Stock Pick

  • Why is the ANZ share price sinking today?

    The ANZ Group Holdings Ltd (ASX: ANZ) share price is starting the week in the red.

    In morning trade, the banking giant’s shares are down by 4% to $27.89.

    As a comparison, the benchmark ASX 200 index is currently 0.1% lower in early trade.

    Why is the ANZ share price tumbling?

    The big four bank’s shares are falling today after trading ex-dividend for its upcoming interim dividend.

    When a share trades ex-dividend, it means that the rights to an impending dividend payment are now settled.

    As a result, if you were to buy its shares today, the rights to that dividend would stay with the seller and not transfer to the buyer.

    Given that a dividend forms part of a company’s valuation, a share price will tend to drop in line with the value of the dividend on the ex-dividend date. After all, it new buyers don’t want to pay for something that they won’t receive.

    What is the ANZ dividend?

    Last week, ANZ released its first-half results and reported a cash profit of $3,552 million for the six months ended 31 March. This represents a 1% decline compared to the second half of FY 2023.

    This reflects a strong performance from the Institutional business, which reported a 12% lift in cash profit to $1,522 million, which was offset by a poor half for the Australia Retail business. It posted a 9% decline in cash profit to $794 million despite delivering above-system home loan growth with pricing above cost of capital.

    However, much to the delight of shareholders, that profit decline didn’t stop the bank from increasing its dividend by 2 cents year on year to 83 cents per share. This dividend is partially franked at 65%.

    Based on Friday’s closing ANZ share price of $29.09, this dividend equates to an attractive 2.9% dividend yield. And there’s still a final dividend coming in six months.

    But what will that dividend be? Analysts at Goldman Sachs believe that a final dividend of 81 cents per share will be declared with the bank’s full year results. This will bring its total dividends for the year to $1.66 per share. This equates to a dividend yield of 5.7% based on last week’s closing price.

    When is pay day?

    Eligible shareholders won’t have to wait too long until they are paid out the bank’s interim dividend.

    ANZ is currently scheduled to make this dividend payment in 7 weeks on 1 July.

    ASIC investigation

    In other news, also potentially weighing on the ANZ share price is reports that ASIC is investigating the company for suspected contraventions of a number of provisions of the ASIC Act and the Corporations Act.

    According to The Australian, the investigation relates to ANZ’s execution of a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management.

    The post Why is the ANZ share price sinking today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Australia And New Zealand Banking Group right now?

    Before you buy Australia And New Zealand Banking Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australia And New Zealand Banking Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

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

  • How to choose ASX shares for passive income

    Woman relaxing on her phone on her couch, symbolising passive income.

    ASX shares that offer dividends can be appealing, but how are you supposed to choose between them all for passive income?

    In this article, I’m going to talk about three of my favourite ways to evaluate ASX dividend shares. Some investors may have different priorities, but I’d suggest that each element that I’m going to talk about is important for every income investor to think about.

    Dividend yield

    The headline-grabber for a lot of dividend investors is the dividend yield, so let’s start there.

    This tells us how much of a cash payment an investor can expect from their investment. For example, if someone invested $1,000 in a business with a 4% dividend yield, it’d pay $40 over a year. A 6% dividend yield would pay $60. And so on.

    As income investors, we want a certain amount of payout from our stocks. However, a yield that is too big may not be the best option if the dividend is in danger of being cut or if a high dividend payout ratio means little re-investing for growth.

    Examples of high-yield dividend shares I’m interested in are Telstra Group Ltd (ASX: TLS) and Metcash Ltd (ASX: MTS). In FY25, according to Commsec, Telstra is projected to pay a grossed-up dividend yield of 7.4%, and Metcash is projected to pay a grossed-up dividend yield of 7.8%.

    Stability

    Passive income is a useful source of returns, but only if the payments keep coming. If someone is relying on income to pay for their life expenses, then they need those dividends to keep flowing, even during a recession.

