Looking at the Metcash Ltd (ASX: MTS) stock price today, there’s one metric that will probably jump out rather immediately to most investors. That would be Metcash’s stonking dividend yield.

Today, Metcash – the ASX 200 consumer staples stock behind the IGA and Mitre 10 brands – is trading at $3.88 a share, down a hefty 1.27% for the day.

At this stock price, Metcash is offering a trailing dividend yield of 5.67%. That comes with full franking credits too, which means it grosses up to an impressive 8.1%.

Yes, this yield is no joke. It stems from Metcash’s last two fully-franked dividend payments. The first of those is the final dividend of 11 cents per share Metcash paid out last August. The second is the interim dividend, also worth 11 cents per share, that shareholders bagged back at the end of January this year.

A 5.77% dividend yield is not a common sight on the ASX, particularly the S&P/ASX 200 Index (ASX: XJO).

To illustrate, that’s a higher dividend yield than the likes that income heavyweights Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Commonwealth Bank of Australia (ASX: CBA) and even Westpac Banking Corp (ASX: WBC) are offering today.

So does this yield make Metcash stock a no-brainer buy for dividend investors today?

Is Metcash stock a buy for that huge dividend yield?

Full disclosure, I don’t own Metcash stock today and have no plans on buying. Metcash doesn’t exactly have an illustrious history of outsized share gains. Today, it’s share price is basically where it was back in mid-2005.

Looking at Metcash’s most recent earnings from December, I’m not convinced this is going to change anytime soon. For the first half of its 2023 financial year, the company reported a 1.6% rise in revenues to $9 billion. But there was also a 3.4% decline in underlying group earnings to $246.5 million.

As such, I don’t have a strong conviction that Metcash is going to be a market-beating ASX 200 stock in the years ahead.

Saying that, I do believe this company is a good buy for anyone focused on maximising franked dividend income. For retirees, pensioners, and anyone else who relies on stock market dividends, it’s my view that Metcash is a solid option today.

Its yield is towards the higher end of the market. Yet this company has also been a historically stable and reliable income payer (unlike many other 5%-plus yielders today).

This company’s payouts have been rising (if a little disjointedly) for more than a decade. Combined with Metcash’s consumer staples nature, I do not expect any meaningful cuts to this company’s payouts going forward.

So for those investors seeking high levels of franked income, I think Metcash stock can play a useful role as part of a diversified portfolio of ASX dividend stocks.

The post Should ASX investors buy Metcash stock for its 5.7% dividend? appeared first on The Motley Fool Australia.

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More reading

• Where I’d instantly invest $10,000 in ASX shares for passive income
• Why I bought this ASX 200 stock instead of Woolworths
• Dividend yields up to 8%! Which of these cheap ASX 300 shares should I buy?
• Top ASX shares to buy instead of a term deposit in March 2024
• Where I’d invest $30,000 in ASX shares for passive income

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Wesfarmers. The Motley Fool Australia has recommended 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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Are you on the lookout for some new additions to your income portfolio in April?

If you are, then check out the three ASX 300 dividend shares listed below that brokers have recently named as buys and tipped to offer generous dividend yields.

Here’s what you can expect from them in the coming years:

ANZ Group Holdings Ltd (ASX: ANZ)

If you don’t already have exposure to the banking sector, then it could be worth looking at ANZ Bank.

That’s the view of analysts at Ord Minnett, which believe the big four bank’s shares can continue rising from current levels.

The broker thinks ANZ could be an ASX 300 dividend share to buy partly due to its proposed acquisition of Suncorp Bank, which is nearing completion. The broker expects the acquisition to add scale to areas where it currently trails the other big four banks.

In respect to dividends, its analysts are forecasting fully franked dividends per share of $1.62 in FY 2024 and $1.65 in FY 2025. Based on the current ANZ share price of $28.81, this will mean dividend yields of 5.6% and 5.7%, respectively.

Ord Minnett currently has an accumulate rating and $31.00 price target on its shares.

GDI Property Group Ltd (ASX: GDI)

Another ASX 300 dividend share that could be a buy this month is GDI Property.

It is a fully integrated, internally managed property and funds management group with capabilities in ownership, management, refurbishment, leasing and syndication of properties.

The team at Bell Potter is tipping the company’s shares as a buy at current levels. Especially given the broker’s expectation that GDI Property will be paying some big dividends in the coming years.

