If you’re on the lookout for a beaten-down S&P/ASX 200 Index (ASX: XJO) dividend stock there’s a good chance you’ve frequented this one recently.

The passive income stock in question is ASX 200 supermarket giant Woolworths Group Ltd (ASX: WOW).

The Woolworths share price has taken a beating in 2024. At market close yesterday, shares in the ASX 200 dividend stock were down 13.2% year to date, trading for $32.57 apiece.

As you can see on the above chart, the Woolworths share price was down 4.4% heading into 20 February.

That’s when the real pain began.

Woolies released its half-year financial results on 21 February. And ASX 200 investors reacted by sending the share price down 6.6% on the day.

Although revenue was up by 4.4% year on year to $34.64 billion, losses after significant items came soared to $781 million, hit by a $1.5 billion non-cash write-down of Woolies’ New Zealand business.

In the first half of FY 2023, Woolworths reported a profit of $845 million.

Also likely spooking investors on the day was the shock announcement that CEO Brad Banducci was stepping down from the lead role after more than 13 years with the company and more than eight years as CEO.

So, why do I think this ASX 200 dividend stock is one to buy today?

Well, despite sales continuing to moderate during the first seven weeks of 2024, I’m confident this pain will pass over the medium term as cost of living pressures invariably ease.

And with an eye on passive income, I was pleased to see Woolworths up its fully franked interim dividend by 2% from last year’s interim dividend.

With an eye on the growth-driving potential of Woolworths’ digital offerings, Goldman Sachs also has a bullish take on the stock.

The broker has a buy rating on Woolworths shares with a $40.40 price target. That implies a potential 24% upside from current levels.

So, how about those dividends?

What is the ASX 200 dividend stock yielding?

Atop the 24% potential increase in the Woolworths share price, the company paid a 58 cent per share final dividend on 27 September. And the boosted interim dividend of 47 cents per share will hit eligible investors’ bank accounts on 11 April.

That equates to a full-year payout of $1.05 per share.

At Tuesday’s closing price, that sees this beaten-down ASX 200 dividend stock trading on a fully franked trailing yield of 3.2%.

The post 1 ASX 200 dividend stock down 13% in 2024 to buy right now appeared first on The Motley Fool Australia.

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More reading

• Buy Woolworths and these ASX dividend shares
• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• Top ASX shares to buy in March 2024
• Is the Woolworths share price too good to pass on?
• Here are 2 ASX shares to buy for a golden retirement

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 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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Financial freedom… what could be better? It’s the reason most of us invest in ASX shares in the first place – for a future where we are financially comfortable and work because we can, not because we must. But to gain financial freedom as effortlessly as possible, one needs to buy the right ASX shares to invest in. Preferably ones that offer both capital growth prospects, and the ability to fund consistent and rising dividends.

With that in mind, here are five ASX shares that I would personally buy for a path to financial freedom that is as effortless as possible.

5 ASX shares to buy for an effortless path to financial freedom

Vanguard Australian Shares Index ETF (ASX: VAS)

First up, we have an exchange-traded fund (ETF). The Vanguard Australian Shares ETF is a great way to put down a foundation for any ASX share portfolio in my view. It gives its investors instant diversification by investing in the largest 300 shares by market capitalisation on the ASX boards.

Historically, this ETF has delivered both capital growth and franked dividend income in a fairly even split. Given this index fund’s relatively low cost, its diversification and past performance, I think it’s a great stock to buy and hold for anyone seeking financial freedom. And indeed for anyone who has already achieved it.

Wesfarmers Ltd (ASX: WES)

Next up we have ASX 200 retail and industrial conglomerate Wesfarmers. Wesfarmers is most famous for running several of Australia’s best retailers. Its crown jewel is undoubtedly Bunnings, but there’s also Kmart, Target and OfficeWorks to consider. In addition, Wesfarmers also operates a plethora of other businesses, including a clothing line, lithium mines and a gas distribution company.

Wesfarmers has a long history of delivering both high growth and meaningful dividend income. It seems to have a knack for acquiring strategic bolt-ons to its business, as well as a good sense of when to exit a holding (Coles Group Ltd (ASX: COL) comes to mind).

I think Wesfarmers’ decades-long track record of delivering for shareholders won’t end anytime soon. As such, this is another ASX share I’d be happy to hold on a journey towards financial independence.

MFF Capital Ltd (ASX: MFF)

MFF Capital is a listed investment company (LIC) that most readers probably aren’t too familiar with. Saying that, this LIC is one of my favourite investments, and gives us some much-needed international diversification in our quest towards financial freedom.

