Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part two of this edition, we’re rejoined by Don Hamson, managing director at Plato Investment Management.

The Motley Fool: 2022 saw the mining and energy sectors deliver some of the top ASX 200 dividend yields. How do you see that playing out in 2023? 

Don Hamson: Despite the naysayers, Australian miners have continued to deliver strong dividends, hence why many have remained in our portfolio.

Broadly speaking, we think this will continue into 2023. Income from the sector will remain strong, but we may not see the record dividends and special dividends seen in recent years.

BHP Group Ltd (ASX: BHP) is a good example here.

In FY22, it posted net profits of US$22.4 billion. That was up 64% on 2021 when many thought it was the peak for the ‘Big Australian’ because it was the top of the iron ore cycle. But last year, it was coal that provided a windfall, generating about US$9.5 billion for the company. A great demonstration of diversified revenues.

BHP is now trading on a double-digit grossed-up yield, with an incredibly strong balance sheet. In its FY22 financials, it had US$300 million worth of debt – it can make that up in about a week!

MF: What other sectors look like they might offer some strong potential ASX 200 dividend plays? 

DH: Along with the resources sector, we remain positive on financials over the coming 12 months.

There will be challenges for the big banks if more Australians start struggling with rising mortgage repayments. But they came out of the COVID period in great shape, have strong balance sheets and improving profit margins due to those rising rates.

Beyond the Big 4, there are also some great opportunities for income, such as Macquarie Group Ltd (ASX: MQG) as previously mentioned.

Commonwealth Bank of Australia (ASX: CBA), Macquarie Group, National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) are all in our top 10 holdings right now.

MF: What do you see as the biggest threat for ASX dividend investors in 2023?

DH: We think we are now in a period where there’ll be more dividend traps than investors have seen in recent years. This is a result of a very complex investing and economic environment, with central banks around the world tightening, inflation volatility, and geopolitical concerns.

Dividend traps occur when you see lofty dividend yield figures on a stock but in reality, the company’s dividends are being cut and their stock price is falling. Investors should remember the dividend yield figures you see associated with stocks are always backwards looking.

When it comes to generating income from equities, avoiding dividend traps is just as important as finding the strong and sustainable dividend payers.

Two examples of dividend traps over the past year have been Magellan Financial Group Ltd (ASX: MFG) and Alumina Ltd (ASX: AWC). Both were trading on dividend yields of over 10% at times. But investors, of course, never saw that sort of income, and may have seen a capital loss.

MF: And what’s the biggest opportunity for ASX dividend investors? 

DH: Strong balance sheets and franking credits are two great opportunities for income investors.

If you do your homework, you’ll find many Australian companies with very strong balance sheets, despite a lot of the doom and gloom and sensational headlines about the economy and recession. A strong balance sheet is an enabler of strong and sustainable dividends.

As always, franking credits will remain a major source of additional income for retirees and low-tax investors. They are the icing on the dividend cake.

For every one dollar of income received from fully franked dividends by pension-phase and other tax-exempt investors, an additional 43 cents on top of franking is received.

MF: What’s your outlook on dividends from the broader ASX 200?

DH: Plato’s modelling is projecting that at an index level in 2023, the ASX 200 will deliver a cash yield of 6% when including franking credits. On top of this, we think active and tax-effective portfolio management will deliver significant additional income.

MF: Are there any income stocks you’re likely to avoid, any of the so-called dividend traps? 

DH: Higher interest rates and mortgage repayments are likely to hit mortgage holders big time this year. This might see revenue and profits of some consumer discretionary stocks take a big hit.

Having said that, the prices of many discretionary stocks have already fallen a considerable amount. And, so far, retail sales have held up very well. So it will be interesting to see how this pans out in 2023.

MF: If the market closed tomorrow for five years, which ASX 200 dividend share would you be sure to want in your portfolio? 

DH: We think the set-and-forget approach can be a dangerous strategy in a world that is ever-changing.

