• 2 fantastic ETFs for ASX investors to buy this month

    The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it

    The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it

    If you would like to make some investments but aren’t sure which ASX shares to buy, you could look at exchange traded funds (ETFs) instead.

    But with so many to choose from, which ETFs could be buys right now?

    Two that could be top options are listed below. Here’s what you need to know about them:

    Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

    The first ETF for investors to look at is the Vanguard All-World ex-U.S. Shares Index ETF.

    The VEU ETF brings the world to your portfolio by given you access to approximately 3,500 companies listed in developed and emerging markets across the globe (excluding the United States).

    Vanguard highlights that this can expand a portfolio to include many sectors not well represented in Australia. It also complements a portfolio with overweight exposure to local investments. That’s because the largest country allocations are Japan, China, United Kingdom, France, and Canada, with Australia accounting for only 5% of the exposure.

    Among its holdings you’ll find a diverse group of shares including HSBC Holdings, Samsung, LVMH Moet Hennessy Louis Vuitton, Sony, Taiwan Semiconductor, Tencent, Toyota, Astra Zeneca, and Roche Holdings.

    Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

    Another ETF for investors to consider is the Vanguard Australian US Total Market Shares Index ETF.

    This could be a good option if you would prefer to gain exposure to the United States rather than the globe. That’s because this low-cost and diversified ETF provides investors with access to some of the largest companies listed in the United States.

    Vanguard highlights that it allows investors to participate in the long-term growth potential of US listed companies. The fund manager sees it as a top option for buy and hold investors seeking long-term capital growth, some income, and international diversification.

    Among the companies included in the ETF are the likes of Amazon, Apple, Boeing, CostCo, JP Morgan, Starbucks, and Walmart.

    The post 2 fantastic ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

    “Cornerstone” ETFs for building long term wealth…

    Scott Phillips says plenty of people who hear the ‘ETFs are great’ story don’t realise one important thing. Not all ETFs are the same — or as good as you may think.

    To help investors navigate this often misunderstood area of the market, he’s released research revealing the “cornerstone” ETFs he thinks everyone should be looking at right now. (Plus which ones to avoid.)

    Click here to get all the details
    *Returns as of March 1 2023

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

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  • Want passive income? Analysts say you can get 6%+ yields with these ASX dividend shares

    A man smiles as he holds bank notes in front of a laptop.

    A man smiles as he holds bank notes in front of a laptop.

    If you are searching for ASX dividend shares to buy, then you may want to check out the two high yield option listed below.

    Here’s why analysts are bullish on them:

    Charter Hall Long WALE REIT (ASX: CLW)

    The first high yield ASX dividend share that has been named as a buy is Charter Hall Long Wale REIT.

    It is a property company focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

    The team at Citi is positive on Charter Hall Long Wale REIT. Its analysts highlight its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

    The broker expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.23, this will mean yields of 6.6% and 6.85%, respectively.

    Citi currently has a buy rating and $5.00 price target on its shares.

    Westpac Banking Corp (ASX: WBC)

    Another ASX dividend share that analysts have named as a buy is Westpac.

    Goldman Sachs is very bullish on the banking giant and believes its exposure to rising interest rates and the bank’s major cost cutting plans will support strong earnings and dividend growth in the coming years.

    The broker is forecasting fully franked dividends per share of 147 cents in FY 2023 and 156 cents in FY 2024. Based on the current Westpac share price of $21.33, this will mean yields of 6.9% and 7.3%, respectively.

    Goldman also sees plenty of upside potential for its shares and currently has a conviction buy rating and $27.74 price target on them.

    The post Want passive income? Analysts say you can get 6%+ yields with these ASX dividend shares appeared first on The Motley Fool Australia.

    Looking to buy dividend shares to help fight inflation?

    If you’re looking to buy dividend shares to help fight inflation then you’ll need to get your hands on this… Our FREE report revealing 3 stocks not only boasting inflation-fighting dividends…

    They also have strong potential for massive long-term returns…

    See the 3 stocks
    *Returns as of March 1 2023

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    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 recommended 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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  • Should ASX 200 banks pay more for this implicit government backstop?

    Macquarie profit results asx banks represented by banker imagining rising profits

    Macquarie profit results asx banks represented by banker imagining rising profits

    S&P/ASX 200 Index (ASX: XJO) banks closed the day in the red on Thursday.

