We’re now well into ASX earnings season, and yesterday, we got a look at ASX 200 energy generator and retailer AGL Energy Limited (ASX: AGL)’s books. What they contained was a delight for passive income investors.

This half-year report, covering the six months to 31 December, was an extremely popular one for ASX 200 investors. It resulted in AGL shares taking out the crown of yesterday’s top-performing ASX 200 stock. By market close, AGL was up 10.28% to $8.80 a share.

Today, AGL shares have cooled off slightly, and are currently down 1.76% to $8.64. But no one can deny it was a great day to be an AGL shareholder yesterday.

As my Fool colleague covered at the time, these results saw AGL post a whopping 358.6% rise in underlying profits after tax to $3.99 million. Although revenues fell 20.8% to $6.18 billion, underlying earnings per share (EPS) also rose by a stonking 359.7% to 59.3 cents.

The rises in revenues and profits were attributed to higher electricity prices and more stable energy markets.

In a move that will delight passive income investors, AGL, as a result, revealed an interim dividend for 2024 of 26 cents per share, unfranked.

That’s a massive 225% increase over last year’s interim dividend, which came to just 8 cents per share. It’s also a rise over the company’s final dividend of 2023, which was worth 23 cents per share.

This is obviously a huge move from this company for income investors. It takes AGL’s trailing dividend yield, which is currently sitting at 3.59%, and turns it into a forward dividend yield of 5.69%. Albeit unfranked.

So should income investors jump back into AGL shares?

Are AGL shares now a buy for passive income investors?

AGL’s move is a welcome one for anyone who loves a good dividend, to be sure. But I’m not tempted by AGL shares today.

Why? Well, this company’s divided performance over recent years has been nothing short of dreadful. Back in 2019, AGL forked out two dividends, as it did in 2023. But back then, investors were treated to an interim dividend of 55 cents per share. That was followed by a final dividend of 64 cents per share. Both payments came partially franked at 80%.

So while yesterday’s divided announcement was a step in the right direction, AGL is still nowhere near its glory days in terms of passive income.

The reason why AGL has been on struggle street since 2019 – in terms of profits, earnings and dividends – is because of uncertainty in the national electricity and gas markets which it operates within.

The electricity market in particular is still in the midst of a huge transition, as renewable energy replaces older fossil-fuelled power plants. AGL may have had a good half-year. But I’m not convinced that the messy regulations of an industry in upheaval won’t continue to be a drag on this company going forward.

Remember, this is a company that has burned shareholders badly in recent years. AGL fell from $23 a share in 2019 to a low of around $5.40 in late 2021.

As such, I’m staying away for now. Warren Buffett likes to say that he chooses six-inch bars to hop over, rather than 6-foot bars. AGL looks a lot higher than six inches from where I’m standing today. As such, I would need to see a consistent return to higher dividends before I’d consider a passive income investment in AGL shares today.

The post After tripling its dividends, is AGL a passive income share not to be missed? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• 3 ASX All Ordinaries shares rocketing over 10% today
• AGL share price rockets 15% after half-year profit surge
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Ava Risk Group Ltd (ASX: AVA) shares are on course to end the week on a high.

In morning trade, the ASX tech share was up 25% to 20 cents before being paused from trade.

Why is this ASX tech share rocketing?

The catalyst for this strong gain was news that the risk management technologies company has signed a major agreement with Telstra Group Ltd (ASX: TLS).

According to the release, AVA Risk has signed a Telstra Supply Agreement (TSA) that it believes establishes a substantial opportunity within the large and globally addressable telecommunications vertical.

Management notes that TSA is the culmination of 10 months of collaboration, including product trials with Telstra and its customers.

Those trials demonstrated the superior ability of its sensing technology to be deployed to Telstra’s existing fibre network to detect events and provide appropriate classification and reporting. It notes that this provides a rich source of data to Telstra, and effectively turns the existing fibre network into sensors.

The ASX tech share believes it is a clear demonstration of the adaptability of the company’s technology to adjacent applications, such as telecommunications, which opens significant new markets to the company.

Management has described it as a “significant milestone” for the company. Ava Risk CEO, Mal Maginnis, commented:

Signing a preferred supplier agreement with Telstra is a very significant milestone for Ava Risk Group. It underscores the strength of our market-leading solutions and is testament to our commitment to innovation to meet the evolving needs of our global client base. It clearly demonstrates that our sensing technology, which has evolved from security solutions, can be deployed to multiple applications. This collaboration cements our position as a trusted supplier, and we look forward to working extensively with Telstra.

