I’m a fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

To demonstrate just how successful this investment strategy can be with ASX 200 shares, I often like to see how much a single $20,000 investment in certain ASX 200 shares 10 years ago would be worth today.

Let’s see how investments in these shares have fared during the past decade:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share that has smashed the market over the last decade is Breville. It is one of the world’s leading kitchen appliance manufacturers.

It has been growing its sales and earnings at a consistently solid rate since 2014. One of the drivers of this has been its ongoing investment in research and development, which ensures that its portfolio is filled to the brim with innovative products.

In addition, its global expansion and earnings accretive acquisitions, particularly in the coffee market, have helped support its growth.

This has allowed Breville’s shares to achieve an average total return of 13.8% per annum over the decade. This would have turned a $20,000 investment 10 years ago into almost $73,000 today.

Northern Star Resources Ltd (ASX: NST)

Another market beater has been Northern Star. Over the last 10 years, this gold miner has developed from a reasonably small player into one of the largest in the world.

In addition, with the gold price trading at lofty levels, this has supported its margins as its production increases.

Unsurprisingly, this has done wonders for its shares. So much so, Northern Star is one of the best performing ASX 200 shares over the last decade. During this time, its shares have generated an average total return of 30% per annum. This incredible return means that a $20,000 investment back in 2014 would now be worth a sizeable $275,000.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that has delivered the goods for investors over the past decade is ResMed. It is a leading medical device company with a focus on the growing (and huge) sleep disorder treatment market.

Thanks to the growing awareness of sleep disorders like sleep apnoea and its industry-leading masks and software, ResMed has reported consistently strong sales and earnings growth since 2014.

This has led to its shares providing investors with an average total return of 19.8% per annum over the period. This means that a $20,000 investment in ResMed’s shares 10 years ago would have grown to be worth approximately $122,000 now.

Overall, I believe this shows just how rewarding it can be to invest with a long term view.

The post $20,000 invested in these ASX 200 shares 10 years ago is now worth… (a lot!) appeared first on The Motley Fool Australia.

More reading

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• 2 ASX healthcare shares to buy now for the AI revolution
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX growth shares to buy to supercharge your portfolio in June

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

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, analysts have retained their buy rating and $19.00 price target on this supermarket giant’s shares. Citi has been visiting stores to get a better idea of how the big two supermarket operators are performing with their respective strategies. It believes that Coles’ pricing strategy is resonating more with consumers and will result in stronger sales growth during the fourth quarter of FY 2024. This is based on its belief that Coles’ strategy is being executed better and has a stronger value perception. And while Citi rates both supermarket giants as buys, its preference at this point is Coles. The Coles share price ended the week at $16.42.

Pro Medicus Limited (ASX: PME)

A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating on this health imaging technology company’s shares with an improved price target of $136.00. This follows news that Pro Medicus has won five new contracts with a minimum contract value of $45 million. Goldman highlights that this brings the company’s minimum total contract value (TCV) for new sales this financial year to $245 million. And there’s still potential for more contract wins given its sizeable sales pipeline. Goldman believes this supports its view that the company’s Visage 7 software is an industry-leading solution and that the company is the incumbent technology leader in radiology and well-placed to take market share. The Pro Medicus share price was fetching $120.12 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and $8.05 price target on this airline operator’s shares. Goldman believes that the market is severely undervaluing Qantas’ shares. It suspects that this could be due to investors pricing in a trade off between investment (fleet and customer) and capital returns (dividends and buybacks). However, the broker believes that Qantas can return significant capital to shareholders and invest in its fleet while still maintaining a strong balance sheet. As a result, its analysts see the Flying Kangaroo’s cheap valuation as a buying opportunity. It is also worth noting that Goldman is expecting the Qantas dividend to return in 2025. The Qantas share price ended the week at $6.15.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• ASX 200 shares are still cheap! Here’s one to consider buying now
• Top ASX shares to buy in June 2024
• Guess which 3 ASX 200 shares are leading the charge higher this week
• Brokers name 3 ASX shares to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Picking out ‘safe’ ASX shares in the consumer discretionary sector is a tough ask. For one thing, there is really no such thing as a ‘safe’ ASX share, no matter what sector of the market you are looking in.

