Category: Stock Market

The ASX share market can be a great place to find investments that can pay attractive passive income as dividends.

Term deposits are paying a much stronger interest rate these days, so I think ASX dividend shares need to pay a very healthy starting dividend yield to be attractive.

But keep in mind that dividends are not guaranteed. Shareholder payments can be cut and projections are just educated guesses.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of Australia’s largest furniture retailers, with a national store network. It also recently acquired competitor Plush. The company has plans to grow profit by increasing its store count and growing online sales.

The ASX retail share trades on a relatively low price/earnings (p/e) ratio, which means that it trades on a low multiple of its earnings compared to other businesses.

According to Commsec, Nick Scali could pay an annual dividend per share of 71.8 cents, which translates into a grossed-up dividend yield of 11%.

However, be aware that the business is expected to reduce its dividend in FY24 as demand for sofas falls. Even so, the projected grossed-up dividend yield is still a massive 8.7%. That’s still a lot of passive income.

GQG Partners Inc (ASX: GQG)

GQG Partners is a US-based fund manager. Indeed, it’s one of the largest fund managers on the ASX.

Its investment style is resonating with investors as it continues to see inflows of funds, despite all of the market volatility.

The ASX share has committed to pay 90% of its distributable earnings out as a dividend to shareholders. It pays a quarterly dividend, which is useful for cash flow purposes. It’s expanding its geographic presence, which is also expanding its potential growth. Canada and Australia are two of these growth markets.

Commsec numbers suggest that GQG is going to pay an annual dividend per share of 11.8 cents in FY23, which equates to a dividend yield of 8.5%.

It could then pay a dividend of 13.5 cents in FY24, which would be a dividend yield of 9.7%.

Centuria Industrial REIT (ASX: CIP)

This is one of the larger real estate investment trusts (REITs) on the ASX. It’s a pure play on quality industrial properties in Australia, which are predominately located on the east coast of Australia in metropolitan areas.

It has tried to invest in places where there’s high demand for industrial properties, which can lead to good rental growth and longer-term capital growth (excluding the impacts of interest rates).

The ASX share is expected to pay a distribution per security of 16 cents in FY23, which would be a distribution yield of just under 5.3%.

The distribution could then grow slightly in FY24 to 16.1 cents per security, which would be a distribution yield of slightly above 5.3%.

The post 3 big dividend-paying ASX shares for 2023 appeared first on The Motley Fool Australia.

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More reading

• These are the best ASX sectors to invest your money into this quarter: Morgans
• Top ASX dividend shares to buy in April 2023
• 7 ASX dividend shares you can buy for under $10
• 5 things to watch on the ASX 200 on Thursday
• 8 ASX All Ords shares trading ex-dividend this week

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 don’t know if you’ve realised, but there are a lot of ASX shares.

In fact, there are more than 2,000 of them all seeking to get their hands on your money, according to finance expert Bob Kohut.

“Selecting the best ASX stocks from such a large pool can be a formidable challenge,” Kohut told The Bull.

Even the qualifier “best” is also problematic, although Kohut reckons there is a universal quality that it could refer to.

“‘Best’ is a subjective term, but all investors can agree that there is one standard that makes an ASX stock a potential best buy: profit growth.”

Considering the difficulties in choosing stocks to buy from such a massive pool and the criteria for selection, investors might turn to some expert opinion.

But then the sheer diversity of views among that community is also confusing. An S&P/ASX 200 Index (ASX: XJO) stock that’s gold to one could be rubbish to another.

To combat all these concerns, Kohut set about looking for the best ASX shares to buy according to the collective opinion of the analyst population.

Here are three he came up with after dissecting the buy-hold-sell surveys:

This big company does make big moves

Healthcare giant CSL Limited (ASX: CSL) is currently “a strong contender for a spot on any best ASX shares to buy list”.

“Two analysts have a strong buy recommendation, seven have a buy recommendation, with one at hold and one at underperform,” said Kohut.

“Analysts at Citi and Morgan Stanley both see double-digit growth for the share price – 22% out of Citi and 19% from Morgan Stanley.”