Bell Potter is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 60.5 cents, this implies dividend yields of 8.2%.

Bell Potter has a buy rating and 75 cents price target on its shares.

Telstra Group Ltd (ASX: TLS)

A third ASX 300 dividend share that analysts rate highly is Telstra.

It is of course Australia’s largest telecommunications company with millions of broadband and mobile subscribers.

Goldman Sachs is a fan of Telstra and believes its key mobile business will underpin low risk earnings and dividend growth over the coming years.

Speaking of the latter, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to fully franked yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $4.55 price target on Telstra’s shares.

The post These ASX 300 dividend shares offer yields of 5% to 8% appeared first on The Motley Fool Australia.

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More reading

• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• Invested $10,000 in ANZ shares during the 2020 dip? Here’s what you have now!
• The pros and cons of buying ANZ shares right now
• Should ASX investors buy the dip in Telstra stock?
• 5 top ASX dividend shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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Looking for passive income to beat the ASX?

While there are a number of high-yielding ASX dividend shares you may wish to investigate, one stands out as a true cash gusher.

The passive income star I’m talking about is ASX coal stock Yancoal Australia Ltd (ASX: YAL).

Beat the ASX with this cash-generating energy stock

Yancoal leapt onto many income investors’ radars in 2022 and early 2023. That’s when record thermal coal prices drove record profits and sky-high fully franked dividends that truly beat the ASX.

Now, those dividends have come down in the second half of 2023 and the first half of 2024 as coal prices returned to earth.

But with coal prices remaining elevated by historic standards, this passive income stock is still a cash gusher. And with global coal demand forecast to remain resilient as China, India and Indonesia, among others, continue to build new coal-fired power plants, I believe Yancoal’s dividends will continue to beat the ASX.

As for the last two dividends, the ASX coal share paid a fully franked interim dividend of 37 cents per share on 20 September.

The final dividend of 32.5 cents per share, also fully franked, will land in eligible investors’ bank accounts on 30 April. If you owned shares on 11 March, keep an eye out for that one. Yancoal shares traded ex-dividend on 12 March.

All up then, this ASX dividend gem paid (or shortly will pay) a total of 69.5 cents per share over the past 12 months.

The Yancoal share price hasn’t beaten the ASX so far this year. But it’s back in the green for 2024, up just over 1% at $5.25 a share.

That equates to a fully franked trailing yield of 13.2%.

A peak under Yancoal’s hood

To get an idea of how this cash-gushing coal stock is one to beat the ASX, we turn to the company’s full-year 2023 results.

As mentioned, coal prices fell significantly over the year. And Yancoal reported a 39% decrease in realised coal price to $232 per tonne.

While that resulted in a 25% decline in revenue, full-year revenue still came in at $7.8 billion, supported by a 14% increase in attributable saleable coal production.

And management noted that 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $3.5 billion and an EBITDA margin of 45% “demonstrated the quality of Yancoal’s assets in the face of retreating coal prices”.

As for the balance sheet, this ASX beating dividend stock had a cash balance at the end of 2023 of $1.4 billion.

The post Passive income investors, beat the ASX with this cash-gushing dividend stock! appeared first on The Motley Fool Australia.

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More reading

• Buy 3,500 shares of this super ASX dividend stock for $2,400 per year in passive income
• A 36% yield from this ASX dividend share? Here’s how these forward-looking investors made it happen
• I’d buy this ASX 200 stock today to start making powerful passive income for retirement
• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today
• ASX dividend royalty: Australia’s top stocks for reliable income

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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If you’re a growth investor, then it could be worth checking out the shares named below.

These three ASX growth shares have been growing at a rapid rate and have been tipped to continue this trend long into the future.

Here’s why analysts think they are in the buy zone this month:

Life360 Inc (ASX: 360)

The first ASX growth share for investors to look at is Life360.

It is a Silicon Valley-based technology company with a focus on products and services for digitally native families. Its key product is the Life360 app, which has 60 million active users.

The company has also recently announced plans to monetise its user base further by launching an advertising business.

Goldman Sachs is very positive on the company’s outlook. It highlights that it is “exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

The broker currently has a buy rating and $14.20 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be a top option is NextDC. It is a technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.