This LIC is run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris MAckay, who tends to take a very Warren Buffett-esque approach to management. MFF seeks to hold the best stocks in the world within its underlying portfolio for long periods of time. These are usually US shares, but other countries are often thrown into the mix.

Its current top holdings include Amazon.com Inc (NASDAQ: AMZN), Mastercard Inc (NYSE: MA), American Express Co (NYSE: AXP) and Meta Platforms Inc (NASDAQ: META).

I think exposure to these best-in-the-world kinds of companies is imperative for an effortless path to financial freedom.

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

Our next freedom fighter stock is ASX 200 investment house Washington Soul Pattinson, or Soul Patts for short. Soul Patts has long been one of my favourite ASX shares. Similarly to MFF, it invests in a portfolio of underlying assets on behalf of its shareholders.

In Soul Patts’ case, these mostly consist of large stakes in other ASX shares like Brickworks Ltd (ASX: BKW) and TPG Telecom Ltd (ASX: TPG). But the company also allocates some of its portfolio towards other asset classes like private credit and venture capital.

Another reason to like Soul Patts is its impeccable track record when it comes to shareholder returns. For one, investors have enjoyed market-beating returns from Soul Patts for decades. Late last month, we covered how the company’s portfolio delivered an average of 12.5% per annum (including dividends) over the 20 years to 31 July 2023.

Speaking of dividends, Soul Patts is also the only ASX share that can boast an annual dividend pay rise every year since 2000. Enough said.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

To finish up, we have another ASX ETF. The VanEck Wide Moat ETF is another of my favourite investments. It’s not an index fund like VAS. But rather an actively managed ETF that seeks out a small number of stocks that share similar characteristics. In this case, that would be US shares that display evidence of owning what’s known as a wide economic moat.

A moat is a term coined by Warren Buffett and refers to a company’s ability to fend off competition with a unique trait. This could be a strong brand, a cost advantage in its industry, or selling a good or service that customers find difficult not to continuously buy.

Think about the brand power of Walt Disney Co (NYSE: DIS) or Nike Inc (NYSE: NKE), the low-cost advantage of Campbell Soup Company (NYSE: CPB), or the switching cost of moving away from Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)’s Google search engine. All four of those companies are currently in MOAT’s portfolio, and you can now see why.

This ETF has also delivered some impressive returns for investors in recent years. As of 31 January, unitholders have enjoyed an average return of 16.52% per annum over the past five years.

As such, the VanEck Wide Moat ETF is an investment I would have no hesitation in recommending for anyone looking to reach financial freedom.

The post 5 ASX shares to buy for an effortless path to financial freedom appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs for beginner investors to buy in March
• Are these record-breaking ASX ETFs now too expensive to buy?
• 3 ASX 200 shares I think could grow to be bigger than BHP one day
• Buy these ASX ETFs for easy passive income
• 2 ASX shares I’ve been buying!

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Meta Platforms, Mff Capital Investments, Nike, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares Index ETF, Walt Disney, Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Brickworks, Mastercard, Meta Platforms, Nike, Walt Disney, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Brickworks, Coles Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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Aeris Resources Ltd (ASX: AIS) shares could be dirt cheap right now.

That’s the view of analysts at Bell Potter, which see significant value in the ASX mining stock at current levels.

Big returns on offer with this ASX mining stock

According to the note, in response to the company’s half-year results, the broker has retained its buy rating and 23 cents price target on its shares.

Based on its current share price of 12 cents, this implies potential upside of 92% for investors over the next 12 months.

While the broker wasn’t overly impressed with the copper miner’s results last week, it believes that a change of fortunes is around the corner. In light of this, the broker thinks that now is the time to buy this ASX mining stock.

For example, after recording a loss after tax of $18.8 million in the first half, the broker expects a stronger second half to lead to Aeris reporting a full-year loss of just $2 million.

It then forecasts a profit after tax of $43 million in FY 2025 and $61 million in FY 2026.

If these estimates prove accurate, then the ASX mining stock is trading at just 2.6x FY 2025 earnings and 1.8x FY 2026 earnings.

Bell Potter also believes the company could become a takeover target. It concludes:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. Our target price is unchanged at $0.23/sh. Retain Buy.

The post This dirt cheap ASX mining stock could nearly double in 12 months appeared first on The Motley Fool Australia.

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More reading

• With a P/E ratio of 15, is this ASX All Ords share price too low to ignore?
• 2 ASX ETFs for beginner investors to buy in March
• Forget Westpac and buy these ASX dividend shares
• 2 ASX shares that could keep flying after a massive reporting season
• 5 things to watch on the ASX 200 on Wednesday

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 Index (ASX: XAO) share GQG Partners Inc (ASX: GQG) has risen strongly. Does it have a low enough price/earnings (P/E) ratio to buy?

