On Wednesday, the S&P/ASX 200 Index (ASX: XJO) followed Wall Street’s lead and dropped deep into the red. The benchmark index fell 0.8% to 7,307.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to rebound on Thursday despite a relatively poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% higher this morning. In late trade in the United States, the Dow Jones is down 0.45%, the S&P 500 has fallen 0.1% and the NASDAQ is up 0.1%.

Mining giants go ex-dividend

A large number of ASX 200 shares will go ex-dividend this morning and could trade lower. This includes mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). Last month, BHP declared a fully franked interim dividend of 130.6 cents per share. This is scheduled to hit shareholders’ bank accounts on 30 March. Whereas Rio Tinto declared a 326.5 cents per share fully franked dividend, which is expected to be paid to eligible shareholders on 20 April.

Oil prices fall again

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices dropped again on Wednesday night. According to Bloomberg, the WTI crude oil price is down 1.2% to US$76.61 a barrel and the Brent crude oil price is down 0.85% to US$82.58 a barrel. Rate hike concerns have been weighing on sentiment this week.

Carsales rated neutral

The Carsales.Com Ltd (ASX: CAR) share price is fairly priced according to analysts at Goldman Sachs. In response to its capital raising and acquisition of an additional 40% stake in Brazil’s Webmotors, the broker has retained its neutral rating with a $23.00 price target.

Gold price edges lower

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued session after the gold price edged lower. According to CNBC, the spot gold price is down a fraction to US$1,819.8 an ounce. The precious metal has come under pressure this week on rate hike fears.

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

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• Is now the time to buy Telstra shares for passive income?
• Last chance to snag the next dividend from these 4 ASX 200 mining shares
• 3 good reasons I’m avoiding CBA shares at all costs!
• Why is the ASX 200 taking a tumble today?

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 Carsales.com. 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 rising interest rates, ASX growth shares have taken somewhat of a back seat over the past year or so. Instead, many investors have been seeking out a potentially smoother ride among blue-chip, value, and dividend stocks.

But, as the great Warren Buffett once said, it can pay to ‘be greedy when others are fearful’.

While it can feel pretty scary investing your hard-earned cash into growth stocks during periods of economic uncertainty, these can be the best times to find the greatest investing opportunities. Particularly if you take the time to sniff out relatively young businesses with strong business models, competent management teams, and significant market opportunities.

So, if you’re happily focused on the investment destination, and don’t mind if the road gets a bit bumpy along the way, ASX growth stocks could be just the ticket.

Luckily for you, our Foolish writers have started the research engine for you and flagged the ASX growth shares they reckon are well worth taking for a spin in March. Here is what they came up with:

6 best ASX growth shares for March 2023 (smallest to largest)

Airtasker Ltd (ASX: ART), $103.40 million

Readytech Holdings Ltd (ASX: RDY), $358.97 million

Nanosonics Ltd (ASX: NAN), $1.37 billion

Webjet Limited (ASX: WEB), $2.68 billion

Treasury Wine Estates Ltd (ASX: TWE), $9.76 billion

Xero Limited (ASX: XRO), $11.95 billion

(Market capitalisations as at market close on 8 March 2023)

Why our Foolish writers love these ASX growth stocks

Airtasker Ltd

What it does: Airtasker runs an online market platform that connects people who need services or tasks performed with those willing to perform them for a fee. This could be anything from assembling furniture or putting up a playground to gardening, maintenance, and removalist services.

By Sebastian Bowen: Airtasker is one of the Aussie stock market’s newer companies, having only had its initial public offering (IPO) in 2021. But this ASX growth share has hit the ground running, and I have been impressed with Airtasker’s performance during its short public life.

Just last month, Airtasker reported its half-yearly earnings, which showed an impressive 57% rise in revenues and a 58% surge in gross profits. Clearly, Airtasker’s business model is proving popular.

Despite this, the Airtasker share price remains depressed and is sitting just above its current 52-week (and all-time) low. As such, I think it’s well worth a look this month.

Motley Fool contributor Sebastian Bowen does not own shares in Airtasker Ltd.

Readytech Holdings Ltd

What it does: Readytech describes itself as a next-generation, software-as-a-service (SaaS), cloud-based software provider to the education, workforce, government, and justice sectors. Its software includes people management systems, payroll, employment services, and community engagement solutions.

