• Russia says the US doesn’t have any reason to worry about the nuclear submarine and the massive warship its navy has cruising off the coast of Cuba

    People look at the class frigate Admiral Gorshkov, part of the Russian naval detachment visiting Cuba, arriving at Havana's harbour, June 12, 2024.
    People look at the class frigate Admiral Gorshkov, part of the Russian naval detachment visiting Cuba, arriving at Havana's harbour, June 12, 2024.

    • The Kremlin has said that its navy vessels stationed off of Cuba pose no threat.
    • The submarine and navy frigate sailed there for military exercises in the Caribbean.
    • Russia's assurances come despite the fact that the vessels are some of Moscow's most lethal assets.

    The arrival of powerful missile-capable naval assets in Cuban waters should not set off alarm bells, Russia said to the US.

    A navy frigate and the nuclear-powered submarine pulled into Cuba's coast near Havana on Wednesday, ahead of air and military exercises in the Caribbean. Along with two other vessels, these Russian navy assets were scheduled to be stationed in Cuba for a five-day visit.

    "This is a normal practice for all states, including such a large maritime power as Russia," Kremlin spokesman Dmitry Peskov told reporters, per Reuters. "So we don't see any reason to worry in this case."

    Russia's reassurances that the vessels in Cuba pose no harm come in spite of the fact that they are some of the Kremlin's most lethal military assets.

    For one, the Kazan submarine currently near Havana is one of the new Severodvinsk class vessels. The submarines in this class are hard to detect and have a dangerous combination of stealth and striking power — and as such, have vexed the US and NATO for years.

    Also in Cuba is the Admiral Gorshkov Russian frigate, which is armed to the teeth with Putin's prized Zircon scramjet-powered hypersonic cruise missiles. The weapons, which the Kremlin claims are unbeatable, are relatively new in Moscow's arsenal.

    The Cuban foreign ministry, for its part, echoed Russia's sentiments, saying that the vessels pose no threat, per Reuters.

    In a press conference on Tuesday, Pentagon Press Secretary Sabrina Singh said that the Department of Defense is monitoring the situation, but does not anticipate any threat from the warships.

    "Again, I think what's important here is that what Russia is doing in these exercises, they don't pose a threat to the United States, but of course we're going to continue to monitor," she said.

    The arrival of the ships is largely seen as a flex by Russia to compensate for its major losses in the Black Sea.

    In April, Ukraine said that it used drones, missiles, and other weapons in its arsenal to destroy many Russian warships.

    And while US officials may be quick to say there's no immediate threat, the Los Angeles-class USS Helena attack submarine US attack submarine sailed up to Guantanamo Bay — about 500 miles away from the Russian vessels on Thursday — shortly after Russia's Kazan sub showed up.

    The US Southern Command said in a statement on X on Thursday that the sub was there as part of a routine port visit.

    Representatives for the US Southern Command and Russian defense ministry didn't immediately respond to a request for comment from Business Insider sent outside regular business hours.

    Read the original article on Business Insider
  • Medibank shares: Here’s the dividend yield you’ll get today

    Stethoscope with a piggy bank and hundred dollar notes.

    Ever since Medibank Private Ltd (ASX: MPL) shares were first wrested from government hands and privatised back in 2014, investors have been anticipating hefty dividend income from this health insurance giant.

    Those investors haven’t been disappointed. Medibank has paid out remarkably consistent dividend payments since its ASX debut. That’s despite the Medibank share price itself delivering fairly lacklustre growth in recent years.

    Sure, today the company is around 70% above the ~$2.20 share price it hit the ASX boards at back in late 2014. But Medibank shares have only appreciated by around 9.3% over the past five years.

    Have a look at the Medibank share price’s recent (and not so recent, if you wish) performance for yourself below:

    But let’s get down to Medibank’s dividends. 

    What’s the current dividend yield on Medibank shares?

    The ASX 200 health insurance provider has paid out two dividends every year since 2015. Over the past 12 months, Medibank has doled out a final dividend worth 8.3 cents per share (back in October 2023) and an interim dividend (March) of 7.2 cents per share. Both dividend payments came with full franking credits attached, as is the norm for Medibank stock.

