On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.3% to 7,639.2 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to end the week in a subdued fashion following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 is down 0.1%, and the NASDAQ is up 0.1%.

Oil prices surge

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a great finish to the week after oil prices surged overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$76.12 a barrel and the Brent crude oil price is up 3% to US$81.55 a barrel. Traders were buying oil after Israel rejected Hamas’ cease-fire proposal.

Megaport results

The Megaport Ltd (ASX: MP1) share price will be on watch today when the elasticity connectivity and network services interconnection provider releases its half year results. The company has already pre-released its results, reporting a 35% increase in revenue to $95 million and EBITDA of $30 million. All eyes will be on its guidance, which was unchanged despite the stronger than expected half.

Gold price edges lower

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a soft session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$2,048.3 an ounce. A stronger US dollar weighed on the precious metal.

REA remains a buy

REA Group Ltd (ASX: REA) shares are a buy according to analysts at Goldman Sachs. In response to the release of its half year results, the broker has retained its buy rating with a trimmed price target of $201.00. It said: “Revenue outlook very positive; pay-back on increased investment the key unknown.”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 picks I’d buy for my ASX share portfolio in February
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 shares making big moves on strong earnings
• Guess which ASX 200 stock is leading the share price gains in 2024?
• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today

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

from The Motley Fool Australia https://ift.tt/CAFSEHx

Owning Flight Centre Travel Group Ltd (ASX: FLT) shares used to be very rewarding for receiving dividends.

The appearance of COVID-19 in early 2020 was a setback for the world for many reasons, including its impact on travel demand. But if things continue going well, Flight Centre could soon become a good ASX dividend share to invest in again.

One of the five largest travel agencies in the world, Flight Centre operates more than 2,000 leisure, corporate and wholesale businesses in 11 countries. It has more than 450 stores across Australia, New Zealand, South Africa, Canada and the United Kingdom.

Can strong dividends return?

In FY19, the company paid an annual ordinary dividend per share of $1.58. At the current Flight Centre share price, that would translate into a cash dividend yield of 7.3% and a grossed-up dividend yield of 10.4%.

Things have changed a lot since then.

There are more Flight Centre shares on issue after the company’s capital raising to ensure its survival through COVID-19. Plus, it hasn’t been as profitable up until now because of all of the COVID-19 impacts.

However, there may be light at the end of the dividend-starved tunnel for Flight Centre investors.

At the end of FY23, it revealed a dividend of 18 cents per share. The dividends could be about to be much bigger.

The estimate on Commsec suggests the business could pay an annual dividend per share of 48 cents in FY24, which is the current financial year. That would be a grossed-up dividend yield of 3.2%.

In FY25, the annual dividend per share could grow again to 70.9 cents. This would equate to a grossed-up dividend yield of 4.7%.

While that’s not the biggest yield in the world, the ASX dividend share would challenge what we can get from savings accounts at the moment.

Can profit growth continue?

At its AGM, the company said it expected leisure and corporate sales growth in FY24 as both sectors progressed towards a full recovery, with that complete recovery expected late this year. This suggests a boost for FY25 as well.

Flight Centre advised it expected a stronger profit margin as the revenue margin increased and the cost margin decreased.

The company also noted there would be better market dynamics for travellers as competition and capacity improved.

Finally, IATA projections of 3.4% compound annual growth in passengers globally through to 2040 would prove to be a useful tailwind for the company.

Flight Centre share price snapshot

After a rise of almost 20% in the company’s shares in the past year, it’s currently trading at 16x FY25’s estimated earnings.

The post Is Flight Centre about to regain ASX dividend share status? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these ASX growth shares for 20% to 40% returns
• These are the 10 most shorted ASX shares
• How big will the Flight Centre dividend be in 2024?
• These are the 10 most shorted ASX shares
• Is now the time to buy Flight Centre shares for passive income?

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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6sbUpOE

Christmas and the holidays are wonderful times, but they also tend to be uncomfortably expensive. I know my own investing habits took a holiday of their own over the summer break.

But now that we’re well into February, many of us might find that we once again can spare a few dollars for our investing portfolios.

So if you’re fortunate enough to find yourself in this camp, here are two ASX share picks I’d be happy to add to my portfolio this February.

