With the ASX 200 index falling 5.5% over the last 12 months, it’s fair to say that 2022 was a difficult year for investors. The good news is that this has left many ASX shares trading at very attractive levels in 2023.

Ahead of the market reopening on Tuesday, I thought I would look at which ASX shares are being tipped as buys for the year ahead.

Listed below are 23 ASX shares that have been named as buys by brokers for 2023:

Accent Group Ltd (ASX: AX1)

Goldman Sachs has a buy rating and $2.20 price target on this footwear and fashion retailer’s shares. It likes the company due to its exposure to younger consumers.

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer could be an ASX share to buy according to Goldman Sachs. The broker believes its business model is more resilient than the market appreciates. The broker has a buy rating and $2.85 price target on its shares.

Allkem Ltd (ASX: AKE)

Goldman Sachs is also a fan of this lithium miner and has a buy rating and $15.20 price target on its shares. It points out that Allkem has the “strongest 5-yr lithium production growth [and trades] at a discount to peers.”

Arafura Rare Earths Ltd (ASX: ARU)

Bell Potter has a speculative buy rating and 64 cents price target on this rare earths developer’s shares. It notes that the company’s Nolans project is “anticipated to feed potentially 8% of global supply directly into the permanent magnet market servicing expansion of electric vehicles and wind turbines.”

Aristocrat Leisure Limited (ASX: ALL)

Citi has a buy rating and $41.20 price target on this gaming technology company’s shares. Its analysts see the “land-based business as well positioned and remain optimistic on the RMG opportunity.”

BHP Group Ltd (ASX: BHP)

Macquarie is positive on this mining giant and has an outperform rating and $50.00 price target on its shares. The broker expects the Big Australian to benefit greatly from favourable commodity prices.

CSL Limited (ASX: CSL)

Another ASX share to consider is CSL. Analysts at Citi have a buy rating and $340.00 price target on the biotherapeutics giant’s shares. It is forecasting earnings per share growth greater than 20% in both FY 2023 and FY 2024.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Morgans has an add rating and $90.00 price target on this pizza chain operator’s shares. The broker believes that “now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.”

Goodman Group (ASX: GMG)

Citi has a buy rating and $23.50 price target on this industrial property company’s shares. “[We] continue to favour industrial exposure, and remain attracted to GMG’s best-in-class balance sheet. We continue to see potential for upside to guidance.”

IDP Education Ltd (ASX: IEL)

The team at Morgan Stanley has an overweight rating and $36.80 price target on this language testing and student placement company’s shares. It believes China’s reopening from COVID-19 could be a big boost to its business.

Life360 Inc (ASX: 360)

Analysts at Bell Potter are bullish on this location technology company and have a buy rating and $9.00 price target on its shares. It expects that “recent price rises in the core business [are] likely to drive strong top line growth” in FY 2023.

Mineral Resources Ltd (ASX: MIN)

Morgans has an add rating and $94.00 price target on this mining and mining services company’s shares. It is a fan due to its transformation “from being primarily leveraged to high-cost/short-life iron ore operations to low-cost/long-life iron ore and lithium assets.”

National Australia Bank Ltd (ASX: NAB)

Analysts at Goldman Sachs are positive on this big four bank. The broker has a buy rating and $35.41 price target on its shares. Goldman’s analysts “see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic.”

Newcrest Mining Ltd (ASX: NCM)

Morgan Stanley is bullish on this gold miner and has an overweight rating and $23.40 price target on its shares. It feels the current environment is positive for the gold price.

Novonix Ltd (ASX: NVX)

Morgans has a speculative buy rating and $3.11 price target on this battery technology company’s shares. It notes that “NVX offers ASX investors an opportunity to get direct exposure to the North American battery market.”

Nufarm Ltd (ASX: NUF)

Bell Potter is positive on this ASX share. It currently has a buy rating and $7.50 price target on the agricultural chemicals company’s shares. It expects a strong result in FY 2023 thanks to “crop protection demand in the US and Europe and a growing contribution from new revenue streams in Omega-3.”

