If you’ve invested in the stock market, or any other asset class, you’ve likely experienced some volatility. Ups and downs are generally an unavoidable part of investing, and they can be particularly irritating to those aiming to realise passive income from S&P/ASX 200 Index (ASX: XJO) dividend stocks.

Fortunately, if the market’s turbulence has you feeling queasy, you can take measures to stabilise both your portfolio and your dividends.

3 steps I’d take to protect my dividend income from volatility

Diversification

One of the simplest and most effective ways to protect a portfolio from volatility is to diversify.

For those seeking stable dividend income from ASX 200 shares, that likely means buying a large handful of stocks operating in various sectors.

That way, your income stream can be protected if a single company or those across a single sector were to lower their dividends. It also means you might be positioned to make the most of an isolated upwards tick.  

Defensive dividends

On top of diversification, one can help guard against volatility by seeking out ASX 200 shares with defensive qualities.

Defensive companies typically offer a product or service that their customers can’t easily do without.

That means they likely won’t see their earnings markedly tumble in tough times. Of course, robust earnings are good news for those seeking dividend income.

Woolworths Group Ltd (ASX: WOW) and Transurban Group Ltd (ASX: TCL) are examples of defensive ASX 200 shares. Australians likely won’t stop shopping at supermarkets or driving on toll roads no matter the economic environment. Not to mention, both companies boast a degree of pricing power.

Delve deep

Finally, considering the ins and outs of a company’s finances might help an investor identify more secure sources of dividend income. That means delving into the balance sheets of potential investments.

ASX 200 dividends usually represent a portion of a company’s free cash flow – that which it doesn’t need. Thus, if a company has a multitude of debt to service or its earnings are sporadic, its dividends might be a risk.

Those are just two examples of red flags a potential investor might find on a company’s balance sheet. But what about green flags?

I think a consistent earnings stream and manageable debt levels can represent a green flag for investors looking for dividend income.

I also like to consider a company’s dividend history. If it’s historically grown its offering, it’s probably a good sign that management prioritises shareholder payouts. Though, past performance isn’t an indication of future performance.

The post Volatility got you down? 3 steps to building a robust income from ASX 200 dividend shares appeared first on The Motley Fool Australia.

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• Woolworths or Coles shares: Which ASX grocery giant would I buy right now?
• Woolworths share price slips as sales leap 8%
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• Transurban share price jumps on dividend boost
• This ASX 200 stock is ‘one of the cheapest defensives’ to buy right now

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 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 Core Lithium Ltd (ASX: CXO) share price helped boost investors’ fortunes in April.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed at 86 cents apiece on 31 March. By the closing bell on 28 April those same shares were swapping hands for 98 cents apiece.

That’s a one-month gain of 14%.

For some context, the ASX 200 gained 1.8% in April.

Here’s what went right for the Core Lithium share price in April.

What piqued ASX 200 investor interest in April?

April kicked off well for shareholders in the ASX 200 lithium stock.

On 5 April the company reported it was ready to export a maiden 3,500 tonne shipment of spodumene concentrate (5.6% lithium oxide) to Yahua in China from its Finniss Lithium Operation in the Northern Territory.

That export came in ahead of schedule, with the first shipment originally slated for the end of April. The Core Lithium share price closed the day up 8.1%.

Less than two weeks later, on 18 April, the lithium miner released another promising update.

Core Lithium revealed that following its 2022 exploratory drilling program, the mineral resource estimate at the Finnish Lithium Operation had increased by 62%.  The mineral resource estimate was increased to 30.6 million tonnes at 1.31% lithium oxide.

Commenting on the day, Core Lithium CEO Gareth Manderson called it â€œa fantastic outcome for Core and our shareholders”.

He added that increased mineral resource estimate highlighted “the strong potential for life of mine extensions at the Finniss Lithium Operation”.

The Core Lithium share price closed up 6.5% on 18 April.

What else lifted the Core Lithium share price in April?

Core Lithium released its third-quarter activities and cash flow report on 26 April.

The company’s balance sheet was solid, with the miner holding $98 million in cash and cash equivalents as at 31 March.

Core Lithium also reported it has started a $25 million drilling program for 2023. As it tests the potential for life of mine extensions and expansions, that’s nearly twice what the miner spent on its drill campaign in 2022.