With more than 5 billion kilometres of fibre optic cable deployed globally (as at 2022), the agreement with Telstra Group represents the entry into a large and attractive market vertical for Ava Risk Group’s technology.

Earlier this week, Maginnis vested 333,333 AVA Risk shares.

The post This tiny ASX tech share is leaping 25% after striking a deal with Telstra appeared first on The Motley Fool Australia.

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• 3 reliable ASX dividend shares to beat inflation
• Own Telstra shares? Here’s your half-year results preview
• 7 must-see results this ASX reporting season before buying or selling
• Falling yields? I’d buy these ASX dividend beasts for a beefed-up income in 2024
• Goldman Sachs says Telstra and these 6 ASX shares are buys

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 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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High-flying ASX uranium shares are having their wings clipped on Friday.

In morning trade, the industry is a sea of red as investors hit the sell button in a panic.

Here’s the state of play at the time of writing:

• Alligator Energy Ltd(ASX: AGE) shares are down 9% to 7.2 cents
• Bannerman Energy Ltd(ASX: BMN) shares are down 12% to $3.47
• Boss Energy Ltd(ASX: BOE) shares are down 12% to $5.28
• Deep Yellow Limited(ASX: DYL) shares are down over 13% to $1.45
• Paladin Energy Ltd (ASX: PDN) shares are down 8% to $1.31

Why are ASX uranium shares being hammered?

Investors have been selling off uranium stocks this morning in response to an update from one of the world’s largest uranium miners, Cameco Corp (NYSE: CCJ).

The US$19 billion miner released its FY 2023 results and revealed that its net earnings, adjusted net earnings, and cash from operations all more than doubled compared to 2022. This was driven by higher sales volumes and realised prices.

While this is a great result and would ordinarily get uranium investors excited, its production plans appear to have spooked them.

What’s going on?

As you may be aware, uranium prices have been surging recently amid concerns over the supply of the chemical element. This was caused by the world’s largest uranium miner, Kazatomprom, warning that its production could fall short of expectations over the coming years.

However, overnight Cameco revealed that it sees opportunities to increase production to take advantage of the strong demand. It said:

With the improvements in the market, the new long-term contracts we have put in place, and a pipeline of contracting discussions, our plan is to produce 18 million pounds (100% basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. We also plan to begin the work necessary to extend the estimated mine life at Cigar Lake to 2036. In addition, at McArthur River/Key Lake, we plan to undertake an evaluation of the work and investment necessary to expand production up to its annual licensed capacity of 25 million pounds (100% basis), which we expect will allow us to take advantage of this opportunity when the time is right.

This appears to have put a dampener on optimism that prices could remain sky high (or go even higher) in the near term, which is disappointing news for ASX uranium shares.

The post Why are ASX uranium shares getting thumped on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Why these 3 ASX 200 shares leapt into the Motley Fool’s headlines this week
• My top ASX uranium stock pick to cash in on production woes
• Why Capricorn Metals, Deep Yellow, Pinnacle, and Playside shares are jumping 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 recommended Cameco. 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 Boral Ltd (ASX: BLD) share price is on course to end the week on a high.

In morning trade, the building materials company’s shares are up 13% to a 52-week high of $6.10.

This follows the release of a strong half-year result.

Boral share price jumps on strong profit growth and guidance upgrade

Here’s a summary of how the company performed during the six months ended 31 December:

• Revenue up 9.4% to $1,839.9 million
• Underlying EBIT up 110.9% to $201 million
• Underlying net profit after tax up 143% to $138.6 million
• No interim dividend
• FY 2024 EBIT guidance upgraded

What happened during the half?

During the first half, Boral’s revenue increased 9.4% to $1,839.9 million. This was driven largely by strong price realisation, with volumes flat to slightly up on the prior corresponding period.

And thanks to a 520 basis-point improvement in its EBIT margin, Boral’s EBIT was up a massive 110.9% to $201.0 million. This margin improvement reflects a combination of higher revenue and rigorous cost management.

Finally, although the company’s underlying profit after tax increased by 143.9% to $138.6 million, the Boral board decided against paying a dividend. It advised that this was due to its low franking credit balance.

