Category: Stock Market

Putting forward an ASX share that someone could rely on forever in an investment portfolio is no small potatoes. The investing world is littered with the graves of companies that once seemed unassailable, and whose fortunes many could never see fading – until they did. Kodak, Blockbuster, Borders, Ansett… the list is endless.

But today, I’m going to attempt this hard task, and discuss five ASX shares that I think are worthy candidates for a buy-and-hold-forever investment.

5 ASX shares you can buy and hold forever

Lottery Corporation Ltd (ASX: TLC)

For as long as humans have been around, we’ve loved a flutter. And that’s the basic tenet that underpins my faith in this gaming company. Lottery Corp is the name that has exclusive rights to run lotteries and Keno services in almost all Australian states and territories. Many of these licenses only expire in many decades’ time.

I love lotteries from an investment perspective. The allure of buying a relatively cheap ticket in the hopes of winning it big is something that fundamentally attracts us all, and is also immune from normal economic maladies like inflation and recessions.

Safe in this knowledge, I’d be happy to name Lottery Corp as a buy-and-hold-forever investment.

Telstra Group Ltd (ASX: TLS)

Telstra has been a constant national companion throughout modern Australia’s history. First as the Postmaster General’s Department, then as the state-owned Telecom and now Telstra, this company has always underpinned our national communication services.

With the paramount importance of high-quality mobile connections and fast home internet in our modern economy, Telstra’s role as the go-to telecommunications services provider has arguably never looked more important.

Given this importance, I can’t envision a future where Telstra is not a major facilitator of this important facet of our economy and daily life. The company’s dominance in mobile and home internet connections gives it a highly defensive earnings base, as well as significant pricing power.

That’s why it’s my belief that Telstra will continue to be a quality investment for decades to come.

Woolworths Group Ltd (ASX: WOW)

This one is a little easier to tout. No matter the advances in technology that we might see over all of our lifetimes, the fact remains that we’ll need to eat, drink and stock our households. And Woolworths is probably going to remain the first choice of more Australians than any other to provide these services.

The company’s investments in automation, click-and-collect services, and home delivery have impressed me in recent years. No matter what happens with new technologies in the grocery space, I expect Woolworths to be leading the charge. As such, I’d be happy to label this company as a top buy-and-hold stock for ASX investors today.

Vanguard Australian Shares Index ETF (ASX: VAS)

Changing tack a little now, let’s discuss an exchange-traded fund (ETF). The Vanguard Australian Shares ETF is an index fund that faithfully holds a sliver of the 2300 largest shares on the ASX, weighted by market capitalisation. Whatever the largest 300 companies on the ASX are at any given moment, VAS will hold their shares within its portfolio.

This index fund structure inherently future-proofs this investment.

Let’s say, for argument’s sake, that Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) end up being usurped as the largest bank and miner on the ASX by the year 2060 by Bank of Queensland Ltd (ASX: BOQ) and Champion Iron Ltd (ASX: CIA). Well, instead of holding CBA and BHP shares as some of its largest investments (as is currently the case), VAS will instead be holding BoQ and Champion Iron.

This ETF is an easy and hassle-free way of investing in ASX shares in a passive manner. As such, I would happily recommend it to any investor looking for a future-proof investment.

iShares S&P 500 ETF (ASX: IVV)

Last but not least, let’s talk about another ETF. The iShares S&P 500 ETF is another index fund. It works in a similar fashion as VAS, holding a huge range of different companies, weighted by size. But instead of the largest 300 Australian shares, this ETF tracks the largest 500 shares listed on the US markets.

That’s everything from Apple, Microsoft and Amazon to Exxon Mobil, Walmart and Coca-Cola.

The United States of America has, for more than a century, been the home to the lion’s share of the world’s greatest and most successful companies. Despite challenges from other countries like China, I don’t see this changing anytime soon. As the legendary Warren Buffett likes to say, “never bet against America”. So why not bet on America with this simple, hands-off index fund?

The post 5 ASX shares to buy and hold forever in your investment portfolio appeared first on The Motley Fool Australia.