2 ASX share picks for February 2024

BetaShares Nasdaq 100 ETF (ASX: NDQ)

I’m continually amazed at how many managed funds that invest in international shares in Australia simply can’t beat the returns of a simple index like the NASDAQ-100 Index (NASDAQ: NDX).

The Nasdaq is one of the two major stock exchanges in the United States. It tends to house most of the famous US tech companies, which have proven to be the driving force behind its stunning returns.

On the ASX, ordinary investors have the opportunity to share in these returns through the Betashares Nasdsaq 100 exchange-traded fund (ETF). This fund holds portions of the largest 100 non-financial shares on the Nasdaq Index. That includes everything from Apple, Microsoft, Amazon and Alphabet to Meta Platforms, NVIDIA, Airbnb and Netflix.

This ETF’s numbers are just stunning. As of 31 January, investors have enjoyed an average annual return of 22.63% over the past five years. Those returns are not guaranteed in the future, of course.

But this ETF still gives us an easy avenue to invest in some of the best companies on the planet, making it a no-brainer ASX share pick this month for me.

REA Group Ltd (ASX: REA)

Many Australians might not know the name REA Group, but they’ve probably heard of this classifieds company’s flagship asset – realestate.com.au.

REA Group has experienced a big pullback this week, thanks to the company’s latest earnings report. As we went through yesterday, REA still reported an 18% rise in revenues over the six months to 31 December. It also revealed a 22% jump in profits and a 16% spike for its next dividend payment.

I’m not sure what spooked investors here. Sure, REA’s expenses did rise significantly over the period. But REA’s lead as the premier destination for property buyers, renters and sellers looks more unassailable than ever.

As such, I think this ASX 200 share is ripe for the picking as a buy-the-dip opportunity this February.

The post 2 picks I’d buy for my ASX share portfolio in February appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 8 popular ASX ETFs smashing new 52-week highs
• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today
• REA share price tumbles despite 22% profit jump
• 3 ASX ETFs for tech investors to buy and hold
• 5 things to watch on the ASX 200 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Airbnb, Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, and REA Group. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Airbnb, Alphabet, Amazon, Apple, Meta Platforms, Netflix, Nvidia, and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/V9WzmiZ

ASX index funds are becoming an increasingly popular option for investors. Exchange-traded funds (ETFs) allow investors to buy a whole group of shares or assets in a single investment.

But, investors shouldn’t just buy something because it’s popular – that could mean chasing a crowd and being late to the party, which could result in losses if someone overpays.

There are many compelling factors to like ASX index funds, and I’m going to outline some of my preferred reasons to like them below.

Low management fees

One of the best reasons to like ASX index funds is how low the costs are. The fund providers aren’t trying to do extensive analysis, outperform the market or other things that result in costs.

Simply copying an index, like the S&P/ASX 200 Index (ASX: XJO) or S&P/ASX 300 Index (ASX: XKO), can be done very cheaply. Active fund managers might charge 1% per annum, whereas an option like Vanguard Australian Shares Index ETF (ASX: VAS) has an annual management fee of 0.07%.

Lowering fees can make a big difference to the long-term returns. If $1,000 is invested in an ASX ETF for 20 years and it makes 9% per annum it would grow to $6,009. If it rose by 10% per annum, it becomes $7,227. That’s 20.27% better overall, simply because of a slight difference in return/fees.

Diversification

A lot of ASX index funds which are based on broad-based indices can offer pleasing diversification. It’s good not to have all one’s eggs in the same basket. If an ASX ETF is invested in plenty of different assets and businesses, I think this can reduce the risk.

Some of the ETFs that offer strong diversification with excellent holdings include iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Passive investing

Some investments take a lot of management. I’d guess that a lot of people would prefer for their investments to take up as little time and mental effort as possible.

There’s no need to try to manage ASX ETFs – it’s simply being invested in a particular share market and tracking whatever happens.

I think ASX ETFs are much easier to manage than a residential property, a farm or other things.

Regularly changing portfolio

One of the main advantages, in my opinion, is that an ASX ETF’s portfolio is regularly changing.

Plenty of businesses fall by the wayside over time, and staying invested in those businesses would be to our portfolio’s detriment, in my opinion.

The fact that the ASX index fund portfolios change means they include the upcoming winners and ensures they can still be long-term investments as they sell down poor-performing investments.