NextDC has been a market-beater over the last decade thanks to strong demand for its services and its growing data centre footprint.

The good news is that demand looks set to remain strong for some time to come thanks to the cloud computing and artificial intelligence booms. In addition, the company has been expanding overseas and into regional areas to meet demand in these locations.

Macquarie is feeling bullish about the company’s outlook and responded very positively to the company’s recent half-year results.

So much so, it retained its outperform rating and lifted its price target on its shares to $20.00.

TechnologyOne Ltd (ASX: TNE)

A third ASX growth share that could be in the buy zone according to analysts is TechnologyOne.

It is a global software as a service (SaaS) enterprise resource planning (ERP) solution provider that transforms business and aims to make life simple for its customers.

The company has been delivering on its aims and more, which has underpinned significant recurring revenue growth in recent years. The good news is that Bell Potter believes this trend can continue in the company years.

It recently highlighted that if its net revenue retention (NRR) metric remains at 115%+, it “suggests the outlook remains positive and the company can double revenue every five years or so via organic growth alone.”

Bell Potter has a buy rating and $18.50 price target on Technology One’s shares.

The post 3 ASX growth shares to supercharge your investment portfolio returns appeared first on The Motley Fool Australia.

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More reading

• Got $5,000? 5 ASX shares to buy for lasting wealth
• 3 ASX shares to help turn $100,000 into $1 million
• How ASX shares vs. property performed in March
• Experts name 3 excellent ASX growth shares to buy in April
• Experts name 4 top ASX artificial intelligence shares

Motley Fool contributor James Mickleboro has positions in Life360 and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Technology One. 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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Tesla Inc (NASDAQ: TSLA) shares reversed 4.9% to US$166.63 last night on underwhelming vehicle deliveries. The update could hint at a continued revenue growth decline in 2024. So, could it be time to ponder ASX shares for greater top-line expansion?

Business expansion is a key component in providing shareholder returns. Global consulting firm McKinsey describes it as a ‘fundamental driver of value creation’.

A company often fails to reward investors without more money flowing in through increased products/services sold or higher prices. Never mind the challenge of growing profits on a stagnant top line.

It might be possible through cost-cutting in the short run, but rarely can a company sustainably cut its way to growth.

You might be wondering what better options there are than Tesla; now knowing the importance of revenue growth. The ASX is aflush with shares parading revenue growth above that of the electric vehicle (EV) maker.

ASX shares beating Tesla on growth

Tesla’s revenue growth has backtracked from 71% in 2021 to 19% in 2023.

Revenue for the 12 months ended 31 December 2023 came in at US$96.77 billion, up 18.8% from a year earlier. To be clear, this isn’t a terrible rate of growth. For comparison, the aggregate revenue growth across the S&P 500 Index is 3%.

Nevertheless, here are three ASX shares pumping up their revenue at a higher rate than Tesla.

21% revenue growth: The third largest company on the ASX is growing faster than Tesla. That’s right, Aussie biotech giant CSL Ltd (ASX: CSL) is 87 years older than the sleek carmaker and still increasing its top line at a youthful pace.

CSL recorded revenue of US$14.18 billion in the 12 months ended 31 December 2023. In 2022, the company generated US$11.71 billion in revenue. However, it is worth noting that a portion of this growth came from the Vifor acquisition.

23% revenue growth: The next ASX share firing up its financial figures is accounting software company Xero Ltd (ASX: XRO). This New Zealand business differs from Tesla and CSL because of its lack of profits. Yet, its revenue growth is in terrific shape, increasing 23% compared to a year ago.

Revenue for the 12 months ended 30 September 2023 arrived at NZ$1.54 billion. A year earlier, the company’s total revenue tallied up to NZ$1.25 billion. In February, the Xero team shared their aspiration to double the size of the business.

29% revenue growth: Lastly, an ASX share that bests Tesla in revenue growth and profit margin. Founded 8 years before the automotive spectacle, WiseTech Global Ltd (ASX: WTC) is a logistics software company flexing impressive fundamentals.

WiseTech raked in $939 million in revenue for the 12 months ended 31 December 2023. A year earlier, this figure had arrived at $729.4 million.

Furthermore, the company outlined full-year FY24 revenue guidance of $1,040 million to $1,095 million, equating to an increase of between 27% and 34%. This is not a one-off either. WiseTech was generating $284.9 million in revenue a mere five years ago.

