Category: Stock Market

With the S&P/ASX 200 Index (ASX: XJO) rising 13.8% over the four months, many of the more obvious quality stocks have become expensive.

As such, it’s not a bad idea to check out the shares that are struggling right now to see if there is a bargain to be bagged for long-term investors.

Here are two that Shaw and Partners portfolio manager James Gerrish and his team have identified:

‘A good outcome for shareholders’

Diversified mining company South32 Ltd (ASX: S32) has seen its share price decline almost 12% so far this year. 

It’s a painful 37.3% fall if you go back 12 months.

Gerrish admitted the February results didn’t flatter, but feels the outlook is positive.

“They reported solid earnings, a slight beat on low expectations but costs remained an issue, which has led to the stock drifting lower,” he said in his Market Matters newsletter.

“We expect a production uplift in the 2H of FY24, and higher production will help with unit costs, putting them in a better position.”

There was an intriguing catalyst last week as well.

“The main news… was the sale of their Illawarra Met Coal operation for up to US$1.65 billion ($2.54 billion).”

The critical detail was that there is a large upfront cash payment of US$1.050 billion, with US$250 million deferred and a US$350 million conditional component.

“The price is a great one and a good outcome for shareholders given the operational complexities and risks, along with rehab liabilities at IMC.

“We like the risk-reward on offer by South32 below $3, with a 20% to 30% bounce being our preferred scenario.”

The South32 share price closed Tuesday at $2.94.

These ASX shares might have taken enough punishment

After the hammering it’s taken the last few years, it might take some courage to buy Magellan Financial Group Ltd (ASX: MFG).

But Gerrish’s team feels like the time is right with the price hovering in the low $8s.

“Market Matters continues to see attractive value in the individual components of MFG, including the much-discussed potential capital management due to the company’s strong balance sheet with cash and investments amounting to over 50% of its market cap, in our view.”

Last month the investment firm reported a “solid first-half beat”.

“The profit of $93.5 million was well ahead of the $66 million consensus estimate,” said Gerrish.

“Although it was driven by capital gains rather than a strong operational performance from the fund manager.” 

His team also likes the appointment of the new boss.

“We liked the announcement that Sophia Rahmani, a well-credentialed leader from boutique fund manager Maple-Brown-Abbott, would take on the CEO role.

“Now back around $8, following a solid result, it’s looking increasingly attractive.”

The post 2 ASX shares with attractive ‘risk-reward’ balance to buy right now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 34 ASX 200 shares with ex-dividend dates next week
• Guess which ASX 200 mining stock could offer a 22% return
• Here are the top 10 ASX 200 shares today
• South32 share price jumps on $2.5b coal sale

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

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Most investors have some cash sitting idle in their ASX stock broking account, ready to pounce on the next attractive buy.

But instead of that money doing nothing, what if it could earn 7% per annum interest?

Incredibly, one broking platform is doing exactly that. It’s paying out more interest than the banks are.

Tiger Brokers Australia, which is the local arm of Chinese broker UP Fintech Holding Ltd (NASDAQ: TIGR), is running a promotion to give back 7% interest on all deposits for a maximum of 150 days.

Both new and existing customers are eligible to receive this rate.

Why are they giving money away?

Tiger Brokers Australia vice president Jack Liang said this extraordinary rate is designed to assist punters during troubled times.

“As investors face tough economic conditions due to high inflation and reduced disposable income, we want to provide a strong incentive to boost their confidence in investing their hard-earned money.”

Tiger offers trading in both US and ASX shares.

“While such offering on uninvested cash is not new in the industry, we’re proud to be the forerunner in presenting this superior rate to the marketplace.”

What’s the catch?

There are, of course, some conditions to receiving this attractive interest rate.

The 7% rate applies to customers who make a deposit between 4 March to 9 April, for a maximum duration of 150 days.

The promo interest is applied to amounts up to $100,000, meaning the highest payout one can receive is $2,877.

After that period, the interest rate will revert to the normal rate, which varies between 0% and 2.25%, depending on the balance.

As a bonus, customers who deposit $2,000 or more cumulatively during the promo window will also receive US$30 worth of fractional shares in Tesla Inc (NASDAQ: TSLA).

While withdrawals can be made anytime for the 7% rate, the Tesla bonus requires that funds are not pulled out for 90 days.

The post How to make 7% interest while deciding which ASX shares to buy appeared first on The Motley Fool Australia.

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More reading

• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• Why did the Tesla share price just tumble 7%?
• Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven
• Buy and hold these ASX ETFs for 10 years or more

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Vanguard Diversified High Growth Index ETF (ASX: VDHG) is a popular exchange-traded fund (ETF) for the diversification that it offers. Is it the only investment we need?

