Category: Stock Market

The Fortescue Ltd (ASX: FMG) share price has slid 20% over the past month, as the chart below shows. With this lower market capitalisation, investors are being offered better value when buying Fortescue shares. Does the FY25 outlook mean it’s a good time to dig into the ASX iron ore share?

It’s not surprising that investors aren’t feeling as optimistic – the iron ore price has dropped from US$117 per tonne at the end of May to US$107 per tonne now.

A decline in the commodity price is bad news for miners – mining costs don’t usually change much from month to month, so a reduction in revenue for the same amount of production usually results in a large decline in net profit.

Where will the iron ore price go next? No one can know for certain – commodity prices are both unpredictable and sometimes cyclical.

Iron ore price to rebound?

Trading Economics recently reported that economic data from China is adding to pessimism about the outlook for iron ore demand.

Chinese house prices in 70 cities declined by 3.9% year over year in May, the largest decline since 2015.

Another negative was that ‘fixed asset investment’ was lower than expected, which Trading Economics said unscored the “rout in the property market and consumers’ reluctance to purchase real estate.”

Chinese officials have been trying to reduce the country’s growing housing inventory with various measures rather than supporting Chinese property developers in financial strife. Those developers are typically some of the world’s largest users of steel and, therefore, iron ore, so their struggles can have a knock-on effect on the iron ore industry.

Finally, Trading Economics noted there was “muted” industrial demand in China, which was another headwind for iron ore because the hope was that “higher manufacturing growth would drive infrastructure-stemmed steel demand to offset the rout in construction.”

However, it’s worth noting the iron ore price has fallen to approximately US$100 per tonne (or below) a number of times over the past five years and then rebounded, though past performance is not a reliable indicator for the future.

Having said that, Trading Economics’ macro models and analyst expectations suggest the iron ore price could reach US$126 per tonne in 12 months. If that happens, it could increase the company’s profitability and fund larger dividends.

FY25 earnings estimate

The broker UBS, which is less optimistic about the iron ore price, has outlined in a note its expectations for Fortescue’s FY25 numbers. UBS thinks the iron ore price will be around US$113 per tonne over the rest of the 2024 calendar year.

UBS forecasts Fortescue could see revenue of US$17.1 billion and net profit after tax (NPAT) of US$5.3 billion in FY25, with that profit forecast representing a possible year over year decline of 15%. The dividend per share could fall more than 23% year over year to A$1.28 per share.

Fortescue isn’t expected to be producing green hydrogen meaningfully in FY25, so its efforts with green energy may not be material yet for Fortescue shares.

If the iron ore price is stronger than expected during the 2025 financial year, it could mean better financials than what UBS is predicting, but that would likely require an uptick in demand from China, which doesn’t seem certain at this stage.

The post Is the FY25 outlook for Fortescue shares compelling? appeared first on The Motley Fool Australia.

More reading

• Top 10 most traded ASX shares and US stocks in May
• 5 reasons everyone’s talking about Fortescue shares this week
• What’s the outlook for ASX 200 mining shares in FY25?
• Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today
• Fortescue shares drop as $1.1 billion stake hits the market

Motley Fool contributor Tristan Harrison has positions in Fortescue. 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.

There are a lot of ASX income shares out there for investors to choose from at present.

Two that are highly rated are named below. Here’s what analysts are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Analysts at Morgans are positive on this property company and think it could be an ASX income share to buy.

The broker has Cedar Woods’ shares on its best ideas list with an add rating and $5.60 price target.

Its analysts believe the company’s shares are undervalued and deserve to trade on higher multiples. They said:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

In respect to income, Morgans is forecasting dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.60, this will mean dividend yields of 3.9% and 4.35%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX income share that could be a buy next week is the Healthco Healthcare and Wellness REIT.

Bell Potter is a big fan of the health and wellness focused property company and has a buy rating and $1.50 price target on its shares.

It believes that recent weakness has created a compelling buying opportunity for investors. The broker said:

HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

As for dividends, Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on its current share price of $1.15, this would mean generous yields of 6.95% and 7.2%, respectively.

The post Buy these ASX income shares next week appeared first on The Motley Fool Australia.

