Category: Stock Market

There are plenty of dividend shares out there on the Australian share market. But if you only want the crème de la crème, then you might want to check out the two ASX 50 dividend shares named below.

Here’s what analysts are saying about them and what sort of dividend yields you could expect to receive if you bought them today:

Telstra Group Ltd (ASX: TLS)

The first ASX 50 share for income investors to look at is telco giant, Telstra.

After years of falling earnings and dividend cuts, the company is back on form and has sustainable earnings growth back on the agenda.

A recent note out of Morgans reveals that its analysts are expecting this to underpin 17 cents per share fully franked dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $4.25, this will mean yields of 4% for investors.

Morgans also sees decent upside for the company’s shares over the next 12 months with its add rating and $4.70 price target.

Westpac Banking Corp (ASX: WBC)

Another ASX 50 share that has been named as a buy is Westpac. It is of course one of the big four banks and the owner of several banking brands such as Bank SA, Bank of Melbourne, St George, and the eponymous Westpac brand.

According to a note out of Goldman Sachs, its analysts have a conviction buy rating and $27.74 price target of the banking giant’s shares. Based on the latest Westpac share price of $22.00, this suggests potential upside of 26% for investors over the next 12 months.

But it gets better. Due to recent weakness, this ASX 50 share is forecast to provide investors with some very big dividend yields.

For example, Goldman Sachs expects fully franked dividends of 147 cents per share in FY 2023 and then 156 cents per share in FY 2024. This equates to yields of 6.7% and 7.1%, respectively.

The post Passive income alert! Buy these ASX 50 dividend shares now: analysts appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d aim for $50 a week in passive income from ASX 200 shares
• Investor or depositor? Warren Buffett sounds off on banking crisis
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• Could Westpac shares have ‘the greatest potential’ of all the ASX 200 bank stocks?
• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?

Motley Fool contributor James Mickleboro has positions in 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 Telstra Group. The Motley Fool Australia has recommended 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 Fortescue Metals Group Limited (ASX: FMG) share price could come under growing scrutiny as the ASX mining share becomes increasingly focused on its green energy efforts with Fortescue Future Industries (FFI).

Fortescue has been an ASX iron ore share from the start, but the founder and leader Dr Andrew Forrest has got the business focused on becoming a major player in a decarbonised world.

There are a few key areas of focus with these green energy endeavours – green hydrogen, green ammonia and high-performance electric batteries.

Of course, funding these growth areas needs cash. A few years ago, Fortescue committed to allocating 10% of its net profit after tax (NPAT) towards FFI. So, as an example, Fortescue generated $2.37 billion of NPAT in the first half of FY23 so it could allocate $237 million towards FFI.

FFI is expected to spend between $730 million to $830 million in FY23. In its half-year presentation, Fortescue revealed that $1 billion of allocated money hadn’t been spent.

But, eventually, FFI may need to spend more than its allocation so that it can progress with the green hydrogen projects it’s planning to build.

Where will FFI’s funding come from?

In an Australian Financial Review article, FFI boss Mark Hutchinson said that the green business is looking to invest in at least five green energy projects.

The article stated that Hutchinson expects funding support from selling project equity stakes to third parties, such as sovereign wealth funds. But, FFI could also ask for more than the 10% profit allocation from the board. This spending could benefit Fortescue shares if it unlocks a large new earnings stream.

He pointed to two potential projects in the US which have been “fast-tracked” – one in Phoenix and one in Texas. On those projects, Hutchinson said:

We have off-takers, we have power, we have water, we have land, so they’re ready to go. Again, it’s really important to show the world we can do this. What we have realised is that no one is really doing this at the scale we are thinking about.

There’s a potential project in Norway for a 300MW green hydrogen/green ammonia plant thanks to its relatively cheap hydropower.

The green ammonia export project in Queensland on Gibson Island involving the existing Incitec Pivot Ltd (ASX: IPL) ammonia plant is also expected to go ahead, however, there are “high energy costs” with this one.

