Category: Stock Market

There are plenty of passive income options on the Australian share market to choose from. Two top ASX 200 dividend shares that brokers rate highly are listed below.

Here’s why they have been named as buys:

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs believes that this drinks company could be a quality option for investors right now. Its analysts currently have a buy rating and $7.80 price target on the company’s shares.

The broker likes the company due to its industry-leading position and attractive valuation. It commented:

Xmas trading has been strong as evidenced by liquor retail sales acceleration and pubs growth feedback from peers is accelerating into Jan 2023. Our sensitivity analysis suggests the risk of cashless gaming is already largely priced in. […] EDV now trades at 19.7x FY24 P/E vs historical average of 24.3x and is value entry point for a high quality industry leader.

As for dividends, the broker is forecasting fully franked dividend of approximately 21.4 cents per share in FY 2023 and 24 cents per share in FY 2024. Based on the current Endeavour share price of $6.62, this equates to yields of 3.2% and 3.6%, respectively.

Telstra Group Ltd (ASX: TLS)

Analysts at Morgans believe that Telstra could be a quality dividend share to buy. The broker is a fan of the telco giant and has a buy rating and $4.65 price target on its shares.

Morgans likes Telstra due to its successful turnaround, positive outlook, and valuation. In respect to the latter, the broker feels Telstra’s assets are worth more than the market is pricing in. It said:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote on Telstra’s legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders.

As for dividends, the broker is forecasting fully franked dividends per share of 16.5 cents in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.15, this will mean yields of 4%.

The post Buy these ASX 200 shares for a passive income boost: analysts appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why TPG and Telstra shares could get a big profit boost in 2023
• Leading brokers name 3 ASX shares to buy today
• Here’s the Telstra dividend forecast through to 2025
• 2 ASX 200 shares to buy even as the world slips into recession

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

from The Motley Fool Australia https://ift.tt/k36jPwC

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 7,501.7 points.

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

ASX 200 expected to fall

The Australian share market may fall on Thursday following a wild night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. In late trade in the United States, the Dow Jones is down 0.45%, the S&P 500 has risen 0.3%, and the NASDAQ is up 0.8%. US stocks were deep in the red at one stage.

US Fed raises rates

The US Federal Reserve has raised its benchmark interest rate by a quarter percentage point and given no indication that it is near to the end of this hiking cycle. This took its interest rate to a target range of 4.5% to 4.75%. While the hike was not unexpected, the market was looking for hints that the cycle could soon be over. US stocks plunged on the news but have now started to rebound.

Oil prices tumble

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices tumbled on Wednesday night. According to Bloomberg, the WTI crude oil price is down 2.8% to US$76.68 a barrel and the Brent crude oil price is down 2.8% to US$83.09 a barrel. This was driven by U.S. government data showing a big build in crude oil, gasoline and distillate inventories.

QBE named as a buy

The QBE Insurance Group Ltd (ASX: QBE) share price could be great value according to Goldman Sachs. This morning the broker has retained its buy rating and $16.67 price target on the insurance giant’s shares. This follows the release of a quarterly update from rival Chubb in the United States. It said: “Our US analyst views the result as favourable driven by better-than-expected core underwriting result ex crop and particularly in commercial lines.”

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.25% to US$1,940.4 an ounce. The precious metal softened after the US dollar strengthened.

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

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

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

More reading

• Bears beware! ASX 200 recoups all of 2022’s losses plus more in January
• Investing in ASX 200 gold shares? Here’s what to expect from the yellow metal in 2023
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX shares investors rejoice! RBA says inflation has now peaked
• Should I buy Qantas shares before the company’s ASX earnings update?

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.

from The Motley Fool Australia https://ift.tt/EqmKb2L

Are you…

A) Contemplating retirement and worrying about whether you’ll have enough income to live on?

B) Keen to help offset the soaring cost of living without having to work longer hours?

C) Hoping to benefit from franking credits like countless other Aussies have been doing over the past 30+ years?

D) Disillusioned by the interest rate your bank is offering in exchange for locking up your hard-earned cash? 

E) Not really sure but just love the idea of getting paid for doing not much of anything?

If you answered yes to any of the above, you may be in the market for some ASX dividend shares. These types of stocks regularly divvy out a portion of their profits to their owners — the shareholders! And, with any luck (as well as top-notch management!), will also deliver share price gains over the long term as well.

But the ASX is awash with dividend shares so the decision on what to buy can be daunting.

