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After crashing deep into the red over the past 12 months, Core Lithium Ltd (ASX: CXO) shares could now be close to their bottom.

That’s the view of analysts at Goldman Sachs, which have just taken their sell rating off the lithium miner’s shares.

What is Goldman Sachs saying about Core Lithium shares?

Goldman has been tipping Core Lithium as a sell for some time. And with its shares losing 90% of their value since this time last year, it certainly would have paid to listen to the broker.

And while its analysts are becoming a little more upbeat on the lithium miner, this shouldn’t necessarily be interpreted as a signal to buy.

According to a note from earlier this week, the broker has upgraded Core Lithium’s shares to a neutral rating with an 8 cents price target.

This price target is still a sizeable 20% below where its shares currently trade because of some solid gains this week in response to a couple of promising updates.

Why did the broker upgrade its shares?

Goldman believes that the company’s restart risk is now priced in and highlights its strong cash balance. It said:

While we still expect developers to underperform ramped up producers into the declining lithium price environment, we upgrade CXO to Neutral on valuation, with ongoing production restart risk now more priced in at 1.1x NAV (peers 0.8-1.0x NAV) or pricing ~US$1,170/t LT spodumene, and ~40% of CXO’s market cap now in cash on hand (with no debt) potentially partially mitigating exposure to falling lithium prices.

Since we added CXO to the Sell list on 20 Nov 2023, the CXO share price has fallen ~76%, underperforming ASX lithium peers and spodumene/ carbonate/ hydroxide prices down 15-30% over the same period, with the ASX 200 up +11%. We update our valuation methodology to 100% NAV (from 75% NAV, 25% EV/EBITDA multiple), with a return to production and cashflow unlikely in the near-term, in our view, and lower our PT to A$0.08/sh.

The broker also highlights that there is reason to be optimistic from Core Lithium’s exploration activities. Though, it concedes that any real benefits from this are unlikely to be realised in the immediate term. It adds:

Though further exploration is underway, and while potential resource expansion could be promising (including revisiting the gold, uranium and base metal exploration projects), with resource extension likely at depth/from new areas, we see limited near-term upside (particularly as new projects likely require additional funding), where further meaningful exploration is now also likely longer dated on falling lithium prices, particularly with a near-term restart of the operation now unlikely in the near-term.

In light of the above, Goldman thinks investors should keep their powder dry for the time being.

The post Why did Goldman Sachs just upgrade Core Lithium shares? appeared first on The Motley Fool Australia.

More reading

• Up 20% in a week, why is the Core Lithium share price racing higher again today?
• Why Core Lithium, Encounter Resources, Red 5, and Regis Resources shares are storming higher
• Core Lithium share price leaps 9% as results catch short sellers by surprise
• Why did the Core Lithium share price crash 90% in FY 2024
• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?

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.

If I were buying one ASX stock for passive income today, I’d be eyeing Fortescue Metals Group Ltd (ASX: FMG) shares.

The S&P/ASX 200 Index (ASX: XJO) mining stock had a strong run yesterday, with shares closing the day up 1.90% at $22 apiece.

Still, that leaves Fortescue shares down 25% since the opening bell sounded on 2 January.

Now, there’s no guarantee that shares won’t sell down further. But with Fortescue counting among the lowest-cost iron ore producers in the world, with additional possible benefits from its green hydrogen ambitions, I see this year’s sizeable retrace as presenting a potentially opportune entry point.

Particularly with long-term passive income in mind.

We’ll get to that in just a tick.

But first…

Spread those eggs around!

‘Don’t put all your eggs in one basket’ may be a trite expression. But whether you’re investing for capital gains, passive income, or both, it’s an expression to keep at the forefront of your mind.

While we look specifically at the potential of investing in Fortescue shares below, a proper income portfolio should contain a diversified basket of stocks operating in different sectors and ideally across various locations. There’s no magic number, but 10 is a good ballpark figure.

