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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.1% to 7,822.3 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Monday despite a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% lower. In the United States, the Dow Jones was up 0.2%, the S&P 500 was 0.55% higher, and the Nasdaq rose 0.9%.

Oil prices soften

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices pulled back on Friday. According to Bloomberg, the WTI crude oil price was down 0.85% to US$83.16 a barrel and the Brent crude oil price was down 1% to US$86.54 a barrel. This couldn’t stop US crude oil from recording its fourth consecutive weekly gain thanks to an improving demand outlook.

Buy Suncorp shares

Goldman Sachs thinks that Suncorp Group Ltd (ASX: SUN) shares are in the buy zone. In response to its FY 2025 reinsurance program update, the broker has retained its buy rating on the insurance giant’s shares with an improved price target of $18.00. It said: “We have kept our underlying margin profile for SUN broadly unchanged but make small upgrades largely driven by higher NEP from lower reinsurance spend / non renewal of QS. This increases our PT to $18.”

Gold price charges higher

It could be a good start to the week for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the spot gold price was up 1.2% to US$2,397.7 an ounce. Interest rate cut optimism gave the gold price a boost.

Buy Boss Energy shares

Boss Energy Ltd (ASX: BOE) shares could be undervalued according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating on the uranium miner’s shares with a trimmed price target of $5.90. It commented: “We continue to see Honeymoon as a low-cost restart operation, which has the capacity to generate strong margins in the current pricing environment.”

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

More reading

• 10 ASX shares to buy in FY25
• Here’s how the ASX 200 market sectors stacked up last week
• These top 3 ASX 200 uranium shares went nuclear in FY24
• Will ASX gold shares again outshine the market in FY 2025?
• Best 5 ASX 200 energy shares for price growth in FY24

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 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.

Are you looking for some new additions to your portfolio in FY 2025? If you are, then read on.

That’s because listed below are 10 ASX shares that have been named as buys for the new financial year. They are as follows:

Boss Energy Ltd (ASX: BOE)

If you are looking for exposure to the booming uranium market, then Boss Energy could be the ASX share to do it with. Last month, Bell Potter put a buy rating and lofty $6.35 price target on its shares.

Capricorn Metals Ltd (ASX: CMM)

Bell Potter also thinks that this gold miner could be a great option for investors. This is because it “is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options.” The broker has a buy rating and $6.53 price target on its shares.

CSL Ltd (ASX: CSL)

One of Australia’s highest quality companies is arguably biotherapeutics giant CSL. After a reasonably underwhelming period, Macquarie thinks that the company is about to return to form. So much so, it is forecasting mid-teen earnings growth for the next five years. Macquarie has an outperform rating and $330.00 price target on the ASX share.

Life360 Inc (ASX: 360)

Looking for some tech sector exposure? Morgan Stanley thinks this location technology company’s shares could be in the buy zone. The broker has an overweight rating and $17.50 price target on them.

Lovisa Holdings Ltd (ASX: LOV)

This fashion jewellery retailer could be an ASX share to buy in FY 2025. A number of brokers are bullish on Lovisa due to its global expansion. For example, analysts at Bell Potter have a buy rating and $36.00 price target on its shares.

Lynas Rare Earths Ltd (ASX: LYC)

They say it’s best to buy ASX mining stocks at the bottom of the cycle. So, with rare earths prices at depressed levels, a number of analysts think now could be the time to pounce on this ASX share. One of those is Ord Minnett, which put a buy rating and $8.00 price target on its shares at the end of last month.

Qantas Airways Limited (ASX: QAN)

Goldman Sachs thinks this airline operator’s shares are so undervalued that it has them on its conviction list. The broker currently has a buy rating and $8.05 price target on the Flying Kangaroo’s shares.

Telstra Group Ltd (ASX: TLS)

UBS thinks that this telco giant could be a top ASX share to buy now. At the end of last month, the broker put a buy rating and $4.40 price target on its shares. It also expects fully franked dividend yields of 4.9%+ this year and next.

