ASX gold shares are broadly enjoying a strong run today.

With the gold price edging higher overnight to US$1,855 per troy ounce (up 1.7% so far in 2023), most gold stocks are in the green.

That sees the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2.3% in late morning trade, compared to a 0.4% gain posted by the All Ordinaries Index (ASX: XAO).

But one ASX gold share is leaving those gains in the dust.

Can you guess which one?

If you said Alkane Resources Limited (ASX: ALK), go to the head of the class. Shares in the gold miner are up 13% at the time of writing, having earlier posted gains of 15%.

Here’s what’s sending the Alkane Resources share price rocketing.

What did the gold miner report?

Alkane Resources is leading the ASX gold share rally today after the miner upgraded its FY2023 guidance for its Tomingley Gold Operations, located in New South Wales.

Alkane increased its guidance to between 62,000 ounces and 70,000 ounces of gold, up from the previous guidance of 55,000 to 60,000 ounces.

All in sustaining costs (AISC) were revised downwards from the previous $1,650 to $1,900 per ounce to the new guidance of $1,550 to $1,800 per ounce.

The ASX gold share also looks to be getting a boost after reporting Tomingley exceeded its production forecast for the December quarter, with 18,301 ounces of gold produced over the three months. That brings the miner’s first half-year production for FY23 to 37,790 ounces of gold.

The company reported its unaudited cash, bullion and listed investments position on 31 December stood at $114 million.

Commenting on the updates sending the ASX gold share soaring today, Alkane managing director Nic Earner said:

Tomingley continues to deliver outstanding performance, resulting in upgraded guidance for the 2023 financial year… With approvals expected shortly to extend the life of Tomingley beyond 2030 at increased production rates, we’re looking forward to developing the Roswell resource in the year ahead.

How has this ASX gold share been performing?

With today’s big intraday lift factored in, the Alkane Resources share price is up a handy 20% in the first week of trading in 2023.

Over the past year, as you can see in the chart below, the ASX gold share remains in the red, down 29%.

The post Can you guess which ASX gold share is surging 15% on Thursday? appeared first on The Motley Fool Australia.

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• The Lake Resources share price sank 21% in 2022. What now?
• The 3 best performing ASX 200 dividend shares of 2022
• Is China about to reignite ASX 200 coal shares?
• How buying this ASX 200 share could boost my annual dividend income by 17%
• The Webjet share price recovered 20% in 2022. Is this just the beginning?

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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I believe investing in shares in just one S&P/ASX 200 Index (ASX: XJO) company could boost my annual dividend income by 17%.

If my portfolio was offering passive income in line with the broader ASX 200 – as per the SPDR S&P/ASX 200 (ASX: STW) (an exchange-traded fund (ETF) tracking the index) – adding Rio Tinto Limited (ASX: RIO) shares could make a big impact. Here’s how.

Can I up my dividend income with just one ASX 200 share?

That’s right. The mammoth dividend yield currently on offer by the iron ore giant could bolster an average ASX 200 portfolio’s passive income significantly.

According to the SPDR ASX 200 fund, the average ASX 200 share boasts a dividend yield of 4.72%.

Meanwhile, Rio Tinto shares closed Wednesday’s session with a whopping 8.19% trailing dividend yield – that’s certainly nothing to scoff at!

Let’s assume, then, I was considering adding $3,000 worth of Rio Tinto shares to a $10,000 portfolio otherwise capable of offering the ASX 200’s average yield.

Let’s do the math

Here’s how my ongoing yield might look if I added a chunk of Rio Tinto shares to an average-yielding ASX 200 portfolio:

Investments’ value	Expected dividend yield	Anticipated annual dividends
$10,000	4.72%	$472
$3,000	8.19%	$245.70
$13,000	5.52%	$717.70

As the above chart shows, by adding $3,000 worth of the ASX 200 giant’s shares to the portfolio, its anticipated annual dividend offerings could jump $472 to $717.70 – a 52% increase.

It would also boost its expected dividend yield by 17% – lifting it from 4.72% to around 5.52%.

Of course, the more Rio Tinto shares added to the mix, the more the portfolio’s total yield would increase towards that of the iron ore giant.

But I wouldn’t buy into the ASX 200 favourite without considering a number of other factors.

More than meets the eye?

While increasing my annual dividend yield by 17% might be tempting, I likely wouldn’t jump in with both feet just yet. Here’s why.

