Category: Stock Market

Investors of all ages have been known to snap up the Vanguard Australian Shares Index ETF (ASX: VAS) for its broad exposure to the S&P/ASX 300 Index (ASX: XKO), as well as its dividends.

But you better get your skates on if you want a share of its upcoming payout. The exchange-traded fund (ETF) will trade ex-dividend on Monday.

That means, in order to get a piece of its upcoming quarterly offering, not-yet-investors need to jump on board today.

Units in the Vanguard Australian Shares Index ETF closed Thursday’s session at $89.05.

Let’s take a closer look at the ETF icon’s upcoming payment.

Vanguard Australian Shares Index ETF to trade ex-divided

Those invested in the Vanguard Australian Shares Index ETF have likely been pretty happy with their position so far this year. The fund has gained 3.8% year to date – roughly 1.3% more than the S&P/ASX 200 Index (ASX: XJO) has risen.

And that’s before considering the dividends.

It paid out 74.97 cents in January and is on track to pay an estimated 57.7 cents on 20 April.

Though, the market likely won’t learn the exact value of its upcoming dividend for another few days. The ETF typically provides that information on its record date, which falls on Tuesday.

Tuesday is also the last chance those invested in the ETF have to decide if they’ll make use of its dividend reinvestment plan (DRP). The plan allows investors to receive their dividends in the form of new units, rather than cash.

That can help bolster their holding in the fund without forking out any extra cash or paying brokerage fees.

According to Vanguard, the Vanguard Australian Shares Index ETF currently offers a 4.4% dividend yield. Of course, it doesn’t have much control over that.

The ETF aims to track the ASX 300. Thus, the dividends it pays out reflect those offered by its holdings.

Making up its three biggest holdings are market giants BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Limited (ASX: CSL), making up around 10.4%, 7.7%, and 6.5% of the fund respectively.

The post Hoping to bag the next Vanguard Australian Shares Index ETF dividend? You’d better hurry appeared first on The Motley Fool Australia.

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More reading

• No savings? Drip-feed $500 a month into ASX shares and aim to retire in comfort
• How much do I need to invest in ASX shares for $100 in weekly passive income?
• Does the fall in the Vanguard Australian Shares Index ETF share price make it a no-brainer buy?
• Help safeguard your retirement with this key Warren Buffett investment strategy
• Here are 3 ways to get passive income from ASX shares

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 CSL. 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most popular ASX exchange-traded funds (ETFs), with the ETF being $5.4 billion in size as of 28 February 2023.

All of those investors are about to gain entitlement to the upcoming quarterly distribution.

The ETF is invested in a global portfolio of around 1,500 businesses. Vanguard collects the distributions and dividends and then pays those out to investors every three months.

In terms of the distribution, investors need to make sure they own units of Vanguard MSCI Index International Shares ETF before the ex-distribution date. If investors bought units on the ex-distribution date then they’d miss out.

Vanguard MSCI Index International Shares ETF ex-distribution date

According to Vanguard, this ETF, along with many other Vanguard ETFs, will have an ex-distribution date of 3 April 2023, which is next Monday.

In other words, investors only have today to buy units of the investment before they’ll miss out on the upcoming quarterly payment.

In terms of how much is going to be paid, the estimated distribution amount from the ASX ETF is 22.477 cents per share. This is the total distribution available spread across all of the unitholders.

Investors will get paid this amount on 20 April 2023.

At the current unit price, this payment is one of the smallest of the past decade and doesn’t amount to much of a yield.

Vanguard says that the ETF’s annual dividend yield is only 2.1%.

Is this investment a buy for dividends?

Vanguard MSCI Index International Shares ETF gives investors the opportunity to invest in high-quality global shares like Apple, Amazon.com, Microsoft, Visa, Alphabet, Microsoft and Berkshire Hathaway.

But, as the biggest positions in the ETF’s portfolio, they have the biggest influence on the ETF’s dividend yield as a whole. None of those businesses is known for their dividends, so it’s no wonder that the ASX ETF’s overall yield is close to 2%.

Over the last five years, this offering from Vanguard has delivered an average distribution per annum of 2.5%. So, I don’t think the yield is suddenly going to change unless those US giants start paying large dividends.