Management commentary

Boral’s CEO, Vik Bansal, was pleased with the company’s performance. He said:

I am pleased to report first half results that demonstrate the benefits of our operating model and our business improvement strategy. Our volumes were flat to slightly up on pcp, with an increase in quarry and recycling materials. We achieved good price realisation across all product lines, and this supported growth in net revenue. We also continued to reduce costs and instil operational efficiencies to offset input cost inflation. The combined improvements in price and cost efficiencies, together with a mix in volumes that were flat to slightly higher, enabled an EBIT margin of 10.9%, almost double pcp.

Outlook

Bansal advised that the company is expecting that its earnings will be weighted to the first half as per tradition. He said:

Boral’s earnings have historically been weighted towards the first half. While FY23 was a recent exception to this trend, with the introduction of a new operating model and strategy in 1H23, we expect to return to a typical first half weighting in FY24.

Nevertheless, the CEO expects the company’s EBIT to be stronger than previous guidance.

He now expects FY 2024 underlying EBIT to be in the range of $330 million to $350 million. This compares favourably to its previous guidance of $300 million to $330 million. It will also be a significant 42% to 51% increase on FY 2023’s EBIT of $231.5 million.

Following today’s gain, the Boral share price is now up 60% since this time last year.

The post Boral share price jumps 13% on massive profit growth and guidance upgrade appeared first on The Motley Fool Australia.

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• 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 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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Novonix Ltd (ASX: NVX) shares are having a strong finish to the week.

In morning trade, the battery materials technology company’s shares are up 20% to 74 cents.

This compares favourably to the ASX 200 index, which is currently up by a modest 0.1%.

Why are Novonix shares racing higher?

Investors have been buying the company’s shares after Novonix announced an agreement with leading electric vehicle (EV) batteries manufacturer, Panasonic Energy.

According to the release, the two parties have signed a binding off-take agreement for high performance synthetic graphite anode material to be supplied to Panasonic Energy’s North American operations from Novonix’s Riverside facility in Chattanooga, Tennessee.

Under the off-take agreement, Panasonic Energy has agreed to purchase at least 10,000 tonnes of anode material for its U.S. plants over the term of 2025-2028. In addition, during the term, if additional volumes are requested, Novonix will attempt to deliver the increased volumes.

The agreement is subject to Novonix achieving agreed milestones in respect to production qualification timelines.

Novonix CEO, Dr. Chris Burns, was pleased with the news. He said:

We are excited to announce the finalization of a binding off-take agreement with Panasonic Energy to become a supplier of key anode material for its North American based facilities. Off-take agreements with high-quality partners such as Panasonic Energy solidify NOVONIX’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy in the industry. We look forward to expanding our long-standing relationship with Panasonic Energy to support its growth efforts in North America.

Despite today’s strong gain, Novonix shares remain down by a disappointing 56% over the last 12 months.

The post Novonix shares jump 20% on Panosonic deal appeared first on The Motley Fool Australia.

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• Why is the Novonix share price on a rollercoaster 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 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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National Australia Bank Ltd (ASX: NAB) shares are under the spotlight after announcing a new CEO. Ross McEwan led an impressive turnaround of the ASX bank share and now he’s passing on the job to somebody else after a long career in financial and insurance services.

The NAB board of directors has decided on Andrew Irvine as the group CEO and managing director of the bank. He has been the group executive of business and private banking since 2020 and will take on the role starting 2 April 2024.

Why was Irvine chosen as the new NAB CEO?

The NAB chair Philip Chronican said Irvine has “key strengths” supporting the appointment, including “passion for customer service, success leading Australia’s largest business bank franchise, people leadership, risk management and international experience.”

Chronican also said Irvine’s expertise in digitisation, transformation and modernisation has created “significant benefits” for how the bank operates.

Before joining NAB, Irvine was head of Canadian business banking at the Bank of Montreal, one of the largest and oldest banks in Canada.  

Can the ASX bank share keep performing?

In my own eyes, Ross McEwan was the leading bank CEO in the industry and helped pick up the performance of NAB (shares).

However, that doesn’t necessarily mean that NAB isn’t going to do as well. Irvine was hired under McEwan and hopefully learned a lot from him. The business banking side of NAB has done very well, and Irvine’s leadership has been an important part of that.

