Category: Stock Market

Building a passive income of more than $191,000 a year would be life-changing for most Aussies.

Myself included.

And ASX dividend shares offer a great means to achieving that goal.

While my portfolio of ASX shares may lose value over shorter periods, or even an entire year, history shows that longer-term the stock market beats every other asset class.

Now if I invest $500 each month, or $6,000 a year, I obviously won’t reach my $191,000 annual passive income goal overnight. I’ll need to be patient. And I’ll need to do thorough research on the ASX shares I add to my portfolio.

If I wasn’t comfortable with that level of research, I’d seek out some expert advice.

Let’s look at some numbers.

What kind of returns can I target?

Let’s get an idea of my timeline to build up to more than $191,000 in yearly passive income. Over the past three years, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 24%. Or an average annual gain of 8%.

But I believe I could do better. With diligent research or perhaps that expert advice, I believe I could achieve an average 10% annual return over time.

Now I’d be sure to invest in a diversified basket of ASX shares (at least 10), with a preference for S&P/ASX 200 Index (ASX: XJO) stocks. These tend to be less volatile than small-cap shares, yet the right ones can still deliver tidy gains to investors.

In 2023, for example, Commonwealth Bank of Australia (ASX: CBA) shares delivered an accumulated gain (including dividends) of 13.4%.

I’d also lean towards ASX shares that offer franking credits on their dividends. That way, I should be able to hold onto more of my passive income at tax time.

And I’d also be sure to reinvest any and all dividends coming my way. That will help me achieve my goal significantly sooner.

The road to more than $191,000 in annual passive income

As mentioned up top, my road to more than $191,000 a year in passive income isn’t a short one.

So it’s best to get started earlier in life.

If I began investing just $500 a month in ASX shares at the age of 30, and achieve my 10% average annual gains, then I can let the magic of compounding do its work.

Here’s how my ASX share portfolio will have grown over the years:

• At 10 years: $103,770
• At 20 years: $383,348
• At 30 years: $1,140,163
• At 40 years: $3,188,890

As you can see, after 40 years of diligently investing $500 a month, and by now ready to retire, my ASX passive income portfolio has grown to almost $3.2 million.

If can achieve a 6% yield from that portfolio, which I believe I could, that would give me a passive income of $191,333 a year without having to touch that invested capital.

And leaving that $3,188,890 invested in quality ASX shares should help me keep growing my wealth as markets rise.

The post How I’d aim to turn $500 a month into a stunning passive income of more than $191k a year appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Brokers name 3 ASX dividend shares to buy now
• 5 things to watch on the ASX 200 on Thursday
• 5 ways to get richer in 2024 without a pay rise
• There’s great value right now in the ASX 200, especially in stocks like this one
• Targeting a $53,000 second income starting with just $1,000 of savings?

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.

from The Motley Fool Australia https://ift.tt/hGwkAgn

If you’re an income investor on the lookout for some new additions to your portfolio, then read on.

That’s because listed below are three ASX dividend shares that brokers have recently been named as buys.

Here’s what sort of dividend yields you can expect from them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that analysts have named as a buy is supermarket giant Coles.

Citi remains very bullish on the company and has a buy rating and $17.50 price target on its shares.

While the broker isn’t expecting an overly strong result in FY 2024, it believes solid growth is coming in FY 2025 and FY 2026.

Citi expects this to underpin fully franked dividends of 64 cents per share in FY 2024, 70 cents per share in FY 2025 and then 79 cents per share in FY 2026. Based on the current Coles share price of $15.50, this will mean yields of 4.1%, 4.5%, and 5.1%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that analysts are feeling positive on is Healthco Healthcare and Wellness REIT.

It is a leading health and wellness-focused real estate investment trust with a high quality, diversified portfolio of assets.

The team at Morgans is positive on the company and has an add rating and $1.67 price target on its shares.

As for income, it is forecasting dividends per share of 8 cents in both FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.33, this will mean yields of 6% in both years.

Stockland Corporation Ltd (ASX: SGP)

A third ASX dividend share that could be a buy according to analysts is Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager.

