Category: Stock Market

It could be another good day for gold miners Evolution Mining Ltd (ASX: EVN), Newmont Corporation (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price charged to a record high.

According to CNBC, gold futures settled at the highest level ever on Monday after traders bet that the US Federal Reserve will start cutting interest rates in the second half of 2024.

The gold futures contract for April gained 1.46% or US$30.60 to settle at US$2,126.30. This is the highest level since the contract’s creation all the way back in 1974.

Gold price hits record on rate cut hopes

Traders have been bidding the gold price higher since the release of US personal consumption expenditures (PCE) inflation data last week which was in-line with the market’s expectations.

As the PCE data is the US Federal Reserve’s preferred inflation gauge, traders believe it is only a matter of time until rates are lowered. In fact, it could be just three months away, with some traders betting on the first cut happening in June.

Which gold miners are buys?

There are plenty of ways for investors to gain exposure to the sky-high gold price.

For example, the team at Macquarie thinks that Evolution Mining is a great option for investors. Last month, the broker put an outperform rating and $3.80 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.

In addition, the broker has outperform ratings on Northern Star and Newmont shares with price targets of $16.00 and $67.00, respectively. These price targets suggest very attractive potential upside of ~17% and ~38% from current levels.

The post The gold price just reached its highest level ever: which miners are buys? appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright
• Guess which are the 2 newest members of the ASX 100 index
• 5 things to watch on the ASX 200 on Monday

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

from The Motley Fool Australia https://ift.tt/Cc9dqPu

BHP Group Ltd (ASX: BHP) is the biggest business in Australia, with a market capitalisation of $223 billion. I think, one day, it might not be the biggest S&P/ASX 200 Index (ASX: XJO) share, depending on how things go.

For starters, the company’s profit and valuation are heavily influenced by commodities. It’s possible that BHP’s market cap could decline further if the iron ore price or copper price falls heavily.

It’s possible that the emergence of large iron mines in Africa could push down on the iron ore price.

Of course, the BHP share price could keep rising and it’s possible that no ASX 200 share can catch up.

But, if things go well, I believe that at least one (and perhaps all) of the below ASX 200 shares could become larger than BHP.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank has a market capitalisation of $195 billion according to the ASX. It only needs to rise by 15% to become larger than BHP, or a mixture of CBA rising and BHP falling.

The ASX 200 share has grown its loan book over time, which is increasing the company’s profit potential.

It’s making a concerted push into business lending, where its market share isn’t as strong as lending to households. I think this could be the driver of the CBA share price in the shorter term if it is to somehow become bigger than BHP in the next couple of years.

Macquarie Group Ltd (ASX: MQG)

Macquarie has a market capitalisation of $75 billion according to the ASX. This is a lot smaller than BHP, but I think it has demonstrated a good compound annual growth rate (CAGR) of earnings over the past several years to get to where it is today.

Over the last 10 years, the Macquarie share price has risen by roughly 240%. In the first half of FY14, it made A$1.50 of earnings per share (EPS), in the FY24 first half result it made $3.66 of EPS and in HY23 it made $5.85 of EPS.

HY23’s EPS was 290% higher than HY14 and HY24’s EPS was 140% more.

Over time, Macquarie is building its business to generate more profit and justify a higher share price.

I think the ASX 200 share can continue to scale its divisions – particularly banking and financial services (BFS) in Australia – which can lead to growing earnings and a rising Macquarie share price.

While it will likely take many years, I think if it can continue to grow globally, it can eventually overtake BHP.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has a market capitalisation of $75.6 billion, so it’s also currently a fraction of the size of BHP.

The company is responsible for retailers like Bunnings, Kmart, Officeworks, Priceline, Catch, Target and a number of chemical, energy, fertiliser and industrial businesses.

In the past five years, the Wesfarmers share price has risen by around 90%. The divestment of Coles Group Ltd (ASX: COL) near the end of 2018 makes it challenging to compare Wesfarmers now to Wesfarmers in 2017 and further back.