The biotech behemoth continues to defy conventional wisdom that “big companies don’t make big moves”.

“The market for CSL’s blood plasma treatments and influenza vaccines has multiple tailwinds propelling the stock that other large cap stocks can only dream of,” said Kohut.

“The company invests heavily in R&D (research and development), with multiple non-plasma products in its pipeline to promote growth.”

Fixing ‘life’s essentials’ while competitor is removed

Another health company, Resmed CDI (ASX: RMD), makes its living providing equipment to assist “two of life’s essential functions – breathing and sleeping”.

“British journal The Lancet Respiratory Medicine reported [a] startling estimate of one billion people between the ages of 30 and 69 affected by obstructive sleep apnoea, suggesting that the condition is both ‘under-recognised and underdiagnosed’.”

However, ageing, obesity, and growing life expectancies are not ResMed’s only tailwinds.

“ResMed’s primary competitor – Koninklijke Philips NV (AMS: PHIA) Respironics – is in the midst of a product recall.”

Kohut added that both ResMed and CSL are considered “inflation proof”.

“Both have high-demand products with the power to raise prices without cutting into demand, as Medicare and private insurance are the payers, not the end consumer.”

Cash burner becomes profit maker

The third pick, which is in a vastly different business, is data centre operator NextDC Ltd (ASX: NXT).

After taking a hammering during the 2022 tech sell-off, the stock has risen almost 22% so far this year.

“The company posted losses in FY2019, FY2020 and FY2021 before turning profitable in FY2022, while increasing revenue in each year.”

Kohut noted Goldman Sachs recently added the stock to its conviction buy list.

“Four of the 10 analysts covering the company have strong buy recommendations, and the remaining six recommending investors buy shares of NextDC,” he said.

“Not a single analyst has a hold, underperform or sell recommendation.”

The post The broker community’s 3 best ASX 200 shares to buy for 2023 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• The record interim CSL dividend is being paid today. How much is it?
• How I would build a Warren Buffett-style portfolio with ASX 200 shares
• The ASX sector set to boom no matter what happens this year
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tony Yoo has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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As Australians try to digest ten consecutive months of interest rate rises, it’s even more confusing which ASX shares will best endure these rough times.

One way to simplify the analysis is to ask if a particular business has a specific tailwind that can’t be diminished by a recession or downturn.

The team at the Elvest Fund this week named three ASX shares in its portfolio that each have a unique quality to see the business through economic headaches:

‘A potentially large’ nascent business

Electrical equipment provider IPD Group Ltd (ASX: IPG) enjoyed a massive 19.5% surge in its share price over March.

According to Elvest analysts, the market was excited seeing its opportunities in the electric vehicle (EV) charging industry from an investor presentation day.

“This is a nascent business line for IPD Group, but a potentially large one, with a 20-fold increase in public charging infrastructure by 2030 required to support the projected Australian EV fleet,” they said in a memo to clients.

“IPD Group is looking to capture share in this market as an end-to-end provider of equipment, design and installation, and ongoing maintenance.”

This is why the Elvest Fund is holding onto IPD shares despite a massive March.

Nothing beats ability to set your own prices

Funnily enough Domain Holdings Australia Ltd (ASX: DHG) shares rocketed 13.2% in March not because of its own business, but what a competitor did.

“Domain Holdings rose strongly on media reports that larger rival REA Group Ltd (ASX: REA) plans to increase prices by 10% to 18% in the June half.”

This showed the supreme pricing power that the duopoly has, even during times when the real estate market is depressed.

“Pricing power was the theme of Domain’s first half FY23 report, with its own 9% yield increase offsetting most of the downturn in listing volumes during the December half.”

This stock’s ‘resilience is underrated’

Shares for Lottery reseller and technology provider Jumbo Interactive Ltd (ASX: JIN) were whacked more than 7.2% in March.

The Elvest analysts attributed this to “a quieter period of jackpot activity” in recent times. Jackpot activity is defined as when lotteries start offering more than $15 million as first prize.

