Stock Pick

  • Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023

    An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today

    Owners of Woodside Energy Group Ltd (ASX: WDS) shares may like to know how much their company has contributed to Australia’s finances.

    As a major commodity business, Woodside is obliged to pay taxes and royalties to state and national governments. Woodside chief financial officer Graham Tiver had this to say:

    We are steadfast in our belief that governments and local communities should receive a fair return for the finite resources we extract. A balanced appreciation of this protects energy security and local jobs, as well as encouraging the future investment required to support the energy transition.

    We believe in paying tax where value is created and applying arm’s length principles to our international related party dealings. We do not support the use of artificial arrangements or the transfer of value to low tax or so-called tax haven jurisdictions.

    Australian government payments

    Woodside’s total payments to governments around the world totalled US$3.7 billion in 2023, which was a record for Woodside. This was mostly driven by “earlier commodity price highs”, which also helped propel the Woodside share price above $38.

    The ASX oil and gas share is one of the largest taxpayers in Australia. This is where its headquarters and the majority of its core producing assets are located.

    In Australia, it paid a total of US$3.25 billion to governments. Of that total, Woodside paid $2.91 billion to the Australian Taxation Office, and $325 million was paid in royalties, split between the WA state government and the federal government. It also paid $12 million in various fees to different Australian departments and authorities.

    Woodside noted the company expected its growth projects to “support energy security and prosperity for decades to come”. For example, the energy share expects its Scarborough energy project in Western Australia to generate “tens of billions of dollars in Australian taxes and thousands of local jobs”.

    Payments to other countries

    The rest of the world received close to US$500 million in payments from Woodside.

    The company paid the United States US$350.3 million, Trinidad and Tobago US$135.5 million, and Mexico US$3.6 million. Canada received US$0.4 million, and Timor-Leste US$0.3 million.

    Woodside share price snapshot

    Since the start of 2024, the Woodside share price has fallen by 13.29%. The S&P/ASX 200 Index (ASX: XJO) has lifted almost 2% in 2024 so far, meaning the company has significantly underperformed the index.

    The post Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023 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.

  • 3 excellent ASX dividend shares to buy now

    There are plenty of ASX dividend shares out there for investors to choose from, but which ones could be in the buy zone right now?

    Three that analysts have recently named as buys are listed below. Here’s what they are saying about them and the dividend yields they are forecasting in the near term:

    Endeavour Group Ltd (ASX: EDV)

    Goldman Sachs thinks that Endeavour Group could be a great ASX dividend share to buy. It is the leading company in alcohol retail and the owner of BWS and Dan Murphy’s.

    The broker likes its market leadership position and the defensive nature of the alcohol retail market.

    As for dividends, Goldman is forecasting fully franked dividends of approximately 22 cents per share in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.08, this will mean dividend yields of 4.3% for both years.

    Another positive is that the broker sees plenty of upside for its shares at current levels. It currently has a buy rating and $6.20 price target on them.

    Inghams Group Ltd (ASX: ING)

    Analysts at Morgans think that Inghams could be an ASX dividend share to buy. It is Australia’s leading poultry producer and supplier.

    The broker is feeling bullish on the company due to its market leadership position, favourable consumer trends, and valuation. It has described Ingham’s shares as “undervalued” at current levels.

    Morgans is also expecting some good dividend yields in the near term. It is forecasting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.55, this equates to dividend yields of 6.2% and 6.5%, respectively.

    Morgans has an add rating and $4.40 price target on its shares.

    Suncorp Group Ltd (ASX: SUN)

    Over at Goldman Sachs, its analysts also think that Suncorp could be a top ASX dividend share to buy. It is one of Australia’s largest insurance companies.

    Goldman believes that Suncorp is well-placed to benefit from tailwinds in the general insurance market.

    The broker expects this to support the payment of fully franked dividends per share of 78 cents in FY 2024 and then 83 cents in FY 2025. Based on the current Suncorp share price of $16.51, this will mean dividend yields of 4.7% and 5%, respectively.

    Goldman has a buy rating and $17.54 price target on the company’s shares.

    The post 3 excellent ASX dividend shares to buy now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs 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.

