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National Australia Bank Ltd (ASX: NAB) shares have certainly delivered the goods for investors in 2024. Since the start of the year, the banking giant’s shares have risen over 10%.

While this is good news for its shareholders, it isn’t for non-shareholders.

That’s because almost all brokers now believe that its shares are trading above fair value. As a result, if you are on the lookout for ASX dividend shares to buy, you might want to stay clear of NAB until it trades at a more attractive level.

But which dividend shares would be good alternatives? Let’s take a look at three that brokers rate as buys. They are as follows:

Accent Group Ltd (ASX: AX1)

The first alternative for income investors to consider buying is Accent Group. It is a market-leading leisure footwear retailer with a huge network of stores across countless brands. This includes HypeDC, Platypus, and The Athlete’s Foot.

Bell Potter is a fan of the company and has a buy rating and $2.50 price target on its shares. It is particularly positive on the ASX dividend share due to its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

The broker expects this to allow the company to pay fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.88, this represents dividend yields of 6.9% and 7.8%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share that could be a top option for income investors is Coles. It is of course one of the big two supermarket operators in the Australian market. It also has a significant liquor store network and a joint ownership in the Flybuys loyalty program.

Morgans sees value in its shares and has an add rating and $18.95 price target on them.

As for dividends, it is forecasting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.42, this implies yields of approximately 4% and 4.2%, respectively.

Stockland Corporation Ltd (ASX: SGP)

A third alternative for income investors to look at is Stockland.

Citi thinks the leading residential developer could be an ASX dividend share to buy right now. It sees positives in a recently announced land lease partnership with Invesco and expects it to eventually generate better returns on capital.

The broker has a buy rating and $5.20 price target on its shares.

In respect to dividends, Citi is expecting dividends per share of 26.2 cents in FY 2024 and 26.6 cents in FY 2025. Based on the current Stockland share price of $4.50, this will mean yields of 5.8% and 5.9%, respectively.

The post Forget NAB and buy these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• Here’s the average wealth of Aussies who manage their own superannuation
• 3 Australian shares to help secure your future
• Buying ASX 200 bank stocks? Here’s why they could keep outperforming

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

On Friday, the S&P/ASX 200 Index (ASX: XJO) had a strong finish to the week and charged higher. The benchmark index rose 0.9% to 7,701.7 points.

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

ASX 200 expected to rise again

The Australian share market looks set for another good session on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher. On Friday in the United States, the Dow Jones was up 1.5%, the S&P 500 rose 0.8%, and the Nasdaq was flat.

Oil prices fall

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices fell on Friday. According to Bloomberg, the WTI crude oil price was down 1.2% to US$76.99 a barrel and the Brent crude oil price was down 0.95% to US$81.11 a barrel. Traders were selling oil ahead of OPEC’s meeting at the weekend.

Brickworks upgraded

The Brickworks Limited (ASX: BKW) share price could be undervalued according to analysts at Bell Potter. This morning, the broker has upgraded the building products company’s shares to a buy rating with a $29.50 price target. It commented: “There are no material changes to forecasts, however we think the implied SOL discount and rent growth outlook on offer is attractive and upgrade our rating to Buy.”

Gold price drop

It looks like ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price dropped on Friday. According to CNBC, the spot gold price was down 0.8% to US$2,347.7 an ounce. However, this couldn’t stop the precious metal from recording its fourth consecutive monthly gain.

Champion Iron named as a buy

Goldman Sachs thinks investors should be buying Champion Iron Ltd (ASX: CIA) shares. In response to its FY 2024 result, the broker has retained its buy rating and $9.30 price target. This implies potential upside of more than 30% for investors. In addition, Goldman expects dividend yields of 4.3% in FY 2025 and 6.1% in FY 2026. It said: “CIA reported record EBITDA of C$553mn for FY24, up 11% YoY, broadly in-line with GSe of C$541mn but +9% vs. VA consensus.”

