The benchmark ASX 200 index is home to 200 of the largest listed companies on the Australian share market.

While not all shares on the index will necessarily be good portfolio additions (i.e. Weebit Nano Ltd ASX:WBT) ), two that could be are listed below.

These are two true blue chip stars and have been tipped to deliver strong returns for investors in 2024. They are as follows:

CSL Limited (ASX: CSL)

The first ASX 200 blue chip share for investors to look at is biotherapeutics giant CSL.

It is arguably one of Australia’s highest quality companies, developing life-saving therapies and vaccines for the global population. Among its portfolio are products such as Albumex, Privigen, Hizentra, Idelvion, and Afstyla.

But it won’t stop there. CSL reinvests in the region of 12% of its sales revenue back into research and development (R&D) each year. This means the company has an R&D pipeline filled with some potentially lucrative (and life-saving) therapies and vaccines.

The team at Morgans rates the company highly. Its analysts have an add rating and $328.20 price target on its shares. This implies potential upside of almost 14% for investors from current levels.

ResMed Inc. (ASX: RMD)

Another quality ASX 200 blue chip share that is highly rated by analysts is ResMed.

It is one of the world’s leading sleep treatment companies with a portfolio of products for sufferers of disorders such as sleep apnoea.

This certainly is a lucrative market to be in. The company estimates that one in five people has a sleep disorder globally, with the vast majority still undiagnosed. And while weight loss drugs could steal a share of this market, most analysts agree that there’s still a huge addressable market for ResMed to grow into over the next couple of decades.

It is partly for this reason that Macquarie has an outperform rating and $33.40 price target on its shares. This suggests upside of almost 27% for investors over the next 12 months.

The post Experts tip very big returns from these outstanding ASX 200 blue chip shares appeared first on The Motley Fool Australia.

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More reading

• 3 things ASX investors should watch this week
• Top brokers name 3 ASX shares to buy next week
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Is the ResMed share price in the buy zone ahead of next week’s update?
• Is 2024 the year that CSL shares finally hit a new high?

Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. 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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Is your income portfolio in need of some new additions? If it is, then it could be worth checking out the ASX dividend stocks listed below.

Here’s why analysts have put buy ratings on them:

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter is tipping this property company’s shares as a buy.

The broker believes its shares are good value given its positive earnings outlook. Its analysts note that the company “offers a +10% 3yr EPS CAGR which is amongst the highest amongst [its] coverage.”

The broker expects this to underpin dividends per share of 5 cents in both FY 2024 and FY 2025. Based on the current GDI Property share price of 64 cents, this implies dividend yields of 7.8% in both years.

Bell Potter has a buy rating and 75 cents price target on its shares.

Endeavour Group Ltd (ASX: EDV)

Analysts at Goldman Sachs think that Endeavour is an ASX dividend stock to buy.

The broker is a big fan of the Dan Murphy’s owner due to its “attractive valuation.” In addition, it is anticipating “market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages.”

Goldman expects this to lead to fully franked dividends of 21 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Endeavour share price of $5.42, this would mean yields of 3.9% and 4.2%, respectively.

Its analysts have a buy rating and $6.40 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs is also a fan of telco giant Telstra.

It believes it is an ASX dividend stock to buy due to the “low risk earnings (and dividend) growth that Telstra is delivering across FY22-25.”

Speaking of dividend growth, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.97, this equates to yields of 4.5% and 4.8%, respectively.

Goldman has a buy rating and $4.70 price target on the company’s shares.

The post Buy Endeavour and these ASX dividend stocks appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in 2024 instead of investing in a term deposit
• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?
• Lifetime income: 3 ASX dividend stocks I’m planning to never sell
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a bang. The benchmark index rose 1% to 7,421.2 points.

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

ASX 200 expected to rise again

Another positive session is expected for the Australian share market on Monday following a very strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points higher this morning. On Wall Street, the Dow Jones was up 1.05%, the S&P 500 rose 1.2%, and the Nasdaq charged 1.7% higher. The S&P 500 is now officially in a bull market.

Oil prices fall

It could be a subdued start to the week for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices softened on Friday night. According to Bloomberg, the WTI crude oil price was down 0.9% to US$73.41 a barrel and the Brent crude oil price was down 0.7% to US$78.56 a barrel. This was driven by concerns over the health of the Chinese and global economy.

