St Barbara Ltd (ASX: SBM) shares are rising strongly again on Wednesday.

In morning trade, the ASX gold mining stock is up 15% to 26.5 cents.

This means that its shares are now up approximately 40% since this time last week.

Why is this ASX mining stock jumping again?

Hot on the heels of a solid production update at the end of last week, St Barbara has given its shareholders another reason to smile today with the release of a promising drilling update.

According to the release, all assay results have now been returned for the resource definition drilling of the Sorowar – Pigiput Trend portion of the 24 hole, 4,700 metre diamond drill program at the Simberi Operations in Papua New Guinea (PNG).

This means that assays results have now been received for all 15 of the resource definition diamond drill holes that will be incorporated in the upcoming mineral resource and ore reserve update in the fourth quarter.

Promisingly, the company highlights that exploration hole SDH542 intersected mineralisation between 80m and 165m similar to that observed in holes SDH525, 533 and 534, that all returned significant intercepts.

The ASX mining stock’s managing director and CEO, Andrew Strelein, also highlights encouraging results from hole SDH531. He said:

Hole SDH531 included 56 metres at 2.9 g/t Au from just 103 metres including 28 metres at 4.7 g/t Au. It is another broad intercept in the new mineralisation zone between Sorowar and Pigiput pits, but outside any current Mineral Resource. Hole SDH533, located in the valley and the southeasternmost of the holes drilled so far, has only recently been accessible for drilling after oxide mining progress in Sorowar pit and included 45 metres at 2.2 g/t Au from surface.

‘Very encouraged’

Strelein also notes that with the gold price at record levels, new areas of the operation are now looking like attractive targets. He said:

This is the first sulphide focused diamond drilling program at Simberi since 2011, apart from an RC drill program conducted at Sorowar only in 2019. We are very encouraged by the results so far. The gold price for Ore Reserve definition back in 2012 was just A$1,250 per ounce and many areas were unable to be drilled at that time because of difficult topography. We are getting positive results by applying more than 10 years of improvement in geological knowledge and targeting insufficiently drilled areas from drill pad locations now available because of more than 10 years of oxide mining.

Overall, recent developments appear to indicate that things are looking up for this ASX mining stock.

The post Guess which ASX mining stock is rocketing 15% on a new gold discovery appeared first on The Motley Fool Australia.

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More reading

• Why is this tiny ASX gold share soaring 10% on Friday?

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.

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National Australia Bank Ltd (ASX: NAB) shares are pushing higher on Wednesday.

In morning trade, the banking giant’s shares are up 0.35% to $34.75.

Why are NAB shares rising?

This morning, NAB’s Chief Executive Officer Andrew Irvine announced a number of changes to its executive leadership team.

According to the release, effective Monday 29 April, Rachel Slade will be appointed group executive of business and private banking. Ms Slade is currently group executive personal banking.

On the same day, Ana Marinkovic will be appointed as Slade’s replacement as group executive personal banking. Ms Marinkovic is currently the executive of business direct and small business in the business and private banking team.

Furthermore, effective on 1 July, Cathryn Carver will be appointed group executive of corporate and institutional banking.

Ms Carver will be replacing David Gall, who has decided to leave NAB on 1 October after 16 years with the bank. This includes 10 years as an executive leadership team member. Ms Carver is currently the executive of client coverage in corporate and institutional banking.

‘Delighted’ with appointments

Irvine revealed that he is “delighted” that all the appointments were from within NAB’s senior leadership team. He believes this helps ensure alignment in delivering for the bank’s customers and colleagues. He also highlights that all three executives had a track record of helping customers succeed while getting the basics of banking right.

NAB’s CEO commented:

These appointments demonstrate our ability to identify and develop talent within the business while broadening diversity and experience. Rachel, Ana and Cath, who will lead NAB’s customer-facing businesses in Australia, are great relationship bankers who inspire their teams to deliver results for customers. They understand the importance of using technology and data to make NAB easier and simpler to bank with.

This completes the Executive Leadership Team that will take NAB forward and maintain the momentum we have across the business by executing with discipline and focus. We see plenty of opportunities to build on NAB’s leadership in areas such as business lending, particularly to small and medium businesses, while continuing to deliver better outcomes for customers and colleagues.

Commenting on the exit of David Gall from the key corporate and institutional banking business, Irvine adds:

I would particularly like to thank David Gall for having been a tremendous peer and leader for C&IB while I have been at NAB, and for his previous roles across various functions. David embodies what it means to be a NAB leader and we are grateful for his contribution to the business.