By James Mickleboro: I think Readytech could be a top option for ASX growth investors in the current environment. This is due to its strong growth outlook and its defensive earnings. With respect to the latter, almost 80% of the company’s first-half earnings before interest, tax, depreciation, and amortisation (EBITDA) came from its education and government segments.

Combined with its high-conviction pipeline valued at $27 million, Goldman Sachs believes this will lead to Readytech delivering a “+20% FY22-25E EBITDA [compound annual growth rate] CAGR“. It is no surprise, then, that the broker has a buy rating and a lofty $4.40 price target on Readytech shares.

This represents around 44% upside based on the current Readytech share price of $3.06.

Motley Fool contributor James Mickleboro does not own shares in Readytech Holdings Ltd.

Nanosonics Ltd

What it does: This company provides disinfection solutions for use with ultrasound probes in the healthcare industry. Nanosonics helps bring increased efficiency and safety to the process of infection prevention through the use of its Trophon devices.

A total of 31,120 units are installed globally across the United States, Canada, the United Kingdom, Europe, and Australia.

By Mitchell Lawler: A true ASX ‘growth’ share, in my opinion, is a company that has the capability and ingenuity to continually expand its addressable market through product innovation. Nanosonics is delivering in this regard by building upon the success of its Trophon devices. 

The Trophon system is targeted to a specific niche in disinfection, the ultrasound probe market. Now, Nanosonics is gearing up to disrupt another segment of healthcare equipment cleaning with ‘Coris’, an endoscope cleaning device. 

Notably, Nanosonics’ revenue is growing at an impressive rate. Total revenue for FY23 is forecast to be between 36% and 41%. Bringing new products to the market should help the company sustain this high rate of growth into the future. 

Motley Fool contributor Mitchell Lawler does not own shares in Nanosonics Ltd.

Webjet Limited

What it does: S&P/ASX 200 Index (ASX: XJO) listed Webjet provides online travel bookings in both the business-to-consumer and business-to-business segments.

By Bernd Struben: Webjet shares continue to gradually recover from the devastating 75% pandemic-fuelled drop that occurred in early 2020. The company has trimmed costs and is benefitting from a rapid return of domestic and international travel.

In November, Webjet reported its half-year underlying net profit after tax (NPAT) had returned to profit, albeit a slim one. Revenue was up 217% year on year. With global travel expected to continue rising, I believe Webjet is well-positioned to capitalise on that growth.

Indeed, analysts at Goldman Sachs forecast the company will increase earnings at a six-year CAGR of 15.3%. Goldman has a $7.20 price target on Webjet shares, around 2% above the current price.

The Webjet share price is up around 14% in 2023.

Motley Fool contributor Bernd Struben does not own shares in Webjet Limited.

Treasury Wine Estates Ltd

What it does: Treasury Wines is the name behind such wine brands as Penfolds, Wolf Blass, and 19 Crimes. It owns 11,300 hectares of vineyards and sells wine to more than 70 countries.

By Brooke Cooper: The Treasury Wine share price was hit hard by the COVID-19 pandemic and tariffs that China imposed on Aussie wine exports. Its share price is still almost 24% lower than it was in January 2020.

Of course, the company could benefit if Australia’s trade relations with China were to thaw. However, even if they don’t, Treasury Wines is still posting solid growth.

The company’s earnings jumped 17% last half, while its post-tax profit lifted 72.5% to $188 million.

And Morgans is tipping that to continue, with Treasury Wine forecast to post double-digit earnings growth from now until financial year 2025.

Motley Fool contributor Brooke Cooper does not own shares in Treasury Wine Estates Ltd.

Xero Limited

What it does: Xero provides cloud-based accounting software for accountants, bookkeepers, small business owners, and financial advisors. Users can access the software anywhere, at any time. It provides a number of automated and time-saving features.

By Tristan Harrison: The Xero share price has taken a steep dive since November 2021, down 45%. I think it’s now great value, especially considering the company continues to grow strongly.

Xero’s FY23 half-year operating revenue jumped by 30% to $658.5 million, while its total subscribers increased by 16% to 3.5 million. It also has a very high gross profit margin of 87%.

Strong gross profit growth enables the business to invest heavily for growth (marketing, as well as research and development). I think this investment is the best plan for long-term shareholder value creation.

Xero is expecting its profit margins to improve in the coming results, which I think will show how profitable the underlying operations actually are. With a retention rate of over 99%, I think it has a very promising future.

Motley Fool contributor Tristan Harrison does not own shares in Xero Limited.

