Washington H Soul Pattinson and Co Ltd (ASX: SOL) could be the market’s most consistent dividend share.

Not only is it the only All Ordinaries Index (ASX: XAO) stock to have paid a dividend every year since listing (way back in 1903, I might add), but it’s also grown its offerings every year for the last 23 years.

And the investment house kept its track record alive yesterday when it declared a 36 cent per share interim dividend. That marked a 24% jump on that of the prior comparable period.

No doubt the news piqued the interest of many passive income investors. So, without further ado here are all the need-to-know details regarding the S&P/ASX 200 Index (ASX: XJO) staple’s upcoming payout.

The Soul Patts share price last traded at $28.91.

All the details on Soul Patts’ record interim dividend

The Soul Patts share price jumped 1.3% on Thursday after the company declared a 36-cent per share interim dividend – a new record for its kind.

The offering will be fully franked, meaning it could bring tax benefits to some investors.

The ASX 200 share will trade ex-dividend on 19 April with the payout hitting bank accounts from 12 May.

Investors need to be on board the stock before its ex-dividend date in order to qualify to receive the dividend.

The company pays dividends out of its net cash flows from investments. They jumped 35% last half to reach $246.5 million on higher dividends from its strategic portfolio and contributions from Milton.

Looking longer-term, those holding Soul Patts shares have seen their interim dividends realise a compound annual growth rate (CAGR) of 9% over the last two decades.

In that time, the investment house has brought about a total shareholder return of 12.3% per annum.

Considering its newly declared interim dividend and its recent final dividend, Soul Patts shares currently offer a 2.73% dividend yield.

The ASX 200 giant will likely reveal its next final dividend alongside its full year earnings in late September.

The post Looking to bag the bolstered Soul Patts dividend? Here’s what you need to know 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

• 5 things to watch on the ASX 200 on Friday
• Telstra shares: Bull vs. Bear
• Here are the top 10 ASX 200 shares today
• Here is a pair of ASX 200 shares I would buy and never sell
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended 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/ijFOclJ

In my view, a few sectors have been oversold in the last 18 months. That leads me to believe that there are cheap ASX shares, which could also be payers of huge dividend yields. A few could deliver a passive income of more than 10%.

I think the retail sector can be a hunting ground for finding beaten-up opportunities. There are plenty of retailers that are likely to see cyclical demand over the years. If we use periods of market distress to pick up ASX retail shares that are down heavily, they could be among the ones that rebound nicely in the medium term.

Sometimes share prices seem to be heavily focused on the next 12 months or so, not on the longer-term potential. I think this opens up the opportunity to find names that can do well for investors.

Dusk Group Ltd (ASX: DSK)

The ASX share describes itself as a retailer of home fragrance products, selling Dusk-branded products which are designed in-house and exclusive to Dusk. It claims to become the Australian leading retailer of home fragrance products. It sells a number of different products like candles, ultrasonic diffusers, reed diffusers, essential oils and fragrance-related homewares.

Over the past year, the Dusk share price is down around 40%. Commsec numbers suggest that Dusk could generate earnings per share (EPS) of around 20 cents in FY23. This would represent a large profit decrease from FY22. However, it suggests that Dusk shares are currently valued at less than 8 times FY23’s estimated earnings.

On top of that, Dusk had net cash of $32.9 million on its balance sheet at the end of the FY23 first half. According to the ASX, its market capitalisation is currently $93 million, so it looks even cheaper when taking that into account.

In terms of the dividend, it’s expected to be 14 cents per share in FY23 and then rise in FY24 and FY25. At the current Dusk share price, the grossed-up dividend yield could be 13.3%. But that’s just an estimate of the potential passive income.

Ongoing store openings could lessen the effect of any decline in same store sales for the ASX share in FY23 and FY24.

Adairs Ltd (ASX: ADH)

Adairs sells furniture and homewares through its three businesses of Adairs, Mocka and Focus on Furniture. While Mocka is an online-only brand, there are plans to sell its furniture in stores, which would be a useful synergy between its business.

