If you are on the lookout for big returns to supercharge your investment portfolio, then you may want to take a look at the ASX 200 shares listed below.

They have all recently been named as buys by brokers and tipped to rise between 20% and 50% from current levels. Here’s what you need to know about them:

Orora Ltd (ASX: ORA)

This packaging company’s shares were sold off last week following the release of a disappointing market update. While analysts at Goldman Sachs were equally disappointed with the update, they believe it is worth sticking with Orora and see huge value in its shares at current levels.

Goldman Sachs currently has a buy rating and $3.00 price target on the ASX 200 share. This implies potential upside of 36% for investors over the next 12 months.

And with the broker also expecting 5%+ dividend yields through to at least FY 2026, the total 12-month potential return stretches beyond 40%.

Qantas Airways Limited (ASX: QAN)

This airline operator’s shares have lost almost 20% of their value over the last 12 months. This is despite the Flying Kangaroo delivering huge profits in FY 2023 and so far in FY 2024.

While this is disappointing for shareholders, a number of analysts think it is a compelling buying opportunity for the rest of us.

For example, the team at Morgan Stanley currently has an overweight rating and lofty $8.00 price target on the ASX 200 share. If this recommendation proves accurate, it will mean a return of almost 50% for investors between now and this time next year.

Another positive to consider is that a few brokers believe that Qantas could resume its dividend payments in the near future. Macquarie, which has an outperform rating and $6.00 price target, has pencilled in a 34 cents per share dividend in FY 2025. This represents a very generous 6.25% dividend yield at current prices.

Telstra Group Ltd (ASX: TLS)

You don’t generally think of this telco giant as being an ASX 200 share that can generate market-beating returns. But a number of analysts think its shares are seriously undervalued at current levels.

One of those is Morgan Stanley. In response to its half year results in February, the broker put an overweight rating and $4.75 price target on its shares. This suggests potential upside of 24% for investors before dividends and almost 29% including them.

The post These ASX 200 shares could rise 20% to 50% appeared first on The Motley Fool Australia.

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More reading

• Own Telstra shares? Here’s why the ASX 200 telco just backed this AI startup
• 3 lower-risk, high-yield ASX dividend shares to consider buying now
• What’s happened to ASX travel shares since COVID ended?
• Top brokers name 3 ASX shares to buy today
• 2 ASX shares I’d buy to quickly add diversification

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 and Telstra Group. The Motley Fool Australia has recommended Orora. 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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Here’s a question for you: If money doesn’t bring happiness, what does?

A snapshot of the latest World Happiness Report may provide some clues.

For the seventh year running, Finland topped the list as the world’s happiest country, with fellow Nordic nations Denmark, Sweden, and Iceland all landing within the top five spots.

Australia snagged the tenth possie, easily beating the Brits (who placed 20th) and the Americans (who only managed a miserable 23rd on the list), based on overall merriness metrics.

According to a University of Helsinki academic and happiness researcher, two key factors helping to produce all those grinning Finns are a close connection to nature and a healthy work-life balance. Other contributors include a strong sense of trust, freedom, and society.

Interestingly, the report also revealed that older Aussies reported feeling much happier than those under the age of 30.

So, what does all this have to do with investing?

Well… these findings suggest that perhaps the path to happiness could hinge on money after all! That is, not money itself — but having the financial freedom to work less and spend more time doing the things that bring us joy.

And, for many Australians, a regular passive income stream from ASX dividend shares helps make this freedom a reality far sooner.

Happily, our Foolish writers have plenty of ideas on which ASX dividend shares they reckon will lead to investor smiles — and extra income — over the long term.

Here are their ASX dividend stock picks for April:

5 best ASX dividend shares for April 2024 (smallest to largest)

• Smartgroup Corporation Ltd (ASX: SIQ), $1.28 billion
• Brickworks Limited (ASX: BKW) $4.23 billion
• Metcash Ltd (ASX: MTS), $4.25 billion
• Yancoal Australia Ltd (ASX: YAL), $6.93 billion
• Rio Tinto Ltd (ASX: RIO), $44.75 billion

(Market capitalisations as of market close 5 April 2024).