Also, remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower, depending on a range of company-specific and macroeconomic factors.

With that said…

Tapping Fortescue shares for $2,000 a month in passive income

$2,000 a month in passive income, or $24,000 a year, could make a big difference to most Aussies’ retirement plans. Mine included!

So, how many Fortescue shares do I need to buy?

Turning to the past 12 months, Fortescue paid a final fully franked dividend of $1.00 a share on 28 September.

The interim dividend of $1.08 a share will have landed in eligible investors’ bank accounts on 27 March.

That dividend was up 44% from the interim dividend paid out the previous year. This big boost was driven by some strong half-year results, which included a 21% year on year increase in revenue to US$9.5 billion. And net profit after tax (NPAT) of US$3.3 billion for the six-month period was up 41% year on year.

All up then, Fortescue paid out $2.08 a share in passive income over the past year.

At yesterday’s closing price of $22, the ASX 200 miner trades on a juicy, fully franked trailing yield of 9.45%.

And to garner my $2,000 in monthly passive income, I’d need to buy 11,539 shares today.

Now that’s a big investment to make all in one go.

But that’s okay.

Investing is a long game.

I can also purchase smaller amounts of Fortescue shares on a monthly basis, and I expect to achieve my passive income goal in due time.

The post I’d buy Fortescue shares today to generate $2,000 of monthly passive income appeared first on The Motley Fool Australia.

More reading

• Is it time to dive back into ASX lithium shares?
• Fortescue shares in focus as more ‘spying’ details emerge
• It’s a buy! Expert says Fortescue shares are oversold
• Here’s what the iron ore price will be this time next year: Westpac
• These 5 ASX dividend shares had the highest yields in FY24

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.

Are you looking for exposure to the coal industry for your portfolio? If you are, then Bell Potter has you covered.

This morning, the broker has named one ASX 200 coal stock to buy and one to hold.

Let’s take a look at these stocks in detail now:

Coronado Global Resources Inc (ASX: CRN)

The ASX 200 coal stock to buy according to Bell Potter is Coronado Global Resources.

It is expecting the coal miner to report a strong quarterly update later this month. It commented:

Curragh’s operational performance should have strengthened materially in Q2 2024, the first full quarter post substantial pre-strip investment over the past 24 months. We forecast Curragh mining costs of ~US$100/t (Q1 US$127/t) and saleable production of 2.8Mt (Q1 2.5Mt). At Buchanan, higher hoisting rates will provide an additional group production uplift. However, CRN’s operational enhancements will be offset by a 21% qoq fall in the average quarterly HCC benchmark price.

In light of the above and its positive outlook of metallurgical coal, the broker has retained its buy rating and lifted its price target to $1.85 (from $1.60). Based on its current share price of $1.40, this implies potential upside of 32% for investors.

And while dividends are likely to be small this year, the broker expects a mammoth 10% dividend yield in FY 2025. It concludes:

Throughout 2024, CRN should realise improved production volumes and subsequent cost benefits following the self-funded investment across its Australian and US operations. We expect CRN to generate improved free cash flow and shareholder returns going forward. Our buy recommendation is underpinned by a supply constrained met coal environment, supporting long term prices. We see the potential for CRN to participate in industry consolidation.

Whitehaven Coal Ltd (ASX: WHC)

Bell Potter isn’t feeling as positive about ASX 200 coal stock Whitehaven Coal due to its current valuation.

This morning, it has retained its hold rating but lifted its price target to $8.90 (from $7.70). This suggests that upside of just 2.7% is possible from current levels.

In addition, a 2% dividend yield is expected in FY 2024 and then a 3% yield is forecast for FY 2025. It commented:

WHC has diversified its commodity exposure and risk profile, through its ownership of large Queensland met coal assets. We hold a positive long term met coal outlook, driven by constrained supply and robust steel demand. While the company’s free cash profile out to FY27 is restricted by significant acquisition-related cash outlays, we expect it to maintain a dividend payout of 20-50% of NPAT from its NSW operations. We retain our Hold recommendation in line with our recommendation structure.