“Core is rapidly moving to lithium concentrate producer status,” Manderson said.

The Core Lithium price finished 2.1% higher on the day.

The post The Core Lithium share price surged 14% in April. Here’s why appeared first on The Motley Fool Australia.

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• What’s the forecast for the lithium price in May?
• 7 reasons why Core Lithium says you should buy its shares
• Short sellers reveal 4 ways to spot dud ASX shares
• Here are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today

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

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It’s been a fairly vicious day for ASX 200 investors and the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 has tanked by a nasty 1.04%, pulling the index down to just over 7,190 points. But something else entirely is happening with ASX 200 gold shares.  

Take the ASX 200’s largest gold share, Newcrest Mining Ltd (ASX: NCM). The Newcrest share price is currently up a rosy 2.31% at $29.26 a share:

Its peer Northern Star Resources Ltd (ASX: NST) has gained an even more impressive 3.32% to $13.69 a share.

But it’s not just the big dogs. Evolution Mining Ltd (ASX: EVN) shares have shot up 3.88% to $3.62, while De Grey Mining Limited (ASX: DEG) has rocketed 5.13% to $1.64. Gold Road Resources Ltd (ASX: GOR) is performing similarly, climbing a happy 5.8% to $1.92 a share.

So what on earth is going on with these ASX 200 gold shares today that have this corner of the market bucking the Index so comprehensively?

Why are ASX 200 gold shares going to the moon today?

Well, we don’t have to look too far to find an answer.

The gold price itself has seen a significant bump over the past 24 hours or so. As my Fool colleague flagged this morning, gold shot back up over the US$2,000 per ounce price point. The precious metal climbed 1.6% overnight alone and is now asking just over US$2,020 an ounce.

It was only a few days ago that gold was going for around US$1,980 for that same ounce, so this is a significant appreciation that we have seen this week so far.

As such, it’s not too surprising to see ASX 200 gold shares light up the ASX sky today. In fact, the gold sector is the only ASX sector in the green today, with all others nursing heavy losses.

Today’s moves are certainly fulfilling ASX 200 gold shares’ traditional reputation as a safe haven, considering the turmoil we are seeing in the broader market. But let’s see what the rest of the week has in store for this ASX sector.

 

The post Why are ASX 200 gold shares going gangbusters today? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• 5 things to watch on the ASX 200 on Monday
• 2 ASX 200 gold stocks just downgraded by brokers (and one upgraded)

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. 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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BHP Group Ltd (ASX: BHP) shares are in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner are down 1.01% in midday trading, currently changing hands for $43.19 apiece.

That puts the BHP share price down 9% over the past 12 months, as iron ore prices have come off the boil.

Of course, this doesn’t include the two juicy dividend payments the ASX 200 miner made over the past full year.

As you may be aware, BHP shares have attracted growing interest from passive income investors for the company’s recent, outsized, fully franked dividends.

How outsized?

On 22 September, BHP paid a final dividend of $2.552 per share. The interim dividend of $1.364 per share will have landed in investor bank accounts on 30 March.

That rounds out to a full-year payout of $3.92 per share, 100% franked.

At the current share price of $43.19, that equates to a trailing yield of 9.1%. Or a handy $91 in annual passive income from a $1,000 investment, with potential tax benefits.

But some ASX 200 investors will be earning a significantly higher dividend yield.

Now before moving on, please note we’re discussing trailing dividend yields here. Future dividend payments will rely on numerous factors.

Dividends from BHP shares in 2023 and 2024 may be higher or lower, depending on various company-specific and macroeconomic factors.

With that said…

Did you buy BHP shares on the July dip?

Buying a company’s shares after they’ve been falling for more than a month can take a cast iron stomach.

After all, there are no guarantees the share price won’t go a lot lower.

But with quality stocks, like BHP shares, buying in after a large retrace has the potential of delivering some outsized share price gains along with a significantly higher passive income stream.

July offered one such opportunity.

Brave – or perhaps well-advised – investors could have bought BHP for $36.10 per share on 15 July.

Those investors will be sitting on a tidy 19.4% share price gain today.

But perhaps even more importantly, they’ll also be earning a 10.8% yield from those shares. Fully 1.7% more than investors who bought at current prices.

