Real estate shares were in the doldrums today. The property-centric sector dropped 2%, with some ASX 200 property stocks carving more than 5% off their share price amid fears of another interest rate increase.

But there was a glimmer of green among the many downtrodden property shares: PEXA Group Ltd (ASX: PXA). Shares in the electronic property conveyancing platform lifted 2% to $13.90. Although such a move wouldn’t normally be worth celebrating, it’s notable given the day’s bleak backdrop.

The viridescent glow of PEXA coincides with the company’s return from yesterday’s trading halt and a fresh announcement.

Hitting pause on interoperability

This morning, PEXA acknowledged a statement released by the Australian Registrars National Electronic Conveyancing Council (ARNECC). In this release, the ARNECC revealed it was halting work on its interoperability program, with its project team being stood down.

ARNECC’s interoperability program has been in development for around three years. In short, the program was an initiative to enable a more competitive industry for electronic conveyancing by making communication between all electronic lodgement network operators (ELNOs) and banks possible.

The pause in interoperability efforts was attributed to issues outside the reach of the government body, stating:

State and Territory Ministers also noted recent issues that have been raised by the banking industry in relation to the Interoperability Program, and that some of these are beyond the remit of States and Territories to address effectively.

Still, the ARNECC reiterated the desire for more competition and its benefits. However, it conceded that ‘significant challenges’ stand in the way of making further progress. As such, the body has called upon the Commonwealth Government and regulators to assist.

Meanwhile, PEXA said, “We continue to participate constructively with our regulators and industry participants to support and evolve an ecosystem that operates in the best interests of Australian home and property owners.”

What about the competitor to this ASX 200 stock?

Sydney-based Sympli is trying to break the Australian e-settlement monopoly. Hence, the startup would be a major beneficiary in a more open and interoperable digital conveyancing market.

So, it comes as no surprise the competitor had a few remarks of its own today.

Sympli responded to the ARNECC release by saying:

Sympli confirms that we are, and have always been, committed to ensuring our bank processes are supported in interoperability, but we remain extremely disappointed that this same commitment does not appear to be shared by the industry incumbent. Unfounded claims of intellectual property rights over what have been decades-established industry practices are blocking the finalisation of data standards required to deliver the reform – this must be stopped.

The company is calling on further work to make interoperability possible.

PEXA Group, the ASX 200 stock, is up 5.06% over the past year.

The post ASX 200 stock rallies as monopoly remains intact appeared first on The Motley Fool Australia.

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• How ASX shares vs. property performed in May
• Sell in May and go away? Not for these top 3 ASX 200 stocks!
• These were the best performing ASX 200 shares in May 2024

Motley Fool contributor Mitchell Lawler 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 PEXA Group. 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.

Do you have a higher than average tolerance for risk? If you do, then it could be worth checking out the small cap ASX stock in this article.

That’s because analysts at Bell Potter have just initiated coverage on its shares with a buy rating and are tipping huge returns.

Which small cap ASX stock?

The small cap that Bell Potter has named as a buy is Biome Australia Ltd (ASX: BIO).

It develops, licenses, commercialises and markets innovative, evidence-based live biotherapeutics (probiotics) and complementary medicines. The company notes that many of these are supported by clinical research.

At the last count, Biome Australia was marketing 18 products under the Activated Probiotics brand.

According to the note, Bell Potter believes the small cap ASX stock is well-placed to grow materially in the coming years. It commented:

We have strong conviction in the potential of BIO to grow into a material business through a combination of: 1) differentiation through condition-specific probiotic strains / formulations; 2) more efficient delivery system through microencapsulation and blister packaging; 3) a training and education focused sales model that builds trust, deep customer relationships and brand value; 4) clinical evidence based products that drives credibility and opens up significant potential for co-prescribing of medications; and 5) international expansion to replicate the Australian model.

Bell Potter is expecting this to underpin revenue of $12.7 million in FY 2024, $18,9 million in FY 2025, and then $26.6 million in FY 2026.

As for earnings, a net loss of $2.4 million is expected this year, then profits of $0.3 million in FY 2025 and $3.2 million in FY 2026.

Big returns

Bell Potter has initiated coverage on the small cap ASX stock with a buy rating and 73 cents price target.

Based on its current share price of 50.5 cents, this implies potential upside of approximately 45% for investors over the next 12 months.

Its analysts think that investors should snap up its shares and gain exposure to “BIO’s exciting growth phase.” The broker concludes:

We initiate coverage of BIO with a BUY recommendation and Target Price of $0.73 / sh. BIO provides rare exposure to the global probiotics market that leverages off the theme of preventative health. Investors can gain exposure during BIO’s exciting growth phase as the business moves through breakeven into profitability and positive cash flow. Expansion into the UK and Canada should also drive material improvement in performance.