NAB shares are outperforming the market on a 12-month basis and are up 23% since this time last year.

The post NAB shares push higher on leadership changes appeared first on The Motley Fool Australia.

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More reading

• 3 ‘forever’ ASX dividend shares to build your wealth
• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• With a 7% dividend yield, are NAB shares a buy?
• 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income
• NAB boss issues dire prediction for Aussie economy

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.

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With a wide range of Vanguard exchange-traded funds (ETFs) to choose from, there’s one fund I’m attracted to the most.

It’s good to aim for diversification in our investments because it spreads the risk across more businesses and industries. Owning assets other than ASX shares, such as bonds, can also nicely diversify your portfolio.

However, it is possible to invest in too many different things, leading to what some people call ‘di-worsification’ when too much diversification reduces returns.

And ideally, we’d like to buy a variety of investments that don’t reduce returns.

My top Vanguard ETF pick is the Vanguard MSCI Index International Shares ETF (ASX: VGS), and I’ll explain below how I came to that choice.

Bonds don’t appeal

In my mind, the share market is the leading place to invest for returns. We can find good companies that have proven their ability to develop appealing products and services, re-invest profits over time, and positively compound their results.

Let’s look at the various Vanguard ETFs for ideas.

I like Vanguard Diversified High Growth Index ETF (ASX: VDHG) and its siblings as a ‘one size fits all’ idea, but they all have an allocation to bonds, which may reduce long-term returns. Bonds can’t grow the underlying profit and increase their value in the way that businesses can.

Bonds may reduce short-term volatility – and some people may like that – but I want an ETF comprising 100% shares.

US tech giants are excellent businesses

The ASX share market and the non-US global share market are both solid options. Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard All-World ex-US Shares Index ETF (ASX: VEU) have their positives.

In trying to narrow the choices down to my favourite Vanguard ETF, I think it’s important to get exposure to many of the world’s strongest businesses in a single investment, such as Microsoft, Apple, Amazon, Nvidia, Berkshire Hathaway and so on.

Neither the VAS ETF nor VEU ETF have exposure to those leading US giants, so I can’t call them my number one.

Geographic diversification can be useful

VGS ETF and the Vanguard US Total Market Shares Index ETF (ASX: VTS) are both excellent ideas, with many high-quality holdings.

Arguably, the VTS ETF has been a better investment up until now, and it comes with a lower management fee than the Vanguard MSCI Index International Shares ETF.

However, if I were to invest in only one Vanguard ETF, I’d prefer to own a fund that can give exposure to great businesses listed worldwide, not just from one country. The United states has been an incredibly strong economic force for decades, though that may not always be the case in the future.

The VGS ETF is invested in many compelling non-US businesses, including Novo Nordisk, ASML, Nestle, LVMH, Accenture, Linde, SAP, and Royal Bank of Canada.

So that’s my ultimate pick of the bunch. But with that, I’ll also add that I like to balance my ETF investing with buying individual ASX shares.

The post Why this is my top Vanguard ETF to buy for the long-term appeared first on The Motley Fool Australia.

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More reading

• 10 ASX ETFs with the lowest management fees and why it matters
• Forget gold! I’d buy these top ASX shares to beat inflation
• Is the Vanguard Australian Shares Index ETF (VAS) a good long-term investment?
• Is the Vanguard Australian Shares ETF (VAS) just a big ASX bet on banks and miners?
• 3 reasons the Vanguard US Total Market Shares Index ETF (VTS) is still a top buy

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Accenture Plc, Amazon, Apple, Berkshire Hathaway, Linde, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and Novo Nordisk and has recommended the following options: long January 2025 $290 calls on Accenture Plc, long January 2026 $395 calls on Microsoft, short January 2025 $310 calls on Accenture Plc, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Amazon, Apple, Berkshire Hathaway, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There’s something to be said for earning a fair wage from a fair day’s work, yet there’s nothing quite like sitting back and watching passive income come rolling in.

Of course, just like a fair day’s wages, no one is likely to hand you $3,000 in annual passive income out of the blue.

So, here’s how I’d go about earning that welcome extra cash boost today with limited savings.

The road to passive income with ASX dividend shares

The best income building method I know of is offered by investing in quality ASX dividend shares.

Generally, though not always, these will be S&P/ASX 200 Index (ASX: XJO) stocks.