That equates to $108 in annual passive income, with franking credits, from a $1,000 investment in BHP shares.

The post Investing for passive income? Here’s your dividend yield if you bought BHP shares in July appeared first on The Motley Fool Australia.

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More reading

• Bye bye OZ Minerals shares
• Get rich slowly! The 3 keys to building wealth with ASX shares
• Worried about the market? 2 ASX dividend stocks that could help you sleep at night
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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

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It’s been a rather horrific day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares so far this Wednesday.

It seems investors are not taking kindly to the unexpected interest rate rise that we saw yesterday from the Reserve Bank of Australia (RBA). At the present time, the All Ords Index has lost a meaty 1.04%, putting it down to around 7,380 points.

But one ASX All Ords share is doing far worse than that. So let’s talk about the Ooh!Media Ltd (ASX: OML) share price.

Ooh!Media shares are having a shocker so far this morning. This All Ords media and advertising company closed at $1.63 a share yesterday afternoon.

But this morning, the Ooh!Media share price opened at just $1.08 a share, before getting down to the $1.06 we are seeing at present. That’s a whopping 33% slide on yesterday’s close:

So what on earth has prompted this ASX All Ords share to shed a third of its value in just a few hours?

What has caused this ASX share to crater 30%?

Well, it appears the culprit is an investor presentation the company has just released, made at the Macquarie Australia Conference. This presentation included a trading update for Ooh!Media!, which contained some sobering numbers. 

It wasn’t all bad news, with the media company reporting that first-quarter revenues grew by 3% over the corresponding period in 2022. Ooh!Media’s Road and Fly divisions also recorded year-on-year growth rates of 7% and 88% respectively.

But the company revealed that, overall, it had experienced a “softening media market at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand”.

Ooh!Media stated that media revenue over April was “particularly soft, pacing at -10 vs pcp [the prior corresponding period]”. Street revenue is another sore point with the company reporting that it “continues to be impacted by the launch of City of Sydney”.

Saying that, Ooh!Media also said that it is seeing a recovery in the May and June numbers, with the quarter ending 30 June 2023 “currently slightly ahead vs the pcp”.

But it’s the negative news that investors seem to be focusing on today.

Ooh!Media share price snapshot

Up until today, Ooh!Media was having a top year, having gained more than 32% year to date. But as it stands at the moment, the company has erased its entire 2023 gains. It is also now down 18.2% over the past 12 months.

At the current Ooh!Media share price, this All Ords media company has a market capitalisation of $603 million, with a dividend yield of 4.23%.

The post oOh!Media share price crashes 30% following ‘particularly soft’ month appeared first on The Motley Fool Australia.

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• Bye bye OZ Minerals shares
• 2 top ASX ETFs I’d buy with the goal of long-term capital growth
• Bank of Queensland share price dips following more losses for US regional banks
• Flight Centre share price lifts following record, $1 billion month
• Retirees: How you could earn $705 a month in ASX dividends with less than $100K in savings

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Fans of S&P/ASX 200 Index (ASX: XJO) copper shares will have one less horse in the race after today. OZ Minerals Ltd (ASX: OZL) shares are to be removed from the market this evening following BHP Group Ltd (ASX: BHP)’s takeover.

The $219 billion iron ore giant announced the completion of its $9.6 billion acquisition yesterday afternoon. That sees it become the official parent company of the copper miner.

Trading of OZ Minerals shares ceased on the close of 18 April. That stock has been halted at $28.19 since.

So, what’s next for the ASX 200 copper giant and its fans? Let’s take a look.

All OZ Minerals shares have been acquired by BHP

BHP has officially enveloped OZ Minerals shares, with those holding stock in the takeover target being paid $28.25 per share yesterday.

That means anyone wanting exposure to the company from today forward ­­will need to invest in BHP stock to get it.

The good news? The acquisition leaves BHP with a far larger critical metals footprint. CEO Mike Henry commented yesterday:

This acquisition strengthens BHP’s portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition.

The payment made to the takeover target’s shareholders yesterday included $26.50 per share of cash from BHP and a fully franked $1.75 per share dividend offered by OZ Minerals. BHP’s portion of the payment was funded using cash reserves and the proceeds of a debt facility.

