Do you own shares of Argo Investments Limited (ASX: ARG)? If you do, congratulations.

It’s set to be a good day for Argo shareholders, despite what the market might do. That’s because it’s dividend payday for Argo.

Argo is one of the oldest listed investment companies (LICs) on the ASX, having opened its doors way back in 1946. It has some considerable ASX pedigree, having been once chaired by the Australian cricketing legend Sir Donald Bradman. It also has a strong record of paying dividends throughout all 76 years of its history.

Despite the rise of the exchange-traded fund (ETF), Argo is still going strong today. Like most LICs, this company invests its capital on behalf of its shareholders. Argo holds a broad and diversified portfolio of ASX shares.

As of its latest update covering August 2022, its top five holdings were Macquarie Group Ltd (ASX: MQG), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

What is Argo shares’ final dividend worth?

But let’s get down to the dividend. So last month when Argo announced its FY22 full-year earnings results, the LIC declared a final dividend of 17 cents per share, fully franked as is typical with Argo. That represented a pleasing 21.4% increase over last year’s final dividend of 14 cents per share.

It’s also higher than the 16 cents per share interim dividend investors received back in August. It brought Argo’s dividend total for FY22 to 33 cents per share, another happy rise from FY21’s total of 28 cents.

Argo shares traded ex-dividend for this latest payment back on 26 August. But, hallelujah, today happens to be payday. Yes, Argo investors will receive the final 17 cents per share payment today.

Investors will either take delivery of the cash or, if they’ve opted into the LIC’s dividend reinvestment plan (DRP), additional shares in the company.

At yesterday’s closing share price, this dividend gives Argo a dividend yield of 3.62% (or 5.16% grossed-up with the full franking).

The post Own Argo Investments shares? Get ready to receive your dividends appeared first on The Motley Fool Australia.

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More reading

• Why did the WAM Capital share price outperform its sector today?
• How do Argo shares measure up to other LICs like AFIC?

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 positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group 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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If all’s gone according to plan, the Ethereum (CRYPTO: ETH) Merge should officially be complete this morning.

If you’re unfamiliar, the Ethereum Merge refers to the crypto’s transition from a proof of work (PoW) protocol to a proof of stake (PoS) protocol.

We won’t take a deep dive into the details of the transition here.

But in a nutshell, PoS will see an end to Ethereum miners and usher in a new era of validators. Validators will stake some Ether holdings to validate transactions and maintain the security of the blockchain.  This requires far fewer electricity-hungry computers to maintain and should see energy consumption to run the network fall by a whopping 99%.

In a world gripped by an energy crisis and struggling to reduce carbon emissions that’s obviously good news.

But will the Ethereum Merge leave the blockchain more vulnerable to hackers?

Crypto investors concerned over security post Ethereum Merge

For some expert insight into that question, we defer to Ray Brown, head of marketing at CoinSpot.

As to whether the PoS model will make the crypto network less secure, Brown said, “While there are a couple of reasons for this line of thinking, it is likely that these concerns aren’t very significant.”

Rather than diminish security, Brown believes crypto investors could look forward to greater security. “The Ethereum Merge will, in all likelihood, actually lead to a more secure chain,” he said.

That’s because the Mainnet (PoW) version of the blockchain is shutting down. In recent months it’s been operating as the central chain but in tandem with the new Beacon (PoS) version as developers extensively tested the new protocol.

According to Brown:

With the conclusion of this phase of the Merge, all transactions will now operate on only one chain, as opposed to two. This will theoretically insulate ETH from more hacking attempts than its current protection, as there will now be fewer ‘access’ points and discrepancies between the two systems for hackers to exploit.

Will this impact the value of NFTs?

Investors who’ve bought non-fungible tokens (NFTs) have raised separate concerns about the Ethereum Merge. Namely that Ethereum miners might do a ‘hard fork’ into a different version of Ethereum that still runs on the PoW protocol.