    The big five bank stocks, which includes Macquarie Group Ltd (ASX: MQG), came under pressure following the latest interest rate hike from the US Federal Reserve.

    Here’s how these ASX 200 banks performed on Thursday, a day that saw the benchmark index slide 0.67%:

    • Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed down 0.39%
    • National Australia Bank Ltd (ASX: NAB) shares closed 1.5% lower
    • The Westpac Banking Corp (ASX: WBC) share price closed down 0.47%
    • Commonwealth Bank of Australia (ASX: CBA) shares closed down 0.11%
    • Macquarie shares closed down 1.78%

    ASX 200 banks may also be facing some pressure after US Treasury Secretary Janet Yellen said the US government isn’t discussing providing deposit insurance to every bank, potentially leaving smaller US banks in the lurch.

    Yellen added that bank runs “may more readily happen now”.

    ASX 200 banks too big to fail?

    As for ASX 200 banks, the nation’s biggest banks enjoy an implicit guarantee from the Australian government (meaning us taxpayers) that they’ll be bailed out if that need should arise.

    This is separate from the Financial Claims Scheme, which guarantees deposits up to $250,000 per account holder at all authorised deposit-taking institutions (ADIs).

    As The Australian Financial Review (AFR) reports, the bank levy on the big four banks and Macquarie raised almost $1.6 billion for the government in 2022.

    A 0.06% tax is levied on the banks’ funding sources. It came into being in 2017 as a way to have the ASX 200 banks chip in for the privilege of any bailout. It’s an entitlement that comes with being ‘too big to fail’.

    Now, with the banking crisis gripping the United States and Europe, Australia’s smaller banks think that levy should be reviewed.

    Time to raises the levy?

    Representatives of the smaller banks think the ASX 200 banks should possibly pay a higher levy. This comes as their own funding costs are on the rise in the current environment, making fair competition with their larger rivals more difficult.

    According to CEO of the Customer Owned Banking Association Mike Lawrence (quoted by the AFR):

    There are arguments to review [the levy] in the current environment. There is evidence to show they are not paying the full amount of the benefit they get from it. In the current environment, there is an argument to say it is too low.

    Pointing to the fallout in bond markets from the UBS takeover of Credit Suisse, Lawrence added:

    Funding costs will go up as a result of this, and potentially the differential between large bank funding costs and smaller lenders will widen.

    Funding costs for smaller lenders relative to bigger ones are disproportionately impacted because having the implicit guarantee potentially puts them in a better position to raise funds at a lower cost. That should be reflected in the fee that they pay to the government.

    Whether or not the ASX 200 banks will be hit with a higher levy remains to be seen.

    The post Should ASX 200 banks pay more for this implicit government backstop? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of March 1 2023

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended 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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  • ‘Big buy’: Wilson’s 2 surprisingly defensive ASX shares to cruise through 2023

    Two mature women learn karate for self defence.Two mature women learn karate for self defence.

    With so much uncertainty about the economy, inflation and interest rates swirling about, “defence” seems to be the new buzzword among ASX shares.

    While the term defensive shares can evoke images of dour investments offering anaemic growth in return for protection of capital, that doesn’t necessarily have to be the case in reality.

    In fact, Wilsons equity strategist Rob Crookston recently talked about what his team calls “growth defensives”.

    “The focus portfolio holds a selection of high-quality, high-margin, defensive businesses with strong competitive advantages, pricing power, and relatively attractive long-term growth prospects,” Crookston said in a memo to clients.

    “We believe these companies are likely to grow their earnings faster than the market over the medium term, which should translate to outperformance over time.”

    Now, without confusing Wilsons with Wilson Asset Management, experts from the latter this week named two ASX shares to buy that fit the bill:

    ‘Lipstick effect’ in full swing

    As a non-surgical cosmetic services provider, Silk Laser Australia Ltd (ASX: SLA) is not a name that immediately comes to mind when talking about defensive stocks.

    But Wilson equity dealer William Thompson has seen it differently, calling it a “big buy”.

    “They had a really interesting last half because no one really believed their story,” Thompson said in a Wilson video.

    “[The market] thought the cosmetics business was probably more discretionary, and it’s really showed that it’s defensive.”

    Thompson cited what economists call the “lipstick effect”, which is when consumers still buy feel-good goods and services through tougher economic times.