Imagine if the VGS ETF was still invested in the businesses that were the biggest 30 or 40 years ago – it wouldn’t have done anywhere near as well as it has.

I think this is one of the best reasons why ASX ETFs can make solid long-term returns.

Good performance

Plenty of the good ASX ETFs have delivered good long-term returns, which would help investors grow their wealth.

Over the long term, the ASX share market and global share market have returned an average of around 10%.

If an investor were able to invest $1,000 per month into ASX index funds and the ASX ETF delivered an average return per annum of 10%, it would turn into $687,000 in 20 years.

I think investing in ASX index funds can be a very useful wealth-building activity.

The post 5 reasons to buy an ASX index fund today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 8 popular ASX ETFs smashing new 52-week highs
• Should I buy the Vanguard Australian Shares Index ETF (VAS) now or wait for an ASX dip?
• How I’m investing in ASX shares for my child
• 4 quality ASX ETFs to buy in February
• These ASX income ETFs could be top buys

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 iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UdDPFeV

Popular furniture retailer Temple & Webster Group Ltd (ASX: TPW) hit a new 52-week high share price on Thursday amid Australian property values continuing to appreciate in the new year.

Harvey Norman Holdings Limited (ASX: HVN) and Nick Scali Limited (ASX: NCK) shares also smashed new 52-week highs today amid the S&P/ASX 200 Index (ASX: XJO) gaining 0.30%.

The Temple & Webster share price hit a new 52-week peak of $9.93 in intraday trading today. Nick Scali shares went to $15.20 apiece, and the Harvey Norman share price reached $4.65.

All three ASX retail stocks have increased substantially over the past six months by 48%, 39%, and 23%, respectively.

The 52-week highs come two days after the Reserve Bank (RBA) announced it was keeping interest rates on hold after its first board meeting for 2024.

How interest rates are impacting shares vs. property

Earlier in the week, we discussed how the changed outlook on interest rates was turbocharging shares vs. property in 2024.

We noted that ASX shares enjoyed a super-strong Santa Rally over November and December. This was driven mainly by surging US stocks due to optimism that the Federal Reserve would cut rates in 2024.

Then the ASX 200 hit a new record high last month after December quarter inflation came in lower than expected.

We also noted how unusual it was to see home values rising so strongly over 2023 when interest rates were still moving up. Traditionally, rising rates tamp down home values.

This strength in the property market appears to be continuing in 2024.

Firstly, there was more price growth in January. Then we saw a preliminary auction clearance rate of 74% on the first major auction day of the year.

Why has the property market been so strong?

Well, a lower-than-average number of homes for sale in many markets has definitely been a factor.

But more interestingly, there was more buying activity among cash buyers last year. Cash property buyers are obviously wealthy and therefore less impacted by rising rates and inflation.

People who buy homes with cash are typically one of three buyer types.

Foreigners buying a second family residence or investment. Expats returning home after making their fortunes overseas in low-taxing countries. Downsizers who have sold their family home and are purchasing a smaller property for retirement.

Why are these 3 ASX furniture retailers hitting new highs today?

We know there’s a correlation between how often Aussies buy furniture and how often they move house.

We also know that rising home values create a ‘wealth effect’ that can make people feel richer. This encourages them to buy discretionary goods and services that improve their lifestyles.

But at the same time, we have a cost-of-living crisis occurring in Australia. Not many middle-income families with mortgages are feeling wealthier right now. This is because their home loan repayments have risen faster than their home values, not to mention the cost of every household item has gone up.

During periods of high inflation, lower and middle-income households rein in their discretionary spending. This was probably a factor in luxury furniture seller Nick Scali revealing a 20% revenue dive and a 29% fall in net profit after tax (NPAT) for 1H FY24 earlier in the week.

But do you know what the Nick Scali share price did in response to these numbers?

It skyrocketed by 19.65% in one day to a (then) 52-week high of $14.37, which has been superseded today.

Why did that happen?

Well, the share market tends to look at what’s ahead of it rather than what’s behind it. So, maybe investors rushed to buy Nick Scali shares because they liked what they saw in the early sales numbers for 2H FY24.

Nick Scali said January written sales orders were up 3.6% on the previous year and noted this was “continuing the positive momentum of Q2 from the first half FY24”.

Perhaps investors are also positioning themselves in oversold retail stocks because they expect inflation to fall further and the RBA to start cutting rates later this year, as all of the Big Four banks predict.