Vanguard is one of the world leaders at providing extremely low-cost investment options. The owners of Vanguard are the investors themselves – it shares the profit by making the investment funds as cheap as possible.

While Vanguard offers numerous index funds, the VDHG ETF is a bit different. It’s invested across a number of funds, with a preference for growth-focused assets (shares) over defensive assets (bonds). There are a number of reasons to like it.

Extremely diversified

The VDHG ETF is invested across seven different funds. At the end of January 2023, these were the weightings for the growth funds:

Vanguard Australian Shares Index Fund (wholesale) (36.3%)

Vanguard International Shares Index Fund (wholesale) (26.6%)

Vanguard International Shares Index Fund (hedged) – AUD class (16.1%)

Vanguard International Small Companies Index Fund (wholesale) (6.4%)

Vanguard Emerging Markets Shares Index Fund (wholesale) (4.6%)

It’s also invested in two bond funds, those allocations are:

Vanguard Global Aggregate Bond Index Fund (hedged) (7%)

Vanguard Australian Fixed Interest Index Fund (wholesale) (3%)

If we were to look at all of the underlying businesses that the VDHG ETF is invested in, it would be a four-figure number, meaning in the thousands. That’s excellent diversification.

The addition of the bonds can provide the portfolio with some stability during global share market volatility.

Low fees

The VDHG ETF has very low costs considering how diversified it is. The lower the costs, the more the investment returns stay with the investor. This investment option has an annual fee of 0.27%.

Active fund managers typically charge at least 1% and sometimes outperformance fees as well. Fees can make a difference to our wealth to the tune of tens of thousands of dollars over 30 or 40 years.

Decent returns

Over the five years to January 2024, the VDHG ETF has made an average return per annum of 9.6%.

If someone invested $1,000, it would double to more than $2,000 in around eight years growing at that rate.

Of course, past performance is not a reliable indicator of future returns. The VDHG ETF could deliver better returns in the next five years (or it could do worse).

I think investing in shares gives it a good chance of returns over the long term, though that can come with more volatility.

Why I wouldn’t make it my only investment

I like the concept of the VDHG ETF, and it can make things very simple for some investors.

However, if I’m going to invest in an ETF for the purpose of gaining exposure to shares, it may as well have 100% exposure to shares. In my mind, the bond returns are likely to drag on the VDHG ETF’s return because they lack the potential to deliver strong capital growth.

It also has a very large allocation to the ASX share market, when the ASX only accounts for 2% of the global share market. I’d prefer a bigger allocation to global winners like Microsoft and Alphabet than what the VDHG ETF provides. I like Vanguard MSCI Index International Shares ETF (ASX: VGS), as an example that’s purely about shares.

The post Is Vanguard Diversified High Growth Index ETF (VDHG) the only investment you need? appeared first on The Motley Fool Australia.

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More reading

• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• 8 popular ASX ETFs smashing new 52-week highs

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) might have risen four months straight, but many experts are still bullish about the rest of 2024.

Shaw and Partners portfolio manager James Gerrish said in his newsletter that his team is “bullish equities through 2024/5”.

“The ASX is stronger than many probably give it credit for. 

“If/when the resources sector enjoys a bid, the ASX 200 will be knocking on the 8000 door. e.g. The index’s largest stock, BHP Group Ltd (ASX: BHP), is still trading over 13% below its 2024 high.”

So in this upbeat environment, which Australian shares are best set to elevate to the next level?

Here are four to consider:

When mining rises, so does this stock

Mader Group Ltd (ASX: MAD) is a maintenance contractor for clients in the mining industry.

Like Gerrish mentioned, the resources sector is in a low part of its cycle at the moment, so Mader shares are also down about 19% since September.

The stock even plunged after quarterly results that didn’t look that bad in January.

But that gives it a low base off which to jump in 2024.

This theory will apply especially if western economies start recovering as a result of interest rate relief, and China begins stimulus to fight deflation.

All five experts surveyed on broking platform CMC Invest reckon Mader Group is a buy.

Shrug off the short sellers

A short seller attack on Neuren Pharmaceuticals Ltd (ASX: NEU) has seen its share price plummet almost 21% so far this year.

Analysts at Elvest Fund, which holds the stock, explained it best in a memo to clients.

“A short report targeting Neuren’s US partner, Acadia Pharmaceuticals Inc (NASDAQ: ACAD), combined with unexpected holiday-period seasonality in sales for its flagship drug, Daybue, shook investor confidence.”

But investors with years to invest need not worry.

