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

This is because it allows investors to take advantage of the power of compounding. This is what happens when you generate returns on top of returns.

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

Let’s now see how investments in these three shares have fared during this time:

Cochlear Limited (ASX: COH)

It is fair to say that this manufacturer and distributor of cochlear implantable devices for the hearing-impaired has been a great ASX 200 share to own over the last decade.

Due to its industry-leading position, sizeable investment in research and development, its wide distribution network, and ageing populations across the globe, Cochlear has delivered consistently strong sales and earnings growth.

This has led to Cochlear’s shares providing investors with an average total return of 19.4% per annum over the last 10 years. This would have turned a $20,000 investment into almost ~$120,000 today.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that has been lighting up the ASX boards over the past decade has been data centre operator, NextDC.

Thanks to strong demand for capacity in its data centres due to the structural shift to the cloud, and now the artificial intelligence boom, its revenue and operating earnings have been growing at a rapid rate.

This has led to the ASX 200 share outperforming the market since 2014 with an average total return of 26.1% per annum. This means that a $20,000 investment in NextDC shares back then would have grown to be worth just over $200,000 today.

Northern Star Resources Ltd (ASX: NST)

Finally, this gold mining giant has been a star performer on the ASX 200 over the past 10 years.

This has been underpinned by the company’s transformation from a relatively small gold miner to one of the largest in the industry. A booming gold price has also been very helpful in recent times, driving its shares 30% higher over the last six months.

This has led to the company’s shares smashing the market return since 2014. Over the period, Northern Star’s shares have generated an average return of 30.5% per annum. This would have turned a $20,000 investment into almost $290,000 today.

The post $20,000 invested in these ASX 200 shares 10 years ago is worth… 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
• 5 things to watch on the ASX 200 on Thursday
• Aussie investors: 3 ASX shares to buy and hold forever
• Here are the top 10 ASX 200 shares today

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

Westpac Banking Corp (ASX: WBC) shares were in the spotlight last week when Australia’s oldest bank released its eagerly anticipated half year results.

For the six months ended 31 March, Westpac reported a net profit before one-offs came in at $3,506 million.

This is an 8% decline on the prior corresponding period but a far more modest 1% reduction on the second half of FY 2023.

Despite the softer profits, the Westpac board decided to reward its shareholders with a dividend increase. The bank declared a fully franked interim dividend of 75 cents per share, which is a 7.1% increase on the prior corresponding period.

But the Westpac board didn’t stop there. Thanks to its strong balance sheet, it added a surprise 15 cents per share special dividend into the mix, as well as an additional $1 billion on-market share buyback.

Unfortunately for income investors, Westpac’s shares have now traded ex-dividend for both its interim dividend and special dividend. This means it is too late to receive these payouts unless you were a shareholder before the ex-dividend date.

But don’t worry, there are more dividends on the way. But how big will they be? Let’s take a look at what analysts are forecasting for the Westpac dividend following this result.

Westpac dividend forecast

According to a note out of Goldman Sachs, its analysts have lifted their Westpac dividend estimates in response to its half year results.

The note reveals that Goldman now expects a fully franked $1.65 per share dividend in FY 2024. Based on the current Westpac share price of $26.66, this equates to a 6.2% dividend yield.

Looking ahead, the broker now expects a $1.50 per share fully franked dividend in FY 2025. This is up from its previous estimate of $1.44 per share and represents a 5.6% dividend yield.

It is the same story in FY 2026, with Goldman now expecting another $1.50 per share dividend instead of $1.44 per share previously. This will mean another attractive 5.6% dividend yield for income investors that year.

This trend is expected to continue in FY 2027, with its analysts pencilling in another $1.50 per share fully franked dividend. This of course represents a third consecutive 5.6% dividend yield for investors to look forward to.

Overall, the outlook for the Westpac dividend has improved since the release of the bank’s results and above-average yields are on the cards for the foreseeable future.