I prefer to invest in the larger end of the market for passive income, as these companies tend to be less volatile than small-cap ASX shares, and I’m aiming for relatively smooth income returns. There’s also a fair bit more analyst coverage available on blue-chip stocks, making for easier research.

I also recommend preferencing ASX 200 companies that pay fully franked dividends. That should enable investors to hold onto more of their dividend payouts come tax time.

And I prefer stocks with long track records of making reliable dividend payouts. That doesn’t guarantee future payouts, but it helps.

When doing your research, keep in mind that the yields you see quoted are generally trailing yields. Future yields may be higher or lower, depending on a range of company-specific and macroeconomic factors.

Of course, we’re gunning for rising yields here!

$2,950 in savings? No problem!

Now, not many Aussies have enough ready cash to earn $3,000 a year in passive income from ASX stocks overnight.

We have to be realistic in that no company is paying out more than 100% of its profits in dividends.

So, let’s say you have $2,950 to invest in the stock market.

With brokerage fees in mind, you may wish to start with just five ASX dividend stocks. Ideally, these will operate in different sectors and locations to reduce the overall risk to your passive income portfolio.

ASX 200 coal share New Hope Corp Ltd (ASX: NHC), for example, trades on a fully franked trailing yield of 9.8%.

ASX 200  bank stock ANZ Group Holdings Ltd (ASX: ANZ) trades on a partly franked trailing yield of 6.0%.

And ASX 200 iron ore miner Fortescue Ltd (ASX: FMG) trades on a fully franked trailing yield of 8.2%.

You get the idea.

Taking these three ASX 200 dividend stocks as our baseline, if you invested equally across all three, you could earn a yield of 8.0%.

Investing $2,950 today would then offer $224 a year in passive income. Well short of our $3,000 annual goal.

This is where some patience comes into the picture.

Now, with share price gains in mind, I think that by reinvesting those dividends, we can achieve an accumulated annual return of 11%.

With the magic of time and compounding on our side, that will see our $2,950 investment in ASX 200 dividend shares today grow to a whopping $40,845 in 24 years.

At an 8.0% dividend yield, you could then take out a bit more than $3,267 a year in passive income without touching our accumulated capital.

As always, if you’re unsure which ASX shares may be best for you, just reach out for some expert advice.

The post How to earn $3,000 in passive income with less than $3,000 in savings appeared first on The Motley Fool Australia.

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• ‘Share price looks cheap’: Fortescue & 1 other beaten-up ASX 200 share to buy now
• In this bull market, where are the bargain buys to be found?
• Fortescue shares climb amid Australian first for clean energy
• Want an income boost? Buy ANZ Bank and these ASX dividend stocks
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Brokers don’t always agree when it comes to ASX 200 stock recommendations.

But one that a couple of leading brokers not only agree about, but also have on their best ideas lists right now is ResMed Inc (ASX: RMD).

It is a developer, manufacturer, and distributor of innovative medical devices and cloud-based software solutions that diagnose, treat, and manage sleep-disordered breathing, COPD, and other key chronic diseases.

Despite a recent rebound, the company’s shares remain down approximately 15% since this time last year. This has been driven by concerns over the emergence of weight loss wonder drugs, which threaten to reduce its addressable market.

However, given the sheer size of its addressable market globally, a number of analysts believe that the ASX 200 stock can still grow at a rapid rate alongside drugs like Ozempic.

Who is bullish on this ASX 200 stock?

Analysts at Bell Potter and Morgans have the company’s shares on their preferred and best ideas lists, respectively.

Bell Potter currently has a buy rating and $34.00 price target on them. This implies potential upside of 19% for investors. It said:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

Over at Morgans, its analysts have an add rating and $32.82 price target on the ASX 200 stock. This suggests upside of 15% for investors. They commented:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Overall, it seems that these brokers agree that investors should be snapping up this high-quality company while its shares are down in the dumps.

The post Why two brokers have named this ASX 200 stock as a best buy appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names more of the best ASX 200 shares to buy
• 5 ASX 200 shares for trying to build wealth after 50
• Got $5,000? 5 ASX shares to buy for lasting wealth
• Why Cettire, Harvey Norman, Orora, and ResMed shares are sinking today
• Here’s why I think the Resmed share price should be 18% higher

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.

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The S&P/ASX 200 Index (ASX: CKF) stock Collins Foods Ltd (ASX: CKF) is on my buy list this month. I love jumping on beaten-up opportunities and I think the KFC and Taco Bell operator looks like a bargain.

