Macquarie Group Ltd (ASX: MQG) is a rather unique ASX 200 share. It’s often called the ASX’s ‘fifth bank’ stock for one. That’s despite Macquarie having a completely different business model than other members of the big four banks. It’s also colloquially known as the ‘millionaire’s factory’.

As most Australian investors would know, ASX bank stocks are well known for their fat — and usually fully franked — dividends.

It’s not uncommon to see the likes of Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) trade on dividend yields between 4% and 7% at any given time (lately under 4% in CBA’s case).

In most ASX bank cases, these dividends almost always come with full franking credits attached, too. The notable exception is ANZ, which seems to have recently transitioned to paying only partially franked payouts.

So let’s talk about Macquarie shares and whether ASX investors can expect a decent dividend from an investment in the ASX’s ‘fifth bank’.

How much in dividends from Macquarie shares?

The Macquarie share price closed yesterday at $191.97, and right off the bat, we can see it is trading on a trailing dividend yield of 3.33%.

This dividend yield comes from Macquarie’s latest two dividend payments. The first is the interim dividend of $2.55 per share that investors received back in December. The second is the final dividend of $3.85 per share that shareholders are set to bag on 2 July in just over a month’s time.

Both of these payments came (or will come) partially franked at 40%. As is the norm for Macquarie that we touched on earlier.

Unfortunately for investors, these dividends represent a cut on what investors enjoyed in 2022 and 2023.

Macquarie’s last final payment (that investors received in July last year) was worth $4.50 per share. December 2022’s interim dividend came in at $3 per share. Both of these payouts were franked at 40% as well.

If Macquarie kept its payouts at the previous year’s levels over the past 12 months, its shares would sport a yield of 3.91% today.

Growth vs income

Even so, we can conclude that Macquarie shares, whilst offering decent income, don’t offer the same kind of fat-paycheque potential as its big four peers do today. That’s with the possible exception of CBA.

Saying that, though, Macquarie has never been a divided beast. As my Fool colleague Bronwyn masterfully laid out last week, Macquarie’s returns (which are substantial) have historically come from capital growth rather than dividend income.

But Macquarie investors are the ones that have had the last laugh. As we covered then, Macquarie shares have delivered more than twice the overall returns (dividends plus growth) of CBA over the past ten years. They have also roughly quadrupled those of the worst-performing big four banks over this period – ANZ.

We can perhaps conclude that dividends aren’t everything. Even for an ASX bank share.

The post Do Macquarie shares pay a decent ASX dividend? appeared first on The Motley Fool Australia.

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• Planning your retirement? Here are the most popular investments outside superannuation
• Only 1 ASX 200 bank share delivers more capital growth than dividends. Which bank? (Clue: Not CBA)
• 3 top ASX 300 dividend shares to buy now for $3,000 a month in passive income
• One ASX stock to buy and one to sell
• Are CBA share buyers getting the highest growth in return for being the most expensive?

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Financial advisory company Findex has five recommendations for Gen Z Australians to help them build wealth.

The recommendations follow a survey conducted by Findex that found the majority of Gen Zs consider bank savings the most important wealth-building investment.

Gen Zs were born between 1996 and 2010. That means the eldest of this cohort is 28-years-old and the youngest is 14-years-old. (The Findex survey was limited to Australians aged 18-64 years).

About 38% of Gen Z respondents nominated bank savings as their first choice for building wealth. This was followed by property at 25%, superannuation at 13%, and exchange-traded funds (ETFs) at 7%.

5 tips for Gen Zs to build wealth

Findex recommends the following key investment actions for Gen Zs to ensure a good retirement.

Assess your risk appetite and investment diversification

Exploring options within superannuation that align with a longer investment timeline can enhance growth. Findex says superannuation typically defaults to ‘balanced’ options, so younger generations might benefit from ‘growth’ strategies, aiming to optimise fund performance over time.  

Each superannuation fund offers a variety of strategies to suit customers based on their age and risk profile. Young investors often prefer growth strategies because they have time on their side. Therefore, they can tolerate higher risk for higher reward.