“Our thesis for Neuren Pharmaceuticals is unchanged. New CY24 Daybue sales guidance of US$370 to US$420 million (+120%) underpins another solid year of royalty and milestone revenue for NEU. 

“This will aid commercialisation of its exciting pipeline drug, NNZ-2591, which has the potential to grow Neuren’s addressable market five-fold in the coming years.”

These Aussie shares have been unstoppable

The resurgence of MMA Offshore Ltd (ASX: MRM) shares has been simply stunning.

Check out these figures: up 76% over the past 12 months, up 477% since the start of 2022, up 754% since September 2020.

It seems the marine services provider is supplying its clients with indispensable offerings, if the latest reporting season is anything to go by.

“The marine services provider reported a massive 339% jump in underlying net profit after tax (NPAT) to $39.5 million in 1H FY24,” reported The Motley Fool’s Bronwyn Allen.

“The company said there was stronger demand for its vessels and services.”

Tellingly, all five professional investors surveyed on CMC Invest rate the stock as a strong buy.

‘Double or triple the existing footprint’

Lovisa Holdings Ltd (ASX: LOV) is already on fire this year, enjoying a 24% increase in its stock price.

Elvest analysts loved the half-year report.

“EBIT [was] up 16% to $82 million, in part driven by a near record gross profit margin of 80.7%. Recent like-for-like sales turned positive, which bodes well for second half earnings.”

But I think it can reach even higher, with the business expanding rapidly around the world.

The Elvest team agrees with this thesis.

“Looking beyond FY24, we remain excited about the company’s aggressive global store roll[out] program, which could ultimately double or triple the existing footprint of 860 stores across over 40 markets.”

The post 4 Australian shares set to soar in 2024 appeared first on The Motley Fool Australia.

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More reading

• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• Key takeouts for ASX shares this earnings season: CBA analysis
• Why is the Lovisa share price sinking today?
• Leading brokers name 3 ASX shares to buy today
• Which ASX shares delivered the biggest profit jumps of the earnings season?

Motley Fool contributor Tony Yoo has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Mader Group. The Motley Fool Australia has positions in and has recommended Mader Group. The Motley Fool Australia has recommended Lovisa and Mma Offshore. 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 good news for growth investors is that there are plenty of quality options to choose from on the Australian share market.

But which ones could be best buys in March?

Let’s take a look at three ASX growth stocks that brokers rate very highly:

IPD Group Ltd (ASX: IPG)

Bell Potter is a big fan of this distributor of electrical equipment and industrial digital technologies and sees it as an ASX growth stock to buy in March. It has the company on its preferred list with a buy rating and $5.90 price target.

Its analysts expect the company to benefit from the electrification megatrend. It said:

We view IPG as a high quality play on the electrification growth trend which is emerging as a dominant market narrative.

Treasury Wine Estates Ltd (ASX: TWE)

The team at Morgans thinks that Treasury Wine could be an ASX growth stock to buy right now. It has it on its best ideas list with an add rating and $14.03 price target on its shares.

The broker is feeling very positive about its recent acquisition of DAOU Vineyards (DAOU) for US$900 million (A$1.4 billion). It said:

While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near-term share price catalyst is if China removes the tariffs on Australian wine imports.

Xero Ltd (ASX: XRO)

Goldman Sachs added this cloud accounting platform provider’s shares to its Asia-Pacific conviction list this month. The broker has a buy rating and $152.00 price target on its shares.

Its analyst “is positive on the company’s outlook given accelerating product pipeline and strong management team to capture overseas market share while balancing profitability.”

The post Best ASX growth stocks to consider buying in March appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares that could be strong buys this month
• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Ipd Group, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Ipd Group and Treasury Wine Estates. 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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When some punters see the words “52-week high” they immediately think it’s too late to buy the stock.

But this is absolutely false logic. Shares don’t care about the past. Only the future outlook is what matters.

If anything, S&P/ASX 200 Index (ASX: XJO) stocks hitting new peaks have momentum from investors who obviously like what the business has to offer.

And the ultimate aim of the game is to own shares that other people want.

So in this spirit, Shaw and Partners portfolio manager James Gerrish recently named two stocks that his team are bullish on that have been smashing year-long records:

Turning the tables on foreign takeovers

Poker machine maker Aristocrat Leisure Limited (ASX: ALL) has gained more than 14% so far this year to not only make 52-week highs but is nearing its all-time peak.

“Following its report last November, this gaming company doesn’t confess its sins until May, but the markets are clearly voting with both feet that the news will be good,” Gerrish said in his Market Matters newsletter.

