Category: Stock Market

Australia is a world-renowned supplier of natural resources, and ASX 200 mining and energy shares are among the largest and most popular stocks on the market.

Investors view these ASX 200 large-cap stocks as solid investments providing good dividend income.

A key component in the earnings of these companies is commodity prices.

Miners are ‘price takers’, which means they sell the stuff they dig up for prices largely dictated by the global commodities markets.

That’s why we see ASX stock prices go up and down every day in line with commodity values.

If the iron ore price rises, it means companies like BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) will earn more, and this tends to push their share prices up.

So, it’s helpful to know if commodity prices are likely to go up or down over the short to medium term.

Of course, no one has a crystal ball, but every year, the Federal Department of Industry and Resources has a crack at forecasting how commodity values will change over the next five years.

Those forecasts have just been published, and we’ve got all the details for you.

FY24 to FY29 commodity price forecasts

Here are the price forecasts for 10 different commodities.

Iron ore price

FY24: US$103 per tonne (up from US$95 per tonne in FY23)
FY29: US$75 per tonne

Examples of ASX 200 iron ore shares: BHP, Fortescue, Rio Tinto Ltd (ASX: RIO)

Gold price

FY24: US$1,995 per ounce (up from US$1,831 per ounce in FY23)
FY29: US$1,909 per ounce

Examples of ASX 200 gold shares: Newmont Corporation CDI (ASX: NEM), Northern Star Resources Ltd (ASX: NST)

Copper price

FY24: US$8,258 per tonne (down from US$8,289 per tonne in FY23)
FY29: US$10,061 per tonne

Example of ASX copper shares: Sandfire Resources Ltd (ASX: SFR)

Lithium spodumene price

FY24: US$1,800 per tonne (down from US$5,174 per tonne in FY23)
FY29: US$1,231 per tonne

Examples of ASX lithium shares: Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO)

LNG price

FY24: $17 per gigajoule (down from $21 per gigajoule in FY23)
FY29: $12 per gigajoule

Brent crude oil price

FY24: US$84 per barrel (down from US$87 per barrel in FY23)
FY29: US$73 per barrel

Examples of ASX energy shares: Woodside Energy Group Ltd (ASX: WDS), Ampol Ltd (ASX: ALD)

Uranium price

FY24: US$85 per pound (up from US$51 per pound in FY23)
FY29: US$119 per pound

Examples of ASX uranium shares: Paladin Energy Ltd  (ASX: PDN), Boss Energy Ltd (ASX: BOE)

Metallurgical & thermal coal prices

Metallurgical

FY24: US$289 per tonne (up from US$277 per tonne in FY23)
FY29: US$207 per tonne

Thermal

FY24: US$135 per tonne (down from US$302 per tonne in FY23)
FY29: US$115 per tonne

Examples of ASX 200 coal shares: Whitehaven Coal Ltd (ASX: WHC), Yancoal Australia Ltd (ASX: YAL)

Alumina & aluminium prices

Alumina

FY24: US$341 per tonne (down from US$343 per tonne in FY23)
FY29: US$369 per tonne

Aluminium

FY24: US$2,204 per tonne (down from US$2,333 per tonne in FY23)
FY29: US$2,685 per tonne

Examples of ASX alumina shares: Alumina Limited (ASX: AWC), South32 Ltd (ASX: S32)

Nickel price

FY24: US$17,889 per tonne (down from US$23,911 per tonne in FY23)
FY29: US$20,950 per tonne

Example of ASX nickel shares: IGO Ltd (ASX: IGO)

The trends driving commodity values

There is a clear main trend in this year’s numbers. Commodity prices are more likely to rise for the metals and minerals essential to the green energy transition, such as copper, which is used for electrification.

This will directly benefit ASX 200 mining shares specialising in the red metal.

Minister for Resources Madeleine King said commodities would continue to underpin Australia’s economic wellbeing.