For their thoughts, we asked our Foolish writers which income-paying stocks they are loving the look of right now. Here is what they said:      

6 best ASX dividend shares for February 2023 (smallest to largest)

• Best & Less Group Holdings Ltd (ASX: BST), $238.82 million
• Nick Scali Limited (ASX: NCK), $967.95 million
• Transurban Group (ASX: TCL), $42.47 billion
• Rio Tinto Ltd (ASX: RIO), $47.01 billion
• ANZ Group Holdings Ltd (ASX: ANZ), $75.35 billion
• Commonwealth Bank of Australia (ASX: CBA), $185.83 billion

(Market capitalisation as of 1 February 2023)

Why our Foolish writers love these ASX passive-income stocks

Best & Less Group Holdings Ltd

What it does: Best & Less describes itself as a value apparel specialty retailer with around 250 stores and an e-commerce offering. It wants to be the number one choice for families buying baby and kids’ value apparel in Australia and New Zealand through Best & Less in Australia and Postie in New Zealand.

By Tristan Harrison: The Best & Less share price is down around 50% since the start of February 2022. This has had the effect of boosting the company’s possible payout ratio.

Commsec numbers suggest this ASX All Ords share could pay an annual dividend per share of 23.5 cents in FY24, translating into a FY24 grossed-up dividend yield percentage in the mid-teens.

While FY23 may be tricky for profitability, I think FY24 could be positive, particularly as Best & Less adds to its store network. Six new stores are scheduled for opening in the second half of FY23, and the company is also refurbishing some existing stores. It is committed to paying a dividend of 60% to 80% of net profit.

Motley Fool contributor Tristan Harrison does not own shares in Best & Less Group Holdings Ltd.

Nick Scali Limited

What it does: Nick Scali is a furniture retailer and owner of an eponymous brand as well as the Plush – Think Sofas brand. It has more than 100 stores across Australia and New Zealand as well as a successful e-commerce platform.

By Bronwyn Allen: The Nick Scali share price has had a great start to 2023, with a 15% gain already, so I reckon value investors are already onto this one. Despite this, I believe the trailing gross dividend yield is still very attractive at 8.3%.

Sales are increasing, partly due to the company’s first major acquisition — the purchase of Plush in November 2021, with integration largely completed at the end of FY22.

I’m excited to see the FY23 first-half (1H FY23) numbers due out next Monday (6 February) to get a better picture of how Plush is growing the company’s earnings. Nick Scali has guided a 57% to 66% increase in net profit after tax (NPAT) in 1H FY23 compared to 1H FY22.

Motley Fool contributor Bronwyn Allen owns shares in Nick Scali Limited. 

Transurban Group

What it does: Transurban is a large-scale operator of tolled roads. It has a near monopoly on Sydney’s toll roads but also owns roads in other capital cities, as well as in North America.

By Sebastian Bowen: Transurban’s reputation as one of the ASX 200’s safest dividend shares was trashed during the pandemic years. But the company has bounced back steadily ever since the dark days of 2020.

What I believe makes Transurban such an attractive dividend share is its resistance to inflation.

Most of Transurban’s toll roads are contractually permitted to increase their tolls in line with inflation, protecting the company’s earnings base from erosion.

As such, I think this is a useful company to have in any income portfolio – especially with its dividend yield closing in on 4% at recent pricing.

Motley Fool contributor Sebastian Bowen does not own shares in Transurban Group.

Rio Tinto Ltd

What it does: Rio Tinto is one of the globe’s largest miners with a portfolio of world-class operations across a range of commodities.

By James Mickleboro: I think Rio Tinto could be a top option for ASX income investors in February. That’s because China’s reopening looks set to support robust demand for copper and iron ore, which bodes well for commodity prices.

In fact, as things stand, Rio Tinto is generating significant free cash flow, which is expected to underpin some big dividends in the near term.

Goldman Sachs, for example, is currently forecasting fully-franked dividends per share of US$4.40 (A$6.25) in FY 2023 and US$5.70 (A$8.10) in FY 2024. This equates to yields of 4.9% and 6.35%, respectively, at the time of writing.

Goldman has a buy rating and a $134.40 price target on the mining giant’s shares.

Motley Fool contributor James Mickleboro does not own shares in Rio Tinto Ltd.

ANZ Group Holdings Ltd

What it does: The ANZ we know and, arguably, love was born more than 50 years ago and is now one of Australia’s ‘big four’ ASX 200 banks. Nowadays, it provides banking and financial services to millions of retail and business customers across 32 markets.

