Category: Stock Market

The ASX share market has been through a lot over the past three years. But the present time could be a rare opportunity to buy ASX dividend shares whilst they offer excellent dividend yields. Of course, this has the potential to significantly grow our passive income.

Interest rates have shot higher to try to tame inflation and dampen what’s seen as excessive demand in the economy.

Yesterday, the Reserve Bank of Australia (RBA) decided to increase the official cash rate by another 25 basis points (0.25%) to 3.35%.

In theory, a higher interest rate should push down asset prices. So, the decline we’ve seen with some assets is probably justified.

So, not only do shares become cheaper than they used to be, but investors get the opportunity to boost their passive incomes.

That’s because when share prices fall, it has the effect of increasing dividend yields.

Passive income boosted by higher dividend income

Here’s an example. If a company had a dividend yield of 5%, investing $1,000 into that ASX share would achieve $50 of annual passive income.

If the share market turns into a bear market, sending that share price 10% lower, the dividend yield would translate into a 5.5% dividend yield. Investing $1,000 would achieve $55 of annual income. Certainly, an extra 0.5% return each year can add up over the years.

Of course, dealing with bigger sums would make a bigger difference. Investing $1 million with that extra 0.5% would be an additional $5,000 of annual income.

The higher the starting dividend yield, the more of a boost investors get from falling share prices. For example, a 10% dividend yield would turn into an 11% dividend yield after a 10% share price drop.

I don’t think that some of these businesses are going to experience deteriorating conditions forever. Retailers may be facing a tricky 2023, but the longer term could see the economy return to normal-ish trading conditions.

ASX dividend shares that are now paying a bigger yield

There are many examples of ASX companies taking a hit to their share prices, including Wesfarmers Ltd (ASX: WES) as seen below.

Since August 2021, the Wesfarmers share price has fallen around 25%. Commsec numbers suggest that the owner of Bunnings and Kmart might pay a grossed-up dividend yield of around 5.25% in FY23.

From November 2021, the Nick Scali Limited (ASX: NCK) share price has declined by around 35%. Commsec numbers suggest the furniture retailer could pay a grossed-up dividend yield of around 11% in FY23.

Pathology giant Sonic Healthcare Ltd (ASX: SHL) has seen its share price decline 20% over the past year and 35% since the end of 2021. Commsec numbers suggest a grossed-up dividend yield of 4.75% could be the payout in FY23.

Foolish takeaway

This period of time seems like a great chance for investors to make passive income from ASX dividend shares while they’re offering boosted dividend yields. Certainly, I’m on the hunt for much cheaper opportunities that could deliver outperformance and income growth over the coming years.

The post Why right now is a once-in-a-decade opportunity to make passive income from ASX shares appeared first on The Motley Fool Australia.

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

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

More reading

• Why ARB, Centuria Capital, Nick Scali, and Tabcorp shares are dropping
• ASX share prices have rallied too hard to start 2023 says UBS equity strategist as one US analyst says don’t even think about turning bullish until 2024
• Wesfarmers share price drops on Catch news
• Why Brainchip, Core Lithium, IAG, and Nick Scali shares are dropping today
• Nick Scali share price plummets despite 70% profit boost

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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Sonic Healthcare. 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/0R5ZL2t

The Suncorp Group Ltd (ASX: SUN) share price is edging lower on Wednesday morning.

At the time of writing, the banking and insurance giant’s shares are down slightly to $12.46.

This follows the release of Suncorp’s half-year results.

Suncorp share price edges lower on half-year results

• Insurance Australia gross written premium (GWP) up 9% to $4.8 billion
• Suncorp New Zealand GWP up 12.2% to NZ$1.2 billion
• Suncorp Bank home lending up 10.4%
• Net profit after tax up 44.3% to $560 million
• Cash earnings up 62.9% to $588 million
• Interim fully franked dividend up 43.5% to 33 cents per share

What happened during the half?

For the six months ended 31 December, Suncorp delivered a major jump in earnings thanks to a combination of factors. This includes underlying margin improvement, positive investment returns, premium increases, loan growth, and the release of $150 million from the provision for potential business interruption claims.

This helped offset the negative impact of elevated natural hazard activity. Suncorp notes that the prevailing La Niña weather pattern across Australia and New Zealand led to eight separate weather events and around 53,000 natural hazard claims during the half. This resulted in Suncorp exceeding its natural hazard allowance by $99 million.