BHP first bid for the copper giant in August last year, first offering $25 per share before upping its offer to $28.25 per share. The OZ Minerals share price soared 35% on the initial bid and leapt another 4% on the revised offer.

Following the takeover’s implementation, BHP holds OZ Minerals’ major Prominent Hill and Carrapateena assets. They’re located nearby its existing Olympic Dam asset in South Australia.

Prominent Hill’s underground operations delivered 1.2 million tonnes of ore at 1.31% copper last quarter. Carrapateena, on the other hand, produced 15,080 tonnes of copper and 19,868 ounces of gold over the period.

Commenting in the company’s final quarterly production report late last month, CEO and managing director Andrew Cole said:

The board and management would like to thank all our stakeholders for their contribution to OZ Minerals’ success.

We trust that they feel value has been created for them in line with our strategy of creating value for all our stakeholders and our purpose, going beyond what’s possible to make lives better.

All that’s left to do now is bid farewell to the ASX 200 copper favourite before it delists this afternoon.

The post Bye bye OZ Minerals shares appeared first on The Motley Fool Australia.

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• Worried about the market? 2 ASX dividend stocks that could help you sleep at night
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• How I’d generate $400 in monthly passive income from 2 ASX 200 iron ore shares
• Why did the BHP share price dive 6% in April?
• Bull and bear factors impacting BHP shares

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 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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Exchange-traded funds (ETFs) are a popular way to invest. Certainly, I think ASX ETFs can be a very good way to build wealth. There are two in particular I’m going to tell you about which I think can deliver strong long-term capital growth.

There are some businesses that may deliver decent returns through dividends. But others can deliver good capital growth thanks to strong customer demand, a lot of re-investment by the companies, and an attractive return on equity (ROE).

With that in mind, I think ETFs that are focused on businesses with quality metrics can do well. Here are two that stand out.

VanEck MSCI International Quality ETF (ASX: QUAL)

This ASX ETF offers Aussie investors international diversification. It’s invested in around 300 businesses around the world. The following countries currently have a weighting of more than 1%: the US (74.2%), Switzerland (6.1%), Japan (3.7%), the Netherlands (3.3%), the UK (3.1%), Denmark (2.7%), Ireland (1.6%), France (1.3%), and Canada (1.2%).

But there’s more to this ETF than simply diversification. It is invested in what VanEck calls the world’s “highest-quality companies based on key fundamentals”, including a high return on equity, earnings stability, and low financial leverage.

As of 1 May 2023, its biggest holdings included Microsoft, Apple, Nvidia, Meta Platforms, and Home Depot.

Of course, past performance is not a guarantee of future results. But, in the five years to March 2023, the ASX ETF achieved an average return per annum of 14%. It outperformed the global share market (as measured by the MSCI World ex Australia Index) which returned an average of 11% per annum over the same time period.

I think the quality of the underlying businesses can help the ASX ETF continue to deliver good capital returns.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This is one of my favourite ETFs on the ASX.

It’s focused on US businesses that have a strong ‘economic moat’. An economic moat can also be called a company’s competitive advantage. It describes the ability of a business to fight off competitors or maintain its advantage. Economic moats can come in a number of different forms such as brand power, intellectual property, network effects, and cost advantages.

The analysts that decide which businesses to invest in decide on a watchlist of businesses that have an economic moat that will, in their eyes, almost certainly endure for the next decade and, more likely than not, the next two decades.

With that watchlist, the ETF invests in “targets companies trading at attractive prices relative to Morningstar’s estimate of fair value”.

The investment strategy has been effective. The Vaneck Morningstar Wide Moat ETF has returned an average of 16.8% per annum over the past five years.

On 1 May 2023, it had 49 holdings, with these five being the biggest holdings: Meta Platforms, Salesforce.com, Microsoft, Medtronic, and Comcast.

Foolish takeaway

I like the investment style of these two ASX ETFs and I think they can provide a mixture of both diversification and good returns.

Out of the two, I prefer the MOAT ETF but, let’s be clear, I also really like the QUAL ETF.

