If you’re anything like me, your back pocket will be feeling a little lighter after yesterday’s festivities. Fortunately, I have a way to lessen the load a little next year without breaking the bank. If my New Year’s resolution was to build a passive income, but I only had $75 a month to spare, here’s how I would work to achieve it with ASX dividend shares.

Key considerations

Consistency is key when it comes to building an income stream. Just like most of us receive an income by attending jobs most days, an investor building a passive income should turn up for their investments.

That might mean setting a monthly reminder to invest a set amount or creating an automatic transfer into an investing account.

Speaking of investing accounts, if I was only adding $75 a month to my portfolio, I would be extra cautious of associated fees so to make the most of my money. Thus, I would shop around to find the best brokerage for my needs.

Finding ASX dividend shares to invest in

With those simple tasks ticked off my to-do list, I would turn my attention to finding ASX dividend shares to invest in.

Buying dividend shares is generally the same as buying any other stock. I would still consider a company’s growth prospects, its competitive advantages and disadvantages, and its balance sheet to assess its strengths and weaknesses.

However, I would likely pay closer attention to an ASX dividend shares’ profits, and where those profits are coming from. The ideal dividend stock would have consistent notable cash flow and a good debt position, in my opinion, giving them a strong base from which to pay dividends.

I would also consider a company’s dividend history. A green flag might be one that has previously prioritised payments to shareholders during hard times. Though, whether that was a smart financial move might also need to be analysed.

Finally, I would look at an ASX share’s dividend yield. That measures the amount a company pays out compared to its share price.

How to manage risks with ASX dividend shares

One might think investing in a company with a massive dividend yield is the best use of $75 each month. However, I always prefer sustainable yields over high ones.

Such sustainability is probably particularly important if I were investing just $75 a month, as my risk tolerance would likely be modest.

Speaking of risks, I would also aim to build a diverse portfolio, thereby reducing some of the risks investing can bring.

Though, it’s important to note no investment is guaranteed to provide either returns, dividends, or even downside protection, no matter how considered it is.

Looking to the future

Investing $75 a month likely won’t build a million-dollar a year passive income by next Christmas.

Indeed, that monthly contribution would equal a $900 annual investment – which would be capable of paying out $45 a year on a 5% dividend yield.

But I believe $75 a month is still a good place to start. The market has historically always gone up. Therefore, building a portfolio over time is, in my opinion, far better than not building one at all.

The post How I’d target passive income by investing $75 a month in ASX dividend shares appeared first on The Motley Fool Australia.

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

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

More reading

• I’d aim for a $1 million by buying just a handful of ASX shares
• I’m listening to Warren Buffett and buying cheap ASX shares
• Will the BHP dividend in 2023 be bigger than last year?
• 5 ASX lithium stocks to buy in 2023: brokers
• Here’s my verdict on the CBA share price 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.

from The Motley Fool Australia https://ift.tt/A3FdvmJ

One of the world’s most famous investors is Warren Buffett.

The Oracle of Omaha has earned his legendary reputation after generating consistently strong returns for Berkshire Hathaway over multiples decades.

For example, according to Buffett’s most recent annual letter, Berkshire Hathaway’s market value per share has increased by an average of 20.1% per annum from 1965 to 2021. This is almost double the return of the S&P 500 index, including dividends, which has returned an average of 10.5% per annum over the same period.

Impressively, this means that Berkshire Hathaway has returned a whopping 3,641,613% over the 56 years. This would have turned a single dollar investment into over $3.5 million today.

In light of this, when Buffett speaks, it certainly can pay (almost literally) to listen.

Buy quality cheap ASX shares

Buffett is well known to take advantage of the type of market volatility we have experienced this year. He famously quipped:

Be fearful when others are greedy and be greedy when others are fearful.

The good news is that because of inflation and recession fears, there are a good number of cheap-looking shares on the ASX.

However, Buffett doesn’t buy shares just because they look cheap, he buys them when he feels they are trading at a discount to their underlying value.

This means don’t just buy a share because it has dropped 80% this year and you think it will rebound. There could be a reason why that decline has happened and there could be more to come. You could ultimately end up trying to catch a falling knife.

