If you’re looking to boost your income portfolio next week, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that has been tipped as a buy for income investors is Baby Bunting.

It is a leading baby products retailer with a growing store network across Australia and New Zealand.

Morgans remains positive on Baby Bunting despite “an unwelcome surprise” from margin weakness just two months after management “expressed an ambition to hold or increase its gross margins in FY23.”

This is because the broker believes that the significant share price weakness since its update has more than compensated for this disappointment. Especially given how some of these margin pressures are transitory and its “compelling opportunities to grow its share of a growing market.”

Morgans has an add rating and $3.60 price target on its shares. As for dividends, the broker is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.60, this will mean yields of 5.4% and 6.15%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share that has been tipped as a buy is Transurban.

It is one of the world’s leading toll road operators with a portfolio of important roads and a lucrative pipeline of development projects. The former include CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane.

JP Morgan is a fan of the company and has a buy rating and $15.00 price target on its shares. The broker has been pleased with improving traffic trends and highlights the company’s positive exposure to inflation.

As for dividends, JP Morgan expects dividends per share of 60 cents in FY 2023 and then 63 cents in FY 2024. Based on the current Transurban share price of $14.28, this implies yields of 4.2% and 4.4%, respectively.

The post Buy these ASX shares for their dividends: analysts appeared first on The Motley Fool Australia.

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• 5 ASX 200 shares Macquarie just recommended its clients buy
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• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’
• Experts say these ASX dividend shares are buys today
• Here’s why the Transurban share price can ‘reap the benefits’: expert

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 Baby Bunting. 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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Perhaps no ASX 200 dividend share has gotten more attention in recent years than Fortescue Metals Group Limited (ASX: FMG).

Fortescue shares are notoriously volatile. This iron-ore mining company has fluctuated between $14.50 and $22.99 a share over just the past 12 months, after all.

But no one can take the fact that Fortescue has been absolutely pouring cash into shareholders’ pockets in recent years.

But exactly how much cash are we talking about for 2022? That’s what we’ll answer today.

How much income would $20,000 worth of Fortescue shares have yielded in 2022?

Let’s assume an investor bought $20,000 worth of Fortescue shares at the start of 2022. The company finished up 2021 trading at a share price of $19.21, so we’ll use that as our benchmark.

So $20,000 would have bagged our hypothetical investor 1,041 Fortescue shares at this price, with a little change left over.

Fortescue has once again funded two dividend payments for its shareholders over this year. The first was the interim dividend from March, worth 86 cents per share. The second was the September final dividend that came in at $1.21 a share. Both payments were fully franked.

These dividends equate to the second-highest annual dividend Fortescue has ever paid. The highest was in 2021, which saw an interim dividend of $1.47 per share, and a final dividend of $2.11.

So our 1,041 Fortescue shares would have granted our investor a payment of $895.26 in dividend income. The final dividend would have yielded up another $1,259.61, bringing the total for 2022 to $2,154.87.

That represents a very healthy yield on our cost base of 10.78%. Including Fortescue’s full franking, that grosses up to a pleasing 15.39%.

Fortescue has had a mildly disappointing year, share price-wise, though. Currently, the miner’s shares are down 4.58% year-to-date. Saying that, investors are still up by 10.18% over the past 12 months though. Over the past five years, Fortescue has appreciated by a whopping 316%.

The post If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have appeared first on The Motley Fool Australia.

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• Skin in the game: The ASX share in my portfolio I’m most excited about
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• Why did ASX 200 retail shares lead the market to fresh 25-week highs today?
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Motley Fool contributor Sebastian Bowen 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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Collins Foods Ltd (ASX: CKF) shares have the potential to deliver significant dividend income in my opinion.

Many of ASX’s biggest companies are also the biggest dividend payers, such as Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). But, a long time ago, these behemoths were a lot smaller.

While I’m not predicting that Collins Foods is going to become as big as those two, I do think it has plenty of growth potential.

There are three main areas to the business – KFC Australia, KFC Europe and Taco Bell Australia. It is a large franchisee of KFCs and Taco Bells in Australia.

At the end of FY22, it had 261 KFC restaurants in Australia after opening 10 more during the year.