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

More reading

• $20,000 invested in these ASX 200 shares 10 years ago is now worth… (a lot!)
• Here’s how the ASX 200 market sectors stacked up last week
• Here’s the average wealth of Aussies who manage their own superannuation
• These ASX shares can rise 25% to 100%+
• These were the best performing ASX 200 shares in May 2024

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 Brickworks, Goldman Sachs Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Several ASX real estate investment trusts (REITs) manage large portfolios of offices and are likely to benefit from the return to the workplace occurring across Australia’s CBDs today.

Among them is the No. 7 ASX REIT by market capitalisation Dexus (ASX: DXS).

Dexus manages $24.3 billion worth of office blocks out of $48 billion in total real estate assets (as of FY23). It owns 62 office blocks.

Dexus shares are currently $6.78, up 0.44% at market close on Friday and down 17.42% over the past 12 months.

Another is the No. 8 ASX REIT by market cap Charter Hall Group (ASX: CHC).

Of Charter Hall’s $71.9 billion property funds under management (FUM) as of FY23, $29.3 billion of it was office space. The ASX REIT owns 96 office towers and blocks.

Charter Hall shares finished Friday at $12.12, up 1%, and are up 8.21% over the past 12 months.

The largest pure-play office REIT is Centuria Office REIT (ASX: COF). It manages $2.2 billion in office space and owns 23 office blocks (as of FY23).

The Centuria Office REIT share price is $1.21, down 2.03% as of Friday’s market close and 16.32% over the past year.

CBD office occupancy rises to 76% of pre-pandemic levels

The post-pandemic return to the office is continuing, although many workers are operating under hybrid arrangements where they work from home a few days per week.

In a recent report, CBRE, a global leader in commercial real estate services and investment, said Australia’s average office occupancy rate rose to 76% of pre-pandemic levels in the first quarter of 2024.

This is up from 70% in the December 2023 quarter and 67% in the March 2023 quarter.

While occupancy rates rose in all capital cities during the quarter, Perth and Adelaide maintained the highest occupancy rates of 93% and 88%, respectively.

CBRE said a shorter average commute from home to work in these smaller capital cities may be contributing to higher occupancies.

Across the rest of the country, occupancy rates were 86% in Brisbane, 77% in Sydney, 66% in Canberra, and 62% in Melbourne.

Aussies are bowing to their employers’ requests to return to the office much more than workers in the United States, where CBRE says occupancy rates have stalled at the 50% mark for more than a year.

Why do companies want employees back in the office?

Many companies are asking their employees to return to the office at least part of the time to leverage the benefits of teamwork, innovation, and collaboration.

They are concerned that working from home in the long term may reduce overall productivity.

One related issue is ensuring new employees have enough interaction with senior staff so they can learn faster and more easily integrate into the company’s culture.

When the ASX REIT Centuria Office released its FY23 results, Grant Nichols, Centuria’s Head of Office, commented:

With productivity falling in both Australia and overseas, we have seen an increase in mandated return to office policies that aim to address productivity, increased loneliness and diminished corporate culture.

While hybrid working arrangements and increased workplace flexibility are likely to become more prevalent, it is becoming increasingly apparent that the office will remain an important and focal point in many workplace operations.

In fact, Centuria’s 2023 annual Australian office tenant customer survey reinforced this view, with approximately 75% of respondents stating they expect to retain or increase their office space requirements in the medium term.

But workers aren’t being as cooperative as many companies would like.

So, some companies have begun to offer incentives, including linking salary and promotions to how much time an employee spends in the office.

Companies move into premium offices to lure workers back

Another trend is companies moving their corporate headquarters into more attractive office buildings. They appear happy to pay a higher rent in exchange for attracting workers back on-site.

CBRE reports that two-thirds of organisations that have relocated since COVID have upgraded to premium office blocks featuring retail, restaurants, and other amenities on the lower floors.

Charter Hall Office CEO Carmel Hourigan said Charter Hall was carefully curating its portfolio “to meet demand for premium offices that are rich with amenity”.

Upon the release of the company’s FY23 results, she said:

This is reflected in our strategic investments and development pipeline, including our recently submitted application for Chifley South in Sydney which will realise the development potential of the site.

