Passive income is one of the greatest benefits of investing because it is generated while you sleep.

All you need to do is hold the asset and the passive income will simply flow into your bank account.

How lovely.

But how much passive income will you get by investing in ASX shares vs. property?

Well, this is going to be fun.

Let’s compare the current gross rental property yields on offer around the country vs. the dividend yields being paid by some of the best income shares on the ASX.

Ready?

Shares vs. property passive income comparisons

Let’s start with the passive income on offer from investment property around Australia today.

The first thing to note is that rents have skyrocketed by an average of 9.1% per year for the past three calendar years, according to CoreLogic data.

That means landlords have received a near-30% boost to their passive income over this short period.

CoreLogic’s national median rent reached $601 per week in December. This equates to a median annual passive income of $31,252 a year.

Back in August 2020, the median rent was $437 per week. So, landlords are now receiving $8,000 more in median passive income today on the same unimproved asset.

Several factors have contributed to this unusually large rise in rents.

Among them are reduced household sizes (i.e., fewer people per dwelling) and big population growth driven by migration.

There was also a notable decline in investor purchases and a rise in the number of investors selling for a period last year.

Longer-term factors are also in the mix, such as a reduction in social housing supply and wages growth not keeping up with rental growth.

So, here’s the state of play on passive income via shares vs. property.

Rental returns of houses

Here are the current gross rental yields of houses across the country.

Market	Gross yield	Market	Gross yield
Sydney	2.7%	Regional NSW	4%
Melbourne	3.1%	Regional VIC	3.9%
Brisbane	3.6%	Regional QLD	4.5%
Adelaide	3.7%	Regional SA	5%
Perth	4.4%	Regional WA	6.2%
Hobart	4.2%	Regional TAS	4.5%
Darwin	6.1%	Regional NT	6.8%
Canberra	3.7%

Rental returns of apartments

Here are the current gross rental yields of apartments across Australia.

Market	Gross yield	Market	Gross yield
Sydney	4%	Regional NSW	4.4%
Melbourne	4.5%	Regional VIC	4.7%
Brisbane	5.1%	Regional QLD	4.9%
Adelaide	5%	Regional SA	5.1%
Perth	6.2%	Regional WA	8.7%
Hobart	4.6%	Regional TAS	4.9%
Darwin	7.4%	Regional NT	n/a
Canberra	5.1%

Passive income via dividends

As you can see above, rental yields are generally pretty strong. But remember these are gross yields, which means all the holding costs associated with property investment have not been deducted.

That’s a key difference between shares vs. property — there are no ongoing holding costs with stocks.

Now, let’s discuss dividend yields and compare them to the rental yields above.

The average dividend yield for S&P/ASX 200 Index (ASX: XJO) shares is 4% per annum.

If you only own ASX 200 stocks with 100% franking, then your average gross yield goes up to 5.7% per annum.

That’s pretty comparable with many of the property markets showcased above, especially apartments.

But some ASX shares pay a lot more.

Let’s take a look at the dividend yields on the top 10 ASX 200 stocks.

ASX 200 share ranked by market capitalisation	Dividend yield
BHP Group Ltd (ASX: BHP)	5.7%
Commonwealth Bank of Australia (ASX: CBA)	3.84%
CSL Ltd (ASX: CSL)	1.44%
National Australia Bank Ltd (ASX: NAB)	4.94%
Westpac Banking Corp (ASX: WBC)	5.33%
ANZ Group Holdings Ltd (ASX: ANZ)	5.53%
Fortescue Ltd (ASX: FMG)	8.64%
Macquarie Group Ltd (ASX: MQG)	3.17%
Wesfarmers Ltd (ASX: WES)	2.95%
Goodman Group (ASX: GMG)	1%

The post How much passive income will I get from shares vs. property? appeared first on The Motley Fool Australia.