The post Guess which small cap ASX stock could rise 45% appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX retirement shares to buy in July
• The iShares S&P 500 ETF (IVV) is slowly becoming a dividend powerhouse. Here’s why
• The Core Lithium share price is down 36% in a month. Time to pounce?
• Macquarie names 6 ASX shares to buy in July after tax-loss selling
• Down 25% in a month: Are Mineral Resources shares dirt cheap?

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.

When you first start out investing, you can invest in fledgling growth stocks and small caps.

That’s because if things don’t go quite to plan, you have plenty of time to recoup your losses.

However, if you’re already in retirement, you cannot really afford to lose money. As a result, it’s arguably best to look beyond growth stocks and focus more on capital preservation and income.

But which ASX retirement shares could be worth considering? Let’s take a look at three that could be top options:

APA Group (ASX: APA)

It’s always good to have defensive shares in your retirement portfolio. Especially those that are able to pay sustainable dividends.

APA Group certainly ticks these boxes. This energy infrastructure company has a long track record of dividend growth. In fact, it is currently on course to increase its dividend for 20 years in a row.

Analysts at Macquarie expect the company to deliver on this. The broker is forecasting dividends of 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $7.95, this equates to 7% and 7.2% dividend yields, respectively.

Macquarie also sees plenty of upside for investors. It has an outperform rating and $9.40 price target on its shares.

Coles Group Ltd (ASX: COL)

Supermarkets are another generator of defensive earnings. As they provide daily essentials, consumers are forced to fill their trolleys each week no matter how much they raise their prices.

Morgans is very positive on the company’s outlook and believes its growth will resume in FY 2025 after a tricky time in FY 2024.

It is expecting this to lead to Coles paying fully franked dividends of 66 cents per share in FY 2024 and then 69 cents per share in FY 2025. Based on the current Coles share price of $17.10, this implies dividend yields of 3.85% and 4%, respectively.

Morgans has an add rating and $18.95 price target on its shares.

Telstra Group Ltd (ASX: TLS)

There are few industries that are more defensive that the telecommunications industry. After all, mobile phones and internet are services that many of us could not go without.

This could make Telstra a great ASX retirement share to buy. Especially given its leadership position in the market.

Goldman Sachs thinks it would be a great option. Its analysts have even highlighted its “low risk earnings (and dividend) growth” as a reason to buy. In addition, the broker is expecting some attractive dividend yields.

It is forecasting fully franked dividends per share of 18 cents in FY 2024 and then 18.5 cents in FY 2025. Based on the current Telstra share price of $3.59, this will mean yields of 5% and 5.15%, respectively.

Goldman has a buy rating and $4.25 price target on its shares.

The post Here are 3 ASX retirement shares to buy in July appeared first on The Motley Fool Australia.

More reading

• Why APA Group, Immutep, NAB, and Immutep shares are sinking
• Coles and these ASX dividend stocks could offer huge returns
• Buy Telstra and these ASX dividend stocks in July
• ASX expert: Time to buy Telstra shares
• For a shot at $1,320 a year in passive income, buy 2,000 shares of this ASX stock

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 Apa Group, Coles Group, Macquarie Group, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX investors might want to buy the iShares S&P 500 ETF (ASX: IVV) for their stock portfolios for a number of reasons. It could be to gain exposure to a portfolio of stocks from outside Australia. It could be to add some of the best companies in the world to one’s investing strategy.

But whatever the reason ASX investors might want to buy this exchange-traded fund (ETF), it’s likely that receiving dividend income isn’t high on the list.

Unlike ASX shares, American stocks aren’t known for their dividends. Traditionally, if an investor picks up an ASX index fund, they can expect to receive a dividend yield of around 3%-5% from their investment, depending on where we are in the market cycle. Thanks to dividend heavyweights like Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP) amongst their top holdings, ASX index funds are usually generous when it comes to income.

But the same isn’t usually said about American shares. Thanks to a different tax system, as well as the general makeup of the US markets, American stocks have never prioritised paying out dividends to the same extent as their Australian counterparts. So while it’s normal to get a 3%-5% yield from an ASX index fund, a US index fund is far more likely to get you a dividend yield of between 1% and 2%.

We can see this playing out today. Right now, the iShares S&P 500 ETF is trading on a trailing dividend distribution yield of 1.21%. That comes from this ETF’s last four quarterly dividend distribution payments, which add up to an annual total of 66.19 cents per unit.

But despite this, I’m starting to think that the iShares S&P 500 is slowly morphing into a dividend powerhouse.

Why? Well, because its top holdings, which were previously (and conspicuously) not dividend payers, are slowly changing course.

