The Westpac Banking Corp (ASX: WBC) dividend will soon be allocated to investors. But, people need to own shares today if they want to receive it.

The ASX bank share recently announced its FY23 half-year result for the six months to 31 March 2023.

Westpac ex-dividend date

As announced earlier this week, the bank’s board decided to declare an interim dividend of 70 cents per share. This represented a year-over-year increase of 15%.

The ex-dividend date is 11 May 2023. Investors need to own shares before this date to be entitled to the upcoming dividend.

This means investors need to own Westpac shares by the end of today’s trading — 10 May 2023. So there are only a few hours left to ensure entitlement to that dividend.

However, many other investors may have the same idea – so don’t be surprised if the Westpac share price drops on 11 May 2023 by a similar amount to the dividend amount.

When will the Westpac dividend be paid?

Westpac has revealed it is going to pay the 70 cents per share dividend on 27 June 2023.

As such, shareholders will only need to wait a month and a half for the money to hit their bank accounts.  

Growth expected to slow

Westpac’s profit has benefited from the higher lending profits. The bank’s FY23 half-year net profit rose 22% to $4 billion.

However, the ASX bank share is expecting credit growth for both housing and business will slow. It’s expecting more stress in the period ahead, particularly for small business. Westpac noted that “intense mortgage competition is expected to negatively impact industry and Westpac’s margins in the next half”.

But, management believes its balance sheet strength will enable it to support customers and navigate any future economic challenges.

The bank said interest rates are closer to their forecast peak, but it’s focused on how long they stay high and what this means for household budgets and discretionary spending.

Westpac share price snapshot

Since the start of the month, the ASX bank share has dropped 4%.

The post Hoping to bag the boosted Westpac dividend? You’ll need to buy shares today appeared first on The Motley Fool Australia.

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More reading

• The Westpac share price could offer a 20% return: Goldman Sachs
• 5 things to watch on the ASX 200 on Tuesday
• Why Lynas, Piedmont Lithium, Westpac, and Woodside shares are rising
• Here’s what you need to know about the 70 cents Westpac dividend
• Westpac share price on watch amid $4bn half-year profit

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 Westpac Banking Corporation. 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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New Zealand accounting software provider Xero Limited (ASX: XRO) made many Australians wealthy last decade with a spectacular explosion of its share price.

But after topping the $150 mark in late 2021, the great technology sell-off over the past 18 months has been very unkind.

Xero shares are now trading at around the low $90s, as the business grapples with an investment market that no longer tolerates “growth at all costs” models.

So why would you buy Xero shares right now?

Here are three reasons you might consider:

1. Change in focus 

New chief executive Sukhinder Singh Cassidy started at Xero in February. Already by early March, she had changed its course.

For over a decade, the cloud software maker had been about gaining as many new customers as possible.

But Singh Cassidy announced that this relentless pursuit would now slow, in order for Xero to cut costs and become more profitable.

“As we aspire to build a higher performing global SaaS company and to enable Xeroʼs next phase of growth and drive better customer outcomes, we need to streamline and simplify our organisation,” she said in March.

“These changes, and our decision to reinvest in key strategic areas, will adjust our operating cost base as we balance growth and profitability, while taking a robust approach to capital allocation that supports long term value creation.”

The market has been a massive fan of this pivot, with the share price up more than 17% since that day.

2. Interest rate rises could be ending soon

One of the biggest reasons for the vicious sell-off in tech stocks has been the steep rise in interest rates since May last year.

But the torture is nearing the end, and that makes Shaw and Partners senior investment advisor Jed Richards bullish on Xero.

“Central banks may be nearing the end of interest rate tightening, as inflation shows signs of cooling,” he told The Bull.

“Consequently, expect a brighter outlook for the high-growth technology sector.”

3. Sticky product

A major plus for Xero is that its customers are in the business sector, rather than being end consumers.

Changing software used within a business is inconvenient at best and expensive at worst, both in terms of monetary cost and time wasted.

It’s not like a consumer switching smartphone apps.

This in-built client inertia is called “stickiness”, and Xero has a ton of it.

“Xero is a high quality cash generative business with impressive customer advocacy and duration,” read a recent Morgans memo.

“We see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the lifetime value of its current customer base.”