The great news for investors is that mathematically those jackpots will come back.

“The stock tends to perform when jackpot activity, a statistical outcome, reverts higher,” read the memo.

“There was no news otherwise, and management currently has a buyback in operation. Jumbo Interactive’s resilience is underrated, in our view.”

The post ’20-fold increase’: 3 ASX shares that’ll rocket sooner or later appeared first on The Motley Fool Australia.

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More reading

• Why ASX shares in 2023 are eerily similar to 2019 (and what you should do)
• Here are the top 10 ASX 200 shares today
• 7 ASX shares flying under the radar to buy now: Goldman Sachs
• Morgans warns that these ASX shares could disappoint in FY23

Motley Fool contributor Tony Yoo 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 Ipd Group and Jumbo Interactive. The Motley Fool Australia has recommended Ipd Group, Jumbo Interactive, and REA 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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Even though the western world is bracing for an economic downturn, the massive force that is China is on the opposite point of the cycle.

The Chinese Communist Party ended its strict “zero COVID” policy late last year, so business activity is ramping up in 2023.

So does this mean iron ore is an investment worth making now, despite the dark economic clouds looming in our own backyard? 

And if so, which of the big producers listed on the S&P/ASX 200 Index (ASX: XJO) is the best buy at the moment?

Shaw and Partners portfolio manager James Gerrish had some thoughts:

Is iron ore ready for a bull run?

First thing to note is that Gerrish’s team is “bullish [on] the resources sector” in the medium term, inclusive of iron ore shares. 

In fact, Gerrish revealed that his portfolios already hold two ASX 200 giants. 

BHP Group Ltd (ASX: BHP) currently takes up 6% of the flagship growth portfolio, while Mineral Resources Ltd (ASX: MIN) occupies 4%. BHP also has a hefty 6% weighting in his active income portfolio.

“At this stage we have no plans to reduce any of our exposure, which, by definition, is an endorsement of the sector,” Gerrish told a Market Matters Q&A.

The BHP share price is down 13.2% over the past 12 months, while Mineral Resources is up a handy 30.4%.

Other professionals are somewhat divided on BHP, with 12 out of 24 analysts surveyed on CMC Markets rating it a hold.

There seems to be slightly more conviction for Mineral Resources, with eight out of 16 analysts recommending that one as a buy.

How about miners that only deal in iron ore?

However, if we’re talking pure iron miners, Gerrish would buy into a stock that his portfolios currently do not hold.

“Fortescue Metals Group Ltd (ASX: FMG) looks constructive following a strong week post the global banking worries,” he said.

“We can see a test of its mid-2021 highs this financial year which again is a positive read-through for the sector.”

Unfortunately, Gerrish’s peers unanimously disagree. 

According to CMC Markets, none of the 17 analysts who currently cover Fortescue considers it a buy. Thirteen, in fact, recommend the stock be sold.

The Fortescue share price is more than 16% down since July 2021.

The post Which is the best ASX 200 iron ore stock now: BHP, Fortescue, or Mineral Resources? appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 dividend shares? Here’s how I’d aim for $200 per month in passive income
• Top ASX growth shares to buy in April 2023
• Why are ASX 200 lithium shares having such a miserable week?
• ASX 200 rebounds after RBA hits pause on its rate hikes
• Passive income: How much to invest to get $800 per month

Motley Fool contributor Tony Yoo 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its winning streak with the smallest of gains. The benchmark index rose 1.2 points to 7,237.2 points.

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

ASX 200 expected to fall

The Australian share market is expected to have a subdued session on Thursday after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 1% lower this morning. In the United States, the Dow Jones rose 0.25%, but the S&P 500 fell 0.25% and the NASDAQ dropped 1.1%.

Seek rated as a buy

Analysts at Morgans are bullish on the Seek Ltd (ASX: SEK) share price. This morning, the broker has responded to the job listings company’s investor day update by retaining its add rating and $28.40 price target. The broker notes that Seek is targeting $2 billion in revenue by FY 2028, which is well ahead of consensus estimate of $1.7 billion.