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More reading

• This tiny ASX tech share is leaping 25% after striking a deal with Telstra
• 3 reliable ASX dividend shares to beat inflation
• 5 reasons to buy an ASX index fund today
• 8 popular ASX ETFs smashing new 52-week highs
• Should I buy the Vanguard Australian Shares Index ETF (VAS) now or wait for an ASX dip?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, Microsoft, Telstra and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Lottery, Microsoft, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Amazon, Apple, Telstra and iShares S&P 500 ETF. The Motley Fool Australia has positions in 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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On Monday night, I submitted my order to buy more Apple Inc (NASDAQ: AAPL) shares, now the third-largest position in my portfolio.

I know what you might be thinking… pouring more money into a company with a US$2.9 trillion market capitalisation, valued at nearly 30 times earnings, and expected sales decline of its core product (the iPhone) — he’s lost the plot this time.

Yet, there I was, in the late hours of the night, gleefully adding to my shares in the 48-year-old US tech giant. See, I think many onlookers are missing the forest for the trees amid Apple’s newest addition to the product lineup: Apple Vision Pro.

Reminiscent of the iPhone release

Frivolous and unduly expensive… terms that some might label the futuristic-looking augmented reality headset. Does it sound familiar?

At US$3,500, the Vision Pro headset (pictured above) is certainly not a cheap piece of gear. However, the original iPhone was not either when it launched in 2007.

Apple’s first crack at a cell phone carried a price tag of US$499, or US$733 when adjusted for inflation, at a time when other phones valued between US$350 to US$400 were considered the top end. Plenty of naysayers dismissed the product, overlooking the value of its exceptional software and interface.

The real ‘aha’ moment came when developers flocked to iOS. Quality touchscreen displays unlocked endless possibilities for entertainment and productivity applications, allowing customers to assign more value to the iPhone beyond ‘just a phone’.

I’d argue the same could be true of Vision Pro once developers exploit the immersive interface.

A new wave for Apple shares?

Apple App Store developers generated US$1.1 trillion in billings and sales in 2022. Owning this enormous ecosystem, Apple collects fees of between 15% and 30% on its sales. This revenue stream forms part of the company’s ‘services’ segment, which accounted for about 19% of net sales in Apple’s last quarter.

The services category is critical to why I bought more Apple shares. As more use cases are addressed by apps, Apple can clip the ticket at near-nil cost.

With more of our everyday tasks and activities passing through a glass display, Apple’s toll booth-style business has delivered solid growth. Now imagine a world where even more actions (both menial and masterful) are traversed through an Apple product.

Interacting with 3D models

Working with your files in Vision Pro is wild pic.twitter.com/6Wp26U7AVc

— Aaron Levie (@levie) February 9, 2024

https://platform.twitter.com/widgets.js

Watching your favourite sport

F1 + Apple Vision Pro pic.twitter.com/jW5b9j7Tn7

— MΛRC VIDΛL (@marcvidal) February 4, 2024

https://platform.twitter.com/widgets.js

Learning an instrument

Piano: Flowing Tiles for Apple Vision Pro!

“A spatial computing app that brings a dynamic, interactive dimension to your keyboard.” pic.twitter.com/XZiS5Tv5nn

— M1 (@M1Astra) February 1, 2024

https://platform.twitter.com/widgets.js

Carrying out surgery

With our SurgicalAR trace registration, surgeons can now visualize a 3D holographic rendering of a patient’s anatomy mapped directly onto them in real-time. No more alternating views. No more cognitive gymnastics. Just an immersive, precise and confident approach to #neurosurgery pic.twitter.com/gMikonOMp9

— MEDIVIS (@Medivis_AR) October 11, 2023

https://platform.twitter.com/widgets.js

So here’s my elevator pitch on why I loaded up on Apple shares…

Developers will find more innovative ways to utilise Apple’s new platform over time. The hands-free, immersive experience lends the Vision Pro to high-value use cases. For this reason, Apple’s digital toll booth could see an order of magnitude more money flow through it in the next decade.

Meta Platforms Inc (NASDAQ: META) is the only serious competitor currently with its Meta Quest 3. As such, there’s a real chance a duopoly could form, allowing both companies to realise incredible shareholder returns.

Given Apple’s track record of marrying hardware and software, I’m confident it will repeat its success in the headset domain.

Apple shares now account for 7.9% of my portfolio after this week’s investment.

The post Big ticket clipping. Why I’m doubling down on Apple shares with $2,300 appeared first on The Motley Fool Australia.

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More reading

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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 Mitchell Lawler has positions in Apple and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Meta Platforms. The Motley Fool Australia has recommended Apple and Meta Platforms. 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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Californian software maker Life360 Inc (ASX: 360) is about to reach a milestone.

