ASX exchange-traded funds (ETFs) offer a one-step process to diversify your stock holdings. 

Most ASX ETFs hold a sizeable basket of different shares. Or in some cases bonds or even cryptos.

ETFs have also gained in popularity among income investors seeking a simpler way to access dividends without having to research dozens of companies themselves.

While the majority of listed companies only pay out dividends once or twice per year, a few ASX ETFs make their distribution payments every month. A handy feature for income investors keen to access the dividends in a timely fashion.

This ASX ETF offers monthly dividend payments

Among the funds paying monthly distributions is Betashares Australian Dividend Harvester Fund (ASX: HVST).

HVST aims to offer investors mostly franked, passive income that beats the net income yield of the wider ASX.

The ETF provides instant diversity, holding 40 to 60 different shares. The portfolio is rebalanced every three months with the goal of providing the highest gross yield outcome.

Its top holdings by sector are in the financials sector (30%), the materials sector (25%) and the healthcare sector (10%).

As at 31 January, its two biggest shareholdings were BHP Group Ltd (ASX: BHP) at 13.2% and Commonwealth Bank of Australia (ASX: CBA) at 10%.

The ASX ETF’s 12-month distribution yield works out to 7.2%. The fund’s gross distribution yield over the 12 months was 10.1%, at an average franking level of 93%.  

HVST’s most recent monthly dividend of 7.1 cents per share will be paid out next Thursday, 16 March, with a 78% franking level.

Just as with any share trading on the ASX, the ETF’s returns will also be impacted by its share price when an investor opts to sell.

As you can see in the chart above, the HVST share price is up 4% in 2023 and down 3% over the past 12 months.

The post Guess which ASX ETF pays dividends every month? appeared first on The Motley Fool Australia.

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• Top ASX ETFs to buy in March 2023

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

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Wesfarmers Ltd (ASX: WES) is one of the leading businesses for potential passive income in my opinion. But, is the right time to buy?

I think it’s important to recognise that there can be a difference between how good a business is and whether it’s a good time to buy its shares.

Over the past five years, BHP Group Ltd (ASX: BHP) has been one of the best and biggest dividend payers in the world. But, the BHP share price has been very volatile. There can be attractive times to invest in the company, and times when it’d be wise to stay on the sidelines.

While I don’t think Wesfarmers shares are as cyclical as BHP’s, I think it’s just as worthwhile to question their price.

Interestingly, the Wesfarmers share price is slightly up over the past 12 months, despite higher interest rates, though it is still down more than 20% since August 2021. The Wesfarmers share price has risen by more than 10% in 2023 to date.

Is now a good time to buy Wesfarmers shares for passive income?

I’d always like to buy my target investments at an even cheaper price. If I had a crystal ball, it’d be able to tell me whether the negativity surrounding higher interest rates is going to hurt Wesfarmers’ share price or the company’s profit in the next 12 months.

But we don’t know what’s going to happen next, so we can only judge whether the current investment is good or not.

According to Commsec, the Wesfarmers share price is valued at 23x FY23’s estimated earnings based on an earnings per share (EPS) prediction of $2.16. By FY25, EPS is expected to rise to $2.49.

The dividend is expected to come in at $1.87 per share in FY23, $1.94 per share in FY24, and $2.19 per share in FY25.

That looks like attractive passive dividend income growth in 2023 and beyond. The current projected grossed-up dividend yield for FY23 is 5.3%. That looks like a solid yield to me and comfortably more than what investors might be able to get from a term deposit.

I think it’s a quality business

I think that Bunnings, Kmart, and the Wesfarmers chemicals, energy and fertiliser (WesCEF) business are three of the best businesses in Australia. The fact that they continue to invest and grow is a very positive sign in my opinion. Ongoing population growth in Australia is a useful tailwind for Wesfarmers’ earnings. Strong commodity prices are helpful for WesCEF. I think the future looks bright for the company.

It’d have been more rewarding to buy Wesfarmers shares at a price of under $43 last year. However, I think Wesfarmers will be able to keep growing profit for years to come. But there could be a time that the Wesfarmers share price goes down to a more attractive level during 2023.

