Tag: Fool

ASX share Adairs Ltd (ASX: ADH) paid its shareholders big dividends before inflation hit the Australian economy, and the Commsec forecast implies sizeable dividends could be on their way again.

A leading retailer of homewares in Australia, Adairs also sells furniture through its Mocka and Focus on Furniture businesses.

The ASX share may not seem like an obvious candidate for sizeable passive income, but there are a couple of important factors to focus on. The first mention goes to the company’s now very low price.

Extremely low valuation

Two inputs decide what a company’s dividend yield will be. There’s the dividend payout ratio – how much of its annual profit it pays to shareholders. There’s also the price/earnings (P/E) ratio – the multiple of earnings the business trades at.

ASX retail shares typically trade on a lower earnings multiple than some other sectors, such as technology. However, Adairs is on a particularly low P/E ratio.

According to Commsec’s estimates, Adairs shares are valued at just 9x FY24’s estimated earnings and around 6x FY26’s estimated earnings. As a comparison, the JB Hi-Fi Ltd (ASX: JBH) share price is valued at 15x FY24’s estimated earnings and just under 15x FY26’s estimated earnings, according to Commsec.

It’s understandable that investors are somewhat nervous about discretionary retailers at the moment because of the cost-of-living difficulties for households. Based on the RBA’s latest comments, interest rates appear likely to stay higher for longer, which may prolong the pain for some consumers.

Big dividend yield tipped

Adairs’ board has shown a willingness over the years to reward shareholders with a pleasing level of investment income.

As the chart below shows, the Adairs share price has fallen by around a third since 27 March 2024 and by around 60% since June 2021. A lower share price can raise the potential dividend yield.

The estimate on Commsec suggests that Adairs could pay a dividend per share of 10.8 cents in FY24 and 19.8 cents in FY26. That could translate into a grossed-up dividend yield of around 9% in FY24 and more than 16% in FY26.

Foolish takeaway

Despite the uncertainty of the current economic environment, Adairs could be a compelling investment because it is working on several profit improvement initiatives.

For example, the company’s transition to operating a new national distribution centre is improving its service and cost per unit dispatched. Adairs is also focused on managing its overall costs to return to an earnings before interest and tax (EBIT) margin of more than 10%.

In addition, the ASX share is looking to open additional upsized Adairs stores, close some smaller ones, open more Focus on Furniture Stores and keep improving Mocka’s inventory, margins and costs.

The post This ASX share is projected to pay a huge yield of 16% in 2026! appeared first on The Motley Fool Australia.

More reading

• What are 3 of the safest ASX consumer discretionary shares in Australia right now?
• ASX retail shares mixed amid modest April sales growth
• 2 ASX retail shares just upgraded by brokers (and 1 downgraded)
• Dump ’em! Top broker says sell these 3 ASX retail shares
• Here’s how the ASX 200 market sectors stacked up last week

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s never too early, or too late, to think about how adding to your superannuation might improve your retirement goals.

For the purposes of this article, we’ll look at what putting an extra $10,000 into superannuation in 2024 could be worth when the time comes to hang up your hat and kick up your feet.

Now, much of that is going to depend on your current age. And we’ll work with the assumption that you were born from 1957 onwards, meaning you’ll be 67 before you retire.

Depending on your super balance at that stage, you may be eligible for a full pension, part pension, or none at all, providing you’ve managed to grow your retirement nest egg to a sustainable size.

We won’t make any assumptions here about how large your overall superannuation pool will be at retirement. We’ll just look at the potential benefits off adding in that extra $10,000 this year.

How much could this help your final superannuation balance?

Now, aside from how much time you’ve got left before retirement, there’s another big variable at play here.

Namely, the kind of returns you can expect from your superannuation fund.

For a better idea of that, we turn to KPMG’s Super Insights 2024 report.

According to the report, “With global financial market growth, Australian superannuation funds posted strong investment returns. Average returns were 8.62% for the year FY 2023.”

