Category: Stock Market

Life360 Inc (ASX: 360) shares have been soaring over the last couple of years.

Thanks to its explosive revenue and earnings growth, the ASX tech stock has risen approximately 300% since this time in 2022.

This means that if you had been lucky enough to have invested $10,000 into the location technology company’s shares two years ago, your investment would have grown to be worth $40,000 today.

But if you thought this ASX stock was now peaking, think again. That’s the view of analysts at Bell Potter, which believe Life360 shares can keep rising from current levels.

What is the broker saying about this high-flying ASX stock?

According to a recent note, the broker has responded to Life360’s first quarter update by reiterating its buy rating with a price target of $17.75.

Based on its current share price of $14.80, this implies potential upside of 20% for this ASX stock over the next 12 months. If this proves accurate, it would turn a $10,000 investment into approximately $12,000.

Bell Potter likes Life360 due to the resilience of its business and potential to continue growing strongly in the future. It said:

Life360 has c.1.9m paying circles – the best measure of subscriber numbers – and managed to grow this base by 39% in 2021, 23% in 2022 and 21% in 2023 despite the disruptions associated with COVID-19. This growth shows resilience in the subscriber base and, furthermore, the potential for continued strong growth in the base with market conditions now back to normal.

In addition, the broker highlights that the ASX stock has the potential to enter and disrupt other markets. It adds:

Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.

Potential re-rating

In light of the above and given the valuation of a peer, the broker believes that this ASX stock deserves to trade on higher multiples. Particularly given its plan to list on Wall Street in the near future. It concludes:

We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the higher multiples of comps like Reddit (NYSE: RDDT). There is, however, no change in the 9.3% WACC we apply in the DCF. The net result is a 9% increase in our PT to $17.75 which is >15% premium to the share price so we maintain our BUY recommendation. Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2 and a US listing at some stage in the next 12 months.

The post Check out this soaring ASX stock, up 300% in 2 years, with more gains likely to come appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.

Coles Group Ltd (ASX: COL) shares have been a popular option for income investors since landing on the ASX boards in 2018 following a divestment by Wesfarmers Ltd (ASX: WES).

It isn’t hard to see why the supermarket giant features in countless income portfolios and superannuation funds across the country.

Given the nature of its business, Coles has defensive earnings. This means that its earnings are resilient and often grow even in the toughest economic environments.

For example, the Coles dividend was one of only a handful that continued to grow during the COVID pandemic.

It has continued to grow since then, with the Coles board declaring a 66 cents per share fully franked dividend in FY 2023.

This represents an 80% payout ratio, which was in line with its dividend policy of paying out 80% to 90% of earnings. Management notes that this policy allows Coles to reward its shareholders while also enabling it to retain strategic flexibility.

But that dividend has been paid now. So, what’s next for the Coles dividend? Let’s see what analysts are forecasting for the supermarket giant.

Coles dividend forecast

Interestingly, analysts actually expect the Coles dividend to be lower year on year in FY 2024 for the first time since its listing.

For example, Goldman Sachs is forecasting a fully franked dividend of 65 cents per share for the financial year.

Based on the current Coles share price of $16.07, this will mean a 4% dividend yield for investors.

Goldman then expects another dividend cut to 64 cents per share in FY 2025 due to softening profit margins. This would mean a dividend yield of just under 4% for investors that year.

The good news is that the broker believes that a return to growth will take place in FY 2026 thanks to a rebound in its profit margins.

Goldman is expecting the Coles dividend to come in at a fully franked 72 cents per share. This represents a 12.5% increase year on year and equates to an attractive 4.5% dividend yield.

Should you buy Coles shares?

Goldman is currently sitting on the fence when it comes to Coles shares.

The broker recently upgraded the retailer’s shares to a neutral rating with a $16.30 price target. This is a touch higher than where they trade today.