Why our Foolish writers love these ASX passive income stocks

Smartgroup Corporation Ltd

What it does: Smartgroup provides a complete range of administrative and workforce optimisation services to Australian government and non-government customers. The company’s three key product lines are salary packages, novated leases, and fleet-managed vehicles.

By Mitchell Lawler: Salary packaging and other employee administrative services play an important role in many businesses. However, the time and expertise involved means they are often tasks better suited to being outsourced to providers such as Smartgroup. 

More recently, the government’s electric vehicle fringe benefits tax (FBT) exemption has spurred an increased interest in novated leasing of EVs, as the benefits under a salary packaging arrangement are included in this exemption. 

Smartgroup’s customer growth suggests its service offering resonates with customers. The company is also operating on a highly profitable net income margin (NIM) of 24.6%. That allows Smartgroup to pay a generous dividend yield of 4.9% when including the last special dividend payment. 

Motley Fool contributor Mitchell Lawler owns shares of Smartgroup Corporation Ltd.

Brickworks Limited

What it does: Brickworks is Australia’s largest brickmaker and also owns other building product brands, including Bristle Roofing and Austral Masonry. The company has a large investment stake in Washington H Soul Pattinson & Company Limited (ASX: SOL) and a significant property portfolio.

By Tristan Harrison: Brickworks shares have recently seen a pullback, which makes me think right now is an appealing time to look at the business.

In a recent announcement regarding the departure of its managing director, Brickworks revealed its asset base was $6 billion as at 31 March 2024. The current Brickworks market cap of around $4.23 billion is, therefore, sitting at a discount of more than 25% to this, which makes the stock look like a bargain to me.

While Brickworks is a quality building products manufacturer, it’s the Soul Patts shares and property assets that appeal to me the most.

In addition, Brickworks owns a 50% stake in an industrial property trust which is constructing very large warehouses on surplus, wholly-owned land that the company no longer needs, creating ongoing rental income from tenants like Amazon.  

Brickworks hasn’t cut its annual dividend since 1976 and has a current grossed-up dividend yield of 3.2%.

Motley Fool contributor Tristan Harrison owns shares of Brickworks Limited and Washington H Soul Pattinson & Company Limited.

Metcash Ltd

What it does: Metcash is the company behind several grocery and hardware chains, including IGA, Mitre 10, and Home. It has been on the ASX for decades and has paid hefty dividends along the way.

By Sebastian Bowen: Metcash might be a great option to consider if you’re searching for a source of substantial but reliable dividend income this April. Metcash’s exposure to both the hardware and grocery sectors gives this company a stable and diversified earnings base, which is great news for dividend investors. 

This company may not be growing at a fast clip, having reported revenue growth of just 1.6% in its last half-yearly earnings report that we saw back in December. But it has managed to decisively — if a little haphazardly — increase its dividends over the past decade. Today, it offers a fully-franked dividend yield well north of 5.5%. 

Given this company has a proven ability to maintain and even raise its dividends and franking credits during economic maladies such as surging inflation and the pandemic, I think Metcash is a dividend stock any investor can feel comfortable owning as part of a diversified income portfolio. 

Motley Fool contributor Sebastian Bowen does not own shares of Metcash Ltd.

Yancoal Australia Ltd

What it does: Yancoal is an Australian coal miner. The company has a range of high-quality mining assets across New South Wales, Queensland, and Western Australia. Yancoal digs up and processes a diversified mix of metallurgical and thermal coal.

By Bernd Struben: Like it or not, the death of coal appears to have been announced prematurely.

While coal prices have come down from the record levels we saw in 2022, coal is still trading well above historic levels — and well above the price Yancoal needs to turn a handsome profit. Furthermore, with the world’s most populous nations, China and India, continuing to roll out new coal-fired power stations, I believe prices will be supported amid limited global supply growth.

Despite a 39% decrease in its realised coal price in calendar year 2023, Yancoal still raked in revenue of $7.8 billion on the back of a 14% increase in attributable saleable coal production. The company closed out the year with a $1.4 billion cash balance.