The post 2 top ASX ETFs I’d buy with the goal of long-term capital growth appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 Apple, Home Depot, Meta Platforms, Microsoft, Nvidia, and Salesforce. The Motley Fool Australia has recommended Apple, Meta Platforms, Nvidia, Salesforce, and VanEck Morningstar Wide Moat ETF. 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 Bank of Queensland Ltd (ASX: BOQ) share price is down a slender 0.3% in morning trade on Wednesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $5.84. Shares are currently swapping hands for $5.82.

It’s not just the Bank of Queensland share price that’s in the red today. In fact, the smaller bank is holding up better than its big four rivals.

Following yesterday afternoon’s surprise interest rate hike from the RBA and another day of losses in US markets, the ASX 200 is down 0.8% at this same time.

With the big banks all under pressure as well today, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 1.5%.

Bank of Queensland share price dips amid US regional banking crisis

The fallout from the ongoing turmoil in US regional banks could throw up more headwinds for the Bank of Queensland share price and the broader financial sector over the coming weeks.

It was only Monday night Aussie time that the remnants of First Republic Bank were acquired by US banking giant JPMorgan.

The second-largest US bank failure in history came sharp on the heels of the collapse of US regional banks Silicon Valley Bank and Signature Bank in March. Fallout from those implosions helped send Credit Suisse to the brink before it was quickly taken over by UBS.

But it appears investors remain very jittery about the outlook for regional banks in the US.

In US markets yesterday shares in Western Alliance Bancorporation (NYSE: WAL) tumbled 15%. That puts the bank stock down 59% since 6 March.

Things were even more dire for PacWest Bancorp (NASDAQ: PACW). The PacWest share price crashed 28% yesterday. PacWest shares are now down 76% since 6 March and trading at all-time lows.

Which certainly helps put today’s 0.3% retrace in the Bank of Queensland share price in perspective.

What the experts are saying

Commenting on the latest sell-offs in US regional banks, Ed Moya, senior market analyst at Oanda said (quoted by Bloomberg):

Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon. Risk appetite did not stand a chance as traders focused on lingering doubts over the regional banks, rising recession odds, and growing risks that the US could default on its debt next month.

David Hunt, CEO of PGIM, cautioned that with tighter financial regulations in the pipeline, there’s likely to be more pain for the US economy ahead following the takeover of First Republic.

“There is a little bit of a tendency to kind of breathe a sigh of relief on mornings like this. Actually, we’re just starting the implications for the US economy,” he said (quoted by The Australian Financial Review).

Hunt continued:

First of all, we’re going to see a real ratcheting-up of regulation in the banking system, particularly on many … regional lenders… What that will do is … further hinder the supply of credit that’s going into the economy. And I think that we are going to see now a real slowing that begins to happen to aggregate demand.

Citigroup CEO Jane Fraser sounded a bullish tone on the outlook for US banks.

“When you take a step back and look at the structure of the US financial system, it’s incredibly sound,” she said.

Bank of Queensland share price snapshot

Over the past 12 months, the Bank of Queensland’s share price has dropped 28%. Shares are down 14% so far in 2023.

The post Bank of Queensland share price dips following more losses for US regional banks appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Western Alliance Bancorporation. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is in the green after the S&P/ASX 200 Index (ASX: XJO) travel giant updated its guidance on the back of a record-breaking month.

The company’s leisure and corporate legs saw their combined monthly total transaction value (TTV) surpass $1 billion for the first time ever in March as their COVID-19 recovery accelerates.

That helped to see the ASX 200 travel favourite “tracking comfortably” within its new full-year guidance range.

It’s now targeting between $270 million and $290 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA).

The Flight Centre share price is up 1.8%, trading at $20.92, in early morning trade.

That sees it outperforming the ASX 200 – the index is down 0.9% at the time of writing.

Let’s take a closer look at the latest update from the travel agency.

Flight Centre share price rises on record March performance

The Flight Centre share price is higher this morning on news the company has narrowed its earnings guidance and updated it to include the newly-acquired luxury tour operator Scott Dunn.

It also revealed its leisure business drove its record March – bringing in 47% of the group’s TTV. The segment’s TTV rose 280% year-on-year over the first nine months of financial year 2023.

Meanwhile, its corporate business is also outperforming. Its TTV over the 10 months to 30 April is already in line with its record financial year 2019 performance, with recent wins expected to boost future TTV.

The company’s revenue margin in the second half is expected to be in line with that of the first half and its underlying cost margin is sitting at a historic low.