While global prices are easing, the March 2024 Resources and Energy Quarterly shows demand is likely to be sustained for commodities used in low emissions technologies, including iron ore, copper, aluminium and lithium. The road to net zero runs through Australia’s resources sector.

Another trend is the rising demand for resources from India.

While demand from China will continue to drive commodity prices, India is expected to need a lot more resources as it industrialises. The Indian economy is the fastest growing in the world right now.

The post Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Invest $6,000 in Fortescue shares and get $502 in passive income
• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Rio Tinto stock on Thursday?
• Why is the South32 share price having such a cracker run today?

Motley Fool contributor Bronwyn Allen has positions in Alumina, BHP Group, Core Lithium, South32, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) returned to form after a selloff on Wednesday. The benchmark index rose 0.45% to 7,817.3 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 poised to sink

The Australian share market looks set to end the week deep in the red following another poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 50 points or 0.65% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.25%, the S&P 500 is down 1%, and the NASDAQ is down 1.1%. Nervous investors were selling down stocks ahead of the US jobs report.

Oil prices rise again

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 1.45% to US$86.66 a barrel and the Brent crude oil price is up 1.6% to US$90.81 a barrel. Oil prices rose amid reports that Israeli embassies have been put on high alert after Iran vowed to retaliate over a missile strike on its consulate in Damascus this week.

BHP and Rio Tinto likely to fall

It looks set to be a tough session for BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares on Friday after iron ore prices weakened again. The spot price of the benchmark 62% fines iron ore is down 1.5% to US$98.00 a tonne. This led to both mining giants’ NYSE listed shares dropping almost 2% during last night’s session.

Gold price edges lower

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$2,314.5 an ounce. Traders appear to have been locking in gains after the precious metal reached a record high.

Dividend payday

A number of ASX 200 shares will be rewarding their shareholders with their latest dividend payments today. Among the companies making dividend payments are airport operator Auckland International Airport Limited (ASX: AIA), corporate travel specialist Corporate Travel Management Ltd (ASX: CTD), gold miners Evolution Mining and Perseus Mining Ltd (ASX: PRU), hospital operator Ramsay Health Care Ltd (ASX: RHC). The latter is paying its shareholders a 40 cents per share fully franked dividend.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Rio Tinto stock on Thursday?
• How this unexpected development in China could boost ASX 200 mining stocks
• What’s happened to ASX travel shares since COVID ended?
• Top brokers name 3 ASX shares to buy 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 positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Looking for an income boost? Well, the good news is that brokers have just named a number of ASX 300 dividend shares as buys for income investors.

For example, three that could be worth considering are listed below. Here’s what sort of passive income you could expect to receive from their shares with a $10,000 investment:

Deterra Royalties Ltd (ASX: DRR)

Morgan Stanley thinks that Deterra Royalties could be an ASX 300 dividend share to buy.

It manages a portfolio of royalty assets across a range of commodities. This includes royalties held over its cornerstone asset, Mining Area C, in the Pilbara region of Western Australia, which is operated by BHP Group Ltd (ASX: BHP).

Morgan Stanley currently has an overweight rating and $5.60 price target on its shares.

As for income, the broker is expecting Deterra Royalties to pay fully franked dividends per share of 37 cents in FY 2024 and 34 cents in FY 2025. Based on the current Deterra Royalties share price of $4.91, this will mean yields of 7.5% and 6.9%, respectively.

This means that a $10,000 investment would generate approximately $725 of passive income over the next 12 months if Morgan Stanley’s forecasts are on the money.

Dexus Industria REIT (ASX: DXI)

Analysts at Morgans think that Dexus Industria could be an ASX 300 dividend share to buy. It is a real estate investment trust that invests in high quality industrial warehouses across Australia.

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

In respect to income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.97, this will mean dividend yields of 5.5% and 5.6%, respectively.

If this proves accurate, a $10,000 investment would generate approximately $550 of passive income over the next 12 months.

Super Retail Group Ltd (ASX: SUL)

Finally, Super Retail could be an ASX 300 dividend share to buy according to analysts at Goldman Sachs. It is the name behind popular retail brands BCF, Macpac, Rebel, and Supercheap Auto.

