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Looking for some new additions to your income portfolio? If you are, then check out the ASX dividend shares in this article.

They have been named as buys and tipped to offer dividend yields of greater than 5%. Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The team at Morgans thinks income investors should be buying Dexus Industria. It is a property company with a focus on industrial warehouses.

The broker believes “DXI’s industrial portfolio remains robust with the outlook positive for rental growth.”

Its analysts expect this to support the payment of dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.84, this will mean dividend yields of 5.8% and 5.8%, respectively.

Morgans currently has an add rating and $3.18 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that has been given the thumbs up by analysts is IPH.

It is a global intellectual property (IP) services company with a network of member firms across 10 IP jurisdictions. Among its clients are Fortune Global 500 companies and other multinationals, public sector research organisations, small businesses, and professional services firms.

Analysts at Goldman Sachs are bullish on the company right now. They like the company due to its “defensive earnings, strong cash flow, M&A optionality and potential MtM FX upside.”

As for income, the broker is forecasting fully franked dividends of 34 cents per share in FY 2024 and then 37 cents per share in FY 2025. Based on the current IPH share price of $6.20, this represents yields of 5.5% and 6%, respectively.

Goldman has a buy rating and $8.70 price target on IPH’s shares.

Telstra Corporation Ltd (ASX: TLS)

Goldman Sachs also thinks that income investors should be snapping up Telstra’s shares this month.

The broker likes the telco giant due to its defensive earnings and positive growth outlook thanks to its mobile business.

Goldman Sachs believes this positions Telstra to pay fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.61, this equates to yields of 5% and 5.1%, respectively.

The broker also sees plenty of upside for investors from current levels. It has a buy rating and $4.25 price target on its shares.

The post 3 ASX dividend shares to buy with 5%+ yields appeared first on The Motley Fool Australia.

More reading

• Do Telstra shares have a strong outlook for FY25?
• 4 ASX 200 dividend giants to buy in July
• 3 ASX dividend stocks to buy with 5% to 7% yields
• Here are 3 ASX retirement shares to buy in July
• Buy Telstra and these ASX dividend stocks in July

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

Insurance Australia Group Ltd (ASX: IAG) shares had a mixed affair in FY 2024. For one, the stock has climbed more than 24% over the past year. But most of that return stemmed from investors buying IAG over the last six months.

From July to December 2023, the IAG shares traded between $5.50 and $6.00 apiece. But in January this year, the stock rebounded and now trades at around $7.08 apiece, as we can see in the chart below. That’s a more than 26% return.

While we can expect the insurer’s full-year results in the coming weeks, here’s a review of IAG shares in FY 2024 and what to expect for the coming 12 months of business.

Recent developments drive IAG shares higher

In FY 2024, investors increased the company’s valuation alongside the price appreciation of its stock.

After hitting a price-to-earnings ratio (P/E) low of 16 times in October last year, IAG now trades at a P/E of 23 times, an increase of 43.7%.

A large chunk of this growth occurred in the last month of trade.

IAG shares rallied to 52-week highs last week after it announced a $2.5 billion, five-year agreement with two of Berkshire Hathaway Inc (NYSE: BRK)’s subsidiaries for reinsurance protection.

Berkshire Hathaway is the investment vehicle of all-time investing great, Warren Buffett.

The five-year deal provides IAG with up to $680 million in additional protection per annum starting in FY 2025. It aims to cap IAG’s natural perils costs at $1.28 billion this financial year.

Management projects that this and other moves will contribute to an improved return on equity (ROE) target of 14%-15% per annum.

Dividends and buybacks – the two features of H1 FY 2024

In its results for the first half of FY24 in February, IAG advised its gross written premium (GWP) – a key metric in the industry – increased by 12.5% to $7.9 billion.

Insurance profit tallied $614 million, up from $350 million at the same time last year. The reported insurance margin improved by five percentage points to 13.7%.

Still, net profit after tax (NPAT) decreased to $407 million from $468 million.

