The ASX 50 index is where investors will find many of the highest quality companies that the Australian share market has to offer.

But which of these companies could be good options for investors right now? Let’s take a look at two ASX 50 shares that analysts rate very highly:

CSL Limited (ASX: CSL)

The first ASX 50 share that we are going to look at is CSL.

It is one of the world’s leading biotechnology companies, comprising the CSL Behring, CSL Vifor, and Seqirus businesses.

Over many decades, CSL has spent tens of billions on research and development (R&D) activities and acquisitions. This has led to the company owning a portfolio filled to the brim with high quality therapies and vaccines.

But management is never one to rest on its laurels. The company continues to invests 10%-11% of its sales revenue back into R&D each year. This means that CSL has a large number of potentially lucrative and life-saving therapies under development that will support its future growth.

The team at Citi has been bullish on CSL for some time and this remains the case today. Particularly given how recent industry commentary supports its view that immunoglobulin demand will grow strongly in the coming years. It said:

We attended Takeda’s virtual Plasma-Derived Therapies (PDT) investor event. Takeda is expecting mid-to-high single digit volume growth for Immunoglobulin (Ig) over the medium-term despite the competition from FcRns – this is in-line with CSL’s expectations and our forecasts.

Citi has a buy rating and $325.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 50 share that is highly rated by analysts is Telstra. It is of course Australia’s largest telecommunications company.

Telstra went through a difficult period in the 2010s following the launch of the NBN. Pleasingly, that is all behind the company now and growth is back on the agenda thanks to the success of its T22 strategy and the launch of its successor – T25.

Commenting on the strategy, its CEO at the time, Andy Penn, said: “If T22 was a strategy of necessity, T25 is a strategy for growth.”

Goldman Sachs appears to have confidence in the strategy based on its earnings growth forecasts. In addition, the broker highlights that this growth is low risk, which makes it even more appealing for investors. It said:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.

Goldman currently has a buy rating and $4.65 price target on Telstra’s shares.

The post 2 world-class ASX 50 shares to buy for your portfolio appeared first on The Motley Fool Australia.

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More reading

• What could happen to Telstra shares if interest rates fall?
• Are CSL shares set for an earnings boost?
• Own Telstra shares? You could be on track for an 18% gain in 2024
• Are ASX blue-chip shares actually safe investments?
• Top brokers name 3 ASX shares to buy next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. 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 a lot of ASX dividend stocks to choose from on the Australian share market.

But one for income investors to watch closely could be Accent Group Ltd (ASX: AX1).

Not only does the footwear focused retailer offer a very generous dividend yield today, but it has been tipped to continue increasing its dividend meaningfully in the coming years.

Here’s what you need to know about this ASX dividend stock

Just 10 years ago, the HypeDC and The Athlete’s Foot owner was paying investors a 5 cents per share fully franked dividend.

But thanks to the popularity of its retail brands and management’s relentless store rollouts, this year the company has been tipped to be in a position to pay more than double this amount.

But if you thought the growth was going to slow, think again. Analysts are then expecting a dividend over triple what it paid 10 years ago in FY 2026.

Dividend forecast

Let’s take a look now at what analysts at Bell Potter are forecasting from this ASX dividend stock in the coming years. The broker expects:

• FY 2024
  • Underlying NPAT of $77.9 million
  • Dividends per share 11.1 cents
• FY 2025
  • Underlying NPAT of $91.8 million
  • Dividends per share 13 cents
• FY 2026
  • Underlying NPAT of $109.9 million
  • Dividends per share 15.6 cents

Based on the current Accent share price of $2.02, this will mean fully franked dividend yields of 5.5%, 6.4%, and 7.7%, respectively.

But the returns won’t stop there. Bell Potter currently has a buy rating and $2.35 price target on this ASX dividend stock. This implies over 16% upside for investors from current levels over the next 12 months.

If we add in the forecast dividends for FY 2024, the total 12-month potential return increases to almost 22%. The broker commented:

We continue to view AX1 as a relative preference in our retail sector coverage given the company’s scale & exposure in terms of channels, brands & size as the overall industry navigates a challenging retail spend environment in addition to growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy (~8% on owned sales).