The post 1 ASX 200 coal stock to buy and 1 to hold appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 coal stocks in focus as wind power fades to a breeze
• Here’s how the ASX 200 market sectors stacked up last week
• Best 5 ASX 200 energy shares for price growth in FY24
• 3 high-flying ASX 200 stocks leading the charge into FY 2025

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.

If you’re building an income portfolio, then it could be worth looking at the ASX 200 dividend stocks named below.

Here’s why they could be good options for income investors this month:

Cedar Woods Properties Limited (ASX: CWP)

Morgans thinks this property company could be a good ASX 200 dividend stock to buy.

The broker highlights that “CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow.”

It expects this to support the payment of dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.80, this equates to dividend yields of 3.75% and 4.15%, respectively.

Morgans has an add rating and $5.60 price target on its shares.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend stock that has been named as a buy is Coles. It is one of the big two supermarket operators with over 800 stores across Australia. In addition, the company has a liquor network comprising almost 1,000 stores across several brands and joint ownership of the Flybuys loyalty program.

Morgans is also feeling positive about Coles and sees it as a great option for income investors. This is due partly to its cost reduction plans and stronger than expected sales growth.

As for dividends, the broker is forecasting 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 $17.35, this will mean dividend yields of 3.8% and 4%, respectively.

Morgans has an add rating and $18.95 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Goldman Sachs is feeling even more positive about this telco giant after an update this week and sees it as an ASX 200 dividend stock to buy.

It notes that Telstra’s price increase update “highlight: (1) mobile market rationality remains (particularly when combined with the recent Optus increase); (2) TLS mobile earnings growth remains strong, driven by subscribers and ARPU.”

The broker believes this will now underpin fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.82, this equates to yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $4.30 price target on Telstra’s shares.

The post Buy Coles and these ASX 200 dividend stocks in July appeared first on The Motley Fool Australia.

More reading

• Why I keep buying shares of this 5%-yielding ASX dividend stock
• Telstra stock pays a massive 7% dividend, and now could be a great time to buy
• Here are the top 10 ASX 200 shares today
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Top brokers name 3 ASX shares to buy 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There could be some big returns on offer in the tech sector still according to analysts at Goldman Sachs.

One such example is ASX tech stock CAR Group Limited (ASX: CAR).

What is the broker saying about this ASX tech stock?

According to a note out of the investment bank this morning, its analysts believe the auto listings company is well-placed for strong growth over the coming years despite some foreign exchange and Trader Interactive (TI) headwinds. It commented:

We revisit the near-term earnings outlook for CAR ahead of FY24 results, noting recent investor queries around: (1) US and AU dealer health; (2) FX; and (3) potential M&A. Overall, we remain confident that despite spot FX and TI dealer headwinds, CAR is well-placed to continue delivering ‘good’ earnings growth (i.e. > 10% EBITDA) & remains our preferred classified into earnings.

Goldman also highlights that the ASX tech stock’s Australian business is performing strongly despite a challenging ad-market. It said:

AU trends remain robust, particularly in used, with volumes (> 95% of total) remaining solid (Ex 4-7); pricing power continues (i.e. 5-6% price increase in private, we expect 4-5% dealer increase in Sept, as used dealer margins remain strong & CAR didn’t increase materially through covid), while media revenues are supported by healthy new car volumes despite the challenging ad-market. With elevated CAR domestic opex growth in 1H24 (13.4%), there is also scope to slow investment and maintain double digit EBITDA growth.

Big returns

In light of the above, the broker has reaffirmed its buy rating on the ASX tech stock with an improved price target of $41.40. Based on its current share price of $34.76, this implies potential upside of 19.1% for investors over the next 12 months.

