may have been driven by profit taking from some investors after a strong gain by the coal miner’s shares on Wednesday. Despite this pullback, the Champion Iron share price remains up 44% over the last six months.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 2% to 53 cents. This is despite the buy now pay later provider becoming the new partner of Peloton in Australia. Management believes this is a timely deal given that Zip users have shown an increased desire in prioritising their health and wellness aspirations. Broad weakness in the payments industry appears to have offset this news.

The post Why 29Metals, Block, Champion Iron, and Zip shares are dropping today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Which ASX 200 mining share is rocketing 9% today?
• Why 29Metals, NextDC, Sims, and South32 shares are racing higher
• Could buying Zip shares be a classic ASX beginner’s error?
• These are the 10 most shorted ASX shares this week

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

from The Motley Fool Australia https://ift.tt/1SuLX2I

What would a $50,000 annual passive income get you? Perhaps a new car every year, multiple luxury international holidays, or even an early retirement. That passive income could be yours in just 11 years with some strategic – and perhaps intense – investing on the ASX.

It’s no doubt been done before, and it might even be done again. But it won’t be easy.

It will likely take a lot of capital, a diverse portfolio of quality dividend shares, a pinch of good luck and, of course, the magic that is compounding.

Indeed, compounding is a key part of billionaire investor Warren Buffett’s “secret sauce”.

So, how exactly might one build a $50,000 passive income in just 11 years? Let’s take a look.

How much do you need to invest to realise a $50k passive income?

First, one should consider the average dividend yield on offer from their prospective ASX shares. That is, the ratio between their cost and how much they pay out in dividends each year.

The higher the dividend yield, the less an investor will need to fork out to earn $50,000 in passive income each year.

However, sustaining a high dividend yield can be challenging for a company. Thus, I personally believe a lower, reliable dividend yield is more attractive than higher, less sustainable offerings.

Let’s say one could earn an above-average dividend yield of 6%. At that rate, an ASX investor would need a portfolio worth around $835,000 to receive $50,000 of passive income a year.

That’s a hefty sum for most. Fortunately, it doesn’t need to be invested in one sweep.

How to build an $835k dividend portfolio in 11 years

The S&P/ASX 200 Index (ASX: XJO) rose 9.55% on average each year over the last three decades. While such a return isn’t guaranteed for the coming three decades, let’s assume it will hold out for the next 11 years.

At that rate, one would need to invest $46,150 each year – or $887.50 a week – for 11 years to build a portfolio worth $835,000.

Though, in that time, they would have forked out just $507,650 – that’s compounding, folks!

On the other hand, if you had a sizeable nest egg to invest initially – say $200,000 – it would take just $16,000 of additional annual investment to reach our figurative target in 11 years.

Expanding the horizon

Of course, such an intense investing strategy won’t suit most Aussies’ budgets. But what if you had 25 years to play with?

Well, a $9,100 annual investment – assuming a 9.55% return – could see one with an ASX portfolio capable of providing $50,000 of passive income in that time. That equals just $175 a week.

It’s worth remembering, however, that no investment is guaranteed to provide returns and past performance isn’t an indication of future performance.

The post Starting from scratch: How ASX investors can grow a $50k passive income in just 11 years appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 dips as Aussie unemployment remains near historic lows
• 5 things to watch on the ASX 200 on Thursday
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• I’m looking for once-in-a-decade opportunities in the stock market recovery

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.

from The Motley Fool Australia https://ift.tt/sZXtP2c

The S&P/ASX 200 Index (ASX: XJO) dropped more than 0.2% at 11:30am AEST.

That’s when the Australian Bureau of Statistics (ABS) released the latest unemployment figures for March.

Here’s what the ABS reported.

Low jobless rate pressuring the ASX 200

Consensus estimates had expected the unemployment rate in Australia to tick up from the historic low level of 3.5% posted in February.

That did not eventuate, with the jobless rate remaining at 3.5% in March.

Among other key statistics, the ABS reported that:

• The participation rate increased to 66.8%
• Employment increased to 13,883,100
• Employment to population ratio remained at 64.4%
• The underemployment rate increased to 6.1%
• Monthly hours worked increased to 1.91 billion

In a case of good news (Who doesn’t like a strong labour market, after all?) being bad news, the ASX 200 slipped on the report.

That’s because a tight labour market is likely to put upward pressure on wages, adding fuel to the simmering inflation fire.

This in turn increases the odds of at least one more interest rate hike from the Reserve Bank of Australia. The RBA’s next rate decision is due on 2 May. And higher rates, as you’re likely aware, tend to throw up headwinds for most ASX 200 shares.

What else are investors considering today?