The post ASX domination: The 5.5% dividend stock to watch appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2024
• Buying ASX retail shares? You’ll want to see these numbers
• Buy Westpac and these ASX 300 dividend shares now: analysts
• How investing $100 per week can create $1,500 in annual ASX dividend income
• Here’s why I invested in Accent shares for dividend income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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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Investors looking for dependable passive income in 2024 may wish to run their slide rules over these two quality S&P/ASX 200 Index (ASX: XJO) dividend shares.

Both companies have long track records of paying two (or more, on rare occasion) fully franked dividends a year. Even during the pandemic-addled times in 2020.

Both have seen their share prices rise significantly over the past year. And both offer very solid yields.

Which ASX 200 dividend shares am I talking about?

I’m glad you asked!

Mining passive income from the iron ore boom

The first quality ASX 200 dividend share to investigate for passive income in 2024 is iron ore mining giant Fortescue Metals Group Ltd (ASX: FMG).

Over the past 12 months, Fortescue paid an interim dividend of 75 cents a share on 29 March, followed by a final dividend of $1.00 a share paid to eligible investors on 28 September.

That equates to a full-year passive income payout of $1.75 a share.

At the recent Fortescue share price of $29.60, that sees this ASX 200 dividend share trading at a fully franked trailing yield of 5.9%.

Now, Fortescue’s 2023 dividends were down a bit from 2022, and significantly lower than 2021, amid a retrace in the iron ore price from the 2021 highs.

But the industrial metal, Fortescue’s top revenue earner, has been gaining since late May last year when it was trading for just under US$100 per tonne.

Iron ore was trading for a bit over US$133 per tonne yesterday. And, according to the analysts at Citi, iron ore should hit US$150 per tonne during the first three months of 2024.

That’s largely thanks to a ramp-up in stimulus measures from the Chinese government to rekindle the country’s struggling, steel-hungry property markets.

With that in mind, this is one reliable ASX 200 dividend share passive income investors may wish to add to their portfolios.

The Fortescue share price is up 33% since this time last year.

A rock-solid ASX 200 dividend share

Commonwealth Bank of Australia (ASX: CBA) is Australia’s largest bank stock and the second biggest company listed on the ASX.

The passive income payments from this ASX 200 dividend share have been remarkably stable over the past 10 years. That’s with the sole exception of the second half of 2020 when COVID-19 saw the final dividend cut roughly in half.

CBA’s final dividend of 2023, paid on 28 September, set a new all-time high. CBA also delivered an interim dividend of $2.10 a share on 30 March.

This works out to a full-year passive income payout of $4.50 per share.

At the recent CBA share price of $117.64, that sees this ASX 200 dividend share offering a fully franked 3.8%.

The CBA share price is up 7% over the past 12 months.

The post 2 ASX 200 dividend shares to buy in 2024 for dependable passive income appeared first on The Motley Fool Australia.

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More reading

• Breaking! NAB shares (and CBA) just hit a new 52-week high
• Top 5 most profitable ASX large-cap shares of 2023
• $30 each? Here’s why the Fortescue share price just hit a new all-time high
• Buying ASX 200 mining shares? Here’s Citi’s 2024 prediction for the iron ore price
• Are ASX blue-chip shares actually safe investments?

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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) bounced back from a soft start to storm to a record high. The benchmark index rose 1.1% to 7,680.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to sink on Thursday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.55% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 has fallen 0.9%, and the Nasdaq is 1.4% lower. This follows the US Federal Reserve’s meeting and comments that it’s not ready to cut rates.

Oil prices tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 2.4% to US$75.93 a barrel and the Brent crude oil price is down 1.4% to US$81.73 a barrel. This follows news that the US Federal Reserve isn’t in a rush to cut rates.

A2 Milk rated as a hold

A2 Milk Company Ltd (ASX: A2M) shares could be close to fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating with a boosted price target of $5.15. This implies 6% upside from current levels. Bell Potter said: “On balance trends appear slightly more positive through 1H24TD. We have some lingering hesitation given the ongoing dispute with IMF supplier (and SAMR holder) SM1 and the expanded scope of arbitration.”