KFC Europe has operations in both the Netherlands and Germany. It recently commenced a Netherlands corporate franchise agreement (CFA) which gives Collins Foods primary operational control over the entire market and incentives for market development, with a target of up to 130 net new restaurants over the next 10 years. At the end of FY22, it had 45 restaurants in the Netherlands.

Collins Foods is also responsible for Taco Bell in Australia. In FY22 it had 23 locations around Australia. FY22 saw Taco Bell’s revenue rise by 27.5% to $35.8 million.

Let’s now look at the dividend.

FY22 dividend

In FY22, the business paid a total fully franked dividend per share of 27 cents per share. That represented an increase of 17.4%.

This came after a 25% increase in underlying net profit after tax (NPAT) from continuing operations to $59.7 million. Statutory net profit jumped 47.2% to $54.8 million for the ASX share.

It has increased its dividend each year since 2014.

Future dividend expectations

It’s expected to pay an annual dividend of 30.9 cents in FY24 according to Commsec. This would be a grossed-up dividend yield of 4.4%.

The business is planning to open another 20 to 29 new restaurants in FY23 alone, with nine to 12 for KFC Australia, two to five for KFC Europe and nine to 12 Taco Bells.

The Collins Foods managing director and CEO Drew O’Malley said:

Collins Foods possesses the key ingredients to weather turbulent times – a strong balance sheet, world-class brands, and a passionate and dedicated team of experienced operators. We continue to monitor the landscape for acquisition opportunities that fit our portfolio and capabilities. And ultimately, we believe that by staying focused on providing unmatched experiences for our customers and people, our long-term prospects are as bright as ever.

I think that Collins Foods is capable of producing dividend growth of an average of more than 10% per annum over the next decade through a combination of same-store sales growth, store network rollout and potentially more acquisitions.

If the business can keep growing its underlying earnings per share (EPS) at an attractive rate, then this can continue funding bigger dividends over time.

Collins Foods share price snapshot

Collins Foods shares have dropped 26% in 2022 to date. But, over the last month, it has risen around 10%.

The post Want growing dividend income? I think this ASX share could be a future dividend king appeared first on The Motley Fool Australia.

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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 Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of UBS, its analysts have upgraded this fashion jewellery retailer’s shares to a buy rating with an increased price target of $29.00. UBS was impressed with Lovisa’s trading update and points out that it is outperforming its peers. The broker also highlights that the company’s global expansion continues to gather pace with several new markets about to be entered. Combined, the broker has lifted its earnings estimates and valuation accordingly. The Lovisa share price was fetching $23.50 at Friday’s close.

QBE Insurance Group Ltd (ASX: QBE)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this insurance giant’s shares to $15.40. The broker wasn’t overly surprised with QBE’s recent trading update. And while it sees a modest risk in QBE’s upcoming reinsurance renewal, it doesn’t appear overly concerned given the supportive premium rate environment and the exit running yield of 3.7% on fixed income investments. All in all, while the broker has reduced its earnings estimates for FY 2022, higher yields has led to an increase in earnings beyond this. The QBE share price ended the week at $13.02.

Qantas Airways Limited (ASX: QAN)

Another note out of UBS reveals that its analysts have retained their buy rating and lifted their price target on this airline operator’s shares to $7.60. This follows the release of a trading update last week which revealed a stronger than expected profit and lower net debt for the first half of FY 2023. UBS was pleased with the update and expects the strong form to continue into FY 2024. The Qantas share price was fetching $6.06 on Friday.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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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Most investors know that the legendary Warren Buffett is considered one of the best investors of all time, if not the best. Most investors will also know that Buffett heads the famous investing conglomerate known as Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B).

After taking over Berkshire in the mid-1960s, Buffett transformed the textiles company into a diverse powerhouse, owning many businesses outright and with significant investments in many other public companies.

Buffett’s love of his investments is also well known. He even likes to remind shareholders of his commitment to the Coca-Cola Co (NYSE: KO) by typically sporting a can or a bottle at Berkshire’s annual general meeting every year.

