With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating on this travel agent giant’s shares with an improved price target of $26.80. Macquarie is feeling positive about Flight Centre and continues to rate it as its top pick in the sector. It likes the company due to its potential for market share growth. Macquarie also sees scope for Flight Centre to outperform consensus estimates and thinks that changes to its business model give the company a sizeable total addressable market. This gives it a long runway for growth. The Flight Centre share price is trading at $22.25 today.

IGO Ltd (ASX: IGO)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.15 price target on this battery materials miner’s shares. In its weekly lithium price update, the broker has once again named IGO as its only buy-rated ASX lithium stock. This is largely due to the Greenbushes operation. It highlights that Greenbushes is the lowest cost lithium asset in its coverage. In addition, it notes that its expansion should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa. And that this expansion is one of the most economically compelling brownfield lithium projects. The IGO share price is fetching $6.04 at the time of writing.

Rio Tinto Ltd (ASX: RIO)

Analysts at Morgan Stanley have retained their overweight rating and $142.00 price target on this mining giant’s shares. According to the note, the broker highlights that there is speculation that Rio Tinto could be interested in making a blockbuster US$32 billion acquisition of Canadian diversified miner Teck Resources. The miner appears to be attracted to Tech Resources’ copper exposure. Outside this, the broker likes Rio Tinto due to its belief that copper demand will continue to accelerate. It also feels positive on aluminium prices as cost curves rise. In light of this, it feels that the mining giant’s shares are good value at current levels. The Rio Tinto share price is trading at $120.08 on Monday.

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

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

The BHP Group Ltd (ASX: BHP) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed Friday trading for $43.40. In morning trade on Monday, shares are changing hands for $43.78 apiece, up 0.8%.

For some context, the ASX 200 is also up 0.76% at this same time.

This comes after the miner released an update on the legal group action proceedings in the United Kingdom related to the 2015 Samarco Fundao iron ore tailings dam collapse in Brazil.

Here’s what’s happening.

Legal proceedings

The BHP share price is marching higher after the miner advised it had entered into an agreement with Vale on the ongoing legal proceedings in the United Kingdom involving more than 600,000 claimants.

The Fundao Dam was owned and operated by Samarco, a non-operated 50/50 joint venture between BHP Brasil and Vale.

The tailings dam collapse killed 19 people and caused massive environmental damage. It also heaped pressure on the BHP share price at the time.

“BHP Brasil is fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Fundacao Renova,” the miner stated last year.

Fundacao Renova is a not-for-profit, private foundation. It was established after the dam collapse to implement 42 remediation and compensatory programs in Brazil.

Today, the ASX 200 miner reiterated:

BHP Brasil remains committed to continue supporting the local remediation efforts in Brazil through the Renova Foundation. Those efforts have already provided approximately US$3.5 billion in compensation and direct financial aid in relation to the dam failure to approximately 430,000 people to 31 May 2024.

However, neither BHP nor Vale believes the court proceedings against them in the UK should continue.

“BHP does not consider that it is liable to the claimants in the English Proceedings and will continue to defend the English Proceedings,” the miner stated.

BHP added:

BHP believes the English Proceedings are unnecessary because they duplicate matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

In March this year, a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands on behalf of approximately 78,000 Brazilian claimants for compensation relating to the dam collapse. BHP is not a defendant in the Netherlands case.

BHP share price gains on Vale agreement

Today, the BHP share price is lifting after the company said it had entered into an agreement with Vale that would see each of them pay half of any potential payouts in the English Proceedings, the Netherlands Proceedings and other proceedings in Brazil, without any admission of liability for these proceedings.

Both miners already contribute 50% to the funding of the Renova Foundation.

BHP brought a contribution claim against Vale in December 2022 because the English Proceedings were not brought against Vale. The ASX 200 miner said it would now withdraw that contribution claim against Vale in light of the new agreement.

The BHP share price is down 3% over 12 months.

The post BHP share price marching higher amid legal cost sharing agreement with Vale appeared first on The Motley Fool Australia.

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

The Nanosonics Ltd (ASX: NAN) share price is having a very strong start to the week.

In morning trade, the infection control specialist’s shares were up as much as 10% to $3.47.