But, it could still be a very effective investment for investing for diversification and growth.

The post Keen to pocket the next Vanguard MSCI Index International Shares ETF dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• No savings? Drip-feed $500 a month into ASX shares and aim to retire in comfort
• 3 fantastic ETFs for ASX investors to buy in April
• Why I think the Vanguard MSCI Index International Shares ETF (VGS) is a buy for any portfolio
• Invested $1,000 in the Vanguard MSCI Index International Shares ETF (VGS) in 2018? Here’s how much dividend income you’ve received
• Is right now a massive buying opportunity for the Vanguard MSCI Index International Shares ETF (VGS)?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, 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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There are a good number of quality ASX dividend shares to choose from on the ASX 300 index.

Two with big potential yields that have been tipped as buys are listed below. Here’s what analysts are saying about them:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The first ASX 300 dividend share that has been named as a buy is Dalrymple Bay Infrastructure.

It is an infrastructure company and the long term operator of the Dalrymple Bay Coal Terminal (DBCT). It provides terminal infrastructure and services for producers and consumers of Australian coal.

Dalrymple Bay Infrastructure has been tipped to pay big dividends in the near term. This is thanks to strong demand for coal and its position as the cheapest export route-to-market for users within its Bowen Basin catchment region.

Morgans is a fan and has an add rating and $2.63 price target on its shares.

As for dividends, its analysts are forecasting dividends per share of approximately 21 cents in FY 2023 and 22 cents in FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.56, this will mean very generous yields of 8.2% and 8.6%, respectively.

Mineral Resources Ltd (ASX: MIN)

Another high yield ASX 300 dividend share that has been named as a buy is Mineral Resources.

It is a mining and mining services company with exposure to iron ore and lithium.

The team at Bell Potter is positive on Mineral Resources. The broker thinks the company is well-placed for earnings and dividend growth thanks to its business transformation, which it believes will underpin “growing production volumes and improving margins.”

In respect to dividends, Bell Potter is forecasting fully franked dividends of 373.4 cents per share in FY 2023 and 940.9 cents per share in FY 2024. Based on the current Mineral Resources share price of $79.93, this will mean 4.7% and 11.8% dividend yields, respectively.

Bell Potter has a buy rating and $110.00 price target on its shares.

The post Buy these high yield ASX 300 shares for big dividends: brokers appeared first on The Motley Fool Australia.

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More reading

• ASX shares are paying out $19 billion in dividends this week. Are you getting a piece?
• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Is the lithium price now on the way back up?
• Why the outlook for these ASX 200 lithium shares could be ‘very favourable’
• How we beat the stock market by 7% per year: fund manager

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

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It’s no secret that the ASX stock market has had a shaky month or so. Despite the rip-roaring week many ASX shares have had this week, the ASX 200 still remains a long way off of its all-time highs of more than 7,600 points that we saw back in 2021.

But don’t despair. The ASX 200 has never failed to surpass a previous all-time high in all of its hundred-year-plus history. And there’s no reason to believe this time will be different. So it’s not a matter of if the next bull market is coming, but when.

But while we wait, we have the chance to pick up additional shares of our favourite companies before they get even more expensive.

So let’s talk about one ASX stock I would be happy to buy today and hold forever – Warren Buffett’s favourite timespan to own a share.

It’s MFF Capital Investments Ltd (ASX: MFF). MFF Capital is a listed investment company (LIC). This means it doesn’t function in the same way as your Coles Group Ltd (ASX: COL) or Telstra Group Ltds (ASX: TLS). Instead, it invests in shares and other assets itself, on behalf of its investors.

Unlike some other LICs on the ASX, MFF Capital doesn’t indulge in flashy marketing and showy publicity. But that’s exactly why I like this company. Every dollar it makes is used for the benefit of its shareholders. MFF is run by Chris Mackay – one of the most well-regarded fund managers in the country.

One ASX stock I would buy and hold forever

Mackay is perhaps most famous for his role in co-founding Magellan Financial Group Ltd (ASX: MFG) and recently stepped in to help his old company during the tumult of the past few years. Mackay is an unabashed Warren Buffett fan, and emulates Buffett’s style of finding the world’s top companies, buying in at a great price, and holding for the long term.

That’s why many of MFF Capital’s top portfolio holdings have been present for years.