  • Bull market buys: 1 magnificent ASX stock to own for the long run

    two doctors smile as they sit together at a desk looking at a patient's Xray.

    I agree that Pro Medicus Ltd (ASX: PME) shares are expensive, trading at a triple-digit earning multiple.

    In an ideal world of investing, we all want to find high-quality companies trading at cheap multiples. But with so many eyes on the same pool of companies, it’s often easier said than done.

    If I had to choose between a cheap, mediocre company and a great growth company trading at high valuation multiples, I’d always go for the latter.

    As Charlie Munger — the late business partner of Warren Buffett — said, it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

    Investing in these high-quality companies can pay off in the long run, even if it means paying a premium today.

    Excellent business model

    Pro Medicus provides advanced medical imaging software and services globally, especially doing well in the United States.

    When you visit a doctor for issues like bone fractures or persistent headaches, there’s a good chance you’ll need medical imaging for an accurate diagnosis. Post-pandemic medical imaging has swiftly transitioned to digital methods, eliminating the need to carry physical X-ray or ultrasound films.

    This digital shift enhances efficiency and accessibility, underscoring the importance of companies like Pro Medicus in modern healthcare.

    Pro Medicus generates revenue from subscription fees as well as a small fee charged per each medical imaging done on its platform. To be specific, the revenue is based on a software-as-a-service model using transaction minimums. And there’s further upside as client examination volumes grow over time. This is a great scalability.

    In 1H FY24, its revenue grew 30% to $74.1 million, with an operating margin of 66%. Its net profit after tax was up 33% to $36.3 million.

    The company is debt-free due to its strong operating cash flows and requires little capital investment to operate.

    It ticks other investment considerations like a high insider ownership of approximately 52% and a high return on investment of 50%.

    Expensive, for now

    The Pro Medicus shares aren’t cheap however you cut it. Using estimates by S&P Capital IQ, the shares are trading at:

    • Price-to-earnings (P/E) multiple of 175x on FY24 earnings estimates
    • P/E ratio of 134x on FY25 earnings estimates
    • P/E ratio of 105x on FY26 earnings estimates
    • Enterprise value to revenue multiple of 67x on FY25 estimates
    • Free cash flow yield of 0.5%
    • Dividend yield of 0.26%

    But as you might have noticed, these earnings multiples rapidly reduce as we go out by a year. This is because of its healthy earnings growth.

    Should we wait for a better entry point?

    The Pro Medicus share price has nearly doubled in the past year, currently trading at $134.5. This might make you wonder if it’s better to wait for the share price to weaken before investing.

    I’m not completely against this idea, as events like another pandemic or economic downturns can impact the share market. The trouble is that it’s impossible to predict when they might happen, so they often surprise the market.

    Rather than waiting for the ideal moment, starting with a small investment now and gradually increasing it could be more beneficial in the long run, as any current price changes might appear minor in hindsight.

    The post Bull market buys: 1 magnificent ASX stock to own for the long run appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    Motley Fool contributor Kate Lee 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 Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Millennials who can’t afford to buy homes are helping make suburban Chicago and Miami the most competitive rental markets in the US

    View of Lake Michigan and the city skyline in Chicago, United States on October 14, 2022.
    Rising competition in rental markets has been shaped in recent years by severe housing shortages

    Jakub Porzycki/Getty Images

    • Miami-Dade County is the most competitive rental market in the US.
    • Suburban Chicago is in second place followed by North New Jersey. 
    • Nationwide, housing shortages and rent increases continue to challenge renters.

    With much city real estate increasingly out of reach and many millennials finally settling down, the suburbs are in high demand. And nowhere is that more evident than in Miami-Dade County in Florida, which is the most competitive rental market in the country, according to a new report from RentCafe.

    The report ranked 137 rental markets in the US, taking into account the market's rental vacancy rate, the number of days a home spent on the market, the number of potential tenants competing for each home, the percentage of tenants who renewed their leases, and the portion of new home constructions finished this year.

    Suburban Chicago and North New Jersey came in second and third, respectively. A few other spots in the Midwest, including Grand Rapids, Michigan, and Milwaukee, were also among the top five most competitive rental markets.