Firstly, Rio Tinto’s mammoth trailing dividend yield is just that – trailing. That means its future dividends might not reach such pinnacle levels.

Listed companies typically rely on their earnings to pay out dividends.

Thus, I would comb through the company’s books just as I would before buying any other stock prior to deciding if it is a worthwhile addition to my portfolio. In doing so, its current 8.19% dividend yield wouldn’t be a decisive factor.

Additionally, I would be sceptical about investing a large chunk of my portfolio in a single stock. I might even consider taking smaller positions in multiple high-yielding ASX 200 shares so to better diversify my investments.

The post How buying this ASX 200 share could boost my annual dividend income by 17% appeared first on The Motley Fool Australia.

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More reading

• My plan to turn $5 a day into a passive income in 2023
• 5 things to watch on the ASX 200 on Thursday
• The 5 biggest threats to the stock market in 2023
• Iron ore price in 2023: Bull vs. bear
• Why Dreadnought, Pointsbet, Rio Tinto, and Woodside shares are pushing higher

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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It was a difficult 12 months for the S&P/ASX 200 Index (ASX: XJO) in 2022. Over the period, the benchmark index lost 5.5% of its value.

The good news is that not all ASX 200 shares dropped with the market, with some even managing to beat the market convincingly.

A number of popular ASX 200 dividend shares (with yields greater than 3%) performed strongly during the year. Listed below are some of the best performers during the period:

Whitehaven Coal Ltd (ASX: WHC)

Thanks to booming coal prices, Whitehaven Coal was the best performing ASX 200 dividend share in 2022 with a gain of 261%. During the year, the coal miner also rewarded its shareholders with dividends totalling 48 cents per share. Based on the current Whitehaven Coal share price, this equates to a partially franked 5.8% dividend yield.

For the same reason, New Hope Corporation Limited (ASX: NHC) smashed the market with a 185% gain. It also paid fully franked dividends totalling 86 cents per share, which was the equivalent of a 13.5% dividend yield.

Woodside Energy Group Ltd (ASX: WDS)

Another ASX 200 dividend share that delivered stellar returns for investors was Woodside. Thanks to strong oil prices and the merger with the petroleum assets of BHP Group Ltd (ASX: BHP), Woodside shares rose 62% higher during 2022. The energy giant also paid fully franked dividends totalling $3.06 per share during the 12 months. This represents a 9.1% dividend yield at current prices.

Origin Energy Ltd (ASX: ORG)

Finally, this energy company was a strong performing ASX 200 dividend share in 2022. Thanks to an $18 billion takeover approach from Brookfield Asset Management and MidOcean Energy, Origin shares rose a massive 47% during the period. The company also rewarded its shareholders with total dividends of 29 cents per share in FY 2022. Based on the current Origin share price, this represents a 3.8% dividend yield.

The post The 3 best performing ASX 200 dividend shares of 2022 appeared first on The Motley Fool Australia.

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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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S&P/ASX 200 Index (ASX: XJO) coal shares are off to a solid start in 2023.

Having all more than doubled their share prices last year, Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Limited (ASX: NHC), and Yancoal Australia Ltd (ASX: YAL) are all in the green in this first week of trading in the new year.

This comes in the wake of a smashing year for the big coal stocks in 2022.

ASX 200 coal shares enjoyed some gale force tailwinds as the price of thermal coal – used to generate electricity – soared to record levels.

Demand for high-quality Aussie coal lifted across the world, with the notable exception of China, following Russia’s invasion of Ukraine and the resultant global sanctions on Russian energy exports.

China’s ban on Aussie coal imports entered its second year in 2022. The unofficial ban was put in place, in part, as a response to Australia’s support of an inquiry into the origins of the COVID virus.

But now, early rumours suggest, that China’s Aussie coal ban could be lifted as soon as 1 April. Which would certainly be welcome news to the ASX 200 coal shares.

All eyes on China’s National Development and Reform Commission

The Australian and Chinese governments have been making some progress in mending their frayed relations.

In a sign the improved sentiment may be paying off, Bloomberg reports China’s National Development and Reform Commission this week discussed reopening the door to some Aussie coal imports.

People familiar with the matter, who wished to remain anonymous, indicated that China Baowu Steel Group Corp, China Datang Corp, China Huaneng Group Co and China Energy Investment Corp could be allowed to make new purchases in 2023.

Imports, much of which would likely be sourced from the big ASX 200 coal shares, could restart by 1 April.

