Tag: Fool

I think that buy and hold investing is one of the best ways to generate wealth.

This is because of the power of compounding. And as compounding really works its magic the longer you leave it, buy and hold investing really unlocks its power.

But what if you don’t like stock picking? Well, there’s a solution for you – exchange-traded funds (ETFs).

ETFs remove the need to pick stocks because they allow investors to buy large groups of shares through a single click of the button.

With that in mind, let’s look at three ASX ETFs that could be great buy and hold options for investors right now. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you are looking for buy and hold options then it is hard to look beyond the extremely popular BetaShares NASDAQ 100 ETF.

That’s because it is never a bad idea for investors to buy some of the best companies in the world. And this ASX ETF is filled with them.

The BetaShares NASDAQ 100 ETF provides investors with access to the 100 largest (non-financial) shares on Wall Street’s famous NASDAQ index.

This includes tech giants such as Amazon, Apple, Microsoft, Nvidia, and Tesla, as well as well-known non-tech companies including Starbucks, Monster Beverage, Lululemon, and PepsiCo.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF for investors to consider as a buy and hold investment this month is the Betashares Global Quality Leaders ETF.

As its name implies, this ETF has a focus on investing in quality. At present, it provides investors with exposure to approximately 150 of the world’s highest quality companies.

These are companies that rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Betashares’ chief economist, David Bassanese, recommended it last year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF.

If buy and hold investing is your aim, then this ASX ETF could be the one. That’s because it invests in the type of companies that legendary investor Warren Buffett buys for his Berkshire Hathaway (NYSE: BRK.B). And given his incredible track record over multiple decades, it is not a bad idea to follow in his footsteps.

The VanEck Vectors Morningstar Wide Moat ETF invests in high quality companies with sustainable competitive advantages (aka wide moats) and fair valuations.

The post Why these ASX ETFs could be fantastic buy and hold options appeared first on The Motley Fool Australia.

More reading

• Both of these excellent ASX ETFs are on my buy list
• How much money should I put in one ASX ETF?
• 5 excellent ASX ETFs to buy next week
• Top ASX shares to buy for your superannuation fund in May 2024
• Does the VanEck Wide Moat ETF pay a decent ASX dividend?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Lululemon Athletica, Microsoft, Monster Beverage, Nvidia, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia, Starbucks, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Whilst I’d like to think my retirement capacity may be coming sooner than later, the reality is that having the option not to work is still probably a few decades away for this writer. Even so, I’m investing in ASX stocks today in order to facilitate the earliest possible realisation of financial freedom.

With that in mind, there’s one ASX stock that I already own in my pre-retirement portfolio that I’m eyeing for a potential top-up this May. This ASX stock in question is the listed investment company (LIC) Plato Income Maximiser (ASX: PL8).

Like most LICs, Plato Income Maximiser functions more like a managed fund than a traditional ASX stock. It manages a portfolio of underlying assets on behalf of its shareholders.

In Plato’s case, these assets are purchased with the primary aim of maximising franked dividend income for shareholders. Just like it tells us on the tin.

As such, investors won’t be too surprised to see ASX stocks like BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), National Australia Bank Ltd (ASX: NAB) and Woodside Energy Group Ltd (ASX: WDS) amongst the current top ASX stocks within Plato’s portfolio.

Why would I buy more of this ASX 200 stock?

Unlike the vast majority of ASX dividend stocks, Plato Maximiser doles out not biannual or quarterly dividends, but monthly payments. Yep, shareholders get a dividend paycheque 12 times a year.

The company’s last 12 payments all amounted to 0.55 cents per share, fully franked. The current Plato share price of $1.20 gives the company a trailing annual dividend yield of 5.96%. Grossed up with the company’s full franking credits, we get a yield of 8.51%.

But a high dividend yield means nothing if the company can’t deliver, at the bare minimum, share price stability and, at best, some additional capital growth. Just ask income investors who’ve bought WAM Capital Ltd (ASX: WAM) shares about that.

Fortunately, in Plato’s case, shareholders have enjoyed additional returns outside dividend payouts. According to Plato, its investment portfolio has generated a total return of 10.1% per annum (as of 31 March) since its inception in 2017.

That’s in addition to an average return of 11.5% over the past three years, and 14.9% over the 12 months to 31 March. Those returns take into account management fees, as well as returns from those full franking credits.

Taking all of this data into account, I think Plato Income Maximiser is a high-quality ASX stock and, as such, is a foundational holding in my pre-retirement portfolio. The monthly dividends are a great source of passive income that I can reinvest into additional dividend shares, which will hopefully result in an early retirement one day.