The ASX 200 share has done a great job of growing the Bunnings and Kmart businesses, expanding the product ranges and growing digital sales.

Wesfarmers continues to make helpful bolt-on acquisitions, such as InstantScripts, Silk Laser Australia and Beaumont Tiles, which expand the capabilities and growth potential of its existing segments.

The business is expanding into lithium mining and lithium processing, which will add another earnings stream for Wesfarmers and diversify profit more.

As Australia’s population keeps growing, this increases the potential customer base for its various companies.

I believe in the company’s long-term potential to keep growing and buying businesses that can help growth of the Wesfarmers share price over the long term.

The post 3 ASX 200 shares I think could grow to be bigger than BHP one day appeared first on The Motley Fool Australia.

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

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

More reading

• 5 things to watch on the ASX 200 on Tuesday
• It’s not too late to buy these 2 rocketing ASX 200 stocks
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• CBA shares rally to new record high. Is $196 billion too much for this banking giant?
• Want the next BHP dividend? You don’t have long to act

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

from The Motley Fool Australia https://ift.tt/QhM0V4z

If you’re not a fan of stock picking but want to build a passive income portfolio, then exchange-traded funds (ETFs) are here to save the day.

They provide investors with a large number of shares through a single investment. This makes them a great way to diversify a portfolio swiftly.

But which ASX ETFs might be great options for income investors in March? Three to look at are named below:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first option for income investors to consider buying is the BetaShares S&P 500 Yield Maximiser.

It is an actively managed fund that provides investors with access to the top 500 companies listed on Wall Street’s S&P 500 index. It uses a covered call strategy to target quarterly income that is significantly greater than the dividend yield of the underlying share portfolio.

It is thanks to this strategy that its units currently trade with a 5.1% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF for passive income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular ETF offers investors low-cost exposure to a group of 70+ ASX shares that analysts are forecasting to have larger than average dividend yields. This includes all the well-known big dividend payers such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), as well as smaller names like Dicker Data Ltd (ASX: DDR) and Super Retail Group Ltd (ASX: SUL) and

The Vanguard Australian Shares Index ETF currently trades with a trailing dividend yield of 5.1%.

Vanguard Australian Shares Index ETF (ASX: VAS)

A final ASX ETF for income investors to look at is the Vanguard Australian Shares Index ETF.

It is a low-cost index-based exchange traded fund that aims to track the ASX 300 index. This means that you will be snapping up a portion of Australia’s leading 300 listed companies. Among this diverse group of shares are the likes of Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

At present, it trades with a dividend yield of 3.9%.

The post Buy these ASX ETFs for easy passive income appeared first on The Motley Fool Australia.

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

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

More reading

• 3 reasons to buy another ASX ETF over the Vanguard Australian Shares Index ETF (VAS)
• 3 excellent ASX ETFs to buy in March
• 14% in 4 months: How has the Vanguard Australian Shares ETF (VAS) managed it?
• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?
• A once-in-a-decade chance to get rich from ASX 200 shares?

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data, Lovisa, and Macquarie Group. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund, Dicker Data, Macquarie Group, and Super Retail Group. The Motley Fool Australia has recommended Lovisa and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

There are some S&P/ASX 200 Index (ASX: XJO) stocks that have been household names for Australian portfolios for many years.

But even those ‘old reliables’ have tough times and their journey is not perfectly linear.

Here are two longtime favourites that are in a dip at the moment, which long-term investors might like to take advantage of:

Revenue up, costs down: a simple equation

Thankfully, the market has now largely put its anxieties about Ozempic and other GLP-1 drugs in the past in their assessment of sleep apnoea device maker Resmed CDI (ASX: RMD).

However, after a boom January, the stock has now dived 8.7% in the past month.

Ord Minnett senior investment advisor Tony Paterno is urging long-term investors to look past this downturn to pounce.

“The company lifted revenue by 11% on a constant currency basis in the second quarter of fiscal year 2024 when compared to the prior corresponding period,” Paterno told The Bull.

