S&P/ASX 300 Index (ASX: XKO) lithium stocks are enjoying a stellar run today.

The big push higher comes after significant weakness in the sector this calendar year as lithium prices have retraced sharply from November’s all-time highs.

But that weakness is nowhere to be found today.

Here’s how these ASX 300 lithium stocks are performing in afternoon trade on Tuesday:

• Allkem Ltd (ASX: AKE) shares are up 15%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 13%
• Liontown Resources Ltd (ASX: LTR) shares are up 63%
• Argosy Minerals Ltd (ASX: AGY) shares are up 14%
• Core Lithium Ltd (ASX: CXO) shares are up 14%
• Sayona Mining Ltd (ASX: SYA) shares are up 12%
• Allkem Ltd (ASX: AKE) shares are up 14%
• Leo Lithium Ltd (ASX: LLL) shares are up 12%

Why are these ASX 300 lithium stocks soaring today?

While all of the above ASX 300 lithium stocks are up over 10%, one of them stands out from the pack.

With shares up a whopping 63% today that would be Liontown Resources.

And that remarkable surge is throwing up some heady tailwinds for Liontown’s rivals.

So, why is the Liontown share price shooting out the lights?

What’s sending the Liontown share price rocketing?

Investors are bidding up the ASX 300 lithium stock after the company reported on a takeover proposal from United States-based lithium giant Albemarle Corporation (NYSE: ALB). Albemarle boasts a market cap of some US$25.7 billion.

The US lithium company lobbed an unsolicited, conditional, and non-binding proposal to acquire all of Liontown’s stock for $2.50 per share.

However, the Liontown board rejected the offer, believing it undervalues the quality of the company’s assets. Those include its core holding, the Kathleen Valley Lithium Project, which is nearing production.

According to Liontown, the project, located in Western Australia, “will be one of the world’s largest lithium mines, supplying approximately 500,000 tonnes of 6% lithium oxide (Li₂O) concentrate per year when it comes on stream in 2024”.

Albemarle’s $5.5 billion takeover offer shows clear enthusiasm about its mid and longer-term outlook for the battery-critical metal, giving a big leg up to all the above ASX 300 lithium stocks today.

The post 8 ASX 300 lithium stocks surging over 10% today appeared first on The Motley Fool Australia.

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More reading

• Why Chalice Mining, Core Lithium, Liontown, and United Malt shares are racing higher
• Here’s why the Sayona Mining share price is shooting 14% higher today
• 3 ASX 200 shares cracking multi-year highs on Tuesday
• Why are ASX lithium shares going gangbusters on Tuesday?
• Why is the Core Lithium share price rocketing 19% on Tuesday?

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

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The market may be charging higher today, but the A2 Milk Company Ltd (ASX: A2M) share price hasn’t been able to follow its lead.

In afternoon trade, the infant formula company’s shares are down 1.5% to $5.87.

Why is the A2 Milk share price underperforming?

The weakness in the A2 Milk share price on Tuesday has been driven by the release of a broker note out of Bell Potter this morning.

According to the note, the broker has downgraded the company’s shares to a hold rating with a reduced price target of $6.80.

While this still implies decent upside from current levels, the broker doesn’t appear to believe the risk/reward is compelling enough to retain its buy rating.

What did the broker say?

Bell Potter has been analysing the results and commentary from A2 Milk’s dairy processing partner Synlait Milk (ASX: SM1) and seems a touch concerned with what it saw.

The broker believes that A2 Milk could now be destined to fall short of consensus estimates in the near term. It explained:

The recent SM1 downgrade was reflective of changes to existing IMF customer orders, elevated cost structures (some of which is recoverable in customer agreements) and a delayed ramp-up of the new Pokeno nutritionals customer. What the SM1 result highlighted to us, was that our nutritionals forecasts for SM1 (and hence A2M IMF demand) have been softer than consensus expectations and this is also reflected in our below consensus FY24e A2M forecasts

We downgrade from Buy to Hold. Ultimately A2M and SM1 balance dates don’t align and SM1 issues may simply reflect restocking and destocking decisions on the part of A2M around SAMR registration. While we like the long-term story in A2M, we are cognisant that FY24e market expectations are higher than ours and unfortunately we saw more in the recent SM1 1H23 result to support our current forecasts than make us consider materially upgrading them.

The post Why is the A2 Milk share price underperforming on Tuesday? appeared first on The Motley Fool Australia.