The post 6% yield! I’m eyeing this ASX stock for my retirement portfolio in May appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be fantastic buy and hold options
• Why Goldman Sachs just slapped a sell rating on this ASX 200 stock
• 5 things to watch on the ASX 200 on Wednesday
• Buy BHP and these ASX dividend stocks
• Why more ASX mining shares could soon turn to takeover bids

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank and Plato Income Maximiser. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts at Goldman Sachs have been running the rule over a popular ASX 200 stock this week.

But unfortunately for its shareholders, the broker believes that the risks are currently to the downside and that they should be selling its shares before it is too late.

Let’s now dig a little deeper into what is making the broker bearish about this blue chip stock.

Which ASX 200 stock is a sell?

The stock in question is the Australian stock market operator, ASX Ltd (ASX: ASX).

According to the note, this morning, the broker has initiated coverage on the ASX 200 stock with a sell rating and $60.00 price target. This implies potential downside of 6.1% from current levels.

Goldman summarised its bearish stance. It said:

We initiate on ASX with a Sell rating and 12-month PT of $60.00. While ASX has seen substantial regulatory, cost and margin pressures, we think the balance of risks are still skewed to the downside with prospects that appear less appealing compared to other sectors / stocks in our coverage.

What else is the broker saying?

Goldman has concerns over regulatory pressures, believing that its near monopoly on clearing and settlements (CS) could be in danger. It explains:

As a proportion of group revenues, we think ~12.6% of ASX’s 1H24 revenues currently relate to clearing and settlement where ASX has a monopoly and could see some risks from any competition over time. […] While Clearing and Settlement (CS) isn’t a legislated monopoly in Australia, the requirements to operate a CS facility are high making it expensive and reducing the risk of competition. […] However, regulators appear keen to open up competition in CS.

Another reason the broker is bearish on the ASX 200 stock is concerns that capex could be rising. Goldman adds:

FY24 Capex guidance provided by ASX is $110m to $140m with FY25 Capex guidance to be provided at ASX’s Investor day in June. We think there is a risk of Capex levels skewing higher into FY25 or maintained at these elevated levels noting CHESS replacement costs + tech modernisation ramp up including upgrade to ASX’s derivatives clearing and trading platform. We think ASX is also shifting opex growth to capex (i.e. reduction in non project headcount + some growth in project headcount).

Overall, in light of the above, the broker feels that investors should avoid the company until the risk/reward on offer with its shares is more compelling.

The post Why Goldman Sachs just slapped a sell rating on this ASX 200 stock appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be fantastic buy and hold options
• 6% yield! I’m eyeing this ASX stock for my retirement portfolio in May
• 5 things to watch on the ASX 200 on Wednesday
• Buy BHP and these ASX dividend stocks
• Why more ASX mining shares could soon turn to takeover bids

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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.3% to 7,726.8 points.

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

ASX 200 expected to rise

It looks set to be a positive day for the Australian share market on Wednesday following a good session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.4% higher. On Wall Street, the Dow Jones rose 0.3%, the S&P 500 pushed 0.5% higher, and the Nasdaq charged 0.75% higher.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$78.25 a barrel and the Brent crude oil price is down 1% to US$82.64 a barrel. Traders were selling oil after the US Federal Reserve admitted that inflation has been stickier than expected in 2024.

Federal budget

The Federal Budget was announced last night and could have ramifications for some ASX 200 shares. Companies focusing on green energy, such as Fortescue Ltd (ASX: FMG), look set to benefit from the government’s $19.7 billion pledge to turn Australia into a renewable energy power. There are also new tax incentives for critical minerals. This includes $8 billion for green hydrogen. Bunnings owner Wesfarmers Ltd (ASX: WES) could benefit from $4.3 billion of new housing expenditure funding.

Gold price pushes higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price charged higher overnight. According to CNBC, the spot gold price is up 0.8% to US$2,362.2 an ounce. Gold pushed higher despite the release of a hotter than expected inflation reading in the United States.

Buy AP Eager shares

The Eagers Automotive Ltd (ASX: APE) share price is good value according to analysts at Bell Potter. This morning, ahead of the release of the auto retailer’s annual general meeting update next week, the broker has retained its buy rating on its shares with a trimmed price target of $14.75. This implies potential upside of 18% for investors over the next 12 months. In addition, the broker expects 5.9% fully franked dividend yields in FY 2024 and FY 2025.

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

More reading

• Here are the top 10 ASX 200 shares today
• Why is the ASX 200 eerily quiet today?
• Should you buy Fortescue shares for that fat 8% dividend yield?
• 2 reasons Thursday is shaping up to be a huge day for the ASX 200
• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)

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

Income investors are a lucky bunch. That’s because the Australian share market is filled to the brim with ASX dividend stocks offering generous yields.