By Brooke Cooper: ANZ is both the highest-yielding and cheapest of the big four banks on a price-to-earnings (P/E) ratio basis. It currently boasts a 5.9% dividend yield and a P/E ratio of 10.65, according to CommSec data.

I also like the company’s proposed acquisition of Suncorp Group Ltd (ASX: SUN)’s banking division – set to bring greater exposure to the Queensland market. The sunshine state was crowned Australia’s best-performing economy by CommSec’s latest State of the States report.

Finally, ANZ is favoured by both Macquarie and Citi. They each have an equivalent buy rating on the stock, while the latter has given it a $29.25 price target and expects the bank to grow its dividends in the future.

Motley Fool contributor Brooke Cooper does not own shares in ANZ Group Holdings Ltd or Suncorp Group Ltd.

Commonwealth Bank of Australia

What it does: CBA provides a range of financial services including retail and business banking, funds management, superannuation, insurance, and broking services. With a market cap of some $185 billion, it’s Australia’s largest bank and the second-biggest stock trading on the ASX.

By Bernd Struben: CBA is well-respected as a long-term, reliable dividend stock.

The bank has delivered two fully franked dividends per year for well over a decade, including during the pandemic-addled 2020 market turmoil.

CommBank also offers a dividend reinvestment plan (DRP).

At the current share price, CBA pays a 3.6% trailing dividend yield, having paid out $3.85 per share in 2022. But that could well grow.

Morgan Stanley is forecasting the CBA dividend to increase the most of any of the big four banks this year to $4.50 per share, up 17% year on year.

The CBA share price has also been a strong performer, gaining almost 9% so far in 2023 and around 17.2% over the past 12 months.

Motley Fool contributor Bernd Struben does not own shares in Commonwealth Bank of Australia. 

The post Top ASX dividend shares to buy in February 2023 appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 ASX 200 shares smashing new 52-week highs on Wednesday
• ASX shares investors rejoice! RBA says inflation has now peaked
• The Rio Tinto share price just hit a new 52-week high! Here’s why
• Buy these ASX passive income shares now: experts
• Top ASX shares to buy in February 2023

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

from The Motley Fool Australia https://ift.tt/eC9zXyc

If you’re wanting to add some exposure to global markets to your portfolio, then an easy way to do it would be through exchange traded funds (ETFs).

Rather than having to open up an international brokerage account, ETFs can be bought in the same way that you would buy shares in ASX listed companies.

With that in mind, listed below are two top ETFs that allow investors to buy a large collection of international shares in one fell swoop.

Here’s what you need to know about them:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ETF for investing globally is the Vanguard MSCI Index International Shares ETF.

This popular ETF gives investors access to almost 1,500 of the world’s largest listed companies from 23 major developed countries including the U.S, Japan, U.K, Canada, France, and Switzerland.

The fund manager notes that the ETF offers greater access to sectors such as technology and health care that aren’t as well represented in the Australian share market.

Among the global giants you’ll be buying with this fund are Apple, HSBC, LVMH Moet Hennessy Louis Vuitton, Nestle, Procter & Gamble, Roche, Royal Bank of Canada, Shell, and Visa.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Another ETF for investors to look at for international exposure is the Vanguard Australian US Total Market Shares Index ETF.

As you might have guessed from its name, this low-cost ETF provides investors with access to some of the largest companies listed in the United States.

Vanguard believes it could be a top option for buy and hold investors. Particularly those that are seeking long-term capital growth, some income, and international diversification.

Among the companies included in the ETF are household names such as Amazon, Boeing, JP Morgan, Starbucks, and Walmart.

The post 2 globetrotting ASX ETFs for investors to buy in February appeared first on The Motley Fool Australia.

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

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

More reading

• The Vanguard MSCI Index International Shares ETF lagged the market in January. Here’s why?
• 3 popular ETFs that could be top picks right now
• 3 highly rated ETFs for ASX investors to buy right now
• Forget gold, I’m using the Warren Buffett method to try and get rich!
• 3 fantastic ETFs for ASX investors to buy this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

If you’re looking for dividend shares to buy, then the two listed below could be worth a look.

Both have been named as buys by experts recently. Here’s why they are bullish on them:

Macquarie Group Ltd (ASX: MQG)

The first ASX dividend share that could be in the buy zone is this investment bank.