Woolworths Group Ltd (ASX: WOW)

Another ASX share that Goldman Sachs is very bullish on is Woolworths. It has the supermarket giant on its conviction list with a buy rating and $40.20 price target.

Xero Ltd (ASX: XRO)

Finally, another member of Goldman’s coveted conviction list is cloud accounting platform provider Xero. The broker has a buy rating and $180.00 price target on its shares. Its analysts “see Xero as very well-placed to take advantage of the digitisation of SMBs globally.”

The post 10 ASX shares to buy in FY25 appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Top brokers name 3 ASX shares to buy next week
• These top 3 ASX 200 uranium shares went nuclear in FY24
• Forget CBA and buy these ASX dividend stocks
• Best 5 ASX 200 energy shares for price growth in FY24

Motley Fool contributor James Mickleboro has positions in CSL, Life360, Lovisa, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, Life360, Lovisa, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Xero. The Motley Fool Australia has recommended CSL and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX energy stocks led the ASX 200 market sectors last week with an impressive 4.07% gain over the five trading days. ASX materials shares also did well, with the sector lifting 3.3%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) booked a 1.3% lift to finish the week at 7,822.3 points. However, only four of the 11 market sectors finished the week in the green.

Let’s review.

Energy shares led the ASX sectors last week

Among the major ASX 200 energy stocks, Santos Ltd (ASX: STO) outperformed with a 4.99% gain over the week to finish at $7.99 per share.

The stock was lifted by rumours that Saudi Aramco and Abu Dhabi National Oil Co were considering making takeover offers. Saudi Aramco debunked this on Friday.

Woodside Energy Group Ltd (ASX: WDS) shares gained 3.76% to finish at $29.26 on Friday. There was no news from Woodside last week but the stock has plenty of buy ratings from brokers right now.

Beach Energy Ltd (ASX: BPT) shares lifted 2.56% to $1.52 apiece.

These gains follow a lift in oil commodity prices last week. At the time of writing, Brent crude oil is up 2.6% for the week and trading at US$83.16 per barrel. WTI futures are up 2.7% at US$83.75 per barrel.

Trading Economics analysts say the uplift is due to falling crude oil inventories in the United States and signs of strong seasonal demand during the US summer.

Ampol Ltd (ASX: ALD) shares lifted 2.41% to $33.13 apiece. Viva Energy Group Ltd (ASX: VEA) lost 0.32% to close at $3.16 on Friday.

A 2.96% lift in Newcastle coal futures to US$136.50 per tonne led to some impressive gains among the ASX 200 coal shares last week.

Whitehaven Coal Ltd (ASX: WHC) flew 13.26% higher to close at $8.97 on Friday.

Yancoal Australia Ltd (ASX: YAL) lifted 9.24% to $7.33 per share. New Hope Corporation Ltd (ASX: NHC) shares lifted 1.01% to $5.02 apiece.

ASX 200 uranium stocks also had a good week after the commodity price lifted 2.51% to US$85.65 per pound.

Deep Yellow Limited (ASX: DYL) shares spiked 9.77% to $1.41 apiece by the close of trading on Friday.

The company announced the appointment of a coordinator to organise project financing for its flagship Tumas Project in Namibia last week.

Paladin Energy Ltd (ASX: PDN) shares rose 7.43% to $13.01.

Boss Energy Ltd (ASX: BOE) shares fell 2.18% to $3.82. Last week, the company announced it was ready to send its first shipment from its Honeymoon mine in South Australia to European nuclear utilities.

ASX 200 market sector snapshot

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

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Energy (ASX: XEJ)	4.07%
Materials (ASX: XMJ)	3.3%
A-REIT (ASX: XPJ)	1.45%
Consumer Discretionary (ASX: XDJ)	0.22%
Healthcare (ASX: XHJ)	(0.06%)
Consumer Staples (ASX: XSJ)	(0.07%)
Communication (ASX: XTJ)	(0.4%)
Financials (ASX: XFJ)	(0.53%)
Industrials (ASX: XNJ)	(0.59%)
Information Technology (ASX: XIJ)	(1.08%)
Utilities (ASX: XUJ)	(1.19%)

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

More reading

• 10 ASX shares to buy in FY25
• These top 3 ASX 200 uranium shares went nuclear in FY24
• Best 5 ASX 200 energy shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• What will it take for DroneShield shares to enter the ASX 200?

