Category: Stock Market

Let’s face it, not every ASX share brings excitement to market watchers.

The Aussie bourse is crawling with incredibly interesting businesses aspiring to change the world, or at least make a significant dint in their industries. As a result, it’s easy to overlook more traditional, arguably ‘boring’, stocks.

But those that did overlook these companies in favour of more exciting entities might be kicking themselves now. Let’s take a look at three ‘boring’ ASX shares posting huge returns in 2022.

3 ‘boring’ ASX shares posting massive 2022 gains

Inflation, interest rate hikes, the war in Ukraine, continued COVID-19 impacts, oh my – 2022 has been a hectic year for markets.

In the big end of town, the S&P/ASX 200 Index (ASX: XJO) has slumped 5% this year. The benchmark All Ordinaries Index (ASX: XAO), meanwhile, has slipped 7%.

But Origin Energy Ltd (ASX: ORG) has had a buoyant year amid volatile energy prices and a recent takeover bid.

Of course, the utilities sector isn’t exciting to everyone. Still, the ASX utilities share has gained 50% since the final close of 2021.

As the above chart demonstrates, the Origin share price didn’t truly kick off until last month. That was when suitors came knocking, offering the company $9 per share to take it off the market. That offer proved enough to grant the potential buyers due diligence.

Another perhaps dull ASX share outperforming this year is AMP Ltd (ASX: AMP). The 173-year-old financial institution’s stock appears to have been driven by the divestment of its Collimate Capital businesses.

The AMP share price has gained 35% since the end of last year.

Collimate Capitals’ domestic leg will be sold to Dexus Property Group (ASX: DXS), while its international business will go to DigitalBridge. AMP intends to return most of the proceeds to shareholders.

Finally, not many of us love going to the pharmacy, but shares in pharmaceutical distributor and wholesaler Sigma Healthcare Ltd (ASX: SIG) have been rocketing this year.

It comes as the healthcare stock works to enhance its operating performance and reduce debt. The company posted a $1.5 million loss for the six months ended July despite its revenue lifting 6% to $1.8 billion.

The Sigma share price has lifted 28% from its final close of 2021.

The post 3 ‘boring’ ASX shares with returns over 25% in 2022 appeared first on The Motley Fool Australia.

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More reading

• Why Air New Zealand, Chalice, Evolution, and Origin shares are rising today
• ASX index beaters: 5 shares that have supercharged portfolios in 2022
• Why did the AMP share price surge 8% in November?
• These 3 ASX 200 dividend shares led the pack in November. Here’s why
• Why did the Origin share price rocket 41% in November?

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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The Rural Funds Group (ASX: RFF) share price has been falling in recent times. With the ASX dividend share getting close to a 52-week low, this could be an opportunistic time to invest.

Rural Funds is a real estate investment trust (REIT) that owns a portfolio of farms across Australia. It has 68 properties located in multiple climactic zones. Those assets are spread across cattle, vineyards, almonds, macadamias and cropping (sugar and cotton).

Why is the Rural Funds share price dropping?

Rising interest rates may be impacting the underlying value of Rural Funds, or at least impacting investor sentiment.

Warren Buffett, a legendary investor, once said about interest rates:

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.

I’m not exactly sure what the prices of farms will do from here.

We’ve already heard from Centuria Industrial REIT (ASX: CIP) – which owns warehouses – that its portfolio valuations were down a little but rental growth was supportive.

In FY22, which was the 12 months to 30 June 2022, Rural Funds saw a 24% increase of the adjusted net asset value (NAV) to $2.69, which is the underlying capital value of the ASX dividend share. That implies the current Rural Funds share price is at a 9% discount to this. But, that was before many of the many interest rate rises this year.

The underlying value of the business also includes the fair value of water entitlements.

Increasingly attractive

While the exact underlying value of Rural Funds is up for debate, the distribution yield that it’s paying is worth knowing.

The business is expecting to pay a total distribution of 12.2 cents per share in FY23 after its latest 4% annual distribution increase. The FY23 distribution yield is therefore projected to be 5%, which seems attractive even in this higher interest rate environment.