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• 2 excellent ASX income stocks 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 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.

With just one week left in FY 2024, we polish our crystal ball to gauge what investors can expect from S&P/ASX 200 Index (ASX: XJO) travel shares in FY 2025.

Before we turn to that, though, here’s how ASX 200 travel shares have performed over the past 12 months:

• Qantas Airways Ltd (ASX: QAN) shares are down 5%
• Flight Centre Travel Group Ltd (ASX: FLT) shares are up 1%
• Webjet Ltd (ASX: WEB) shares are up 25%
• Corporate Travel Management Ltd (ASX: CTD) shares are down 27%.

This very mixed bag of results compares to a one-year gain of 6% posted by the ASX 200.

Now, here’s what could help or hinder the big Aussie travel companies in the year ahead.

A new financial year for ASX 200 travel shares

Looking ahead to FY 2025, each of the ASX 200 travel shares will obviously face its own company-specific headwinds and tailwinds.

But all of them depend on a robust travel sector to keep their customers and revenue flowing.

With that in mind, the first thing to keep an eye on is fuel costs. Jet fuel accounts for some 20% of airlines’ annual expenses, so higher or lower fuel costs will impact Qantas shares directly.

But Webjet, Corporate Travel Management and Flight Centre will also be impacted as airlines will pass on any major cost increases or declines to travellers, influencing the amount of business these companies can expect.

On that front, the Brent crude oil price ended the week back above US$85 per barrel. With record US output balancing out the current OPEC+ production cuts, and with OPEC+ intending to ease out of those cuts in Q2 FY 2025, I don’t expect the oil price will sustainably hold above US$90 in the year ahead. Keeping a cap on fuel prices should help support the outlook for ASX 200 travel shares.

The industry is also susceptible to what happens with the global conflicts currently raging in various corners of the world. Should these escalate or new conflicts erupt, that would likely put a dent in international travel. And it could drive energy costs higher as well.

Growing tailwinds?

All of the ASX 200 travel shares are likely to get a boost from various government cost-of-living relief measures and the stage 3 tax cuts in FY 2025. If inflation comes down and the RBA begins to cut interest rates, it could usher in a big boost for the sector.

And another potential boost across the board for ASX 200 travel shares in FY 2025 is the potential for a big uptick in travellers to and from China.

This comes after China just agreed to add Australians to those citizens who can travel to the Middle Kingdom visa-free for up to 15 days. Australia’s government is offering some reciprocal measures.

The post What’s ahead for ASX 200 travel shares in FY 2025? appeared first on The Motley Fool Australia.

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• These ASX shares could rise 20% and ~40%
• Here are the top 10 ASX 200 shares today
• How AI can help Qantas shares fly higher
• Near its 52-week low, this ASX growth stock could be the bargain of the year!
• Could Qantas shares be poised to catch some Chinese tailwinds?

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 Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. 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.

The Commonwealth Bank of Australia (ASX: CBA) share price has shown strong performance recently, with a rise of over 30% since the beginning of November 2023, as shown on the chart below. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has risen 14% in the same time period.

CBA has climbed alongside the other major ASX bank shares, including National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Does the rise make sense? As John Maynard Keynes once said:

The market can stay irrational longer than you can stay solvent

Does the recent performance justify investor enthusiasm?

It’s a strange surge for the banking sector, considering the ongoing banking challenges remain. The net interest margin (NIM) (lending profit after funding costs) is drifting lower, arrears are climbing, competition is strong and credit demand is not strong.

In the FY24 third quarter update, cash net profit after tax (NPAT) declined 5% year over year to around $2.4 billion.

CBA noted its net interest income was challenged because of “lower net interest margins primarily from continued competitive pressures and customers switching to higher yielding deposits.”

It said there was “improved momentum” in volume growth across home lending and household deposits. Home loans grew by $4.2 billion, at 0.7 times the system, for the three months to March 2024.

CBA also revealed its loan arrears are increasing – the percentage of home loans that are at least 90 days overdue increased to 0.61% at March 2024, up from 0.52% at December 2023, 0.44% at March 2023 and 0.43% at December 2022.  

Despite that backdrop, the CBA share price has delivered this rise. It’s now very expensive on typical valuation metrics.