Dexus Executive General Manager, Office, Andy Collins said more than half of new office leases in FY23 represented companies upgrading to better office suites:

The average terms of new leases and renewals was circa 6.2 years, and 57% of new leases were represented by customers upgrading to higher quality space.

The post Will ASX REITS be boosted by Australian workers returning to the office? appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX stocks I’d buy for dividends
• Here are the top 10 ASX 200 shares today
• Brokers name 4 ASX 200 dividend shares to buy

Motley Fool contributor Bronwyn Allen 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.

If you are looking for an easy way to invest your hard-earned money, then it could be worth looking at the exchange traded funds (ETFs) in this article.

Here’s why they could be high quality options for investors in June:

Betashares Energy Transition Metals ETF (ASX: XMET)

The first ASX ETF for investors to look at in June is the Betashares Energy Transition Metals ETF.

It provides investors with easy exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earth elements. These are all metals that will be pivotal to the decarbonisation of the planet.

Betashares has named it on its list of 12 ASX ETFs ideas for 2024. It appears to believe the companies included in the fund are well-positioned to benefit from increasing demand for these metals.

It notes that “both electric cars and clean energy use notably more metals than their conventional counterparts, and many of these minerals have highly concentrated and insecure supply chains.”

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF for investors to consider buying in June is the Betashares Global Quality Leaders ETF.

This ETF has a focus on investing in the highest quality companies that the world has to offer. This is of course never a bad thing.

At present, there are approximately 150 companies included in the fund. These companies rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Betashares’ chief economist, David Bassanese, recommended this ETF last year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF that could be a great option for investors in June is the VanEck Vectors Morningstar Wide Moat ETF.

This fund has a focus on companies with sustainable competitive advantages (or wide moats) and fair valuations. These are the qualities that Warren Buffett looks for when he makes investments for his Berkshire Hathaway (NYSE: BRK.B) business.

Buffett certainly is a good role model when it comes to investing. His investment focus has helped Berkshire Hathaway double the market return since all the way back in 1965.

The companies that the ETF invests in will change periodically to reflect valuations and changes to competitive advantages. But at present it includes tobacco leader Altria Group Inc (NYSE: MO), food company Campbell Soup (NYSE: CPB), beauty products company Estee Lauder (NYSE: EL), sportswear giant Nike (NYSE: NKE), and entertainment behemoth Walt Disney (NYSE: DIS).

The post 3 of the best ASX ETFs to buy in June appeared first on The Motley Fool Australia.

More reading

• How I’d aim to turn $20,000 invested in ASX shares into passive income of $1,200 a month!
• Buy and hold these ASX ETFs for 10 years
• Warren Buffett’s sister uses this simple method for passive income without dividends
• I’d invest $10,000 into these excellent ASX shares for the long term
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Nike, 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. The Motley Fool Australia has recommended Berkshire Hathaway, Nike, 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.

Macquarie Group Ltd (ASX: MQG) is one of the largest ASX bank stocks and may be one of the best to consider, in my opinion.

ASX investors have numerous banks and lenders to choose from including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Bank of Queensland Ltd (ASX: BOQ), Pepper Money Ltd (ASX: PPM), Bendigo and Adelaide Bank Ltd (ASX: BEN), Mystate Ltd (ASX: MYS) and AMP Ltd (ASX: AMP).

With all of that choice, there are a couple of crucial reasons why I’d buy Macquarie shares over the others.

Geographic diversification

One of my major misgivings about the above ASX bank shares I mentioned is that almost all of their earnings come from Australia and New Zealand.

Banks are seeing an uptick in their arrears amid the inflation and high cost-of-living environment. For example, in the CBA FY24 third-quarter update, it said its arrears of home loans that were overdue for more than 90 days had increased to 0.61% at 31 March 20, up from 0.44% at March 2023.

With ASX bank stock loans heavily concentrated on the Australian loan system, most of their eggs are in one local economic basket. I don’t think that provides enough diversification.