As for that passive income, Yancoal paid out 69.5 cents per share in fully franked dividends over the past 12 months. Based on the Yancoal share price of $5.25 at Friday’s close, that equates to a trailing yield of 13.24%.

Motley Fool contributor Bernd Struben does not own shares of Yancoal Australia Ltd.

Rio Tinto Ltd

What it does: Rio Tinto is one of the world’s largest miners. Its portfolio includes iron ore, copper, aluminium and a range of other minerals and materials needed for the world to cut carbon emissions to net zero.

By James Mickleboro: If you’re not averse to investing in the mining sector, then I think it would be worth considering Rio Tinto shares.

While commodity prices will inevitably fluctuate, most analysts agree that the coming years are looking favourable for the key metals and minerals that Rio Tinto mines. This is particularly the case for copper, which is tipped to experience a supply crunch in the near future.

This couldn’t have come at a better time for Rio Tinto. Analysts at Goldman Sachs recently noted that “Rio is a FCF [free cash flow] and production growth story in our view, with forecast Cu Eq [copper equivalent] production growth of ~5-6% in 2024 & 2025 driven by the ramp-up of the Oyu Tolgoi UG copper mine & a recovery at Escondida and Bingham”.

The broker expects this to underpin fully franked dividend yields of approximately 5.5% in FY 2024 and 5.7% in FY 2025. Its analysts, with their buy rating and $140.20 price target, also see room for this ASX dividend share to climb from current levels.

Motley Fool contributor James Mickleboro does not own shares of Rio Tinto Ltd.

The post Top ASX dividend shares to buy in April 2024 appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto share price slips amid an unrelenting ESG grilling
• 4 ASX All Ords shares with ex-dividend dates next week
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 5 things to watch on the ASX 200 on Friday
• Why is everyone talking about Rio Tinto stock on Thursday?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Brickworks, Goldman Sachs Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Smartgroup, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Amazon and Metcash. 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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Given how low the Australian pension is, if you are aiming for a comfortable retirement, you will undoubtedly want to finish your career with as much superannuation as possible.

But given that most people understandably don’t talk about their superannuation balances with their friends and colleagues, it can be difficult to know how you compare to the average person and whether you are on course to retire wealthy or not.

Knowing your balance and where you stand compared to your retirement goals is very important. That’s because if you have fallen behind the curve, you have time to make extra contributions to hit your target.

For example, if you have recently turned 50, you currently have 17 years until you hit retirement age. Thanks to the power of compounding, that’s more than enough time to generate significant wealth from ASX shares.

But what is the average Australian superannuation balance at age 50 in 2024? Let’s take a look at what the data shows.

The average Australian superannuation balance at age 50 in 2024

Well, firstly, the data for 2024 is not yet available, but it’s safe to say that the numbers won’t have changed much since the last data release.

According to the nation’s largest super fund, AustralianSuper, the average superannuation balance for women aged 50-54 in 2023 was $191,400. For men aged 50-54, the average balance stood at $289,900.

Though, it is worth noting that this is the average across the 50-54 years old range. It is probable that most 50-year-olds will have superannuation balances below the average of this group.

Nevertheless, let’s imagine that we can compound these figures by 9% per annum for 17 years and add $750 a month to the balances. What will we end up with?

For women aged 50, their superannuation balance would grow to $1,177,081 by the time they are 67. And for men aged 50, their balance would become $1,603,352.

Is this good?

The good news is that these figures are at the comfortable side of retirement life.

For example, financial services company AMP Ltd (ASX: AMP) estimates that a single retiree needs to have $1.25 million in their superannuation to fund a “comfortable retirement.” This allows for $50,207 in annual expenses using only their superannuation.

Whereas for a “modest retirement,” a single retiree would need $795,000 for $31,867 per annum expenses.

What if you’re behind the curve?

If you’re behind the curve with your superannuation balance, the best thing to do is to make extra contributions wherever possible.

For example, if you were 50 years old with a superannuation balance of $150,000, if your balance compounds 9% per annum, you could grow your superannuation to $1.2 million in 17 years by adding $1,200 to it monthly.

The key is to understand your balance and your goals, and what you need to do now to achieve the latter.