Oil prices ease

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a soft session after oil prices eased on Wednesday night. According to Bloomberg, the WTI crude oil price is down 0.5% to US$80.33 a barrel and the Brent crude oil price is down 0.25% to US$84.72 a barrel. Economic growth concerns weighed on prices. In other news, Santos is holding its AGM today.

Dividends, dividends, dividends

On Thursday, the Brickworks Limited (ASX: BKW) share price is likely to trade lower after going ex-dividend. Last month, the building materials company declared an interim fully franked dividend of 23 cents per share. Elsewhere, it is payday for shareholders of a number of ASX 200 shares. This includes Atlas Arteria Group (ASX: ALX), InvoCare Limited (ASX: IVC), South32 Ltd (ASX: S32), and WiseTech Global Ltd (ASX: WTC).

Gold price edges lower

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a quiet session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$2,036.7 an ounce. Gold hit a one-year high before easing back a touch.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Is IAG stock a good defensive ASX 200 buy right now?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today
• Why Core Lithium, Red 5, Seek, and Viva Energy shares are storming higher

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All forms of investment involve some level of risk, and ASX shares are no exception. However, ensuring your investments are adequately diversified can considerably reduce your risk exposure.

Diversification can involve spreading your money across different asset types, companies, sectors, or markets. The aim is not to have all your investments eggs in one basket and help protect your wealth during periods of volatility.

But achieving a diversified investment portfolio doesn’t mean you need to immediately go on the hunt for a bunch of individual stocks to buy.

One way to add instant diversification to your nest egg is by buying an ASX exchange-traded fund (ETF) or two.

So, if you plan to run the ruler over your portfolio this Easter, and suspect it could use a shake-up, read on!

Because our Foolish writers jumped at the chance to tell us which ASX ETFs they reckon are worth hopping on in April.

7 best ASX ETFs for April 2023 (smallest to largest)

VanEck Video Gaming and Esports ETF (ASX: ESPO), $79.08 million

BetaShares Gold Bullion ETF-Currency Hedged (ASX: QAU), $470.98 million

Betashares Global Cybersecurity ETF (ASX: HACK), $669.96 million

iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV), $1.07 billion

Betashares Nasdaq 100 ETF (ASX: NDQ), $2.85 billion

VanEck MSCI International Quality ETF (ASX: QUAL), $3.36 billion

Vanguard MSCI Index International Shares ETF (ASX: VGS), $5.55 billion

(Market capitalisations as at market close on 5 April 2023)

Why our Foolish writers love these ASX exchange-traded funds

VanEck Video Gaming and Esports ETF

What it does: The VanEck Video Gaming and Esports ETF is a fund that holds a basket of companies all involved in the production and distribution of video games, consoles, and gaming and esports services.

By Sebastian Bowen: Gaming and esports are industries that continue to see massive growth worldwide. And this ETF offers an effective investment for exposure to this trend.

Here in Australia, we don’t have too many gaming shares on the ASX. Gaming and esports don’t have too much representation in most popular international index funds either. This ETF fills the niche nicely, though.

It exposes investors to well-known gaming names like Nintendo, Activision Blizzard, and NVIDIA, all under one roof.

The VanEck Video Gaming ETF has had a rough year, and remains down by more than 22% from its 2021 highs. But I don’t see gaming, esports, and the companies facilitating them going away anytime soon. So it might be a good chance this April to take a second look at this ETF for both its growth potential and diversification qualities.  

Motley Fool contributor Sebastian Bowen does not own units of the VanEck Video Gaming and Esports ETF or have positions in any of the stocks mentioned.

BetaShares Gold Bullion ETF-Currency Hedged

What it does: The Betashares Gold Bullion ETF is intended to track the performance of the gold price. This ETF is hedged for currency movements in the exchange rate between the greenback and Aussie dollar.

By Bernd Struben: Economic uncertainty and geopolitical unrest look set to remain over the coming months. These factors have already helped drive gold up 24% from the recent 3 November lows as investors seek haven assets. The BetaShares Gold Bullion ETF is up 19% over that same time.