Macquarie, on the other hand, generates around two-thirds of its earnings internationally. The global investment bank can invest in whichever region it sees the best chance of making long-term returns.

Earnings diversification

As I’ve mentioned, the domestic ASX bank stocks are predominately focused on providing loans to households and businesses in Australia and New Zealand.

Macquarie has very diversified operations, with an asset management division, a banking and financial services (BFS) segment, an investment banking division (Macquarie Capital) and the commodities and global markets (CGM) division.

Macquarie has deliberately grown its Australian banking division, capturing market share from the other ASX bank stocks. However, pleasingly, the company’s other segments can provide significantly differentiated earnings compared to banks like CBA and Westpac.

The Macquarie Asset Management (MAM) division delivers broadly consistent base management fees, providing the parent company with annuity-style revenue and earnings.

Macquarie is able to capitalise on market or energy volatility with CGM when prices move significantly.

The investment banking side of the business is adept at making good returns during most normal (or buoyant) economic conditions.

Macquarie has utilised this multi-divisional approach to great use over the past decade. It has grown significantly in the Americas, Europe and Asia, unlocking earnings growth. Despite FY24 being a tough year, it made $6.7 billion in net profit across the four main divisions.

The Macquarie annual dividend has been hiked by approximately 150% in the past decade, demonstrating its ability to grow and deliver for shareholders. Meanwhile, the Westpac annual dividend is currently smaller than it was a decade ago.

Is the Macquarie share price a buy?

I wouldn’t call Macquarie shares cheap after gaining more than 10% in the past six months. But, I believe its earnings can compound at a stronger rate than the domestic ASX bank stocks thanks to its global operations. I’d much rather own Macquarie than any of the other banks for a long-term investment.

It’s valued at 17x FY27’s projected earnings, according to estimates by broker UBS.

The post Is Macquarie the best ASX bank stock for you? appeared first on The Motley Fool Australia.

More reading

• Buying ASX 200 bank stocks? Here’s why they could keep outperforming
• Do Macquarie shares pay a decent ASX dividend?
• Only 1 ASX 200 bank share delivers more capital growth than dividends. Which bank? (Clue: Not CBA)
• How you could retire rich by investing like Warren Buffett with ASX shares
• ASX 200 bank shares: How dividends offset poor capital growth over 10 years

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

To demonstrate just how successful this investment strategy can be with ASX 200 shares, I often like to see how much a single $20,000 investment in certain ASX 200 shares 10 years ago would be worth today.

Let’s see how investments in these shares have fared during the past decade:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share that has smashed the market over the last decade is Breville. It is one of the world’s leading kitchen appliance manufacturers.

It has been growing its sales and earnings at a consistently solid rate since 2014. One of the drivers of this has been its ongoing investment in research and development, which ensures that its portfolio is filled to the brim with innovative products.

In addition, its global expansion and earnings accretive acquisitions, particularly in the coffee market, have helped support its growth.

This has allowed Breville’s shares to achieve an average total return of 13.8% per annum over the decade. This would have turned a $20,000 investment 10 years ago into almost $73,000 today.

Northern Star Resources Ltd (ASX: NST)

Another market beater has been Northern Star. Over the last 10 years, this gold miner has developed from a reasonably small player into one of the largest in the world.

In addition, with the gold price trading at lofty levels, this has supported its margins as its production increases.

Unsurprisingly, this has done wonders for its shares. So much so, Northern Star is one of the best performing ASX 200 shares over the last decade. During this time, its shares have generated an average total return of 30% per annum. This incredible return means that a $20,000 investment back in 2014 would now be worth a sizeable $275,000.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that has delivered the goods for investors over the past decade is ResMed. It is a leading medical device company with a focus on the growing (and huge) sleep disorder treatment market.

Thanks to the growing awareness of sleep disorders like sleep apnoea and its industry-leading masks and software, ResMed has reported consistently strong sales and earnings growth since 2014.

This has led to its shares providing investors with an average total return of 19.8% per annum over the period. This means that a $20,000 investment in ResMed’s shares 10 years ago would have grown to be worth approximately $122,000 now.

