ASX small-cap shares are enjoying a nice run at the moment.

No doubt the prospect of interest rates peaking and even coming down this year has helped the cause.

This week DNR Capital portfolio manager Sam Tweedale named three small-cap stocks that his team is loving right now:

Sales, cash and expansion. What more could you want?

In a DNR video, Tweedale said that a big takeaway from last month’s reporting season was the bullishness for some consumer discretionary stocks.

“That’s an area we’ve been adding to in our emerging companies fund. It’s been a core overweight.

“We’ve seen some great opportunities to buy some good quality businesses where the market’s got some short-term concerns around the outlook.”

And the pick of the lot, which his team has been buying regularly over the past year, is Lovisa Holdings Ltd (ASX: LOV).

“I think the result really sort of put to bed some concerns there that the market had [with] sales more resilient than the market was expecting. 

“Also the margins came in better than expected, showing very good cost control, strong cash flow, strong balance sheet, and really brought the focus back onto the store rollout potential.”

The small cap on the comeback trail

After a pretty ordinary couple of years, 4WD accessories merchant ARB Corporation Ltd (ASX: ARB) had a turnaround reporting season.

“Again, that business is really benefiting from its strong market leadership,” said Tweedale.

“The company now has sales better than expected [and] a very strong order backlog.”

Similar to Lovisa, Tweedale felt margins reported better than expected, and ARB exercised decent pricing power and cost control.

“The company’s really benefiting from that fixed cost leverage, benefiting from the economies of scale and the efficiencies that they’re getting.”

Small-cap disruptors shining bright

Technology was another boom area to come out of earnings season, according to Tweedale.

“We’re seeing what’s happening overseas with the impact of AI and there’s some great companies here for investors to get exposure to with a lot of disruption happening.”

A great example of businesses cashing in on this structural change is Audinate Group Ltd (ASX: AD8).

“That company’s really disrupting the professional AV industry, helping them convert from analog to digital based signals over networks.

“And that company really is consolidating that market leadership position that they have. The result really highlighted that.”

Tweedale noted that Audinate now has almost 7 million devices in the real world with its networking protocol embedded.

“There’s an opportunity to leverage that install base with a software opportunity on top,” he said.

“We continue to like these businesses, which have a long runway for growth. They’re reinvesting a high return on invested capital, and we think that puts them in an attractive position, long-term, to deliver that capital growth for investors.”

The post 3 small-cap ASX shares with ‘long runways for growth’ appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to buy in 2024 and hold for the next 10 years
• 2 ‘very high-quality’ ASX retail shares with significant inside ownership
• Big returns could be coming for high-flying Lovisa shares
• Why these ASX 200 growth shares could be top buys now
• 2 ASX growth stocks I’d buy for rapidly rising profit

Motley Fool contributor Tony Yoo has positions in Audinate Group and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Audinate Group, and Lovisa. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended ARB Corporation and Lovisa. 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 want to grow your wealth, then buying and holding some high-quality ASX shares could be the way to do it.

That’s because by holding shares for a long period, it allows investors to benefit from the power of compounding to supercharge their returns.

Compounding is what happens when you earn returns on top of returns. It helps explain why earning a 10% return on $1,000 turns into $1,100 in one year but approximately $2,600 in ten years.

But which ASX shares could be good options right now? Here are three ASX shares to consider:

CSL Ltd (ASX: CSL)

As arguably the highest quality company trading on the Australian share market, this biotechnology giant could be a great option for buy and hold investors.

It certainly has been in the past. Despite a recent blip, this ASX share has delivered a 15.8% per annum return over the last decade. And thanks to this blip, investors can pick up its shares at an attractive price today.

UBS currently has a buy rating and $330.00 price target on its shares. This offers almost 17% upside for investors from current levels.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX share that could be a good buy and hold option is Domino’s. It is of course Australia’s leading pizza chain operator. In addition, the company has a growing network of stores across Asia and Europe.

It has been going through a tough period due to inflationary pressures and some poor choices from management. While this is disappointing, it could prove to be an excellent buying opportunity for patient investors.

