If you’re not a fan of stock picking, then exchange traded funds (ETFs) are here to make your life easier. That’s because they allow you to invest in a group of shares through a single investment.

And with ETFs catering for every occasion, there’s likely to be something out there that fits with your investment goals.

For example, if you’re looking to generate income in retirement, then the ETF listed below could be a great option for you.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a top option for a retirement portfolio. That’s because this popular ETF provides investors with easy access to ASX listed shares that have higher than average forecast dividends.

Vanguard notes that instead of looking backwards, it relies on broker estimates to build a portfolio of shares that are expected to be among the biggest dividend payers in the next 12 months. It explains:

VHY is built smarter. Unlike most high yield equity ETFs, VHY uses forward looking broker estimates to determine which securities go in the fund. This ensures VHY can look past historical information and capture the securities that are forecast to pay a higher yield.

The fund manager also has diversity in mind when building its portfolio. It limits the proportion invested in any one industry to 40% and 10% for any one company. This ensures that income investors are holding a diverse collection of dividend shares.

Included in the fund are a number of income investor favourites. This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS). Australian Real Estate Investment Trusts (A-REITS) are not included in the ETF.

At the time of writing, the Vanguard Australian Shares High Yield ETF was trading with an estimated forward dividend yield of 5.2%.

The post Buy this ASX ETF for big retirement income appeared first on The Motley Fool Australia.

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• Dividend dessert: Which ASX ETFs are the sweetest for a passive income?
• These ETFs could give ASX investors a passive income
• Buy these ETFs for passive income and growth
• Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income?
• Growth and income: 2 excellent ETFs for ASX investors to buy this month

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 Telstra Group. The Motley Fool Australia has recommended 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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Investors are pretty skittish at the moment with the economy teetering on the brink and inflation still raging.

So last month’s reporting season saw ASX shares punished brutally even if the result slightly missed expectations — or even for just meeting analyst forecasts.

That means there could be some bargains out there for businesses that still have bright long-term prospects.

Here are two examples in Celeste Funds Management’s portfolio:

Weak half-year result was just a matter of timing

Litigation funder Omni Bridgeway Ltd (ASX: OBL) watched in horror last month as its share price plunged 25% off a cliff.

In fact, the stock has fallen even further this month to bring the total losses since the start of February to a painful 35%.

The Celeste analysts, in a memo to clients, attributed this to “a weak result” and the retirement of its chief executive.

“Completions in the half were significantly lower than expected and operating costs were materially higher.”

However, the Celeste team is not too worried about Omni Bridgeway’s longer term prospects.

“With $304 million of commitments during the period, Omni Bridgeway [is] on track to achieve their FY23 target of $550 million,” read the memo.

“We think the result and completions remain a timing issue.”

Celeste’s peers seem to agree that Omni Bridgeway stocks remain attractive.

According to CMC Markets, all three of the analysts covering the stock currently recommend it as a strong buy.

‘Strong’ pipeline of work coming up

Mining and infrastructure services contractor NRW Holdings Limited (ASX: NWH) also had to shut its eyes during February as its stock price tumbled.

“NRW Holdings fell 16.8% in February post a slightly softer than expected earnings result impacted by weather, delay of new contract awards and investment in North America.”

Cash conversion was weaker in the half yearly results, due to “projects’ working capital releases and requirements”.

The Celeste analysts, though, were optimistic upon affirmation of previous guidance for the full financial year.

“NRW Holdings reiterated FY23 guidance of $2.6 to $2.7 billion revenue and $162 to $172 million EBITA with normalising cash flow.”

The company has plenty of work coming up, too.

“NRW’s group pipeline is a strong $19.3 billion with orderbook up +$0.9 billion to $4.9 billion.”

The professional community isn’t quite as unanimous about NRW Holdings as Omni Bridgeway shares.

Current figures on CMC Markets show five out of eight analysts rating NRW shares as a buy.

The post Golden buying opportunity for 2 ASX shares slashed last month: Celeste appeared first on The Motley Fool Australia.

