Time is certainly running out to buy ASX 200 shares before the start of April, thanks to the joys of the Easter long weekend. But that doesn’t mean the topic isn’t worth discussing of course.

So today, in celebration of the holiday, let’s talk about the two ASX 200 shares that I would happily buy today if I had the spare cash to do so.

A pair of ASX 200 shares I would buy before April

Telstra Group Ltd (ASX: TLS)

Telstra is an ASX 200 share that’s looking particularly attractive to me right now. This is a company we’d probably all know, and perhaps even be a customer of. Telstra has the largest market share, by far, of both mobile network connections and fixed-line internet services in Australia.

In my view, the company has a wide moat in the form of its indisputable network and coverage superiority. This does a good job of both attracting and keeping customers over time.

I already own shares of this AX 200 telco. But Telstra has popped up on my radar again thanks to a meaningful share price slump. Since reaching a new 52-week high of $4.46 last year, the company has drifted lower and is now going for $3.82 at present, just a touch above its most recent 52-week low of $3.75.

But this has had the effect of boosting Telstra’s fully-franked dividend yield to a compelling 4.58%. I wouldn’t be surprised if Telstra makes its way back to the mid-$4 range over the next year or two. Especially if some ASX brokers are correct and the telco continues to boost its dividends over the next two years.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Washington H. Soul Pattinson, or Soul Patts for short, is one of my favourite ASX 200 shares. In fact, it’s one of my favourite companies in my entire portfolio, period.

This investing house is a rather unique company. It owns and runs a portfolio of other assets on behalf of its shareholders, functioning more like a managed fund than a traditional ASX share.

The lion’s share of Soul Patts’ portfolio is made up of several large stakes in other ASX shares, including Brickworks Ltd (ASX: BKW), New Hope Corporation Ltd (ASX: NHC) and TPG Telecom Ltd (ASX: TPG).

But in addition to these massive investments, it also owns a more diversified large-cap ASX share portfolio, venture capital investments, private credit and other unlisted assets of varying natures.

All in all, this is a highly diversified investment.

But Soul Patts’ real appeal (at least in my view) is its enviable investing track record. Shareholders have enjoyed market-beating returns from Soul Patts shares for decades.

In a recent update, the company confirmed that shareholders have enjoyed a total return (share price growth plus dividends) of 12.4% per annum over the 20 years to 31 January 2024. That beats out an All Ords Accumulation Index investment by 3.5% per annum.

Oh, and Soul Patts has also just increased its annual dividend for the 24th year in a row – a feat unrivalled on the ASX.

What else can I say? This is a top-tier company and one I would happily buy right now. That’s especially so, given the company’s shares have just taken a 5.6% haircut over the past four weeks or so.

The post 2 of my top ASX 200 shares to consider buying before April appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Investing for passive income? Keep any eye out for that boosted Telstra dividend today!
• Is Telstra stock a buy, sell, or hold?
• 5 things to watch on the ASX 200 on Thursday
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• Qantas or Telstra share price: Which will climb higher in 2024?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/GXfa4iV

If I were gunning for a $6,102 annual passive income from S&P/ASX 200 Index (ASX: XJO) dividend shares, I know which three I’d add to my portfolio first.

Before having a look at those three ASX 200 shares, however, there are a few things to keep in mind.

Spread those eggs around

I’m sure you’ve heard the expression, “Don’t keep all your eggs in one basket.”

It may seem trite. But when it comes to investing, it remains a golden rule.

So, while we’ll look at three ASX 200 companies for passive income below, a diversified portfolio (one with many baskets) should contain significantly more. There’s no magic number here. But 10 is a decent ballpark.

The second thing to keep in mind is that past performance is no guarantee of future performance.

That’s true for a company’s share price performance.

And it’s true for their dividend payouts. The yields you see quoted tend to be trailing yields, based on the last 12 months of payouts. Future yields may be higher or lower, depending on a range of factors.

With that said…

$6,102 in passive income from ASX 200 shares

The first company I’d target for passive income is ASX 200 energy stock Woodside Energy Group Ltd (ASX: WDS).

Woodside’s dividends and share price are linked to oil and gas prices. While these will vary over time, the medium-term outlook for global oil and gas demand remains quite strong.

Woodside has delivered $2.16 per share in fully franked dividends over the past 12 months. At the recent Woodside share price of $30.48, that equates to a fully franked trailing yield of 7.1%.

Second, we have ASX 200 bank stock Westpac Banking Corp (ASX: WBC). Alongside the other big banks, Westpac shares have been strong performers over the past half year. Westpac is currently trading for $26.05 a share, up 23.3% in six months.