Pilbara Minerals Ltd (ASX: PLS)

Morgans currently has an add rating and $4.70 price target on this lithium miner’s shares. It believes recent share price weakness has created a buying opportunity.

Qantas Airways Limited (ASX: QAN)

This airline operator could be a buy according to Goldman Sachs. Its analysts have a conviction buy rating and $8.20 price target on its shares. The broker said: “Against the backdrop of substantially improved earnings capacity, we believe the stock is not even priced for a generic recovery.”

Telstra Group Ltd (ASX: TLS)

Morgan Stanley has an overweight rating and $4.75 price target on this telco giant’s shares. It believes the potential offloading of infrastructure assets could unlock value for shareholders.

Webjet Limited (ASX: WEB)

Analysts at Morgans are positive on this online travel agent and have an add rating and $7.20 price target on its shares. It feels that “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.”

Westpac Banking Corp (ASX: WBC)

Goldman Sachs is very bullish on Australia’s oldest bank. It has a conviction buy rating and $27.60 price target on its shares. The broker believes “double digit total shareholder returns remains achievable over the next three years.”

Whitehaven Coal Ltd (ASX: WHC)

Strong coal prices make this an ASX share to buy according to Macquarie. It has an outperform rating and $12.50 price target on coal miner’s shares.

Xero Limited (ASX: XRO)

Finally, Citi sees a lot of value in this cloud accounting platform provider’s shares and has a buy rating and $97.90 price target on them. It expects “digitisation to be a bigger driver than macro for online accounting.”

The post 23 ASX shares to buy in 2023 – brokers appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Bought $1,000 of Qantas shares 10 years ago? Here’s how much dividend income you’ve received
• How I’d use a stock market crash to boost my passive income
• 3 pivotal moments you might have missed for BHP shares in 2022
• How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income

Motley Fool contributor James Mickleboro has positions in Allkem, CSL, Domino’s Pizza Enterprises, Life360, Westpac Banking, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, CSL, Idp Education, Life360, and Xero. The Motley Fool Australia has positions in and has recommended Adairs, Telstra Group, and Xero. The Motley Fool Australia has recommended Accent Group, Domino’s Pizza Enterprises, and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The Commonwealth Bank of Australia (ASX: CBA) share price hasn’t done that well compared to some other ASX bank shares.

Looking at the returns, in 2022 the CBA share price has gone up 0.40%.

Let’s put this into context. The S&P/ASX 200 Index (ASX: XJO) dropped around 7% over the year.

It has certainly done better than the ASX 200. The bank has also outperformed some of the other bank shares.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has dropped around 14%.

But, the Westpac Banking Corp (ASX: WBC) share price has risen by 8% and the National Australia Bank Ltd (ASX: NAB) share price has gone up 2.2%.

It has been a mixed bag for other ASX bank shares as well. The Bank of Queensland Limited (ASX: BOQ) share price has fallen more than 16%, the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has climbed around 6% and the MyState Limited (ASX: MYS) share price has fallen 22%.

2022 was a mixed year

In the first half of the 2022 calendar year, CBA was having to deal with sinking profit margins. The bank reported that in FY22, its net interest margin (NIM) had fallen to 1.9%, after an 18 basis point drop. This was due to a “large increase in low yielding liquid assets and lower home loan margins” amid the record low interest rate.

Despite that, the bank was able to report an 11% increase in cash net profit after tax (NPAT) to $9.6 billion thanks to “operational performance and volume growth in core businesses”.

Impressively, the business reported 7.4% growth of home lending and 13.6% growth of business lending.

The profit growth enabled a 10% increase of the annual dividend to $3.85 per CBA share.

Rising interest rates

In the bank’s outlook statement in the FY22 result, it said that Australian households and businesses are in a “strong position given low unemployment, low underemployment, and strong non-mining investment”.

While it warned of the negative impact of higher interest rates on consumer confidence, the business told investors that it expected its lending profit margins to increase in the rising interest rate environment.

Indeed, in the FY23 first quarter, the largest ASX bank share was able to tell investors that its income rose 9%, which was helped by higher margins and volume growth. However, cash net profit only grew by 2%.