Berkshire Hathaway’s massive portfolio

Berkshire owns stakes in more than 50 different publically-traded shares. But it might surprise investors to learn that almost 74% of Berkshire Hathaway’s public investing portfolio is concentrated in just five companies. That’s according to the company’s latest 10Q filing, which is accurate as of 30 September.

Some famous names appear in Berkshire’s list. There’s Amazon.com Inc (NASDAQ: AMZN), Johnson & Johnson (NYSE: JNJ) and Visa Inc (NYSE: V). Buffett also owns chunks of Activision Blizzard Inc (NASDAQ: ATVI), Chinese electric vehicle manufacturer BYD Co Ltd and the relatively new-to-the-markets Snowflake Inc (NYSE: SNOW).

But none of these companies even come close to Buffett’s top five holdings.

They are (from largest):

1. Apple Inc (NASDAQ: AAPL)
2. Bank of America Corp (NYSE: BAC)
3. Chevron Corporation (NYSE: CVX)
4. Coca-Cola Co
5. American Express Inc (NYSE: AXP)

So what can we learn from this?

What can we learn from Warren Buffett?

Well, a few things to point out. Some of these holdings, namely Coca-Cola and AmEx, are old Buffett favourites. Buffett first bought Coca-Cola shares back in the 1980s. His investment in American Express goes back even further to the 1960s.

But others are far newer. Apple is by far Berkshire’s largest investment. The company has more than US$128 billion worth of Apple shares, which carves out a whopping 39.7% of Buffett’s entire public portfolio. Yet Buffett only began buying Apple shares back in 2016. His Chevron stake is even newer, with Berkshire picking up its first shares in the midst of COVID-ravaged 2020.

So Buffett is clearly an investor that holds onto his favourite shares through thick and thin. American Express is a company that has had many, many ups and downs since Buffett first bought in back in the ’60s. Yet Buffett has always stayed the course. Ditto with Coca-Cola.

But he is also an investor who knows how to jump on a trend. Buffett clearly saw the post-COVID collapse in global oil prices as an incredible opportunity.

It only took him two years to build Chevron into Berkshire’s third-largest position – one worth US$31.2 billion today. And Apple has gone from absent to Berkshire’s largest holding in just a few years as well.

So Warren Buffett is clearly an investor who likes to hold his favourite shares forever. But he is also one that isn’t afraid to jump on a trend or a new idea and quickly build it into a sizeable position.

Perhaps above all, Buffett’s Berkshire portfolio shows that he is just fine with having 40% of his portfolio in his favourite company: Apple. There are more than a few lessons we mere mortals can take away today.

The post 74% of Warren Buffet’s portfolio is in these 5 stocks. Could this help guide which ASX shares to buy? appeared first on The Motley Fool Australia.

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• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Amazon, American Express, Apple, Berkshire Hathaway (B shares), Coca-Cola, Johnson & Johnson, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Amazon, Apple, Berkshire Hathaway (B shares), Snowflake Inc., and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Activision Blizzard, Amazon, Apple, and Berkshire Hathaway (B shares). 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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According to Oxford Languages, ‘motley’ means “incongruously varied in appearance or character”. But in relation to our Foolish writers, it means they vary greatly with regard to age, risk tolerance, and stage of life as well as investing budget, timeframe, and expectations.

Despite their many differences, a passion for investing in ASX shares is something all our writers definitely have in common.

So when we asked them to let us know which of the ASX companies they own shares in that they are feeling particularly upbeat about right now, they leapt at the chance to share their thoughts.

Here’s what they had to say:

8 of their own ASX shares our writers are especially pumped about (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $185.59 million
• Alcidion Group Ltd (ASX: ALC), $199.72 million
• VanEck Morningstar Wide Moat ETF (ASX: MOAT), $454.32 million
• Vulcan Energy Resources Ltd (ASX: VUL), $1.01 billion
• Elders Ltd (ASX: ELD), $1.59 billion
• Telix Pharmaceuticals Ltd (ASX: TLX), $2.324 billion
• Domino’s Pizza Enterprises Ltd (ASX: DMP), $5.70 billion
• Fortescue Metals Group Limited (ASX: FMG), $58.32 billion

(Market capitalisations as of market close on 25 November 2022)

Why these ASX shares set our writers’ hearts aflutter

Bailador Technology Investments Ltd

What it does: Bailador exposes investors to a “portfolio of information technology companies with global addressable markets”. It generally makes initial investments of between $5 million and $20 million in businesses in the ‘expansion stage’. Some of the sectors that Bailador looks for are subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telco applications, and services. Siteminder Ltd (ASX: SDR) is currently one of its biggest investments.