The post Top ASX growth shares to buy in March 2023 appeared first on The Motley Fool Australia.

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More reading

• Analysts say these exciting ASX growth shares are buys this month
• Top ASX small-cap shares to buy in March 2023
• How I would invest in ASX shares to retire rich
• Why are ASX 200 tech stocks like Xero having such a stellar start to the week?
• These are the ASX 200 shares to buy in March: experts

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics, ReadyTech, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has positions in and has recommended Nanosonics and Xero. The Motley Fool Australia has recommended ReadyTech and Treasury Wine Estates. 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 wanting to make some new additions to your portfolio?

If you are, then analysts think the two ASX 200 shares listed below could be worth considering. Here’s why these shares are rated as buys:

Altium Limited (ASX: ALU)

The first ASX 200 share that could be a great buy and hold option is Altium.

Altium is a software company that focuses on electronic design systems for 3D printed circuit board (PCB) design and embedded system development. It is used by design teams of all shapes and sizes. This includes the likes of BAE Systems, Dell, Microsoft, NASA, and Tesla.

Thanks to favourable industry tailwinds and its leadership position, management is forecasting strong revenue growth in the coming years. It is is aiming to achieve US$500 million in revenue by 2026, which will be more than double FY 2022’s revenue of US$220.8 million.

Morgan Stanley is a fan of the company. It currently has a buy rating and $43.50 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat could be another ASX 200 share to buy and hold.

It is a gaming technology company with a portfolio of industry-leading poker machines, a lucrative digital business, and a fledgling real money gaming business. The latter recently launched with a deal with BetMGM.

Goldman Sachs is confident in the company’s long term outlook. This is due to Aristocrat “holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now launching into the growing iGaming market.”

Goldman has a buy rating and $42.80 price target on its shares.

The post Buy and hold these ASX 200 shares: brokers appeared first on The Motley Fool Australia.

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More reading

• 2 ASX growth shares to buy: Goldman Sachs
• 5 high-profile ASX 200 shares that will trade ex-dividend on Monday
• How I’d invest $20,000 in ASX 200 shares to aim for a million
• Buy these 3 ASX growth shares this month: experts
• Guess which ASX 200 share is giving another $500 million back to its shareholders

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 Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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Are you looking for some ASX 200 dividend shares to add to your income portfolio?

If you are, then experts think the two listed below could be top options this month. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share that has been tipped as a buy is Coles.

It is one of Australia’s largest retailers with a portfolio of over 800 supermarkets and over 900 liquor retail stores.

Citi was pleased with the company’s first-half performance and remains positive on the company’s outlook. It said:

Coles reported 1H23 EBIT from continuing operations of $1,058 million, ~6% ahead of Citi and consensus. Steven Cain leaves the business in good shape and we see Leah Weckert as the natural successor. Sales momentum has improved, owing somewhat to easier comps. Considering the historical 1H/2H skew of earnings, there appears to be upside to FY23e consensus EBIT.

The broker currently has a buy rating and $20.20 price target on its shares.

As for dividends, Citi is expecting fully franked dividends per share of 69 cents in FY 2023 and 71 cents in FY 2024. Based on the current Coles share price of $17.76, this implies yields of 3.9% and 4%, respectively.

Wesfarmers Ltd (ASX: WES)

This conglomerate could also be an ASX 200 dividend share to buy.

It may not own Coles anymore, but it still has a range of high quality businesses such as Bunnings, Covalent Lithium, Kmart, Officeworks, and Priceline.

Analysts at Morgans note that the company’s recent half-year result “was marginally below our forecasts but well above consensus.” Nevertheless, the broker sees plenty of value in its shares at the current level. It said:

Trading on 21.9x FY24F PE and 3.9% yield, we continue to see WES’s valuation as attractive for a high-quality business with a diversified group of retail and industrial brands, a solid balance sheet, and an experienced leadership team that will continue delivering long-term value for shareholders.

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

In respect to dividends, the broker is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2023. Based on the current Wesfarmers share price of $49.94, this will mean yields of 3.6% and 3.8%, respectively.

The post Experts name 2 ASX 200 dividend shares for a passive income boost appeared first on The Motley Fool Australia.