Citi is bullish and notes its “strong medium-term growth outlook and cheap valuation.” The broker has a buy rating and $5.10 price target its shares.

As well as a cheap valuation, the broker is forecasting some big dividend yields. It expects dividends per share of 27 cents in FY 2024 and FY 2025. Based on the current Stockland share price of $4.41, this will mean yields of 6.1% across both years.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 1 ASX dividend stock down 40% to buy right now
• ‘Bombed-out’ ASX REITs are bargain shares, says expert
• Buy Coles and these ASX dividend stocks
• These ASX dividend stocks could be buys this month
• Will a competition review hurt Woolworths and Coles shares?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/SIuZR2B

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again. The benchmark index fell 0.3% to 7,393.1 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.4%, the S&P 500 has fallen 0.8%, and the Nasdaq is 0.95% lower. Rate cut doubts put pressure on markets.

Oil prices mixed

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.3% to US$72.63 a barrel and the Brent crude oil price is down 0.4% to US$77.96 a barrel. This follows the release of mixed economic data from China and the US.

BHP update

BHP Group Ltd (ASX: BHP) shares will be on watch on Thursday when the mining giant releases its second quarter update. The market is expecting iron ore shipments of 72.5Mt, which will be a 1% increase quarter on quarter. Elsewhere, copper production is expected to be down slightly to 454kt and met coal is expected to be up 23% to 6.9Mt.

Gold price tumbles

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor day of trade after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.05% to US$2,008.9 an ounce. This was driven by rate cut doubts.

Albemarle sells down Liontown stake

The Liontown Resources Ltd (ASX: LTR) share price will be on watch today amid reports that Albemarle Corp (NYSE: ALB) is offloading its stake in the lithium developer following its failed $6.6 billion takeover. According to the AFR, the lithium giant was looking to sell the stake for a price of $1.26 to $1.32 per share. The former represents a 7.4% discount to its last close price.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why Santos shares could face headwinds despite $5.7 billion Barossa win
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• Copper and lithium: Broker says these ASX mining shares can double in value
• 5 things to watch on the ASX 200 on Wednesday

from The Motley Fool Australia https://ift.tt/hMmGoVc

We’d all like a pay rise in 2024, especially with the ramp-up in the cost of living over the past couple of years. So if you manage to bag yourself one this year, a preemptive congratulations.

But even if you don’t manage to get an increase in your take-home pay in 2024, don’t cry. There are still a few ways you can give your wealth a boost.

So today, let’s talk about some ways you can get a little richer this year, without relying on your boss’ generosity.

Five ways to get richer in 2024

Ditch debt and don’t look back

One of the worst things you can do for your wealth is take out debt to buy assets that don’t appreciate in value. In my view, if you aren’t borrowing money for shares, studies, property or a business, it’s bad debt and should be avoided.

So if you have credit card debt, a car loan or a personal loan, make it your 2024 mission to pay it off, and leave debt behind forever. Remember, if you have a loan, it’s an asset on somebody else’s books helping them get richer.

Audit your spending

I’m not one for recommending a budget to anyone. If you’re so inclined, a budget can be great. But in my experience, budgets tend to put people off managing their money with care.

So instead, why not do a simple audit of your spending? As they say, a penny saved is a penny earned. It can’t hurt to take 10 minutes to go over your last few months’ spending. You might find that you don’t need that fifth streaming service. Or perhaps the kids have ‘accidentally’ signed you up to YouTube Premium or the top Netflix tier.

A simple checkup of where your money is going could help you cut the fat from your household spending.

Get richer by paying yourself first

One of the best pieces of financial advice I have ever read was this simple idea. Most of us tend to spend our paycheques every week, fortnight or month, and save whatever’s left over. You’ll be amazed at what can happen if you flip this on its head and take your allocated savings out whenever you get paid. As the saying goes, you don’t miss what you don’t have.

Try it out for yourself for your next paycheque by taking 10% or 20% out as soon as the money hits your bank account. You might just find that you don’t even notice its absence. If you manage this for an entire year, think about how much extra cash you will add to your net worth.

