Investors seeking stable income in a volatile market often turn to dividend stocks. One such compelling option on the ASX is Rural Funds Group (ASX: RFF), a real estate investment trust (REIT) specialising in agricultural assets.

With an attractive distribution yield of approximately 6% and the benefit of quarterly cash payments, Rural Funds offers a unique opportunity for income-focused investors.

Even better, Rural Funds is set to pay its quarterly dividends next week. Is now the perfect time to buy Rural Funds shares ahead of its ex-dividend date on 27 June?

Understanding Rural Funds Group

Rural Funds Group is Australia’s only diversified agricultural REIT. It owns a portfolio of high-quality agricultural assets, including almond orchards, vineyards, cattle and cotton properties, macadamia orchards, and water entitlements.

These assets are leased to experienced operators under long-term agreements, providing a stable income stream and potential for capital growth.

Farmland has been a valuable asset for centuries, and it is likely it will remain so for the foreseeable future. The long-term stability appeals to many investors, as my colleague Tristan highlighted. Additionally, the ongoing growth of both Australian and global populations is a significant tailwind for the business.

Why Rural Funds stands out for dividend investors

The Rural Funds unit price has dropped 35% from its all-time high of $3.18 in January 2022 and has hovered around the $2 mark over the past year.

At the current price, Rural Funds offers a distribution yield of 5.67%, higher than many other dividend-paying stocks on the ASX.

Unlike many ASX dividend shares that pay dividends semi-annually, Rural Funds provides quarterly distributions. This regular income can be especially beneficial for retirees who rely on passive income for their living expenses.

Rural Funds’ diversified portfolio across different agricultural sectors reduces the risk associated with any single commodity or market. The REIT’s properties are leased to reputable operators under long-term agreements, often with built-in rental escalations.

Trading below its book value

After the recent weakness in its unit price, Rural Funds is trading below its book value. Rural Funds is trading at a price-to-book (P/B) ratio of 0.73x based on its reported number. However, this includes its water entitlements at their book values. Adjusting for this, reflecting the estimated market value of these assets, the company estimates its net asset value (NAV) at $3.07 per unit as of 31 December 2023. This makes its adjusted P/B ratio even lower, at 0.67x.

Such attractive valuations caught eyes of some analysts. Bell Potter highlighted its attractive valuation and high distribution yield as the reasons to like Rural Funds, as my colleague James said.

The Rural Funds Group share price finished Friday’s trading up 0.98% at $2.07.

The post Income booster: Here’s an ASX dividend stock that yields 6% and provides quarterly cash payments appeared first on The Motley Fool Australia.

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• 3 ASX shares trading below their book values

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been another busy week for 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:

Life360 Inc (ASX: 360)

According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $17.75. Bell Potter notes that Life360 has announced that its Life360 app has now surpassed 2 million paying circles. This was notably ahead of the broker’s expectations. In fact, Bell Potter was only expecting 1.98 million paying circles at the end of the first half. It feels this bodes well for the company going into the seasonally strong third quarter of the year. As a result, its analysts appear confident that the company is destined to deliver another strong result this year. The Life360 share price ended the week at $15.66.

Light & Wonder Inc (ASX: LNW)

A note out of Morgans reveals that its analysts have initiated coverage on this gambling products and services provider’s shares with an add rating and $172.00 price target. According to the note, the broker has been impressed with Light & Wonder’s restructuring and rebranding. It notes that this has resulted in the significant capture of land-based market share in Australia. While that is positive, the real reason Morgans is bullish is that it believes Light & Wonder can replicate this in the massive United States market. In addition, its analysts highlight that its digital segments are performing well, with its social casino division, SciPlay, significantly outpacing the rest of the market. The Light & Wonder share price was fetching $152.18 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Morgan Stanley have upgraded this supermarket giant’s shares to an overweight rating with an improved price target of $37.00. According to the note, the broker made the move in response to the release of the results of a major household survey. These results have made the broker more positive on the supermarket industry. This is because it feels that the survey points to consumer trends that will lead to better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the survey point to Woolworths being the biggest winner from these trends. As a result, it has promoted the company to be its top industry pick. The Woolworths share price ended the week at $33.63.

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

More reading

• The Woolworths share price is down 16%: Time to buy the stock?
• Brokers name 3 ASX shares to buy now
• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Here are the top 10 ASX 200 shares today
• Could Woolworths shares beat the market in FY25?

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 and Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Having passive income would certainly be very helpful in the current environment.

Unfortunately, unless you’re lucky enough to already have a bank account filled to the brim with cash, it’s going to be too late to generate a sizeable income from the share market immediately to combat the cost of living crisis.

