The Vanguard Australian Shares Index ETF (ASX: VAS) has the distinction of being the most popular exchange-traded fund (ETF) on the ASX. It’s also a rather unique ETF in that it remains the only index fund on the ASX boards that tracks the S&P/ASX 300 Index (ASX: XKO).

The ASX 300 is similar to the far more popular and widely-tracked S&P/ASX 200 Index (ASX: XJO). Many ETFs on the ASX track the ASX 200, but only VAS mirrors the ASX 300.

The ASX 200 and ASX 300 both track the 200 largest shares on the ASX by market capitalisation. But the ASX 300 (you guessed it) adds another 100 of the smaller shares on the ASX. Thus, this gives VAS a slightly larger and more diverse underlying portfolio of ASX shares.

Here at the Fool, we’ve looked at how this has given VAS a performance edge over other ASX 200 index funds before. But today, let’s see how the dividends from the Vanguard Australian Shares Index ETF stack up against an ASX 200 ETF.

VAS vs ASX 200 ETFs: Whose dividends are bigger?

So, like most index funds, VAS paid a dividend distribution every quarter. Its last four distributions have totalled approximately $6.26 in dividend distributions per unit. On the current VAS unit price of $87.13, this gives the ETF a trailing dividend distribution yield of 7.18%.

Let’s now compare that trailing yield to a popular ASX 200 index fund in the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

So, like VAS, IOZ also pays out quarterly distributions. Its last four payments amounted to approximately $1.61 per unit. On the iShares ASX 200 ETF’s last unit price of $28.27, this grants the ETF a trailing yield of 5.7%.

So VAS has come out on top in terms of yield over the past 12 months, at least against IOZ. But let’s look at another ASX 200 ETF, just to make sure.

This time, we’ll turn to the SPDR S&P/ASX 200 ETF (ASX: STW), one of the oldest index funds on the ASX. So again, we have four dividend distributions to tally up, which in this case gives us a total of $4.18 in distribution per unit over the past 12 months.

On the current unit price, this gives us a trailing yield of 6.58% on STW’s last pricing.

The differing yields between these various ETFs come down to a number of different factors. But what is clear is that the Vanguard Australian Shares Index ETF certainly comes out on top when assessing dividend income over the past 12 months.

The post Is the VAS dividend yield bigger than an ASX 200 index fund? appeared first on The Motley Fool Australia.

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More reading

• What goes up when the share market crashes?
• 5 proven investment strategies you can use to ride out a recession
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

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

Coles Group Ltd (ASX: COL)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this supermarket giant’s shares to $21.00. Citi has upgraded its earnings forecasts to reflect an expected boost to the company’s sales from inflation. The broker also feels that Coles’ shares are trading on attractive multiples compared to historical averages. The Coles share price ended the week at $18.94.

Objective Corporation Limited (ASX: OCL)

A note out of Goldman Sachs reveals that its analysts have upgraded this software company’s shares to a buy rating with an $18.90 price target. The broker made the move partly on valuation grounds following a de-rating in recent months. In addition, Goldman has increased conviction around Objective’s growth outlook as new products scale. It expects this to support an earnings per share compound annual growth rate of greater than 20% between FY 2022 to FY 2025. The Objective share price was fetching $16.61 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Macquarie have retained their outperform rating on this lithium miner’s shares with a trimmed price target of $4.00. The broker has visited the company’s Pilgangoora lithium-tantalum project and was pleased with what it saw. It believes that recent improvements suggest there’s potential for better than expected production at Pilgan and Ngungaju. Outside this, the broker is a big fan due to the significant free cash flow its operations are generating at spot lithium prices. The Pilbara Minerals share price ended the week at $2.87.

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

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• Why is the Pilbara Minerals share price having such a strong end to the week?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX lithium shares facing ‘insatiable’ demand amid global funding gap
• Goldman Sachs just slapped a buy rating on this ASX tech share
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 Objective Corporation Limited. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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 on the lookout for ASX 200 shares to add to your portfolio, then the two listed below could be worth a closer look.

Here’s what you need to know about these shares right now:

Altium Limited (ASX: ALU)

The first ASX 200 share to look at is Altium. It is an electronic design software provider that is best-known for its industry-leading Altium Designer and Altium 365 platforms. The company also has a parts search engine called Octopart that is performing exceptionally well thanks to supply chain disruption.

All in all, Altium appears well-placed for growth over the next decade. Particularly given the growing internet of things and artificial intelligence markets, which are driving strong demand for electronic design software.

