Although the returns on offer with term deposits are the best they have been in years, and could yet improve further if the RBA lifts rates again, they still pale in comparison to what’s available from ASX dividend shares.

For example, the shares listed below not only offer better yields but also have the potential to generate meaningful capital returns.

And while the share market is not risk-free, like term deposits are, the risk/reward on offer from these ASX shares could be compelling based on what analysts are saying. Here’s what you need to know:

APA Group (ASX: APA)

APA Group could be a good alternative to a term deposit. Particularly given that it could be classed as a lower risk option. This is because as an energy infrastructure company and owner of a $27 billion portfolio of gas, electricity, solar and wind assets, it has very defensive and predictable earnings.

You only need to look at its dividend history to see this. APA Group will soon increase its dividend for the 20th year in a row. Few ASX shares can match that record.

Macquarie is very positive on the company and has an outperform rating and $9.40 price target on its shares. This implies a potential upside of ~18% for investors over the next 12 months.

The broker also expects some generous dividend yields. It is forecasting dividends of 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $7.99, this equates to 7% and 7.2% yields, respectively.

Accent Group Ltd (ASX: AX1)

While this ASX dividend share is certainly higher up the risk scale than APA Group, its forecast dividend yields and major upside potential arguably make it worth considering.

Thanks to “continuing casual footwear trends and as sports, fitness & wellness related spending remains a priority,” Bell Potter is bullish on the footwear retailer and sees a lot of value in its shares.

The broker currently has a buy rating and $2.50 price target on them. Based on the current Accent share price of $1.94, this implies potential upside of almost 30% for investors over the next 12 months.

As for income, the broker is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. This represents dividend yields of 6.7% and 7.5%, respectively.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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• 3 ASX dividend stocks to buy with 5% to 7% yields
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• Why APA Group, Immutep, NAB, and Immutep shares are sinking
• Buy Telstra and these ASX dividend stocks in July
• 4 ASX income stocks for Aussie investors to buy now

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 Apa Group and Macquarie Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) was on form in FY 2024. Over the 12 months, the benchmark index delivered a solid return of 7.8% before dividends.

Unfortunately, not all shares on the ASX 200 were able to rise with the market. Here’s why these were the worst performers on the index during the year:

Liontown Resources Ltd (ASX: LTR)

The Liontown Resources share price was the worst performer on the ASX 200 in FY 2024 with a 68% decline. This was driven by the collapse of its proposed takeover by Albemarle Corp (NYSE: ALB) and significant lithium price weakness. The latter is bad news for Liontown, which will be commencing production at the Kathleen Valley Lithium Project in the coming weeks. For many of the same reasons, the IGO Ltd (ASX: IGO) share price lost 63% of its value during the 12 months. Liontown and IGO are not alone, though. Many other ASX lithium stocks are down materially over the same period.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price wasn’t far behind with a 54% decline over the 12 months. Investors were selling this casino and resorts operator’s shares due to concerns over news that the NSW Independent Casino Commission is launching another inquiry. In addition, the company’s trading performance was very disappointing. Management blamed the subdued performance on its Premium Gaming Rooms (PGRs) business.

Healius Ltd (ASX: HLS)

The Healius share price was out of form and sank 49% during the financial year. Investors were selling this medical and pathology centre operator’s shares due to its significant underperformance. In addition, the company was forced to undertake capital raising at a significant discount to its prevailing share price. The company advised that it decided to raise the funds to reduce its net debt and reset its balance sheet with appropriate gearing.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price lost 46% of its value during FY 2024. This was also driven partly by the significant downturn in the performance of the building materials company. Fletcher Building advised that market conditions across the company’s Materials and Distribution divisions have weakened throughout the year. In light of this, it revealed that it will fall short of its EBIT before significant items guidance. In addition, management warned that it expects market conditions to remain challenging in both New Zealand and Australia in the near term.

The post These were the five worst ASX 200 shares to own in FY24 appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

The share market has historically delivered investors a return of 10% per annum.