    That’s an annual total of 15.5 cents per share. Plugging that into the current Medibank stock price of $3.71 (at the time of writing), we get a trailing dividend yield of 4.18%. If we include the value of Medibank’s full franking credits, this yield grosses up to 5.97%.

    As we touched on before, Medibank’s dividends have been on a generally upward trajectory ever since the company’s ASX listing. Back in 2016, Medibank funded an annual total of 11 cents per share in dividend payments. But over 2023, the company forked out a total of 14.3 cents per share in payouts.

    Medibank has also increased its annual dividend every year since 2020. That year saw shareholders receive 12 cents per share in dividends. But 2021 had Medibank fork out 12.7 cents per share, rising to 13.4 cents in 2022 and to 14.3 cents by 2023.

    What about the future?

    The interim dividend of 7.2 cents per share from March this year was a hefty rise over 2023’s equivalent payout of 6.3 cents. So it looks as though this streak of delivering consistently rising dividends is set to continue this year.

    That’s a belief held by one ASX expert, anyway. As my Fool colleague James covered earlier this month, ASX broker Goldman Sachs is predicting Medibank will pay out a total of 16 cents per share in dividend income over FY2024, rising to 17 cents per share in FY2025.

    If Goldman is on the money here, investors can expect a forward yield from Medibank stock of 4.19% and 4.6%, respectively.

    Let’s see if Goldman is on the money and Medibank shareholders continue to enjoy a rising dividend yield.

    The post Medibank shares: Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

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  • Down 40% in under 3 years, is the Lynas share price due a bounce?

    A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

    Over the past three years, the Lynas Rare Earths Ltd (ASX: LYC) share price has been disappointing. Lynas shares have dropped more than 40% from their all-time high in January 2022 to just over $6 today.

    Despite this underperformance, the Lynas share price is still 130% higher over the last five years, handily outpacing the S&P/ASX 200 Index (ASX: XJO), which gained approximately 18% over the same period.

    Weak consumer demand for electric vehicles (EVs) and falling global rare earth prices are largely behind such dramatic share price fall.

    However, after a 40% drop in its stock value, is this battery metal miner ready to rebound when the global commodity market recovers?

    Why did the Lynas share price drop so much?

    China dominates the rare earths market with a 70% share in mining and a 90% processing capacity. Lynas is one of only two non-Chinese companies selling rare earths, the critical element in producing EVs and military devices. The other producer is MP Materials Corp (NYSE: MP) located in the United States.

    Behind the sluggish share price movement is underwhelming consumer demand for EVs, which heavily use rare earth materials for batteries and other critical components.

    The weak demand has pushed down the global rare earths prices, impacting revenue and profitability for producers like Lynas.

    According to Lynas’ quarterly updates, China’s domestic prices for neodymium and praseodymium (NdPr) oxide, one of the important types of rare earth elements, have halved to US$43 per kilogram in a year. This is less than a third of the metal’s peak price of $144 per kilogram in March 2022.

    What experts say about global rare earths price outlook

    Former BHP copper boss Darryle Cuzzubbo is optimistic about the long-term outlook for the rare earths market. In a May 2024 interview with the Australian Financial Review, he referenced projections from Arafura Rare Earths Ltd (ASX: ARU), predicting a supply shortfall by 2032 with global production expected to reach only 65,000 tonnes, far below the anticipated demand of around 126,000 tonnes.

    That said, price predictions for any commodities are difficult as the supply and demand dynamics keep on changing. Just yesterday, Europe’s largest deposit of rare earth elements was discovered at Fen, Norway. This news, as my colleague James summarised, pushed down the share prices of rare earths producers.

    The good news is that Lynas is one of the few producers generating positive operating cash flows at the current low prices. Many other producers remain in the red. This means there could be industry consolidation ahead of us, and if it happens, Lynas has a better chance of becoming the survivor.

    What do brokers say, and who else is positive about Lynas?

    Mining magnate Gina Rinehart seems to think it’s a good time to invest in this critical metal producer. In April 2024, she became a major shareholder in Lynas, holding 5.8% through her company, Hancock Prospecting.

