Category: Stock Market

Risk-averse investors tend to favour term deposits for their perceived certainty. But, as we covered this week, the ‘safe’ returns delivered by term deposits can be eroded when inflation is running hot.

It’s true that market volatility may not impact savings accounts and term deposits to the same degree as ASX shares. But, considering the S&P/ASX 200 Index (ASX: XJO)’s ability to deliver a net average annual return of 11.23% (over 10 years, including dividends), how much profit are you prepared to sacrifice for a smooth sail?

The Aussie share market is home to many high-quality, well-established companies with proven track records for delivering growth. And while past performance is no guarantee of future outcomes, creating a diversified portfolio of ASX blue-chip stocks can go a long way to reducing your risk exposure.

On that note, we asked our Foolish writers which ASX shares they think offer the best alternative investment to a term deposit right now.

Here is what they told us:

6 ASX stock tips for faint-hearted investors in March 2024

• Rural Funds Group (ASX: RFF), $810.01 billion
• Growthpoint Properties Australia Ltd (ASX: GOZ), $1.85 billion
• New Hope Corporation Ltd (ASX: NHC), $3.72 billion
• Metcash Ltd (ASX: MTS), $4.24 billion
• Woolworths Group Ltd (ASX: WOW), $39.48 billion
• Telstra Group Ltd (ASX: TLS), $43.44 billion

(Market capitalisations as of market close 22 March 2024).

Why our Foolish writers think you should buy these ASX shares instead of investing cash in the bank

Rural Funds Group

What it does: Rural Funds is a real estate investment trust (REIT) that owns different types of farms, including cattle, almonds, macadamias, and vineyards. 

By Tristan Harrison: The farms owned by Rural Funds Group are spread across different states and climactic conditions, creating diversification for its portfolio. Furthermore, most of the REIT’s tenants are large entities, with some being listed on the ASX or on international bourses. 

Rural Funds is currently paying an annualised distribution of 11.73 cents per unit, which translates into a distribution yield of 5.61% on current pricing.

Attractively, rental income continues to grow through rent increases built into the company’s contracts. Rural Funds also invests in its farms to improve productivity, which in turn increases rental (and capital) value. 

For all these reasons and more, I think the ASX 300 stock offers far better long-term investment prospects than a term deposit.

Motley Fool contributor Tristan Harrison owns shares of Rural Funds Group.

Growthpoint Properties Australia Ltd

What it does: Growthpoint Properties is a real estate investment trust (REIT) that invests in industrial and office assets. 

By Tony Yoo: With a stunning dividend yield of 8.27%, this stock flogs any term deposit for income returned each year.

Admittedly the share price has dropped 17.45% over the past 12 months, but with interest rate relief possibly not too far away, optimism abounds about the property sector.

Indeed, broking platform CMC Invest shows five out of seven analysts rating Growthpoint Properties as a strong buy right now.

Last month’s business update showed the net tangible assets standing at $3.75 per share, which means the current stock price is trading at about a 34% discount.

Motley Fool contributor Tony Yoo does not own shares of Growthpoint Properties Australia Ltd.

New Hope Corporation Ltd

What it does: New Hope is a leading Australian coal miner. The company currently operates two open-cut coal mines: New Acland in Queensland and Bengalla in New South Wales.

By Bernd Struben: With coal prices coming down from their record highs, so too have New Hope’s dividend payments. But with shares in the ASX 200 miner also down 14.73% in 2024, I believe the stock represents good value. And it still offers term-deposit-busting yields.

New Hope’s reduced interim dividend came out at 17 cents per share. Atop the 30 cents per share final dividend, the stock currently trades on a fully franked trailing yield of 15.91%.

The miner remains well funded, with available cash of $480 million as at 31 January.

And I believe coal prices will surprise to the upside in the half-year ahead. That’s based on my expectations of a soft landing for the global economy and a stronger-than-expected rebound from China’s industrial sector.