While this is a very good return, there are some ASX shares that have been tipped to rise significantly more than this over the next 12 months.

Let’s take a look at three ASX shares that analysts believe have market-beating potential:

Amotiv Ltd (ASX: AOV)

The first ASX share that could have plenty of upside is Amotiv. Until recently, it was known as GUD Holdings. It is a diversified automotive parts company and the name behind brands such as Narva and Ryco.

Morgans is a fan of the company and has an add rating and $13.71 price target on its shares. This implies potential upside of 30% for investors. It commented:

GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD’s investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.

Endeavour Group Ltd (ASX: EDV)

Over at Goldman Sachs, its analysts believe this drinks giant’s shares are cheap. Last week, the broker reaffirmed its buy rating with an improved price target of $6.50. Based on where the ASX share is currently trading, this suggests that upside of 28% is possible for investors.

The broker likes Endeavour due to its defensive qualities and attractive valuation. It commented:

Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in.

Lynas Rare Earths Ltd (ASX: LYC)

Bell Potter thinks that this rare earths producer’s shares are undervalued at current levels. Last week, the broker put a buy rating and $7.80 price target on its shares. This implies potential upside of 31% for investors over the next 12 months.

Its analysts believe that rare earths prices are close to rebounding from recent weakness. It said:

We continue to see prices painstakingly grind higher from current levels through to the end of the year. China domestic supply may continue to keep a lid on rapid price revisions, however not at current levels. Reports of activity over March highlighted a reduction in NdPr oxide imports into China and a reluctance of domestic miners to sell material to downstream magnet makers whose stockpiles were bottoming out. Combine this with a rapid rise in EV production globally and you have a more positive outlook for NdPr.

The post These ASX shares could rise 25% to 30% appeared first on The Motley Fool Australia.

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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.

Tech shares led the ASX 200 market sectors last week with a 2.67% gain over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.18% to finish the final trading week of the 2024 financial year at 7,767.5 points.

Only three of the 11 market sectors finished the week in the green.

Let’s recap.

Technology shares led the ASX sectors last week

Among the major ASX 200 tech stocks, Wisetech Global Ltd (ASX: WTC) shares had a great week, with a 5.82% gain despite the company not releasing any price-sensitive news.

The Wisetech share price closed FY24 at $100.30 on Friday, up 25.67% over FY24.

Life360 Inc (ASX: 360) shares rose 2.5% over the week to finish at $16.37. The ASX 200 social networking app developer was the sector’s top growth stock for FY24, with a phenomenal 122.72% uplift.

The second-biggest ASX 200 tech share, Xero Limited (ASX: XRO), rose 2.06% last week. Xero shares closed at $136.40 on Friday, up 14.69% over FY24.

TechnologyOne Ltd (ASX: TNE) shares lifted 0.54% to $18.60 by Friday. That’s an 18.85% gain in FY24.

The Nextdc Ltd (ASX: NXT) share price lost ground in the final trading week of FY24. NextDC shares fell 1.67% to close at $17.63.

The ASX 200 data centre-as-a-service operator made an impressive 41.72% share price gain over FY24.

Altium Ltd (ASX: ALU) shares closed at $68.03, up 0.21% over the week and 84.26% over FY24.

Altium advised the market this week that most regulatory approvals for its takeover by Renesas Electronics Corp have now been obtained.

What about ASX technology ETFs?

Among the ASX tech ETFs this week, Betashares Global Cybersecurity ETF (ASX: HACK) had a ripper week with a 3.08% gain to $11.70 per share over the five trading days.

The ASX HACK is benefitting from rising new demand as enterprises around the world seek to protect themselves from cyber attacks like those experienced by Optus and Medibank Private Ltd (ASX: MPL).

The HACK ETF ascended 27.31% over FY24.

Betashares Nasdaq 100 ETF (ASX: NDQ) rose 0.82% to finish the week at $45.51 per share. This is just short of its all-time high set on 18 June at $45.73 per ETF unit.

