Category: Stock Market

Are you searching for some new additions to your income portfolio?

If you are, then it could be worth checking out the three ASX 300 dividend stocks named below that analysts rate as buys.

Here’s what sort of upside and yields they are forecasting from these shares:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX 300 dividend stock that analysts rate highly is Aurizon. It is a rail and road network operator connecting miners, primary producers, and industry with export and domestic markets.

The team Ord Minnett is positive on Aurizon and has an accumulate rating and $4.70 price target on its shares. This implies potential upside of 20% from current levels.

The broker also expects some attractive dividend yields. It is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.91, this will mean yields of 4.6% and 6.2%, respectively.

Charter Hall Group (ASX: CHC)

Another ASX 300 dividend stock that could be a buy is Charter Hall. It is a property fund manager and developer across the office, retail, industrial and residential sectors.

Macquarie thinks the company is a buy rating and has an outperform rating and $15.54 price target on its shares. This suggests upside of 17% for investors over the next 12 months.

As for dividends, the broker is forecasting dividends per share of 45.1 cents in FY 2024 and 47.8 cents in FY 2025. Based on the current Charter Hall share price of $13.25, this will mean yields of 3.4% and 3.6%, respectively.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

A third ASX 300 dividend stock that could offer decent upside and an attractive yield is Dalrymple Bay Infrastructure. It is the long-term operator of the Dalrymple Bay Coal Terminal (DBCT).

Morgans is positive on the company and has an add rating and $3.03 price target on its shares. This implies potential upside of 11%.

The broker also believes the company is well-positioned to pay dividends per share of 22 cents in FY 2024 and 22.6 cents in FY 2025. Based on the latest Dalrymple Bay Infrastructure share price of $2.73, this will mean yields of 8% and 8.3%, respectively.

The post How about adding these ASX 300 dividend stocks to your income portfolio in March? appeared first on The Motley Fool Australia.

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More reading

• Why bond yields are bruising ASX property shares on Monday
• How are ASX REITs smashing 52-week highs despite today’s market meltdown?
• 2 ASX dividend stocks that are market leaders to buy now
• $200 million sell-down among ASX 300 insider sales and purchases over past week
• 3 ASX 200 dividend shares that analysts love

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Aurizon. 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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Ever since buying my first ASX share, I’ve been ploughing most of my savings and wealth into the ASX stock market. Investing in S&P/ASX 300 Index (ASX: XKO) shares is, in my view, the best way to build wealth in Australia, period.

I’ve got nothing against property or other asset classes to be sure. But today, let’s discuss why most of my savings are invested in companies, and not houses or bonds.

There are three reasons why I personally try to ensure most of my savings go towards investing in ASX shares.

3 reasons I invest my savings into ASX shares

The returns

Firstly, ASX shares are, and always have been historically, one of the best-returning asset classes you can buy into. Every year, our chief investment officer, Scott Phillips, takes stock of the annual Vanguard chart. This compares the returns of different asset classes over the past 30 years.

Last year’s chart showed ASX shares handily outperformed cash, bonds and listed property, delivering an average return of 9.2% per annum over the 30 years to 30 June 2023. The only asset class to do better was US shares at 10% per annum.

Diversification

Secondly, we have diversity. It is inherently easy to diversify your wealth by investing in the share market. Whether you buy a simple index fund or invest in a portfolio of different ASX 300 shares, most investors don’t find it difficult to spread out their investments amongst different industries, sectors and markets.

With just five companies, you can have exposure to Australian banks, miners, telecommunications providers, grocery stores and retailers. To be clear, we normally recommend a portfolio of between 15-25 different stocks to be adequately diversified, but you get the drift.

In contrast, a property requires you to lock up at least hundreds of thousands of dollars (if not millions) in one plot of land in a single suburb of a single city.

Investing in ASX shares means less tax

Thirdly, investing in ASX shares is very efficient from a taxation perspective. For one, you don’t need to pay tax on any capital gains from your shares until you sell them. And even when you do, you will probably get a 50% discount on your capital gains tax if you’ve held the shares for longer than a year.

