The Lake Resources N.L. (ASX: LKE) share price has been a poor performer in recent weeks.

This has led to the lithium developer’s shares losing over 20% of their value since this time last month.

Why is the Lake Resources share price under pressure?

There are a couple of reasons for the weakness in the Lake Resources share price this month.

The first is the outlook for lithium prices. There are concerns that prices may have peaked and could be heading materially lower over the next 18 months as supply grows.

For example, Goldman Sachs is predicting the following for lithium carbonate pricing:

• Lithium carbonate
  • 2022 US$59,331
  • 2023 US$53,300
  • 2024 US$11,000
  • 2025 US$11,000

If this forecast proves accurate, then prices could have collapsed by the time Lake Resources is producing lithium from its Kachi project in Argentina.

Short seller attack

Also weighing on the Lake Resources share price could be doubts over the direct lithium extraction (DLE) technology that will be key to the Kachi project’s success.

The team at J Capital believes that the DLE technology the company is looking to use could be “dramatically” underperforming expectations. It also suspects that there could be issues with quality given that no shipments have been announced.

The investment firm commented:

One of the first actions of Lake Resources’ (Lake) new CEO, David Dickson, was to contact Chinese-listed Sunresin (3000487 SZSE) to ask if Lake could explore the use of their direct lithium extraction (DLE) technology. We have confirmed this with multiple sources, including Sunresin. If Lake is reaching out to alternative technology suppliers and going back to the drawing board for its technological solution for DLE, then investors deserve to know about it. Lake should advise investors if Kachi brine will be evaluated by alternative DLE technology partners for the extraction of lithium.

It appears there may also be a quality problem with the lithium concentrate produced at the pilot plant to date. We estimate the first 2,000 liters of lithium concentrate was produced by the end of October and still has not been shipped 30 days later. Lake has not provided an explanation for this delay.

All in all, given the pricing and production uncertainty, it isn’t overly surprising to see the Lake Resources share price struggling right now.

The post Why has the Lake Resources share price crashed 20% in a month? appeared first on The Motley Fool Australia.

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More reading

• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• Here are the 10 most shorted ASX shares
• Here are the 10 most shorted ASX shares
• Why are ASX 200 lithium shares taking a lashing today?
• Lake Resources share price lower amid fresh short seller attack

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

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The BWX Ltd (ASX: BWX) share price has made its long-awaited return to trade this morning.

Unfortunately, it hasn’t been a happy one for the embattled personal care products company’s shares.

In morning trade, the BWX share price is down a massive 48% to a record low of 32.5 cents.

Why is the BWX share price crashing?

Investors have been hitting the sell button today in response to the company’s disastrous business update.

That update revealed that BWX recorded a statutory loss of $335.6 million in FY 2022, fell short of guidance for the year, and downgraded its FY 2023 guidance. The latter is particularly disappointing given that it raised funds on the back of this guidance at the end of June.

But perhaps worst of all was the company admitting that it had been using a deceptive sales practice known as channel stuffing. This involves unnecessarily selling large volumes of products to distributors just before the end of the financial year to inflate sales and earnings figures for the period.

And while the company has overhauled in management team and board room in response to this debacle, that hasn’t stopped the BWX share price from being sold off.

A mountain of debt

Investors may also have concerns over the company’s balance sheet. Management expects its net debt to peak at $95 million, which is now more than its market capitalisation following today’s decline.

In addition, it still has a put option liability of at least $59 million (but potentially as much as $89 million) relating to its acquisition of Zoe Foster Blake’s s Go-To Skincare business.

This doesn’t bode well for its debt covenants. In fact, the company expects to breach them at the end of January if they are not waived.

In its accounts, the company commented:

The Group had waivers in place in respect of certain of its required banking covenants which would otherwise have been breached as at 30 June 2022. Additional waivers were provided subsequent to that date, the latest of which expires on 31 January 2023 and the Group’s forecasts indicate that subsequent breaches are likely and therefore a further waiver or renegotiation of banking covenants will be required.

All in all, these are tough times for the BWX share price and its shareholders.

The post Why is the BWX share price crashing 48% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• BWX share price on watch amid $335m loss and guidance downgrade
• What on earth is going on with BWX shares?
• 5 of the craziest things making news on the ASX this week
• ASX All Ords share BWX tipped to start trading next week after 3-month trading halt

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 recommended BWX. 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 Liontown Resources Ltd (ASX: LTR) share price is under pressure on Tuesday.

In morning trade, the lithium developer’s shares are down 5.5% to $1.42.

Why is the Liontown share price falling?

The Liontown share price is falling today after weakness in the lithium industry offset the release of a positive announcement.