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• Should I buy A2 Milk shares at $6?
• Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping
• A2 Milk share price slides amid $139 million buyback completion
• At almost $7, can the A2 Milk share price go any higher?
• What caused the A2 Milk share price to spill almost 6% in February?

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 recommended A2 Milk. 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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It’s been a positive day overall for ASX shares and the All Ordinaries Index (ASX: XAO) so far this Tuesday. At the time of writing, the All Ords has put on a happy 1.05%, lifting the Index back over 7,200 points. But that joy is not extending to one All Ordinaries stock. So let’s check out the Kingsgate Consolidated Limited (ASX: KCN) share price.

Kingsgate shares are having a shocker today. The All Ords gold miner closed at $2.01 a share yesterday but is now trading at $1.495 a share, a nasty 25.62% fall.

So what on earth is going on with this gold miner that has prompted investors to wipe a quarter of the company’s value off the markets today?

Kingsgate shares tank 25%

Well, Kingsgate shares have actually just returned from a trading halt. Yes, yesterday morning, just before market open, the company announced that its shares would be frozen. The purpose of this suspension was to allow Kingsgate to conduct a capital-raising program.

It was only on Friday last week that the gold miner told investors it had produced its first gold from its Chatree mine in Thailand. It’s the first pouring in six years.

Then on Monday, we got news of the trading halt. Kingsgate announced that it intended to conduct an institutional placement of shares. In fact, 30.7 million new shares are to be issued (equivalent to 13.9% of the shares on issue prior to the announcement).

The shares would be issued at a price to be determined by a bookbuild, somewhere between $1.50 and $1.60 per share.

The company also announced that a share purchase plan would also be available for retail investors following the placement. It will be offered at the same price that institutional investors were offered.

Why is this All Ordianries stock raising capital?

According to Kingsgate, the funds will be used to “successfully re-start operations at Chatree and strengthen Kingsgate’s balance sheet as alternative funding sources are secured”.

Well, today, we got the news of how it all went. The company reported that the placement was successful and raised $42 million for Kingsgate. The new shares have been issued at a price of $1.50 each. Retail investors can now apply for up to $30,000 in new shares at that price as well.

Kingsgate chair Ross Smythe-Kirk said the following on this news:

The strong support shown from both new Australian and international investors and existing shareholders in this Placement is a firm endorsement for the Company and its strategy. We are thrilled to be recommencing operations at Chatree and returning to production. 

We thank shareholders for their long-standing support and look forward to seeing Chatree once again become a meaningful ASX-listed gold producing project.

Kingsgate was evidently only able to raise its new capital at the lower end of its pricing target. As such, we probably have this news to thank for Kingsgate’s less-than-triumphant return to trading today.

This isn’t a large ASX share, so with the offer of the share purchase plan on the table, there probably aren’t too many investors willing to pay over $1.50 a share for Kingsgate right now.

This All Ordinaries stock is now down by 14.3% in 2023 to date:

The post Guess which ASX All Ordinaries stock just crashed 25% appeared first on The Motley Fool Australia.

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More reading

• Why Atlas Arteria, Kingsgate, Kogan, and Synlait Milk shares are dropping today
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher
• Sigma Healthcare share price falls despite company’s return to profit
• 2 ASX All Ordinaries shares rocketing over 10% today
• Why Corporate Travel Management, Kingsgate, Liontown, and Neuren shares are racing higher

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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There are plenty of blue chip ASX 200 shares to choose from on the Australian share market.

But three of the best, according to analysts at Morgans, are listed below. Here’s why the broker rates these blue chips highly:

Macquarie Group Ltd (ASX: MQG)

The first ASX blue chip share that could be a buy according to Morgans is investment bank Macquarie. Its analysts are very positive on the company’s long term outlook thanks to its exposure to structural growth markets. It explained:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

The broker has an add rating and $214.51 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Due to its attractive valuation compared to peers and its strong earnings growth potential, Morgans believes that this wine giant could be a quality ASX 200 blue chip option for investors. It commented:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $15.05 price target on the wine company’s shares.

Westpac Banking Corp (ASX: WBC)

Finally, Australia’s oldest bank could be a great ASX 200 blue chip share to buy according to Morgans. Its analysts are bullish due to Westpac having the best return on equity improvement potential among the big four. It explained:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Its analysts have an add rating and $25.80 price target on Westpac’s shares.