Overall, I believe this shows just how rewarding it can be to invest with a long term view.

The post $20,000 invested in these ASX 200 shares 10 years ago is now worth… (a lot!) appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 ASX healthcare shares to buy now for the AI revolution
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX growth shares to buy to supercharge your portfolio in June

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, analysts have retained their buy rating and $19.00 price target on this supermarket giant’s shares. Citi has been visiting stores to get a better idea of how the big two supermarket operators are performing with their respective strategies. It believes that Coles’ pricing strategy is resonating more with consumers and will result in stronger sales growth during the fourth quarter of FY 2024. This is based on its belief that Coles’ strategy is being executed better and has a stronger value perception. And while Citi rates both supermarket giants as buys, its preference at this point is Coles. The Coles share price ended the week at $16.42.

Pro Medicus Limited (ASX: PME)

A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating on this health imaging technology company’s shares with an improved price target of $136.00. This follows news that Pro Medicus has won five new contracts with a minimum contract value of $45 million. Goldman highlights that this brings the company’s minimum total contract value (TCV) for new sales this financial year to $245 million. And there’s still potential for more contract wins given its sizeable sales pipeline. Goldman believes this supports its view that the company’s Visage 7 software is an industry-leading solution and that the company is the incumbent technology leader in radiology and well-placed to take market share. The Pro Medicus share price was fetching $120.12 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and $8.05 price target on this airline operator’s shares. Goldman believes that the market is severely undervaluing Qantas’ shares. It suspects that this could be due to investors pricing in a trade off between investment (fleet and customer) and capital returns (dividends and buybacks). However, the broker believes that Qantas can return significant capital to shareholders and invest in its fleet while still maintaining a strong balance sheet. As a result, its analysts see the Flying Kangaroo’s cheap valuation as a buying opportunity. It is also worth noting that Goldman is expecting the Qantas dividend to return in 2025. The Qantas share price ended the week at $6.15.

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

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• ASX 200 shares are still cheap! Here’s one to consider buying now
• Top ASX shares to buy in June 2024
• Guess which 3 ASX 200 shares are leading the charge higher this week
• Brokers name 3 ASX shares to buy now

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

Picking out ‘safe’ ASX shares in the consumer discretionary sector is a tough ask. For one thing, there is really no such thing as a ‘safe’ ASX share, no matter what sector of the market you are looking in.

If you want absolute certainty that you won’t lose money on an investment, the share market is the wrong place to look.

No one can predict how the market will price any asset. You might think a share is worth a certain amount for whatever reason. But if the market doesn’t agree with you, there’s not much you can do about it.

But even if we do assume you can get pretty close to a safe ASX share, the consumer discretionary sector is a fraught place to search anyway – it’s all in the name. Consumer discretionary stocks tend to sell goods or services that consumers may or may not purchase depending on their economic circumstances.

When a downturn or recession hits, these consumers tend to cut back on discretionary items such as new clothes, cars or electrical appliances.

That makes the companies that sell them inherently cyclical.

But this doesn’t mean there aren’t some deals to be found in this space right now. So today, let’s discuss three consumer discretionary shares that I think you can call ‘safe’ relative to their peers for a long-term investment today.

3 ‘safe’ ASX consumer discretionary stocks today

Super Retail Group Ltd (ASX: SUL)

Super Retail Group is the ASX retail share behind popular chains like Super Cheap Auto, Macpac, Rebel and BCF.

I like this retailer because it is resistant to the typical economic cycle that affects other consumer discretionary shares. Australians tend to keep shopping at stores like Super Cheap and BCF regardless of the economic weather.

To illustrate this defensiveness, Super Retail posted a robust half-year earnings report in February. This report showed the company increasing half-year revenues by 3.2% despite the ongoing cost-of-living crisis.

Super Retail shares also offer a 5.75% fully franked dividend yield today.

JB Hi-Fi Ltd (ASX: JBH)

JB is another ASX consumer discretionary stock that I think makes for a great investment in any economic climate.