Morgan Stanley believe this could be the case. It has an overweight rating and $68.00 price target on the ASX share. This suggests potential upside of over 55% for investors.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX share that could be a great buy and hold option is Lovisa. It is a fashion jewellery retailer with bold global expansion plans.

It is because of these plans that the team at Morgans thinks investors should be buying and holding the company’s shares. The broker has previously stated its belief that Lovisa “may prove to be one of the biggest success stories in Australian retail” and that “now is the time LOV steps up to become a global force.”

Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 8% from current levels, but greater gains could follow as its growth continues.

The post 3 ASX shares to buy in 2024 and hold for the next 10 years appeared first on The Motley Fool Australia.

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More reading

• 2 of the best ASX 50 shares to buy now
• These ASX 200 shares could rise 20% to 50%
• Here are the top 10 ASX 200 shares today
• 2 ASX shares that could help set you up for life
• Big returns could be coming for high-flying Lovisa shares

Motley Fool contributor James Mickleboro has positions in CSL, Domino’s Pizza Enterprises, and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Domino’s Pizza Enterprises, and Lovisa. The Motley Fool Australia has recommended CSL, Domino’s Pizza Enterprises, and Lovisa. 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 ASX is well known for its dividends, and of course, by extension, its dividend-paying shares. ASX shares have been incentivised to pay out high levels of fully franked dividend income to shareholders for decades now. That’s primarily thanks to a number of factors, most potently our unique system of franking,

That’s why we tend to see much higher yields from an ASX index fund compared to similar products covering international markets.

But there’s another rather unique feature of our share markets that international investors might find odd. That would be our companies’ propensity to pay biannual dividends.

In most other markets, including both the United States and the United Kingdom, quarterly dividend payments are the norm. But here on the ASX, we have twice as long between the metaphorical drinks. The vast majority of ASX dividend shares funding a dividend payment only every six months.

This means that whilst investor income is a little irregular, when the payments do arrive, it’s something of a cash deluge.

Luckily for ASX investors, one of those deluges just happens to be scheduled for this week.

The five-day period we are currently in the midst of will see a plethora of ASX dividend shares dole out their latest dividend payments. Most of these were announced during the February earnings season we’ve just gone through. A rough $19 billion in dividends is set to be showered on investors by Friday’s close of business.

Which ASX 200 shares are paying out dividends this week?

Here’s a non-exhaustive list of some of the major ASX 200 blue-chip shares that will pay out dividends over this trading week:

• Bendigo and Adelaide Bank Ltd (ASX: BEN)
• Altium Ltd (ASX: ALU)
• Mineral Resources Ltd (ASX: MIN)
• ASX Ltd (ASX: ASX)
• Fortescue Ltd (ASX: FMG)
• Insurance Australia Group Ltd (ASX: IAG)
• Santos Ltd (ASX: STO)
• Wesfarmers Ltd (ASX: WES)
• Ampol Ltd (ASX: ALD)
• Coles Group Ltd (ASX: COL)
• Beach Energy Ltd (ASX: BPT)
• Origin Energy Ltd (ASX: ORG)
• Commonwealth Bank of Australia (ASX: CBA)
• Telstra Group Ltd (ASX: TLS)
• BHP Group Ltd (ASX: BHP)
• Lottery Corp Ltd (ASX: TLC)
• Newmont Corporation (ASX: NEM)

This Thursday, 28 March, might well be the biggest payday on the ASX this dividend season. That day, we’ll see what could conceivably be a majority of all ASX investors receive some kind of dividend paycheque.

That’s the day that Beach Energy, Origin Energy, CBA, Telstra, BHP, Lottery Corp and Newmont will send out their latest shareholder payments.

So strap yourself in, and get yourself an umbrella, because some of the ASX’s favourite shares are about to make it rain.

The post $19 billion in ASX dividends is being paid out this week. Are you getting your share? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Shares vs. property: How to generate $500 passive income per month
• These 5 ASX 200 shares just hit new 52-week highs
• Why Telstra and these ASX 300 stocks just hit 52-week lows
• These 5 high-quality companies are now paying a better income than CBA shares

Motley Fool contributor Sebastian Bowen has positions in Newmont, Telstra Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Lottery, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank, Coles Group, Telstra Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There’s not much argument that the world’s hottest stock in the past year or so has been Nvidia Corp (NASDAQ: NVDA).