In addition, Goldman Sachs is forecasting partially franked dividend yields of 2.1% in FY 2024 and 2.3% in FY 2025. This brings the total potential 12-month return beyond 21%, which is more than double the historical return of the share market.

Goldman then concludes by summarising its buy thesis. It said:

Carsales is the largest Auto classified domestically, in addition to having strong international operations in Korea, US (Non-auto) and LATAM. We are Buy rated on CAR as we are increasingly confident in the company’s earnings momentum (both locally & globally) – forecasting +11% EPS CAGR across FY24-27E. Downside risks include: (1) Global macro trends; (2) dealer relationships; (3) FX exposure.

The post Buy this ASX tech stock for a 20%+ return: Goldman Sachs appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The best ASX 200 share of each market sector in FY24
• Can ASX 200 tech shares produce another strong performance in FY25?
• 10 ASX shares that have raised dividends for a decade

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

ASX retail shares had a pretty decent year in FY24, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rising 19.29% over the 12 months.

Does that strike you as strange? In the middle of a cost-of-living crisis?

Consumers have been cutting back big-time on their discretionary spending for many months now, yet ASX retail shares went up in FY24 at more than twice the pace of the benchmark index.

The S&P/ASX 200 Index (ASX: XJO) rose by 7.83% in FY24, or 12.1% if you include dividends.

So, why did this happen?

Why did ASX retail shares rise during a cost-of-living crisis?

David Rumbens, a partner at Deloitte Access Economics, has an answer for us.

In a blog, Rumbens explained why discretionary stocks defied sticky inflation and high interest rates in FY24 to rise by more than 19%.

Rumbens said:  

Consumer discretionary stocks defied expectations by posting a 19% increase despite the economy experiencing per-capita recession.

This unexpected strength largely came from the first nine months of the financial year where consumer savings were being run down.

Ah-ha! Housing savings.

Household savings reached a historical peak during the COVID years. The household saving ratio, which means the percentage of income saved, hit an all-time high of 24% in the June 2020 quarter, according to data from the Australian Bureau of Statistics (ABS).

This happened for three reasons.

Firstly, we weren’t spending much during lockdowns.

Secondly, many Australians received generous government stimulus payments, such as a beefed-up JobSeeker payment and the JobKeeper payment.

Thirdly, emergency low interest rates during the pandemic meant many households with mortgages saved money and left it in their offset accounts.

A saving grace for the economy

This major increase in household savings has turned out to be a massive saving grace for our economy.

This is because what followed COVID was initially unexpected.

As the world reopened and inflation started rising, many economists and central banks predicted the inflation spike would be “transitory” and not too big a deal.

But it turned out to be a big deal.

Inflation hit a peak of 7.8% in Australia in the December 2022 quarter as the cost of living skyrocketed.

Between May 2022 and November 2023, the Reserve Bank of Australia (RBA) raised interest rates 13 times.

So, those pandemic savings are certainly coming in handy for struggling households today. Not only are they enabling people to continue spending at the shops, they’re also protecting home values, too.

You see, despite home loan repayments increasing by 30% to 60% since May 2022, home loan arrears are still very low, according to the RBA. That means not too many people are being forced to sell, and that protects the market by keeping supply in check.

In its latest Financial Stability Review, the RBA noted that pandemic savings were a key factor enabling borrowers to keep up with their repayments.

The RBA said:

Households are coping well due to a strong labour market, which is allowing them to increase their hours or get a second job if necessary.

They are also drawing on large savings buffers, partly created by pandemic stimulus and lower spending during lockdowns, and have reduced their discretionary spending as necessary.

The bank noted that about half of all borrowers had enough savings to pay their loans and cover the cost of essential living expenses for at least six months.

Another factor supporting ASX retail shares in FY24 was the ongoing spending among baby boomers.

CommBank research shows the baby boomers are still spending pretty freely at the shops, despite the cost of goods and services, like travel, going up.

The boomers are one of the biggest population cohorts in Australia’s history, so the fact this group is still spending is helpful for retailers in a cost-of-living crisis.