Four such stocks are listed below. Here’s what analysts are expecting from these buy-rated shares over the next couple of years:

BHP Group Ltd (ASX: BHP)

Mining behemoth BHP could be a great option for income investors according to analysts at Goldman Sachs.

The broker thinks the Big Australian’s shares are good value and could provide investors with decent dividend yields in the near term. For example, it is forecasting fully franked dividends of US$1.45 (A$2.19) per share in FY 2024 and then US$1.26 (A$1.90) per share in FY 2025. Based on the current BHP share price of $43.15, this equates to dividend yields of 5.1% and 4.4%, respectively.

Goldman has a buy rating and $49.20 price target on the miner’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs’ analysts also think that this insurance giant could be a top ASX dividend stock for income investors to buy.

The broker is forecasting dividends per share of 62 US cents (A$0.936) in FY 2024 and 63 US cents (A$0.951) in FY 2025. Based on the current QBE share price of $17.36, this equates to dividend yields of 5.4% and 5.5%, respectively.

Goldman has a buy rating and $20.90 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend stock that Goldman thinks could be a buy for income investors is Super Retail. It is the owner of BCF, Supercheap Auto, Macpac, and Rebel.

Goldman expects Super Retail to be in a position to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on its current share price of $13.51, this will mean yields of 5% and 5.4%, respectively.

The broker has a buy rating and $17.80 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend stock that has been given the thumbs up by analysts is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Morgans is very positive on the company and expects some nice yields from its shares despite a significant rally in recent months. It is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the current Universal Store share price of $5.35, this will mean attractive yields of 4.85% and 5.4%, respectively.

The broker has an add rating and $6.50 price target on its shares.

The post Buy BHP and these ASX dividend stocks appeared first on The Motley Fool Australia.

More reading

• Why more ASX mining shares could soon turn to takeover bids
• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)
• BHP share price slides amid no deal on ‘compelling opportunity’
• Get paid huge amounts of cash to own these ASX dividend shares
• BHP shares on watch after new $64b Anglo American takeover offer rejected

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Those who have been paying attention to ASX mining shares on the stock market over the past couple of years might have noticed a bit of a trend. Mergers and acquisitions (M&A) in the mining space are all the rage at the moment.

This was brought into sharp focus last month with the blockbuster $60 billion bid for the British miner Anglo American (LSE: AAL). As it currently stands, BHP Group Ltd (ASX: BHP) and Anglo remain locked in a delicate courtship dance. However, we’ve seen other marriages that have been proposed and, in some cases, consummated, on the ASX recently.

The merger of the old Newcrest Mining Ltd with US gold mining behemoth Newmont Corporation (ASX: NEM) last year would probably be the best example. But there are many others.

A long story short, M&A seems to be the flavour of the month.

This might cause some consternation amongst some ASX fans of mining shares. After all, there are plenty of examples throughout the ASX’s history of miners embarking on acquisition sprees when they are flush with cash at the height of a commodity cycle, only to shred shareholder capital when prices fall, but debts remain.

However, one ASX expert not only reckons that this latest wave of M&A is good for investors but also predicts that merger activity is still on its way up.

Expert: Don’t fear ASX mining share M&A

As reported by the Australian Financial Review, BlackRock Mining Trust’s Evy Hambro is telling investors not to fear. Hambro argues that, as a general rule, current conditions mean buying other companies or their assets is cheaper and more efficient for miners than building out new mines themselves.

Hambro, whose fund is the world’s largest mining fund, has reportedly chided miners for focusing too much on M&A in the past at the expense of shareholder returns. But those are not concerns he appears to currently hold.

Here’s some more of what he said:

Right now what we are seeing … is the cost of building new [mine] capacity has risen, we are seeing higher costs of constructing, we are seeing higher risks … around resource nationalism…

So I think the value of assets trading in the liquid market probably doesn’t reflect the fully risk-adjusted cost of building new capacity, and I am sure that has caught the attention of many management teams.

We think M&A is just normal business, and there is a point in the cycle when things tend to pick up a bit…. We would be absolutely in support of companies maintaining that disciplined approach to how they allocate capital, and that is an essential part, I think, of maintaining trust with investors and maximising the returns.

So, no doubt that will come as some welcome assurance for many followers of ASX mining shares who might be feeling a little apprehensive about the M&A boom that we’ve been witnessing. Let’s see which company comes up with a marriage proposal next.

The post Why more ASX mining shares could soon turn to takeover bids appeared first on The Motley Fool Australia.