The shares for the US company have rocketed 539% since early January 2023, on the back of the hype around artificial intelligence (AI).

Funnily enough, Nvidia itself doesn’t produce any AI.

The Californian business makes computer chips that its customers need to power all the intensive computing needed to run intelligent algorithms.

In other words, Nvidia is selling the “picks and shovels” — or the tools — needed to make the coolest tech that everyone wants.

Now, if you feel like you missed the boat on Nvidia shares, you need not worry.

There are plenty of other companies that could benefit from the AI revolution in a similar way, even here in Australia.

The tech stock in ‘outstanding position’ to cash in on AI hype

One example looking like an excellent buy right now is NextDC Ltd (ASX: NXT).

As a data centre provider, the Australian company is even further up the supply chain than Nvidia. It’s providing the facilities to house the computers.

The NextDC share price has already doubled since the start of last year, but many professionals are predicting there is plenty more where that came from.

The recent half-year results were warmly received, with the stock hitting all-time highs.

Chief executive Craig Scroggie acknowledged the contribution artificial intelligence was making to the booming business.

“As demand continues to be bolstered by the broad adoption of new technologies such as generative AI, the business remains in an outstanding position to support customer growth requirements across the enterprise, government and hyperscale verticals.”

NextDC also has a second long-term tailwind that it’s riding on, in cloud computing.

All this has led to a remarkable 14 of 17 analysts naming the stock as a buy, according to broking platform CMC Invest.

Moomoo market strategist Jessica Amir last month named NextDC as one of the stocks she would buy and hold onto until the next leap year.

“Positioned to capture [and] generate AI opportunities,” she said.

“Half of its revenue is from NSW and ACT — huge potential to expanding capacity and geographically — and it’s doing that.”

The post Missed out on Nvidia? My best ASX tech stock to buy and hold appeared first on The Motley Fool Australia.

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More reading

• I’d buy these shares for Nvidia-like gains over the next decade
• 3 ASX stocks boasting better margins than Nvidia
• Why this ASX Nvidia partner has just been placed in a trading halt
• How to invest in artificial intelligence (AI) without buying Nvidia stock
• Guess which ASX tech stock is up 120% in three sessions thanks to Nvidia

Motley Fool contributor Tony Yoo 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 Nvidia. The Motley Fool Australia has recommended Nvidia. 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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• These 5 ASX 200 shares just hit new 52-week highs
• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today
• Premier Investments share price jumps 9% on results and demerger plans
• 5 things to watch on the ASX 200 on Tuesday

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders and Premier Investments. 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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Outgoing National Australia Bank Ltd (ASX: NAB) CEO Ross McEwan has an alarming prediction for Australia’s economy.

And whether you’re a renter or a homeowner, McEwan’s prediction will likely strike a chord.

With immigration levels in Australia surging post the COVID intake pause, and new housing construction slumping, rental vacancies are plummeting, and house prices are rising, despite elevated interest rates.

Why NAB’s prediction is gloomy

Speaking yesterday, McEwan flagged the housing crisis as a critical issue for Australia. And one that could hamstring economic growth.

Addressing the housing situation, McEwan said (quoted by The Sydney Morning Herald) “We just don’t have enough of it.”

This could become a big problem, is the NAB boss’ prediction.

“That will slow down the growth of this economy because if you don’t have houses for migrants to come in to, we’ll soon be cutting off the migration levels coming into the country.”

Indeed, the September quarter saw net overseas migration levels top 145,000 arrivals. That brought the annual increase to almost 550,000 new arrivals, well outpacing the number of new homes being built each year.

As dictated by the laws of supply and demand, this is seeing rents and property prices soar.

CoreLogic’s national Home Value Index (HVI) rose 8.1% in 2023. Most recently, the HVI increased another 0.6% in February, the strongest monthly gain since October.

Renters are doing it tough as well, with rental vacancies plunging to all-time lows of 0.7% in February.

According to McEwan, “If we can solve [the housing issue], we can keep this economy growing at a good pace and keep productivity lifting in the Australian marketplace, which will make us better as we export overseas as well.”

Failing that, NAB’s CEO has a rather dire prediction.