According to the release, Liontown has executed a binding power purchase agreement with Zenith Energy for the supply of electricity to the Kathleen Valley Lithium Project in Western Australia for a period of 15 years.

The release notes that Zenith Energy has progressed the planning, engineering, and design works for the 95MW Hybrid Power Station at Kathleen Valley. This includes the order of long lead items such as the wind turbines.

Impressively, with 46MW of emissions free power generation capacity, the 95MW hybrid power station is expected to be one of the largest off-grid wind-solar-battery storage renewable energy facilities in the mining industry in Australia.

Another positive is that Liontown has secured approval for a $25 million guarantee facility from Export Finance Australia as part of the security package under the power purchase agreement. This reflects the project being identified as a critical minerals project under Austrade’s Critical Minerals Prospectus.

‘Important milestone’

Liontown’s CEO, Tony Ottaviano, was pleased with the news and labelled it a important milestone. He said:

Finalising the Power Purchase Agreement marks another important milestone for Liontown and the development of Kathleen Valley, paving the way for the construction of one of the largest off-grid wind-solar-battery storage facilities of its kind in the Australian resource sector. This reflects our unwavering commitment to delivering on our ESG credentials and establishing industry-leading carbon emissions from the outset.

Zenith Energy’s commitment to deliver a high-capacity hybrid power solution includes incentives to produce renewable power over thermal power and, together with a renewable energy guarantee, sets us up to meet our renewable energy target of 60 per cent at start up. Securing the $25 million guarantee from Export Finance Australia assists to reinforce Liontown’s position as a new globally significant producer and exporter of lithium integral to the transition to a low-carbon future.

The post Liontown share price tumbles despite important milestone appeared first on The Motley Fool Australia.

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More reading

• While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why
• ASX lithium shares have just been crunched. Time to buy?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Down 14% this week, are Liontown shares now ‘relatively less expensive’?
• Why are ASX 200 lithium shares taking another beating on Friday?

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

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The BHP Group Ltd (ASX: BHP) share price has been one of the stronger performers within the S&P/ASX 200 Index (ASX: XJO) over the last two months.

Since 20 October 2022, BHP shares have gone up by around 20%, while the ASX 200 has only risen by 6%.

But, a share price can only rise sustainably so much. It usually has to be backed up by some sort of business progression – a project getting closer to being finished, a new contract, profit growth, or something similar.

One expert believes BHP has gone up too much.

Sell rating on BHP shares

Tony Langford from Seneca wrote on The Bull that the BHP share price looks “expensive” after rising to $46 on 15 December 2022, up from $37.36 on 31 October 2022.

He pointed out that BHP has recently lobbed a revised takeover offer for OZ Minerals Limited (ASX: OZL) at $28.25 per share.

His conclusion about BHP shares was:

Investors may want to consider trimming their exposure to cushion any potential correction in the iron ore price.

Is the OZ Minerals offer a big deal?

Just over a month ago, BHP announced it had bumped up the offer for the copper miner.

The resources giant said the offer represents the “best and final price” that the company is willing to offer, in the absence of a competing proposal.

This offer of $28.25 represents an enterprise value of $9.6 billion for OZ Minerals. This offer was 13% higher than the first BHP offer and 49.3% higher than the OZ Minerals closing share price of $18.92 on 5 August 2022, which was before the first BHP offer.

BHP is currently working on due diligence so that it can negotiate a binding offer.

BHP chair Ken MacKenzie said:

BHP’s proposal would provide value to BHP shareholders by increasing exposure to future facing commodities, attractive synergies and adding to our pipeline of growth options.

BHP CEO Mike Henry added:

BHP’s proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

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.

Foolish takeaway

The performance of the BHP share price from here, in the short-term, could be largely dependent on which direction the iron ore price goes. Time will tell if Tony Langford from Seneca is right to be cautious on the resources giant right now.

The post BHP shares ‘look expensive’: broker appeared first on The Motley Fool Australia.

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More reading

• Could copper become ‘the lithium’ of 2023?
• Why is BHP’s dividend yield so high?
• Why did the iron ore price just hit a 6-month high?
• 3 ASX 200 dividend shares with payouts that jumped more than 10% this year
• Here’s why BHP shares are this fund manager’s favourite ASX iron ore pick

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.

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It’s been a rough year for the S&P/ASX 200 Index (ASX: XJO). It’s tumbled 6% since early 2022. Fortunately, however, some sectors have managed to dodge the carnage – take lithium shares for instance.

Most ASX 200 lithium shares have blown the market’s performance out of the water this year. Meanwhile, more and more investors traded in companies involved with the battery-making material.