May will mark its fifth anniversary listed on the ASX.

After a topsy-turvy half-decade as a public company on the Australian exchange, I reckon Life360 shares are priced right to buy at the moment.

Let’s explore:

What does Life360 do?

Life360 Inc’s bread-and-butter business is its mobile app, also named Life360.

That app is best described as family security software. 

It allows parents to track the location of their children, alerts family members if there has been a car accident, provides roadside assistance or emergency services if someone is stranded, and monitors for identity theft.

The smartphone app is most popular in its native country, the United States.

How is the business going?

The company is a typical fast-growing technology stock.

In a business update in November, co-founder and chief executive Chris Hulls revealed that global monthly active users (MAU) had just gone up 24% year-on-year to 58.4 million.

In the iPhone app store, Life360 is ranked #8 in the social networking category, sitting among other popular tools like WhatsApp, Telegram and Facebook.

But the real ace up investors’ sleeves is that the business spent much of 2022 and 2023 turning itself from a cash-burning startup to a more mature business that focuses on the bottom line.

While the full 2023 calendar and financial year result will be announced on 1 March, the quarterly numbers already show the reforms are working wonders.

The net loss added up for the first through third quarters in 2023 was around US$25 million. For the whole of 2022, Life360 lost a whopping US$135 million.

Why are Life360 shares such a bargain right now?

The focus on cash flow, the fast-growing user population, and the app’s ability to raise prices without losing too much clientele all bode well for the future.

And historically Life360 shares seem to be reasonably cheap at the moment.

Back in 2019, the initial public offering (IPO) saw shares issued at $4.79. Subsequent excitement about the company rocketed the stock to the high $13s late in 2021.

But after the inflation-induced market selloff, Life360 shares are now hovering in the mid to high $7s.

Professional investors are certainly licking their lips at the prospect of future gains.

Broking platform CMC Invest currently shows five out of six analysts rating Life360 as a strong buy.

The post Why I think Life360 shares are one of the best bargains out there appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy now
• 5 ASX shares I think you can confidently invest $500 in right now
• Buy these ASX growth shares for 20% to 40% returns
• 3 roaring ASX shares I’d hold for the next 20 years
• 2 top ASX growth shares to buy right now and hold for the long term

Motley Fool contributor Tony Yoo has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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 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 Cochlear and REA Group. The Motley Fool Australia has recommended Cochlear and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to supercharge your portfolio returns, then it could be worth checking out the ASX growth shares listed below.

That’s because analysts at Goldman Sachs have recently put buy ratings on them with price targets offering major upside.

Here’s what they are saying about these ASX growth shares:

IDP Education Ltd (ASX: IEL)

Goldman Sachs believes that this language testing and student placement company’s shares are significantly undervalued following a recent selloff.

Its analysts have a buy rating and $27.60 price target on its shares. This implies potential upside of 43% for investors over the next 12 months.

While Goldman acknowledges that there has been a series of negative events that could impact IDP Education, it remains very positive and believes that structural tailwinds will underpin very strong medium term growth. It said:

IEL trades at 28x our 12mf EPS estimate vs 45x historically and against a +17% FY23-26E EPS CAGR. Reiterate Buy into a strong 1H result where we sit +10% ahead of VA Consensus EBIT based on a strong start to FY24E as seen in the available visa data. News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs).

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs also sees major upside potential for this enterprise software provider’s shares.

It currently has a buy rating and a $4.50 price target on the ASX growth share. This implies a 12-month potential return of over 30% for investors.

Goldman likes Readytech due to its positive growth outlook and attractive valuation. It said:

We believe RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis, trading on 11.5x FY24E EV/EBITDA vs a 19% FY23-26E EBITDA CAGR or a growth-adjusted multiple of 0.6x vs peers typically at ~1.5x.

The post These top ASX growth shares can rise 30% to 40% appeared first on The Motley Fool Australia.

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More reading

• 50% down: 2 ‘world leader’ ASX 200 shares ready to bounce back
• Buy these ASX growth shares for 20% to 40% returns
• These are the 10 most shorted ASX shares
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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 Goldman Sachs Group, Idp Education, and ReadyTech. The Motley Fool Australia has recommended Idp Education and ReadyTech. 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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Brickworks Limited (ASX: BKW) shares are a popular option for investors.