The broker feels that the Coles share price is fairly valued at current levels. It said:

In our opinion, whilst COL has under-invested in its digital transformation and omni-channel strategy, we believe 1) COL has made encouraging steps to address under-investment with key Witron facilities now operating 2) whilst Ocado facilties have been delayed, risks of further delay are more limited. We expect COL to report lower comps sales and EBIT margin growth in FY25/26 vs key competitor WOW, though execution under new CEO has been increasingly positive. COL is trading below long term 12m forward P/E but with double running cost associated with Witron/Ocado facilities alongside existing infrastructure, we believe this is fair value. We are Neutral rated on COL.

The post Here’s the Coles dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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• How Warren Buffett’s advice is guiding the ASX shares I’m buying in 2024
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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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If we invest in the right places, we can unlock a high level of future income. Hence, I’m a fan of buying cheap ASX dividend shares with solid yields.

When a business’ share price trades at a lower level than its underlying net asset value (NAV), it can mean the dividend yield is appealing because the market may be undervaluing the cash flow the businesses are distributing to shareholders.

In a world where interest rates are still very high, I’d want to see the stocks I’m investing in for passive future income have a good dividend yield. With that in mind, below are two that tick my investment boxes.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that’s invested in an exciting area of the commercial property market: industrial property.

According to Centuria, businesses are reportedly expanding their supply chains and capabilities in Australia following the disruptions since the onset of COVID-19. That requires large warehouses, which the REIT provides.

The ASX dividend share is seeing enormous organic revenue growth. In the three months to 31 March 2024, the business reported positive re-leasing spreads of 50% in the year to date. In other words, for its newly signed contracts, the business is receiving 50% more rent for the same properties than it was before on the previous contract.

That level of rental growth isn’t guaranteed to continue forever, but it shows the high demand for this type of property in Australia’s cities.

At 31 December 2023, the business had a NAV per unit of $3.89, which means the current share price is at a discount of around 20% to the NTA. I think that makes it a cheap ASX dividend share.

It expects to pay a distribution of 16 cents per unit in FY24, which would be a distribution yield of approximately 5%.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is a technology company that aims to invest in some of the most promising private software and technology businesses.

The technology investment business usually invests in businesses that are run by the founders, have a proven business model with attractive unit economics, and generate international revenue as well as repeat revenue.

Bailador aims to pay a dividend yield equivalent to 4% of its pre-tax NTA. This translates to a targeted yield of 5.7%, grossed-up for franking credits.

The business is at a 34% discount to its pre-tax NTA, it looks like a very cheap ASX dividend share to me. That means the actual cash yield, based on the April 2024 pre-tax NTA, could be 6% with a grossed-up dividend yield of 8.6% due to that large NTA discount.

Bailador recently expanded its portfolio and announced a $20 million investment in Venture Startups International, which operates Updoc, a digital healthcare platform that connects consumers who need medical services with registered health practitioners via a telehealth offering. It offers advice, online prescriptions, specialist referrals, pathology referrals and medical letters.

Since its inception, Updoc has served over 200,000 consumers, so it has a sizeable scale. Updoc will use the $20 million to accelerate the development of its products and support continued expansion.

The post 2 cheap ASX dividend shares I’d buy now for future income appeared first on The Motley Fool Australia.

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• Here’s how I’d target a $2,000 second income by investing $35 a week
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Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Much to the relief of its shareholders, Sayona Mining Ltd (ASX: SYA) shares have been on fire in recent weeks.

So much so, the lithium miner’s shares have risen 43% since this time last month.

To put that into context, a $10,000 investment at the end of April would now be worth over $14,000.

Why are Sayona Mining shares racing higher this month?

There may be a couple of reasons for this strong gain.

The first could be some investors believing that the ASX lithium stock has been oversold over the last 12 months.

For example, even after rising 43% over the last 30 days, Sayona Mining shares are down almost 80% since the end of May 2023.

What else?

In addition, there have been a couple of positive announcements out of the company this month that have got investors excited.

The first was the announcement of the discovery and expansion of new mineralised zones at Sayona Mining’s North American Lithium (NAL) operation in Canada.