Rural Funds continues to develop its portfolio. For example, it recently announced a 40-year lease with The Rohatyn Group for 3,000 hectares of macadamia orchards forecast to be developed by 2024. A key feature of the lease is an annual indexation within the 1.5% to 2.5% range, plus a profit share above a certain threshold for the duration of the lease.

The ASX dividend share continues to invest in productivity improvements, such as increasing water storage, increasing irrigation area and installing flood protections.

With some of the rental income linked to inflation, investors could see a boost in rental growth during this elevated inflation period.

We all need to eat food, so the underlying demand for produce from farms is likely to be solid. But, it’s the tenant that has to deal with the issues relating to operational farming.

Rural Funds share price snapshot

Rural Funds has dropped 23% in the year to date, and it’s down almost 10% in the month of December to date.

The post Near a 52-week low, this enticing ASX dividend share could be bottoming out appeared first on The Motley Fool Australia.

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More reading

• Boost your passive income with these ASX dividend shares: analysts
• 2 ASX dividend shares that have raised their payouts by 20% in 5 years
• 2 safe and reliable ASX dividend shares to buy for 2023: analysts
• Here’s how I’d invest $5,000 in ASX dividend shares to earn a second income
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early

Motley Fool contributor Tristan Harrison has positions in Rural Funds 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 positions in and has recommended Rural Funds 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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National Australia Bank Ltd (ASX: NAB) shares have been providing investors with a portion of the major bank’s profits in the form of dividends since 1983. Though, its stock has failed to keep up with the market over the last decade.

The S&P/ASX 200 Index (ASX: XJO) has gained more than 50% since December 2012. The NAB share price, meanwhile, has lifted nearly 30% in that time to trade at $30.12 today.

An investor who bought $1,000 of the big bank’s stock this time 10 years ago would likely have walked away with 42 shares paying $23.34 apiece and $19 change. Today, that same parcel would be worth $1,265.04.

Have NAB’s dividends made up for its share price’s underperformance? Let’s take a look.

How much have NAB shares paid in dividends in 10 years?

Here are all the dividends handed out to those invested in NAB shares over the last decade: 

NAB dividends’ pay date	Type	Dividend amount
December 2022	Final	78 cents
July 2022	Interim	73 cents
December 2021	Final	67 cents
July 2021	Interim	60 cents
December 2020	Final	30 cents
July 2020	Interim	30 cents
December 2019	Final	83 cents
July 2019	Interim	83 cents
December 2018	Final	99 cents
July 2018	Interim	99 cents
December 2017	Final	99 cents
July 2017	Interim	99 cents
December 2016	Final	99 cents
July 2016	Interim	99 cents
December 2015	Final	99 cents
July 2015	Interim	99 cents
December 2014	Final	99 cents
July 2014	Interim	99 cents
December 2013	Final	97 cents
July 2013	Interim	93 cents
December 2012	Final	90 cents
Total:		$17.74

Did you buy NAB shares for $23.34 apiece 10 years ago? If you did, you’ve likely received $17.74 in dividends per share over the years since.

Thus, a near-$1,000 investment in the big bank a decade ago would have yielded $745.08 by now. That’s certainly nothing to scoff at!

It also means our figurative investor has earned more in capital gains and dividends than they forked out to begin with – discounting the initial purchase price, their investment would have returned a total of $1,029.88 over its life so far.

Of course, they might have boasted an even larger return if they worked to compound their dividends by making use of NAB’s dividend reinvestment plan (DRP).

Additionally, all dividends paid by the bank in that time have been fully franked. That means they might have provided more benefits at tax time.

Right now, NAB shares trade with a 5% dividend yield.

The post Bought $1,000 of NAB shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• ‘Highest quality companies’: Expert names 2 ASX shares to buy now
• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• Can investors bank on a strong finish to 2022 for NAB shares?
• Why did the NAB share price underperform the ASX 200 in November?
• The 3 best-performing ASX 200 bank shares in November revealed

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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BHP Group Ltd (ASX: BHP) shares have gained a whopping 24% since the closing bell rang on 31 October, currently trading for $46.23 apiece.