Having paid out $1.42 in dividends over the full year, Westpac trades on a fully franked trailing yield of 5.5%.

Which brings us to the third company I’d buy for passive income today, ASX 200 mining stock Fortescue Metals Group Ltd (ASX: FMG).

Fortescue has come under selling pressure in 2024 amid slumping iron ore prices. Still, shares in the ASX 200 miner remain up 24.1% since this time last year, currently trading for $25.33 apiece. And it’s looking like the bottom may be in (or at least near) for the iron ore price.

Fortescue paid out $2.08 per share in dividends over the last 12 months. At the recent share price, the mining stock trades on a fully franked trailing yield of 8.2%.

Time in the markets

Now, I won’t build my $6,102 passive income stream from my $8,000 investment in ASX 200 shares today.

I’ll need a bit of patience and let the magic of compounding work for me.

That means I’ll be reinvesting my passive income until I can withdraw $6,102 a year without drawing down my capital.

If I invest the same amount in each of the above ASX 200 shares, I’d earn an average yield of 6.9%, which I think is realistic longer term as well.

This means I’ll need an $87,140 ASX passive income portfolio.

How long will that take?

Well, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has returned 17% over the past year. Longer-term the returns have been closer to 11%.

I think I can do a bit better than that and achieve a 12% annual return.

At that rate, my $8,000 investment today will grow to the required $87,140 in 20 years to start withdrawing my $6,102 of annual passive income.

The post I’d spend $8k on these ASX 200 shares today to target a $6,102 annual passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are Westpac shares a buy following the bank’s big tech update?
• 5 things to watch on the ASX 200 on Thursday
• Invest $12,000 in Woodside stock and get $5,700 in passive income
• Westpac shares push higher on $9.8b technology simplification plan
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/q9PUwFn

There’s no hiding from the fact that the lithium industry has been an awful place to invest over the last 12 months.

With the price of the battery material sinking to low levels, investors have been rushing to the exits and driving share prices lower and lower.

And it isn’t hard to see why. Core Lithium Ltd (ASX: CXO) recently suspended production because prices are just too low, whereas Pilbara Minerals Ltd (ASX: PLS) posted an 82% decline in first-half profit after tax to $220 million.

But every cloud has a silver lining. The silver lining here is that there could be some ASX mining stocks now trading at very cheap prices, offering investors a compelling risk/reward.

Which ASX mining stock offers the best value?

The team at Bell Potter appear to believe that Arcadium Lithium (ASX: LTM) could be one of the best ASX mining stocks to buy right now.

This is due to its diversified exposure to lithium and very strong growth portfolio. It commented:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

Big returns could be on the cards

Bell Potter has a buy rating and $10.40 price target on the ASX mining stock.

Based on its current share price of $6.73, this suggests a potential return of 54% for investors over the next 12 months.

To put this into context, if you were to invest $10,000 into the lithium miner’s shares, it would turn into over $15,000 if Bell Potter is on the money with its recommendation.

The post ASX mining in April 2024: The best stock to buy right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Core Lithium share is down 27% in March: What’s next?
• Why Telstra and these ASX 300 stocks just hit 52-week lows
• Are Pilbara Minerals shares in the buy zone or overvalued?
• 3 reasons to sell Core Lithium shares
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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.

from The Motley Fool Australia https://ift.tt/xmsLlHc

The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular investment on the ASX, particularly for income investors. As a cross-section of the entire ASX stock market, the VAS ETF is naturally a dividend heavyweight.

That’s pretty much inevitable when the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are among this fund’s largest holdings.

Even better for income investors, this exchange-traded fund (ETF) pays out its dividend distributions quarterly, rather than the usual ASX biannual schedule. That means investors can expect a passive income paycheque every three months.

The latest of these quarterly payments happens to be coming up, and fast. This index fund‘s latest payment, which covers the first three months of 2024, is due to be paid out next month on Wednesday, 17 April.

That’s the date when a number of Vanguard ETFs will pay out their dividend distributions. VAS will join the Vanguard MSCI Index International Shares ETF (ASX: VGS), the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and the Vanguard Australian Shares High Yield ETF (ASX: VHY), amongst many others, in rewarding investors with the latest distributions on 17 April.

What does the latest VAS dividend look like for ETF investors?

In the Vanguard Australian Shares ETF’s case, investors are in line to bag a payment worth approximately 84.9 cents per unit. Like all payments from this ETF, this dividend distribution will come partially franked (we don’t yet know the exact proportion).