Dividend income is taxed as normal income. However, the franking credits that most ASX 300 shares pay alongside their dividends can help you minimise your tax bill.

Compare that to the full income tax you pay on any interest earned in a savings account or term deposit, and we have a clear winner in my view.

Foolish takeaway

So those are the three reasons I tend to invest most of my savings in ASX 300 shares. Of course, I still keep a proportion of my wealth in liquid cash as an emergency fund – enough to fund living expenses for several months.

I subscribe to the view that it is prudent financial practice to make sure that any unexpected expenses that life might throw at us can be paid without selling our investments at inopportune moments.

However, any surplus cash I rack up will eventually find its way into my ASX share portfolio. Now you know why.

The post Here’s why I’m investing most of my savings in ASX 300 shares! appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Big returns could be coming for high-flying Lovisa shares
• Down 5% in 2 years, does the Transurban share price reflect the 2024-26 dividend forecast?
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• Down 12% over the past year, is the Woolworths share price a dead duck?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newmont. 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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Lovisa Holdings Ltd (ASX: LOV) shares have been on a tear over the last 12 months.

During this time, the fashion jewellery retailer’s shares are up 43%.

And if you were fortunate enough to buy at the bottom in October, you would be up almost 90% on your investment.

But with its shares trading within sight of record highs, are the gains coming to an end now?

Maybe not.

Can Lovisa shares keep rising?

One broker that remains positive on the company and sees meaningful upside for investors is Morgans.

Last month, in response to its half-year results, Morgans reaffirmed its add rating with an improved price target of $35.00.

Based on its current share price of $31.68, this implies potential upside of 10.5% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends of 83.4 cents per share in FY 2024 and 85 cents per share in FY 2025.

This implies a fully franked dividend yield of 2.6% for investors between now and this time next year, which boosts the total potential return to approximately 13%.

What did the broker say?

Commenting on Lovisa’s half-year result, which “surpassed expectations”, the broker said:

LOV is democratising jewellery. Its fashionable and attractively priced products are reaching and appealing to a larger and larger global audience. LOV has operations in over 40 markets and substantial white space to expand in almost all of them. The 1H24 result surpassed expectations, mainly due to strong gross margins, which were supported by favourable changes to the price architecture.

And while this has led to a modest increase to its earnings estimate for FY 2024, the broker believes investors should focus less on this year and more on its very bright long term outlook. It adds:

We have increased our EBIT estimate for the current year by 4%, but, for us, it’s not about the near-term. The investor should focus on what this business could develop into in the years ahead. We reiterate our Add rating and increase our target price.

Overall, the broker doesn’t appear to believe that it is too late to invest, which could make it worth a closer look. Especially given its extremely positive view on the company’s long-term growth potential.

The post Big returns could be coming for high-flying Lovisa shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. 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 hasn’t been a very pleasant two years for owners of the Transurban Group (ASX: TCL) share price.

Today, shares of this ASX 200 toll road operator are going for $12.90 each (at the time of writing). This time last year, you could have bought those same shares for $14.11. In March 2022, they were going for $13.58.

This means that Transurban shareholders have endured a loss of 8.6% over the last 12 months, and 5% over the past two years.

But most investors who buy shares of this toll road operator probably don’t do so for the explosive capital growth opportunity. With its inflation-hedged contracts ensuring regular toll price increases, investors tend to flock to Transurban for steady dividend returns.

Indeed, the stagnant Transurban share price has ensured that this company today offers a compelling dividend yield of 4.77% (albeit without franking credits attached). So does the current Transurban share price reflect what this company might pay out in dividends over the coming year or two?

What kind of dividends will Transurban shares payout going forward?

Naturally, it’s almost impossible to predict what kinds of dividends a company will pay out in the future before said company actually announces a payment. Remember, no company is under any obligation to fund dividends at a certain level, or indeed at all.

But Transurban’s revenues (and thus dividend ability) are easier to predict than most, thanks to the predictability of traffic volumes.

So let’s see what some experts think.

Just yesterday, my Fool colleague James covered the views of ASX broker Citi. Citi gave Transurban shares a buy rating, along with a 12-month share price target of $15.60. Citi partly based that on a prediction that Transurban would be able to fork out a total of 63 cents per share over the 2024 financial year, rising to 65 cents per share over FY2025.