The post Morgans says these are some of the best blue chip ASX 200 shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Should I use the banking crisis as an opportunity to pounce on Macquarie shares?
• Investing in ASX 200 banks for dividends? Read this
• Will the turmoil among global banks trigger a stock market crash?
• Treasury Wine share price lifts even as new UK tax ‘makes a mockery’ of free trade deal

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Australia has recommended Treasury Wine Estates and Westpac Banking. 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 S&P/ASX 200 Index (ASX: XJO) is on form again on Tuesday. In afternoon trade, the benchmark index is up 1.05% to 7,035 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price is down 2.5% to $6.30. This has been driven by the toll road operator’s shares going ex-dividend on Tuesday for its final dividend. Eligible shareholders can look forward to receiving the company’s 20 cents per share unfranked dividend next month on 6 April.

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate share price is down 25% to $1.50. This follows the completion of the Thailand-based gold miner’s institutional placement this morning. Kingsgate has raised $46 million at an issue price of $1.50 per new share. The proceeds will be used primarily to fund plant 2 commissioning and working capital costs.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 4% to $3.69. This is despite there being no news out of the struggling online retailer. Though, it is worth noting that Premier Investments Limited (ASX: PMV) released its results yesterday and revealed a decline in online sales. Investors may believe this doesn’t bode well for Kogan’s performance, particularly given the unrelenting competition from Amazon.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is down a further 8% to $2.01. Investors have been selling this dairy processor’s shares since the release of its half-year results yesterday. Synlait had a tough half and reported an 83% decline in net profit after tax to NZ$4.8 million. This reflects operational stability and cost challenges, which have impacted its performance.

The post Why Atlas Arteria, Kingsgate, Kogan, and Synlait Milk shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Why Lake Resources, Latitude, Synlait, and Woodside shares are falling today
• Guess which ASX All Ords stock is plummeting following an 80% profit dive
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher
• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today
• 2 ASX All Ordinaries shares rocketing over 10% 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 Kogan.com. The Motley Fool Australia has positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Premier Investments. 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 Woodside Energy Group Ltd (ASX: WDS) share price is up 4.9% in early afternoon trade on Tuesday.

Shares are currently trading for $33.01 apiece.

That’s a sharp turnaround from Monday when the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed down 3.4%.

So, why is the Woodside share price having such a volatile start to the week?

Why all the volatility?

Monday wasn’t just a big down day for the Woodside share price. Most ASX 200 energy shares ended the day deep in the red.

Investors were hitting the sell button amid news that the Labor government had reached a deal with the Greens on the carbon reduction plan.

The deal doesn’t ban new oil and gas projects, as proposed by the Greens. But it was reported that the big energy companies will need to spend billions of dollars more on offsets and carbon capture technology on new projects to meet the new emissions reduction goals.

Commenting on the development that looks to have thrown up headwinds for the Woodside share price yesterday, Samantha McCulloch, CEO of gas lobby APPEA said (quoted by The Australian Financial Review):

New gas supply investment needs policy and regulatory certainty but instead, the Labor-Greens deal creates additional barriers to investment, further diminishing the investment environment and adding to the growing list of regulatory challenges facing the sector.

Which brings us full circle to the surging Woodside share price today.

Investors are snapping up shares after an increase in the oil price.

Brent crude oil leapt 4.2% overnight to US$78.12 per barrel. Brent is currently trading for US$77.87 per barrel.

The oil price is rebounding as investor fears over the banking crisis gripping the United States and Europe are receding.

“Crude is experiencing a nice bounce today as a sense of calm in financial markets has stemmed the bleeding of liquidations across the crude complex,” Rebecca Babin, a senior energy trader at CIBC Private Wealth said (quoted by Bloomberg).

Oil also got a boost from reports that ructions between Iraqi Kurdistan and Turkey have cut some 400,000 barrels a day of crude exports after a pipeline was shut down by a court order.

Woodside share price snapshot

As you can see on the chart below, the Woodside share price remains down 7% in 2023 as energy prices retrace from last year’s highs.

The post Why has the Woodside share price had such a volatile start to the week? appeared first on The Motley Fool Australia.

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More reading

• Why Lake Resources, Latitude, Synlait, and Woodside shares are falling today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why is the New Hope share price up 5% and leading the ASX 200 today?
• Why is the Woodside share price rising at its strongest rate in almost 6 months?

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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CSL Limited (ASX: CSL) is the market’s most expensive company on a share price basis, with each of its stocks setting an investor back $286.18 at the time of writing.