Goldman currently has buy rating and $17.80 price target on its shares.

As for income, the broker is expecting Super Retail’s strategic growth plan to underpin fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $15.49, this will mean yields of 4.3% and 4.7%, respectively.

This suggests that a $10,000 investment would generate in the region of $450 of passive income over the next 12 months.

The post $10,000 invested in these ASX 300 dividend shares would generate this much passive income appeared first on The Motley Fool Australia.

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More reading

• Are your big ASX 200 mining dividends in for a chop?
• 3 ASX income shares to buy for a dividend boost
• 3 top income-focused ASX shares to buy before April
• Buy these ASX dividend stocks for an income boost
• Analysts say these excellent ASX income shares are buys

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

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Fortescue Metals Group Ltd (ASX: FMG) shares have been favourites among passive income investors over the past five years for the company’s juicy fully franked dividends.

The S&P/ASX 200 Index (ASX: XJO) mining stock reported its half-year results for FY 2024 on 22 February, which included a big boost in its interim dividend.

Below, is a quick recap of the highlights, along with the passive income potential on tap from this ASX 200 dividend beast.

Fortescue shares deliver boosted passive income

Fortescue shares enjoyed a lift after reporting some strong metrics for the six months ending 31 December (1H FY 2024).

Those included a 21% year on year increase in revenue to US$9.5 billion. And underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of US$5.9 billion was up 36% from the prior corresponding half year.

This helped drive a 41% increase in net profit after tax (NPAT), which came in at US$3.3 billion for the six months.

This saw management declare a fully franked interim dividend of AU$1.08 per share, up a whopping 44% from the prior interim dividend.

The interim dividend represents a 65% payout of the ASX 200 miner’s H1 FY 2024 NPAT. That’s in line with Fortescue’s dividend policy to pay out 50% to 80% of its full-year underlying NPAT.

Eligible investors (those who held Fortescue shares at market close on 27 February) will have seen that passive income hit their bank accounts on 27 March, right on time for the Easter holiday break.

Commenting on the boosted interim dividend at the time, Fortescue CEO Dino Otranto said, “The strength of our operating and financial performance and our commitment to deliver returns to shareholders has resulted in the board today declaring a fully franked interim dividend of AU$1.08 per share, representing a 65% payout of first half net profit after tax.”

Otranto added:

Whether it’s through our first green energy projects, our diversification into the high-grade segment of the iron ore market through Iron Bridge, or expansion of our global footprint with the Belinga Iron Ore Project in Gabon, we remain committed to creating value for all our stakeholders.

Fortescue shares also delivered a final dividend of $1.00 per share, which was paid out on 28 September. The total payout amounted to US$2.0 billion.

All told then, the ASX 200 miner paid a total of $2.08 per share in passive income over the past 12 months.

At the recent share price of $24.88, that works out to a fully franked trailing yield of 8.4%.

Now future dividends may be higher or lower based on a range of company-specific and macroeconomic factors.

But based on these dividend payouts, a $6,000 investment today would net me $501.60 in annual passive income.

Of course, we’ll be hoping for some share price gains as well.

The Fortescue share price is up 13% over the last year and up 218% over five years.

If you’re thinking about buying Fortescue shares for passive income, make sure to do your own research first. Or simply reach out for some expert advice.

The post Invest $6,000 in Fortescue shares and get $502 in passive income appeared first on The Motley Fool Australia.

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More reading

• How this unexpected development in China could boost ASX 200 mining stocks
• Are your big ASX 200 mining dividends in for a chop?
• Here is the profit forecast to 2026 for Fortescue shares
• I’d spend $8k on these ASX 200 shares today to target a $6,102 annual passive income
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?

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

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ASX dividend shares that pay good dividend yields can be really appealing investments for cash flow.