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More reading

• I’d aim for $1 million, thanks to just a few ASX shares
• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• ASX investors: How to earn $533 each month in passive income
• Top ASX dividend shares to buy in March 2023
• Why Brainchip, Coles, Karoon Energy, and Pilbara Minerals shares are tumbling

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 Coles Group and 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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S&P/ASX 300 (ASX: XKO) shares closed down 0.8% today, with multinational human services provider APM Human Services International Pty (ASX: APM) following suit, down 3.51% to $2.25.

APM provides various human services including disability employment and aged care assessments.

Over the past three months, APM shares have tumbled 15%, and one company director is taking full advantage of the fall.

Who just invested $2 million in this ASX 300 share?

She’s not just a director, she’s the founder and executive chair of APM, Megan Wynne.

A change of director’s interest notice lodged with the ASX reveals Wynne bought 845,000 shares in the ASX 300 human resources business in two parcels last Wednesday and Friday.

Wynne paid a total of $1,985,224 for her increased holdings.

This means she paid an average price of $2.35 per share for her extra APM stocks.

These were on-market trades made by Wynne indirectly through a family trust.

Why did this company director buy?

Well, that’s a question we can’t answer for sure. But it’s fair to assume that Wynne sees value in her ASX 300 company at the share price it’s trading at today.

After all, this is her own money she’s spent, not company money.

Looking at APM shares over the past 12 months, we see that the ASX 300 share has had a torrid time.

The red line is certainly choppy, and over this period the APM share price has fallen by 19.3%.

By comparison, ASX 300 shares have risen by a collective 4%.

APM share price history

Since listing in November 2021, APM shares have struggled to beat their IPO offer price of $3.55.

The ASX 300 company had a highly successful initial public offering (IPO), raising about $982.1 million via the issue of 276.7 million shares.

But since it began trading, the ASX 300 stock has never traded above its offer price. It’s returned to $3.55 a few times but has never exceeded it.

Although the company is 27 years old, it’s comparatively very young compared to other ASX 300 shares.

So, it’s early days for APM shareholders. It’s certainly not uncommon for newer ASX shares to not produce a capital gain in their first 15 months of trading, so let’s keep some perspective here.

APM does pay dividends though, with its first one paid in September 2022. That dividend was 5 cents per share. This represented a dividend yield of 1.61% at the time when the shares were trading for $3.10.

APM will pay its second dividend — also 5 cents per share — on 29 March. It goes ex-dividend tomorrow.

At today’s share price, APM currently offers a trailing 12-month dividend yield of 4.44%.

The post This ASX 300 director just loaded up on $2 million worth of her company’s shares appeared first on The Motley Fool Australia.

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• Should I buy CSL shares while they’re under $300?
• Analysts say these exciting ASX growth shares are buys this month
• Top brokers name 3 ASX shares to buy today
• Here’s how much I’d need to invest in NAB shares to generate a $200 monthly income
• Why Westpac shares are a smart buy for ASX bargain hunters

Motley Fool contributor Bronwyn Allen 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 APM Human Services International. 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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Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Temple & Webster Group Ltd (ASX: TPW)

The first ASX growth share that analysts are bullish on is Temple & Webster.

It is Australia’s leading online retailer of furniture and homewares. It operates largely through a drop-shipping model, which is complemented by a private label range sourced directly by management.

While a weaker than expected trading update with its half-year results spooked the market last month, Goldman Sachs believes the selloff that ensued has created a buying opportunity. Particularly given its belief that the soft update reflects “the lapping of omicron rather than a deterioration in underlying trends.”

In light of this, the broker has put a buy rating and $6.50 price target on the company’s shares. It adds:

The long term structural growth opportunity is unchanged: we forecast a 21% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration.

Xero Limited (ASX: XRO)

Another ASX growth that has been named as a buy is Xero. Xero is a global small business platform which provides its 3.3 million global subscribers with a core accounting solution, as well as payroll, workforce management, expenses and projects solutions.

In addition, Xero provides access to financial services, an ecosystem of more than 1,000 connected apps, and more than 300 connections to banks and other financial institutions.

Citi is a fan of the company and is forecasting very strong growth over the coming years. And while the current operating environment is not ideal, the broker believes that things are actually better than expected. It commented:

Our analysis of company insolvency and formation data points to normalising trends, with insolvency increasing and new business formation slowing in the Dec quarter across most markets except for the UK. However, except for NZ, the increase in insolvencies in 2H23e to date is tracking below our 2H23e churn assumptions. Website visits and app downloads are slowing across most markets; however, we see this as less correlated with subscriber growth but do note that add-on app downloads (Xero Me, Planday) are seeing good growth, which is positive for ARPU.