The ASX NDQ had a rocking FY24, soaring 31%, largely due to the success of the Magnificent Seven stocks within the NASDAQ 100. These include superstar stocks Nvidia Corp and Microsoft Corp.

Here are some things you may not know about the ASX NDQ.

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
Information Technology (ASX: XIJ)	2.67%
Energy (ASX: XEJ)	0.93%
Financials (ASX: XFJ)	0.16%
Industrials (ASX: XNJ)	(0.07%)
Consumer Staples (ASX: XSJ)	(0.08%)
Healthcare (ASX: XHJ)	(0.20%)
Communication (ASX: XTJ)	(0.35%)
Utilities (ASX: XUJ)	(0.52%)
Materials (ASX: XMJ)	(0.84%)
Consumer Discretionary (ASX: XDJ)	(1.29%)
A-REIT (ASX: XPJ)	(3.34%)

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

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Life360, Microsoft, Nvidia, Technology One, WiseTech Global, and Xero. 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 positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Microsoft, Nvidia, and Technology One. 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:

Bellevue Gold Ltd (ASX: BGL)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner’s shares with a buy rating and $2.20 price target. Goldman is feeling very positive about the gold miner’s outlook. It highlights that Bellevue Gold is now largely through its initial ramp up stage. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given the higher average grades it is achieving, its stronger margin generation, and estimated near-term free cash flow yields of ~10%. In addition, Goldman notes that it sees low-cost mill expansion and underground optionality. It feels this potentially supports further upside for the company in the medium term. The Bellevue Gold share price ended the week at $1.78.

South32 Ltd (ASX: S32)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating on this mining giant’s shares with an improved price target of $4.50. According to the note, the broker has been reviewing its commodity price forecasts. Following the review, Macquarie remains very positive on a number of commodities that South32 produces. This includes aluminium, met coal, and nickel. In light of this, the broker has boosted its earnings estimates for South32 for the coming years and has named the diversified miner as its top pick among the large cap miners right now. The South32 share price was fetching $3.66 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Finally, analysts at Goldman Sachs have reiterated their buy rating on this retail giant’s shares with an improved price target of $40.20. According to the note, the broker believes that concerns over margin weakness and regulatory reviews are overdone and have created a buying opportunity for investors. In respect to supermarket margins, Goldman’s analysis and channel checks are pointing to resilient ~3% industry topline supermarket growth from improving volume. In addition, it sees plenty of levers for gross profit margin expansion through business model mix and margin optimisation opportunities. In fact, Goldman believes this will allow Woolworths to grow its earnings per share by a compound annual growth rate of 8.2% between FY 2024 and FY 2027. The Woolworths share price ended Friday’s session at $33.79.

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

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and 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.

Coles Group Ltd (ASX: COL) shares have risen 5.71% in 2024 to date, while the S&P/ASX 200 Index (ASX: XJO) has risen by 2.33%. The recent strength of its sales performance may mean the business is one to watch in FY25.

The company’s update for the third quarter showed supermarket sales rose 5.1% year over year to $9.06 billion, which was faster growth than Woolworths Group Ltd‘s (ASX: WOW) recent FY24 third-quarter sales growth.

Coles’ CEO Leah Weckert said the sales performance reflected “strong execution” of its trade plans and “continued focus on delivering great value and great quality alongside improved availability.” Coles has also seen a “meaningful” increase in customers interacting with its digital platforms and loyalty programs.

Outlook

When Coles gave its third-quarter update on 30 April 2024, it provided some outlook commentary that I think could be useful and applicable to Coles shares for at least the first few months of FY25 unless conditions dramatically change.

The company said in the early part of the fourth quarter, supermarket volumes remained “positive”, underpinned by value campaigns and strong execution.

It has continued to see deflation in fresh produce and meat, and a moderation in inflation across its broader packaged categories which is “pleasing” for customers under the current economic conditions, according to Coles.

Coles also said it had made good progress in addressing loss (such as theft), which is expected to continue in the fourth quarter.

In liquor, discretionary spending is “expected to remain subdued”.