Nevertheless, this couldn’t stop Suncorp from boosting its interim dividend by a massive 43.5% to a fully franked 33 cents per share. This represents a payout ratio of 71%, which is in the middle of its target payout ratio of 60% to 80%. This dividend will be paid to eligible shareholders on 31 March.

However, it is worth noting that the market was expecting a net profit of $570 million. So, Suncorp’s $560 million profit appears to have fallen short of expectations. This could be weighing on the Suncorp share price a touch today.

Management commentary

Suncorp’s CEO Steve Johnston was pleased with the half. He said:

Our Australian and New Zealand businesses have achieved strong growth in premiums, while unit growth across our consumer portfolio demonstrates the value of our products and brands, particularly in an inflationary environment. Our Best-in-Class claims program has allowed us to be more disciplined in leveraging scale to deliver lower aggregate inflation outcomes. The Bank continued to grow its home and business lending portfolios and customer deposits.

Outlook

Also failing to boost the Suncorp share price was management’s positive outlook commentary.

Mr Johnston revealed that the company is on track to deliver on its FY 2023 targets. He added:

Pleasingly, we remain on track to achieve our FY23 targets, which is testament to the strength and resilience of our business amid significant headwinds, and demonstrates our ability to create long-term shareholder value while meeting the evolving needs of our customers and other stakeholders

This includes operating expenses being in-line with its previous guidance of $2.7 billion, its underlying insurance trading ratio in the range of 10% to 12%, and growth in its GWP.

The post Suncorp share price under pressure despite huge half-year profit growth 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 things to watch on the ASX 200 on Wednesday
• Income investors rejoice! Analysts say these quality ASX dividend shares are buys
• Top brokers name 3 ASX shares to buy today
• Dividends, dividends, dividends! 3 ASX 200 bank shares forecasting yields over 8%
• 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 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/k1HQsOK

The Reserve Bank of Australia (RBA) just increased the interest rate again despite inflation supposedly peaking. What’s going on and how much more pain will be inflicted on the S&P/ASX 200 Index (ASX: XJO)?

Yesterday, Australia’s cash rate was increased by another 25 basis points, or 0.25%, to 3.35%. Remember that less than a year ago the interest rate was just 0.10%.

The main goal of man central banks is to reduce inflation back down to their target range by taking some demand out of the economy. For the RBA, that target range is between 2% to 3% while keeping the economy on an even keel.

Inflation peaks in Australia?

As noted by the RBA, CPI inflation over the 12 months to 31 December 2022 was 7.8%, the highest since 1990.

In underlying terms, inflation was 6.9%. This was higher than expected and may be one of the key reasons why the RBA was concerned enough to announce that 2023 would see more rate rises.

The RBA believes that “global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy.”

Employment remains very strong. The RBA called the labour market “very tight” with the unemployment rate “steady at around 3.5%”, which is the lowest rate since 1974. Job vacancies and job ads are both at “very high levels”, but have declined a little recently, with some businesses reporting a recent easing in labour shortages.

It noted that as economic growth slows, unemployment is expected to increase to 3.75% by the end of 2023.

Why are interest rates still going up?

The key factor seems to be that the RBA wants to do everything it can to avoid strong inflation. RBA boss Dr Lowe isn’t focused on what’s happening with ASX 200 shares. In the statement, the board said:

The board’s priority is to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.

While some cost inflation may have peaked, the RBA is keeping a close eye on wage growth, which is “continuing to pick up from the low rates of recent years and a further increase is expected due to the tight labour market.” The RBA then said:

Given the importance of avoiding a prices-wages spiral, the board will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms in the period ahead.

Despite the 0.25% increase, the RBA “expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.”

Plenty of economists thought that the RBA would only do two increases – yesterday’s and one more, taking the rate to 3.6%. But, with how the outlook was worded – could the rate reach 3.85%? Or even 4%?

It’s possible the RBA may only go to 3.75%, but it seems the interest rate is going to be more than most people were expecting.

The ASX 200 may be resilient as a whole in the face of these hikes. The US Federal Reserve seems to be slowing its rate increases, the ASX bank shares could benefit from higher rates, and the miners are benefiting from higher commodity prices. It’s no mistake that the Commonwealth Bank of Australia (ASX: CBA) share price is close to $110 and its all-time high.