“Ostensibly, this could lead to duplicate NFTs, which has some investors worried that the Merge may reduce the value of their digital collectibles,” Brown said.

But Brown doesn’t think NFT investors need be overly worried, adding:

This concern presumes that markets will recognise the legitimacy of a forked proof-of-work Ethereum blockchain. We’ve seen already that many digital currency exchanges and NFT platforms have announced they will only recognise Ethereum transactions made on the new proof-of-stake blockchain. This includes OpenSea, who are the biggest NFT marketplace.

What else to expect post the Ethereum Merge

The Ethereum Merge has been underway for some two years already, with plenty of glitches experienced and ironed out in testing over that time.

But crypto investors should still be ready for some hiccups over the coming weeks.

“Ethereum is offering a very high bounty on bug hunting, which indicates that they do anticipate some growing pains post-Merge,” Brown said. “This, combined with a value proposition that is yet to come true means investors could anticipate some price volatility in the weeks following the Merge’s conclusion.”

The post Will the Ethereum Merge leave the crypto at greater risk of hacking? appeared first on The Motley Fool Australia.

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• As stocks swoon, can crypto get its mojo back?
• Why Bitcoin plunged on Tuesday
• The Bitcoin price has tumbled 50% in 2022 but this expert says crypto ‘is here to stay’
• What’s supporting the Dogecoin price in September?
• Will the Ethereum price continue to outperform in 2022 post Merge? Expert panel weighs in

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 positions in and has recommended Ethereum. The Motley Fool Australia has positions in and has recommended Ethereum. 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 Nearmap Ltd (ASX: NEA) share price is up 101.94% from 30 June to date.

That’s a huge increase. In dollar terms, shares in the aerial survey company that cost investors $1.03 apiece three months ago are now swapping hands for $2.07.

It’s even more impressive when considering that the technology sector has been hit by inflation and the impact of rising interest rates. Despite these headwinds, though, the S&P/ASX 200 All Technology Index (ASX: XTX) has also managed to lift 13.17% over the same period.

Investors might wonder if Nearmap’s shares are now expensive to buy and what upside return they could gain from owning them.

Let’s cover some metrics for Nearmap shares and then hear what the experts have to say.

Are Nearmap shares overvalued or beginning to ripen?

A quick glance at some of the company’s metrics might provide hints but not the full story.

Nearmap’s price-to-sales (P/S) ratio is around 7.12, while the industry’s P/S ratio is roughly 39.06. This means it’s significantly less expensive to buy a unit of sales in Nearmap than the aggregate of its peers in the same industry.

Analysts at QVG Capital also believe Nearmap has potential, as shares of Nearmap are part of the company’s portfolio.

Analysts note that although its ratios are not the best of the best, it may not be the right benchmark to use in the first place, stating that “we know near term earnings are the wrong lens [to] view these companies”.

Tech companies often have a long runway to build up to significant earnings and profitability and can be the hardest hit by rising interest rates.

Despite this, QVG Capital believes Nearmap holds similar potential to WiseTech Global Ltd (ASX: WTC) and IDP Education Ltd (ASX: IEL), stating in a memo to clients that they offer “high customer value propositions and good unit economics tend to surprise positively along the journey”.

So it might not be too late to pick up Nearmap shares, at least from their point of view.

Nearmap share price snapshot

The Nearmap share price is up more than 34% this year to date. That’s a significant increase over the S&P/ASX 200 Index (ASX: XJO), which is down by 9.70% for the same period.

The company’s market capitalisation is currently $1.04 billion.

The post Up 100% in 3 months, is it too late to buy Nearmap shares? appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Nearmap share price on Wednesday?
• 2 ASX shares that look expensive but have years of growth ahead: QVG Capital
• Why EML, Nearmap, NIB, and Nick Scali shares are charging higher
• Nearmap share price jumps 5% on takeover update
• ASX reporting season weekly wrap: Winners and losers

Motley Fool contributor Matthew Farley 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 Idp Education Pty Ltd, Nearmap Ltd., and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Nearmap 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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Something about human psychology induces most people to invest in just one stock in a particular industry.