In that quarter, CBA saw home lending grow by 6.3%, while business lending jumped 12.6%.

How could 2023 go?

I think that CBA is going to report a sizeable increase in profitability in 2023. The rising interest rates could be a very helpful boost to profit.

CBA noted in its FY23 first quarter update that “portfolio credit quality remained sound, with favourable trends in key credit quality indicators”.

I believe that CBA shares will be able to grow its dividend again for investors in 2023.

Based on (independent) numbers on Commsec, CBA shares could offer a FY23 grossed-up dividend yield of 6.2%.

However, I also think it’s quite possible we could see an increase in the loan arrears. If some borrowers can’t absorb the higher interest rates, then this could lead to worsening arrears and then higher bad debts.

While I think the CBA profit will improve in FY23, I’m not sure whether the CBA share price will show as much improvement from here.

The post The CBA share price was nowhere near the best performing ASX bank share in 2022. What now? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The 5 biggest threats to the stock market in 2023
• How big will the CBA dividend be in 2023?
• Here’s my verdict on the CBA share price right now
• Yields of up to 7%… 3 ASX dividend shares I’d buy to hold for 10 years
• Better buy for 2023: CBA vs. NAB shares

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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/5Id1UyH

The Qantas Airways Limited (ASX: QAN) share price has had a turbulent existence on the ASX over the last decade.

The national carrier was hit hard by the global financial crisis, only managing to regain its footing a few years before the onset of the COVID-19 pandemic.

Still, long-term investors have likely been happy with their holding. The Qantas share price has taken off over the last decade, lifting a whopping 287% since 28 December 2012.

Back then, $1,000 likely would have seen an investor buy 632 shares in the airline, paying $1.58 apiece.

Today, that parcel would command a value of $3,861.52. The Qantas share price closed Friday’s session at $6.11.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted around 55% over the last 10 years.

Less fortuitous have been dividend-focused Qantas investors. Here’s how much passive income a long-term shareholder has likely received from the airline share.

How much have Qantas shares paid in dividends in 10 years?

Here are all the dividends Qantas has offered since December 2012:

As the above chart alludes, Qantas didn’t pay dividends between 2009 and 2016. It then halted its offerings amid the emergence of the pandemic.

Meanwhile, the company hasn’t operated in the green since the financial year 2020, wherein its underlying profits tumbled 91%.

Over the last decade, Qantas shares have paid out 63 cents per share to investors.

That means our figurative $1,000 investment would have yielded $398.16 in dividend income over its life. That’s on top of a significant capital gain.

Long-term investors also likely benefited from a capital return – worth $505 million, equalling 23 cents per share – undergone by Qantas in 2015, as well as numerous on-market share buybacks conducted over the years.

And there’s apparently good news on Qantas’ horizon. The airline expects to return to profit in the first half of financial year 2023.

The post Bought $1,000 of Qantas shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• Brokers name 3 ASX shares to buy next year
• 3 ASX shares near 52-week highs I think can climb higher
• Why is the Flight Centre share price in the red today?
• Top brokers name 3 ASX shares to buy next week

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.

from The Motley Fool Australia https://ift.tt/8HS1jPg

Stock market crashes are events that most investors don’t find pleasant. There’s a part of human nature that simply abhors seeing the value of one’s investments drop substantially outside the investors’ control. But if there is a stock market crash this year, I’ll be champing at the bit to boost my passive income.

Why? Well, stock market crashes typically send the value of all shares, not just weak ones, down the gurgler. Just take a look at what happened to the S&P/ASX 200 Index (ASX: XJO) during the COVID crash of 2020. Or the global financial crisis of 2008.

But this can be a massive buying opportunity, especially for dividend investors.

Stock market crashes are dividend blessings in disguise

See, the dividend yield an investor can expect is a function of two different inputs. The first is how much in dividends per share a company pays out. The second is the share price. Put simply, the lower a company’s share price is, the higher its dividend yield will be.

There are plenty of ASX shares that don’t tend to cut their dividends even in a recession or stock market crash. Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Washington H. Soul Pattinson and Co Ltd (ASX: SOL)… These are all ASX dividend shares that didn’t cut their payouts in 2020 or 2021.