“We also anticipate margin expansion as ResMed’s sales mix shifts to higher margin masks.”

He feels ResMed is doing all the right things to boost margins.

“The firm reduced its global workforce by 5% in October 2023.

“The share price has recovered some of its substantial falls in the second half of fiscal year 2023, but has drifted recently to provide a cheaper entry point.”

Encouraging signs for famous ASX 200 brand

Just as Telstra Group Ltd (ASX: TLS) looked buoyant in the middle of last year, it all came back tumbling down again.

The share price for the telco giant is down around 11% since the August reporting season.

Paterno thought the February update was encouraging.

“We view a 3% increase in underlying EBITDA to $4 billion in the first half of fiscal year 2024 as a positive result for this telecommunications giant,” he said.

“Mobile EBITDA is on track to surpass $5 billion in fiscal year 2024, a remarkable turnaround from just above $3 billion less than four years ago.”

Telstra shares have been annoying for investors in recent times, rising just 19% over the past half-decade.

Paterno acknowledges there are external factors that the company cannot control.

“We believe there’s little management can do regarding structural pressures affecting fixed-line businesses. But it can recalibrate its costs.

“EBITDA margins are now approaching 48% compared with just 31% in fiscal year 2020.”

The post 2 classic ASX 200 shares you can buy for cheap now to hold for years appeared first on The Motley Fool Australia.

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

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

More reading

• Got $5,000? Buy and hold these ASX value stocks for years
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Buy Telstra and these ASX dividend shares next week
• 5 ASX 200 shares that boosted their dividends this earnings season
• These ASX 200 shares could rise 20% to 50%

Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/b8BrNvR

The ASX energy share AGL Energy Ltd (ASX: AGL) is a leading ASX utilities stock, but there’s another one that could be even better, particularly for dividends.

Utility businesses can provide defensive earnings and a decent dividend yield. Households and businesses need energy – what AGL provides is an essential service.

But, some of AGL’s profit is dependent on energy prices, which can be unpredictable. Decarbonisation is a big opportunity for many businesses to tap into, but it’s complicated for AGL. Its old coal power plants are going to be turned off, cutting off an earnings generator for the company.

AGL needs to invest heavily in renewable energy generation for the transition, which means a lot of capital. There’s also the challenge that many households are installing solar panels on the roof. That’s reducing some of the demand for AGL’s energy.

There’s one ASX utilities stock that I think could be a better choice to buy: Duxton Water Ltd (ASX: D2O). It’s a business that owns water entitlements and leases them to agricultural operators on a short-term or long-term basis.

Growing dividends

Owners of AGL shares have seen a big decline in the dividend compared to FY19.

Duxton Water paid a dividend per share of 2.3 cents in November 2017, 2.4 cents in April 2018, 2.5 cents per share in September 2018 and so on. It has grown its dividend every six months since 2017. The latest declared half-year dividend was 3.6 cents per share.

The company has guided that it’s targeting a half-year dividend payment of 3.7 cents per share next. This means the two dividends to be paid during the 2024 calendar year will amount to 7.3 cents per share, which translates into a grossed-up dividend yield of 7.1%.

Useful tailwinds for the ASX utilities stock

According to Duxton Water, the government has introduced an act to support the recovery of water for the environment until 31 December 2027, while also removing the legislative cap on buybacks so that the government can conduct further entitlement share buybacks over the next four years to fulfil the Murray Darling Basin (MDB) plan’s remaining targets.

The government has committed to delivering 450 gigalitres of additional environmental outcomes with the current shortfall of 242 GL.

There’s also the growing number of permanent crops, such as almonds, being planted in Australia that have higher water needs. These farms may be willing to pay more for water entitlements.

Good time to buy?

We can look at water as a commodity, which is affected by the supply and demand cycle just like other resources.

When it rains more, there’s more water supply and less demand by farmers. When it’s dry there is less water supplied and more demand from farmers.

In my mind, it’s a good time to invest in this ASX utilities stock during La Nina (wetter periods) and when the dam storage levels are high, because that’s when water prices and the Duxton Water share price may be lower. I’d be patient to invest in the middle of El Nino when water prices are higher.