And luckily for them, the building products company’s shares have been on a roll of late.

For example, in afternoon trade, the company’s shares are up almost 1% to $28.78.

This leaves them trading within a fraction of their record high of $29.32. In addition, it means they are now up by a sizeable 18% since this time last year.

The question now, though, is whether its shares have peaked or can keep rising from here. Let’s find out what analysts are saying.

Can Brickworks shares keep rising?

The general consensus at present is that the company’s shares are fully valued right now.

For instance, two brokers that have the equivalent of buy ratings on its shares have price targets that are either in line with its current price or lower that it.

Bell Potter has a $27.80 price target and UBS has a $29.00 price target.

Elsewhere, analysts at Macquarie, Morgans, and Ord Minnett all have the equivalent of hold ratings on Brickworks’ shares with price targets suggesting downside of 6% to 14%.

It’s not all doom and gloom

There is one broker that has broken from the pack and still sees major upside potential for investors.

A note out of Citi last month reveals that its analysts have retained their buy rating and lifted their price target to $35.00. This implies potential upside of almost 22% for investors over the next 12 months.

Citi thinks that investors should look past near-term concerns about Brickworks’ property earnings and is tipping higher capital value realisations from this side of the business in future. The broker said:

With peaking rates in sight, we believe further valuation declines may be limited and the tight demand supply dynamics in the industrial market could create further rental upside.

The post Brickworks shares: Buy, Hold, or Sell? appeared first on The Motley Fool Australia.

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More reading

• 3 reasons why I think the Brickworks share price is a buy
• 2 excellent ASX dividend shares I’d buy with $3,000
• Are Brickworks or Soul Patts shares a better ASX buy? Here’s my take
• Own Brickworks shares? Here’s how much you’ve been paid in dividends since COVID-19!
• Where I’d invest $3,000 into ASX dividend shares in January

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Brickworks and Macquarie 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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Dicker Data Ltd (ASX: DDR) shares are ending the week on a positive note.

In afternoon trade, the computer hardware and software distributor’s shares are up 2% to $11.50.

Why are Dicker Data shares pushing higher?

Investors have been buying the company’s shares today after it announced its latest quarterly dividend.

According to the release, the company has declared a 15 cents per share fully franked dividend for the three months ended December 31. Management notes that this “is in line with the Company’s policy of paying out 100% of net profit after tax (NPAT).”

Dicker Data’s final dividend is up significantly on last year’s final quarterly dividend of 2.5 cents per share and will mean an increase year on year.

The company has already paid out 10 cents per share fully franked dividends for each of the first three quarters of FY 2023. This means Dicker Data will have distributed a total of 45 cents per share to its shareholders come pay day, which represents an 8.4% increase on the 41.5 cents per share that was paid out in FY 2022.

Based on where Dicker Data shares currently trade, this represents an annual fully franked dividend yield of 3.9%.

When is pay day?

The record date for this final 15 cents per share dividend will be 15 February, with the payment expected to be made the following month on 1 March.

In between those two dates, shareholders can look forward to hearing from management when it releases its full year results. The company is scheduled to release its number on Tuesday 27 February.

The post Dicker Data shares charge higher on dividend boost appeared first on The Motley Fool Australia.

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More reading

• Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher

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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. 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 a small gain. At the time of writing, the benchmark index is up 0.1% to 7,644.8 points.

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

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is down over 2% to $8.60. This may have been driven by profit taking after a strong gain on Thursday following its half year results release. In addition, this morning, Macquarie responded by retaining its neutral rating on AGL’s shares with a price target of $9.60.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation share price is down a further 5% to $3.01. Investors have been selling this aviation services company’s shares after its half year results revealed an increase in its net debt to $244.6 million. This comes at a time when the company is planning to spend big on capital expenditures.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down 12% to $5.25. Investors have been selling ASX uranium shares today following the release of an update from one of the world’s largest uranium miners, Cameco Corp (NYSE: CCJ). It revealed plans to increase its uranium production materially to take advantage of strong demand and weak supply. This may have sparked fears that uranium prices could pull back.

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake share price is down almost 3% to $1.09. This gold miner’s shares have come under pressure this week after announcing plans to merge with Red 5 Ltd (ASX: RED). It seems that some investors are not overly keen on the plan and aren’t sticking around to see how it turns out.