Gold price rises

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent day of trade after the gold price rose overnight. According to CNBC, the spot gold price is up 0.55% to US$2,062.1 an ounce. Gold rose despite the US Fed ruling out rate cuts in the near future.

Buy Life360 shares

Goldman Sachs thinks investors should be buying Life360 Inc (ASX: 360) shares. It notes that “Life360’s valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation).” Goldman has reiterated its buy rating and $10.50 price target on its shares.

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

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More reading

• These were the best performers on the ASX 200 in January
• Here are the top 10 ASX 200 shares today
• 3 big questions about the Australian stock market in 2024
• Big ASX 200 news! Aussie shares just reached a new record high
• ASX 200 off to the races as Australia’s inflation data surprises to the downside

Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Nothing demonstrates the warning that “past performance is not an indicator of the future” better than watching former market darlings crash and burn.

A prime example from the S&P/ASX 200 Index (ASX: XJO) in recent times is Domino’s Pizza Enterprises Ltd (ASX: DMP).

The stock made many Australians wealthy in the 2010s and even during the early years of the pandemic.

But it has been a sorry tale the past couple of years.

The Domino’s share price, if you can believe it, has tumbled 75% from its high in September 2021.

Just last week investors ran from the stock like it was a burning building, sending it 31% down in a single day.

Good God, that’s some heavy discounting.

So, quite rightly, some investors are now asking whether Domino’s shares have capitulated. 

Is it time to pick up the bargain of the century?

What the heck happened last week?

Firstly, let’s take a look at what precipitated last Thursday’s disastrous fall.

It seems a business update that day sent the market into a frenzy.

“Domino’s preliminary net profit before tax is expected to be between $87 million and $90 million,” reported The Motley Fool’s James Mickleboro.

“It is still well short of the consensus estimate of $103 million, which explains why Domino’s shares are taking a beating this morning.”

Within days, both Goldman Sachs Group Inc (NYSE: GS) and Macquarie Group Ltd (ASX: MQG) downgraded their share price expectations for the pizza chain.

Do the professionals think Domino’s share price is low enough to buy?

And unfortunately that probably reflects the sentiment of the professional community at large about Domino’s prospects.

CMC Invest shows only five out of 16 analysts rate the stock as a buy at the moment. 

Although the finance industry is notorious for its reluctance to put out sell ratings, seven analysts have gone down that route. 

That’s a damning assessment for a company that used to be a staple in many portfolios.

So, at this stage, Domino’s is not exactly a no-brainer buy. 

That’s not to say you can’t make money out of it in the long run, but there are enough risks still that committing now would take a significant leap of faith.

The post As the Domino’s share price continues to struggle, is it a no-brainer buy? appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2024
• Is the Domino’s share price a buy after its plunge?
• Why Bapcor, Domino’s, Santana Minerals, and Woodside shares are charging higher
• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why are Domino’s shares sinking 22% today?

Motley Fool contributor Tony Yoo has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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If you’re an income investor and have a penchant for buy and hold investing, then it could be worth considering the two ASX dividend stocks listed below.

Here’s why they could be top long term options for investors:

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation could be a great ASX dividend stock to buy and hold. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.

The team at Citi is positive on Lottery Corporation and has a buy rating and $5.60 price target on its shares.

The broker highlights its defensive qualities and strong pricing power. In respect to the latter, the broker suggests that the market “underestimates the uplift to the contribution margin” from recent price rises.

It is also worth noting that since this note, the Powerball product has been on a stunning jackpot run. This could mean stronger than expected earnings and dividends during the second half.

In the meantime, the broker is forecasting dividends per share of 17 cents in FY 2024 and 18 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.06, this will mean fully franked yields 3.3% and 3.5%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX dividend stock that could be a great long term pick is Lovisa. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But management isn’t settling for that. It has huge global expansion plans, which are being overseen by a highly experienced CEO that has an incredible track record.

Morgans is confident in the company’s plans. It notes that “investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.”

Morgans has an add rating and $27.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. Based on the current Lovisa share price of $23.02, this implies yields of 3% and 3.5%, respectively.

