Category: Stock Market

The Bank of Queensland Ltd (ASX: BOQ) is expected to deliver the biggest dividend yield among the ASX 200 bank shares in FY24.

That’s according to data from Commsec on consensus estimates for FY24 dividends among bank shares.

Bank of Queensland is expected to deliver a 52-cent dividend for FY24, which equates to a 7.5% yield.

In FY22, the regional bank paid 44 cents per share, fully franked. This was a 9% bump on FY21.

Here are the consensus estimates for the other ASX 200 bank shares.

ANZ 200 bank share	FY24 forecast dividend	FY24 forecast dividend yield
Bank of Queensland Ltd (ASX: BOQ)	52 cents	7.5%
ANZ Group Holdings Ltd (ASX: ANZ)	$1.60	6.6%
Westpac Banking Corp (ASX: WBC)	$1.473	6.3%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	60 cents	6%
National Australia Bank Ltd (ASX: NAB)	$1.77	5.7%
Virgin Money UK CDI (ASX: VUK)	$1.79	5.2%
Commonwealth Bank of Australia (ASX: CBA)	$4.55	4.3%
AMP Ltd (ASX: AMP)	5.2 cents	3.9%
Macquarie Group Ltd (ASX: MQG)	$6.775	3.8%

What will drive dividends in 2023 for ASX 200 bank shares?

Rising interest rates are leading to improved net interest margins (NIMs) for the ASX 200 bank shares.

This is a big factor in a bank’s profitability, so there is an obvious impact on dividends because they are funded by profits.

A bank’s NIM represents the difference between the income it receives from interest on home and business loans and the interest it pays out on deposits or savings accounts.

In October, the Bank of Queensland was among the first of the ASX 200 banks to report an improved NIM in its full-year FY22 results.

The market had been waiting to find out whether consecutive official cash rate rises since May had flowed through to the banks’ bottom lines positively or negatively. Positively in terms of improved NIMs, or negatively in terms of higher bad debts as mortgages became more expensive for homeowners.

It turned out to be positive, with Bank of Queensland reporting an exiting net interest margin for FY22 of 1.81%.

Broker Goldman Sachs noted that was well ahead of the 1.75% 2H FY22 average and above their forecast for FY23 of 1.78%.

Investors loved the news and pushed the Bank of Queensland share price 11.3% higher on the day of the release of the full-year results. The share prices of many ASX 200 bank shares rose in the following days.

Banks return to wholesale international markets for lending

One threat to expanding NIMs is that Australian banks now have to return to the overseas wholesale market to at least partly fund ongoing mortgage lending.

This follows the closure of the Term Funding Facility (TFF), which was set up by the Reserve Bank in 2022. The TFF allowed Australian lenders to borrow at exceptionally low rates to keep mortgage lending going through the COVID-19 crisis.

However, the banks now have to pay that money back and return to wholesale markets for funds. The TFF was closed for drawdowns on 30 June 2021, and the last possible maturity date is 30 June 2024.

Wholesale funding is more expensive than using money from savings accounts, so the banks are starting to raise term deposit rates to attract more local fixed-term savings to use for lending.

As most Australian savers know, the banks were quick to pass on rate hikes to home loan customers but slow to pass them on to savings account holders. This helped protect NIMs in the second half of 2022.

Now, it is becoming cheaper to offer higher term deposit rates to attract local money for lending.

The post Which ASX 200 bank share is forecast to pay the highest dividend yield in FY24? appeared first on The Motley Fool Australia.

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More reading

• My $15 a day plan to build passive income this year
• Can ASX bank shares deliver in 2023 after higher interest rates?
• Should I buy Bank of Queensland shares for passive income?
• Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today
• 3 ASX 200 value shares I think could soar in 2023

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, Macquarie Group, and Westpac Banking. 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 Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Macquarie Group and Westpac Banking. 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 past year has been rough for many investors, with professionals certainly not immune from poor performance.