Barrenjoey banking analyst Jonathan Mott said the choice was a “solid” move. Mott said in a note, according to reporting by The Australian:

Having been Group Executive Business and Private Banking since 2020, Andrew Irvine is well respected by the market. We view this as a solid appointment and there is no change to our investment thesis.

Ross McEwan has been well liked by the market, widely tributed for simplifying the business, ‘getting the basics right’, managing costs and building a strong balance sheet. We believe an internal candidate with international experience, hired by Ross McEwan, will be viewed well by the market.

We see NAB as relatively well positioned within the sector given the positive medium-term outlook for business banking. With the risk of a harder landing having reduced, the likelihood of losses within its SME book has decreased.

Citi analyst Brendan Sproules doesn’t think it will be easy for Irvine because of how high the bar is after McEwan’s leadership. Sproules said:

We think that the appointment of Andrew Irvine, current Group Executive Business and Private Banking, will be well received by the market.

While that is positive, it doesn’t escape the fact that Ross potentially had the strongest support out of any bank CEOs from the investor base.

Given NAB has achieved a strong re-rating in recent years from its strong execution and transparency, the bar has been set very high for Mr Irvine.

Coupled with conducive conditions in business banking, this allowed for a solid re-rating versus peers ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

Going forward, Mr Irvine comes in to the top role with the bar set very high and a much tougher environment for business banking, with slowing system growth.

Is the NAB share price a buy?

The broker Citi has a sell rating on NAB shares, with a price target of $25.79, which implies a possible fall of around 20% in the next year.

I personally wouldn’t call it a sell, but the loss of McEwan is a blow for NAB. Also, after a 14% rise since the start of December 2023, I wouldn’t call the share price cheap either. I want to hear from Irvine about his vision and ideas for NAB before calling it a strong buy, though I’d still prefer it to other ASX bank shares, for now at least.

The post What is the outlook for NAB shares under new CEO Irvine? appeared first on The Motley Fool Australia.

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• Which Big Four ASX bank share will pay the biggest dividend this year?
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• Buy ANZ and these ASX dividend stocks now
• Better ASX bank buy: ANZ or NAB shares?
• ASX news: ANZ share price hits new 52-week high

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Treasury Wine Estates Ltd (ASX: TWE) shares could be undervalued.

That’s the view of analysts at Goldman Sachs, which have been running the rule over the ASX 200 stock’s brand portfolio.

That broker highlights that its “NTA [net tangible assets] analysis suggests underlying brand portfolio undervalued.”

What is the broker saying about this ASX 200 stock?

Goldman has been busying calculating the value of the wine giant’s brand portfolio following the acquisition of DAOU for $1.7 billion.

It believes that the market is undervaluing its portfolio. It explains:

TWE is trading at last close of A$11.0/sh. Our December 2023 note discusses extensively our channel checks and scenario analysis of recently acquired DAOU. Our current SOTP values DAOU at Enterprise Value of ~A$1.7B, or Equity Value of ~A$1.2B post attributable net debt, vs. acquisition price net of debt at A$1.1B, and implies per share value of ~A$1.50/sh. As such, the current trading price of A$11.0/sh implies that the underlying business ex-DAOU is valued at A$9.50/sh. Against this, we calculate an NTA range (ex DAOU) of A$6.0-A$9.3/sh, with mid-point at A$7.7/sh, primarily reflecting inventory of ~A$5.7/sh and owned vineyard land holdings in ANZ and US of A$1.6/sh.

This implies that the market is valuing the underlying business at ~23% premium to NTA, attributable to a notable portfolio of luxury and premium brands, led by Penfolds. This is below our TP A$12.40/sh implied ~42% premium to NTA for the underlying TWE business. We believe that the next key event to watch will be China’s tariff review results, which per the announced duration of the process should be end-March 2024. Despite still challenging demand conditions, our channel checks suggest market share gains can be expected for TWE as smaller traders and brands cycle out of the market.

Double digit returns

In light of the above, Goldman has reiterated its buy rating and $12.40 price target on the ASX 200 stock.

This implies potential upside of almost 13% for investors over the next 12 months.

In addition, Goldman expects a 3.2% dividend yield in FY 2024, boosting the total potential return to approximately 16%.

The post The market is undervaluing this ASX 200 stock: Goldman Sachs appeared first on The Motley Fool Australia.