Wesfarmers share price snapshot

Over the past month, Wesfarmers shares have risen by 2%.

The post Is right now the time to buy Wesfarmers shares for passive income? appeared first on The Motley Fool Australia.

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More reading

• How can I hope to retire rich when the share market is falling?
• Experts name 2 ASX 200 dividend shares for a passive income boost
• I’d aim for $1 million, thanks to just a few ASX shares
• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• ASX investors: How to earn $533 each month in passive income

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 positions in and has recommended 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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The S&P/ASX 200 Index (ASX: XJO) has had a rather weird, yet overall positive, day of trading at this point on Thursday. 

After initially plunging soon after market open this morning, the ASX 200 has staged a recovery over the session, and is currently up by 0.2% at the time of writing, putting the Index at just over 7,320 points.

Let’s hope this optimism holds. But whilst we wait and see, let’s now take stock of the shares that are currently topping the ASX 200’s share trading volume charts right now, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Thursday

Telstra Group Ltd (ASX: TLS)

First up this Thursday is the ASX 200 telco Telstra. So far this session, a decent 14.88 million Telstra shares have been phoned in for trading. We haven’t had any fresh news from Telstra for more than a week. So this volume is the probable consequence of the company’s share price movements today.

So far this session, Telstra has had a bumpy but positive movement. The telco’s shares are presently up a healthy 0.73% at $4.15 each but have bounced between $4.13 and $4.17 over the trading day. It’s probably this bouncing around which is eliciting the share volumes on display here.

South32 Ltd (ASX: S32)

Next up is the ASX 200 mining share South32, with a chunky 15.1 million shares having been exchanged on the share market at this point. This could be an after-effect of South32 going ex-dividend this morning.

As we dug into earlier, the resources giant has cut off eligibility for its upcoming dividend payment today, with the South32 share price falling by a notable 1.3% as a result. It could be this drop that is responsible for South32’s presence here today.

Pilbara Minerals Ltd (ASX: PLS)

Finally today, we have the ASX 200 lithium leader Pilbara Minerals. This Thursday has seen a sizeable 18.26 million Pilbara shares change hands as it currently stands. There haven’t been any developments out of this company itself this Thursday.

But that hasn’t held back investors from giving the Pilbara share price, alongside most other ASX lithium shares, a 4.02% boost so far to $4.26 a share. It’s this gain that has probably resulted in Pilbara’s position on the top of this list today.

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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More reading

• How can I hope to retire rich when the share market is falling?
• Is the party well and truly over for ASX 200 coal shares?
• Here’s why the South32 share price is being hammered today
• Here’s how I’d invest $20,000 in ASX 200 shares for a supercharged second income
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in 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 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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The Gascoyne Resources Ltd (ASX: GCY) share price has returned from its suspension and crashed deep into the red.

At one stage today, the ASX gold miner’s shares were down as much as 49% to 9.9 cents.

The Gascoyne Resources share price has recovered a touch since then but remains down 43% at 11.2 cents.

Why is this ASX gold share crashing?

Investors have been selling down this ASX gold share on Thursday after it completed a highly dilutive capital raising.

According to the release, the company has raised gross proceeds of $17.8 million following the settlement of an institutional placement and accelerated institutional entitlement offer. These funds were raised at 10 cents per new share, which represents a 48.7% discount to its last close price.

The company will now look to raise a further $8.5 million from retail investors at the same price.

Why is it raising funds?

The company intends to use the proceeds of the capital raising to support its “exciting” Never Never gold deposit.

Gascoyne Resources’ Managing Director and CEO, Simon Lawson, commented:

The strong support for the equity raising reinforces the value of Gascoyne’s portfolio and validates the steps taken by management late last year to preserve shareholder value through placing the Dalgaranga gold mine on care and maintenance.

We believe we have a very exciting future as Gascoyne is fully funded through to mid-2024 and is able to spend considerable time and money on delineating and expanding the exciting high-grade Never Never gold deposit.