    “These products, they’re actually quite defensive because… when there is potentially a recession, they still want to look good and still want to spend money on themselves.”

    Silk Laser’s growth numbers impressed Thompson during the recent reporting season.

    “They posted a 20% sales increase half-on-half, and nearly 45% EBITDA increase half-on-half, so it’s looking really good,” he said.

    “Like-for-like sales are up 10% for the first seven weeks of the year. So it’s definitely a buy.”

    Thompson’s peers largely agree, with 4 out of 5 analysts currently surveyed on CMC Markets rating Silk Laser shares as a buy.

    The Silk Laser share price has roughly halved over the past year.

    ‘Pricing momentum is going to continue’

    As the world’s largest pallet and crate provider, Brambles Limited (ASX: BXB) probably better fits the traditional definition of a “defensive” stock.

    Indeed while other non-mining shares have struggled, Brambles has soared more than 38% over the past 12 months. This is all while paying out a handy 2.6% dividend yield.

    Wilson equity analyst Anna Milne called it a buy, while admitting that the share price has already had a good run.

    “We do think the pricing momentum is going to continue,” she said.

    “The focus on profitability is only going to grow over the coming year.”

    Milne, however, did raise a caveat that recently popped up.

    “Given all the market volatility, it’s around anything that’s earning US dollars,” she said.

    “So that’s a watch for us, but operationally, Brambles is still a buy.”

    According to CMC Markets, 11 out of 17 analysts are rating the stock as a buy.

    The post ‘Big buy’: Wilson’s 2 surprisingly defensive ASX shares to cruise through 2023 appeared first on The Motley Fool Australia.

    FREE Beginners Investing Guide

    Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

    For over a decade, we’ve been helping everyday Aussies get started on their journey.

    And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

    Yes, Claim my FREE copy!
    *Returns as of March 1 2023

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    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 recommended Silk Laser Australia. 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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  • Buy these 2 ASX health-tech shares that are ready to rocket: Wilson

    Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

    The health sector is seen by many experts as one that could remain resilient through times of economic distress.

    After all, people may cut out dining out or buying a new sofa, but they will still want to remain physically and mentally well.

    And with interest rate rises now biting Australian consumers hard, that scenario is well and truly in play.

    Here are two ASX shares involved in healthcare that Wilson Asset Management analysts are rating as buys at the moment:

    ‘Momentum is really strong’

    The Aroa Biosurgery Ltd (ASX: ARX) has amazingly rocketed almost 46% over the past 12 months, over a time when few non-mining stocks can even claim to be in the black.

    Wilson equity dealer William Thompson reckons that trend will continue, calling it a buy.

    “It posted a really good sales update in January,” Thompson said in a Wilson video.

    “They’re a New Zealand-based company… They have about seven different products which they’re selling in the US.”

    Aroa Biosurgey is involved in a joint venture with US partner TELA Bio Inc (NASDAQ: TELA), whose reporting next week could prove to be yet another catalyst for the ASX stock.

    With a March year end, Aroa’s annual result is not far away.

    “The momentum is really strong for the company, so it’s a buy.”

    Thompson’s peers unanimously agree, with all five analysts surveyed on CMC Markets currently rating Aroa Biosurgery as a buy.

    This stock could go anywhere now that supply problems are waning

    Resmed CDI (ASX: RMD) has been an old favourite for health investors for decades now, but the share price has struggled in recent times.

    Over the past 18 months the stock has lost more than 21% of its value.

    According to Wilson equity analyst Anna Milne, the troubles for the business are temporary.

    “They’ve been really struggling to get [computer] chips,” she said.

    “Now as the broader demand for electronics wanes in this more challenging environment, [Resmed] will find it a lot easier to get these semiconductor chips.”

    So once that supply problem is fixed, the sky’s the limit for the sleep apnoea device market leader.

    That’s because its nearest rival, Koninklijke Philips NV (AMS: PHIA), was forced out due to a safety recall just under two years ago. 

    “With their major competitor Philips still largely out of the market, and will at least be distracted for a few years, we think Resmed is a great company at a fair valuation.”

    The post Buy these 2 ASX health-tech shares that are ready to rocket: Wilson appeared first on The Motley Fool Australia.

    FREE Investing Guide for Beginners

    Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

    For over a decade, we’ve been helping everyday Aussies get started on their journey.