The post 3 compelling reasons to buy Xero shares right now appeared first on The Motley Fool Australia.

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More reading

• ‘High growth rate’: 2 ASX tech shares you need to look at right now
• 2 exciting ASX growth shares I’d buy and hold to 2030
• Morgans names more of the best ASX 200 stocks to buy in May
• Top brokers name 3 ASX shares to buy next week
• Nasdaq rebound! Brokers say these ASX 200 tech shares are buys

Motley Fool contributor Tony Yoo has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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House prices appear to have reached their bottom given two consecutive months of rises in the median Australian home value, according to independent data provider CoreLogic.

CoreLogic’s national Home Value Index (HVI) increased by 0.5% in April and 0.6% in March.

CoreLogic’s research director Tim Lawless says:

Not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming the positive shift.

Auction clearance rates are holding slightly above the long run average, sentiment has lifted and home sales are trending around the previous five-year average.

So what does this mean for ASX 200 building shares? Only good things, according to one expert.

What do rising house prices mean for ASX 200 shares?

Rising house prices are always positive for ASX 200 real estate shares such as property developers, real estate investment trusts (REITs), and other companies associated with the property sector.

These include building companies, building materials suppliers, and household furniture and appliance retailers.

Over the coming months, Jun Bei Liu of Tribeca Investment Partners expects ASX 200 building shares to benefit from higher home buyer demand and sales now that house prices appear to have bottomed.

As reported by The Sydney Morning Herald, Liu says:

The likes of Boral Limited (ASX: BLD), Stockland Corporation Ltd (ASX: SGP), and Mirvac Group (ASX: MGR) are going to see quite a bit of demand. It doesn’t mean earnings will return quickly, but the share price will move ahead of earnings for those builders.

Liu also singled out CSR Limited (ASX: CSR) shares to benefit from rising house prices and activity, too.

The CSR share price is already up 18% in the year to date. The Boral share price is up 40%, the Stockland share price is up 24%, and Mirvac shares are up 10%.

The share prices of other major ASX 200 building shares like James Hardie plc (ASX: JHX) and Brickworks Limited (ASX: BKW) are also up by 30% and 14% respectively.

As we previously reported, many brokers reckon James Hardie shares, in particular, were oversold in 2022.

Boral, CSR, Brickworks, and James Hardie are all ASX 200 materials shares. Stockland and Mirvac are diversified property development companies.

Liu points out that rising house prices have far-reaching benefits for the broader economy.

She says:

Ultimately, house prices rising is very good for the Australian economy because it’s such a big component that underpins consumer confidence, business confidence, and economic activity, and flows through to salaries, employment, and everything else. Most things will benefit from it.

Building activity in Australia has declined significantly over the past year due to rising interest rates, supply chain disruptions, and labour shortages in the construction sector.

The post 3 ASX 200 building shares that could rise now that house prices have bottomed appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• No savings at 40? Here’s how I’d aim to build a passive income of $3,000 a month
• What’s going wrong for ASX 200 share A2 Milk today?

Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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Woolworths Group Ltd (ASX: WOW) shares could be a strong buy according to one leading broker.

In fact, the broker is so positive on the retail giant that it has its shares on its coveted conviction list.

Who is bullish on the Woolworths share price?

The broker that is positive on Woolworths shares is Goldman Sachs, with a recent note revealing that its analysts have a buy rating and $42.80 price target on them.

Based on the current Woolworths share price of $38.55, this suggests that its shares could rise 11% from current levels.

Furthermore, the broker is forecasting a fully franked dividend yields of 2.7% in FY 2023 and 3% in FY 2024.

Why is Goldman tipping it as a buy?

Goldman is very positive on the Woolworths’ outlook and is expecting the company to deliver solid revenue and earnings growth in the coming years.

Its analysts highlight that their “updated forecasts imply FY22-25e ~3.4% sales CAGR and ~9.6% CAGR for EBIT/NPAT respectively.” The latter is particularly impressive for such a large, defensive company like Woolworths.

But where is this growth coming from? The broker believes the company’s loyalty program and omni-channel advantage will be the keys to its success. In addition, its ability to pass through cost inflation to customers is a big positive in the current environment. It explains:

We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock. Catalysts include 1H23 results with better-than-expected mix improvement to drive positive price and margins and a consistent demonstration of market share gains in FY23/24 that could lead to re-rating of the business vs COL/MTS.