Instead, investors should look for ASX shares that have been sold off but still have strong business models and equally strong outlooks. Buffett explained in his 2014 letter:

[T]hough marginal businesses purchased at cheap prices may be attractive as short-term investments, they are the wrong foundation on which to build a large and enduring enterprise. Selecting a marriage partner clearly requires more demanding criteria than does dating.

This statement echoes something Buffett said in his 1994 letter that could be particularly apt for investors looking for cheap ASX shares. He said:

In my early days as a manager I, too, dated a few toads. They were cheap dates – I’ve never been much of a sport – but my results matched those of acquirers who courted higher-priced toads.  I kissed and they croaked. After several failures of this type, I finally remembered some useful advice I once got from a golf pro (who, like all pros who have had anything to do with my game, wishes to remain anonymous).  Said the pro:  “Practice doesn’t make perfect; practice makes permanent.”  And thereafter I revised my strategy and tried to buy good businesses at fair prices rather than fair businesses at good prices.

The post I’m listening to Warren Buffett and buying cheap ASX shares 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

• A recession could be coming in 2023. Here’s Warren Buffett’s investing advice
• Is it safe to invest in ASX shares now? Take advice from Warren Buffett
• Almost ready to retire? I’d follow Warren Buffett’s tips to enjoy a growing passive income from ASX dividend shares
• One Warren Buffett-style stock I’m ‘never’ selling
• I’d aim for a million by buying just a few 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 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/YDZsSex

The BHP Group Ltd (ASX: BHP) share price has seen plenty of volatility during 2023. But, will the company’s dividend payout be volatile as well?

Shares in the ASX 200 diversified miner have climbed around 9% this year, despite the craziness that has hit the broader ASX share market amid higher interest rates and strong inflation.

Profits and dividends don’t typically change as much or as rapidly as share prices do. It can also take some time for economic effects to flow through.

BHP intends to pay at least 50% of its net profit each year to shareholders, so positive or negative impacts on profit will affect the BHP dividend.

Dividend expectations

Commsec projections suggest that BHP could generate A$4.39 of earnings per share (EPS) and then pay an annual dividend per share of A$3.16.

In FY22, it paid total cash dividends of US$3.25 per share, which was a dividend payout ratio of 77%. In Australian dollar terms, it paid A$4.63 per share, according to the ASX.

What this suggests is that the BHP annual dividend could be cut by around 32% in FY23.

What’s going on with BHP shares?

BHP has a number of operating commodities, including iron ore, copper, nickel and coal.

The price of each commodity moves up and down, but what happens with iron ore is particularly important because, over the last few years, it has been that division that has generated the lion’s share of the earnings before interest and tax (EBIT).

In the first quarter of FY23, iron ore production increased 3% year over year to 65.1 mt.

However, the problem is that some commodities had been seeing deteriorating prices in the first half of FY23.

But, there is a chance that estimates could be revised higher if the current iron ore price is maintained or even increases over the rest of FY23. According to Commsec, the iron ore futures price was US$110 per tonne on 23 December 2022.

Another factor that could influence the BHP dividend in FY23 is the company’s acquisition of OZ Minerals Limited (ASX: OZL). This could boost the company’s copper earnings, but it also comes at an enterprise value of $9.6 billion, which will be funded by BHP’s balance sheet, with both cash and debt.

It will be interesting to see what BHP’s dividend payout ratio is for FY23 after using A$9.6 billion of its financial capacity.

However, BHP will no doubt be hoping that the expected synergies can boost future profits and dividends.

The post Will the BHP dividend in 2023 be bigger than last year? 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

• Yields of up to 7%… 3 ASX dividend shares I’d buy to hold for 10 years
• 2 reasons to buy BHP shares before 2023 (and 2 reasons to sell)
• BHP share price higher on OZ Minerals $9.6b takeover agreement
• BHP shares ‘look expensive’: broker
• Could copper become ‘the lithium’ of 2023?

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

The last 12 months have been positive for the lithium industry, despite a bit of a hiccup late in the year. During this time, a number of ASX lithium stocks have risen strongly, generating wonderful returns for investors in a tough share market.

Will 2023 be just as good or even better? While that is impossible to say, brokers certainly believe there’s potential for this based on their recommendations summarised below.