Having said that, Macquarie would be my choice here. They have a great track record of taking advantage of change and growing their business in different directions, such as being a leading player in decarbonisation.

**

If you missed part one of our interview, you can find that here.

(You can find out more about the Plato Australian Shares Income Fund here.)

The post Investing in ASX 200 dividend shares? Here’s what to look for in 2023: fund manager 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 are ASX 200 iron ore shares like Rio Tinto sliding lower today?
• How I’d invest $20,000 in ASX 200 dividend shares in 2023
• ASX 200 investors are selling off CBA shares! What should I do?
• Two ‘top prospect’ ASX 200 dividend shares for 2023 revealed: fund manager
• As the BHP share price flirts with $50, do I buy more?

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

from The Motley Fool Australia https://ift.tt/ZC5zNEt

If you’re in or nearing retirement, it may be time to start focusing a little on capital preservation and income. This means investing in lower risk shares rather than fledgling growth shares.

But which ASX 200 shares might be suitable?

Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX 200 share to consider for a retirement portfolio is Centuria Industrial.

This property company owns a portfolio of high quality industrial assets that has been constructed with the aim of delivering consistent income and capital growth to investors.

Centuria Industrial’s portfolio is heavily weighted to areas of the economy that are growing fast and are in demand from tenants. This includes properties linked to the production, packaging, and distribution of consumer staples, telecommunications and pharmaceuticals.

UBS is positive on the company and currently has a buy rating and $3.60 price target on its shares. The broker is also forecasting dividends of 16 cents per share in FY 2023 and FY 2024. This implies yields of 4.5% over the next couple of financial years.

Woolworths Limited (ASX: WOW)

Another ASX 200 share that could be a top option for a retirement portfolio is Woolworths.

This retail conglomerate is the name behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, and Big W.

As we saw during the pandemic, Woolworths has incredible defensive qualities. And as we are seeing right now, the company is benefitting from food inflation. All in all, this makes it a bit of an all-weather stock, which is exactly why it could be a good pick for retirees.

Goldman Sachs is a big fan of the company. It likes Woolworths due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.

The broker currently has a conviction buy rating and $41.20 price target on the company’s shares. Its analysts are also forecasting fully franked dividend yields of ~3% in the coming years.

The post Analysts name 2 strong ASX 200 shares for a retirement portfolio 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

• Goldman reveals the ASX shares that could surprise to the upside (and downside) this reporting season
• ASX shares investors rejoice! RBA says inflation has now peaked
• Here are the top 10 ASX 200 shares today
• Why Beach, Coles, Cronos Australia, and Woolworths shares are pushing higher
• ASX 200 jumps higher again, defying predictions the 2023 stock market rally could be about to come to a screaming halt

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/5YEtXDw

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark rose 0.1% to 7,511.6 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise again on Friday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 7 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is down 0.65%, but the S&P 500 is up 0.9% and the NASDAQ index is up 2.5%. An exceptionally strong gain by Meta has given the latter a boost.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.5% to US$75.97 a barrel and the Brent crude oil price is down 0.8% to US$82.20 a barrel. Global economic growth concerns appear to be weighing on prices.

Lynas shares have peaked

The Lynas Rare Earths Ltd (ASX: LYC) share price may have peaked now according to analysts at Bell Potter. This morning the broker has initiated coverage on the rare earths producer with a hold rating and $9.05 price target. It said: “LYC is a high-quality business, and a key supplier of separated rare earths to Western economies. However, we believe the business to be fully valued currently.”

Gold price slumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult finish to the week after the gold price slumped overnight. According to CNBC, the spot gold price is down 0.75% to US$1,928.4 an ounce. Gold hit a nine-month high before pulling back.

CSL on watch

The CSL Limited (ASX: CSL) share price will be on watch today after a rival received FDA approval for a competing drug. Goldman Sachs commented: “This morning the FDA approved GSK’s Jesduvroq (daprodustat) as the first oral treatment for anaemia caused by Chronic Kidney Disease (CKD) in adults receiving dialysis.” As CSL’s Mircera and Retacrit are administered through intravenous/subcutaneous injection, Goldman believes the “oral alternative could offer potential convenience and/or economic advantages.”