This saw the total super assets under management in Australia grow to more than $3.5 trillion.

And the good news is that management fees, which can take a big bite out of your final nest egg, have been coming down.

According to KPMG, “Amid strong competition between super funds to attract and retain members, average fees continue to decline.” A positive trend the report says is likely to continue.

I should note, however, that the strong FY 2023 result came after most super funds posted losses in FY 2022.

Taking a longer-term perspective, the average return of Australian superannuation funds over the past 20 years sits at around 6.5%.

So, working with the 6.5% annual returns, if you were to add $10,000 to your superannuation in 2024 and aimed to retire in 10 years, that extra investment would be worth $19,122.

That’s already almost double in just 10 years.

However, by tapping into the magic of compounding, younger workers could do far better.

If you’re 47 and looking to retire in 20 years, that same $10,000 could balloon into $36,564.

And if you’re 27 and not aiming to retire for 40 years, adding $10,000 to your superannuation balance in 2024 could give you an extra $133,696 to enjoy in your golden years.

The post What an extra $10,000 of superannuation in 2024 could be worth in retirement appeared first on The Motley Fool Australia.

More reading

• 4 high quality ASX 200 growth shares to buy in June
• This ASX share is projected to pay a huge yield of 16% in 2026!
• Why Qantas could be one the best shares to buy in the Asia-Pacific
• Would I be crazy to buy Coles shares at $16?
• I think this excellent ASX ETF ticks all the boxes

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.

Qantas Airways Limited (ASX: QAN) shares could not only be one of the best options for investors in Australia, but also in the whole Asia-Pacific region.

That’s the view of analysts at Goldman Sachs, which have just added the airline operator’s shares to their highly coveted Asia-Pacific conviction list. These are the most compelling investment opportunities in the region according to the investment bank’s analysts.

And with only three other ASX shares making the list of 29, Qantas shares are in rarefied company.

What is the broker saying about Qantas shares?

The Flying Kangaroo has joined the likes of Lynas Rare Earths Ltd (ASX: LYC), Woolworths Group Ltd (ASX: WOW), and Xero Ltd (ASX: XRO), as well as Taiwan Semiconductor Manufacturing (NYSE: TSM) and Hyundai Motor Co, on the list after Goldman’s analyst, Niraj Shah, predicted that its valuation gap with peers would soon close.

Commenting on Shah’s bullish view on the airline, the broker said:

Niraj expects sustainably improved earnings capacity relative to pre-COVID, which is not reflected in Qantas’ current valuation. He believes market concerns around: 1) investment in fleet renewal and customer experience, and 2) willingness to return capital to shareholders, is reflected in Qantas trading on 6.4x FY25E P/E versus regional/US peers trading on 9.1x, a discount of 29%. This is more than 2x below the historical 5Y average discount of 14%. Niraj expects this gap to narrow as QAN delivers earnings that are sustainably above pre-COVID levels and demonstrates ability/willingness to distribute capital to shareholders while renewing the fleet.

Goldman’s analyst believes that earnings in FY 2024 will be up significantly on pre-COVID times and, importantly, be sustainable at these levels. The broker adds:

With capacity expected to be ~95% of pre-COVID levels in FY24E, Niraj forecasts group EPS of A$0.85, materially ahead of A$0.57 in FY19A, underpinned by the A$1bn cost out program implemented by the business during COVID and, importantly, he believes this is a sustainable reset, with an EPS forecast of A$0.96 in FY25E despite a 4% yoy decline in unit revenue.

In light of this, Goldman has put a conviction buy rating and $8.05 price target on Qantas’ shares. Based on its current share price of $6.10, this implies potential upside of 32% for investors over the next 12 months.

And with Goldman expecting a 4.9% dividend yield in FY 2025, there’s potential for some dividend income to come the way of shareholders by this time next year.

