The Weebit Nano Ltd (ASX: WBT) share price has avoided the market weakness on Thursday.

That’s because the company requested a trading halt prior to the market open.

Why is the Weebit Nano share price frozen?

The Weebit Nano share price was slammed into a trading halt this morning after the company took advantage of a sensational rise over the last 12 months to launch an inevitable capital raising.

As you can see below, the semiconductor company’s shares have more than doubled over the last 12 months.

Though, as you can also see on that chart, Weebit Nano could have got so much more bang for its buck if it had launched this capital raising sooner. The Weebit Nano share price peaked at $9.03 earlier this month, whereas it closed the last session 38.5% lower than this level at $5.54.

It seems that some investors suspected that a capital raising was coming and sold off their shares.

Why is Weebit Nano raising capital?

The company has yet to reveal why it is raising capital, how much it is raising, and, importantly, at what price it is seeking to raise funds.

All we know at this stage, is that it is proposing a capital raising comprising an institutional placement and a share purchase plan.

Weebit Nano has requested that the trading halt remain in place until the earlier of the opening of trading on Friday or the completion of the institutional placement.

Interestingly, the company certainly isn’t short of cash. At the end of December, it was sitting on a cash balance of approximately $45 million. So, it will be interesting to see what it plans to do with the proceeds of this capital raising.

The post Why is the Weebit Nano share price frozen? appeared first on The Motley Fool Australia.

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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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The Brickworks Limited (ASX: BKW) share price is on the move on Thursday morning.

At the time of writing, the buildings products company’s shares are up 2% to $23.50.

This follows the release of the company’s half-year results.

Brickworks share price higher on half-year results

• Revenue up 13% to $584 million
• Underlying EBITDA up 25% to $607 million
• Underlying net profit after tax up 24% to a record of $410 million
• Interim dividend up 5% to 23 cents per share

What happened during the first half?

For the six months ended 31 January, Brickworks reported a 13% increase in revenue to $584 million. This reflects an 11% increase in Building Products Australia revenue to $364 million and an 18% lift in Building Products North America revenue to $220 million.

Growing even quicker was the company’s underlying EBITDA, which increased 25% over the prior corresponding period to $607 million. This was driven largely by its property joint venture with Goodman Group (ASX: GMG), which offset flat EBITDA from its Building Products operations.

Brickworks’ property business generated EBITDA of $453 million, with the sale of Oakdale East Stage 2 contributing strongly to its earnings.

This ultimately led to the company reporting a 24% increase in underlying net profit after tax to a record of $410 million, which allowed the Brickworks board to increase its fully franked interim dividend by 5% to 23 cents per share.

Management commentary

Brickworks’ managing director, Lindsay Partridge, was pleased with the half. Commenting on the strong-performing property business, he said:

Despite increasing interest rates, we are continuing to experience strong demand for prime industrial property. Major customers are seeking well-located sites, with large land footprints, on which to develop specialised, high-value facilities. The addition of a significant new parcel of land at Oakdale East is well suited to accommodate this demand. This new Estate will provide an additional development pipeline of around five years and once completed, is expected to deliver around $1 billion in additional leased asset value to the Trust.

Outlook

Management appears optimistic on the company’s property business during the second half. Partridge adds:

Within our Property Trusts, the development pipeline is strong, and we expect a significant increase in rental income over the coming years as new developments are completed and rent reviews are undertaken.

And while the managing director acknowledges that difficult trading conditions are coming for its Building Products businesses, it remains cautiously optimistic on its near term outlook. He explained:

Across Building Products, we are confident that sales will remain resilient in the second half. However, there is no doubt that a slowdown in activity will arrive before the end of the calendar year, once the existing pipeline of work is built out.

The impact of the slowdown is likely to be more significant for our Australian business, where exposure to detached housing is greatest. By contrast, the North American operations have a broader end market exposure, and stand to benefit from the relative strength of the non-residential segment. Across both countries, manufacturing costs will benefit from the extensive plant rationalisation and upgrade activities completed over the past few years.

