Category: Stock Market

Like the rest of the big four banks, the Westpac Banking Corp (ASX: WBC) dividend is a popular option for income investors on the Australian share market.

And it isn’t hard to see why.

For over two decades, Australia’s oldest bank has shared a good portion of its profits with shareholders each year.

Pleasingly, this trend continued in FY 2022, with the company rewarding its shareholders with a $1.42 per share fully franked dividend for the 12 months. This was an increase of 14% on what was paid out in FY 2022.

This equates to a total dividend payment of $5 billion, which is greater than the current valuation of regional rival Bank of Queensland Ltd (ASX: BOQ).

In fact, Westpac could have bought Bank of Queensland with its dividend and still had approximately $750 million of spare change.

But that dividend has since been paid and is now back in the economy. So, what’s next for owners of Westpac shares? Let’s take a look and find out what analysts are expecting from the big four bank.

Westpac dividend forecast

As a reminder, Westpac paid out $1.42 per share fully franked dividend in FY 2023. Based on the current Westpac share price of $26.25, this equates to a generous 5.4% dividend yield.

Looking ahead, the team at Goldman Sachs has been running the rule over the bank’s recent quarterly update and revealed that it believes Westpac remains positioned to increase its payout this year.

However, it won’t be as big an increase as the year before. The broker has pencilled in a modest 1.4% lift in the Westpac dividend to $1.44 per share in FY 2024. This represents a fully franked 5.5% yield for investors buying at today’s price.

Moving on, in FY 2025 the broker believes that the bank will be keeping its dividend flat at $1.44 per share again. This will mean another 5.5% dividend yield for shareholders.

And if you like consistency, you will appreciate that Goldman expects a third consecutive $1.44 per share fully franked dividend to be paid by Westpac in FY 2026. This will mean yet another 5.5% dividend yield from its shares.

But it is worth remembering that a lot can change between now and then for the better or for the worse. So, investors may want to use these forecasts as a guide for what could be coming and not take them as gospel.

The post Here’s the Westpac dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Why Westpac shares could suffer from a ‘significant reset’
• Here’s what Westpac says the RBA will do with interest rates next week
• Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today
• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?

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

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As long as you understand the risk and diversify your portfolio, there is nothing wrong per se with buying some speculative shares.

So if you are in that mood, here are two ASX shares considered suitable for those who are willing to tolerate some risk:

Top ASX shares for a business with a plan to become a world leader

Manganese miner Jupiter Mines Ltd (ASX: JMS) has seen its share price plunge more than 25% since May.

However, Sequoia Wealth Management senior advisor Peter Day likes the direction the company is heading.

“The company previously released a strategy update, outlining a five-year plan to become the leading manganese producer in the world,” Day told The Bull.

“The company has a long life, open pit manganese mine with an integrated ore processing plant in South Africa.”

Day, while admitting the stock is not for the faint-hearted, noted the business is ramping up.

“Mining volumes in the first half of fiscal year 2024 were up compared to the prior corresponding period.”

Day has good support among his peers. Broking platform CMC Invest shows all three analysts covering Jupiter Mines rating it as a strong buy.

How delayed is the gratification for these shares?

Casino operator Star Entertainment Group Ltd (ASX: SGR) has been crushed under regulatory scrutiny over the past couple of years.

Painfully the share price has lost more than 86% since October 2021.

Just when investors thought they might get some relief, a bombshell landed last month.

“The New South Wales Independent Casino Commission is holding another inquiry to investigate whether Star Entertainment is suitable to hold a Sydney casino licence,” said Day.

“A final report is due on May 31.”

Eventually, the business is bound to recover from its failings, but the second probe makes this an even more speculative buy than it was already.

“The company generated net revenue of $865.7 million in the first half of fiscal year 2024, down 14.6% on the prior corresponding period.”

Other experts are more divided on this one than Jupiter Mines. Five out of 10 analysts currently surveyed on CMC Invest consider Star Entertainment a buy at the moment.

The post My top high-risk, high-reward ASX shares to buy in March appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Jupiter Mines, Newmont, and Perpetual shares are dropping today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising
• Star Entertainment share price jumps 5% on strengthening outlook

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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According to conventional wisdom, ASX mining stocks are notoriously cyclical.

And that is true in most circumstances. Global prices for any mineral swings up and down wildly according to the health of the economy and the subsequent demand.

But there is one S&P/ASX 200 Index (ASX: XJO) company specialising in one particular metal whose shares have been trending up for five years now.