    Dividends aren’t guaranteed, but some businesses operate in more stable industries than others, resulting in stable profits and resilient payments.

    Commodity prices have a history of bouncing around, so while Rio Tinto Ltd (ASX: RIO) has a projected grossed-up dividend yield of 7.5% for FY24, it could easily be substantially smaller in FY25 if the iron ore or copper price crashed in 2025.

    Energy infrastructure business APA Group (ASX: APA) provides half of the nation’s gas usage, which provides predictable cash flow to pay growing distributions. It has grown its distribution every year for the past 20 years.

    Brickworks Limited (ASX: BKW) has a diversified asset base, which is paying its growing rental profits and rising dividends, enabling Brickworks to grow its dividend every year for the past decade. It hasn’t cut its dividend for almost 50 years.

    Sonic Healthcare Ltd (ASX: SHL) is an ASX healthcare share that has grown its dividend most years over the past three decades, including consistent annual growth over the past decade.

    Dividend growth

    The last few years have shown how important it is for our work/investment income to grow to ensure we stay on top of inflation.

    A business like APA has a great track record of slow and steady growth, but there are a number of companies that have grown their dividends at a much faster pace. That means a lower starting dividend yield can catch up to and overtake a high (but stable) yield over the years.

    For example, Collins Foods Ltd (ASX: CKF) has grown its annual dividend by around 150% in the past decade.

    Pinnacle Investment Management Group Ltd (ASX: PNI) has grown its annual dividend by 210% in the last six years.

    Fund manager GQG Partners Inc (ASX: GQG) has just grown its latest quarterly payment by 56% year over year.

    Foolish takeaway

    By looking at these three passive income factors, I think investors can build a good dividend portfolio without being lured into names that aren’t necessarily the right long-term choice (in my opinion).

    I’m a fan of many of the businesses I’ve mentioned, which is why I’m a shareholder in a lot of them for dividends and long-term capital growth.

    The post How to choose ASX shares for passive income appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has positions in Brickworks, Collins Foods, Metcash, and Sonic Healthcare. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, Pinnacle Investment Management Group, and Telstra Group. The Motley Fool Australia has recommended Collins Foods, Metcash, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • An engineer landed jobs at Google and Microsoft with this 2-page résumé — and describes the section she considers a non-negotiable

    Sonakshi Pandey Google photo
    Sonakshi Pandey's resume includes a section on her volunteering and mentorship efforts.

    Sonakshi Pandey

    • Sonakshi Pandey switched roles at Amazon, then moved to Google to be a customer engineer.
    • Pandey credits mentorship with transitioning her career and growing more confident.
    • Pandey's résumé includes company blogs and a section on her volunteering and mentorship projects.

    Sonakshi Pandey did not always feel prepared for the role she is in today.

    She landed a job as a software engineer at Amazon straight out of her master's degree in computer science. For three years, she did what she loved: writing code.

    "I was very shy, very introverted," she told Business Insider. "I used to wear my headphones and code for eight hours straight."

    One day, she came across a YouTube video, where a tech expert was speaking about databases in depth. She admired how confident he sounded.

    "I want to exactly do what this guy is doing: I want to go on a stage and I want to talk confidently in front of a bunch of people," she said.

    It triggered her journey to change roles from software development to solution architecture at Amazon Web Services, a job that required more public speaking and client presentations.

    After five years at Amazon, Pandey wanted to try working at other FAANG companies and applied to Microsoft and Google in 2021.

    She shared the résumé that helped her land an offer at Microsoft as well as the one she accepted at Google, a customer engineering position.

    Sonakshi Pandey resume
    Pandey's 2021 résumé landed her roles at Google and Microsoft.

    Sonakshi Pandey

    Looking back on her 2021 résumé, Pandey said that there are two unique things about the document that worked in her favor.

    1. Writing for company blogs

    During her time at AWS, she wrote blogs for Amazon's cloud computing page.