The team at Morgans is positive on Macquarie due to its exposure to long term structural tailwinds. It explained:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

Morgans has an add rating and $214.33 price target on the company’s shares.

In respect to dividends, the broker is expecting partially franked dividends of $7.05 per share in FY 2023 and $7.36 per share in FY 2024. Based on the current Macquarie share price of $187.00, this will mean yields of 3.8% and 3.9%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share to consider is this youth fashion retailer.

Goldman Sachs is a fan of Universal Store and has just named it as a key pick. The broker is positive due to the company’s exposure to younger consumers, which it expects to continue spending in 2023.

It also believes that a recent update from an industry peer is supportive of its bullish view on Universal Store. It commented:

UNI a key pick into 1H23 results: the positive demand backdrop reported by AX1 gives us incremental confidence in the youth consumer discretionary category during the key holiday promotional period. Our monitoring of promotions and web traffic suggests UNI is performing in-line with our expectations and showing discipline with discounting.

Goldman Sachs has a buy rating and $7.55 price target on its shares.

As for dividends, the broker is expecting fully franked dividends of 26.1 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.71, this equates to yields of 4.6% and 5.2%, respectively.

The post Experts say these ASX dividend shares are top buys right now appeared first on The Motley Fool Australia.

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

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

More reading

• Top brokers name 3 ASX shares to buy next week
• $20,000 invested in these ASX shares 10 years ago is worth how much now?
• Morgans names 8 ASX retail shares to buy
• Buy Macquarie and this ASX 200 dividend share: analysts
• Goldman Sachs names 2 ASX dividend shares to buy now

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

from The Motley Fool Australia https://ift.tt/5twrk3T

The Lynas Rare Earths Ltd (ASX: LYC) share price went on a very strong run in January, rising by around 20%. The S&P/ASX 200 Index (ASX: XJO) climbed by 6%.

Lynas released its quarterly update on 30 January 2022, which included a number of interesting updates.

So, while investors may have liked that update for the three months to 31 December 2022, it may not have provided the fuel for a lot of recovery in the future.

We’ll have a look at the update in a moment, but let’s consider what happened in the wider market which could have impacted the Lynas share price last month.

Growth gets a boost

A number of ASX growth shares saw a pleasing rise over January as they recovered some of the lost ground from 2022.

For example, the Xero Limited (ASX: XRO) share price went up 9%, the Block Inc (ASX: SQ2) share price rose over 20%, and the Lovisa Holdings Ltd (ASX: LOV) share price climbed 13%.

It was also a good month for ASX mining shares, for example, the BHP Group Ltd (ASX: BHP) share price climbed by 8% and the South32 Ltd (ASX: S32) share price rose by 13.5%.

January saw a strong start to the year for commodity businesses as well. So, Lynas seems to have benefited from the recovery in investor sentiment for both growth shares and mining shares.

Lynas quarterly update

The business reported quarterly sales revenue of $232.7 million in the three months to December 2022, compared to $163.8 million in the first quarter of FY23 and $202.7 million in the second quarter of FY22. This is helpful for the Lynas share price.

Total rare earth production was up 6% year over year, and up 27% quarter over quarter.

Lynas explained that these numbers were up after water supply disruptions in the prior quarter.

It also said that “market prices started to increase again from December in anticipation of the late January Lunar New Year holidays and an expected rebound of the consumption in China”, though future pricing trends “will depend on China’s economic recovery”.

Lynas also revealed that progress on major construction activities accelerated at the Kalgoorlie rare earths processing facility in the quarter, while the Mt Weld expansion project is “progressing as planned”.

It continues to “progress its deliverables” for the development of a US rare earths separation facility.

Foolish takeaway

After the rare earth miner’s rise, analysts are now mixed on the Lynas share price. Of the analyst opinions that Commsec collects, there are four buy ratings, three hold ratings, and three sell ratings.

The post Why did the Lynas share price rocket 20% in January? appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Why is the Arafura share price surging 12% to an 11-year high?
• Why was the Lynas share price hit so hard on Tuesday?
• Here are the top 10 ASX 200 shares today
• Why Block, Core Lithium, Lynas, and Xero shares are charging higher today

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

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

Well, it has been a stunning start to the year for ASX shares, no way around it. Since the beginning of January, the S&P/ASX 200 Index (ASX: XJO) has gone from 7,038.7 points to the 7,476.7 points it ended the month at.