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More reading

• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today
• Should you wait for a dip to buy ASX 200 bank shares?
• If I’d put $5,000 in Westpac shares at the start of 2024, here’s what I’d have now
• Why is the BHP share price getting hammered on Tuesday?
• Here’s the NAB dividend forecast through to 2026

Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, CSL, Commonwealth Bank Of Australia, Goodman Group, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended CSL and Goodman 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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The Appen Ltd (ASX: APX) share price skyrocketed by 41% on Tuesday before the ASX announced a pause in trading pending an announcement just before 1pm.

Appen shares reached an intraday peak of $1.17, then fell back to $1.08 before the pause took effect.

That intraday peak was a big jump on yesterday’s closing Appen share price of 83 cents.

It’s also the first time the stock has traded above $1 since October last year.

There has been no official news from Appen to explain the share price surge earlier today.

However, ASX tech shares are currently the second-best performers among the 11 market sectors, so perhaps Appen is riding a bit of sector optimism today.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 0.6%.

The pause in trading was announced by the ASX compliance department. This hints at the possibility that the announcement to follow will be a ‘please explain’ from the ASX to Appen.

While we’re waiting for that ASX announcement, let’s review the latest news from Appen.

Latest news: FY23 results

Appen released its FY23 full-year financial results and an investor presentation on 27 February.

Investors were pretty pleased with the numbers, with the Appen share price rising 16.7% on the day.

As my colleague Bernd reported, Appen revealed a near-30% year-over-year decline in revenue driven by a lower contribution from global services.

New markets revenue fell 7.8% due to a 46.5% decline in Appen’s global product. And there was a $69.2 million non-cash impairment charge.

The good news is that Appen resized its cost base and worked out how to save $60 million in annualised costs from here.

The company also expects to cut costs by a further $13.5 million this year. However, these cuts are only the result of Alphabet Inc terminating its global inbound services contract.

That deal was worth $82.8 million in revenue for Appen in 2023, so it was a big blow to lose the Google parent as a customer.

The contract termination was announced in January and becomes effective next week.

Following Appen’s FY23 results, the consensus recommendation on Appen shares fell from a hold to a moderate sell on CommSec.

What’s next for the Appen share price?

Volatility is typically the name of the game with small caps.

The battered company is also in transformation mode, so we’ll just need to see how that goes.

It’s possible that the rise of artificial intelligence may become a catalyst for taking the Appen share price higher in the coming years.

Appen is hoping to return to cash EBITDA profitability in FY24.

However, it says this “will largely depend on revenue growth from our non-global customers, the timing of which remains uncertain”.

The company says it is now working with 22 large language model builders globally to support the development of generative AI foundation models.

According to the latest S&P DJI quarterly rebalance, Appen will drop out of the ASX 300 on 18 March.

The post Big news about to drop: Appen share price put on ice following 41% surge appeared first on The Motley Fool Australia.

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More reading

• Appen share price tumbles amid ongoing losses for the ASX AI stock
• Guess which beaten-up ASX 300 tech stock is rocketing 15% today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Appen. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is fighting back from yesterday’s selloff and is on course to record a small gain. In afternoon trade, the benchmark index is up 0.15% to 7,715.7 points.

Four ASX shares that are holding back the market today are listed below. Here’s why they are dropping:

BHP Group Ltd (ASX: BHP)

The BHP share price is down 1% to $42.48. Investors have been selling BHP and other miners today following a sharp pullback in the iron ore price overnight. Concerns over demand from China weighed on the price of the steel making ingredient.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 2.5% to 36 cents. This may have been driven by profit taking from day traders following a series of strong gains from the semiconductor company’s shares. Brainchip’s shares remain up 40% since this time last month despite a recent pullback.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down 11% to 10.2 cents. This morning, the struggling lithium developer announced the completion of an institutional placement. It has received firm commitments to raise $15 million at 7 cents per new share. This represents a 39.1% discount to where its shares last traded. These funds will be used for working capital purposes while it aims to complete its ongoing strategic partnership process.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is down 7% to $5.60. This has been driven by the coal miner’s shares going ex-dividend this morning for its latest payout. Eligible shareholders can now look forward to receiving its fully franked 32.5 cents per share final dividend next month on 30 April. This equates to a 5.4% dividend yield based on its last close price.