At US$2,022 per ounce, gold is fast approaching new record highs. I believe that record may be broken in April. Global inflation remains high amid signs central banks are ready to pause their tightening cycles, a good mix for the yellow metal.

This ETF is backed by physical bullion, held in a vault of JP Morgan Chase in London. That means investors can gain exposure to gold price moves without having to buy and safeguard their own bullion. The BetaShares Gold Bullion ETF charges an annual management fee of 0.59%.

Motley Fool contributor Bernd Struben does not own units of the BetaShares Gold Bullion ETF.

Betashares Global Cybersecurity ETF

What it does: This ASX ETF invests in a portfolio of internationally-listed companies that are involved in cybersecurity. There are currently 35 companies in the portfolio, 83% of which are US-listed, though they generate earnings from around the world.

By Tristan Harrison: This ASX ETF has fallen by more than 20% since November 2022, making it great value buying right now.

I believe businesses and governments will continue to pay for cybersecurity services, even during economic downturns, so I think the underlying businesses held by this ETF are quite defensive.

And, sadly, I think demand for cybersecurity is likely to increase over the long term as more services are carried out online and the instance of cybercrime continues growing.

The Australian Cyber Security Centre (ACSC) 2022 report said that the number of cybercrime reports had increased 13% year over year, while the average cost per cybercrime incident increased by 14%. If this trend continues, then cybersecurity company earnings could keep rising and, thus, so could this ETF’s unit price.

Motley Fool contributor Tristan Harrison does not own units of the Betashares Global Cybersecurity ETF.

iShares S&P 500 (AUD Hedged) ETF

What it does: This ETF tracks the performance of the S&P 500 Index (SP: .INX) in the United States.

By Bronwyn Allen: Warren Buffett is the world’s most successful investor. He’s generated a $100 billion fortune over his lifetime. He researches and invests in companies for a living, yet he admits a lot of his wealth has resulted from just a few really good investment decisions along the way.

One piece of advice Buffett often gives to investors who lack the necessary skills or experience to pick individual stocks is to simply buy the index. Specifically, the S&P 500 Index, which tracks the performance of the 500 largest listed companies in the US by market capitalisation.

Conveniently, you can invest in the S&P 500 via ASX ETFs, one of them being the iShares S&P 500 (AUD Hedged) ETF. Since its inception in 2014, this ETF has delivered average annual returns, including distributions, of 9.46%. That sort of growth over a 40 or 50-year investment horizon has the potential to secure you a great retirement. Furthermore, the ETF charges a small management fee of just 0.1%.

Betashares Nasdaq 100 ETF

What it does: This ETF seeks to closely mirror the performance of the 100 largest companies in the NASDAQ-100 (NASDAQ: NDX), excluding financials. The newer United States exchange houses many of the biggest and most profitable businesses of today, skewing heavily toward tech companies.

By Mitchell Lawler: Many investors are still anxiously watching the economy to see whether central banks will be able to coordinate a soft landing, or if we’ll experience a recession. 

Despite this, I believe there is no greater time to invest than when most people are concerning themselves with the next several months, rather than several years. An ETF, such as the Betashares Nasdaq 100 ETF, offers a low-cost way of dollar-cost averaging through uncertain times. 

The reason I personally favour this ETF is its composition of extremely profitable companies. All top 10 holdings, aside from Amazon at the moment, are raking in billions of dollars in profits at 10% to 35% margins. 

Even in a tumultuous time, I’d argue these tech titans are some of the most antifragile companies on offer globally. 

Motley Fool contributor Mitchell Lawler does not own units of the Betashares Nasdaq 100 ETF or shares in Amazon.com, Inc.

VanEck MSCI International Quality ETF

What it does: This ETF gives investors exposure to a group of high-quality shares from across the world (excluding Australia).

By James Mickleboro: I think the VanEck MSCI International Quality ETF could be a top option for investors in April.