The post 3 ASX shares boasting better revenue growth than Tesla appeared first on The Motley Fool Australia.

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More reading

• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Own CSL shares? You’re receiving a healthy dividend boost today!
• Got $5,000? 5 ASX shares to buy for lasting wealth
• 5 things to watch on the ASX 200 on Wednesday
• CSL share price lower despite US FDA boost

Motley Fool contributor Mitchell Lawler has positions in Tesla and has the following options: long June 2025 $510 calls on Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Tesla, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended CSL. 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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Last week, I looked at the top ASX 200 growth stocks that Macquarie Group Ltd (ASX: MQG) has in its growth portfolio. You can read about those shares here.

The investment bank also has an income version that it notes represents a starting point to form a portfolio with income characteristics.

The broker also highlights that this portfolio is created with a focus on a higher degree of earnings certainty, backed by strong cash flows, and highly tax effective dividend income.

Its top five ASX 200 income portfolio holdings right now are listed below:

Westpac Banking Corp (ASX: WBC)

Australia’s oldest bank is the biggest holding in Macquarie’s model income portfolio. This is despite the broker having an underperform rating on Westpac and all the big four banks. Westpac currently has a 9% portfolio weighting in the portfolio.

In terms of valuation, the broker has a $26.00 price target on its shares. As for income, it is forecasting a fully franked dividend yield of 5.5% in FY 2024.

Suncorp Group Ltd (ASX: SUN)

Next in line is insurance giant Suncorp which has an 8.9% weighting in the model portfolio. Macquarie has an outperform rating and $17.00 price target on its shares.

And for that all-important income, the broker expects Suncorp’s shares to provide investors with a fully franked 4.4% dividend yield in FY 2024.

Telstra Group Ltd (ASX: TLS)

This telco giant is the third largest holding in the broker’s model income portfolio with a weighting of 8.1%. Unlike with the banks, its analysts expect a generous dividend yield and major upside potential from this ASX 200 stock.

Macquarie currently has an outperform rating and $4.38 price target on its shares. This suggests that upside of 14% is possible for investors over the next 12 months.

In addition, with the broker forecasting a fully franked dividend yield of 4.8% in FY 2024, the total potential return stretches to approximately 19%.

National Australia Bank Ltd (ASX: NAB)

The next big four bank that is included in the model portfolio is NAB with a portfolio weighting of 7.6%. Though, as I mentioned above, Macquarie has it in its portfolio despite having an underperform rating and $32.50 price target on its shares.

As for income, the broker is forecasting a fully franked 4.8% dividend yield from the ASX 200 stock in FY 2024.

ANZ Group Holdings Ltd (ASX: ANZ)

Rounding out the top five is fellow big four bank ANZ with a weighting of 7.4%. Macquarie has an underperform rating and $27.00 price target on its shares.

In respect to dividends, the broker expects a partially franked dividend yield of 5.5% from its shares in FY 2024.

The post Here are the top five ASX 200 stocks in Macquarie’s model income portfolio appeared first on The Motley Fool Australia.

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More reading

• Invested $10,000 in ANZ shares during the 2020 dip? Here’s what you have now!
• After leaping to 52-week highs in March, what’s next for the Westpac share price?
• With a 7% dividend yield, are NAB shares a buy?
• 3 ASX shares I think will lead the next bull market charge
• 3 top ASX 200 dividend shares to buy now for $2,000 a month in passive income