Another option that could go ahead in the future is “in Kenya and involved using geothermal power to make green ammonia for use in agriculture in a country that relies on Russia for fertiliser imports and food security.”

Discussing the potential involvement of sovereign funds, Hutchinson said:

They are going to absolutely require that we stay in the equity and have a big chunk. Most of the investors we think will be in here will be like the sovereign funds.

The sovereigns love the idea of a pipeline [of projects] and they have enormous capital to deploy in this space. They’re waiting for someone to kind of show them that it’s not just one project or two projects. The unique thing about us is we can go in and say, ‘Here’s your 10, you pick’.

Will this help the Fortescue share price?

If Fortescue can execute these planned projects well, then spending $1 could unlock a lot more value than $1 for the business. Once FFI starts generating green hydrogen and green ammonia, seeing the cash flow coming in could help investors’ thoughts about the situation.

At the moment, some investors are only focusing on the cost of the green initiatives, rather than the potential benefits.

In the future, FFI could be one of the biggest green energy players in the world, which could make it a very valuable business in the future. FFI may already be worth US$20 billion, according to Dr Forrest’s meetings with investment banks.

The post Could more FFI spending be a saviour or stumbling block for Fortescue shares? appeared first on The Motley Fool Australia.

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More reading

• Here’s how much I would need to invest in Fortescue shares to generate a $150 monthly income
• Which is the best ASX 200 iron ore stock now: BHP, Fortescue, or Mineral Resources?
• Why did the Fortescue share price smash the ASX 200 in March?
• 2 ASX 200 mining directors buying up their company shares in the past week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 Bank of Queensland Ltd (ASX: BOQ) share price is struggling on Friday. It comes after the bank revealed it expects to post a $4 million profit for the first half, including a $260 million hit.

The S&P/ASX 200 Index (ASX: XJO) bank flagged a $60 million provision for an integrated risk program and a non-cash write-down of $200 million of goodwill.

The Bank of Queensland share price is currently trading 3.24% lower at $6.28 on the back of the news.

Let’s take a closer look at what investors might expect to hear when the bank reports next week.

Bank of Queensland share price plunges on $260m hit

Bank of Queensland shares are tumbling on news impairments and adjustments are expected to see the bank’s statutory net profit after tax (NPAT) slump to $4 million for the first half of financial year 2023.

For comparison, it posted a $212 million statutory NPAT for the prior comparable period.

The bank will release its earnings for the six months ended 28 February on Thursday.

A $60 million ($42 million post-tax) provision set to dent its statutory profit has been set aside to cover the cost of a three-year integrated risk program.

Bank of Queensland managing director and CEO Patrick Allaway commented on the program’s intent, saying:

The investment in our integrated risk program will further strengthen our operational resilience. Our shifted focus on strength and simplification whilst digitising BOQ is designed to deliver a low-cost bank with strong foundations.

Meanwhile, most of the goodwill held on its balance sheet relates to the 2007 acquisition of Home Building Society.

Finally, in another announcement released today, it revealed it intends to redeem $200 million of tier two notes, due 2028, following approval from the Australian Prudential Regulation Authority (APRA).

Sneak peek into first-half earnings

The ASX 200 share might also be being impacted by a sneak peek at the Bank of Queensland’s first-half results.

In addition to revealing an expected $4 million statutory NPAT, it also forecast $256 million of unaudited cash earnings and declared its intent to pay a 20 cent per share interim dividend.

The bank also noted its “strong financial position”, with its CET1 ratio at 10.71% and its liquidity coverage ratio at 143%. That’s up from 9.57% and 139% respectively at the end of last financial year.

Bank of Queensland share price snapshot

The Bank of Queensland share price has struggled in recent months.

The stock has tumbled 7% year to date. It’s also 21% lower than it was this time last year.

For comparison, the ASX 200 has gained 6% so far this year and has fallen 3% over the last 12 months.

The post Bank of Queensland share price plummets on $260m earnings impact appeared first on The Motley Fool Australia.

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More reading

• Banking and energy: The ASX 200 dividend shares to buy now according to analysts
• What’s the forecast for the Bank of Queensland share price?
• 7 ASX dividend shares you can buy for under $10
• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?