By Tristan Harrison: The typical characteristics that Bailador looks for in a business to invest in are attractive to me. These include companies that are run by founders and have a “proven” business model with attractive unit economics, international revenue generation, “huge market opportunity”, and the “ability to generate repeat revenue”.

In the current climate of economic uncertainty, I think this sort of discerning approach could help this  ASX financial share excel over the long term. Yet, the Bailador share price is down 20% since the end of August.

Almost half the company’s portfolio value is cash after Bailador recently sold its Instaclustr and SMI stakes for a combined $138 million. Due to those sales, $119 million of Bailador’s total $246.8 million portfolio value is cash, providing protection and a hunting fund in these volatile times.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Alcidion Group Ltd

What it does: Alcidion is a healthcare informatics company that provides a range of software solutions to hospitals and healthcare professionals. Think everything from patient flow and bed management to real-time analytics, theatre management, waiting lists, and registrations.

Alcidion has an established foothold in Australia, New Zealand, and the United Kingdom, with its technology being used to manage more than 65,000 beds across 400 hospitals.

By Cathryn Goh: Although the digital transformation of business, in general, has been in train for some time, the healthcare sector has been somewhat of a laggard. Many hospitals are rooted in old-world systems. Others have embraced digital but use a variety of disparate systems that don’t talk to each other.

This is where Alcidion enters the fray, offering hospitals everything from a fully-fledged electronic patient record (EPR) solution to individual software modules that play nice with existing technology investments.

Put simply, Alcidion is a mission-critical, scalable software business that’s experiencing strong business momentum and has tipped into cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) positive territory.

With a newly-transformed offering and stiff industry tailwinds at its back, it’s a small-cap ASX share I think holds plenty of promise.

Motley Fool contributor Cathryn Goh owns shares in Alcidion Group Ltd.

VanEck Morningstar Wide Moat ETF

What it does: This exchange-traded fund (ETF) holds a small portfolio of US shares that are deemed to show characteristics of Warren Buffett’s famous ‘economic moat’. In other words, intrinsic and durable competitive advantages.

By Sebastian Bowen: The VanEck Wide Moat ETF invests in a relatively small portfolio of quality US companies. The holdings are selected for their ability to demonstrate an economic moat. Types of moats can include an exceptionally strong brand, pricing power in a particular sector, or selling a product that many customers have no alternative for, to name a few.

This ETF has proven its approach works. The VanEck Wide Moat ETF has outperformed its benchmark S&P 500 Index (SP: .INX) over the past five years and since its inception in June 2015.

Since inception, the fund has averaged a return of 14.48% per annum (as of 31 October). This is more than enough to earn the VanEck Wide Moat ETF pride of place in my ASX share portfolio.

Motley Fool contributor Sebastian Bowen owns units in the VanEck Vectors Wide Moat ETF.

Vulcan Energy Resources Ltd

What it does: Vulcan Energy is an ASX lithium company working to develop its flagship Zero-Carbon Lithium Project, a German lithium brine resource. The project is expected to power its production using renewable energy from the brine’s geothermal properties.

By Brooke Cooper: For me, my most exciting investment is one that also carries plenty of risk.

Vulcan Energy is working to develop a world-first zero-carbon lithium project. Thus, there’s lots of scope for potentially-significant upside, but also the risk of error and misfortune along the way. Being in my 20s and having a long investment horizon, I’m okay with taking on this risk. 

Beyond the company itself, unprofitable resource shares are typically particularly susceptible to shifting market sentiment, as I’ve delved into previously. That’s arguably one contributing factor to Vulcan’s 34% year-to-date share price tumble.

However, I remain excited about the Zero-Carbon Lithium Project’s potential, as well as the company’s work in the geothermal power space.