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and 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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It has been a difficult session for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index has followed Wall Street’s lead and dropped deep into the red. At the time of writing, the benchmark index is down 1.3% to 7,785.3.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 9.5% to 86 cents. This is despite there being no news out of the biotechnology company. However, with its shares flying high in recent sessions, it seems quite likely that some profit taking is happening today. After all, Mesoblast’s shares remain up over 100% since this time last week despite today’s pullback. This strong gain was driven by the US Food and Drug Administration advising that there appears to be sufficient results to support the submission of the company’s proposed Biologics License Application (BLA) for its remestemcel-L medicine to treat paediatric patients with steroid-refractory acute graft versus host disease.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 3% to $1.95. Investors have been selling this gold miner’s shares after it released an update on the McPhillamys Gold Project in New South Wales. Regis Resources advised that substantial progress has been made towards completion of the Definitive Feasibility Study (DFS) for the project. However, as the DFS has progressed, it has now become apparent that its development costs will be higher than anticipated and previously communicated.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is down 14% to $2.37. This has been driven by the release of the gold miner’s quarterly update this morning. During the quarter, Westgold produced 52,100 ounces of gold and achieved an average gold sale price of $3,137 per ounce. The former was softer than expected and has led to management downgrading its FY 2024 production guidance range to 220,000 to 230,000 ounces.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 5% to $89.89. This is despite there being no news out of the logistics solutions technology company. However, the tech sector is a sea of red on Wednesday following a poor night of trade on the Nasdaq index. Investors appear to have been spooked by the prospect of interest rates staying higher for longer. In afternoon trade, the S&P/ASX All Technology Index is down a disappointing 2.6%. This is twice the size of the market decline today.

The post Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• 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%
• Top ASX shares to buy in April 2024
• Experts name 4 top ASX artificial intelligence 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 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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The S&P/ASX 200 Index (ASX: XJO) is well and truly out of form on Wednesday and on course to record a sizeable decline. In afternoon trade, the benchmark index is down 1.3% to 7,785.9 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

29Metals Ltd (ASX: 29M)

The 29Metals share price is up 7% to 45 cents. This is despite there being no news out of the copper miner today. However, it is worth noting that its shares were sold off last week following a disappointing update on the Capricorn Copper Operation. It has been forced to suspend operations indefinitely due to a steady accumulation of water in regulated structures on site. It seems that some investors believe that its shares were oversold last week.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up over 1% to $5.02. This morning, this uranium developer announced that it has successfully passed the final technical milestone in its Honeymoon re-start strategy. Next week, concentrated high-grade eluate will be recovered through an upgraded precipitation circuit to produce UO4, and then calcined to produce a high-quality saleable uranium oxide (U3O8) product. This paves the way for the first drum of uranium to be filled in the next two weeks.

Cooper Energy Ltd (ASX: COE)

The Cooper Energy share price is up 2.5% to 22 cents. This follows the release of a market update from the gas producer. That update revealed that the BMG wells decommissioning programme is now over 70% complete. Pleasingly, the programme remains in-line with the mid-case cost guidance of $240 million to $280 million. In addition, its Orbost Improvement Project initiatives continue to progress well, with increased average processing rates at the plant.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is up 8% to $1.96. Investors have been buying Ramelius Resources shares today after the gold miner released a production update. According to the release, the company achieved record gold production of 86,928 ounces during the March quarter. This was ahead of its guidance for production of 70,000 ounces to 77,500 ounces. Another positive was that the miner finished the period with cash and gold of $407.1 million. This reflects free cash flow generation of $125.3 million during the three months. Ramelius Resources shares are now up an impressive 65% over the last 12 months.

The post Why 29Metals, Boss Energy, Cooper Energy, and Ramelius shares are pushing higher 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 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 Commonwealth Bank of Australia (ASX: CBA) share price has been attracting a lot of attention of late. CBA shares command an outsized presence in the ASX arena at any given moment.

That’s largely thanks to its status as the largest ASX bank share, as well as being the second-largest share on the entire ASX.

This is also a company many investors have owned (and benefited from) for decades. So what this share does on a day-to-day basis typically attracts more attention than most.

But CBA has been in the news even more than usual lately. And it’s not hard to see why. This ASX bank has been downing new all-time record highs like bowling pins in recent months.

New record highs falling like flies

It’s hard to imagine today, but as recently as November, CBA shares were going for under $96. But in the months since, the bank has hit a series of new records. The most recent came just last month, which saw Commonwealth Bank climb to $121.54 a share.

Check it out for yourself below:

This is interesting because this latest record high followed on from a lukewarm reception of CBA’s latest earnings report generated in February.

As we covered at the time, these earnings revealed a 0.2% rise in operating income to $13.65 billion, whilst expenses rose 4% to $6.01 billion. The company’s net profits after tax fell by 3% to $5.02 billion.

Perhaps CBA’s 2.4% dividend hike to its interim payout, bringing it to a fully-franked $2.15 per share, resulted in a subsequent re-evaluation in the weeks since this earnings report came out.

Even today, with the CBA share price sitting at $118.04 at the time of writing, we’re not too far off the bank’s new record high.