The post Why Woolworths shares are a strong buy: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs names the high-quality defensive ASX shares to buy now
• Here’s what brokers are saying about the Woolworths share price post-Q3 update
• Top brokers name 3 ASX shares to buy today
• Volatility got you down? 3 steps to building a robust income from ASX 200 dividend shares

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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If you’re wondering whether BHP Group Ltd (ASX: BHP) shares are good value at $44.47, then it may be worth listening to what Goldman Sachs has to say on the matter.

According to a recent note, its analysts believe a lot of value is on offer with the Big Australian’s stock at present.

As a result, it has a buy rating and $49.90 price target on the miner’s shares.

But why is it positive on BHP shares? Well, summarised below are four key reasons why the broker thinks investors should be snapping up shares right now.

4 reasons to buy BHP shares

The first reason the broker is bullish on the mining giant is unsurprisingly its valuation, which is meaningfully lower than historical averages. It explains:

BHP is currently trading at ~5x NTM EBITDA, at a discount to the 25-yr average EV/EBITDA of ~6-7x, but above S32 on ~3x, RIO on ~3.5x, but below FMG on ~6x. BHP is trading at a discount to NAV at 0.9x (A$48.7/sh), in-line with S32 at ~0.9x NAV but at a premium to RIO at ~0.8x NAV. That said, we believe this premium vs. peers can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore), high returning copper growth, and lower iron ore replacement & decarbonisation capex.

Another reason to be positive on BHP shares is its commodity mix, which the broker believes is well-positioned in the current environment. It adds:

We remain bullish on BHP’s commodity mix: With iron ore fundamentals supportive into 2Q23, copper on growing deficits even with global growth risks and metallurgical coal on constrained global supply growth.

Goldman also sees opportunities to create value from the miner’s copper pipeline. It said:

We continue to believe BHP’s major opportunity (and challenge) is offsetting copper reserve depletion and grade decline in Chile from 2023 through investing in BHP’s copper reserves/resources (40Mt/200Mt) which are the largest globally. We include ~US$12bn of copper projects out of the >US$20bn we have identified, delivering 600-700ktpa of copper out of potential ~1.3Mtpa total (including OZL) pre depletion. We now forecast Cu Eq production (CAGR) of around ~2.5% over the decade (up from prior ~1.5%) with the OZL growth projects, which is now broadly in-line with peers RIO, S32 & FMG. RIO still has better near to medium term Cu Eq growth on our estimates (see Exhibit 7).

Finally, cash is king when it comes to investing and BHP is generating bucketloads of the stuff. Goldman commented:

From a FCF/DPS perspective, BHP is trading on a robust NTM FCF/DPS yield of c. 7%/6%, but below Buy-rated RIO (on CL) on 10%/7% & S32 on 13%/10%. We now see BHP’s minerals capex increasing to ~US$10.5bn by mid-decade (above peer RIO at ~US$9bn).

The post Analysts name 4 key reasons to buy BHP shares appeared first on The Motley Fool Australia.

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More reading

• Can copper be the next big boost for the BHP share price?
• Top brokers name 3 ASX shares to buy next week
• If I invest $10,000 in BHP shares how much passive income will I receive?
• Analysts name 2 ASX 200 dividend shares to buy for passive income
• 4 ASX 200 shares just upgraded by brokers

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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Even though lithium prices have cooled off over recent months, battery ingredients such as that and rare earths will remain in high demand in the long run.

This is especially because of one modern phenomenon.

“Lithium-ion batteries are not new — they’ve been powering laptops, mobile phone batteries, and even off-grid camping setups for some time,” Shaw and Partners portfolio manager James Gerrish said on Market Matters. 

“However, it’s the growth in electric vehicles that is driving the demand for this lightweight, high-energy-density input.”

If you’re spooked by the 70% pullback in lithium price over the past half-year, Gerrish reminded that it shouldn’t affect the long-term worthiness of those stocks.

“Commodities are cyclical… high prices incentivise new production that ultimately solves those high prices,” he said.

“While we cannot see lithium prices re-scaling the 2022 highs for many years, there is still plenty of opportunity.”