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• These ASX shares are being dumped from the ASX 200 index this month
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• 2 ASX All Ords shares making massive moves on results announcements

Motley Fool contributor Tony Yoo has positions in Nrw. 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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With much uncertainty hanging over both consumers and businesses, stock picking at the moment is a fraught activity.

However, there could be a pretty straightforward method to spot ASX shares worthy of buying.

Some stocks took off during last month’s reporting season. And it’s not an outrageous argument to hop on to these stocks that have both business and share price momentum.

The analysts at Celeste Funds Management this week named two such ASX shares this week that still have appealing prospects for further returns.

Executing well and plenty of future opportunities lined up

Shares for automotive industry software maker Infomedia Limited (ASX: IFM) went absolutely gangbusters in February.

“Infomedia rose 26.7% over the month, with the 1H23 result pointing to sales re-acceleration, good progress on cost control and a healthy sales pipeline,” stated a Celeste memo to clients.

“Infomedia delivered sales growth across all regions (HoH) and made solid progress in reshaping the cost base.”

The Infomedia share price has now gained more than 7% over the past year, all while paying out a dividend of 3.5%. Not bad for a period when most technology stocks suffered.

There is plenty of potential to be tapped in the near future, too.

“The company disclosed $15 million of potential annual recurring revenue opportunities, and while they still have to be won, it highlighted a refocus on client engagement by the new management team,” read the Celeste memo.

“The balance sheet is net cash and Infomedia should see ongoing improved performance.”

Much of the rest of the professional investment community agrees with the Celeste team. According to CMC Markets, six out of seven analysts currently rate Infomedia as a buy with five of those recommending it as a strong buy.

‘Appealing exposure to a defensive industry’

While Australian Clinical Labs Ltd (ASX: ACL) shares have struggled over the past year, losing 22.5%, the stock enjoyed a massive renaissance during reporting season.

“Australian Clinical Labs rallied 16.5% during the month following a 1H23 result that beat market expectations,” read the Celeste memo.

“Although COVID revenue was down (PCR testing volumes), the core business revenue grew 18%.”

The Celeste analysts were impressed with the pathology service provider’s cost control, as it “maintained an operating profit margin of 11%, in line with previous guidance”. 

The current half is already looking great, and Celeste analysts reckon the shares are still inexpensive to buy in.

“Looking ahead, 2H23 has started strongly with Jan 23 LFL revenue growth of 22%,” read the memo.

“ACL is an appealing exposure to a defensive industry and remains cheap versus listed peers.”

Australian Clinical Labs is also popular with other fund managers, with four out of five analysts currently surveyed on CMC Markets rating it as a strong buy.

The post Catch these fast-rising 2 ASX shares before it’s too late: Celeste appeared first on The Motley Fool Australia.

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• Why Accent, Brambles, Infomedia, and Pilbara Minerals shares are pushing higher
• Infomedia share price shifts up a gear as profits surge almost 40%

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 positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) recorded the smallest of gains. The benchmark index rose a modest 3.3 points to 7,311.1 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open 43 points or 0.6% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1%, and the NASDAQ index is down 1.2%.

Oil prices fall again

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices continued to slide overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$75.68 a barrel and the Brent crude oil price is down 1.3% to US$81.58 a barrel. Recession fears have been weighing on prices this week.

Buy Xero shares

The Xero Limited (ASX: XRO) share price surged higher yesterday after announcing major cost reductions. This has gone down well with analysts at Goldman Sachs, who have retained their conviction buy rating with an improved price target of $116.00. It said: “We upgrade FY24-26E EBITDA by +9-17% given the step change in opex.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 1.1% to US$1,838.5 an ounce. US dollar weakness and market volatility gave gold a boost.

Metcash shares downgraded

The Metcash Limited (ASX: MTS) share price could be overvalued according to Goldman Sachs. This morning, the broker has downgraded the wholesale distributor’s shares to a sell rating with a $3.50 price target. It explained: “We downgrade MTS from Neutral to Sell due to moderating supermarket inflation and rising competition, both of which we expect to negatively impact MTS’s Food sales and EBIT.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Is the party well and truly over for ASX 200 coal shares?
• Why is the Xero share price racing 11% higher today?
• Xero share price on watch amid major cost cutting plans

Motley Fool contributor James Mickleboro has positions in Xero. 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 Metcash. 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 team at Goldman Sachs has been running the rule over the healthcare sector following the conclusion of earnings season.