Let’s check out what happened:

When no one used the term ‘social distancing’

Capricorn Metals Ltd (ASX: CMM) is a gold miner with interests in Western Australia.

Cast your mind back to before anyone had even heard of COVID-19.

In 2019, interest rates around the world were near zero. Money was cheap and inflation was non-existent.

Gold, long considered a safe haven investment, was totally ignored. It was an old school, non-productive asset that no one wanted.

If you had the good fortune of buying Capricorn shares — let’s say $20,000 worth — you will have done pretty well.

Because in December 2019 the planet changed from Wuhan outwards.

A true black swan event, the coronavirus pandemic turned the global economy upside down.

Investors flock to gold mining stock

While the world may have moved on from lockdowns and even vaccinations, economically it’s now in a completely different place to what it was in 2019.

Inflation is cooling but still uncomfortably high. Interest rates are much higher than near-zero, and could stay that way for years.

Then just as the globe started moving past the pandemic, a war in eastern Europe broke out. Then another in the Middle East just 18 months after.

People have been reminded that anything can happen.

In such uncertain and frightening times, investors have flocked back to the comfort of gold. 

And among the gold miners, in Bell Potter’s words, Capricorn Metals sets the standard.

“Capricorn Metals is a sector-leading gold producer with a strong balance sheet and a management team with an excellent track record of delivery,” it stated in a memo to clients this month.

“Its costs are among the lowest in the sector and it consistently generates strong cash margins.”

So what about that $20,000 you invested in 2019?

After just five years, that nest egg is now $277,777.

Thank you, compounding.

The post If you’d put $20,000 in this ASX 200 mining stock 5 years ago, you’d have $278,000 now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 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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The S&P/ASX 200 Index (ASX: XJO) is up 11.6% over the past year. Yet, I still believe there are top deals among ASX shares in this market. Yes, there are opportunities to discover even when the Australian share market is around all-time highs.

As April draws near (that was quick!), it’s as good of a time as any to trawl through what is on offer. Despite headlines of a ‘per capita recession’ and whispers of an ‘official recession’ on the horizon, I will continue putting my money to work in quality companies — letting long-term compounding outweigh any temporary instability.

Here are a few ASX shares that meet my criteria for buying ahead of April this year.

Wonderful company at a fair price

The top echelon of companies usually trade on lofty valuations — everyone already knows how great they are. It makes it incredibly challenging to scoop up shares in such companies at a price that provides a margin of safety.

Occasionally, something that shatters a company’s once-pearly perception — a rumour, a scathing report, or an innocent misstep — can occur. The reaction can be magnitudes greater than the actual issue, partially because the business loses that ‘golden ‘golden child’ sheen.

In my view, Resmed CDI (ASX: RMD) is one such company. At a price-to-earnings (P/E) ratio of 31, the medical device maker’s asking price is no tall order relative to its former glory.

The popularity of weight loss medications, such as Ozempic, has induced a slimming down of the Resmed share price. However, the market for sleep apnea treatments remains vast. Given the company’s track record for growth, I’d happily buy more of this ASX share before the month ends.

A top ASX share with pricing power

A sensational FY23 full-year result has put this growth share on my radar. In my opinion, the combination of rapid growth and pricing power makes Life360 Inc (ASX: 360) highly attractive.

Companies that aren’t yet generating profits can be hard to value. Nonetheless, the United States software maker appears to be heading in the right direction as it raises prices across its subscriber base.

For example, average revenue per ‘paying circle’ (essentially a family) rose 25% year-on-year amid the price increases. Positively, global paying circles still grew by 21% despite asking customers to pay more for the offering — evidence that Life360 wields some strong pricing power.

Furthermore, with 61 million global monthly active users, the runway for growth still seems lengthy. This ASX share is currently valued at a market capitalisation of $2.58 billion.

A winner from rate cuts

The third and final investment I’m contemplating this month is a bonafide value-style buy.

Famed value investor Benjamin Graham was known for his tendency to buy companies trading below their book value. This means the company’s market capitalisation is less than its net assets, and Rural Funds Group (ASX: RFF) is an ASX share meeting this criteria.

The real estate investment trust (REIT) holds $1.9 billion of farmland and other agricultural assets. To do so, Rural Funds has taken on $701 million worth of debt to fund the purchase and improvement of property.

Because of this, the company stands to benefit if interest rates begin to fall later this year. Approximately one-fifth of the REIT’s revenue was consumed by finance costs in the first half. Any reduction in interest expense will flow down to the bottom line of this ASX share.