Motley Fool contributor Bernd Struben does not own shares of New Hope Corporation Ltd.

Metcash Ltd

What it does: Metcash is the little-talked-about rival to the big dogs within the food, liquor, and hardware retailing space. Except, at 5,412 storefronts strong, Metcash is no small fry. You’ll know the company through brands such as IGA, Bottle-O, Cellarbrations, Mitre 10, Home Timber & Hardware, and Total Tools.

By Mitchell Lawler: If I stashed my cash in something other than inflation-crippled savings, my go-to would be a company operating in a stable, needs-based industry – and hey, bingo! Food, beverages, and building goods are about as primitive and needs-driven as it gets. 

I’d opt for Metcash over Woolworths or Coles Group Ltd (ASX: COL) as calls to break up the bigger players grow louder. A bill proposing stronger government powers to take a scalpel to corporations through divestiture powers will hit the Senate floor soon. 

A smaller opponent like Metcash could benefit from such a move. Plus, Metcash’s 5.67% dividend yield puts a term deposit rate to shame. 

Motley Fool contributor Mitchell Lawler does not own shares of Metcash Ltd.

Woolworths Group Ltd

What it does: Woolworths is the retail giant responsible for 1,400 stores across its Woolworths Supermarkets (Australia), Countdown Supermarkets (New Zealand), and BIG W brands.

By James Mickleboro: With the supermarket giant’s shares dropping to a 52-week low last week, I think now is a great time for investors to invest. Particularly given that concerns over inquiries into price gouging and anti-competitive behaviour claims have driven this weakness.

Goldman Sachs believes the selling has been an overreaction, noting that similar inquiries over a decade ago had no real impacts on the retailer’s earnings. In light of this, the broker continues to forecast solid earnings and dividend growth out to at least FY 2026.

With respect to the latter, Goldman expects fully franked dividends per share of $1.09 in FY 2024, $1.17 in FY 2025, and $1.27 in FY 2026. And with Goldman having a conviction buy rating and a $40.40 price target on Woolworths shares, some big gains could be on the cards for investors.

Motley Fool contributor James Mickleboro does not own shares of Woolworths Group Ltd.

Telstra Group Ltd

What it does: Telstra is the market-leading telco in Australia. It has the largest share of the mobile network, as well as fixed-line internet services.

By Sebastian Bowen: I think Telstra is one of the most attractive income investments out of the entire ASX 20 right now. For one, this company has a highly defensive earnings base, with customers unlikely to stop paying for Telstra services, regardless of the economic weather. 

After a few years of dividend stagnation, Telstra has been raising its payouts over the past two years. However, the telco’s share price has been subdued over the past few months. This has resulted in a fully franked dividend yield of more than 4.52% at recent pricing.

I’d rather have that over a term deposit any day.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Group Ltd.

The post Top ASX shares to buy instead of a term deposit in March 2024 appeared first on The Motley Fool Australia.

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More reading

• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• ASX energy shares losing charge amid fresh warnings of gas supply shortfalls
• Popular ASX All Ords shares with ex-dividend dates next week
• Want the latest quarterly dividend from Rural Funds? You’d better hurry
• Why Coles shares could be a best buy for blue chip investors

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group, Rural Funds Group, and Telstra Group. The Motley Fool Australia has recommended Metcash. 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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In early 2022, Block Inc (ASX: SQ2) shares made one of the most dramatic ASX debuts in recent memory.

The ASX regularly hosts its fair share of new listings and initial public offerings (IPOs). But before Block joined the ASX boards, the ASX had never welcomed what was then a US$64.77 billion ($99.22 billion at today’s currency rates) company onto the stock exchange.

The dual nature of Block’s stock means that we don’t exactly have all of Block’s size available for trading on the ASX. Even so, the company’s ASX listing instantly put Block within the top 100 largest ASX shares by market capitalisation.