For what it’s worth, the ASX 200 has climbed even higher on this first day of February, hitting 7,537.7 points during the course of the trading day today.

Going from 7,038.7 points to 7,476.7 points represents a gain of 6.2% for the ASX 200. For some context, the average annual return (not monthly return) of an ASX 200 index fund like the SPDR S&P/ASX 200 Fund (ASX: STW) over the past 20 years or so is 7.74%.

So this is truly a stellar start to the year for ASX shares. Hopefully, you have seen some of these gains in your own portfolio.

ASX 200 returns in 2023 defy the odds

Backtrack just a month or two, and this would have been hard to foresee. At the end of 2022, all we seemed to hear was that 2023 would inevitably bring a recession.

Central banks around the world were continuing to lift interest rates amid high inflation, and the phrase ‘hard landing’ (referring to rising rates crashing the economy) was everywhere you looked.

It just goes to show that investing bears are more often wrong than they are right.

If an investor had listened to the market commentators warning of a rough 2023 and sold out of their shares ‘before the crash’, they would probably be feeling a little silly right now.

Now, we are only one month into the year. There are still 11 to go, and we might indeed see a recession or a bear market in 2023. Today could be the peak of 2023’s ASX 200 heights for all I or anyone else knows.

Our chief investment officer Scott Phillips shared a similar sentiment last month. Here’s some of what Scott said:

Can you imagine being the poor bastards who sold out at the end of last year because 2023 was going to be terrible? How do you reckon they feel now?

Again, they might still be right in 50 weeks’ time. But remember, the long term trajectory of the market is ‘up and to the right’, even if that journey is a bumpy one.

Stop trying to time the market. And stop listening to predictions. Please.

How to invest in 2023

But here’s what we do know. ASX shares go up far more than they go down. And if an investor sticks it out, through thick and thin, they are more likely to see the positive results that investing in shares brings.

Every year, ETF provider Vanguard releases an index chart. The latest version came out in August last year.

This chart tracks the returns of ASX shares, international shares and other assets over a 30-year timeframe. What it consistently shows is that shares, while perenially volatile, never fail to exceed previous all-time highs.

That’s despite wars, recessions, rising interest rates, falling interest rates, global geopolitical struggles and whatever other maladies you can think of. It also shows that shares, both ASX and US, consistently deliver better returns over long periods of time than all other assets.

Indeed, the chart shows that $10,000 invested in ASX shares in 1992 would have grown to $131,000 by 2022.

Like a broken clock, bears are occasionally right in their doom and gloom predictions. But that’s 131,000 reasons to just ignore the naysayers and keep on investing.

The post Bears beware! ASX 200 recoups all of 2022’s losses plus more in January appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX shares investors rejoice! RBA says inflation has now peaked
• Should I buy Qantas shares before the company’s ASX earnings update?
• Guess which ASX 200 share dropped then popped on a 30% profit dive
• Up 30% in 4 months! ASX 200 gold share Newcrest is still trading cheap: fundie

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The S&P/ASX 200 Index (ASX: XJO) shot to a nine-month high of 7,537.7 points today. However, by the time the market closed it was sitting at 7,501.7 points – marking a 0.33% gain.

And leading the way was the S&P/ASX 200 Real Estate Index (ASX: XRE). It rose 1.4% today.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) lifted 0.7% as the iron ore price hit a seven-month high of US$123.37 a tonne.

The S&P/ASX 200 Health Care Index (ASX: XHJ) also gained, jumping 0.6%.

But the S&P/ASX 200 Energy Index (ASX: XEJ) didn’t get in on the upwards swing. It slipped 1.2% despite a mixed night for oil prices. Brent crude oil fell 0.5% overnight to US$84.49 a barrel while US Nymex crude oil rose 1.2% to US$78.87 a barrel.

So, with all that in mind, take a stab at which ASX 200 share might have outperformed all others on Wednesday.

Top 10 ASX 200 shares today

If you guessed Flight Centre Travel Group Ltd (ASX: FLT), congratulations!