But buying them during the COVID crash of 2020 could have been enormously beneficial to a dividend investor. Let’s look at why.

So in 2019 and 2020, Telstra paid out an annual dividend of 16 cents per share. In early 2020, Telstra shares were trading at $3.90 apiece. A 16 cents per share annual dividend would have given Telstra investors a dividend yield of 4.1% at this share price. But by May 2020, Telstra shares had crashed to around $2.99.

If an investor bought Telstra shares then, they would instead enjoy a dividend yield of 5.35%.

Telstra has since upped its annual dividends to 16.5 cents per share in 2022. That would boost the yield on cost of our investor who bought Telstra shares for $2.99 to 5.52% today.

So this is how a dividend income investor can boost their passive dividend income in a stock market crash. It’s certainly the strategy I’ll be trying to employ if there is a stock market crash in 2023.

The post How I’d use a stock market crash to boost my passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• Brokers say these top ASX dividend shares are buys for 2023
• My 3 largest ASX share positions heading into 2023
• Brokers name 3 ASX shares to buy today
• 2 ASX 200 shares I’m never selling

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

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

It certainly was an eventful and successful year for BHP Group Ltd (ASX: BHP).

The Big Australian’s shares recorded a 10% gain over the 12 months.

But, as you can see below, it certainly wasn’t a smooth ride for the BHP share price.

Here are three pivotal moments impacting BHP shares last year.

BHP scraps UK listing

The first pivotal moment in 2022 was in January when BHP shareholders voted overwhelmingly in favour of its unification.

The BHP board believed that unification was in the best interests of shareholders as it would result in a corporate structure that is simpler and more efficient, reduce duplication, and streamline governance and internal processes.

It also expected the unified structure to improve flexibility for portfolio reshaping to maximise shareholder value over the long-term. This leads us onto pivotal moment two.

Petroleum demerger

Following the unification, BHP decided to push ahead with the demerger of its petroleum business to Woodside Energy Ltd (ASX: WPL).

BHP’s CEO, Mike Henry, explained the rationale for the divestment. He said:

Merging our petroleum business with Woodside creates a large, more resilient company, better able to navigate the energy transition and grow value while doing so. Through the merger we will provide value and choice for BHP shareholders, and unlock synergies in how these assets are managed.

The fact that the BHP share price still outperformed the market despite divesting a large portion of its business demonstrates just how successful its year was.

OZ Minerals acquisition

A final pivotal moment came at the end of the year when the mining giant announced an agreement to acquire OZ Minerals Ltd (ASX: OZL) for $9.6 billion.

While the deal is yet to complete, if it does, BHP’s CEO, Mike Henry, expects it to unlock opportunities that wouldn’t otherwise be possible. He commented:

The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.

Here’s hoping that 2023 will be equally successful for BHP shares and shareholders.

The post 3 pivotal moments you might have missed for BHP shares in 2022 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• What are brokers saying about the BHP share price in 2023?
• The 5 biggest threats to the stock market in 2023
• Iron ore price in 2023: Bull vs. bear
• Better buy for 2023: BHP vs. Fortescue shares

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

from The Motley Fool Australia https://ift.tt/TwaqD2i

The ASX share market has a wide variety of potential investments to choose from – ASX growth shares, ASX mining shares, defensive ASX shares and so on.

If my portfolio disappeared but I had $10,000 to start again, I’d want to invest for a mix of dividends and growth.

I like that the ASX can provide us with a pleasing source of passive income, supplementing our main job earnings.

The compounding potential of capital growth is also strong in my view, particularly over several years.

But, in all of my potential starter investments, I’m looking for profit growth to drive increased value in time.

I’ll start with two ASX growth share ideas I’d add to my portfolio, then outline two ASX dividend shares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is my favourite exchange-traded fund (ETF) on the ASX. The idea is that it provides investors with “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.”

Its portfolio is usually full of some of the most compellingly-valued US shares. At the moment, some of its biggest holdings include Boeing, Biogen, Emerson Electric, Adobe, Zimmer Biomet and Etsy.