The post Brickworks share price higher on record half-year profit appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares where the dividends don’t stop
• $1,000 in monthly passive income? Buy 18,462 shares of this ASX 200 stock
• 3 ASX shares I own for passive income
• Should I target $1,000 of annual dividends by investing $10,000 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 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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The turbulent times that investors have faced last year and this year are forcing many to turn to ASX dividend shares for comfort.

The idea is that the income can make up for the lack of capital growth, and the relative popularity of such stocks will keep their valuations steady.

Wilson Asset Management analysts this week named two such S&P/ASX 200 Index (ASX: XJO) shares that are ripe for buying at the moment:

‘Exceptional asset allocators’

DEXUS Property Group (ASX: DXS) is a real estate group that’s best known for its office assets.

Despite the flight of workers away from the office after COVID-19, the stock has been “a favourite” for Wilson equity analyst Anna Milne’s team.

“Although there has been this ‘work from home forever’ mentality, their last result really proved that this isn’t the case,” Milne said in a Wilson video.

“Operationally it looks like it’s improving.”

Dexus is paying out an impressive dividend yield of almost 7%.

But with the share price falling more than 31% since April, the biggest temptation for Milne is how cheap it is right now.

“For us, it’s a valuation call. They’re trading at a 30% discount to their net tangible assets. Their funds management business is valued at zero.”

Plus the Wilson team reckons the people running Dexus are “exceptional asset allocators”.

“So we’re happy to be with them for the medium term — Dexus is still a buy.”

Incredible pricing power

Telstra Group Ltd (ASX: TLS) shares may have been frustrating to own in the past, but the business seems to be on the up with a new chief executive at the helm.

The stock price is now 10.6% higher than it was six months ago, while paying a dividend yield of 3.84%.

Milne called the telecommunications stock “a certainty in an uncertain environment”.

“The Telstra dividend is safer than houses. So Telstra’s a buy,” she said.

“The industry is acting extremely rationally. All their competitors are lifting prices, which means it gives them the green light to lift prices again come June-July. So we really like Telstra.”

Milne is not the only one bullish on Telstra.

According to CMC Markets, a remarkable 13 out of 15 analysts currently rate the stock as a buy.

The post ‘Safer than houses’: 2 ASX 200 shares that are pumping out the dividends appeared first on The Motley Fool Australia.

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More reading

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• Why Goldman Sachs is bullish on the Telstra share price
• 5 things to watch on the ASX 200 on Tuesday
• Forget term deposits and buy these ASX 200 dividend shares: analysts
• AMP share price dips despite $337m sale win

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

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I think that Nick Scali Limited (ASX: NCK) is one of the most underrated ASX dividend shares on the ASX. In FY25, it could pay a very handsome dividend, resulting in strong cash returns, regardless of what the Nick Scali share price does.

Over the past year, the Nick Scali share price has dropped by over 20%. Since 3 February 2023, it has fallen by close to 30%.

The fall of Nick Scali’s valuation means that the forward dividend yield, whatever it ends up being, is boosted.

Let’s have a look at how big that dividend is currently projected to be.

ASX dividend share’s FY25 payout estimate

Forecasts are just educated guesses, so don’t take these estimates as guaranteed at all.

The estimates on Commsec are as good as any projection at this stage.

At the moment, for FY25, Nick Scali is projected to pay an annual dividend per share of 61.3 cents. At the current Nick Scali share price, that translates into a grossed-up dividend yield of 9.7%.

There aren’t too many S&P/ASX All Ordinaries Index (ASX: XAO) dividend shares that are projected to pay a dividend yield that large in the 2025 financial year.

Of course, there may be a bit of dividend and profit pain before then, in FY24.

In FY24, the dividend per share is currently expected to be 58.8 cents per share. That translates into an FY24 grossed-up dividend yield of 9.25%. In other words, the dividend yield could remain above 9% despite an expected decline in profit in FY24.

The good nor the bad to last forever?

The COVID-19 period saw a large increase in demand for Nick Scali’s furniture as people put greater value on spending on their homes, and had the funds to do it.

It would have been unrealistic to think that Australians were going to buy more furniture year after year. I do expect that FY24 is going to show a sizeable decrease in profit compared to FY23. We’ll just have to see what the size of the decline looks like.