Despite this, the company declared an interim dividend of 10 cents per share and announced an on-market share buyback of up to $200 million, equal to around 1.2% of the company’s market capitalisation at the time of writing.

Investors sold IAG shares heavily following its first-half results, pushing the insurer’s stock price below its 20-day moving average – a sign of short-term weakness – before it recovered to previous highs in March.

Regardless, IAG’s CEO expressed confidence in the company’s performance going forward, noting:

We are well-positioned to continue playing our critical role as an economic shock absorber for consumers and businesses in Australia and New Zealand.

FY 2025 outlook for IAG shares

Brokers currently have mixed views on IAG shares. Goldman Sachs has a neutral rating with a 12-month price target of $6.30, citing potential risks such as volume loss due to rate increases, persistent claims inflation, and competition.

However, it also acknowledges IAG’s strong rate cycle and capital flexibility. And, it increased its valuation on the company to 4.8 times net tangible assets (NTA), from the previous 4.5 times NTA.

Citi is more optimistic about the company, favouring IAG over Suncorp due to its cost-cutting opportunities and earnings growth. Meanwhile, CommSec data shows a moderate buy rating on IAG shares, with 2 buys against 5 hold ratings.

For FY25, IAG management expected “low double digits” GWP growth and a reported insurance margin of 13.5% to 15.5%.

The company’s performance in FY 2024 sets high expectations for the upcoming year, but time will tell if it hits these watermarks.

Foolish takeaway

IAG shares had a good finish to FY 2024. However, the experts remain mixed on the outlook for this year – even though management is positive. Past performance is also no guarantee of future results, so always remember to conduct your own due diligence.

In the last 12 months, IAG shares have outperformed the S&P/ASX 200 index (ASX: XJO) by around 17%.

The post Here’s a recap on IAG shares in FY24 – and their FY25 outlook appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares finishing FY24 on a 52-week high
• Why Delta Lithium, IAG, Mirvac, and Suncorp shares are climbing today
• IAG shares jump 7% after cutting a deal with Warren Buffett’s Berkshire
• Which ASX shares to buy if interest rates rise (and which to avoid)

Motley Fool contributor Zach Bristow 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 BHP Group Ltd (ASX: BHP) share price underperformed the benchmark in the financial year just past.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed out FY 2023 trading for $44.99. On Friday, the last trading day of FY 2024, shares ended the day changing hands for $42.68 apiece.

That saw the BHP share price down 5.1% over the 12 months, significantly trailing the 7.8% gains posted by the ASX 200 over this same period.

Now, this doesn’t include the (rounded) $2.35 in fully franked dividends BHP shares delivered over the year.

If we add those back in, the accumulated gains for the BHP share price work out to 0.1%.

Of course if we add dividends back in to the ASX 200 returns, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, gained 12.1% over this time.

Here’s what went right and what went wrong for BHP over the 2024 financial year.

Headwinds and tailwinds for the BHP share price

Things were looking up for the BHP share price when the first half of FY 2024 wound down.

On 20 December, shares closed the day at $50.72, 16% above current levels.

Now, as you may be aware, iron ore counts as BHP’s biggest revenue earner with copper coming in at number two.

A look at how these industrial metals performed gives us some valuable insight into the two distinctly different half years the miners faced.

Iron ore kicked off FY 2023 trading for around US$110 a tonne. On 3 January, the steel-making metal topped US$144 a tonne, helping drive the big surge in the BHP share price.

But amid ongoing weakness in China’s property and industrial sectors, the iron ore price dropped to US$100 a tonne in early April and is currently trading for US$106 a tonne.

Copper has been more resilient. The copper price stood at US$8,315 a tonne at the beginning of FY 2024 before hitting near-record highs of US$10,890 in late May. But the copper price, too, has retraced since then, currently fetching US$9,600 a tonne.

Overall this saw the miner performing quite well in the first half of the year.