The immediate impact is unlikely to be huge, in part because the big coal miners can’t simply turn a tap to ramp up production. That takes many months or years even.

But Ray Attrill, head of currency strategy at National Australia Bank Ltd (ASX: NAB) in Sydney, noted that if China reopens its ports to Australian coal imports, it could send prices higher.

There will be an overall “impact on sentiment from evidence of improving relations with China,” he said.

ASX 200 coal shares have been on fire

As mentioned above and you can see in the charts below, ASX 200 coal shares have been strong outperformers over the past 12 months.

And the big miners could be in for some additional tailwinds in 2023 if China indeed lifts its import ban on Aussie coal.

The post Is China about to reignite ASX 200 coal shares? appeared first on The Motley Fool Australia.

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More reading

• The 3 best performing ASX 200 dividend shares of 2022
• These are the highest-yielding ASX 200 dividend shares right now
• These were the 5 top-performing ASX All Ords shares of 2022
• Why did the Whitehaven Coal share price tumble 6% today?
• Why Invictus Energy, New Hope, Pilbara Minerals, and WiseTech shares are dropping

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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The Webjet Limited (ASX: WEB) share price returned to form and was a market beater in 2022.

As you can see below, during the 12 months, the online travel agent’s shares rose a sizeable 19.5%.

This compares favourably to the ASX 200 index, which declined 5.5% during the same period.

What drove the Webjet share price higher?

Investors were buying Webjet shares last year after its recovery from the pandemic gathered pace.

For example, in FY 2022 Webjet reported a 261% increase in total transaction value (TTV) to $1,638 million and a 258% jump in revenue to $138 million.

And while Webjet still posted an underlying loss of $38.4 million for the 12 months, management revealed that the company was profitable during the second half and delivered positive cash flow. In light of this result, a return to profit was now expected in FY 2023.

The good news is that Webjet is on course to achieve this. In November, the company released its half year results for FY 2023 and revealed an underlying half year profit after tax of $32 million.

The even better news was that the company was on track to exceed pre-pandemic profitability in FY 2023, with second half EBITDA expected to exceed pre-pandemic levels by at least $10 million.

Investors responded positively to what Managing Director John Guscic described as a “spectacular turnaround” for the company, which led to the Webjet share price shooting higher on the day.

Will its shares continue to rise in 2023?

Webjet shares may have smashed the market last year, but a number of brokers still believe they can keep rising.

For example, Goldman Sachs has a conviction buy rating and $6.90 price target on the company’s shares. This implies potential upside of 10% for Webjet shares over the next 12 months.

The team at Morgans is also bullish and has an add rating and $7.20 price target.

Based on the current Webjet share price of $6.27, this suggests potential upside of 15% for investors this year. Morgans commented:

In our view, WEB hasn’t wasted a crisis and will come out of COVID with a materially lower cost base, consolidated systems and a large business in the US. With plenty of market share still to win, we maintain an Add rating on WEB.

The post The Webjet share price recovered 20% in 2022. Is this just the beginning? appeared first on The Motley Fool Australia.

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• 23 ASX shares to buy in 2023 – brokers
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• 2 ASX 200 shares that have ‘further potential’ for good returns: experts

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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It certainly was a difficult year for the Bitcoin (CRYPTO: BTC) price in 2022.

As we covered here, rising interest rates, tech selloff, and numerous industry scandals and collapses led to the world’s largest cryptocurrency losing approximately 65% of its value.

Will things be better for the Bitcoin price in 2023?

While forecasting the Bitcoin price seems like an impossible task, that hasn’t stopped a number of analysts from giving it a shot.

Unsurprisingly, these analysts have vastly different expectations for the cryptocurrency.

For example, according to CNBC, Bitcoin bull Tim Draper from Draper Fisher Jurvetson believes the cryptocurrency could climb almost 1,400% to US$250,000 in 2023.

In fact, Draper suspects that the Bitcoin price could rise to this level by the middle of the year. Though, it is worth noting that he made the same prediction for 2022, which clearly didn’t eventuate.

Draper expects female investors to be the key driver of this gain. He told CNBC:

My assumption is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women that the dam is about to break.

Bitcoin bears

The team at Standard Chartered isn’t buying into this. It has suggested that the Bitcoin price could tumble by over two-thirds to US$5,000 in 2023.

It warned that rising bond yields and a plunge in technology stocks could lead to an acceleration of the Bitcoin selloff and cause further bankruptcies and collapses in the crypto world.