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 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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Earlier this month, we looked at a couple of ASX 200 dividend shares that Morgans has on its best ideas list right now. You can read about them here.

Moving on, let’s take a look at a couple more dividend shares that the broker rates highly in the current environment. They are as follows:

HomeCo Daily Needs REIT (ASX: HDN)

This daily needs focused property company is on Morgans’ best ideas list again this month. The broker likes the ASX 200 company due to its high occupancy rate, high quality customer base, and attractive dividend yield. It also sees plenty of growth opportunities through developments. It commented:

HDN’s portfolio is valued at around $4.7bn across +50 assets with exposure to Large Format Retail; Neighbourhood; and Health & Services properties. Over the medium term it expects to reweight towards Neighbourhood. Portfolio metrics are solid: weighted average cap rate 5.3% (stable with the recent result); weighted average lease expiry +4 years and occupancy >99%. Top 3 tenants are Bunnings, Coles and Woolworths. HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to ‘last mile’ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$600m development pipeline).

In respect to dividends, Morgans is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.18, this will mean dividend yields of 7% and 7.1%, respectively.

Morgans has an add rating and $1.50 price target on its shares.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that Morgans rates highly is Wesfarmers. It is the conglomerate behind a range of businesses include Bunnings and Kmart. Morgans believes the company is well-placed in the current economic environment thanks to its focus on value. It explained:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES’s businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.

As for dividends, its analysts are forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $51.64, this will mean yields of 3.5% and 3.7%, respectively.

Morgans has an add rating and $55.60 price target on Wesfarmers’ shares.

The post Morgans names more of the best ASX 200 dividend shares to buy in April appeared first on The Motley Fool Australia.

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More reading

• Blue chip beat-down: 5 huge ASX 200 shares cementing new 52-week highs today
• Is Wesfarmers a good defensive ASX 200 stock to buy in the current climate?
• How much do you need to invest to give up work and live only off dividend income?
• How I’d invest $5,000 today for long-term passive income
• How I’m building more passive income to retire early

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 Wesfarmers. 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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Did you invest in CSL Limited (ASX: CSL) shares five years ago? If so, you’re likely pretty happy with your decision. The biotechnology giant’s stock has roared 89% higher in that time.

An investor buying $6,000 worth of CSL shares in April 2018 likely would have walked away with 37 stocks ­– paying $159.88 apiece – and approximately $85 change.

Today, those 37 shares would be worth a total of $11,180.66. The CSL share price last traded at $302.18.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted just 25% in that time.

Meanwhile, the healthcare staple has been paying out consistent dividends. Let’s take a look at how much passive income the figurative holding might have yielded over its life.

All dividends paid to those holding CSL shares since 2018

Here are all the dividends paid to those invested in CSL stock over the last five years, rounded to the nearest cent:

CSL dividends’ pay date	Type	Dividend amount
April 2023	Interim	$1.62
October 2022	Final	$1.76
April 2022	Interim	$1.42
September 2021	Final	$1.59
April 2021	Interim	$1.35
October 2020	Final	$1.47
April 2020	Interim	$1.47
October 2019	Final	$1.45
April 2019	Interim	$1.20
October 2018	Final	$1.28
Total:		$14.61

As readers can see, each CSL share has yielded $14.61 in dividends over the last five years.

That means our figurative parcel has likely provided $540.57 of passive income over its lifetime – bringing our total return on investment (ROI) to an impressive 98%.

And that’s before considering the compounding returns that could have been realised if one had reinvested their dividends.

Not to mention, some of the ASX 200 biotech’s dividends in that time were partially franked. Thus, they may have brought additional benefits come tax time.

Right now, CSL shares offer a 1.1% dividend yield.