Clear out the clutter

I don’t know about you, but I’m someone who seems to attract a lot of worldly possessions. From interesting-looking books to old board games, it’s often difficult to say no to something alluring that comes across your path.

Thankfully, it’s never been easier to find buyers for anything that you can and might want to sell for a bit of extra cash. So perhaps you might want to take this opportunity to think about your own possessions and how much of them you really ‘need’. Gathering the courage to initiate a purge of your house could give your wealth a real boost this year.

Get richer by investing in ASX shares

Last but not least, let’s talk investing. Here at The Motley Fool, we believe investing in ASX shares is one of the best ways for ordinary Australians to build wealth. The best thing about shares is that high-quality companies tend to rise in value over time. That’s whilst paying you passive income in the form of dividends. Getting paid to simply own something is a heck of a feeling.

If you’re not into stock picking and going through numbers, never fear. It’s easy to invest in ASX shares passively. For example, you can simply buy an ASX index fund that invests in the top 200 or 300 shares on the Australian stock exchange on your behalf. All you have to do is sit back, collect the dividends and watch your wealth slowly grow.

If you aren’t already invested in ASX shares, do you and your future self a favour and get going.

The post 5 ways to get richer in 2024 without a pay rise appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• There’s great value right now in the ASX 200, especially in stocks like this one
• Targeting a $53,000 second income starting with just $1,000 of savings?
• Got $500 to invest in stocks? I’d put it in this ASX ETF
• Could the Sayona share price double in 2024?

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 Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/F8lc4Js

I believe there are always opportunities to be found in the S&P/ASX 200 Index (ASX: XJO), if we look in the right places. I’m going to cover one particular ASX 200 stock that I’m very excited about. That business is Lovisa Holdings Ltd (ASX: LOV), which I think looks better value after dropping 8% in 2023 to date. It’s also down 16% from April 2023.

Lovisa says its brand was created “out of a need for on-trend fashion jewellery at ready-to-wear prices” and that it’s a brand that “caters to everyone”.

Strong global growth

It’s a relatively simple business – sell affordable jewellery to shoppers. The business is able to generate pleasing profit margins on its sales because of how cheap the products are to produce.

In FY23 the company achieved a gross profit margin of 80%, so extra revenue growth is good news for the business. FY23 revenue rose 30% to $596.5 million and in the first 20 weeks of FY24, sales had increased another 17%.

The company is significantly growing its global store count to help with its financials – in FY23 it added another 172 net new stores to 801, which included 72 new locations in the US.

The business is steadily growing its store count in countries like the UK, France, Germany, Australia and South Africa.

It’s particularly exciting to me that the ASX 200 stock has expanded into promising markets with a lot of growth potential because of the population size, such as Vietnam, China, Canada, Spain, Hong Kong, Italy and Mexico.

Lovisa’s store count grew by 27% in FY23 and I think it can keep growing its store count by at least 15% to 20% per annum over the next five years, which could be good news for the revenue, net profit, dividend and Lovisa share price if things go well.

I invested in Lovisa shares roughly three months ago, thinking that it could double its store count in less than five years.

There are many more countries that Lovisa can expand into, which can unlock more potential growth. The huge Chinese market is particularly compelling if Lovisa can gain traction there.

Attractive valuation

Lovisa trades on a higher price/earnings (P/E) ratio than a lot of other ASX retail shares. However, its long-term growth potential makes it very good value in my eyes.

Forecasts are just a smart guess, but I think we can see the direction that Lovisa’s earnings are going is very positive.

The current estimates on Commsec suggest the ASX 200 stock could grow its earnings per share (EPS) by 77% between FY23 and FY26 to $1.12. That would put the Lovisa share price at 20 times FY26’s estimated earnings. I think Lovisa will be able to generate plenty of growth after FY26.

If we look to the long-term I think Lovisa has a very good chance of performing well.

Decent dividend payer

Lovisa usually pays an attractive level of passive income to investors each year, with the payout projected to keep rising in FY25 and FY26.