    The same company bought 5.3% of the other non-China rare earth producer MP Materials in the US earlier this year. This series of share purchases sparked speculation that she may play a pivotal role in a potential merger between Lynas and MP Materials, as the Australian Financial Review reported.

    Brokers see an upside from the current Lynas share price. UBS is cautiously optimistic saying rare earths prices have likely bottomed while not ruling out the possibility of further downside.

    Goldman Sachs is another broker remaining optimistic. In a report in April 2024, summarised by my colleague Bronwyn, Goldman highlighted better-than-expected production volume from Lynas Advanced Materials Plant (LAMP) in Malaysia and the Lynas shares’ cheap valuation metrics.

    Foolish takeaway

    In the mining sector, navigating the ups and downs of global commodity cycles is inevitable. Lynas stands out as a key rare earths producer outside of China, offering a unique market position amid intensifying geopolitical tensions.

    In my view, the recent dip in Lynas’s share price could present a compelling buying opportunity for long-term investors.

    The post Down 40% in under 3 years, is the Lynas share price due a bounce? appeared first on The Motley Fool Australia.

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  • 3 ASX 200 shares going gangbusters in June

    The S&P/ASX 200 Index (ASX: XJO) is up 0.3% so far in June, with three ASX 200 shares doing a lot of the heavy lifting.

    Which three stocks have really been going gangbusters this month?

    I’m glad you asked!

    ASX 200 shares flying higher in June

    The first high-flying ASX 200 share in June is electronics retailer JB Hi-Fi Ltd (ASX: JBH).

    JB Hi-Fi shares closed out May, trading for $58.23. In afternoon trade today, shares are changing hands for $63.39. That puts the JB Hi-Fi share price up 8.6% so far in June. Shares are now up 50% since this time last year.

    JB Hi-Fi shares also trade on a fully franked dividend yield of 4.3%.

    The last price-sensitive announcement from the company was a reasonably strong quarterly sales update on 9 May.

    Investors appear to have been bidding up the ASX 200 share in June ahead of the pending stage 3 tax cuts and a raft of cost-of-living relief measures contained in the Federal budget. With most Aussies looking at pocketing significantly more money in the year ahead, JB Hi-Fi could enjoy a material uptick in sales.

    Pro Medicus Ltd (ASX: PME) is the second ASX 200 share to charge higher in these first two weeks of June.

    Shares in the health imaging company closed out May trading for $120.12. At the time of writing, shares are changing hands for $132.54 apiece, up 9.3% in June. That sees the Pro Medicus share price up an eye-watering 104.5% since this time last year. Pro Medicus shares trade on a fully franked 0.3% dividend yield.

    The most recent share price momentum was driven by the company’s 28 May announcement that its wholly owned US subsidiary, Visage Imaging, had signed five new customer contracts. Pro Medicus said the new contracts have a total value of at least $45 million.

    In a nod to its growing AI ambitions, the new contracts will be fully cloud-deployed and are expected to be completed within the next six months.

    “Despite record new contract signings this year, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments likely helping,” Pro Medicus CEO Sam Hupert said on the day.

    Also soaring in June

    Rounding off the list of ASX 200 shares going gangbusters in the first half of June is Bapcor Ltd (ASX: BAP).

    Shares in the auto parts company closed out May trading for $4.25. In afternoon trade today shares are changing hands for $5.00 apiece, up 17.7%. The Bapcor share price remains down 14.8% since this time last year. Bapcor shares also trade on a 4.2% fully franked trailing dividend yield.

    The big June boost for the Bapcor share price came on Tuesday this week.

    Investors sent the ASX 200 share up 14.0% on the day after management confirmed media speculations that the company had received a non-binding takeover proposal from United States-based private investment firm Bain Capital.

    The $5.40 per share cash offer values Bapcor at more than $1.8 billion.

    There is not yet any guarantee that the takeover offer will proceed.

    The post 3 ASX 200 shares going gangbusters in June 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 Pro Medicus. The Motley Fool Australia has recommended Bapcor, Jb Hi-Fi, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Is there any chance of an interest rate cut in Australia next week?

    A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.

    The Reserve Bank will make its next decision on interest rates next Tuesday.