Motley Fool contributor Brooke Cooper owns shares in Vulcan Energy Resources Ltd.

Elders Ltd

What it does: Since its founding in 1839, Elders has taken many forms over its 183-year lifespan. Today, the company derives most of its gross profits from its agricultural chemicals operations and agency services. Elders’ agricultural industry involvement has also permeated into other areas such as fertilisers, animal health, and rural real estate.

By Mitchell Lawler: Upon releasing its FY22 full-year results last week, the market responded with a hefty sell-down of the agribusiness’s shares. The Elders share price was demolished by nearly 23% in a single session despite sales revenue and underlying profit increasing by 35% and 42%, respectively.

News of the company’s CEO, Mark Allison, retiring likely played a significant role in the shifting sentiment. Allison, without a doubt, was instrumental in conducting one of the greatest turnaround stories in Australia’s corporate history.

While it will be a loss to the company, I believe Elders is strongly positioned to continue its growth. The company has made many acquisitions recently, bringing the trusted Elders brand to more locations and potential customers than ever before.

With a price-to-earnings (P/E) ratio of around 9.7, I believe this long-standing S&P/ASX 200 Index (ASX: XJO) share looks acutely underappreciated and undervalued.

Motley Fool contributor Mitchell Lawler owns shares in Elders Ltd.

Telix Pharmaceuticals Ltd

What it does: Telix is a pharmaceutical company that makes cancer diagnostic and treatment products.
The business is currently transitioning from a pre-revenue phase to a growth stage. In April, Telix commercially launched prostate cancer diagnostic tool Illuccix into the US market. The pharma also has other cancer products in the pipeline.

By Tony Yoo: Many experts are bullish on healthcare as Australia and the world head into an economic slowdown. The sector has defensive characteristics because consumers will still spend money on their health while cutting other costs.

I believe Telix combines this defensive streak with the potential for explosive growth as it develops new products for release into an aging population. The share price is down 10.3% year to date, still presenting an attractive entry point for those willing to hold long-term.

Motley Fool contributor Tony Yoo owns shares in Telix Pharmaceuticals Ltd.

Domino’s Pizza Enterprises Ltd

What it does: Domino’s Pizza Enterprises holds exclusive master franchise rights for the Domino’s brand and network in Australia and several international markets such as New Zealand, France, and Japan.

By James Mickleboro: I recently took advantage of the significant weakness in the Domino’s share price in 2022 to pick up some shares. I made the move on the belief that the pizza chain operator’s shares are currently trading at a compelling level for a long-term investment.

While trading conditions are proving difficult for Domino’s at present due largely to inflationary pressures, these headwinds will inevitably ease in time. In light of this, I think investors should look beyond this and focus on the long term, which remains very positive thanks to the company’s store expansion plans.

Domino’s aims to more than double its store footprint over the next decade. Combined with its same-store sales growth target of 3% to 6% per annum, I believe this bodes well for its growth.

Motley Fool contributor James Mickleboro owns shares in Domino’s Pizza Enterprises Ltd.

Fortescue Metals Group Limited

What it does: Fortescue is the largest, pure-play iron ore miner on the ASX. It has multiple mining operations in the Pilbara region of Western Australia. It now has a subsidiary called Fortescue Future Industries (FFI), which is a green energy and technology business.

By Bronwyn Allen: I like investing in founder-led companies because I think there is inherently more passion and drive at the management level to keep the company growing and evolving.

Fortescue founder Andrew ‘Twiggy’ Forrest is one of Australia’s pre-eminent business leaders and, I believe, an incredible innovator who gives the miner a significant edge.

Fortescue is one of the world’s lowest-cost iron ore producers because Forrest has invested in infrastructure and technology, including robotics and artificial intelligence, like nobody else. I also think he’s way ahead on what may be the biggest investment thematic of my generation – climate change.

Forrest spent much of COVID-19 travelling the world, establishing business and government partnerships to develop green hydrogen and other renewable energy technologies under the FFI banner. His goal is to transition Fortescue from an iron ore miner to a ‘global green energy and resources company’.

I’m excited to see a leader in a ‘dirty’ industry like mining embracing climate change as an opportunity for business expansion, not a burden to core operations.