If accurate, this would mean Transurban shares would be trading on a forward yield of 5.04% on that FY2025 figure.

CommSec projections largely agree with Citi’s numbers too. The brokerage platform is pencilling in similar amounts in dividends per share over the coming year or two. CommSec has a total of 62.1 cents per share in dividend for FY2024, rising to 65.4 cents for FY2025 and 68.7 cents for FY2026.

It’s hard to say for sure if the Transurban share price currently reflects these forecasts. But if they are accurate, I doubt any shareholder will complain.

The post Down 5% in 2 years, does the Transurban share price reflect the 2024-26 dividend forecast? appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX 300 dividend shares for 10% gains and 5% yields
• How much could a $300,000 ASX share portfolio pay in dividends?
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• Analysts say these ASX All Ords dividend stocks are buys in March
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another small gain. At the time of writing, the benchmark index is up slightly to 7,683 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down 1.5% to $3.51. This morning, the telco announced that it plans to challenge the instruction to sell down its holding in Superloop Ltd (ASX: SLC). Aussie Broadband has been told to reduce its stake to 12% as a greater level of ownership is not allowed under its constitution without the approval of the Info-communications Media Development Authority (IMDA) in Singapore. Today, Aussie Broadband has lodged a notice of Federal Court proceedings seeking injunctions against Superloop’s sale instruction.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is down 3% to $1.25, This lithium developer’s shares have come under pressure since the release of its half-year results last week. For the six months ended 31 December, the company reported a net loss before tax of $31 million. In addition, it is worth highlighting that its shares had been on a strong run earlier in the month. So, it is possible that some profit taking is taking place today.

Metals Acquisition (ASX: MAC)

The Metals Acquisition share price is down almost 3% to $20.31. This has been driven by the release of a drilling update from the company’s CSA Copper Mine. The market may not have responded positively to the drilling results, but Metals Acquisition’s CEO, Mick McMullen, was pleased with them. He commented: “These results continue to showcase why we think the CSA Copper Mine has a long future with continued exploration success converting the Inferred Resource to Measured and Indicated, together with adding new mineralisation to the inventory.”

Seek Ltd (ASX: SEK)

The Seek share price is down 2% to $25.10. Today’s weakness appears to have been driven partly by the job listings company’s shares going ex-dividend this morning for its next payout. Last month, Seek released its half year results and declared a fully franked 19 cents per share interim dividend. This will be paid to eligible shareholders next month on 3 April.

The post Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling appeared first on The Motley Fool Australia.

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More reading

• Aussie Broadband share price falls as legal proceedings commence against Superloop
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Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband and Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is flat in afternoon trade, but that’s not holding this Australian dividend stock back.

The stock in question is ASX 200 gold miner Northern Star Resources Ltd (ASX: NST).

Northern Star shares closed yesterday trading for $13.65. At the time of writing, shares are swapping hands for $13.82 apiece, up 1.3%, having earlier posted gains of more than 1.5%.

The Australian dividend stock looks to be getting a boost from an overnight uptick in the gold price. The yellow metal is trading for US$2,162 per ounce (AU$3,297).

That sees most ASX gold stocks outperforming today, as witnessed by the 1.4% gain posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

What’s been happening with this Australian dividend stock?

The Northern Star share price has been on a strong upward trend since early October.

In fact, the Australian dividend stock has gained a whopping 38% since 3 October when shares closed the day trading for $10.04.

The ASX 200 gold miner has enjoyed a big lift in bullion prices over that time. On 5 October, gold was fetching US$1,820 per ounce, 18.8% below today’s levels. And most of those gains will find their way into Northern Star’s bottom line.

Northern Star also reported some very solid results for the six months ending 31 December.

That was driven by a big increase in the miner’s average realised gold price from AU$2,513 per ounce in the prior corresponding period to AU$2,873 per ounce over the second half of 2023.

Highlights of the half year included a 15% increase in revenue to $2.25 billion. And cash earnings leapt 50% to an all-time high of $702 million.