The post Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price getting hammered on Tuesday?
• Why are Lake Resources shares crashing 20% on Tuesday?
• Buy BHP and these ASX dividend shares
• 5 things to watch on the ASX 200 on Tuesday
• Why are short sellers shifting into ASX blue chips and out of lithium losers?

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

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The All Ordinaries (ASX: XAO) stock Adairs Ltd (ASX: ADH) has seen its share price jump 5% after the chair’s resignation. This gain meant the company reached a 52-week high.

It has been an extraordinary recovery for the ASX retail share in recent times, doubling from where it was on 27 October 2023.

Chair resignation

The operator of Adairs, Mocka and Focus on Furniture has announced that non-executive chair Brett Chenoweth has tendered his resignation from the board, effective 22 March 2024, which is less than two weeks away.

According to Adairs, Chenoweth explained that his decision “reflects his desire to concentrate on his other corporate responsibilities, with particular focus on chair and board roles across the digital infrastructure and media sectors.”

Management comments

The Adairs CEO Mark Ronan said:

On behalf of the board, I would like to thank Brett for his substantial contribution to Adairs over the past 4 years. He has been a pleasure to work with and a valuable partner to both myself and the organisation during his time as chair.

Who will be the new chair of the ASX All Ords stock?

Adairs said it will commence a search for a new chair.

In the meantime, non-executive director Kate Spargo will serve as the interim non-executive chair. Spargo has been an independent company director for 20 years across a variety of sectors including infrastructure, construction and engineering, energy, financial services, building product manufacturing and health services.

Spargo has been a director of Adairs since May 2015. She is also a director of Sigma Healthcare Ltd (ASX: SIG) and Sonic Healthcare Ltd (ASX: SHL).

Recent trading

The latest update from the ASX All Ords stock was with the FY24 first-half result where it said sales for weeks 27 to 34 were down 9.6% for the overall business. Looking at the individual segments, Mocka sales were up 4%, Focus on Furniture sales were down 14.1% and Adairs sales were down 9.5%.

Adairs said customer traffic is still “significantly lower” than last year, with consumers remaining value-orientated. It revealed that customer conversation declines “notably” when offers are reduced.

However, there was a material decline in sales in May 2023, so management expects the comparative sales performance will improve in the second half of FY24. It’s focused on managing its gross profit margin, maximising sales conversion and managing its cost of doing business (CODB).

Initiatives for growth include product ranging, supply chain improvements, the Adairs-operated national distribution centre, CODB management and store rollout.

The post 52-week high! ASX All Ords stock surges 5% as chair steps down appeared first on The Motley Fool Australia.

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More reading

• Why Adairs, BHP, Deep Yellow, and Woodside shares are dropping today
• 3 ASX 300 shares receiving broker upgrades today (one with 25% potential upside)
• Adairs share price rockets 12% as dividend payments resume

Motley Fool contributor Tristan Harrison 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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a better day on Tuesday. In afternoon trade, the benchmark index is up 0.2% to 7,719.9 points.

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

Alumina Ltd (ASX: AWC)

The Alumina share price is up 8% to $1.27. This morning, Alumina entered into a scheme implementation deed with Alcoa Corporation. This is in relation to the recently announced proposal for Alcoa to acquire 100% of Alumina by way of a scheme of arrangement for 0.02854 Alcoa shares for each Alumina share held.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up almost 4% to $4.15. This follows news that the lithium miner has signed a new offtake agreement with Sichuan Yahua Industrial Group (Yahua) for the supply of spodumene concentrate from the Pilgangoora Operation. Yahua is a leading lithium chemicals company and one of the largest lithium hydroxide producers globally. It supplies to companies such as Tesla, LG Energy Solutions, LG Chem, and CATL.

QANTM Intellectual Property Ltd (ASX: QIP)

The QANTM share price is up 15% to $1.60. Investors have been buying the intellectual property services company’s shares after it received another takeover offer. A non-binding indicative offer has been tabled from Adamantem Capital to acquire QANTM for $1.817 per share by way of a scheme of arrangement. This is higher than an offer received last month from Rouse International.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius share price is up 4% to $1.56. This follows the release of the gold miner’s 10-year plan for the Mt Magnet mine. Management estimates average annual production of 150,000 ounces with an all-in sustaining cost (AISC) of $1,600 to $1,800 per ounce. Though, for the first 3.5 years it expects a lower AISC of $1,250 to $1,450 per ounce.