Here are five ASX lithium stocks that have recently been rated as buys and tipped to climb meaningfully higher:

Allkem Ltd (ASX: AKE)

The first ASX lithium share to look at is Allkem. It is a speciality lithium chemicals company with a global portfolio of diverse and high-quality lithium operations. From these operations, Allkem is aiming to grow its production in a manner that allows it to command a 10% share of global lithium demand. A recent note out of Goldman Sachs reveals that its analysts have a buy rating and $15.20 price target on its shares.

Core Lithium Ltd (ASX: CXO)

Core Lithium is the lithium developer behind the Finniss Lithium Project in the Northern Territory. It is aiming to commence production in 2023, which means it shouldn’t be long until the company is generating free cash flow. Macquarie expects the company to be printing cash in both FY 2024 and FY 2025. As a result, the broker has put an outperform rating and $1.30 price target on its shares.

Liontown Resources Limited (ASX: LTR)

Another ASX lithium stock that isn’t too far from being a producer is Liontown Resources. It is the owner of two promising projects – the 100%-owned Kathleen Valley and Buldania projects in Western Australia. The former recently received approval for a 4Mtpa operation, which will supply tier-1 offtake customers including LG Energy Solution, Tesla, and Ford. Bell Potter is a fan and currently has a speculative buy rating and $2.87 price target on Liontown’s shares.

Mineral Resources Limited (ASX: MIN)

Morgans is a big fan of this mining and mining services company due largely to its exposure to lithium. In addition, the broker highlights that Mineral Resources has transformed from being primarily leveraged to high-cost/short-life iron ore operations to low-cost/long-life iron ore and lithium assets. It currently has an add rating and $94.00 price target on its shares.

Pilbara Minerals Ltd (ASX: PLS)

A final ASX lithium share that has been tipped as a buy recently is Pilbara Minerals. It is the owner of the Pilgangoora Project, which is one of the largest hard rock lithium deposits in the world and considered strategically important within the global lithium supply chain. Macquarie is a big fan of Pilbara Minerals and has an outperform rating and $7.50 price target on its shares.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy for Christmas
• Should I buy Allkem shares this Christmas?
• Is Core Lithium the next Pilbara Minerals?

Motley Fool contributor James Mickleboro has positions in Allkem. 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/FCwoIQ0

The Commonwealth Bank of Australia (ASX: CBA) share price is up a mighty 20% from its 52-week low in June. Many investors might now be wondering whether the largest Aussie bank is still worth investing in following the recent resurgence.

Could the 111-year-old banking giant still have some youthful exuberance left in it? More importantly, does the potential value creation stack up against the current valuation?

Here are my thoughts.

The good, the bad, and the ugly for the CBA share price

As with most investments, the story isn’t exactly black and white for the CBA share price. There are solid reasons to like this banking titan of Australia. However, there are also valid grounds for not being a fan of the $177 billion financial facilitator.

Good side on display

The appealing aspect of CBA is its firm financial positioning compared to the other big four constituents. Based on the latest data, CBA leads the pack in terms of capital buffers, meaning the bank should be more resilient during difficult times.

Keeping it simple, the data points that are worth noting include:

• Common equity tier 1 (CET1) ratio of 11.5%
• Net stable funding ratio (NSFR) of 130%

Another enticing characteristic of CBA is its net interest margin (NIM). This is the difference between the interest paid for deposits and the interest received on loans. Basically, this is the key revenue source for banks — so the bigger the NIM, the better.

At last check, CBA held a NIM of 1.9%, beating out its competition. The next closest is Westpac Banking Corp (ASX: WBC) with a NIM of 1.85%.

Not so good

Where banks get their funding for loans can make a big impact on profitability. Money directly from customer deposits is usually the cheapest form of funding. That’s why investors usually like a high deposit funding rate.

Yet, CBA has the lowest deposit funding rate of the big four at 75%. Given CBA’s best-in-class NIM, I’m guessing the bank is making use of debt agreed upon at a low-interest rate from some time ago. My concern for the CBA share price is whether its lower deposit funding rate could hurt earnings in the future.

The ugly side of the CBA share price

Unfortunately, there is an ugly side to the CBA share price… At a price-to-earnings (P/E) ratio of around 19 times, the company is certainly not ‘cheap’. For context, the industry average hovers around 10 times earnings.