The post 5 things to watch on the ASX 200 on Friday 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

• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday
• Why Centuria Office, Deep Yellow, Newcrest, and Xero shares are racing higher today
• CSL share price surges to new 52-week high on Thursday
• Up 37% in 12 months: Here’s why this fundie still sees value in Woodside shares
• How I’d invest $20k in ASX 200 shares in 2023 to aim for a million

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. 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/D8rglKS

The S&P/ASX 200 Index (ASX: XJO) spent another day in the green on Thursday, gaining 0.13% to close at 7,511.6 points.

It follows the United States Federal Reserves’ decision to bump interest rates another 0.25% to 4.75%, seemingly marking a slowdown in hikes.

Staying overseas, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) led Wall Street overnight, rising 2%.

It likely comes as no surprise then that the S&P/ASX 200 Information Technology Index (ASX: XIJ) outperformed all other sectors today, rising 3.1%.

On the other hand, the S&P/ASX 200 Energy Index (ASX: XEJ) was the worst performer, falling 0.9% amid tumbling oil prices. Brent crude oil slumped 3.1% overnight while the US Nymex crude dropped 3.1% to US$76.41 a barrel.

But which ASX 200 shares posted the biggest gains of all on Thursday? Let’s take a look.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was tech giant Megaport Ltd (ASX: MP1). Its share price gained 11% today amid a notable tech rally.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Megaport Ltd (ASX: MP1)	$6.20	11.11%
Xero Limited (ASX: XRO)	$82.60	7.47%
Wisetech Global Ltd (ASX: WTC)	$63.53	6.77%
Charter Hall Group (ASX: CHC)	$14.93	6.41%
Chalice Mining Ltd (ASX: CHN)	$6.72	6.16%
Credit Corp Group Limited (ASX: CCP)	$23.32	6%
Evolution Mining Ltd (ASX: EVN)	$3.36	5.99%
Block Inc (ASX: SQ2)	$120.93	5.93%
Sayona Mining Ltd (ASX: SYA)	$0.27	5.88%
Domain Holdings Australia Ltd (ASX: DHG)	$3.33	5.71%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares 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

• These could be the best ASX 200 growth shares to buy: analysts
• I’m listening to Warren Buffett and buying ASX shares on sale
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday
• Why are ASX 200 iron ore shares like Rio Tinto sliding lower today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Megaport, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, WiseTech Global, and Xero. The Motley Fool Australia has recommended Megaport. 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/J2eIL8x

There are plenty of ASX 200 growth shares for investors to choose from. But two of the best right now could be listed below, according to analysts.

Here’s why they are bullish on these shares:

Aristocrat Leisure Limited (ASX: ALL)

Morgans is very positive on this gaming technology company and sees it as an ASX 200 growth share to buy right now. Its analysts have Aristocrat’s shares on their best ideas list for February with an add rating and $43.00 price target.

The broker is expecting Aristocrat to continue its strong growth long into the future thanks to a combination of factors. It explained:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Xero Limited (ASX: XRO)

Goldman Sachs is a big fan of Xero and recently named the cloud accounting platform provider as its top ASX 200 tech pick. The broker has a buy rating and $109.00 price target on its shares.

Its analysts are positive on Xero due largely to its very strong long term growth outlook. This is underpinned by its high quality platform, the shift online, and its huge global target market of over 100 million small businesses. Goldman commented:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL). Key catalysts include: Upcoming results and opex outlook; CEO strategy update, and potential M&A.