But unlike the vast majority of large-cap ASX stocks, Block has never paid its investors a dividend – not in the United States or on the ASX. Even if you got given Block shares in exchange for your old Afterpay stock in early 2022, you have yet to see a dime of dividend income out of this company. Not in 2022, 2023 or 2024 to date.

But could 2024 be the year this rather barren track record changes? Could Block pay investors income this year?

Is Block going to become a divided stock in 2024?

Right off the bat, let’s get something straight. On the ASX, it is unusual for any profitable company to refrain from paying dividends. Our unique system of franking encourages companies to fork out dividends far more than in other countries.

Thanks to decades of this system, ASX investors have arguably come to expect dividends from their ASX shares.

But over in the United States, it is a different story. There are plenty of dividend payers of course. But in the world of US tech stocks, paying a dividend is almost unfashionable.

Tech giants like PayPal, Netflix, Amazon and Alphabet have never paid out a single dividend, despite their gargantuan cash piles and, in the latter two’s case, trillion-dollar market caps.

It was only last month that Facebook-owner Meta Platforms announced its first-ever dividend. And that hasn’t even been paid out yet.

But what about Block shares?

Well, a look at the company’s financials should paint us a picture of this company’s income potential.

Last month, Block revealed its latest earnings, covering the fourth quarter of 2023. The company revealed quarterly net revenue of US$5.77 billion, up 24% year on year.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $562 million, up 100% year on year. This helped the company to report a gross profit of US$2.03 billion, up 22% from the same quarter in 2022. Block revealed that its full-year profit for 2023 was US$7.5 billion, up 15% from 2022.

However, Block also revealed an operating loss of US$131 million for the quarter.

Of course, we can’t know if or when Block will pay a dividend until the moment we hear it from the company’s proverbial mouth.

But I don’t think it’s likely. Block’s finances do seem to be in rude shape, especially compared to prior years. But a company that reports an operating loss is probably not going to be in a position to fund a dividend.

For example, Meta has had billions of dollars on its balance sheet in surplus cash flow for years, and only just decided to start forking some of it out as dividends.

As such, I think Block is more likely to keep any surplus cash within the business for now. Block’s ASX shareholders might be waiting a long time if they are hoping for a dividend.

The post Do Block shares come with a dividend in 2024? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX today
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today
• Here are the top 10 ASX 200 shares today
• Block share price hits new 52-week high. So, is SQ2 a best stock to buy now?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Netflix, PayPal and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Block, Meta Platforms, Netflix, and PayPal. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Netflix, and PayPal. 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 share market is a great place to generate dividend income.

And one of the best areas of the market to do this has historically been the banking sector.

That’s because the big four banks have a tendency of sharing a large amount of their profits with their loyal shareholders.

And with these banks generating billions in profits each year, this certainly isn’t chump change.

For example, in FY 2023, Westpac Banking Corp (ASX: WBC) paid out a total of $5 billion across its fully franked interim and final dividends.

But these dividends have been paid. What about the future? Will Australia’s oldest bank continue to line the pockets of its shareholders with big dividends?

Let’s find out what a $20,000 investment in the banking giant’s shares could generate in dividend income over the next 12 months and beyond.

Dividend income from Westpac shares

Firstly, if I were to invest $20,000 (and $14.83 extra) in the bank’s shares at current prices, I would end up owning 759 units.

According to a note out of Ord Minnett, its analysts are expecting Westpac to increase its dividend by 2.1% to $1.45 per share in FY 2024.

If this proves accurate, my 759 units would generate $1,100.55 in dividend income over the next 12 months.

Looking to the following year, Ord Minnett is anticipating a further 3.4% increase to the Westpac dividend to $1.50 per share. This would generate dividend income of $1,138.50 from my 759 units.

But the returns don’t necessarily stop there. The broker currently has an accumulate rating and $28.00 price target on the bank’s shares.

If the Westpac share price were to rise to that level, my holding would have a market value of $21,252. That’s approximately $1,250 more than I paid for the shares.