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. 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.

Late last month, we covered the latest dividend news from the VanEck Morningstar Wide Moat ETF (ASX: MOAT). MOAT’s investors would have been delighted with the announcement that this exchange-traded fund (ETF) intends to pay a dividend distribution of $9.73 per unit later this month.

Now the VanEck Wide Moat ETF only pays out one dividend distribution every year, unlike the biannual schedule that is the norm on the ASX. But even so, this latest dividend is a monster.

At market close on Friday, the MOAT unit price is sitting at $112.04, down 0.21%. At this pricing, this upcoming dividend distribution would result in a whopping dividend yield of 8.68%.

Now, this isn’t really a fair metric to use since the MOAT ETF already traded ex-dividend for this upcoming distribution on 1 July. But even if we use the closing share price of $124.47 (which is where MOAT units closed at on 30 June), we get a dividend yield of almost 8%. 7.82% to be precise.

This seems rather unusual at first glance. After all, the VanEck Wide Moat ETF isn’t some dividend-focused fund holding income heavyweight shares like Westpac Banking Corp (ASX: WBC) or Telstra Group Ltd (ASX: TLS).

It is a US-centric ETF that specialises in holding American companies with wide economic moats.

Sure, its holdings include a few dividend payers. You’ll currently find the likes of Pfizer, Campbell Soup, Altria and Starbucks in MOAT’s portfolio. But most of these shares don’t pay substantial dividends. At least by ASX standards. In fact, US stocks, in general, are famous for their low dividend income potential compared to other stock markets around the world.

So how did the MOAT ETF just pay out a near-8% dividend yield?

How does the Wide Moat ETF have such a massive ASX dividend?

Well, passing on the dividends of its underlying holdings is only one way that an ETF can fund a dividend distribution payment. The other way is by selling off shares in its portfolio and paying out the proceeds to investors.

The Wide Moat ETF is structured as an equal-weight ETF of sorts. This means that is it designed in such a way that all of MOAT’s holdings occupy the same weighting in the ETF. This is in contrast to most index funds. These funds usually give the larger shares in the portfolio a higher weighting.

Every time VanEck rebalances MOAT’s portfolio (typically every six months), it must sell off any shares that have appreciated since the last time the ETF was rebalanced, and thus grown above their allocated weighting in the fund’s portfolio.

Let’s assume that MOAT’s portfolio has had a successful six months. Which it has. In this scenario, we might find that a lot of portfolio pruning needs to be done to return its successful holdings to their required weighting.

Over the past six months, it appears that the VanEck Wide Moat ETF has experienced a significant increase in cash due to rebalancing. As a result, the ETF was able to use this surplus to fund a substantial dividend distribution.

But MOAT’s ASX investors shouldn’t get too comfortable with receiving such a large dividend paycheque. Sure, the VanEck Wide Moat ETF can make it rain when times are good. But if its holdings don’t perform too well going forward, those monstrous dividends will quickly dry up.

The post Does the VanEck Wide Moat ETF really have an 8% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Buy and hold these ASX ETFs for 10 years+
• Why it’s a big day for ASX ETFs
• Own the VanEck Wide Moat ETF? Get ready for a monster ASX dividend
• $20,000 invested in the ASX MOAT ETF 5 years ago is worth how much?
• 2 of my favourite ASX ETFs for Australian investors

Motley Fool contributor Sebastian Bowen has positions in Altria Group, Starbucks, Telstra Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pfizer and Starbucks. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended 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.

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:

CSL Ltd (ASX: CSL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $330.00 price target on this biotechnology company’s shares. Macquarie has been looking at the impact that the US dollar could have on CSL’s financial performance. Although the broker suspects that it could act as a drag on its earnings in the immediate term, it believes it will give its earnings a boost from FY 2026. In the meantime, Macquarie continues to forecast CSL delivering double digit earnings growth over the next five years. This is thanks largely to the strength of its key plasma therapies business. In light of this, its analysts think that the company’s shares are attractively price at current levels. The CSL share price ended the week at $299.75.