The QVG Capital team admitted 2022 was a disaster in a recent memo to clients, with the fund losing 23.4%.

The QVG analysts attributed this to three reasons.

“We started this year with a ‘highly rated’ portfolio. which was de-rated through the year due to rising rates,” read the memo.

“We did not own any companies in the hottest sectors (energy and resources). We made some stock-specific mistakes — e.g. holding City Chic Collective Ltd (ASX: CCX) too long and Symbio Holdings Ltd (ASX: SYM) at all.”

The QVG team is again expecting a difficult 2023. 

But investors might be surprised to hear what they are doing.

“We expect next year to be a tough one for the global economy. Despite this we are almost fully invested.”

‘Patience is required’

So if they think 2023 will be rough, why are the QVG professionals sticking to ASX shares?

“This is because prospective returns from our portfolio holdings are compelling and when the market turns it tends to move quickly.”

The memo reiterated that no one is able to forecast when the bottom will pass and those stunning returns will materialise.

“Because of this, some patience is required,” stated the team.

“Now is not the time to get too glum.”

‘The best formula for strong performance’

The QVG team has an investment strategy based on investing in three types of stocks — “buying balance sheets, businesses with high through-the-cycle returns and organic growth potential”.

They will not deviate from that philosophy, regardless of what 2023 has in store.

“Over the long-term we believe this is the best formula for strong performance,” read the memo.

“In the short-term we are not making any bold predictions but promise to stay humble, hungry and eat plenty of our own cooking.”

Despite the terrible performance in 2022, the QVG fund has returned 89.21% since inception, which equates to 12.71% per annum.

“Economic growth will slow next year, but we’re not trying to time the market and are mindful the strongest gains in markets can occur immediately after a bottom.”

The post ‘Now is not the time to get glum’: Fund reveals why it’s ‘almost fully invested’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• What’s the forecast for the coal price in 2023?
• Here are some top ASX dividend share ideas according to experts
• Why has the Zip share price already bolted 21% higher in 2023?
• Goldman Sachs names 3 ASX growth shares to own in 2023

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 Symbio. The Motley Fool Australia has positions in and has recommended Symbio. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and raced notably higher. The benchmark index rose 1.2% to 7,280.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 poised to rise

The Australian share market looks set to end the week with a solid gain following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.45% higher this morning. In late trade in the United States, the Dow Jones is up 0.8%, the S&P 500 has climbed 0.55%, and the Nasdaq has risen 0.7%. This was driven by the softening of inflation in the United States.

Oil prices charge higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$78.68 a barrel and the Brent crude oil price is up 1.95% to US$84.20 a barrel. Demand hopes boosted prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price could be heading a lot higher from current levels. That’s the view of analysts at Goldman Sachs, which have reiterated their buy rating and $15.20 price target on the lithium miner’s shares today. It said: “We prefer Allkem (Buy) with optionality across the Americas and Australia growing equity LCE production >4x by FY27E and at a discount to peers.”

Gold price jumps

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.2% to US$1,900.9 an ounce. Softening US inflation has sparked hopes that the US Federal Reserve will slow its rate hikes.

Fortescue named as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price remains severely overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a trimmed price target of $13.40. This implies potential downside of 41% from current levels.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Power up: 3 best ASX 200 energy shares of 2022
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Can Woodside shares keep delivering stellar gains in 2023?

Motley Fool contributor James Mickleboro has positions in Allkem. 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 coal price soared ahead in 2022, taking ASX coal shares along for the ride. But will it keep lifting higher this year?

ASX shares directly impacted by changes in the coal price include Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Ltd (ASX: NHC) and Yancoal Australia Ltd (ASX: YAL).

All three fell in today’s trade, with Yancoal shares dropping 3.33%, shares in Whitehaven down 1.36%, and New Hope shares sliding 3.58% at the close of trade.

Zooming out for a look at the bigger picture, however, trading economics data shows that coal prices have soared 85% in the last year.