The ASX gold share also notes that Never Never is expected to be the cornerstone of a new, higher-grade mine plan with a restart decision at Dalgaranga targeted for the second half of 2024.

The post Guess which ASX gold share just crashed 49% appeared first on The Motley Fool Australia.

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More reading

• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
• 7 ASX All Ordinaries shares smashing new 52-week highs today
• Why 29Metals, BHP, Helia, and Rio Tinto shares are dropping today
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• How can I hope to retire rich when the share market is falling?

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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ASX rare earths shares including Lynas Rare Earths Ltd (ASX: LYC) shares and Arafura Rare Earths Ltd (ASX: ARU) shares have had a tough trot of late.

Since the start of the month, the Lynas share price has dipped by 9.2%. It hit a new 52-week low of $7.26 on Tuesday. Today, Lynas shares are trading for $7.45.

The Arafura Rare Earths share price is up 0.8% since 1 March but has endured a rough ride. The stock fell 8.3% over the first three days of trading in March before recovering to 60 cents per share today.

The cause of this drama for Lynas and Arafura and fellow ASX rare earths shares?

That’d be Tesla Inc (NASDAQ: TSLA).

On 1 March the global electric vehicle giant announced its next-generation EV motor won’t contain any rare earths. 

But analysts at Adamas Intelligence reckon ASX investors’ concerns over this news are ‘overblown’.

Let’s investigate.

How Tesla slapped down the Lynas share price

Adamas Intelligence is an independent research and advisory services company specialising in critical metals and minerals.

In commentary published on its website, Adamas says Tesla’s decision to do away with rare earths motor magnets means it will likely use a ferrite magnet. This will make the cars heavier and less efficient.

Traditional EVs use magnets created with a rare earths alloy of neodymium, iron, and boron (NdFeB).

Adamas points out that Tesla’s primary goal is to create cars with a high performance-efficiency balance. So the company’s decision to abandon NdFeB magnets is surprising.

Tesla justified the change by saying it anticipates problems with rare earths supply. It’s also worried about the environmental and health impacts of mining the minerals.

But as Adamas points out, China has been the world’s primary supplier of rare earths. New suppliers are now emerging whose operations are less environmentally damaging due to stricter regulation.

Adamas says:

Today, there are more supply options than just China/Myanmar and others on the cusp of starting production – options that are transparent, close to home (for Tesla in particular) and substantially less impactful on the environment than the China production of yesteryear.

Currently, Lynas is the only significant separated rare earths producer of scale outside China.

Implications of Tesla’s decision ‘expected to be minor’

Adamas says its own research indicates just 12% of global NdFeB magnet consumption in 2022 was for EV manufacture.

Of that 12%, Telsa makes up 15% to 20%. That makes its overall contribution to global NdFeB magnet demand (excluding micromotors, sensors and speakers) just 2% to 3%.

So, even if Tesla were to dump NdFeB motors across its entire fleet, “the global NdFeB market stands to lose a mere 2% to 3% of demand in the near-term, and maximum 3% to 4% over the long-term assuming Tesla maintains its EV market leadership”.

Adamas concludes the implications for the global NdFeB market are “expected to be minor”.

Market reaction ‘largely overblown’

Adamas says:

The media and market’s reaction to the news has been largely overblown, speaking to a broad misunderstanding of the NdFeB market’s supply and demand fundamentals.

Looking forward to 2035, Adamas forecasts that global demand for NdFeB magnets will triple while global production will only double, constrained by long lead times to bring online new rare earth oxide production.

In relation to the magnitude of the expected supply gap, a 3% to 4% drop in demand by 2035 would go virtually unnoticed.

Top broker Bell Potter also describes the sell-off in ASX rare earths shares as a ‘knee-jerk reaction‘.

The broker says the world will still need a materially increased supply of rare earths no matter what Tesla does.

The post Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Are Arafura shares still a buy if Tesla ditches rare earths?
• Lynas share price rebounds on $200m Japanese Government investment
• Lynas Rare Earths has plunged 20% in a month: Is it a buy?
• Why did the Lynas share price just hit a 52-week low?