Best 3 ASX retail shares of FY24

Here are the best ASX 200 retail shares of FY24 based on share price growth, according to data from S & P Global Market Intelligence.

Lovisa Holdings Ltd (ASX: LOV)

Budget jewellery retailer Lovisa led the consumer discretionary stocks in FY24 with a 70.3% share price gain. The Lovisa share price closed the session on Thursday at $32.34, down just 0.03%.

Premier Investments Limited (ASX: PMV)

The second top-performing ASX 200 retail share in terms of share price growth was Premier Investments, up 53.8% over the 12 months. The Premier Investments share price closed at $29.89 yesterday, up 0.88%.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price gained 39.9% over FY24. The ASX retail share closed at $65.25 yesterday, up 1.34%.

The post Why did ASX retail shares rise 19% in FY24 amid a cost of living crisis? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• JB Hi-Fi shares leap to record high despite legal scuffle
• CBA and 7 other ASX 200 shares smashing new highs on Thursday
• 5 things to watch on the ASX 200 on Thursday

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

ASX lithium shares have suffered greatly over the past year or two, but now some experts think there could be opportunities within the ASX mining share sector.

The S&P/ASX 200 Index (ASX: XJO) offers many different potential investment options, including the major iron ore miners, BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG).

According to reporting by the Australian Financial Review, mining-focused fund managers are looking beyond the ASX iron ore shares to find the next stage of returns, so those experts are digging into other sub-sectors of the ASX materials sector.

Experts say ASX mining shares are great value

Ben Cleary, the portfolio manager of Tribeca’s Global Natural Resources fund, told the AFR:

Resources equities are just screaming value. While I think rate cuts are on the horizon, they aren’t necessarily needed for the commodities equities to perform strongly in the second half, but it’ll certainly help.

In terms of lithium, Janus Henderson’s Global Natural Resources Fund portfolio manager, Darko Kuzmanovic, is bullish on the battery metal and has been buying shares of Mineral Resources Ltd (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS).

Janus Henderson is excited by signs that electric vehicle sales in China are increasing, according to the AFR. Kuzmanovic said:

Lithium could be a surprise into the end of 2024, as lithium equities are trading at levels that imply the whole EV transition is over.

The groundwork is set for a strong rebound in resources equities and commodity prices over the next few months into year’s end.

Another expert who’s bullish on lithium is Ethical Partners investment director Nathan Parkin, who had this to say:

We like the lithium sector. The underlying fundamentals are still quite strong, but there has just been lots of noise that people put a lot of weight on, but our view is that you can look through that noise.

Ethical Partners owns IGO Ltd (ASX: IGO) shares as one of its main positions. With the ASX lithium share’s cash costs below spot prices. Parkin suggested IGO can keep making money even if prices drop further.

Are there any other commodities opportunities?

The copper price has reduced from its all-time high of US$11,000 per tonne earlier this year. Cleary is optimistic about copper and thinks prices will need to increase again to incentivise enough supply to meet the strong demand amid global decarbonisation.

The Tribeca resources fund has invested in Sandfire Resources Ltd (ASX: SFR) as one of the opportunities in that space.

The post Is it time to dive back into ASX lithium shares? appeared first on The Motley Fool Australia.

More reading

• Buy this ASX lithium stock and sell this one
• 5 things to watch on the ASX 200 on Friday
• Fortescue shares in focus as more ‘spying’ details emerge
• The 5 most popular ASX shares bought by investors
• Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks

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 lithium industry has been having a terrible time of late due to falling battery material prices.

Given how heavily ASX lithium stocks have fallen, investors may be wondering if it has created some buying opportunities.

Well, analysts at Goldman Sachs have picked out one ASX lithium stock that they believe is a buy and named another they think investors should sell. They are as follows:

IGO Ltd (ASX: IGO)

Goldman thinks that IGO could be an ASX lithium stock to buy. This is thanks to its low costs, which leave it well-positioned in the current environment. It said:

We see a widening discount supporting our relative preference for IGO (Buy) with Greenbushes expansion (and opportunity for value optimisation) and JV balance sheet risks overdone, with the AISC of Greenbushes well below peers.