Growth funds are mainly invested in ASX shares and international stocks. As we recently reported, data and analytics provider Chant West says ‘all growth’ superannuation funds are performing best in the 2024 financial year to date, with 9.8% returns so far.

Early engagement with superannuation to build wealth in retirement

Start contributing to superannuation as early as possible, says Findex. Even modest contributions can grow significantly over time due to the power of compounding interest.  

Findex co-CEO Tony Roussos encourages Gen Z Australians to, “Take advantage of the time you have on hand by exploring ways to build your balance so that your super works hard for you in retirement.”

The Australian Government introduced superannuation in 1992. The Superannuation Guarantee paid by employers has risen from 3% of wages in 1992 to 11% today. It goes up to 11.5% from 1 July this year.

Financial literacy and digital tools

Leverage digital platforms like Young Money from the Findex Community Fund for financial education, and apps to help with budgeting and investment tracking. Findex says understanding the basics of superannuation, investment strategies, and tax advantages is crucial to building wealth.  

Talk to your family

Findex says parents and grandparents can provide a guiding hand. Nearly half (47%) of Gen Z say they better understand how to manage and reduce debt through financial conversations with their family.

Leverage family advice relationships

Financial advice may not be affordable at this age. If your family uses a financial advisor, see if you can sit in on meetings and start learning about the ways they can assist you in building wealth.

The post Gen Z: 5 tips to help build your wealth appeared first on The Motley Fool Australia.

More reading

• How much passive income would a $10,000 investment in CSL shares generate?
• Do Macquarie shares pay a decent ASX dividend?
• Holidays on hold: How will this affect ASX travel shares?
• 5 ASX ETFs that could be great long term buys
• Why Nvidia stock popped on Tuesday

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

New research by Finder shows 37% of Aussies have put holidays on hold due to rising cost-of-living pressures. Could this affect ASX travel shares?

Here, I’ll examine the latest broker ratings, share price targets and commentary on three of the most popular ASX travel shares.

Qantas Airways Limited (ASX: QAN)

Goldman Sachs has a buy rating on Qantas with a 12-month share price target of $8.05.

The ASX airline share closed at $6.07 on Tuesday, down 0.82% for the day and down 5.45% over 12 months.

Goldman analysts Niraj Shah and Joseph Kusia expect the airline’s traffic capacity to return to 95% of pre-COVID levels by FY24. They also expect its earnings capacity to exceed pre-COVID levels by about 52%.

The analysts said the ASX travel share was undervalued at today’s price level, commenting:

QAN’s current market capitalisation and enterprise value are 10% below and 11% below pre-COVID levels. As such, we believe QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity.

We continue to see upside associated with substantially improved MT earnings capacity. 

Flight Centre Travel Group Ltd (ASX: FLT)

Goldman has a sell rating on Flight Centre with a 12-month share price target of $18.30.

Flight Centre shares closed at $19.40 on Tuesday, down 2.02% for the day and down 8.4% over 12 months.

Goldman analysts Lisa Deng and James Leigh said:

FLT provided its trading update for 3Q24 and reiterated group underlying PBT guidance of A$300-340mn for FY24 (A$270 – A$310mn excluding Convertible Note amortisation).

While our calculation of implied 3Q24 numbers suggests that there is slightly below-expectations run-rate in Corporate, this will likely be offset by above-expectations run-rate in Leisure.

Net net, we continue to see recovery and competitive risks in Corporate per our downgrade in March 2024 and our thesis remains unchanged.

The team at Morgans has a different view to Goldman Sachs on this ASX travel share. They have an add rating on Flight Centre shares with a 12-month price target of $27.27.

Morgans said Flight Centre has the greatest risk/reward profile of the ASX travel shares under its coverage.

The broker explained:

The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25.

With greater confidence in the travel recovery and the benefits of Flight Centre’s transformed business model already emerging, we think the company is well placed over coming years.

Webjet Ltd (ASX: WEB)

Morgans has an add rating on Webjet shares with a 12-month price target of $10.33.

The ASX travel share finished the session yesterday at $8.65, down 1.48% for the day and up 15.95% over 12 months.

Morgans said the online travel booking company has “significant market share still up for grabs” within its WebBeds B2B business and is well positioned for the future.