The premium would possibly be justified if CBA profits were growing at a much faster pace than its peers, but they’re not. In FY22, the bank’s profits grew by approximately 9% — faster than Westpac’s, but slower than Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Would I buy CBA shares right now?

Personally, I believe there are more attractive investment prospects elsewhere in the market right now. I still hold a position in CBA due to its exceptional brand and long-term shareholder returns.

However, at the closing price of nearly $105 on Friday afternoon, it’s not a buy for my portfolio for the time being.

The post Here’s my verdict on the CBA share price right 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 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
• 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell)
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
• Is the CBA share price heading higher or lower from here?

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia. 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 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/qKiAko2

If you’re looking for a passive income boost from dividend shares, then you may want to look at the two listed below.

Here’s why analysts at Morgans rates these ASX 200 dividend shares highly:

Santos Ltd (ASX: STO)

The first ASX 200 dividend share that could be a buy is Santos.

It is one of the region’s largest energy producers and, thanks to its recent merger with Oil Search, the owner of a collection of high quality operations aiming to deliver production of 103-106 million barrels of oil equivalent (mmboe) this calendar year.

The team at Morgans is positive on the company due to its growth prospects and diversified earnings base. The broker commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

In respect to dividends, Morgans is expecting dividends per share of 23 cents in FY 2022 and 24.4 cents in FY 2023. Based on the current Santos share price of $7.20, this will mean yields of 3.2% and 3.4%, respectively.

Morgans also sees plenty of upside for its shares. It has an add rating and $9.00 price target on them.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that could be at top option for income investors is this conglomerate.

Wesfarmers is the company behind a range of businesses such as Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Morgans thinks Wesfarmers could be a good option in the current environment. In fact, its analysts are optimistic the company’s retail operations will perform relatively positively due to its value offering. The broker thinks “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

As for dividends, the broker is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2023. Based on the current Wesfarmers share price of $46.06, this will mean yields of 4% and 4.1%, respectively.

Morgans has an add rating and $55.60 price target on its shares.

The post Seeking passive income in 2023? These ASX 200 dividend shares could help – analysts appeared first on The Motley Fool Australia.

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

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

More reading

• What can ASX 200 investors learn from Warren Buffett’s big moves in 2022?
• 3 reasons to buy Wesfarmers shares before 2023
• 10 ASX shares I think are buys for 2023
• Stock market correction: How I’m using this opportunity to build wealth with ASX shares
• Don’t try to predict where ASX shares go in 2023, do this instead: Scott Phillips

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 positions in and has recommended Wesfarmers. 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/3ch6Xfq

If you’d like to make some investments in 2023 but aren’t sure which shares to buy, you could look at exchange traded funds (ETFs).

But which ETFs could be good options for investors next year?

Two high quality options that could be among the best on the market are listed below. Here’s what you need to know about them:

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

The Vanguard All-World ex-U.S. Shares Index ETF could be a top option for investors that already have exposure to US markets.

That’s because the VEU ETF gives you access to approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States.

The fund manager, Vanguard, highlights that this means Australian investors can expand their portfolio to include many sectors not well represented in Australia.

Among the ETF’s holdings you’ll find a diverse group of shares such as Royal Bank of Canada, HSBC Holdings, Samsung, LVMH Moet Hennessy Louis Vuitton, Taiwan Semiconductor, Tencent, and Astra Zeneca.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

If you don’t already have exposure to the United States, then the Vanguard Australian US Total Market Shares Index ETF could be a good option.

This low-cost and diversified ETF provides investors with exposure to some of the largest companies listed in the United States. Vanguard highlights that this allows investors to benefit from the long-term growth potential of US listed companies.

Many of the companies included in the fund need no introduction. This includes the likes of Apple, Amazon, Boeing, Costco, JP Morgan, McDonalds, Microsoft, Starbucks, and Walmart.

The post Are these the best ETFs for ASX investors to buy 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

• 3 fantastic ETFs for ASX investors to buy for 2023
• 2 ASX ETFs trading ex-dividend next week
• Here are 2 fantastic ETFs for ASX investors in 2023
• These ETFs allow ASX investors to buy thousands of global 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. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity 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/A15tWJ7

With a new year on the horizon, what better time to refresh a portfolio.