Bell Potter currently has a buy rating and $34.00 price target on Altium’s shares. Its analysts “believe the company is on track to achieve its FY22 guidance and expect much better subscriber growth in 2HFY22 relative to 1HFY22.”

Xero Limited (ASX: XRO)

Another ASX 200 share that could be a top option for investors next week is Xero.

It is a cloud accounting platform provider with ~3.3 million subscribers globally. And while this is a large number and Xero is generating material recurring revenue from these subscribers, it is still only a fraction of its addressable market. Management estimates that to be 45 million subscribers, which means it has only capture 7.3% of its market so far.

Goldman Sachs is a big fan of Xero. Its analysts believe the company is “well-placed to navigate this uncertainty given the stickiness & importance of its software.”

The broker has a buy rating and $113.00 price target on Xero’s shares.

The post 2 stellar ASX 200 shares that brokers rate as buys appeared first on The Motley Fool Australia.

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• What’s happening with the Xero share price at the end of a strong week?
• Why are ASX 200 tech shares having such a stellar run today?
• Experts name 2 beaten down ASX shares that could be going cheap
• How did the Altium share price respond last earnings season?
• Broker gives its verdict on the Xero share price following new product launch

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 Altium and CSL Ltd. 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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Rising interest rates both in Australia and the US mean consumers have less money to spend on constructing new homes or even renovating existing ones.

It’s this logic that’s seen the share price for construction materials provider James Hardie Industries plc (ASX: JHX) drop 36% so far this year.

Fairmont Equities managing director Michael Gable agreed in a research note that the market was nervous about the business outlook.

“The weakness in housing has the potential to significantly impact James Hardie’s Repair and Remodel (R&R) segment, to the point that earnings weakness from the R&R segment are likely to overshadow the earnings benefit from internal initiatives.”

However, he thought this was overemphasised and that the stock actually represented excellent value for buying right now.

Repair and remodel business could be stronger than the market expects

Firstly, Gable pointed out that the R&R business is, by nature, pretty stable through different parts of the economic cycle.

“In the event of a mild recession, the R&R segment should prove resilient, given its growing portfolio of relevant products, a strong channel position and brand and marketing.”

Moreover the current rising interest rate environment is significantly different to the typical period when loan repayments are rising.

“Work-from-home trends post-COVID are still driving activity, supported by home equity,” said Gable.

“Home equity is at an all-time high buoyed by recent strong price gains and home equity loan balances remain low by historical standards.”

Even though James Hardie originated in Australia, these days North America is a dominant revenue drive.

And home owners are simply in a different situation to Australian mortgage holders.

“While there are numerous pressures on disposable incomes, the fact that 90%+ of mortgages in the US are 30-year fixed, the feed-through of higher rates is somewhat less systemic in their impact.”

Two potential stock price catalysts

So after the sell-off this year, James Hardie is a bargain buy at the moment, in Gable’s opinion.

“With expectations for flat-to-declining EPS growth in FY24, the shares are trading at a significant discount to its recent trading history,” he said.

“Having said that, James Hardie’s overweight to R&R vs new construction will also help brace earnings, given R&R downturns are shorter and not as severe as new home construction.”

The company is due to release its 2023 first quarter results on 16 August and will host an Investor Day next month.

Gable has flagged a couple of potential catalysts that could come out of those days:

• Greenfield expansion in US and Europe
• Update on the search for a new chief executive officer 

James Hardie shares closed Friday at $35.98.

The post Buy this ASX share now before it reports this month: expert appeared first on The Motley Fool Australia.

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

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With the cost of living continuing to rise, income investors may want to look at the dividend shares listed below for a boost to their income.

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

Charter Hall Retail REIT (ASX: CQR)

The first dividend share to look at is the Charter Hall Retail REIT. This REIT provides investors with exposure primarily to the supermarket anchored neighbourhood and sub-regional shopping centre markets in Australia.

The team at Macquarie are positive on the company. Last week the broker retained its outperform rating with an improved price target of $4.23.

It was pleased to see the company announce the acquisition of a portfolio of 18 Gull service stations in New Zealand and expand its partnership with Ampol Ltd (ASX: ALD).

In respect to dividends, the broker is expecting dividends per share to 24.5 cents in FY 2022 and 23.3 cents in FY 2023. Based on the current Charter Hall Retail REIT share price of $4.06, this implies potential yields of 6% and 5.7%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share to look at is Mineral Resources. This mining and mining services company could be a top option for income investors that aren’t averse to investing in the resources sector.

Goldman Sachs is very positive on the company and has a buy rating and $65.80 price target.