The post How much dividend income would I get from a $20k investment in Westpac shares? appeared first on The Motley Fool Australia.

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More reading

• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income
• $2.1 million! Who are the highest paid ASX 200 directors?
• 4 ‘overheated’ ASX 200 shares to stay away from
• Here’s the Westpac dividend forecast through to 2026
• Why Westpac shares could suffer from a ‘significant reset’

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 a lacklustre day for the Aussie share market with the S&P/ASX 200 Index (ASX: XJO) down 0.4%.

But among a sea of red, scores of ASX exchange-traded funds (ETFs) are hitting 52-week highs.

How can that be?

Probably because all of them are predominantly based on US and international shares. So, their new peak prices have little to do with what the ASX 200 is doing today.

In fact, US shares have been outperforming ASX 200 stocks for a while now. Over the past 12 months, the S&P 500 has risen at triple the pace of the ASX 200, up 33.1% compared to 0.5%, respectively.

Let’s check out a dozen of the most popular ASX ETFs hitting 52-week highs today.

ASX ETFs hitting new 52-week highs on Friday

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is up 1.03% to $124.99 at the time of writing. This ETF has bounced 28.7% higher over the past 12 months.

Its 52-week high today was $125.

This popular ETF provides access to 1,500 of the world’s largest listed companies from 23 countries, excluding Australia.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is up 1.19% to $53.51. This index ETF has risen 33.6% over the past year.

Its 52-week high today was $53.54.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is up 0.92% to $55.09. This ETF has risen 40.5% over the past 12 months.

Its 52-week high today was $55.14.

QUAL was among the top-performing ETFs of 2023. It invests in the world’s highest-quality companies based on key metrics such as high return on equity (ROE) and low debt.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

The Vanguard US Total Market Shares Index ETF is up 1.28% to $398.15. This ETF represents 3,747 American companies and has risen 33.4% over the past 12 months.

Its 52-week high today was $398.26.

iShares Global 100 ETF (ASX: IOO)

The iShares Global 100 ETF is up 0.58% to $135.11. This ETF has risen 33.6% over the past 12 months.

Its 52-week high today was $135.15.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

The Global Sustainability Leaders ETF is up 1.27% to $15.17. ETHI holds shares in 300 global companies considered climate leaders, and excludes tobacco and weapons. It’s risen 30% over the past 12 months.

Its 52-week high today was $15.18.

Vanguard All-World Ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World Ex-US Shares Index ETF is up 0.25% to $89.52. This index ETF has risen 15.5% over the past 12 months.

Its 52-week high today was $89.84.

Vanguard Diversified High Growth INDEX ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF is up 0.25% to $64.46. This ETF has risen 16.6% over the past 12 months.

Its 52-week high today was $64.58.

This ETF offers extreme diversification with 16,000 Aussie shares and international shares in its basket. The VDHG holds seven Vanguard index funds comprising 90% global and ASX shares, and 10% bonds.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF is up 1.35% to $129.33. This ETF has risen 19.2% over the past 12 months.

Its 52-week high today was $129.42.

The unique ETF gives investors exposure to a diversified portfolio of well-priced US companies with sustainable competitive advantages (i.e., moats).

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)

The Vanguard Ethically Conscious International Shares Index ETF is up 1% to $89 at the time of writing — its new 52-week high. This ASX index ETF has risen 31.25% over the past 12 months.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The BetaShares Global Quality Leaders ETF is up 0.98% to $29.94. This ETF has risen 36.3% over the past 12 months.

Its 52-week high today was $29.95.

This ASX ETF invests in companies with strong return on equity (ROE), debt to capital, cash flow generation, and earnings stability.

Global X Robo Global Robotics & Automation ETF (ASX: ROBO)

The Global X Robo Global Robotics & Automation ETF is up 1.64% to $78.32. This ETF has risen 13.3% over the past 12 months.

Its 52-week high today was $78.38.