This 84.9 cents per share dividend distribution represents a pleasing 47.1% increase over the 57.7 cents per unit distribution investors enjoyed this time last year.  It will take the total annual ASX payout for VAS to approximately $3.74 per share. At the current VAS unit price of $98.80, this equates to an annual dividend distribution yield of 3.79%.

But if investors wish to bag this latest ASX payment from VAS (or any of the other Vanguard ETFs listed above), they’d better be quick. That’s because the ex-distribution date nominated for this payout is next Tuesday, 2 April. Thanks to the Easter long weekend, this means that the last day investors can buy VAS units and be entitled to receive this dividend distribution is today.

Anyone who owns the Vanguard Australian Shares ETF at market close this Thursday will receive this payment. But anyone who buys those same units from next Tuesday onwards misses out this time.

So if you want this latest ASX dividend distribution from VAS units, you know what you have to do.

The post Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here’s what you have to do appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement?
• Here are the next distribution dates for your Vanguard ETFs
• If you own the Vanguard Australian Shares ETF (VAS), make sure you’re doing this
• 5 ASX ETFs to buy and hold for 10 years
• Selling your investment property due to land tax hikes? 5 ASX shares I’d buy with the proceeds

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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 Vanguard Australian Shares High Yield ETF 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.

from The Motley Fool Australia https://ift.tt/NyWnbrh

There haven’t been many months that have been positive for the Core Lithium Ltd (ASX: CXO) share price lately.

And barring an absolute miracle this afternoon, March certainly won’t be one of them.

As things stand, the Core Lithium share price is on course to record a monthly decline of 27%.

Why is the Core Lithium share price being hammered again?

It has been an eventful month for this lithium miner, but sadly not in a good way.

This month, the lithium miner was dumped out of the ASX 200 index, saw its CEO exit immediately out of the blue, and posted a big half-year loss.

In respect to the latter, Core Lithium reported first-half revenue of $134.8 million but a loss after tax of $167.6 million.

This reflects a 75% decline in its spodumene concentrate realised price to US$2,098 per tonne, its decision to suspend production, a non-cash impairment of $119.6 million, and provisions for onerous contracts of $27.6 million.

What’s next?

The bad news is that the few brokers that still cover the company don’t see value in the Core Lithium share price despite its fall from grace.

For example, earlier this month, Citi retained its sell rating and slashed its price target down to 11 cents.

Goldman Sachs also remains bearish. Its analysts reiterated their sell rating and cut their price target to 13 cents.

Goldman appears to believe that lithium prices will stay at levels that are not workable for Core Lithium for some time to come.

As a result, the broker is forecasting revenue of just $18 million in FY 2025 and then $34 million in FY 2026. This compares unfavourably to the revenue of $134.8 million it generated during the first six months of FY 2024.

These certainly are tough times for Core Lithium and its share price. If there isn’t a significant uptick in lithium prices in the near term, the next couple of years could be very bleak for shareholders.

The post The Core Lithium share is down 27% in March: What’s next? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Telstra and these ASX 300 stocks just hit 52-week lows
• 3 reasons to sell Core Lithium shares
• These are the 10 most shorted ASX shares
• What is the current lithium price?
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today

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

from The Motley Fool Australia https://ift.tt/5HpLDwv

The S&P/ASX 200 Index (ASX: XJO) has done it again. By ‘it’, I mean launched into new all-time highs.

In morning trade, the benchmark index hit 7,888.3 points, resetting the prior intraday record high of 7,853.1 points.

That record was notched on 8 March, which saw the ASX 200 close at 7,847.0.

Boom!

OK. There may not have been a sonic boom just now. But I reckon there should have been.

ASX 200 on a record-breaking charge

March has been a record-breaking month for the ASX 200.

The Aussie benchmark index recorded a new intraday high of 7745.6 points on 1 March and another new intraday high of 7769.1 points on 4 March.

When the index of top 200 listed Aussie companies again reset that record high on 8 March, I wrote, “If the past two weeks are anything to go by, that record may not stand for long!”

Indeed, it did not.

It’s a similar story in the United States, where the S&P 500 (INDEXSP: .INX) closed up 0.9% overnight to reset its own record close.

The tailwinds propelling Aussie and international stocks higher are much the same as they’ve been all month.

Namely increasing confidence that inflation is coming under control across the developed world, raising investor hopes of interest rate cuts on the horizon.

Markets have also been bolstered by resilient company earnings reports, optimism over the growth prospects offered by AI, and the outlook for a soft landing for both the US and Aussie economies.