Not coincidentally, the big lift in the S&P/ASX 200 Index (ASX: XJO) iron ore miner coincides with a 40%-plus increase in the price of iron ore over that same period. Not to mention a 13% spike in the price of copper.

While BHP shares generate roughly half their revenue from iron ore production, copper is the miner’s second biggest revenue earner. And the company has plans to expand its copper footprint.

As BHP notes on its website:

We believe the demand for copper will grow due to grade declines at existing copper mines, the radical urbanisation of large populations in China and India and the electrification of energy and transportation. Renewable energy sources, such as wind and solar, also require copper for their infrastructure.

Which brings us to what China’s reopening could mean for BHP shares in 2023.

What impact will China’s reopening have?

After fighting to stamp out all traces of the virus for almost three years, Chinese authorities are rapidly rolling back the nation’s strict, economy-hindering zero COVID policies.

And as the world’s most populous nation and number two economy moves to fully reopen, it could well send the iron ore price sharply higher and see the copper price hit new all-time highs. Both of which would offer some strong tailwinds for BHP shares.

On the iron ore front, Citi analysts have a bullish outlook heading into 2023. The broker cites both China’s reopening moves as well as the Chinese government’s recent liquidity support measures for the nation’s beleaguered, iron ore-hungry property sector.

Should China continue on its reopening path and should the government provide significant further assistance to the property industry, Citi believes the iron ore price could retest US$150 per tonne. That’s some 36% above the current price, a boost that would support the BHP share price in the new year.

According to the Citi analysts (quoted by The Australian Financial Review):

China is making meaningful progress towards further reopening. We believe iron ore prices could rally towards $US150 a tonne if China rolls out meaningful credit easing in the next three [to] six months.

“Policymakers appear determined to support debt-trapped property developers. This reduces the downside risk for iron ore,” the broker added.

But it’s not just resurgent iron ore prices that could bolster BHP shares in 2023.

According to Goldman Sachs, the copper price could hit new record highs next year. That’s due to a combination of a forecast reduction in copper output from Chile coupled with a big increase in forecast demand from China.

Goldman also cites China’s reopening along with expected surging demand from China’s booming green energy sectors.

“The sequential increase in policy targets and commitments to green transition, alongside a minimal supply response so far … have resulted in earlier and larger open-ended deficit conditions that essentially are already here, not beginning at some point in the future,” Nicholas Snowdon, metals strategist at Goldman Sachs, said.

Copper prices hit their last all-time highs on 4 March this year, reaching US$10,670 per tonne, helping propel BHP shares higher.

Goldman Sachs is forecasting the copper price will hit US$11,000 per tonne next year. That’s some 30% above the current price of US$8,457 per tonne.

How have BHP shares been performing?

Atop some outsized dividend payments, BHP shares, pictured below, have gained 14% over the past 12 months. For some context, the ASX 200 is down 3% over the full year.

The post Own BHP shares? Here’s what China’s reopening could bring for 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• BHP shares lose top dividend-payer title, what happened?
• Where will BHP shares be in 5 years?
• Is the SPDR S&P/ASX 200 Fund (STW) an ETF?
• 5 things to watch on the ASX 200 on Wednesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for some exposure to the resources sector, then the team at Morgans has got your back.

Listed below are two of the best ASX resources shares to buy now according to its analysts. Here’s what it is saying:

Santos Ltd (ASX: STO)

Morgans is bullish on this energy producer and currently has an add rating and $9.00 price target on its shares. Based on the current Santos share price, this implies potential upside of 27% over the next 12 months.

The broker sees Santos as a great option in the energy space due to its diversified earnings and robust growth profile. It explained:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

South32 Ltd (ASX: S32)

Its analysts also believe that South32 is one of the best options in the resources sector. Morgans currently has an add rating and $5.40 price target on the diversified mining company’s shares. Based on the current South32 share price, this suggests potential upside of 29% for investors.