I think the investment style of this ETF can lead to good returns, though nothing is guaranteed and past returns are not a guarantee of future returns. Over the past five years, it has returned an average of 14.7% to 30 November 2022.

Airtasker Ltd (ASX: ART)

Airtasker provides a platform for people to advertise that they need help with a particular task, such as furniture assembly, removalists, tradesperson work and so on. Taskers can offer to do the work for the proposed fee.

One of the most attractive things about this ASX share is the incredibly high gross profit margin of over 90%. Almost all of the new revenue can be invested back into the business for more growth with product development, marketing or improving the business in some other way.

In the first quarter of FY23, Airtasker’s organic revenue (excluding the acquired Oneflare) rose by 36% to $8 million. This included UK gross marketplace volume (GMV) going up by 68% year over year to an annualised £4.2 million.

With the business expanding in the UK and US, I think it’s a compelling business to consider for long-term growth.

Adairs Ltd (ASX: ADH)

Adairs is a retailer that sells homewares and furniture through three different brands – Adairs, Mocka and Focus on Furniture.

The ASX share is working on a plan to expand its store network for both Adairs and Focus while upsizing some Adairs store locations (which are more profitable). Plus, the company wants to sell Mocka furniture in-store – at the moment it’s just an online-only brand.

The company’s new national distribution centre will help it with stock efficiencies, as well as costs.

With the Adairs share price down 46% this year, it now looks very cheap in my opinion. According to Commsec, the company is valued at under 8 times FY23’s estimated earnings. It could pay a grossed-up dividend yield of 11.75% in FY23 and 13.5% in FY24.

Metcash Ltd (ASX: MTS)

Metcash may be best known for supplying the IGA supermarkets around Australia, giving it a pleasing source of defensive earnings.

The ASX share’s liquor earnings are also noteworthy. It supplies a large number of independent liquor stores around the country including Cellarbrations, The Bottle-O, IGA Liquor, Thirsty Camel, Big Bargain Bottleshop, Duncans and Porters Liquor.

Finally, it has a hardware division with a number of brands including Mitre 10, Home Timber & Hardware and Total Tools. This division is generating the most profit growth at the moment.

I think the business is demonstrating a pleasing mixture of sales growth, investing for long-term improvement, and net profit after tax (NPAT) growth, which is helping fund higher dividends.

According to Commsec, it’s expected to pay an FY23 grossed-up dividend yield of 7.8%.

The post How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These could be top ETFs for ASX investors to buy in January
• 3 ASX shares under $5 with 7%+ dividend yields
• My 3 largest ASX share positions heading into 2023
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• No savings at 45? I’d use the Warren Buffett method to build retirement wealth

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 Adairs, Adobe, Emerson Electric, and Etsy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker and Biogen and has recommended the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Adobe, Metcash, 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.

from The Motley Fool Australia https://ift.tt/aPAVC0s

Concerns over inflation, rising interest rates, and the cost of living weighed on the share market in 2022. This ultimately led to the benchmark S&P/ASX 200 Index (ASX: XJO) losing 5.5% of its value over the 12 months.

The good news is that not all ASX 200 shares tumbled with the market. Some even managed to deliver incredible returns for investors despite the market volatility.

Five of the best-performing ASX 200 shares in 2022 are listed below. Here’s how they performed:

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was the best performer on the ASX 200 index in 2022 with a stunning 261% gain. Ethical investing went out of the window and investors flooded back into coal miners last year after the price of the black gold surged to record levels and underpinned bumper earnings in the industry. This was driven by Indonesia’s coal export ban and sanctions on Russian supply.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price wasn’t too far behind with an impressive gain of 185%. Once again, this was driven by surging coal prices, which led to bumper profit and dividend growth from this miner. It is worth noting that this return doesn’t include the fully franked dividends of 86 cents per share that New Hope paid over the 12 months. This equates to a 13.5% dividend yield based on its latest share price, bringing the total return to almost 200%.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price was a strong performer in 2022 and rose 74%. Excitement around the Finniss Lithium Project in the Northern Territory was behind this strong gain. This project is due to commence production of the battery making ingredient in 2023, which means Core Lithium should be generating material free cash flow in the not-so-distant future if lithium prices remain strong.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price was on form and charged 62% higher over the last 12 months. This was driven by strong oil prices and the merger with the petroleum assets of BHP Group Ltd (ASX: BHP). The combination of these assets has made Woodside a much stronger company with significant growth opportunities.