Nick Scali was the first of this trio of ASX furniture retailers to report this earning season.

Temple & Webster will report next Tuesday, 13 February.

Harvey Norman has not yet announced a date for its 1H FY24 report. However, the company usually releases its numbers late in February.

The post Shares vs. property: 3 furniture retailers hit 52-week highs amid continually rising home values appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• This ASX All Ords stock is surging 6% amid multiple broker upgrades
• Here are the top 10 ASX 200 shares today
• Why Inghams, Janison, Myer, and Nick Scali shares are rising today
• Nick Scali share price rockets 19% on guidance beat
• History shows 2024 could be a big year for ASX 200 shares. Here are 3 to look at now

Motley Fool contributor Bronwyn Allen has positions in Harvey Norman and Nick Scali. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Nick Scali and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/W23xnL8

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX 200 shares making big moves on strong earnings
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• Liontown’s share price crash has cost its chair $641 million. What now?
• 3 ASX All Ordinaries shares rocketing over 10% today
• Guess which ASX 200 stock is jumping on a 95% profit surge

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

from The Motley Fool Australia https://ift.tt/6Lmh7el

Big, reliable dividends year after year? On the ASX, you can bank on ’em.

ASX income investors have loved ASX bank shares for their generous dividends for decades.

But the only bank among the Big Four that has a history of delivering both decent dividends and share price growth is Commonwealth Bank of Australia (ASX: CBA).

We’ll be hearing from CBA next Wednesday when the financial giant drops its 1H FY24 report and announces its interim dividend. The other three banks reported in late 2023.

So, what’s in store in terms of overall dividends from the Big Four ASX bank shares this year?

Which one will pay us the most passive income?

Let’s consult the experts.

Which ASX bank share will pay the best dividend this year?

In 2023, CBA shares paid $4.50 in annual dividends, fully franked.

The consensus forecast published on CommSec today is for CBA shares to pay exactly the same in 2024. Based on the current CBA share price of $115.71, this equates to a dividend yield of 3.89%.

In 2023, National Australia Bank Ltd (ASX: NAB) shares paid $1.67 in annual dividends, fully franked.

The consensus forecast is for NAB shares to pay just one cent more at $1.68 per share in 2024. Based on the current NAB share price of $32.39, this equates to a yield of 5.18%.

In 2023, ANZ Group Holdings Ltd (ASX: ANZ) shares paid $1.75 in annual dividends with partial franking.

The consensus from analysts is that ANZ will reduce its annual dividend in 2024 to $1.62 per share. Based on the current ANZ share price of $27.59, this would be a yield of 5.87%.

By the way, the ANZ share price hit a new 52-week high of $27.67 today.

In 2023, Westpac Banking Corp (ASX: WBC) shares paid $1.42 in annual dividends plus full franking.

Analysts have a consensus expectation of $1.44 per share in annual dividends from Westpac this year. Based on the current Westpac share price of $24.31, this would be a yield of 5.92%.

The Westpac share price also hit a new 52-week high of $24.40 on Thursday.

And the best payer will be…

Based on yield, Australia’s oldest bank, Westpac, will pay a better dividend than the other ASX bank shares in 2024.

In dollar terms, CBA shares will pay the most.

The post Which Big Four ASX bank share will pay the biggest dividend this year? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why has the Westpac share price just hit a 52-week high?
• 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
• CBA stock: What’s happening with the ASX 200 bank and Microsoft today?

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, and Westpac Banking Corporation. 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.

from The Motley Fool Australia https://ift.tt/PnS9zTc

S&P/ASX 200 Index (ASX: XJO) shares have gained a combined 12.5% over the past three years.

Now that’s not including the dividends that many of these companies pay out to their shareholders.

For that, we turn to the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date.

This tells us the accumulated value of ASX 200 shares has gained 27.2% over three years.

If I’d achieved benchmark matching gains then, a $10,000 investment in the full basket of 200 stocks would see me sitting on $12,720 today.

Not bad.

But it’s nowhere near the returns delivered by this star player.

This ASX 200 share has soared 409% in three years

The company in question is ASX 200 coal share Whitehaven Coal Ltd (ASX: WHC).

On 12 February 2021, I could have bought Whitehaven shares for $1.51 apiece. Or 6,622 with my $10,000 investment.