Guzman Y Gomez Ltd (ASX: GYG)

A note out of Morgans reveals that its analysts have initiated coverage on this Mexican food-focused quick service restaurant operator’s shares with an add rating and $30.80 price target. Morgans is feeling upbeat about Guzman Y Gomez despite its sky high valuation. This is due to its strong long term growth potential and operating leverage. The broker believes that the company can achieve its aspirational target of 1,000 restaurants in Australia in the future. This is based on the assumption that it opens 30-40 restaurants each year. The Guzman Y Gomez share price was fetching $27.75 at Friday’s close.

TechnologyOne Ltd (ASX: TNE)

Analysts at Goldman Sachs have reiterated their buy rating on this enterprise software provider’s shares with an improved price target of $19.70. According to the note, the broker believes that the company has a significant long term opportunity in the UK market. Its analysts estimate that the opportunity could be three times larger than in Australia in key sectors. And with TechnologyOne only currently having minimal penetration, it notes that this creates a significant long-term growth runway. Especially given its confidence that TechnologyOne could displace the market leader in the education market. In light of this and with its valuation looking attractive, the broker believes that now is the time to snap up this tech stock. The TechnologyOne share price ended the week at $18.29.

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

More reading

• Why I invested in Guzman Y Gomez (GYG) shares this week for the long-term
• GYG share price ends the week at $28. Is $62 in its future?
• Brokers name 3 ASX shares to buy now
• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Morgans names the best ASX stocks to buy in July

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

ASX 200 uranium shares continue to benefit from the world’s nuclear embrace as many countries work on figuring out their green energy mix for the future.

The United States and 20 other countries have announced plans to triple their nuclear power by 2050. More on that later. First, let’s check out these top-performing stocks.

These 3 ASX 200 uranium shares outperformed

Rising global demand for uranium pushed the commodity price higher in FY24. This supported ASX 200 uranium shares and kept their prices rising, even though they’d experienced a ramp-up in FY23.

Here are the three best-performing ASX uranium shares for capital growth in FY24, according to data from S & P Global Market Intelligence.

Deep Yellow Limited (ASX: DYL)

Deep Yellow was the best-performing uranium stock on the ASX 200 last financial year. The Deep Yellow share price soared by 77.5% in FY24. This followed a 26.8% share price gain in FY23.

The ASX 200 energy stock closed at $1.41 on Friday, down 0.71%.

Paladin Energy Ltd (ASX: PDN)

The second top-performing ASX 200 uranium stock in terms of share price growth was Paladin Energy. This is the biggest uranium company listed on the ASX. It has a market capitalisation of $3.93 billion.

The Paladin Energy share price rose 71% in FY24. This built on a 25.9% share price gain in FY23.

Paladin shares closed at $13.01 on Friday, down 1.21%.

Boss Energy Ltd (ASX: BOE)

Rounding out the top three ASX 200 uranium shares of FY24 is Boss Energy, up 33.2% over the 12 months. This capitalised on an impressive 75.2% share price gain in FY23.

Boss Energy shares finished the week at $3.85 apiece on Friday, down 5.41%.

What’s the latest news on nuclear energy?

According to Trading Economics, 58 nuclear reactors are currently being built, 22 of which are in China.

In May, United States President Joe Biden signed bipartisan legislation banning the importation of uranium products from Russia because of its invasion of Ukraine.

Russia has previously provided 35% of the country’s nuclear fuel imports, according to the US Department of Energy’s Office of Nuclear Energy.

Dr Michael Goff, Acting Assistant Secretary for the Office of Nuclear Energy, described the legislation as “marking a monumental shift for our civil nuclear energy sector”. 

Dr Goff said:

This ban is essential to strengthening our nation’s energy security and supports the development of uranium conversion and enrichment services right here in the United States that will result in thousands of new jobs for Americans across the country.

We’re restarting old reactors, building new ones, and working to deploy advanced reactors to help us meet our clean energy goals. 