The post Holidays on hold: How will this affect ASX travel shares? appeared first on The Motley Fool Australia.

More reading

• 3 things about Qantas stock every smart investor knows
• 2 of the best ASX 200 blue chip shares that money can buy
• These are the 10 most shorted ASX shares
• 4 super ASX 200 blue chip shares to buy
• Here are the top 10 ASX 200 shares today

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

Are you looking for some ASX exchange traded funds (ETFs) to buy and hold?

If you are, then it could be worth checking out the five high-quality ASX ETFs listed below.

Let’s see what they offer investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF that could be a top buy and hold option is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors access to the best tech stocks in the Asian region but excluding Japan. Many of these are the region’s equivalents of the West’s biggest and best tech giants. Among its holdings are e-commerce leader Alibaba, search engine giant Baidu, iPhone manufacturer Taiwan Semiconductor Manufacturing Company, and WeChat owner Tencent.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ASX ETF for investors to look at is the iShares Global Consumer Staples ETF. It could be a good option for investors that have a low tolerance for risk. That’s because this fund gives investors access to many of the world’s largest consumer staples companies. These are companies that usually perform well whatever is happening in the global economy. Among its holdings are behemoths such as Coca-Cola, Nestle, and Unilever.

iShares S&P 500 ETF (ASX: IVV)

A third ASX ETF for investors to look at is the iShares S&P 500 ETF. It could be a good buy and hold option given the sheer quality among its holdings. These are the 500 largest companies on Wall Street. This means that you will be investing in a diverse group of shares from a range of different sectors, including countless household names such as Microsoft, Exxon Mobil, Johnson & Johnson, and Visa.

Vanguard Australian Shares Index ETF (ASX: VAS)

Another ASX ETF that could be a great buy and hold option is the Vanguard Australian Shares Index ETF. This fund aims to track the local ASX 300 index. It is home to Australia’s leading 300 listed companies. This includes shares such as BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Northern Star Resources Ltd (ASX: NST), and Wesfarmers Ltd (ASX: WES).

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF to consider for a buy and hold investment is the Vanguard MSCI Index International Shares ETF. This very popular ETF gives investors access to a massive ~1,500 of the world’s largest listed companies through a single investment. This could make it a great option if you’re looking to diversify your portfolio. It also gives investors exposure to global economic growth.

The post 5 ASX ETFs that could be great long term buys 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 positions in and has recommended Baidu, Macquarie Group, Microsoft, Taiwan Semiconductor Manufacturing, Tencent, Visa, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group, Johnson & Johnson, Nestlé, and Unilever Plc and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Macquarie Group, Wesfarmers, and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf, Microsoft, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Nvidia (NASDAQ: NVDA) surged higher on Tuesday, jumping as much as 5.6%. As of 11:54 a.m. ET, the stock was still up 5.1%.

The catalyst that sent the chipmaker and artificial intelligence (AI) specialist higher was word that another AI start-up had raised billions of dollars, which is likely good news for Nvidia.

Heavy spending on AI

xAI, the AI start-up founded by Elon Musk, announced on Sunday it had raised $6 billion in its latest funding round. The company said in a blog post that the influx of cash would be used “to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.” In a subsequent post on X (formerly Twitter), Musk said the series B funding round valued xAI at $18 billion.

The company, which was founded last July, is the creator of Grok, the generative AI chatbot that competes with OpenAI’s ChatGPT. Grok is available on X and is “modeled after the Hitchhiker’s Guide to the Galaxy, so intended to answer almost anything and, far harder, even suggest what questions to ask!”

The principal beneficiary

So what does all this have to do with Nvidia? It’s a signal that there’s still plenty of appetite for continued investment in AI. Investors have been worried that the demand for AI could fall off, but this helps illustrate that’s not the case.

Additionally, since xAI is working to rival ChatGPT, the underlying large language models will require plenty of computational horsepower to bring Grok up to par. Since the company isn’t developing AI chips of its own, the vast majority of the processors will likely come courtesy of Nvidia — the industry leader — which will directly boost the company’s sales.