In fact, two of the market’s biggest lithium stocks – Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) – were found to be the most popular shares among ASX investors, according to data from trading and superannuation platform Superhero.

So, why have investors doubled down on lithium shares despite the market’s suffering this year? Let’s take a look.

Why did investors flock to ASX 200 lithium shares in 2022?

Lithium has been all the rage on the ASX 200 this year. Indeed, the number of lithium stocks finding themselves at home on the index has jumped monumentally in 2022.

Core Lithium was among those added to the ASX 200, taking its spot in June alongside Lake Resources N.L. (ASX: LKE). Fellow lithium hopeful Sayona Mining Ltd (ASX: SYA) was added in September.

And, for the most part, they’ve outperformed. Shares in Core Lithium have posted the biggest gain, jumping 71% year to date.

Those of Pilbara Minerals and Sayona have lifted 14% and 50% respectively year to date, while shares in Allkem Ltd (ASX: AKE) and Mineral Resources Limited (ASX: MIN) have also posted notable gains, rising 10% and 39%.

Such performance could arguably have been a self-fulfilling prophesy – as more ASX investors aimed to get in on the gains they might have driven lithium shares’ popularity, and prices, higher.

Though, it wasn’t all green for ASX lithium shares. Stock in Lake Resources and Liontown Resources Limited (ASX: LTR) fell 22% and 14% over the period.

What else might have driven the market to double down on lithium this year despite the ASX 200’s suffering? The trend emerged in late 2021 and has been consistent through 2022, Superhero co-founder and CEO John Winters said, continuing:

With Australia one of the world’s biggest lithium producers as well as an increased focus on renewable energy and electric vehicles, it’s no surprise that [many of the] most traded Australian companies on Superhero this year [are involved with] lithium.

Speaking of electric vehicles, Tesla Inc (NASDAQ: TSLA) remained the platform’s most traded US share in 2022 despite the stock having fallen 63% so far this year.

The post While the ASX 200 struggled in 2022, investors doubled down on lithium shares. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• 2 ASX lithium shares to buy, and 1 to avoid: broker
• Why has the Sayona Mining share price tanked 10% in 2 weeks?
• Leading brokers name 3 ASX shares to buy today
• Why Core Lithium, MMA, Northern Star, and Warrego Energy are charging 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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The CSL Limited (ASX: CSL) share price has descended in the past three trading days, but is it a buy?

CSL shares have slid 3.88% since market close on Wednesday to $288.41. For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has fallen 1.57% in the same time frame.

Let’s take a look at the outlook for CSL shares.

Is CSL a buy?

CSL is a global biotechnology company consisting of multiple business arms including CSL Behring, CSL Vifor, and Seqirus. The company has more than 300 plasma collection centres around the world.

Bell Potter analysts are optimistic about CSL amid the company’s latest CSL Vifor acquisition. Bell Potter also sees the global growth in plasma volumes as a potential positive for the CSL share price. The team said:

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.

Citi also has a “buy” rating on the CSL share price with a $340 price target. This implies a nearly 18% upside based on the current price.

As my Foolish colleague James reported on Friday, strong demand for CSL’s immunoglobulins and the company’s “lucrative” research and development pipeline could see the company in a strong position for growth in the long term.

CSL announced the news of a CEO succession plan last week. The company’s CEO Paul Perreault is set to step down in March, with chief operating officer Dr Paul McKenzie taking over the top job. Commenting on the appointment, CSL chair Brian McNamee said:

Paul McKenzie is a patient-focused global leader with a demonstrated track record of leading complex organisations and delivering outstanding business results.

Earlier this month, CSL officially opened a brand new $900 million blood plasma processing site in Melbourne.

CSL share price snapshot

The CSL share price has climbed 5% in the past year. In the past month, it has slipped 2%.

CSL has a market capitalisation of about $139 billion.

The post Down 4% in 3 days, should you buy the dip on CSL shares? appeared first on The Motley Fool Australia.

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More reading

• Here’s why analysts rate these blue chip ASX 200 shares as buys
• Experts say these strong blue chip ASX 200 shares are buys for 2023
• Bell Potter says these are some of the best ASX shares to buy for 2023
• Stock market millionaire: I’d put $500 a month into the ASX 200 to aim for 7 figures
• CSL share price slumps as new CEO appointed

Motley Fool contributor Monica O’Shea 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 CSL. 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 Christmas bargains, then you may want to check out the two cheap ASX dividend shares listed below that Goldman Sachs rates as buys.

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

Adairs Ltd (ASX: ADH)

The first ASX dividend share that Goldman Sachs is recommending investors buy is Adairs.