MFF Capital usually only invests in US shares. In its portfolio, you’ll find famous names like Microsoft, American Express, Visa, Asahi, Bank of America, and Alphabet.

These are unquestionably some of the best names in investing, and I’m delighted that investing in MFF also means I’m investing in names of this calibre.

But let’s get to the meat and potatoes: performance.

By this writer’s calculations, MFF shares have returned an average of 9% or so per annum in capital growth alone over the past ten years. Including dividend returns, this rises to almost 12% per annum.

So with this LIC, you are getting inbuilt diversification, thanks to its large portfolio of US shares. You are also getting an investment run by one of the best investing minds in the country. Not to mention one that has delivered ASX-crushing returns over a long period of time.

That’s why I would be happy to buy this ASX stock and hold it for the next bull market and well beyond.

The post A bull market is eventually coming: One ASX stock I’d buy now and hold forever appeared first on The Motley Fool Australia.

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More reading

• ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon
• The bigger Bendigo Bank dividend is being paid today. Here’s the latest
• Boost your passive income with these ASX dividend shares: analysts
• Don’t stress! The stock market is ‘a long way from a crisis’
• This ASX share’s halved in 5 years, but I’m still sticking with it

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Alphabet, American Express, Mff Capital Investments, Microsoft, Telstra Group, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Bank of America, Microsoft, and Visa. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended Alphabet. 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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Mining shares have carried the S&P/ASX 200 Index (ASX: XJO) over the past 18 months.

But many experts reckon the golden run is far from over for some of those stocks.

Here are two examples that finance expert John-Louis Judges is still keen on:

‘A promising investment opportunity’

Despite hiccups in lithium price growth, the Pilbara Minerals Ltd (ASX: PLS) share price is still more than 10% in the black so far this year.

The fervour for the battery ingredient doesn’t look like abating anytime soon.

“The sky-high demand for lithium chemicals facilitates growth in lithium ore extraction,” Judges told The Bull.

“Pilbara’s production of over 300,000 dry metric tonnes of spodumene concentrate, at an average realised sales price of US$4,993 per dry metric tonne, further reinforces the company’s strong market position.”

This prolific production, a stunning 647% in revenue growth and a decent dividend all add up to a buy for Judges.

“It [is] a promising investment opportunity for those seeking exposure to the lithium mining industry,” he said.

“Pilbara Minerals’ decision to declare a dividend of 11 cents a share demonstrates the company’s commitment to returning value to its shareholders.”

According to CMC Markets, nine out of 16 analysts currently rate the stock as a buy.

The best bet for a ‘safe haven’ asset

Judges said that, with gold prices rising in recent times, Silver Lake Resources Ltd (ASX: SLR) is his pick to take advantage.

“Gold has historically been viewed as a safe-haven asset during times of economic uncertainty, and with ongoing geopolitical tensions and concerns of inflation, there is potential for an increase in its demand.”

The latest results were “strong” for Silver Lake.

“The company’s healthy cash and bullion position of $253 million provides a strong financial foundation for future growth and investment.”

Judges praised the gold miner’s “operational efficiency and excellent market position”.

“The potential for a higher value of gold in the near term makes Silver Lake Resources a good investment opportunity for anyone looking to gain exposure to the gold mining industry.”

Other professional investors largely agree with Judges. Four out of the five analysts that cover Silver Lake currently rate the stock as a strong buy.

The post ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Citi gives its verdict on the Pilbara Minerals share price
• Why are ASX 200 gold shares like Newcrest being thumped on Thursday?

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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) dividend is due to hit bank accounts today.

Shares in the regional bank have slid 11% in the year to date, closing at $8.70 apiece on Thursday.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has gained 1.2% in the year to date.

Bendigo and Adelaide Bank dividend is due today

Bendigo and Adelaide Bank shareholders are set to collect an interim dividend of 29 cents per share, fully franked.

The dividend is 9.4% higher than the 26.5 cents a share dividend paid in the second half of last year.

The bank reported statutory net earnings of $249 million in the first half of FY23, up 49.3% on the prior half but down 22.5% on 1H FY22.

The FY23 interim dividend represents a 55.6% payout ratio, calculated on a cash basis.