The Adairs share price has fallen over 30% from 1 February 2023, which has boosted the forward dividend yield.

Commsec estimates currently indicate that the FY23 annual dividend per share could be 16.5 cents, with dividend increases expected in FY24 and FY25. The FY23 payout translates into a grossed-up dividend yield of 11.7%. That’s a lot of passive income, even at a lower level.

While there may be uncertainty about household demand, I think Adairs’ plans to upsize its stores and grow the store network of Focus on Furniture will help improve the profitability of the business. So, I believe that Adairs’ earnings can hold up fairly well in this period.

In FY23, the ASX share’s EPS is expected to be 26.8 cents, putting the Adairs share price at under 8 times FY23’s estimated earnings as well.

The post Dividend yields over 10%! Cheap ASX shares I’d buy for 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

• I hope to retire rich. That’s why I’m buying cheap ASX dividend shares right now
• Here’s one hot, one lukewarm and one cold ASX share: fundie
• I’d target just a handful of ASX shares to aim for a million!
• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today
• Is it a trap? 3 ASX shares with ultra-high dividend yields

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. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Dusk Group. 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/i39cZP5

Did you buy Woolworths Group Ltd (ASX: WOW) shares in March 2018 and hold onto them? If so, pat yourself on the back – your investment has outperformed the market so far.

The Woolworths share price has gained a whopping 66% over the last five years – rising from around $22.48 to trade at $37.37 at Thursday’s close.

That means a $10,000 investment back then would have bought 444 Woolworths shares. That parcel would be worth $16,592 today.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted around 20%.

And that’s all before we consider the dividends on offer from the supermarket operator in that time.

How much have Woolworths shares paid in dividends in 5 years?

Take a look at all the dividends paid to those holding Woolworths shares since March 2018:

Westpac dividends’ pay date	Type	Dividend amount
September 2022	Final	53 cents
April 2022	Interim	39 cents
October 2021	Final	55 cents
April 2021	Interim	53 cents
October 2020	Final	48 cents
April 2020	Interim	46 cents
September 2019	Final	57 cents
April 2019	Interim	45 cents
October 2018	Final	50 cents
October 2018	Special	10 cents
April 2018	Interim	43 cents
Total:		$4.99

Those invested in Woolworths shares over the last five years have likely realised $4.99 of dividends per stock owned in that time.

That means our figurative $10,000 parcel has probably yielded around $2,215.56 of passive income, supporting a notable total return on investment (ROI) of 88%.

And, of course, Woolworths shareholders received one Endeavour Group Ltd (ASX: EDV) stock for each Woolies security held when the supermarket giant divested the business in 2021.

Not to mention, had a shareholder reinvested their dividends, they likely would have realised some impressive compound gains.

Considering all the offerings paid by Woolworths over the last 12 months, the share boasts a 2.46% dividend yield right now. The company will pay out its next dividend – worth 46 cents per share – in April.

The post Did you buy $10,000 of Woolworths shares in 2018? If so, here’s how much passive income you’ve banked 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

• Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts
• ‘Increased confidence’: Alphinity reveals 2 ASX 200 shares it just bought
• Experts name 2 high quality ASX 200 shares to buy for your retirement portfolio
• Where I would go hunting for defensive ASX 200 shares with upside
• 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/unZFmBI

If you’re looking for big potential returns, then look no further. Goldman Sachs has recently slapped buy ratings on the two ASX 200 shares listed below with price targets materially higher than current levels.

Here’s what the broker is saying about them:

Allkem Ltd (ASX: AKE)

The first ASX 200 share that Goldman Sachs has named as a buy is Allkem. It is one of the world’s largest lithium miners and the result of the merger between Galaxy Resources and Orocobre in 2021.

From its projects across Argentina, Australia, and North America, the company is aiming to grow its production in a way that allows it to maintain a 10% share of global lithium supply over the long term.