Profit growth can help fund larger dividends, which could reach 79 cents per share in FY25 and 91 cents per share in FY26, according to Commsec. At the current Lovisa share price, it could be a dividend yield of 4% (excluding franking credits) in FY26.

The post There’s great value right now in the ASX 200, especially in stocks like this one appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Targeting a $53,000 second income starting with just $1,000 of savings?
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping today
• 2 ASX growth shares I bought for explosive growth
• How I’d invest $40k to create a lifelong passive income of $36,000 a year

Motley Fool contributor Tristan Harrison 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.

from The Motley Fool Australia https://ift.tt/h9BrWQo

The goal of many investors who buy ASX shares is to eventually earn a second income.

And who can blame them? Imagine receiving money in return for no work, with which you can spend on whatever you like.

But what if you had just $1,000 to start your portfolio?

Well, I would say you have a thousand more reasons to invest than someone who has nothing.

Let me show you, hypothetically, how you can turn that $1,000 into five figures of second income each year:

Start with the grand, but you have to keep adding to it

Sure, you might only start a stock portfolio with $1,000. But if you have the discipline to save and add to this investment regularly, you will be on your way to financial freedom.

Can you manage to add $500 to the pool each month?

With careful advice and research, let’s assume you can average 12% of compound annual growth rate (CAGR) through the years.

Do you think that’s unrealistic? I put it to you that it’s very possible.

Take S&P/ASX 200 Index (ASX: XJO) retail stalwart Lovisa Holdings Ltd (ASX: LOV) as an example.

The past five years has included many shocks to the business, such as COVID-19 and steeply rising interest rates. Notwithstanding those bumps, Lovisa shares have managed to return more than 220% in that period.

And that’s the secret here. You need to be committed for a few years.

During that half-decade, there have been multiple instances when Lovisa shares have lost 40% to 50% of their value. But sticking with the stock for the long run has seen handsome returns.

The CAGR for Lovisa’s share price over the five years is 26.2%.

If you look at exchange-traded funds (ETFs), something like the Vaneck Morningstar Wide Moat ETF (ASX: MOAT) provides instant diversification and decent returns.

That fund has managed a CAGR of 15% over the last five years.

There is no reason why 12% is not achievable.

Second income, here we come

Now, back to that $1,000.

Add $500 to it each month with a 12% CAGR, and these are the amounts the portfolio could grow to:

Years of investment	Portfolio size
9	$91,427
15	$229,151
20	$441,960

The longer you leave the investment alone, the larger your second income will be.

From the point you want to stop adding and start harvesting cash, you simply sell off the 12% returns each year.

After just nine years, your initial $1,000 investment could deliver you the promised five figures of passive income. $10,971 annually, to be precise.

If you have the patience to let the portfolio grow for 20 years before sinking your teeth into it, then that second income becomes quite substantial.

How does an average annual cash injection of $53,035 sound to you?

That, ladies and gentlemen, is the power of ASX stocks and compounding.

The post Targeting a $53,000 second income starting with just $1,000 of savings? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Got $500 to invest in stocks? I’d put it in this ASX ETF
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• Could I turn $10,000 into $1 million by investing in ASX shares similar to Warren Buffett’s favourite stocks?
• Building a rock-solid base for my stock portfolio with these 3 ASX ETFs
• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping today

Motley Fool contributor Tony Yoo has positions in Lovisa and VanEck Morningstar Wide Moat ETF. 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 and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/FSE89G7

There’s no doubt an exchange-traded fund (ETF) is a handy way to get started in ASX shares.

Just from buying one stock, new investors can potentially reap diversification that could reduce risk and volatility.

Plus it can save time and effort in researching individual stocks and the underlying company performance.

That’s largely taken care of by the index or the formula the ETF follows.

So if you had $500 to start your investment life, which ASX ETF should you buy?

In my opinion, Vaneck Morningstar Wide Moat Etf (ASX: MOAT) is one of the best ETFs for beginners.

What does this ASX ETF do?