The post Invested $6,000 in CSL shares 5 years ago? Here’s how much dividend income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• Morgans says these are among the best blue chip ASX 200 shares you can buy
• If I’d invested $1,000 in CSL shares 24 years ago, here’s how much I’d have now!
• Why did the CSL share price lag the ASX 200 in the first quarter of 2023?
• Build your portfolio around these ASX 200 blue chip shares: brokers
• Top defensive ASX shares to buy in April 2023

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 positions in and has recommended CSL. 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 Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest exchange-traded fund (ETF) on the ASX. But is it a great opportunity?

It’s probably the best way to get exposure to the S&P/ASX 300 Index (ASX: XKO), which represents 300 of the biggest businesses on the ASX.

Investors that have a regular investment plan to automatically invest in the ETF every month probably don’t need to worry about what the latest price is – it might be best to keep things automatic and keep investing.

It’s understandable why some investors have an automatic investment plan with this option because of the diversified portfolio with 300 ASX blue chip positions, and the low management fee of 0.10%.

Is this a good time to buy the Vanguard Australian Shares Index ETF?

The ETF has risen by 6% since the start of 2023, so it’s not as cheap as it used to be. But, it’s down by around 5% over the last 12 months.

Within the portfolio, ASX financial shares and materials make up just over 52% of the overall portfolio. So, the valuation of ASX mining shares and ASX bank shares can have a major impact.

I think that the valuations of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) aren’t cheap as the miners are making good profit at the moment thanks to solid iron ore prices.

ASX bank shares like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) have dropped compared to earlier this year, though I wouldn’t exactly call them cheap with higher profitability after higher interest rates.

I’m not going to judge whether each individual business is cheap within the Vanguard Australian Shares Index ETF, but overall I’d say that it isn’t dirt cheap right now. Last year it was priced at around $80 when it did seem very appealing.

It can perform well

An investment doesn’t need to be incredibly cheap to count as a good investment.

Since the ETF’s inception in May 2009 to February 2023, it has delivered an average return per annum of around 9%. That’s decent, in my opinion. However, 4.6% per annum of that return was distributions, so there hasn’t been a lot of capital growth.

If I were looking for long-term capital growth, there are other ETFs I’d pick over Vanguard Australian Shares Index ETF.

The post Is the Vanguard Australian Shares Index ETF (VAS) still a dirt-cheap buy in April? appeared first on The Motley Fool Australia.

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More reading

• Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned
• 3 reasons to start buying ASX shares this week
• How I’m building more passive income to retire early
• Why is the Vanguard Australian Shares Index ETF (VAS) tumbling on Monday?
• Here are the ASX shares I was buying and selling in March

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 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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Investing in ASX 200 dividend shares can be a good way of earning passive income for extra cash.

National Australia Bank Ltd (ASX: NAB) has a long history of paying dividends to investors.

And the big four bank’s dividend increased in 2022 compared to 2020 and 2021.

So how much would I need to invest in NAB shares to generate a $150 monthly income?

Let’s crunch the numbers.

Firstly, a monthly income of $150 would generate an annual passive income of $1800.

National Australia Bank paid a final dividend of 78 cents a share in 2022 and an interim dividend of 73 cents a share.

In total, this means NAB paid $1.51 in total dividends in the 2022 financial year.

To have received $1800, or $150 a month, in passive income, you would need to have owned 1,192 NAB shares.

At Thursday’s closing price of $28.13, buying 1,192 NAB shares would cost you $33,530.96.

What next?

Goldman is tipping NAB to increase its dividend in FY23 and pay fully franked dividends of $1.73 in FY 2023.

If this is delivered, you would only need to own 1,040 of NAB shares to receive $1800 in passive income for the year.

This would set you back $29,255.20 — so less than what was required to generate this income in 2022.

NAB delivered an unaudited statutory net profit of $2.05 billion in the first quarter of FY23. Revenue lifted 15%, while the bank’s net interest margin jumped 12 basis points to 1.79%.

Share price snapshot

The National Australia Bank share price has risen nearly 15% in the last year.

The bank has a market capitalisation of about $88.3 billion based on the last closing price.

The post How much I would need to invest in NAB shares to earn $150 a month in passive income? appeared first on The Motley Fool Australia.