Morgans is positive on South32 due to the successful transformation of its portfolio and its positive long term outlook. It advised:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The post Morgans says these ASX 200 resources shares have almost 30% upside appeared first on The Motley Fool Australia.

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More reading

• Oil price slides again. How are ASX 200 energy shares holding up?
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Santos share price falls despite some big news for shareholders
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 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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A number of ASX shares are now trading with low price-to-earnings (P/E) ratios, or they’ve suffered a heavy sell-off. They could be counted as cheap ASX shares.

I think they could be opportunities to make strong returns in the long run.

Not every company has dropped during this period of higher interest rates and strong inflation. Just look at the Commonwealth Bank of Australia (ASX: CBA) share price and how that has held up over 2022.

But, CBA is a huge business. How much more growth can the bank achieve?

According to the Moneysmart compound interest calculator, investing $1,500 per month and earning the long-term historical market average return of 10% per annum can grow into just over $1 million in 20 years.

I think smaller ASX shares, which seem cheap, could be an effective way to invest in the current environment and potentially enable better returns, making a possible million come quicker, though it would still take time.

However, nothing is certain in the share market, and returns can be more volatile with smaller names.

Here are 10 cheap ASX shares I believe could be opportunities:

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer has seen a big sell-off, with the Adairs share price down by 45% in 2022.

It’s planning to grow profit by opening more stores, relocating existing store locations to shops with bigger floor spaces, growing its membership base, selling Mocka furniture in stores and increasing its online sales.

Commsec numbers imply the cheap ASX share is valued at just 8x FY23’s estimated earnings with a grossed-up dividend yield of 11.7%.

Accent Group Ltd (ASX: AX1)

Accent is one of the largest shoe retailers in Australia. It owns shoe store brands like The Athlete’s Foot and Glue Store, while acting as the distributor for other brands like Skechers and Vans.

The retail business is planning to grow its store network, improve margins and potentially add more brands.

After a 27% fall of the Accent share price in 2022, it’s now valued at 14x FY23’s estimated earnings with a grossed-up dividend yield of 8%, according to Commsec.

Corporate Travel Management Ltd (ASX: CTD)

This business is one of the largest ASX travel shares, it’s also one of the world’s biggest corporate travel operators.

With COVID effects fading away, there is a strong rebound in demand for travel. Corporate Travel Management worked during COVID to become more profitable when the normal travel conditions could return. When the cheap ASX share is back to a full recovery, the business expects to demonstrate at least a 30% improvement in earnings per share (EPS) compared to FY19.

According to Commsec, the Corporate Travel Management share price is valued at just 13x FY24’s estimated earnings with a potential grossed-up dividend yield of 5.3%.

Evolution Mining Ltd (ASX: EVN)

Evolution Mining is one of the largest gold miners on the ASX, though the Evolution Mining share price is 26% lower than it was a year ago.

Amid a collapse of cryptocurrency prices and uncertainty with the companies involved in the industry, the gold price has jumped over the last month. This could help the miner’s earnings in the medium term.

It’s priced at 12x FY24’s estimated earnings with a potential FY24 grossed-up dividend yield of 4%.

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) gives investors exposure to a portfolio of companies involved in cybersecurity.

There is an increasing amount of data, information and retailing online, so it’s integral for organisations to stay protected, and this could be a strong tailwind for the underlying businesses. Each successful cyber attack could encourage every company in that industry to tighten up its defences. For example, Optus was recently the target of an attack.

The global cybersecurity market is expected to grow from $223.7 billion in 2022 to $478.7 billion in 2030, according to Statista and Strategic Market Research.

The Betashares Global Cybersecurity ETF unit price is 25% cheaper than it was at the start of the year.

Mineral Resources Limited (ASX: MIN)

Mineral Resources has sometimes been called the cheapest ASX lithium share. It has mining services, iron ore, and lithium operations.