The post My top 3 ASX shares to consider buying before April appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares that could help set you up for life
• Why these ASX 200 growth shares could be top buys now
• 1 ASX stock to consider buying that could be the next ResMed
• Here are the top 10 ASX 200 shares today
• Buy these ASX 300 dividend shares for 10% gains and 5% yields

Motley Fool contributor Mitchell Lawler has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Rural Funds 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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Are you searching for ASX dividend shares to buy?

If you are then you may want to check out these two listed below that analysts think are top buys at present.

Here’s what they are saying about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be a buy for income investors is Accent. It is the footwear focused retailer behind a growing number of store brands such as Hype DC, The Athlete’s Foot, and Stylerunner.

The team at Bell Potter is feeling positive about the company. This is due to its strong market position and its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

The broker expects this to underpin the payment of fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $2.03, this represents dividend yields of 6.4% and 7.2%, respectively.

Bell Potter has a buy rating and $2.50 price target on its shares.

Coles Group Ltd (ASX: COL)

Over at Morgans, its analysts think income investors should be buying this supermarket giant’s shares.

It was impressed with Coles’ first-half performance, noting that its earnings were ahead of expectations. The broker was also pleased that its trading update revealed second half growth that is outperforming its bitter rival.

Morgans expects this to underpin fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.50, this implies yields of approximately 4% and 4.2%, respectively.

Morgans has an add rating and $18.70 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Finally, over at Goldman Sachs, its analysts think that this insurance giant is an ASX dividend share for income investors to buy.

The broker likes QBE due to it having “the strongest exposure to the commercial rate cycle” and notes that its “valuation [is] not demanding.”

Goldman also expects some generous yields from its shares in the near term. The broker is expecting dividends per share of 62 US cents in FY 2024 and 61 US cents in FY 2025. Based on its current share price of $17.38, this equates to dividend yields of 5.45% and 5.4%, respectively.

Goldman has a buy rating and $18.65 price target on its shares.

The post Why these excellent ASX dividend shares have been named as buys appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares predicted to pay yields of 10%
• Buy Rio Tinto and these ASX dividend shares now
• Analysts say these ASX dividend shares are strong buys
• Top brokers name 3 ASX shares to buy today
• Why the Accent share price has jumped 5% and more gains are predicted

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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Accent 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a good session. The benchmark index rose 0.35% to 7,703.2 points.

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

ASX 200 expected to rise again

The Australian share market looks set to rise again on Wednesday following a decent session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% higher. In late trade on Wall Street, the Dow Jones is up 0.7%, the S&P 500 has risen 0.5%, and the Nasdaq is 0.4% higher.

Oil prices continue to rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have another good session after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$83.62 a barrel and the Brent crude oil price is up 0.7% to US$87.46 a barrel. Russian supply concerns gave oil prices a boost.

Buy Woolworths shares

The Woolworths Group Ltd (ASX: WOW) share price is great value according to analysts at Goldman Sachs. The broker believes that concerns over inquiries into price gouging and anti-competitive behaviour claims are unnecessary. That’s because Goldman sees limited valuation and earnings risks from the inquiries. As a result, the broker has retained its conviction buy rating and $40.40 price target on the supermarket giant’s shares.

Gold price edges lower

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$2,160.6 an ounce. A stronger US dollar weighed on the precious metal. In addition, traders appear nervous ahead of the release of a speech from the US Federal Reserve tonight.

Inghams rated as a buy

The Inghams Group Ltd (ASX: ING) share price is good value according to the team at Bell Potter. This morning, the broker retained its buy rating and $4.35 price target on the poultry producer’s shares. This implies potential upside of almost 24% for investors from current levels. It commented: “Feed cost drivers have weakened materially in CY24 and this is likely to manifest in COGS in FY25e. The upside from lower feed costs in our view mitigates the ongoing risk of channel shifts.”

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

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More reading

• Here are the top 10 ASX 200 shares today
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• Down 12% over the past year, is the Woolworths share price a dead duck?
• 1 Australian dividend stock quietly crushing the ASX today
• 3 Australian shares to buy and hold forever in your ASX portfolio

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

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Anyone who owns Medibank Private Ltd (ASX: MPL) shares today and has held them since 28 February 2024 is getting a useful boost today.

A few weeks ago the company reported its FY24 half-year result, which came with a number of pleasing positives.

One of the main things shareholders can take from the half-year report is a nice, big dividend.

Medibank pays its dividend

The board of directors for Medibank decided to declare a fully franked interim dividend of 7.2 cents, which is being paid today. That represented an increased payout that was 14.3% bigger than last year.