Commenting on the dividend in a half-yearly report in February, Bendigo Bank stated:

We announced a fully franked interim dividend of 29.0 cents per share, supporting our strong capital position and our business outlook, while balancing our commitment to support our shareholders with a reasonable return on their investment.

Taking a look at Bendigo Bank’s dividend history, the company also paid 26.5 cents per share in the first half of 2022 and the second half of 2021.

However, back in FY19, prior to COVID-19, the bank offered both an interim and final dividend of 35 cents per share.

Bendigo Bank also offers a dividend reinvestment plan. This means shareholders can reinvest all or part of the dividend into new shares in the company. The bank also offers a bonus share scheme, enabling investors to receive bonus shares for no consideration instead of a dividend.

Share price snapshot

The Bendigo and Adelaide Bank share price has fallen 15.5% in the past year amid broader bank share volatility.

For perspective, the ASX 200 has shed 5.2% in the past year.

Bendigo Bank has a market capitalisation of more than $4.9 billion based on the current share price.

The post The bigger Bendigo Bank dividend is being paid today. Here’s the latest appeared first on The Motley Fool Australia.

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More reading

• ASX shares are paying out $19 billion in dividends this week. Are you getting a piece?
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?
• Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?

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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for passive income options, then the ASX dividend shares listed below could be worth considering.

Here’s why these could be the dividend shares to buy right now:

Transurban Group (ASX: TCL)

The first ASX dividend share for income investors to look at buying is Transurban.

It manages and develops urban toll road networks in Australia and the United States. Its portfolio of important roads includes Citylink, Cross city tunnel, the Eastern Distributor, and AirportlinkM7.

The team at Citi believe it would be a great option for investors. Particularly in the current inflationary environment. Its analysts highlight that “CPI-linked increases come through with a delay indicating a strong growth path ahead.”

The broker believes this will underpin a “c.6% p.a. DPS CAGR from FY23-FY26” and is forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $14.21, this will mean yields of 4.1% and 4.2%, respectively.

Citi has a buy rating and $16.00 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share for income investors to look at is Universal Store.

It is the youth fashion retailer behind the Universal Store, Thrills, and Perfect Stranger brands.

Morgans is a fan of the company due to its strong brands and exposure to younger consumers. The broker expects the latter to continue spending despite the tough economic environment.

It notes that there is a “general risk around a decline in consumer expenditure on discretionary categories like apparel, [but] we highlight that the youth demographic is likely to be more resilient.”

In light of this, the broker believes Universal Store will be well-placed to pay fully franked dividends of 30 cents per share in FY 2023 and then 35 cents per share in FY 2024. Based on the latest Universal Store share price of $4.95, this will mean yields of 6% and then 7.1%.

Morgans has an add rating and $6.85 price target on its shares.

The post Boost your passive income with these ASX dividend shares: analysts appeared first on The Motley Fool Australia.

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More reading

• 2 growing ASX passive income shares to buy now: brokers
• Huge yields! These are the best ASX passive income shares to buy now: Morgans
• Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts
• Buy these 3 ASX retail shares: Morgans
• Experts name 2 high quality ASX 200 shares to buy for your retirement portfolio

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

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Investors could be forgiven for thinking the rally in the S&P/ASX 200 Index (ASX: XJO) to start the year was yet another false dawn.

The market has dropped almost 6% since the February peak, to deliver a brutal reality check to stock portfolios.

Of course, a lot of the stress this month relates to US and Swiss bank failures. It seems after steep interest rates rises over the past year, parts of the system are buckling under pressure.

It’s all enough to make your hair turn grey.

“The press is filled with stories of banking failures and global financial crisis (GFC) analogies,” Wilsons head of investment strategy David Cassidy said in a memo to clients.

“Equity markets have fallen ~3% this month, and demand for safe haven assets has risen.”

So are we on the brink of another crisis?

Volatility spike vs financial crisis

Fortunately for investors, Cassidy reckons what we’re experiencing now is merely a “volatility spike”, rather than a full-blown disaster.

“Our analysis suggests that in comparison to genuine ‘crisis’ periods such as the COVID dislocation of 2020 and the GFC of 2008, most market stress indicators are still a long way from ‘extreme’ levels,” he said.