GQG shares have risen 50% in the past six months, soundly outperforming the 6% increase for the S&P/ASX 200 Index (ASX: XJO).

The fund manager was very undervalued before, and I still think the ASX All Ords share is undervalued now, following continued growth.

Why 2024 looks like another good year for the All Ords ASX share

The funds management space is difficult for the industry as a whole. Low-cost exchange-traded funds (ETFs) are capturing a lot of investment inflows.

However, not all fund managers are suffering, GQG is one of the rare ones doing very well.

In the 2023 full-year result it reported net flows of US$10 billion, a 14.7% increase of the average funds under management (FUM) to US$101.9 billion, a 17.4% rise in distributable earnings to US$297.9 million and a 17.3% rise in the dividend per share to US 9.1 cents per share.

Those numbers are impressive, but they tell us about the past. What about the future?

The average FUM for 2023 was US$101.9 billion and closing FUM at December 2023 was US$120.6 billion. That implies an 18% increase of FUM, if the FUM weren’t to change. But, it has changed – FUM at January 2024 was US$127 billion (with net inflows of US$1.9 billion), 24.6% more than 2023’s average FUM.

Unless there’s a sustained crash of the global stock market, it seems GQG is on track to report an increase in earnings (and the dividend) of more than 20%.

Fund managers are typically scalable businesses – if FUM rises by 10%, it doesn’t require 10% more employees or 10% more office space to manage that increased capital. Profit margins can rise as FUM grows.

Cheap valuation

If we assume a 20% rise in EPS for the ASX All Ords share in 2024, it would put the GQG share price at under 13 times FY24’s possible earnings with a potential dividend yield of 7.6%.

I’m not going to assume that GQG’s FUM can grow forever, but for the next year ahead it still looks undervalued with how well its investment funds are performing and how much it’s bringing in with net inflows.

If the ASX All Ords share can keep increasing its geographical footprint and winning new clients, it may have an extended growth runway that the market isn’t appreciating. The attractive flow of dividends is helping boost returns.

The post With a P/E ratio of 15, is this ASX All Ords share price too low to ignore? appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• This ASX All Ords stock is predicted to pay a 9% dividend yield in 2025!
• Up 21% in a month: Can GQG shares climb even higher?
• This ASX passive income all-star just increased its dividend by 17%
• Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today

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

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If you’re new to investing and not confident with stock picking, then exchange traded funds (ETFs) could be a great option to start with.

ASX ETFs allow investors to buy a slice of a large and diverse number of shares through a single investment.

This means that not only do you have a diverse portfolio, but you don’t have to worry about dedicating time to researching individual shares.

But which ASX ETFs could be top options for beginner investors? Two that could be worth considering are listed below:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ASX ETF to look at is the hugely popular BetaShares NASDAQ 100 ETF.

It provides investors with access to 100 of the best companies on the NASDAQ index. These are the giants of Wall Street like Apple, Meta, Microsoft, Nvidia, and Tesla.

Over the last 10 years, the index it tracks has delivered an average return of 21.3% per annum. This would have turned a $10,000 investment into almost $70,000.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that could be a great option for beginner investors is the VanEck Vectors Morningstar Wide Moat ETF.

It is focused on investing in a group of shares that have wide moats (sustainable competitive advantages) and fair valuations.

These are the qualities that Warren Buffett looks for when he makes his investments for Berkshire Hathaway (NYSE: BRK.B). And given how Buffett has smashed the market since all the way back in 1965, it’s fair to say that this investment strategy has its merits.

At present, its holdings include Walt Disney, Estee Lauder, Campbell Soup, Nike, and Etsy.

Over the last decade, the index the fund tracks has generated an average annual return of 16.5%. This would have turned a $10,000 investment into approximately $46,000.

The post 2 ASX ETFs for beginner investors to buy in March appeared first on The Motley Fool Australia.

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• Are these record-breaking ASX ETFs now too expensive to buy?
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• The Nasdaq just hit a fresh all-time high. What could it mean for Aussie investors?
• 4 hot ASX ETFs smashing all-time highs on Thursday

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Etsy, Meta Platforms, Microsoft, Nike, Nvidia, Tesla, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike, 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 BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Meta Platforms, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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With Westpac Banking Corp (ASX: WBC) shares hitting a new 52-week high this week, there’s a lot less value on the table now for investors than there was a few months ago.

In fact, almost all major brokers have price targets that are now comfortably below where the ASX bank share trades.

As a result, income investors may get a better risk/reward from other ASX dividend shares. But which alternatives could be buys instead of Westpac?