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price rounds out the top five on the ASX 200 index with a gain of 60% over the period. Once again, this was driven by sky high coal prices. Prices have been booming so much that Coronado reported a 147% increase in first half revenue and a massive profit of US$561.9 million. The latter compares to a loss of US$96 million in the prior corresponding period. What a difference a year makes!

The post These were the best-performing ASX 200 shares of 2022 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What would it take for the Core Lithium share price to explode in 2023?  
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• The Whitehaven share price skyrocketed 261% this year, what could 2023 look like?
• 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.

from The Motley Fool Australia https://ift.tt/gNApMf4

With a new year very much on the horizon, now could be a good time to consider making some additions to your portfolio.

If you’re interested in exchange traded funds (ETFs), then you may want to take a look at the three highly rated ETFs listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at in 2023 is the BetaShares Global Cybersecurity ETF.

This ETF gives investors access to the leading companies in the growing global cybersecurity sector.

As we have seen this year, cyberattacks are becoming more and more frequent and destructive for businesses. As a result, demand for cybersecurity services is expected to rise strongly in the coming years, which is good news for the companies included in the ETF.

This includes industry leaders such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to consider for 2023 is the VanEck Vectors Morningstar Wide Moat ETF.

This Warren Buffett inspired ETF gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. The MOAT ETF’s portfolio changes constituents periodically but usually includes approximately 50 US based stocks.

At present, its holdings include Amazon, Berkshire Hathaway, Intel, Microsoft, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider next year is the popular Vanguard MSCI Index International Shares ETF.

This ETF gives investors an easy way to diversify a portfolio. That’s because it provides investors with access to around 1,500 of the world’s largest listed companies. As well as diversity, it allows investors to take part in the long term growth potential of international economies.

Among the high quality shares that you’ll be owning a slice of are giants including Amazon, Apple, Nestle, Nvidia, Procter & Gamble, Tesla, and Visa.

The post These could be top ETFs for ASX investors to buy in January appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• My 3 largest ASX share positions heading into 2023
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• No savings at 45? I’d use the Warren Buffett method to build retirement wealth
• 3 quality ETFs for ASX investors to buy next year
• I’d aim for a $1 million by buying just a handful of ASX shares

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 BetaShares Global Cybersecurity ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/pWTE6bk

Although the Core Lithium Ltd (ASX: CXO) share price was on fire in 2022, it could have been so much better.

As you can see below, the lithium developer’s shares finished the year with a 74% gain despite losing almost half their value after peaking at $1.88 in November.

Could the Core Lithium share price explode in 2023?

As covered here recently, Goldman Sachs believes the Core Lithium share price is trading at fair value now.

It recently initiated coverage on the company with a sell rating and $1.00 price target.

However, as part of its initiation, it listed a few items that could make it more positive. So, if these all fall into place, it’s quite possible that Goldman Sachs would adjust its recommendation for the better, which could give the company’s shares a very big boost.

What would make Goldman more positive?

The first thing that Goldman highlights is exploration at the Finniss lithium project. It said:

Expanding the existing resource base could support life extension/capacity increases at Finniss (particularly if relatively shallow), improving the earnings and valuation outlook for CXO.

In addition, while it seems unlikely in the current environment, Goldman concedes that an earlier than anticipated commencement of production and easing inflationary pressures could make it more positive. It explained:

Accelerated construction and commissioning could result in a bring-forward of revenues, lower operating costs or capex. Inflationary pressures could ease, limiting the escalation of operating costs with higher materials, freight, and labour rates, while lower-than-expected raw material prices would also lead to higher margins and earnings. Projects coming in ahead of budget on capex (/avoiding escalations) or at growth projects would also positively impact our valuation. Factors impacting operations and asset performance to the upside could also be positive to earnings and valuation.