For the six months to 31 December, BHP reported a 6% year on year increase in revenue to US$27.2 billion.

And underlying profit was flat at US$6.6 billion. Though that did not include two massive exceptional items. Namely its US$2.5 billion impairment of Western Australia Nickel and a US$3.2 billion cost related to the Samarco tailings dam failure in Brazil.

The Anglo American takeover saga

At the end of the day, it’s hard to say whether the BHP share price was helped or hindered when the ASX 200 miner’s $74 billion takeover offer for global miner Anglo American (LSE: AAL) eventually fell through.

A successful acquisition would have seen BHP become the biggest copper producer on the planet. Though this would have required a big cash splash and some tricky South African asset divestments from Anglo.

Atop Anglo American’s copper assets, BHP would also have acquired its Queensland coal assets, including the Grosvenor mine.

Though not taking ownership of Anglo’s Grosvenor coal mine may be a mixed blessing. Over the weekend, an underground fire forced the closure of the coking coal mine, which is likely to remain shuttered for at least several months.

On the first day of FY 2025, the BHP share price finished trading at $43.30, up 1.45%.

The post What went right and what went wrong for the BHP share price in FY 2024? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 coal shares smashing the market today?
• What this expert predicts will be the best-performing ASX sectors in FY25
• Retirement planning guide: 710,000 Aussies to retire over next 5 years
• Why did the BHP share price go backwards in June?
• 4 ASX 200 dividend giants to buy in July

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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell 0.2% to 7,750.7 points.

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

ASX 200 expected to fall again

The Australian share market is expected to fall again on Tuesday despite a good start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% lower. On Wall Street, the Dow Jones was up 0.1%, the S&P 500 rose 0.3%, and the Nasdaq charged 0.8% higher.

Buy Xero shares

The Xero Ltd (ASX: XRO) share price could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its conviction buy rating with an improved price target of $180.00. This implies potential upside of 34% for investors from current levels. It said: “Following our June UK trip, attending Xerocon and meeting with accountants/competitors/experts, we are encouraged with the positive feedback (vs. our 2022 trip), in particular around its refreshed strategy and increased focus. [We] increase our 12m TP +10% to A$180 (36X EBITDA, from 33X) given increased confidence in the UK, a key growth market for Xero. Reiterate Buy (on CL). “

Oil prices race higher

It looks set to be a great session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices raced higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$83.44 a barrel and the Brent crude oil price is up 2% to US$86.72 a barrel. This was driven by optimism that summer fuel demand will tighten the market.

Hub24 named as a buy

Hub24 Ltd (ASX: HUB) shares are a buy according to analysts at Bell Potter. This morning, the broker has initiated coverage on the investment platform provider’s shares with a buy rating and $53.20 price target. It commented: “Our favourable investment view is supported by: (1) changes in advice, with investment professionals shifting away from institutionally owned platforms while seeking comprehensive technology solutions; (2) single digit market share and leading capital flows; and (3) increases to the super guarantee contribution and rollovers into self-managed super funds.”

Gold price edges higher

ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a reasonably good session on Tuesday after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.1% to US$2,342.1 an ounce. Traders were buying gold ahead of the release of US jobs data.

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

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• The best three ASX 200 shares to buy and hold in FY 2024 revealed
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares finishing FY24 on a 52-week high

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX gold stocks, on average, outperformed the benchmark in the financial year just past. That was helped by a 21% surge in the gold price over the 12 months, with the yellow metal currently fetching US$2,327 per ounce.

As for the gold miners, in FY 2024 the S&P/ASX All Ordinaries Gold Index (ASX: XGD) gained 11.2% compared to an 8.3% gain posted by the All Ordinaries Index (ASX: XAO).

While that’s some significant outperformance, it pales in comparison to the gains delivered by the top three performing ASX gold stocks over the financial year.

Which miners are we talking about?

Read on!