But it’s recently come off a peak. The CSL share price has dumped around 9% since posting a 15-month high in February, topping out at $314.28.

The company operates its Behring medicines business, its Vifor nephrology leg, its Seqirus influenza vaccines operation, and its plasma collection business.

And many brokers are tipping those businesses to grow amid rising demand, a productive research and development pipeline, and increasing plasma yields.

Indeed, one expert is forecasting the CSL share price to gain 22%. Though, not all are so bullish.

Could that mean the S&P/ASX 200 Index (ASX: XJO) biotechnology giant is finally a no-brainer buy? Let’s take a closer look.

CSL share price hit hard by COVID-19

The CSL share price surged around 100% between 2018 and 2020. However, such growth slowed amid the onset of the pandemic.

Efforts to reduce the spread of COVID-19 saw the company’s plasma collections tumble. Meanwhile, it embarked on an ultimately unsuccessful mission to create a vaccine for the virus.

It also underwent the $16 billion acquisition of Vifor, for which it completed a $6.3 billion capital raise in 2021.

Looking forward

Fortunately, things look to have bounced back for the ASX 200 company.

It posted record plasma collection last half, helping it achieve a US$1.6 billion profit. That’s expected to come in at between US$2.7 billion and US$2.8 billion for the full year.

It’s forecasting growth in plasma collections while its Hemgenix gene therapy product is expected to be launched in the United States shortly.

Finally, the integration of Vifor is said to be well advanced with delivery of synergies on schedule.

 Is CSL a buy right now?

 So, is CSL a no-brainer buy at its current share price?

Top broker Citi appears to think so. It has a buy rating and a $350 price target on the stock, my Fool colleague James reports. Citi tips the company’s growth to be born from rising demand and a productive pipeline.

Meanwhile, Macquarie is expecting big things from the company’s plasma collection yields, slapping CSL stock with an add rating and a $340 price target.

Rounding out the bulls is Morgans. It tips the stock to rise to $337.92 and has branded it with an add rating.

But not everyone is quite so hopeful.

Goldman Sachs is neutral on CSL shares, predicting that they’ll rise to $314. The broker remains unsure of the company’s path to margin recovery and is unconvinced of its valuation.

The post Does the CSL share price fall finally make it a no-brainer buy? appeared first on The Motley Fool Australia.

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• Why these 3 ASX 200 shares could be leading picks for dividends and growth
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• Want to boost your portfolio with ASX blue chips? Analysts say buy these shares
• Top brokers name 3 ASX shares to buy today
• Does the CSL share price really offer 22% upside right now?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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 CSL and Goldman Sachs Group. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is heading in the right direction again. At the time of writing, the benchmark index is up 1.1% to 7,035.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 8% to $6.77. Investors have been buying this mineral exploration company’s shares after it released a mineral resource update. Chalice revealed that drilling and re-modelling have resulted in a ~50% increase in the contained nickel equivalent metal to approximately 3Mt. Impressively, this still only represents 7% of the Julimar Complex strike length.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 15% to 90 cents. This follows news that one of its ASX lithium peers has received a takeover proposal from an industry giant. Investors appear to see this as evidence that ASX lithium shares have been oversold.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 63% to $2.49. As you might have guessed, this is the lithium share that has received a takeover approach. The lithium developer received a non-binding $2.50 per share offer from Albemarle (NYSE: ALB), which has been swiftly rejected by the Liontown board. This is the third approach the company has rejected.

United Malt Group Ltd (ASX: UMG)

The United Malt share price is up 31% to $4.51. This has also been driven by takeover news. However, on this occasion, the maltster is willing to accept the offer from French rival Malteries Soufflet if it becomes binding. It has tabled a $5.00 per share offer, valuing the company at $1.5 billion. This followed three previous offers that were rejected by United Malt.

The post Why Chalice Mining, Core Lithium, Liontown, and United Malt shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Sayona Mining share price is shooting 14% higher today
• 3 ASX 200 shares cracking multi-year highs on Tuesday
• Why are ASX lithium shares going gangbusters on Tuesday?
• Why is the Core Lithium share price rocketing 19% on Tuesday?
• Why is the Pilbara Minerals share price rebounding 14% 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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Commonwealth Bank of Australia (ASX: CBA) shares are up 1.1% as we head into the lunch hour on Tuesday.

That’s broadly in line with the 1.2% gains posted by the S&P/ASX 200 Financials Index (ASX: XFJ) at this same time.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $95.07. Shares are currently trading for $96.12 apiece.