But, I think it would also be unwise to think that weaker retail conditions are going to last forever for the ASX dividend share.

The current numbers suggest that Nick Scali’s earnings per share (EPS) could increase by 7.5% in FY25, compared to FY24.

Nick Scali can grow its underlying operations by expanding the store numbers of Nick Scali and Plush, growing online earnings and expanding their ranges. The business can also be an indirect beneficiary of Australia’s growing population.

Is the Nick Scali share price good value?

Nick Scali shares are currently priced at under 8 times FY23’s estimated earnings and under 10x FY25’s estimated earnings.

I think Nick Scali shares have been oversold when considering how earnings in FY25 and beyond may look more promising than how FY24 earnings may perform.

Even if the ASX dividend share’s same store sales don’t perform that well, the expanding store count can help offset some of the declines. I’d be happy to buy it for the sentiment recovery and store network expansion plans.

The post This ASX dividend share is projected to pay a yield of over 9% by 2025 appeared first on The Motley Fool Australia.

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More reading

• I reckon these are 2 of the best ASX income stocks to buy in March
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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 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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Do you want a passive income boost? If you do, then the ASX dividend shares listed below that analysts have named as buys could help you.

Here’s why these could be passive income shares to buy now:

Transurban Group (ASX: TCL)

The first ASX 200 dividend share for investors to consider buying is toll road operator Transurban.

Analysts at Citi are positive on the company. They were pleased with last month’s half-year results and appear confident that it can build on this in the second half and FY 2024. Particularly given that “CPI-linked increases come through with a delay,” which the broker believes is “indicating a strong growth path ahead.”

In respect to dividends, the broker is forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $14.12, this will mean yields of 4.1% and 4.25%, respectively.

Citi has a buy rating and $16.00 price target on its shares.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that has could provide investors with a passive income boost is Woolworths.

Goldman Sachs is very positive on the company and has it on its conviction list. It is a fan due to Woolworths’ strong market position and digital leadership, which it expects to support further market share and margin gains.

As for dividends, the broker is forecasting fully franked dividends of $1.03 per share in FY 2023 and $1.16 per share in FY 2024. Based on the current Woolworths share price of $37.32, this will mean yields of 2.8% and 3.1%, respectively.

Goldman has a conviction buy rating and $41.00 price target on the company’s shares.

The post Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts appeared first on The Motley Fool Australia.

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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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The share price of S&P/ASX 200 Index (ASX: XJO) giant Washington H Soul Pattinson and Co Ltd (ASX: SOL) is in focus after the company posted its first-half earnings this morning.

Stock in the $10 billion investment house last traded at $28.54.

Soul Patts share price on watch as dividend bolstered 24%

Here are the key takeaways from the six months ended 31 January:

• $475.7 million of regular profit – up 38.4% on that of the prior comparable period
• $453 million of statutory profit – up from the pcp’s $673.6 million loss
• $290.5 million of revenue from continuing operations – a 74% fall
• Net asset value came to $10.5 billion – a 16% improvement
• $246.5 million of net cash flows from investments – a 35% jump on the pcp’s
• 36 cent per share fully franked final interim dividend declared – up 24.1% year-on-year

The historic investment house noted its net asset value’s gain outperformed that of the All Ordinaries Index (ASX: XAO) by 10.2% over the year ended January.

Its strategic portfolio investments drove such growth, helped by high commodity prices and contributions from Brickworks Limited (ASX: BKW), Apex Healthcare, and New Hope Corporation Limited (ASX: NHC).

The company ended the period with $597.3 million of cash – a 257.7% improvement – with an average current yield of 4.2% per annum.

What else happened last half?

Soul Patts underwent $1.3 billion of transaction activity last half as it reduced exposure to cyclical and growth shares amid soaring inflation.

Much of the resulting cash was invested into its structured yield portfolio, which brought $18.8 million of cash flow.

Meanwhile, its private equity portfolio doubled down on agricultural and real estate assets, deploying $152.8 million into the space.

What did management say?