As we can see on the chart below, the Collins Foods share price has dropped around 18% since 9 January 2024.

There are three main reasons I’m thinking about jumping on this stock, when Motley Fool’s trading rules allow me to, following the publication of this article.

Cheaper valuation

The lower price we can pay for a good business, the better value we’re getting and the larger margin of safety it gives.

It’s still the same business, whether the share price is 20% higher or 20% lower. The ASX 200 stock is more than 20% cheaper than where it was in 2021, but its KFC (and Taco Bell) outlet footprint is larger now than a couple of years ago.

Its financials are showing much better performance compared to a year ago when inflation was causing major difficulties with costs and customer demand. In the FY24 first-half result, it grew continuing operations revenue by 14.3% and the underlying net profit after tax (NPAT) increased by 28.7% to $31.2 million. Double-digit profit growth for this sort of business is good, in my opinion.

The ASX 200 stock is projected to make earnings per share (EPS) of 51 cents in FY24, which would put it at 20x FY24’s estimated earnings.

Compelling growth prospects

I don’t know what will happen with inflation in the medium term, but the worst of the increases seems to be over. To me, this means the company’s cost outlook is improving.

In my mind, there will be two things that will help Collins Foods grow in the future.

First, it can keep growing the number of KFC outlets in Australia and Europe, as well as the number of Taco Bells in Australia. Thanks to economies of scale, growing its footprint can increase revenue and hopefully boost profit margins.

Collins Foods is expecting to open between nine to 12 new KFC restaurants in Australia in FY24, as well as another three in the Netherlands in the second half of FY24. It has reached 27 Taco Bells in Australia.

Secondly, I’m hoping the ASX 200 stock can grow its same-store sales – meaning its existing stores make more revenue than the prior year – which would also support profit growth. The growing population in Australia and Europe could help increase demand for each individual existing outlet.

The projection on Commsec suggests it could grow EPS by almost 50% between FY24 and FY26 to 76 cents. That would put the Collins share price at 13x FY26’s estimated earnings, which looks very cheap to me.

Solid dividend yield

I’m impressed by the company’s dividend growth track record, with annual increases every year since 2014.

The last two dividends amount to a grossed-up dividend yield of 3.85%. The profit growth to FY26 could spur big increases in the dividend. In FY26, the annual payout could be 40.5 cents per share, which would be a grossed-up dividend yield of 5.7%.

I think the dividend growth can provide a rewarding ‘real’ return on ownership of the business while waiting for the market to recognise the growth potential of this ASX 200 stock.

The post 1 ASX 200 stock that’s on my buy list this month appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares that look absurdly cheap to me

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

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If you’re not averse to investing in the mining sector and want big returns for your portfolio, then read on.

That’s because analysts at Bell Potter have just put buy ratings on two ASX 300 mining stocks and are tipping potential upside of 25% to 50% from them.

Here’s what the broker is saying about these mining shares:

Develop Global Ltd (ASX: DVP)

Bell Potter believes that this ASX 300 mining stock could deliver big returns for investors over the next 12 months.

This morning, the broker has retained its buy rating on the critical minerals developer’s shares with a reduced price target of $3.30. This implies potential upside of 51% for investors from current levels.

Bell Potter highlights that the company has released its Woodlawn Restart study. The study looked at the resumption of operations at the Woodlawn copper-zinc mine in New South Wales over a 10-year period. Pleasingly, it delivered a pre-tax net present value of $658 million.

The broker is feeling very positive about the restart and notes that it is just one of many projects in the works. Overall, it feels this sets up the company to generate strong medium to long term earnings and free cash flow. It concludes:

DVP is progressing multiple critical mineral projects simultaneously, with each development representing an opportunity to transform the company’s earnings and FCF generation profile. The most advanced of these projects, Woodlawn, is expected to recommence production in 1H CY25; FID and announcement of a financing package are important upcoming catalysts. The Sulphur Springs and Pioneer Dome developments represent medium to long-term opportunities to further grow earnings and FCF.

Regis Resources Ltd (ASX: RRL)

Another ASX 300 mining stock that could be great value according to Bell Potter is gold miner Regis Resources. This follows the release of a costs update from the 100%-owned McPhillamys Gold Project (MGP).