Two ASX 200 healthcare shares that have been given the thumbs up by the broker are listed below. Here’s what its analysts are saying about them:

Cochlear Limited (ASX: COH)

This hearing solutions company could be a top option in the sector according to Goldman Sachs. Its analysts believe Cochlear is well-placed to outperform its guidance in FY 2023 thanks to improving trading conditions.

Goldman has a buy rating and $265.00 price target on its shares. It commented:

We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. We expect a sequential improvement in momentum through 2H23 (further elective volume improvement and new processor launch momentum, potentially tempered by some moderation in Acoustics). We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program (GSe: $75m/year).

ResMed Inc. (ASX: RMD)

Another ASX 200 healthcare share that Goldman Sachs is bullish on is ResMed. It is forecasting double-digit earnings growth through to at least 2026. It also sees scope for even quicker growth depending on the Philips re-entry after a major product recall.

Goldman has a buy rating and $38.00 price target on this sleep treatment company’s shares. It said:

The timing/nature of Philips’ re-entry remains an important debate, but under most scenarios we expect excess demand through end-2023 at least. Whilst supply shortages and cost inflation mitigated the tailwinds through FY22, the benefits to RMD are significant, and could accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, both near- and long-term. We expect a sequentially stronger 2H23, and currently model an EPS CAGR of +11% FY23-26E (with potential upside depending on how competitive dynamics develop).

The post Buy these excellent ASX 200 healthcare shares: Goldman Sachs appeared first on The Motley Fool Australia.

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The Core Lithium Ltd (ASX: CXO) share price was among the top performers of the S&P/ASX 200 Index (ASX: XJO) today.

The small-cap ASX lithium share closed the session up 3.09% to a neat $1 on Thursday.

This was despite the lithium miner reporting an almost tripled loss in its 1H FY23 report released today.

Then again, it’s unsurprising for a junior miner to report increased losses when it’s been ramping up investment and operations to commence production at scale.

And 1H FY23 was a milestone period for the company in this regard. Core Lithium has now transitioned from a mine explorer and developer to a mine operator and producer with its first sale during the period.

This makes Core Lithium one of the few ASX lithium companies actually producing lithium. Game-changer.

Let’s check out the half-year numbers.

Core Lithium share price up despite $9.2 million loss

The miner owns the Finniss Lithium Operation on the Cox Peninsula, 88km south-west of Darwin.

It produced and sold its first batch of lithium at the very end of 1H FY23. So, the income from that sale didn’t make it onto the books for the period.

However, in terms of income, rising interest rates throughout 2022 certainly helped the company out. Its ample cash reserves generated more than $1 million in interest in 1H FY23, up from just $150,000 in 1H FY22.

Here’s the key data:

• Loss of $9.2 million, up from $3.3 million in the prior corresponding period (pcp) of 1H FY22
• Cash and cash equivalents of $125 million, down from $157 million pcp
• Total net assets worth $327 million, up from $239 million pcp
• Earnings per share (EPS) loss of 0.52 cents per share, down from 0.22.

Investors appear unperturbed by the increased operational losses. After the report was released to the ASX at about 2pm today, the Core Lithium share price continued to rise until the market close.

What else happened in 1H FY23?

Among the highlights of the half was mining the first lithium ore from Grants Pit. The company also commissioned its dense media separation plant (DMS) to produce its first spodumene concentrate.

This facilitated Core Lithium’s first sale — a one-off direct shipping ore (DSO) to China. The shipment was trucked to Darwin Port in December 2022 and set sail for China in January this year.

Other highlights of 1H FY23 included:

• Upgrading the mineral resource estimate (MRE) for Finniss by 28% and the ore reserve estimate (ORE) by 43%. This extended the life of mine estimate to a minimum of 12 years
• Completed a $100 million capital raise to fund an extensive drilling campaign in 2023, pursue growth opportunities, and provide additional working capital
• Appointment of CEO Gareth Manderson and COO Mike Stone (CFO Doug Warden has also been appointed in 2023).