Let’s check the outlook for the coal price this year.

Could the coal price go higher?

The outlook for coal prices appears to be mixed for 2023. However, long term, analysts anticipate the commodity will fall.

The Australian Government’s Office of the Chief Economist said thermal coal prices were expected to rise in 2023.

According to a report in December, prices for thermal coal were forecast to rise from US$245 a tonne in FY22 to US$360 a tonne in FY23. However, in FY24, the government predicted thermal coal prices would slide to US$239 a tonne.

Meanwhile, metallurgical coal is tipped to drop from US$404 a tonne in FY22 to US$262 in FY23 and US$238 in FY24.

Coal exports are also expected to rise in the 2023 financial year. Commenting on the outlook for thermal coal, the report stated:

Thermal coal exports should exceed $75 billion this financial year, up from $46 billion in 2021–22. After 2023–24, earnings from these commodities are likely to fall back towards pre-COVID-19 levels, as gains in world supply bring down prices.

Meanwhile, an analyst quoted by Bloomberg recently tipped coal prices to lift in the new year before retreating as Europe and the United States head into summer. Saxo Capital Markets strategist Jessica Amir, cited by the publication, said:

Demand for coal usually peaks in January, so some of these shareholder returns could grow into the new year as the energy crisis continues.

She added coal prices might “lose heat before the mid-year, as Europe and US head into summer and thus demand for coal will cool”.

As my Foolish colleague Tristan reported recently, Whitehaven and New Hope could pay big dividends in FY23. New Hope may pay a dividend yield of 40% in FY23, while Whitehaven may pay 16%

Share price snapshot

The Whitehaven share price has exploded 203% in the last year.

The New Hope share price has climbed 157% in the last 52 weeks.

Yancoal shares have also surged, lifting 110% in the past year.

The post What’s the forecast for the coal price in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Power up: 3 best ASX 200 energy shares of 2022
• Here’s why 2023 will be a huge year for passive income
• 3 ASX 200 dividend shares with HUGE passive-income potential for FY24
• With a projected 20% dividend yield, is this ASX 200 energy share for real?

Motley Fool contributor Monica O’Shea 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 Zip Co Ltd (ASX: ZIP) share price is in the green year to date, despite falling nearly 85% in the last year.

Zip shares have risen 21% since market close on 31 December and are currently fetching 61.5 cents.

However, in today’s trade, Zip shares fell sliding 1.6%. Let’s take a look at what is going on with the Zip share price.

What’s going on?

Zip shares may be rising this year, but it is not the only ASX buy now pay later (BNPL) share rising year to date.

The Block Inc CDI (ASX: SQ2) share price is lifting 11% this year, while Sezzle Inc (ASX: SZL) shares are rising 13%.

Optimism in the BNPL sector appears to be impacting the Zip share price and other ASX BNPL shares.

As my Foolish colleague James reported earlier this month, investors could be buying up BNPL shares after they fell sharply in 2022.

USA BNPL stocks are also charging higher in 2023. For example, the Affirm Holdings Inc (NASDAQ: AFRM) share price has soared 24% year to date. Block’s New York Stock Exchange listing Block Inc (NYSE: SQ) has also leapt 11% higher this year.

Zip has not provided any price-sensitive news to the market this year. However, the company is targeting earnings before interest, taxes and depreciation (EBITDA) profit in the 2024 financial year. Commenting on this outlook in November, CEO Larry Diamond said:

We expect to see the US exiting FY23 cash EBITDA positive and to neutralise the cash burn from our rest of world footprint during the second half of FY23.

We are on track to deliver positive cash EBITDA as a group in the first half of financial year 2024.

Zip’s CEO has been upbeat with optimism in recent months. For example, in late October Diamond predicted Zip could be the next Commonwealth Bank of Australia (ASX: CBA). He said:

We still believe, in this market, we can be the next CBA. Why not? We have the right leadership, the best technology, and the best people. We are committed to the long term.