Management notes that the newly discovered zones are poised to become a focal point for NAL’s assessment of future mining options.

Initial assessments indicate the presence of high-grade lithium mineralisation outside the mineral resources estimate (MRE) pit shell. The company believes this could represent a substantial addition to NAL’s resource portfolio and may contribute to extending NAL’s life of mine.

Sayona’s interim CEO, James Brown, commented:

We are very excited by these new discoveries at North American Lithium which highlights the potential of this asset with high-grade mineralisation defined to the north-west, north-east, south-east and below the existing MRE. The team at NAL will now be working to update the Mineral Resource incorporating these significant results. We look forward to continue testing the mineralisation at NAL with further drilling underway.

Moblan update

Another announcement that may have caught the eye of investors relates to the company’s Moblan Lithium Project, which is also in Canada.

Earlier this week, the company announced the results of 94 new drillholes. Management believes the results reinforce the project’s status as the centrepiece of Sayona’s Eeyou-Istchee James Bay hub in northern Quebec. In addition, management feels the results highlight its potential to expand the existing mineral resource base at Moblan.

Brown commented:

We are delighted with the thick, high-grade drilling results at Moblan confirming it is one of the premier hard rock lithium deposits in North America. Most excitingly, it is clear there remains considerable potential for further expansion of the deposit which is open in all direction.

Moblan forms the centrepiece of our James Bay lithium hub and has an extremely bright future supplying Quebec-produced lithium derivatives into the expanding North American battery and EV sector.

All in all, it has been a great month for Sayona Mining shares and its shareholders. Here’s hoping the company can build on this in June and beyond.

The post Why are Sayona Mining shares up 43% in a month? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares

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.

Qantas Airways Limited (ASX: QAN) shares have rallied strongly since the start of March.

During this time, the airline operator’s shares are up approximately 15%.

Whereas over the same period, the ASX 200 index has traded broadly flat.

But despite this outperformance, analysts at Goldman Sachs believe that Qantas shares are undervalued at current levels.

What is the broker saying about Qantas shares?

According to a note out of Goldman Sachs this morning, its analysts have reiterated their buy rating and $8.05 price target on the Flying Kangaroo’s shares.

Based on the current Qantas share price of $5.91, this implies potential upside of 36% over the next 12 months.

To put that into context, a $10,000 investment would turn into approximately $13,600 if Goldman is on the money with its recommendation.

Why is Goldman bullish?

The note reveals that the broker believes the market is undervaluing Qantas’ structurally stronger earnings.

It thinks this has been driven partly by a trade off between investment and capital returns. Goldman sees this as “a buying opportunity” for investors. It explains:

We expect QAN’s earnings capacity to structurally improve (due A$1b+ cost out program), with FY24e PBT 51% ahead of pre-COVID levels. In addition, current ongoing customer investment is gaining traction (improved operating performance), alleviating concerns and key downside risk. The discounted valuation versus peers and its own history implies that the market is pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks), which we view as a buying opportunity.

Dividends to return

Another reason to be positive on Qantas shares is the prospect of its dividends returning soon.

Goldman acknowledges that Qantas has some big spending to do on its fleet in the coming years. However, it believes that the company’s balance sheet will remain strong and allow the company to resume paying dividends and return capital.

Across FY25-27, we forecast A$11.3bn of capex (cumulative), in-line with consensus estimate. Despite this spend and our forecast distributions, we estimate that QAN’s ND:EBITDA will remain below within its target range across the forecast period. In our view, this should allow for continued capital returns to shareholders alongside fleet renewal. Over the three-year horizon (FY25-27e), we forecast total buy-backs and dividend payments of A$1.6bn. This includes A$1.2bn of dividends vs consensus of A$1.1bn.

The broker is forecasting dividends of 30 cents per share in both FY 2025 and FY 2026. Based on its current share price, this will mean above-average dividend yields of 5.1% for both years.

The post Why Qantas shares are cheap and now is ‘a buying opportunity’ appeared first on The Motley Fool Australia.