The post Why Alumina, Pilbara Minerals, QANTM, and Ramelius shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals share price jumps on deal with Tesla supplier
• Why are short sellers shifting into ASX blue chips and out of lithium losers?
• These are the 10 most shorted ASX shares
• Why these 3 ASX 200 shares grabbed the Motley Fool’s headlines this record-breaking week
• Here are the top 10 ASX 200 shares today

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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) bank shares have been outperforming the index in the last few months. Is it a good time to buy or not?

In the last six months, the Commonwealth Bank of Australia (ASX: CBA) share price has risen by 17%, the Westpac Banking Corp (ASX: WBC) share price is up 27%, the ANZ Group Holdings Ltd (ASX: ANZ) share price is up 17% and the National Australia Bank Ltd (ASX: NAB) share price has climbed by 18%. The ASX 200 is up by just 7% in the last six months, as a comparison.

Are ASX 200 bank shares good value?

In a note to clients, UBS analyst John Storey and associate analyst Olivia Clemson said “very optimistic assumptions are required to justify the recent run-up in bank share prices”.

UBS suggested the rally is due to the market expecting a soft-landing scenario for the economy, and the possibility of “lessening competitive pressures” in deposits and lending.

The share strategy team at UBS is underweight on banks, which means the broker thinks the sector is unattractive at the moment and is “cautious.”

Having said that, after looking at the recent half-year results and FY24 first-quarter trading updates – different banks have different reporting schedules – UBS decided to increase its adjusted earnings per share (EPS) estimates by 1%, 3% and 2% on average for the financial years between FY24 to FY26.

UBS also said it had increased its price targets by around 14%, on average.

What could happen with earnings?

The broker points out that market consensus expects Australian bank profits to fall 8% in FY24 and 3% in FY25.

The UBS analysts said:

Australian Banks are defensive, while capital return is an underpin to the investment case, but subsequent returns at these PE multiples have proven to be below market (longer term).

Storey acknowledged revenue has been boosted by stronger-than-expected non-net interest income. The analyst said positive earnings per share (EPS) surprises over time could occur if there’s stronger-than-expected volume growth.

New price targets for ASX 200 bank shares

A price target tells us where the broker is guessing the share price will be in 12 months. These are the UBS price targets for the banking industry:

• ANZ’s price target is $30
• Macquarie Group Ltd‘s (ASX: MQG) price target is $185
• CBA’s price target is $105
• Westpac’s price target is $23
• Bank of Queensland Ltd‘s (ASX: BOQ) price target is $5
• NAB’s price target is $28
• Bendigo and Adelaide Bank Ltd‘s (ASX: BEN) price target is $8

ANZ’s price target is the only one implying a possible rise, with many of the targets suggesting double-digit declines. If those targets become a reality, it may mean it could be wise to wait.

The post Should you wait for a dip to buy ASX 200 bank shares? appeared first on The Motley Fool Australia.

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More reading

• If I’d put $5,000 in Westpac shares at the start of 2024, here’s what I’d have now
• Here’s the NAB dividend forecast through to 2026
• Why are short sellers shifting into ASX blue chips and out of lithium losers?
• ASX dividend royalty: Australia’s top stocks for reliable income
• Here’s how the ASX 200 market sectors stacked up this week

Motley Fool contributor Tristan Harrison 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woodside Energy Group Ltd (ASX: WDS) shares are down 0.9% during the Tuesday lunch hour.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $29.44. At the time of writing, shares are changing hands for $29.18 apiece.

For some context, the ASX 200 is up 0.1% at this same time.

Woodside could be facing some additional headwinds with lower expectations for global growth, particularly in China, potentially dampening shorter-term energy demand.

Brent crude oil is currently trading for US$82.38 per barrel, down from US$82.50 last night, according to data from Bloomberg.