    All of the Big Four banks are expecting rates to remain on hold. For several months, they’ve all been tipping the first cut to occur in November, with four more cuts to follow over the course of 2025.

    This week, ANZ Group Holdings Ltd (ASX: ANZ) became the first of the four to alter its view.

    ANZ now expects the first cut to occur in February, with only two more to follow by the end of the year.

    What are the experts saying on interest rates?

    Gareth Aird, Head of Australian Economics at Commonwealth Bank of Australia (ASX: CBA), is sticking with his November forecast for the first interest rate cut.

    However, he says the chances of it being delayed are increasing due to signs of stickier inflation.

    Aird commented:

    Our expectation for a more material loosening in the labour market relative to the RBA’s forecasts is a key reason why our base case sees the RBA commence an easing cycle in late 2024.

    But given the challenging underlying inflation backdrop and a shortening runway between now and November, the risk to our call is increasingly moving towards a later start date for an easing cycle.

    Luci Ellis, Chief Economist at Westpac Banking Corp (ASX: WBC), is also tipping November or thereabouts for the first rate cut.

    Ellis said:

    The likely trajectory of disinflation from here precludes a rate cut much before November.

    The trimmed mean measure of inflation was still a full percentage point above the top of the target range over the year to the March quarter. The Bank will be watching this measure more closely as temporary factors buffet the headline measure in coming quarters.

    However, even with a further moderation in trimmed mean inflation, it will take time for enough evidence to accumulate to convince the Board that the disinflation is firmly on track to reach 2-3% on a sustained basis.

    The main thing that would cause the RBA to push back the timing of its first rate cut is inflation remaining sticky above the target range.

    AMP Ltd (ASX: AMP) Chief Economist Share Oliver said 25% of the world’s central banks had begun cutting rates.

    The central banks in Canada and Europe cut rates by 25 basis points earlier this month.

    However, Australia began its interest rate hiking cycle later than other major economies. Therefore, we are not as far along in taming inflation as other economies, so we are likely to cut rates later.

    Dr Oliver said:

    The RBA will still want to see lower inflation readings, how the economy responds to the tax cuts next month and more confidence that inflation will decline sustainably into the 2-3% target …

    But we continue to see the first rate cut coming by year end as continuing weaker than expected economic conditions provide the confidence it needs regarding the inflation outlook.

    Interestingly, after the GDP data the money market removed the probability of another rate hike and is now allowing for around a 46% chance of a cut by year end.

    The post Is there any chance of an interest rate cut in Australia next week? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bronwyn Allen has positions in Anz Group and Commonwealth Bank Of Australia. 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.

  • China says 2 military employees sold 60 pounds of secret documents to a recycling plant, allowing a shopper to bag 4 volumes for under $1

    Chinese paramilitary police border guards train in the snow at Mohe County in China's northeast Heilongjiang province, on the border with Russia, on December 12, 2016.
    Chinese paramilitary police border guards train in the snow at Mohe County in China's northeast Heilongjiang province, on the border with Russia, on December 12, 2016.

    • China on Thursday highlighted an intelligence gaffe involving 200 sensitive military documents.
    • It said two military personnel who were supposed to destroy the documents sold them for under $4.
    • A retiree bought four volumes of the secrets for about $0.85 from a recycling plant, authorities said.

    China's State Security Ministry said on Thursday that a retiree had somehow secured four volumes of confidential military documents at a recycling store for just 85 cents.

    The ministry described the incident in a social media post encouraging the public to be vigilant on national security matters, and praised the retiree for reporting the documents to authorities.

    He was identified as "Grandpa Zhang." Chinese authorities and media typically do not publish the full names of people who don't have a high profile.

    According to the post, Zhang is a former employee of a state-owned enterprise and collects military newspapers and magazines as a hobby.

    He was walking in his neighborhood when he passed a scrap store selling two bags filled with books that seemed related to the military, per authorities.

    Excited with his find, he paid about 6 Chinese yuan, or $0.85, for one bag of four volumes and brought them home, according to the ministry.

    At home, Zhang studied the books, realized they were marked as "confidential" and "secret," and reported them to a public security hotline, authorities added.