    And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

    Yes, Claim my FREE copy!
    *Returns as of March 1 2023

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    Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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  • Copper’s so hot right now: Expert names best ASX mining stock to buy

    Concept image of man holding flames in both hands.Concept image of man holding flames in both hands.

    Lithium has been the hot commodity among stock investors in recent years, but ASX investors are reminded that’s not the only material required to make batteries.

    Copper has been used for centuries as a conductor of electricity and is required in significant amounts for both electronic circuitry and batteries.

    Maqro Capital head of trading Mark Gardner pointed out last month that there’s currently an over-reliance on one particular region to supply copper to the world.

    “The two biggest global producers of copper are Chile and Peru. Together, the South American powerhouses make up 43% of the world supply,” Gardner posted on Livewire.

    “They also happen to be in political disarray.”

    So any copper producers outside that part of the planet may do pretty well in the coming years.

    Last man standing on the ASX

    For Wilson Asset Management equities dealer William Thompson, the planets have aligned for Sandfire Resources Ltd (ASX: SFR).

    “They’ve got some strong cash flow coming through next year,” he said on a Wilson video.

    “That’s on the back of the Botswana asset, which is nearly into production.”

    Red Leaf Securities chief John Athanasiou agreed with Thompson earlier this month, saying copper is “a critical element in producing batteries for electric vehicles”

    “Copper is a dominant revenue stream for Sandfire,” he said.

    “It produced more than 48,000 tonnes of copper in the first half of fiscal year 2023.”

    The Sandfire share price has risen an amazing 78% since October.

    The company’s Spanish operations have much upside, according to Thompson.

    “I think it’s starting to get more de-risked as we go into the year,” he said.

    “At today’s valuation it’s a buy.”

    Gardner said that Sandfire Resources is “one of the last large cap copper plays left on the ASX”.

    “Given the strong copper price dynamics, we see strong potential for the company to exceed revenue expectations.”

    The post Copper’s so hot right now: Expert names best ASX mining stock to buy appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Sandfire Resources Nl right now?

    Before you consider Sandfire Resources Nl, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sandfire Resources Nl wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of March 1 2023

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    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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  • 5 things to watch on the ASX 200 on Friday

    A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.

    A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.

    On Thursday, the S&P/ASX 200 Index (ASX: XJO) tumbled deep into the red. The benchmark index fell 0.7% to 6,968.6 points.

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

    ASX 200 expected to fall again

    The Australian share market looks set to end the week on a subdued note following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is flat, and the NASDAQ index is up 0.7%.

    Oil prices tumble

    Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.5% to US$69.53 a barrel and the Brent crude oil price is down 1.45% to US$75.59 a barrel. Traders appear concerned that rising rates could hurt the global economy and weigh on demand.

    Block hit by short seller attack

    The Block Inc (ASX: SQ2) share price is likely to crash lower today after the payments company was hit by a short seller attack. Hindenburg Research, which recently went after the Adani Group, claims that the company’s flagship Cash App product facilitates crime and lacks strong compliance controls.

    Gold price charges higher

    Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price charged higher overnight. According to CNBC, the spot gold price is up 2.5% to US$1,998.4 an ounce. Traders were buying gold on the belief that the US Federal Reserve may pause its rate hikes.

    Dividend payday

    A number of ASX 200 shares will be paying their latest dividends on Friday. This includes energy companies AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG), lithium miner Pilbara Minerals Ltd (ASX: PLS), and health imaging technology company Pro Medicus Limited (ASX: PME),

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of March 1 2023

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Pro Medicus. The Motley Fool Australia has positions in and has recommended Block and Pro Medicus. 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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  • Telstra shares: Bull vs. Bear

    ASX gold inflation gold bull figurine standing on stock price charts representing rising asx share priceASX gold inflation gold bull figurine standing on stock price charts representing rising asx share price

    Telstra shares have outperformed the S&P/ASX 200 Index (ASX: XJO) in the year to date.

    The telco’s share price has delivered an exceptional 6% return since the start of the year.  By comparison, the benchmark ASX index is barely keeping its head above water so far in 2023, up by 0.3%.

    Telstra is the top communications share by market capitalisation on the ASX and has long been a reliable blue-chip share. However, over the past month, Telstra shares have traded sideways, closing at $4.19 a share on Thursday.

    So is now the time to pounce on the telco behemoth, or could there be trouble ahead?

    Let’s take a look at what two Foolish team members had to say about the bull and bear case for Telstra shares.