Soul Patts CEO and managing director Todd Barlow commented on the results that could drive the company’s share price today, saying:

The portfolio is defensively positioned, we are holding a material cash position, and our new investments target attractive, risk-adjusted returns.

In a higher rate, inflationary environment, we are seeking greater exposure to real assets given the potential to offset inflation through income and growth.

What’s next?

The ASX 200 giant didn’t provide any earnings guidance today. Though, it appears confident in its strong liquidity position amid economic volatility, with chair Rob Millner saying:

Our company is equipped to navigate an unpredictable market with significantly more cash reserves to invest in the best opportunities.

Soul Patts share price outperforms the ASX 200

The Soul Patts share price has bested the ASX 200 over recent months.

The stock has posted a 5% gain so far this year. It’s also risen 7% since this time last year.

That’s compared to the index’s 1% year to date rise and its 5% fall over the last 12 months.

The post Soul Patts share price in focus as dividend hiked 24% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• I’d target just a handful of ASX shares to aim for a million!
• 2 ASX passive income stocks for the next 10 years and beyond
• 2 ASX 200 shares where the dividends don’t stop
• I’d aim for $1 million, thanks to just a few ASX shares

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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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Some S&P/ASX 200 Index (ASX: XJO) dividend shares may be leading ideas for retirees. Passive income yields have seen a boost as interest rates and inflation take their toll.

Dividend yields are simply a measure of the business income payout compared to the share price. With share prices lower, this could be a great time to boost retirement income.

While higher interest rates are a bit worrisome for some businesses, I think that the lower share prices more than makeup for it.

With that in mind, these are some of my preferred ASX 200 dividend shares.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns a diversified portfolio of properties that are all signed onto long leases, giving the business a long weighted average lease expiry (WALE).

The properties are spread across industrial, agri-logistics, retail, office, service stations, social infrastructure and so on. I think retirees can benefit from this diversification.

It says that 99% of its tenants are blue chips, being government, ASX-listed, multi-national or national tenants.

The ASX 200 dividend share says that its income growth is driven by annual rent increases in all leases. It revealed that half of its leases are linked to CPI, with a 7.2% weighted average increase in FY23.

This business pays its passive distribution income quarterly, so investors get pleasing regular cash flow.

Commsec numbers suggest that Charter Hall Long WALE REIT could pay a distribution yield of 6.7% in the 2024 financial year.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest (electronics) retailers in Australia (and New Zealand). It has sold a huge amount of goods during the COVID-19 pandemic period.

But, while the 2023 financial year and even the 2024 financial year could show earnings declines, I think the dividends will still remain solid.

I‘d guess that phones and computers are essential enough for most people that this ASX 200 dividend share may be able to continue to provide good passive dividend income returns during this period, particularly after the fall of more than 20% since March 2022. Retirees can get a piece of this business at a much lower price.

In my opinion, the business can benefit from the ongoing growth of the Australian population which should mean more devices are bought in total in the coming years.

The FY24 grossed-up dividend yield from the ASX 200 dividend share could be 7.6%, according to Commsec. In FY25, the grossed-up dividend yield could be 7.8%, which is when the growth of the passive income and profit is expected to happen again.

The post I think retirees will love these 2 ASX 200 dividend shares for passive income appeared first on The Motley Fool Australia.

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• Investing as little as $25 a week could help me retire with $104,000 a year in passive income!
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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 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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There are many schools of thought when it comes to investing in ASX shares. Some of the most prominent boil down to long-term investing or short-term investing, and day trading is an extreme version of the latter.

While market watchers might find day trading tempting, it’s rarely a useful wealth-building tool. In fact, research conducted between 2013 and 2015, cited by CNBC, found 97% of persistent day traders lose money.

It’s also the opposite approach to that which billionaire investing great Warren Buffett recently touted as the stock market’s “secret sauce”. That is: time.

Let’s dive into the wisdom that helped Buffett build his US$104.6 billion fortune, and that might help me build mine.  

Warren Buffett’s ‘secret sauce’ to wealth building

Buffett’s recently released annual letter to Berkshire Hathaway shareholders once again reiterates the billionaire and his partner Charlie Munger are “not stock pickers; we are business pickers”.

