The Lynas Rare Earths Ltd (ASX: LYC) share price is having a solid start to the week.

In morning trade, the rare earths producer’s shares are up 4% to $6.08.

This is despite the release of the company’s half-year results, which revealed a sharp drop in profits.

Lynas share price charges higher despite falling profits

• Revenue down 36.5% to $234.8 million
• Earnings before interest and tax (EBIT) down 80% to $31.8 million
• Net profit after tax down 73.6% to $39.5 million
• Cash and equivalents balance of $686.1 million

What happened?

For the six months ended 31 December, Lynas reported a disappointing 36.5% decline in revenue to $234.8 million. This was driven by a sharp decline in rare earths prices during the period.

And while its cost of sales declined 14% year on year to $159 million, this wasn’t anywhere near enough to stop its EBIT collapsing 80% to $31.8 million.

But thanks to a sizeable cash balance and higher interest rates, the company’s net profit after tax was greater than its EBIT at $39.5 million. This appears to have been better than the market was expecting.

Management commentary

Lynas’ CEO, Amanda Lacaze, commented:

Notwithstanding the exciting expansion and exploration activities undertaken in the half year, and the low market price environment, I am pleased to report a profitable first half for the business. Continued demand for Lynas products and careful management of inventory and operating costs resulted in revenue of $234.8m, EBITDA of $62.6m and a net profit (NPAT) of $39.5m.

Outlook

Lacaze remains very upbeat on the company’s future due to increasing demand for rare earths. She said:

The rare earths market is important to many industries and we continue to see strong customer demand for Lynas’ products. Lynas has a proven track record of managing costs and operations to ensure that we can be successful in all market conditions, and across all stages of the market cycle. Optimising our industrial footprint through operating efficiencies and capital growth projects will ensure Lynas is well positioned to benefit from forecast market growth and any improvement in market pricing conditions.

The Lynas share price is down 24% over the last 12 months.

The post Lynas share price charges higher despite 74% half-year profit decline 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 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 Suncorp Group Ltd (ASX: SUN) share price is charging ahead today.

Shares in the S&P/ASX 200 Index (ASX: XJO) banking and insurance company closed Friday trading for $15.13. In early trade on Monday, shares are swapping hands for $15.49 apiece, up 2.4%.

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

This comes following the release of Suncorp’s half-year results for the six months ending 31 December (1H FY2024).

Here are the highlights.

Suncorp share price lifts on profit boost

• Cash earnings of $660 million, up 13.8% from 1H FY2023
• Net profit after tax (NPAT) of $582 million, up 5.4% year on year
• Net investment income of $396 million, up 137% from 1H FY2023
• Fully franked interim dividend of 34 cents per share, up from 33 cents per share

What else happened with Suncorp during the half year?

Perhaps the biggest event, which occurred after the end of the half year, was the 20 February decision by the Australian Competition Tribunal greenlighting the proposed sale of Suncorp Bank to ANZ Group Holdings Ltd (ASX: ANZ).

The deal is still awaiting final approval from the Queensland government and the Federal Treasurers. But Suncorp reported it still expects ANZ’s acquisition of its banking arm to complete around the middle of 2024.

Suncorp expects net proceeds of $4.1 billion from the sale. Management said they remain “committed to returning to shareholders any capital that is excess to the needs of the business following completion”.

The Suncorp share price gained on the 20 February news, while ANZ shares hit some headwinds.

That could be because the banking sector, more broadly, is coming under some pressure. Suncorp Bank is no exception, with its net interest margin (NIM) dropping from 2.03% in 1H FY 2023 to 1.80% in the half year just past. Costs were up too, with a cost to income ratio of 58.4%, up from 49.9% a year ago. Suncorp Bank profit after tax of $192 million was down 25.0%.

On the insurance front, Suncorp reported gross written premium (GWP) growth of 16.3% in its General Insurance business. The company said this reflected customer growth and price increases driven by increasing reinsurance costs, elevated natural hazard experience and ongoing inflationary pressures.