The post Here’s the Westpac dividend forecast through to 2027 appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy for your superannuation fund in May 2024
• Here are 2 top ASX 200 shares I’d buy now for passive income
• It was huge week for ASX 200 bank shares. Here’s why
• Why Baby Bunting, JB Hi-Fi, Temple & Webster, and Westpac shares are falling today
• Why are Westpac shares slumping 5% on Thursday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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.

Deciding which ASX shares to buy for your superannuation fund is not easy. After all, you have toiled all your working life to earn this money, and hopefully, it will afford you a happy, financially secure, and stress-free retirement.

Likewise, your super investment is not something you should constantly meddle with. This means you’ll want the ASX shares within it to be high-quality companies you can hold for the long term — not risky stocks you need to dip in and out of regularly.

Whether you run your own self-managed super fund (SMSF) or simply like to add a few personal touches to your retail super fund, read on!

Because we asked our Foolish contributors which ASX shares they reckon deserve a place in your superannuation fund in May.

Here is what the team came up with:

6 best ASX shares for your super fund right now (smallest to largest)

• VanEck Morningstar Wide Moat ETF (ASX: MOAT), $891.95 million
• Collins Foods Ltd (ASX: CKF) $1.10 billion
• iShares S&P 500 ETF (ASX: IVV), $7.74 billion
• Medibank Private Ltd (ASX: MPL), $10.05 billion
• Coles Group Ltd (ASX: COL), $21.75 billion
• Westpac Banking Corp (ASX: WBC), $92.60 billion

(Market capitalisations as of market close 10 May 2024).

Why our Foolish writers rate these ASX stocks as super!

VanEck Morningstar Wide Moat ETF

What it does: This ASX exchange-traded fund (ETF) gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages.

By James Mickleboro: There are few better investors to follow in the footsteps of than Warren Buffett. Since the 1960s, the Oracle of Omaha has consistently beaten the market and delivered outsized returns for his Berkshire Hathaway business.

The remarkable thing is that Buffett hasn’t achieved his success by using complex investment strategies. His approach is about as simplistic as it gets on the stock market, and time and time again, he has beaten the market.

Buffett does this by buying high-quality companies with sustainable competitive advantage at fair prices. The VanEck Morningstar Wide Moat ETF replicates this strategy, making it super easy for investors to invest in companies that Buffett would buy without having to do any research.

Over the past decade, the index this ETF tracks has generated an average total return of 16% per annum, significantly better than the long-term market average of 10% per annum.

Motley Fool contributor James Mickleboro does not own units of the VanEck Morningstar Wide Moat ETF.

Collins Foods Ltd

What it does: Collins Foods is a major franchisee of KFC outlets in Australia and owns a growing network of KFCs in Germany and the Netherlands. The company is also responsible for the Taco Bell chain in Australia.

By Tristan Harrison:  I’ve long admired the simple growth potential of this ASX 200 company and recently bought shares. I decided to take advantage of the more than 20% decline in the Collins Foods share price since January.

What’s simple about the growth? The company just needs to keep opening/acquiring new locations to grow its scale.

The HY24 result showed everything I think Collins is capable of continuing into the future. Revenue rose 14.3%, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16.7%, and underlying net profit went up 28.7%. Seeing the profit levels rise (noticeably) faster than revenue is a good sign for future profit scaling of the business.

KFC Australia saw a same-store sales (SSS) growth of 6.6% in HY24, while KFC Europe’s SSS growth was 8.8%. That’s a solid organic growth rate without taking into account any new stores.

Collins Foods opened four new KFC locations in Australia in HY24 and eight in the Netherlands. I think Europe’s large population gives the company a long growth runway.

In terms of the dividend, the annual payout has increased every year over the past decade. The current grossed-up dividend yield is around 4.25%.

Motley Fool contributor Tristan Harrison owns shares of Collins Foods Ltd. 

iShares S&P 500 ETF

What it does: The IVV ETF is a low-cost, index-based ASX ETF that tracks the performance of the 500 largest United States companies comprising the S&P 500 Index (SP: .INX).

By Bronwyn Allen: I like the kind of stocks you can buy and hold forever for my superannuation fund. My super is a long-term savings vehicle for my retirement, so I want it full of boring yet reliable long-term growth stocks.