In fact, the sell-off has made it a tempting time to buy.

“Following a sharp correction, Market Matters believes the risk/reward in lithium & other related commodities has improved.”

Let’s take a look at the three ASX shares Gerrish nominated as the best buys in the battery materials space:

10% profit in 2 weeks? Yes, please

Pilbara Minerals Ltd (ASX: PLS) is the pick of the lot for Gerrish at the moment. He would use any daily dips to buy more.

“We recently bought Pilbara Minerals in the Flagship Growth Portfolio and are now sitting on a ~10% paper profit in around two weeks,” he said.

“We view Pilbara as the lower-risk exposure in a risky sector, where growing production will underpin growing earnings and dividends.”

He admitted the last guidance showed costs heading up for the lithium miner.

“Pilbara reported average realised price of US$4,840/t which was down 15% Q/Q and that theme will continue, but the margins for this early producer remain solid.”

The company’s financial position looks secure enough to keep pumping out the dividends.

“Their cash balance rose $457 million in the quarter, pushing their bank balance up to a net cash position of ~$2.7 billion. This will support fully franked dividends in the range of 5%.”

A more speculative punt for Gerrish is Global Lithium Resources Ltd (ASX: GL1), which he described as “a higher-risk exploration company with solid upside”.

“Global is a $400 million lithium exploration company that is not in production and is therefore not producing earnings,” he said.

“However, they are undertaking a large-scale exploration program at their Western Australia assets with good prospects in a solid area around Kalgoorlie.”

Recent test results were “encouraging”, he added.

“They are progressing through various stages of permitting and feasibility in their two operations.”

On the rare earths side, Gerrish is “long and bullish” on Iluka Resources Limited (ASX: ILU).

“They are advancing the Eneabba phase 3 project, which consists of the construction of the first integrated rare earths facility in Australia — and this remains on track.”

Iluka’s bread and butter is mineral sands, which doesn’t attract as high a valuation as rare earths producers.

But this is why it might prove to be a bargain buy right now.

“The proportion of their earnings that will come from rare earths in the future will increase meaningfully, from ~3% today to around 15% in the next 5 years.”

The post The 3 best lithium and rare earths ASX shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why Arafura Rare Earths, Imugene, Pilbara Minerals, and Worley are charging higher
• What’s with ASX 200 lithium stocks today?
• 5 things to watch on the ASX 200 on Tuesday

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

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If you’re looking for dividends, then you might want to check out the ASX 200 dividend shares listed below.

Both of these shares have recently been named as buys by leading brokers. Here’s what you need to know:

Macquarie Group Ltd (ASX: MQG)

The first ASX 200 dividend share that could be a buy is Macquarie.

Although the market didn’t respond overly positively to the investment bank’s full-year results this month, the team at Morgans remains a fan and appears to believe recent weakness has created a buying opportunity for investors.

In response to the result, Morgans has retained its add rating with a $201.80 price target. The broker commented:

MQG is a quality franchise, exposed to structural growth areas, and the company performed exceptionally well in a more difficult FY23 environment. With >10% share price upside to our price target, we continue to maintain our ADD recommendation.

As for dividends, the broker is expecting partially franked dividends of $6.33 per share in FY 2023 and $6.75 per share in FY 2024. Based on the current Macquarie share price of $177.43, this will mean yields of 3.55% and 3.8%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 dividend share that has been named as a buy is insurance giant QBE.

Analysts at Citi are positive on the company. This is due to its top line momentum, improving yields, and attractive valuation. The broker has a buy rating and $16.20 price target on its shares. It explains:

Top line momentum and improving yields remain attractive QBE’s FY22 result demonstrates strong top line momentum, a good part of which should continue into FY23E. Yields are also materially expanding and this should provide a strong boost to future earnings. […] With valuation still looking attractive too, we retain our Buy call, lifting our TP to A$16.20.

In respect to dividends, Citi expects QBE to pay a 61 cents per share dividend in FY 2023 and then a 71 cents per share dividend in FY 2024. Based on the latest QBE share price of $15.30, this equates to yields of 4% and 4.65%, respectively.