That saw the Australian dividend stock please passive income investors with a record interim unfranked dividend of 15 cents per share, up 36% from the prior interim dividend.

This brought the full-year dividend payout to 30.5 cents per share. At the current Northern Star share price, the gold miner trades at an unfranked trailing yield of 2.2%.

And with gold prices having breached new all-time highs in March, and continuing to trade near those highs, the outlook for more dividend growth and potential new record payouts looks good.

The post 1 Australian dividend stock quietly crushing the ASX today appeared first on The Motley Fool Australia.

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More reading

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Tesla (NASDAQ: TSLA) were moving higher today after the leading electric vehicle (EV) maker surprised investors by announcing price hikes on its Model Y crossover vehicle over the weekend.

The price increase bucks the recent trend in the EV industry, as prices have fallen due to increasing competition and plateauing demand from car buyers.

As of 2:14 p.m. ET, Tesla stock was up 6.2% on the news.

Tesla Model Y prices are going back up

Tesla announced two separate price hikes on its Model Y, the world’s top-selling vehicle.

First, the company said on Friday that it would raise prices by $1,000 on all Model Y vehicles in the U.S. by April 1. Then on Saturday, it announced that it would raise prices in several European countries on the crossover SUV by 2,000 euros, or $2,177.

The company had also raised the price in the U.S. of the Model Y rear-wheel drive and long-range trims by $1,000 on March 1.

CEO Elon Musk explained the move as a seasonal one, saying that consumer demand is seasonal, though manufacturing needs to be steady throughout the year. Car-buying tends to pick up in the spring in the U.S. as Americans receive their tax refunds.

What’s next for Tesla?

Some analysts speculated that the decision could be more geared toward giving first-quarter deliveries a sales bump at the end of the quarter, as higher prices could persuade hesitant buyers to make a purchase.

Goldman Sachs, for example, lowered its price target on the stock after channel checks showed Q1 deliveries tracking lower than previously expected, at just 435,000. Deutsche Bank also said the move was designed to boost first-quarter sales.

Nonetheless, the price increase should help lift profit margins in the second quarter, which have been falling over the last several quarters.

With the stock still down sharply this year, the news also gives Tesla bulls a reason to be optimistic, though the company is still sensitive to overall demand trends in electric vehicle stocks. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock was climbing today appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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I love ASX-listed exchange-traded funds (ETFs) that can give exposure to businesses that we can’t find on the ASX.

It’s important to remember that the ASX only accounts for 2% of the global share market. Thus, there are opportunities beyond our shores, including some high-quality companies listed in the US and Europe.

Now, past performance is not a guarantee of future performance, but I’d give the below two picks a great chance of outperforming the S&P/ASX 200 Index (ASX: XJO) over the long term.

VanEck MSCI International Quality ETF (ASX: QUAL)

This fund invests in a global portfolio of 300 companies across a range of countries and sectors.

But, what ties all of these businesses together is that they are ranked as the highest quality names. They all have a high return on equity (ROE), earnings stability and low financial leverage. In other words, they make strong profits, the profit doesn’t normally go down substantially, and they have strong balance sheets.

Around three-quarters of the portfolio comes from the US, and a number of other countries have a weighting of at least 1% including Switzerland (5.2%), the UK (3.6%), Japan (3.3%), the Netherlands (3.1%), Denmark (2.9%), France (2.2%), Canada 1.2%) and Sweden (1%).

The position sizing can change, but at the moment the biggest five holdings are: Nvidia, Microsoft, Meta Platforms, Apple and Eli Lilly.

I wouldn’t expect recent exceptional performance to continue (it has gained 40% over the past 12 months). In the past five years, the QUAL ETF has returned an average of 17.75% per annum – I believe it can outperform the ASX 200 over the long term, though I expect volatility along the way.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ASX ETF is focused on a particular sector, rather than the whole market.

As the name suggests, it enables Aussies to invest in the global cybersecurity sector, though most of the portfolio (around 80%) is invested in US-listed businesses.

As the world becomes more technological and there’s more digital adoption, there becomes a greater need for cyber protection. There are also more cybercriminals wanting to do harm.