The post If inflation has peaked, why does the RBA keep raising interest rates? 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

• Broker says these small cap ASX shares offer big returns potential
• Bought $1,000 of Bendigo Bank shares in 2013? Here’s how much passive income you’ve received
• These are the best ASX dividend shares to buy: broker
• Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff
• Buy these ASX passive income shares with 5%+ yields today: experts

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/dWifB4C

If you have a high tolerance for risk, then you might want to consider adding some small cap exposure to your portfolio.

But which small cap ASX shares should you buy? Listed below are two that Morgans rates very highly. Here’s why it is bullish on them:

Acrow Formwork and Construction Services Ltd (ASX: ACF)

The first small cap ASX share that Morgans is bullish on is Acrow. It provides engineered formwork, scaffolding, and screen systems solutions to the construction sector.

Morgans likes the company due to its belief that it is well-placed to benefit from growing civil infrastructure activity across the east coast. It also highlights its attractive valuation and even more attractive dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long-term, especially on the east coast. We believe the valuation remains attractive (~7x FY23F PE and ~6.5% yield) with potential positive catalysts from further meaningful contract wins.

The broker has an add rating and 84 cents price target on its shares. This suggests potential upside of 23% for investors over the next 12 months based on the current Acrow share price.

Mach7 Technologies Ltd (ASX: M7T)

Morgans is positive on this enterprise image management systems provider. It believes Mach7 is well-positioned to deliver strong top line growth over the coming years. It explained:

Mach 7 is a provider of enterprise image management systems that allow hospitals to identify, connect and share image and patient care data. Revenue growth of at least 20% pa is expected over the next three years.

The broker currently has an add rating and $1.34 price target on its shares. So, with the Mach7 share price currently fetching 73 cents, this implies potential upside of 83% for investors over the next 12 months.

The post Broker says these small cap ASX shares offer big returns potential 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

• If inflation has peaked, why does the RBA keep raising interest rates?
• Bought $1,000 of Bendigo Bank shares in 2013? Here’s how much passive income you’ve received
• These are the best ASX dividend shares to buy: broker
• Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff
• Buy these ASX passive income shares with 5%+ yields today: experts

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 Mach7 Technologies. The Motley Fool Australia has recommended Mach7 Technologies. 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/bsa4liZ

The last 10 years have been a wild ride for the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price. But despite its ups and downs, the ASX bank stock hasn’t gone all that far.

If one were to have invested $1,000 in the not-quite-big-four bank in February 2013, they likely would have walked away with 104 shares and $6 change, having paid $9.55 apiece.

Today, those 104 shares would be worth $1,035.84. The Bendigo Bank share price has gained 4.3% over the last decade to trade at $9.96 today.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 51% in that time.

Could the dividends on offer from Bendigo Bank shares have made up for the stock’s sluggish performance? Let’s take a look.

All dividends offered by Bendigo Bank shares since 2013

Here are all the dividends that have been on the table for those invested in Bendigo Bank shares over the last 10 years.

Bendigo Bank dividends’ pay date	Type	Dividend amount
September 2022	Final	26.5 cents
March 2022	Interim	26.5 cents
September 2021	Final	26.5 cents
March 2021	Interim	28 cents
March 2020	Interim	31 cents
September 2019	Final	35 cents
March 2019	Interim	35 cents
September 2018	Final	35 cents
March 2018	Interim	35 cents
September 2017	Final	34 cents
March 2017	Interim	34 cents
September 2016	Final	34 cents
March 2016	Interim	34 cents
September 2015	Final	33 cents
March 2015	Interim	33 cents
September 2014	Final	33 cents
March 2014	Interim	31 cents
September 2013	Final	31 cents
March 2013	Interim	30 cents
Total:		$6.055

As readers can see, each Bendigo Bank share has yielded $6.055 of passive income over the last 10 years. That leaves our figurative parcel having brought in $629.72 of dividends over its life.

Taking that figure and considering its stock’s gains, Bendigo Bank has provided a return on investment (ROI) of around 67.7%. That’s certainly nothing to scoff at.

And that’s before we consider any potential tax benefits born from the franking credits attached to each of the bank’s dividends.

Right now, Bendigo Bank shares trade with a 5.3% dividend yield.

The post Bought $1,000 of Bendigo Bank shares in 2013? Here’s how much passive income you’ve received 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

• Is Bank of Queensland gearing up for the next big ASX 200 bank merger?
• Dividends, dividends, dividends! 3 ASX 200 bank shares forecasting yields over 8%
• Can ASX bank shares deliver in 2023 after higher interest rates?