This was right about when thermal and coking coal prices began to surge. Coal prices then continued to rise to all-time highs in September 2022, following Russia’s invasion of Ukraine earlier in February 2022.

Despite coal prices coming off the boil since then, and the Whitehaven share price retracing from its own record highs, the coal miner is currently trading for $7.69 a share. That sees the ASX 200 share up an eye-popping 409%, and sitting on a net cash position of $1.5 billion.

That in turn would have seen the value of my 6,622 shares grow to $50,923.

And we haven’t yet factored in the four dividend payouts I would have received from Whitehaven shares over this period.

Over the past three years, the ASX 200 share has delivered a total of $1.15 per share in dividends.

Adding that back (assuming I kept the dividends in cash and didn’t reinvest them) my 6,622 Whitehaven shares purchased for $10,000 three years ago would be worth $8.84 apiece.

Or a total of $58,538.

Boom!

The post If I’d invested $10,000 in this ASX 200 share 3 years ago I’d have $58,538 today! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why EML, Jumbo, Mesoblast, and Whitehaven Coal shares are jumping today
• Why are Whitehaven Coal shares racing 7% higher on Friday?

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.

from The Motley Fool Australia https://ift.tt/w9PApNE

It’s shaping up to be another positive day for the S&P/ASX 200 Index (ASX: XJO) this Thursday.

After turning an early-week slump around yesterday, the ASX 200 looks set to double down on those gains, with the index currently enjoying a 0.53% rise up to 7,656 points. But let’s talk about two ASX 200 shares that are making even bigger moves today.

The Charter Hall Long WALE REIT (ASX: CLW) and Mirvac Group (ASX: MGR) prices are both soaring today. And it’s thanks to both REITs dropping their most recent earnings reports.

ASX 200 property stock reports a 17% drop in earnings

At first glance, there weren’t too many pleasing numbers in Mirvac’s results for the six months to 31 December – otherwise known as the first half of the 2024 financial year (1H24).

The property group reported an operating profit of $252 million for the period, a 17% drop from the same period last financial year. That translated into a statutory loss of $201 million for the ASX 200 share, though, thanks to some valuation writedowns.

Mirvac’s earnings per security (EPS) also fell 17% to 6.4 cents.

However, Mirvac also revealed that it expects its previous guidance of operating EPS of between 14 and 14.3 cents to hold for the full FY2024. It also told investors to continue to expect an annual dividend distribution of 10.5 cents per security.

Perhaps investors were expecting something worse. Today, Mirvac shares have bounced by a pleasing 5.27% to $2.26 each.

Charter Hall gets a thumbs up for downsizing

Next up, we have Charter Hall Long WALE REIT.

This morning, Charter Hall also revealed its earnings for the first half of FY2024. Similarly to Mirvac, this ASX 200 real estate investment trust (REIT) told investors that its operating earnings had declined 7.1% over the prior corresponding period to $94 million. Earnings per security also dropped by 7.1% to 13 cents, as was previously guided.

Thanks to valuation writedowns, Charter Hall also posted a statutory loss of $258.4 million.

However, perhaps investors are responding positively to this REIT’s asset sales. Charter Hall confirmed that it has been offloading assets recently, with $145.82 million worth of assets sold over the half-year. The REIT is also planning additional sales worth more than $500 million, presumably to reduce the trust’s leverage.

At present, the Charter Hall Long WALE REIT unit price is up a happy 3.6% at $3.88 a unit.

The post 2 ASX 200 shares making big moves on strong earnings appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• This ASX All Ords stock is surging 6% amid multiple broker upgrades
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/bFeQa5w

Some of Australia’s favourite ASX exchange-traded funds (ETFs) are tearing up the charts on Thursday.

Several ASX ETFs have hit new 52-week highs amid the S&P/ASX 200 Index (ASX: XJO) rising 0.5%.

Let’s check out eight of these outperformers today.

ASX ETFs hitting new 52-week highs today

Vanguard Msci Index International Shares Etf (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is up 0.70% to $118.76 at the time of writing. This ETF has bounced 22.8% higher over the past 12 months. Its 52-week high today was $118.99.