According to the independently provided forecasts on Commsec, the CBA share price is valued at 22x FY24’s estimated earnings and 22.5x FY25’s estimated earnings – earnings per share (EPS) is expected to drop around 2.5% in FY25 amid the challenges I’ve talked about.

My take on the CBA share price

In my opinion, CBA is definitely one of the highest-quality banks in Australia, along with Macquarie Group Ltd (ASX: MQG) and probably NAB.

It has done well growing profit over the last decade despite the challenges, and I applaud its efforts to expand in business banking, where it can diversify and grow its earnings.

I don’t think CBA shares offer good value here, but I would have said that when the CBA share price was at $120 (and it’s above $127 now).

There is one main reason the CBA share price keeps rising – there is stronger buying demand than selling. It’s hard to say who is driving the buy, but I wouldn’t be surprised if it’s investors who are not entirely focused on valuation.

ASX-focused exchange-traded funds (ETFs), such as Vanguard Australian Shares Index ETF (ASX: VAS), must buy the shares in their index if people give the fund provider money.

Also, Australians collectively continue to contribute billions of dollars to their superannuation fund, such as AustralianSuper, which must allocate that money in accordance with the super member’s investment allocation wishes, which typically would include a sizeable portion to Australian shares.

There is a lot of capital in Australia that is looking for a home every month or three months. So, it’s possible the CBA share price could keep rising, even if the valuation isn’t appealing.

The post Surely CBA shares can’t just keep rising? appeared first on The Motley Fool Australia.

More reading

• How to turn your savings account into a gold mine starting with $10,000
• Can the good times keep rolling for ASX 200 bank shares in FY25?
• 3 top ASX 200 stocks that could create lasting passive income into retirement
• 2 ASX 200 bank shares smashing new multi-year highs today
• Beaten-up ASX 200 stock rebounds 15%. Macquarie says more to come

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 Macquarie Group. 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.

Unless you’ve been living under a rock (or else aren’t too interested in finance or investing), you’ve probably heard about the explosive rise of US chip and artificial intelligence (AI) stock NVIDIA Corporation (NASDAQ: NVDA) over the past year or two.

Nvidia has been a much-loved growth stock for a while now. But its growth has gone from stratospheric to astronomic over the past 12-18 months.

To give you an idea of what that looks like, the Nvidia share price has put on 181.5% in 2024 alone (as of the US markets’ Wednesday close). Those gains stretch to 209.5% over the past 12 months and a stupendous 3,477% over the past five years.

Obviously, I would have loved to own this stock, ideally for at least five years. But I don’t. And I’m not going to buy any.

Nvidia is an incredible company, no one disputes that. The earnings numbers it has been cranking out over the past few months have been almost unbelievable. To illustrate, back in May, the company’s quarterly report showed revenues surging 262% year over year to US$26 billion.

I wouldn’t be surprised to see this kind of growth continue for at least another year or two.

So why wouldn’t I want to buy this company? Well, I am seeing the classic signs that Nvidia shares are entering ‘bubble’ territory.

Is Nvidia stock in a bubble?

Investors always love a market darling. When it seems a company can do no wrong and is the centre of the future, everyone understandably wants a slice of the action. We always see this kind of thing on the investing markets, albeit not on Nvidia’s scale.

On the ASX, we had Afterpay and Zip Co Ltd (ASX: ZIP) a few years ago.

On the US markets, electric vehicle manufacturers were all the rage back in 2021 and 2022. We saw companies like Tesla, Rivian and Nikola explode in value, only to shrink once the hype faded. Many of these companies had strong numbers to back up their growth stories, to be sure. No one disputes that the trajectory of electric vehicles is still on the rise.

But there was hype in that space. And that hype faded. As it almost always does. Today, Tesla shares are still well above (over 1,100%) what they were five years ago. But the company is also down 55% or so from its record high.

Rivian shares have plummeted by 91.5% from their 2021 peak, while Nikola shares have also dropped by over 99% from their peak.

I’m not saying this will happen with Nvidia. In my view, the company’s future is bright. But I don’t think it’s sustainable for a multi-trillion company to rise by 43% in one month, as Nvidia stock has. I think eventually, the company will come down to earth. As Benjamin Graham once said, ‘in the short run, the market is a voting machine, but in the long run, it is a weighing machine”.