However, don’t let that stop you from making it a long term goal, so that you are ready to tackle any cost of living shocks that could happen in the future.

Generating $1,000 of monthly passive income from the ASX

If you wish to pull in $1,000 of monthly passive income from the ASX, you’re going to need to generate $12,000 of dividends each year.

The good news is that there are a fair number of ASX shares on the local bourse that analysts are forecasting to provide 6%+ yields. This includes the likes of APA Group (ASX: APA), Stockland Corporation Ltd (ASX: SGP), and Accent Group Ltd (ASX: AX1).

If you are able to build a diversified portfolio of ASX shares that provides you with an overall yield of 6%, you would need a portfolio valued at $200,000 to generate total dividends of $12,000 a year.

Investors that already have this amount of cash to invest can now do this and relax and watch the passive income come in. But if you’re starting from zero, you will need a plan.

How to get started

The first step for passive income investors to take is to make consistent investments in the share market.

For example, if you can invest $5,000 into the share market each year, your portfolio would grow to be worth $200,000 in 16 years if you achieved an average total return of 10% per annum. This is broadly in line with historical averages, so not guaranteed but certainly possible.

After which, investors will need to find a high quality group of ASX shares to invest these funds into.

Investors may wish to build a diverse portfolio by splitting their $5,000 investment across a number of ASX shares. This could also include ETFs, which allow investors to buy large groups of shares in one go.

Next, let compounding work its magic. This is what happens when you earn returns on top of returns. It essentially supercharges your wealth, particularly the longer you leave it.

For example, 10 years of investing $5,000 and earning a 10% per annum return would turn into $88,000. But if you keep going just six more years, you will have grown your portfolio by a further $112,000 to the target amount of $200,000.

At that point, you now have enough to start generating material passive income from the ASX.

Overall, by following these steps, you could turn the ASX into your own personal ATM.

The post ASX passive income: Earn $1000/month appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• 3 ASX 300 real estate shares with attractive dividend yields
• Passive income powerhouses! 3 ASX shares I’d consider buying for rising dividends
• Buy these excellent ASX 200 dividend shares for very juicy yields
• 10 ASX shares that have raised dividends for a decade

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

If you’re a fan of ASX growth shares, then you will be pleased to know that analysts are predicting great returns from the seven listed below.

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

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be a buy is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a portfolio of pokie machines, digital games, and a fledgling real money gaming business.

Analysts at Citi are very positive on the company and have a buy rating and $53.00 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share to look at is Lovisa, which is a rapidly growing fashion jewellery retailer.

Bell Potter is very positive on the company due to its global expansion. In fact, it believes Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034. This is expected to support strong earnings growth over the next decade.

The broker currently has a buy rating and $36.00 price target on Lovisa’s shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that is rated as a buy is NextDC. It is one of Asia’s most innovative data centre-as-a-service providers.

Morgan Stanley is very positive on the company’s outlook. This is thanks to its belief that the data centre market will grow materially over the remainder of the decade.

The broker currently has an overweight rating and $20.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

Temple & Webster has been growing strongly in recent years thanks to the structural shift online. But the good news is that this shift is still in its early stages in this category compared to other Western markets.

As a result, the team at Morgan Stanley believes there’s still plenty more growth to come. It has put an overweight rating and $12.25 price target on its shares.

Webjet Limited (ASX: WEB)

A fifth ASX growth share that could be a buy is online travel booking company Webjet.

Morgans is bullish on the company due partly to its key WebBeds B2B business. It notes that there is still “significant market share still up for grabs,” which leaves Webjet well-positioned for the future.

Morgans has an add rating and price target of $11.20 on Webjet’s shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share that has been tipped as a buy is WiseTech Global.

It is the logistics solutions company behind the CargoWise One logistics management platform. This platform is integral to the global logistics industry, allowing users to execute complex logistics transactions and manage freight operations from a single, easy-to-use platform.

Demand continues to grow for CargoWise One, which is supporting very strong recurring revenue growth. It is partly for this reason that UBS currently has a buy rating and $112.00 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX growth share that could be a buy is Xero. It is a cloud accounting platform provider with an estimated global market opportunity of 100 million small to medium sized businesses. This compares to its current subscriber base of approximately 4.2 million.

Goldman Sachs believes this gives the company a multi-decade growth runway. Its analysts have a buy rating and $164.00 price target on its shares.

The post 7 excellent ASX growth shares to buy next week appeared first on The Motley Fool Australia.

More reading

• What’s ahead for ASX 200 travel shares in FY 2025?
• 1 ASX dividend stock to buy for growth and stay for a 5% yield
• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Up 78% in a year, is it too late to buy Lovisa shares?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Lovisa, Nextdc, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.