    Blogs reflect thought leadership — so if you want to build a brand as an expert in any industry, she said having blog posts on a bigger medium like a company website helps underline your expertise.

    Pandey said she would not include some of her other public work, such as her career advice pages on Instagram and YouTube.

    "I don't want that to deflect attention from my product manager skills," she said.

    2. A section on volunteering — even though it makes her résumé 2 pages long

    Pandey's section on volunteering, which discusses her mentorship projects, make her résumé exceed the typically recommended one-page rule. But adding that section is a non-negotiable for Pandey, she said.

    For her, the section reflects an important part of her journey in tech — she dealt with imposter syndrome and hesitated with public speaking, and now she helps other women overcome the same issues. Pandey credits her transition to having a mentor at Amazon. "She recommended books to read, podcasts to listen to, and it eventually got me to killing it at my job."

    The projects she founded and led are her way of paying it forward.

    "I feel this is very important to have and is a piece of me that I want to share with everyone wherever I go," she said. "And that's why I was like: It doesn't matter if it's two pages, this needs to be here."

    She said it also helped her in interviews. Pandey talks about her mentorship experiences when hiring managers ask scenario-based questions and discusses her initiatives when the interviewers give her time to introduce herself.

    If she were to update the document today, she said she would only add her certifications and recent blogs at Google, and beef up her volunteering section with more recent diversity and mentorship projects.

    Pandey is currently a data and product manager at Google's Seattle office. BI has verified her employment history.

    Read the original article on Business Insider

  • One of Tim Cook’s top executives could be Apple CEO in a few years. Here are his most likely replacements, report says.

    A man in a blue suit and gray hair speaks in front of a red background.
    Here's who could become the next Apple CEO Tim Cook

    Bay Ismoyo/AFP via Getty Images

    • CEO Tim Cook will be staying at Apple for at least three more years, Bloomberg reported.
    • Cook previously said he hopes his successor will be an internal hire.
    • According to Bloomberg, execs Jeff Williams and John Ternus could be potential successors.

    Tim Cook won't be steering Apple's ship forever.

    Cook, who succeeded Apple founder Steve Jobs, helped Apple cross the $3 trillion market cap mark — and may push the company past $4 trillion by 2025.

    However, 63-year-old CEO is also thinking about who will come after him. In October, Cook told singer Dua Lipa on her podcast "At Your Service" that he hoped his successor would "come from within Apple."

    And according to "several people familiar with Apple's inner workings" who spoke to Bloomberg, that is a very likely scenario.

    According to the Bloomberg report, Cook will not leave for at least three years, but company insiders are considering several potential CEOs.

    Apple did not immediately respond to a request for comment from Business Insider.

    Jeff Williams, Chief Operating Officer
    Jeff Williams with gray hair in a blue flannel button-up stands in front of a digital watch
    Jeff Williams has a similar leadership style to Tim Cook.

    Carlos Avila Gonzalez/The San Francisco Chronicle via Getty Images

    Per Bloomberg, Williams has been widely seen as Cook's logical successor since 2019, when he took over Apple's design studio following the departure of Chief Design Officer Jony Ive in 2019.

    Williams was once called "Tim Cook's Tim Cook. Both men have been described as having similar leadership styles.

    Williams oversaw the development of the Apple Watch and now manages Apple's worldwide operations. The executive recently announced the company was abandoning a decadelong effort to manufacture an Apple electric car.

    However, company insiders told Bloomberg that because Williams is 61, he may not be a long-term leader.

    John Ternus, Senior Vice President of Hardware Engineering
    A man with a black shirt being projected on a large outdoor stage
    John Ternus is the younger, more likely candidate.

    Christoph Dernbach/picture alliance via Getty Images

    Company insiders told Bloomberg that because of Williams' age, John Ternus will most likely replace Cook once he leaves the company.