The total cost of natural hazard events came in $112 million below Suncorp’s allowance for the half year at $568 million.

What did management say?

Commenting on the results sending the Suncorp share price higher today, CEO Steve Johnston noted it was a challenging six months amid ongoing inflationary pressures and six severe weather events in Australia in November and December.

Against this backdrop, the group has continued to work hard to support its customers while also delivering improved earnings driven by increased customer demand for our products and services and positive investment performance over the half.

Net investment returns were up significantly from $167 million in 1H23 to $396 million, and this has been a key contributor to our reported earnings and profit for the half.

On the Australian Competition Tribunal’s decision to authorise the sale of Suncorp Bank to ANZ, he added, “The decision brings us one step closer to becoming a dedicated Trans-Tasman insurer proudly headquartered in Queensland.”

What’s next?

Looking at what could impact the Suncorp share price in the months ahead, the company forecasts GWP growth in the low to mid-teens for FY 2024.

On the cost front, the company expects expense ratios in the second half similar to the first half. This also reflects ongoing investment in growing its business.

And there’s the pending completion of the sale of Suncorp Bank to ANZ, expected mid-year.

Suncorp share price snapshot

The Suncorp share price is up 20% in 12 months, not including the two dividend payouts.

The post Suncorp share price marching higher on 14% earnings boost appeared first on The Motley Fool Australia.

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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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The TPG Telecom Ltd (ASX: TPG) share price is having a tough start to the week.

In early trade, the telco’s shares are down 10% to $4.82.

This follows the release of the company’s full year results.

TPG share price sinks on FY 2023 results

• Revenue up 4.3% to $4,632 million
• Statutory EBITDA down 12.2% to $1,875 million
• Normalised EBITDA up 7.6% to $1,930 million
• Final dividend of 9 cents per share

What happened during the year?

For the 12 months ended 31 December, TPG reported a 4.3% increase in revenue to $4,632 million. Management advised that this reflects mobile subscriber and average revenue per user (ARPU) growth.

Things weren’t quite as positive for its statutory EBITDA, which fell 12.2% to $1,875 million.

However, it is worth noting that the prior corresponding period included a one-off gain on its tower sale. On a normalised basis, EBITDA rose 7.6% to $1,930 million.

TPG’s statutory net profit after tax was $49 million, down from $513 million in FY 2022. This was once again due largely to the tower sale a year earlier. In addition, higher depreciation and amortisation costs, as well as higher market interest rates weighed on its profits.

Adjusted net profit after tax was down 9.6% to $584 million but its dividends for FY 2023 were flat at 18 cents per share.

How does this compare to expectations?

While the company’s result was largely in line with expectations, its guidance fell short. This appears to be why the TPG share price is falling today. Goldman Sachs commented:

FY24 Outlook: (1) EBITDA guidance $1,950-$2,025mn (vs. GSe: A$2,050mn; Visible Alpha Consensus Data: A$2,042mn) – noting EBITDA guidance now excludes transaction costs, includes transformation costs (was opposite prior).

Management commentary

TPG’s CEO, Iñaki Berroeta, said:

Our mobile business has achieved solid gains driven by new subscribers and the successful refresh of plans across our premium Vodafone brand as we position our business for sustainable growth in a competitive market. Our transformation continues at pace, and we are seeing the positive impact of simplifying and removing complexity from the business. These benefits will accelerate in the coming years as we deliver better network and service experiences for our customers.

Outlook

As noted above, TPG has provided guidance for FY 2024 EBITDA with its result.

It expects this to be in the range of $1,950 million to $2,025 million. This represents an increase of 1.4% to 5.3% year on year on a comparable basis.

Berroeta concludes:

We are pleased with the very strong growth we delivered in FY23 and expect to deliver further growth in FY24 at the same time as we continue to invest in the transformation and simplification of our business. We are confident in the outlook for strong improvements in cash earnings over the next few years, supporting returns for shareholders as the working capital, capital investment and interest cost cycles reduce from currently elevated levels.