The post Here’s the average Australian superannuation balance at age 50 in 2024 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Rio Tinto share price slips amid an unrelenting ESG grilling
• I wish I’d known this decades ago
• Why the Mesoblast share price can rise another 60%
• Brokers name 3 ASX shares 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 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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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• Why Aurelia Metals, Elders, GQG, and Telix shares are storming higher today
• Why is the ASX 200 ending the week with a whimper?
• Bell Potter names the best ASX 200 shares to buy in April
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Elders and Telix Pharmaceuticals. 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 Rio Tinto Ltd (ASX: RIO) share price is down 1.30% to $120.23 amid a fresh round of environmental questions being lobbed at management during the miner’s UK annual general meeting (AGM).

Held in London last night, Rio Tinto chair Dominic Barton indicated the company would set nature and biodiversity preservation targets for projects in developing nations.

Investors and eco-advocates questioned Rio about the Simandou iron ore project in Guinea and its plans to ensure good environmental, social, and corporate governance (ESG).

The project sits in a forest that is home to the endangered Western chimpanzee.

According to the Australian Financial Review (AFR), Barton told shareholders that civil society groups wanted Simandou sustainably developed.

He said:

We’ve been encouraged to forge ahead on establishing nature and biodiversity targets. We are recognised as being able to bring international standards with us – wherever we work.

ESG questions from investors and advocates

During the post-AGM investor call, Jonathan Kaufman from Advocates for Community Alternatives in West Africa spoke up.

He told Rio, “We’ve heard no credible plan for ensuring that high environmental and social standards … will be respected” at Simandou.

Another attendee was acting on behalf of EQ Investors, a specialist sustainable investment wealth manager. They asked Rio to provide “greater detailed articulation of its strategy towards future-facing commodities”.

Doug McMurdo, chair of a pension fund forum, pressed Rio Tinto for a commitment to independent water impact assessments.

He said Rio “still has some work to do” in establishing a social license since the Juukan Gorge incident.

“Independent assessments are the only way I can see at this point to establish this social license,” McMurdo said.

Barton addressed ESG concerns by saying:

As we prepare for the future, we are working very hard to embed our commitment to ESG and deepen our social license in all aspects of our decision-making.

I and other Board members have had the chance to visit 15 Rio Tinto sites in the last 12 months. And we’ve been encouraged to see how this commitment extends throughout the mining life cycle, from exploration right through to closure.

Major shareholder considering divestment

The UK investors’ questions last night come amid the threat of Rio Tinto losing one of its largest shareholders on ethical grounds.

The Government Pension Fund of Norway is the world’s largest sovereign wealth fund. It’s held by Norges Bank Investment Management and owns the fifth largest institutional position in Rio Tinto shares.

The position is worth $3.2 billion and accounts for 1.9% of Rio Tinto shares.

The pension fund has strict ethical criteria.

According to The Wall Street Journal, Norway’s Council of Ethics, which advises the investment fund, is examining Rio Tinto’s ESG credentials.

Reportedly, the council has raised environmental damage in the Brazilian Amazon with the miner. This relates to Rio Tinto’s partial ownership of Brazil’s largest bauxite producer, Mineração Rio do Norte (MRN). 

The pension fund has kicked Rio Tinto out before. Back in 2008, the fund didn’t like Rio’s Grasberg mine in Indonesia and the risk of severe environmental damage it posed.

Rio Tinto agreed to sell its stake in 2019 and was readmitted into the fund.

Rio Tinto share price snapshot

The Rio Tinto share price is down 12.1% in the year to date.

It is up 2.95% over the past 12 months.

Rio Tinto will hold its Australian AGM on 2 May.

The post Rio Tinto share price slips amid an unrelenting ESG grilling appeared first on The Motley Fool Australia.

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More reading

• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 5 things to watch on the ASX 200 on Friday
• Why is everyone talking about Rio Tinto stock on Thursday?
• How this unexpected development in China could boost ASX 200 mining stocks
• Should I buy BHP or Rio Tinto shares in April?

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

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A little while ago, I started an occasional series I’ve called ‘Friday Fundamentals’… taking investing back to first principles to help new investors understand — and remind experienced investors of — the simple truths of investing.