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 positions in and has recommended Bendigo And Adelaide Bank. 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/4sfu6Yr

Are you wanting to add some dividend shares to your portfolio this week? If you are, then the two listed below could be worth checking out.

Both have recently been named as best ideas by analysts at Morgans and tipped to provide very attractive yields.

Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans has named as a buy is Dexus Industria.

Morgans is a fan of this industrial and office property company. This is due to its belief that Dexus Industria is well-placed for growth thanks to strong demand and its development pipeline. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.6 cents in FY 2024. Based on the current Dexus Industria share price of $3.06, this will mean yields of 5.4% and 5.5%, respectively.

Morgans currently has an add rating and $3.26 price target on the company’s shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that Morgans is positive on is HomeCo Daily Needs.

It is a property investment company that focuses on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans likes the company due to its high occupancy, long leases, and attractive dividend yield. It said:

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%; weighted average lease expiry 5 years and occupancy 99%. 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 ~$500m development pipeline)

In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.32, this will mean dividend yields of 6.3% and 6.5%, respectively.

Morgans has an add rating and $1.52 price target on its shares.

The post These are the best ASX dividend shares to buy: broker 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

• 2 ASX dividend shares to buy with big yields: Morgans
• Top ASX value shares to buy in February 2023
• These top ASX dividend shares are buys: Morgans

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/aWDOPje

With everyone piling onto ASX lithium shares, it’s hard to find any real bargains in that space.

However, lithium is not the only mineral critical for the zero-carbon transition.

Copper has been used for conducting electricity for centuries, and a typical electric car can contain more than 1.6km of wiring made from the element.

With the global economy about to rapidly slow down this year after steep interest rate rises, gold is also in favour as a “safe haven” investment.

Even after a cool-off this month, the gold price is up 5.4% over the past 60 days in US dollar terms.

So which ASX shares can give you exposure to these boom commodities?

There is one stock that Argonaut associate dealer Harrison Massey mentioned this week that is involved with both resources:

Supercharging the ‘size and economics’ of Queensland site

Massey is currently urging investors to buy shares of miner AIC Mines Ltd (ASX: A1M).

“AIC Mines owns and operates the Eloise copper mine in Queensland,” Massey told The Bull.

“Eloise is a high-grade underground mine with a 26-year operating history.”

The analyst likes how AIC’s production potential has significantly upgraded.

“The company recently increased its mineral resource to 115,000 tonnes of contained copper and 101,100 ounces of contained gold,” he said.

“AIC Mines bought an adjacent exploration company in late 2022, which should significantly enhance the size and economics of the Eloise project.”

The AIC share price has dipped 18.3% over the past 12 months, perhaps suggesting a nice entry point for those wanting to dive in now.

The resources company currently has a market capitalisation of $194 million, but is yet to pay out any dividends.

Massey is not alone in his bullishness for the Queensland miner.

According to CMC Markets, all four of the analysts currently covering AIC Mines shares recommend it as a strong buy.

The post Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff 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

• Bought $1,000 of Bendigo Bank shares in 2013? Here’s how much passive income you’ve received
• These are the best ASX dividend shares to buy: broker
• Buy these ASX passive income shares with 5%+ yields today: experts
• These are the best ASX 200 energy shares to buy now: Morgans
• The A2 Milk share price has lagged the ASX 200 in 2023. Time to pour in?

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

from The Motley Fool Australia https://ift.tt/HpT7vRO

If you’re looking for dividend shares to buy this week to boost your passive income, then the two listed below could be worth checking out.

Both have recently been named as buys by analysts and tipped to provide very attractive yields. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

This footwear and youth apparel retailer could be an ASX passive income share to buy.

Thanks to its strong market position, popular retail brands, and exposure to younger consumers, Accent has been tipped to grow strongly in the coming years.

This is expected to lead to the retailer rewarding its shareholders with a growing stream of dividends.

For example, according to a note out of Goldman Sachs, its analysts are expecting the company to increase its dividend to a fully franked 12.2 cents per share in FY 2023. Based on the current Accent share price of $2.24, this will mean a yield of 5.4%.

Goldman has a buy rating and $2.75 price target on Accent’s shares.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX income share that could be a top option for investors is the Charter Hall Long Wale REIT.