Another big one is of course the price of lithium. Goldman is quite bearish on lithium prices. So, if its forecasts prove to be off the mark, it would impact its earnings estimates for the better. It said:

Changes in lithium demand/supply dynamics will impact lithium prices and our earnings, where stronger pricing would positively impact our earnings forecasts (though the development of alternative energy storage technologies could also pose a risk to lithium demand/pricing).

Finally, the broker would become more positive if Core looked at downstream processing. It adds:

The construction of a strategically located mid/downstream processing facility in Darwin could offer upside to earnings forecasts and valuation, while unallocated volume sales could be tolled through third converters to capture higher margins.

All in all, there’s certainly potential for the Core Lithium share price to outperform in 2023. Time will tell if it does.

The post What would it take for the Core Lithium share price to explode in 2023?   appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Core Lithium share price soaring 6% today?
• Why Appen, Core Lithium, Paradigm, and Sayona Mining shares are racing higher
• Why are ASX 200 lithium shares charging higher today?
• Why is the Core Lithium share price being beaten by the benchmark today?
• Forget Core Lithium shares! Experts say these cheap ASX 200 shares could be better buys

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

from The Motley Fool Australia https://ift.tt/tjL1TPC

When ASX investors think of passive income, dividends likely come to mind. Indeed, it may be difficult to think of another form of consistent passive income that can be garnered from shares, without selling them that is. That’s where legendary investor Warren Buffett comes in.

The multi-billionaire company Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) famously doesn’t pay dividends. And yet, it’s provided shareholders with plenty of passive income opportunities.

How, may you ask? Share buybacks.

If I were 40 with just enough savings to support myself in case of emergency, I would aim to invest in companies I believe likely to undergo share buybacks so as to create a passive income stream. Here’s how that could work.

Buffett backs share buybacks over dividends

Buffett told investors in 2004 he believes the best use for a company’s spare cash is often repurchasing its own shares.

By buying back shares, a company increases shareholders’ ownership. That’s because each share represents a portion of a business. Thus, the fewer shares are out there, the more of that business each share represents.

Speaking on the topic, Buffett said:

I think the best use of cash, if you don’t have a good use for it in the business, if the stock is under-priced, is to repurchase it.

He backed up that sentiment in later years when Berkshire Hathaway began to undergo its own share buybacks.

How can buybacks generate passive income?

As share buybacks are a tool to increase shareholders’ ownership over a company, they can allow an investor to incrementally sell their holdings without reducing their own ownership.

Here’s an example.

If I were to own a 10% stake in a company, and that company buys back 5% of its shares, I would suddenly hold 5% more of the business – 10.5% – without forking out more cash.

That means I could offload the extra 5% on the market, thereby creating a passive income, without impacting my position.

Thus, if I were 40 with hardly any savings, I would use Buffett’s wisdom to buy shares in companies I believe are likely to undergo share buybacks so as to receive passive income.

Of course, it’s worth noting that no company can be guaranteed to announce or continue a share buyback.

Many ASX 200 shares turned to buybacks in 2022

A swathe of broader market happenings saw many S&P/ASX 200 Index (ASX: XJO) shares turn to buybacks in 2022.

The largest was likely that undergone by Whitehaven Coal Ltd (ASX: WHC) – which interestingly also posted huge dividends last year.

It bought back 10% of its stock between March and October before committing to buy back another 25% of its outstanding shares over the following 12 months.  

National Australia Bank Ltd (ASX: NAB) also completed a $2.5 billion buyback in March before going again, announcing another of the same magnitude.

Other ASX 200 companies announcing share buybacks in 2022 included Qantas Airways Limited (ASX: QAN) and Santos Ltd (ASX: STO). The former kicked off a $400 million buyback while the latter announced US$700 million worth last year.

The post With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Whitehaven share price skyrocketed 261% this year, what could 2023 look like?
• Why Goldman says the NAB share price will be a winner in 2023
• Brokers name 3 ASX shares to buy next year
• 3 ASX shares near 52-week highs I think can climb higher
• Why is the Flight Centre share price in the red today?

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

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