    At Apple, Ternus leads the hardware engineering of iPhones, iPads, Macs, and AirPods and has been at the company for over two decades.

    "Tim likes him a lot, because he can give a good presentation, he's very mild-mannered, never puts anything into an email that is controversial and is a very reticent decision-maker," one person close to Apple's executive team told Bloomberg. "He has a lot of managerial characteristics like Tim."

    One person who spoke to Bloomberg, however, described the 49-year-old exec as "too junior."

    Others told Bloomberg that he was not an "innovator" and pointed out that Ternus was behind the controversial introduction of the Touch Bar for MacBook keyboards, which was axed last year.

    The less likely candidates
    A man in a blue shirt and a woman in a black suit
    Craig Federighi and Deirdre O'Brien will probably not be Cook's successors.

    Justin Sullivan/Getty Images // Angela Weiss/AFP via Getty Images

    Bloomberg cited two other executives who could succeed Cook but are less likely to do so, according to one company insider who spoke to the publication.

    Craig Federighi, Apple's senior vice president of software engineering, is responsible for developing iOS and macOS.

    Federighi is more publicly known than some of his other colleagues: The exec, in a leather jacket, shredded on a triple-necked guitar in a clip shown at Apple's Worldwide Developers Conference in June 2023.

    Deirdre O'Brien, senior vice president of retail — who Bloomberg described as a Cook confidant — is also in the running. The exec, who helped launch Apple's first retail stores in 2001, took on her current post in 2019.

    If O'Brien were to take over as leader, she would be the first female CEO of Apple, which was founded in 1976.

    Read the original article on Business Insider

  • South Dakota Gov. Kristi Noem is now barred from entering nearly 20% of her state, report says

    Governor of South Dakota, Kristi Noem visits FOX Business Network's "Varney & Co" at Fox Business Network Studios on May 07, 2024 in New York City.
    Kristi Noem.

    John Lamparski | Getty Images

    • South Dakota Gov. Kristi Noem is barred from nearly 20% of her state, The Associated Press reported.
    • It comes after her controversial remarks linking tribal leaders and drug cartels.
    • The bans build on preexisting tensions stemming from Noem's anti-protest stance and COVID-19 clashes.

    South Dakota Gov. Kristi Noem is now barred from entering nearly 20% of her state, The Associated Press reported.

    The governor has now been barred from land belonging to the Yankton Sioux Tribe and the Sisseton-Wahpeton Oyate tribe, adding to her previous bans from the reservations of the Oglala, Rosebud, Cheyenne River, and Standing Rock Sioux tribes, per the report.

    The moves mean Noem will be refused entry to the reservations of six out of the state's nine Native American tribes.

    It follows her controversial remarks linking drug cartels and tribal leaders.

    "We've got some tribal leaders that I believe are personally benefiting from the cartels being there, and that's why they attack me every day," Noem said at a forum, per The AP.

    "But I'm going to fight for the people who actually live in those situations, who call me and text me every day and say, 'Please, dear governor, please come help us in Pine Ridge. We are scared,'" she added.

    Tribes have slammed Noem's comments, with Oglala Sioux Tribe President Frank Star Comes Out, saying: "How dare the Governor allege that Sioux Tribal Councils do not care about their communities or their children, and, worse, that they are involved in nefarious activities?" The AP previously reported.

    Standing Rock Sioux Tribe chairwoman Janet Alkire added: "Governor Kristi Noem's wild and irresponsible attempt to connect tribal leaders and parents with Mexican drug cartels is a sad reflection of her fear-based politics that do nothing to bring people together to solve problems."

    Noem's strained relationship with the tribes predates her governorship, beginning with her support for antiprotest legislation following the Dakota Access Pipeline protests at Standing Rock in 2016.

    Subsequent clashes over COVID-19 checkpoints exacerbated tensions between the governor and local tribes.