The last few years have been wet, and the dam storages are high. The Duxton Water share price is relatively low right now.

But, La Nina has changed into El Nino.

At the end of January, MDB storages were at 85% capacity. The northern basin storages were at 69%, while southern basin storages were at 88%. At the same time last year, northern and southern basin storages were at 95% and 98% respectively.

If Duxton Water sounds like an interesting investment, I think this could be a good time to look at it, particularly with the prospect of falling interest rates.

The post Forget AGL: Buy this magnificent ASX utilities stock instead appeared first on The Motley Fool Australia.

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

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

More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Passive income watch: The ASX stocks dishing out the biggest dividend boosts this earnings season
• Which ASX shares delivered the biggest profit jumps of the earnings season?
• Top brokers name 3 ASX shares to buy next week
• 7 ASX 200 shares with ex-dividend dates next week

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

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

Are you looking for ASX dividend shares to buy? If you are, it could be worth checking out the three listed below.

They have all been named as buys by analysts at Goldman Sachs following their results releases last month. Here’s what you need to know:

Endeavour Group Ltd (ASX: EDV)

The first ASX dividend share that its analysts are bullish on is Endeavour. It is the drinks giant behind BWS and Dan Murphy’s.

Goldman Sachs feels its valuation is attractive given its “clear market leading position.” It has a buy rating and $6.20 price target on the company’s shares.

As for income, the broker is forecasting fully franked dividends of approximately 22 cents per share in FY 2024 and FY 2025. Based on the current Endeavour share price of $5.37, this will mean dividend yields of 4.1% for both years.

Suncorp Group Ltd (ASX: SUN)

Insurance giant Suncorp could be another good option for income investors according to Goldman.

The broker has a buy rating and $16.25 price target on the company’s shares.

As for dividends, Goldman is forecasting fully franked dividends per share of 77 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $15.36, this will mean yields of 5% and 5.3%, respectively.

Woolworths Limited (ASX: WOW)

A final ASX dividend share that has been named as a buy is Woolworths Group. It is the retail giant behind the Woolworths supermarkets and Big W brands.

Goldman remains very positive on the company and has it on its APAC conviction list. This is due to its belief that it can win market share from its omni-channel advantage and loyalty program.

The broker currently has a conviction buy rating and $40.40 price target on Woolworths shares.

In respect to dividends, Goldman is forecasting fully franked dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025. Based on the current Woolworths share price of $32.68, this will mean yields of 3.3% and 3.6%, respectively.

The post Buy Woolworths and these ASX dividend shares appeared first on The Motley Fool Australia.

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

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

More reading

• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• Buy these ASX dividend stocks for big 5%+ yields
• 34 ASX 200 shares with ex-dividend dates next week
• Top ASX shares to buy in March 2024
• Average wage tops $100k, worries for inflation, e-commerce flies: Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has positions in Endeavour 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.

from The Motley Fool Australia https://ift.tt/fjtSxB3

I regularly like to invest in ASX shares that can offer solid long-term returns. Sometimes my investing is aimed at ASX growth shares, and sometimes I choose ASX dividend shares.

I like the cash flow provided by ASX dividend shares, particularly ones with regularly growing dividends or ones with (resilient) high yields.

In this article, I’m going to cover two ASX shares I recently bought, one with a high yield and one with a regularly-growing payout.  

Metcash Ltd (ASX: MTS)

Metcash supplies food to IGA supermarkets and liquor to a large number of retailers including Thirsty Camel, Big Bargain Bottleshop, Duncans, Cellarbrations, The Bottle-O, IGA Liquor and Porters Liquor. It also has a hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

The business is currently raising capital to pay for some acquisitions, which I like the look of.

I like the businesses it’s buying with the cash. One acquisition is Superior Food, a business to business (B2B) food supply company, which is a “logical extension” of the ASX share’s food strategy. Food service is described as a large and growing market.