It is this production growth, as well as its downstream optionality, that makes Goldman a fan of Allkem even when it is bearish on lithium prices. It commented:

Allkem has one of the best production outlooks in our lithium coverage, with broad-based growth optionality, second only to Mineral Resources on an LCE basis when including downstream hydroxide production on an equity basis. This drives our forecast for the company’s equity LCE production growth of >4x by FY27E, supporting earnings rebounding to near current record levels despite the declining lithium price environment.

Goldman currently has a buy rating and $15.40 price target on its shares. Based on the current Allkem share price of $9.99, this implies potential upside of 54% for investors.

Life360 Inc (ASX: 360)

Another ASX 200 share that Goldman Sachs is bullish on is Life360. It is a growing location technology company that has close to 50 million global active users of its eponymous Life360 mobile app.

Its shares have been hammered over the last 12-18 months due to the market’s aversion to loss-making tech stocks. However, with the company on the verge of becoming profitable, Goldman appears to see now as a great time to pounce on its shares.

Particularly given its impressive performance and its strong growth potential, which it feels is underappreciated by the market. The broker commented:

Life360 is executing well on its pricing strategy as the company moves to a profitable growth model, and we believe management’s targets regarding underlying/statutory EBITDA margin expansion should help the market quantify the operating leverage we believe Life360 can generate in coming years. The company is well capitalised, will be cash flow positive from 2Q23, and stands to generate significant earnings growth in coming years; all of which look underappreciated by the market as implied by the current share price at ~2x NTM EV/sales.

Goldman has a buy rating and $7.85 price target on its shares. Based on the current Life360 share price of $5.05, this suggests potential upside of 55% over the next 12 months.

The post Buy these ASX 200 shares for 50%+ returns: Goldman Sachs 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

• Investing in ASX 200 lithium shares? You’ll want to read this
• Why are ASX lithium shares sinking today?
• What was with ASX lithium shares today?
• Allkem share price can jump 45% even if lithium prices fall: Goldman Sachs
• These ASX lithium shares are a buy despite explosive supply forecast: UBS

Motley Fool contributor James Mickleboro has positions in Allkem and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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/HbyAfcP

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

But with so many to choose from, which ETFs could be buys right now?

Two that could be top options are listed below. Here’s what you need to know about them:

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

The first ETF for investors to look at is the Vanguard All-World ex-U.S. Shares Index ETF.

The VEU ETF brings the world to your portfolio by given you access to approximately 3,500 companies listed in developed and emerging markets across the globe (excluding the United States).

Vanguard highlights that this can expand a portfolio to include many sectors not well represented in Australia. It also complements a portfolio with overweight exposure to local investments. That’s because the largest country allocations are Japan, China, United Kingdom, France, and Canada, with Australia accounting for only 5% of the exposure.

Among its holdings you’ll find a diverse group of shares including HSBC Holdings, Samsung, LVMH Moet Hennessy Louis Vuitton, Sony, Taiwan Semiconductor, Tencent, Toyota, Astra Zeneca, and Roche Holdings.

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

Another ETF for investors to consider is the Vanguard Australian US Total Market Shares Index ETF.

This could be a good option if you would prefer to gain exposure to the United States rather than the globe. That’s because this low-cost and diversified ETF provides investors with access to some of the largest companies listed in the United States.

Vanguard highlights that it allows investors to participate in the long-term growth potential of US listed companies. The fund manager sees it as a top option for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the ETF are the likes of Amazon, Apple, Boeing, CostCo, JP Morgan, Starbucks, and Walmart.

The post 2 fantastic ETFs for ASX investors to buy this month 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

• 2 excellent ETFs for ASX investors to buy now

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/SbZ4wDJ

If you are searching for ASX dividend shares to buy, then you may want to check out the two high yield option listed below.

Here’s why analysts are bullish on them:

Charter Hall Long WALE REIT (ASX: CLW)

The first high yield ASX dividend share that has been named as a buy is Charter Hall Long Wale REIT.