And it helps that the world’s most successful investor, Warren Buffett, has long recommended that no-fuss investors like me avoid individual stock picking and just consistently throw money into low-cost S&P 500 index funds instead.

He says: “Just keep buying. American business is going to do fine over time, so you know the investment universe is going to do very well.” Buying the IVV ETF means owning a slice of mega global companies like Microsoft, Apple, Nvidia, Amazon, Alphabet, and Meta Platforms.

The IVV ETF is also one of the 10 cheapest ETFs on the ASX with a management expense ratio (MER) of 0.04%, so it fits Buffett’s brief very well.

The iShares S&P 500 ETF share price is currently $52.61, up 29% over the past 12 months and it’s 91% higher over five years.

Motley Fool contributor Bronwyn Allen does not own units on the iShares S&P 500 ETF. 

Medibank Private Ltd

What it does: Medibank Private is Australia’s largest private health insurance provider in the country. More than 4 million people entrust their health coverage to Medibank or its more affordable Ahm label.

By Mitchell Lawler: Health insurance is an industry where size matters. The more members an insurer has, the greater its bargaining power to secure better arrangements with hospitals and other health-based organisations.

It’s a flywheel effect: More members lead to better prices, which in turn generates more members. Once that flywheel is spinning, competitors can struggle to keep pace.

Importantly, Medibank Private is a business that I see being as relevant in 30 years as it is today. That’s critical when it comes to holding compounding investments inside a superannuation fund.

The last thing anyone wants is a chunk of their retirement being vaporised in a business that goes bust. In my opinion, the odds of that happening to Medibank are minuscule.

Motley Fool contributor Mitchell Lawler does not own shares of Medibank Private Ltd.

Coles Group Ltd

What it does: Coles is the second-largest supermarket operator in Australia, with a huge network of stores around the country. Coles also owns the bottle shop chains Liquorland, Vintage Cellars, and First Choice.

By Sebastian Bowen: The qualities investors typically look for in shares to include in a superannuation fund are stability, certainty, and a reliable dividend. Coles arguably offers all three in spades.

Coles is a consumer staples stock, meaning it sells goods we all need, rather than necessarily want.

It’s hard to imagine a future where a decent chunk of the Australian population doesn’t visit Coles to buy food and drinks or stock up on household essentials. As long as there is a local Coles offering these goods at a relatively low cost, Australians will visit it on a regular basis.

This makes Coles’ earnings base highly defensive, which should help anyone with this company in a super fund sleep well at night.

Coles has also built up a very strong dividend track record since it was listed on the ASX back in late 2018. The company has yet to deliver a dividend cut and has increased its annual dividends every year since its ASX debut.

At recent pricing, investors can grab Coles shares with a fully franked dividend yield of more than 4%.

Motley Fool contributor Sebastian Bowen does not own shares of Coles Group Ltd.

Westpac Banking Corp

What it does: Established in 1817 as the Bank of New South Wales, Westpac provides a range of consumer, business, and institutional banking and wealth management services. It has operations throughout Australia, New Zealand, and the near Pacific region.

By Bernd Struben: I think Westpac shares deserve a place in most every superannuation portfolio.

The big four bank recently completed all 354 activities of its risk transformation plan, improving its risk governance. Westpac today is a simpler and stronger business than it was in recent years.

And I was pleasantly surprised by Westpac’s first-half results.

Despite an inflation-exacerbated 8% increase in half-year operating expenses to $5.40 billion, Westpac’s $3.51 billion net profit, excluding notable items, was down only 1% year-on-year. And with Australia’s economic growth forecast to rebound to 2.5% in 2025, the bank looks well placed to increase those profits.

Atop announcing a share-price-boosting additional $1 billion worth of on-market share buybacks, management also declared an interim dividend of 90 cents per share. Westpac shares now trade on a fully franked trailing yield of 5.5%.

The Westpac share price is up 26% in 12 months.

Motley Fool contributor Bernd Struben does not own shares of Westpac Banking Corp.