The post Why Qantas could be one the best shares to buy in the Asia-Pacific appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 shares are still cheap! Here’s one to consider buying now
• Top ASX shares to buy in June 2024
• Brokers name 3 ASX shares to buy now
• Qantas shares maintain altitude amid ‘historic’ $5 billion deal

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

The Coles Group Ltd (ASX: COL) share price has outperformed Woolworths Group Ltd (ASX:  WOW) over the past 12 months. Coles shares have fallen 8%, whereas Woolworths shares have dropped by 17% during the same period. At the time of writing, the Coles share price is trading at $16.56.

Both consumer staple stocks have underperformed the S&P/ASX 200 Index (ASX: XJO), which is up 8.6% over the past year. The retail sector has been hit hard by weak consumer sentiment due to rising energy costs, rents, and other necessity prices. 

With this challenging business environment and Coles’s share price outperformance compared to Woolworths, investors may be wondering whether now is the right time to invest in Coles shares.

Business growth outpaces rival Woolworths

Despite the weak consumer sentiment affecting both supermarket giants, Coles has outpaced Woolworths in the supermarket sector. In the March quarter, Coles achieved a 5.1% growth in supermarket sales, compared to Woolworths’ 1.5% growth. 

Coles benefitted from a successful promotion campaign, but CEO Leah Weckert believes the success goes beyond promotions. Weckert highlighted in the third quarter sales update:

We have delivered another solid sales result across our supermarkets this quarter reflecting strong execution of our trade plans and our continued focus on delivering great value and great quality alongside improved availability.

We have also seen a meaningful increase in customers interacting with our digital platforms and loyalty programs which is allowing us to engage on a more personalised basis with these customers.

Coles has implemented advanced technology such as Smart Gates to prevent theft, which was an issue last year. Additionally, Coles’ online supermarket sales have increased significantly, rising 35% year-over-year in the March quarter, bringing online sales penetration to 9.3%.

How cheap are Coles shares compared to peers?

Coles shares are trading at 19 times FY24’s estimated earnings. This compares with its past trading range of 17 to 25 times since being re-listed on the ASX in January 2019. 

Comparing Coles to its competitors based on earnings estimates provided by S&P Capital IQ:

• The Woolworths share price is valued at 22x FY24’s estimated earnings.
• Wesfarmers Ltd (ASX: WES) share price is valued at 26x FY24’s estimated earnings.
• IGA owner Metcash Ltd (ASX: MTS) share price is valued at 13x FY24’s estimated earnings.

Foolish takeaway

A price-to-earnings ratio (P/E) of 19 might appear high, given Coles’ single-digit earnings growth.

With that said, Coles offers high earnings visibility and predictability as a key player in the essential grocery market. The company generates strong cash flows, which support its dividend payments.

Coles shares are cheaper than some of its rivals and its own historical trading range. This is based on forward P/E ratios and currently a dividend yield of 3.3% using actual dividend payments over the last 12 months.

Considering all the factors mentioned, Cole shares could be a worthwhile investment for dividend-focused investors.

The post Would I be crazy to buy Coles shares at $16? appeared first on The Motley Fool Australia.

More reading

• About to retire? I’d buy these ASX dividend shares for income
• Forget NAB and buy these ASX dividend shares
• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• 2 ASX dividend shares that are coiled springs for a lifetime of passive income

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Wesfarmers. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BetaShares Global Sustainability Leaders ETF (ASX: ETHI) is a leading exchange-traded fund (ETF) that I think can provide almost everything an investor might want in a fund.

Typically, I look for an ETF that can provide strong investment returns, good diversification, and reasonable fees. I also want to invest my hard-earned money in sectors that match my ethics.

Here’s why I think this Betashares ETF satisfies these criteria.

Strong investment returns

Ultimately, investing is about generating returns. How we go about making those returns is another matter.

According to fund provider BetaShares, the ETHI ETF delivered an average annual return of 17% over the last five years and 11.8% over the prior three years to 30 April 2024.

Considering the long-term return of the ASX share market is around 10% per annum, anything above that is appealing. The BetaShares Global Sustainability Leaders ETF has done materially better than the ASX.