Why is the Nanosonics share price surging 10%?

Investors have been fighting to get hold of the company’s shares on Monday after it released a trading update.

According to the release, Nanosonics delivered strong growth in both capital and consumables/service revenue in the second half compared to the first.

This was particularly the case in the key North America market, which is getting investors excited today.

Management notes that this was driven by additional customer offerings to bridge budget constraints, a number of organisational changes in particular sales territory realignments, and a growing pipeline, together with improvements in sales conversion timelines.

Show me the money

Nanosonics revealed that it expects to report total revenue of approximately $170 million in FY 2024, which is an increase of 2.4% year on year.

This comprises first half revenue of $79.6 million and second half revenue of approximately $90.4 million. The latter represents a half on half increase of 14%.

Nanosonics’ second half revenue growth was driven by a 20% half on half increase in capital revenue to $26.4 million and an 11% increase in consumables/service revenue to approximately $64 million.

The company also provided an update on its trophon footprint. It advised that a total of 3,850 trophon units were placed during the year, comprising 2,340 new installed base and 1,510 upgrade units.

For the second half, total units placed were 2,130, up 24% when compared with first half. Whereas new installed base units in the second half were 1,240, which is up 13% half on half. Upgrade unit sales were of 890 for the second half, up 44% on the first half.

The majority of this growth came from North America during the half, with total units placed up 28% to 1,850 and new installed base units up 6% to 1,030.

Nanosonics’ CEO and President, Michael Kavanagh, was pleased with the performance. Especially given the challenging trading conditions. He said:

Despite a challenging market environment, the growth opportunity for trophon remains significant. With a growing pipeline for both new installed base and upgrades, it was pleasing to see the sales conversion timelines improve in the second half, which resulted in significant growth in H2 over H1 for capital unit sales.

The Nanosonics share price remains down by almost 30% since this time last year.

The post Why is the Nanosonics share price rocketing 10% today? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• BHP share price marching higher amid legal cost sharing agreement with Vale
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors in their 60s nearing retirement may want to consider generating higher levels of dividends from their ASX share portfolio.

Investing in a company solely for its ultra-high dividend yield is not the best strategy, in my view. Ideally, there would also be some capital growth over time as well.

Dividends aren’t guaranteed, but if the business delivers underlying earnings growth, investors have a better chance of maintaining and growing those payments.

I believe the two ASX shares below are options that can achieve both a good yield and longer-term earnings growth.

Metcash Ltd (ASX: MTS)

Metcash has three divisions. Its food division is best known as the supplier to more than 1,600 supermarket stores, predominantly IGA and Foodland stores.

The liquor division supplies around 90% of independent liquor stores in Australia. These include national brands like IGA Liquor, Bottle-O, Cellarbrations and Porters Liquor.

Metcash’s hardware segment is one of the largest businesses in the country. It owns brands like Mitre 10, Home Timber & Hardware, and Total Tools. It also supports independent operators under the small-format convenience banners Thrifty-Link Hardware and True Value Hardware.

The company also recently announced the acquisition of one of the largest frame and truss businesses in Australia and a deal to buy Superior Food, a large supplier to cafes, restaurants, hotels, and other businesses.  

It is committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT), which I think is generous and rewarding.

The company recently reported its FY24 result, which included an annual dividend per share of 19.5 cents, translating into a grossed-up dividend yield of around 7.5%.

The estimate on Commsec suggests the annual payout from the ASX share could rise to 21 cents per share in FY26, which would be a grossed-up dividend yield of 8.1%.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a portfolio of industrial properties across Australia.

In the third quarter of FY24, the business reported seeing re-leasing spreads of 50% in FY24 to date. That means the ASX share is generating 50% more rental income on the same properties on new leases compared to the old leases. That’s a strong increase and shows the strong demand and increased value of logistics properties.

Ongoing double-digit rental growth could fund higher distributions in future years.

At the time of that third-quarter update, the ASX REIT share’s manager Grant had this to say:

CIP continued to benefit from strong sector tailwinds within urban infill industrial markets. CIP’s strategic exposure to land-constrained ‘last mile’ locations continued to achieve robust rental growth, and has generated strong re-leasing spreads.