“If we don’t, well, I think Australia will slow down accordingly,” he said.

McEwan will step down as NAB’s CEO on 2 April. Andrew Irvine, NAB’s group executive business and private banking, will take over the reins.

The post NAB boss issues dire prediction for Aussie economy appeared first on The Motley Fool Australia.

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• Shares vs. property: How to generate $500 passive income per month
• If I’d put $5,000 in NAB shares at the start of 2024, here’s what I’d have now
• 4 ‘overheated’ ASX 200 shares to stay away from
• An 11% dividend yield from NAB shares? Here’s how these brave income investors achieved it!
• Why I might be selling my NAB stock in March

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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It has been another tough session for 29Metals Ltd (ASX: 29M) shares.

At one stage today, the ASX All Ords stock was down as much as 36% to 54 cents.

The copper miner’s shares have recovered a touch since then but remain down 25% to 40.5 cents in afternoon trade.

This latest decline means that 29Metals shares are now down 65% over the last 12 months.

Why is this ASX All Ords stock crashing?

Investors have been heading to the exits on Tuesday after the company revealed that it has suspended operations at Capricorn Copper.

This is a big blow given that the company has been working very hard to restart production at Capricorn Copper following extreme weather a year ago.

According to the release, the ASX All Ords stock made the move following an extended period of rainfall between late January and mid-March. This rainfall resulted in a steady accumulation of water in regulated structures on site to levels now similar to those following the March 2023 extreme weather event.

Management advised that with water at these levels, the dewatering of Esperanza South underground mine (ESS) cannot continue which, in turn, delays the restart of mining as part of the Capricorn Copper Recovery Plan.

The ASX All Ords stock’s managing director and CEO, Peter Albert, said:

The decision to suspend operations has not been taken lightly, particularly because of the impact it will have on our team at Capricorn Copper who have worked tirelessly following the extreme weather event in March 2023, as well as the local community, our contractors, and the businesses across the region and the state of Queensland that support the site.

Unfortunately, the combination of elevated water levels at the beginning of the wet season (as a result of the event a year ago) and the sustained rainfall since late January this year has more than offset our successes reducing water levels through mechanical evaporation and authorised releases of treated water within prescribed limits.

As things stand, the duration of the suspension is unknown. It will be dependent on a number of factors, including reducing the water levels held on site and securing the regulatory approvals required to set Capricorn Copper on a sustainable footing.

The post Why did this ASX All Ords stock just crash 36%? appeared first on The Motley Fool Australia.

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• Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling
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• One ASX mining sector at risk of more pain, and one ready to soar!

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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Passive income comes in from your investments while you sleep, and it’s arguably easier to generate if you buy ASX shares vs. property.

This is because investors can start small with ASX shares and buy a portfolio over time using savings rather than debt. The other advantage is there are no holding costs for shares investments whatsoever.

If you want to buy a real estate investment, odds are you’ll need a loan, and on top of that, there are thousands of dollars in holding costs, such as insurance, strata levies and council rates.

Let’s take a look at how it works.

Our aim will be to generate $500 passive income per month from investing in ASX shares vs. property.

Shares vs. property: $500 per month passive income

For property investors, achieving positive cash flow (rental income less costs) is really hard.

This is because property investment typically involves taking out a loan because home values are so high.

And with investment loan rates at about 7% these days, it’s very hard for an investor on a typical 80:20 loan-to-value ratio (LVR) loan to generate positive passive income at all.

The loan repayments alone typically exceed the rental income. This is why most of Australia’s 2.25 million landlords are negatively geared, according to the latest Australian Tax Office data.

A near-40% increase in weekly rents since August 2020 has certainly helped. But interest rates have gone up 13 times since May 2022 and this has had a greater impact for most investors.

Let’s look at a case study to see how we can achieve $500 per month in positive passive income (i.e., after costs) from real estate investment.

Case study: The cheap property

Buying property in a cheaper market is one strategy you could employ to generate positive passive income sooner.

The cheapest market in terms of median house prices is regional South Australia at $407,655, according to CoreLogic figures.

Regional South Australia has a gross rental yield of 5%. That’s $20,383 per year in rental income (check out the yields in other regional and metro markets here).