And on that note, he delved into some of the massive wins he’s chalked up over the decades.

The first being Coca-Cola. Buffett’s listed holding company snapped up 400 million shares in Coke for US$1.3 billion over the seven years ended 1994. Similarly, Berkshire Hathaway bought US$1.3 billion of American Express stock over the years to 1995.

Today, those respective holdings bring in US$704 million and US$302 million in dividends. Not to mention, they were worth US$25 billion and US$22 billion respectively at the end of 2022.

Such massive wins bring a key lesson to investors, says Buffett:

The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.

Investing for the long term

Even Buffett admits his investing results are “the product of about a dozen truly good decisions”. But, perhaps more importantly, they’re decisions he has stuck by.

That means investing for the long-term, rather than a day. It also means he’s seen his wealth compound over and over.

Meanwhile, Arizona State University finance professor Hendrik Bessembinder’s widely-cited research, later replicated in Australia, found just 4% of US stocks were responsible for all of Wall Street’s gains.

Bessembinder advises that building a diverse portfolio of shares is often the best way to build wealth on the stock market.

My takeaway from such advice is to invest in a diverse range of companies you truly believe can outperform when they’re trading at a reasonable price, then sit back and watch them do just that – a strategy that is quite the opposite of day trading.

Munger’s 2-cents

Buffett’s business partner Munger has also weighed in on what he thinks is the key to investing. He said the pair avoid the market’s ‘froth’, continuing:

The world is full of foolish gamblers, and they will not do as well as the patient investor.

Munger also pointed to a quote from Ben Graham, who is widely regarded as the father of value investing. He once said:

Day to day, the stock market is a voting machine; in the long term it’s a weighing machine.

In my opinion, the two quotes perfectly encapsulate the difference between day trading and long-term investing.

In the short term, investing is arguably a game of popularity. However, over time the market will typically weigh a company’s fundamentals, driving the value of quality businesses higher to the benefit of patient shareholders.

The post Forget day trading! I’d use Warren Buffett’s ‘secret sauce’ to build wealth appeared first on The Motley Fool Australia.

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More reading

• Is now the time to be bold and snap up cheap ASX 200 dividend shares?
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• Forget inflation! Warren Buffett urges investors to focus on the big picture
• Beginner investor? Warren Buffett says start early!

American Express 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 Berkshire Hathaway. 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 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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For better or for worse, it is the norm here on the ASX for dividend shares to give their investors passive income every six months.

Almost without fail, every blue-chip dividend share on the share market, whether that be Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Woolworths Group Ltd (ASX: WOW), or Telstra Group Ltd (ASX: TLS), follows this bi-annual dividend model.

But there are some exceptions. Some ASX shares, like Rural Funds Group (ASX: RFF), pay out dividends every quarter. Likewise, most exchange-traded funds (ETFs) also give their investors a paycheque every three months.

But finding monthly dividend payers? These ASX shares are the white tigers of the ASX – you hardly ever find one in the wild. Luckily for those income hunters out there, the search is over. We’ve found three that will send a shareholder payment to investors 12 times a year.

3 ASX shares that pay dividends monthly

BetaShares Australian Dividend Harvester Fund (ASX: HVST)

This exchange-traded fund from provider BetaShares is our first monthly dividend payer to look at. This ETF is an income-focused one at its core. It’s structured in a way that allows the fund to exceed the average income that the broader ASX can offer.

It does this by using a ‘harvesting’ strategy of buying large-cap ASX 200 dividend shares when they are about to trade ex-dividend, selling afterwards, and cycling to the next dividend share.

In this way, this ETF is able to fund oversized dividend payments, typically with franking credits attached, which are distributed to investors every month.

Metrics Master Income Trust (ASX: MXT)

This investment is a listed investment trust (LIT), which functions in a similar manner to an ETF. The Metrics Master Income Trust invests in corporate debt instruments and loans. This is an asset class that most ordinary investors don’t have exposure to.

It targets a return of 3.25% per annum above the Reserve Bank of Australia’s cash rate, while prioritising capital stability and regular income.