Motley Fool contributor Bronwyn Allen owns shares in Fortescue Metals Group Limited.

The post Skin in the game: The ASX share in my portfolio I’m most excited about appeared first on The Motley Fool Australia.

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• Don’t miss out on these top ASX dividend shares: analysts
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group Ltd, Bailador Technology Investments Limited, and SiteMinder Limited. The Motley Fool Australia has recommended Alcidion Group Ltd, Bailador Technology Investments Limited, Dominos Pizza Enterprises Limited, Elders Limited, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Whether you’re looking for tech exposure, access to Asia, or an income boost, there’s probably an exchange traded fund (ETF) out there for you.

Two that are popular with investors and could help you accomplish your investment goals are listed below. Here’s what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF to consider right now is the BetaShares S&P 500 Yield Maximiser.

It could be a good option for investors that are searching for a reliable source of income.

That’s because BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising the famous S&P 500 Index on Wall Street. This means you’ll be investing in dividend-paying companies such as Apple, Bank of America, Exxon Mobil, Johnson & Johnson, Microsoft, and Visa.

However, rather than getting the average yield of the S&P 500 index, BetaShares’ equity income investment strategy aims to earn quarterly income that significantly exceeds the dividend yield of the underlying share portfolio over the medium term.

For example, the BetaShares S&P 500 Yield Maximiser’s units are currently providing investors with an 8.8% distribution yield.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to consider is the VanEck Vectors Video Gaming and eSports ETF.

This ETF could be a good option for investors that are looking for exposure to the tech sector outside the status quo.

That’s because rather than giving you exposure to the FAANG stocks, this ETF gives investors access to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.

This is a very large (and growing) market with billions of active gamers and competitive video gaming audiences of well over half a billion expected in 2023.

This bodes well for companies included in the fund such as graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Roblox.

The post 2 popular ETFs for ASX investors to buy next week appeared first on The Motley Fool Australia.

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More reading

• Why I’d buy and hold these ASX shares until 2030
• 3 quality ETFs for ASX investors to buy this month
• 2 ETFs for ASX investors to buy for big dividends
• 3 ETFs for ASX investors to buy right now
• 2 high quality ETFs for ASX investors in November

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 BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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Are you looking for ASX dividend shares to buy next week? Listed below are two ASX dividend shares that brokers rate as buys.

Here’s why the analysts are bullish on these dividend shares:

Adairs Ltd (ASX: ADH)

According to a note out of Goldman Sachs, its analysts have a buy rating and $2.65 price target on this furniture and homewares retailer’s shares. Goldman believes that the market is too bearish on Adairs and is overlooking the resilience of its core business. It said:

We view the re-affirmed guidance 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.

One positive from its share price weakness is that the broker is expecting some big yields in the coming years. Goldman 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 $2.25, this will mean yields of 7.6% and 8.9%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

A note out of Morgans reveals that its analysts have retained their add rating and $14.89 price target on this insurance giant’s shares. This followed the release of a disappointing catastrophe claims update last week.

The broker believes that QBE has done relatively well given the very volatile year for weather. In light of this, it remains positive and believes the company is well-placed to benefit from premium increases, rising rates, and cost outs. It commented:

We believe tailwinds such as rising bond yields, premium rate increases and cost out will drive an improved earnings profile for QBE over the next few years. The stock also remains inexpensive trading on ~10x FY23F earnings.

In respect to dividends, the broker is expecting a 42.6 cents per share dividend in FY 2022 and then a 90.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $13.02, this equates to yields of 3.3% and 6.9%, respectively.

The post Brokers name 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs rates these ASX dividend shares as buys
• These are the ASX dividend shares income investors should buy now: brokers
• Don’t get spooked, this ASX 200 share is still a buy: expert
• These are the ASX dividend shares to buy now: Goldman Sachs
• Here’s how I’d invest $20,000 in ASX shares today to double my money

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 FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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 S&P/ASX 200 Index (ASX: XJO) share Centuria Industrial REIT (ASX: CIP) has seen a drop in its unit price by around 25% in 2022 to date. This has had the effect of boosting the prospective dividend yield for interested investors.