We’ll assume about $7,000 in ongoing holding costs per year covering council and water rates, insurance, repairs, property management fees, and a multitude of small costs like annual pest inspections.

In terms of home loan repayments, the lowest standard variable investment mortgage interest rate advertised on RateCity at the time of writing is 6.96% (on interest-only terms).

On an 80:20 loan (hence finance of $326,124), RateCity calculates the monthly loan repayments to be $1,892, or $22,704 per year. So, the loan repayments alone exceed your rental income.

Let’s halve that loan amount (hence finance of $163,062). The repayment is $946 per month or $11,352 per year. Now we have a chance at some positive passive income.

$20,383 per year in rent less $11,352 interest less $7,000 holding costs = $2,031 positive cash flow. But that’s only $169 per month in positive passive income, so well off our target of $500.

How about we halve that loan amount again (hence finance of $81,531). The repayment is $540 per month or $6,480 per year. Does that bring us close?

$20,383 per year in rent less $6,480 interest less $7,000 holding costs = $6,903 positive cash flow. So now we’re getting $575 per month of positive passive income.

But in order to achieve this, you’d need $326,124 in savings (and $81,531 in debt) to buy the asset in the first place.

It’s worth noting that interest payments and holding costs are generally tax deductible. Shares also deliver a tax benefit via franking. We’re excluding these tax benefits to keep our calculations simple.

The bottom line from this case study: To achieve $500 per month positive passive income, you’ll likely either need to buy a cheap investment property, or buy with less finance, or both.

Passive income via dividends

The average dividend yield for S&P/ASX 200 Index (ASX: XJO) shares is 4% per annum. But you can do better than that if you invest in some of the best income shares on the ASX.

Let’s take a look at a few examples.

ASX 200 share	Dividend yield
BHP Group Ltd (ASX: BHP)	5.42%
National Australia Bank Ltd (ASX: NAB)	4.86%
Westpac Banking Corp (ASX: WBC)	5.47%
ANZ Group Holdings Ltd (ASX: ANZ)	5.55%
Fortescue Ltd (ASX: FMG)	8.19%

If you were to buy Fortescue shares with the aim of generating $500 per month passive income (on average spread over two dividend payments per year), you’d need to have $73,260 in savings to buy the asset in the first place.

Shares vs. property

So, when it comes to shares vs. property and generating $500 per month in passive income, our case studies show that shares appear to be an easier investment strategy for achieving this particular goal.

The post Shares vs. property: How to generate $500 passive income per month appeared first on The Motley Fool Australia.

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More reading

• These 5 high-quality companies are now paying a better income than CBA shares
• Forget term deposits and buy these ASX dividend shares
• Here are the top 10 ASX 200 shares today
• Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher
• Fortescue share price leaps 5% as electric machinery makes a milestone

Motley Fool contributor Bronwyn Allen has positions in Anz Group and BHP Group. 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’s been a fairly lacklustre day for the S&P/ASX 200 Index (ASX: XJO), as well as many ASX 200 shares, so far this Tuesday. At the time of writing, the ASX 200 has retreated by 0.13%, leaving the index at just over 7,800 points.

But even though the broader market is suffering today, we are still seeing several ASX 200 shares hit new 52-week highs.

Let’s check them out.

5 ASX 200 shares smashing new 52-week highs today

First up is ASX and British banking stock Virgin Money UK plc (ASX: VUK). Virgin Money shares are enjoying a 0.24% tick upwards at present to $4.11 a share, which happens to be this bank’s new 52-week high for the past 12 months. It’s also the highest that Virgin Money shares have traded at since 2018.

This company has been on a rocket ship of late, thanks to a generous takeover offer of approximately $4.25 a share, which looks like it may go ahead soon.

Next up we have ASX 200 oil stock Beach Energy Ltd (ASX: BPT). Beach shares have enjoyed a huge 4.73% rise today and are presently sitting at $1.82 a pop. But earlier this morning, we saw this company get up to a high of $1.84, which is the new 12-month benchmark for Beach.

This may have something to do with a positive broker note out on Beach today.  As my Fool colleague covered earlier, ASX broker Morgans has given the company an add rating, alongside a 1-month share price target of $2.15.