There is nothing stopping us from investing in runner A, runner B, and runner C in a race, but most ASX investors will back one and stick with it.

The phenomenon isn’t just limited to amateur investors. Professionals do it too.

Wilsons associate analyst Rob Crookston, for example, explained why his team recently sold out of one media ASX share to pick up its rival:

Two almost identical companies

Wilsons’ focus portfolio this week announced that it is exiting its position in News Corporation (ASX: NWS) in order to buy into Nine Entertainment Co Holdings Ltd (ASX: NEC).

“Both News Corporation and Nine Entertainment are media stocks, and we think this is a like-for-like switch in terms of portfolio characteristics, but we have a preference for NEC at its current price and current fundamentals,” Crookston said in a memo to clients.

News is best known for its tabloid newspapers and Foxtel pay television service, while Nine is famous for its broadsheet newspapers and free-to-air television network.

But that’s not where the similarities end. News has significant ownership of ASX-listed online real estate classifieds provider REA Group Limited (ASX: REA) while Nine has a big stake in REA’s rival Domain Holdings Australia Ltd (ASX: DHG).

The Wilsons team cited seven reasons why it changed channels:

• Nine’s fundamental metrics appear more favourable relative to News
• Nine has a higher quality earnings base (excluding real estate)
• Nine is less cyclical and more resilient than the market is implying
• Domain looks to be at a better valuation point than REA Group
• Nine has a proven history of organic growth
• Nine has higher expected returns to shareholders
• Nine has valuation appeal

Crookston admitted Nine’s earnings could be lower than News, but it was a positive trade-off.

“We think the risk is to the upside while Nine transitions to digital and subscription-based revenue,” he said. 

“NEC adds a quality cyclical to the focus portfolio, at a lower multiple and a higher dividend yield than the portfolio.”

News Corp shares are down 21.8% year to date while Nine is down about 30%. Nine pays out a juicy dividend yield of 6.8%, compared to News’ 1%.

The post Changing channels: Expert just dumped this ASX 200 share to buy its competitor appeared first on The Motley Fool Australia.

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More reading

• One very famous and one very obscure ASX share to buy: fund manager
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares trading ex-dividend tomorrow
• Why A2 Milk, Life360, Nine, and Ramsay shares are dropping

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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If you’re wanting to diversify your portfolio with some international investments, then you could consider exchange traded funds (ETFs).

That’s because ETFs give investors easy access to shares from almost all corners and sectors around the world. All through a single investment.

But which ETFs should you consider? Listed below are two ETFs that are popular with investors. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index that provides investors with exposure to the leading companies in the growing global cybersecurity sector.

BetaShares highlights that in a world where smart, connected devices already far outnumber humans, investors are increasingly recognising the growth opportunities presented by the global cybersecurity sector.

This bodes well for the companies included in the funds which are working to reduce the impact of cybercrime. This includes cybersecurity companies such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Despite the tech selloff in 2022, the ETF has still generated a return of 18.7% per annum over the last five years.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. It gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages or moats.

An example of a moat is a company with high switching costs. VanEck highlights that switching costs give a company pricing power by locking customers into a unique ecosystem.

Another example is a network effect. It is present when the value of a product or service grows as its user base expands. This means that each additional customer increases the product or service’s value exponentially.

Among the ~50 stocks included in the portfolio, you’ll find the likes of Adobe, Amazon, Boeing, Constellation Brands, Intel, Mercadolibre, Meta, and Microsoft.

Over the last five years, the ETF has provided investors with a total return of 15.7% per annum.

The post Don’t miss out on these high quality ASX ETFs appeared first on The Motley Fool Australia.