What did management say?

In the report, Core Lithium said:

The Company continues to receive strong inbound interest in lithium spodumene concentrate from Finniss and is well-positioned to capitalise on high demand for available battery grade lithium concentrate to complement existing binding offtake arrangements with Ganfeng Lithium and Yahua.

What’s next?

Core Lithium had $125 million in liquid capital at the end of the period, and now that it’s producing lithium, it can start generating revenue. So, the future looks pretty bright for this ASX lithium share.

On Monday, the company reported a more than doubling of the Finniss Lithium Project MRC following further drilling activities. This pushed the Core Lithium share price up by 11%.

The company said further significant growth opportunities exist beyond the currently modelled resource domains at Carlton, Ah Hoy, Hang Gong, and Sandras. Core Lithium will continue exploring this year and will update the global mineral resource and ore reserve estimate for Finniss shortly.

Brokers are divided on Core Lithium stock.

Macquarie retains an outperform rating with an improved 12-month price target of $1.50 following the MRC update.

This implies a potential 50% upside for investors who buy Core Lithium shares at today’s price.

Goldman Sachs is less enthusiastic, with a sell rating and a price target of 90 cents.

Core Lithium share price snapshot

Core Lithium has been one of the favourite ASX lithium shares among investors in recent years.

The stock started a pretty sustained run in early 2021, rising from about 14 cents to $1.50 by April 2022.

As is often the case with young and exciting ASX mineral explorer shares, investors bid up the price based on promise and expected future earnings. Arguably, it ran too hard, and in mid-2022, a correction began.

Enormous fluctuations in the Core Lithium share price have followed.

Over the past 12 months, the Core Lithium share price is up 3.3%.

Over the past six months, it’s down 37%.

In the year to date, it’s virtually steady — down by just 0.3%.

The post Core Lithium share price spikes despite almost tripled losses in 1H FY23 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Broker gives its verdict on the Core Lithium share price
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Block, BrainChip, Core Lithium, and Life360 shares are racing higher
• Why is the Core Lithium share price soaring 11% today?

Motley Fool contributor Bronwyn Allen has positions in Core Lithium and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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Coles Group Ltd (ASX: COL) stock could deliver attractive total returns through a combination of share price growth and dividends.

The supermarket business has done very well since the start of COVID-19, but with pandemic effects now disappearing, the company is still managing to achieve good financial growth.

Experts think that the good times could continue for Coles shares.

Margins are rising amid inflation

It would be understandable that inflation would lead to higher revenue and profit for the business.

If Coles made a 5% profit margin, then it’d make a $5 profit on $100 of sales. If the same basket of products were sold for $105, then a profit margin of 5% would result in a $5.25 profit.

But, Coles’ continuing operations sales grew 3.9% to $20.8 billion and the earnings before interest and tax (EBIT) grew 9.9% to $1.06 billion. Earnings per share (EPS) grew 11.6% to 46.3 cents. Clearly, margins have increased during this period.

The ABC reported on comments from Coles’ government and industry relations manager, Vittoria Bon, about the increased profit margins when talking to the Senate Committee who commented that the supermarket had cut produces on some products:

That’s why we’ve got the campaigns that we have, [such as] Dropped and Locked.

We’ve got 5,000 products at any point in time that represent value for our customers because they’re on special…and we have a whole range of products that customers can buy that are less than $1, for example canned tuna, canned vegetables.

We’re very conscious of the cost of living pressures faced by our customers, and that’s why we’re responding with those sorts of value campaigns.

The ABC also reported that Coles denied it was “profiteering from inflation”, saying that it was because of a fall in COVID costs.

However, Coles did report that its gross profit margin improved by 43 basis points (0.43%) to 26.5% over the period. The EBIT margin increased by 28 basis points to 5.3%.

The Betashares chief economist David Bassanese said:

We need to eat, and that doesn’t change all that much, and so we’re not that price sensitive.

We hate paying more for Vegemite and peanut butter, but ultimately we’re still going to buy it even at higher prices.