    Native Americans march to a sacred burial ground that was disturbed by bulldozers building the Dakota Access Pipeline (DAPL), near the encampment where hundreds of people have gathered to join the Standing Rock Sioux Tribe's protest of the oil pipeline slated to cross the nearby Missouri River, September 4, 2016 near Cannon Ball, North Dakota.
    Native Americans marched to a sacred burial ground that was disturbed by bulldozers building the Dakota Access Pipeline (DAPL) on September 4, 2016, near Cannon Ball, North Dakota.

    ROBYN BECK | Getty Images

    Noem recently came under fire for admitting that, a few decades ago, she killed her dog because it was untrainable and overly aggressive, in what many saw as a major publicity blow amid her campaign to be Donald Trump's running mate.

    But six people close to the former president told Politico that Noem had been out of the running even before the revelation — although they did not rule her bid out entirely.

    Trump seemingly stood by the governor amid the backlash, saying of Noem: "Somebody that I love. She's been with me, a supporter of mine and I've been a supporter of hers for a long time."

    Read the original article on Business Insider

  • A millennial couple invested in a $143,000 vacation home in Bali. It’s become the crux of their early retirement strategy.

    A drone shot of the two-story villa.
    The two-story villa in Bali comes with a pool.

    Rory Jones

    • Rory and Casey Jones built a villa in Bali for 2.287 billion Indonesian rupiah, or about $143,000.
    • They wanted to invest in a tangible asset that would earn income and double as a retirement home.
    • Prior to this, they had never traveled to Indonesia before.

    For Rory Jones and his wife Casey, building a house in Bali seemed like a good idea — even though they had never been to Indonesia.

    The couple, from Tasmania, Australia, dreamed of retiring early, so they spent a lot of time investing in the stock market.

    "We got a little bit, I guess, down on the fact that we were putting this money away, but we had nothing to show for it apart from numbers on a bit of paper," Jones, 37, told Business Insider.

    Rory and Casey Jones
    Rory and Casey Jones built a villa in Bali.

    Rory Jones

    They wanted a tangible asset, and after some research, they settled on the idea of building investment property overseas.

    "We decided it gave us the ability to earn a good income, but also, a place that we could potentially retire to, in a country that was less expensive than Australia," Jones, a photographer and videographer, said.

    The couple had considered Thailand, the Philippines, and even Portugal, but ultimately chose Bali because their research showed that it had the highest return on investment. Moreover, it was also relatively easy for foreigners to build a home there.

    According to ILA Global Consulting, it is possible for short-term rentals in Bali to yield a 15% annual return on investment, while other markets offer 5% to 10%.

    The front of the villa.
    The front of the villa.

    Rory Jones

    Although the couple had never been to the island before, they had spent a lot of time in Southeast Asia.

    "So we knew that we liked the climate. We knew that we would probably like the culture and the food too," Jones said.

    First time in Bali

    In 2022, the couple hopped on a plane to Bali for the first time.

    The primary living space.
    The primary living space.

    Rory Jones

    They were there for about three weeks, exploring the island and speaking to different legal professionals and builders for more insights on how they could get started with their project.

    "We spent a good chunk of time in different areas to make sure that we liked the area and that we had a good understanding of what that area gave to the tourists," Jones said.

    The dining area.
    The dining area.

    Rory Jones

    Since traffic in Bali can be difficult to navigate, it was important that the area they chose had good infrastructure and was easy to get to, he said.

    "Other than that, we were looking for a place that we could see ourselves retiring to as well," Jones said.

    While looking for a peaceful but up-and-coming neighborhood that travelers would be drawn to, they eventually found a piece of land in the Bingin area near Uluwatu, a region in the southwestern tip of Bali.

    The kitchen.
    The kitchen.

    Rory Jones

    "The best success that we had was actually just posting in the local Facebook groups to say that we were looking for land, and then people would reach out to us and let us know what they had available," Jones said. "With the land that we ended up getting, it was a local guy that showed us the land. He didn't own the land, but he knew the owners."