For example, in Australia, the ASD Cyber Threat Report 2022-2023 revealed that the average cost of cybercrime per report increased by 14% and the number of cybercrime reports rose by 23% to 94,000. It also answered over 33,000 calls to the Australian cybersecurity hotline, an increase of 32%.

If this is repeated in many countries worldwide, it may suggest that there will be a strong growth rate for cybersecurity companies for years.

Some of the biggest positions in the portfolio include Crowdstrike, Broadcom, Infosys, Cisco Systems and Palo Alto Network.

The post 2 great ASX ETFs I’d buy and hold forever appeared first on The Motley Fool Australia.

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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. 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 Apple, BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, Meta Platforms, Microsoft, Nvidia, and Palo Alto Networks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Apple, CrowdStrike, Meta Platforms, and 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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ASX shares can be a powerful way to generate passive income. In this article, I’ll discuss four picks that offer great dividends.

I’m not just looking for the biggest dividend yield as very high yields are not always sustainable. Instead, I like to find businesses delivering good organic operational growth because that is what can unlock capital gains.

If I were investing $30,000, I’d be very happy to spread the money across the below four stocks.

Healthco Healthcare and Wellness REIT (ASX: HCW)

As the name suggests, it’s a real estate investment trust (REIT) that owns buildings in the healthcare and social space. Hospitals are one of the main categories of property within the portfolio.

It’s indirectly benefiting from tailwinds like the ageing population and the growing Australian population.

The ASX share has an occupancy rate of 99%, with 75% of its leases linked to CPI – it’s generating solid rental growth. The business also has a large development pipeline worth at least $1 billion, which can generate further rental profits. The weighted average lease expiry (WALE) is around 12 years, suggesting appealing long-term rent is locked in.  

It’s expected to pay a distribution of 8 cents per unit in FY24, which would be year-over-year growth of 5%. This would be a distribution yield of 5.6%.

Telstra Group Ltd (ASX: TLS)

Telstra is the leading telecommunications company in Australia. One of the most attractive elements of the business is that it continues to win new subscribers. Spreading more subscribers over the same network has the potential to increase profit margins. Not only that, but its average revenue per user (ARPU) is rising.

The business has a goal of increasing the annual passive income per share for shareholders over time.

It’s projected to pay an annual dividend per share of 18 cents per share in FY24, which would be a grossed-up dividend yield of 6.7%. By FY26 it could be paying an annual dividend per share of 20 cents, which would be a grossed-up dividend yield of 7.4%.

Metcash Ltd (ASX: MTS)

Metcash is the ASX share that supplies a large number of food and liquor businesses including IGA, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

It also has a hardware division which includes the businesses Total Tools, Mitre 10, Home Timber & Hardware and other smaller names. It recently announced it’s acquiring one of the largest frame and truss businesses.

I like the move by the business to acquire Superior Food, an industry leader servicing a broad range of customers across the food service sector. It has partnerships with mining sites, restaurants, cafes, canteens, caterers, schools, universities, healthcare and aged care facilities.

The ASX share is committed to a passive income dividend payout ratio of 70% of underlying net profit after tax (NPAT). It’s projected to pay a grossed-up dividend yield of 7.3% in FY24.

Centuria Industrial REIT (ASX: CIP)

This is another REIT that has impressive metrics and a strong rental outlook. It has a portfolio occupancy rate of 97.2% and a portfolio WALE of 7.5 years.

One of the most impressive elements is that in the FY24 first-half result, it achieved positive re-leasing spreads of 51% across 17 transactions. This essentially means its rental income is 51% higher on the new rental contracts compared to the former contract.

This extraordinary rental income growth shows the huge demand for logistics properties and could unlock excellent rental profit growth in the coming years as all of the contracts come up for renewal.

The ASX share has identified a $1 billion future urban infill industrial development pipeline, “capitalising on sustained tenant demand”, in the business’ words.

It’s expecting to pay a distribution of 16 cents per unit in FY24, which would be a distribution yield of 4.5%. I expect the distribution to grow significantly over the rest of the decade.

The post Where I’d invest $30,000 in ASX shares for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Metcash. 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 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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