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

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It’s been a pretty positive day for ASX shares and the All Ordinaries Index (ASX: XAO) so far this Thursday. After a rocky start, the All Ords is tentatively in the green at the time of writing, having put on 0.12%, which lifts the Index to just over 7,500 points.

But some All Ordinaries shares are doing far better than that.

In fact, there are at least seven that have just hit new 52-week highs this session. Let’s check ’em out.

7 ASX All Ords shares at new 52-week highs this Thursday

First up we have Adriatic Metals plc (ASX: ADT). This mining exploration company has interests in a number of metals, including silver. This company is having a whale of a time today, presently up a pleasing 5.4% at $3.80 a share.

Earlier today, Adriatic Metals hit $3.81, which is both the company’s new 52-week high and all-time record high. The shares are up more than 22% year to date in 2023.

Next up there’s Data#3 Ltd (ASX: DTL) to consider. All Ords tech share Data3 is also having a corker. This company’s gain doesn’t look too dramatic, up 0.6% at $7.64. But $7.64 is Data3’s new 52-week and all-time high as well. This company has gained 15.6% over 2023 thus far.

A more well-known name in Myer Holdings Ltd (ASX: MYR) is another All Ords share on fire today. Myer is finally back over $1 a share for the first time since 2017, spiking 17.8% so far today to $1.12 a share.

The famous retailer reported earnings this morning, and investors have been delighted with a huge increase in profits and a special dividend. The company’s new 52-week high is now $1.14 a share, putting Myer up a whopping 68% year to date.

Then there’s Avita Medical Inc (ASX: AVH) to consider. All Ordinaries healthcare share Avita has also enjoyed a milder gain today, rising 1.64% up to $4.35 a share. But the company touched $.41 each this morning, which represents a new 52-week high for Avita.

This company has caught fire following its earnings last month. Avita is now up a massive 125% in 2023 so far.

What about Qantas, Eagers and Inghams?

Another familiar name in Qantas Airways Limited (ASX: QAN) is the next share worth checking out. This is another company that has seen investors flooding in after a successful earnings report in February, which included a $500 million share buyback program. ‘

The Qantas share price is bouncing around a bit today but hit a new 52-week high of $6.87 just after midday today. That puts it up almost 14% this year so far.

It’s a similar story with All Ords car dealership company Eagers Automotive Ltd (ASX: APE). Eagers shares have also been playing jump rope today. But this afternoon has seen the company notch up a new 52-week high of $14.78 a share.

Again, it seems we have Eagers’ latest earnings report to thank. Investors have been rediscovering their love for this company after last month’s record dividend announcement. Eagers is now up 36% year to date.

Finally, let’s check out All Ordinaries poultry share Inghams Group Ltd (ASX: ING). Inghams is yet another share that has been in both positive and negative territory this Thursday.

But when it was positive, it was positive. Inghams recorded a high of $3.30 a share soon after market open this morning – the new 52-week high.

Once more, it seems we have Inghams’ latest earnings to look at to explain this new high. Investors initially didn’t like what the company had to say last month. But the market seems to have reconsidered, with Inghams now up by more than 14% in 2023 to date.

The post 7 ASX All Ordinaries shares smashing new 52-week highs today appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Qantas share price could surge to $10: JPMorgan
• Myer share price rockets 17% on doubled profits and special dividend
• Qantas share price flying higher despite new labour disruptions
• Qantas share price takes off to new multi-year high on Tuesday

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

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The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up 0.1% to 7,315.2 points.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is down almost 6% to $1.45. Investors have been selling this copper miner’s shares after it revealed that all production and non-essential activity has been suspended at Capricorn Copper following extremely heavy rainfall on 7 March. Management estimates that the suspension may continue for a period of up to three-to-four weeks.

BHP Group Ltd (ASX: BHP)

The BHP share price is down 2.5% to $46.51. This has been driven by the mining giant’s shares trading ex-dividend this morning for its latest dividend. The Big Australian is paying a fully franked interim dividend of 130.6 cents per share. Eligible shareholders can look forward to receiving this on 30 March.