Meantime in Australia, the debate over nuclear energy is raging.

The Coalition Federal Opposition is pushing a comprehensive nuclear energy plan that would see retired coal-fired power stations replaced with nuclear reactors owned by the government.

Meanwhile, the Labor Federal Government is pushing ahead with its renewables agenda.

The post These top 3 ASX 200 uranium shares went nuclear in FY24 appeared first on The Motley Fool Australia.

More reading

• Best 5 ASX 200 energy shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• What will it take for DroneShield shares to enter the ASX 200?
• The best ASX 200 share of each market sector in FY24
• Why Boss Energy, DroneShield, Jumbo, and Raiz shares are falling today

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

Do you own Liontown Resources Ltd (ASX: LTR) shares? If you do, you will no doubt be aware that it won’t be long until Liontown shifts from being a lithium developer to a lithium miner.

The company is aiming to commence production in a matter of weeks. This means it could soon be generating revenue and maybe even some earnings.

But just how profitable could Liontown be in the current environment of low lithium prices? Let’s see what Goldman Sachs is forecasting for the miner through to FY 2029.

Liontown earnings estimates

Firstly, it is worth noting that Goldman is among the most bearish brokers when it comes to lithium prices. So, its earnings estimates could prove short of the mark if prices improve quicker than it expects.

Though, conversely, it is equally worth noting that the broker has been among the most accurate predictors of lithium prices in recent times. So, these forecasts could end up being more precise than others.

Moving on. In FY 2025, Goldman is forecasting total spodumene production of 146kt. This is expected to underpin revenue of $143 million but an underlying loss of $162 million.

In FY 2026, total spodumene production is expected to increase to 439kt. Goldman believes this will lead to revenue of $585 million and a maiden profit of $19 million.

It will be onwards and upwards for the lithium miner from there. In FY 2027, Goldman expects spodumene production of 510kt, revenue of $794 million, and underlying earnings of $108 million.

After which, in FY 2028, the broker is forecasting spodumene production of 578kt, revenue of $985 million, and underlying earnings of $152 million.

Finally, in FY 2029, Goldman expects total spodumene production of 658kt. From this, the broker is forecasting Liontown to generate revenue of $1,326 million and underlying earnings of $330 million.

In summary, Goldman expects the following for underlying earnings:

• FY 2025 – $162 million loss
• FY 2026 – $19 million profit
• FY 2027 – $108 million profit
• FY 2028 – $152 million profit
• FY 2029 – $330 million profit

Should you buy Liontown shares?

Goldman thinks investors should keep their powder dry for the time being. It has a neutral rating and $1.15 price target on Liontown’s shares.

While this implies potential upside of 25% for investors, it still isn’t enough for Goldman to be more positive. Though, it concedes there could be significant value on offer here when risks reduce. It commented:

Though perceived funding risks are largely alleviated, and cost/ramp up risks appear increasingly priced in, we rate LTR a Neutral on: 1) Valuation, where LTR is trading at a modest discount to peers, though with significant potential valuation uplift from de-risking/valuation roll-forward and a high valuation sensitivity to our LT lithium pricing; 2) Ramp up/cost risks increasingly priced in; 3) Strong medium-term capacity outlook from large, high quality resource.

The post Here’s the earnings forecast to 2029 for Liontown shares appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares: Screaming bargains or falling knives?
• Why the Liontown share price could jump 25%+
• 5 things to watch on the ASX 200 on Thursday
• Which ASX lithium shares are financially primed to survive this rut?
• 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 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 ASX mining share Rio Tinto Ltd (ASX: RIO) saw plenty of volatility over the 12 months ending 30 June 2024. Rio Tinto shares rose by 3.75%, while the S&P/ASX 200 Index (ASX: XJO) increased by 7.8%.

With China’s changing economic conditions, investors have had to accept an uncertain outlook for Rio Tinto shares.

The ASX mining share produces a number of commodities, including iron ore, copper and aluminium. Iron ore usually generates the lion’s share of the company’s earnings.

Things may be looking up for the miner after the iron ore price jumped to US$113 per tonne from around US$106 per tonne a week ago.