Currently, some of its biggest holdings are US heavyweights Nvidia, Apple, Visa and Mastercard. These stocks have performed admirably and I think the ASX ETF’s portfolio is capable of producing ongoing good returns.

Diversification

I suggest investors avoid putting all of their eggs in one basket. Diversifying a portfolio across different businesses and industries can lower investment risks by reducing concentration.

The ETHI ETF is invested in 200 businesses, which is a good amount of diversification in terms of holding numbers.

I believe this fund is diversified enough when it comes to sector allocation. At the end of April 2024, the biggest weightings were in information technology (35.4%), financials (23.2%), healthcare (14.4%), consumer discretionary (13.6%), and industrials (5.5%).

IT has a relatively high weighting in the ASX ETF’s portfolio, but I believe that’s a good thing because many high-performing stocks have come from there in the past five years. Tech stocks typically achieve strong growth and good margins because of the digital nature of their services.

Reasonable fees

The ethical construction of this ETF requires a lot of work, which I’ll discuss in a moment.

I believe the fees of this ETF are very reasonable, considering the screening that occurs and the high level of returns it has delivered.

BetaShares has an annual management fee of 0.59%, which is materially cheaper than what plenty of active fund managers might charge.

Ethical screening

The ETHI ETF starts by looking at the global share market and then makes a number of exclusions.

It excludes businesses that are involved in the activity of fossil fuels, gambling, tobacco, uranium and nuclear energy, armaments and militarism, the destruction of valuable environments, animal cruelty, chemicals of concern, mandatory detention of asylum seekers, pornography, payday lending and alcohol.

BetaShares Global Sustainability Leaders ETF excludes businesses with no women on the board of directors and companies with human rights concerns, including child labour, forced labour, sweatshops, bribery, and corruption.

The remaining 200 businesses in the ASX ETF, after that screening process, are 200 of the biggest, most ethical companies worldwide.

The post I think this excellent ASX ETF ticks all the boxes appeared first on The Motley Fool Australia.

More reading

• Warren Buffett’s sister uses this simple method for passive income without dividends
• With $1,000 to invest, should I buy ASX growth stocks or income shares?
• Why this is one of the top ASX ETFs I’d buy in 2024

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Mastercard, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has recommended Apple, Mastercard, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week positively and record a solid gain. The benchmark index rose 0.8% to 7,761 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday after a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 10 points or 0.15% lower. On Wall Street, the Dow Jones was down 0.3%, the S&P 500 was up 0.1%, and the Nasdaq rose 0.55%.

Life360 launches US IPO

The Life360 Inc (ASX: 360) share price will be one to watch today after the location technology company launched its Nasdaq IPO. Life360 estimates that it will receive net proceeds from the offering of approximately US$84.4 million. Management advised that the principal purposes of this IPO are to increase its capitalisation and financial flexibility and create a public market for its common stock in the United States. It currently intends to use the net proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures.

Oil prices sink

It could be a very tough session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.8% to US$74.05 a barrel and the Brent crude oil price is down 3.6% to US$78.18 a barrel. This follows news that OPEC+ plans to phase out its voluntary production cuts.

Iron ore price tumbles

BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) shares could act as a drag on the ASX 200 index on Tuesday. That’s because the iron ore price has continued its decline with a sharp pullback overnight. According to the AFR, the iron or price in Singapore fell 4.2% to US$110.65 per tonne. An inventory buildup in China appears to be behind the steel making ingredient’s latest decline.

Gold price rises

ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.85% to US$2,365.7 an ounce. Traders were buying the precious metal after weak economic data in the United States boosted interest rate cut hopes.

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

More reading

• How ASX shares vs. property performed in May
• Here are the top 10 ASX 200 shares today
• What a pay rise for 2.6 million Aussies could mean for ASX shares
• I think this is the best ASX artificial intelligence (AI) stock to buy right now
• The BHP share price crushed the benchmark in May. Here’s how

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.