If you want absolute certainty that you won’t lose money on an investment, the share market is the wrong place to look.

No one can predict how the market will price any asset. You might think a share is worth a certain amount for whatever reason. But if the market doesn’t agree with you, there’s not much you can do about it.

But even if we do assume you can get pretty close to a safe ASX share, the consumer discretionary sector is a fraught place to search anyway – it’s all in the name. Consumer discretionary stocks tend to sell goods or services that consumers may or may not purchase depending on their economic circumstances.

When a downturn or recession hits, these consumers tend to cut back on discretionary items such as new clothes, cars or electrical appliances.

That makes the companies that sell them inherently cyclical.

But this doesn’t mean there aren’t some deals to be found in this space right now. So today, let’s discuss three consumer discretionary shares that I think you can call ‘safe’ relative to their peers for a long-term investment today.

3 ‘safe’ ASX consumer discretionary stocks today

Super Retail Group Ltd (ASX: SUL)

Super Retail Group is the ASX retail share behind popular chains like Super Cheap Auto, Macpac, Rebel and BCF.

I like this retailer because it is resistant to the typical economic cycle that affects other consumer discretionary shares. Australians tend to keep shopping at stores like Super Cheap and BCF regardless of the economic weather.

To illustrate this defensiveness, Super Retail posted a robust half-year earnings report in February. This report showed the company increasing half-year revenues by 3.2% despite the ongoing cost-of-living crisis.

Super Retail shares also offer a 5.75% fully franked dividend yield today.

JB Hi-Fi Ltd (ASX: JBH)

JB is another ASX consumer discretionary stock that I think makes for a great investment in any economic climate.

This company has shown a remarkable ability to move with the times. Two decades ago, it mainly stocked hi-fi, DVDs, music, and video games. But today, JB is more known as a destination for electronics, home appliances, and office equipment. That’s for both its eponymous chain of JB Hi-Fi stores and its Good Guys side hustle.

JB Hi-Fi has been struggling with a downturn in consumer demand over the past year.

However, I think the 10% drop in the JB share price that we’ve seen over the past couple of months has left this consumer discretionary stock looking pretty cheap today on a price-to-earnings (P/E) ratio of under 14. That comes with a fully franked dividend yield of 4.7%. It could be a great entry point for long-term investors.

Premier Investments Limited (ASX: PMV)

A final stock that you might name amongst the ‘safe shares’ of the consumer discretionary sector is Premier Investments. Like Super Retail Group, this company owns a large portfolio of successful Australian stores, including Peter Alexander, Smiggle, JayJays, Dotti, and Just Jeans.

As with Super Retail’s businesses, these stores seem to be more resistant to adverse economic circumstances than most. Over the first half of FY2024, Premier Investments posted a 1.65% rise in statutory net profits after tax, as well as a hike to its interim dividend.

Premier’s $209.8 million in earnings before interest and tax during the half was a 66.4% increase over the company’s earnings during the first half of FY2020.

I also think that Premier’s plans to spin off its profitable Smiggle and Peter Alexander divisions will be beneficial to long-term investors.

Right now, Premier shares are trading on a fully franked dividend yield of just over 4%.

The post What are 3 of the safest ASX consumer discretionary shares in Australia right now? appeared first on The Motley Fool Australia.

More reading

• 4 top ASX dividend shares to buy next week
• ASX retail shares mixed amid modest April sales growth
• 4 ASX 200 shares being scooped up by insiders
• Beat the bank! 2 ASX stocks worth buying to make more money than interest on savings
• Analysts say these 4 ASX dividend shares are buys

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer staple shares led the ASX 200 market sectors last week with a 1.02% gain over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.91% to finish the week at 7,701.7 points.

Six of the 11 market sectors finished the week in the green.

Let’s recap.

Consumer staple shares led the ASX sectors last week

The biggest ASX consumer staple stock Woolworths Group Ltd (ASX: WOW) moved 0.57% higher last week. Woolworths shares closed at $31.60 on Friday.

Among the other large sector players, Coles Group Ltd (ASX: COL) shares lifted 1.48% to $16.42 apiece.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lost 1.95% to finish the week at $11.33 apiece.