Shares in the travel agent took off today, lifting 8.1% to close at $17.11 after completing a $180 million placement, the proceeds of which will go towards buying luxury travel brand Scott Dunn.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Flight Centre Travel Group Ltd (ASX: FLT)	$17.11	8.09%
James Hardie Industries plc (ASX: JHX)	$32.80	4.29%
Imugene Limited (ASX: IMU)	$0.14	3.7%
Sandfire Resources Ltd (ASX: SFR)	$6.48	3.68%
Alumina Limited (ASX: AWC)	$1.62	3.51%
Lottery Corporation Ltd (ASX: TLC)	$4.86	3.4%
Lynas Rare Earths Ltd (ASX: LYC)	$9.70	3.3%
Champion Iron Ltd (ASX: CIA)	$7.38	3.22%
Nickel Industries Ltd (ASX: NIC)	$1.13	3.2%
Stockland Corporation Ltd (ASX: SGP)	$4.04	2.8%

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.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Argosy Minerals, Credit Corp, Flight Centre, and Mesoblast shares are racing higher
• Why is the Arafura share price surging 12% to an 11-year high?
• Flight Centre share price rockets 15% as ASX 200 travel stock resumes trading
• The ASX 200 is still full of cheap shares despite this year’s surge and I’m ready to buy more
• Top ASX shares to buy in February 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/E53tDsO

If you’re looking for exposure to the banking sector, then Westpac Banking Corp (ASX: WBC) shares could be the way to do it.

That’s the view of analysts at Morgans, which have named the banking giant on its best ideas list for February.

Morgans’ best ideas are those that it believes offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence.

Why Westpac shares?

Morgans is positive on Westpac due to its belief that Australia’s oldest bank has the potential to deliver big return on equity improvements. It also highlights its attractive fully franked dividends. The broker explained:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Morgans currently has an add rating and $25.80 price target on Westpac’s shares. Which, based on its current share price, implies a potential return of 9.5% for investors over the next 12 months.

But of course, the returns don’t stop there. Westpac is a big favourite of income investors because it tends to provide a generous dividend yield.

Pleasingly, FY 2023 will be no exception according to Morgans. Its analysts are forecasting a $1.53 per share fully franked dividend this financial year. This equates to a pretty tasty 6.5% dividend yield at current levels.

Combined, this suggests that Westpac’s shares could provide investors with a total return of 16% between now and this time next year.

The post Westpac shares are ‘attractive for income-oriented investors’: analyst appeared first on The Motley Fool Australia.

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

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

More reading

• Investing in ASX 200 bank shares? Here’s the dividend outlook for 2023
• Forget gold! ASX 200 blue-chip shares could be the new safe-haven asset
• 5 things to watch on the ASX 200 on Wednesday
• Everything you need to know about Wednesday’s Australian inflation data release
• How much profit could Westpac shares make in 2023?

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

from The Motley Fool Australia https://ift.tt/0anRDwd

The All Ordinaries (ASX: XAO) is having a positive day. In afternoon trade, the index is up 0.3% to 7,708.5 points. This leaves it trading approximately 3% away from its 52-week high.

Three ASX All Ordinaries shares that have already reached that milestone during today’s session are listed below. Here’s why they are hitting new highs today:

Accent Group Ltd (ASX: AX1)

The Accent share price climbed to a new 52-week high of $2.27 on Wednesday. Investors have been scrambling to buy this footwear and fashion retailer’s shares in recent weeks thanks partly to a strong trading update. So much so, the Accent share price is now up a sizeable 35% since the start of the year. That update revealed that total sales for the first half were up 33% over the prior corresponding period to $825 million. This is expected to lead to half year earnings before interest and tax (EBIT) in the range of $90 million to $92 million, up from $30.3 million a year earlier.

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price has hit a new 52-week high of 63.7 cents today. While there has been no news out of the rare earths developer today, its shares have been on fire since early November. This has been driven by a combination of good progress at the company’s Nolans project, the positive outlook for rare earths demand, and investments from key backers in the mining space. The latter includes Gina Rinehart’s Hancock Prospecting business taking part in a recent capital raising.

Emerald Resources NL (ASX: EMR)

The Emerald Resources share price has hit a 52-week high of $1.45. Last month, Emerald revealed that it achieved record production of 29,640 ounces of gold during the December quarter. This comes at a time when the gold price is particularly strong, which bodes well for the gold miner’s earnings in the first half.

The post 3 ASX All Ordinaries stocks hitting new 52-week highs today appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Arafura share price surging 12% to an 11-year high?
• 7%+ dividend yield! I’d buy this ASX 300 share for passive income in 2023
• Brokers name 3 ASX shares to buy now
• Why Accent, Mineral Resources, Newcrest, and Whitehaven Coal shares are dropping
• Why Accent, Iluka, Myer, and QBE shares are charging higher 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/sQGTP09