But how do you find the best investment options? One metric that can help is the price/earnings (P/E) ratio. It tells us what multiple of its earnings a company is trading at — the higher the number, the more expensive it appears to be.

Companies that are priced on a low P/E ratio can have a high dividend yield. Bear in mind that some industries typically trade on a higher P/E ratio, like technology, while others, such as retail and fund managers, usually trade on a lower P/E ratio.

I would also look for businesses that can grow their earnings over the longer term because they can sustain the current dividend and potentially help push the payouts higher.

Let’s look at three companies that I think fit this criteria.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a number of “premium youth fashion brands”. Its main retail businesses are Universal Store and CTC (which operates the THRILLS and Worship brands). The ASX dividend share is also rolling out Perfect Stranger as a standalone retail business.

The company has 100 stores and continues to open more – launching six new stores in the first half of FY24. HY24 saw sales rise 8.5% to $158 million, while the statutory net profit after tax (NPAT) grew by 16.7% to $20.7 million.

The company has demonstrated it can still grow earnings in this high-cost-of-living environment. It grew its interim dividend per share by almost 18% to 16.5 cents per share.

Estimates on Commsec suggest the business could pay a grossed-up dividend yield of 7.4% in FY25 and 8.3% in FY26.

Accent Group Ltd (ASX: AX1)

Accent is another ASX retail share that sells a wide array of shoes from different brands. It acts as the distributor for a number of global brands, including CAT, Dr Martens, Henleys, Herschel, Hoka, Kappa, Merrell, Skechers, Ugg and Vans.

The company also has its own businesses, including The Athlete’s Foot, Trybe, Stylerunner, Nude Lucy and Glue Store.

Accent continues to roll out new stores, which increases its potential earning power, particularly when retail conditions rebound in the next couple of years.

Everyone needs shoes, so Australia’s growing population is a useful tailwind for this ASX dividend share.

The current forecast on Commsec suggests Accent shares could have a grossed-up dividend yield of 8.3% in FY25 and 10.3% in FY26.  

GQG Partners Inc (ASX: GQG)

GQG is a US-headquartered fund manager that provides a number of different investment funds for people including US shares, global and international shares, and emerging markets.

Its funds under management (FUM) is growing from a combination of pleasing long-term investment performance and regular net inflows of more investor money.

The business has committed to a dividend payout ratio of 90% of distributable earnings, leading to a pleasing quarterly dividend.

The estimate on Commsec suggests it could pay a dividend yield of 9% in FY25.

The post Get paid huge amounts of cash to own these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• 5 excellent ASX dividend stocks to buy in April
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• 2 Australian dividend shares to buy under $2

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

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There are several lasting impacts from COVID for shares vs. property, with the days of ultra-low inflation and interest rates and expanding globalisation likely behind us.

So, what does this mean for investors with money in shares and property?

In this article, AMP chief economist and head of investment strategy Dr Shane Oliver outlines some of COVID’s ongoing economic impacts, and we provide our take on how they affect shares and real estate.

The COVID effect on shares vs. property

1. Bigger government and more public debt

Dr Oliver says more people want the government to solve all problems through greater regulation, taxes, spending or education campaigns. Many people favour the return of some manufacturing to home soil, and the energy sector wants subsidies to help fund green projects.

Impact on shares vs. property: Dr Oliver thinks this could lead to less productive economies and lower living standards, neither of which supports equity values and property prices.

2. Tighter labour markets and faster wage growth

High levels of underemployment in Australia contributed to many years of low or no wage growth, says Dr Oliver. After the pandemic, the labour market tightened and wages are growing. The risk is that wage growth gets too strong to keep inflation within the Reserve Bank’s target band of 2% to 3%.

Impact on shares vs. property: Wage rises are a big cost to business, however, strong employment keeps property prices stable and is a factor in low home loan arrears today.

3. Higher prices, inflation and interest rates

Dr Oliver notes that inflation is coming down, but COVID has created a “more inflation-prone world” through things like a push for less globalisation, which would increase product manufacturing costs.