Endeavour Group Ltd (ASX: EDV) shares lost 0.6% over the week to finish at $4.96 on Friday.

Among the big movers in the staples sector this week was Australian Agricultural Company Ltd (ASX: AAC). The stock rose 7.8% despite no price-sensitive news to finish at $1.52 per share on Friday.

ASX 200 agricultural share Select Harvests Ltd (ASX: SHV) lifted 4.47% to $3.27. Most of those gains came on Friday after the company released its 1H FY24 results.

The almond farmer and processor reported a net profit after tax (NPAT) loss of $2.1 million. But this was an improvement on the prior corresponding period of 1H FY23 when a $96.2 million loss was recorded.

Select Harvests managing director David Surveyor said:

The operating environment for the almond industry remains challenging. In the US, almond prices have been below the cost of production since the 2020/21 season.

Through this period, Select has made strong progress on its transformational program and is ready to benefit from the cyclical upturn.

The Bega Cheese Ltd (ASX: BGA) share price increased 2.76% over the five days to $4.46 on Friday.

There was no news from Bega this week. However, my colleague Bernd says the price surge could relate to speculation that milk prices may fall over the months ahead, thereby reducing Bega’s input costs.

Ridley Corporation Ltd (ASX: RIC) rose 1.94% to $2.10. There was no news from the company this week.

Top broker Goldman Sachs says its key buy calls among ASX retail shares are now skewed towards consumer staples over discretionary stocks.

Goldman has buy ratings on three of the top four consumer staple shares by market capitalisation.

They are Woolworths shares with a 12-month price target of $39.40, Treasury Wine shares with a 12-month price target of $13, and Endeavour shares with a 12-month price target of $6.30.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Staples (ASX: XSJ)	1.02%
Consumer Discretionary (ASX: XDJ)	0.83%
Communication (ASX: XTJ)	0.59%
Information Technology (ASX: XIJ)	0.26%
Healthcare (ASX: XHJ)	0.15%
A-REIT (ASX: XPJ)	0.09%
Financials (ASX: XFJ)	(0.26%)
Industrials (ASX: XNJ)	(0.35%)
Energy (ASX: XEJ)	(0.6%)
Materials (ASX: XMJ)	(1.35%)
Utilities (ASX: XUJ)	(2.73%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

More reading

• 4 top ASX dividend shares to buy next week
• These were the best performing ASX 200 shares in May 2024
• Guess which 3 ASX 200 shares are leading the charge higher this week
• If you were born in the 1970s or later, your superannuation is delivering the best returns
• 5 things to watch on the ASX 200 on Friday

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

The two ASX dividend shares I’m going to tell you about pay high levels of passive income. Due to their rewarding dividend yields, they could produce $1,000 of passive income, or more, over the next year.

When businesses have a relatively low price/earnings (P/E) ratio, where they trade at a low multiple of their earnings, they are more likely to have a good dividend yield.

ASX retail shares usually trade on a lower earnings multiple than some sectors like ASX tech shares or ASX industrial shares. Below are two ASX dividend shares that have a commendable history of dividend payments.

Shaver Shop Group Ltd (ASX: SSG)

As the name suggests, Shaver Shop is a retailer that specialises in male and female personal grooming products, including electric shavers, clippers, trimmers, and wet shave items. It has 123 Shaver Shop stores across Australia and New Zealand. The company also offers oral care, hair care, massage, air treatment, and beauty products.

Impressively, the ASX dividend share has grown its annual payout every financial year since it started paying a dividend in 2017, though that streak is not guaranteed to continue. Using the last two declared dividends, it has a trailing grossed-up dividend yield of 13%.

In the trading update for 1 January 2024 to 22 February 2024, it revealed total sales were up 0.9%, which is beneficial for the profit generation and supporting the dividend.

In a drive to boost in-store and online operational efficiency, as well as improve the customer experience, it has invested in a new software platform, which was planned for the second half of FY24.

There are multiple ways the business can raise profit in the future, including growing its store network, increasing online sales, expanding its range of products and capturing market share. A rising Australian population is another helpful tailwind for the company.

Nick Scali Limited (ASX: NCK)

Nick Scali is a leading furniture retailer through its Nick Scali and Plush brands.

I think this ASX dividend share is a well-run business, with management focused on moves that will generate good profit growth for investors.