Today, I’m going to share some bullet points I’ve pulled together that I’m calling ‘Investing advice for my younger self’ — I hope it helps!

—–

When I started investing, I wanted to know the answers to all of the questions.

I gathered data, computed ratios, dived deeper.

It gave me a solid foundation… but it’s not how I invest today.

What would I tell my younger self?

To still do that work, to give yourself a foundation. But move on quickly, thereafter.

To what? I’m glad you asked.

Do the simple stuff that puts you on the right track

Work hard. Save hard. Diversify. Add regularly.

Boring? Sure. But foundationally necessary? You bet!

Understand the big ideas

The truly big ideas help refine your investment universe really quickly: balance sheet strength, competitive advantage, growth runway, resilience. A few more, besides. But not many.

Apply the 80/20 rule

An extension of the above, really. Discard bad ideas quickly. Discard ‘I don’t know’ ideas just as quickly.

You don’t have to know all of the answers to all of the questions. You don’t need to have a view on every company.

And once you’ve answered the most important questions about a company, you’ve probably got 95% of the information you need to make an investment decision.

Focus on quality

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” — Warren Buffett

Why? Because a fair company doesn’t have the ability to grow profits at attractive rates for a long time.

A wonderful company does.

Be patient

You only get the benefits of compounding if you let it happen. Sounds obvious, but too many people just can’t leave well enough alone.

Stop rushing. Buy well, then let it happen.

Impatience is the enemy of successful investing.

Expect volatility… and long periods of underperformance

Amazon shares (I own) were lower in December 2022 than in April 2019. Then more than doubled in 16 months.

The ASX fell 38% when COVID hit, and is now near an all-time high

Don’t fight it… ride the wave.

Don’t go back to Square 1

Another one from Buffett. Betting the farm is dumb. Risking everything you’ve built up is dumb. This isn’t a computer game. You don’t get more lives, or to respawn at the last checkpoint.

Aesop was right. The tortoise wins.

—–

I hope that’s helpful. Have a great weekend!

Fool on!

The post I wish I’d known this decades ago appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares to beat inflation
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• APM share price freeze extended amid new takeover bid

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 Scott Phillips has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. 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 Mesoblast Ltd (ASX: MSB) share price is having a tough finish to the week.

In afternoon trade, the stem cell focused biotechnology company’s shares are down almost 4% to 86.5 cents.

While this is disappointing, shareholders won’t be too concerned.

After all, even after today’s decline, the Mesoblast share price is up approximately 190% since this time last month.

To put that into context, a $10,000 investment a month ago would now be worth around $29,000.

But if you thought the gains were over, think again. That’s because analysts at Bell Potter are tipping the company’s shares to continue their meteoric rise.

Mesoblast share price tipped to rise

According to a note out of the broker this afternoon, its analysts have retained their speculative buy rating and lifted their price target by 141% to $1.40 (from 58 cents).

Based on the current Mesoblast share price, this implies potential upside of 62% for investors over the next 12 months.

The broker made the move in response to feedback the company received from the US Food and Drug Administration (FDA) last month. It explains:

Using carefully chosen words, the FDA has informed MSB that the available clinical data from its Phase 3 study MSB-GvHD001 in children with steroid refractory acute graft versus host disease (SR a GvHD) appears sufficient to support resubmission of the Biological Licence Application (BLA) for Remestemcel.

It believes the timing of the correspondence is not a coincidence.

The timing of the correspondence coincides with refreshed leadership at the newly formed Office of Therapeutic Products (OTP) within CBER at the FDA and the release of draft industry guidance for demonstrating effectiveness in one adequate, well controlled clinical investigation with confirmatory evidence.

When could Remestemcel be approved?

While approval is by no means guaranteed, Bell Potter is feeling a lot more confident now.

Approval would be good for investors for a couple of reasons. One is that it means meaningful revenue generation may not be far away. The other is that it could open the door to further use cases in the near future. The broker concludes:

Our best estimate for approval of Remestemcel is mid August 2024. The planned adult study in GvHD has for the moment been postponed pending the outcome of the resubmitted BLA. Valuation is increased from $0.58 to $1.40 reflecting significant changes to revenue forecasts bought about by renewed confidence for a prospective approval for Remestemcel in Paediatric GvHD later this year. A first approval may represent a gateway to a series of label expansions in the ensuing period as reflected in the share price movement in recent days.