    The State Security Ministry said agents rushed to Zhang's home and seized the documents. The ministry did not say where Zhang lives.

    Upon investigating the scrap store, the state security ministry discovered that Zhang's purchase had been part of eight volumes of 200 secret documents marked for disposal, the post reads.

    It said two military personnel in a classified unit, who were identified only as Guo and Li, were tasked with shredding the documents but instead sold them to a recycling plant for about $0.06 per pound. The entire tranche of documents weighed about 60 pounds, meaning the duo made a profit of less than $4 for the entire sale, authorities added.

    The ministry criticized the pair as having a "weak sense of confidentiality" and "greed for convenience's sake" but said that the incident did not create a significant intelligence leak.

    It said that Guo and Li, as well as anyone else responsible, were dealt with under Chinese law and that the ministry oversaw a revamp of procedures to avoid similar gaffes.

    The post on Thursday was part of a push by the State Security Ministry to promote a hotline that Chinese people can use to report national security lapses.

    It's unclear what information the documents mentioned by the ministry contained, so it's difficult to say how a leak of such secrets may have affected the Chinese military.

    China's State Security Ministry has, in recent months, regularly urged the public to assist in reporting foreign espionage. In April 2023, Beijing made sweeping changes to its anti-espionage law. These changes broadened the definition of spying and banned the transfer of national security information.

    Such posturing from China also comes against the backdrop of heightened US-China tensions, particularly over allegations of espionage between the two rivals. The CIA announced in 2021 that it had established a mission center focused solely on China, while Beijing has recently been on the radar for imprisoning businessmen from the US and its allied countries on accusations of spying.

    In July 2023, CIA Director William Burns rankled Beijing by saying at a Colorado security forum that his agency has been recruiting businesspeople and Chinese officials for its spy networks.

    "We've made progress and we're working very hard over recent years to ensure that we have a strong human intelligence capability to complement what we can acquire through other methods," he said, per The Wall Street Journal.

    China, in return, accused Burns of lying and vowed to take "all necessary" countermeasures to American espionage.

    Read the original article on Business Insider
  • It’s all roses and rainbows today in Austin, one Tesla analyst says of Musk’s mega payday vote

    A Tesla car charging up at a Tesla Supercharger.
    A Tesla car charging up at a Tesla Supercharger.

    • Tesla's shareholders approved Elon Musk's $55 billion pay package and the company's move to Texas.
    • Wedbush analyst Dan Ives called the result a "pop the champagne moment" for Tesla investors.
    • Ives added that if the proposal "went south," some "bad things" could have happened.

    At least one analyst is extremely optimistic about how Tesla's shareholders voted.

    Wedbush Securities analyst Dan Ives called Tesla chief Elon Musk's victory a "pop the champagne moment" for investors in a note on Thursday. Ives predicted the result of the much-hyped vote would remove a $20 to $25 overhang on the EV maker's stock.

    The Tesla vote focused on two main issues: the company's move from Delaware to Texas, and approval of Musk's $55 billion pay package, which was largely seen as a referendum on his leadership.

    "If this proposal went south a lot of bad things and scenarios could have happened including Musk beginning a path to not being CEO of Tesla," Ives, a Tesla bull, wrote in the note. "Instead it's roses and rainbows today in Austin."

    Ives' comments on the risk that Musk would leave Tesla came amid growing concerns that if the pay package had been thrown out, Musk might slowly lose interest in the EV giant and divert attention to his other ventures.

    The Tesla CEO in January also threatened to slash AI development if he doesn't have control over at least 25% of the votes.

    Ives, for his part, rated the stock at "outperform" with a $275 price target, an upside of 45% from current levels. Analyst consensus marks the stock's price at about $173.

    Despite his positive comments, Ives also talked about a headwind for Tesla — slowing demand.

    In April, amid choppy demand for EVs in general and fierce competition from Chinese rivals, Tesla reported its lowest quarterly deliveries since 2022, and its biggest-ever miss compared to analyst expectations.

    In the same month, it slashed prices of existing cars and announced the production of cheaper cars to stir demand.

    "We believe the setup in the coming weeks is more negative with delivery downside risks," analyst Ronald Jewsikow from Guggenheim wrote in a separate note on Thursday.