Arcadium Lithium named as a buy

Arcadium Lithium (ASX: LTM) shares could have major upside potential according to analysts at Bell Potter. This morning, the broker has initiated coverage on the lithium giant with a buy rating and $12.10 price target. This implies 50% upside from current levels. It said: “LTM provides the largest, most diversified exposure to lithium.”

Gold price rises

It looks like it could be a decent start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose on Friday. According to CNBC, the spot gold price was up 0.5% to US$2,031.8 an ounce. This was driven by rate cut optimism.

Buy Macquarie Technology shares

The team at Goldman Sachs thinks investors should be buying Macquarie Technology Group Ltd (ASX: MAQ) shares. This morning, the broker has reiterated its buy rating and $77.70 price target on the company’s shares. Goldman was pleased with the Development Application (DA) approval for the IC3 Super West (IC3W) data centre at its Macquarie Park campus. It said: “MAQ’s DA approval is an important milestone in the acceleration of the company’s data centre growth ambitions.”

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

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More reading

• How to become an ASX share market millionaire by investing $500 a month
• Top 10 superannuation funds for growth in 2023 revealed: Chant West
• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today

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

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When an S&P/ASX 200 Index (ASX: XJO) stock has fallen or risen strongly, it is difficult to figure out whether it is a great time to buy.

That’s because, psychologically, investors are likely to think that they have missed out on most of the profits of a stock that has already rocketed. 

Conversely, shares that have fallen are also intimidating because punters are fearful that there are more losses coming.

So what do you do?

One of the hottest ASX 200 stocks in recent times has been Neuren Pharmaceuticals Ltd (ASX: NEU).

The Neuren share price has soared an unbelievable 163% over the past 12 months.

Let’s break down whether one should buy this ASX 200 stock, or avoid it like the plague:

Professional investors aren’t too worried

Firstly, it’s worth noting that all five analysts surveyed on CMC Invest reckon Neuren is still a buy despite the massive run-up in price.

So they obviously think Neuren has plenty more upside to come.

The analysts at Elvest Fund, who are in this camp, thought last month’s phase 2 clinical test results for NNZ-2591 “exceeded expectations” in its ability to combat Phelan-McDermid syndrome (PMS).

“The PMS results bode well for the Phase 2 trials of NNZ-2591 for Pitt Hopkins syndrome, Angelman syndrome and Prader-Willi syndrome, results of which will be released during CY24.”

The team thought the results were even more convincing than the effectiveness of Daybue, which is a drug that Neuren already has on sale commercially.

“In the meantime, we expect to see continued strong sales growth for Daybue, which is licensed to NASDAQ-listed Acadia Pharmaceuticals Inc (NASDAQ: ACAD), who will next report in early February.”

ASX 200 shares have no memory

Just this example shows that what has happened to the share price in the past has no bearing on what the future might hold.

When investors are fearful because of a steep increase or decrease in price in recent times, that is called “anchoring”. And anchoring prevents rational decision-making.

The critical fact to remember is that stocks themselves have no memory. Their future direction has zero relationship to where they have been in the past.

Therefore there is no “right” or “wrong” time to buy a specific ASX 200 stock. 

If the business is going places and the metrics meet your investment criteria, then it’s ripe for adding to the portfolio as a long-term holding.

The post Is now the right time to buy this ASX 200 stock? Here’s my take appeared first on The Motley Fool Australia.

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More reading

• 3 pharma shares outshining the ASX index today
• ‘Materially undervalued’: 3 ASX shares Elvest is backing for a huge 2024
• The Neuren Pharmaceuticals share price is up 100% in 3 months: Can it keep rising?
• Here’s how I plan to build a second income in 2024
• The No. 1 ASX 200 shares of each market sector in 2023

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

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Navigating the sometimes stomach-churning volatility associated with investing in ASX shares is not for the faint-hearted. That’s why some people choose to park their money in a term deposit instead, assuming it’s risk-free.

But no investment is completely without risk. Not even bank savings accounts and term deposits.

Legendary investor Warren Buffett once described investing in cash and cash equivalents as “a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value”.