For readers that don’t know, this real estate investment trust (REIT) is the largest Australian-focused industrial property trust on the ASX.

Why the Centuria Industrial REIT share price has sunk

The key reason for the decline appears to be that interest rates have climbed so much. Warren Buffett once explained why the interest rate can have such a big effect on asset prices:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

The Reserve Bank of Australia (RBA) cash rate target has gone from 0.10% to 2.85%, with the increases starting in May and the latest increase being 25 basis points (0.25%) earlier in November.

Why it could be a good time to buy

The lower Centuria Industrial REIT share price means the FY23 guided distribution now represents a higher yield from the ASX 200 dividend share.

It’s expecting to pay an annual distribution of 16 cents per unit in the current financial year, which equates to a forward distribution yield of 5.1%. The estimated funds from operations (FFO) for FY23, essentially the cash rental profit, is 17 cents per unit. That means it’s retaining a bit of the rental profit.

At the end of the first quarter of FY23, it had a portfolio occupancy rate of 99.6% and a weighted average lease expiry (WALE) of 8.1 years.

While inflation is leading to higher interest rates, it’s also seeing exceptionally strong rental growth. In its FY23 first quarter update, it said that it has seen 18% positive re-leasing spreads, demonstrating “accelerated market rental growth”. That growth figure is on a net rental basis, compared to prior passing rents.

The business also said that it’s “capturing strong tenant demand” through its “new development pipeline within supply-constrained urban infill markets”.

Essentially, interest rate costs are going up, but the rental income is jumping high enough to at least partially compensate.

With its portfolio leased to quality tenants, like Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS), I think the ASX 200 dividend share’s rental income looks resilient.

Centuria Industrial REIT share price snapshot

Over the last month, the REIT has risen by around 10%.

The post Is now the time to buy this high-yielding ASX 200 dividend share? appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ASX shares for a retirement portfolio: brokers

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended 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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Qantas Airways Limited (ASX: QAN) shares outperformed the S&P/ASX 200 Index (ASX: XJO) this week, hitting 52-week highs on Wednesday.

Qantas shares closed up 5.3% on the day. This followed an unexpected profit guidance upgrade, which came on the heels of a previous upgrade in early October.

The ASX 200 airline lifted its half-year forecast for underlying profit before tax by $150 million from its October guidance to a new range of $1.35 billion to $1.45 billion.

Part of the profit guidance boost is attributable to a strong rebound in domestic and international travel figures.

Another part, as recent air travellers can likely attest to, is a sharp lift in ticket prices.

Which brings us to the latest accusations being levelled at the flying kangaroo.

What’s this about price gouging?

Qantas shares made The Australian Financial News headlines after Regional Express Holdings Ltd (ASX: REX) deputy chairman John Sharpe said the high price for domestic airfare Qantas is charging represents price gouging.

Sharpe acknowledged the industry-wide impacts of soaring jet fuel costs and multi-decade high inflation levels. “Fuel prices are high and inflation is a problem and impacting us,” he said.

Indeed, Qantas estimates it will spend a record $5 billion fuelling its fleet in the 2023 financial year.

But Sharpe doesn’t believe the elevated prices Qantas is charging domestic passengers aligns with those higher costs.

“It just doesn’t stack up,” he said.

According to Sharpe (quoted by the AFR):

You could literally buy one of our business class airfares for half the price of an economy seat on some Qantas flights – and we’re on exactly the same planes. We operate a 737-800 MG to and from Melbourne. It’s the same plane, the same route and I would say the in-cabin product is as good as theirs…

I don’t think Virgin is gouging people but with Qantas and their prices it would appear that they are gouging.

How have Qantas shares been tracking this year?

Qantas shares have staged a strong rebound in 2022, gaining 18% so far. That compares to a 4% year to date loss posted by the ASX 200.

The post Own Qantas shares? Guess what the airline is being accused of now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares on the coveted Goldman Sachs conviction list
• Why is the Qantas share price having such a top run this week?
• 5 of the craziest things making news on the ASX this week
• Leading broker tips Qantas share price to climb to a new record high
• 5 things to watch on the ASX 200 on Thursday

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

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