The post TPG share price crashes 10% on FY 2023 results 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 Goldman Sachs Group. The Motley Fool Australia has recommended Tpg Telecom. 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 NIB Holdings Limited (ASX: NHF) share price is down 2.2% at $8 in early trade after the ASX financial company reported its FY24 first-half result.

NIB share price falls after strong profit growth

• Total revenue increased 12.4% to $1.7 billion
• Underlying operating profit rose 21.7% to $144.4 million
• Net investment income up 50% to $33.3 million
• Net profit after tax (NPAT) up 19.4% to $104 million
• Interim dividend boosted by 15.4% to 15 cents per share

The private health insurer revealed its Australian residents health insurance (ARHI) business was “materially assisted” by the favourable release of the liability for incurred but not yet paid claims at the end of FY23. The net profit margin was “strong” even after allowing for that.

However, NIB also said profitability was not recovering in its international students and travel businesses as quickly as management would like, though the trend was positive.

The company achieved 3.7% policyholder growth during the period. The FY24 first quarter was better than the overall industry achievement, but the second quarter slowed due to a price increase. NIB expects the first half’s growth to be better as well.

Claims in the ARHI business were up 9.1%, driven by growth and the FY23 first-half COVID-19 savings being offset by favourable movement for liability for incurred claims from June 2023.

What else happened in the FY24 first half?

NIB’s new National Disability Insurance Scheme (NDIS) business, called nib Thrive, now supports around 39,000 participants after acquiring six plan management businesses. nib Thrive contributed $6.4 million to first-half earnings. The NIB share price dropped 2.8% in December on the day it responded to the NDIS review report.

The company’s joint venture Honeysuckle Health (with Cigna Corporation) has continued to see strong growth in the number of participants in its health and injury management programs and is reducing hospital admissions.

NIB majority-owned digital health business Midnight Health saw a 189.5% revenue increase year over year — NIB thinks this business can become a “very big enterprise.”

What did NIB management say?

NIB chief executive officer Mark Fitzgibbon said:

The membership and revenue growth across all of our private health insurance businesses are testimony to the competitiveness of nib’s products and pricing, especially at a time of growing cost-of-living pressures.

A few COVID-19 related factors continued to have some influence on profitability, but the underlying business is in great shape.

What’s next for NIB?

The business maintained its guidance for FY24 of ARHI net policyholder growth of between 3% to 4%, commenting that it was cautious but optimistic about the broader conditions.

NIB’s travel division launched a new white-label partnership with Woolworths Group Ltd (ASX: WOW) in December 2023.

NIB share price snapshot

Prior to today’s movement, NIB shares had risen 9% over the past year, compared to a 5.8% rise for the S&P/ASX 200 Index (ASX: XJO).

The post NIB share price falls despite 19% profit growth in FY24 first-half result appeared first on The Motley Fool Australia.

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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 positions in and has recommended NIB Holdings. 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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ASX tech shares with strong growth potential are exactly the sort of companies I want to own in my portfolio. Undervalued ASX software stocks have the ability to outperform.

Technology is a good sector because of the intangible nature of software – it’s very inexpensive to grow with another subscriber or client. Compare that to a piece of furniture – it must be made, shipped to Australia/the shop, stored, and then delivered to the customer.

With that in mind, here’s why I think these two ASX tech shares are appealing.

Frontier Digital Ventures Ltd (ASX: FDV)

This company describes itself as a leading owner and operator of online classifieds marketplaces in fast-growing emerging regions. The three regions are Latin America, the Middle East and North Africa, and Asia.

The ASX share works alongside local management teams across property, automotive and general classifieds.

Frontier Digital Ventures says there is an opportunity to generate “significant revenue from facilitating transactions”. It suggests there are lower levels of trust between buyers and sellers, so online marketplaces can formalise the local property and automotive industries.

In the fourth quarter of 2023, the ASX software stock reported group operating revenue of $21.7 million, earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.1 million and the fourth consecutive quarter of positive operating cash flow.