NRW Holdings Ltd (ASX: NWH) is another ASX 200 share worth mentioning. NRW shares have risen a healthy 1.77% so far today up to $2.88 a share, which is also the contract services company’s fresh new high for the last year.

There’s been nothing out of the company itself that might explain this new high today. However, NRW shares traded ex-dividend yesterday, so this could just be an enthusiastic rebound from that stock price dip.

Chemicals and clothes

Next on the 52-week train today is ASX 200 chemical and explosives manufacturer Orica Ltd (ASX: ORI). Orica shares are also having a pleasant day, with the company currently enjoying a 1.86% boost up to $18.04 a share. That comes after Orica hit $18.05 a share this afternoon, which, you guessed it, is a new 52-week high.

This might be related to the recent Orica share purchase plan, which has just wrapped up. As we covered last month, the company is raising $465 million to help purchase sodium cyanide manufacturer Cyanco Intermediate 4 Corp. ASX filings today show several management figures participating in the share purchase plan. This could be giving Orica shares a boost too.

Finally, let’s check out ASX 200 retail stock Premier Investments Limited (ASX: PMV). Premier shares are up a rosy 3.88% right now at $31.80 each. But this is after the company spiked to $33.51 a share this morning just after open – the new 52-week high for Premier.

This seems to be a direct result of the company’s earnings results and demerger plans that were announced this morning. As we went through, these had Premier reveal slight drops in sales, earnings and profits.

But investors seem excited about the plans to spin off Premier’s star performers Smiggle and Peter Alexander into separate entities in 2025.

The post These 5 ASX 200 shares just hit new 52-week highs appeared first on The Motley Fool Australia.

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More reading

• Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today
• Premier Investments share price jumps 9% on results and demerger plans
• 5 things to watch on the ASX 200 on Tuesday
• Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today
• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. 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 Australian share market has been a strong performer over the last 12 months.

During this time, it has climbed a solid 12%. And that’s before dividends, which contribute a further 4% to the total market return.

Unfortunately, not all shares have fared as well as the market.

For example, the three ASX 300 stocks listed below have hit 52-week lows this week. Here’s what you need to know:

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price dropped to a 52-week low of $5.07 this morning. This stretches its 12-month decline to a disappointing 22%.

While today’s decline has been driven by the toll road operator’s shares going ex-dividend this morning, the rest of the decline can be attributed to its soft performance in FY 2023 and tax changes in France.

Commenting on the latter, the company said:

It is extremely disappointing that the French Government introduced this new tax. We, along with our partners at APRR, are committed to using all appropriate means and avenues to assert APRR’s legal and contractual rights to ensure that the concession contracts are respected, and their rights are protected.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price started the day at a 52-week low of 15.5 cents before edging higher.

Investors have been selling this ASX 300 lithium stock due to its decision to suspend its operations in response to weak lithium prices.

A recent note out of Goldman Sachs demonstrates just why this is a big red flag for investors. Goldman expects Core Lithium to go from estimated revenue of $178 million in FY 2024 to just $18 million in FY 2025 (and $34 million in FY 2026).

Core Lithium’s shares are down 80% over the last 12 month.

Telstra Group Ltd (ASX: TLS)

The Telstra share price has dropped to a 52-week low of $3.73 on Tuesday. This means the telco giant’s shares are now down 16% from their 52-week high.

This decline appears to have been driven largely by investors de-rating the ASX 300 stock in response to rising interest rates.

Telstra is often regarded as a bond proxy. Unfortunately, this means that when bond yields widen, Telstra’s shares lose their allure with investors. The only way for them to get it back is to trade on lower multiples that offer larger potential dividend yields to make it a more favourable option to bond yields.

The good news is that with interest rates tipped to fall later this year, it may not be long until Telstra’s shares gain some new admirers.

Goldman Sachs is likely to see this weakness as a buying opportunity. It has a buy rating and $4.55 price target on its shares.

The post Why Telstra and these ASX 300 stocks just hit 52-week lows appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling
• Telstra is paying 18 cents per share in dividends: Time to buy the stock?
• 3 reasons to sell Core Lithium shares
• 3 high-quality ASX retirement shares to buy this week
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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