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More reading

• Investor or depositor? Warren Buffett sounds off on banking crisis
• Buy NAB and this ASX dividend share now: analysts
• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?
• Mortgage competition has never been hotter, so are NAB shares worth buying right now?
• Could right now be a great time to buy ASX 200 bank stocks for passive income?

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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Challenger telco Aussie Broadband Ltd (ASX: ABB) was an instant hit with investors after debuting on the ASX in October 2020.

In fact, the share price tripled from the closing price on that first day up until a year ago.

But in the last 12 months, the stock has definitely lost darling status, as the share price almost halved.

So what’s happening here? Is the decline terminal, or is it worth buying for another bull run?

Ignore the public face, the backroom is where it’s at

The QVG Capital analysts are one group that reckon better days are coming for Aussie Broadband shareholders.

But it’s not for reasons you might think.

Aussie Broadband is best known publicly as an NBN retailer, but this is a very low-margin cut-throat activity.

That unit is “not an attractive business”, according to a recent QVG memo to clients.

“The thing that attracts us to Aussie is that they have been investing in their own fibre backhaul and have been growing their business and government division,” read the memo.

“Business and government customers typically have lower churn and higher average revenues while on-net fibre margins can be 3x those of reselling NBN.”

The QVG analysts reckon when the market wakes up to this, Aussie Broadband shares could rocket upwards.

“As Aussie’s revenue and earnings mix moves more towards the higher quality business and government division, we believe a re-rating of the company is likely.”

So that’s a yes from QVG.

The big catalyst coming for Aussie Broadband shares

Last month, Discovery Fund portfolio manager Mark Devcich told The Motley Fool in an interview that he would also buy Aussie Broadband.

“The fall in share price hasn’t really been due to execution issues. It’s more just been a devaluation.”

Devcich likes that the economics of NBN are changing, with wholesale prices likely to come down for Aussie Broadband.

“You may have seen that the NBN wrote down the value of the network by $31 billion recently, and that was driven by changes to the prices they charge the retail service providers,” he said. 

“Once these changes come through in 1 July, [which] is the expected time frame, there should be substantial margin uplift.”

Although most NBN resellers will benefit, a premium-end provider like Aussie will reap more than the budget brands.

“Because Aussie Broadband gives higher speed plans, and higher usage customers, they’re actually going to benefit more than a regular telco,” said Devcich. 

“We don’t feel like consensus is properly factoring in the benefits that could come from this change in NBN pricing into the ’24 financial year.”

It seems Discovery Fund is also saying yes for another bull run.

The post Are Aussie Broadband shares capable of another bull run? appeared first on The Motley Fool Australia.

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More reading

• 2 fresh-faced ASX shares that could leave investors smiling 10 years from now
• ‘Rerating likely’: 2 ASX shares to buy before they take off
• These 3 ASX shares just halved. I would buy one of them: experts

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 Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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 Betashares Nasdaq 100 ETF (ASX: NDQ) has done very well for investors since the beginning of the year, rising by 20%.

This has been a much stronger performance than the S&P/ASX 200 Index (ASX: XJO) which has only risen by 5.4% in the same time period.

When something goes up so strongly in such a short amount of time, it’d be understandable to question whether it’s still good value.

But, I think it’s worth saying that an investment can go up in price and be cheap, or perhaps go down in price and be expensive.

Let’s remind ourselves that the Betashares Nasdaq 100 ETF is invested in 100 of the biggest businesses on the NASDAQ stock exchange, one of the main exchanges in North America.

Investors have probably heard of many of the biggest holdings within the exchange-traded fund (ETF) including Microsoft, Apple, Amazon.com, Alphabet (Google), Nvidia and Meta Platforms (Facebook).

Many of those names sank in 2022 as interest rates shot higher, hurting technology valuations in particular.

Why do interest rates (and inflation) matter?

Central banks around the world, including the Reserve Bank of Australia (RBA) and the US Federal Reserve, are trying to get in control of inflation. The tool the central banks are using to do this is interest rates.