It’s working on increasing its production capacity for both iron ore and lithium, which could improve its profitability. The business is also looking at becoming involved with more of the lithium value chain.

According to Commsec, it’s valued at 7x FY24’s estimated earnings with a projected grossed-up dividend yield of 7%.

Shaver Shop Group Ltd (ASX: SSG)

This company sells premium products in DIY grooming, personal care, and hair and beauty appliances for men and women. Exclusive products make up more than half of sales and 60% of gross profit.

According to Shaver Shop, the Australia-New Zealand beauty and personal care market is expected to grow from approximately $10 billion to around $12 billion by 2026. It’s hoping to grow its number of stores and increase online sales over time.

Commsec numbers suggest the Shaver share price is valued at under 9x FY23’s estimated earnings with a projected grossed-up dividend yield of 13%.

Temple & Webster Group Ltd (ASX: TPW)

This company is a leader in retailing furniture and homewares. Both third-party suppliers and private brand products are sold through the website. A drop ship model by the suppliers means quicker delivery, and the cheap ASX share doesn’t need to hold as much inventory.

It’s investing in technology and efficiencies so that it can provide a better online shopping service for customers. For example, an augmented reality service allows shoppers to ‘see’ the product in their room. Management thinks the company will return to double-digit revenue growth during FY23.

In my opinion, it looks a lot cheaper after a 58% fall in the Temple & Webster share price in 2022.

Universal Store Holdings Ltd (ASX: UNI)

This business operates the Universal Store and THRILLS brands that are focused on younger shoppers.

The first 21 weeks of FY23 have seen total Universal Store sales climb by 40.2%. It’s planning to continue to open new stores, while also benefiting from a gross profit margin improvement. The cheap ASX share will continue to invest in the productivity and technology of its business too.

According to Commsec, the Universal Store share price is valued at under 12x FY23’s estimated earnings with a projected grossed-up dividend yield of almost 8%.

Webjet Limited (ASX: WEB)

Webjet is a leading ASX travel share. Not only does it have its online travel agency business, but it also has its business-to-business segment called WebBeds.

As travel rebounds, the company is hoping to reach a much higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin compared to pre-COVID times. It has invested in technology to become more efficient.

The Webjet share price is now valued at 20x FY24’s estimated earnings, according to Commsec.

The post I’d aim for $1 million, buying just 10 cheap ASX shares appeared first on The Motley Fool Australia.

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More reading

• ‘Really exciting’: Experts name 2 ASX mining shares ready to take off
• Here are the top 10 ASX 200 shares today
• Why Air New Zealand, Chalice, Evolution, and Origin shares are rising today
• ‘Lithium investment is really just beginning’: KPMG
• Gold and TV: Check out the 2 ASX shares this expert just bought

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 Adairs, BetaShares Global Cybersecurity ETF, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Adairs and BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Accent Group, Corporate Travel Management, Temple & Webster Group, and Webjet. 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 Winsome Resources Ltd (ASX: WR1) share price closed at an all-time high of $1.50 yesterday.

The ASX lithium share has exploded over the past two months, rising 320% from 35.5 cents on 10 October.

What’s up with Winsome (besides the share price)?

Winsome Resources is a lithium explorer working in the James Bay region of Quebec in Canada.

The latest news from the company came last Friday when it announced an acquisition.

As my Fool colleague Monica reports, Winsome is buying a stake in Canadian company Power Metals Corp (TSX-V: PWM), which owns the “highly prospective” Case Lake Project in Ontario, Canada.

The CA$2 million (A$2.211 million) deal entails Winsome purchasing Power Metals shares that are currently owned by Hong Kong-based company, Sinomine Rare Metals Resources Co Ltd.

Sinomine Rare Metals is a subsidiary of the Chinese company Sinomine Resource Group Co Ltd (SHE: 002738). Recent changes to Canadian law mean Sinomine has to sell.

Winsome also gets all of Sinomine’s offtake rights.