The post Top ASX shares to buy for your superannuation fund in May 2024 appeared first on The Motley Fool Australia.

More reading

• Here’s the Westpac dividend forecast through to 2027
• Here are 2 top ASX 200 shares I’d buy now for passive income
• It was huge week for ASX 200 bank shares. Here’s why
• If I’d put $5,000 in iShares S&P 500 ETF (IVV) at the start of 2024, here’s what I’d have now
• Which of these ASX 200 shares is the better bargain in May?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. 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 Coles Group. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Collins Foods, Meta Platforms, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to reliable passive income, Aussie investors have a large field of quality dividend stocks to choose from.

In narrowing the field down to just two, I’ve limited myself to S&P/ASX 200 Index (ASX: XJO) dividend stocks.

That’s because the bigger companies tend to have less volatile share price moves. And their dividend payouts tend to be more reliable than some of their smaller peers.

I’ve also drilled down to ASX 200 companies that pay fully franked dividends. This should see me holding onto more of my passive income at tax time. In the long term, those franking credits can make a particularly big difference in retirement.

And while two stocks aren’t enough to offer proper diversification, I do want to ensure that both ASX 200 shares I’d buy now for passive income operate in distinctly different markets.

Finally, I need to keep in mind that future yields may be higher or lower than past yields, depending on a range of company-specific and macroeconomic factors.

With that out of the way…

Two ASX 200 stocks for outsized passive income

The first company I’d buy now for passive income is ASX 200 mining stock Fortescue Metals Group Ltd (ASX: FMG).

Fortescue enjoyed a strong first half of FY 2024.

For the six months ending 31 December, the company reported a 41% year on year increase in net profit after tax (NPAT) to US$3.3 billion.

In light of the profit surge, management boosted the interim dividend by 44% from the prior year to $1.08 per share. Eligible investors will have received that payout on 27 March.

Fortescue also paid a final dividend of $1.00 per share on 28 September.

That brings the full year’s passive income payout from the ASX 200 miner to $2.08 per share.

At Friday’s closing price of $26.21 a share, this dividend gem trades on a fully franked trailing yield of 7.9%.

Which brings us to the second company I’d buy now for outsized passive income, ASX 200 bank share Westpac Banking Corp (ASX: WBC).

Westpac reported its half-year results this past week.

Despite the big four bank’s net profit before one-offs declining 8% year on year to $3.51 billion, management declared an interim dividend of 75 cents per share as well as a 15 cents per share special dividend, both fully franked.

At 90 cents per share, that’s up almost 29% from last year’s interim dividend. This is the kind of growth I like to see. It’s too late to snag that payout, but investors who owned shares at market close on Tuesday 7 May, can expect to be paid on 25 June.

Westpac shares also delivered a final dividend of 72 cents a share, paid on 19 December.

That brings the bank’s full-year passive income payout to $1.62 a share.

At Friday’s closing price of $26.66, Westpac shares trade on a fully franked trailing yield of 5.5%.

The post Here are 2 top ASX 200 shares I’d buy now for passive income appeared first on The Motley Fool Australia.

More reading

• It was huge week for ASX 200 bank shares. Here’s why
• Why Baby Bunting, JB Hi-Fi, Temple & Webster, and Westpac shares are falling today
• Why are Westpac shares slumping 5% on Thursday?
• 5 things to watch on the ASX 200 on Thursday
• Want the massive Westpac dividend? Here’s why you need to hurry

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.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Comet Ridge, Kingsgate, News Corp, and St Barbara shares are rising today
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here’s where the ASX 200 will finish the year: AMP
• 5 things to watch on the ASX 200 on Thursday

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 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.

It’s been a pleasant Friday for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares today. At the close of trading, the ASX 200 had gained 0.35% and was back above 7,740 points. But let’s talk about what went on with the ResMed Inc (ASX: RMD) share price.

Resmed shares performed slightly better than the broader market. The ASX 200 healthcare stock closed 0.43% higher at $32.34 after rising even higher this morning to $32.71 a share, a gain worth just over 1.5% at the time.

This green day for Resmed came despite some potentially difficult news for investors to digest.