Interest rates can have a huge impact on investment valuations. Warren Buffett once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The technology businesses have plenty of growth factored into their share prices, so it’s understandable why they were hurt.

But, inflation may have peaked in the US, with inflation now only 5%. But, this may still be too high for the Federal Reserve.

Is this a good time to invest in the Betashares Nasdaq 100 ETF?

It clearly would have been a better time to invest in December 2022 at a lower price.

But, on a conventional metric like a price/earnings (P/E) ratio, it’s certainly not cheap. According to BetaShares, the ETF had a forward P/E ratio of 23 times in February 2023.

Plenty of the businesses that it’s invested in are among the world leaders at what they do, such as Apple, Alphabet, Microsoft, Costco, Intuitive Surgical and ASML.

I believe this group of businesses can continue to perform well as they re-invest in their operations, strengthen existing services and launch new products. Many of these businesses are working with a global addressable market, which gives them plenty of room to grow.

While it’s not the cheapest time to invest, I think this ETF has a positive future ahead, so I’d be willing to invest at the current price.

The post Up 20% in 2023 so far, is it too late to buy Betashares Nasdaq 100 ETF (NDQ) units? appeared first on The Motley Fool Australia.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Intuitive Surgical, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended ASML, Alphabet, Amazon.com, Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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We’ve all heard how veteran investors became rich through long-term investing in behemoths like CSL Limited (ASX: CSL) and Amazon.com Inc (NASDAQ: AMZN).

But all giants of the industry were once startups, and buying in early can lock in decades of smiles for investors.

So what are some of the fresh ASX shares that have the potential to make you leap for joy in 10 years’ time?

Here are a couple of suggestions:

Australia conquered, now the world

PEXA Group Ltd (ASX: PXA), which listed on the ASX in July 2021, commands pretty much a monopoly in digital conveyancing in Australia.

So its growth opportunity comes from its overseas expansion plans.

The analysts at Firetrail Small Companies Fund team recognised Pexa’s potential late last year. 

“The Bank of England expects to revolutionise the UK property market by partnering with PEXA to implement its settlement technology,” read their report.

“The UK presents an estimated $700 million addressable market opportunity.”

A few weeks ago, Wilsons equities strategist Rob Crookston named Pexa as a growth stock he would buy anticipating a future takeover.

“Identifying companies that will make suitable takeover targets can make for very lucrative investments,” he said.

“Normally, companies are acquired at a significant premium to their latest share price, and any hint of a possible acquisition can trigger positive momentum even before a bid is announced.”

The Pexa share price has dipped more than 21% over the past 12 months, although it has headed 15.8% up since the start of the year.

‘Substantial margin uplift’

Challenger telco Aussie Broadband Ltd (ASX: ABB) might operate in a super-competitive industry crowded with giants, but multiple experts reckon it’s a buy.

One of those, Discovery Fund portfolio manager Mark Devcich, told The Motley Fool last month that there are “some pretty favourable dynamics in the NBN space right now”. 

“You may have seen that the NBN wrote down the value of the network by $31 billion recently, and that was driven by changes to the prices they charge the retail service providers,” he said.

“And what that’s going to mean is once these changes come through in 1 July… there should be substantial margin uplift.”

Aussie Broadband, which floated on the ASX in October 2020, has seen its share price halve since a year ago.

For the analysts at QVG Capital, the potential of Aussie Broadband’s activities aside from NBN retailing is the big lure.

“The thing that attracts us to Aussie is that they have been investing in their own fibre backhaul and have been growing their business and government division,” read the memo.

“As Aussie’s revenue and earnings mix moves more towards the higher quality business and government division, we believe a re-rating of the company is likely.”

The post 2 fresh-faced ASX shares that could leave investors smiling 10 years from now appeared first on The Motley Fool Australia.

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More reading

• ‘Rerating likely’: 2 ASX shares to buy before they take off
• These 3 ASX shares just halved. I would buy one of them: experts

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 Tony Yoo has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Aussie Broadband, CSL, and PEXA Group. The Motley Fool Australia has recommended Amazon.com and Aussie Broadband. 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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