This comes on the heels of Nvidia’s blockbuster financial report and upcoming 10-for-1 stock split. For the fourth consecutive quarter, the company delivered triple-digit revenue and profit gains and is guiding for more. This helps illustrate the ongoing demand for AI.

Furthermore, at roughly 38 times forward earnings, Nvidia stock is still reasonably priced when viewed through the lens of its ongoing opportunity.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia stock popped on Tuesday appeared first on The Motley Fool Australia.

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• Buy these ASX shares and get 5% and 6.5% dividend yields

Danny Vena has positions in Nvidia. 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.

Deciding which ASX dividend shares to buy can be a gruelling process.

Luckily for income investors, analysts have done a lot of the hard work for you and picked out two they think are buys.

Here’s what they are saying about these dividend shares:

Acrow Ltd (ASX: ACF)

The team at Morgans thinks that Acrow could be an ASX dividend share to buy. It provides the construction sector with engineered formwork, scaffolding, and screen systems solutions.

Morgans has an add rating and $1.43 price target on its shares. The broker likes the company due to its positive outlook, attractive valuation, and generous forecast dividend yield. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong and recent acquisitions will provide new avenues for growth, especially in the more stable and less cyclical Industrial Services segment. We believe the valuation remains attractive (~7.5x FY25F PE and ~5.5% yield) with potential positive catalysts from further meaningful contract wins.

Morgans is forecasting fully franked dividends of 5.5 cents per share in FY 2024 and then 5.9 cents per share in FY 2025. Based on the current Acrow share price of $1.16, this will mean dividend yields of 4.75% and 5%, respectively.

GUD Holdings Limited (ASX: GUD)

Analysts at Bell Potter think that this auto parts company would be a good ASX dividend share to buy.

The broker has the company on its favoured list with a buy rating and $12.80 price target on its shares. Its analysts believe the company is well-positioned to benefit from supply constraints and the resilience of the legacy auto business. It commented:

The company recently reported an impressive FY23 result with NPAT of $119 million beating Citi forecast by 3% and consensus by 14%. This was driven by the better-than-expected APG performance (the highest-quality business in GUD, in our view) and the improvement in gearing. We see GUD as well-placed to benefit from the ongoing improvement in OEM supply constraints into FY24. Overall, our Buy rating for GUD is predicated on the relative resilience of the legacy auto business and improving momentum in new car sales, which should be favourable for APG’s earnings.

As for income, Bell Potter is forecasting fully franked dividends per share of 38.5 cents in FY 2024 and then 40.4 cents in FY 2025. Based on the current GUD share price of $10.57, this equates to dividend yields of 3.65% and 3.8%, respectively.

The post Analysts name 2 ASX dividend shares to buy now 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 recommended Acrow. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a volatile 12 months for Pilbara Minerals Ltd (ASX: PLS) shares.

During this time, the lithium miner’s shares have been as high as $5.43 and as low as $3.10. From top to bottom, that’s a decline of approximately 43%. This has been driven by a sharp decline in lithium prices.

The Pilbara Minerals share price is currently trading closer to its low than its high at $3.89. Does this make it a good time to buy? Or could its shares go lower from here? Let’s see what analysts are forecasting.

Where next for Pilbara Minerals shares?

Unfortunately, the general consensus is that the company’s shares are heading lower from here.

For example, UBS and Citi have sell ratings on Pilbara Minerals’ shares with price targets of $2.70 and $3.60, respectively. This implies potential downside of 31% and 7.5% for investors over the next 12 months.

Over at Morgan Stanley, its analysts have an underweight rating and $3.35 price target on its shares. This suggests that they could fall 14% from current levels.

And finally, analysts at Goldman Sachs are arguably among the biggest bears out there. The broker currently has a sell rating and $2.80 price target on its shares.