Its analysts like Mineral Resources due to its “compelling near term volume and earnings growth” and “attractive valuation” at ~0.9 times NAV and ~4 times FY 2023 EBITDA.

As for dividends, Goldman is forecasting fully franked dividends of 67 cents per share in FY 2022 and then 296 cents per share in FY 2023. Based on the latest Mineral Resources share price of $57.65, this will mean yields of 1.1% and 5.1%, respectively.

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

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• Buy this ASX share for its ‘undervalued’ lithium business: expert
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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 interested in boosting your portfolio with some exchange traded funds (ETFs)?

If you are, then you may want to look at the highly rated ETFs listed below. Here’s what you need to know about them:

iShares S&P 500 ETF (ASX: IVV)

The first ETF for investors to look at is the iShares S&P 500 ETF. This ETF aims to provide investors with the performance of the famous S&P 500 Index before fees and expenses. This index is home to the top 500 U.S. stocks.

BlackRock, which runs iShares, believes this can be used by Australian investors to diversify internationally and seek long-term growth opportunities for a portfolio.

The companies included in the fund need no introduction. Among the ETF’s largest holdings are the likes of Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.

Since this time in 2017, the iShares S&P 500 ETF would have turned a $10,000 investment into almost $19,000.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to even more shares than the iShares S&P 500 ETF.

The numbers change periodically as stocks are added and removed from the ETF. But generally speaking, there are approximately 1,500 of the largest listed companies from major developed countries.

Vanguard, which run the ETF, notes that the ETF offers low-cost access to a broadly diversified range of securities that allow investors to benefit from the long-term growth potential of the global economy. The fund manager appears to believe this makes it a good option for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giant such as Apple, Microsoft, Nestle, NVIDIA, Procter & Gamble, Tesla, and Visa.

Over the last five years, the Vanguard MSCI Index International Shares ETF would have turned a $10,000 investment into over $16,000.

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

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• 3 things I love about the iShares S&P 500 ETF right now
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• Is the Vanguard VGS ETF a good idea for dividends?
• 3 quality ETFs for ASX investors in July

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 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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If you’re an income investor searching for new dividend shares to buy, it could be worth checking out the two listed below.

Here’s why they are rated as buys right now:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.

The retailer is having a bit of a tough time this year and is expected to post a sharp decline in profits in FY 2022. This has been driven by significant COVID related disruptions across its operations.

However, management remains positive on the future. It highlights that “these [disruptions] should not be recurring in the medium term and the underlying business continues to perform well.”

This view is shared with the analysts at Wilson, which have an overweight rating and $4.50 price target on the company’s shares.

In addition, the broker is forecasting fully franked dividends per share of 19 cents per share in FY 2022 and 31 cents per share in FY 2023. Based on the current Adairs share price of $2.48, this will mean yields of 7.7% and 12.5%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a quality option for income investors next week is banking giant Westpac.

It has recently been tipped as a buy by analysts at Goldman Sachs with a $26.12 price target.

The broker believes Westpac provides strong leverage to rising rates. It expects the bank to benefit from the relative lack of domestic deposit repricing that has been seen to date following recent rates cash rate rises.

As for dividends, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. Based on the current Westpac share price of $21.96, this will mean yields of 5.6% and 6.15%, respectively, over the next two years.

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

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• How are ASX 200 bank shares responding to the RBA rate increase?
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• Will the RBA increase rates today?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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No one enjoys seeing the share market crash.

With the exception of those investors who’ve resorted to short selling, most of us stand to see our portfolios shrink when a bear market sinks in its teeth.

With a share market crash and bear market technically defined as a fall of more than 20%, the S&P/ASX 200 Index (ASX: XJO) hasn’t hit that rough patch yet during this year’s market sell-off.

From 13 August’s peak high through to the 20 June trough, ASX 200 shares fell 15.7%.

Since then, the ASX 200 has enjoyed a strong rebound, up 9%, which leaves the benchmark index down 8.1% from last August.

ASX tech shares have fared worse amid fast rising inflation and interest rates. Though they’ve also enjoyed some of the biggest rebounds since the June lows.

From mid-November 2021 through to mid-June the S&P/ASX All Technology Index (ASX: XTX) plunged 45%. Despite the big bounce since then, the All Tech Index remains down 24% since November.

So, as far as tech stock investors are concerned, a share market crash has eventuated.

What goes up when the share market crashes?

The current ructions hitting stocks around the world and raising fears of a share market crash largely stem from unexpectedly fast rising inflation and the resulting interest rate hikes from global central banks.