Further, Zip also advised in late 2022 that Diamond has moved to the USA, where he sees a significant opportunity for the company. He commented:

There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.

The post Why has the Zip share price already bolted 21% higher in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why Magellan, Pointsbet, Star, and Zip shares are dropping today
• Why Alkane, Appen, Warrego Energy, and Zip shares are racing higher today
• The Zip share price crashed 88% in 2022. Can it recover in 2023?
• Here are the 10 most shorted ASX shares

Motley Fool contributor Monica O’Shea 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 Affirm, Block, and Zip Co. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you wanting to add some new ASX growth shares to your portfolio this month? If you are, read on.

Three ASX growth shares that have been tipped as buys by Goldman Sachs are listed below. Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share that Goldman has tipped as a buy is leading appliance manufacturer, Breville. The broker believes the company is well-placed to continue its solid growth in the coming years despite the tough economic environment. In fact, it is forecasting an EBITDA compound annual growth rate of 7% between FY 2023 and FY 2025. This is being driven by the “strong premium coffee in-home consumption trend and competitive advantage in premium brand and product.”

The broker currently has a buy rating and $24.70 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be in the buy zone is data centre operator NextDC. Goldman is very positive on the company and expects another strong result in FY 2023. This is thanks to robust demand for data centre services and its strong market position. Goldman then expects “an acceleration in growth following S3/M3 openings and supply chain normalization.”

The broker has a conviction buy rating and $14.30 price target on the company’s shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share that Goldman Sachs rates as a buy is online furniture and homewares retailer Temple & Webster. Goldman Sachs believes the company is well-placed for long term growth due to its leadership position in a retail category that is still only in the early stages of shifting online.

Its analysts have a buy rating and $7.50 price target on the company’s shares.

The post Goldman Sachs names 3 ASX growth shares to own in 2023 appeared first on The Motley Fool Australia.

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More reading

• These beaten down ASX shares are cheap buys: experts
• Here are the 10 most shorted ASX shares
• 3 ASX growth shares to buy with huge upside potential – analysts
• 2 excellent ASX growth shares that analysts say are buys in January
• 3 of the best ASX shares I’d buy now for a stock market rally in 2023

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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ASX mining share Norwest Minerals Ltd (ASX: NWM) shot the lights out on Thursday. The junior miner’s share price screamed 60% higher on a positive company update.

Investors went positively crazy over the stock, with more than 30 million shares traded today. To put that into perspective, Norwest has a 30-day average trading volume of 362,000 per day.

The Norwest share price finished the session at 7.2 cents.

What did the ASX mining share report?

The gold and base metals explorer released assay results from its maiden drilling program at its 100% owned Bali Copper Project in Western Australia today.

The assay results from 33 drill holes showed “broad intervals of significant copper mineralisation”.

One example is 1.4% copper at 52 metres from 0 metres, including 4.4% copper at 12 metres from four metres. Sixteen individual metres of copper assaying above 3% was found.

The highest concentration discovered was 11.2% copper.

The assay results also showed intervals of lead, zinc, and silver.

The Bali Copper Project comprises approximately 8km of the Bali shear zone. Norwest says the area has “numerous copper and other base metal prospects”.

What did the company say?

Norwest CEO Charles Schaus commented:

This is the first drilling undertaken at Bali since 1989 and we are very encouraged by the results.

The program tested each of the four prospects by systematic drilling of holes along strike with the aim of locating the source(s) for the high-grade copper exposed at surface.

All prospects returned one or more wide drill intersections of copper mineralisation.

Norwest also reported that mapping and rock chip assays have identified seven further copper-rich veins at the site. Plans for another drilling program are now underway.

Norwest share price snapshot

The Norwest Minerals share price has risen by 137% over the past six months.

However, it has halved in value since listing on the ASX at 14 cents back in November 2018.