Listed below are two dividend options that broker rate as top buys this month:

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs thinks that this mining giant could be a top option for investors right now. It has a buy rating and $138.30 price target on the miner’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of US$4.39 (A$6.75) in FY 2024 and then US$4.61 (A$7.09) in FY 2025.

Based on the latest Rio Tinto share price of $124.77, this will mean yields of approximately 5.4% and 5.7%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

The team at Morgans continue to see a lot of value in youth fashion retailer Universal Store and have named it as an ASX dividend share to buy. Particularly given that the “core youth consumer appears to be picking up.”

The broker has an add rating and $5.65 price target on its shares.

In addition, Morgans is forecasting some big fully franked dividend yields in the near term. It expects the company to be in a position to pay dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store share price of $4.80, this will mean yields of 5.4% and 6%, respectively.

The post Forget Westpac and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Key takeouts for ASX shares this earnings season: CBA analysis
• 5 things to watch on the ASX 200 on Tuesday
• Want to bank the Rio Tinto dividend? You’ll need to be fast!
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Is it too late to buy Westpac shares at a fresh 52-week high?

Motley Fool contributor James Mickleboro has positions in Universal Store and 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 February ASX Reporting Season has now wrapped up with the winners already seeing their share prices rocket.

However, it’s not too late to jump on some of those, with experts predicting even bigger and better results in the coming years.

Here are two examples that the team at the Elvest Fund is backing:

Looping forward to ‘strong earnings growth’

Mining technology services provider RPMGlobal Holdings Ltd (ASX: RUL) is going gangbusters.

“RPMGlobal rallied 24% during February, having delivered first half EBITDA of $10 million, which was up 89% on the pcp,” Elvest analysts said in a memo to clients.

That result was positive enough, but the team likes the outlook even more.

“RPMGlobal indicated that demand for its software was increasing across multiple geographies, which, alongside flattening research and development spend, should drive strong earnings growth in coming periods.”

RPMGlobal shares are now among the five biggest investments for the Elvest Fund.

The team is far from the only ones bullish on the stock, with CMC Invest showing both Moelis Australia and Veritas Securities rating RPMGlobal as a strong buy right now. 

‘Excited’ about the future for these ASX shares

The Lovisa Holdings Ltd (ASX: LOV) share price has surged almost 24% since reporting season.

The Elvest team explained the first-half result was “better than expected”.

“EBIT [was] up 16% to $82 million, in part driven by a near record gross profit margin of 80.7%. 

“Recent like-for-like sales turned positive, which bodes well for second half earnings.”

Like RPMGlobal, there are further potential catalysts coming for Lovisa.

“Looking beyond FY24, we remain excited about the company’s aggressive global store roll program, which could ultimately double or triple the existing footprint of 860 stores across over 40 markets.”

Lovisa is also among the top five holdings for Elvest.

The jewellery retailer also has many fans in the professional community. According to CMC Invest, eight out of 13 analysts currently recommend Lovisa as a buy.

The post 2 ASX shares that could keep flying after a massive reporting season appeared first on The Motley Fool Australia.

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More reading

• 4 Australian shares set to soar in 2024
• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• Key takeouts for ASX shares this earnings season: CBA analysis
• Why is the Lovisa share price sinking today?
• 34 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor Tony Yoo has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and RPMGlobal. The Motley Fool Australia has recommended Lovisa and RPMGlobal. 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and slipped into the red. The benchmark index ended the day 0.15% lower at 7,724.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Wednesday despite a very poor session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points higher. In late trade on Wall Street, the Dow Jones is down 1.1%, the S&P 500 has fallen 1.2%, and the Nasdaq is 1.95% lower.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$78.26 a barrel and the Brent crude oil price is down 0.8% to US$82.12 a barrel. Traders were selling oil despite China unveiling its growth plans.

Buy Graincorp shares

The Graincorp Ltd (ASX: GNC) share price could be good value according to analysts at Bell Potter. It has retained its buy rating and $9.30 price target on the grain exporter’s shares following the release of the March ABARE crop report. It notes that the “report highlighted an uplift in the 2023-24 winter and summer crop forecast, having implications for both CPC (crop protection contract) payments and likely receival outcomes.”

Gold price continues to rise

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have another good session on Wednesday after the gold price pushed higher again overnight. According to CNBC, the spot gold price is up 0.75% to US$2,142.4 an ounce. Rate cut bets have pushed gold to record highs.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes Monadelphous Group Ltd (ASX: MND), Northern Star, QBE Insurance Group Ltd (ASX: QBE), Super Retail Group Ltd (ASX: SUL), and Treasury Wine Estates Ltd (ASX: TWE) shares.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Woodside Energy 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 positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Treasury Wine Estates. 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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With the S&P/ASX 200 Index (ASX: XJO) rising 13.8% over the four months, many of the more obvious quality stocks have become expensive.