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• 2 excellent ETFs for ASX investors to buy this month
• How I’d invest $10,000 in ASX shares if I were saving for a house
• I rate these top ASX growth shares as buys in September
• 3 excellent ETFs for beginner investors to buy
• 2 popular ETFs that could be buys for ASX investors

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 BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Elvest Co portfolio manager Adrian Ezquerro explains the two ASX shares he thinks are buys right now.

Hottest ASX shares

The Motley Fool: What are the two best stock buys right now?

Adrin Ezquerro: Good question. It’s always topical. I think notwithstanding some of the economic challenges we’ve just discussed, there’s certainly a lot more value apparent now in small caps than there was for much of last year. I could probably talk to a bunch of opportunities that we’re pretty excited about but the two I’d highlight to start with would be News Corporation (ASX: NWS) and Fiducian Group Ltd (ASX: FID). 

First thing with News Corp, it’s an interesting one. Most of its market value is actually underwritten by its digital real estate division.

That houses a 61.4% stake in REA Group Limited (ASX: REA) and it’s also got an 80% ownership stake in Move Inc. That’s the owner and operator of Realtor.com in the [United] States. That’s the number two portal, much like Domain Holdings Australia Ltd (ASX: DHG) here.

Now, based on things like market share, profitability, margins, competitive strength, we genuinely believe that REA is one of Australia’s highest quality businesses and so it’s a hugely valuable holding for News Corp and, in our view, that is overlooked. 

But, of course, beyond digital real estate, the business also comprises several other really highly cash-generative business units as well. That’s things like subscription video, its Dow Jones business unit, news and information service, and it’s also got a strong position within book publishing.

If you look at it in aggregate, we think REA and Move Inc probably have an aggregate value of close to about $14 billion… That compares to News Corp’s market capitalisation of about $15 billion. The implied value of the balance of the business, which generated EBITDA of about US$1.1 billion in FY22, is valued at about AU$1 billion — less than one times EBITDA. 

In our view, not only does News Corp house really high quality assets, it’s particularly cheap at about 15 times earnings and free cash flow yield of over 8%. Notwithstanding some of the headwinds facing advertising, we’re pretty optimistic about the prospects for a solid investment return from this entry point.

The second stop, Fiducian Group, stock code FID, it’s another one I think it’s worth highlighting because it tends to fall under the radar a bit, particularly in small cap land. It’s an integrated financial services provider. It’s got three key operating divisions: financial planning, platform administration, and funds manager. 

It’s been around for a long period of time. It was founded in 1996 by Indy Singh and despite a pretty incredible track record of self-funded growth, and we think that’s a really important driver of per-share value creation, it’s got [a] relatively low profile. It’s not covered by any brokers, and yet it’s done particularly well year-on-year for many years now.

Today it’s got about $11.2 billion of funds under management advice and administration. And as that grows, of course, that is a value creator in itself. We think it’s pretty unique in this market in that its financial planning division is seen as an enabler of flows to its high margin platform administration and funds management divisions. We say it’s unique because conceptually, it’s like having a high performing diversified funds management group without any key person risk, combined with a really high margin platform business… and that’s all sitting in the one structure. 

The positive long-term performance of the Fiducian funds means that we’re seeing great outcomes for Fiducian’s clients, to advisors and, of course, shareholders that have benefitted for many years.

As it stands, over two-thirds of Fiducian’s funds under advice are on the company’s administration funds management platform. That’s where a lot of the value is created in terms of earnings. 

The recent results have been good. We think Fiducian will continue growing earnings at double-digit rates in the coming years as they’ve done for quite a few years in the past. In fact, we’re forecasting compound growth in the order of 15% to 20% over the next three or four years. 

Now, a big driver of that, and it’s important to call out, relates to the transition of funds under advice from the recently acquired financial planning arm of the People’s Choice Credit Union, based out of South Australia. That’s added $1.1 billion of funds under advice. We think maybe the market’s under-appreciating the impact this will have on earnings over the coming three years. 