In May, the S&P/ASX 200 Index (ASX: XJO) managed to carve out a small gain for investors despite a selloff late in the month due to inflation concerns.

Unfortunately, Pilbara Minerals Ltd (ASX: PLS) shares didn’t fare as well and dropped into the red during the month.

How did Pilbara Minerals shares perform in May?

The lithium miner’s shares started the month positively and were up as much as 3.5% month to date at one stage.

But all that was forgotten by the end of the month when Pilbara Minerals shares finished the period almost 7% below where they started it. This was despite there being no news out of the company in May.

Though, it is worth noting that it wasn’t the only ASX lithium stock to tumble last month. Core Lithium Ltd (ASX: CXO) shares lost approximately 10% of their value during the period.

What else?

A bearish broker note out of Morgan Stanley could also have weighed on Pilbara Minerals shares.

Last month, it put an underweight rating and $3.35 price target on it shares. This implies potential downside of 12.3% for investors from current levels over the next 12 months.

Its analysts continue to believe that its shares are overvalued at current levels.

Should you buy the dip?

Unfortunately, Morgan Stanley isn’t alone in believing that Pilbara Minerals shares are overvalued at current levels.

The team at Goldman Sachs, for example, believes that they could fall significantly more than what its rival investment bank is predicting.

According to a recent note, the broker has a sell rating and lowly $2.80 price target on its shares. This implies potential downside of 27% for investors between now and this time next year. It commented:

Our 12m PT is down to A$2.80/sh, where PLS (Sell) remains at a premium to peers (1.2x NAV & pricing ~US$1,300/t LT spodumene (including a nominal value of A$1.1bn for growth); peer average ~1.05x & ~US$1,210/t (lithium pure-plays ~US$1,110/t; GSe US$1,150/t LT real)), with near-term FCF continuing to decline on lithium prices and increasing growth spend (c.-10% FCF yield in FY24E, and c.0% in FY25-27E). We also continue to see risk that a Beyond P1000 expansion disappoints vs. market expectations on a combination of capex, size, or timing.

Overall, based on what the broker community is saying, it might be best for investors to keep their powder dry and wait for a better entry point. Though, of course, brokers don’t always make the right call. Time will tell with this one.

The post What happened to Pilbara Minerals shares in May? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Higher or lower: Where next for Pilbara Minerals shares?
• Here is the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares
• ASX 200 shares vs. property: Which has performed better since the COVID crash?

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. 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.

ASX dividend shares that provide a good dividend yield and a high level of reliability could be excellent investments for people about to enter retirement. However, some ASX shares aren’t very consistent.

There is plenty to like about the large ASX iron ore shares of BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG). These companies are increasing their exposure to decarbonisation and usually offer high dividend yields. Nonetheless, their payouts can bounce around significantly depending on what’s happening with the iron ore price.

Hence, I’d rather invest in ASX dividend shares that can provide more consistent payouts, which is why I like the ones below.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest listed fund managers. It’s based in the US and has four main investment strategies – US shares, international shares, global shares and emerging markets.

Impressively, all of its main strategies have outperformed their respective benchmarks since inception. This level of performance organically helps the funds under management (FUM) grow and is an appealing selling point to attract more client FUM.

In its monthly update for April 2024, the company revealed net inflows of US$6.3 billion for 2024 to date, helping bring its FUM to US$142 billion.

The ASX dividend share has committed to a dividend payout ratio of 90% of distributable earnings. FUM growth is a significant input and driver of revenue and earnings, so FUM growth is integral to GQG’s success.

At December 2023, the business had US$120.6 billion of FUM and it had grown over 17% to US$142 billion, suggesting further dividend growth over the 12 months. The estimates on Commsec suggest an annual dividend yield of over 7% for 2024 and more than 8% for 2025.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the biggest retailer of food in Australia, with its national supermarket network. It also owns BIG W, a majority stake in PETstock, a food distribution business, and other smaller companies.