So what we’ve seen is businesses in those cases have been able to pass on the cost increase to prices, and sales in the main have been maintained.

Expert views on Coles stock and the dividend

As noted by my colleague James Mickleboro, Citi thinks Coles stock is a buy, with a price target of $20.20. That suggests that the Coles share price could rise by more than 10%.

The broker suggests that the FY23 first-half EBIT was better than expected and there is “upside” to the FY23 estimated consensus for EBIT.

Citi expects Coles to pay an annual dividend per share of 69 cents in FY23, which is a grossed-up dividend yield of 5.5%. The FY24 dividend per share could be 71 cents, which would be a grossed-up dividend yield of 5.7%.

The post Coles stock can deliver golden combo of share price growth plus dividends: Citi appeared first on The Motley Fool Australia.

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More reading

• How can I hope to retire rich when the share market is falling?
• Here’s how I’d invest $20,000 in ASX 200 shares for a supercharged second income
• Experts name 2 ASX 200 dividend shares for a passive income boost
• Top ASX dividend shares to buy in March 2023
• Why Brainchip, Coles, Karoon Energy, and Pilbara Minerals shares are tumbling

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Coles Group. 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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2022 and 2023 have seen a strange shift in the investing world. For the decade before 2022, interest rates were at historically low levels. They were essentially zero over 2020 and 2021. That meant that investors could not get any kind of decent return on cash investments. Savings accounts, term deposits and the like offered next to no return. That meant ASX 300 dividend shares were one of the only real options if investors wished to receive a decent yield on their cash.

Well, that world has gone. Just this week, the Reserve Bank of Australia (RBA) raised interest rates for the tenth time in a row. The cash rate has gone from 0.1% at the end of 2021 to the 3.6% we see today – one of the sharpest rises in history.

As a consequence, many savings accounts and term deposits are now offering interest rates of up to 5% (and some even higher) today.

But that doesn’t mean we can’t get even better yields from some ASX 300 dividend dynamos.

So let’s check out three that are offering yields that can smash cash right now.

Smash cash with these ASX 300 dividend shares

First up is Accent Group Ltd (ASX: AX1). This ASX 300 retail share operates well-known footwear outlets such as Platypus Shoes and The Athlete’s Foot. Over the past 12 months, Accent shares have paid out a total of 16 cents per share in dividend payments – the highest 12-month total in its history.

Despite the Accent share price rising by almost 43% over the past year, the shares still offer a trailing dividend yield of 6.67% today. That grosses up to a whopping 9.53% with Accent’s full franking credits.

Another ASX 300 share offering a supersized dividend yield is Adairs Ltd (ASX: ADH). Unlike Accent, the Adairs share price has been suffering over the past 12 months, currently down by just over 17%. But despite this, this company paid out a historically high 18 cents per share in dividends over 2022.

That gives Adairs shares a dividend yield of 7.5% today. Again, Adairs’ dividends usually come fully franked, so this grosses up to a pleasing 10.71%.

An 11.3% yield from Harvey Norman?

Finally, let’s check out Harvey Norman Group Holdings Limited (ASX: HVN). Harvey Norman is a company needing little introduction, thanks to its prominent presence on the Australian retail scene for over four decades.

This is another ASX 300 share that has had a rough time over the past year, with Harvey Norman losing almost 29% of its value since March 2022. But that isn’t obvious when you look at this company’s dividend. 2022 saw Harvey Norman dole out its largest shareholder payments ever, with investors showered with a total of 37.5 cents per share, fully franked.

This gives Harvey Norman a dividend yield of 7.92% today, which grosses up to a massive 11.31% with that full franking.

So as you can see, there are plenty of ASX 300 shares out there that have the potential to still give investors massive yields on their capital today.

The post These 3 ASX 300 shares are dividend dynamos! appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Adairs. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Harvey Norman. The Motley Fool Australia has positions in and has recommended Adairs and Harvey Norman. The Motley Fool Australia has recommended Accent Group. 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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ASX exchange-traded funds (ETFs) offer a one-step process to diversify your stock holdings. 

Most ASX ETFs hold a sizeable basket of different shares. Or in some cases bonds or even cryptos.