Big dividend changes for ASX investors in the IVV ETF

Right now, the ten largest shares in the iShares S&P 500 ETF are as follows:

1. Microsoft Corporation (NASDAQ: MSFT)
2. NVIDIA Corporation (NASDAQ: NVDA)
3. Apple Inc (NASDAQ: AAPL)
4. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
5. Amazon.com Inc (NASDAQ: AMZN)
6. Meta Platforms Inc (NASDAQ: META)
7. Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B)
8. Eli Lilly and Co (NYSE: LLY)
9. Broadcom Inc (NASDAQ: AVGO)
10. JPMorgan Chase & Co (NYSE: JPM)

Of these ten companies, none except JPMorgan currently offer a dividend yield of over 2%. And four don’t even pay a dividend. Well, at least until 2024.

This year, both Meta Platforms and Alphabet announced that they would be breaking with a long tradition of not paying a dividend by initiating a maiden shareholder payment. That leaves only Berkshire Hathaway and Amazon as the last holdouts in this top ten.

Sure, most of these stocks don’t have impressive upfront yields. But consider this: Microsoft has been growing its dividend by a compounded annual growth rate of 10.23% per annum over the past five years. For Nvidia, it’s 6.91%, and in Broadcom’s case, 15.97%.

Now that Meta and Alphabet have finally started paying out dividends, it’s highly likely that these companies will also grow their payouts at a high rate in the years ahead, thanks to the mountains of cash these companies generate.

As such, I am seeing more dividend income potential for an IVV investment on the ASX today than at any other time in recent history.

It might have a low yield right now. But I think there’s a great chance that anyone who buys this ASX ETF today will be bagging a lot more income down the road.

The post The iShares S&P 500 ETF (IVV) is slowly becoming a dividend powerhouse. Here’s why appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares 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.

Despite the past two days of solid gains, the Core Lithium Ltd (ASX: CXO) share price remains down 35.7% since this time last month.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock are currently flat, trading at yesterday’s closing price of 9 cents apiece. That’s down from 14 cents a share a month ago.

And, as you can see on the chart below, it puts the Core Lithium share price down a precipitous 90% over 12 months.

Ouch!

With those kinds of losses already booked, could now be the time to pounce on this beaten-down ASX lithium miner?

Let’s dig in.

What’s been pressuring the Core Lithium share price?

While very company faces its own specific operational headwinds each year, the biggest factor driving down the Core Lithium share price has been the meltdown in global lithium prices.

Just what kind of meltdown are we talking about?

Well, over the past 12 months alone, lithium carbonate prices have crashed by some 70% as a surge in new supplies exceeded the demand growth for the battery-critical metal.

Overnight, prices tumbled another 5% to US$12,000 per tonne. That sees the lithium price down 15% in a month, helping explain the ongoing headwinds battering the Core Lithium share price.

As for whether the ASX lithium stock now represents good value, that will largely be determined by the price of lithium in the months ahead.

As you may recall, Core Lithium suspended mining operations at its flagship Finniss Project in the Northern Territory in early January amid crashing lithium prices, which at the time were about 5% above current levels.

Management said it had become unprofitable to continue mining at those prices, flagging a pause until lithium prices recovered. The miner has continued to process established ore stockpiles.

With that in mind, I don’t expect we’ll see a sustained turnaround in the Core Lithium share price until the supply and demand dynamics in the lithium market come back into balance.

As for when we might expect that, we turn to the experts at Citi.

What’s ahead for the lithium price?

As The Australian Financial Review reports, Citi said it remains “very bearish” on lithium in the short term.

In what could heap even more pressure on the Core Lithium share price in the months ahead, the broker forecasts that lithium prices could fall by up to another 20%. That bearish assessment is based on observations that lithium inventories are increasing at a “dramatic pace”.

While global demand for lithium is still growing this year, growth is only at half the pace we witnessed in 2023 amid a slowdown in EV sales. Citi estimates that lithium inventories have leapt by some 70,000 tonnes year to date.

According to Max Layton, Citi’s global head of commodities research, “This high and rising low-shelf-life chemical inventories should see lithium prices fall another 15% to 20% to $US10,000 a tonne.”

That won’t come as good news to ASX lithium miners. Nor their shareholders.

However, the Core Lithium share price could be supported by investors with longer-term horizons, as the lithium glut is expected to begin easing next year.

According to Layton:

A low-price environment over the next three to six months would force supply curtailments, driving physical markets to rebalance… Lithium consumption is expected to accelerate from 2025 onwards once the current negative EV sentiment fades.

Citi has a sell rating on Core Lithium with a 9-cent share price target. That’s right about where the stock is trading at today.

The post The Core Lithium share price is down 36% in a month. Time to pounce? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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.

Tax-loss selling could be pile-driving fundamentally good companies into the ground. At least, that’s what analysts at Macquarie think, prompting the team to name a handful of ASX shares to buy following the indiscriminate tax-driven selling.