    The bull case for Telstra shares

    By Monica O’Shea: I am long-term bullish on Telstra shares based on multiple strengths.

    Firstly, Telstra appears to be focused heavily on growth and making progress on its T25 strategy. On the network side, Telstra‘s 5G network is the largest in Australia and covers 81% of the population, close to the company’s FY23 target of 85% of the population.

    Telstra’s CEO Vicki Brady sees the mobile business as central to the company’s T25 growth. Further, Telstra’s InfraCo assets may deliver value for shareholders in the future, some experts predict. Infraco could be worth about $22 to $23 billion, according to Goldman Sachs.

    Secondly, Telstra shares could be trading at a discount if analysts are correct. High-profile brokers, including Goldman Sachs, see significant growth in the telco’s share price. Goldman has a buy rating on Telstra with a $4.60 price target, while Morgans can see Telstra shares reaching $4.70.

    Thirdly, Telstra’s half-year results were solid on a number of key metrics. In 1H23, Telstra’s earnings before interest, taxes, depreciation and amortisation (EBITDA) soared 11.4% and total income grew 6.8%. Telstra’s net profit after tax (NPAT) lifted 25.7% in 1H23 compared to the prior corresponding half. This could bode well for the future.

    Fourthly, the Telstra dividend is extremely reliable and, in fact, has increased in the past year. Telstra maintained its dividend during COVID and this year lifted its interim dividend to 8.5 cents per year, 6.25% more than the prior corresponding half. Telstra also delivered an 8.5 cents per share final dividend last year.

    Overall, I see the Telstra share price as a safe share to invest in over the long term.

    The bear at the other end of the line 

    By Mitchell Lawler: I want to provide a caveat to my bearish stance before we get underway. Telstra, as a business, is rather impressive. The service it provides to Australians, particularly in regional and remote areas, is unrivalled. However, there are plenty of ‘impressive’ companies that fail to have the makings of an outperforming investment. 

    One of my main gripes with Telstra is that the real crown jewel of the company is its mobile network. The rest of the business – including Fixed and InfraCo – offers marginal growth, if not erosion, to the company’s EBITDA. 

    There is a chance that management will look to sell off these less-performing assets to unshackle what looks to be an anchor. Personally, I believe that would be a step in the right direction for Telstra shares — pivoting toward a higher growth area of telecommunications. 

    In saying that, the mobile segment is not without its drawbacks. After TPG’s merger with Vodafone Hutchinson Australia, there are now two formidable competitors (TPG Telecom Ltd (ASX: TPG) and Optus) to Telstra’s market dominance.

    As we all know, the mobile industry does not stand still – 2G, 3G, 4G, 5G. I believe each generation of new technology poses an execution risk for Telstra, which will be more prominent in the future now with well-capitalised competition. 

    At the end of the day, Telstra’s moat is its infrastructure and the enormous capital required to replicate it. Though, with time, I’m not sure this moat will be as wide as management and shareholders had hoped. 

    Already we can see the Australian telco giant is attempting to stave off encroachment by offering an ‘olive branch’ to TPG through a 10-year network-sharing arrangement. This would have made TPG reliant on Telstra and inserted a hefty gap in Telstra’s infrastructure lead, but the proposal has been thrown out by the competition watchdog.

    If the competition is willing to play the long game, investing in their own infra, I think we could see Telstra’s mobile business decline in the same way its broadband business has over the years, demonstrated by the chart above. 

    Given these risks, a price-to-earnings (P/E) ratio of around 26 times on Telstra shares is a tad too rich to be palatable in my opinion.

    The post Telstra shares: Bull vs. Bear appeared first on The Motley Fool Australia.

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

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  • Here is a pair of ASX 200 shares I would buy and never sell

    An old man with wavy white hair folds his arms in a stubborn gesture as he stands defiantly in an outdoor setting.

    An old man with wavy white hair folds his arms in a stubborn gesture as he stands defiantly in an outdoor setting.

    When it comes to buying, selling, and investing in ASX shares, I like to keep one of the legendary Warren Buffett’s quotes in mind.

    In his 1988 letter to the shareholders of Berkshire Hathaway Inc, Buffett said the following:

    We expect to hold these securities [Coca-Cola and Freddie Mac] for a long time. In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.

    When I buy an ASX share, I also keep in mind another Buffett quote, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

    If you never have to worry about what price you’d sell an ASX share for, it takes away half of the stress of investing in it.