Citi has a buy rating and $92.40 price target on the company’s shares.

The post Analysts say these exciting ASX growth shares are buys this month appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech stocks like Xero having such a stellar start to the week?
• 2 ASX growth shares to buy: Goldman Sachs
• These are the ASX 200 shares to buy in March: experts
• 3 incredible ASX 200 growth shares to buy: analysts
• These are my top ASX 200 growth shares to buy today

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 Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Core Lithium Ltd (ASX: CXO)

According to a note out of Macquarie, its analysts have retained their outperform rating on this lithium miner’s shares with an improved price target of $1.50. This follows news that the company’s drilling activities have led to the more than doubling of the Finniss Lithium Project mineral resource estimate. The Core Lithium share price is trading at 96.7 cents this afternoon.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $27.00 price target on this medical device company’s shares. Fisher & Paykel Healthcare remains Goldman’s top pick in the healthcare sector. The broker believes the company is now on the correct side of an earnings inflection cycle. This is being driven predominantly by demand, but importantly compounded by a lower-risk margin recovery profile. The Fisher & Paykel Healthcare share price is fetching $24.31 today.

IGO Ltd (ASX: IGO)

Analysts at Citi have retained their buy rating and $17.10 price target on this battery materials miner’s shares. Although the broker suspects that lithium shares could struggle in the near term due to lithium price weakness, it remains positive on IGO due partly to its attractive valuation. In addition, the broker believes that lithium prices could rebound when industry restocking picks up in the coming months. The IGO share price is trading at $13.38 on Wednesday.

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

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More reading

• 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?
• Here are the 10 most shorted ASX shares this week

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman and Tyro Payments. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Tyro Payments. 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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National Australia Bank Ltd (ASX: NAB) shares offer investors an impressive dividend yield. It’s one of the biggest dividend payers on the ASX. But, how much would an investor need to put into the S&P/ASX 200 Index (ASX: XJO) bank share to receive $200 per month? I’ll answer that in this article.

Owning NAB for passive income could be a better idea than Commonwealth Bank of Australia (ASX: CBA) because of the relative valuation difference between the two, resulting in a stronger yield for NAB shareholders.

I’ll show you what I mean.

According to Commsec, the NAB share price is valued at under 12 times FY23’s estimated earnings, whereas CBA shares are priced at more than 16 times FY23’s estimated earnings.

CBA is projected to pay an annual dividend of $4.40 per share in FY23, which translates into a forward grossed-up dividend yield of 6.4%, according to Commsec numbers.

NAB shares could pay an annual dividend per share of $1.72. This translates into a potential grossed-up dividend yield of 8.35%.

Monthly dividend income goal

NAB doesn’t pay a dividend every month. Instead, it pays a dividend every six months.

So, I think it’s better to think of the goal of $200 per month as an annual target of $2,400, which can then be divided into 12 equal amounts.

I’m also going to ignore the effect of franking credits for this scenario because franking credits can have a different impact on different investors, depending on their tax situation. For low-income earners, the franking credits would be a bonus.

To receive $2,400 of dividend income in 2023, using the current projections, I’d need to own 1,396 NAB shares.

At the current NAB share price of around $29.40, an investor would need to allocate around $41,000 to receive the desired amount.

NAB is currently predicted to increase its dividend each year to FY25. By the 2025 financial year, the ASX 200 bank share could be paying an annual dividend per share of $1.78. If an investor owned 1,396 NAB shares, that would mean an annual cash dividend income of $2,485. As a monthly amount, that would translate into $207.

Getting a high dividend yield and income growth seems like a good combination to me.

Foolish takeaway

Looking at all of the ASX 200 bank shares on offer, and the valuations, NAB is one of my preferred names in the industry.

I like some of the other banks as well, but I particularly appreciate the job that NAB’s CEO Ross McEwan has done since taking over the leadership role. He has gotten the bank to succeed at the basics while being focused on the future.

The post Here’s how much I’d need to invest in NAB shares to generate a $200 monthly income appeared first on The Motley Fool Australia.

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More reading

• Own NAB shares? Here’s why the ASX 200 bank is facing Federal Court action
• ASX 200 bank shares slump could continue: Morgan Stanley
• Buy NAB and this ASX passive income share: analysts
• Should I buy NAB shares at $29?
• Watch out CBA: This ASX 200 bank share is rapidly growing

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

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Due to recent market volatility, there are potentially quite a few bargains on the Australian share market right now.