The Mesoblast share price remains down 11% over the last 12 months despite its recent surge.

The post Why the Mesoblast share price can rise another 60% appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy now
• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Mesoblast share price dumps 10% as excitement simmers on FDA submission
• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Blast off! Mesoblast share price surging 60%

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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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:

Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Bell Potter, its analysts have retained their buy rating on this defence and space company’s shares with a trimmed price target of $2.20. The broker believes that the company’s equity raise and investment in long lead time critical supplies is a prudent decision from management. It also feels it is reflective of its strengthened financial position and improved visibility over near-term sales opportunities. The Electro Optic Systems share price is trading at $1.59 on Friday afternoon.

Mesoblast Ltd (ASX: MSB)

Another note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this biotechnology company’s shares with a significantly improved price target of $1.40 (from 58 cents previously). Bell Potter notes that the FDA has used carefully chosen words to inform Mesoblast that the available clinical data from its Phase 3 study MSB-GvHD001 in children with steroid refractory acute graft versus host disease (SR a GvHD) appears sufficient to support a resubmission of the Biological Licence Application (BLA) for Remestemcel. It points out that the timing of the correspondence coincides with refreshed leadership at the newly formed Office of Therapeutic Products at the FDA. In light of this, the broker has renewed confidence for a prospective approval for Remestemcel later this year. It feels that a first approval may represent a gateway to a series of label expansions in the ensuing period. The Mesoblast share price is fetching 86.7 cents on Friday.

Suncorp Group Ltd (ASX: SUN)

Analysts at Morgan Stanley have retained their overweight rating and $17.05 price target on this insurance giant’s shares. This follows news that the company has signed an agreement to sell its New Zealand life insurance business to Resolution Life for approximately $375 million. The broker feels the selling price is fair and expects it to result in a simplified business structure. Combined with the Suncorp Bank sale to ANZ Group Holdings Ltd (ASX: ANZ), it believes there could be some big capital returns to come in the near future. The Suncorp share price is on course to end the week at $16.25.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Suncorp share price hits new 52-week high amid $375m asset sale
• Here are the top 10 ASX 200 shares today
• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Mesoblast share price dumps 10% as excitement simmers on FDA submission

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 Electro Optic Systems. 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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After a decade of dormancy, inflation reared its ugly head as a major economic issue investors had to confront and deal with over 2021 and 2022. Whilst the decades-high levels of price rises that we saw in 2022 are receding, inflation still remains uncomfortably elevated – which is the main reason why interest rates also remain at decade-highs today.

So how should ASX investors approach this conundrum? After all, inflation eats into our wealth and our wages, and certainly throws a spanner or two into the investing mix.

Well, I think a good solution remains to invest in ASX dividend shares. The share market gives us the best shot at overcoming any economic malady to build wealth, whether that be inflation or deflation.

But that’s only if you have the right shares of course. So today, let’s discuss two ASX dividend shares that I think offer some of the best inflation protections on the stock market.

2 ASX dividend shares to hedge against inflation

Coles Group Ltd (ASX: COL)

First up is ASX 200 supermarket stock Coles. High-quality shares in the consumer staples sector are always going to have inherent inflation resistance built into their business models, thanks to the essential nature of the goods and services that they sell. In other words, these companies can increase prices in line with inflation without fear of a significant loss of sales. This label, in my opinion, applies to Coles.

This company’s most recent earnings report was encouraging, showing Coles potentially snatching market share gains from its arch-rival Woolworths Group Ltd (ASX: WOW) over the second half of 2023.

Given Coles’ ability to increase earnings over time, coupled with its fully-franked dividends, which have increased almost every year since 2018, I think this is a great stock to help protect a share portfolio against inflation.