This investment may not perform as strongly as established competitors such as REA Group Limited (ASX: REA), SEEK Limited (ASX: SEK) and CAR Group Limited (ASX: CAR), but it’s playing on the same sort of themes and digitising tailwinds.

2023 has been the best year for its EBITDA and cash flow, yet the Frontier Digital Ventures share price is 40% lower than where it was a year ago and 15% lower than at the start of 2024. I think it’s looking very good value.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that’s focused on the IT sector. It usually invests between $5 million to $20 million in unlisted businesses that the investment team think have a lot of growth potential.

The team typically selects holdings with a number of characteristics: they are run by the founders, have been in operation between two to six years, have a proven business model with attractive unit economics, have international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

Bailador’s investments include Siteminder Ltd (ASX: SDR), RC TopCo (which owns Rezdy, Checkfront and Regiondo), Access Telehealth, Rosterfy, Nosto, Mosh and Straker Ltd (ASX: STG).

Over the three years to 31 January 2024, its portfolio return averaged 13% per annum.

The business also pays an attractive dividend yield, which is a way for shareholders to receive returns without having to sell their shares.

The Bailador share price is trading at an 18% discount to its stated January 2024 post-tax net tangible assets (NTA).

The post Tech treasures: 2 undervalued ASX software stocks to watch in 2024 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments, Frontier Digital Ventures, REA Group, and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Bailador Technology Investments, Car Group, Frontier Digital Ventures, REA Group, and Seek. 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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Owning Westpac Banking Corp (ASX: WBC) shares has been rewarding for dividend income for a number of years. The ASX bank share may be attracting ASX income investors, so is it a good option?

Westpac is one of the largest businesses in Australia, with a market capitalisation of $90 billion according to the ASX. The Westpac share price has climbed more than 20% in the past three months. Despite the much higher valuation, it still offers a good dividend yield.

Westpac dividend forecast

The forecast on Commsec suggests Westpac could pay an annual dividend per share of $1.44 in both FY24 and FY25.

At the current Westpac share price, it means the cash dividend yield could be 5.5%, or a grossed-up dividend yield of 7.9%. That’s a lot more than what someone can get from a Westpac term deposit.

In FY26, the ASX bank share is forecast to pay an annual dividend per share of $1.46, which would amount to a cash yield of 5.6%, or 8%, when grossed up.

Should ASX income investors buy it?

It appears the bank is likely to pay a fairly consistent dividend over the next few years. Of course, a dividend payment is not guaranteed – that’s up to the board of directors to decide based on the level of profit.

Banks are currently facing a difficult environment with strong competition, rising arrears (amid higher cost of living) and lower demand for new credit.

The Westpac first quarter update showed it made $1.5 billion of net profit, which was down 6% on the FY23 second half quarterly average. Earnings per share (EPS) is expected to fall in FY24 and then fall again slightly in FY25.

Earnings usually drive a share price over the longer term, so the recent rally seems to be related to an increase in investor confidence rather than a positive outlook for profit in the medium term.

According to the prediction on Commsec, the Westpac share price is valued at 14x FY24’s estimated earnings.

To me, it now seems a bit pricey for the weak growth it’s expected to see in the next few years. I think there are other ASX dividend shares that can deliver stronger dividends and more growth in the next three years than Westpac.

The post Should ASX income investors buy Westpac shares for dividends? appeared first on The Motley Fool Australia.

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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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The Siteminder Ltd (ASX: SDR) share price has climbed 20% over the past six months. I think it’s one ASX small-cap share to watch for the long term, and there are good reasons why 2024 could be an exciting year.

Siteminder describes its software as “the only platform that unlocks the full revenue potential of hotels” and an “all-in-one hotel management software that makes the lives of small accommodation providers easier”.

It has offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London and Manila and generates more than 115 million reservations worth over $70 billion in revenue for its hotel customers annually, according to the company.

Strong growth

The company is seeing growth in a number of different metrics, which are all contributing to its overall growth. Proof of its success is coming out with the numbers.

It recently reported its FY24 first-half numbers which showed total revenue growth of 27.9% to $91.7 million, with subscription revenue rising 23.8% to $60.3 million and transaction revenue jumped 36.5% to $31.4 million.