This company has shown a remarkable ability to move with the times. Two decades ago, it mainly stocked hi-fi, DVDs, music, and video games. But today, JB is more known as a destination for electronics, home appliances, and office equipment. That’s for both its eponymous chain of JB Hi-Fi stores and its Good Guys side hustle.

JB Hi-Fi has been struggling with a downturn in consumer demand over the past year.

However, I think the 10% drop in the JB share price that we’ve seen over the past couple of months has left this consumer discretionary stock looking pretty cheap today on a price-to-earnings (P/E) ratio of under 14. That comes with a fully franked dividend yield of 4.7%. It could be a great entry point for long-term investors.

Premier Investments Limited (ASX: PMV)

A final stock that you might name amongst the ‘safe shares’ of the consumer discretionary sector is Premier Investments. Like Super Retail Group, this company owns a large portfolio of successful Australian stores, including Peter Alexander, Smiggle, JayJays, Dotti, and Just Jeans.

As with Super Retail’s businesses, these stores seem to be more resistant to adverse economic circumstances than most. Over the first half of FY2024, Premier Investments posted a 1.65% rise in statutory net profits after tax, as well as a hike to its interim dividend.

Premier’s $209.8 million in earnings before interest and tax during the half was a 66.4% increase over the company’s earnings during the first half of FY2020.

I also think that Premier’s plans to spin off its profitable Smiggle and Peter Alexander divisions will be beneficial to long-term investors.

Right now, Premier shares are trading on a fully franked dividend yield of just over 4%.

The post What are 3 of the safest ASX consumer discretionary shares in Australia right now? appeared first on The Motley Fool Australia.

More reading

• 4 top ASX dividend shares to buy next week
• ASX retail shares mixed amid modest April sales growth
• 4 ASX 200 shares being scooped up by insiders
• Beat the bank! 2 ASX stocks worth buying to make more money than interest on savings
• Analysts say these 4 ASX dividend shares are buys

Motley Fool contributor Sebastian Bowen 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer staple shares led the ASX 200 market sectors last week with a 1.02% gain over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.91% to finish the week at 7,701.7 points.

Six of the 11 market sectors finished the week in the green.

Let’s recap.

Consumer staple shares led the ASX sectors last week

The biggest ASX consumer staple stock Woolworths Group Ltd (ASX: WOW) moved 0.57% higher last week. Woolworths shares closed at $31.60 on Friday.

Among the other large sector players, Coles Group Ltd (ASX: COL) shares lifted 1.48% to $16.42 apiece.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lost 1.95% to finish the week at $11.33 apiece.

Endeavour Group Ltd (ASX: EDV) shares lost 0.6% over the week to finish at $4.96 on Friday.

Among the big movers in the staples sector this week was Australian Agricultural Company Ltd (ASX: AAC). The stock rose 7.8% despite no price-sensitive news to finish at $1.52 per share on Friday.

ASX 200 agricultural share Select Harvests Ltd (ASX: SHV) lifted 4.47% to $3.27. Most of those gains came on Friday after the company released its 1H FY24 results.

The almond farmer and processor reported a net profit after tax (NPAT) loss of $2.1 million. But this was an improvement on the prior corresponding period of 1H FY23 when a $96.2 million loss was recorded.

Select Harvests managing director David Surveyor said:

The operating environment for the almond industry remains challenging. In the US, almond prices have been below the cost of production since the 2020/21 season.

Through this period, Select has made strong progress on its transformational program and is ready to benefit from the cyclical upturn.

The Bega Cheese Ltd (ASX: BGA) share price increased 2.76% over the five days to $4.46 on Friday.

There was no news from Bega this week. However, my colleague Bernd says the price surge could relate to speculation that milk prices may fall over the months ahead, thereby reducing Bega’s input costs.

Ridley Corporation Ltd (ASX: RIC) rose 1.94% to $2.10. There was no news from the company this week.

Top broker Goldman Sachs says its key buy calls among ASX retail shares are now skewed towards consumer staples over discretionary stocks.

Goldman has buy ratings on three of the top four consumer staple shares by market capitalisation.