Coles CEO Weckert said:

We remain committed to providing our customers the best possible value on their grocery bills. We are well positioned in the current economic environment as we continue to invest in value, including through our Autumn value campaign with the prices lowered on 300 products in store and online.

Our recently launched KitchenAid Ovenware campaign provides additional value to customers who will be cooking more at home through the cooler months. Looking forward, I believe that the opening of our Kemps Creek Automated Distribution Centre and our two CFCs will be yet another step on our road to improving operating efficiency and differentiating our offer.

Analyst forecasts for Coles shares

The broker UBS has forecast that Coles could generate $43.8 billion in sales, $1.97 billion of earnings before interest and tax (EBIT) and $1.07 billion of net profit after tax (NPAT) in FY24. UBS also suggests Coles could pay an annual dividend per share of 72 cents for FY24.

The broker expects growth for Coles’ financials in FY25, with a prediction of $44.3 billion in sales, $2.1 billion in EBIT and $1.15 billion in NPAT.

UBS also predicts the company could pay an annual dividend per share of 75 cents in FY25. UBS has a price target of $18.25 on Coles shares, which implies the Coles share price could rise around 7.16% in the next 12 months.

The post Should Coles shares be in your shopping basket with its FY25 outlook? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

The S&P/ASX 200 Index (ASX: XJO) gained a solid 8% in FY 2024, but these three top-performing ASX 200 shares left those gains wanting.

Here’s what got investors excited in the financial year just past.

Three top-performing ASX 200 shares

Financial technology company Hub24 Ltd (ASX: HUB) is the third best-performing ASX 200 share in FY 2024.

Hub24 shares closed out FY 2023 trading at $25.86. At Friday’s close, the stock was trading for $46.55 a share, up 80% over 12 months.

Hub24 reported on its most recent financial performance on 21 April, when the company released its Q3 FY 2024 results.

As you’d expect from the strong share performance, the fintech company’s results showed strong ongoing growth.

Highlights included a 90% year-on-year increase in platform net inflows, which reached $3.5 billion, a new third-quarter record. The company’s total funds under administration (FUA) reached $100.0 billion as of 31 March.

At its half-year results, Hub24 reported a 14% year-on-year increase in total revenue of $156.7 million for the six months.

Moving on to the second-best ASX 200 share to have been bought and held in FY 2024, electronic design software platform provider Altium Ltd (ASX: ALU).

The Altium share price ended FY 2023 at $36.38. Shares closed on Friday trading for $68.03 apiece, up 87% in a year.

Shares have been in an uptrend for most of the past 12 months, but the Altium share price really took off on 15 February.

That’s when investors learned that management of the ASX 200 share had unanimously accepted a takeover offer from Japan’s Renesas Electronics Corporation and urged shareholders to do the same. The takeover offer valued Altium at $68.50 per share. The Altium share price closed up 28.8% on the day.

Which brings us to the best ASX 200 share to have held in your portfolio in FY 2024, health imaging company Pro Medicus Ltd (ASX: PME).

12 months ago, you could have bought Pro Medicus for $65.76 a share. On Friday, those same shares closed out the financial year, swapping hands for $143.26 apiece, up an eye-watering 117.8%.

The Pro Medicus share price has been trending strongly upward for most of the past year, supported by a record number of new contracts.

Most recently, on 28 May, the ASX 200 share announced it had inked five new contracts valued at $45 million. And management indicated investors could expect more good news in the months ahead.

Commenting on the new contract at the time, Pro Medicus CEO Sam Hupert said: “Despite record new contract signings this year, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments.”

Investors are also enthusiastic about the company’s potential to harness AI to streamline costs and enhance its products. Towards the end of FY 2023, Pro Medicus recruited two people dedicated to its AI ambitions.

With the ASX 200 share racing higher, Pro Medicus joined the S&P/ASX 100 Index on 18 March as part of the S&P Dow Jones Indices quarterly rebalance.

The post The best three ASX 200 shares to buy and hold in FY 2024 revealed appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Hub24, and Pro Medicus. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.