    Read the original article on Business Insider
  • Tom Brady says he struggles to find something to do during retirement that’s as thrilling as football

    Tom Brady poses at the E1 Venice GP 2024 on May 10, 2024 in Venice, Italy
    Tom Brady can't replace the thrill of football in retirement.

    • Tom Brady, who retired from the NFL last year, says he misses playing football professionally.
    • He told Us Weekly that "nothing's going to replace the thrill" of being on the field with his teammates.
    • Since retirement, he's been investing in various sports teams and is set to start commentating for Fox Sports in the fall.

    Tom Brady, 46, may have retired from the NFL over a year ago, but he's still getting used to it.

    In an interview with Us Weekly published on Thursday, the seven-time Super Bowl winner said being retired feels "different" from being in the professional football league.

    "I mean, nothing's going to replace the thrill of running out on the field in front of 70,000 people doing something that I love to do with a great group of teammates," Brady told Us Weekly.

    Brady first announced his retirement from professional football in February 2022. Six weeks later, he decided to un-retire to play another season with the Tampa Bay Buccaneers.

    In February 2023 — a year after he made the first announcement — Brady announced he was retiring from the NFL again, this time "for good."

    "It was just time for me to try something different," Brady said. "But loved, obviously, every aspect that I had. I loved my teammates. I loved playing. I loved the communities that really embraced me and they gave so much to me in my life and they've made my life."

    Although still retired, Brady says he's dedicated to his fitness regime and wants to keep up his physique.

    "I've actually probably got a little more workout focused, try to dial in some things a little more specifically to what I need to eat and how I stay hydrated," he said.

    He also tries to ensure sufficient rest, although he says it's difficult because he travels a lot.

    "I feel like I'm always on the road, on an airplane," he added.

    It's no secret just how much Brady loves football: In April, he revealed that he wouldn't mind un-retiring again if a team needed a quarterback for the playoffs.

    Retired or not, Brady is big business

    Even though it may not be as thrilling as being on the field, Brady has been keeping busy in retirement by investing in various sports teams, such as the WNBA's Last Vegas Aces and Birmingham City FC.

    Early this year, he also secured a 10-year contract worth $375 million with Fox to become their lead color commenter. He is expected to start in the fall of 2024.

    Thanks to traits such as professionalism, being hardworking, and a willingness to take risks, it is no surprise that many athletes go on to have a successful second career post-retirement.

    Dwayne "The Rock" Johnson made a crossover from wrestling to Hollywood, with films like "The Mummy Returns," "Jumanji," and "Black Adam" under his belt. In 2016, he was even named the world's highest-paid actor.

    Jim Bunning, an MLB pitcher elected to the Hall of Fame in 1996, became a politician after retiring from baseball. He served in Congress until 2010 and died in 2017.

    Before his death, Kobe Bryant was also involved in numerous business and philanthropic ventures. He even won an Academy Award in 2018 for an animated short film he wrote and narrated, "Dear Basketball."

    Read the original article on Business Insider
  • Brokers name 3 ASX shares to buy now

    A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

    It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

    Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

    Bega Cheese Ltd (ASX: BGA)

    According to a note out of Bell Potter, its analysts have retained their buy rating on this diversified food company’s shares with an improved price target of $5.35. The broker has been looking at recent movement in indicators for the branded and bulk business as well as farmgate milk prices. While this has resulted in an earnings downgrade for FY 2024, it has lifted its earnings estimates for the next two years. In light of this, the broker estimates that Bega Cheese is trading at around 10x FY 2025 EBITDA. It notes that this is a reasonable discount to its 10-year average of 12.3x forward EBITDA. And with the broker feeling confident about Bega Cheese’s five-year outlook, it thinks this has created a buying opportunity for investors. The Bega Cheese share price is trading at $4.41 on Friday afternoon.