Finally, it grew its cash and investments by $200 million last quarter to reach $1.3 billion.

Looking further ahead, Flight Centre is undergoing a capital management review, focusing on medium-term shareholder returns.

It’s targeting an underlying profit before tax margin of 2% for financial year 2025 and plans to reach its goal through revenue and cost margin improvements.

The Flight Centre share price has been on a roll this year, rising 41% year to date. Still, the stock remains the market’s most shorted, with a short interest of 11.6% at last count.

The post Flight Centre share price lifts following record, $1 billion month appeared first on The Motley Fool Australia.

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More reading

• Top broker upgrades Flight Centre share price
• Here are the 10 most shorted ASX shares
• When will my Flight Centre shares start paying income again?
• These are the 10 most shorted ASX shares this week
• Is the Flight Centre share price handing ASX 200 investors a buying opportunity?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Retirees may like to consider ASX dividend shares for passive income in retirement because of a number of different reasons.

For starters, ASX dividend shares can pay investors an impressive dividend yield. People can use stocks to unlock a lot more sustainable cash flow than other types of assets may be capable of.

These businesses can also achieve capital growth over the long term, adding to the returns for investors. Retirees can build a portfolio of names that can provide diversification.

There has been a lot of volatility since the start of 2022. Lower share prices give investors the opportunity to buy these businesses with a better yield, and hopefully, there’s a better chance of capital growth in the short term and long term.

I think retirees could utilise these ASX dividend shares to create strong annual passive income.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is not exactly a retail juggernaut, but it aims to be the leader when it comes to hair removal in Australia.

I think it’s in a good section of the retail market – whether the economy is booming or not, hair removal products could remain in demand.

The ASX dividend share has been steadily growing its scale, which is helping improve profitability. Shaver Shop has increased its dividend each year since it started paying a dividend in 2017. That’s a good record in my opinion.

Estimates on Commsec suggest the business could pay an annual dividend per share of 10.2 cents in FY23, which would be a grossed-up dividend yield of 13.5%. Further dividend growth is expected in FY24 and FY25.

GQG Partners Inc (ASX: GQG)

This is a global fund manager which offers investors a number of different investment strategies around the world.

GQG has committed to paying a quarterly dividend of 90% of its distributable earnings. This can enable the business to have a large dividend yield.

It helps that the fund manager is seeing good funds under management (FUM) inflows, while the investment funds are delivering long-term outperformance. If FUM rises, then earnings can grow and that means the dividend can grow as well.

Commsec numbers suggest that GQG could pay an annual dividend per share of 12.1 cents in 2023. This translates into a forward dividend yield of 8.3%.

Metcash Limited (ASX: MTS)

Metcash is a diversified business. It has a hardware division that owns the brands of Mitre 10, Total Tools and Home Timber & Hardware. The ASX dividend share supplies IGA supermarkets around Australia. It also supplies independent liquor retailers including Cellarbrations, Thirsty Camel, The Bottle-O, IGA Liquor, and Porters Liquor.

The business has seen a shift in shopper behaviour since COVID-19, with an increase in local neighbourhood purchasing.

Metcash continues to invest in its business to become even better – it’s focused on areas like loyalty, digital and e-commerce, data, network optimisation and development, as well as addressing legacy technology through ‘project horizon’.

The ASX dividend share has grown its dividend each year since 2020. Commsec numbers suggest it could pay an annual dividend per share of 22.1 cents in FY23. This would be a grossed-up dividend yield of 8.1%.

Foolish takeaway

Investing a total of $85,000 spread across these three ASX dividend shares would earn a total of $8,466 of annual dividend income, which amounts to monthly dividends of $705. I think that would be a very promising amount for retirees.

The post Retirees: How you could earn $705 a month in ASX dividends with less than $100K in savings appeared first on The Motley Fool Australia.

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More reading

• 2 small-cap shares I rate to beat the ASX 200 in 2023 (and beyond)
• 6 excellent ASX 200 dividend shares that aren’t banks or miners
• Investing 15% of my salary could yield $500 in a monthly second income
• Morgans says these are some of the best ASX dividend shares to buy
• I think the market is wrong about this beaten-up ASX 200 share

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Metcash. 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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