According to a United States Securities and Investments Commission (SEC) filing, ResMed CEO Michael J. Farrell has just sold a significant chunk of shares.

Remember, Resmed is a dual-listed share and has a home both on the ASX and the New York Stock Exchange under the ticker ResMed Inc (NYSE: RMD). The company’s base is also in America, in the Californian city of San Diego.

This SEC filing shows that Farrell disposed of 14,683 Resmed shares on 7 May (US time) this week.

These sales were executed at an average share price of US$216.50. That means Farrell would have bagged a cool US$3,178,815, which is approximately $4.81 million in our local currency.

There was no explanation given for these Resmed share sales. However, the plot thickens when we examine another two transactions reported on the same day.

Why has the ResMed CEO been selling shares?

The filing also shows that Farrell acquired 14,683 shares on 7 May. So Farrell has apparently bought and then sold $4.81 million worth of Resmed shares on the same day.

Well, not quite. The acquisition price of these shares was listed as US$84.98 – a far cry from the US$216.50 selling price. This implies that these shares were converted from options that the CEO possessed.

It appears that Farrell’s options were exercised and converted into ordinary Resmed shares, which were promptly sold.

Should investors be worried?

Well, that’s up to them. All investors like to see their company’s management teams align themselves financially with investors as much as possible. That means owning as many shares as they can. When CEOs and other senior management figures sell out of said shares, it can cause some understandable consternation.

However, it must also be remembered that most managers tend to try to follow the rules of good wealth management, which most would agree includes at least somewhat diversifying one’s wealth. Unless you’re Warren Buffett, having most of your net worth tied up in one stock investment is rarely a good idea.

This might be a case of Farrell doing just that when it comes to Resmed shares. Perhaps the CEO has a large tax bill coming up or wants to buy a new house.

Before investors follow Farrell and sell out of their shares (which doesn’t appear to be happening anyway, judging by the recent share price performance), keep in mind that Farrell still owns a significant chunk of the company.

The SEC filing shows that the CEO retains 440,752 Resmed shares (presumably the NYSE-listed stock) even after this week’s sale. Those would have a value of US$95.57 million today.

The post Resmed share price higher despite CEO hitting sell on 14,683 shares appeared first on The Motley Fool Australia.

More reading

• Morgans names more of the best ASX 200 shares to buy in May
• Top brokers name 3 ASX shares to buy next week
• Bell Potter names the best ASX 200 stocks to buy in May
• Is the Resmed share price a buy before the ex-dividend day?
• Leading brokers name 3 ASX shares to buy today

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 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:

Neuren Pharmaceuticals Ltd (ASX: NEU)

According to a note out of Bell Potter, its analysts have retained their buy rating on this pharmaceutical company’s shares with a slightly trimmed price target of $26.50. This follows the release of an update on Daybue sales in the United States. While those sales were just short of guidance, this was driven by pre-flagged seasonality impacts. The good news is that FY 2024 guidance remains unchanged. In light of this, Bell Potter is expecting another standout year for Neuren. In addition, the broker is eagerly awaiting phase 2 clinical readouts from the company’s second drug candidate, NNZ-2591. It notes that Pitt Hopkins Phase 2 results are due in the current quarter, followed by Angelman results in the third quarter. The Neuren share price is trading at $19.00 on Friday.

REA Group Ltd (ASX: REA)

A note out of Morgan Stanley reveals that its analysts have reaffirmed their overweight rating and $210.00 price target on this property listings company’s shares. This follows the release of a quarterly update which revealed very strong sales and earnings growth from the realestate.com.au operator. The broker notes that REA Group slightly outperformed analyst expectations. It also significantly outperformed its closest rival, which is cementing its market leadership position further. This bodes well for the future and supports the broker’s forecast for further solid growth in the near term. The REA share price is fetching $187.43 this afternoon.