Winsome says the project contains high-grade deposits of lithium, tantalum, and cesium. All three are on the latest critical minerals lists of the United States and Canada.

The best-performing ASX lithium share last month

Winsome’s shares soared by 134% in November, outperforming every other ASX mining share.

In mid-November, Winsome announced a $6.8 million capital raising to expand its exploration
programs at the Cancet and Adina lithium projects.

This followed drilling results at Cancet that “exceeded expectations” and “exceptional high-grade lithium assay results” at Adina.

The company lodged a new investor presentation with the ASX on 4 November.

In its quarterly cash flow and activities report released on 27 October, Winsome reported it has spent $6 million of the $18 million in funds allocated under its prospectus as of 30 September.

The ASX lithium share debuted on the ASX on 30 November last year. Its initial public offering (IPO) price was 20 cents. That means the stock has rocketed 650% in its first 12 months on the ASX.

The post Winsome, win some more! The ASX lithium share up 320% in 2 months appeared first on The Motley Fool Australia.

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• The ASX 200 gained 6% in November. Here’s how these 3 ASX mining shares smashed those returns
• 3 ASX mining shares that soared more than 20% today
• Why has ASX lithium share Winsome Resources rocketed 220% in a month?
• Up 140% in a month, why has ASX lithium share Winsome Resources just been halted?

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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In a pretty terrible year for other sectors, ASX mining shares really have carried the overall market.

But now that so many resources stocks have elevated prices, investors need to be selective about which of these notoriously cyclical equities to buy going into 2023.

Two minerals that many experts still seem to be bullish on are lithium and gold.

Lithium is a valuable ingredient of high-powered batteries, which are essential for a carbon-neutral future.

And gold is valued as a safe haven investment asset as well as for its use as electrical connectors in computers.

Wilson Asset Management analysts this week mentioned two ASX mining shares involved in exactly those resources that they would buy right now: 

Keep an eye on these lithium deposits

Equities dealer Will Thompson is a big fan of Global Lithium Resources Ltd (ASX: GL1) at the moment.

“I previously said that we’d rather be exposed to the producers in this high-price environment,” he said in a WAM video.

“However, we really like the assets that they’ve got.”

He added that it’s a bonus that a big producer and “a great capital allocator” like Mineral Resources Limited (ASX: MIN) is a major shareholder in Global Lithium.

“We’re really excited to see the results they’re going to have in the back half of this year into next year,” said Thompson.

“They’ll have a resource update and some drilling updates, so it’s a buy.”

Global Lithium shares have roughly doubled in value since the start of the year.

‘One of the most significant discoveries in recent times’

Senior equities dealer Cooper Rogers likes the look of gold digger Predictive Discovery Ltd (ASX: PDI).

“PDI is a gold company based in West Africa,” he said.

“It has stumbled on one of the most significant discoveries in recent times over there. It’s got a 4.2 million ounce resource of gold.”

Predictive Discovery is not resting on its laurels though, as it continues to drill.

“It’s hit gold intercepts 225m and 375m below its current optimised pitch shell, meaning this deposit could keep going down a lot further,” said Rogers.

“We think it’s really exciting.”

Rogers is a fan of the management running the ASX mining share.

“It’s got $50 million in the bank and it’s going to continue aggressively drilling while carrying out its scoping activities,” he said.

“So PDI’s a buy for us.”

The Predictive share price is down 22% for the year but has rocketed 40% up since the end of October.

The post ‘Really exciting’: Experts name 2 ASX mining shares ready to take off appeared first on The Motley Fool Australia.

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More reading

• ‘Lithium investment is really just beginning’: KPMG
• Gold and lithium: Mining expert names 2 ASX shares that could explode
• This ASX lithium share is 10% owned by Mineral Resources. Is it a buy?
• Can ASX 200 lithium shares come charging back in December?
• 2 ASX lithium shares smashing all-time highs on Monday

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.

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With so many dividend shares to choose from, it can be hard to decide which ones to buy.

The good news is that analysts have been busy running the rule over the share market, looking for the dividend shares to buy.