The post 2 top ASX 200 dividend shares to buy this week: brokers appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• ‘A quality franchise’: Why this broker sees major upside ahead for Macquarie shares
• Why Macquarie, Meteoric Resources, Pointsbet, and Syrah shares are falling
• Up 23% in the past year. Is it too late to buy this ASX 200 insurance share?
• Is the Macquarie share price good value following the bank’s results?

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

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Looking to buy some stocks to help you sleep better at night? Then, grab your pillow and cup of hot cocoa because we asked our Foolish writers which defensive ASX shares they think could deliver some sweet financial dreams right now.

Here is what the team came up with:

7 best defensive ASX shares for May 2023 (smallest to largest)

• The Reject Shop Ltd (ASX: TRS), $174.44 million
• Super Retail Group Ltd (ASX: SUL), $2.9 billion
• Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), $11.51 billion
• Coles Group Ltd (ASX: COL), $24.21 billion
• Newcrest Mining Ltd (ASX: NCM), $26.47 billion
• Transurban Group (ASX: TCL), $45.25 billion
• Wesfarmers Ltd (ASX: WES), $58.4 billion

(Market capitalisations as at market close of 9 May 2023).

Why our Foolish writers love these defensive ASX stocks

The Reject Shop Ltd

What it does: The Reject Shop is an Australian discount variety retailer. The company offers a range of consumer goods and merchandise at the lower end of the price spectrum.

By Bernd Struben: Inflation is still at 7% and likely to remain elevated into 2025. The RBA unexpectedly raised rates again last week. And I expect consumers will start feeling the pinch in earnest over the coming months.

That could offer some sales tailwinds for the Reject Shop’s low-priced merchandise. In its latest half-year results, the company reported a 3.5% year-on-year increase in sales and a 6.2% increase in net profits over the six months.

This is a small-cap ASX share for a defensive play. But I think consumers looking to stretch their dollar will support the share price. Shares are up 21% over the past 12 months. Management is hoping to return to paying regular dividends in the near future.

Motley Fool contributor Bernd Struben does not own shares in The Reject Shop Ltd.

Super Retail Group Ltd

What it does: Super Retail Group is a retail conglomerate housing four iconic brands that millions of Australians know and love – Supercheap Auto, Rebel, BCF, and Macpac. The company operates through an omnichannel approach across Australia, New Zealand, and Asia.

By Mitchell Lawler: If I’m looking to add a quality defensive stock to my portfolio, there are three criteria the company needs to meet: it needs to have a strong moat, boast an ironclad balance sheet, and be (at least somewhat) non-cyclical. 

In my opinion, Super Retail Group ticks all three boxes. The company owns multiple brands with exceptional recognition, operates through an enviable distribution network of more than 700 stores, and has a loyalty program with 9.7 million active members – these are all forms of a moat. 

Furthermore, the business is fortified with a clean balance sheet – zero debt and $212 million in cash at the end of 2022. That gives me confidence in Super Retail Group’s ability to ride out some challenging conditions. 

Lastly, I believe the stock is defensive in nature due to the necessity of transportation these days. The average vehicle age might surge as people clamp down on costs. This could drive increased demand for Supercheap’s replacement auto parts and accessories. 

Motley Fool contributor Mitchell Lawler does not own shares in Super Retail Group Ltd.

Washington H. Soul Pattinson and Co. Ltd

What it does: Soul Patts is an investment house and one of the oldest companies on the S&P/ASX 200 Index (ASX: XJO). It boasts a diversified portfolio of listed and private equities, property, and loans.

By Brooke Cooper: Investment house Soul Patts aims to hold a portfolio capable of outperforming the market over the longer term, no matter the economic environment. And it’s been successful historically.

The company’s flexible investment mandate has helped its share price soar nearly 490% over the last 12 years. That’s compared to a 150% rise in the All Ordinaries Index (ASX: XAO) over the same period.

The investment house has also upped its dividend every year since 2000. It currently boasts a 2.5% dividend yield.

Of course, past performance isn’t an indicator of future performance. But I think the built-in diversification and defensive nature of Soul Patts’ portfolio make it an attractive defensive ASX share to buy this month.

Motley Fool contributor Brooke Cooper does not own shares in Washington H. Soul Pattinson and Co.

Coles Group Ltd

What it does: Coles is one of the big two supermarket operators in Australia, with a growing collection of supermarkets and convenience stores.