Food is obviously one of the most vital purchases a household makes. Therefore, the ASX dividend share has very defensive earnings, which we saw during 2020 and 2021 as Australia grappled with COVID-19.

Australia’s population continues to grow, which is a useful tailwind for increasing overall food demand.

In the most recent quarterly update, the FY24 third quarter, Woolworths reported total sales growth of 2.8% despite 0.7% deflation in the supermarkets of shelf prices (excluding tobacco). I think this shows the ability of the business to keep growing even in tougher conditions.

Woolworths increased its annual dividend in FY23 and grew the FY24 half-year payout by 2.2%.

According to the estimate on Commsec, Woolworths is projected to pay a grossed-up dividend yield of around 5% in FY24.

The post About to retire? I’d buy these ASX dividend shares for income appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• How I’d try to turn an empty portfolio into $300k by buying cheap ASX shares, starting now
• 3 ASX 200 blue-chip shares to buy now
• Here’s how I’d target a $2,000 second income by investing $35 a week
• 3 reasons this broker thinks Woolworths shares are a cheap buy

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

The big news in shares vs. property is Brisbane overtaking Canberra as Australia’s second-most expensive city, with the median home value in the Sunshine State’s capital rising 1.4% last month.

The last time Brisbane was the second highest-value capital city in Australia was 27 years ago, in 1997.

The national median home value, which reflects all types of property in a single data point, rose for a 16th month, up 0.8%, according to CoreLogic data. The median house and apartment prices lifted 0.8% as well.

Meantime, the S&P/ASX 200 Index (ASX: XJO) rose 0.49%, thus recovering only a sliver of its 3% loss in April. But as usual, some stocks shot the lights out, including an ASX biotech that screamed 20.6% higher.

CoreLogic research director Tim Lawless said the May increase in the median home value was the strongest monthly gain since October 2023.

A lack of stock for sale in the strongest markets, which continue to be the mid-sized capital cities, once again powered the national benchmark increase.

Lawless commented:

The number of properties available for sale in Perth and Adelaide remain more than -40% below the five-year average for this time of the year while Brisbane listings are -34% below average.

Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year.

Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.

Perth, Adelaide and Brisbane recorded the highest home value growth in May at 2%, 1.8%, and 1.4%, respectively.

Among the regional markets, regional Western Australia dominated with 1.8% growth, followed by regional South Australia with 1.4%, and regional Queensland with 1.1%.

Shares vs. property price growth in May

Here’s how shares vs. property performed in terms of house price growth and share price growth in May.

Property market	Median house price	Price growth in April	12-month price growth
Sydney	$1,441,957	0.5%	8.2%
Melbourne	$937,289	0%	1.9%
Brisbane	$937,479	1.4%	16%
Adelaide	$811,059	1.7%	14.3%
Perth	$769,691	2%	22.2%
Hobart	$697,770	(0.5%)	(0.1%)
Darwin	$584,538	0.7%	3.8%
Canberra	$961,403	0.5%	2.8%
Regional New South Wales	$762,506	0.4%	4.2%
Regional Victoria	$603,432	(0.3%)	(0.6%)
Regional Queensland	$634,988	1%	11.7%
Regional South Australia	$430,389	1.5%	10.7%
Regional Western Australia	$519,311	1.8%	15.2%
Regional Tasmania	$534,801	0.1%	0.1%
Regional Northern Territory	$450,431	0%	(6.1%)

Top 5 risers of the ASX 200 in April

The S&P/ASX 200 Index (ASX: XJO) lifted 0.49% in May.

According to CommSec data, these 5 ASX 200 shares were the outperformers.

ASX 200 share	Share price growth in May
Telix Pharmaceuticals Ltd (ASX: TLX)	20.6%
PEXA Group Ltd (ASX: PXA)	19.3%
Alumina Ltd (ASX: AWC)	16.6%
Pinnacle Investment Management Group Ltd (ASX: PNI)	16.3%
A2 Milk Company Ltd (ASX: A2M)	16.1%

What drove the Telix Pharmaceuticals share price higher?