But which ASX 200 shares would be worthy of a spot in your portfolio in 2023? Three that analysts at Bell Potter rate highly are listed below.

Here’s what they are saying about these ASX 200 shares:

CSL Limited (ASX: CSL)

The first ASX 200 share that Bell Potter rates highly is CSL. Its analysts like the biotherapeutics company due to growing plasma volumes, new product launches, and its recent acquisition. It notes that the Vifor Pharma acquisition has added global leadership in renal disease and iron deficiency. The broker commented:

The recently completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency. The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.

Goodman Group (ASX: GMG)

Another ASX share that Bell Potter rates highly is this integrated industrial property company. Its analysts are expecting Goodman’s shares to be strong performers over the coming years thanks to robust demand for industrial property due partly to the rise of online shopping. It commented:

One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.

Sonic Healthcare Limited (ASX: SHL)

Finally, Bell Potter thinks this medical diagnostic services provider is an ASX 200 share to buy. The broker believes Sonic is well-placed to benefit from demand for pathology services and its ongoing international expansion. It commented:

The world’s third largest pathology provider with significant operations in the USA, United Kingdom, Germany, Switzerland, Belgium, Australia and New Zealand. Against the backdrop of continuing growth in the demand for pathology services over the longer term, the group has further international expansion opportunities in both existing and new geographical markets.

The post Bell Potter names 3 stellar ASX 200 shares to own 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

• 3 ASX shares I’d buy after each fell by over 30% this year
• Should I buy CSL shares before 2023?
• Looking to buy ASX shares for your kids this Christmas? I think these are great options
• Here’s how I’d invest $10,000 in ASX shares for 2023
• Down 4% in 3 days, should you buy the dip on CSL shares?

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended Sonic Healthcare. 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/j8AMYEN

It’s been a good year for those invested in Coronado Global Resources Inc (ASX: CRN). The coal miner has defied expectations this year – its shares have gained 59% since their first close of 2022, it was admitted to the S&P/ASX 200 Index (ASX: XJO), and it resumed paying dividends with a bang.

In fact, a $5,000 investment in Coronado Global Resources on the final session of 2021 would have paid out more than $2,400 of passive income in 2022.

Let’s take a closer look at the coal share that turned into a dividend machine this year.

The ASX 200 share that gave over 110% in 2022

If you bought shares in Coronado Global Resources in late 2021, you’ve likely realised some major returns in 2022.

The stock hit a low of $1.24 on 31 December 2021. At that point in time, a $5,000 investment would have bought 4,032 shares in the coal miner.

Today, the coal miner is part of the ASX 200 and its share price is trading at $2.05. That means the same parcel of shares would be worth $8,265.60 today – 65% more than when they finished 2021.

And that’s before one considers the dividends paid out by the stock in that time. Here’s a breakdown of the payouts Coronado Global Resources offered shareholders in 2022:

Coronado Global Resources’ 2022 dividends	Month paid	Value (AUD)
Ordinary dividend	April	12.19 cents
Special dividend	June	8.25 cents
Special dividend	June	8.35 cents
Ordinary dividend	September	10.86 cents
Special dividend	December	20.2 cents
Total		59.75 cents

As the above chart shows, each Coronado Global Resources share brought an Aussie investor nearly 60 cents of passive income in 2022.

That means our figurative $5,000 investment paid out a total of around $2,409.12 in dividends over that time.

Combining that with the ASX 200 coal miner’s share price gains, a $5,000 investment would have returned around $5,675 last year – marking a 113.5% return in just 12 months.

And that’s despite the broader market’s suffering. The ASX 200 has fallen 6% so far this year.

All that is to say, market watchers needn’t lose all hope in tough times. There’s nearly always a nugget of gold (or, in this case, coal) to be found on the market. Though, past performance isn’t indicative of future performance.

The post The ASX 200 share than turned a $5,000 investment into $2,400 of passive income 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

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Stock market correction: A once-in-a-decade chance to get rich?
• 2023 ready: Here are my non-negotiables for investing in ASX shares next year
• 5 things to watch on the ASX 200 on Friday

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/q2wODBf