Norwest Minerals has a market capitalisation of around $15 million based on the current share price.

The post Guess which ASX mining share exploded 60% on Thursday appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 3 ASX growth shares to own in 2023
• 3 catalysts that could boost Novonix shares in 2023
• Here are the top 10 ASX 200 shares today
• Why I think these 3 ASX 200 dividend shares are top buys for retirement
• Buy this ASX 200 bank share with 21% upside: Morgan Stanley

Motley Fool contributor Bronwyn Allen 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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Last year was undoubtedly a traumatic year for holders of Novonix Ltd (ASX: NVX) shares. The share price of the battery technology company was slashed by 84% in 2022 as investors turned their backs on cash furnaces en masse.

This year is shaping up to be another capital-intensive 12 months for Novonix. However, there are still a few developments that could put a fire under Novonix shares in 2023.

1. Electric vehicle adoption continues

Most will know of the cataclysmic descent that Tesla Inc (NASDAQ: TSLA) shares have experienced lately. One of the pressures contributing to the fall has been the concern of a central bank-induced recession in 2023.

The prevailing view is that electric vehicle (EV) sales will decrease as consumer spending weakens. However, a number of analysts still expect EV adoption to rise throughout 2023 and the proceeding years.

J.D. Power, a United States consumer research firm, is forecasting EV market share to grow from 7% to 12% this year. In a similarly bullish tone, global professional services firm Ernst & Young expects electric vehicle sales in the US, China, and Europe to surpass all other engines by 2030.

If EVs continue to make use of lithium-ion batteries, there’s a possibility that Novonix shares could benefit from the increased cathode and anode demand.

2. Inflation Reduction Act could boost Novonix shares

The Inflation Reduction Act (IRA) was introduced by the White House in August last year. Around $370 billion is aimed at funding clean energy and securing a robust supply chain for green materials in the US.

Furthermore, part of the IRA entails a $7,500 consumer tax credit on EVs using IRA-compliant materials. In other words, car manufacturers are incentivised to partner with critical mineral producers in the US.

Novonix is strategically constructing its facilities within the US and could catch a tailwind from this government legislation.

It is worth noting that Tesla recently filed to construct a 1.4 million square feet expansion to its Giga Texas facility — which includes a US$216 million cathode production building.

3. Potential for more China tariffs

The third and final catalyst that could give Novonix shares a boost in 2023 involves China and tariffs. Section 301 tariffs on imports from China into the United States are under review, as stated in the company’s recent annual general meeting presentation.

A previously enforced 25% tariff on artificial graphite from China could soon be removed. This temporary waiver was set to expire at the end of 2022. If removed, the supply of graphite from Novonix could look economically more appealing to suppliers.

If any change in tariffs bolsters the company’s future demand for offtakes, the Novonix share price could benefit.

The post 3 catalysts that could boost Novonix shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• The Novonix share price crashed a whopping 84% in 2022. What’s next?
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares are leading the market higher today

Motley Fool contributor Mitchell Lawler has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

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There was likely a spring in the step of S&P/ASX 200 Index (ASX: XJO) investors today as the market jumped higher. The index closed Thursday’s session 1.18% higher at 7,280.4 points.

It followed a joyous session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI) lifted 0.8% on Wednesday while the S&P 500 Index (SP: .INX) rose 1.3% and the Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.8%.

Back home, the banks led the way, with the S&P/ASX 200 Financials Index (ASX: XFJ) flying 1.5% higher.

The S&P/ASX 200 Energy Index (ASX: XEJ) also posted a 1.2% gain after a strong night for oil prices and bullish comments from market experts.

Bringing up the ASX 200’s rear on Thursday was the S&P/ASX 200 Utilities Index (ASX: XUJ). It rose just 0.2%.

So, with all that in mind, let’s take a look at the shares that posted the ASX 200’s biggest gains today.