By James Mickleboro: I believe Coles would be a great option for investors looking for defensive ASX shares in May.

Supermarkets play a vital role in our economy, regardless of conditions, and have the ability to pass on the effects of inflation to their customers. 

Furthermore, Coles has a strong market position and is investing heavily in automation. The latter is expected to make its operations more efficient and boost its online business.

All in all, I think this leaves Coles well-placed to grow its earnings and dividend at a decent rate long into the future, whatever happens in the economy. 

Motley Fool contributor James Mickleboro does not own shares in Coles Group Ltd.

Newcrest Mining Ltd

What it does: Newcrest Mining is the ASX’s largest gold mining company. It has extensive, long-life mines across Australia, as well as in Papua New Guinea and Canada.

By Sebastian Bowen: When it comes to defensive investing, I believe gold (and by extension, gold miners) can play a useful role.

As we have seen in 2023, gold prices tend to rise whenever there is an increase in geopolitical or financial instability. Many experts also believe gold is an effective inflation hedge.

Thus, having exposure to gold right now could be an effective way of hedging an ASX share portfolio against all kinds of threats.

If we end up seeing a recession this year or next, an ASX 200 gold stock could provide a valuable cushion.

It’s my opinion that Newcrest is an ideal candidate for this role, considering its size, scale, long mine life, and high gold reserves. Newcrest shares also pay a modest dividend too.

Motley Fool contributor Sebastian Bowen owns shares in Newcrest Mining Ltd.

Transurban Group

What it does: Transurban is one of the world’s largest toll road operators. It owns 17 roads in Australia, five in the United States, and one in Canada.

By Bronwyn Allen: Transurban recently released its Q3 FY23 traffic update and reported a record quarter, with average daily traffic of 2,397,000 trips. While you’d expect a year-over-year increase due to the end of COVID lockdowns (up 12.9% on Q3 FY22), a record quarter indicates more people are using their cars and that new roads in Transurban’s portfolio are boosting business.

The latter includes Sydney’s WestConnex M4-M8 link, which opened on 20 January and has seen usage exceed expectations.

One of the key reasons I believe Transurban is such a great defensive ASX share is that many of its tolls are linked to inflation. During the quarter, Transurban raised its toll charges on Sydney’s WestConnex and M5 West by 6.1% and 2.3%, respectively.

The toll on Brisbane’s AirportLink M7 increased by 7.9%. In Melbourne, tolls increase by 1.05% per quarter.

This provides useful protection for the company’s income (and dividends) in an inflationary economy. 

Motley Fool contributor Bronwyn Allen does not own shares in Transurban Group.

Wesfarmers Ltd

What it does: Wesfarmers operates a variety of businesses, including Bunnings, Officeworks, Kmart, Target, Priceline, and Wesfarmers chemicals, energy and fertilisers (WesCEF).

By Tristan Harrison: Many of Wesfarmers’ businesses, such as Bunnings and Kmart, are market leaders and aim to provide customers with great value.

I believe that in today’s inflationary, high-interest environment, these offerings will continue to resonate with households and enable Wesfarmers to perform better than its rivals. This could make it a good ASX defensive share to buy right now.

I also like that the company is looking to expand through acquisitions, which could open more growth avenues or improve scale and market share.

Furthermore, once operational, the Mt Holland lithium project has the potential to help Wesfarmers further diversify and significantly grow its earnings. 

Overall, I like the longer-term outlook for Wesfarmers shares.

Motley Fool contributor Tristan Harrison does not own shares in Wesfarmers Ltd.

The post Top defensive ASX shares to buy in May 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The Wesfarmers share price was in the red today despite green energy acquisition rumours
• Citi rates these ASX dividend shares as buys
• Which ASX retail shares could be ‘most impacted’ by Amazon’s rapid growth?
• 2 ASX dividend income beasts with impressive payout records

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, Super Retail Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had an underwhelming session. The benchmark index fell 0.2% to 7,264.1 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% lower this morning. On Wall Street, the Dow Jones was down 0.2%, the S&P 500 fell 0.45% and the Nasdaq dropped 0.6%.