Metcash is also buying Bianco Construction Supplies, a construction and industrial supplies business servicing the South Australia and Northern Territory trade market.

The final business it’s buying is Alpine Truss, one of the largest frame and truss operators in Australia.

I decided to take part in the capital raising to increase my holding at a price I liked, which is $3.35 per share, a 10% discount to the current Metcash share price. At this level, the FY24 forecast dividend per share (on Commsec) translates into a grossed-up dividend yield of 8.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I like to regularly invest in Soul Pattinson shares. It offers diversification with a portfolio across a number of different sectors including telecommunications, resources, financial services, agriculture, swimming schools, property, bonds/credit and many more.

The ASX share uses the investment cash flow it receives to pay a growing dividend to investors. It has increased its annual ordinary dividend every year since 2000.

It’s steadily investing its excess cash flow into more investment opportunities, which can help the cash flow, portfolio value and dividends of Soul Pattinson in the future.

I like this one a lot because it’s steadily building the underlying value, which is helping my wealth.

The post 2 ASX shares I’ve been buying! appeared first on The Motley Fool Australia.

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

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

More reading

• Should you buy this ASX 200 stock for its 5%+ dividend yield?
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• If I were entering retirement tomorrow, I’d buy these ASX shares
• The ASX shares I’m buying for a stress-free retirement
• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?

Motley Fool contributor Tristan Harrison has positions in Metcash and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/YHd6h1D

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 7,735.8 points.

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

ASX 200 expected to edge lower

The Australian share market is expected to edge lower on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 1 point lower. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is up 0.15%, and the NASDAQ is flat.

Coles goes ex-dividend

Coles Group Ltd (ASX: COL) shares will be going ex-dividend on Tuesday for its upcoming dividend payment and could trade lower. The supermarket giant is paying a fully franked 36 cents per share dividend to shareholders. They can look forward to receiving this pay out later this month on 27 March.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a poor session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.6% to US$78.72 a barrel and the Brent crude oil price is down 1% to US$82.70 a barrel. This is despite news that OPEC is extending its cuts until mid-2024.

Iron ore price rises

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares will be on watch after the iron ore price rebounded on Monday. The benchmark iron ore price rose 2.1% to US$115.60 a tonne. However, this wasn’t enough to get the miners’ shares into positive territory on Wall Street overnight.

Gold price storms higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a great session after the gold price stormed to a three-month high overnight. According to CNBC, the spot gold price is up 1.35% to US$2,124.1 an ounce. This was driven by increasing rate cut hopes.

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

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

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

More reading

• Want to bank the Rio Tinto dividend? You’ll need to be fast!
• Here are the top 10 ASX 200 shares today
• ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright
• Is it too late to buy Westpac shares at a fresh 52-week high?
• Want the next BHP dividend? You don’t have long to act

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

from The Motley Fool Australia https://ift.tt/RyAQ87F

The Rio Tinto Ltd (ASX: RIO) dividend will soon be allocated to shareholders. If any investors want to receive this dividend, they’ll need to be quick.

The ASX mining share is committed to paying a good dividend, if profit allows. It’s planning to pay a large dividend in just a few weeks. The critical date is the ex-dividend date – investors need to buy Rio Tinto shares before this date if they want to receive the payment.

Important dates for the Rio Tinto dividend

The ex-dividend date for the upcoming dividend is 7 March 2024, which is on Thursday. That means Wednesday is the last day to buy Rio Tinto shares to receive the dividend.

Investors won’t have to wait long to receive the dividend – the payment date is 18 April 2024.

If investors want to take part in the dividend reinvestment plan (DRP), the election date is 5pm on 26 March 2024.

DRP shares will be purchased on-market as soon as practicable after the dividend payment date. Rio Tinto noted it may be necessary to carry out several market transactions to acquire the number of shares required. The DRP price will be the average of the deal prices for those transactions, which will be announced to the market.

How much is being paid?

Rio Tinto is going to pay a final fully franked dividend for the 2023 financial year of AU$3.9278 per share. This was an increase of around 20% compared to the final dividend for 2022.

