The S&P/ASX 200 Index (ASX: XJO) is out of form on Friday and on track to end the week in the red. In afternoon trade, the benchmark index is down 0.3% to 7,759.9 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is down 2.5% to 20 cents. This may have been caused by a broker note out of Bell Potter this week. In response to a strong rebound this month, the broker has downgraded the rare earths developer’s shares to a speculative neutral rating with a 19 cents price target.

Pentanet Ltd (ASX: 5GG)

The Pentanet share price is down 5% to 7.8 cents. This has been driven by the telco raising funds via a placement. Pentanet has received binding commitments for a placement of shares to multiple international and domestic institutional and high-net worth investors. The company will raise $4.28 million at a discount of 7.2 cents per new share. These funds will be used to invest in Nvidia cloud servers and infrastructure, working capital for growth, and the costs of the placement.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is down 1.5% to $1.21. This may have been driven by a broker note out of Morgans this morning. According to the note, the broker has downgraded the pharmacy chain operator and distributor’s shares to a hold rating with a $1.14 price target. It made the move on valuation grounds.

Webjet Ltd (ASX: WEB)

The Webjet share price is down over 1% to $8.59. This also appears to have been driven by a broker downgrade. According to a note out of Macquarie, its analysts have downgraded the online travel agent’s shares to a neutral rating with an $8.88 price target. As with Sigma, Macquarie made the move on valuation grounds.

The post Why Arafura, Pentanet, Sigma, and Webjet shares are falling today appeared first on The Motley Fool Australia.

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Why Australian Strategic Metals, Evolution, Sigma, and Webjet shares are storming higher
• Chemist Warehouse merger target Sigma reports 149% FY24 profit jump
• Why is the Webjet share price racing to a 52-week high today?
• Here are the top 10 ASX 200 shares 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 Macquarie Group and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pentanet. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Coles Group Ltd (ASX: COL) shares could be a great option for an investment portfolio this week.

That’s what analysts at Bell Potter think, which have recently named the supermarket giant on their Australian equities panel.

The broker highlights that its panel of favoured Australian equities offer attractive risk-adjusted returns over the long term. It then explains:

We consider the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management and competitive advantages. We’ve examined our analysts’ buy-rated stocks and preferred high conviction calls, to identify our preferred stocks in a range of sectors.

Why are Coles shares on the list?

Bell Potter added Coles to its preferred stock panels in response to its half-year result from last month.

It notes that Coles reported EBIT of $1,064 million for the six months, which was ~5% ahead of its estimates and the analyst consensus.

In addition, it points out that management has multiple levers for profit improvement. These include its private label positioning attracting price conscious consumers, further reductions in theft rates through technology and operational improvements, growing Coles 360 media income, and productivity improvements from the Witron automated distribution centres.

It is for these reasons that the broker prefers Coles shares over rival Woolworths Group Ltd (ASX: WOW) and is forecasting earnings ~5% above consensus estimates in FY 2025.

Plenty of upside potential

Although Coles shares have rallied 6% since this time last month, Bell Potter sees scope for much bigger returns over the next 12 months.

The broker has put a buy rating and $19.00 price target on its shares. This implies potential upside of 15% for investors.

In addition, the broker is expecting a 4% dividend yield over the period, which lifts the total potential return to approximately 19%.

It concludes:

Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

The post Why Coles shares could be a best buy for blue chip investors appeared first on The Motley Fool Australia.

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

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

More reading

• $2.1 million! Who are the highest paid ASX 200 directors?
• 2 ASX 200 large-cap shares upgraded by brokers
• 2 things I’m waiting for before buying Coles shares
• Top brokers name 3 ASX shares to buy today
• Why you should buy cheap Woolworths shares before it’s too late

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

from The Motley Fool Australia https://ift.tt/JQzhAS8

The Federal Court has approved a travel order against the suspended chief of an ASX-listed technology company to prevent him from leaving the country.

The Australian Securities and Investments Commission this week submitted an application to stop Dubber Corporation Limited (ASX: DUB) chief executive and managing director Stephen McGovern exiting Australia while it conducts an investigation.

The order also prevents Christopher William Legal solicitor and principal Mark Madafferi from leaving the country.

ASIC investigating ASX CEO over missing funds

Dubber shares were placed in a trading halt on 27 February, and have been frozen ever since.

The company then reported to ASIC that McGovern was suspended as managing director and chief executive and the reasons why it took that action.

On March 1, the corporate watchdog started investigating the suspicions that funds in a term deposit belonging to Dubber and one of its subsidiaries had been misused.

The deposits were allegedly held in trust by Madafferi.