The post These could be the best ASX 200 growth shares to buy: analysts 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

• I’m listening to Warren Buffett and buying ASX shares on sale
• Why Centuria Office, Deep Yellow, Newcrest, and Xero shares are racing higher today
• Xero share price jumps 9% to four-month high
• 3 ASX 200 tech shares going gangbusters on Thursday
• Need passive income? Turn $5,000 into $800 every month

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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/anmhUFI

Although ANZ Group Holdings Ltd (ASX: ANZ) shares have just ended the day 0.5% lower at $25.18, they are still up over 6% since the start of the year.

This means the banking giant’s shares are now up over 20% from their June low or $20.78.

Can ANZ shares keep rising?

The good news for investors is that a number of brokers still see value in ANZ shares at the current level. This could mean that there’s plenty more gains to come over the remainder of 2023.

For example, a note out of UBS this morning reveals that its analysts have reiterated their buy rating and $30.00 price target. This implies potential upside of 19% for investors between now and this time next year.

UBS isn’t alone with its positive view. Citi is a fan and currently has a buy rating and $29.25 price target on its shares. The broker is also expecting a decent increase in the ANZ dividend both this year and next.

In FY 2023, it expects a 20 cents per share increase to $1.66 per share. Whereas in FY 2024, it has pencilled in an increase to $1.76 per share. Based on the current ANZ share price, this implies fully franked dividend yields of 6.6% and 7%, respectively.

Finally, another note out of Credit Suisse from last month reveals that its analysts have an outperform rating and $29.00 price target on ANZ’s shares, implying potential upside of 15%.

All in all, ANZ shares may have started the year strongly, but analysts appear to believe the party could only just be getting started.

The post ANZ shares have been on a roll in 2023. Can it last? 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

• Top ASX dividend shares to buy in February 2023
• ‘Attractive stock’: Fundie names one ASX share to buy, one to watch, one to avoid
• Is the ANZ share price cheap right now?
• Investing in ASX 200 bank shares? Here’s the dividend outlook for 2023
• This could crash the earnings season party for ASX 200 bank shares: Macquarie

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/SrJElTt

As an investor, you’d be hard-pressed not to have heard about Warren Buffett. The ‘Oracle of Omaha’, his US$108 billion fortune, and his freely given investing advice are famous around the globe. That’s why I apply Buffett wisdom when seeking shares to add to my ASX portfolio.

While Buffett doesn’t typically invest on the ASX, I believe many of his philosophies can translate to Aussie shares.

Using Buffett wisdom to hunt down ASX bargain shares

Let’s start with the billionaire’s “first rule of investment”:

Never lose money.

Well, that’s often easier said than done. But the investing great has a simple trick to ensure he’s protected against risks.

That is, buying undervalued shares that offer ‘economic moats’.

An economic moat is an advantage a company holds over its peers, be it low-cost production or a globally recognised brand. Fortunately, it can be relatively simple to figure out if a company offers such a moat.

On the other hand, identifying the true value of a share ­– and thereby, whether it’s undervalued – can be tricky.

Assessing value

It’s also one of the most impactful aspects of any investment.

If a stock is bought for more than it’s worth, it’s arguably more likely to prove a poor investment.

Conversely, buying a share for less than its true value can kick start an investors’ returns.

However, the market doesn’t always correctly assess a company’s worth. For that reason, different investors tend to use different methods to find a company’s true value.

Delving into a company’s balance sheet

Of course, one simple way to assess value is metrics like a price-to-earnings (P/E) ratio or a price-to-book (P/B) ratio. A dividend yield might also act as a value gauge.

Though, these measures don’t delve into why a share might be trading at the valuation it is.

Additionally, they’re not all that much use when surveying a loss-making share.

Finding ASX shares on sale

It’s for that reason that identifying whether an ASX share is ‘on sale’ is incredibly personal.

For instance, an investor might not know much about lithium mining, but could have a good gauge on the retail space.

That same investor might be quick to recognise an ASX retail share trading below the true worth of its business.

I personally tend to turn to companies that have already turned a profit and boast a loyal customer base. I also like those that offer ‘sticky’ products that customers often can’t go without, such as, in my opinion, Xero Ltd (ASX: XRO). The company’s accounting software could count as one of Buffett’s touted ‘economic moats’.