What the experts are saying

Commenting on the record run for the ASX 200, Sean Sequeira, chief investment officer at Australian Eagle Asset Management, said (quoted by The Australian Financial Review), “The rally is focused on miners today, so that’s an indication of a cyclical upswing and more comfort with the outlook for the global economy.”

Indeed, the BHP Group Ltd (ASX: BHP) share price is up 1.7% in morning trade, with Rio Tinto Ltd (ASX: RIO) shares up 1.5% and Fortescue Metals Group Ltd (ASX: FMG) gaining 1.2%.

“The banks’ rally had taken a lot of the money flow from some of the more stapled earnings stocks, and now the market might be rotating into these cyclical businesses,” Sequeira added.

Ongoing strength in physical gold markets is also supporting the market.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of the ASX 200 – is up 2.5% at the time of writing.

“A rising gold price suggests the market expects further falls in inflation should support the central banks move to cut rates later this year. Safe haven demand also remains strong,” Australia and New Zealand Banking Group Ltd (ASX: ANZ) analysts noted.

The post Boom! ASX 200 blasts to new record highs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Expert: This is where the S&P 500 is going next
• Why ASX 200 investors are celebrating today’s Aussie inflation print
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/JXzsBc3

The S&P/ASX 200 Index (ASX: XJO) is on course to go into the Easter break on a very positive note.

This morning, the benchmark index has followed Wall Street’s lead and stormed 0.8% higher to a new record high of 7,889.5 points.

Unsurprisingly, a good number of ASX 200 shares have followed the market’s lead and are pushing higher with it today.

In fact, some have even managed to climb to 52-week highs (or better) today. Let’s take a look at those ASX 200 shares now:

• Aurizon Holdings Ltd (ASX: AZJ) shares have reached a 52-week high of $4.02.
• Brambles Ltd (ASX: BXB) shares hit a 52-week high of $16.23.
• Goodman Group (ASX: GMG) shares climbed to a record high of $34.03.
• Harvey Norman Holdings Limited (ASX: HVN) shares have reached a two-year high of $5.10.
• Lovisa Holdings Ltd (ASX: LOV) shares have printed a new record high of $33.22.
• Macquarie Group Ltd (ASX: MQG) shares hit a 52-week high of $200.25.
• Northern Star Resources Ltd (ASX: NST) shares are at a multi-year high of $14.56.
• QBE Insurance Group Ltd (ASX: QBE) shares have reached a multi-year high of $18.30.
• Ramelius Resources Ltd (ASX: RMS) shares are to a two-year high of $1.84.
• RED 5 Limited (ASX: RED) shares have hit a decade-high of 38.5 cents.
• Vicinity Centres (ASX: VCX) shares are up to a four-year high of $2.14.
• Virgin Money UK (ASX: VUK) shares have climbed to a five-year high of $4.13.
• West African Resources Ltd (ASX: WAF) shares are at a 52-week high of $1.20.

Shareholders of these ASX 200 shares will no doubt be hoping the rest of 2024 is equally positive. Time will tell if that is the case, but fingers crossed they do!

The post 13 ASX 200 shares at 52-week highs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX blue-chip shares I’d buy with $3,000 right now
• Here are the top 10 ASX 200 shares today
• Here are the top five ASX 200 shares in Macquarie’s model growth portfolio
• 5 things to watch on the ASX 200 on Wednesday

from The Motley Fool Australia https://ift.tt/ON1sjM4

Wanting some exposure to the tech sector? If you are, then it could be worth hearing about the two ASX tech stocks listed below that Goldman Sachs rates as buys.

Here’s what the broker is saying about these buy-rated stocks:

Macquarie Technology Group Ltd (ASX: MAQ)

The first ASX tech stock that Goldman says investors should buy is Macquarie Technology. It is a leading Australian data centre, telco, and cloud services company.

The broker believes the company is well-placed for growth and sees its valuation as attractive at current levels. It said:

MAQ is poised to demonstrate the acceleration of its data centre growth pipeline through 2024, both from IC3W (now DA approved and underway, with potential to be upsized from 38MW to 45MW) and a new site in the Sydney metro area. The core Cloud Services / Telco businesses are performing well in the interim, and valuation remains compelling relative to listed peers.

The broker has a buy rating and $93.00 price target on its shares. This implies potential upside of 18% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another ASX tech stock that Goldman is feeling positive on its enterprise software provider Readytech.

It highlights that the company’s margins have just hit an inflection point and believes this will lead to its earnings outperforming the market’s expectations. The broker explains:

RDY slightly pushed out its revenue targets, though we highlight that the 1H24 miss was driven by lumpy implementation revenue as subscription continued to grow at a mid-high teens rate. The margin inflection point has arrived and we see material upside to both Visible Alpha Consensus Data estimates and valuation upon execution towards mid-term targets.