According to ASIC, $26.6 million remains unaccounted for and it has “concerns” that McGovern and Madafferi may have breached the Corporations Act.

The travel order hearing was held with both men absent.

McGovern is a UK national while Madafferi is an Australian citizen.

The matter will be heard again in court on Wednesday.

What has Dubber been doing?

Dubber operates a cloud telecommunications platform for corporate clients.

In 2021, the share price flew above the $4 mark, but at the time of the trading halt last month it was languishing at 22 cents.

Despite the term deposit scandal, Dubber announced last week that it had secured a $5 million loan from Thorney Investment Group.

“Unquestionably we were shocked by Dubber’s recent announcement,” Thorney Investment Group executive chair Alex Waislitz said.

“Notwithstanding, Thorney continues to believe Dubber has sound prospects having built a substantial global client base that includes many Tier 1 communications service providers.”

The post ASX tech CEO blocked from leaving Australia as $26.6 million goes missing appeared first on The Motley Fool Australia.

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

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

More reading

• Own Liontown shares? Here’s when the lithium stock could be profitable
• Could this development out of China reignite ASX 200 coal shares?
• Guess which ASX 200 healthcare share is jumping 7% on a guidance update
• Core Lithium shares jump 9% on ‘exceptional’ exploration results
• Why this exciting ASX biotech stock could be a future star

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 positions in and has recommended Dubber. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/cQDAa9C

If you own Liontown Resources Ltd (ASX: LTR) shares, you will probably be aware that it won’t be long until the Kathleen Valley Lithium Project commences production.

The lithium developer’s most recent update reiterated that “the commencement of first concentrate production [is expected] from mid-calendar year 2024.”

Given that we are now in the back end of March, this means that Liontown could be pulling lithium out of the ground in just a few months.

This also means that the days of burning through cash could soon be behind the company. But just how soon could Liontown be profitable? Let’s take a look and find out.

When will Liontown be profitable?

Let’s now go through what analysts at Goldman Sachs are forecasting year by year, starting with FY 2025.

According to the note, the broker expects Liontown to deliver spodumene production of 260kt in FY 2025. And with Goldman forecasting an average realised price of US$922 a tonne for 6% grade spodumene, it estimates that this will lead to revenue of A$363 million for the year.

Unfortunately, that won’t be enough for an underlying EBITDA profit, with Goldman expecting a loss of $18 million for the period.

But it gets better in FY 2026 when Goldman expects production to ramp up to 470kt with an average realised spodumene price of US$887 a tonne.

This is forecast to generate revenue of A$628 million, positive underlying EBITDA of A$177 million, and underlying earnings of A$81 million.

It will be onwards and upwards from here, which could be good news for Liontown shares.

FY 2027 and FY 2028 forecasts

For FY 2027, Goldman estimates production of 512kt and an average realised price of US$1,073 a tonne.

This is expected to lead to revenue of A$798 million, underlying EBITDA of A$282 million, and underlying earnings of A$140 million.

Finally, in FY 2028, production is forecast to come in at 579kt with an average realised spodumene price of US$1,266 a tonne.

Goldman believes this will underpin revenue of A$1,048 million, underlying EBITDA of A$418 million, and underlying earnings of A$232 million.

At this point, the broker believes that Liontown will be in a position to pay its first dividend. Though, only a modest 0.9 cents per share payout is currently forecast by the broker.

The post Own Liontown shares? Here’s when the lithium stock could be profitable appeared first on The Motley Fool Australia.

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

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

More reading

• Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• These ASX shares could rise 20% to 50%
• Liontown share price tumbles 7% on half-year results

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

from The Motley Fool Australia https://ift.tt/8mGStuq

S&P/ASX 200 Index (ASX: XJO) coal shares have struggled in 2024 amid slumping coal prices.

Year to date the New Hope Corp Ltd (ASX: NHC) share price is down 16%.

And shares in rival coal stock Whitehaven Coal Ltd (ASX: WHC) have slumped 15% this year.

Last April coal was trading for almost US$200 per tonne. That slipped to lows of US$116 per tonne in late February this year. Coal prices have since moved higher to around US$130 per tonne this week.

For its half year results, New Hope reported a 58% decline in its average realised coal price to AU$197 per tonne. That saw revenue for the six months fall by 45.9% year on year to $856.6 million.

It was a similar story with Whitehaven.

The ASX 200 coal share achieved a greatly reduced realised average price of AU$220 per tonne over the six months. The miner’s half-year revenue plunged 58% year on year to $1.59 billion.

So, could China’s shifting market dynamics help reverse the slide?

Chinese tailwinds for ASX 200 coal shares?