Impact on shares vs. property: Higher inflation means higher interest rates over the medium term. Generally, speaking, neither is good for shares or real estate.

4. Worse housing affordability

Australian home prices surged to record levels during COVID, but higher interest rates have put pressure on mortgagees. At the same time, we have a housing shortage with projects delayed due to higher costs and labour shortages. Meantime, surging immigration has added new demand for housing.

Impact on shares vs. property: The housing shortage is pushing property prices higher, benefitting current owners. But it also means some businesses operating in regional areas, like renewable energy providers, can’t attract workers because there isn’t enough local housing available.

5. Working from home likely here to stay

Dr Oliver says working from home is more prevalent among white-collar workers with computer-based jobs. He reckons the ideal arrangement is a hybrid model. This ensures some productivity control for businesses while meeting workers’ demands for flexibility.

Impact on shares vs. property: Less demand for office space is resulting in lower commercial property valuations, higher vacancies and lower rents. This is problematic for some ASX REITs. Some businesses have been able to downsize their corporate offices, meaning lower costs. Workers’ return to CBDs has led to more demand for inner-city apartments among residential renters and buyers.

6. Faster embrace of technology

COVID turbocharged the digital economy. It forced retailers to go online and enabled tech companies to sell new products enabling better workforce management.

Dr Oliver said:

It may be argued that this fuller embrace of technology will enable the full productivity-enhancing potential of technology to be unleashed. The rapid adoption of AI will likely help.

Impact on shares vs. property: Artificial intelligence may be a productivity game changer for businesses, leading to greater efficiencies and potentially greater earnings. Meantime, property conveyancing is now electronic with the advent of digital exchange platforms like PEXA Group Ltd (ASX: PXA).

The latest news in shares vs. property 

The S&P/ASX 200 Index (ASX: XJO) rose by 2.57% in the month of March, while Australian home values rose by 0.6%, according to CoreLogic data.

Perth is the strongest metro property market in the country right now, with home values up 1.9% in March. Regional Western Australia is the strongest regional market with 2.1% growth in March.

Meantime, the ASX 200 share with the highest price rise was Life360 Inc (ASX: 360), up 63.42%.

West African Resources Ltd (ASX: WAF) shares rose 39.53% and Ramelius Resources Ltd shares (ASX: RMS) lifted 32.86%.

The post COVID’s lasting impacts for shares vs. property: AMP economist appeared first on The Motley Fool Australia.

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• 3 Australian shares quietly crushing the ASX this year
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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 positions in and has recommended Life360 and PEXA Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• Why is the South32 share price having such a cracker run today?
• This ASX 200 stock is down 11% in under a month. Should you buy before it trades ex-dividend?
• Why Imugene, Liontown, Pointsbet, and Regis Resources shares are storming higher
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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 positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rio Tinto Ltd (ASX: RIO) stock price is hardly making waves today. Yet, plenty of talk about the mining giant is being had regardless.

Shares in the metals and minerals titan are down a smidgen, slipping 0.8% to $122.09 as waltz into the closing moments of trade. The move contrasts the 0.4% rise in the S&P/ASX 200 Index (ASX: XJO), which is being hoisted higher with the help of tech and real estate shares.

Why are investors fussing over Rio Tinto shares amid the modest move?

On the chopping block

Rio Tinto is at risk of losing one of its largest shareholders.

The fifth biggest chunk of Rio Tinto ownership is held by the world’s largest sovereign wealth fund, the Government Pension Fund of Norway, held by the Norges Bank Investment Management. The position is valued at A$3.2 billion and accounts for 1.9% of all Rio Tinto shares on issue.

The Norwegian fund operates under strict ethical guardrails, excluding any company that violates its ethical criteria. This examination is conducted by Norway’s Council of Ethics, which then provides its recommendation to the investment fund.

According to The Wall Street Journal, the ethics council questions whether Rio Tinto is investable. Reportedly there has been communication between the mining company and the Council of Ethics where environmental damage in the Brazilian Amazon is being raised as a concern.