It is the leading furniture and homewares retailer behind the Adairs, Focus on Furniture, and Mocka brands.

Goldman believes that Adairs’ core business is far more resilient than the market is giving it credit for. As a result, it feel its shares are trading at an unjustified discount to other retailers.

The broker commented:

We view the re-affirmed guidance [at its AGM] as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.

Goldman has a buy rating and $2.65 price target on its shares. In addition, sweetening the deal even further, its analysts are expecting some very big yields from the retailer’s shares in the coming years.

It 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 $2.22, this will mean yields of 7.6% and 9%, respectively.

Elders Ltd (ASX: ELD)

Another ASX dividend share that could be cheap according to Goldman Sachs is Elders.

It is a leading agribusiness company that offers a range of services to rural and regional customers across the ANZ region.

Goldman Sachs believes that Elders’ shares have unnecessarily been sold off, which could have created an excellent buying opportunity for investors given its positive outlook.

It commented:

We view the share price reaction as unwarranted. The fundamentals of this company remain unchanged, and strong in our view. […] In our view, ELD is very well positioned to grow through the cycle.

Goldman has a conviction buy rating and $18.40 price target on its shares.

As for dividends, it is expecting fully franked dividends per share of 53 cents in FY 2023 and 57 cents in FY 2024. Based on the current Elders share price of $10.27, this will mean yields of 5.15% and 5.55%, respectively.

The post The cheap ASX shares to buy for dividends: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• Here are the top 10 ASX 200 shares today
• Top ASX dividend shares to buy in December 2022
• Earn passive income with these strong ASX 200 dividend shares: brokers

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 Australia has recommended Elders. 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 ASX share market and global stock market have been through a rollercoaster in 2022. What does 2023 have in store?

I believe looking at the performance of the US share market – which covers a wide range of global companies – is a good proxy for how investors are feeling about the situation.

One of my preferred ways to evaluate the performance of the US share market is to look at the exchange-traded fund (ETF) iShares S&P 500 ETF (ASX: IVV).

For the year to date, it’s down by more than 13%, though by mid-June it was down by more than 20%.

While a 13% drop isn’t as much as the declines of plenty of individual ASX shares this year, such as Xero Limited (ASX: XRO), it still represents a negative turnaround from the returns we’ve seen in the last couple of years and indeed the past decade.

Given how high interest rates are – and they’re still going higher, at least in the US – could 2023 see another crash for the ASX share market?

Why 2023 may be another tough year

The interest rate can have a very big impact on the valuations of assets — the higher it goes, the more it’s supposed to hurt valuations, in theory. The US Federal Reserve is probably the world’s most important central bank, and has been dealing with very high inflation in the US, which has had an impact on the global stock market.

While US inflation may start to settle down in 2023, Federal Reserve boss Jerome Powell has indicated (as reported by my colleague Bernd Struben) that it could still take some effort to get inflation back to a stable level. This could see the US interest rate go above 5% and stay relatively high for longer than expected.

With the iShares S&P 500 ETF up 9% since the low in June 2022, and the S&P/ASX 200 Index (ASX: XJO) up around 11% since mid-June, the market may already be thinking the worst is over. In time, this could end up being a premature conclusion.

It could take some time for the full effect of these interest rate rises to flow through the Australian and US economies. The central banks want to take the heat out of the economy, but the higher costs to consumers and households could lead to a downturn, hurting the overall earnings of companies within the ASX share market.

Seeing as normal businesses are typically valued by their profitability, a downturn could hurt investor sentiment and put us back into a bear market.

Of course, there is also something completely unpredictable that could cause problems for the global stock market as well.

The case for uncertainty to improve in 2023

I think the share market is largely forward-looking. When the future seems dramatically uncertain, we see large sell-offs. This happened earlier this year when it was uncertain how high inflation would go. Yet, despite interest rates rising even higher, the ASX share market has risen.

For example, at the start of the COVID-19 pandemic, the bottom of the plunge for many businesses on the global stock market was in March 2020, even though there were a growing number of cases, deaths, and lockdowns in the subsequent months.

There are signs that the worst of inflation is over, which could bring forward the peak interest rate. The US Federal Reserve ‘only’ increased its interest rate by 50 basis points last week rather than 75 basis points. Collectively, the market may be comfortable enough with what’s going to happen next.

It’s normal for the stock market to go up and down, but with central banks slowing down the rate increases, we may have moved past the worst of things, even if there is a bit of volatility.

Foolish takeaway

I think we may have seen the low point for the share market when it comes to this period of rapidly rising interest rates. So, I’m not expecting the share market to fall further than we saw in June.