    The bar area.
    The bar area.

    Rory Jones

    Since foreigners aren't allowed to own land in Bali, the piece of land they have is on a 30-year lease, with the option to renew for another 30 years. They paid 720 million Indonesian rupiah, or about $44,700, for it.

    A modern tropical villa

    The two-story villa, which sits on a 3,300-square-foot plot, has two bedrooms and two bathrooms. The entire build, including furniture and permits, cost 2.287 billion Indonesian rupiah, or about $143,000.

    Jones says he chose to build a house from scratch because it was cheaper than buying one.

    According to the property website Propertia Bali, a new two-bedroom villa near Bingin can cost between 3.525 to 5.575 billion Indonesian rupiah, depending on the size, the complexity of the build, and the lease left on the land.

    One of the bedrooms in the house.
    One of the bedrooms in the house.

    Rory Jones

    "If there was anything wrong with the building that was already existing, we wouldn't be able to tell," he added. "But by building ourselves, we could dictate the standards that went into that building."

    Safety standards aside, it also meant that they could design the building the way they wanted it. Jones describes it as a mix between modern industrial and boho, with a touch of Balinese influence.

    A cozy corner of the villa.
    A cozy corner of the villa.

    Rory Jones

    The building looks modern on the outside, thanks to the black steel window frames, a mezzanine-style design, and vaulted ceilings. In contrast, the interiors are cozy with lots of wood accents and furniture.

    "We knew that the building itself was quite modern, so we wanted to bring a lot of the tropics and a lot of Bali into it with the interior design," Jones said.

    A close-up of the decor in the villa.
    A close-up of the decor in the villa.

    Rory Jones

    Everything in the villa was crafted locally, he added.

    The only major issue the couple encountered during the build was a particularly bad rainy season that delayed their project by a few weeks.

    "Towards the end of the build, they were running quite late with everything, and it's fine that they were running late, but they didn't tell us that they were running late," Jones said. "There were some communication issues rather than issues with construction, which caused a bit of friction toward the end."

    An outdoor dining area
    An outdoor dining area.

    Rory Jones

    Retiring in Bali

    The villa can be rented on Airbnb for a minimum of two nights. At press time, it has a 4.58-star rating based on 26 reviews.

    "Initially we planned to spend a couple of months a year in Bali, but with the way that things have gone, with how popular it is, I think it would make more financial sense to leave it rented out on Airbnb all the time," Jones said.

    That said, Jones hopes to be able to retire in that villa in Bali in the next five to six years.

    An outdoor seating area.
    An outdoor seating area.

    Rory Jones

    "We're working hard at saving and investing as much money as we can to hopefully get to a point where we can retire in my early forties," he said. "But plans can also change, so it would be great to retire to Bali, but I mean, maybe we'll stay in Australia. Who knows? It's still a long way away."

    That said, the couple has plans to build more investment properties in Bali in the future.

    Jones has a piece of advice for those who are thinking of building a house in Bali: Manage expectations.

    The pool.
    The pool.

    Rory Jones

    "Go into it knowing that the standards you may expect from your home country might not be the same in Bali. Expect things to run behind time and expect things to be done in a different way than what you might be used to," he said.

    That way, things will be less stressful, he added.

    Have you recently built or renovated your dream home in Asia? If you've got a story to share, get in touch with me at agoh@businessinsider.com.

    Read the original article on Business Insider

  • Buy these ASX stocks for 4% and 8% dividend yields

    Man holding out Australian dollar notes, symbolising dividends.

    Luckily for income investors, there are plenty of ASX income stocks to choose from on the Australian share market.

    However, with so many to choose from, it can be hard to decide which ones to buy above others.

    But don’t worry, that’s because analysts have been doing the hard work for you and have picked out two stocks that they rate as buys for income investors.

    Here’s what you need to know about them:

    Coles Group Ltd (ASX: COL)

    Analysts at Morgans think that this supermarket giant would be a great option for income investors.