Investors are clearly voting Nvidia stock higher right now. But I’m willing to wait and see what the market eventually weighs it at. I could be wrong here. Perhaps Nvidia goes on to become a US$4 trillion company or even a US$5 trillion one in 2024 or 2025. But I think that’s a roll of the dice at this stage, and I don’t roll dice in my portfolio.

The post It’s up 3,500%, but here’s why I’m still not buying Nvidia stock appeared first on The Motley Fool Australia.

More reading

• Want to buy Nvidia but don’t have a US share account? Buy these ETFs instead
• Thinking about buying Nvidia stock? Here’s why you might already own it
• Nvidia investors just got some bullish news
• Is Nvidia stock going to $200 in the wake of its 10-for-1 stock split?
• Can anyone topple Nvidia as the king of artificial intelligence investments?

Motley Fool contributor Sebastian Bowen has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, Tesla, and Zip Co. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation services provider Vanguard says there has been a “shift in asset allocations” among investors with self-managed superannuation funds (SMSFs) in 2024.

Vanguard says SMSF trustees have reduced their allocation to cash (from 22% to 18%) and direct shares (from 31% to 27%) and nearly doubled their allocation to exchange-traded funds (ETFs) (from 5% to 8%).

ASX shares, including ETFs, are the preferred assets of SMSF investors. ATO figures show that $271 billion was invested in shares out of a total of $933 billion in assets under management in the March quarter.

Cash and term deposits are the second favourite category among SMSFs, with $145 billion invested.

Why are self-managed superannuation investors buying ETFs?

Vanguard said the increased allocation to ETFs was a trend among advised and non-advised SMSF investors. In fact, non-advised SMSFs accounted for the bulk of the increase.

This reflects general trends showing ASX investors are ploughing more money into ETFs as they learn more about them.

ETFs are a relatively new type of investment. They first traded on the New York Stock Exchange in 1993 and on the ASX in 2001.

Vanguard says new SMSF investors intend to contribute to the trend.

A survey of 2,200 SMSF trustees for its 2024 Investment Trends Self Managed Super Fund (SMSF) Report found nearly 60% of newly established SMSFs intend to invest in ETFs over the next 12 months.

Vanguard said there were three reasons why self-managed superannuation investors were turning to ETFs. They are easy diversification, exposure to specific overseas markets, and liquidity.

More Aussies setting up SMSFs to take control of investments

Vanguard says an increasing number of Australians are setting up SMSFs to take control of their superannuation savings.

Renae Smith, chief of Personal Investor at Vanguard Australia, said:

The sustained rebound in SMSF establishment rates reflects the growing interest and confidence among investors in managing their own superannuation funds and the autonomous nature of this cohort.

Their desire for control or choice over investment products or their fund’s asset allocation far outweighs the time, effort and complexity required in managing their funds.

There were a net 7,099 SMSFs established in the March quarter, according to the ATO. This was the third-biggest quarterly increase over the past five years.

There are now 616,400 SMSFs in operation in Australia, with 1.15 million members. As we recently reported, the average wealth per SMSF member is $780,254.

The largest cohort of SMSF members is 75–84-year-olds (15.1% of members), followed by 60–64-year-olds (12.7%) and 65–69-year-olds (12.1%).

The superannuation preservation age is between 55 and 60 years, depending on when you were born.

The post Which stocks are rising in popularity among self-managed superannuation investors? appeared first on The Motley Fool Australia.

More reading

• These ASX shares could rise 20% and ~40%
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• Down 15% in 4 months, is it time to buy this ASX growth stock?

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.

Are you looking for big returns for your investment portfolio?

Of course you are! Who wouldn’t want to grow their wealth at a rapid rate?

So, without further ado, let’s take a look at three ASX shares that analysts have named as buys and are tipping to rise strongly. Here’s what you need to know about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that Flight Centre could be an ASX share to buy for big returns.

This is due to the benefits of its transformed business model and the travel recovery. It said:

FLT has the greatest risk, reward profile of our travel stocks under coverage. The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25. With greater confidence in the travel recovery and the benefits of Flight Centre’s transformed business model already emerging, we think the company is well placed over coming years.