Top 10 ASX 200 shares countdown

Lithium share Pilbara Minerals Ltd (ASX: PLS) took out today’s top spot with a 4.5% gain, closing the session at $4.16. That leaves it a whopping 15% higher than where it started 2023.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$4.16	4.52%
Liontown Resources Ltd (ASX: LTR)	$1.565	4.33%
West African Resources Ltd (ASX: WAF)	$1.25	3.31%
Imugene Limited (ASX: IMU)	$0.17	3.03%
Lake Resources N.L. (ASX: LKE)	$0.865	2.98%
Boral Limited (ASX: BLD)	$3.18	2.91%
Domain Holdings Australia Group Ltd (ASX: DHG)	$2.92	2.82%
Fortescue Metals Group Limited (ASX: FMG)	$22.92	2.78%
ASX Ltd (ASX: ASX)	$67.99	2.7%
Corporate Travel Management Ltd (ASX: CTD)	$16.67	2.65%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Can Woodside shares keep delivering stellar gains in 2023?
• 5 ASX 200 shares smashing new, 52-week highs on Thursday
• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher

Motley Fool contributor Brooke Cooper 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 recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When building a retirement portfolio, I would look for S&P/ASX 200 Index (ASX: XJO) shares with defensive qualities, strong business models, positive long-term outlooks, and a track record of dividend payments

By doing this, I believe you will be left with a portfolio that has the potential to grow at a solid rate in the future whilst also providing you with a growing source of passive income in retirement.

But which ASX 200 shares could be top options for a retirement portfolio? Three that I would consider buying are listed below.

Coles Group Ltd (ASX: COL)

I think this supermarket giant could be a quality option for a retirement portfolio. That’s because Coles encompasses all of the desirable traits I outlined above. This is particularly the case with its defensive qualities. You only need to look at the company’s performance during the pandemic to see that.

In respect to dividends, Morgans is expecting Coles to pay fully franked dividends of 64 cents per share in FY 2023 and 66 cents per share in FY 2024. This represents yields of 3.8% and 3.9%, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 share that I believe would be a great option for retirees is Telstra. It is of course Australia’s largest telco, providing millions of people with internet and phone services.

If times were hard, my phone and internet would be the last things I would give up. And I’m sure I’m not alone in that. I feel this makes Telstra a defensive option for investors.

And while its growth has been lacking over the last decade, its T22 and T25 strategies have changed that. Telstra is now targeting mid-single digit underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

Morgan Stanley expects this to underpin fully franked dividends of 17 cents per share in FY 2023 and 18 cents per share in FY 2024. Based on the latest Telstra share price, this will mean yields of 4.2% and 4.5%, respectively.

Transurban Group (ASX: TCL)

A final ASX 200 share that I would buy for a retirement portfolio is Transurban. It is a toll road operator with a collection of important roads across Australia and the United States. These include CityLink in Melbourne, WestConnex in Sydney, and the Logan Motorway in Brisbane.

I believe Transurban looks well-placed for long-term growth thanks to population growth, urbanisation, and the value of time. In respect to the latter, Transurban estimates that customers using its roads (compared to alternative routes) saved a total of 323,000 hours of travel time each workday in FY 2022.

Combined with its positive exposure to inflation (toll increases) and significant growth pipeline, I’m confident that Transurban will provide investors with a growing stream of dividends over the next decade.

For now, Citi is expecting the company to pay dividends of 53 cents per share in FY 2023 and 55.8 cents per share in FY 2024. This equates to yields of 4% and 4.2%, respectively.

The post Why I think these 3 ASX 200 dividend shares are top buys for retirement appeared first on The Motley Fool Australia.

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More reading

• Can Telstra shares deliver 16% upside AND a healthy dividend this year?
• Brokers name 2 ASX dividend shares to buy now
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• I’d listen to Warren Buffett and invest in ASX shares with wide economic moats
• Buy Telstra and this ASX 200 dividend share for income in 2023: brokers

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 and 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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