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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 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.

The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular way to indirectly invest in S&P/ASX 300 Index (ASX: XKO) shares. Plenty of Aussies may like to receive dividends with franking credits from ASX 300 shares.

Exchange-traded funds (ETFs) allow investors to buy a portfolio of businesses in just one investment. ETFs act as a conduit to pass on the dividends they receive to unitholders of the ETF.

There are plenty of businesses within the ASX 300 that pay fully franked dividends including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Telstra Group Ltd (ASX: TLS). Does that mean the VAS ETF pays fully franked dividends too?

Franking level of VAS ETF dividend payouts

The Vanguard Australian Shares Index ETF dividend yield is dictated by the yield of the underlying holdings, leading to an overall yield from all of the businesses. For example, the high dividend yield of National Australia Bank Ltd (ASX: NAB) pushes up the VAS yield and the low yield of CSL Ltd (ASX: CSL) shares hurts the ETF’s yield.

According to Vanguard, the VAS ETF had a dividend yield of 3.7% at the end of April when taking into account all of the dividend yields within the ASX 300.

The franking level of the Vanguard Australian Shares Index ETF distributions is influenced by the franking level of its holdings’ dividends.

Some ASX shares within the VAS ETF portfolio don’t pay fully franked dividends, so the ETF is unable to pay fully franked distributions. Examples of unfranked income payers include CSL, Goodman Group (ASX: GMG), James Hardie Industries plc (ASX: JHX) and Resmed CDI (ASX: RMD).

Every three months, the fund pays out the dividends it has received, so the franking credit level varies depending on the ASX shares.

Latest distribution

Let’s briefly look at the latest distribution from the VAS ETF, with Vanguard providing a tax estimate.

For the period ending 31 March 2024, the quarterly payment was 84.79 cents per unit. Of this, 66.3 cents were franked dividends and 9 cents were unfranked dividends. The rest of the distribution comprised other forms of income.   

Vanguard reported 29.33 cents of franking credits per unit were attached to the distribution, which are an additional return to investors and can be accessed when investors do their FY24 tax return.

The next distribution will depend on what dividends the VAS ETF receives from its investments.

The post Does Vanguard Australian Shares Index ETF (VAS) pay fully franked dividends? appeared first on The Motley Fool Australia.

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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 CSL, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Telstra Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session after inflation came in hotter than expected. The benchmark index sank 1.3% to 7,665.6 points.

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

ASX 200 expected to fall again

The Australian share market looks set for another tough session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.65% lower this morning. In the United States, the Dow Jones was down 1.1%, the S&P 500 fell 0.75% and the Nasdaq tumbled 0.6%.

Oil prices fall

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$79.01 a barrel and the Brent crude oil price is down 1.1% to US$83.30 a barrel. This decline was driven by concerns over US gasoline demand.

BHP’s Anglo American takeover is off

The BHP Group Ltd (ASX: BHP) share price will be on watch after Anglo American (LSE: AAL) refused to grant the miner an extension for its $75 billion takeover approach. In response to the news, BHP revealed that it “will not be making a firm offer for Anglo American.” BHP CEO, Mike Henry, commented: “While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive.”

Gold price drops

It looks set to be a poor session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.9% to US$2,335.5 an ounce. The precious metal came under pressure after the US dollar and treasury yields strengthened.

Buy Qantas shares

Qantas Airways Limited (ASX: QAN) shares could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating and $8.05 price target on the airline operator’s shares. It said: “The discounted valuation versus peers and its own history implies that the market is pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks), which we view as a buying opportunity.”

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

More reading

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

Wesfarmers Ltd (ASX: WES) shares have excelled at delivering capital growth in the past year, boasting a 30% increase over the 12 months, as shown in the chart below.

Capital growth is only one element of a shareholder’s ASX returns, though – dividends also play their part.

While share prices move daily depending on what people are willing to pay, dividends are typically much more consistent. That’s because they are decided by a company’s board of directors and influenced by how much profit the business is generating.