We believe the continued adoption of ecommerce and onshoring supply chains will maintain demand for infill industrial markets.

Nichols said CIP remained the only “domestically focused, pure-play industrial REIT listed on the ASX, providing investors with a portfolio of high-quality real estate assets across Australia’s major urban infill industrial markets”. He said:

Looking ahead, we believe CIP is well positioned to benefit from the industrial sector tailwinds, underpinned by Australia’s burgeoning population, which is forecast to increase by more than 975,000 people between 2023 and 2025. This population expansion alone is expected to increase Australian industrial demand by c.4.5million sqm.

The company’s guided distribution of 16 cents per unit works out to be a distribution yield of 5.1%.

The post If I were 60 I’d buy these ASX shares for dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Metcash. 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 Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Rio Tinto Ltd (ASX: RIO) share price has dipped more than 10% since May 2024. It’s common to see volatility when it comes to ASX mining shares, so investors may be wondering whether this sell-off is a buy-the-dip opportunity.

In the shorter term, commodity-focused stocks are often heavily influenced by movements with their respective commodity prices.

Rio Tinto is one of the largest players in the world, and its key commodity is iron ore. However, the iron ore price has dropped recently, so let’s consider the situation there first.

Weakness in the iron ore price

According to Trading Economics, the iron ore price is under pressure amid inventories at Chinese ports recently hitting a two-year high, signalling “weaker demand from steel mills for metal production.”

Trading Economics reported that analysts point to “widening losses among steelmakers and signs of falling hot metal output as dragging demand.”  

The iron ore price has fallen to around US$110 per tonne, down from above US$140 per tonne at the start of the year and down from US$117 per tonne in May.

However, it’s possible that the reduction of both the Rio Tinto share price and the iron ore price could be a buy-the-dip situation, particularly if the iron ore price were to rebound sooner rather than later.

Promising signs?

A couple of positives could lead to a better iron ore price, though we shouldn’t base an investment decision on a possible short-term commodity movement.

Trading Economics reported that the latest data revealed that Chinese exports beat forecasts, with 8.6% growth in June. As an exporting and steel-heavy economy, good exports could mean more demand in the medium term for Australian iron ore.

According to Trading Economics, there is also hope that China will announce more financial stimulus at an important political gathering next week to boost the Chinese economy. Slowing inflation in the US may lead to a potential rate cut this year by the US Federal Reserve.

Is the Rio Tinto share price a buy?

The ASX mining share is currently rated as neutral by the broker UBS. The price target is $127, which implies a possible rise of 6% from today.

UBS notes that the copper mine Oyu Tolgoi’s underground ramp-up is on track, while the huge iron ore project in Africa called Simandou is also progressing “to plan”.

The broker said the ASX mining share has “improved operationally” and “should trade well if iron ore, copper and aluminium prices hold/move higher.”

UBS predicts Rio Tinto can generate net profit after tax (NPAT) of US$12.1 billion in FY24 and US$12.3 billion in FY25 while paying annual dividends per share of US$4.48 in FY24 and US$4.56 in FY25.

I think Rio Tinto is a compelling miner, and its growing exposure to copper is attractive. However, the valuation does not look like it’s at bargain levels to me. If the Rio Tinto share price fell under $110, or even under $100, that could be a better time to invest. That could happen if/when the iron ore price falls below US$100 per tonne.

The post Are Rio Tinto shares a buy on a pullback? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

The Aussie Broadband Ltd (ASX: ABB) share price is taking a beating today.

Shares in the S&P/ASX 300 Index (ASX: XKO) telco closed on Friday trading for $3.57. In early morning trade on Monday, shares are swapping hands for $2.93 apiece, down 17.9%.

For some context, the ASX 300 is up 0.7% at this same time.

This comes as the company launches its new automated assistant and releases a trading update.

First, the AI rollout.

Aussie Broadband share price tanks on AI investment

Investors are pressuring the Aussie Broadband share price after the company announced the launch of Buddy Telco.

The new digital-first challenger brand is aimed at disrupting Australia’s NBN market. It’s targeting four million households out of a total addressable NBN market of some 8.3 million.