Transurban Group (ASX: TCL)

It’s not too often that a company’s earnings are completely insulated from the corrosive effects of inflation. Yet we can say this about ASX 200 toll road operator and dividend share Transurban. Transurban has a huge portfolio of toll roads across North America, Brisbane, Melbourne and particularly Sydney. Most of these toll roads are arterial routes that are difficult to avoid for motorists.

The beauty of Transurban’s business model is that it has decades-long contracts on these roads, most of which allow Transurban to increase its tolls quarterly by at least the rate of inflation (and often by 4% per annum if inflation is lower).

This provides an incredible amount of certainty for Transurban investors. Barring a major catastrophe resulting in huge traffic volume falls (the pandemic for example), Transurban arguably has one of the most reliable earnings bases on the ASX. And thus, one of the most reliable dividends.

These are all ingredients that combine to make Transurban a highly effective inflation hedge, and a company you’d be happy to have in your portfolio if high inflation persists.

The post 2 ASX dividend shares to beat inflation appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names the best ASX 200 shares to buy in April
• 3 lower-risk, high-yield ASX dividend shares to consider buying now
• Want an income boost? Buy ANZ Bank and these ASX dividend stocks
• If I invest $10,000 in Transurban shares, how much dividend income will I receive?
• 5 excellent ASX dividend stocks to buy in April

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. 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.

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Like many tech-oriented stocks, Telstra Group Ltd (ASX: TLS) shares are likely to enjoy some significant benefits from the rapid advances in artificial intelligence (AI).

So, it won’t come as a surprise that the S&P/ASX 200 Index (ASX: XJO) telco is looking to AI to improve efficiency and customer service, among other benefits.

Which brings us to Telstra Ventures, a venture capital firm that runs independently but collaborates closely with Telstra and its enterprise customers.

Here’s what’s happening.

Making AI more accessible

Telstra shares could get a lift down the road from United States-based data transformation startup Coalesce.

This comes as Coalesce announced that it has successfully raised US$50 million (AU$77 million) in Series B funding to “drive growth and platform innovation”. The funding was backed in part by Telstra Ventures.

Commenting on why Telstra Ventures participated in the fundraising, Saad Siddiqui, general partner at Telstra Ventures said, “The industry is moving from labour-intensive data engineering to automated, enterprise-grade solutions.”

He added, “Coalesce leads this shift, offering comprehensive extensibility for complex ETL/ELT [extract, load, transform] scenarios and an easy-to-use interface for a wider, less technical audience.”

Coalesce CEO Armon Petrossian highlighted the potential of the technology to improve efficiency, which could help boost Telstra shares if the telco rolls out the tech in Australia.

“During a challenging VC market period, we’ve successfully raised capital by demonstrating explosive growth and an innovative product that significantly enhances the efficiency of data teams,” Petrossian said.

Fanni Fan, principal at Industry Ventures which co-led the US$50 million funding round, added, “We’ve had a front-row seat to Coalesce’s success, seeing them consistently outperform targets.”

According to Fan:

Their customers regularly cite them as the most vital part of their data stack, and their mature partner ecosystem is impressive for their stage. Encouraged by this, we confidently led their Series B investment.

Coalesce launched in Australia and New Zealand in April 2023.

According to the company, it has “revolutionised data transformation within the ELT workflow on the Snowflake data cloud”.

Snowflake Ventures also participated in the fundraising.

“Snowflake Ventures invests in our ecosystem partners to accelerate innovation,” Harsha Kapre, director of Snowflake Ventures said.

“Coalesce is designed to complement the performance and scalability of Snowflake and is well positioned to harness the power of the data cloud,” Kapre added, offering some insight into why Telstra wants a solid foot in the door here.

How have Telstra shares been tracking?

Telstra shares came under selling pressure in early February. Despite a modest uptick since late March, shares in the ASX 200 telco are down 4% in 2024.

The post Own Telstra shares? Here’s why the ASX 200 telco just backed this AI startup appeared first on The Motley Fool Australia.

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More reading

• 3 lower-risk, high-yield ASX dividend shares to consider buying now
• 2 ASX shares I’d buy to quickly add diversification
• These ASX 300 dividend shares offer yields of 5% to 8%
• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• Should ASX investors buy the dip in Telstra stock?

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 positions in and has recommended Telstra Group. 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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