Many investors prefer to focus on dividend returns because they are a ‘real’ return without requiring share sales. Owning a solid, dividend-paying stock may also help investors sleep easier at night.

With that in mind, can Wesfarmers shares tick the ASX dividend box?

Generous dividend payout ratio

A company needs to make a profit before it can pay a dividend. Wesfarmers has been making a profit for decades, so there is no problem there.

Leadership must decide how much of the company’s profit it will pay out as a dividend. This metric is called the dividend payout ratio. Paying out 100% of the net profit after tax (NPAT) may not be sustainable if the business needs to reinvest in its operations to sustain/grow earnings in the future.

Ideally, a business is able to balance rewarding shareholders in the short term with growing the business in the long term.

In the FY24 first-half result, the business reported it generated earnings per share (EPS) of $1.258 (up 3.4% year over year). This enabled Wesfarmers to pay an interim dividend per share of 91 cents, an increase of 3.4% compared to the FY23 interim dividend.

That HY24 dividend represented a dividend payout ratio of 72% of profit, which I believe strikes the right balance between dividend payments and funding growth.

Wesfarmers is investing in its businesses, such as expanding the Kmart brand Anko to international markets, including Canada. The ASX share is also part of a lithium project at Mt Holland, which is utilising capital to get the mine operational.

The last two dividends declared by Wesfarmers total $1.94 per share, which equates to a fully franked dividend yield of around 3% and a grossed-up dividend yield of 4.4%. That’s not bad, but it’s not the biggest yield around.

What are the chances of owners of Wesfarmers shares getting larger ASX dividends in the future?

Intention to grow the dividend

Wesfarmers says it wants to deliver long-term shareholder returns, with part of that being the dividend payout. As part of its capital management, the company said:

With a focus on generating strong cash flows and maintaining balance sheet strength, the Group aims to deliver satisfactory returns to shareholders through improving returns on invested capital.

As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow.

The estimate on Commsec suggests the Wesfarmers dividend can grow to $2.12 per share in FY25 and $2.36 per share in FY26. If that happens, the Wesfarmers grossed-up dividend yield could be 5.3%.

With a decent starting dividend yield, potential dividend growth in the next two years and a portfolio of solid businesses like Bunnings, Kmart, and Officeworks, I’d rate Wesfarmers shares as a solid option for ASX dividends.

The post Do Wesfarmers shares pay a decent ASX dividend? appeared first on The Motley Fool Australia.

More reading

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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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you own Liontown Resources Ltd (ASX: LTR) shares then you may be aware that a major milestone is on the horizon.

That milestone is the commencement of lithium production at the Kathleen Valley Lithium Project in Western Australia.

In fact, the company has started to describe itself as the “world’s next major lithium producer.”

But when will that actually happen? Let’s now see what stage Liontown is at in respect to the development of the Kathleen Valley project.

When will Liontown start producing lithium?

Earlier this month, Liontown announced that it had executed an Engineering, Procurement and Construction (EPC) contract with GR Engineering Services Ltd (ASX: GNG).

This $71 million contract is for the delivery and commissioning of the paste plant facility to support the underground mining operations at Kathleen Valley.

Management notes that the Paste Plant will include two trains capable of producing up to 160m3 of paste per hour. It has been designed to accommodate future expansion of mining operations to 4Mtpa.

Commenting on the contract, Liontown’s CEO, Tony Ottaviano, said:

We are pleased to award the contract for the design and construction of the Paste Plant which will support and further de-risk the planned underground production rates at Kathleen Valley. GRES has designed and constructed multiple paste plant facilities throughout Western Australia and the GRES team has mobilised and commenced initial works at Kathleen Valley.

This important contract means that Liontown is potentially now just a matter of weeks away from producing lithium at Kathleen Valley.

A presentation this week confirms that the project is more than 90% complete on an earned value basis and its process plant is 94% complete. In light of this, Kathleen Valley is on track for its first production in mid-2024. And given that we are rapidly approaching the middle of the year, this means that production won’t be far off.