Oil prices push higher

It could be a positive session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices staged a remarkable recovery overnight. According to Bloomberg, the WTI crude oil price is up 0.6% to US$73.60 a barrel and the Brent crude oil price has risen 0.4% to US$77.33 a barrel. Oil prices were down over 2% before rebounding amid news that the U.S. government plans to refill the nation’s emergency oil reserves.

Federal budget

A number of ASX 200 shares will be in focus on Wednesday after the Labour government unveiled the federal budget. Among the winners could be Fortescue Metals Group Ltd (ASX: FMG), which looks set to benefit from green hydrogen support, and Wesfarmers Ltd (ASX: WES) for several reasons. Its Officeworks business could benefit from small businesses being able to write off the value of new equipment worth up to $20,000, whereas Kmart and Target could benefit from low-income support.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price rose overnight. According to CNBC, the spot gold price is up 0.45% to US$2,042.5 an ounce. Traders appear to be betting that today’s inflation reading causes rates to rise and volatility and recession risks to increase.

CBA shares rated as a sell

The Commonwealth Bank of Australia (ASX: CBA) share price could be overvalued according to Goldman Sachs. This morning, the broker has reiterated its sell rating and $87.78 price target on the banking giant’s shares. Goldman notes: “Cash profit from continuing operations in 3Q23 of c.A$2.6 bn was up 10% vs. 3Q22 and run-rating c.1% behind what is implied by our 2H23E forecasts.”

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

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More reading

• The Wesfarmers share price was in the red today despite green energy acquisition rumours
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• No savings at 40? Here’s how I’d aim to build a passive income of $3,000 a month
• What’s going wrong for ASX 200 share A2 Milk 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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S&P/ASX 300 Index (ASX: XKO) shares have returned an average of 18.8% over the past five years.

Of course, some stocks have exceeded those gains while others have lost value over this time.

Below, we look at three ASX 300 shares that would have turned a $5,000 investment into $59,000, or much more, in just five years.

Can I borrow the keys to the time machine please?

The first ASX 300 share that’s had an absolutely stellar run over the five years is Silex Systems Ltd (ASX: SLX).

The tech company is primarily focused on developing its unique SILEX laser uranium enrichment technology as the next-generation technology for the global uranium enrichment industry.

With some major successes along the way, the Silex share price has gained 1,080% over the past five years. That would have seen my $5,000 investment grow into a whopping $59,000 today.

At the current share price, Silex Systems has a market cap of $805 million.

But that’s not even the biggest gainer among ASX 300 shares.

Another stock I’d snap up five years ago if I had access to a functioning time machine is Telix Pharmaceuticals Ltd (ASX: TLX).

The commercial-stage biopharmaceutical company is focused on developing diagnostic and therapeutic products to treat cancerous or diseased cells using targeted radiation.

With its own list of successful milestones over the past five years, the Telix share price has soared 1,425%. Meaning if you’d invested $5,000 in the stock in May 2018, you’d now be sitting on $76,250.

At the current share price, Telix Pharmaceuticals has a market cap of $3.5 billion.

Which brings is to…

The ASX 300 share shooting for the sky

If the Telix share price gain still doesn’t quite do it for you, stay in the past for just a moment longer and turn your attention to Liontown Resources Ltd (ASX: LTR).

Perhaps the best-known name on this list of top share gainers, Liontown is a mineral exploration and development company. In recent years, its primary focus has been developing high-quality lithium and tantalum projects in Western Australia.

Atop the miner’s exploration successes, the Liontown share price has enjoyed some gale force tailwinds amid rocketing lithium prices over the past few years. Prices for the battery-critical metal reached all-time highs late in 2022.

The ASX 300 share received another big boost this March after it received, and rejected, a takeover offer from NYSE-listed lithium giant Albemarle.

That’s helped propel the Liontown share price to an eye-popping gain of 9,500% in five years.

(Aren’t you glad you lingered in the past for another moment?)

That would see a $5,000 investment grow into a life-changing $480,000.

At the current share price, Liontown Resources has a market cap of $6.3 billion.

The post 3 ASX 300 shares that turned $5,000 into $59,000 or much more in 5 years appeared first on The Motley Fool Australia.

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More reading

• ASX lithium shares are off and racing today. What’s behind the boost?
• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 mining stocks leaping to new 52-week highs today
• Goldman Sachs is selling off its Liontown shares. Here’s the lowdown

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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