My #1 rule when buying ASX shares

Unfortunately, no investment, no matter how considered, is guaranteed to provide returns.

It’s likely that some of the ASX shares I believe to be ‘on sale’ could actually be fairly valued, thereby compressing my potential returns.

That’s why I also aim to create a diverse portfolio of stocks. That way I can help to protect my portfolio against many of the major risks involved with investing.

The post I’m listening to Warren Buffett and buying ASX shares on sale 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 Centuria Office, Deep Yellow, Newcrest, and Xero shares are racing higher today
• Xero share price jumps 9% to four-month high
• 3 ASX 200 tech shares going gangbusters on Thursday
• How I’d invest $20k in ASX 200 shares in 2023 to aim for a million
• The Nasdaq just had its best January in over 20 years. Are ASX tech shares back?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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/MYUbCns

In a world of rapidly changing economic conditions, I like the idea of investing in S&P/ASX 200 Index (ASX: XJO) shares that offer stability and good dividend yields.

We’ve seen huge volatility for names like BHP Group Ltd (ASX: BHP) and Xero Limited (ASX: XRO).

But, if I’m relying on dividend income to fund my lifestyle, I want to find businesses that can provide solid payouts whether the Australian economy or China is firing on all cylinders or not.

With that in mind, these are the ASX 200 shares that I’d love to buy because of the long-term growth potential.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares have done well in 2023 to date. They are up more than 10%. Over the past year, the share price is only down by 6%.

This ASX 200 share has a number of leading businesses within its portfolio including Bunnings, Kmart, Officeworks and Priceline.

I think the last five or six years (including FY19) have shown that there is usually enough demand for Wesfarmers’ retail businesses to generate decent profit and keep paying dividends.

In my opinion, the business has a very promising future and I like how it’s investing in areas with good tailwinds like healthcare and lithium.

At the current Wesfarmers share price, Commsec numbers suggest that Wesfarmers is going to pay a grossed-up dividend yield of 5.3% in FY23, and 5.75% by FY25.

I like that Wesfarmers is regularly updating its business portfolio and investing for more growth.

Charter Hall Long WALE REIT (ASX: CLW)

I think this ASX 200 share is another contender that could provide stability during this uncertain time.

This real estate investment trust (REIT) that owns a variety of different buildings such as industrial buildings, important retail locations, agri-logistics and so on.

What links all those different properties together is that they’re all leased on long rental contracts. That gives the REIT a long weighted average lease expiry (WALE) – it was 12 years at the latest update, at the annual general meeting (AGM).

It owns around 550 properties, most of which are on the eastern seaboard.

Management describes 99% of its tenants as blue chip, such as Australian government entities, Telstra Group Ltd (ASX: TLS), BP and Endeavour Group Ltd (ASX: EDV).

Around half of its leases are linked to CPI, with a 6.3% weighted average forecast increase in FY23. The other half of leases have a fixed increase, with an average fixed increase of 3.1%.

It’s expecting to pay a distribution of 28 cents per security in FY23, which would be a yield of 5.9%. In FY24 it could pay a distribution of 29 cents according to Commsec, which would be a yield of 6.1%.

The post These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them 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 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX 200 iron ore shares like Rio Tinto sliding lower today?
• Telstra shares just rang in a new ASX 200 high. Here’s the tea…
• Guess which ASX 200 lithium share has already rocketed 43% in 2023
• How I’d invest $20,000 in ASX 200 dividend shares in 2023

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Telstra Group, Wesfarmers, and Xero. 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/5gNsETb

The S&P/ASX 200 Index (ASX: XJO) is rising 0.18% today and among its highest flyers is ASX 200 lithium share Sayona Mining Ltd (ASX: SYA).

The Sayona Mining share price is up 4.9% and is currently 26.75 cents. But that impressive lift actually pales in comparison to the 43% gain the ASX 200 lithium share has already made in the new year.