Liontown is now working on its Dry Plant, including primary crushing through to fine ore bin. Its Wet Plant commissioning has also commenced with SAG mill, air/water service, and floatation.

Should you buy Liontown shares?

Bell Potter thinks investors should be taking advantage on recent share price weakness.

It currently has a speculative buy rating and $1.85 price target on Liontown’s shares. Based on its current share price, this implies potential upside of 36% for investors over the next 12 months.

The broker is very positive on the potential of Kathleen Valley Lithium Project. It said:

LTR’s 100% owned KV lithium project remains highly strategic in terms of its stage of development, long mine life and location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Hancock Prospecting has a 19.9% interest in LTR. LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.

The post Own Liontown Resources shares? Here’s when it will start producing lithium appeared first on The Motley Fool Australia.

More reading

• Here is the latest lithium price forecast through to 2027
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• Guess how much a $3,000 investment in Liontown shares ballooned to in just one month
• ASX 200 shares vs. property: Which has performed better since the COVID crash?
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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 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.

New research shows 85% of Australians are investing money outside their superannuation funds.

This makes sense given the one big drawback of superannuation is that you cannot access your money until you reach your preservation age. For Gen Xers, Millennials and Gen Zs, that means 60 years.

Saving for retirement is obviously the key goal of superannuation investment. However, new research shows that most Australians who invest outside their super do so for the same reason.

Let’s investigate.

Why invest outside superannuation?

An investor survey by financial advisory firm Findex shows Australians are investing outside their superannuation for many reasons.

The top reasons relate to long-term goals, such as planning for retirement (54%) and building wealth (53%).

Saving for emergencies is the third most common reason (43%) and a key recommendation of The Fool.

Findex also found that 35% of investors were saving for a property purchase, comprising 16% saving for their first home and 19% saving for a real estate investment.

Other motivations for investing outside super include supporting children or other family members (29%), reflecting the rising role of the Bank of Mum and Dad in helping young people buy their first homes.

Amid today’s high interest rates and inflation, paying off a mortgage or other debt is a motivator for 28% of respondents, as is preserving their wealth from the impacts of inflation (26%).

And then there’s the fun stuff.

About 27% of respondents said they were saving for a major purchase outside property, like a car or a holiday. About 22% said they were investing for the simple enjoyment of it.

Another 14% are gathering funds to pay for a milestone occasion in their lives, such as their wedding.

But when the data is broken down by generation, we see different motivations at play.

Generational differences in the motivation to invest

Baby Boomers (born 1945-1964)

By far, the primary motivation to invest outside superannuation is planning for retirement (80%). No other generation is more concerned with retirement planning than the baby boomers. The next biggest motivations are building wealth (51%) and supporting their children or other family members (25%).

Gen Xers (born 1965-1980)

Gen Xers are also investing mainly to plan for their retirement (66%) and build wealth (50%). This age cohort is also the most concerned with supporting their children or other family members (33%).

Millennials (born 1981-1996)

More than any other generation, Millennials are motivated to invest outside superannuation to build wealth (55%), save for emergencies (50%), and pay off their mortgage or other debt (32%). They’re also targeting real estate investment more than any other generational group (28%).

Gen Zs (born 1997-2009)

The youngest cohort of Aussies is primarily motivated to invest to build wealth (52%) and save for emergencies (46%). They are the generation most likely to be saving for a major purchase outside property, like a car or holiday (41%). They’re also the biggest age group saving for their first home (42%) or a milestone occasion (24%).

Gen Zs are also the most concerned with preserving their wealth against inflation (29%).

This follows new data from CommBank showing young people aged 25-29 years have cut their spending more than any other age group. They spent 3.5% less over the past year compared to Australians aged over 75 who spent 6.5% more. Gen Zs also invest for enjoyment more than any other age group (26%).

The post Why invest? Here’s what’s motivating baby boomers and young Australians 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.