It is a property company focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

The team at Citi is positive on Charter Hall Long Wale REIT. Its analysts highlight its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

The broker expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.23, this will mean yields of 6.6% and 6.85%, respectively.

Citi currently has a buy rating and $5.00 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that analysts have named as a buy is Westpac.

Goldman Sachs is very bullish on the banking giant and believes its exposure to rising interest rates and the bank’s major cost cutting plans will support strong earnings and dividend growth in the coming years.

The broker is forecasting fully franked dividends per share of 147 cents in FY 2023 and 156 cents in FY 2024. Based on the current Westpac share price of $21.33, this will mean yields of 6.9% and 7.3%, respectively.

Goldman also sees plenty of upside potential for its shares and currently has a conviction buy rating and $27.74 price target on them.

The post Want passive income? Analysts say you can get 6%+ yields with these 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

• Should ASX 200 banks pay more for this implicit government backstop?
• I think retirees will love these 2 ASX 200 dividend shares for passive income
• ASX big four bank shares close the day ahead as financial fears linger
• Why New Hope, Pilbara Minerals, Westpac, and Zip shares are pushing higher
• Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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/AVfNrMK

S&P/ASX 200 Index (ASX: XJO) banks closed the day in the red on Thursday.

The big five bank stocks, which includes Macquarie Group Ltd (ASX: MQG), came under pressure following the latest interest rate hike from the US Federal Reserve.

Here’s how these ASX 200 banks performed on Thursday, a day that saw the benchmark index slide 0.67%:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed down 0.39%
• National Australia Bank Ltd (ASX: NAB) shares closed 1.5% lower
• The Westpac Banking Corp (ASX: WBC) share price closed down 0.47%
• Commonwealth Bank of Australia (ASX: CBA) shares closed down 0.11%
• Macquarie shares closed down 1.78%

ASX 200 banks may also be facing some pressure after US Treasury Secretary Janet Yellen said the US government isn’t discussing providing deposit insurance to every bank, potentially leaving smaller US banks in the lurch.

Yellen added that bank runs “may more readily happen now”.

ASX 200 banks too big to fail?

As for ASX 200 banks, the nation’s biggest banks enjoy an implicit guarantee from the Australian government (meaning us taxpayers) that they’ll be bailed out if that need should arise.

This is separate from the Financial Claims Scheme, which guarantees deposits up to $250,000 per account holder at all authorised deposit-taking institutions (ADIs).

As The Australian Financial Review (AFR) reports, the bank levy on the big four banks and Macquarie raised almost $1.6 billion for the government in 2022.

A 0.06% tax is levied on the banks’ funding sources. It came into being in 2017 as a way to have the ASX 200 banks chip in for the privilege of any bailout. It’s an entitlement that comes with being ‘too big to fail’.

Now, with the banking crisis gripping the United States and Europe, Australia’s smaller banks think that levy should be reviewed.

Time to raises the levy?

Representatives of the smaller banks think the ASX 200 banks should possibly pay a higher levy. This comes as their own funding costs are on the rise in the current environment, making fair competition with their larger rivals more difficult.

According to CEO of the Customer Owned Banking Association Mike Lawrence (quoted by the AFR):

There are arguments to review [the levy] in the current environment. There is evidence to show they are not paying the full amount of the benefit they get from it. In the current environment, there is an argument to say it is too low.

Pointing to the fallout in bond markets from the UBS takeover of Credit Suisse, Lawrence added:

Funding costs will go up as a result of this, and potentially the differential between large bank funding costs and smaller lenders will widen.

Funding costs for smaller lenders relative to bigger ones are disproportionately impacted because having the implicit guarantee potentially puts them in a better position to raise funds at a lower cost. That should be reflected in the fee that they pay to the government.

Whether or not the ASX 200 banks will be hit with a higher levy remains to be seen.