This view is shared with Mark Mobius from Mobius Capital Partners. He warned that higher interest rates will reduce the appeal of Bitcoin and is expecting the cryptocurrency to fall by a third to US$10,000 in 2023. Mobius told CNBC:

With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest.

Time will tell which analysts make the right call.

The post Will the Bitcoin price rise 1,400% in 2023? appeared first on The Motley Fool Australia.

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• The Bitcoin price crashed 65% in 2022. Here’s why

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 Bitcoin. 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 new year has dawned and with it has come new opportunities. What better time is there to revisit your investing goals? There are thousands of reasons to invest, but the major intensive is to build passive income.

Perhaps kicking back over the holiday period reminded you how much you enjoy living life and relaxing without having to worry about pay slips, meetings, or emails.

Fortunately, I have a $5 a day plan to build a secondary income in 2023. Here’s how I might aim to put my money to work this year.

How I’d aim to turn $5 a day into a passive income this year

$5 a day might not sound like much. Indeed, it probably won’t get you a strong latte in most Aussie cities.

However, such a small amount can add up over the weeks, months, and years to come. Particularly when we consider compounding.

$5 a day adds up to around $152 a month, or $1,825 a year.

Over 10 years, investing my daily pocket change could see me boasting an $18,250 portfolio – enough to provide $861.40 of annual dividend income, considering the SPDR S&P/ASX 200 (ASX: STW)’s current 4.72% dividend yield. ­The SPDR ASX 200 Fund is an exchange-traded fund (ETF) tracking the S&P/ASX 200 Index (ASX: XJO).

However, 2022’s downturn has likely left some ASX 200 shares trading for bargain prices and, thereby, boasting decent dividend yields.

Thus, I might aim to build a portfolio boasting an average dividend yield of around 7% this year and compound my payouts into the future.

Taking advantage of 2022’s downturn

But first, I’d pick a diverse handful of stocks I believe offer reliable dividends, advantages over their peers, and future earnings potential.

The latter is important as dividends are derived from a company’s earnings. Therefore, I’ll be keeping my eye out for consistent cash flows and a strong balance sheet.

Some stocks that might be on my radar include Super Retail Group Ltd (ASX: SUL), Rio Tinto Limited (ASX: RIO), Incitec Pivot Ltd (ASX: IPL), and JB Hi-Fi Limited (ASX: JBH).

The four ASX 200 shares currently offer an average dividend yield of around 7.3%.

At such levels, the figurative $1,825 portfolio I could boast at the end of this year after investing $5 a day could offer $133.20 of passive income.

But if I compounded my dividends…

However, I wouldn’t take those dividends as cash. Instead, I would reinvest them into my passive income portfolio, thereby compounding my dividends.

Assuming I can continue to receive a 7.3% yield and my shares’ value doesn’t move, my portfolio could be worth $25,571 in 10 years thanks to the power of compounding. At that point, it would be capable of paying out $1,866 of dividend income each year.

Looking further into the future, in 20 years’ time my portfolio could be worth $77,292 – which could pay out $5,642 annually at a 7.3% dividend yield.

That’s certainly worth $5 a day, in my opinion.

The post My plan to turn $5 a day into a passive income in 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income
• The 5 biggest threats to the stock market in 2023
• I think these are the 10 best ASX shares to buy for 2023
• Iron ore price in 2023: Bull vs. bear

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re new to investing in ASX shares, then following Warren Buffett’s investment philosophy could be a great way to start your journey.

After all, the Oracle of Omaha has generated staggering returns over multiple decades.

For example, in his most recent annual letter, Buffett revealed that Berkshire Hathaway’s market value per share has increased by an average of 20.1% per annum from 1965 to 2021. This means that Berkshire Hathaway has returned 3,641,613% over the 56 years, which would have turned a single one dollar investment into over $3.5 million.

But can I invest like Warren Buffett?

Warren Buffett’s investment philosophy is centred on finding undervalued companies with strong competitive advantages and holding onto them for the long term. He looks for companies with steady and predictable earnings, strong balance sheets, and management teams that align with the interests of shareholders.

In addition, the legendary investors is known for being patient and disciplined in his approach to investing. Buffett is willing to wait for the right opportunities and is not swayed by market fluctuations like we’re experiencing today or short-term trends.

He famously quipped:

I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

Buffett also considers intangible factors when making investments. He looks for companies with strong brands and a track record of ethical behaviour. The Oracle of Omaha has a long-term horizon and believes that investing in companies with strong values and a commitment to their stakeholders will ultimately lead to better financial returns.