But one ASX expert is warning investors to take advantage of this fact, and sell their CBA shares today.

ASX expert tells investors to sell CBA shares

As reported by The Bull, Damien Nguyen, analyst at ASX broker Morgans, has given the CBA share price a sell rating. Nguyen notes that CBA is a quality company.

But he told investors that the shares are simply too expensive to justify at their current levels, given their expected future returns. Here’s what he said in full:

Australia’s biggest bank enjoys a loyal retail investor and customer base. However, we believe potential medium term returns are too compressed at current prices considering its earnings outlook and elevated trading multiples. The shares were recently trading at a substantial premium to our 12-month price target of $91.28.

Nguyen’s view aligns with the vast majority of ASX experts that we’ve recently covered regarding CBA shares.

Last month, my Fool colleague went through the thoughts of Wilsons equity strategist Rob Crookston. Here’s what Crookston had to say:

While CBA has a lower ROE [return on equity] (13.3%) relative to JP Morgan Chase & Co (NYSE: JPM) (14.9%), it trades on a 58% premium on a price-to-book basis… While the historically resilient Australian economy and the concentrated nature of the domestic banking sector deserves a premium, this is excessive.

That followed a share price target of $95 for CBA from brokers at Macquarie, which we also went through last month.

So most ASX experts seem united in their view that CBA shares are overvalued right now. But many analysts have been voicing similar sentiments for years, yet here we are in early 2024 with a series of new all-time records for the CBA share price.

The post ASX expert: Sell CBA shares now appeared first on The Motley Fool Australia.

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More reading

• Why March was a record-smashing month for the CBA share price
• Own CBA shares? It’s payday for you!
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• Are CBA shares really worth $120?
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 JPMorgan Chase and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Not many investors were buying Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares in the early months of 2020.

Following the outbreak of the global pandemic, fear ruled the markets. Most investors were rushing to hit the sell button on all kinds of quality ASX stocks, including ANZ.

From February 21 2020 through to 22 May of the same year, this saw the S&P/ASX 200 Index (ASX: XJO) bank stock crater by a shocking 44%.

Now it took a brave and forward-looking investor to recognize that after this massive sell-off, ANZ shares were a screaming bargain at $15.11 apiece.

If you’d taken the plunge and bought the dip on the day, your $10,000 would have bought 661 shares with enough pocket money left over for some chips.

Here’s how much those shares would have delivered now.

ANZ shares came roaring back

Alongside the broader market, ANZ staged a strong recovery following its May 2020 low point. That was driven by growing optimism over the outlook for COVID vaccines, along with massive government stimulus measures from developed nations across the world.

More recently, ANZ shares set new 52-week highs in March this year.

The rally across the bank stocks has been driven by increasing optimism over the outlook for interest rate cuts from the Reserve Bank of Australia in 2024. That could enable ANZ to boost its earnings if the bank chooses not to pass the full amount of any rate decreases on to its borrowers.

Although shares have retraced some from those highs, along with some of the rate cut hype, ANZ stock remains up more than 14% over the past six months at $28.98.

Meaning the 661 shares you bought for $10,000 at the pandemic dip would be worth $19,156.78 today.

But let’s not forget the dividends.

Over this period you would have received eight dividends from those ANZ shares, all fully franked barring the most recent final dividend payout. That one was franked at 56%.

All told, the ASX 200 bank stock paid out $5.23 a share in dividends since 22 May 2020. Or $3,457.03 from your 661 shares.

Assuming you spent that passive income as it came in instead of reinvesting it, we’ll just add those gains in as cash.

According to my trusty calculator, that means the $10,000 invested in ANZ shares during the pandemic dip would have returned $22,613.81 today.

Which brings two of my favourite Warren Buffett quotes to mind.

“Never overpay for anything,” he advises.

And famously, “Be greedy when others are fearful.”

The post Invested $10,000 in ANZ shares during the 2020 dip? Here’s what you have now! appeared first on The Motley Fool Australia.

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More reading

• The pros and cons of buying ANZ shares right now
• Buy ANZ and this ASX dividend share now
• Shares vs. property: How to generate $500 passive income per month
• These 5 high-quality companies are now paying a better income than CBA shares
• ANZ shares charge higher on $57.5 million class action settlement news

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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