It’s been a bit over a year since China lifted its import restrictions on Aussie coal, offering a boost to ASX 200 coal shares.

Coal imports were targeted in 2021 alongside other Aussie commodities after Australia’s government called for an international inquiry into the Covid origin.

While below pre-pandemic levels, China’s coal imports from Australia reached 52.5 million tonnes in 2023. December’s 6.7 million tonnes of Aussie coal imports were up 6.4% month on month, according to Reuters.

China makes up more than half of the global coal consumption. And despite a huge domestic mining industry, Chinese coal imports hit a record high of 474.4 million tonnes in 2023.

Which brings us to the latest Chinese production data, which could help rekindle ASX 200 coal shares.

According to China’s National Bureau of Statistics, domestic coal production fell 4.2% in January and February compared to the same period in 2023. The first such pullback since September 2021.

But, as Bloomberg reports, China remains heavily reliant on coal-fired energy, with coal power generation increasing by 9.7% year on year over the first two months of 2024.

And while Chinese coal demand isn’t forecast for significant growth, it’s also not expected to abate any time soon.

According to Zhang Hong, deputy secretary-general of the China National Coal Association:

Coal demand is reaching a plateau period, but its fundamental role in supporting China’s energy supply safety is hard to change in the short-term. The role of coal as primary energy and a fallback for ensuring energy security remains unchanged, even when it is close to reaching a plateau.

With China’s coal appetite forecast to remain voracious amid signs of crimping domestic production, ASX 200 coal shares like New Hope and Whitehaven could stand to benefit.

The post Could this development out of China reignite ASX 200 coal shares? appeared first on The Motley Fool Australia.

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

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

More reading

• Why AGL, Brickworks, IGO, and New Hope shares are dropping today
• How some savvy income investors are earning a MASSIVE 41% yield on this ASX 200 dividend stock
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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

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

Core Lithium Ltd (ASX: CXO) shares are catching the eye on Friday.

In morning trade, the struggling lithium miner’s shares are up a sizeable 9% to 18 cents.

Why are Core Lithium shares jumping?

Investors have been buying the company’s shares today in response to the release of announcement relating to the exploration programs completed during the 2023 field season.

According to the release, final assays have been received from the drilling and geochemical programs with encouraging results. Management believes these demonstrate the prospectivity of the entire Finniss project area.

It highlights that wide zones of spodumene mineralisation were intersected in drilling at the high priority Ah Hoy and Seadog prospects. These results suggest the potential for these two adjacent prospects to form part of a larger cluster of mineralised pegmatites.

As things stand, Core Lithium is still interpreting the results and updated resource models are expected to be announced next month.

What’s next?

The exploration continues at Finniss in 2024. Its focus will be on testing large scale pegmatite targets which can potentially sustain lower cost production. This could be very important in the current environment of low lithium prices.

Outside Finniss, exploration will also focus on unlocking value in Core Lithium’s regional lithium, uranium, and gold targets in the Northern Territory and South Australia. Details on the company’s new exploration strategy and budget will be provided during the next quarter.

‘Exceptional results’

Core Lithium’s interim CEO, Doug Warden, was very pleased with the drilling results. He said:

The exceptional results from Ah Hoy and Seadog have successfully increased our confidence in the existence of a cluster of mineralised pegmatites. The close proximity of these prospects and others yet to be tested, could benefit any future development study outcomes. We are excited about the implications of these new results, together with earlier results, for our resource update to be released next month.

Warden was also feeling pleased about the potential for the company to lower its production costs and unlock value in other projects. He adds:

It is pleasing to see that our exploration strategy of finding larger pegmatite targets to drive future low cost production at Finniss is gaining momentum. I am very excited by the exploration potential that exists, not only within our main project at Finniss, but also at our other projects within the Northern Territory, where we will be looking to unlock the value in future exploration programs.

The post Core Lithium shares jump 9% on ‘exceptional’ exploration results appeared first on The Motley Fool Australia.

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

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

More reading

• Are Core Lithium shares a bargain buy or overvalued?
• Why Core Lithium, Deep Yellow, Iperionx, and Tuas shares are racing higher today
• Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling today
• These are the 10 most shorted ASX shares
• Why are ASX lithium shares being annihilated on Friday?

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.

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

Clarity Pharmaceuticals Ltd (ASX: CU6) shares have been on fire over the last 12 months.

During this time the ASX biotech stock has rocketed a massive 280%.

To put that into context, a $20,000 investment in the radiopharmaceuticals company a year ago would now be worth $56,000 today.

But the good news is that one leading broker believes these gains could continue.

What is the broker saying about this ASX biotech stock?