It is a property company that is focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

Citi is a fan of the company due to its low risk income stream, ultra-long leases, sky-high occupancy rate, and inflation-linked rental increases.

The broker believes this will underpin the payment of dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.68, this will mean yields of 6% and 6.2%, respectively.

Citi currently has a buy rating and $5.00 price target on its shares.

The post Buy these ASX passive income shares with 5%+ yields today: experts 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

• ASX 200: Buy high and sell higher
• Buy Pilbara Minerals and this ASX dividend share: experts
• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them
• 3 ASX All Ordinaries stocks hitting new 52-week highs today
• 7%+ dividend yield! I’d buy this ASX 300 share for passive income in 2023

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/3AhJv7l

There are plenty of options for investors to choose from in the energy sector. But which ASX 200 energy shares should you buy?

Listed below are a couple of energy shares that have been named on the best ideas list of Morgans for the month of February.

Here’s why they could be top options for investors:

Karoon Energy Ltd (ASX: KAR)

The first ASX 200 energy share that has been named as a buy is Karoon Energy. Morgans likes the company due to its strong balance sheet and bold production growth plans. It explained:

Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. While there is also potential catalysts just around the corner with Karoon flagging at its recent result that it planned to shortly update the market with more detail on its growth plans, Bauna’s outlook, and its ESG approach.

Morgans has an add rating and $3.70 price target on Karoon Energy’s shares.

Santos Ltd (ASX: STO)

Another ASX 200 energy share that Morgans thinks investors should be considering is Santos. It sees the energy producer as a great option due to the strength of its growth profile and its diversified earnings base. It commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against the 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. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

Morgans has an add rating and $8.75 price target on Santos’ shares. It also expects an attractive 5.8% dividend yield in FY 2023.

The post These are the best ASX 200 energy shares to buy now: Morgans 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 things to watch on the ASX 200 on Wednesday
• 2 ASX 200 shares to buy while energy shortage rages on: experts
• 5 things to watch on the ASX 200 on Tuesday
• Should I buy Santos shares right now for dividend income?
• 5 things to watch on the ASX 200 on Monday

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/X46Nted

The A2 Milk Co Ltd (ASX: A2M) share price has underperformed the S&P/ASX 200 Index (ASX: XJO) so far in 2023.

Year-to-date the ASX 200 has gained an impressive 7.1% while the A2 Milk share price is right about where it started the new year.

But, according to Adam Lund, co-founder of Spheria Asset Management, the dairy company is well positioned to turn that around and outperform over the full year.

The ASX 200 share remains ‘somewhat overlooked’

In our fund manager interview with Lund, he said the A2 Milk share price was among the top performers for the fund in 2022.

Having previously held shares in the company, Spheria added the stock back into their portfolio in 2021.

“We thought it was being irrationally priced by the market and the re-rate we anticipated came as new management returned the business to growth, cleaned up the inventory position and steadied the strategy of the business,” Lund told us.

That was 2022.

But the fund manager remains optimistic about the outlook for the A2 Milk share price in 2023 as well.

According to Lund:

A2 is a high-quality growth business, and even after the recent rally, it still remains somewhat overlooked by the market. The turnaround driven by CEO David Bortolussi, who stepped into the business in 2021, is well underway.

Among reasons to be bullish on the stock, Lund cited A2 Milk’s “enviable position” with importing infant formula into China with its “high margin and highly differentiated product”.

“It’s a strong cash generative business, capex light and has multiple potential longer term growth drivers,” he added.

As for the metrics, Lund said:

A2 has significant cash on its balance sheet with over $780 million of net cash. And it trades at only around 2.5 times enterprise value (EV) to sales and some 18 times enterprise value to earnings before interest and taxes (EBIT).

A2 Milk share price snapshot

As you can see in the chart below, the A2 Milk share price has had a really strong run over the past six months, up 38% since 8 August.

The post The A2 Milk share price has lagged the ASX 200 in 2023. Time to pour in? appeared first on The Motley Fool Australia.

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

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

More reading

• Why this ASX 200 share has ‘great further upside potential’ in 2023: fund manager
• A2 Milk shares are up 30% in a year, is this price sweet or sour?
• 3 ASX shares to cash in on China’s reopening to the world: Jun Bei Liu
• If I invest $1,000 in A2 Milk shares now, what could my return be this year?
• 5 ASX All Ords shares cracking new 52-week highs on Tuesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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/EydJef3