The post Why AGL, Alliance Aviation, Boss Energy, and Silver Lake shares are falling appeared first on The Motley Fool Australia.

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More reading

• After tripling its dividends, is AGL a passive income share not to be missed?
• Why are ASX uranium shares getting thumped on Friday?
• Here are the top 10 ASX 200 shares today
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today

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 recommended Cameco. The Motley Fool Australia has recommended Alliance Aviation Services. 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 fighting hard to end the week on a high. In afternoon trade, the benchmark index is up 0.1% to 7,648.5 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Boral Ltd (ASX: BLD)

The Boral share price is up almost 10% to $5.93. Investors have been buying this building materials company’s shares after it released its half year results. Boral reported a 9% increase in revenue to $1,839.9 million and a 143% jump in underlying net profit after tax to $138.6 million. This stronger than expected half allowed management to increase its FY 2024 EBIT guidance.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up 2% to $11.43. This follows the announcement of the computer hardware and software distributor’s latest dividend. Dicker Data will pay a fully franked final quarterly dividend for FY 2023 of 15 cents per share. The record date will be 15 February and the payment date will be 1 March.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 17% to 69 cents. This is despite there being no news out of the counter drone technology company. However, it is worth noting that the Australian Government announced a major investment in combat drones today. This demonstrates the growing importance of Droneshield’s technology.

Novonix Ltd (ASX: NVX)

The Novonix share price is up almost 15% to 70.5 cents. This morning, this battery materials technology company announced a binding off-take agreement with leading electric vehicle (EV) batteries manufacturer, Panasonic Energy. The agreement is for high performance synthetic graphite anode material to be supplied to Panasonic Energy’s North American operations from Novonix’s Riverside facility in Tennessee.

The post Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Boral share price jumps 13% on massive profit growth and guidance upgrade
• Novonix shares jump 20% on Panosonic deal
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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 Dicker Data and DroneShield. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended DroneShield. 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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Defensive S&P/ASX 200 Index (ASX: XJO) share Transurban Group (ASX: TCL) could be a candidate to do very well once interest rates start falling.

For readers that don’t know, Transurban is the business behind a number of toll roads in Sydney, Melbourne and Brisbane. It also has a presence in North America as well.

The business recently reported its FY24 first-half result to investors for the six months to 31 December 2023.

Growth continues

It revealed that average daily traffic (ADT) increased 2.1% year over year to 2.5 million trips, supported by growth in all regions and the opening of new assets.

Proportional toll revenue rose by 6.3%, which led to proportional earnings before interest, tax, depreciation and amortisation (EBITDA) rising to $1.33 billion.

The statutory net profit after tax (NPAT) increased by 318% to $230 million.

Transurban also reported free cash (including capital releases) of $1.4 billion (up $63.5%) and a 13.2% increase of the distribution per security to 30 cents.

The defensive ASX 200 share reaffirmed its FY24 distribution guidance of 62 cents per security, which is expected to include approximately 4 cents per security of WestConnex cash, previously held during construction.

What to make of Transurban shares?

The Australian Financial Review reported that broker Citi has put a buy rating on the toll road operator.

Transurban is expecting to increase its FY24 distribution per security by 6.9%, and Citi thinks the defensive ASX 200 share could beat this guidance.

The broker suggests that Transurban could be a significant beneficiary of lower interest rates, partly because of the amount of debt on its balance sheet. It’s also possible that the defensive ASX 200 share has the potential to make more acquisitions.

Transurban share price snapshot

If the business does pay an annual distribution per security of 62 cents, it would translate into a forward distribution yield of 4.8%.

Since the start of 2024, the Transurban share price is down 6%.

I’d agree with Citi’s assessment – if interest rates do start coming down, Transurban could materially benefit. But, interest rates are, in my opinion, going to stay higher for longer than some people are expecting. I’m not expecting huge gains for Transurban in the next year, but I think it could regain some of the lost ground in the medium term.

The post Could this defensive ASX 200 share be set to soar when interest rates fall? appeared first on The Motley Fool Australia.

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More reading

• Transurban share price in the green amid 13% dividend boost
• These ASX dividend stocks offer 20%+ total returns
• Falling yields? I’d buy these ASX dividend beasts for a beefed-up income in 2024
• Brokers say these ASX 200 dividend shares are buys
• 3 world-class ASX retirement shares to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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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