Two that could boost your passive income are listed below. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage is the owner and operator of one of Australia and New Zealand’s largest self-storage networks. It could be a top option due to its robust business model, defensive qualities, and solid growth prospects from to its growth through acquisition strategy.

Based on the current National Storage share price of $2.34, analysts at Jarden are expecting the company’s shares to offer investors ~4% distribution yields over the next couple of years. The broker also sees upside for the National Storage share price with its buy rating and $2.90 price target.

Rural Funds Group (ASX: RFF)

Rural Funds could be another top option for income investors. It is an agriculture-focused real estate property trust that owns a diverse portfolio of properties across different geographies and sectors.

With Australia quickly becoming the food bowl of Asia, it appears well-positioned to benefit over the long-term. Another positive is that its properties boast long-term tenancy agreements with major players and include periodic rental increases.

Bell Potter is a fan of the company and notes that its shares are trading at what could “be considered an attractive entry point.” It has a buy rating and $2.75 price target on its shares.

As for dividends, Bell Potter is forecasting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.44, this represents yields of 4.8% and 5.2%, respectively.

The post Boost your passive income with these ASX dividend shares: analysts appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares that have raised their payouts by 20% in 5 years
• 2 safe and reliable ASX dividend shares to buy for 2023: analysts
• Here’s how I’d invest $5,000 in ASX dividend shares to earn a second income
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds 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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When you’re focused on researching, buying and selling ASX shares, it’s easy to forget that there’s a whole vast world outside of this big brown land.

For example, just the United States of America has 330 million people. That means there could be 13 Australias and there would still be more Americans on the globe!

So it’s an exciting prospect when a local business starts expanding overseas.

Sure, there are many risks. But if the product or service was compelling enough to get Australians to spend, there is no reason why those ASX companies can’t do the same in a bigger pond.

Recently analysts at Wilson Asset Management named two ASX shares to buy that might just take off with international growth:

Revenue will impress in 2023

Wilson senior equities dealer Cooper Rogers rates Johns Lyng Group Ltd (ASX: JLG) as a buy at the moment.

The business takes on repair work commissioned by insurance companies. That industry has seen an increase in claims in recent times arising from extreme weather events.

“While we never like to celebrate catastrophic events, it’s definitely an opportunity for Johns Lyng Group,” he said in a WAM video.

“They recently acquired Reconstruction Experts in the US.”

The American arm will be operated out of Florida, and Rogers reckons the expansion “is a great opportunity”.

“It’s also no secret that cat [catastrophic] events are also contributing to the revenue line for JLG in Australia,” he said.

“We think the cat revenue is going to impress in FY2023.”

Investment in the US expansion will be required in the current financial year, but Rogers expects revenues from that division will start flowing in during FY2024.

“So JLG is a buy for us.”

The Johns Lyng share price is down more than 21% year to date.

Kiwi takes flight

Tourism Holdings Ltd (ASX: THL) is a New Zealand company that only this month listed on the ASX after a merger with Apollo Tourism & Leisure Ltd (ASX: ATL).

Wilson senior equity analyst Shaun Weick urged investors to “get out there and get amongst it”.

“Tourism Holdings is a buy for us,” he said.

“They’re the largest RV [recreational vehicle] operator across Australia and New Zealand following the recent regulatory approval of the merger.”

Despite rising interest rates, Weick’s team reckons both domestic and international tourism demand will remain strong over the next 12 or 18 months.

“You look at the combination of the softer Australian dollar and the ongoing shift we believe will occur from goods towards services, we think this business can generate over $80 million profit after tax.”

And what’s more, the share price seems to be a bargain.

“It’s trading on a sub-10 times PE,” said Weick.

“The balance sheet‘s in great shape, great management team. We see expansion into North America as a medium-term opportunity for these guys.” 

The post 2 ASX companies about to explode in the US market: experts appeared first on The Motley Fool Australia.

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More reading

• Global warming play: Expert reveals the ASX share he’d stash for next 4 years
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng 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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