To sum up our thinking on Fiducian, it’s another high quality founder-led business. It’s got strong industry position, bright prospects, and a strong balance sheet. It’s a consistent cash generator and it continues to trade at a pretty big discount to our values, so at this level, we remain quite happy holders.

MF: I see it gives out a 4% dividend yield as well, which is handy.

AE: Yeah, and it’s consistently paid that as well. If you look at the chart of earnings and dividends over the last 10 years, it’s remarkably consistent. The executive chairman owns about a third of the business, so there’s a lot of insider ownership, a lot of alignment. They’ve grown the business both organically and via acquisition, but they haven’t issued shares to do that. That’s why we feel it’s a powerful driver of value creation because it’s still under growth and you can see in terms of the capital allocation decisions, they’ve been really sensible. Again, that often goes hand in hand with a founder leading the business.

MF: That all sounds so good. I wonder why it’s so under the radar?

AE: It’s relatively small. Market cap is circa $230 million and, as I’ve just said, there’s significant insider ownership, so the free float is relatively low. It’s not as liquid, so that may remove certain brokers and funds from considering it, which is fair enough. But for the individual investor that’s got a decent long-term time horizon, they might be managing their self-managed super fund, it’s probably something worth having on the watch list.

The post One very famous and one very obscure ASX share to buy: fund manager appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares trading ex-dividend tomorrow
• 2 under-appreciated ASX shares that Goldman Sachs rates as buys
• Here are 2 ASX 200 shares that experts rate as buys

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be quality options.

Analysts have recently rated these dividend shares as buys. Here’s what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share that has been tipped as a buy is Super Retail.

According to a note out of Citi, its analysts have recently retained their buy rating on the retailer’s shares with an improved price target of $13.50.

Citi was pleased with Super Retail’s full year results and highlights the big improvements in its inventory position and the positive start to FY 2023. It commented:

Importantly, half of the $200 million lift in inventory in 1H22 reversed in 2H22. We believe that takes away at least part of the bear case downside in terms of lower margin risk as consumer spending softens. The trading update was robust, benefitting from cycling lockdowns and sustained consumer demand. We raise our earnings forecasts by ~14% in FY23e and ~1% in FY24e

As for dividends, Citi is forecasting fully franked dividends per share of 71 cents in FY 2023 and 66 cents in FY 2024. Based on the latest Super Retail share price of $9.84, this will mean yields of 7.2% and 6.7%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that is highly rated by analysts is Wesfarmers. It is the conglomerate behind a collection of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

The team at Morgans are very positive on the company and have an add rating and $58.40 price target on its shares. They like Wesfarmers due to its strong brands, talented management team, and balance sheet strength. The broker commented:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. [..] We see the pullback in the share price as a good entry point for longer term investors.

Morgans is also expecting some attractive dividend yields in the near term. It is forecasting fully franked dividend per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $46.14, this will mean yields of 3.9% and 4.1%, respectively.

The post 2 excellent ASX dividend shares experts rate as buys appeared first on The Motley Fool Australia.

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• Wesfarmers shares: Buy, hold, or fold?
• Wesfarmers share price drops 4%: Time to buy?
• What’s driving ASX 200 consumer shares on Tuesday?
• Why this top broker is tipping 15% upside for the Wesfarmers share price
• How I’d invest $10,000 in ASX shares if I were saving for a house

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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited and Wesfarmers 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.2% to 6,842.9 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red. This follows a disappointing night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.55% lower this morning. In the United States, the Dow Jones was down 0.55%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 1.4% lower.

Oil prices sink

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult finish to the week after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.7% to US$85.19 a barrel and the Brent crude oil price is down 3.4% to US$90.87 a barrel. There are concerns that large interest rate increases in the US could impact demand.