Morgans has an add rating and $27.27 price target on its shares. This implies potential upside of 38% over the next 12 months.

Smartgroup Corporation Ltd (ASX: SIQ)

The team at Bell Potter is bullish on Smartgroup and sees the salary packaging company as an ASX share to buy.

It believes the company would be a good option due to its exposure to the growing electric vehicles market. It said:

SIQ provides a unique exposure to the growing demand profile for renewable fuels and vehicle electrification on the ASX. Australia will need to achieve a 50% sales share for low emission vehicles by 2035 to meet transport emission targets of 95.3 Mt CO₂-e; and we view the New Vehicle Efficiency Standard as an additional means to meet this ambition through incentivised dealer volumes. EVs currently represent around 1% of the light duty vehicle stock in Australia.

Bell Potter has a buy rating and $11.00 price target on its shares. This suggests that upside of 28% is possible from current levels.

Worley Ltd (ASX: WOR)

Analysts at Goldman Sachs think that this engineering company’s shares are undervalued at current levels. Particularly given how the company remains well-placed to benefit from the energy transition. It said:

WOR is well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix in the LT, leveraging its experience in providing engineering and maintenance services for complex energy/chemicals works, existing client relationships, and management’s stated focus on expanding the company’s transition footprint.

Goldman has a buy rating and $17.50 price target on the ASX share. Based on its current share price of $14.25, this implies potential upside of 23% for investors over the next 12 months. The broker also expects a 3.7% dividend yield in FY 2024.

The post These ASX shares could rise 20% and ~40% appeared first on The Motley Fool Australia.

More reading

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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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Smartgroup. 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.

If you’re looking for an easy way to invest your money for the long term, then it could be worth looking at the exchange traded funds (ETFs) in this article.

Here’s why they could be quality long-term options for investors this month:

Betashares Energy Transition Metals ETF (ASX: XMET)

The first ASX ETF that could be a good long term option is the Betashares Energy Transition Metals ETF. It gives investors easy access to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earth elements. These are all metals that will be pivotal to the decarbonisation of the planet. Analysts at Betashares named it on the fund manager’s list of 12 ASX ETFs ideas for 2024. They note that “both electric cars and clean energy use notably more metals than their conventional counterparts, and many of these minerals have highly concentrated and insecure supply chains.”

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be a great long term option is the BetaShares Global Cybersecurity ETF. It provides investors with access to the leading players in the cybersecurity sector. This is a big market to be in. Betashares highlights that “an estimate of the total addressable market by McKinsey suggests that the cybersecurity market is $1.5-$2.0 trillion globally, and at best only 10% penetrated with a very long runway for growth.” This gives the companies included in the fund a significant growth opportunity over the next decade.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you are looking for long term options, then it is hard to ignore the extremely popular BetaShares NASDAQ 100 ETF.  It isn’t hard to see why so many investors buy this ETF. That’s because it gives investors access to 100 of the largest non-financial shares on the famous NASDAQ index. These are the giants of our age. They provide ours phones, electric vehicles, social media sites, streaming services, spreadsheets, online stores, search engines, and graphics cards we use daily.

iShares S&P 500 ETF (ASX: IVV)

A fourth ASX ETF that could be a top option for investors is the iShares S&P 500 ETF. This fund give you access to 500 of the top listed companies on Wall Street. This means that you will be investing in a diverse group of shares, including countless household names, from a range of different sectors. This includes the majority of the companies included in the NASDAQ 100 ETF.

The post 4 of the best ASX ETFs to buy and hold for a decade appeared first on The Motley Fool Australia.

More reading

• Want to buy Nvidia but don’t have a US share account? Buy these ETFs instead
• ‘Unique and defensive’: Why this ASX tech ETF is a buy
• Looking to ‘get rich quick’? Use the Warren Buffett approach instead
• Can the iShares S&P 500 ETF (IVV) continue its strong run in FY25?
• Why these 5 ASX ETFs could be quality options for investors

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you hunting for some ASX dividend shares to add to your income portfolio next week?