In other news…

Several individual shares are also hitting 52-week highs today.

They include Goodman Group (ASX: GMG) at $32.03 and Scentre Group (ASX: SCG) at $3.41.

Suncorp Group Ltd (ASX: SUN) shares also hit a new 52-week high of $16.32.

The post 12 ASX ETFs breaking the mould to hit 52-week highs today appeared first on The Motley Fool Australia.

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More reading

• Here are the next distribution dates for your Vanguard ETFs
• 3 ASX ETFs to buy for exposure to the booming international AI sector
• How I’d invest my first $1,000 in ASX shares in 2024
• 4 top ASX exchange-traded funds smashing record highs on Wednesday
• Give your portfolio a big boost with these high-quality ASX ETFs

Motley Fool contributor Bronwyn Allen has positions in BetaShares Global Sustainability Leaders ETF, Goodman Group, Vanguard Diversified High Growth Index ETF, and Vanguard Us Total Market Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and iShares S&P 500 ETF. The Motley Fool Australia has recommended Goodman Group, VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian share market may be trading close to a record high but the same cannot be said for all ASX shares.

For example, much to the dismay of their shareholders, the three ASX shares listed below have just hit 52-week lows. Here’s what is happening:

Air New Zealand Limited (ASX: AIZ)

The Air New Zealand share price hit a 52-week low of 55 cents before rebounding. This latest decline means that the airline operator’s shares are now down 21% over the last 12 months.

Last month, Air New Zealand released its half-year results and reported a 13% increase in operating revenue to NZ$3,474 million but a disappointing 39% decline in net profit after tax to NZ$129 million. However, it is worth noting that in the prior corresponding period the company recorded one of its highest-ever results thanks to the rapid return of air travel as New Zealand’s borders reopened.

Clover Corporation Ltd (ASX: CLV)

The Clover share price tumbled to a 52-week low of 52 cents today. The ingredients company’s shares have now lost 55% of their value over the last 12 months.

Earlier this week, Clover released its half year results and reported a 39% decline in sales to $27.3 million and a loss after tax of $0.6 million. This poor result was caused by ongoing challenges in its infant formula segment. The company advised:

A combination of factors, including declining global birth rates, a shift in Chinese manufacturing preferences towards Algae DHA over fish DHA, and intensified competition in a shrinking market, has led to continued sluggish demand for infant formula products.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price dropped to a 52-week low of 6.6 cents today. This decline means that the lithium developer’s shares are now down a whopping 87% since this time last year.

Investors have been rushing to the exits since the release of the scoping study for the Kachi lithium project last year. That study relies heavily on lithium price assumptions that are materially higher than current levels.

Whereas if you use realistic lithium price assumptions, the project looks unlikely to offer a return that is sufficient (if any) to justify its construction. Particularly given that its initial capital expenditure for phase one is estimated to be US$1.38 billion. This compares to the ASX lithium share’s market capitalisation of $105 million.

The post 3 ASX shares sinking to 52-week lows today appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price sinking again and down 47% since 1 March?
• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today
• Why are Lake Resources shares crashing 20% on Tuesday?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Clover. 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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Are dividends from ASX income shares your thing? I wouldn’t blame you. There aren’t too many feelings in the world of investing that are better than receiving that passive income paycheque in your bank account from your dividend shares.

But finding high-yield dividend shares on the ASX can be a risky business. More often than not, a share with a high dividend yield is there for a reason – and not a good one. Many would-be investors have fallen for the dreaded dividend trap. This entails buying what looks like a high-yield share only to lose money when that share ends up slashing its payouts (or cancelling them entirely).

So today, let’s discuss two high-yield shares that I think are worth holding for the long term for anyone who loves a good ASX dividend.