More reading

• Buy BHP and these ASX dividend stocks
• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)
• BHP share price slides amid no deal on ‘compelling opportunity’
• BHP shares on watch after new $64b Anglo American takeover offer rejected
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 lucky enough to have $10,000 burning a hole in your pocket, you might want to consider putting it to work in the share market.

After all, with the share market providing investors with a 10% per annum return over the long term, it could turn that money into something much larger in the future if you have no immediate use for it.

With that in mind, let’s now see if Telstra Group Ltd (ASX: TLS) shares would be a good option for those funds.

Are Telstra shares a good option?

It is fair to say that the telco giant has not been a great place to invest over the last 12 months.

Over this time, the company’s shares have lost 16% of their value. This compares to a 6.3% gain by the ASX 200 index.

Though, it is worth noting that this decline has little to do with Telstra’s performance and more to do with interest rates. As Telstra’s shares are treated like a bond proxy by many investors, demand falls when rates rise.

But that was then. What about now? Could an investment in Telstra shares deliver strong returns over the next 12 months? Let’s find out.

What could $10,000 become?

Firstly, if you were to invest $10,000 (and $1 more) in the telco giant, you would end up owning 2,740 shares at the current share price of $3.65.

According to a recent note out of Goldman Sachs, its analysts believe the company’s shares are undervalued at the current share price. That note reveals that the broker has put a buy rating and $4.55 price target on the company’s shares.

This means that if your 2,740 Telstra shares rose to that level, they would be worth $12,467. This is almost $2,500 or 25% greater than your original investment.

But the returns shouldn’t stop there. Telstra is historically one of the more generous dividend payers on the Australian share market and Goldman expects this to remain the case in the future.

The broker is forecasting a fully franked dividend of 18 cents in FY 2024. This represents a 4.9% dividend yield and will boost the value of your investment by $490 if you reinvest the income.

In total, this would mean that a $10,000 investment in Telstra shares becomes worth $12,957. That represents a total 12-month return of almost $3,000 or 30%, which is approximately triple the average market annual return.

The post How much could $10,000 invested in Telstra shares be worth next year? appeared first on The Motley Fool Australia.

More reading

• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)
• Buy Telstra and these ASX dividend stocks for income
• How to help recession-proof your ASX share portfolio in May 2024
• 3 easy ways to reduce your ASX share portfolio’s volatility right now
• How to choose ASX shares for passive income

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

Sayona Mining Ltd (ASX: SYA) shares have had a year to forget.

One year ago, shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock were trading for 23 cents apiece. Which was already well down from the highs of 36 cents a share in April 2022, when lithium prices were storming towards all-time-highs.

Yesterday, Sayona shares closed at 4.6 cents, putting the stock down 80% over 12 months.

As you’d expect, that kind of fall has also knocked the stuffing out of Sayona’s market cap, which has dropped to $471.95 million.

Unfortunately, this only caused more pain, as the market cap reduction led to Sayona Mining shares being booted from the S&P/ASX 200 Index (ASX: XJO) in March as part of the S&P Dow Jones Indices quarterly rebalance. This means some fund managers, limited to investing in the biggest pool of stocks, won’t be able to hold shares.

But the biggest and really inescapable pressure has been the massive retrace in lithium prices over the past 18 months. However, it’s worth noting that the price of the battery-critical metal looks to have found a floor in 2024.

So, after crashing 80% in a year, are Sayona Mining shares now good value?

What’s been happening with the ASX lithium miner?

Sayona’s primary focus is its North American Lithium (NAL) project, located in Quebec, Canada.

NAL is a joint venture project. Sayona Mining owns 75%, and Piedmont Lithium Inc (ASX: PLL) owns the other 25%.

Despite a stabilising lithium price and maiden production in H1 FY 2024, Sayona Mining shares have slumped 37% in 2024 to date.

With maiden half-year revenue of $118 million for the first half, the miner closed out 2024 with a cash balance of $158 million as at 31 December.

But it’s been burning through cash since then.

At its quarterly update, released on 26 April, the company reported achieving an 18% increase in production from the prior quarter to 40,439 dry metric tonnes (dmt).

Costs also increased, however, with unit operating costs up 10% quarter on quarter to $1,536 per dmt.

Rather alarmingly for Sayona Mining shares, while the lithium miner’s concentrate sales volumes increased by 142% from the prior quarter to 58,055 per dmt, it received an average realised price of $999 per dmt.

Or more than $500 per dmt less than it cost to produce.

Management reported cash holdings of $99 million as at 31 March, down $59 million over the three months.

Time to buy Sayona Mining shares?