The post Should ASX 200 banks pay more for this implicit government backstop? 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

• How to make $500 of monthly income from CBA shares
• Buy these ASX 200 dividend shares for a second income: analysts
• ASX big four bank shares close the day ahead as financial fears linger
• Could owning NAB shares soon include a slice of Credit Suisse?
• Why New Hope, Pilbara Minerals, Westpac, and Zip shares are pushing higher

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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/qrng8ZR

With so much uncertainty about the economy, inflation and interest rates swirling about, “defence” seems to be the new buzzword among ASX shares.

While the term defensive shares can evoke images of dour investments offering anaemic growth in return for protection of capital, that doesn’t necessarily have to be the case in reality.

In fact, Wilsons equity strategist Rob Crookston recently talked about what his team calls “growth defensives”.

“The focus portfolio holds a selection of high-quality, high-margin, defensive businesses with strong competitive advantages, pricing power, and relatively attractive long-term growth prospects,” Crookston said in a memo to clients.

“We believe these companies are likely to grow their earnings faster than the market over the medium term, which should translate to outperformance over time.”

Now, without confusing Wilsons with Wilson Asset Management, experts from the latter this week named two ASX shares to buy that fit the bill:

‘Lipstick effect’ in full swing

As a non-surgical cosmetic services provider, Silk Laser Australia Ltd (ASX: SLA) is not a name that immediately comes to mind when talking about defensive stocks.

But Wilson equity dealer William Thompson has seen it differently, calling it a “big buy”.

“They had a really interesting last half because no one really believed their story,” Thompson said in a Wilson video.

“[The market] thought the cosmetics business was probably more discretionary, and it’s really showed that it’s defensive.”

Thompson cited what economists call the “lipstick effect”, which is when consumers still buy feel-good goods and services through tougher economic times.

“These products, they’re actually quite defensive because… when there is potentially a recession, they still want to look good and still want to spend money on themselves.”

Silk Laser’s growth numbers impressed Thompson during the recent reporting season.

“They posted a 20% sales increase half-on-half, and nearly 45% EBITDA increase half-on-half, so it’s looking really good,” he said.

“Like-for-like sales are up 10% for the first seven weeks of the year. So it’s definitely a buy.”

Thompson’s peers largely agree, with 4 out of 5 analysts currently surveyed on CMC Markets rating Silk Laser shares as a buy.

The Silk Laser share price has roughly halved over the past year.

‘Pricing momentum is going to continue’

As the world’s largest pallet and crate provider, Brambles Limited (ASX: BXB) probably better fits the traditional definition of a “defensive” stock.

Indeed while other non-mining shares have struggled, Brambles has soared more than 38% over the past 12 months. This is all while paying out a handy 2.6% dividend yield.

Wilson equity analyst Anna Milne called it a buy, while admitting that the share price has already had a good run.

“We do think the pricing momentum is going to continue,” she said.

“The focus on profitability is only going to grow over the coming year.”

Milne, however, did raise a caveat that recently popped up.

“Given all the market volatility, it’s around anything that’s earning US dollars,” she said.

“So that’s a watch for us, but operationally, Brambles is still a buy.”

According to CMC Markets, 11 out of 17 analysts are rating the stock as a buy.

The post ‘Big buy’: Wilson’s 2 surprisingly defensive ASX shares to cruise through 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

• 2 leading ASX 200 shares to buy that could keep outperforming in 2023: fund manager
• 6 ASX 200 shares trading ex-dividend today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tony Yoo 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 Silk Laser Australia. 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/WZMTSG1

The health sector is seen by many experts as one that could remain resilient through times of economic distress.

After all, people may cut out dining out or buying a new sofa, but they will still want to remain physically and mentally well.

And with interest rate rises now biting Australian consumers hard, that scenario is well and truly in play.

Here are two ASX shares involved in healthcare that Wilson Asset Management analysts are rating as buys at the moment:

‘Momentum is really strong’

The Aroa Biosurgery Ltd (ASX: ARX) has amazingly rocketed almost 46% over the past 12 months, over a time when few non-mining stocks can even claim to be in the black.