The fund invests in US shares that are constituents of the Morningstar Wide Moat Focus NR AUD Index.

Those businesses are ones that Morningstar has identified as holding significant competitive advantages. The equity research firm uses the term “wide economic moat” to describe this attribute.

This means that this ASX ETF’s holdings will be shuffled around from time to time as businesses see their moat increase or decrease.

Some examples of the current holdings are:

• Customer relations software giant Salesforce Inc (NYSE: CRM)
• Antiviral pharmaceutical company Gilead Sciences Inc (NASDAQ: GILD)
• Security products maker Allegion PLC (NYSE: ALLE)
• Automatic test equipment manufacturer Teradyne Inc (NASDAQ: TER)

How has the Wide Moat ETF performed in the past?

While past performance is not an indicator of the future, the Wide Moat ETF’s track record does show us whether its formula has worked thus far.

Pleasingly, it has returned a compound annual growth rate (CAGR) of around 15% over the past five years. Remember, that’s a period that includes such market shocks as the COVID-19 panic crash and the post-pandemic inflation correction.

Wide Moat ETF in some years has also paid out a small dividend. The dividend yield has averaged out to be 2.4%, while last year it was as high as 8.8%.

The Motley Fool’s Sebastian Bowen reckons this fund is the closest thing Australian investors have to emulating Warren Buffett’s investment style.

“One of the central tenets of [Buffett’s] style is finding businesses that display what’s known as an economic moat,” he said.

“This could be a strong and trusted brand, a low-cost advantage, or offering a product or service that customers have no choice but to pay for.”

The post Got $500 to invest in stocks? I’d put it in this ASX ETF appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could I turn $10,000 into $1 million by investing in ASX shares similar to Warren Buffett’s favourite stocks?
• Building a rock-solid base for my stock portfolio with these 3 ASX ETFs
• Which global ASX ETFs were the top performers for Aussie investors in 2023?
• 2 no-brainer ASX ETFs for investors to buy and hold
• Top ASX shares for beginner investors to buy in 2024

Motley Fool contributor Tony Yoo has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Gilead Sciences and Salesforce. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Teradyne. The Motley Fool Australia has recommended Salesforce and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Dg5ZocO

One of the biggest questions for stock markets this year is whether ASX lithium stocks can recover from an awful 2023.

As economies struggled both in the west and China, demand for the battery material dropped, sending both the commodity price and share prices spiralling down.

Moomoo Australia chief market strategist Matt Wilson recalled that there were brokers who had warned about this 12 months ago.

“These forecasts largely came to fruition, with the price of lithium carbonate falling by 73% to November 23.”

Sayona Mining Ltd (ASX: SYA) was no exception to this malaise, as it shed a shocking 79% off its valuation over the past 12 months.

Long-term outlook for lithium is bullish

The bright side for the lithium industry is that the world will continue to seek to reduce carbon emissions.

One of the main ways this will be done will be through the electrification of devices that are currently using fossil fuels, such as cars.

And that’s why most experts are tipping demand for lithium will recover in the long run.

Wilson pointed to the corporate frenzy seen over the past six months as evidence that the mineral has a bullish future.

“Strong takeover activity in the sector suggests global mining companies are still believers in the longer-term theme and are positioning themselves for an increasing commitment to the sector.”

But what about Sayona Mining specifically? 

Do Sayona shares have the capability to double in 2024?

But can Sayona shares double in the short term?

Firstly, it seems professional investors are bullish on Sayona.

According to CMC Invest, all three analysts that cover the stock are rating it as a strong buy right now.

However, whether Sayona shares can double just in 2024 is highly — or even entirely — dependent on which direction lithium prices go.

Earlier this month The Motley Fool’s Mitchell Lawler pointed out right now Sayona’s mines are producing lithium at a razor-thin margin of 2.8%.

So if the global commodity price falls any further, it could become uneconomic to continue mining.

Fellow junior miner Core Lithium Ltd (ASX: CXO) has already been forced to pause production, sending investors running like it was a burning building.