With these figures in mind, it’s hard to make a case for buying Sayona Mining shares right now.

Indeed, the ASX lithium stock again finds itself among the top-ten most shorted stocks on the ASX this week, with a short interest of 8.1%.

Not that short sellers don’t often get it wrong, mind you.

And on the plus side, the Federal government has flagged ongoing and increased support for miners of critical minerals, which includes lithium.

But with the lithium price forecast to remain subdued in the year ahead, and with the production costs at NAL in mind, I’d put Sayona Mining shares on a watch list for now and hold off on buying.

The post Down 80% in a year, are Sayona Mining shares now a buy? appeared first on The Motley Fool Australia.

More reading

• Why ANZ, Fletcher Building, Macquarie, and Sayona Mining shares are dropping today
• What’s happening with the Sayona Mining share price on Monday?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

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.

Despite the Australian share market currently trading within sight of its record high, that doesn’t mean there aren’t any bargain shares out there for investors.

For example, three Australian shares that could be both cheap and offer big dividend yields are listed below.

Here’s what you need to know about these buy-rated shares:

Accent Group Ltd (ASX: AX1)

The first Australian share that could be both cheap and offer big dividend yields is Accent Group. Through brands such as HypeDC, Sneaker Lab, Platypus, Stylerunner, and The Athlete’s Foot, it operates over 800 physical stores and multiple online stores.

Bell Potter is a very big fan of the footwear focused retailer. It has a buy rating and $2.50 price target on its shares. This is notably higher than its current share price of $1.84.

In respect to income, Bell Potter is expecting 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 its current share price, this represents yields of 7% and 7.7%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another bargain Australian share could be Healthco Healthcare and Wellness REIT. It is a property company with a focus on health and wellness assets.

Bell Potter thinks its shares are dirt cheap at current levels. The broker currently has a buy rating and $1.70 price target on them. This compares to its current share price of $1.17, which is only a fraction above its 52-week low.

The broker also expects some big dividend yields from its shares in the coming years. It is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. This will mean dividend yields of 6.8% and 7.1%, respectively, for investors.

IPH Ltd (ASX: IPH)

A final Australian share that could be a bargain is IPH. It is an intellectual property solutions company with operations across the world.

Goldman Sachs is very positive on the company and sees significant value in its shares at current levels. The broker currently has a buy rating and $8.70 price target on its shares. This compares to its latest share price of $6.07.

As with the others, the broker also expects some big dividend yields from its shares in the near term. It is forecasting fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. This would mean yields of 5.6% and 6.1%, respectively.

The post 3 bargain Australian shares with over 5% dividend yields appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Bellevue Gold, IPH, Life360, and Ramelius Resources shares are racing higher
• These ASX dividend shares offer 6%+ yields
• 4 excellent ASX 200 dividend shares to buy for your income portfolio
• 2 ASX dividend stocks analysts rate as buys

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

It has been an uncharacteristically underwhelming 12 months for CSL Ltd (ASX: CSL) shares.

Over the period, the ASX biotech stock has lost around 10% of its value.

As a comparison, over the past 15 years, this magnificent company’s shares have generated an average total return of 16.6% per annum.

This would have turned a $10,000 investment in the ASX stock back in 2009 into $100,000 today.

And while recent weakness is very off-brand for CSL and disappointing for shareholders, it could prove to be a buying opportunity for non-shareholders.

That’s the view of a large number of analysts, which currently have buy ratings on the company’s shares with price targets implying that market-beating returns are possible.

What are analysts saying about this ASX stock?

One broker that is particularly bullish on CSL is Morgans. In fact, the broker has named the company on its best ideas list again this month. It has an add rating and $315.40 price target on them, which implies potential upside of almost 13% over the next 12 months.

It highlights the company’s shares are undervalued compared to historical averages. This is despite the ASX stock having a very bright outlook. It said:

While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.

Analysts at Macquarie are even more bullish on the ASX stock. They currently have an outperform rating and $330.00 price target on CSL’s shares. This suggests that upside of 18% is possible between now and this time next year.

The broker is very positive on the company’s outlook. So much so, it sees scope for CSL’s shares to rise to $500 within three years. This is almost double its current share price, which means that some very big annual returns would be coming for investors over the next three years if Macquarie is on the money with its recommendation.

In addition, the team at UBS remains very positive. Last month it retained its buy rating and $330.00 price target on CSL’s shares. UBS believes the ASX stock can achieve high-teens earnings growth over the next few years.

All in all, the broker community appears to believe this magnificent ASX stock could be worth buying and holding at current levels.

The post 1 magnificent ASX stock down 10% to buy and hold forever appeared first on The Motley Fool Australia.

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