2 high-yield ASX shares for all the dividend lovers out there

Telstra Group Ltd (ASX: TLS)

Telstra has long been loved for its ASX dividends, and it’s not hard to see why. The ASX 200 telco has funded generous and fully franked shareholder payments for decades. I think Telstra is particularly attractive right now. Its dividends per share have been steadily rising for the past couple of years. And yet the Telstra share price has been falling since June 2023.

Whilst this hasn’t been pleasant for long-term shareholders, it has boosted the dividend yield available to new ones. Today, you can grab Telstra shares with a trailing dividend yield of 4.64%. That’s 6.63% grossed up with Telstra’s full franking.

Telstra is a company with a remarkably resilient earnings base. Just think about what it would take for a typical customer to downgrade or cancel their mobile or internet connections in our modern age. As such I view Telstra as one of the most reliable dividend shares on the ASX.

Fortescue Ltd (ASX: FMG)

ASX 200 iron ore miner Fortescue has been a dividend superstar for the past few years, no other way to put it. Record iron ore prices between 2020 and 2022 fuelled an absolute income bonanza for the lucky shareholders of this company.

Although Fortescue’s more recent payouts haven’t quite been as lucrative as those we saw in 2021, I think there is still plenty of income potential with this stock. The Fortescue share price has dropped sharply since January. But again, this has had the effect of boosting the trailing dividend yield on display here.

Right now, Fortescue is trading on a yield of 8.4%. Taking into account Fortescue’s typical full franking, this grosses up to a whopping 12%.

Fortescue’s dividends do depend on the price of iron ore, so there’s no guarantee (as with any dividend) that Fortescue will continue to dole out cash payments of this magnitude in 2024. But I still think this stock will continue to be an income winner for years to come.

The post Are dividends your thing? Then you’ll love these 2 high-yield ASX shares appeared first on The Motley Fool Australia.

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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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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Brickworks Limited (ASX: BKW)

According to a note out of Citi, its analysts have retained their buy rating and $35.00 price target on this building products company’s shares. This followed the release of its half year results, which came in better than expected. And with Brickworks feeling positive about rental income growth and the broker feeling bullish on the Australian building sector, it appears to believe this strong form can continue. The Brickworks share price is trading at $27.68 today.

Evolution Mining Ltd (ASX: EVN)

A note out of Morgan Stanley reveals that its analysts have upgraded this gold miner’s shares to an overweight rating with an improved price target of $3.95. The broker is feeling very positive on Evolution due to its belief that it is best placed to benefit from the soaring gold price thanks to its low hedging. In addition, the broker sees benefits from its copper exposure at a time when supply is tightening. The Evolution Mining share price is fetching $3.42 this afternoon.

Webjet Ltd (ASX: WEB)

Analysts at Citi have also retained their buy rating on this online travel agent’s shares with an improved price target of $9.90. This follows the release of an investor presentation relating to its WebBeds business. The broker was pleased to see management plan to grow its total transaction value for the business to $10 billion by 2030. This will be double its FY 2025 target of $5 billion, which itself is 25% higher than its FY 2024 guidance of $4 billion. The Webjet share price is trading at $8.61 on Friday.

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

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More reading

• Why Arafura, Pentanet, Sigma, and Webjet shares are falling today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Australian Strategic Metals, Evolution, Sigma, and Webjet shares are storming higher
• Why AGL, Brickworks, IGO, and New Hope shares are dropping today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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Most ASX energy shares are down on Friday with the S&P/ASX 200 Energy Index (ASX: XEJ) the worst-performing sector, slumping 1.4%.

The rest of the market isn’t having a great day either, with only healthcare shares and property shares in the green. The benchmark S&P/ASX 200 Index (ASX: XJO) is down 0.48%.

A poor trading session overnight for gas, oil and other energy commodities is likely weighing on ASX energy shares today.

On top of that, the Australian Energy Market Operator (AEMO) has issued a fresh warning about future gas supplies and the potential for shortfalls as early as next winter.