The broker currently has a buy rating and $7.15 price target on the company’s shares. Based on its current share price of $5.92, this implies potential upside of approximately 21% for investors over the next 12 months.

Pilbara Minerals Ltd (ASX: PLS)

Its analysts think that Pilbara Minerals is an ASX lithium stock to sell right now. It highlights that the lithium giant trades at a premium to peers and doesn’t believe this is deserved. It said:

PLS (Sell) continues to trade at fundamental premium vs. peers, including on both EV/EBITDA and EV/LCE production even when including an underwhelming ‘P2000’ expansion scenario.

Goldman currently has a sell rating and $2.60 price target on the company’s shares. Based on its current share price of $3.02, this suggests that its shares could fall approximately 14% over the next 12 months.

What about the lithium market outlook?

Goldman Sachs has been (correctly) bearish on the lithium market for some time. Unfortunately, nothing has changed with this view and the broker continues to believe that prices will remain depressed due to supply outstripping demand.

In addition, it highlights that more supply is coming to the market, which it suspects could keep prices lower for longer. The broker explains:

New lithium volumes still being added in market surplus: With lithium spot prices still sitting near the top end of the integrated cash cost curve, we have yet to see meaningful volumes come out of the market or new projects get deferred. In fact, new projects continue to be proposed (i.e. PLS’ ‘P2000’), or progressed. DLE is also set to become a commercial reality outside China later this year with Eramet recently inaugurating its new plant. With this backdrop (where we note lithium auctions have each achieved a lower price than the last since mid-April), we continue to factor in near term pricing weakness over 2H CY24 and CY25.

This could be bad news for ASX lithium stocks and restrict any meaningful rebound in the near future.

The post Buy this ASX lithium stock and sell this one appeared first on The Motley Fool Australia.

More reading

• Is it time to dive back into ASX lithium shares?
• The 5 most popular ASX shares bought by investors
• This top broker thinks Pilbara Minerals shares are done falling
• Guess which ASX lithium stock was just named as a sell
• 5 things to watch on the ASX 200 on Tuesday

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.

If you’re wanting to supercharge your passive income stream, then read on.

That’s because listed below are three high-yield ASX dividend shares that could give your income portfolio a major boost.

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

Accent Group Ltd (ASX: AX1)

Bell Potter think that Accent Group could provide investors with a big dividend yields in the coming years. It is a retail conglomerate with a focus on the leisure footwear market. This includes with store brands such as HypeDC, Platypus, and The Athlete’s Foot.

The broker believes the company is well-placed to navigate “a challenging retail spend environment” thanks to its “scale & exposure in terms of channels, brands & size.”

It expects this to underpin 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 $1.95, this represents dividend yields of 6.7% and 7.5%, respectively.

Bell Potter has a buy rating and $2.50 price target on its shares.

APA Group (ASX: APA)

Over at Macquarie, its analysts think investors should be looking at APA Group. It is an energy infrastructure company that owns, manages, and operates a $27 billion portfolio of gas, electricity, solar and wind assets.

Macquarie believes the company is positioned to continue its long run of dividend increases. It is forecasting dividends per share of 56 cents in FY 2024 and then 57.5 cents in FY 2025. Based on the current APA Group share price of $7.88, this equates to 7.1% and 7.3% dividend yields, respectively.

Its analysts have an outperform rating and $9.40 price target on its shares.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Finally, a third high-yield ASX dividend share that could supercharge your passive income stream according to analysts is Healthco Healthcare and Wellness REIT. It is a property company with a focus on health and wellness assets. This includes hospitals, aged care facilities, and primary care properties.