“Their FY23 results were solid, with revenue up 13% to $6.3 billion and segment [EBITDA] up 4% to $2,750 million, at the time both slightly ahead of expectations.”

Gerrish’s team is backing the ASX 200 stock to keep heading upwards in the medium term.

“We think Aristocrat can continue to grow earnings at mid-single digits, amplified by share buybacks (i.e. fewer shares on issue) while enjoying a net cash position, even after completing the $1.5 billion acquisition of Nasdaq-listed gaming software giant NeoGame SA (NASDAQ: NGMS).”

The move is an attempt to expand into US online lotteries, which is turning the tables on what usually happens with mergers and acquisitions.

“A pleasant change to see an ASX company ‘shopping’ overseas.”

‘Buy the dip until further notice’ on this ASX 200 stock

A poster example of how past performance has nothing to do with future is Audinate Group Ltd (ASX: AD8).

The share price for the audio networking technology provider has now rocketed 153% over the past year, but it remains a buy for many professionals.

This includes Gerrish’s team, which has ridden the rollercoaster all the way up.

“We are not planning on taking profit on Audinate, even though a 160% paper gain is eye-catching.”

The ASX 200 shares have been driven to all-time highs after last month’s half-year results labelled as “very strong” by Gerrish.

“Revenue grew 48% to US$30.4 million, with EBITDA US$10.1 million being a whopping ~70% ahead of expectations driven by strong revenues, plus margins improved ahead of consensus.

“While the first half was strong, the company left guidance unchanged, but the market thoroughly embraced the results.”

There could be some exciting corporate developments coming.

“They are looking at M&A opportunities with a strong cash balance of $117 million, which supports our view that this is a business going places.

“We can see a period of consolidation on the horizon, but we believe Audinate is a case of ‘buy the dip’ until further notice.”

The post 2 ASX 200 shares smashing 52-week highs that are STILL BUYS appeared first on The Motley Fool Australia.

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More reading

• Guess which 4 shares are being dumped from the ASX 200 index
• 6 ASX shares to buy and hold until the next leap year
• 1 ASX stock I think is just as hot as Nvidia (without all the hype)
• Here’s how the ASX 200 market sectors stacked up this week
• Why Audinate, Beach Energy, Calix, and JB Hi-Fi shares are charging higher

Motley Fool contributor Tony Yoo has positions in Audinate Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate 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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No one buys ASX shares with the intention of losing money.

Yet it is the harsh reality that many of your investments will end up doing just that. 

It’s inevitable regardless of your experience or knowledge. It’s just what happens because no one in the world owns a working crystal ball.

But the great news is that with thorough research and diversification, a few — or even just one or two — massive winners can carry your entire portfolio into the black.

Let’s examine one such small-cap example that’s put a smile on many faces recently:

The ASX tech stock putting smiles on dials

DUG Technology Ltd (ASX: DUG) is a high-performance computing specialist in the technology sector.

Back just 20 months ago, in June 2022, the DUG share price hit the 40 cent mark.

Imagine that you were wise enough to buy $20,000 of the tech stock then.

DUG Technology, ever since listing on the ASX in August 2020, has consistently grown its revenue, operating margin and net profit since.

Combine this with a general revival in high-growth tech stocks in 2023, and you have yourself a prodigious winner.

That $20,000 would have now turned into $124,500.

This is why you don’t need every stock to be a winner

So to what extent could such an explosive stock wipe out the effects of other stocks in your portfolio that haven’t done as well?

Let’s go back to June 2022.

At the time you were buying DUG shares, let’s say you also bought up four other stocks for $20,000 each in order to construct a diversified portfolio.

As I mentioned earlier, no one buys stocks thinking they will sink. 

You bought all five companies because you deemed them to be quality businesses with bullish prospects.

However, let’s assume the other four picks other than DUG Technology flopped.

Take it to the extreme and say they’re now all worth $0.

Even then, thanks to DUG shares, your portfolio is now 30% up.

There’s the power of diversification, and a lesson that not every stock pick has to be a winner for you to build your wealth.

The post If you’d put $20,000 in this ASX tech stock 20 months ago, you’d have $125,000 now appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX tech stock crashed 29% on its half-year results

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dug Technology. The Motley Fool Australia has recommended Dug Technology. 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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More reading

• Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher
• Key takeouts for ASX shares this earnings season: CBA analysis
• Beaten-up ASX 200 stock jumps 14% on CEO resignation
• The gold price just reached its highest level ever: Which miners are buys?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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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The Brickworks Limited (ASX: BKW) share price reset its all-time record high again on Tuesday.