According to Trading Economics, there are hopes that China will introduce more stimulus measures at the upcoming Third Plenum this month and announce plans for “comprehensively deepening reform and advancing Chinese modernization.” A rising iron ore price supports the Rio Tinto share price.

The website said weak US data could also spur a rate cut, boost global demand, and support commodity prices.

Rio Tinto’s financial calendar follows the calendar year, while it was the Australian tax year that just finished. Let’s remind ourselves what Rio Tinto has reported during 2024 and what the earnings outlook is for the business.

Recent events

In February 2024, the business reported its 2023 full-year result.

It reported that operating cash flow dropped 6% to US$15.16 billion and free cash flow declined 15% to US$7.66 billion. Net profit after tax (NPAT) declined 19% to US$10 billion. In addition, the company cut the ordinary dividend by 12% to US$4.35 per share.

In mid-April, the business reported its 2024 first-quarter production result. This showed Pilbara iron ore production of 77.9mt, down 2% year over year and 11% lower than the fourth quarter.

Its first-quarter mined copper production was up 7% year over year to 156kt. Aluminium production was up 5% year over year to 826kt.

Outlook on Rio Tinto shares

The miner is working on a number of projects which could help future earnings.

It’s ramping up underground copper production at the Oyu Tolgoi mine in Mongolia. Rio Tinto and its partners are building a mine and 600km of new rail at the Simandou mine in Guinea (Africa) to unlock “incredibly high-grade iron ore,” which will “unlock low-carbon steel making.”

Finally, the Rincon lithium project in Argentina has seen progress in developing a small battery-grade lithium carbonate plant, where production is expected to start by the end of the year.

According to the estimates by the broker UBS, in FY24 Rio Tinto is expected to generate US$52.3 billion of revenue, NPAT of US$12.1 billion and pay a dividend per share of US$4.48. The balance sheet is projected to be in a net debt position of US$1.5 billion at the end of FY24.

In FY25, UBS predicts that Rio Tinto could generate US$52.5 billion of revenue, net profit of US$12.3 billion and pay a dividend per share of US$4.56. The balance sheet is projected to be in a net cash position of US$574 million at the end of FY25.

The post Are Rio Tinto shares worth digging into amid the miner’s FY25 outlook? appeared first on The Motley Fool Australia.

More reading

• Guess which ASX All Ords stock just received another $18 million investment from Rio Tinto
• What is the outlook for ASX 200 dividend shares in FY25?
• Rio Tinto share price marching higher amid $426 million ‘industry-leading’ step
• What this expert predicts will be the best-performing ASX sectors in FY25
• Buy Rio Tinto and these ASX dividend shares in July

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

A new month is here, so what better time to consider making some new additions to your income portfolio.

Five ASX dividend shares that could be worth considering in July are listed below. Here’s what you need to know about them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share for income investors to consider buying is Aurizon. It transports more than 250 million tonnes of Australian commodities each year through its rail network.

Ord Minnett is bullish on the company and has an accumulate rating and $4.70 price target on the company’s shares.

As for income, it is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.60, this will mean dividend yields of 4.9% and 6.75%, respectively.

Centuria Industrial REIT (ASX: CIP)

Another ASX dividend share to look at is Centuria Industrial. It is Australia’s largest domestic pure play industrial property investment company.

UBS is a fan of the company and has a buy rating and $3.50 price target on its shares.

In respect to dividends, the broker is forecasting Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.04, this represents dividend yields of 5.25% in both years.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share to look at is Super Retail. It is the retail conglomerate behind the BCF, Supercheap Auto, Macpac, and Rebel store brands.

Goldman Sachs is positive on the company and has a buy rating and $17.80 price target on its shares.

As for income, Goldman expects fully franked dividends per share of 67 cents in FY 2024 and 73 cents in FY 2025. Based on its current share price of $13.70, this will mean yields of 4.9% and 5.3%, respectively.

Transurban Group (ASX: TCL)

Analysts at UBS think that Transurban could be an ASX dividend share to buy this month.