    Rising competition in rental markets has been shaped in recent years by severe housing shortages — the US is short about 4.5 million homes, according to one recent estimate. Meanwhile, high interest rates over the last couple of years have kept homeownership out of reach for many would-be buyers and deterred many baby boomers from downsizing.

    Things tend to be worse for renters, whose median net worth is one-fortieth the median homeowner's. While rent growth cooled last year, rents for single-family homes across the country are about 36% higher than they were pre-pandemic and rents in multifamily buildings are up about 23%.

    The pandemic-induced rise of remote work helped accelerate certain moving trends, including millennials leaving cities for the suburbs and people from all over the country flocking to the Sun Belt, including Florida.

    Competition spikes

    In Miami, a surge in new residents has pushed housing costs ever higher. An average of 19 prospective tenants are competing for each rental, while 96.5% of rentals are occupied.

    However, Chicago is catching up. Younger people looking to move into Chicago's suburbs are, on average, among 13 prospective tenants competing for each rental home. Just over 95% of rental units are occupied, as 68.7% of tenants opt to renew their leases and the region has constructed virtually no new apartments recently, RentCafe found.

    In suburban Chicago and northern New Jersey, renters and homebuyers are increasingly being drawn in by new amenities — from restaurants to walkable neighborhoods — that appeal to a younger crowd.

    With housing costs stubbornly high, many renters can't afford homeownership and are staying put in their apartments, the report found. Across the country, 62.4% of people living in apartments renewed their leases this spring. In Miami-Dade County, 73.6% of renters renewed their leases.

    The report concluded that rental markets across the US are "moderately competitive," with a national Rental Competitiveness Index of 73.4 out of 100. This is in part because construction of both single-family homes and multi-family buildings has surged in recent years. That surge in supply helped slow rent growth in many markets.

    Read the original article on Business Insider

  • Two climate protesters spray Stonehenge with orange paint and call for an end to burning fossil fuels

    Two climate protesters sit in front of Stonehenge after spraying orange paint on the ancient site.
    Two climate protesters with Just Stop Oil were arrested after spraying orange paint on Stonehenge.

    Just Stop Oil

    • Two climate protesters were arrested for spraying orange powder paint on Stonehenge.
    • The protesters were part of Just Stop Oil, a group demanding that the UK phase out fossil fuels.
    • English Heritage, which manages Stonehenge, criticized the vandalism but said the site is open.

    Two climate protesters were arrested on Wednesday after they sprayed orange powder paint on Stonehenge, the prehistoric landmark in Wiltshire, England.

    It was the latest action by Just Stop Oil, which is part of a network of civil disobedience groups that have defaced famous artwork, disrupted high-profile events, and protested outside at politicians' homes to call attention to the climate crisis. Just Stop Oil is demanding that the incoming UK government commit to ending the extraction and burning of oil, gas, and coal by 2030.

    https://platform.twitter.com/widgets.js

    Just Stop Oil said the protesters were Niamh Lynch, 21, a student at Oxford University, and Rajan Naidu, 73, from Birmingham.

    "The orange cornflour we used to create an eye-catching spectacle will soon wash away with the rain, but the urgent need for effective government action to mitigate the catastrophic consequences of the climate and ecological crisis will not," Lynch said in a statement.

    The Wiltshire Police said they arrested two people on suspicion of damaging the ancient monument, but did not disclose names.

    English Heritage, the charity that manages hundreds of historic places, and UK politicians criticized Just Stop Oil's actions on Wednesday.

    "Obviously, this is extremely upsetting and our curators are investigating the extent of the damage," English Heritage posted on X, formerly known as Twitter. "More updates to follow but the site remains open."

    UK Prime Minister Rishi Sunak told news outlets, including the Guardian, that defacing Stonehenge was a "disgraceful act of vandalism to one of the UK's and the world's oldest and most important monuments."

    Read the original article on Business Insider

  • When I retired at 54 with my husband, I worried we’d be bored spending all our time together. I’m learning to focus on myself.

    selfie of Leonie Jarrett in front of the ocean in greece
    The author retired early.