In the current uncertain economic environment, I believe that a focus on quality could deliver results for investors. And this rules-based ETF has bucketloads of quality. 

That’s because, to be included in the fund, a company must have low leverage, high earnings growth rates, and high returns on equity.

Among its almost 300 holdings are companies such as Apple, Ferrari, Microsoft, Nestle, Nike, and Visa.

Motley Fool contributor James Mickleboro does not own units of the VanEck MSCI International Quality ETF or have positions in any of the stocks mentioned.

Vanguard MSCI Index International Shares ETF

What it does: The Vanguard MSCI Index International Shares ETF aims to track the MSCI World ex-Australia Index, which covers around 85% of the free float-adjusted market capitalisation of 22 developed markets.

By Brooke Cooper: One of the major upsides to investing in ETFs is, in my opinion, instant diversification.

There are hundreds of ways one can diversify their portfolio – investing in various companies, sectors, or even entirely different markets.

Those specifically interested in geographic diversification might like to take a closer look at the Vanguard MSCI Index International Shares ETF.

It holds 1,473 stocks – 69% of which are listed in the US, demands a 0.18% per annum management fee, and has gained nearly 97% since its inception in 2014.

Some of its top holdings include Apple, Microsoft, and Amazon.

Motley Fool contributor Brooke Cooper does not own units of the Vanguard MSCI Index International Shares ETF or have positions in any of the stocks mentioned.

The post Top ASX ETFs to buy in April 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 high quality ETFs for ASX investors in April
• Why did the Vanguard MSCI Index International Shares ETF just hit a new 52-week high?
• Keen to pocket the next Vanguard MSCI Index International Shares ETF dividend? Read this
• 2 amazing ASX ETFs I’d love to buy for my portfolio
• No savings? Drip-feed $500 a month into ASX shares and aim to retire in comfort

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, JPMorgan Chase, Microsoft, Nike, Nvidia, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and Nintendo and has recommended the following options: long January 2025 $47.50 calls on Nike. 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 Vectors Video Gaming And eSports ETF, Activision Blizzard, Amazon.com, Apple, Nike, Nvidia, and Vanguard Msci Index International Shares 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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Stock market crashes can be terrifying events. It’s never fun to see the value of your hard-earned shares fall in value, through no fault or action of your own. 

Many investors, including myself, try to turn this unpleasant situation into an advantage, by using the opportunity of lower share prices to pick up additional assets.

But for many investors, such as retirees and those with no other income streams coming through the door, market crashes can still be enormously unnerving events. So if a stock market crash is coming, which ASX shares would I want to hold to minimise the chances of a permanent capital loss?

Well, I would turn to the consumer staples sector. Consumer staples shares are the companies that sell us everyday essentials like food, drinks and household items. Because of the ‘staple’ nature of these goods, these companies tend to be a bit more resilient than other ASX shares and often don’t suffer as much as other shares in stock market crashes for this reason.

2 ASX shares I would want in a stock market crash

The first is Coles Group Ltd (ASX: COL). Coles is one of the most well-known shares on the ASX, and for good reason. Most suburbs around the country sport one of Coles’ distinctive red storefronts.

Coles has a strong track record of surviving and thriving during tough economic times. As an example, this is one of the few ASX 200 shares that delivered a dividend pay rise in both 2020 and 2021, years that were extremely tough for obvious reasons.

We saw the Coles share price stand up remarkably well in the COVID crash of 2020. And, unlike its arch-rival Woolworths Group Ltd (ASX: WOW), I think the Coles share price is relatively cheap right now. It’s for these reasons that this company is one I would be very happy to hold over a stock market crash:

The second is an exchange-traded fund (ETF) in the form of the iShares Global Consumer Staples ETF (ASX: IXI). My reasons for choosing this ETF for a stock market crash are similar to those of Coles.

However, the iShares Consumer Staples ETF holds more than 100 shares sourced from all around the world. Woolies and Coles are in this ETF’s portfolio, but so are other consumer staples giants like Walmart, Costco, Coca-Cola, Philip Morris International, Colgate-Palmolive and Kraft Heinz.