But, it’s certainly possible that the ASX share market could drop 10% or 15% at some point over 2023, particularly if it starts from a comparatively higher level. If an asset goes up 10% and then drops 10%, it’s roughly back to where it started.

The post Will there be a stock market crash in 2023? appeared first on The Motley Fool Australia.

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More reading

• Is the iShares S&P 500 ETF (IVV) a buy following its stock split?
• Is the iShares S&P 500 ETF (IVV) really down 95% today?
• What you need to know about next week’s iShares S&P 500 ETF (IVV) stock split
• 2 ASX ETFs I’d buy right now if I were in my 20s
• 2 high quality ETFs for ASX investors to buy now

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Do you want to add an exchange traded fund (ETF) or two to your portfolio in 2023?

Well, depending on what your investment objective is, the two ETFs listed below could be worth considering. Here’s what you need to know:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

If you’re looking for an ETF to buy and hold then the VanEck Vectors Morningstar Wide Moat ETF could be the one.

This popular ETF has been a strong performer over the last decade thanks to its focus on fairly priced US companies with sustainable competitive advantages or moats. These are qualities that Warren Buffett famously looks for when making investment. And given his success over multiple decades, it is hard to argue against the strategy.

VanEck Vectors Morningstar Wide Moat ETF regularly changes its constituents because it removes stocks when they become overvalued. But generally, there will be approximately 50 shares in the fund at any given time. At present, this includes Adobe, Alphabet, Amazon, Boeing, Microsoft, Salesforce, and Walt Disney.

Over the last decade, the index that it tracks has outperformed the market with an average annual return of 19.2%. This would have turned a $10,000 investment into almost $60,000 today.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If income is your aim then you might want to consider the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with low-cost exposure to ASX-listed companies that have higher forecast dividends relative to other ASX-listed companies.

The good news is that the ETF has been made with diversification front of mind so you don’t end up with a portfolio filled with coal and iron ore miners.

Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company. Furthermore, Australian Real Estate Investment Trusts (A-REITS) are excluded from the index, so there’s limited exposure to the property market.

Among the ~70 shares included in the portfolio you’ll find giants including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

Finally, as you would expect, the dividend yield on offer is notably better than average. At present, the Vanguard Australian Shares High Yield ETF trades with an estimated forward dividend yield of 5.5%.

The post 2 of the best ETFs for ASX investors to own in 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 high quality ETFs for ASX beginner investors to buy in 2023
• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• The ASX-listed ETFs to buy for a passive income in 2023
• One Warren Buffett-style stock I’m ‘never’ selling
• How I’d build passive income with just $20 a week

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 recommended VanEck Morningstar Wide Moat ETF and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When you first start investing, you might look for high risk, high reward growth shares. You can do this because if things don’t go to plan, you have plenty of time to recover from your losses.

But when you’re in retirement or approaching it, investors may be better focusing on income and capital preservation.

With that in mind, listed below are two ASX 200 shares that could be good options for retirees. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at for a retirement portfolio is supermarket giant Coles.

Coles could be a great option in the current environment thanks to its defensive qualities, positive exposure to inflation, and favourable long term growth outlook.

The latter is being underpinned by the company’s refreshed strategy, which aims to cut costs through automation and efficiencies. This includes the construction of new distribution centres with automation giant Ocado.

The team at Citi is positive on Coles and has a buy rating and $18.90 price target on its shares.

In respect to dividends, the broker is forecasting fully franked dividends of 72 cents per share in FY 2023 and 77 cents per share in FY 2024. Based on the latest Coles share price of $16.92, this will mean yields of 4.25% and 4.55%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 share that could be a top option for retirees is Telstra.

Much like Coles, it has defensive qualities that could prove valuable in the current environment. In addition, the company’s outlook is arguably the most positive it has been in over a decade thanks to the success of the T22 strategy and the new T25 strategy.

The latter is targeting high-teens underlying earnings per share compound annual growth through to FY 2025.

Morgans is a fan of the company and currently has an add rating and $4.60 price target on its shares.

As for dividends, it is forecasting 16.5 cents per share dividend in FY 2023 and FY 2024. Based on the current Telstra share price of $4.05, this equates to a 4.1% dividend yield.

The post Building a passive income for retirement? Check out these ASX 200 dividend shares – analysts appeared first on The Motley Fool Australia.

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More reading

• Start generating extra income by investing $5 a day in ASX shares. Here’s how
• Why all eyes will be on Telstra shares this week
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Telstra share price lagging the ASX 200 today?
• 3 top dividend payers of the ASX 200

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 COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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