TechnologyOne Ltd (ASX: TNE)

Analysts at Goldman Sachs have retained their buy rating on this enterprise technology company’s shares with an improved price target of $18.10. The broker has been looking ahead to TechnologyOne’s half year results release later this month. It is expecting the company to report annual recurring revenue growth of 35%, which will be a touch ahead of consensus estimates. All in all, the broker believes the company is performing above expectations for ARR and earnings growth and that this is not being fully reflected in its valuation. As a result, Goldman believes that now would be a good time for investors to snap up its shares. The TechnologyOne share price is trading at $16.36 on Friday afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• Why Cettire, De Grey Mining, Life360, and Neuren shares are falling today
• Buy this ASX 200 tech stock now before it’s too late: Goldman Sachs
• Why this high-flying ASX 200 healthcare stock just crashed 11%
• Why is this ASX 200 stock avoiding the market selloff and pushing higher?
• Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today

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

It’s been a promising start to the month of May for the ANZ Group Holdings Ltd (ASX: ANZ) share price. This ASX 200 bank stock began this month at $28.16 a share. But today, those same shares are trading for $29.20 each. That’s up a healthy 1.41% today alone and means that ANZ shares have enjoyed a 3.6% rise since the end of April.

It appears investors have given their tick of approval to the half-year earnings report that ANZ delivered earlier this week.

As we covered at the time, these earnings revealed that ANZ suffered a 4% drop in statutory profits after tax to $3.41 billion for the six months to 31 March.

Cash profits also fell by 1%, down to $3.55 billion. However, the capital returns that ANZ announced seemed to give investors their biggest confidence boost.

ANZ revealed that its shareholders would enjoy the benefits of an additional $2 billion share buyback program going forward. The bank also declared an interim dividend of 83 cents per share, which was up 2.5% over last year’s interim dividend of 81 cents per share. This fresh dividend will only come partially franked at 65%.

ANZ wasn’t messing around, though. The ex-dividend cutoff date for this upcoming payout was set for less than one week later, on 13 May, to be precise. That’s next Monday.

Should you buy ANZ shares before next week’s ex-dividend cutoff?

This means that anyone who doesn’t already own ANZ shares but wants to enjoy this latest dividend has until the close of trading today to buy ANZ shares. Anyone who buys them from Monday onwards (or sells out before today’s closing bell) will miss out this time.

Eligible investors will then get the cash from this dividend (or the additional shares if the optional dividend reinvestment plan is utilised) on 1 July.

So those are the rules. But should investors buy ANZ before this dividend disappears forever?

Just to get this straight, there are no free lunches in the investing world. If you buy ANZ shares today as opposed to next Monday, you won’t get this dividend ‘for free’. Whenever a share goes ex-dividend, you can expect to see its shares fall by roughly the same value as what said dividend was worth.

This latest ANZ dividend is worth 83 cents per share. This effectively means that when ANZ opens on Monday, its share price will be approximately 83 cents lower than where it would have been without the ex-dividend factor.

So you can either buy ANZ shares at a higher price today and bag this dividend, or you can wait until they are cheaper on Monday, but don’t come with the rights to the dividend attached. It’s fairly close to a zero-sum game, and if any investors try to chase the arbitrage between the two, they will probably come out disappointed.

No free ASX lunches, even for bank stocks

For a long-term investor, it won’t make too much difference if you buy today or Monday. Your overall returns probably won’t differ by much at all.

So if you were already keen on buying ANZ shares for dividend income, you might want to seize your chance this Friday. But if you are just building out a position in ANZ as a long-term investment, don’t let this tricky situation throw you off your game.

At the current ANZ share price, this ASX 200 bank stock sports a dividend yield of 6.08%.

The post Should you buy ANZ shares before they trade ex-dividend next week? appeared first on The Motley Fool Australia.