Rising geopolitical tensions and lingering supply issues from the pandemic haven’t helped either.

So where can ASX investors turn during a share market crash?

First, gold.

The classic safe haven metal has seen its value increase in six of the nine share market crashes between 1976 and 2020, according to GoldSilver.

During the ASX sell-off in 2022, gold hasn’t shot the lights out.

But the yellow metal hasn’t fared too badly. On 1 January an ounce of gold was trading for US$1,829. That same ounce is currently worth US$1,791, down 2%.

The same can’t be said for most ASX gold shares, as witnessed by the 17% year-to-date fall in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

One way to invest in physical gold via the ASX is through the Betashares Gold Bullion ETF (ASX: QAU).

The currency hedged exchange-traded fund (ETF) aims to track the performance of the price of gold. It employs a currency hedge against movements in the exchange rate between the US and Aussie dollars.

QAU is down 2% in 2022 compared to an 8% loss posted by the ASX 200.

Bonds and inflation protection

Another safe haven asset, if held to maturity, is a government bond.

If a share market crash is being driven by inflationary pressures, then you may want to consider exchange-traded Treasury Indexed Bonds (eTIBs).

What are these?

According to the ASX:

Exchange-traded Treasury Indexed Bonds (eTIBs) offer a convenient and readily accessible way to invest in Treasury Indexed Bonds. Treasury Indexed Bonds are capital-indexed bonds issued by the Australian Government. The capital value of the investment is adjusted by reference to movement in the Consumer Price Index (CPI)…

Treasury Indexed Bonds are not traded on an exchange and are typically traded in large parcels, putting them beyond the reach of many investors. eTIBs have the appeal and convenience of being electronically traded and settled through the Australian Securities Exchange (ASX) in small or large parcels.

In a share market crash, be sure you’re diversified

The ASX 200 has been marching higher over the past few weeks. So perhaps the worst is behind us.

But if we are looking at a share market crash, it pays to have a diversified portfolio.

In inflationary times with interest rates rising fast, look for companies with strong balance sheets, unlikely to be hit with large increases in debt repayments.

Companies with plenty of cash flow that can continue dividend payouts also tend to be less volatile than growth stocks.

These may still well fall during a share market crash. But at least you’ll be getting some regular income during the retrace.

And if you’ve got a long-term investment horizon, history shows that well run companies operating in growing markets tend to reward their shareholders over time. Even if few, or none, are immune to some medium-term downside during a market crash.

So, if you do see the value of some of your cherished stocks take a hit, remember that they’re only paper losses unless you sell them during the retrace.

Finally, in times like these, it’s more important than ever to keep some powder dry.

Aside from having some ready liquidity in case of unforeseen needs, you could scoop up some steals.

As my fellow Fool, Bruce Jackson writes, “If the market does indeed test its June 2022 lows, it gives you an opportunity to snap up some more bargains.”

The post What goes up when the share market crashes? appeared first on The Motley Fool Australia.

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More reading

• 5 proven investment strategies you can use to ride out a recession
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why did the Arafura share price plunge 19% today?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s no way for investors to avoid recessions. Economic cycles are natural, and they can move the market drastically. That doesn’t have to be a bad thing, though! Investors can use a few important strategies to limit losses and maximize long-term gains.

1. Stay invested

This is the most important strategy on the list, by far. It’s also probably the most simple one. The stock market is likely to drop during or immediately following a recession. Our human instinct is to take action to stop the pain. It’s not easy to do, but the best move is generally to fight this instinct.

The worst time to sell a stock is right after it’s dropped. All that does is lock in your losses. The best time to sell has already passed, and chasing that is an irrational fear reaction — it’s already too late. You might prevent further losses, but you could also lock yourself out of the gains from the inevitable market recovery. Some recoveries take years following prolonged, steep crashes. Other ones are immediate, but either way, it’s nearly impossible to know which one you’re dealing with in the moment.

Suppose that nothing has changed about a company’s expected future cash flows or financial health. For long-term investors, that means nothing has changed about the stock’s potential. A drop in price just means that it got even cheaper, and, perhaps, less risky. From a purely rational perspective, a recession is one of the worst times to sell.

Even investors who recognize this logic can still be tempted to time the market. There’s tons of data out there suggesting you probably can’t do that successfully over the long-term. Instead, it’s generally best to trust that the market will turn around as economic conditions inevitably return to growth.