Moreover, it is believed that the Rio Tinto stock may be tarnished by its partial ownership of Mineração Rio do Norte (MRN). The northern Brazilian bauxite miner is also reportedly bringing forward the same headache for South32 Ltd (ASX: S32), with a 33% stake in MRN on its books.

A recommendation by the Council of Ethics has yet to be made. However, it wouldn’t be the first time if Rio Tinto gets booted from the Norway fund.

Rio Tinto was ousted from the fund in 2008 due to the risk of severe environmental damage related to its Grasberg mine in Indonesia. The company was then readmitted to the Government Pension Fund of Norway in 2019 after Rio Tinto agreed to sell its interest in the mine.

Is Rio Tinto stock a top performer?

Would the Norwegian fund be passing up a top-performing ASX 20 stock if it were to jump ship?

The S&P/ASX 20 Index (ASX: XTL) has climbed 7.4% over the last year. Meanwhile, the Rio Tinto share price has increased by a lesser 3.5%. Only six companies inside the top 20 have delivered a weaker return:

• BHP Group Ltd (ASX: BHP) — down 1.1%
• CSL Ltd (ASX: CSL) — down 3.7%
• Transurban Group (ASX: TCL) — down 8.9%
• Telstra Group Ltd (ASX: TLS) — down 10.2%
• Woodside Energy Group Ltd (ASX: WDS) — down 10.9%
• Woolworths Group Ltd (ASX: WOW) — down 15.4%

Indeed, Rio Tinto’s stock is far from being the top performer in the last year. That title instead goes to James Hardie Industries Plc (ASX: JHX) with its 87.7% gain.

The post Why is everyone talking about Rio Tinto stock on Thursday? appeared first on The Motley Fool Australia.

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More reading

• How this unexpected development in China could boost ASX 200 mining stocks
• Should I buy BHP or Rio Tinto shares in April?
• 5 excellent ASX dividend stocks to buy in April
• Are your big ASX 200 mining dividends in for a chop?
• Why are Rio Tinto shares outperforming the market on Wednesday?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for some new additions to your portfolio but aren’t a fan of stock picking? If that’s you, then could be worth looking at ASX ETFs.

There are plenty of ETFs for investors to choose from on the Australian share market. But which of the many options out there could be great picks for a portfolio this month?

Let’s take a closer look at three ETFs and see why they could be worth considering for your portfolio right now:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ASX ETF for investors to look at is the Betashares Global Cash Flow Kings ETF. It aims to track the performance of an index comprising 200 global companies that demonstrate strong free cash flow.

Betashares highlights that companies that generate high levels of free cash flow historically have tended to outperform broad global equity benchmarks over the medium to long term.

The fund manager recently tipped the ETF as a buy for investors looking for growth options when interest rates fall. It believes the “fund can serve as a core exposure to global equities or alongside existing low-cost passive global ETFs to enhance a portfolio’s emphasis on cash-generating companies.”

Among its holdings are companies such as Ozempic owner Novo Nordisk, retail giant Costco, technology company Adobe, and cybersecurity leader Accenture.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ASX ETF that could be a great option for investors is the huge popular BetaShares NASDAQ 100 ETF.

This fund gives investors easy access to 100 of the largest non-financial shares on the famous NASDAQ index.

This includes many of the world’s largest tech companies and household names such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). And given how bright the collective outlooks of its holdings are, it would not be surprising to see this ETF continue to deliver market-beating returns long into the future.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF that could be a high quality option for investors is the VanEck Vectors Morningstar Wide Moat ETF.

This fund invests in a group of companies that have wide moats (sustainable competitive advantages) and fair valuations. When legendary investor Warren Buffett searches for investments for Berkshire Hathaway (NYSE: BRK.B), these are the qualities that he looks for.

And with Buffett and Berkshire Hathaway smashing the market since all the way back in 1965, it certainly could pay to follow Buffett’s lead.