The S&P/ASX 200 Index (ASX: XJO) is getting scorched during its second-last trading day of the financial year. At the time of writing, Australia’s benchmark index is 1.3% lower than yesterday despite a positive showing on Wall Street last night.

Part of the selling pressure could be from last-minute tax-loss selling, a strategy whereby investors crystallise losses to offset other capital gains. This can result in pockets of the share market temporarily disconnecting from reasonable share prices.

Macquarie believes there are six prime contenders ready for a rebound.

6 ASX shares to buy for a post-tax recovery

Recent data points hint at difficult operating conditions for corporations as the Reserve Bank of Australia’s 4.35% interest rate begins to bite into the economy. Macquarie is mindful of this as we approach the August earnings season, with Matt Brooks of Macquarie Group stating:

With orders remaining weak, labour cost growth still too high and rising transport costs, we still expect to see more negative earnings surprises in the lead up to the August reporting season.

Brooks’ answer to this economic risk is finding and buying the underdogs.

The head of Australian equity strategy named six ASX shares in the buy zone in July to capitalise on investors potentially throwing the baby out with the bathwater amid tax-loss selling. The companies are listed below:

ASX-listed company	1-year return	Month-to-date return
BlueScope Steel Limited (ASX: BSL)	-2.4%	-5.5%
Worley Ltd (ASX: WOR)	-6.7%	-0.1%
Karoon Energy Ltd (ASX: KAR)	-5.6%	-1.9%
Pilbara Minerals Ltd (ASX: PLS)	-33.4%	-17.3%
IDP Education Ltd (ASX: IEL)	-29.8%	-6.9%
Star Entertainment Group Ltd (ASX: SGR)	-48.7%	4.9%

Aussie lithium producer Pilbara Minerals has been the hardest hit of the above bunch this month, down 17.3%. The company’s shares have been under immense pressure as the price of the electrifying chemical has waned.

While Macquarie might have it down as an ASX share to buy, the outlook remains foggy. This week, analysts at Citi have put out an eery forecast of a further 20% fall for lithium, justified by rapidly rising inventories.

Switching gears. Shares in Star Entertainment are now up in June after the troubled casino company announced the appointment of Steve McCann as CEO. McCann has previously helmed Lendlease and Crown Resorts.

Where Macquarie is wary

If Brooks is backing the underperformers, one would assume the analyst is not keen to buy ASX shares that have increased in value recently. It turns out that’s exactly the case.

Financials have been the second-best-performing sector over the past year, trailing only tech. The strength has seen the big four banks rally by more than 20%. However, as Brooks points out, the amped-up valuations result from an increase in the price-to-earnings (P/E) ratio — also known as ‘multiple expansion’.

As such, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ) are all on Macquarie’s ‘underperform’ list.

According to Macquarie, Wesfarmers Ltd (ASX: WES) is another ASX share falling short of a buy rating. Like the big banks, the retail conglomerate has benefitted from multiple expansion, lacking earnings growth to support its beefed-up valuation.

The post Macquarie names 6 ASX shares to buy in July after tax-loss selling appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Why Cettire, Metcash, ResMed, and Star Entertainment shares are sinking today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mineral Resources Ltd (ASX: MIN) shares have been sold off in recent weeks.

So much so, the mining and mining services company’s shares are down 25% since this time last month.

This leaves the Mineral Resources share price trading within sight of a 52-week low and some distance away from recent highs.

While this is disappointing for shareholders, is it a buying opportunity for the rest of us?

One leading broker appears to believe it could be and is tipping big returns for investors over the next 12 months.

Are Mineral Resources shares dirt cheap?

According to a note out of Bell Potter, its analysts have reaffirmed their buy rating and $84.00 price target on the company’s shares.

Based on its current share price of $56.06, this implies potential upside of approximately 50% for investors over the next 12 months.

To put that into context, a $10,000 investment would turn into approximately $15,000 if Bell Potter is on the money with its recommendation.

Why is the broker still bullish?

Bell Potter continues to rate the company very highly due partly to the diverse nature of its operations. It commented:

Based in Western Australia (WA), Mineral Resources is a mining services company, which holds a portfolio of mining operations and development projects spanning a wide range of business activities. MIN’s services business encompasses construction, mining, crushing, processing, and haulage, as well as a range of other services. MIN operates two Iron Ore export businesses in WA, the Yilgarn Hub, and the Utah Point Hub, with combined capacity of ~20Mtpa. MIN holds direct interests in two lithium mines (Mount Marion and Wodgina) in WA. MIN’s lithium business is one focus of its expansion efforts, in response to increasing demand for lithium products.

The broker also highlights its strong production growth outlook as a reason to buy. It said:

In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

Overall, Bell Potter appears to believe that this makes Mineral Resources shares worth considering after recent weakness.

The post Down 25% in a month: Are Mineral Resources shares dirt cheap? 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.