    With that in mind, here are three ASX shares that I would buy with the full intention of having them in my brokerage account when I die.

    2 ASX 200 shares I would never sell

    Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

    Washington H. Soul Pattinson, or Soul Patts as it’s more easily known, is an ASX 200 veteran investment house. Its primary business is owning a portfolio of other ASX shares and assets on behalf of its investors. Soul Patts just reported its latest earnings this morning, and boy, were they impressive.

    The company reported a 38.4% rise in profits, as well as a 21.4% hike to its dividend. But this company has been delivering for its shareholders for decades.

    In its report today, the company proudly announced that it has achieved an average shareholder return for its investors of 12.4% per annum over the past 20 years. That’s an outperformance of 3% per year over the broader market. That’s enough to convince me that this ASX share is a timeless winner.

    Brickworks Ltd (ASX: BKW)

    Another ASX 200 winner in my view is building and construction materials company Brickworks. As it happens, Brickworks also reported its latest earnings this morning. And they were just as impressive as Soul Patts’. Profits were up a pleasing 24%, which allowed Brickworks to boost its dividend by 5%.

    While not quite as impressive as Soul Patts’ historical performance, Brickworks still told investors that it has delivered an annual return of 10% over the past 20 years. This company also has the distinction of not cutting its dividend in more than 40 years.

    Brickworks has astutely built up a portfolio of other assets, including shares and property, that help it survive the cyclical nature of its core business. Due to its long and proud history of delivering for shareholders, this is another company you couldn’t convince me to part ways with.

    The post Here is a pair of ASX 200 shares I would buy and never sell appeared first on The Motley Fool Australia.

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    Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway, Coca-Cola, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Here are the 3 most heavily traded ASX 200 shares on Thursday

    a woman struggles to hold a large pile of folders and documents with only her eyes appearing over the top of the pile.

    a woman struggles to hold a large pile of folders and documents with only her eyes appearing over the top of the pile.

    The S&P/ASX 200 Index (ASX: XJO) is sadly back in the red today after what was an encouraging few days of trading. After the strong recovery we witnessed over the past two days, the ASX 200 is back to a loss so far this Thursday.

    At the time of writing, the Index is presently nursing a 0.69% fall, which has dragged the ASX 200 back under 7,000 points.

    That’s not a reason to pack up and go home though. So let’s focus on something else — the shares that are currently topping the ASX 200’s share trading volume charts right now, according to investing.com. See if you can spot a trend with today’s stocks.

    The 3 most traded ASX 200 shares by volume this Thursday

    Core Lithium Ltd (ASX: CXO)

    After a long absence from this list, ASX 200 lithium share Core Lithium returns first up today. So far this session, a hefty 20.16 million Core shares have made their way across the ASX boards. We have seen some news out of this lithium miner this Thursday.

    As we covered this morning, Core has announced a lithium spodumene concentrate sales agreement with Chinese company Sichuan Yahua from its Finniss lithium project. But investors don’t seem too impressed, with Core Lithium shares down a nasty 3.54% so far today to 76 cents a share.

    It was even worse this morning too, with the company dropping as low as 72 cents (down almost 7%). All of these developments probably explain the high volumes we are seeing.

    Pilbara Minerals Ltd (ASX: PLS)

    Next up we have another ASX 200 lithium stock in Pilbara Minerals. A sizeable 33.53 million Pilbara shares have swapped hands as it currently stands.

    Unlike Core Lithium, we haven’t had any news out of Pilbara this session to speak of. However, Pilbara is also suffering a depressing share price loss over today’s trade thus far. At present, the leading lithium share is suffering a 4.44% fall to trade at $3.44 each after falling close to 7% this morning. It looks like this drop is to blame for the high trading volumes on display.

    Sayona Mining Ltd (ASX: SYA)

    Our third, final, and most traded ASX 200 share today is yet another lithium producer in Sayona Mining. This session has seen a whopping 52.75 million Sayona shares bought and sold on the markets so far. This looks like a very similar situation to that of Pilbara – no news but a big share price drop.

    Unfortunately for Sayona investors, this lithium share has cratered by a horrid 7.5% today, down to 18.5 cents a share. This loss, together with Sayona’s relatively large share count, is the likely reason this company leads out trading volumes this Thursday.

    The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

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    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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