The post Buy and hold these ASX dividend stocks for a decade appeared first on The Motley Fool Australia.

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More reading

• ASX passive income seekers: Invest $10,000 for $520 in monthly income
• Buying ASX retail shares? You’ll want to see these numbers
• Why I think Lovisa stock is an amazing ASX 200 buy for both dividends and growth
• Here’s how I’m targeting a generous ASX passive income in retirement!
• Here are 10 ASX shares I’d buy in 2024

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lottery and Lovisa. The Motley Fool Australia has recommended Lovisa. 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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On Wednesday, the Australian Bureau of Statistics released the latest inflation data and revealed a lower than expected reading.

According to the release, consumer prices rose a modest 0.6% during the December quarter and 4.1% over the last 12 months.

In light of this, the market is now starting to believe that interest rates could start to fall in the near future.

This could be good news for Telstra Group Ltd (ASX: TLS) shares, which have struggled as interest rates climbed.

That’s because the telco giant is treated like bond proxy by many investors. So, when actual bonds offer yields that are equally as attractive as Telstra’s dividend yield, they will just buy the risk-free bonds instead.

But what might happen if interest rates fall? Will that make Telstra and other ASX telco shares more attractive?

Goldman Sachs thinks that will be the case. While it isn’t overly optimistic on interest rates falling materially any time soon, it does believe that Telstra could benefit when they do.

What is the broker saying about interest rates and Telstra shares?

The broker isn’t expecting interest rates to be cut aggressively but sees scope for a gradual adjustment. It said:

With our local and global economics teams forecasting rate cuts through 2024, alongside 2yr US rates having compressed significantly in recent months, clearly market expectations for interest rates will be both a significant driver of shareholder returns (and potentially earnings) for our TMT coverage through 2024. However we would stress that our global economists believe the market is discounting too much easing at this point, given they remain upbeat on the growth outlook – potentially suggesting a series of gradual adjustment cuts is more likely than an aggressive easing campaign.

This is likely to be good news for Telstra shareholders. It adds:

As recently noted by our strategists, when interest rates started to fall last year, they believed ‘Bond Proxies’ weren’t as expensive as they appeared on face value thanks to more conservative balance sheets and pay-out policies. Hence following their recent underperformance (vs. cyclicals) they see an even stronger case to add to defensive exposures – supporting our positive view on Telstra (Buy).

Goldman currently has a buy rating and $4.65 price target on Telstra’s shares. It is also forecasting fully franked dividends per share of 18 cents in FY 2024, 19 cents in FY 2025, and 20 cents in FY 2026.

The post What could happen to Telstra shares if interest rates fall? appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX 200 dividend shares are buys
• Own Telstra shares? You could be on track for an 18% gain in 2024
• 3 world-class ASX retirement shares to buy now
• Retirees: 2 Top ASX dividend shares I’d buy now for passive income in 2024
• Brokers name 3 ASX dividend shares to buy now

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 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 S&P/ASX 200 Index (ASX: XJO) started the year with a bang. The benchmark index rose a decent 1.2% in January to finish at a record high close of 7,680.7 points.

While this was a great return, it pales in comparison to some of the gains that were made last month.

For example, the five ASX 200 shares listed below absolutely smashed the market in January:

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price was the best performer on the ASX 200 index last month with a stunning 38% gain. Investors were scrambling to buy the uranium developer’s shares after the price of the chemical element surged to new highs. This was driven by an update from the world’s largest uranium developer, which warned that it could fall short of guidance in the coming years. For the same reasons, Paladin Energy Ltd (ASX: PDN) shares raced 31% higher in January.

Megaport Ltd (ASX: MP1)

The Megaport share price was on fire last month and also stormed 38% higher. The majority of this gain came at the end of the month when the elasticity connectivity and network services interconnection provider released its quarterly update. Megaport reported total revenue of $48.6 million and EBITDA of $30 million. The latter was well ahead of expectations. Goldman Sachs commented: “MP1 reported 1H24 revenue of A$95mn (+35% yoy, +1% vs. GSe prior) and EBITDA of $30mn (+20% vs. GSe prior).”