The top 3 ASX gold stocks of FY 2024

The third-best performing ASX gold stock in FY 2024 was Red 5 Ltd (ASX: RED).

Red 5 ended FY 2023 trading at 19 cents a share and closed on Friday trading for 36 cents a share for a very tidy 89% gain.

Atop a series of successful exploration results over the year, the Red 5 share price also enjoyed a 20.5% daily gain on 18 September.

That came as investors reacted to news that someone had bought almost 11% of Red 5’s shares in a single block trade for 26 cents a share. That represented a premium of 18.2% to the share price on the day. Though, as we know now, Red 5 was poised to keep running higher.

The miner also caught some tailwinds from its own success. This saw it added to the ASX 200 on 18 March as part of the S&P/ASX Indices quarterly rebalance.

Moving on to the second-best performing ASX gold stock in FY 2024, we have FireFly Metals Ltd (ASX: FFM).

FireFly shares closed FY 2023 trading at $5.40 and ended the 2024 financial year trading at 75 cents.

Wait. What?

Oh, right. The ASX gold stock underwent a 15 to 1 share consolidation in early December.

That means we need to compare $5.40 a share to $11.25 a share (15 x $0.75). Meaning the FireFly share price soared 108% over the 12 months.

As you’d expect, a lot went right for the miner, including a successful $52 million capital raise in March that will enable the company to accelerate its resource growth.

The surging share price also saw FireFly added to the All Ords on 28 March as part of the same S&P/ASX Indices quarterly rebalance that saw Red 5 added to the ASX 200.

Most recently, the FireFly Metals share price closed up 13.7% on 19 June when the miner reported on high-grade copper and gold assays from the drilling campaign at its Green Bay Copper-Gold Project, located in Canada.

Gold star performer

Which brings us to the top-performing ASX gold stock in FY 2024, Ora Banda Mining Ltd (ASX: OBM).

The Ora Banda share price was on a solid uptrend for most of the year. Shares finished out FY 2023 trading at 13 cents and closed on Friday changing hands for 34 cents apiece, up a whopping 162%.

The miner enjoyed tailwinds from strategic asset sales, ongoing promising exploration results, and a $30 million capital raise to advance its Sand King underground mining works.

Investors were also enthusiastic about the ASX gold stock’s multi-million-dollar farm-in agreement with Wesfarmers Ltd‘s (ASX: WES) Davyston Exploration, covering the non-gold mineral rights at its Davyhurst Project.

The post How these three ASX gold stocks soared above the rest in FY 2024 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why DroneShield, Paladin Energy, Red 5, and Synlait shares are falling
• Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today
• 2 ASX mining shares rocketing over 16% on big news
• These four ASX All Ords shares just earned hefty broker upgrades. Here’s why

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

Legendary investor Warren Buffett has a keen eye for buying quality businesses at a good price.

Known as the Oracle from Omaha, Buffett is one of the world’s greatest investors, in my opinion. He has built his company, Berkshire Hathaway, into one of the biggest global investment businesses, with long-term investments including Coca-Cola, American Express, Apple, Moody’s and Bank of America.

Commonwealth Bank of Australia (ASX: CBA) shares are often described by analysts as the highest-quality company in the Australian banking sector.

The CBA share price has been a strong performer for shareholders over the past year, with an increase of around 25%. After such a large rise, would Warren Buffett be interested in the ASX bank share?

Reasons why the Aussie bank could make it onto Buffett’s watchlist

Bank of America is one of the larger positions in Buffett’s Berkshire Hathaway portfolio. The giant US investment business also has positions in Capital One and Citigroup. So clearly, Buffett has shown his willingness to invest in banks.

These big banks have shown their ability to grow earnings over the long term thanks to the growth of the US economy. Meanwhile, CBA has grown its earnings over the long term with the growth of the Australian economy and population.

Some (US) banks trade on relatively low price/earnings (P/E) ratios and can offer decent dividend yields.