Helia Group Ltd (ASX: HLI)

The Helia share price has crashed 15% to $2.90. Helia, which is the new name of Genworth Mortgage Insurance, is also trading ex-dividend on Thursday. Last month, it declared total fully franked dividends of 41 cents per share. This comprises a final dividend of 14 cents per share and a special dividend of 27 cents per share. These will be paid to shareholders on 24 March.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 2.5% to $121.67. This is also due to the miner’s shares going ex-dividend on Thursday. Rio Tinto will be paying its 326.5 cents per share fully franked final dividend to eligible shareholders next month on 20 April.

The post Why 29Metals, BHP, Helia, and Rio Tinto shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• How can I hope to retire rich when the share market is falling?
• Why is the Rio Tinto share price tumbling 4% on Thursday?
• Why is the BHP share price sinking today?
• 5 things to watch on the ASX 200 on Thursday
• Last chance to snag the next dividend from these 4 ASX 200 mining shares

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a modest gain. The benchmark is currently up slightly to 7,311.3 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is up 6% to 60 cents. This is despite there being no news out of the rare earths developer. However, it is worth noting that Bell Potter has called recent share price weakness following comments out of Tesla an overreaction. It has retained its speculative buy rating and 72 cents price target.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is up 15% to $1.10. This has been driven by the release of the department store operator’s half-year results. It revealed a 24.2% increase in total sales to $1,884.9 million and the doubling of its net profit to $65 million. This allowed Myer to declare interim and special dividends of 4 cents per share each.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price is up almost 4% to 68 cents. Investors have been buying this health technology company’s shares following the release of a business update. Volpara revealed a new contract with Sutter Health for its Risk Pathways product. This represents an additional US$900,000 in Total Contract Value (TCV) over an initial three-year period.

Xero Limited (ASX: XRO)

The Xero share price is up 9% to $85.79. This morning, this cloud accounting platform provider announced a major cost cutting plan. This will involve reducing its workforce by 700-800 roles, which represents upwards of 16.3% of its 4,915 full time equivalent employees. Management expects this to reduce its operating expense to revenue ratio to approximately 75% in FY 2024. This ratio stood at 83.9% in the first half.

The post Why Arafura, Myer, Volpara, and Xero shares are zooming higher appeared first on The Motley Fool Australia.

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More reading

• Are Arafura shares still a buy if Tesla ditches rare earths?
• Why is the Xero share price racing 11% higher today?
• Myer share price rockets 17% on doubled profits and special dividend
• Xero share price on watch amid major cost cutting plans
• Top ASX growth shares to buy in March 2023

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Volpara Health Technologies and Xero. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share market can be both a help and a hindrance when it comes to building wealth. But it’s only ever a hindrance when investors let it be. 

The market is a funny thing. We all love the liquidity that comes from having shares fluctuate in value on a daily basis. But having the quoted prices of our assets changing constantly can also be very unnerving. Particularly in a market crash or similar event.

Market crashes aren’t common. But they do come around sooner or later. And they can have an extremely negative impact on investors’ mindsets. Imagine if you had 80-90% of your net worth invested in the share market during the global financial crisis of 2007-2009. At one point, you would have seen the value of your portfolio decline by more than 50%.

So how can one hope to retire rich if the market falls like that? After all, it took several years for the ASX 200 to recover from the global financial crisis. That’s a lot of years to live off a reduced asset base.

Well, the answer is dividends.

Most investors are familiar with dividend payments. In fact, many would probably think the passive income you can get from a dividend share is one of the best things about investing in the stock market.

But what most investors might not realise is how much dividends contribute to investors’ overall returns here on the ASX.

Dividends are the key to retiring rich – especially in a stock market crash

To illustrate, let’s examine one of ASX’s oldest index funds. The SPDR S&P/ASX 200 Fund (ASX: STW) has been listed on the share market since 2001, As such, it has a very enlightening history we can look back on.