At that price, CommBank has a market cap of $162.4 billion, easily holding its own as Australia’s largest financial institution.

That’s today’s CBA share price action for you.

Now, here’s what could be the ASX 200 bank’s next acquisition.

What acquisition is being considered?

In news unlikely to have a material impact on CBA shares today, The Australian reports that the big four bank is carrying out exclusive due diligence to potentially acquire ScotPac.

Citing unnamed sources, the article said that CBA and ScotPac were in takeover discussion last year as CBA aims to increase its footprint in small and medium-sized enterprises (SMEs) lending.

Neither ScotPac nor CBA commented on the acquisition rumours.

If you’re not familiar with ScotPac, the company was established back in 1988.

According to its website, “ScotPac is Australia and New Zealand’s largest specialist provider of working capital solutions with a comprehensive range of invoice finance, asset finance and trade finance facilities.”

The company supports more than 5,000 businesses and has funded $27.3 billion of invoices over the past 30 years.

With CBA remaining mum about the potential acquisition, shareholders will have to wait and see how this unfolds.

How have CBA shares been tracking?

As you can see in the chart below, CBA shares came under selling pressure alongside the broader market in mid-February.

Year-to-date the CBA share price is down 6%.

Over the longer term, the ASX 200 bank has gained 31% in five years. And bear in mind, these figures don’t include CBA’s twice-yearly dividend payouts.

The post Own CBA shares? This could be the banking major’s next acquisition appeared first on The Motley Fool Australia.

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More reading

• How much do I need to invest in ASX shares for $100 in weekly passive income?
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Investing in ASX 200 banks for dividends? Read this
• Will the turmoil among global banks trigger a stock market crash?
• A director is buying up CBA shares. Should you?

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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It’s a well-known fact that many, if not most, ASX shares pay their investors dividends on a regular basis. Name a prominent blue-chip ASX share, and chances are they will be giving their investors passive income in dividend form.

That’s certainly the case for everything from Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) to JB Hi-Fi Ltd (ASX: JBH) and Telstra Group Ltd (ASX: TLS).

But how much would you need to gain yourself a meaningful stream of secondary, passive income? Say $100 per week?

Well, let’s answer that right now.

The answer is somewhat complicated because every ASX share pays out a different dividend and thus offers a different dividend yield. Most ASX shares pay bi-annual dividends, so investors get a paycheque every six months. But some do quarterly, or even monthly, dividends.

So $100 per week works out to be $5,200 per year.

Thus, one would need $100,000 in a dividend-paying share with a 5.2% yield to gain $100 a week in dividend income.

But let’s use some real-life examples. Sure, you could start with CBA. Commonwealth Bank shares currently have a dividend yield of 4.37%. This means you would need to have around $119,000 invested to get $100 per week in income.

Or else JB Hi-Fi. It’s currently boasting a dividend yield of 8.36%, meaning you would only need just over $62,000 for that same level of income.

But we’ll use an ASX-wide exchange-traded fund (ETF) for our analysis, since this gives a more accurate representation of what income the entire share market produces for investors.

How much do you have to invest in ASX shares for $100 a week in passive income?

So over the past 12 months, the Vanguard Australian Shares Index ETF (ASX: VAS) has doled out $6.36 in dividend distributions per share. This index fund covers every share on the ASX 300 Index (all 300 of them), so this dividend payment is a reflection of the income that these 300 shares have generated over the past year.

On current pricing, this trailing dividend record gives this ETF a distribution yield of 7.22%. So we would have needed around $72,000 invested to get our $100 per week.

But dividends from ASX shares change all the time. To illustrate, this ETF only paid out $3.42 in dividend distributions per unit over 2021. That would work out to a yield of almost half of what we had in 2022 – 3.88%.

Thus, if that was our yield, we would need around $130,000 invested to get the same dividend cash flow.

So it’s hard to pinpoint an exact number to get a consistent yield of $100 per week from ASX dividend shares. But one thing is certain: if you choose quality shares, your income will go up over the long term.

The post How much do I need to invest in ASX shares for $100 in weekly passive income? appeared first on The Motley Fool Australia.

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More reading

• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Investing in ASX 200 banks for dividends? Read this
• Will the turmoil among global banks trigger a stock market crash?
• Does the fall in the Vanguard Australian Shares Index ETF share price make it a no-brainer buy?
• A director is buying up CBA shares. Should you?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. 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 Australia has recommended Jb Hi-Fi. 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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