Annualised recurring revenue (ARR) rose 27.2% to $182.5 million in the half-year update.

Siteminder advised the number of customer properties increased 13.7% to 41,600. More hotels boost the number of potential transactions that can occur.

But it will take a full 12 months for the business to display its 12-month revenue potential, so the next year already has more growth baked in for the ASX small-cap share.

The ASX small-cap share’s profitability is rapidly improving

Siteminder is still making negative cash flow, but the ratio to sales is rapidly improving and looks very promising. In the second quarter of FY24, it saw negative underlying free cash flow of 7% of revenue (being negative $3.1 million), which was an improvement from 28.4% in the same period last year.

The company expects to be profitable in the second half of FY24 for both underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and underlying free cash flow.

Siteminder pointed out that its growing margins reflected the scalability of the business and disciplined cost management.

The company’s rapidly growing revenue should help its profit margins in the coming years.

I think reaching breakeven could be a strong catalyst for the company.

Strong outlook

The business is steadily investing in creating new offerings for subscribers, which can help increase loyalty, deliver more growth for subscribers and create revenue for itself.

It’s targeting organic revenue growth of 30% in the medium term. Any business compounding at that rate for a number of years will naturally grow into a bigger company.

With an annual recurring revenue (ARR) of $182.5 million already, it appears to have a good growth outlook for at least the next 12 months.

While I wouldn’t call the ASX small-cap share cheap, I think it has lots of growth potential with its own financials and for shareholders.

The post I think this ASX small-cap share can soar in 2024 appeared first on The Motley Fool Australia.

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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 SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. 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 latest Berkshire Hathaway (NYSE: BRK.B) letter to shareholders was released at the weekend and contains more words of wisdom from Warren Buffett.

The good news for investors is that a lot of what the Oracle of Omaha said in his letter can be used to build wealth with ASX shares.

What did Warren Buffett say?

In his first letter since the passing of Charlie Munger, Buffett recounted one of the most important things he was told by his long-term business partner. He said:

Warren, forget about ever buying another company like Berkshire. But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices. In other words, abandon everything you learned from your hero, Ben Graham.

Buffett ultimately followed Munger’s advice and the rest is history. Since 1965, Berkshire Hathaway has grown its book value by an average of 19.8% per annum.

To put that into context, a single $100 investment in ASX shares 58 years ago would have grown into approximately $3.5 million today if it generated that level of return.

Anything else?

Buffett also spoke about picking winners when investing. This could be used by local investors when looking for ASX shares to buy.

Our goal at Berkshire is simple: We want to own either all or a portion of businesses that enjoy good economics that are fundamental and enduring. Within capitalism, some businesses will flourish for a very long time while others will prove to be sinkholes. It’s harder than you would think to predict which will be the winners and losers. And those who tell you they know the answer are usually either self-delusional or snake-oil salesmen.

As Buffett says, it is impossible to know which ASX shares will flourish over the long-term and which will flounder. But if investors build a balanced portfolio filled with high-quality companies with sustainable competitive advantages, they certainly put the odds more in their favour of success.

Let’s end now with one final quote from the letter. Buffett said:

One investment rule at Berkshire has not and will not change: Never risk permanent loss of capital. Thanks to the American tailwind and the power of compound interest, the arena in which we operate has been – and will be – rewarding if you make a couple of good decisions during a lifetime and avoid serious mistakes.

The post Here are Warren Buffett’s tips to becoming rich with ASX shares appeared first on The Motley Fool Australia.

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More reading

• No savings in 2024? I’d follow Warren Buffett and start building wealth
• What can ASX investors learn from Warren Buffett’s latest buys and sells?
• No passive income at 50? I’d use Warren Buffett’s methods to get rich
• How Charlie Munger used $1,500 to make a $107k-a-year passive income
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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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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) dividend has rewarded investors for many years, but can the mining giant maintain and increase its payouts over the next few?