Medibank’s payment equated to a dividend payout ratio of 75.5% of underlying net profit after tax (NPAT). This measure ‘normalises’ for investment market returns. The company has an annual target payout range of between 75% to 85% of underlying NPAT.

At the current Medibank share price, this payout represents a grossed-up dividend yield of 2.7%.

Growth reported

The HY24 result was solid enough – group revenue from external customers increased 3.3%, while health insurance operating profit rose 4.3% to $317 million. Underlying NPAT rose 16.3% to $262.5 million and statutory net profit grew 103.2% to $343.2 million. Part of the profit increase was because of a 49.6% jump in net investment income.

Medibank reported its net resident policyholders grew by 3,400 (or 0.2%), while net non-resident policies grew by 33,800 (or 12.3%).

Future profitability will be key for ensuring the Medibank dividend can keep rising. It’s expecting a “moderation in resident industry growth” in FY24 compared to FY23. The business is aiming to achieve between 1.2% to 1.5% resident policyholder growth in FY24. It’s expecting a return to market share growth in the second half of FY24.

Projected Medibank dividend yield

According to the estimate on Commsec, owners of Medibank shares could get a grossed-up dividend yield of 6% in FY24.

The post Own Medibank shares? Here’s why it’s a rewarding day for you appeared first on The Motley Fool Australia.

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• Here’s how the ASX 200 market sectors stacked up this week
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• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• If I were entering retirement tomorrow, I’d buy these ASX shares
• What’s going on with the Medibank share price today?

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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Often the dilemma with stocks that have very high dividend yields is that there could be concerns about the business outlook.

But just occasionally you come across an ASX stock that’s fallen in price, making it cheap and supercharging the dividend yield, but has a bright future ahead.

It’s that rare find that’s in the sweet spot.

Multi-mineral producer IGO Ltd (ASX: IGO) has seen its share price tumble more than 53% since July.

As a consequence, its yield now stands at a mouthwatering 9.6%.

Is this a trap or have we found the end of the rainbow?

Why has this dividend stock struggled?

Although IGO has a record of extracting nickel, copper, and cobalt, its market fortunes are overwhelmingly dominated by the headline-grabbing lithium business.

And global lithium prices have plummeted.

In November 2022, a tonne of lithium carbonate was fetching almost 600,000 CNY. Just 16 months later, you’d be lucky to sell it for 113,000 CNY.

The problem has been that China’s consumers are locking up their wallets, dampening demand for electric cars in that country.

Western markets have not helped either, with billions of consumers crushed by inflation-busting interest rate rises.

So that’s the bad news.

Has IGO bottomed now?

Now for the good news.

Lithium demand, in the long run, is expected to be strong.

In the coming years the world will need many new batteries to cope with the electrification of millions of engines that used to run on fossil fuels.

It’s not just about nations altruistically reducing their carbon footprint. Recent wars in Europe and the Middle East have reminded all and sundry that depending entirely on imported oil and gas is a risky move.

IGO Ltd, as one of the smaller miners, has done well to keep production going. Some other players, such as Core Lithium Ltd (ASX: CXO) have been forced to stop because producing lithium has become uneconomical.

Just last month the team at Blackwattle picked IGO as the lithium stock to buy for those wanting to get into lithium for cheap right now.

“We believe IGO provides investors with exposure to the best lithium mine in the world, Greenbushes, which is producing at a cost still well below current weak spodumene prices.”

And many of their peers agree.

According to broking platform CMC Invest, nine out of 18 analysts are recommending IGO as a buy right now.

So yes, this could be a rare time that a falling stock with a high dividend could be a wise buy.

The post A 10% yield but down 53%! Time for me to buy more of this hidden ASX gem? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• IGO share price marching higher despite trading ex-dividend today
• 5 things to watch on the ASX 200 on Tuesday
• 13 ASX 200 shares with ex-dividend dates next week
• Why the 2024 outlook for these rebounding ASX 200 lithium shares looks ‘better than market expectations’

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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If you’re kicking yourself that you missed Nvidia Corp (NASDAQ: NVDA)’s 240% gain over the past year as artificial intelligence (AI), never fear.

Nvidia stock is not the only AI game in town, so EAM Investors chief Travis Prentice reckons there are plenty of opportunities still out there.

“We’re… seeing strong, accelerating trends in everything levered to AI and believe there will be meaningful beneficiaries of the AI buildout in small cap companies globally, not just in the ‘Magnificent Seven’.”

A useful tip he gave is that they don’t have to be computing or even technology stocks.