This ETF has returned an average of 11.24% per annum over the past ten years, has a strong dividend history, and houses some of the world’s best brand names. So thus, it’s another ASX share I would be more than happy to hold during a stock market crash.

The post If a stock market crash is coming, I want to own these 2 ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why did the Coles share price smash the ASX 200 in the first quarter of 2023?
• Passive income: How much to invest to get $800 per month
• Coles share price climbs following $100 million acquisition
• ASX shares are paying out $19 billion in dividends this week. Are you getting a piece?
• Analysts say buy these growing ASX 200 dividend shares for passive income

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, Kraft Heinz, Philip Morris International, and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Costco Wholesale and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and Philip Morris International and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Coles Group and iShares International Equity ETFs – iShares Global Consumer Staples 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) put on a rocky performance on Wednesday, eventually closing the session 0.02% higher at 7,237.2 points.

The fall came as Reserve Bank of Australia (RBA) governor Philip Lowe addressed the National Press Club after the central bank decided to pause interest rate hikes yesterday, saying:

The decision to hold rates steady this month does not imply that interest rate increases are over. Indeed, the board expects that some further tightening of monetary policy may well be needed to return inflation to target within a reasonable timeframe.

Among those leading the Aussie bourse on Wednesday was the S&P/ASX 200 Health Care Index (ASX: XHJ). It gained 0.7%, led by the Imugene Limited (ASX: IMU) share price, which gained 7.7% on news of its VAXINIA trial.

Meanwhile, the S&P/ASX 200 Communications Index (ASX: XTJ) rose 0.8%.

Weighing on the index, however, was the S&P/ASX 200 Energy Index (ASX: XEJ). It fell 0.6% with Whitehaven Coal Ltd (ASX: WHC) shares coming in as its worst performer.

So, what all that covered, let’s dive into today’s top-performing ASX 200 share.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was battery-materials favourite Core Lithium Ltd (ASX: CXO). Its gains came amid news the company’s maiden spodumene concentrate is ready for export.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Core Lithium Ltd (ASX: CXO)	$0.87	8.07%
Imugene Limited (ASX: IMU)	$0.14	7.69%
Regis Resources Ltd (ASX: RRL)	$2.16	6.4%
Silver Lake Resources Ltd (ASX: SLR)	$1.225	5.6%
De Grey Mining Limited (ASX: DEG)	$1.595	4.93%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.04	4.08%
Evolution Mining Ltd (ASX: EVN)	$3.35	4.04%
Gold Road Resources Ltd (ASX: GOR)	$1.805	4.03%
Telix Pharmaceuticals Ltd (ASX: TLX)	$7.37	3.95%
Seek Ltd (ASX: SEK)	$24.89	3.79%

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

• Is IAG stock a good defensive ASX 200 buy right now?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today
• Why Core Lithium, Red 5, Seek, and Viva Energy shares are storming higher
• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs

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 recommended Nine Entertainment and Seek. 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 Australian economy – and, by extension, the ASX – tends to move in cycles. Fortunately, some S&P/ASX 200 Index (ASX: XJO) shares, like Insurance Australia Group Ltd (ASX: IAG), have inbuilt protection from the market’s ebbs and flows.

With most experts agreeing 2023 will likely be a year of slowing economic growth in Australia, is now a good time to buy IAG shares? Let’s take a look.

The IAG share price is currently trading at $4.96, 3.33% higher than its previous close. Meanwhile, the ASX 200 is down 0.07% in late trading.

What makes IAG a defensive ASX 200 stock?

ASX shares tend to fall into one of two categories – defensive and cyclical. Generally, the earnings of cyclical companies, and their share prices, expand and contract alongside the economy and the market. Thus, investors might choose to lean on defensive shares during a downturn.

So, what might make IAG a defensive ASX 200 share? Answer: Pricing power.

The company provides insurance through brands including NRMA and CGU, to name a few.

Insurance providers can, within reason, set their own prices, as Wilsons equity strategist Rob Crookston notes, courtesy of my colleague Tony. And, boy, are they benefiting.