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• 5 ASX shares I think you can confidently invest $500 in right now
• ‘Long and bullish’: 2 classic ASX 200 shares to buy while they’re still cheap
• 3 top ASX 200 blue chip shares to buy in February
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 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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If you’re wanting some exposure to the mining sector, then it could be worth checking out the two ASX 200 mining stocks listed below.

These miners have just been named on Bell Potter’s favoured list for the month of February. Here’s what the broker is saying about them:

Arcadium Lithium (ASX: LTM)

Investors looking for lithium options may want to consider Arcadium Lithium. It is the lithium giant that was formed following the merger of Allkem and Livent Corp.

Bell Potter likes the company due to its diverse operations, robust balance sheet, and strong growth potential. It explains:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

Bell Potter has a buy rating and lofty $12.10 price target on its shares.

Regis Resources Ltd (ASX: RRL)

Another ASX 200 mining stock that Bell Potter is bullish on is gold miner Regis Resources.

It likes the company due to its Australia-based portfolio and growth opportunities. It also believes the company could become a takeover target in the future. It said:

As one of the largest ASX listed gold producers, we are attracted to its all Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

Bell Potter has a buy rating and $2.60 price target on its shares.

The post Lithium and gold: Bell Potter says these ASX 200 mining stocks are buys appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows
• 5 things to watch on the ASX 200 on Tuesday
• Fewer ASX IPOs in 2023, but here’s how they’ve performed
• Why AGL, Arcadium Lithium, Chalice Mining, and Nickel Industries shares are falling

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 ASX 50 index is home to some of the best companies that the Australian share market has on offer.

And while not all shares on the index are necessarily buys right now, two that have been given the thumbs up by Morgans are listed below.

Here’s why the broker thinks these ASX 50 shares are strong buys:

CSL Ltd (ASX: CSL)

Morgans believes this biotechnology giant is a great option for investors. Particularly given its positive earnings outlook and the discount its shares trade on compared to long-term average multiples. It explains:

While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.

Morgans has an add rating and $328.20 price target on its shares.

ResMed Inc (ASX: RMD)

Another ASX 50 share that could be a top option according to Morgans is sleep treatment focused medical device company ResMed.

The broker appears to believe weakness caused by weight loss drug concerns is a buying opportunity for investors. It commented:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $32.82 price target on ResMed’s shares.

The post Morgans says these ASX 50 shares are strong buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL. 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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Although inflation is easing, it is still around 4% on an annual basis.

This means that if you received a 3% dividend yield on your income portfolio, you would actually be losing money in real terms.

The good news is that there are reliable, buy-rated ASX dividend shares out there that offer potential yields that are greater than inflation. In addition, analysts see scope for them to generate decent capital gains for investors.

Here are three ASX dividend shares to consider buying:

Healthco Healthcare and Wellness REIT (ASX: HCW)

Bell Potter thinks that Healthco Healthcare and Wellness REIT could be an ASX dividend share to buy. It is a health and wellness focused real estate investment trust with a focus on hospitals, aged care facilities, and primary care properties.

The broker is expecting the company to pay dividends of 8 cents per share in FY 2024 and 8.3 cents per share in FY 2025. This represents dividend yields of 5.9% and 6.15%, respectively.

Bell Potter has a buy rating and $1.75 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Insurance giant Suncorp could be a good option for income investors.

Goldman Sachs thinks it is an ASX dividend share to buy and has put a buy rating and $15.00 price target on it.

As for dividends, the broker is forecasting fully franked dividends per share of 75 cents in FY 2024, 82 cents in FY 2025, and 85 cents in FY 2026. This will mean yields of 5.25%, 5.9%, and 5.95%, respectively.

Telstra Group Ltd (ASX: TLS)

Goldman Sachs also thinks that Telstra could be a reliable ASX dividend share to buy. In fact, it highlights that “the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.”

In respect to dividends, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024, 19 cents per share in FY 2025, and 20 cents per share in FY 2026. This represents yields of 4.5%, 4.75%, and 5%, respectively.

Goldman has a buy rating and $4.65 price target on Telstra’s shares.

The post 3 reliable ASX dividend shares to beat inflation appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX dividend shares with 5%+ yields
• Own Telstra shares? Here’s your half-year results preview
• 7 must-see results this ASX reporting season before buying or selling
• 3 ASX dividend shares for income investors to buy now
• Falling yields? I’d buy these ASX dividend beasts for a beefed-up income in 2024

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

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