BHP is one of the world’s largest diversified miners and Australia’s biggest ASX-listed company, with a market capitalisation of $224.5 billion. A significant dividend payer in Australia, not necessarily in dividend yield terms, BHP returns billions of dollars to shareholders in dividends each year.

The miner has decided on a minimum 50% dividend payout ratio, which means it typically pays a fairly generous amount.

But, it’s not a business that can rely on growing profit year after year. Let’s have a look at how big the dividend payouts could be in the next few years.

BHP dividend forecast for 2024

BHP recently reported its FY24 first-half result, which included a dividend payout ratio of 56%. Its dividend was US 72 cents per share. This represented a double-digit cut in percentage terms, though it still meant a payout of US$3.6 billion.

The reduced payout came after profit from operations was down 56% to US$4.8 billion, with weakness in nickel and Samarco.

But this is just half of what the 2024 annual payout will be, with the final dividend payout for FY24 landing in September.

The forecast on Commsec suggests the business could pay an annual dividend per share of A$2.40, which would be a grossed-up dividend yield of 7.7%.

Forecast for 2025

The further into the future forecasts go, the broader the range of potential outcomes, particularly with mining shares affected by the changing price of commodities. The iron ore price, for example, could be stronger or much weaker than it is right now.

On Commsec, the prediction is that BHP’s profit and dividend could be a bit lower than FY24. The miner is forecast to pay an annual dividend per share of A$2.21 in FY25. This would be a grossed-up dividend yield of 7.1%.

And for 2026?

The Commsec projection expects BHP profit and dividends to decrease again by a small amount in FY26.  

The company is forecast to pay an annual dividend per share of A$2.15 in the 2026 financial year. This would be a grossed-up dividend yield of 6.9%.

Foolish takeaway

BHP is expected to keep paying a solid dividend for the foreseeable future, but forecasts can change as quickly as commodity prices, so we’ll have to see how much the future aligns with those predictions.

The post Here’s the BHP dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Better buy: Fortescue or BHP shares?
• 3 ASX 100 and ASX 200 shares I’d buy now for a $1,820 passive income in 2024!
• Top brokers name 3 ASX shares to buy today
• Should you buy BHP shares following the miner’s half-year results?

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 on the lookout for some new ASX dividend shares to buy, then it could be worth considering the three listed below.

Here’s what analysts are saying about them:

Rio Tinto Ltd (ASX: RIO)

Rio Tinto could be an ASX dividend share to buy this week.

It is of course one of the world’s largest miners and the owner of a portfolio of world class operations across multiples commodities.

Goldman Sachs is very positive on the company and has a buy rating and $140.50 price target on its shares.

As for dividends, the broker is expected fully franked dividends per share of US$4.61 (A$7.03) in FY 2024 and then US$4.62 (A$7.05) in FY 2025. Based on the latest Rio Tinto share price of $124.40, this will mean yields of approximately 5.65% in both years.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs also believes that investors should be snapping up Telstra’s shares while they’re cheap.

Particularly given its low risk earnings and dividend growth over FY 2023 to FY 2025. Goldman has a buy rating and $4.65 price target on Telstra’s shares.

In respect to income, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025. Based on the current Telstra share price of $3.88, this equates to yields of 4.6% and 4.8%, respectively.

Transurban Group (ASX: TCL)

Finally, the team at Citi believes that Transurban could be an ASX dividend share to buy now. It is the toll road operator behind roads such as CityLink and Cross City Tunnel.

Citi currently has a buy rating and $15.90 price target on Transurban’s shares.

As for dividends, it is expecting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.38, this will mean yields of 4.7% and 4.85%, respectively.

The post 3 ASX dividend shares to buy before it’s too late appeared first on The Motley Fool Australia.

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More reading

• 3 of the safest ASX 200 dividend shares in Australia right now
• 3 ASX shares to buy and hold forever
• 25 ASX 200 shares with ex-dividend dates next week
• 5 reasons to buy Rio Tinto shares now
• These super-strong ASX 200 blue chip shares could deliver 20% returns

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

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