The company determines its dividends in US dollars and pays the dividend to ASX shareholders in Australian dollars. The 2023 final dividend was US$2.58, an increase of 14.7%.

For the full-year payout, Rio Tinto decided on AU$6.5367 per share, which was a reduction of 8% compared to the 2022 full-year.

In US dollar terms, the Rio Tinto board determined to pay a full-year annual dividend of US$4.35, which was a reduction of 11.6%.

The post Want to bank the Rio Tinto dividend? You’ll need to be fast! appeared first on The Motley Fool Australia.

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

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

More reading

• 34 ASX 200 shares with ex-dividend dates next week
• One ASX mining sector at risk of more pain, and one ready to soar!
• Here’s the Rio Tinto dividend forecast through to 2026
• 3 ASX dividend shares to buy before it’s too late
• 5 reasons to buy Rio Tinto shares now

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

from The Motley Fool Australia https://ift.tt/0Qhj7VF

Certainly there are many different styles of investment out there, and individual investors have their own tastes.

Those that favour dividend shares might look at the outlook for income before deciding to buy an ASX stock. Punters who like ASX growth shares may well be analysing how fast the revenue is growing.

But there is one metric that all investors, regardless of their style and taste, need to pay attention to.

That’s according to finance expert and buy-and-hold advocate Brian Feroldi, who cited GoPro Inc (NASDAQ: GPRO) as a classic example.

“Ten years ago, few companies were as ‘on fire’ as GoPro. Its cameras were wildly popular. Revenue more than doubled over the two years ending in 2014. Net income quadrupled,” he said in his newsletter.

“And yet, if you invested $10,000 back then, today’s value would be a measly $600.”

What happened there?

Everyone loved GoPro, right?

Feroldi described GoPro’s fate in one word: moat.

“You hear investors talking about moats — or sustainable competitive advantages — all the time.

“Ask yourself this simple question: If someone gave you $1 billion to create a product to steal market share away from the industry leader, could you do it?”

If the answer is “yes”, then that company does not have a reliable moat.

“GoPro failed this test. It faced a slew of copycats — with budgets under $1 billion — and competed directly with the iPhone.”

Other US stocks — and there are plenty of ASX examples too — like Fitbit, Beyond Meat Inc (NASDAQ: BYND) and Groupon Inc (NASDAQ: GRPN) all came along in a blaze of glory.

But, as Feroldi, pointed out, over the years they all “destroyed vast amounts of shareholder wealth”.

All three stocks, if the investor had asked the moat question above, would have had the clear answer of “yes”.

A billion bucks can’t make a dent in these businesses

Conversely, if the answer is “no” for a particular company, you know that there is a strong chance a moat exists.

The best performing stocks in the US over the past decade — Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) — all easily pass the moat test.

“Amazon — $1 billion wouldn’t come close to matching its fulfilment centre network. Apple — a $1 billion budget could build a smartphone, but no one would buy it, even if they sold it at a loss,” said Feroldi.

“Google — multiple billions have been invested into Yahoo & Bing for decades, but they still don’t have 5% market share combined!”

Interestingly, moats aren’t necessarily about a unique technology or product.

“You could create a Coca-Cola Co (NYSE: KO) clone for less than $1 billion. But good luck supplanting the company’s brand proposition & distribution.”

So next time you consider buying an ASX stock, perform the moat test on it.

And you might even want to try that on the shares you already have in your portfolio.

The post The crucial question to ask of EVERY ASX stock in your portfolio appeared first on The Motley Fool Australia.

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

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

More reading

• Got $5,000? Buy and hold these ASX value stocks for years
• It’s not too late to buy these 2 rocketing ASX 200 stocks
• 12% dividend yield! 1 ASX income stock I’d buy today
• 2 ASX shares with ‘promising growth prospects’ just starting to creep up now
• Here are the top 10 ASX 200 shares today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Alphabet, Amazon, Apple, and Beyond Meat. The Motley Fool Australia has recommended Alphabet, Amazon, and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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