Another point of interest is that Sayona is one of the most shorted stocks on the ASX at the moment.

According to the Australian Securities and Investments Commission, almost 10% of Sayona shares are currently lent out to short sellers.

While on face value this cancels out the bullishness of the three analysts, even if Sayona’s valuation even creeps up a tiny amount, it could snowball into something spectacular.

In a classic short squeeze, all those short sellers would be forced to buy up the miner’s shares to cover their positions. And that in itself accelerates the price upwards even further.

The post Could the Sayona share price double in 2024? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Chalice Mining, Nuix, Pilbara Minerals, and Sayona Mining shares are falling
• These are the 10 most shorted ASX shares
• Could Sayona Mining shares be in danger of mothballing?
• Why Core Lithium, Magellan, Pantoro, and Sayona Mining shares are sinking today
• These are the 10 most shorted ASX shares

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.

from The Motley Fool Australia https://ift.tt/vtonYrm

After a terrible couple of years, more than one pundit is predicting ASX small-cap shares will play catch-up in 2024.

The portfolio managers at Cyan Investment Management reckon some of those businesses are now in better shape than when the stock market started abandoning small caps at the end of 2022.

“We believe those companies that have taken this challenging period to reduce costs to right-size their businesses and focused on cash flow and balance sheet management will be best placed for the year ahead,” the Cyan team said in a memo to clients.

“These are the types of business we have been focusing on and believe the portfolio is well positioned.”

Here are two stocks in particular that Cyan is bullish on, that have already started to creep upwards:

‘Quality of work and diversified business model’

Cyan has backed Playside Studios Ltd (ASX: PLY) pretty much since its listing at the end of 2020, and the analysts are excited about the current state of the business.

“In recent months, Playside has delivered strong cash flow performance and upgraded its already solid revenue guidance for FY24 to $55 to $60 million.

“This momentum continued in December when it announced it has signed an agreement with Warner Bros Discovery Inc (NASDAQ: WBD) Interactive Entertainment for a multi-game licence to use ‘highly recognisable intellectual property’ under licence for the development of two PC/console titles.”

Indeed on that news the share price pushed 17% higher during the month.

“There was no financial detail, but it is assumed to be a material opportunity,” read the Cyan memo.

“We see this as further validation of the quality of work and diversified business model.”

The Cyan team has unanimous support among their peers.

According to CMC Invest, all three analysts covering the stock currently rate Playside as a buy.

Bad news now priced in for this small cap

Silk Logistics Holdings Ltd (ASX: SLH) also had a great December, rising 7%.

But the shares still trade almost 28% down from its peak in February last year.

“Other than general financial market weakness, the company has faced headwinds in some areas as the economic activity has slowed across verticals such [as] consumer discretionary spending,” read the Cyan memo.

“SLH enjoyed some respite in December rallying to $1.85, even though there was no clear catalyst by way of any company announcements.”

Despite expected weakness in performance for the December half, the Cyan analysts believe that is already reflected in the current valuation.

“We see it as priced-in and believe the company offers outstanding value and income (P/E <8, yield +5%) with strong growth in the years ahead.”

The stock is sparsely covered by other professionals. But CMC Invest shows at least Morgans and Shaw & Partners agreeing with Cyan, with both rating Playside shares as a strong buy.

The post ‘Outstanding value’: 2 ASX small-cap shares ready to explode in 2024 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX dividend stocks to boost your income portfolio in 2024
• I see this ASX 200 stock as buying $1 coins for 75 cents!
• Is 2024 the year that CSL shares finally hit a new high?
• The DroneShield share price just clocked a 7-year high. Here’s why

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 Silk Logistics and Warner Bros. Discovery. The Motley Fool Australia has recommended Silk Logistics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/onls8WY

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Data#3, Deep Yellow, DroneShield, and Imugene shares are racing higher today
• Bitcoin price predicted to hit $100k this year! I’m buying ASX 200 shares instead
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Buying ASX 200 shares in 2024? Here’s why this $106 billion proposed US tax break matters

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended A2 Milk and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/gqL7xfY