While its costs are forecast to be significantly higher than previous expectations, the higher gold price offsets this disappointment. It commented:

RRL’s update guides to material cost increases compared with our prior assumptions, which included pre-production CAPEX of A$550m and AISC of A$1,440/oz. […] All else being equal, these increases would have had a significant impact on project returns and valuation. However, in the context of the spot gold price (A$3,550/oz) and our latest long-term gold price forecast (~A$3,200/oz) the MGP remains an attractive project. In reflecting the longer-dated development timeline (we had been expecting FID around end FY24) and the higher quantum of funding, we increase our risk-adjustment discount for the MGP. The net result is that our valuation is effectively unchanged.

In light of this, the broker has reiterated its buy rating and $2.60 price target on the ASX 300 mining stock. This suggests potential upside of almost 25% for investors from current levels.

The post These ASX 300 mining stocks could rise 25% to 50% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• The best ASX shares to buy with $1,000 right now
• Here are the top 10 ASX 200 shares today
• Bell Potter names the best ASX 200 shares to buy in April
• Why Imugene, Liontown, Pointsbet, and Regis Resources shares are storming higher

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.

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Wesfarmers Ltd (ASX: WES) shares have been strong performers in 2024.

Since the start of the year, the conglomerate’s shares are up 18%.

This means that a $10,000 investment at the end of last year, would be worth almost $12,000 today.

But are the gains over? Let’s see what analysts at Goldman Sachs are saying about the Bunnings owner.

Are Wesfarmers shares a buy?

The team at Goldman Sachs thinks that there’s room for the company’s shares to keep rising a touch from here.

According to a note out of the investment bank this morning, its analysts have retained their buy rating and lifted their price target to $68.80 (from $66.00).

However, with this price target only marginally ahead of where Wesfarmers’ shares trade now, investors may be better off waiting for a pullback before jumping in.

What is the broker saying?

Goldman believes that the market underappreciates a number of opportunities that Wesfarmers has across its business. It commented:

Our upgrade thesis in Jan was centered around robust growth of the Australian DIY Home Improvement market and continued cost efficiencies driving strong Retail free cash flow for new platform investments. That said, we believe that several corporate wide opportunities remain under-appreciated by the market. These include Digital, Retail Media and the WES Health platform.

In respect to digital, the broker points out that Wesfarmers has a treasure trove of consumer data to leverage thanks to its loyalty programs. It said:

WES has the largest volume of consumer data assets including 63mn monthly retail (1H24) website visits and 14.2mn total loyalty members across Flybuys, Priceline and PowerPass.

Retail Media and Health growth

Goldman sees a lot of potential in the Wesfarmers Retail Media business. In fact, it believes it can become a meaningful earnings contributor by the end of the decade. It explains:

We estimate that Retail Media in Australia will reach ~A$2.7B in FY30e, or 17% of advertising revenue. Dominant scaled players in high frequency and specialty retail categories are most likely to benefit. As an adjacent opportunity to WES’s digital strategy, our blue-sky scenario suggests that Retail Media can add ~1% to WES’s FY30e Retail sales, and ~4% EBIT profit. We value the upside option at ~A$2.0/sh.

Finally, the Wesfarmers Health business is also underappreciated by the market according to Goldman. Particularly given its massive market opportunity. It said:

We continue to believe that the vertical TAM is A$97B with an attractive profit pool of ~A$9B. WES’s existing API assets will benefit from upgraded automated pharmaceutical wholesale DC. We remain confident that the Non-Invasive Aesthetics business could transform the API business towards higher growth and profitability and value WES Health at A$2.0/sh per share.

All in all, the long-term looks very positive for Wesfarmers and its shares.

The post Why Goldman Sachs rates Wesfarmers shares as a buy appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The best ASX buys I’d grab to beat the market without a tonne of risk
• 2 safe ASX dividend shares that have paid income for decades
• Are Wesfarmers shares an ASX bargain buy or overvalued right now?
• Why today is a good day to own Wesfarmers shares

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

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Fortunately for Aussie income investors, there are lots of ASX 200 dividend shares trading on the local share market. But which ones could be buys?

Three that have been given the thumbs up by analysts are listed below. Here’s what sort of dividend yields you can expect from them:

Deterra Royalties Ltd (ASX: DRR)

The first ASX 200 dividend share that analysts are positive on is Deterra Royalties.

It is focused on the management and growth of a portfolio of royalty assets across a range of commodities. Deterra’s existing portfolio includes royalties held over Mining Area C, its cornerstone asset, in the Pilbara region of Western Australia, as well as five smaller royalties including Yoongarillup/Yalyalup, Wonnerup, Eneabba, and St Ives.