Wilson equity dealer William Thompson reckons that trend will continue, calling it a buy.

“It posted a really good sales update in January,” Thompson said in a Wilson video.

“They’re a New Zealand-based company… They have about seven different products which they’re selling in the US.”

Aroa Biosurgey is involved in a joint venture with US partner TELA Bio Inc (NASDAQ: TELA), whose reporting next week could prove to be yet another catalyst for the ASX stock.

With a March year end, Aroa’s annual result is not far away.

“The momentum is really strong for the company, so it’s a buy.”

Thompson’s peers unanimously agree, with all five analysts surveyed on CMC Markets currently rating Aroa Biosurgery as a buy.

This stock could go anywhere now that supply problems are waning

Resmed CDI (ASX: RMD) has been an old favourite for health investors for decades now, but the share price has struggled in recent times.

Over the past 18 months the stock has lost more than 21% of its value.

According to Wilson equity analyst Anna Milne, the troubles for the business are temporary.

“They’ve been really struggling to get [computer] chips,” she said.

“Now as the broader demand for electronics wanes in this more challenging environment, [Resmed] will find it a lot easier to get these semiconductor chips.”

So once that supply problem is fixed, the sky’s the limit for the sleep apnoea device market leader.

That’s because its nearest rival, Koninklijke Philips NV (AMS: PHIA), was forced out due to a safety recall just under two years ago. 

“With their major competitor Philips still largely out of the market, and will at least be distracted for a few years, we think Resmed is a great company at a fair valuation.”

The post Buy these 2 ASX health-tech shares that are ready to rocket: Wilson 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

• Buy these ASX growth shares this week: experts
• Buy these ASX growth shares now: analysts
• 5 ASX 200 shares that inflation can’t touch: expert
• Here’s why experts rate these ASX 200 growth shares as buys
• Buy these excellent ASX 200 healthcare shares: Goldman Sachs

Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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/Bv8Ai9x

Lithium has been the hot commodity among stock investors in recent years, but ASX investors are reminded that’s not the only material required to make batteries.

Copper has been used for centuries as a conductor of electricity and is required in significant amounts for both electronic circuitry and batteries.

Maqro Capital head of trading Mark Gardner pointed out last month that there’s currently an over-reliance on one particular region to supply copper to the world.

“The two biggest global producers of copper are Chile and Peru. Together, the South American powerhouses make up 43% of the world supply,” Gardner posted on Livewire.

“They also happen to be in political disarray.”

So any copper producers outside that part of the planet may do pretty well in the coming years.

Last man standing on the ASX

For Wilson Asset Management equities dealer William Thompson, the planets have aligned for Sandfire Resources Ltd (ASX: SFR).

“They’ve got some strong cash flow coming through next year,” he said on a Wilson video.

“That’s on the back of the Botswana asset, which is nearly into production.”

Red Leaf Securities chief John Athanasiou agreed with Thompson earlier this month, saying copper is “a critical element in producing batteries for electric vehicles”. 

“Copper is a dominant revenue stream for Sandfire,” he said.

“It produced more than 48,000 tonnes of copper in the first half of fiscal year 2023.”

The Sandfire share price has risen an amazing 78% since October.

The company’s Spanish operations have much upside, according to Thompson.

“I think it’s starting to get more de-risked as we go into the year,” he said.

“At today’s valuation it’s a buy.”

Gardner said that Sandfire Resources is “one of the last large cap copper plays left on the ASX”.

“Given the strong copper price dynamics, we see strong potential for the company to exceed revenue expectations.”

The post Copper’s so hot right now: Expert names best ASX mining stock to buy 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’s what Morgans is saying about the Sandfire share price
• 3 top ASX mining shares I’d buy right now
• Here are the top 10 ASX 200 shares today
• 3 ‘quality’ ASX shares to buy now before they rocket: experts
• Sandfire share price slides as profits turn to losses

Motley Fool contributor Tony Yoo 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/5myZOMK