In other macroeconomic news impacting share markets, ASX 200 investors also awoke this morning to the latest March Consumer Price Index (CPI) data out of the United States.

As The Motley Fool reported earlier here, CPI in the world’s top economy slowed to 5% in March, down from 6% in February.

While slowing inflation is good news, CPI in the US remains far above the Federal Reserve’s 2% target range, meaning another rate hike is also likely from the US central bank next month.

And core CPI – which strips out volatile items like energy and food – actually edged higher in March to 5.6%.

With unemployment in the US also still down at a rock bottom 3.5%, US stock markets and the ASX 200 all reacted negatively to the news.

The post ASX 200 dips as Aussie unemployment remains near historic lows appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• I’m looking for once-in-a-decade opportunities in the stock market recovery
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/tGx97f8

The All Ordinaries Index (ASX: XAO) is sliding 0.28% today but this ASX All Ords travel share is bucking the trend.

The Corporate Travel Management (ASX: CTD) share price is soaring 10.42% today to $20.87.

Let’s take a look at what is going on with this ASX All Ords travel share.

What’s going on?

Corporate Travel Management has won a major contract with the UK Government.

The travel company advised the market it has secured the Bridging Accommodation and Travel Services contract from the UK Home Office.

This contract is estimated to be worth nearly £1.6 billion in total transaction volume (TTV) over two years, which is about $2.99 billion Australian dollars.

Corporate Travel Management said the contract will have a “significant impact” on further growth in the European region in FY24 and beyond.

Commenting on the news, the company said:

This work involves highly complex services and logistic support that will be delivered by an already established dedicated team within CTM that has both the experience and specialised knowledge to support this work.

In the first half of FY23, Corporate Travel Management reported a record TTV of $4.199 billion.

The company delivered an underlying EBITDA of $51.3 million and an unfranked interim dividend of 6 cents per share.

Corporate Travel Management said at the time of releasing these results it is expecting a record second-half EBITDA result.

The team at Morgans recently placed an “add” rating on Corporate Travel Management shares with a $21.90 price target. Analysts said “CTD remains a key pick for the travel sector”, adding:

We see substantial upside in its share price as the company recovers from the COVID affected travel downturn.

In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn.

Corporate Travel Management share price snapshot

The Corporate Travel Management share price has slid 12% in the last year. However, it has surged 41.55% year to date.

This ASX All Ords share has a market capitalisation of more than $3 billion based on the latest share price.

The post Why is this ASX All Ords travel share surging 10% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these ASX growth shares while they’re still cheap: Morgans
• 2 ASX 200 shares that could be top buys for growth
• Bargain or value trap? Fundie rates 3 ASX 200 shares going for cheap
• Why Corporate Travel Management, Kingsgate, Liontown, and Neuren shares are racing higher
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Monica O’Shea 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 recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eVkWoDP

Goldman Sachs has been busy running the rule over the lithium industry again this week.

And while the broker remains bearish on the price of the battery making ingredient, it is starting to see value in ASX lithium shares following recent weakness. It commented:

With lithium prices continuing to decline, and stock prices pulling back, we expect increased focus on finding defendable value in the sector, noting the Australian lithium sector is still largely flat YTD. While we remain cautious as these declines and our lowered CY23 lithium forecasts come through realised pricing/earnings on a lagged basis, we see emerging fundamental value in the sector.

Which ASX lithium shares does Goldman like?

Goldman has buy ratings on just two ASX lithium shares following its recent downgrade of Mineral Resources Ltd (ASX: MIN) to a neutral rating.

These are Allkem Ltd (ASX: AKE), which it has been bullish on for some time, and IGO Limited (ASX: IGO), which has been upgraded to a buy rating from neutral today.

In respect to valuations, Goldman has a price target of $13.20 on Allkem’s shares and a price target of $13.90 of IGO’s shares. This implies potential upside of 19% and 10%, respectively, over the next 12 months for investors.

Why is it bullish?

Goldman advised that it is bullish on these ASX lithium shares due to their low costs, production growth potential, and vertical integration. It explains:

With our continued expectation that low cost producers with growth optionality & vertical integration will be more defensive and best placed for future opportunities, we reiterate our preference for Allkem (Buy) and upgrade IGO to Buy.

In light of the above, the broker believes that “IGO and AKE deserve to trade at a premium to peers.”

Elsewhere, Goldman has maintained its neutral ratings on Liontown Resources Limited (ASX: LTR) and Pilbara Minerals Ltd (ASX: PLS) shares, as well as its sell rating on Core Lithium Ltd (ASX: CXO) shares.