Alumina Limited (ASX: AWC)

The Alumina share price wasn’t too far behind with a gain of 29% in January. Investors were buying the alumina producer’s shares after it revealed that its partner, Alcoa (NYSE: AA), plans to fully curtail production at the loss-making Kwinana Alumina Refinery in Western Australia from the second quarter of 2024. This went down well with analysts. For example, Goldman Sachs responded by upgrading Alumina’s shares to a buy rating with a $1.43 price target. Alumina shares ended the month at $1.16.

Elders Ltd (ASX: ELD)

The Elders share price was on form in January and rose a sizeable 19%. This appears to have been driven by favourable operating conditions. These conditions caught the eye of analysts at Bell Potter, which responded by retaining its buy rating with an improved price target of $9.50 (from $8.35). It said: “Since reporting FY23 results in Nov’23 soil moisture profiles in key summer cropping regions have improved and livestock prices have firmed, with volumes generally continuing to demonstrate high single-to-double digit YOY gains in both cattle and sheep/lamb markets.”

The post These were the best performers on the ASX 200 in January appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2024
• Here are the top 10 ASX 200 shares today
• 3 big questions about the Australian stock market in 2024
• Big ASX 200 news! Aussie shares just reached a new record high
• ASX 200 off to the races as Australia’s inflation data surprises to the downside

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 Megaport. The Motley Fool Australia has recommended Elders and Megaport. 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 investors have enjoyed a pretty decent start to the new year. In fact, the S&P/ASX 200 Index (ASX: XJO) capped off the first month of 2024 with a record high.

And with the December-quarter inflation figures coming in cooler than expected, market chatter abounds on whether interest rate cuts might be on the horizon sooner rather than later.

This means that right now could be the ideal time for ASX shareholders to top up their portfolios and for beginner investors to take the leap and buy their first stocks.

To that end, we asked our Foolish writers which top ASX shares they reckon should be on your buy list this month. Here is what the team came up with:

7 best ASX shares for February 2024 (smallest to largest)

• Accent Group Ltd (ASX: AX1), $1.14 billion
• Elders Ltd (ASX: ELD), $1.41 billion
• L1 Long Short Fund Ltd (ASX: LSF), $1.81 billion
• Vanguard Australian Property Securities Index ETF (ASX: VAP), $2.73 billion
• Neuren Pharmaceuticals Ltd (ASX: NEU), $3.01 billion
• Domino’s Pizza Enterprises Ltd (ASX: DMP), $3.56 billion
• Netwealth Group Ltd (ASX: NWL), $4.11 billion

(Market capitalisations as of market close 31 January 2024).

Why our Foolish writers love these ASX stocks

Accent Group Ltd

What it does: Accent distributes and sells shoe brands in Australia, such as CAT, Dr Martens, Henleys, Hoka, Kappa, Merrell, Skechers, Ugg and Vans. It also operates its own businesses, including The Athlete’s Foot, Trybe, Stylerunner, Nudy Lucy, and Glue Store.

By Tristan Harrison: Accent has done a good job of growing into the retail business it is today, with major global shoe brands electing to partner with it.

The Accent share price is still down around 20% from April 2023, giving investors an opportunity to invest in the company at a much lower valuation. Sales and profit may be challenged in 2024, but I think the long term looks promising, particularly if/when households start spending normally.

Accent is continually growing its store network and, interestingly, generates around a fifth of total sales from digital retail. I’m confident the company can keep adding brands to its portfolio and further grow its own businesses.

According to Commsec, the Accent share price is valued at less than 13x FY26’s estimated earnings with a possible grossed-up dividend yield of 10%.

Motley Fool contributor Tristan Harrison owns shares of Accent Group Ltd.

Elders Ltd

What it does: Formed 185 years ago, Elders has endured through a tumultuous slice of history. Today, the agribusiness has a hand in a wide array of segments, including agency services, real estate, agricultural chemicals, and animal health.

By Mitchell Lawler: The Elders’ share price deteriorated as much as 45% last year, at its low, as livestock prices normalised. 