News released by Telix Pharmaceuticals on the final day of the month pushed the biotech share to the top of the ASX 200 group. The Telix Pharmaceuticals share price soared 15.31% on 31 May alone.

Telix is a commercial-stage biopharmaceutical company. It develops diagnostic and therapeutic products to treat cancer with new precision using targeted radiation.

Its diagnostic imaging can precisely locate the cancer. Its therapeutics can then deliver isotopes directly to affected cells, thereby protecting healthy tissue.

On 31 May, the company announced additional positive data from its ProstACT SELECT trial of TLX591.

TLX591 is a treatment for adult men with PSMA-positive metastatic castrate-resistant prostate cancer.

Telix said the study reported a median radiographic progression-free survival (rPFS) of 8.8 months.

This builds on prior data from the trial showing a favourable safety profile and biodistribution.

Dr Nat Lenzo, a nuclear oncologist and lead recruiter for the SELECT trial, said:

We are encouraged by this rPFS result …

This is a compelling signal of the potential efficacy of TLX591 in this heavily pre-treated population.

The results further support the development of this candidate in an earlier mCRPC patient population which is the focus of the ProstACT GLOBAL7 Phase III trial and where there remains significant unmet need for effective treatment.

Telix shares also rose by 2.53% on 22 May when the company held its annual general meeting.

In a speech, Telix Chair Kevin McCann said:

Despite all that we have achieved, there is plenty more to come. Indeed, it is the view of Management that 2024 is going to be the biggest year yet for Telix.

By the end of the year, we expect to have launched new products and territories, reported several key development milestones for our therapy programs and progressed some of our very exciting “next generation” assets – such as TLX592 and TLX300.

The post How ASX shares vs. property performed in May appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Alumina. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group, Pinnacle Investment Management Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended A2 Milk and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Galileo Mining Ltd (ASX: GAL) share price was a very strong performer on Monday.

The small-cap mineral exploration company’s shares ended the day 12% higher after announcing a deal with ASX 200 mining giant Mineral Resources Ltd (ASX: MIN).

Why has it signed a deal with this ASX 200 mining stock?

According to the release, Galileo Mining has entered into a farm-in and joint venture agreement (JVA) with Mineral Resources.

Under the agreement, the company will sell 30% of all lithium rights held by Galileo on the Norseman tenement to Mineral Resources for a $7.5 million cash consideration.

The release notes that Mineral Resources has already completed comprehensive due diligence prior to execution. As a result, there are no conditions precedent to completion of the transaction with the ASX 200 mining stock and the deal is expected to close within five business days of the execution of the JVA.

From completion, Mineral Resources and Galileo will form a 30%/70% unincorporated joint venture. However, Mineral Resources has the ability to increase its stake to 55% by sole funding an additional $15 million of exploration expenditure on the tenements over the four years following completion.

The ASX 200 mining stock also has the further ability to elect to increase its stake to 70% by sole funding expenditure through to a decision to mine. At that point, Galileo Mining must elect to either remain in a joint venture and contribute to development costs or convert its interest into a royalty.

‘Excited’

Galileo’s managing director, Brad Underwood, was very pleased with the deal. He commented:

We are excited to add a lithium exploration joint venture to our ongoing exploration programs for PGEs and nickel at our Norseman Project. The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium. The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.

Galileo will benefit from a focussed program of lithium exploration by MinRes, one of Australia’s pre-eminent lithium companies, as well as increasing our cash reserves to aggressively pursue other high value resource discoveries at both our Norseman and Fraser Range projects. With $5 million of additional funding to be received within five days of execution of the agreement, a further $2.5 million to be received within 12 months, and $10 million in the bank, Galileo is fully funded to undertake all of its planned exploration programs.

The post Mineral Resources is joining forces with this micro-cap lithium share appeared first on The Motley Fool Australia.

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• Up 51% from their 52-week low, is it too late to buy Mineral Resources shares?
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• Here are the top 10 ASX 200 shares today

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.