More reading

• It was huge week for ASX 200 bank shares. Here’s why
• Where I’d invest $7,000 in ASX dividend stocks right now
• Analysts give their verdict on ANZ shares: Should you buy?
• Hunting for passive income? Here’s everything you need to know about the boosted ANZ dividend
• ANZ shares tumble despite $3.5b half-year profit

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 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has returned to form on Friday. In afternoon trade, the benchmark index is up 0.45% to 7,757.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Comet Ridge Ltd (ASX: COI)

The Comet Ridge share price is up over 5% to 20 cents. This morning, this energy explorer revealed that it has been awarded a $5 million grant from the Queensland Government to undertake a pilot test in Comet Ridge’s 100% held Mahalo East block. The company’s managing director, Tor McCaul, said: “Comet Ridge is very pleased to be the recipient of a Frontier Gas Exploration Grant, a further endorsement of the significant position that Comet Ridge has established in the Mahalo Gas Hub area within the Bowen Basin.”

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate Consolidated share price is up 10% to $1.74. This has been driven by the release of an update on the company’s Chatree gold mine in Thailand. That update reveals that Plant 1 at the gold mine has now been permitted to operate. This follows a successful inspection by the Department of Primary Industries and Mines. As a result, full commissioning of Plant 1 will commence immediately, followed by a ramp up to full operations.

News Corporation (ASX: NWS)

The News Corporation share price is up almost 4% to $38.72. This morning, analysts at Goldman Sachs responded positively to the media giant’s quarterly update. The broker said: “Earnings were largely in-line with our prior expectations (EBITDA +1% vs. GSe), with strength in Digital Real Estate, books and News Media offsetting a softer Dow Jones & Other.” In light of this, the broker has reiterated its buy rating with a $44.70 price target. This implies potential upside of over 15% for investors from current levels.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 12.5% to 27 cents. Investors have been buying this gold miner’s shares following the release of an update on its Simberi operation. St Barbara advised that its concept study supports 10+ years of production at Simberi. It estimates average annual gold production rising from 70,000 ounces to 75,000 ounces by FY 2027 and then to 230,000 ounces through to FY 2034. This will lead to total gold production of 2 million ounces. CEO Andrew Strelein said “We now have a road map we can pursue that can take us to increased, more profitable production at Simberi into the mid-2030s.”

The post Why Comet Ridge, Kingsgate, News Corp, and St Barbara shares are rising today appeared first on The Motley Fool Australia.

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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 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.

ASX mining stock Base Resources Ltd (ASX: BSE) has made shareholders very happy over the past month.

How happy?

Well, one month ago, you could have bought shares in the Australian-owned African mineral sands producer for 12 cents apiece.

Today, those same shares are trading for 26 cents, up 117%.

Investors who bought the ASX mining stock three weeks ago on 19 April, when Base Resources shares were trading for 11 cents, will be sitting even prettier. The stock is up 134% since then.

Here’s what’s been piquing investor interest.

What’s been sending the ASX mining stock through the roof?

The vast majority of the Base Resources share price gains were delivered on a single day.

On Monday, 22 April, the ASX mining stock closed the day up an eye-watering 123.8%.

Investors were snapping up shares after Base Resources reported it had entered into a binding scheme implementation deed with United States-based uranium and critical minerals producer Energy Fuels Inc. (TSE: EFR).

The deal would see Energy Fuels acquire all of Base Resources’ shares for an offer price of 30.2 cents per share, some 16% above current levels and a whopping 188% higher than the share price the day before the takeover offer announcement.

Absent a superior proposal, the ASX mining stock’s board unanimously recommended shareholders vote in favour of the acquisition.

Commenting on the potential benefits for its Toliara Project, Base Resources managing director Tim Carstens said:

The combined group will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world, but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition.

Carstens noted that the proposed transaction was “the culmination of 12 months of discussions between Base Resources and Energy Fuels”.

Base Resources quarterly update

The ASX mining stock gained another 2% on 30 April following the release of its quarterly update for the three months to 31 March.

Base Resources said the challenging market conditions over the past few quarters stabilised over the previous three months as demand improved and “some downstream re-stocking supported flat pricing across all products”.

Turning to the balance sheet, the company held cash of US$83 million and no debt at the end of the quarter.

As for the transaction with Energy Fuels, the ASX mining stock said its independent expert, PwC, has commenced work, as has the independent technical specialist, AMC Consultants.

The post How this ASX mining stock more than doubled investors’ money in 1 month appeared first on The Motley Fool Australia.

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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.