    In fact, the broker is so bullish it added the company’s shares to its best ideas list this month. The broker said:

    In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL. While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

    Morgans has an add rating and $18.95 price target on its shares.

    In respect to income, the broker is expecting fully franked dividends per share of 66 cents in FY 2024 and 69 cents in FY 2025. Based on the latest Coles share price of $16.24, this equates to dividend yields of 4.1% and 4.25%, respectively.

    Dexus Convenience Retail REIT (ASX: DXC)

    The Dexus Convenience Retail REIT could be an ASX income stock to buy now. That’s the view of analysts at Bell Potter, which are very positive on the service stations and convenience retail focused real estate investment trust.

    Bell Potter highlights that the company could offer investors compelling returns. This includes a very big dividend yield. It said:

    Sub-sector with a high level of ownership from privates and HNW’s means petrol stations are typically more liquid that any commercial real estate that carries larger cheque sizes. Management has actively recycled capital leading to a balance sheet with low headroom & ICR risk. Compelling risk-adjusted returns: DXC offers a yield c.8% based on mid-point of FY24 DPS guidance. While we do see asset values declining (BPe 30bp cap rate expansion), trading at a 27% discount to NTA and 10% discount to BPe NAV looks too punitive to us for a defensive sub-sector.

    The broker has a buy rating and $3.00 price target on its shares.

    As for dividends, Bell Potter is forecasting dividends per share of 20.9 cents in FY 2024 and 20.7 cents in FY 2025. Based on its current share price of $2.61 this equates to yields of 8% and 7.9%, respectively.

    The post Buy these ASX stocks for 4% and 8% dividend yields appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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.

  • One ASX lithium stock to buy and one to sell

    a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.

    The lithium industry has been under significant pressure over the past 12 months due to a collapse in battery material prices.

    While this has dragged most ASX lithium stocks significantly lower, that doesn’t necessarily mean that they are all buys.

    Let’s now take a look at two popular options and see what analysts are saying about them at current levels. They are as follows:

    Core Lithium Ltd (ASX: CXO)

    This lithium miner’s shares are down almost 90% over the last 12 months. Investors have been hitting the sell button after weak lithium prices weighed heavily on its operations.

    In fact, things have got so bad that the lithium miner is actually more of a processor than anything now. That’s because it has suspended mining operations indefinitely and is just processing ore stockpiles until they run out in the middle of the year.

    Goldman Sachs thinks investors should stay well clear of the company. That’s because it still believes the ASX lithium stock is overvalued despite its significant decline. It said:

    We rate CXO a Sell on: (1) Valuation, trading at a premium on ~1.1x NAV and an implied LT spodumene price of ~US$1,200/t (peer average ~1.05x & ~US$1,250/t (lithium pure-plays ~US$1,140/t)), with the lowest average operating FCF/t LCE on a more moderated/deferred production restart/ramp up, (2) Ongoing risk to restart timing in the current pricing environment, with a mine restart highly unlikely ahead of the next wet season and, given the Grants open pit has ~12 months of life, likely tied to a development decision on BP33 (with its own funding risks) to support a new processing contract, increasing the risk of a longer gap in production; (3) Potential resource growth/ development now likely longer dated.

    Goldman has a sell rating and 11 cents price target on Core Lithium’s shares.

    Arcadium Lithium (ASX: LTM)

    With its shares down by a third since the start of the year, Bell Potter thinks that Arcadium Lithium is an ASX lithium stock to buy now.

    Particularly given its very positive production growth outlook and its diverse operations. The broker explains:

    LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. In supportive markets, LTM’s growth pipeline could see the company more than double production over the next three years.

    Bell Potter has a buy rating and $9.50 price target on its shares.

    The post One ASX lithium stock to buy and one to sell appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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.

  • These are the 10 most shorted ASX shares

    A business woman looks unhappy while she flies a red flag at her laptop.