If you are, then take a look at the three listed below that brokers rate as buys.

Here’s what they are expecting from them in the near term:

Challenger Ltd (ASX: CGF)

Analysts at Goldman Sachs think that this annuities company could be an ASX dividend share to buy. The broker currently has a buy rating and $7.50 price target on its shares.

It likes “CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.”

As for income, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.74, this will mean dividend yields of 3.85%, 4%, and 4.15%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that has been named as a buy is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.

Morgans is a fan of the company. This is due to its belief that “DXI’s industrial portfolio remains robust with the outlook positive for rental growth.”

The broker expects this to support dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $3.02, this will mean dividend yields of 5.4% and 5.5%, respectively.

Morgans has an add rating and $3.18 price target on its shares.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a buy for income investors according to brokers is Transurban. It manages and develops urban toll road networks in Australia and the United States.

Citi is bullish due to its positive exposure to inflation. It has a buy rating and $15.50 price target on its shares.

Its analysts are also expecting some good yields from its shares in the near term. Citi is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.55, this will mean yields of 5.1% and 5.2%, respectively.

The post Brokers name 3 ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Buy these top ASX 300 dividend stocks today for an income boost
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• Are ASX REITs a good investment right now?
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs Group and Transurban Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are 4.2 million retirees in Australia today, and according to new research by life insurer TAL, 28% of them wish they’d spent their money more freely and enjoyed the early years of their retirement more.

A further 16% wished they’d worried less about saving their superannuation for a rainy day.

TAL has just released a research paper documenting what retirees wish they’d known before retiring.

Let’s delve deeper and discover the lessons this provides for pre-retirees still in the workforce today.

Retirement regret 1: Not planning well enough

The research shows 22% of current retirees are concerned their superannuation monies will run out. This has led to financial stress among 32% of retirees aged over 80 years as they draw down their savings.

The AFSA Retirement Standard provides guidance on how much Australians need for retirement.

It says Australian couples need $690,000 in superannuation, and singles need $595,000, plus full home ownership and a part-pension, to afford a ‘comfortable retirement’.

Alternatively, just $100,000 in superannuation for couples and singles, plus a part-pension and full home ownership, is enough for a ‘modest retirement’.

These figures assume retirees draw down their super capital and invest it with a return of 6% per annum.

According to the Australian Bureau of Statistics (ABS), superannuation is the main source of income for more than one in four retirees and at least one source of income for almost 40% of retirees.

Retirement regret 2: You may be forced to retire early

Many people expect to retire between the ages of 65 and 69 but 59% retired earlier, according to TAL.

This reinforces the need to plan ahead financially, as you may not have until your 60s to get organised.

A new report from the ABS reveals four of the top five reasons for retirement involve unforeseen circumstances. Examples include redundancy, injury, or having to care for someone else.

Ashton Jones, General Manager of Growth, Retirement & Wealth Partnerships at TAL, said:

When retirement arrives sooner than expected, it can derail a person’s ability to prepare as much as they’d like to.

Some common themes that emerged for retirees were that many wish they’d put more into superannuation when they had the chance, or that they’d started salary sacrificing earlier.

Financial advisory Findex says more than one in two Australians are unaware of the significant tax savings available through salary sacrificing or making extra personal contributions to their superannuation.

Retirement regret 3: Not expecting to live this long!

The TAL report reveals one-third of retirees expect to live longer than they anticipated when they first retired. TAL says this highlights the benefits of retirement products that pay an income for life.

Upon retiring, Australians typically take one of five actions with their superannuation nest eggs.

The most popular choice is converting super into a regular income stream via a pension account (34%). A further 27% left their money in their existing super account. A lump sum was taken by 15%. Finally, 18% moved some or all of their super monies into a lifetime retirement income stream, like an annuity.

Were retirees happy with the decisions they made?

With the benefit of hindsight, it seems many people would have made different financial choices in retirement.

The research showed 56% of retirees who withdrew all or most of their super were happy with that decision.

By contrast, 87% of retirees who moved their money into a lifetime income stream or pension account were happy with that call.

The post Retirement regret: What 1 in 4 Aussies wish they’d done after quitting work appeared first on The Motley Fool Australia.

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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.