There’s no news out from the ASX 200 lithium company today, but it did release its quarterly activities statement for December yesterday.

What’s the latest news from this ASX 200 lithium share?

As my colleague Bernd reported, Sayona revealed it is mere weeks away from restarting its flagship North American Lithium (NAL) project. It expects to achieve first production of lithium spodumene ore in 1Q 2023.

Sayona has also launched a pre-feasibility study (PFS) on the potential to produce lithium carbonate at NAL. The PFS results are expected in April. 

If the PFS goes well, Sayona reckons it has about half the facilities required to produce carbonate already. This is because the previous owners built some facilities before Sayona bought the project.

Sayona got a big response to its report and was among the most heavily traded ASX 200 shares of the day. The Sayona share price was up 7% at one point but ended up closing even at 26 cents.

Market optimism that lithium prices will remain higher for longer has no doubt contributed to the Sayona share price rise in 2023. Other ASX 200 lithium shares have also made impressive gains so far this year.

About Sayona Mining

Sayona is an emerging lithium producer with mining assets encompassing lithium, graphite, and gold.

Its primary focus is the North American Lithium (NAL) project in Quebec, Canada.

Not only does it want to pull lithium out of the ground there, it also wants to process it to supply the fast-growing local battery and electric vehicle market.

It also holds interests in East Kimberley Graphite Project and the Western Australia Lithium/Gold Project.

The post Guess which ASX 200 lithium share has already rocketed 43% in 2023 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX 200 iron ore shares like Rio Tinto sliding lower today?
• Telstra shares just rang in a new ASX 200 high. Here’s the tea…
• How I’d invest $20,000 in ASX 200 dividend shares in 2023

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 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/owITYeN

We are once again seeing a day of progress for ASX shares and the S&P/ASX 200 Index (ASX: XJO). So far this Thursday, the ASX 200 has lifted by 0.09%. That puts the index at just over 7,508 points.

But time now to delve a little deeper into these market moves. So let’s check out the shares currently atop the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

South32 Ltd (ASX: S32)

First up today, we have the ASX 200 miner South32. So far this session, a notable 12.85 million South32 shares have been bought and sold on the share market. There hasn’t been any fresh news out of the miner for a while now.

So we can probably look to South32 shares themselves for an explanation here. The miner has had a pretty pleasing day thus far, with South32 recording a 1.84% lift to $4.715 a share at the time of writing. The company rose as high as $4.82 earlier this afternoon as well. This big gain is probably what’s behind so many shares trading.

Telstra Group Ltd (ASX: TLS)

Next up, we have the ASX 200 telco Telstra to consider. This Thursday has seen a hefty 16.15 million Telstra shares exchanged on the markets at present. This probably has something to do with Telstra shares hitting a new 52-week high today. Huzzah.

The blue-chip stalwart is up by a marginal 0.12% right now at $4.155 a share, but hit its new high watermark of $4.18 just after market open this morning. A new 52-week high is always a bit of an occasion on the ASX, so it’s this we can look to for Telstra’s elevated volumes.

Sayona Mining Ltd (ASX: SYA)

Thirdly, let’s check out ASX 200 lithium share Sayona Mining. A sizeable 34.04 million Sayona shares have swapped hands on the ASX as it currently stands.

Again, we haven’t heard too much out of the company itself in this instance but that hasn’t stopped Sayona from continuing its rather epic run in 2023 so far. Sayona has added another 6.7% to its valuation today, bringing the company up to 27 cents per share.

The lithium stock is now up a whopping 43% in 2023 year to date. It’s today’s massive share price gain that is probably behind such a large volume of shares moving around.

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

• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday
• Why are ASX 200 iron ore shares like Rio Tinto sliding lower today?
• Telstra shares just rung in a new ASX 200 high. Here’s the tea…
• How I’d invest $20,000 in ASX 200 dividend shares in 2023
• Up 37% in 12 months: Here’s why this fundie still sees value in Woodside shares

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.

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