“Obviously, we see massive opportunities broadly within key enabling technology providers in the space, but also in general industrials that are key beneficiaries of the necessary build in infrastructure to support these large data centres and compute loads that AI requires.”

The Motley Fool Australia asked US-based Prentice what some of those lateral ideas could be, and he named three stocks his fund is invested in:

First you have to construct the buildings

Eagle Materials Inc (NYSE: EXP) is a Texas company that makes building materials such as gypsum, concrete and wallboards.

It’s comparable to ASX staples James Hardie Industries plc (ASX: JHX) and CSR Ltd (ASX: CSR).

Prentice reckons that the business will benefit from all the facilities that need to be built to house all the computers that will calculate the world’s thirst for AI.

“Beneficiary of infrastructure build in general, including onshoring of manufacturing/building out of data centres,” he told The Motley Fool.

“Primarily visible by their pricing power/tight supply conditions driven by demand for cement/aggregates in their non-residential side of their business.”

Then you build the data centres within

A bit further down the supply chain is Vertiv Holdings Co (NYSE: VRT), which actually builds and operates data centres.

Thus Prentice said that it is a “more of [a] direct beneficiary within the data centre build”.

“Company provides power and thermal solutions in the data centre, most notably their strong market position in liquid cooling for high density compute applications.”

Believe it or not, over the last 12 months, Vertiv shares have outperformed Nvidia stock, rocketing more than 480% in that time.

All up the stock has risen an amazing 830% since July 2022.

Finally, fit out the data centres

On the other side of the world is Taiwanese outfit King Slide Works Co Ltd (TPE: 2059).

Prentice explained that it “engages in the manufacturing and design of furniture hardware and accessories”. 

“It also happens to have a strong portfolio of and customisation capabilities for server rail kits that help manage thermal issues and house AI servers in the data centre.”

King Slide shares have not slid at all, but have climbed a similar path to Nvidia in the past year, rising 245%.

To demonstrate the impact of the AI hype, all its gains over the past five years have been made in the last 12 months.

The post How to invest in artificial intelligence (AI) without buying Nvidia stock appeared first on The Motley Fool Australia.

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• Guess which ASX tech stock is up 120% in three sessions thanks to Nvidia
• If you invested $10,000 in Nvidia stock the day ChatGPT came out, this is how much you’d have today
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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 Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Eagle Materials. The Motley Fool Australia has recommended Nvidia. 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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When it comes to investing, I’m a big advocate of being patient and buying the crème de la crème of ASX shares when opportunities arise and then holding on for the long-term.

This is instead of building a portfolio filled with so-so companies just because they were looking cheap at the time.

Warren Buffett has previously highlighted his success with this approach. In fact, over an investment period of almost 60 years, Buffett suggested that there are approximately 12 great investment decisions that are responsible for his success. He said:

Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.

Given how Buffett has delivered an average annual return almost double what the market has achieved since 1965, it’s fair to say that he knows what he’s talking about.

ASX shares to buy and hold

The good news for investors is there are a couple of high-quality ASX shares that analysts believe are trading at very attractive prices today.

The first is biotechnology company CSL Ltd (ASX: CSL), which is the name behind the CSL Behring, Seqirus, and CSL Vifor businesses.

CSL Behring is a global biotherapeutics leader focused on using the latest technologies to discover, develop, and deliver innovative therapies for people living with conditions in the immunology, hematology, cardiovascular and metabolic, respiratory, and transplant therapeutic areas.

Whereas Seqirus is a global leader in influenza protection and CSL Vifor is a global leader in iron deficiency and iron deficiency anaemia therapies.

The team at UBS is very positive on the company’s outlook and has a buy rating and $330.00 price target on its shares. It believes the company could deliver double-digit earnings growth over the medium term.

Another ASX share that analysts rate extremely highly is ResMed Inc. (ASX: RMD). It is the world’s leading sleep disorder treatment company with a collection of highly regarded medical devices and software solutions.

Due to concerns over the threat of weight loss drugs, its shares are down meaningfully from their highs. Morgans doesn’t believe these drugs are a threat and sees the weakness as a buying opportunity.

It has an add rating and $32.82 price target on its shares. It notes that the “company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

The post 2 ASX shares that could help set you up for life appeared first on The Motley Fool Australia.

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More reading

• Are CSL shares a must-buy in March?
• 1 ASX stock to consider buying that could be the next ResMed
• GLP-1 obesity medicines do the opposite of what ResMed stock investors feared
• What’s going so wrong for ASX 200 shares on Friday?
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, CSL, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Berkshire Hathaway and CSL. 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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