    Courtesy of Leonie Jarrett

    • When my husband and I sold our law firm, we retired early; I was 54 years old.
    • At first, I was worried I'd be bored and didn't want to spend every minute with my husband.
    • Eighteen months into retirement, I'm feeling spiritually lighter and focusing on self-growth. 

    I retired at 54 when I sold the law firm I owned with my husband.

    I had poured nine years of my life into that law firm. The business was hard and relentless work, but I loved it. Before all that, my adult life focused on building my career as a lawyer and raising a family. Now, our youngest child of four was finishing school. The child-raising was done, and my business was sold. Suddenly, it felt like I had nothing left.

    With the rest of our lives before us, my husband and I wondered who we were without our kids or careers.

    I worried about what my husband and I would do with our new free time

    I was lost. For the first time in my life, I had no purpose or direction. I had oodles of time to do whatever I wanted, but I didn't know what that was.

    My husband and I agreed that we should sell the business; we did not agree on early retirement.

    "We are too young to retire," I told him repeatedly. "We still have so much to offer."

    "Don't be crazy. We should grab the opportunity of a new, slower life with both hands," he often answered.

    Our marriage has been a long and happy one. I wasn't concerned about spending a lot of time with my husband, but I was concerned about spending all our time together. Leading up to retirement, I wondered: What would we do, what would we talk about, and would we get sick of each other?

    The questions boggled my mind during the first few weeks of early retirement as I started cleaning out the cupboards — begrudgingly. The task was so boring and mind-numbing that I worried the task was a representation of the rest of my life.

    Out of force of habit, I compulsively checked my emails countless times a day only to be continually disappointed when I saw shopping emails imploring me to buy the latest whatever.

    Eventually, I noticed a change in myself

    Day by day, week by week, I felt myself growing lighter. The furrow between my eyes faded. I didn't realize how often I had screwed my face in concentration trying to solve the latest problem. I didn't realize the extent of the weight I had been carrying on my shoulders — the weight of a team of 35 people and thousands of clients. The weight of the bushfire that I imagined was out there flickering, always threatening to flare up and damage the business, finally dissipated.

    I started filling my days with things other than work and the 100+ emails that needed answering every day.

    I met up with neglected friends and kept surprising myself as I told them I would fit in with their week. I no longer had to see when I could squeeze in a coffee date. I no longer had to take my laptop with me to the hairdresser or send emails while I was grocery shopping.

    On our usual morning walk with our fur baby Golden Retrievers, my husband and I were able to slow down. The walks became longer and less hurried. We often finished with a leisurely coffee at a café.

    Plus, we started traveling more and for longer periods.

    Sure, I'm spending more time with my husband, but our time together now is more meaningful. And it's giving me a reason to find the new me.

    I'm trying to write a new chapter for myself

    As I explored who I wanted to become outside my career and outside my marriage, I decided I should start to write. I've signed up for a few online writing courses. I have started experimenting with flash fiction, short stories, memoirs, poetry, and travel writing.

    Eighteen months into retirement, I can see that this period of my life is a gift. I can stop rushing, and I can start nourishing myself with things that I want to do. I have the luxury of time and the freedom to do what I want when I want. I can be present and not preoccupied.

    Early retirement has gifted me the opportunity, quite literally, to write another chapter of my life — and this chapter is all about me.

    Read the original article on Business Insider

  • Mortgage rates have dipped below 7% — providing home buyers some much-needed relief

    people buying home
    In recent years, high home prices and mortgage rates have made homeownership feel out of reach for many Americans.

    karenfoleyphotography/Getty Images

    • The 30-year fixed mortgage rate fell to 6.94% last week, the first drop below 7% since March.
    • Mortgage applications rose this week to their highest level since March, showing increased demand.
    • For mortgage rates to keep falling, inflation will likely have to cool further. 

    One key part of buying a home became a bit more affordable last week, and some Americans decided to take advantage.

    The 30-year fixed mortgage rate fell from 7.02% to 6.94% in the week ending June 14, according to a Bloomberg report that cited Mortgage Bankers Association data released on June 19. This was the first time the 30-year fixed mortgage had fallen below 7% since March.