The steep upswing in cattle and sheep prices incentivised a rapid increase in supply. As usual, these reactions often overshoot, creating an oversupply – an issue exacerbated by demand pressure wielded by the cost of living. This manifested as a weak set of numbers from Elders in its FY2023 results. 

However, wet weather has supported improving livestock prices despite the El Niño declaration. Given the confluence of stabilising prices and wetter conditions, there’s a reasonable chance – in my opinion – that Elders could return to growth this year.

Motley Fool contributor Mitchell Lawler owns shares of Elders Ltd.

L1 Long Short Fund Ltd

What it does: The L1 Long Short Fund is a listed investment company (LIC) that manages a portfolio of ASX and international shares on behalf of its investors. As the name suggests, its management can use both ‘long’ investing and short selling to generate returns.

By Sebastian Bowen: This LIC is on my radar this February. 

I’m always on the lookout for managed funds and LICs that can demonstrate a history of being able to beat the market over long periods of time. Long Short Fund falls into this category, and as such, it has piqued my interest. How could it not, with a five-year average return of 20% per annum (as of 31 December)?

With an established track record of performance, this LIC is at the top of my watchlist this month. 

Long Short Fund has proven to have had an uncanny knack for picking winners. Some of its most successful investments in recent times have been the likes of Mineral Resources Limited (ASX: MIN) and BlueScope Steel Ltd (ASX: BSL).

This fund has the ability to short-sell shares as well, which could give investors some protection in the event of a downturn. 

Motley Fool contributor Sebastian Bowen does not own shares of the L1 Long Short Fund Ltd.

Vanguard Australian Property Securities Index ETF

What it does: This exchange-traded fund (ETF) aims to track the S&P/ASX 300 A-REIT Index, which consists of real estate investment trusts (REITs) that sit among the largest 300 companies on the ASX.

By Tony Yoo: Steep interest rate rises have been rough on the real estate sector over the past couple of years. That’s reflected in the Vanguard Australian Property Securities Index ETF share price, which is now down about 17% from the start of 2022.

However, with interest rates now reaching or nearing their peak, the property sector could be in for a revival. If the Reserve Bank of Australia actually cuts mortgage repayments, the party will be in full swing.

February could provide an excellent low entry point for long-term investment in Australian real estate through this ETF.

Motley Fool contributor Tony Yoo owns shares of the Vanguard Australian Property Securities Index ETF.

Neuren Pharmaceuticals Ltd

What it does: Neuren Pharmaceuticals is a biopharmaceutical developer specialising in drugs to treat neurodevelopmental disorders that emerge in childhood. In 2023, its first drug, Daybue, received FDA approval and went to market in the United States. It’s the world’s first treatment for Rett syndrome.

 By Bronwyn Allen: The Neuren Pharmaceuticals share price recorded the highest growth of all ASX 200 stocks in 2023 at 214%.

After such a strong performance, it’s interesting to note how many analysts are rating Neuren Pharmaceuticals shares a buy.

Clearly, they are unperturbed by the transformative change in the company’s market cap last year and see more share price growth ahead.

Of the five analysts covering Neuren shares on CommSec, four rate the stock a strong buy and one a moderate buy.

Could Neuren Pharmaceuticals stock be a winner yet again this year?

Motley Fool contributor Bronwyn Allen does not own shares of Neuren Pharmaceuticals Ltd.

Domino’s Pizza Enterprises Ltd

What it does: Domino’s Pizza Enterprises is the exclusive master franchisor for the Domino’s brand network in countries including Australia, New Zealand, Belgium, France, The Netherlands, and Japan. 

By James Mickleboro: I think it is fair to say that the last 12 months have been a complete disaster for Domino’s.

Management’s pricing missteps in response to inflationary pressures, and a poor performance from most of its operations during the first half, meant its shares lost almost half their value since this time last year.

While this is disappointing, I believe it has created a compelling buying opportunity for patient investors with a very favourable risk/reward.

Citi appears to believe this is the case. Its analysts currently have a buy rating and a $61.10 price target on Domino’s shares. This represents almost 52% upside from the company’s current share price of $40.21.