Bell Potter highlights that global healthcare giant Astra Zeneca has just acquired one of Clarity’s radiopharmaceuticals rivals.

It sees a lot of positives in the deal and notes the significant premium that Astra Zeneca paid. The broker said:

Astra Zeneca (AZ) will acquire the NASDAQ listed Fusion Pharmaceuticals for up to US$2.4bn. The largely cash deal represents a 126% premium for Fusion shareholders and yet another validation of radiopharmaceuticals as an emerging cornerstone in oncology. AZ has a well established oncology franchise and the acquisition is a logical extension to its portfolio. The transactions also has clear implications for the implied valuation of CU6.

Given the similarities of the two companies, Bell Potter appears to believe that this ASX biotech stock could be of interest to other giants wanting exposure to radiopharmaceuticals. It said:

Fusion appears to be at a similar development stage to Clarity in mCRPC i.e. dose determination and in planning for a pivotal study. Both companies have produced encouraging case study data arising from patients involved in earlier clinical trials. We concluded that the level of interest among pharma groups looking for radiopharmaceutical assets remains at fever pitch. This acquisition by AZ is the third transaction in recent months involving a top tier pharma in the category. High quality, later stage assets are likely to continue to attract premium prices.

More returns to come

In response to the news, Bell Potter has reiterated its speculative buy rating and $3.90 price target on the ASX biotech stock.

This implies potential upside of 32% for investors over the next 12 months.

So, while it may have almost quadrupled in value since this time last year, clearly Bell Potter doesn’t believe it is too late to invest (if you have a high risk tolerance).

The post Why this exciting ASX biotech stock could be a future star appeared first on The Motley Fool Australia.

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

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

More reading

• 1 ASX stock to consider buying that could be the next ResMed
• Why this ASX biotech stock could rise a massive 40%

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 recommended AstraZeneca Plc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4lGWKsC

National Australia Bank Ltd (ASX: NAB) shares have performed well for shareholders in 2024 to date. The NAB share price has climbed around 13% in the year so far. That compares to a rise of just 2% for the S&P/ASX 200 Index (ASX: XJO).

In this article, we’re going to look at how a $5,000 investment in NAB shares would have grown.

Good returns

The NAB share price finished 2023 at $30.70, so with $5,000 an investor would have been able to buy 162 shares (with a little bit of cash leftover).

As I’ve already mentioned, the NAB share price has gone up by 13%, so those 162 shares would now be worth $5,634.36 (at the time of writing).

Seeing as we’re only a few months into the year, we haven’t seen NAB pay a dividend yet.

If NAB were to pay the same dividends over the next 12 months as the last 12 months, it could pay an annual dividend per share of $1.67. At the current valuation, that translates into a cash dividend yield of 4.8% or a grossed-up dividend yield of 6.9%.

If the NAB share price were to end 2024 at $34.78, the total shareholder return (which is dividends plus capital growth) would be close to 18%. I think that would be a market-beating performance.

What’s driving the NAB share price?

To get the true answer, you’d need to go and ask each buyer of NAB shares in the last few weeks about why they were willing to pay a higher price.

Overall, the wider economic conditions are helpful for NAB. The unemployment rate remains low, inflation is reducing and interest rates are seemingly getting closer.

However, the recent FY24 first-quarter update wasn’t the most positive. It reported it generated $1.7 billion of statutory net profit after tax (NPAT) and $1.8 billion of cash earnings. The cash earnings were down 16.9% year over year.

NAB talked about a slightly underlying net interest margin (NIM) because of higher deposit costs and competitive lending pressures, mostly relating to Australian home lending.

It also reported a credit impairment charge was $193 million reflecting higher arrears in Australian home lending combined with business lending volume growth. The ratio of loans that were at least 90 days overdue was 0.75% at the end of the FY24 first quarter, up from 0.62% in the first quarter of FY23.

Time will tell whether the run-up of the NAB share price is justified or not amid the rising arrears.

The post If I’d put $5,000 in NAB shares at the start of 2024, here’s what I’d have now appeared first on The Motley Fool Australia.

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

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

More reading

• 4 ‘overheated’ ASX 200 shares to stay away from
• An 11% dividend yield from NAB shares? Here’s how these brave income investors achieved it!
• Why I might be selling my NAB stock in March
• Why are ASX investors so obsessed with dividends?
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

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.

from The Motley Fool Australia https://ift.tt/xN8z3Ee

Aiming for a lifestyle-boosting passive income from S&P/ASX 200 Index (ASX: XJO) shares?

Here’s how I’d go about building a $13,080 annual passive income by investing $5,000 in ASX 200 dividend stocks today.