It believes its shares are expensive despite pulling back materially from recent highs. Goldman commented:

We see near-term FCF continuing to decline on lithium prices and increasing growth spend (c. -10% FCF yield in FY24E, and c.0% in FY25-27E). Overall, we see PLS spending ~A$0.85bn on P1400, taking total capex spend from FY24E to FY28E on current and P1400 expansions to ~A$3bn, ~A$0.9bn ahead of consensus which already prices further expansion. Furthermore, we see PLS’ net cash declining to ~A$0.8-0.9bn (though still a relatively strong position vs. some peers and defensive into a declining lithium price), where with the stock trading at ~1.2x NAV (peer average ~1.05x), or pricing ~US$1,300/t spodumene (including a nominal value of A$1.1bn for growth) vs. peers at ~US$1,210/t (lithium pure-plays ~US$1,110/t; GSe US$1,150/t LT real), we see PLS as relatively expensive on fundamentals.

It’s not all doom and gloom, though. The team at Macquarie is a little more positive on Pilbara Minerals’ shares. The broker currently has a neutral rating on them with a price target of $4.20. This implies potential upside of 8% for investors.

Time will tell which broker makes the right call. Though, it seems quite likely that the direction its shares take will be dictated less by broker price targets and more by lithium prices. If there is a surprise rebound in prices, it could put a rocket under lithium stocks.

The post Higher or lower: Where next for Pilbara Minerals shares? appeared first on The Motley Fool Australia.

More reading

• Here is the latest lithium price forecast through to 2027
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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 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.

Pro Medicus Limited (ASX: PME) shares overcame the market weakness on Tuesday and pushed higher.

The ASX 200 tech stock rose 1% to end the day at $114.31.

Why did this ASX 200 tech stock rise?

Investors were bidding the health imaging technology company’s shares higher after it announced five new contracts with a combined minimum contract value of $45 million.

These contracts will be fully cloud deployed and are expected to be completed within the next six months.

The contracts are as follows:

• A $9.5 million, five-year contract with Consulting Radiology, a private radiology group in Minnesota.
• An $11.5 million, seven-year contract with Nationwide Children’s Hospital. It is a leading paediatric hospital in Columbus, Ohio.
• A $6.5 million, five-year contract with Nicklaus Childrens Hospital, a leading paediatric hospital in Miami, Florida.
• A $9 million, eight-year contract with Moffitt Cancer Center in Tampa, Florida.
• An $8.5 million, five-year contract with US Radiology Specialists. It is a partnership of physician owned radiology practices.

These contract wins bring the company’s minimum total contract value (TCV) for new sales this financial year to $245 million.

Broker reaction

This morning, analysts at Goldman Sachs have responded very positively to the news.

According to the note, the broker has reiterated its buy rating with a slightly improved price target of $136.00.

Based on where the ASX 200 tech stock currently trades, this implies potential upside of 19% for investors over the next 12 months.

Commenting on the contract wins, the broker said:

PME continues to demonstrate Visage’s compelling product offering and value proposition to a broadening range of customers across different sizes and specialties (i.e. children’s hospitals and private radiology groups where the market is evolving, with more tenders coming to market). This provides a platform for further growth (direct validation & referral effect), supporting a positive TAM runway for Visage which currently commands c.7% market share of US imaging volumes (GSe +13% in FY30E) – a key component of our Buy Initiation in April; (2) All contracts to be fully cloud-based, and we believe Visage is the only solution available that can be fully cloud-deployed at this scale, and hence represents a tangible competitive advantage, as highlighted today; and (3) the announced contract sizes contain no direct component from either AI or Cardiology, which should present upside optionality through the mid-term.

‘Industry leading’

All in all, this news reinforces the broker’s bullish view on the ASX 200 tech stock and its “industry leading” technology. It concludes:

In our view, PME is well positioned into FY25 given a full year benefit of some large and high profile contracts, in addition to the accelerating frequency and size of new contract wins. We see PME’s software Visage 7 as an industry leading solution with two distinct advantages relative to peers — speed and cloud capabilities — that have influenced the choice of PACS vendor. Given this, PME is benefiting from an industry network effect, and we forecast share gains to 13% in FY30E (c.7% today) as more hospitals move to modern systems. PME is expanding into adjacent solutions including AI and Cardiology which could provide significant upside given we believe PME is the incumbent technology leader in radiology, and is well-placed to take share in both markets.

The post Why you should buy this ‘industry leading’ ASX 200 tech stock appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.