CBA is viewed as one of the highest-quality banks in the world. It has a relatively high return on equity (ROE), a nice balance between relatively low arrears and a good net interest margin (NIM), and a fairly stable dividend.

Buffett typically likes to invest in the best industry operator because they may be able to win and retain more customers and deliver better returns than competitors. As he once said:

It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.

Is the CBA share price at a fair price?

While Buffett likes investing in great businesses, he won’t necessarily buy a business at any price. He once said:

Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.

According to the independent estimates on Commsec, the CBA share price is valued at more than 22x FY25’s estimated earnings.

In comparison, JPMorgan shares are valued at 12x FY25’s estimated earnings and Bank of America shares are valued at under 12x FY25’s estimated earnings, according to Commsec. The CBA forward P/E ratio is not far off being double that of the large US banks.

I think Warren Buffett might say that CBA shares are too expensive for him, and he’d rather buy the shares of one of the large US banks.

The post Would Warren Buffett buy CBA shares today? appeared first on The Motley Fool Australia.

More reading

• Why did CBA shares jump 27% in FY24?
• These were the five best ASX bank shares to own in FY24
• Retirement planning guide: 710,000 Aussies to retire over next 5 years
• Want the latest Vanguard Australian Shares Index ETF dividend? Here’s what to do
• The CBA share price trounced the benchmark again in June! Here’s how

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.

ASX healthcare shares are set for growth in FY 2025, with several key players positioned to perform.

But first, winding back, it was an interesting period for the sector last financial year. The S&P/ASX 200 Health Care Index (ASX: XHJ) climbed over 5% into the green.

Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) increased around 7% in the same time, leading to a circa 2% underperformance by the sector.

With that in mind, let’s delve into what the experts are saying about three of the top ASX healthcare shares right now.

ASX healthcare majors worth noting in FY 2025

Analysts at Wilsons Advisory are bullish on healthcare. According to my colleague James, the firm says the outlook “is highly attractive” for ASX healthcare shares this year.

It says healthcare could “outperform over the medium-term”, with the combination of strong earnings growth, and below-market valuations.

Large-cap ASX healthcare stocks like CSL Ltd (ASX: CSL) are the giants of the healthcare sector. Despite a modest performance in FY 2024, experts are optimistic about the biotech giant’s prospects for FY 2025.

Macquarie analysts gave CSL an outperform rating in June with a 12-month share price target of $330, driven by strong earnings growth in its Behring business.

Sam Byrnes from ECP Asset Management also predicts CSL shares could reach $500 by 2027, highlighting the long-term growth potential of this biotech giant.

Furthermore, Wilsons noted that CSL’s earnings trajectory is considerably stronger than the broader market, potentially making its valuation attractive.

“Valuation-wise”, the firm said, “CSL is broadly in line with our ‘fair value’ range, balancing the fact that a) CSL trades on forward [price-to-earnings] of ~27x which is below its 5-year average, and b) CSL is somewhat ‘expensive’ relative to global biopharma peers.”

ResMed also in view

Analysts are bullish on ResMed Inc. (ASX: RMD)’s prospects in FY 2025. This is due to the ASX healthcare share’s market position in the sleep disorder treatment market.

Bell Potter rates ResMed a buy with a price target of $36.00, citing the massive under-penetration of the obstructive sleep apnoea (OSA) market as a major growth opportunity. This represents a 26% upside potential at current prices.

Wilsons’ analysts also highlight that ResMed’s shares trade at a sharp discount to historical multiples. Given that concerns over GLP-1 weight loss drugs are starting to ease, a re-rating could be on the horizon.

It noted, “We expect RMD’s valuation to re-rate higher as GLP-1 concerns progressively abate and the market shifts its focus to the strong fundamental outlook of the business.”

ECP Asset Management also found ResMed attractively valued despite the GLP-1 weight loss drug trend. This was supported by Swell Asset Management in June, who said “continues to thrive”.

CommSec data shows that many brokers seem to echo this sentiment, with 14 brokers rating it a buy against 10 holds and no sell ratings.