The post Goldman Sachs names the ASX 200 lithium shares to buy (and avoid) appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Does the Pilbara Minerals share price fall finally make it a no-brainer buy?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Future Generation, Pilbara Minerals, Platinum, and Whitehaven Coal shares are dropping

Motley Fool contributor James Mickleboro has positions in Allkem. 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.

from The Motley Fool Australia https://ift.tt/IuKgmeQ

Most investors target particular ASX shares chasing either growth or passive income from dividends. But some of the best ASX shares give their investors the best of both worlds. They are hard to find, and often their lucrativeness is only obvious in hindsight.

So today, let’s take a look at two ASX shares that might just fit the bill of providing both capital growth potential and dividend income.

2 ASX shares that could deliver both growth and dividends

WiseTech Global Ltd (ASX: WTC)

ASX 200 logistics share Wisetech has been a poster child for growth investors for years now. And fair enough too. The Wisetech share price has rocketed 567% over the past five years alone and is up an extraordinary 1,540% since 2016. And the growth doesn’t look to be slowing down either.

Earlier this year, WiseTech reported its latest half-year earnings, and they were a pretty sight. The company revealed a 35% rise in revenues, as well as a 40% surge in underlying net profit after tax (NPAT) to $108.5 million.

But Wisetech has also been quietly growing its dividends too.

Back in 2017, the company paid out a total of 2.2 cents per share in dividends. But by 2022, this had grown to 11.2 cents per share, up more than 400% from 2017. 2023’s Wisetech interim dividend of 6.6 cents per share was also a significant 39% increase over the corresponding dividend of 4.75 cents in 2022.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 tech share, enterprise software products company TechnologyOne is next up today. This is another company whose share price has followed its profitability growth over recent years.

Since 2018, the TechnologyOne share price has risen by an impressive 195%. In its most recent earnings from November last year (covering FY2022), TechnologyOne reported an 18% rise in revenues, as well as a 22% surge in NPAT to $112.32 million.

But again, it’s not just share price growth that investors have banked on. Back in 2018, TechnologyOne shares doled out a total of 11 cents per share in dividends. But by 2022, this had risen to 17 cents per share up more than 54%.

So here we have another ASX 200 share that has demonstrated a strong track record of providing both share price growth and a rising dividend.

 

The post Want growth and passive income? Here are the ASX shares I’d buy for the best of both worlds appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• Top ASX shares to buy in April 2023
• How I’d aim to retire rich enough to live on passive income from my ASX dividend shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

from The Motley Fool Australia https://ift.tt/C6L8SJ9

S&P/ASX 200 Index (ASX: XJO) energy shares are outpacing the benchmark today.

The ASX 200 is down 0.22% in late morning trading after heading lower from the open.

However, the big energy stocks are helping drive the S&P/ASX 200 Energy Index (ASX: XEJ) significantly higher, up 0.48%.

At the time of writing, the Santos Ltd (ASX: STO) share price is up 0.35%.

Meanwhile, rival ASX 200 energy share Woodside Energy Group Ltd (ASX: WDS) is marching 0.59% higher at this same time.

What’s helping lift these ASX 200 energy shares?

The Santos and Woodside share prices both look to be benefiting from rising crude oil prices.

In fact, US West Texas Intermediate (WTI) hit its highest level in 2023 overnight, trading for US$83.26 per barrel. That’s up 24.7% from the recent lows of US$66.74 per barrel WTI was fetching on 17 March.

Brent crude is also nearing 2023 highs, reaching US$87.33 per barrel overnight. That same barrel was trading for US$72.97 on 17 March.

The oil price, and by connection these ASX 200 energy shares, have been marching higher largely due to supply-side issues.

While the market remains concerned about a potential global recession denting energy demand, the recent production cuts by OPEC+ look to be achieving what the cartel’s members hoped. ‘Plus’ member Russia’s oil shipments were reported to have fallen to the lowest levels in two months.

Declining US inventories also look to be supporting the higher oil price.

Commenting on the market moves, market analyst at StoneX Fawad Razaqzada, pointed to the latest inflation report out of the United States.

“The weaker US CPI print has raised doubts over whether the Fed will now hike rates at all next month,” he said (quoted by Reuters). “Falling interest-rate expectations is reducing recession concerns and helping to support buck-denominated asset prices at the same time.”

With oil still priced in greenbacks, a lower US dollar forecast looks to be good news for ASX 200 energy shares Santos and Woodside today.

The post <strong>ASX 200 energy shares Santos and Woodside outperforming as oil hits new 2023 highs</strong> appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Best ASX energy share to buy now: Woodside vs. Santos
• Banking and energy: The ASX 200 dividend shares to buy now according to analysts
• Invested $12,000 in Woodside shares in 2018? Here’s how much dividend income you’ve earned

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.

from The Motley Fool Australia https://ift.tt/Fhi3S7P