That regular income comes in the form of monthly dividends. But since these payments are funded by loan interest and not from corporate dividends, the distributions from Metrics Master Income Trust don’t come franked.

Plato Income Maximiser Ltd (ASX: PL8)

Finally, let’s discuss a listed investment company (LIC) in Plato Income Maximiser. A LIC is basically a company that holds shares in other companies. In this case, Plato holds a diversified portfolio of high-yield ASX dividend shares.

These typically include names like National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), and Woodside Energy Group Ltd (ASX: WDS).

As you might guess, Plato Income Maximiser also pays its investors monthly dividends. These usually come fully franked too.

Foolish takeaway

So as you can see, the ASX does have several investments available for consideration if receiving monthly dividend paycheques is important for your investing strategy. Remember, monthly dividends don’t always equate to market-beating returns.

And it’s also important to consider what fees you are paying for the privilege of getting that monthly paycheque. But monthly dividend income is certainly available on the ASX share market for those willing to partake.

The post 3 ASX shares that will pay you dividends every single month appeared first on The Motley Fool Australia.

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More reading

• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Guess which ASX ETF pays dividends every month?
• Top ASX ETFs to buy in March 2023

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank and Telstra Group. 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 Rural Funds Group, Telstra Group, 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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With the economy set to slow down in a massive way after 10 consecutive months of interest rate rises, it pays to see which trends could remain resilient through this period.

The team at Firetrail had a couple of ideas: travel and gold.

Here are the two S&P/ASX 200 Index (ASX: XJO) shares from those thematics that Firetrail analysts are backing right now:

Australians are dying to travel

One of the greatest ironies at the moment is that consumers are tightening their belts due to massive rises in their mortgage repayments, but they’re still travelling.

“Post-COVID travellers could not care less about bank asset/liability mismanagement – they’ll be at the beach bar!” read the Firetrail memo to clients.

“Air travel is surging and still has a way to go before reaching pre-COVID levels in most regions.”

The analysts noted that the US has led the surge, with revenue per kilometre already back to 2019 levels.

“But Australia still has some ground to make up,” read the memo.

“Strong demand and lighter competition in the Australian market has Qantas Airways Limited (ASX: QAN) — held in the Firetrail High Conviction and Firetrail Absolute Return Funds — reaping the rewards.”

Indeed, the Qantas share price has stunningly risen more than 50% since July.

Despite the spectacular returns, the airline remains a darling among professional investors. According to CMC Markets, 12 out of 16 analysts currently rate the stock as a buy.

Eleven of those reckon it’s a strong buy.

Gold buying spree will continue

For thousands of years, gold has always been seen as a “safe haven” investment during troubled times.

And it’s no different this time around, reckon the Firetrail team.

“Recession fears and cracks in the banking system have led to a spike in the gold price from $1,650 to $1,919 in the past 6 months,” read the memo.

“We think gold plays an important defensive role in portfolios.”

In a separate note, Firetrail analysts noted that central banks are currently on a gold-buying spree.

“Despite a subdued first half of the year, 2022 central bank gold purchases were the highest on record with net purchases of 1,136 tonnes. 80% of this came in the second half of the year,” they wrote in a Firetrail blog post. 

“A recent World Gold Council survey suggests the momentum will continue. A quarter of central banks surveyed indicated that they expect to increase exposure to precious metals.”

Among gold producers, Newcrest Mining Ltd (ASX: NCM) is the team’s highest conviction pick.

“Gold miners with high-quality assets like Newcrest Mining are set to benefit from heightened uncertainty and a stronger gold price.”

The post Beach and bling: 2 ASX 200 shares Firetrail is loving right now appeared first on The Motley Fool Australia.

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More reading

• Refuelled with profits, how ASX 200 favourite Qantas plans to stick the landing on growth
• Why are ASX 200 gold stocks on a rollercoaster lately?
• Why ASX 200 gold shares could see the yellow metal hit new record highs: expert
• ‘Increasing demand’: Expert picks 2 ASX 200 mining shares to buy (not BHP)
• Here are the top 10 ASX 200 shares today

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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