Bell Potter is positive on the company and highlights the sizeable discount to net tangible assets that its shares trade at. It sees this as a buying opportunity, especially given its expectation that Healthco Healthcare and Wellness REIT’s dividend will continue to grow.

The broker is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.12, this will mean yields of 7.1% and 7.4%, respectively.

Bell Potter has a buy rating and $1.50 price target on its shares.

The post 3 high-yield ASX dividend shares to supercharge your passive income stream appeared first on The Motley Fool Australia.

More reading

• 2 cheap ASX shares near their lows I’m thinking of buying now
• Buy these ASX dividend shares for 5% to 7% yields
• Could this ASX dividend share offer a huge 11% yield in 2026?
• Analysts say these ASX dividend shares are top picks in July
• Forget CBA and buy these ASX dividend stocks

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie 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.

ASX bank shares are often viewed through a dividend lens – how much dividend income can they generate? Sometimes, ANZ Group Holdings Ltd (ASX: ANZ) shares can provide the biggest dividend yield because of their generous dividend payout ratio and low valuation.

Banks can typically trade on a relatively low price/earnings (P/E) ratio, partly because they have such large balance sheets. A relatively small percentage of their loans going bad can significantly impact that year’s profit. Pleasingly, a low P/E ratio can translate into a large yield.

We shouldn’t choose an investment just because of the dividend yield. The reliability of the yield should be considered, or else the yield will just be a mirage. When evaluating the outlook, we need to consider whether earnings are increasing and whether today’s valuation is attractive.

Having said that, investors interested in ANZ shares may like to know where it sits in terms of the potential dividend income compared to other banks. I will exclude franking credits from the yield because it’s unknown what ANZ’s upcoming franking level will be.

Dividend forecast for ANZ shares

The estimate on Commsec suggests the major ASX bank could pay an annual dividend per share of $1.66 in FY25 and $1.66 in FY26.

If those predictions come true, the bank would pay a dividend yield of 5.6% in both FY25 and FY26.

Passive income projections for other ASX bank shares

According to the (independent) estimates on Commsec, Commonwealth Bank of Australia (ASX: CBA) could pay an annual dividend per share of $4.55 in FY25 and $4.59 in FY26. This would translate into forward dividend yields of 3.5% and 3.6%, respectively.

National Australia Bank Ltd (ASX: NAB) is projected to pay annual dividends per share of $1.69 in FY25 and $1.71 in FY26. These forecasts suggest dividend yields of 4.7% and 4.8%.

Westpac Banking Corp (ASX: WBC) is predicted to pay total dividends per share of $1.50 in FY25 and $1.50 in FY26, according to Commsec. This works out to be forward dividend yields of 5.4% in both financial years.

According to the projections on Commsec, owners of ANZ shares could get the biggest yield for the next couple of financial years compared to the other major ASX bank shares.

But, there are other banks to consider, so let’s look at those as well.

Macquarie Group Ltd (ASX: MQG) is predicted to pay an annual dividend per share of $7 in FY25 and $7.55 in FY26. This would translate into forward dividend yields of 3.4% and 3.7%, respectively.

Bank of Queensland Ltd (ASX: BOQ) is predicted to pay an annual dividend per share of 34 cents in FY25 and 36 cents per share in FY26. This would be dividend yields of 5.6% and 5.9% in the next two financial years.

Bendigo and Adelaide Bank Ltd (ASX: BEN) is forecast to pay an annual dividend per share of 63 cents in FY25 and FY26. This translates into a forward dividend yield of 5.4%.

Foolish takeaway

BOQ is predicted to pay potentially the highest yield in the next two financial years, though its profit has been going the wrong way in recent years. Aside from BOQ, ANZ shares could have the highest dividend yield in the ASX banking sector, which may be an appealing factor for some investors. But, as I said earlier, the yield isn’t necessarily everything.

The post Do ANZ shares offer the biggest dividend yield in the ASX bank sector? appeared first on The Motley Fool Australia.

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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.