Motley Fool contributor James Mickleboro owns shares of Domino’s Pizza Enterprises Ltd.

Netwealth Group Ltd

What it does: Netwealth is a diversified fintech company. Its platform provides portfolio administration, investment management tools, and investment and managed account services to financial advisers, private clients, and companies.

By Bernd Struben: The Netwealth share price is up 31% over the past 12 months, and I believe there’s more outperformance ahead.

The company recently reported that its member accounts grew by 3,254 in the December quarter to reach 132,826 accounts at the close of 2023.

As at 31 December, Netwealth had $78.0 billion of funds under administration (FUA). That was achieved following record 12-month FUA inflows of $19.7 billion.

Atop the potential capital gains, Netwealth shares trade on a 1.4% fully-franked trailing dividend yield.

And CommSec estimates that both the company’s earnings per share (EPS) and dividend payouts will increase over each of the next three calendar years.

Motley Fool contributor Bernd Struben does not own shares of Netwealth Group Ltd.

The post Top ASX shares to buy in February 2024 appeared first on The Motley Fool Australia.

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More reading

• Buying ASX retail shares? You’ll want to see these numbers
• Why 29Metals, Aroa Biosurgery, Mader, and Netwealth shares are falling
• Buy Westpac and these ASX 300 dividend shares now: analysts
• How investing $100 per week can create $1,500 in annual ASX dividend income
• Is the Domino’s share price a buy after its plunge?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Accent Group, Domino’s Pizza Enterprises, and Elders. 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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Just $10,000 is all you need to create a self-sustaining machine that could pay out $500 cash each month for the rest of your life.

Sounds incredible, but it’s not that complicated.

Invest wisely in ASX shares and summon up the patience to allow compounding to do its job, and you could find yourself smiling at the passive income coming into your bank account each month.

Take a look at this scenario as an example:

Compounding and ASX shares are your friends

Construct a diversified portfolio of ASX shares with that $10,000 and you’re on your way.

It doesn’t matter whether your tastes prefer ASX dividend shares or growth stocks. Getting started is the biggest step.

My opinion is that, over the long term, you can pull in 12% compound annual growth rate (CAGR) regardless of the route you take.

Just take a quick squiz at some of the quality stocks available on the S&P/ASX 200 Index (ASX: XJO).

Data centre operator and telco Macquarie Technology Group Ltd (ASX: MAQ) has returned 265% over the past five years, for a CAGR in excess of 29%.

Over in dividend land, investment bank Macquarie Group Ltd (ASX: MQG) has risen 62% over the same period with a current dividend yield of 3.75%. Combining those equates to a 13.9% CAGR.

For a bit of both, how about retailer Lovisa Holdings Ltd (ASX: LOV), which has put on 243% of capital growth in five years while paying out a 3% yield? That takes the CAGR up over the 30% mark.

How to grab that sweet passive income

So send that $10,000 on its way then promise yourself to save $100 each month to add to this nest egg.

After 10 years, that portfolio could have reached $52,116.

From that point on, if you cash out the 12% annual return, that’s $6,253 each year.

That’s a passive income of $520 per month.

Mission accomplished.

Of course, there are levers you can pull if you want more passive income.

You can leave the investment growing for longer than 10 years. If you resist cashing out for five more years, that portfolio will be near enough to $100,000.

That will provide you passive income just short of $1,000 each month.

Another way is to increase your contributions each month.

If you can manage to add $200 instead of $100 every time the calendar turns, after 10 years the portfolio will be more than $73,000.

From then you can bring in monthly passive income of around $730.

The post ASX passive income seekers: Invest $10,000 for $520 in monthly income appeared first on The Motley Fool Australia.

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More reading

• Buying ASX retail shares? You’ll want to see these numbers
• Where I’d invest $2,000 in ASX 20 shares today
• Buy 100 shares of this super ASX 200 dividend stock for $705 a year in passive income
• Why I think Lovisa stock is an amazing ASX 200 buy for both dividends and growth
• Here’s how I’m targeting a generous ASX passive income in retirement!

Motley Fool contributor Tony Yoo has positions in Lovisa and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa. 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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