Brickworks shares hit a new peak of $30.35 in intraday trading, up 1.2% on yesterday’s closing price.

The Brickworks share price finished the session at $30.27 on Tuesday, up 0.93%.

The building materials stock has been on a run lately, despite no news out of the company in 2024 as yet.

However, Brickworks is due to report its 1H FY24 earnings on 21 March, so watch this space.

In the meantime…

Why is the Brickworks share price at a record high?

The outlook on housing is positive, and this has lifted the share prices of many building materials stocks.

Over the past three months:

• The Brickworks share price is up by almost 20%
• The CSR Ltd (ASX: CSR) share price is up by almost 50%
• The Boral Ltd (ASX: BLD) share price is up by almost 25%
• The Adbri Ltd (ASX: ABC) share price is up by almost 50%
• The James Hardie Industries plc (ASX: JHX) share price is up by almost 25%
• The Reece Ltd (ASX: REH) share price is up by almost 45%

The Australian building industry had a very tough time after the world came out of COVID lockdowns.

New home approvals initially rebounded strongly, but then came a major disruption to global supply chains, significant inflation worldwide, and relentlessly rising interest rates.

In Australia, shipping costs went up, the price of materials went up, and building projects were delayed due to a lack of skilled labour.

Many small builders went under because they couldn’t afford to complete fixed-price projects amid rapidly rising costs.

Project delays and rising costs led to less demand for new homes, as shown below.

Source: Australian Bureau of Statistics

Things are settling down now.

Interest rates are likely to decrease soon, and there is plenty of building work in the pipeline as the world tries to catch up on pent-up demand for new housing and other infrastructure.

This means there is likely to be a strong demand for building materials over the next few years.

Investors are picking up on this and buying ASX shares with exposure to this trend, like Brickworks shares.

Overseas buyers snapping up ASX building materials companies

Three ASX building materials companies are currently under takeover, indicating confidence in the building sector at a global scale.

The prospective buyers of these ASX companies are offering a premium to shareholders, too.

CSR has entered into a binding scheme implementation deed with the French building giant Saint-Gobain (LSE: COD), which is offering a 33% premium.

Adbri has done the same with Irish supplier CRH PLC, which is offering a 41% premium.

Boral has received a takeover offer from major shareholder Seven Group Holdings Ltd (ASX: SVW).

Subject to conditions, Seven’s offer of up to $6.25 per share represents a near-7% premium on the closing Boral share price the day before the announcement.

The post Why did the Brickworks share price just smash another record? appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• How did the Brickworks share price just hit an all-time high?
• Buying Soul Patts shares? Here’s what you’re really buying
• How I built $5,000 of passive income starting with $0
• Owners of Brickworks shares haven’t seen a dividend cut for 47 years!

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 Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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If you’re on the lookout for above-average dividend yields, then look no further.

Listed below are two ASX 200 dividend shares that have been named as buys and tipped to offer generous yields.

Here’s what you need to know:

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs is a big fan of QBE and sees it as an ASX 200 dividend share to buy now.

QBE was formed in Townsville back in 1886 and is now an international insurer and reinsurer with a local presence in 27 countries.

Clearly, QBE has been through many cycles during its time. And right now, Goldman Sachs thinks the company is going through a very positive point in its current cycle thanks to premium increases.

It expects this to support the payment of dividends per share of 62 US cents in FY 2024 and 61 US cents in FY 2025. This equates to dividend yields of 5.5% and 5.45%, respectively.

The broker also sees room for its shares to continue climbing. It has a buy rating and $18.52 price target on them.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that could be a buy this month is toll road operator Transurban.

It operates 22 roads in Australia and North America, including CityLink, Cross City Tunnel, and the East Distributor. It also has four projects currently in development or delivery.

Due to population growth and urbanisation, Transurban has been tipped to continue its growth long into the future.

The team at Citi expects this to underpin the payment of dividends per share of 63 cents in FY 2024, 65 cents in FY 2025, and 68 cents in FY 2026. Based on the current Transurban share price of $13.36, this will mean yields of 4.7%, 4.85%, and 5.1%, respectively.

Citi has a buy rating and $15.60 price target on its shares.

The post 2 ASX 200 dividend shares that could be strong buys this month appeared first on The Motley Fool Australia.

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More reading

• Key takeouts for ASX shares this earnings season: CBA analysis
• 3 all-star ASX dividend stocks I’d own in retirement to combat falling interest rates
• It’s not too late to buy these 2 rocketing ASX 200 stocks
• Guess which are the 2 newest members of the ASX 100 index
• 5 ASX 200 shares that boosted their dividends this earnings season

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 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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