As such, it’s not a bad idea to check out the shares that are struggling right now to see if there is a bargain to be bagged for long-term investors.

Here are two that Shaw and Partners portfolio manager James Gerrish and his team have identified:

‘A good outcome for shareholders’

Diversified mining company South32 Ltd (ASX: S32) has seen its share price decline almost 12% so far this year. 

It’s a painful 37.3% fall if you go back 12 months.

Gerrish admitted the February results didn’t flatter, but feels the outlook is positive.

“They reported solid earnings, a slight beat on low expectations but costs remained an issue, which has led to the stock drifting lower,” he said in his Market Matters newsletter.

“We expect a production uplift in the 2H of FY24, and higher production will help with unit costs, putting them in a better position.”

There was an intriguing catalyst last week as well.

“The main news… was the sale of their Illawarra Met Coal operation for up to US$1.65 billion ($2.54 billion).”

The critical detail was that there is a large upfront cash payment of US$1.050 billion, with US$250 million deferred and a US$350 million conditional component.

“The price is a great one and a good outcome for shareholders given the operational complexities and risks, along with rehab liabilities at IMC.

“We like the risk-reward on offer by South32 below $3, with a 20% to 30% bounce being our preferred scenario.”

The South32 share price closed Tuesday at $2.94.

These ASX shares might have taken enough punishment

After the hammering it’s taken the last few years, it might take some courage to buy Magellan Financial Group Ltd (ASX: MFG).

But Gerrish’s team feels like the time is right with the price hovering in the low $8s.

“Market Matters continues to see attractive value in the individual components of MFG, including the much-discussed potential capital management due to the company’s strong balance sheet with cash and investments amounting to over 50% of its market cap, in our view.”

Last month the investment firm reported a “solid first-half beat”.

“The profit of $93.5 million was well ahead of the $66 million consensus estimate,” said Gerrish.

“Although it was driven by capital gains rather than a strong operational performance from the fund manager.” 

His team also likes the appointment of the new boss.

“We liked the announcement that Sophia Rahmani, a well-credentialed leader from boutique fund manager Maple-Brown-Abbott, would take on the CEO role.

“Now back around $8, following a solid result, it’s looking increasingly attractive.”

The post 2 ASX shares with attractive ‘risk-reward’ balance to buy right now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 34 ASX 200 shares with ex-dividend dates next week
• Guess which ASX 200 mining stock could offer a 22% return
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• South32 share price jumps on $2.5b coal sale

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 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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Most investors have some cash sitting idle in their ASX stock broking account, ready to pounce on the next attractive buy.

But instead of that money doing nothing, what if it could earn 7% per annum interest?

Incredibly, one broking platform is doing exactly that. It’s paying out more interest than the banks are.

Tiger Brokers Australia, which is the local arm of Chinese broker UP Fintech Holding Ltd (NASDAQ: TIGR), is running a promotion to give back 7% interest on all deposits for a maximum of 150 days.

Both new and existing customers are eligible to receive this rate.

Why are they giving money away?

Tiger Brokers Australia vice president Jack Liang said this extraordinary rate is designed to assist punters during troubled times.

“As investors face tough economic conditions due to high inflation and reduced disposable income, we want to provide a strong incentive to boost their confidence in investing their hard-earned money.”

Tiger offers trading in both US and ASX shares.

“While such offering on uninvested cash is not new in the industry, we’re proud to be the forerunner in presenting this superior rate to the marketplace.”

What’s the catch?

There are, of course, some conditions to receiving this attractive interest rate.

The 7% rate applies to customers who make a deposit between 4 March to 9 April, for a maximum duration of 150 days.

The promo interest is applied to amounts up to $100,000, meaning the highest payout one can receive is $2,877.

After that period, the interest rate will revert to the normal rate, which varies between 0% and 2.25%, depending on the balance.

As a bonus, customers who deposit $2,000 or more cumulatively during the promo window will also receive US$30 worth of fractional shares in Tesla Inc (NASDAQ: TSLA).

While withdrawals can be made anytime for the 7% rate, the Tesla bonus requires that funds are not pulled out for 90 days.

The post How to make 7% interest while deciding which ASX shares to buy appeared first on The Motley Fool Australia.

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More reading

• Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
• Why did the Tesla share price just tumble 7%?
• Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven
• Buy and hold these ASX ETFs for 10 years or more

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 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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