“Key indicators of economic activity suggest conditions remain relatively solid, although a growth slowdown is widely expected (and we agree).”

Out of all the measures that Wilsons analysts use to measure market stress, the Merrill Lynch Option Volatility Estimate (NYSEGIS: MOVE) is the one that’s most outside of normal levels.

This index represents interest rate volatility.

“This is arguably not so much an indicator of severe current market stress but an expression of a heightened fear that the Fed could overtighten, causing a recession, a genuine banking crisis, or both,” said Cassidy.

“Importantly, we do not see a credit dimension to current banking strains, so the Fed still has some wiggle room.”

Cassidy fully admits that share markets are “jittery”. 

“But the real economy continues to look robust.”

What will happen from here?

Cassidy forecasts that stock markets will soon “settle down” and refocus on growth and inflation fundamentals.

“While there are still risks in this fundamental backdrop, we do see prospects as looking encouraging for a relatively orderly slowdown in both growth and inflation,” he said.

“This should see equity markets lift again in response.”

But the Wilsons team will be vigilant on all the metrics, as the situation can change quickly.

“We will continue to watch our stress indicators closely for warning signs of more severe strains.”

The post Don’t stress! The stock market is ‘a long way from a crisis’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 5 things to watch on the ASX 200 on Thursday
• To pause or not to pause? Here are the predictions on next week’s RBA rate decision
• Here are the top 10 ASX 200 shares today

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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Investing in ASX dividend shares can be a great way to generate a steady stream of passive income. However, many people believe that they need a large sum of money to get started. Especially if they’re wanting diversification.

The truth is, some modern-day brokerage accounts offer no minimums, making the building of a diversified dividend portfolio for regular income much more achievable.

In this article, I highlight seven high-yielding ASX shares that can be invested in for under $10 each, unlocking the chance to create a diversified income stream with less than $70 from day one.

Note: All dividends in the charts below are semiannual dividends per share

Finding income in financials

The financial sector is a common area of the market among investors to go hunting for dividends.

A quick look at the big four banks will reveal consistently strong earnings margins and dividend yields that would make interest on a savings account look disappointing. Though, these mammoths of Australian finance are all above the $10 threshold, prompting a further search elsewhere.

Two possible alternatives that come to mind are Magellan Financial Group Ltd (ASX: MFG) and Bank of Queensland Ltd (ASX: BOQ) at $8.83 and $6.49 a pop, respectively.

Magellan, an Australian funds manager, has experienced a sharp reduction in dividends recently (shown above) due to a mass exodus of funds under management. However, the similarly large fall in the company’s share price has resulted in a yield of 13.1%.

Whereas, the Bank of Queensland dividend has bounced back after getting ditched during the pandemic. Currently, the retail bank is offering up a 7.1% yield, assuming it remains stable.

ASX retail shares raining dividends

Lately, some of the highest dividend yields can be found among ASX retail shares. Exceptionally sturdy results paired with a forward-looking market have, in many cases, suppressed share prices and driven yields skyward.

A $10 cap might rule out iconic companies such as Wesfarmers Ltd (ASX: WES) and JB Hi-Fi Limited (ASX: JBH), but there are still some quality names in the mix. Three ASX dividend shares that could jumpstart the passive income engine are:

• Shaver Shop Group (ASX: SSG) at $1.05 per share
• Nick Scali Limited (ASX: NCK) at $9.29 per share; and
• Accent Group Ltd (ASX: AX1) at $2.29 per share

As shown above, all three of these retail shares handed out dividends that have been gradually trending higher over the past five years. Furthermore, each of the above companies sells different products, ranging from grooming products to footwear.

At the time of writing, these three companies — Shaver Shop, Nick Scali, and Accent — offer dividend yields of 9.7%, 8.1%, and 7% respectively.

Sold-off ASX dividend shares

Lastly, if picking up some dividend-payers that have had a tough trot so far this year is of interest, here are two possibilities.

Filling out the final spots of the seven ASX dividend shares are Whitehaven Coal Ltd (ASX: WHC) and Rural Funds Group (ASX: RFF), trading at $6.67 and $2.00. These companies provide exposure to energy and real estate, adding further diversification.

Reported net profits after tax (NPAT) for these two have launched to new heights for the past trailing 12-month periods. At the same time, shares in both have staggered lower in 2023.