    At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with short interest of 21.5%. This is down slightly week on week again. Short sellers appear to believe that lithium prices will be staying lower for longer.
    • IDP Education Ltd (ASX: IEL) has 16.3% of its shares held short, which is up week on week again. This may be due to the language testing and student placement company battling tough trading conditions caused by student visa changes.
    • Syrah Resources Ltd (ASX: SYR) has short interest of 13.1%, which is down week on week. This graphite miner continues to burn through cash due to weak battery materials prices.
    • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase week on week again to 11.9%. Last week, the travel agent revealed that it expects record sales in FY 2024. Short sellers didn’t appear fazed by this.
    • Liontown Resources Ltd (ASX: LTR) has 10.9% of its share held short, which is up week on week. This lithium developer is making good progress with the Kathleen Valley Lithium Project. Despite this, short sellers continue to target the company.
    • Core Lithium Ltd (ASX: CXO) has short interest of 8.2%, which is flat week on week. This lithium miner has suspended mining operations due to weak lithium prices.
    • Sayona Mining Ltd (ASX: SYA) has short interest of 8.1%, which is also flat week on week. This lithium miner hasn’t suspended its operations despite selling its lithium for $500 less per tonne than it costs to produce.
    • Westgold Resources Ltd (ASX: WGX) has short interest of 8.1%, which is up strongly since last week. Short sellers seem to be unsure about the gold miner’s plan to merge with Canada-based Karoa Resources.
    • Chalice Mining Ltd (ASX: CHN) has entered the top ten with short interest of 7.7%. This mineral exploration company’s shares have lost 81% of their value over the last 12 months. It seems that short sellers don’t believe the declines are over.
    • Strike Energy Ltd (ASX: STX) has returned to the top ten with short interest of 7.55%. This gas company’s shares have been hammered this year due to disappointment over drilling at the SE-3 well.

    The post These are the 10 most shorted ASX shares 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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Morgans names the best small cap ASX shares to buy in May

    a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.

    If you have a higher-than-average tolerance for risk, then you might want to consider adding some small caps to your investment portfolio.

    But which small cap ASX shares should you buy?

    Listed below are three that Morgans has on its best ideas list. Here’s why it is bullish on them:

    AVITA Medical Inc (ASX: AVH)

    This regenerative medicine company’s shares could be seriously undervalued according to Morgans. Particularly given the recent expansion of the ASX small cap share’s RECELL technology into new and lucrative indications. The broker commented:

    AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% and importantly has guided to achieving profitability by 3QCY25. At the same time, the company is seeking approval by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians.

    Morgans has an add rating and lofty price target of $6.40.

    Camplify Holdings Ltd (ASX: CHL)

    This peer-to-peer RV rental operator could be a small cap ASX share to buy according to Morgans.

    It likes the company due to its market leadership position in a significant global market. The broker said:

    We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

    Morgans has an add rating and $2.85 price target on its shares.

    Superloop Ltd (ASX: SLC)

    Another small cap ASX share to consider buying is Superloop. It is a growing telco with over 400,000 customers.

    The broker is a big fan of Superloop and has named it as its top telco pick. This is thanks to its strong balance sheet and earnings and free cash flow growth. It explains:

    SLC is our key telco pick. It’s the fastest growing, has a solid balance sheet (virtually no debt), and the highest Free Cash Flow yield in our coverage. The share price has lifted following a substantial upgrade to earnings expectations and a takeover offer from ABB (which the SLC Board declined). Even though the share price is up ~100% over the past 6 months, earnings have more than exceeded this. EPSA and FCF have lifted ~150% over the same period so we still see good fundamental value in SLC.

    Morgans has an add rating and $1.50 price target on its shares.

    The post Morgans names the best small cap ASX shares to buy in May 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 Aussie Broadband and Avita Medical. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Aussie Broadband, Avita Medical, and Camplify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.