The main reason for this is inflation. Even if your primary goal is Buffett’s number one investment rule – to not lose money – your term deposit may do just that when bank interest rates don’t keep up with Australia’s inflation rate.

So much for a safer and more stable investment than ASX shares – your wealth could actually be diminishing in real terms!

On that note, we turned to our Foolish writers for some more appealing possibilities and asked them which ASX shares they think offer the best alternative to a term deposit in 2024.

With their conservative investor hats on, here is what the team came up with:

6 ASX stock tips for risk-averse investors in 2024

• GQG Partners Inc (ASX: GQG), $5.05 billion
• Medibank Private Ltd (ASX: MPL), $10.60 billion
• Washington H Soul Pattinson & Company Ltd (ASX: SOL), $11.89 billion
• Coles Group Ltd (ASX: COL), $20.77 billion
• Telstra Group Ltd (ASX: TLS), $45.87 billion
• Commonwealth Bank of Australia (ASX: CBA), $189.70 billion

(Market capitalisations as of 19 January 2024).

Why our Foolish writers think you should buy these ASX shares instead of parking your cash in the bank

GQG Partners Inc

What it does: GQG Partners is a multinational investment services company headquartered in the United States.

By Tony Yoo: This $5 billion US outfit appears to be on the upward part of its business cycle, as investor sentiment is turning more positive due to inflation settling down and interest rate cuts potentially looming.

Already, many ASX stock investors have woken up to this, sending the GQG share price soaring more than 31% since 9 November. Despite the bull run, all five analysts surveyed on CMC Invest are tipping this financial services stock as a buy.

As a foreign company, the dividends come with no franking. However, the yield is still a very respectable 5.1%. That’s certainly better than most one-year term deposits, which have little prospect of capital growth.

Motley Fool contributor Tony Yoo does not own shares of GQG Partners Inc.

Medibank Private Ltd

What it does: Medibank Private is Australia’s largest health insurer, providing coverage to more than 4 million customers across its Medibank and ahm brands. The company derives most of its income from the difference between claims made and premiums charged. Additional income comes from returns on its investment portfolio – the funds it holds to pay out claims. 

By Mitchell Lawler: If I were hoping to earn more than a term deposit without taking too much risk, I’d search for a deep-seated company with no indication of disappearing. Companies that will play a role in our kid’s lives, and possibly even their children. 

Medibank Private holds such a strong brand that not even a catastrophic cyber breach could stop it from reaching record customer numbers in FY2023. That speaks to the loyalty and brand strength this insurer holds in the Australian market. 

As the Australian population grows through migration, Medibank could see its paying customers continue to swell. Throw in a fairly consistent ~4% in dividends each year, and I think this company could provide 10% to 11% in annual returns for the next five years – double what is commonly possible from a term deposit.

Motley Fool contributor Mitchell Lawler does not own shares of Medibank Private Ltd.

Washington H Soul Pattinson & Company Ltd

What it does: Investment company Soul Pattinson joined the ASX in 1903, so it’s been listed for more than a century. It is invested in numerous sectors, including telecommunications, building products, financial services, agriculture, swimming schools, resources, and many more.

By Tristan Harrison: Soul Patts has proven its longevity, surviving two world wars, two global pandemics, and numerous recessions and market crashes. The growing diversification of the company’s portfolio helps protect it against any sector-specific risks.

The company has paid a dividend every year since it was listed in 1903 — a great record that very few global businesses can exceed. Soul Patts has also grown its annual ordinary dividend every year since 2000.

Past performance is not a guarantee of future results, but Soul Pattinson has a long track record of delivering capital growth, partly because it continues to re-invest retained net investment cash flow into more ASX shares and other assets each year, which also helps grow its dividend potential.

Soul Patts has a grossed-up dividend yield of 2.64% at the close on Friday. 

Motley Fool contributor Tristan Harrison owns shares of Washington H Soul Pattinson and Co Ltd.

Coles Group Ltd

What it does: Coles Group is the second-largest grocery and supermarket operator in Australia. It owns the huge network of Coles supermarkets, as well as liquor store chains like First Choice.

By Sebastian Bowen: There are two reasons I think Coles shares would make a great alternative to a term deposit in 2024.