The broker currently has a buy rating and $14.80 price target on its shares.

Its analysts are forecasting dividends per share of 63 cents in FY 2024 and 66 cents in FY 2025. Based on the current Transurban share price of $12.38, this will mean yields of 5.1% and 5.3%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A fifth and final ASX dividend share that could be a buy is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Morgans is feeling bullish about the company and has an add rating and $6.50 price target on its shares.

As well as major upside, the broker believes Universal Store is well-placed to pay big dividends in the coming years. It expects 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 $4.82, this will mean yields of 5.4% and 6%, respectively.

The post 5 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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

With the 2024 financial year fading into the background and FY 2025 stretching ahead, we turn our focus to what investors might expect from ASX gold shares.

As you may be aware, FY 2024 was a banner year for most gold miners, thanks to the surging gold price.

The yellow metal is currently fetching US$2,361 per ounce. That’s up almost 23% from the US$1,925 that same ounce was trading for this time last year.

Bullion’s strong performance has offered some heady tailwinds for ASX gold shares. In fact, Ora Banda Mining Ltd (ASX: OBM) rocketed 162% in 12 months amid strong gold exploration results, leaving the 8.3% gains posted by the All Ordinaries Index (ASX: XAO) far behind.

The rising gold price has also helped boost the performance of the big S&P/ASX 200 Index (ASX: XJO) gold producers like Northern Star Resources Ltd (ASX: NST), Newmont Corp (ASX: NEM), Gold Road Resources Ltd (ASX: GOR) and Evolution Mining Ltd (ASX: EVN).

But that’s the financial year just past.

Now, what can investors expect from ASX gold shares in the year ahead?

Will ASX gold shares outshine again in FY 2025?

Before we dive in, there are obviously many company-specific factors that will impact each individual ASX gold share. Those include variables like the weather in their mining locations, production levels, cost management, and how they progress with exploration and new project development.

But the price they receive for the yellow metal they dig from the ground is one factor that will impact every ASX gold share.

As for what we can expect from the gold price, we defer to the World Gold Council (WGC).

In their mid-year outlook report, the WGC noted, “Gold has thus far benefitted from continued central bank buying, Asian investment flows, resilient consumer demand, and a steady drumbeat of geopolitical uncertainty.”

Looking ahead to FY 2025, ASX gold shares may face steady prices.

“Current market trends indicate a rangebound performance from its current levels during H2… The global economy, as well as gold, seem to be waiting for a catalyst,” the WGC said.

The report pointed out that more than 40% of global gold demand stems from consumers.

As such, “The sharp upward trend in the gold price has dampened demand in some markets such as India and China. But positive economic growth can counteract some of this effect.”

What could drive the gold price higher?

The World Gold Council indicated a number of catalysts that could send the gold price higher in FY 2025 and support further gains for ASX gold shares.

According to the report:

For gold, we believe the catalyst could come from falling rates in developed markets, that attract Western investment flows, as well as continued support from global investors looking to hedge bubbling risks amid a complacent equity market and persistent geopolitical tensions.

Gold, which pays no yield itself, tends to perform better in low or falling interest rate environments.

Western retail investors have also largely been missing from the gold rally to date, with gold ETFs witnessing outflows.

The WGC said this “suggests that, unlike previous periods when gold broke record highs, the market is still not saturated and could see another leg up”.

Atop setting interest rates, central bank demand also has an important impact on the gold price, and by connection ASX gold shares.

“We estimate that [central bank demand] contributed at least 10% to gold’s performance in 2023 and potentially around 5% so far this year,” the WGC said. “Questions as to whether demand from the official sector may lose momentum. But we still expect central bank demand to remain above trend this year.”

And, while we hope global tensions ease in FY 2025, ASX gold shares would likely get a lift if geopolitical risks heat up.

According to the WGC report:

Geopolitical risk is particularly difficult to predict and may come from where it’s least expected. What is true, however, is that gold reacts to geopolitics, adding 2.5% for every 100-points the Geopolitical Risk (GPR) Index moves up.

The post Will ASX gold shares again outshine the market in FY 2025? 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.