Users can employ Buddy to manage their connection, upgrades, outages and usage through the Buddy Telco app, website and Live Chat. The deep learning program is underpinned by Aussie Broadband’s extensive network with connection to all 121 NBN POIs and the Aussie Fibre backbone. It will be offered on a self-service basis only.

The company intends to invest around $10 million in FY 2025 for marketing, brand and set up related operating expenditure to support the Buddy launch. Buddy is expected to provide positive earnings before interest, taxes, depreciation and amortisation (EBITDA) contribution starting in FY 2027.

The AI-enhanced program is targeting 100,000 customers within three years.

Commenting on the new tech rollout that’s failed to lift the Aussie Broadband share price today, managing director Phillip Britt said, “Aussie is thrilled to launch Buddy Telco, a truly digital-first offering that provides value and ease of use to the consumer.”

Britt added:

Our strategic investment in Buddy allows the group to compete in both the premium and value-led broadband sectors, further diversifying the markets we operate in. We look forward to continuing to ‘Change The Game’ through Buddy’s success.

Which bring us to the trading update and guidance.

ASX 300 telco expects to achieve top end of guidance

The Aussie Broadband share price also has failed to catch any tailwinds from today’s trading update.

Based on preliminary, unaudited results, management expects the company’s FY 2024 EBITDA to be at the top end of its $116 million to $121 million guidance, which was previously upgraded on 23 February.

As for the FY 2025, the $10 million investment in Buddy is now reflected in that EBITDA guidance. Prior FY 2025 EBITDA guidance of $135 million to $145 million has been revised to the new range of $125 million to $135 million.

The Aussie Broadband share price will be one to watch on 26 August, when the telco releases its full-year audited results.

The post Aussie Broadband share price implodes 18% amid AI investment appeared first on The Motley Fool Australia.

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

One of the world’s leading investors, Warren Buffett, likes all sorts of industries.

Buffett’s Berkshire Hathaway invests in everything from insurance, railways, jewellery and furniture to candy and many other businesses. Tech giant Apple may be the best-known company in the portfolio, but one stock that Buffett’s Berkshire Hathaway has been investing in recently is Occidental Petroleum Corp.

Now, Occidental Petroleum is not exactly the same as ASX oil and gas share Woodside Energy Group Ltd (ASX: WDS), but there are obvious similarities.

As a major presence on the ASX, it’s worth asking whether Woodside would make it into Buffett’s Berkshire Hathaway portfolio. Let’s take a look.

Would Warren Buffett buy Woodside shares?

Buffett likes quality businesses that are growing and at a good price.

I think we can call Woodside a quality business. It’s a leading operator in Australia. In the first quarter of 2024, the business produced 44.9 million barrels of oil equivalent (MMboe), and it achieved an average realised price of US$63 per barrel.

According to Commsec, Occidental Petroleum shares are currently valued at 14x FY24’s estimated earnings and 13x FY25’s estimated earnings.

Meanwhile, Woodside shares are priced at 14.6x FY24’s estimated earnings and 15x FY25’s estimated earnings.

The valuations are very similar, but we can see that Woodside’s valuation is slightly higher, and the earnings are predicted to reduce, while Occidental Petroleum’s earnings are predicted to grow. Even so, I think the valuation is close enough for Buffett to be interested.

Woodside has growth projects — including Scarborough, Sangomar, Trion, and H2OK — that could help increase its earnings in the coming financial years.

But as Woodside’s performance also depends on what happens with energy prices, time will tell how much the ASX oil share will be able to grow its earnings in the future,

The broker UBS has estimated that Woodside could generate US$2.34 billion of net profit after tax (NPAT) in 2024 and US$2.31 billion of net profit in FY28. This suggests that Woodside’s profit could be virtually the same in four years from now.

The Woodside share price has fallen 25% since August 2023, so it’s much cheaper now, as the chart below shows.

I’m not sure Buffett would be interested in adding Woodside shares to the Berkshire Hathaway portfolio, considering it already has exposure to the sector.

However, if he wanted to add more oil and gas exposure, then Woodside may be cheap enough to be attractive, but I wouldn’t say it’s quite at bargain levels yet.

The post Would Warren Buffett buy Woodside shares? appeared first on The Motley Fool Australia.

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