Firstly, I’ve been mightily impressed with Coles’ dividend track record ever since the company was first floated back in late 2018. Coles has delivered annual dividend pay rises every single year since 2019 and now offers a compelling, fully-franked yield of well over 4%.

Secondly, thanks to the nature of Coles’ consumer staples business, this company’s earnings are highly durable and defensive. That means this dividend is, in my view, unlikely to be substantially cut if there’s a recession or other economic malady.

All in all, it’s my belief that Coles stock is one of the steadiest income providers on the ASX, and it would make a great alternative to a term deposit investment today.

Motley Fool contributor Sebastian Bowen does not own shares of Coles Group Ltd.

Telstra Group Ltd

What it does: Telstra is Australia’s leading telecommunications and technology company, offering a full range of communications services. At the last count, it was providing around 22.5 million retail mobile services and 3.4 million retail bundle and data services.

By James Mickleboro: If you’re looking to invest in an ASX share over a low-risk term deposit, you’re going to need a compelling risk/reward balance. The good news is that I believe that Telstra offers exactly this.

In addition, the telco giant has defensive qualities, making it a lower-risk option compared to the average ASX stock.

Getting back to that risk/reward proposition, Goldman Sachs currently has a buy rating and a $4.70 price target on Telstra shares, which implies an 18% upside from Friday’s closing price of $3.97.

The analyst also expects a growing stream of dividends. Goldman is forecasting fully-franked dividends per share of 18 cents, 19 cents, and 20 cents over the next three financial years. This will mean yields of 4.5%+ each year.

Motley Fool contributor James Mickleboro does not own shares of Telstra Group Ltd.

Commonwealth Bank of Australia

What it does: With a market cap of almost $190 billion, CBA counts as Australia’s biggest bank. CommBank offers a range of integrated financial services. These include retail, business and institutional banking, funds management, superannuation, life insurance, general insurance, and broking services.

By Bernd Struben: In 2023, CBA shares gained 9.0%, well ahead of the best term deposit rates. Atop that, CommBank also paid out $4.50 a share in fully franked dividends. That saw the accumulated value of CBA shares gain 13.4% over the year, with some potential tax benefits.

And I believe CBA is well positioned to deliver deposit-rate-beating returns again in 2024, with considerably less risk than investing in small-cap ASX growth stocks.

From a safety standpoint, I like that the bank ended FY 2023 in a strong position in case of unexpected financial shocks. CBA’s common equity tier 1 (CET1) ratio increased 0.46% to 11.8%.

Motley Fool contributor Bernd Struben does not own shares in Commonwealth Bank of Australia.

The post Top ASX shares to buy in 2024 instead of investing in a term deposit appeared first on The Motley Fool Australia.

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More reading

• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?
• Forget term deposits and get rich with ASX shares the Warren Buffett way
• 3 ASX 200 dividend shares I think you could safely hold for decades
• Lifetime income: 3 ASX dividend stocks I’m planning to never sell
• ‘Consistent alpha generation’: 3 ASX 200 shares sitting pretty for the long run

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Even though the ASX reporting season proper is still a couple of weeks away, there are some critical corporate results coming out this week.

These are three biggest ones, according to eToro market analyst Josh Gilbert:

1. ResMed quarterly results 

Resmed CDI (ASX: RMD) might just have been the most discussed ASX stock of 2023.

The ASX healthcare company makes devices that treat sleep apnea.

During the last reporting season, the Resmed share price plunged almost 37% as investors worried about the impact of new GLP-1 weight loss drugs such as Ozempic.

“Some investors felt [GLP-1 drugs] would dampen ResMed’s sales due to the connection between obesity and sleep apnea.”

Although the stock has recovered 23% since the September trough, Gilbert warned anything could happen on Thursday.

“A good result would give shares the next leg up after a solid three months, but a miss on estimates could put shares under pressure, given its recent strong performance.

“The main headwind has been margins, which look set to fall again this week. Gross margins are expected at 56%, down from a year ago.”

The positive is that analysts are expecting net income to increase 9% and for revenue to increase by a double-digit percentage.

“Its valuation also remains attractive at 23 times forward earnings, much lower than its historical average, pricing in recent challenges.”