IAG posted a 25% jump in underlying profits for the first half, coming in at $252 million, thanks in part to a 7.5% jump in gross written premiums.

It’s worth noting, however, that insurers can be cyclical in ways other than economic ebbs and flows. KPMG insurance partner Scott Guse recently commented:

Insurance is by its nature cyclical and only 3 years ago the insurers’ profits were minimal, due to huge claims from the bushfires.

Is the ASX insurance share a buy right now?

Does that mean IAG shares are worth buying right now? Well, that depends on who you ask.

JPMorgan seems to think so. The broker has slapped an overweight rating and a $5.75 price target on the ASX 200 stock, The Australian reports. That marks a potential 15.9% upside.

But Goldman Sachs hasn’t been convinced. It has a neutral rating and a $5.18 price target on IAG shares – a potential 4.4% upside.

Not to mention, the insurer revealed its natural perils costs reached $524 million last half – $70 million higher than its allowance. That concerned Shaw and Partners senior investment adviser Jeb Richards, who labelled IAG’s shares a sell last month. He said, courtesy of The Bull:

Factors, such as global warming, continue to drive more volatile weather patterns and rising claims across the broader Australian insurance industry. We see better opportunities elsewhere.

The post Is IAG stock a good defensive ASX 200 buy right now? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• The RBA has paused. What can ASX 200 investors expect for the rest of 2023?
• Is right now a once-in-a-decade opportunity to buy CBA shares?
• With inflation peaking, I’m using the Warren Buffett method to buy shares

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs Group and JPMorgan Chase. 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 S&P/ASX 200 Index (ASX: XJO) is having a very shaky day of trading as it currently stands this Wednesday. The ASX 200 can’t seem to make up its mind about what to do today, having spent multiple stints in both positive and negative territory thus far.

At the time of writing, the index is in the red, but only just, presently down by 0.005% at just over 7,230 points. Who knows where it will end up at the end of the day.

But rather than trying to figure all that out, let’s now turn to the shares that are currently topping the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Telstra Group Ltd (ASX: TLS)

First up today is the ASX 200 blue chip share Telstra. This telco has had a notable 12.14 million of its shares find a new home on the ASX thus far this session. There’s been no news out of Telstra itself today.

But that hasn’t stopped the telco from printing yet another new 52-week high, one of several we have seen of late. Telstra is currently up by 0.47% at $4.27 a share but climbed as high as $4.30 this morning. It’s probably this strong gain that has resulted in so many shares flying around.

Pilbara Minerals Ltd (ASX: PLS)

Next we have the ASX 200 lithium producer Pilbara Minerals to analyse. At this point of Wednesday’s trading, a decent 16.7 million PIlbara shares have been changed on the ASX boards. We haven’t heard much out of Pilbara lately either. But this ASX 200 share is having an opposite problem to Telstra. Its shares have sunk today, currently down by 0.41% at $3.68.

Saying that, Pilbara has also been up at various points of today’s session, so it’s been a pretty odd day for investors here. My Fool colleague dug into what might be up with lithium shares of late yesterday, but it’s this volatility that is probably to blame for the high volumes we are seeing.

Cleanaway Waste Management Ltd (ASX: CWY)

Finally this Wednesday, we have a rare appearance by ASX 200 waste management company Cleanaway. This session has had a sizeable 53.47 million Cleanaway shares change hands as it currently stands. This is an even stranger case. There hasn’t been any news out of Cleanaway for around a fortnight.

Saying that, the company’s shares have had a pretty pleasant day, currently up by 1.26% at $2.41 a share. Normally, this wouldn’t be enough to induce a 50-million-plus volume count, so perhaps a large investor has made a major trade today.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Is IAG stock a good defensive ASX 200 buy right now?
• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• The RBA has paused. What can ASX 200 investors expect for the rest of 2023?
• Is right now a once-in-a-decade opportunity to buy CBA shares?
• With inflation peaking, I’m using the Warren Buffett method to buy shares

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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