The passive income stock grew its annual payout every year between FY13 to FY23, which is an excellent record considering furniture retailing isn’t what I’d call an ultra-defensive sector.

Nick Scali’s last two dividends amount to 70 cents, which is a grossed-up dividend yield of 7.2%.

The company plans to add another 70 or so stores to its Australia and New Zealand network over the long term. It had 108 stores on 31 December 2023, so there are still a lot of additional stores to go.

The ASX retail share announced it was expanding into the UK by acquiring Fabb Furniture, which has a 21-store network. The company intends to establish the Nick Scali brand in the UK. Management believes there is a “significant opportunity” to drive long-term profitable growth.

Foolish takeaway

Those two companies together have an average grossed-up dividend yield of 10.1%, so an investment of just under $10,000 across the two ASX dividend shares could make an income of $1,000 over the next 12 months.

The post 2 ASX dividend shares that could create $1,000 in passive income in 2024 appeared first on The Motley Fool Australia.

More reading

• Top 5 reasons for retirement in Australia
• Here’s the average wealth of Aussies who manage their own superannuation
• 4 top ASX dividend shares to buy next week
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• These ASX shares can rise 25% to 100%+

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 recommended Nick Scali and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Access to financial support is the top reason prompting Australians to commence their retirement, according to a new report from the Australian Bureau of Statistics (ABS).

This includes reaching the preservation age for access to superannuation and reaching the ‘retirement age’, which refers to the age at which we become eligible to receive the age pension.

Most retirees in Australia today are from the Baby Boomer generation. The Boomers were born between 1945 and 1964, making the youngest in this cohort 60 years of age.

Preservation ages vary depending on when you were born. For those born after 30 June 1964, it’s 60 years of age. That means every boomer will have access to their superannuation after this year.

Meanwhile, the pension age in Australia is 67. So, the youngest baby boomers still have seven years to wait to be eligible for this financial support.

Currently, the age pension is the main income source for most Australians in retirement, with superannuation the second main source.

Bjorn Jarvis, ABS head of labour statistics said:

In 2022-23, a Government pension or allowance was still the main source of personal income at retirement for 43 per cent of retirees. This was followed by Superannuation, an annuity or private pension at 27 per cent.

What does financial support actually mean?

Superannuation

Obviously, everyone has varying amounts of money in their superannuation account at preservation age.

However, according to Australian Taxation Office (ATO) data, the average superannuation balance for an Australian aged between 65 and 69 years is $428,738.

If we break the numbers down by gender, the average balance for men is $453,075, and the average for women is $403,038.

Age pension

Following the most recent inflation indexing update on 20 March, the full age pension is now a taxable $43,752.80 per annum for couples and $29,023.80 for singles.

These amounts include the maximum pension supplement and energy supplement.

What are the other top 4 reasons for retirement?

The ABS data looks at the reasons Australia’s 4.1 million retirees entered retirement.

As we said earlier, the top reason was access to financial support (31% of respondents).

The second most common reason for retirement was sickness, injury or disability (13%).

The third most common was being retrenched, dismissed, or unable to find work (5%).

Next on the list is retiring to care for an ill, disabled or elderly person (3%).

And finally, the fifth most common reason was that their employment ended because their job was temporary, seasonal or holiday work.

The important thing to note here is that many people retire for reasons that are not of their choosing. This is leading to many retiring earlier in life than planned.

8-year gap between actual and intended age of retirement

The ABS data shows a significant disparity between when people actually retire and when they intend to retire.

The average age at which most people intend to retire is 65.4 years. But among those already retired, the age at which they retired was substantially lower at 56.9 years.

A new survey from insurer TAL shows six in 10 Australians retired earlier than expected. This is a reminder to all of us who are still working that we need to start our financial planning sooner rather than later.

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

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

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

The post Top 5 reasons for retirement in Australia appeared first on The Motley Fool Australia.

More reading

• Here’s the average wealth of Aussies who manage their own superannuation
• 4 top ASX dividend shares to buy next week
• Top ASX green energy stocks in June 2024
• These ASX shares can rise 25% to 100%+
• Buy one, sell the other: Goldman’s take on these 2 ASX bank shares

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.