2. Microsoft quarterly results

An old favourite among Australian investors, Microsoft Corp (NASDAQ: MSFT) last week became the largest company in the world by market cap, overtaking longtime rival Apple Inc (NASDAQ: AAPL).

The 70% rocket in share price over the past year means there will be “little margin for error” in the latest results, according to Gilbert.

“It’s been all about AI, with Microsoft chasing the tail of Nvidia Corp (NASDAQ: NVDA), looking to capture the first adoption benefits. 

“Microsoft has invested significantly, from its big stake in Chat-GPT pioneer Open AI to AI chips and a copilot AI subscription service.”

The quarterly report will provide an update on how much customers are spending on artificial intelligence and Microsoft’s cloud computing service Azure.

“The consensus is for earnings to rise by 20%, whilst revenue is seen climbing by 16%, the highest growth for two years.”

3. Netflix quarterly results

After getting hammered in 2022 in a post-pandemic hangover, Netflix Inc (NASDAQ: NFLX) shares have roared back to the tune of 54% over the past 12 months.

“This resurgence is partly thanks to its new advertising plan and crackdown on password sharing,” said Gilbert.

“Netflix has also stepped up its games service, adding the world-renowned Grand Theft Auto, which should provide a boost in the quarter.”

Analysts consensus is that it could be a blockbuster quarterly report from the streaming giant with nine million net subscribers added, added Gilbert, and revenue expected to see the fastest growth in three years.

“The focus for the quarter is likely to be on the outlook for the full year 2024, with consumer spending set to slow, and investors wanting to see strong profit growth with subscribers now at record levels.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up this week
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Better AI stock: Microsoft vs. Amazon
• Is the ResMed share price in the buy zone ahead of next week’s update?

Motley Fool contributor Tony Yoo has positions in Microsoft and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Netflix, Nvidia, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Apple, Netflix, and Nvidia. 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share after its short interest rose slightly week on week to 21.4%. Short sellers don’t seem to believe that lithium prices will be rebounding any time soon.
• Syrah Resources Ltd (ASX: SYR) has short interest of 15.7%, which is up week on week. Weak graphite prices mean that Syrah is currently limiting production from its Balama operation to save cash.
• Core Lithium Ltd (ASX: CXO) has short interest of 12.8%, which is down week on week. Much like Syrah, this lithium miner has announced plans to suspend production to conserve cash.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is up sharply week on week. Short sellers may believe that Sayona Mining will be next in line to hit pause on production.
• IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is up week on week. This language testing and student placement company’s shares recently hit a 52-week low. This has been driven by concerns over the impact of student visa changes and the loss of its monopoly in Canada.
• Deep Yellow Limited (ASX: DYL) has seen its short interest fall to 9%. Short sellers may be regretting this one. Booming uranium prices mean that Deep Yellow’s shares are up 35% in January.
• Genesis Minerals Ltd (ASX: GMD) has seen its short interest remain flat at 8.9%. This high level of short interest may be due to integration risks from recent acquisitions.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.5%, which is up since last week. Last week, Albemarle Corp (NYSE: ALB) sold off its stake in the lithium developer at a sizeable discount.
• Weebit Nano Ltd (ASX: WBT) has returned to the top ten with short interest of 8.3%. The smart end of town appears to believe this semiconductor company is another Brainchip Holdings Ltd (ASX: BRN). All hype and no substance (or revenue).
• Flight Centre Travel Group Ltd (ASX: FLT) has 8.3% of its shares held short, which is down week on week. Short sellers appear to believe that the market is too optimistic on the travel agent’s outlook.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• Why these ASX 200 shares could rise 20% to 50%
• Are Pilbara Minerals shares a buy for that 7% dividend yield?
• Here are the top 10 ASX 200 shares today
• Why is the Deep Yellow share price missing out on today’s market rally?
• If I’d invested $10,000 in Flight Centre shares a year ago here’s what I’d have 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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. 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 was another busy week for Australia’s top brokers. This led to the release of a large number of broker notes.

Three ASX broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on the Big Australian’s shares with a trimmed price target of $49.40. This follows the release of a slightly weaker than expected second quarter update from the mining giant last week. Although Goldman wasn’t overly impressed with the update, it has seen enough to remain positive. The broker also continues to forecast an attractive 5% dividend yield for investors in FY 2024. The BHP share price was trading at $45.73 on Friday.