Aristocrat rated as a buy

The Aristocrat Leisure Limited (ASX: ALL) share price could be heading a lot higher from current levels according to analysts at Goldman Sachs. This morning the broker retained its buy rating and $43.00 price target on the gaming technology company’s shares. Its bullish view is “based on the strong D&D commitment and pipeline support for future growth, well diversified digital business, leverage to the rapidly recovering land-based business as well as strength in their balance sheet.”

Gold price tumbles

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish to the week deep in the red after the gold price tumbled overnight. According to CNBC, the spot gold price is down 2% to US$1,674.20 an ounce. Higher treasury yields weighed on the yield-less safe haven asset.

Endeavour remains a buy

The Endeavour Group Ltd (ASX: EDV) share price remains in the buy zone according to Goldman Sachs despite regulation changes in Tasmania. The state government has announced plans to introduce a state-wide player card system to provide harm protection to those most at risk of problem gambling. Goldman expects this to be immaterial to Endeavour’s business. As a result, it retains its buy rating and $8.10 price target.

The post 5 things to watch on the ASX 200 on Friday 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 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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Are you wanting to add some ASX growth shares to your portfolio following the market selloff?

If you are, then it could be worth considering the two shares that are listed below. Both have recently been named as buys by analysts and tipped to generate strong returns for investors. Here’s what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be worth considering following the market selloff is Aristocrat Leisure.

It is one of the world’s leading gaming technology companies with a portfolio of in-demand poker machines and a lucrative digital business named Pixel United. The latter is generating significant recurring revenues thanks to its millions of daily active users.

Analysts at Morgans are very positive on the company and recently named it on their best ideas list. Morgans has an add rating and $43.00 price target on its shares, which implies potential upside of 26% for investors. The broker commented:

ALL is a global market leader in the rapidly growing land-based gaming and mobile gaming industries. It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share for investors to look at following the selloff is enterprise software provider TechnologyOne.

It provides its high quality and sticky software to a range of customers. This includes those in the government, local government, financial services, health & community services, education, and utilities and managed services markets.

Analysts at Bell Potter are positive on TechnologyOne. They currently have a buy rating and $14.25 price target on the company’s shares, which implies potential upside of 22% for investors.

Bell Potter has been pleased with the company’s ongoing transition to become a software-as-a-service (SaaS) focused business and suspects that it could outperform its growth targets. The broker said:

Technology One has had an annual growth target of 10-15% growth in NPAT for a decade but we believe there is potential for the company to lift this annual target to 15-20% at some stage in the next few years.

The post Are these ASX growth shares buys after the market selloff? appeared first on The Motley Fool Australia.

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More reading

• Why I reckon the market has it totally wrong about this ASX tech share in 2022
• Analysts name 3 ASX growth shares to buy next week
• Top brokers name 3 ASX shares to buy today
• 2 discounted ASX shares I’d buy now and one I wouldn’t touch: expert
• Morgans names 3 of the best ASX shares to buy in September

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

Here’s why these ASX dividend shares have been tipped as buys:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

It is an industrial and office focused property company that was formerly known as APN Industria. Dexus Industria owns interests in office and industrial properties across the country that provide functional and affordable workspaces for businesses.

Morgans is a fan of the company. It recently commented:

Its analysts currently have an add rating and $3.25 price target on the company’s shares.

They are also forecasting attractive dividends per share of 17.3 cents in FY 2023 and 16.4 cents in FY 2024. Based on the current Dexus Industria share price of $2.70, this will mean yields of 6.4% and 6.1%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that has been named as a buy is the Healthco Healthcare and Wellness REIT.

It is a real estate investment trust with a focus on hospitals, aged care, childcare, life sciences, and primary care properties.

Goldman Sachs is very positive on the company and recently named it as one of its top picks in the sector. The broker commented:

[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.

Its analysts have a conviction buy rating and $2.14 price target on its shares.

In respect to dividends, Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.65 this will mean yields of 4.5% for investors.

The post Here are 2 ASX dividend shares experts say are buys appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy this month
• Brokers name 2 ASX dividend shares to buy

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

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