ETFs have also gained in popularity among income investors seeking a simpler way to access dividends without having to research dozens of companies themselves.

While the majority of listed companies only pay out dividends once or twice per year, a few ASX ETFs make their distribution payments every month. A handy feature for income investors keen to access the dividends in a timely fashion.

This ASX ETF offers monthly dividend payments

Among the funds paying monthly distributions is Betashares Australian Dividend Harvester Fund (ASX: HVST).

HVST aims to offer investors mostly franked, passive income that beats the net income yield of the wider ASX.

The ETF provides instant diversity, holding 40 to 60 different shares. The portfolio is rebalanced every three months with the goal of providing the highest gross yield outcome.

Its top holdings by sector are in the financials sector (30%), the materials sector (25%) and the healthcare sector (10%).

As at 31 January, its two biggest shareholdings were BHP Group Ltd (ASX: BHP) at 13.2% and Commonwealth Bank of Australia (ASX: CBA) at 10%.

The ASX ETF’s 12-month distribution yield works out to 7.2%. The fund’s gross distribution yield over the 12 months was 10.1%, at an average franking level of 93%.  

HVST’s most recent monthly dividend of 7.1 cents per share will be paid out next Thursday, 16 March, with a 78% franking level.

Just as with any share trading on the ASX, the ETF’s returns will also be impacted by its share price when an investor opts to sell.

As you can see in the chart above, the HVST share price is up 4% in 2023 and down 3% over the past 12 months.

The post Guess which ASX ETF pays dividends every month? appeared first on The Motley Fool Australia.

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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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Wesfarmers Ltd (ASX: WES) is one of the leading businesses for potential passive income in my opinion. But, is the right time to buy?

I think it’s important to recognise that there can be a difference between how good a business is and whether it’s a good time to buy its shares.

Over the past five years, BHP Group Ltd (ASX: BHP) has been one of the best and biggest dividend payers in the world. But, the BHP share price has been very volatile. There can be attractive times to invest in the company, and times when it’d be wise to stay on the sidelines.

While I don’t think Wesfarmers shares are as cyclical as BHP’s, I think it’s just as worthwhile to question their price.

Interestingly, the Wesfarmers share price is slightly up over the past 12 months, despite higher interest rates, though it is still down more than 20% since August 2021. The Wesfarmers share price has risen by more than 10% in 2023 to date.

Is now a good time to buy Wesfarmers shares for passive income?

I’d always like to buy my target investments at an even cheaper price. If I had a crystal ball, it’d be able to tell me whether the negativity surrounding higher interest rates is going to hurt Wesfarmers’ share price or the company’s profit in the next 12 months.

But we don’t know what’s going to happen next, so we can only judge whether the current investment is good or not.

According to Commsec, the Wesfarmers share price is valued at 23x FY23’s estimated earnings based on an earnings per share (EPS) prediction of $2.16. By FY25, EPS is expected to rise to $2.49.

The dividend is expected to come in at $1.87 per share in FY23, $1.94 per share in FY24, and $2.19 per share in FY25.

That looks like attractive passive dividend income growth in 2023 and beyond. The current projected grossed-up dividend yield for FY23 is 5.3%. That looks like a solid yield to me and comfortably more than what investors might be able to get from a term deposit.

I think it’s a quality business

I think that Bunnings, Kmart, and the Wesfarmers chemicals, energy and fertiliser (WesCEF) business are three of the best businesses in Australia. The fact that they continue to invest and grow is a very positive sign in my opinion. Ongoing population growth in Australia is a useful tailwind for Wesfarmers’ earnings. Strong commodity prices are helpful for WesCEF. I think the future looks bright for the company.

It’d have been more rewarding to buy Wesfarmers shares at a price of under $43 last year. However, I think Wesfarmers will be able to keep growing profit for years to come. But there could be a time that the Wesfarmers share price goes down to a more attractive level during 2023.

Wesfarmers share price snapshot

Over the past month, Wesfarmers shares have risen by 2%.

The post Is right now the time to buy Wesfarmers shares for passive income? appeared first on The Motley Fool Australia.

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• How can I hope to retire rich when the share market is falling?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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