Diversification, franking credits and patience

First, I’d have to be realistic about my timeline.

We’ll look at some potential time horizons below, and how I can make the magic of compounding work in my favour.

But unless I can find an ASX 200 stock yielding north of 250% (I can’t!), I won’t garner my $13,080 in annual passive income from a $5,000 investment overnight.

Second, I’d work to build a diversified portfolio of ASX 200 dividend shares, operating in various sectors and geographic locations. That will lower the risk of my income portfolio taking a big unexpected hit if one company or sector comes under pressure.

With $5,000 to invest, I’d stick with four high-yielding stocks for now. As my portfolio grows, I’d sell some of those holdings and expand that portfolio to 10 or so ASX shares.

And the third thing I’d aim for is ASX 200 dividend shares offering full franking credits. That will let me hold onto more of my passive income when the tax man comes knocking.

Four ASX 200 dividend stocks for passive income

With that said here are four high-yielding ASX shares I’d buy with $5,000 today to build that $13,080 passive income stream:

• ASX 200 energy stock Woodside Energy Group Ltd (ASX: WDS) trades on a fully franked trailing yield of 14.1%
• ASX 200 bank stock Westpac Banking Corp (ASX: WBC) trades on a fully franked trailing yield of 5.3%
• ASX 200 mining stock Fortescue Metals Group Ltd (ASX: FMG) trades on a fully franked trailing yield of 8.3%
• ASX 200 auto retail share Eagers Automotive Ltd (ASX: APE) trades on a fully franked trailing yield of 5.2%

If I were to invest an equal amount in each stock, I could expect to earn an average yield (based on the trailing yield) of 8.2%.

I’d also be hoping these companies post share price gains over time.

I believe that could conservatively see my total returns come out to 12% a year.

(Fuelled by a strong run from Fortescue, the average share price gains for these four ASX 200 stocks over the past five years is considerably higher than 12%.)

I’d also be sure to reinvest those dividends to make the most of compounding.

To the maths

So, how long will it take before I can start withdrawing my passive income?

Well, working with the 8.2% dividend yield, I’d need to build my ASX 200 share portfolio up to $159,517 to withdraw $13,080 a year without touching my capital.

Starting with $5,000 today, and achieving a 12% annual total return, I’d reach that goal in 29 years.

As always, before you invest a single dollar in ASX shares be sure to do your own careful research. If you’re time-poor or don’t feel comfortable with that, just reach out for some expert advice.

The post I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income appeared first on The Motley Fool Australia.

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

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

More reading

• Forget Fortescue and buy this iron ore share for a 33% return
• $2.1 million! Who are the highest paid ASX 200 directors?
• 4 ‘overheated’ ASX 200 shares to stay away from
• Here’s the Woodside dividend forecast through to 2026
• 5 things to watch on the ASX 200 on Thursday

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

from The Motley Fool Australia https://ift.tt/1n5Yp2m

Endeavour Group Ltd (ASX: EDV) shares have underperformed the market over the last 12 months.

Since this time last year, the drinks giant’s shares have lost over 20% of their value.

And with the ASX 200 index rising 11% over the same period, it means that this ASX dividend stock has underperformed the market by a disappointing 31%.

The good news for income investors, though, is that this could have created a compelling opportunity to buy a market-leader at a discount.

Is this an ASX dividend stock to buy?

Goldman Sachs thinks that investors should be snapping up Endeavour shares while they’re down. Particularly given its defensive qualities, dominant market share, and attractive valuation. The broker commented:

Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in. We are Buy rated on EDV.

Goldman has a buy rating and $6.20 price target on the ASX dividend stock. This implies potential upside of 17% for investors over the next 12 months.

Attractive dividend yields

One positive from the weakness in the Endeavour share price is that the potential dividend yield on offer has increased.

For example, Goldman Sachs is forecasting fully franked dividends per share of 22 cents in FY 2024 and FY 2025, and then 24 cents in FY 2026.

Based on the current Endeavour share price of $5.30, this would mean yields of 4.15%, 4.15%, and 4.5%, respectively.

This stretches the total potential return to beyond 21% for investors buying the ASX dividend stock at current levels.

The post 1 ASX dividend stock down over 20% to buy right now appeared first on The Motley Fool Australia.

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

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

More reading

• 3 ASX dividend shares to buy for a passive income boost
• 3 highly-rated ASX dividend shares for income investors to buy next week
• Buy Woolworths and these ASX dividend shares
• 34 ASX 200 shares with ex-dividend dates next week
• Average wage tops $100k, worries for inflation, e-commerce flies: Scott Phillips on Nine’s Late News

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

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