Its holdings currently include Alphabet, Estee Lauder, Campbell Soup, Nike, and Etsy.

The post 3 of the best ASX ETFs to buy now appeared first on The Motley Fool Australia.

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More reading

• If you start investing today, when could you retire?
• Why I’d buy VanEck Morningstar Wide Moat ETF (MOAT) for anyone in my family
• 3 excellent ASX ETFs for smart investors in April
• How to become a millionaire on a $70,000 salary
• Which ASX ETFs give Aussie investors access to US stocks?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Accenture Plc, Adobe, Alphabet, Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Costco Wholesale, Etsy, Microsoft, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and has recommended the following options: long January 2025 $290 calls on Accenture Plc, long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, short January 2025 $310 calls on Accenture Plc, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Alphabet, Apple, Berkshire Hathaway, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a fairly pleasant Thursday for the S&P/ASX 200 Index (ASX: XJO) so far. At the time of writing, the ASX 200 has gained a rosy 0.44%, lifting the index back over 7,800 points. But that’s nothing compared to what the South32 Ltd (ASX: S32) share price is doing.

South32 shares are on fire today. This ASX miner closed at $3.03 a share yesterday afternoon. But this morning, those same shares opened at $3.09 and are currently up a huge 3.63% at $3.14 each.

This will no doubt come as a much-needed confidence booster for South32 investors. This lot has had a rough trot of late, with the South32 share price still down around 6.8% over 2024 so far, as well as down a painful 28.1% over the past 12 months.

But why is this diversified miner – with operations in aluminium, gold, manganese, copper, lead, zinc and silver – enjoying such a boost from investors today?

Why is the South32 share price popping today?

Well, it’s not entirely clear. There hasn’t been any fresh news or announcements out of South32 for a couple of weeks now. Today happens to be South32’s dividend payday. So shareholders are no doubt enjoying watching the 0.605 cents per share fully-franked dividend payment roll in today.

But this is unlikely to be why South32 shares are vaulting so enthusiastically. One possible explanation is high commodity prices. South32 may be a highly diversified miner. But today, we’ve seen many resources jump in price, including oil, gold, coal and copper. Gold and copper are also both near their most recent 52-week highs (all-time highs in gold’s case).

This could conceivably be influencing investor behaviour today.

Another factor to consider is the recent love coming from ASX brokers.

Earlier this week, my Fool colleague Bronwyn examined some recent strong buy recommendations from ASX brokers over March. One was for South32, which Morgans upgraded to a strong buy. The broker also gave the miner a 12-month share price target of $4.10. This would see investors enjoy an upside of more than 30% if realised.

Morgans justified this bullish outlook by stating the following:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile.

So it might be a combination of these two factors that are resulting in the big gains for the South32 share price that are currently on display.

They come despite some more damaging news in the ASX mining space as well.

Rio (and South32) facing possible sovereign wealth fund exclusion

As reported by The Wall Street Journal, South32’s mining compatriot Rio Tinto Ltd (ASX: RIO) is currently negotiating with the Norwegian Sovereign Wealth Fund regarding the Fund’s ongoing investment in the company. Norway’s Sovereign Wealth Fund is notoriously strict on ethical standards and which companies it invests in. It has pulled out of Rio shares in the past.

And according to the report, it might do so again. The Fund is reportedly “examining whether to… sell its multibillion-dollar stake in miner Rio Tinto because of environmental concerns”. As of 31 December, the Fund had a 2.24% stake in Rio Tinto.

This is relevant for South32 because the Fund is also reportedly examining its 2.16% stake in the company. If the Fund did decide to sell out of either Rio or South32, it would probably create significant downward pressure on share prices, given the size of these stakes.

But that doesn’t seem to be bothering South32 investors today. Let’s see where the company heads next.

The post Why is the South32 share price having such a cracker run today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 7 ASX All Ords shares elevated to ‘strong buy’ status in March
• These ASX 200 shares could rise 20% to 40%
• These ASX 200 shares could rise 20% to 50%
• Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

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.

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