    BHP Group Ltd (ASX: BHP)

    A note out of Citi reveals that its analysts have retained their buy rating and $48.50 price target on this mining giant’s shares. Citi notes that its global commodities team has lifted its copper forecast by 20% to US$12,000 per pound to reflect increased demand due to the decarbonisation megatrend. In light of this, the broker has lifted its earnings estimates for the coming years. In addition, Citi is now forecasting an attractive 6%+ dividend yield from the Big Australian’s shares in FY 2025, boosting the total potential return further. The BHP share price is fetching $43.14 at the time of writing.

    Life360 Inc (ASX: 360)

    Analysts at Morgan Stanley have retained their overweight rating and $17.50 price target on this location technology company’s shares. According to the note, the broker has been looking into the potential of Life360’s recently announced advertising business. It highlights that Lyft Inc (NASDAQ: LYFT) has also announced similar ambitions. And given how ride sharing and location technology have similarities, it believes Lyft’s targets can be a guide to see what is possible for Life360. The good news is that the broker believes that Life360 can generate significant revenue from its advertising business even if it penetrates a much smaller portion of its massive user base compared to Lyft. The Life360 share price is trading at $15.02 today.

    The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Life360 right now?

    Before you buy Life360 shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.

  • 16% per annum: What is the VanEck Wide Moat ETF’s secret sauce?

    Man cooking and telling to be quiet with his finger on his lips, symbolising a secret sauce.

    The VanEck Morningstar Wide Moat ETF (ASX: MOAT) has achieved some eye-watering returns for its investors over the past few years.

    To illustrate, this exchange-traded fund (ETF)‘s latest update informs us that, as of 31 May, investors have banked an average return of 16.16% per annum over the past five years. MOAT unitholders have also received an average of 15.34% per annum since this ETF’s ASX inception back in 2015.

    That beats the pants off what most ASX ETFs have returned over that time frame. For example, the Vanguard Australian Shares Index ETF (ASX: VAS), which is currently the most popular ETF on the ASX, has returned an average of 7.81% per annum over the five years to 31 May 2024.

    So how has this high-flying ASX ETF pulled off such a consistently high return over so long? What is the secret sauce that enables these returns?

    What’s the VanEck Wide Moat ETF’s secret ASX sauce?

    To answer this question, let’s dive into how this ETF works. Unlike most popular ETFs, MOAT is not an index fund. Rather, it is an actively managed ETF that contains a curated and concentrated portfolio of around 70 stocks.

    These stocks are selected from the US markets based on an assessment of their possession of what’s known as a ‘wide economic moat‘.

    A ‘moat’ is a term coined by Warren Buffett that refers to an intrinsic competitive advantage that a company can possess over its competitors.

    It might be a strong brand or providing a product that consumers find difficult not to use or switch away from. It could also be a company’s cost advantage over competitors.

    Learning from Warren Buffett

    Buffett has made no secret about his love of a company with a strong moat. In fact, he usually only buys companies that have at least some form of moat. It clearly works for Buffett, given Berkshire Hathaway‘s incredible growth over the past 60 or so years.

    This is the secret sauce that the VanEck Wide Moat ETF attempts to harvest within its portfolio.

    As such, it’s no surprise to see names like Alphabet, Adobe, Disney, Altria, Pfizer, Nike, Microsoft, Amazon and Starbucks in MOAT’s current portfolio. All of these companies have a clear moat that they can use to keep competition at bay and profits growing.

    Just think of Disney’s intellectual property portfolio. Or Amazon’s ability to provide products at rock-bottom prices and have them at your door within a day or two. Or the reach of Microsoft’s Office and Windows software and the power of the Starbucks and Nike brands.

    Buffett told us that the best companies in the world usually have some kind of MOAT. The VanEck Wide MOAT ETF has taken this concept and run with it, which explains why this ETF is able to bang out such compelling returns.

    The post 16% per annum: What is the VanEck Wide Moat ETF’s secret sauce? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf right now?

    Before you buy Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vaneck Investments Limited – Vaneck Vectors Morningstar Wide Moat Etf wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Adobe, Alphabet, Altria Group, Amazon, Berkshire Hathaway, Microsoft, Nike, Starbucks, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares Index ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Amazon, Berkshire Hathaway, Microsoft, Nike, Pfizer, Starbucks, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Adobe, Alphabet, Amazon, Berkshire Hathaway, Microsoft, Nike, Starbucks, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.