    In the same week, the MBA's index of mortgage applications rose 1.6% to its highest point since March — signaling an uptick in homebuyer demand.

    In recent years, high home prices and mortgage rates have made homeownership feel out of reach for many Americans. Business Insider has interviewed several people who have moved in recent years in the hopes of finding lower rents or mortgage payments.

    To be sure, the majority of US households own their homes — nearly 66% did so as of 2022, according to the Census Bureau. But aspiring homeowners who missed out on relatively lower home prices and significantly lower mortgage rates of recent years have been dealt a tougher hand.

    Some additional relief could also be on the horizon: 30-year mortgage rates are expected to fall to between 6.5% and 7.0% this year — though this would still be much higher than the sub-3% rates seen in 2020 and 2021.

    The recent decline in mortgage rates was indirectly tied to the government inflation data released last week — which showed that price growth in May was slower than expected. For mortgage rates to fall considerably further, inflation will likely have to continue to cool.

    Read the original article on Business Insider

  • 5 things to watch on the ASX 200 on Thursday

    Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.

    On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged lower. The benchmark index fell 0.1% to 7,769.7 points.

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

    ASX 200 expected to fall again

    The Australian share market looks set to fall again on Thursday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower this morning. In the United States, the Dow Jones was up 0.15%, the S&P 500 rose 0.25% and the Nasdaq edged higher. The S&P 500 closed at a new record high overnight.

    Oil prices soften

    ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$81.47 a barrel and the Brent crude oil price is down 0.1% to US$85.27 a barrel. Traders may have been taking profit after oil prices hit a seven-week high.

    Buy QBE shares

    QBE Insurance Group Ltd (ASX: QBE) shares are good value according to analysts at Goldman Sachs. In response to its half-year trading update and North American strategic review, the broker has reiterated its buy rating with a trimmed price target of $20.60. The broker commented: “North America de-risking positive but New Caledonia eliminates CAT buffer.”

    Gold price falls

    It could be a soft session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$2,342.7 an ounce. This appears to have also been driven by profit taking.

    Helia rated neutral

    The Helia Group Ltd (ASX: HLI) share price crashed 20% yesterday amid news that Commonwealth Bank of Australia (ASX: CBA) intends to issue a request for proposal relating to its external Lenders Mortgage Insurance (LMI) requirements for the whole CBA group. This sparked fears that Helia could lose a contract that represented approximately 53% of its gross written premium in FY 2023. Goldman Sachs has responded by holding firm with its neutral rating and $4.53 price target. It said: “Importantly, our discussion with the company today has left us confident that, to the extent it was to lose the CBA contract, it should be able to distribute the resulting capital release.”

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs 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.

  • 2 of my favourite ASX ETFs for Australian investors

    Businessman at the beach building a wall around his sandcastle, signifying protecting his business.

    ASX-listed exchange-traded funds (ETFs) can provide Aussie investors with exposure or strategic allocation to sectors and companies that their portfolios may lack.

    Many Aussies may be shareholders in the largest individual stocks of BHP Group Holdings Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

    Plenty of other Aussies may have investments in ETFs like Vanguard Australian Shares Index ETF (ASX: VAS), SPDR S&P/ASX 200 ETF (ASX: STW), iShares Core S&P/ASX 200 ETF (ASX: IOZ) and BetaShares Australia 200 ETF (ASX: A200). These ETFs provide the same heavy weighting as those large ASX blue-chip shares I mentioned above.

    I believe Aussies would benefit by investing in ASX ETFs that provide exposure to quality businesses from different sectors, listed in different countries. That’s why I like the below two options.

    VanEck Morningstar Wide Moat ETF (ASX: MOAT)

    The idea of this fund is to invest in competitively advantaged US companies at good prices.

    It only considers businesses with an economic moat that are expected almost certainly to endure for the next decade and more. Competitive advantages can come in many forms, including cost advantages, brand power, patents, switching costs, network effects, etc.

    With a shortlist of these quality US businesses, the Morningstar analyst team only buys shares when they believe a stock is trading at an attractively below-fair price for that company.

    Past performance shouldn’t be viewed as a reliable indicator of future performance, but over the past five years, the MOAT ETF has returned an average of 16.2% per annum.