IGO Ltd (ASX: IGO)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating on this battery materials producer’s shares with a reduced price target of $9.70. Goldman believes that IGO remains a good option for investors even while lithium prices are falling. It highlights that its low costs leave it well-placed to navigate the tough operating environment. Goldman also feels that it is unlikely that ongoing sales curtailments will continue beyond March. The IGO share price was fetching $7.20 at Friday’s close.

ResMed Inc. (ASX: RMD)

Analysts at Citi have retained their buy rating and $29.00 price target on the sleep treatment company’s shares. Ahead of the release of ResMed’s second quarter update next week, the broker is feeling confident. It is forecasting strong revenue growth across ResMed’s devices, masks, and software despite the emergence of GLP-1 drugs like Ozempic. The ResMed share price ended the week at $26.39.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Why the BHP share price has a nickel thorn in its side
• 3 ASX 200 dividend shares I think you could safely hold for decades
• Brokers name 3 ASX shares to buy now
• Are BHP shares a buy following the miner’s Q2 update?
• Goldman Sachs says these blue chip ASX 200 shares are top buys

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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Becoming an ASX share market millionaire is likely to be an aspiration that many readers have.

And while it might seem like you would need big money to achieve this goal, history shows that this isn’t actually the case.

If you have time on your side, then you could build a million-dollar portfolio with ASX shares even by investing modest amounts.

Becoming an ASX share market millionaire

Over the long term, the share market is delivered investors an average annual return of 10% per annum.

There’s no guarantee that it will continue doing the same in the future, but we’re going to assume that it does for the purpose of this article.

Based on that return, let’s now see how long it would take you to become an ASX share market millionaire starting from zero.

If you’re able to invest $500 into ASX shares each month and earned the market return, you would have grown your portfolio to $100,000 after 10 years thanks to the power of compounding.

But as compounding really starts to work its magic the longer you leave it, let’s now fast forward another decade and see what would happen if you continued with your $500 investments.

We’re not quite at your goal yet, but we’re getting closer. After a total of 20 years, your portfolio would have a market value of $360,000.

Let’s now skip to the end. After a total of 30 years of $500 per month investments, you would reach your goal of being an ASX share market millionaire.

This means that a 21-year-old could potentially be a millionaire by the time they are 51 years old.

Getting there quicker

There are ways to get there quicker than this.

If you have more capital to invest, it could be possible to shave some time.

Here’s a quick summary of how long different monthly amounts would take to compound to $1 million based on a 10% return per annum:

• $1,000 – 23 years
• $2,000 – 17 years
• $3,000 – 13.5 years

Overall, I believe this demonstrates that playing the patient game and investing consistently in high quality ASX 200 shares can be a very rewarding endeavour.

The post How to become an ASX share market millionaire by investing $500 a month appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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

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The Australian share market average dividend yield traditionally hovers around the 4% mark.

While this is a good yield, income investors don’t have to settle for that.

For example, analysts are forecasting bigger than average yields from the ASX dividend shares listed below. Here’s what they expect:

Rural Funds Group (ASX: RFF)

The first ASX dividend share to look at is Rural Funds. It is an agricultural property company with a quality and diverse portfolio of assets. These include almond orchards, macadamia orchards, poultry properties, vineyards, cattle properties, and cropping properties.

Many of these properties are leased by leaders in their industries on long-term agreements with built-in periodic rental increases.

Bell Potter is very positive on the company and is forecasting big yields in the near term. It expects dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.01, this will mean yields of 5.8% for investors.

Bell Potter has a buy rating and $2.40 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been tipped to provide above-average dividend yields is Universal Store. It is the youth fashion retailer behind the Universal Store and Thrills store brands.

Morgans is feeling bullish about the company’s outlook thanks to its “attractive array of medium-term growth prospects.”

It expects this to underpin fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the current Universal Store share price of $4.10, this will mean yields of 6.3% and 7.1%, respectively.

Morgans has an add rating and $4.55 price target on its shares.

The post 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Buy Coles and these ASX dividend stocks
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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. 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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