This popular ETF provides access to 1,500 of the world’s largest listed companies from 23 countries, excluding Australia. Among its largest holdings are Apple, Visa, and Eli Lilly and Co.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF (ASX: NDQ) is up 1.15% to $41.25. This ASX tech ETF has risen 45.7% higher over the past 12 months. Its 52-week high today was $41.31.

This ASX ETF buys you into the world’s best tech companies, including Amazon, Meta Platforms, and Nvidia.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is up 0.81% to $50.97. This ASX index ETF has risen 27.7% higher over the past 12 months. Its 52-week high today was $51.06.

The world’s greatest investor, Warren Buffett, famously said the best strategy for amateur investors to generate wealth through shares was to consistently buy an S&P 500 low-cost index fund.

Buffett said:

I think it’s the thing that makes the most sense practically all of the time. Keep buying it through thick and thin, and especially through thin.

Among the 500 companies included in this ETF are Amazon, Apple, Warren Buffett’s Berkshire Hathaway, and Tesla.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is up 1.12% to $52.35. This ASX ETF has risen 36.5% higher over the past 12 months. Its 52-week high today was $52.43.

QUAL was among the top-performing ETFs of 2023. Its concept is simple: invest in the world’s highest-quality companies based on key metrics such as high return on equity (ROE) and low debt. The fund holds about 300 companies, and three-quarters are US stocks.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The BetaShares Global Quality Leaders ETF is up 0.86% to $28.26. This ETF has risen 32.1% higher over the past 12 months. Its 52-week high today was $28.35.

This ASX ETF has the same concept as the one above. It chooses companies based on four metrics – return on equity (ROE), debt to capital, cash flow generation, and earnings stability. Two-thirds of the fund’s companies are US stocks. The others are from countries like Japan, the Netherlands and France.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF is up 0.17% to $12. This tech ETF has risen 44.1% higher over the past 12 months. Its 52-week high today was $12.06.

The HACK ETF gives ASX investors exposure to the rapidly growing global cybersecurity sector. Among its holdings are industry giants Accenture, Cisco, and Crowdstrike.

Vanguard Diversified High Growth INDEX ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF is up 0.86% to $62.04. This ETF has risen 9.1% higher over the past 12 months. Its 52-week high today was $62.11.

This ETF offers diversification in a pretty extreme way. You get exposure to about 16,000 ASX shares and international shares all in one transaction, for a single brokerage fee. The VDHG holds seven Vanguard index funds comprising 90% global and ASX stocks, and 10% bonds.

iShares Global Healthcare ETF AUD (ASX: IXJ)

The iShares Global Healthcare ETF is up 0.44% to $137.81. This healthcare ETF has risen 14.6% higher over the past 12 months. Its 52-week high today was $138.11.

The IXJ ETF is among the 6 global sector ETFs that delivered the best returns over the past five years. It tracks the S&P Global 1200 Healthcare Sector Index, so it has exposure to general healthcare stocks, biotechs, medical equipment suppliers, and big pharma. Its holdings include CSL Ltd (ASX: CSL), Ramsay Health Care Limited (ASX: RHC), Astra Zeneca, Johnson & Johnson, and Moderna.

In other news…

Several individual stocks are hitting 52-week highs today, including Westpac Banking Corp (ASX: WBC) shares which reached $24.40 today.

QBE Insurance Group Ltd (ASX: QBE) shares hit a new 52-week peak at $16.55, and Nextdc Ltd (ASX: NXT) reached $14.55.

Insurance Australia Group Ltd (ASX: IAG) shares hit a two-year high of $6.19 ahead of the company’s half-yearly report next week. Analysts expect IAG to almost double its dividend in 2024.

The post 8 popular ASX ETFs smashing new 52-week highs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX ETFs for tech investors to buy and hold
• 2 ASX ETFs I wish I’d bought for my portfolio
• How I’m investing in ASX shares for my child
• 4 quality ASX ETFs to buy in February
• Buy these fantastic ASX ETFs for passive income and growth

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. 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 Bronwyn Allen has positions in CSL, Vanguard Diversified High Growth Index ETF, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Accenture Plc, Amazon, Apple, Berkshire Hathaway, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CSL, Cisco Systems, CrowdStrike, Meta Platforms, Nvidia, Tesla, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended AstraZeneca Plc, Johnson & Johnson, and Moderna and has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, CSL, CrowdStrike, Meta Platforms, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Q5Nq92B