Here’s how the oil and gas company is addressing shareholders’ concerns over climate change and how it will respond to the global energy transition.

Woodside shares can adapt to new energy demands

Commenting on the company’s Climate Transition Action Plan (CTAP) that’s intended to steer Woodside shares profitably through the energy transition, CEO Meg O’Neill said

“I firmly believe Woodside is built to thrive through the energy transition and our Climate Transition Action Plan shows how we plan to achieve this.”

O’Neill continued:

Our climate strategy is integrated throughout our corporate strategy as we provide the energy our customers need today and into a lower carbon future, create and return value to shareholders, and conduct our business sustainably.

Woodside’s CTAP was released last month, on 27 February. It outlines the company’s potential pathway to net zero Scope 1 and 2 net equity emissions by 2050.

It also introduced a new Scope 3 target to take final investment decisions for five million tonnes of CO2 equivalent abatement capacity per year. New Scope 3 abatement target will track the impact of new energy products on customers.

That come atop Woodside’s existing target to invest $5 billion in new energy products and lower carbon services by 2030.

O’Neill said the CTAP highlights, “Woodside’s confidence in a sustained role for natural gas through the energy transition, while providing additional information on our plans and progress to reduce net equity Scope 1 and 2 emissions and to invest in new energy products and lower carbon services for the transition.”

The company said that while there is no single or certain pathway through the energy transition, “Diversification and adaptation will be central to the competitiveness of successful energy businesses.”

Woodside shares are down 7% year to date despite an uptick in crude oil prices.

If you’re looking to invest in energy shares or any other ASX stock, remember to do your research first. Or seek out professional advice.

The post How Woodside shares can ‘thrive through the energy transition’ appeared first on The Motley Fool Australia.

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More reading

• Why Adairs, BHP, Deep Yellow, and Woodside shares are dropping today
• 5 things to watch on the ASX 200 on Monday
• ASX dividend royalty: Australia’s top stocks for reliable income
• 3 ASX dividend shares with yields above 5% (but are they safe?)
• 2 of the best ASX dividend stocks to buy 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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Westpac Banking Corp (ASX: WBC) shares are rising on Tuesday.

At the time of writing, the banking giant’s shares are up 2% to $27.38.

This leaves the company’s shares trading close to a 52-week high of $27.70.

Why are Westpac shares rising?

Investors have been fighting to get hold of Westpac and other bank shares this year following a rather successful reporting season and signs that competitive pressures are easing.

In case you missed Westpac’s quarterly update, it reported an unaudited net profit of $1.5 billion for the three months. This was down 6% from the second-half average of FY 2023.

However, one-offs weighed heavily on its profits. If you exclude these, Westpac’s unaudited net profit would have come in flat against the second-half average at $1.8 billion. This was better than expected thanks largely to lower than forecast costs.

This update went down well with analysts at Goldman Sachs, which feel that there are signs that net interest margin (NIM) pressures could be easing. They said:

Coupled with disclosures in BEN’s 1H24 result, there are signs that industry-wide NIM pressures are starting to ease. Beyond this, WBC’s performance on costs was better than we had anticipated, and bodes well for when WBC finalises details of its technology simplification initiative (expected before 1H24 result), which was first announced at its FY23 result, and which management believes can be funded within its A$2 bn p.a. of investment spend.

What if I had invested $5,000 at the start of the year?

Investors that tipped $5,000 into Westpac shares at the start of the year would be smiling widely today.

The banking giant’s shares closed 2023 at $22.90. This means you would have been able to snap up 218 units for an investment of $4,992.20.

Based on today’s share price of $27.38, those shares are now worth $5,968.84. That’s a 19.5% or $976.64 return on your original investment. And it’s only 12 March!

The post If I’d put $5,000 in Westpac shares at the start of 2024, here’s what I’d have now appeared first on The Motley Fool Australia.