Sigma Healthcare deal could be a catalyst

Sigma Healthcare Ltd (ASX: SIG) is another ASX healthcare share in focus this year. It has seen its share price rally despite recent challenges.

Its proposed merger with Chemist Warehouse has been a hot topic, with the Australian Competition and Consumer Commission (ACCC) raising preliminary competition concerns.

The ACCC noted the competitive threat to independent pharmacies that might be caused by the merger, considering it a major structural change for the pharmacy sector.

The ASX healthcare share’s market presence is embellished by its diverse portfolio of low-cost pharmacies. These include names like Amcal+, Guardian, and PharmaSave. The merger – if successful, would create a pharmacy powerhouse in the Australian market.

Despite these regulatory hurdles, Sigma’s share price has climbed 56% in the past 12 months, demonstrating investor confidence.

The outcome of the ACCC’s review will be crucial for its performance in FY 2025, in my view. Analysts at UBS are cautiously optimistic, noting that while the merger could face challenges, the potential benefits for Sigma’s market reach and operational efficiencies could be substantial.

It appears the market agrees, given the change in share price.

Healthy view for ASX healthcare shares in FY 2025

The outlook for ASX healthcare shares in FY 2025 appears bright. Each of CSL ResMed and Sigma Healthcare are in focus for the sector.

Investors might want to keep a close eye on these companies as they navigate the new financial year. Remember always to conduct your own due diligence.

The post What’s the outlook for ASX healthcare shares in FY25? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in July 2024
• Which ASX shares to buy if interest rates rise (and which to avoid)
• Here are the top 10 ASX 200 shares today
• Should you pounce on ResMed shares at around $28?
• Will CSL shares rise in value over the next 12 months? Here’s what the experts say

Motley Fool contributor Zach Bristow 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 CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When planning for retirement, the first step is determining your expected expenses. While living costs vary based on lifestyle and location, where you live significantly impacts your spending.

In this article, let’s explore the average superannuation balances across various states in Australia.

Superannuation balances by state and gender

Recent data from the Australian Taxation Office (ATO) reveals intriguing patterns in superannuation balances across Australia. The ATO’s FY22 statistics, which are the latest set, show:

State / territory	Average male	Average female	Median male	Median female
ACT	235,460	207,959	86,264	80,018
VIC	189,380	150,543	64,883	52,527
NSW	187,389	151,848	64,267	52,623
WA	176,864	127,121	72,380	47,558
QLD	176,289	142,764	68,026	51,990
SA	175,864	147,269	69,778	58,995
TAS	166,372	136,294	66,643	54,891
NT	133,291	111,397	48,309	38,724

In the ACT, the average superannuation balance is the highest for both men and women, at $235,460 and $207,959, respectively, with median balances showing a similar trend.

Interestingly, the ACT has the lowest gender gap, with women’s super balances reaching approximately 90% of men’s. In other states and districts, the average super balances for women tend to be between 72% to 84% of their male counterparts.

As expected, New South Wales and Victoria boast higher average super balances, reflecting stronger wage growth and higher cost of living, particularly in Sydney and Melbourne.

Conversely, states like Tasmania and the Northern Territory tend to have lower averages, which can be attributed to lower average wages and employment rates.

Here’s a brief overview of each state and territory:

• Australian Capital Territory: Home to high-paying jobs in government agencies and academia, the ACT tops the list with the highest average super balances due to its higher salaries.
• New South Wales: NSW residents enjoy some of the highest super balances, reflecting Sydney’s robust employment sector and higher wages.
• Victoria: Similar to NSW, Victorians benefit from strong job markets, particularly in Melbourne, contributing to healthy super balances.
• Queensland: With a diverse economy, Queensland’s super balances are competitive, with areas like Brisbane leading the charge.
• Western Australia: Thanks to the mining boom, WA residents typically have higher super balances, though this depends on the fluctuation of the mining sector.
• South Australia: SA tends to have lower super balances, aligning with the state’s lower average incomes and employment opportunities.
• Tasmania: The island state, with its lower cost of living and wages, also sees lower average super balances.
• Northern Territory: Similarly, NT residents tend to have lower super balances due to lower living costs and salaries.