    At the moment, the portfolio has three holdings with a weighting of more than 3%: Teradyne, Alphabet, and International Flavors & Fragrances.

    VanEck MSCI International Quality ETF (ASX: QUAL)

    There are a number of ways to create a quality international portfolio. This ASX ETF applies a number of quality scores based on different financial metrics, leading to a group of high performers with a strong combined score.

    To make it into this portfolio of 300 holdings, businesses must have a high return on equity (ROE), earnings stability and low financial leverage. This means that these companies typically do not experience drops in profits. They are able to generate substantial profits relative to the amount of shareholder money (equity) invested in the business and maintain low levels of debt.

    These are the businesses inside the portfolio with a weighting of at least 2%: Nvidia, Apple, Microsoft, Meta Platforms, Alphabet, Eli Lilly, Novo Nordisk, ASML and Visa.

    Over the past five years the QUAL ETF has returned an average return per annum of 17.6%, though this shouldn’t be relied upon to predict future returns.

    The post 2 of my favourite ASX ETFs for Australian investors appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. 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 ASML, Alphabet, Apple, CSL, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and Teradyne and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Alphabet, Apple, CSL, Meta Platforms, Microsoft, Nvidia, and VanEck 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.

  • More than half of banking jobs could be automated by AI — but banks will be slow to adopt, Citi report says

    wall street 2030 wealth management 4x3

    Simon Dawson/REUTERS; Samantha Lee/Business Insider

    • A new Citi report says finance will be "at the forefront" of changes due to artificial intelligence.
    • Banking jobs are most at risk of AI-driven displacement, the report says.
    • The adoption of AI in finance, however, will be slow due to regulatory challenges and other factors.

    AI has already been thought to have the potential to change jobs in every industry profoundly. But, according to a new report from Citigroup researchers, "finance will be at the forefront of the changes."

    "What a bank or financial firm looks like in the mid-2020s, be it retail or wholesale finance, looks very different to the mid-1980s, or the mid-1940s," the report said. "AI will repeat this cycle, possibly speeding it up."

    While general-purpose technologies, or GPTs, create new opportunities for innovation and can improve quality of life, "they also destroy existing ways of doing things," the report added. "And as such, they also create losers, especially in the short term."

    With data pulled from Accenture Research and the World Economic Forum, Citi's researchers said that about 67% of banking jobs have "higher potential" to be automated or augmented by AI. That means "banking jobs" (which the report didn't narrowly define) have the highest potential for AI-led job displacement.

    However, according to Citi, a decline in head count may be partially or completely offset by an increase in AI-related compliance managers and ethics and governance staff.

    One upside Citi pointed out, however, is that they estimate the profit pool for the 2023 global banking sector "could increase 9% or $170 billion from the adoption of AI, rising from just over $1.7 trillion to close to $2 trillion."

    Citi chart on AI's impact on finance jobs
    Part of page 22 of Citi's report.

    Citi's AI in FInance report.

    AI adoption in finance will be slow

    The Citi researchers believe the "pace of implementing modern AI tools in financial services, in particular, GenAI, will be relatively slow when compared to other sectors," they said in the report, in part because of the "highly regulated nature of the sector and lack of 'ready to go globally aligned rules.'"

    "A regulatory landscape is evolving in some jurisdictions, but it is a challenging road ahead for financial services firms when it comes to implementation because countries are moving to different speeds, taking different approaches towards regulation and in some cases changing their position on whether to regulate," it said.

    In an interview featured in the report, Shameek Kundu, the head of financial services and chief strategy officer at TruEra, weighed in on the same point.

    "I would describe traditional AI adoption in financial services as: widespread, shallow, and inconsequential," said Kundu.

    Kundu explains that there are "a large number of enterprises experimenting with AI across different use cases," yet "limited scale of AI adoption across use cases" and a "limited perceived impact of AI system failures on critical business operations."

    He cited a 2022 Bank of England survey, which found that "72% of firms reported using or developing machine learning applications," yet the "median number of ML applications for mainstream UK financial institutions to be just 20-30" and "less than 20% of the already few AI use cases were critical to business."

    Read the original article on Business Insider