ASX energy shares lagging the market

Firstly, let’s review the state of play among the big energy stocks on Friday afternoon:

• Whitehaven Coal Ltd (ASX: WHC) shares are down 1.94%
• Santos Ltd (ASX: STO) shares are down 0.8%
• Woodside Energy Group Ltd (ASX: WDS) shares are down 1.83%
• New Hope Corporation Ltd (ASX: NHC) shares are down 2.2%
• Ampol Ltd (ASX: ALD) shares are down 1.21%
• Paladin Energy Ltd (ASX: PDN) shares are down 1.43%
• Boss Energy Ltd (ASX: BOE) shares are down 0.81%
• Deep Yellow Ltd (ASX: DYL) shares are up 0.36%

Overnight, UK gas prices fell 4.22% and TTF gas prices fell 4.83%.

Also overnight, coal dropped 0.5%, and US gasoline fell 0.02%.

Uranium fell 6.59% to US$85 per pound.

Oil prices are also trading lower today.

West Texas Crude (WTI) oil dropped 0.5% to US$80.55 per barrel. Brent crude oil is also down 0.5% and trading at US$85.22 per barrel at the time of writing.

New AEMO warning on east coast gas shortfall

In other energy news, AEMO released its 2024 Gas Statement of Opportunities (GSOO) report yesterday.

In it, AEMO forecasts a gap in gas supply for the southern states from 2028.

This is due to production from Bass Strait continuing to fall amid rising demand.

The report highlights the risk of peak-day shortfalls on some days under extreme winter conditions from as early as next year. There is also the potential for small seasonal supply gaps from 2026.

According to the GSOO:

The report signals that new investment is urgently needed if gas supply from 2028 is to keep up with demand from homes and businesses, and for gas-powered electricity generation.

AEMO CEO Daniel Westerman said:

Since the 2023 GSOO, a range of storage and pipeline projects have been completed, improving gas supplies to southern states that will help offset declining production from Bass Strait gas fields.

However, gas production is forecast to fall faster than demand in the south, driven by declining production from Bass Strait, which has historically supplied around two-thirds of southern Australia’s gas.

Westerman reiterated that gas-powered electricity generation will play a key role in the transition to a green energy future.

He said:

Flexible gas-powered electricity generation is an essential component of the energy mix into the future.

Gas, along with batteries and pumped hydro, will enable higher rates of renewables and support electricity reliability as Australia’s coal-fired power stations retire.

The post ASX energy shares losing charge amid fresh warnings of gas supply shortfalls appeared first on The Motley Fool Australia.

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More reading

• ‘We have reached a bottom’: 5 ASX uranium shares leaping higher this week
• Could this development out of China reignite ASX 200 coal shares?
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy 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 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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There will be plenty of dividends flowing into investors’ accounts next week, as well as a new round of ASX All Ords stocks going ex-dividend.

If you want to get in on the dividend action with any of these popular ASX All Ords stocks, you need to purchase them before the ‘ex-div’ date.

The ex-dividend date is the first day that a share trades without its next dividend payment attached.

The share price will typically go down on the ex-dividend date because the stock obviously loses a bit of value without the dividend attached. Plus, the company loses that amount of cash off its balance sheet.

So, it’s handy to be aware of the ex-dividend dates on your stocks ahead of time so you’re not surprised by the share price dip on the day.

Here are a bunch of popular ASX All Ords shares going ex-dividend next week, and their payouts:

ASX All Ords dividend shares trading ex-dividend next week

ASX All Ords share	Dividend payment	Ex-dividend date	Dividend payday
Lycopodium Ltd (ASX: LYL)	37 cents	25 March	4 April
NRW Holdings Ltd (ASX: NWH)	6.5 cents	25 March	11 April
Flight Centre Travel Group Ltd (ASX: FLT)	10 cents	26 March	17 April
Myer Holdings Ltd (ASX: MYR)	3 cents	27 March	16 May
Rural Funds Group (ASX: RFF)	2.9 cents	27 March	30 April
Dexus Convenience Retail REIT (ASX: DXC)	5.3 cents	27 March	16 May
Reece Ltd (ASX: REH)	8 cents	27 March	10 April
Dexus Industria REIT (ASX: DXI)	4.1 cents	27 March	16 May
Centuria Industrial REIT (ASX: CIP)	4 cents	27 March	30 April
Arena REIT (ASX: ARF)	4.3 cents	27 March	9 May
IPD Group Ltd (ASX: IPG)	4.6 cents	27 March	10 April
Waypoint REIT (ASX: WPR)	4.1 cents	27 March	10 May
Australian Clinical Labs Ltd (ASX: ACL)	3 cents	28 March	26 April

The post Popular ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

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More reading

• Want the latest quarterly dividend from Rural Funds? You’d better hurry
• Act fast if you want to receive the next Flight Centre dividend
• Here’s why analysts love these buy-rated ASX 200 growth shares
• Shares vs. property: Why cheaper homes and ASX small-cap shares are rising fastest in 2024
• My top 3 ASX shares to consider buying before April

Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ipd Group. The Motley Fool Australia has recommended Flight Centre Travel Group and Ipd Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s not shaping up to be a pleasant end to the trading week for Australian shares so far this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has tanked by a chunky 0.51%, leaving the index at around 7,742 points.

But that doesn’t mean all Australian shares are losing steam today. So let’s check out three ASX shares that are defying the broader market to push higher.

Three Australian shares bucking the markets today

Block Inc (ASX: SQ2)

Block, the owner of Afterpay (which enabled this US-based tech share to join the ASX) is first up. Block shares are crushing the ASX, with the payments stock currently up 1.98% at $127.68 a share. There’s been no major ASX news out of this company today that might easily explain this move.

However, Block’s Australian shares are actually extensions of the company’s primary US stock. Last night, we saw Block Inc (NYSE: SQ) shares rocket 3.18% to finish up at US$84.05. This continues a trend we’ve seen for the past few months, with Block’s US stock now up almost 88% since September.

It’s likely that this rise on the New York Stock Exchange overnight is what is driving Block’s ASX shares higher today.

Goodman Group (ASX: GMG)

Our next stock is a bonafide Australian share – well, a real estate investment trust (REIT) to be precise. Goodman Group units are also crushing the ASX today, with the REIT up a solid 2% to $31.62 a unit.

There hasn’t been much in the way of news out from Goodman in recent days either. Saying that, this is also an investment that has been delivering returns for investors in spades over the past few weeks. Goodman units are up 10.8% over the past month alone, and up more than 46% over the past six months.

Investors were particularly delighted with the half-year earnings report Goodman put out last month. This included a revelation that the REIT has increased its operating profit by 29% year on year to $1.13 billion. Goodman units have been leaping higher ever since. This goodwill could be what is helping Goodman stave off the market’s bad mood today.

Virgin Money UK plc (ASX: VUK)

Most Australian bank shares are having an awful Friday. That includes Virgin Money’s old owner National Australia Bank Ltd (ASX: NAB). But not Virgin Money itself. This ASX bank share is currently enjoying a healthy 3.42% boost up to $4.08.

Virgin Money has been in the news rather regularly lately, thanks to a takeover offer from the UK-based Nationwide Building Society. As we covered at the time, Nationwide Building Society’s offer of 220 British pence per share for Virgin Money saw the bank jump almost 35% on the ASX.

This morning, Virgin Money released an announcement confirming this offer. This would value Virgin Money stock at approximately $4.25 in Australian dollars. So it’s perhaps no surprise to see this bank climb towards that figure today.

The post 3 Australian shares quietly crushing the ASX today appeared first on The Motley Fool Australia.

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More reading

• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today
• 5 things to watch on the ASX 200 on Friday
• Got $500? 2 top Australian shares to buy and hold
• Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling today
• Why bond yields are bruising ASX property shares on Monday

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Goodman Group. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Goodman 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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