2. Hold dividend stocks

Dividend stocks are great additions to investment portfolios, especially during market downturns. When investors’ risk appetite declines, capital usually flows toward value stocks and other stable businesses. Dividend stocks become more popular when market turmoil is on the horizon. That’s exactly what we saw in early 2022.

Dividend stocks also bring the major benefit of performing during market crashes. Your portfolio might get crushed and lose value on paper, but you can still enjoy cash returns, regardless of share prices. This is really important for retirees relying on investment income. It’s also a great way to calmly stay invested as you wait for the stock market to turn around. You’ll be less tempted to sell if some of your stocks are kicking off cash.

You can’t avoid volatility, but you can definitely manage it. Investors can measure their risk tolerance based on time horizon, financial needs, and personal tastes. If you don’t need to access your stock investments for a long time and you don’t mind short-term losses, then you can invest for aggressive growth. If you’ll need to sell your stocks for cash soon (or if you just can’t handle losses emotionally), then it’s important to balance your allocation in alignment with your risk tolerance. Bonds are a popular asset class for volatility reduction.

Recessions can threaten the profits and financial health of any business, which can cause them to slash dividends. Make sure your dividend investment strategy retains some exposure to defensive stocks, such as healthcare, consumer staples, and utilities. These are considered non-cyclical because their sales tend to remain more stable across economic conditions.

3. Manage volatility

This is an important investment strategy to consider before a recession hits. If you don’t take care of this, it might be too late. Volatility is an inevitable part of stock investing. The market moves in cycles, and crashes tend to coincide with recessions.

If you missed the boat on this step in 2022, make sure you’re prepared in the next market cycle. It will be relevant again in the future.

4. Stay liquid

If we’re truly entering a recession, then it could be wise to keep some “dry powder” on the sideline. You’ll be thankful if you have cash on hand when the market approaches its bottom. Don’t mistake this for a recommendation to sell off your stocks and violate the first section of this list. With the market down 13% year to date, it’s not exactly a good time to sell stocks anyway.

Instead, approach this as a form of volatility management. If you’re overexposed to stocks, then it might be smart to take some gains on stocks that have outperformed recently. That cash can be deployed into better opportunities, such as stocks that have recently become undervalued. Energy stocks could fit this description after their recent inflation-fueled run-up.

5. Buy cheap, promising growth stocks

If you have some cash on hand after the market takes a beating, then it’s time to consider undervalued growth stocks. Growth stocks take a beating during crashes, but they tend to outperform the market during bull periods.

Artificial intelligence, data analytics, cybersecurity, and fintech stocks are way below their 2021 highs. They might have more room to tumble, but the risk-reward balance has flipped. Valuations are much more rational, and these industries are among the most promising for the next few decades.

If you do some homework and have high conviction in a few of these names, it’s a great time to consider adding them to your portfolio for the long term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 5 proven investment strategies you can use to ride out a recession appeared first on The Motley Fool Australia.

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Ryan Downie 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Next week the Telstra Corporation Ltd (ASX: TLS) share price will be in focus.

That’s because on Thursday, the telco giant is due to release its full year results.

What is the market expecting from Telstra’s results?

According to a note out of Goldman Sachs, its analysts are expecting Telstra to deliver full year underlying EBITDA of $7.1 billion.

This is a touch short of the market consensus estimate of $7.2 billion, but in line with Telstra’s guidance range of $7 billion to $7.3 billion.

On an earnings per share basis, the broker has pencilled in earnings of 14.4 cents per share.

Telstra dividend

Goldman is expecting the company to maintain its final dividend at 8 cents per share despite its strong free cash flow generation. This will mean a 16 cents per share fully franked dividend again in FY 2022. Though, it may not be long until dividend increases start to happen according to its analysts.

Goldman commented:

We believe TLS will pay an 8c final dividend despite its strong cash flows, as it remains franking constrained. We also now forecast a 17c/18c dividend in FY23/24E, but consistent with history, we do not expect TLS will provide any forward looking commentary on its dividend at this result. With its legal restructure to be completed by end of Oct-22 (post scheme meeting) we also do not expect any updates on potential InfraCo-Fixed monetisation.

Outlook

The broker is expecting Telstra to provide the market with guidance for FY 2023. Particularly given that it has previously provided an aspirational target of EBITDA of $7.5 billion to $8 billion in FY 2023.

It explained:

We expect all of our coverage will provide forward-looking guidance, noting that TLS previously outlined aspirations for $7.5 to 8.0bn of EBITDA (ex-Digicel) in FY23 – broadly consistent with our revised $7.58bn ex-Digicel.

The post Own Telstra shares? Here’s what to expect from its FY22 results 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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