They are Woolworths shares with a 12-month price target of $39.40, Treasury Wine shares with a 12-month price target of $13, and Endeavour shares with a 12-month price target of $6.30.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Staples (ASX: XSJ)	1.02%
Consumer Discretionary (ASX: XDJ)	0.83%
Communication (ASX: XTJ)	0.59%
Information Technology (ASX: XIJ)	0.26%
Healthcare (ASX: XHJ)	0.15%
A-REIT (ASX: XPJ)	0.09%
Financials (ASX: XFJ)	(0.26%)
Industrials (ASX: XNJ)	(0.35%)
Energy (ASX: XEJ)	(0.6%)
Materials (ASX: XMJ)	(1.35%)
Utilities (ASX: XUJ)	(2.73%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

More reading

• 4 top ASX dividend shares to buy next week
• These were the best performing ASX 200 shares in May 2024
• Guess which 3 ASX 200 shares are leading the charge higher this week
• If you were born in the 1970s or later, your superannuation is delivering the best returns
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Bronwyn Allen 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 positions in and has recommended Coles Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The two ASX dividend shares I’m going to tell you about pay high levels of passive income. Due to their rewarding dividend yields, they could produce $1,000 of passive income, or more, over the next year.

When businesses have a relatively low price/earnings (P/E) ratio, where they trade at a low multiple of their earnings, they are more likely to have a good dividend yield.

ASX retail shares usually trade on a lower earnings multiple than some sectors like ASX tech shares or ASX industrial shares. Below are two ASX dividend shares that have a commendable history of dividend payments.

Shaver Shop Group Ltd (ASX: SSG)

As the name suggests, Shaver Shop is a retailer that specialises in male and female personal grooming products, including electric shavers, clippers, trimmers, and wet shave items. It has 123 Shaver Shop stores across Australia and New Zealand. The company also offers oral care, hair care, massage, air treatment, and beauty products.

Impressively, the ASX dividend share has grown its annual payout every financial year since it started paying a dividend in 2017, though that streak is not guaranteed to continue. Using the last two declared dividends, it has a trailing grossed-up dividend yield of 13%.

In the trading update for 1 January 2024 to 22 February 2024, it revealed total sales were up 0.9%, which is beneficial for the profit generation and supporting the dividend.

In a drive to boost in-store and online operational efficiency, as well as improve the customer experience, it has invested in a new software platform, which was planned for the second half of FY24.

There are multiple ways the business can raise profit in the future, including growing its store network, increasing online sales, expanding its range of products and capturing market share. A rising Australian population is another helpful tailwind for the company.

Nick Scali Limited (ASX: NCK)

Nick Scali is a leading furniture retailer through its Nick Scali and Plush brands.

I think this ASX dividend share is a well-run business, with management focused on moves that will generate good profit growth for investors.

The passive income stock grew its annual payout every year between FY13 to FY23, which is an excellent record considering furniture retailing isn’t what I’d call an ultra-defensive sector.

Nick Scali’s last two dividends amount to 70 cents, which is a grossed-up dividend yield of 7.2%.

The company plans to add another 70 or so stores to its Australia and New Zealand network over the long term. It had 108 stores on 31 December 2023, so there are still a lot of additional stores to go.

The ASX retail share announced it was expanding into the UK by acquiring Fabb Furniture, which has a 21-store network. The company intends to establish the Nick Scali brand in the UK. Management believes there is a “significant opportunity” to drive long-term profitable growth.

Foolish takeaway

Those two companies together have an average grossed-up dividend yield of 10.1%, so an investment of just under $10,000 across the two ASX dividend shares could make an income of $1,000 over the next 12 months.

The post 2 ASX dividend shares that could create $1,000 in passive income in 2024 appeared first on The Motley Fool Australia.

More reading

• Top 5 reasons for retirement in Australia
• Here’s the average wealth of Aussies who manage their own superannuation
• 4 top ASX dividend shares to buy next week
• Top ASX green energy stocks in June 2024
• These ASX shares can rise 25% to 100%+

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 recommended Nick Scali and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.