So according to this ETF’s provider, this ASX 200 index fund has returned an average performance of 7.86% per annum since it first listed in 2001, assuming dividends are reinvested.

But of that 7.86%, only 3.19% per annum comes from capital growth. The remaining 4.67% per annum hails from dividend income. That’s not even close to a 50-50 split.

During a market crash, it’s capital returns that get hit hard. But many ASX dividend shares keep their income taps open. During the COVID crash of 2020, the ASX 200 fell by roughly 32.5% top to bottom:

But many ASX dividend shares kept paying dividends.

BHP Group Ltd (ASX: BHP) supported investors with a solid $1.75 in dividends per share. Fortescue Metals Group Limited (ASX: FMG) did the same, paying out one of the larger annual dividend payments in its history at $1.76 per share.

It was a similar story with Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

During market downturns, the dividend payments from ASX shares can still keep you happily retired. You might not feel rich, with the value of shares fluctuating wildly. But the returns from dividends can certainly help you to stay afloat until the markets can recover.

The post How can I hope to retire rich when the share market is falling? appeared first on The Motley Fool Australia.

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More reading

• Will the Fortescue share price crash in 2023?
• Why is the BHP share price sinking today?
• Here’s how I’d invest $20,000 in ASX 200 shares for a supercharged second income
• 5 things to watch on the ASX 200 on Thursday
• Experts name 2 ASX 200 dividend shares for a passive income boost

Motley Fool contributor Sebastian Bowen has positions in 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 Coles 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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ASX cannabis stocks provide a valuable service to the many thousands of Australians who benefit from the legal, medicinal benefits of their product.

All told, the cannabis shares have grown, cured, and prepared medicinal marijuana products for more than 250,000 Australians. That’s how many patients have received prescriptions over the past five years, according to data from the Lambert Initiative for Cannabinoid Therapeutics.

In Victoria alone, some 65,000 people currently have medicinal cannabis prescriptions.

And it’s ASX cannabis stocks like Incannex Healthcare Ltd (ASX: IHL), Creso Pharma Ltd (ASX: CPH), and Cann Group Ltd (ASX: CAN) that make it all possible.

But using medicinal cannabis comes with an unexpected legal risk. One that Victoria’s lawmakers are working on rectifying.

Victoria’s road rules up for an overhaul

In what’s likely to be welcome news to shareholders in ASX cannabis stocks, and more welcome still to patients taking medicinal marijuana, Victoria is looking to amend its drug-driving laws to reflect the legality of medicinal cannabis.

As The Guardian reports, the Road Safety Amendment Bill was introduced by newly elected Legalise Cannabis MPs. The bill was said to have support from both major parties. Yesterday, Victoria’s government announced it would take up the issue within the next few months.

As it stands, it’s a crime for a driver to have any trace of THC (the active component in marijuana) in their system. The problem here stems from the fact that THC can often be detected for many weeks after use. This means drivers with a legal prescription can find themselves guilty of drugged driving even if they’re in no way impaired.

Under the Road Safety Amendment, the law would treat medicinal cannabis like other prescription medicines.

Labor MP Harriet Shing is a member of the medicinal cannabis and safe driving working group. She said it was a “significant priority” for the law to distinguish between the presence of THC in a person’s system “and impairment”.

According to Shing (quoted by The Guardian):

This work has been going on for a number of years now. The working group has actually discussed at length the complexities of this matter and the options and opportunities that might be available.

We need … to find a way through all of this so that all drivers are able to be safe on our roads and so that we can provide those medical supports that Victorians need and indeed deserve.

Legalise Cannabis MP Rachel Payne said, “We are hopeful a solution can be found fast, considering the negative impact the law currently has on Victorian patients every day.”

How have these ASX cannabis stocks been tracking?

The ASX cannabis stocks we listed above have all seen big falls in their share prices over the last year.

Over the past 12 months:

• Creso Pharma shares are down 76%
• Cann Group shares are down 31%
• Incannex Healthcare shares are down 70%

The post Buying ASX cannabis stocks? Here’s what the Victorian government is considering right now appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX 300 cannabis share just rocket 12%?

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

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