Overall, Warren Buffett’s investment style can be summarised as a combination of value investing, long-term thinking, and a focus on companies with strong fundamentals and good management.

Now could be the time to put this into practice with ASX shares.

The post How I can buy ASX shares like Warren Buffett in 2023 appeared first on The Motley Fool Australia.

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• Fortescue share price bulls vs bears: Which will prevail in 2023?
• Buy these cheap ASX dividend shares: Goldman Sachs
• The Vanguard Australian Shares Index ETF (VAS) sank 9% in 2022. What’s the outlook for 2023?
• My best ASX 200 dividend shares for 2023
• What caused such wild swings in the Core Lithium share price in 2022?

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 Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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 Fortescue Metals Group Limited (ASX: FMG) share price went up and down like a rollercoaster last year. Will the bulls or the bears win in 2023?

Resource prices are notoriously difficult to predict, which makes it hard to guess how the share prices of ASX mining shares will perform.

At the moment, Fortescue’s earnings are highly linked to the iron ore price.

Mining costs don’t typically change much in the shorter term, so when the iron ore price increases it mostly adds to the company’s net profit after tax (NPAT), aside from paying more to the government.

But, the opposite can be said when the iron ore price goes down, which largely wipes off the company’s net profit.

Therefore, the direction of the iron ore price from here could have a big impact on things.

Which way will things go this year for the Fortescue share price?

Adrian Prendergast, senior mining and energy analyst from Morgans, suggests that while a Chinese growth recovery can be a positive for the demand for steel and iron, the ASX share market has already moved to price in the recovery before it has unfolded.

While he said it’s encouraging that the iron ore price is staying above US$100 per tonne, the Morgans rating is reduce on Fortescue as it trades to a premium to the price target – that’s where the broker thinks the Fortescue share price will be in 12 months.

But, the broker Citi has suggested that the iron ore price could rise to as high as US$150 per tonne by June, according to reporting by the Australian Financial Review. The suggestion is that the relaxation of COVID restrictions is expected to mean higher industrial output by China and that iron ore could do well if “China rolls out meaningful in the next three [to] six months”. The AFR reported that Citi wrote:

Policymakers appear determined to support debt-trapped property developers. This reduces the downside risk for iron ore.

The Fortescue share price has climbed more than 20% over the past six months, with the iron ore price at around US$118 per tonne, according to Commsec.

According to Commsec, the broker Goldman Sachs has a sell rating on the iron ore ASX share, with a target price of just $13.80.

Of the 18 analyst calls that Commsec is currently covering, 12 of them are sells and six are holds. So, predominately negative.

Foolish takeaway

While I believe in the long-term future of Fortescue shares, particularly the green energy plans of Fortescue Future Industries (FFI), I think that the Fortescue share price can only climb considerably higher from here (with the Fortescue share price being $21) if the iron ore price keeps going up.

I’m personally waiting for the share price to drop below $17 before considering buying more shares for a good margin of safety. It’s already a sizeable part of my portfolio.

The post Fortescue share price bulls vs bears: Which will prevail in 2023? appeared first on The Motley Fool Australia.

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More reading

• My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023
• 3 defining moments for Fortescue shares in 2022
• 2 ASX 200 shares I’m never selling
• Iron ore price in 2023: Bull vs. bear
• Better buy for 2023: BHP vs. Fortescue shares

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has positions in Fortescue Metals 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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If you’re looking for some cheap dividend shares, then you may want to check out the two shares listed below that Goldman Sachs rates as buys.

Here’s why the broker thinks income investors should be buying their shares:

Adairs Ltd (ASX: ADH)

Goldman Sachs believes this leading furniture and homewares retailer is a dividend share to buy right now. 

This is based on its belief that the company’s core business is more resilient than the market realises. In light of this, the broker feels that its shares have been oversold and are trading at an unjustified discount to other retail shares.

And while this share price weakness has been disappointing, it has made the potential dividend yields on offer significantly more attractive.

For example, Goldman Sachs is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.40, this will mean yields of 7.1% and 8.3%, respectively.

Goldman currently has a buy rating and $2.65 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

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More reading

• Here’s how I’ll be investing my money in ASX shares in 2023
• 23 ASX shares to buy in 2023 – brokers
• How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023
• 3 ASX shares under $5 with 7%+ dividend yields
• 2 ASX dividend shares to buy right now: Goldman Sachs

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. 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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