Steps to boost your superannuation

Superannuation is more than just a retirement fund. It is a long-term, tax-effective savings plan designed to provide Australians with a comfortable and secure retirement.

With the government now requiring employers to contribute 11.5% of your salary into your super fund, up from 11% in FY23, it’s vital to maximise these contributions to secure your financial future.

Regardless of your state, there are strategies to enhance your super balance:

1. Consolidate your super accounts: Multiple accounts mean multiple fees. Consolidating can save you hundreds of dollars.
2. Make personal contributions: If you can, making extra contributions will significantly impact your super balance over time.
3. Review your investment options: Ensure your super is invested in a way that aligns with your risk tolerance and retirement goals.
4. Keep an eye on fees: High fees can eat away at your super balance. Shop around and choose a fund that offers competitive fees and strong performance.

Knowing how superannuation balances vary across states can help you see where you stand and find ways to improve.

But, what’s more important is this. By taking simple steps to boost your super, you can work towards a secure and comfortable retirement, no matter where you live.

The post What’s the average superannuation balance based on where you live? appeared first on The Motley Fool Australia.

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ASX-listed exchange-traded funds (ETFs) can be effective investments for Aussies because of a number of characteristics.

We can gain exposure to many different geographies or investment themes, from share markets in Australia and the United States to other foreign markets, the global cybersecurity sector, the video gaming industry, and more.

Investors can mix and match ETFs in their portfolios to get the desired mix of assets. There are two factors I like the most about ASX ETFs, which I’ll discuss below.

Diversification

One of the most appealing aspects of ETFs is that they can provide a strong level of diversification, even within a single fund.

Buying an ETF with a ready-made portfolio can provide instant diversification, reducing the risk of having too much allocated (in percentage terms) to a single asset or business. Many exchange-traded funds provide good diversification at the sector level as well.

In contrast, if someone bought an investment property as their first investment, all of their money would be invested in one building in one location. And buying Commonwealth Bank of Australia (ASX: CBA) shares as a first investment would mean 100% of the portfolio would be invested in one company.

Some ASX-listed ETFs, like the Vanguard MSCI Index International Shares ETF (ASX: VGS) and the Vanguard US Total Market Shares Index ETF (ASX: VTS), are invested in at least 1,000 different businesses. That’s great diversification, in my opinion.

ETFs invested in hundreds (or perhaps just dozens) of businesses can also provide a very satisfactory level of diversification.

Automatically-adjusting portfolio

I think one of the most underrated positives about ASX ETFs is that their portfolios regularly change, usually when they adjust to match changes in the underlying index.

ETFs don’t just represent a fixed list of businesses, it’s a dynamic, changing list.

If we bought 100 different businesses and stuck with them, some may do well but others are likely to deteriorate over time. We don’t want to own rubbish businesses forever until they go bust – the ETFs will eventually divest those holdings once the businesses have slipped out of the S&P/ASX 200 Index (ASX: XJO) or whichever the relevant index is.

That changing portfolio ensures ASX ETFs can remain useful investments for the ultra long-term.

Think how much the US share market has changed – a few decades ago, the biggest businesses were names like Exxon Mobil, IBM, Walmart, Coca-Cola and General Electric.

While these businesses are still large, the US share market is now weighted to businesses like Microsoft, Nvidia, Apple, Alphabet, Amazon, and Meta Platforms. For many ordinary Aussies, I think it’s the adjusting portfolios that can make ASX ETFs such effective long-term investments.

The post 2 of the best reasons to buy ASX ETFs appeared first on The Motley Fool Australia.

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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. 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. 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 Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended International Business Machines and 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 recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.