Of all the sub-$10 shares on this list, Whitehaven Coal is possibly the one with the most volatile history for dividends. Whereas, Rural Funds has been steadily increasing its dividends to shareholders over the years.

Foolish takeaway

Overall, the average yield across all seven ASX dividend shares is around 8.8%. And, for reference, buying one share of each would come to a total of $36.62.

That’s not too shabby for some extra income in the back pocket. However, I personally think focusing on fundamentals can produce far superior returns in the long run. Ultimately, the share price provides little to no insight into the quality or ‘cheapness’ of an investment.

Another approach could involve identifying one high-quality dividend share and investing in it regardless of the share price — whether above or below $10.

The post 7 ASX dividend shares you can buy for under $10 appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• $1,600 annual dividend income from a $20,000 ASX share portfolio? Here’s how
• Forget term deposits and buy these high-yield ASX dividend shares instead: experts
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?
• Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade

Motley Fool contributor Mitchell Lawler 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 Rural Funds Group and Wesfarmers. The Motley Fool Australia has recommended Accent Group and Jb Hi-Fi. 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Chester Asset Management portfolio manager Rob Tucker recalls how painful long-term investing can be, but why it’s worth sticking to it.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Rob Tucker: When I think about those sorts of questions, I do think about pricing power — when a company can raise prices without impacting customer engagement. 

I would say CSL Limited (ASX: CSL) has those attributes. It would be CSL or the Lottery Corporation Ltd (ASX: TLC) for me.

MF: Do you hold Lottery Corp?

RT: We do, yep. Since they’ve de-merged, they’ve shown a really strong ability to tweak prices with Powerball and some of the other games. It’s certainly one that’s got margin expansion through the ability to sell digital tickets, and some pricing levers. I like the Lottery Corp. 

There is probably a five-year wait in terms of the Victorian licence, so that’s a near-term potential obstacle. That’s why I’d err on the side of saying CSL on the five-year yields and I’d hold if the market was closed.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

RT: One thing we’ve done occasionally with our fund, in the cyclical space, we’ll value the asset in the ground and come up with a net asset value. That’s how we value the company. Sometimes we’ve been a little early in the strategic merit of that asset base. Sometimes we have to be very patient and [cop] a fair bit of drawdown on individual stocks because we’ve been a bit early. 

I’ll use a stock like Comet Ridge Ltd (ASX: COI) [as an example]. Comet Ridge we bought in 2018 on the premise that it is a large gas discovery in the Bowen Basin and at some point that asset will be the next cab off the rank in terms of production. They have a joint venture with Santos Ltd (ASX: STO) for half of it, and 100% owned the other half. 

Comet Ridge has been a painful stock for us, but as we sit here today five years later, we’re really excited about what happens the next two years, because it is absolutely still a gas resource in the middle of Queensland that’s going to be desperately needed to help solve the East Coast gas crisis. 

That’s an example of one I’ve still got high conviction in, but I’ve been wrong for four years basically.

MF: That would be painful, especially for professional investors like yourselves, because you have to report performance periodically. Even if you have high conviction for a long time, it’s a tricky balance, isn’t it?

RT: Yep. And smaller caps tend to have more volatility. 

Large caps, if something changed fundamentally with CSL, our fund’s of the size we could change our mind in the first two hours. With a small cap, you’ve got to be really vigilant and very, very detailed in why you’re holding those interested companies. And they can move aggressively against you. 

The other point is just sometimes getting the portfolio weights wrong. Sometimes some of your best ideas, you’ve only got a 2% position and you wish it was a 4% position. Sometimes you’ve got a 4% position you wish was only a 1% position. 

When they’re going down, you want less of them, when they’re going up you want more of them.

It’s always getting the portfolio weight right is as much a challenge in portfolio management [as] getting the right stocks.

The post This ASX share’s halved in 5 years, but I’m still sticking with it appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 giant is about to wake up from a 3-year slumber. Are you ready?
• Fundie loves these 2 ASX 200 shares that are ‘difficult to replicate’
• Does the CSL share price fall finally make it a no-brainer buy?
• Why these 3 ASX 200 shares could be leading picks for dividends and growth
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tony Yoo has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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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