The team at Morgan Stanley likes the company and has an overweight rating and $5.65 price target on its shares.

As for income, the broker is forecasting Deterra Royalties to pay fully franked dividends per share of 37 cents in FY 2024 and 34 cents in FY 2025. Based on the current Deterra Royalties share price of $4.76, this will mean yields of 7.8% and 7.1%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that could be a buy is Stockland.

Last month, the team at Morgan Stanley retained its buy rating and $5.10 price target on the shares of Australia’s largest community creator. The broker is feeling positive about the company’s proposed purchase of Lendlease’s communities business and believes it will be earnings accretive if it completes.

In the meantime, Morgan Stanley is expecting dividends per share of 25.7 cents in FY 2024 and 26.5 cents in FY 2025. Based on the current Stockland share price of $4.68, this will mean yields of 5.5% and 5.7% yields, respectively.

Suncorp Group Ltd (ASX: SUN)

Over at Goldman Sachs, its analysts think that the insurance giant could be an ASX 200 dividend share to buy right now.

The broker currently has a buy rating and $17.54 price target on the company’s shares.

It likes Suncorp due to “the tailwinds that exist in the general insurance market.” It highlights that this includes “very strong renewal premium rate increases and the benefit of higher investment yields.”

As for income, the broker is forecasting fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $16.42, this will mean yields of 4.75 and 5%, respectively.

The post 3 ASX 200 dividend shares to buy according to brokers appeared first on The Motley Fool Australia.

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WiseTech Global Ltd (ASX: WTC) shares closed higher on Tuesday, up 0.29% to $91.89 apiece.

ASX tech shares aren’t known for paying dividends because many of them are young growth companies.

This means they typically choose to reinvest all their free cash flow and/or profits into further growth.

But Wisetech is a 30-year old business and also the largest technology share on the ASX.

It began paying dividends back in 2017.

The logistics software provider has a remarkable history of raising its dividends.

Every interim and final dividend — bar the final dividend in the first year of COVID — has been higher than the previous payment.

The latest dividend announced by Wisetech was the interim payment for 1H FY24.

That was a fully-franked 7.7 cents per share dividend, up almost 17% on the 1H FY23 payment of 6.6 cents per share.

This came on the back of a 32% rise in revenue to $500 million and a 23% EBITDA lift to $230 million.

What will the Wisetech dividend be in 2024, 2025 and 2026?

The consensus analyst forecast published on CommSec is for Wisetech shares to pay dividends of 16.4 cents per share this year.

The analysts expect an increase to 22.2 cents in 2025 and 29.1 cents in 2026.

Let’s calculate the dividend yields using yesterday’s closing share price.

A $10,000 budget (minus a brokerage fee of $5) will buy you 108 Wisetech shares at that price.

Total spend = $9,924.12.

If we multiply 108 shares by 16.4 cents, we get a total annual dividend amount of $17.71. That’s a dividend yield of 0.18%.

Yep, tiny.

In 2025, the dividend payment is anticipated to be $23.98. That’s a dividend yield of 0.24%.

In 2026, the dividend payment is tipped to be $31.43. That’s a dividend yield of 0.32%.

Yep, still tiny.

But here’s why you probably don’t care.

Wisetech share price up 297% in 5 years

Here’s a chart showing how the Wisetech share price has grown over the past five years.

As you can see, the tech stock is up a whopping 297%.

Over the past 12 months, Wisetech stock has risen 39%.

Wisetech is predominantly an ASX growth stock. This is why investors buy it. They’re after the potential capital gains.

That’s not to say that Wisetech won’t become a better dividend payer in the future. This will depend on the company’s growth and how its strategy may change over time.

What’s next for Wisetech shares?

E&P Financial Group analysts say Wisetech is one of four ASX shares likely to benefit from the artificial intelligence (AI) boom.

The analysts say Wisetech is likely to benefit from the software side of the AI explosion.

E&P said:

[Wisetech is] extremely well positioned for this trend, with a decent swath of AI capabilities already, and a completely unique data capability to build from.

Fund manager Wilson Asset Management says Wisetech is demonstrating “its ability to integrate its recently-acquired businesses called Blume and Envase, without losing the organic growth momentum.”

The post If I invest $10,000 in Wisetech shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 tech shares to buy now with less than $2,000
• Why are ASX tech shares rebounding strongly on Thursday?
• 3 ASX shares boasting better revenue growth than Tesla
• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Experts name 4 top ASX artificial intelligence 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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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