One of those bargains could be Westpac Banking Corp (ASX: WBC) shares based on what brokers are saying.

Are Westpac shares a bargain buy?

At present, there are a large number of brokers that are recommending Australia’s oldest bank as a buy. This includes the likes of Citi, Goldman Sachs, Morgan Stanley, Morgans, and UBS.

And while these brokers exhibit varying degrees of bullishness, each of their price targets imply potential upside of greater than 15% from current levels.

And that’s not including the dividends that Westpac’s shares will provide over the next 12 months. According to CommSec, the consensus estimate is for a dividend of $1.38 per share in FY 2023.

Based on the current Westpac share price of $22.08, this will mean a 6.25% fully franked yield for investors.

Even greater upside potential

One of the more bullish brokers is Goldman Sachs. It currently has a conviction buy rating and $27.74 price target on Westpac’s shares. This implies potential upside of almost 26% for investors from current levels.

Its analysts recently highlighted that the bank’s shares are “trading at a 22% 12-month forward PER discount to peers.” Whereas historically they have traded at just a 2% discount. This is despite the bank having arguably one of the strongest outlooks in the sector at present. Goldman adds:

We are Buy-rated (on CL) and continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) despite WBC revising its FY24E cost target to A$8.6 bn (from A$8.0 bn), the bank’s performance on cost management remains strong in this inflationary environment with a 9% step down in costs expected over the next two years, iii) the business is still investing effectively in its franchise, and iv) we note the stock is trading at a notable discount to peers, versus the historical average discount of 2%.

All in all, Goldman appears to believe this could make Westpac shares a bargain buy right now.

The post Why Westpac shares are a smart buy for ASX bargain hunters appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares slump could continue: Morgan Stanley
• How I would invest in ASX shares to retire rich
• Buy Westpac and this high-yield ASX dividend share: analysts
• Top ASX dividend shares to buy in March 2023
• Westpac predicts 7 interest rate cuts from 2024, but…

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.

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National Australia Bank Ltd (ASX: NAB) shares are down 0.9% in afternoon trade, broadly in line with the wider market decline. 

The S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $29.71 per share. Shares are currently changing hands for $29.44 apiece.

That’s how NAB shares are moving on Wednesday.

Now, here’s why the big bank is facing Federal Court action. 

How much unpaid overtime is ‘reasonable’?

In news that doesn’t appear to be having a material impact on NAB shares today, The Australian Financial Review reports that the Finance Sector Union (FSU) is launching a Federal Court action against the bank today.

The union is acting on behalf of four managers who allege their work weeks stretched to as much as 55 to 80 hours, with no extra pay for the overtime. The managers are seeking unspecified compensation.

According to FSU national secretary Julia Angrisano:

While they are nominally employed to work 38 hours a week, their actual hours can range between 10 and 16 hours a day, every day of the week, in order to meet excessive workload demands.

Angrisano added that many NAB managers have to do “unpaid work on weekends to complete assigned tasks or risk being sacked”.

The excessive hours, she said, are negatively impacting “their health, their relationships, the time available to spend with their families and their overall quality of life”.

According to NAB’s enterprise agreement, the managers are classified amongst a group that’s not entitled to overtime penalties, and their normal 38 hours work week allows for “reasonable overtime”.

It will be up to the courts to pass judgement on this tricky situation.

But if the union’s action on the four managers’ behalf is successful, NAB shares could face some headwinds, as the penalty may be significant.

“If we win this case, the FSU will be demanding the bank compensate up to 10,000 staff who are also subject to similar levels of excessive unpaid work,” Angrisano said (quoted by the AFR). The union is also seeking “substantial” punitive penalties against NAB.

And the FSU has other big fish in its crosshairs as well.

“This case is just the start,” Angrisano said. “We know the culture of the big banks exploits workers and we will be going after them as well.”

How have NAB shares been tracking?

As you can see in the chart below, NAB shares have been in decline over the past month, but remain up 3% since this time last year.

The post Own NAB shares? Here’s why the ASX 200 bank is facing Federal Court action appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares slump could continue: Morgan Stanley
• Buy NAB and this ASX passive income share: analysts
• Should I buy NAB shares at $29?
• Watch out CBA: This ASX 200 bank share is rapidly growing
• Why did the NAB share price tumble 6% in February?

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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