Goldman has a buy rating and $4.25 price target on its shares. This suggests upside of almost 30% is possible over the next 12 months.

The post Goldman Sachs says these ASX tech stocks can rise 18% to 30% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman Sachs says these ASX tech stocks are top buys
• Which ASX shares delivered the biggest profit jumps of the earnings season?
• Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising
• This ASX 300 stock just jumped 12%! Here’s why

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

from The Motley Fool Australia https://ift.tt/8fE4yIa

Westpac Banking Corp (ASX: WBC) shares are underperforming on Thursday.

In morning trade, the banking giant’s shares are trading relatively flat.

As a comparison, the ASX 200 index is up 0.8% at the time of writing.

Why are Westpac shares underperforming?

Today’s softness appears to have been driven partly by a subdued reaction to its technology simplification plan from brokers.

One of those brokers was Goldman Sachs (NYSE: GS).

While its analysts see big positives from the plans, they also acknowledge that there are big execution risks. Particularly in the current environment where large projects have seldom stayed on budget. They explain:

WBC’s technology simplification plan has been a long time coming, and we believe it does, over time, have the potential to materially improve WBC’s relative productivity positioning. While management believes it can be funded with A$1.8 bn in FY24 and then A$2 bn p.a. thereafter of investment spend, we do acknowledge the high level of execution risk involved given historically banks’ large scale transformation programs have struggled to stay on budget, and we are currently operating in an elevated inflationary environment.

Should you invest?

At present, Goldman doesn’t see enough of a reward on offer with Westpac shares to justify an investment. It adds:

Trading a 12-mo forward PER of 14.2x (15 year historic average of 12.7x), we remain Neutral rated

The broker has retained its neutral rating with a slightly trimmed price target of $23.41.

Based on the current Westpac share price of $26.00, this implies potential downside of 10% for investors over the next 12 months.

Though, if we throw in the estimated 5.5% dividend yield that Goldman expects in FY 2024, the total potential loss reduces to a more modest 4.5%.

Westpac shares are up 21% over the last 12 months.

The post Are Westpac shares a buy following the bank’s big tech update? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Westpac shares push higher on $9.8b technology simplification plan
• Shares vs. property: How to generate $500 passive income per month
• Forget term deposits and buy these ASX dividend shares
• Better buy: CBA or Westpac stock?

from The Motley Fool Australia https://ift.tt/HIQqhvs

Telstra Group Ltd (ASX: TLS) pays out its boosted dividend today.

That means passive income investors who owned Telstra shares at market close on 27 February will be heading into the Easter weekend with some extra spending money.

Or money to reinvest, of course.

Telstra’s 6% dividend boost

The S&P/ASX 200 Index (ASX: XJO) telco reported its half-year results on 15 February.

Among the highlights for passive income investors was the 5.9% increase in Telstra’s interim dividend.

Management declared a fully franked dividend of 9 cents per share. That was up from 8.5 cents paid out for the interim dividend the prior year and marks Telstra’s highest interim dividend since the heady days of 2018.

The telco was able to increase its dividend on the back of a 1.2% year-on-year increase in total income for the six-month period, which reached $11.7 billion. That was driven by growth across the company’s mobile services, International, Telstra InfraCo Fixed and Amplitel.

This in turn helped drive an 11.5% increase in net profit after tax to $1.0 billion. Though the company modestly lowered its underlying EBITDA guidance range for FY 2024 to $8.2 to $8.3 billion.

As for that passive income, Telstra shares traded ex-dividend on 28 February.

That means income investors will have had to own shares at market close on 27 February to receive today’s payout.

Eligible shareholders can expect that money to hit their bank account today.

Unless, of course, they’ve opted for Telstra’s dividend reinvestment plan (DRP). Then they’ll own more Telstra shares instead.

The ASX 200 telco also paid a fully franked final dividend of 8.5 cents per share on 28 September.

At a full-year payout of 17.5 cents per share and currently trading for $3.81 per share, Telstra is trading on a fully franked trailing yield of 4.6%.

Telstra shares are up 0.79% in early morning trade today.

The post Investing for passive income? Keep any eye out for that boosted Telstra dividend today! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is Telstra stock a buy, sell, or hold?
• 5 things to watch on the ASX 200 on Thursday
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• Qantas or Telstra share price: Which will climb higher in 2024?
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?

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.

from The Motley Fool Australia https://ift.tt/dQYbcvJ