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• Here’s how the ASX 200 market sectors stacked up this week
• A 10% dividend yield from Westpac shares? Here’s how these income investors achieved it!
• Why are the big 4 ASX 200 bank shares leaping to new 52-week highs today
• How investing $100 per week can create $2,000 in annual ASX dividend income
• Is the blistering rally in ASX 200 bank shares overdone?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

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The BHP Group Ltd (ASX: BHP) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed down 2.6% yesterday at $42.82. In late morning trade on Tuesday, shares are swapping hands for $42.43, down 0.9%.

For some context, the ASX 200 is up 0.4% at this same time.

Here’s what’s going on.

What’s pressuring the BHP share price?

Most of the headwinds battering the BHP share price today stem from a big overnight fall in the iron ore price.

Iron ore counts as BHP’s top revenue earner. And the price of the critical steel-making metal tumbled 6.8% overnight to trade for US$107.35 per tonne. That’s down from US$145 per tonne in early January, and well below many analyst forecasts that predicted iron ore would hold above US$120 per tonne for the first half of 2024.

That looks to be because China’s floundering economy has thus far failed to reignite. And the Chinese government’s stimulus efforts to date have been on the decidedly timid side of the spectrum.

China is Australia’s top import market for iron ore and many basic commodities. And its often booming real estate sector consumes mind-boggling quantities of steel. But the property markets in China have been weak, with iron ore stockpiles building.

And the outlook remains cloudy, which sees both iron ore and the BHP share price taking a big hit this week.

Commenting on the headwinds facing the industry, Daniel Hynes, a senior commodity strategist at ANZ Group Holdings Ltd (ASX: ANZ) said (quoted by The Australian Financial Review), “China’s latest National People’s Congress meeting didn’t ease prospects for the property market and a weak start to the construction season is boding ill for steel demand.”

Tom Price, senior commodities analyst at Liberum added:

It’s hard to build a bullish case for iron ore over any time horizon at the moment. There’s probably a speculative element at work today, with investors looking at what it will take for China to hit its growth targets for the year and deciding that it’s just not going to happen.

With doubts about China’s 2024 growth prospects simmering, the BHP share price could be entering bargain territory if the Chinese economy regains traction.

The post Why is the BHP share price getting hammered on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Buy BHP and these ASX dividend shares
• 5 things to watch on the ASX 200 on Tuesday
• Why are short sellers shifting into ASX blue chips and out of lithium losers?
• Why Adairs, BHP, Deep Yellow, and Woodside shares are dropping today
• Why these 3 ASX 200 shares grabbed the Motley Fool’s headlines this record-breaking week

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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Telstra Group Ltd (ASX: TLS) stock has been a disappointing performer in recent months.

After peaking at a 52-week high of $4.46 in June, the telco giant’s shares have been on a downward spiral.

This has left them trading at $3.79 today, which is just a fraction away from their 52-week low of $3.75.

While this is disappointing, has it created a buying opportunity for investors? Let’s find out.

Is Telstra stock a buy?

The market may not be feeling overly bullish on the company, but the same cannot be said for Australia’s leading brokers.

A large portion of the broker community has the equivalent of a buy rating on the telco leader’s shares with price targets offering double-digit returns.

In addition, they are expecting above-average dividend yields from its shares over the coming years.

For example, last month Macquarie put an outperform rating and $4.40 price target on its shares. This implies potential upside of 16% for investors.

And with Macquarie forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025, investors can expect to receive a yield of approximately 5% over the next 12 months.

Who else is bullish?

A broker that is even more bullish is Morgan Stanley. It has an overweight rating and $4.75 price target on Telstra stock.

This suggests upside of 25% for investors from current levels. And if you include forecast dividends, you’re looking at a total return of approximately 30% between now and this time next year.

To put that in context, a $20,000 investment would generate a return of $6,000 for investors if Morgan Stanley is on the money with its recommendation.

Overall, this could make Telstra worth considering if you’re looking for some new portfolio additions this month.

The post Is Telstra stock a buy right now? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend shares to buy with ~5% yields for an income boost
• Long-term investing: 3 top ASX stocks you can buy for under $20 a share
• Top ASX passive income shares to buy in March 2024
• 3 key numbers for the Telstra share price that I think are being overlooked
• The Telstra share price is near a 52-week low: Should you buy?

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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