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Goodman Group (ASX: GMG) shares are a popular option for investors.

The ASX 200 stock features in countless portfolios across the country and it isn’t hard to see why.

What is Goodman?

Goodman Group is an integrated property group with operations and investments throughout Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas.

It is one of the largest listed specialist investment managers of industrial property and business space globally.

Management notes that Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

Well, the company has certainly delivered on the latter. Goodman shares have been incredible performers over the last decade.

During this time, the ASX 200 stock has delivered an average total return of 22% per annum.

To put that into context, a $10,000 investment in Goodman’s shares back in 2014 would now be worth almost $75,000.

Is it too late to buy this ASX 200 stock?

One analyst that remains very positive on Goodman is Niv Dagan from Peak Asset Management.

Peak Asset Management is a boutique investment management firm that is headquartered in Melbourne. It aims to provide private and institutional investors with access to Australia’s most attractive corporate opportunities. The company notes that each opportunity must pass its strict investment process.

According to The Bull, Peak Asset Management’s executive director, Niv Dagan, thinks the ASX 200 stock is a great long term option for investors. This is due to its stability and growth potential. He said:

Goodman is an integrated industrial property group. It reported $12.9 billion of development work in progress across 82 projects on March 31. The company’s solid earnings growth and robust financial health underpin its appeal. Given its global presence and consistent performance, Goodman is a promising candidate for a long-term investment, as it offers stability and growth potential.

Is anyone else bullish?

Analysts at Citi would likely agree with Peak’s positive view on Goodman.

That’s because earlier this month the broker put a buy rating and $40.00 price target on the ASX 200 stock.

Based on its current share price of $35.18, this implies potential upside of almost 14% for investors over the next 12 months. The broker believes Goodman is well-placed for growth thanks to its data centre and warehouse developments.

The post Buy this ASX 200 stock for ‘stability and growth potential’ appeared first on The Motley Fool Australia.

More reading

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• 3 high-quality ASX 200 shares to buy forever

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Over the past year, Coles Group Ltd (ASX: COL) shares haven’t done so well, dropping 6.5%. While this is better than its rival Woolworths Group (ASX: WOW), which is down 15%, Coles shares have underperformed the S&P/ASX 200 Index (ASX: XJO), which is up 9.3% during the same period.

However, Coles shares have performed better over the longer term. The stock has risen 28.9% over the past five years, outperforming the ASX 200 index by 12%.

Could Coles shares continue to outperform from here on?

Breaking down share price returns

Share returns are influenced by two main factors: earnings growth and valuation multiple growth.

When a company earns more money (earnings), it becomes more attractive to investors, which usually pushes its share price up. Additionally, if investors become more optimistic about the company’s future, they may be willing to pay more for its shares, increasing the price further. In simple terms, higher earnings and positive investor sentiment lead to better share returns.

For example, the current share price of Coles at $17.1 can be split into:

• FY24 earnings per share (EPS) estimate of 81 cents multiplied by a price-to-earnings (P/E) ratio of 21x
• FY25 EPS estimate of 84 cents multiplied by a P/E ratio of 20x

These two factors are based on market expectations, which are constantly updated depending on actual business results from Coles.

How fast can Coles earnings grow?

The earnings estimates by S&P Capital IQ appear to assume Coles’ EPS will increase at a compound annual growth rate (CAGR) of 6.7% over the next three years, as follows:

• 81 cents in FY24, implying a 3.4% growth over the previous year
• 84 cents in FY25, implying a 4.9% growth over the previous year
• 95 cents in FY26, implying a 12.5% growth over the previous year

The FY26 growth estimate of 12.5% is doubtful to me, but the economy may improve by then.

Considering Coles has consistently grown its same store growth between 2.5% and 5.8% over the past three years, the market consensus of high single-digit growth seems reasonable.

This means if the market is willing to keep applying 20x PE, then the Coles share price may increase by 6% to 7% as its earnings grow.

Valuation multiples

The next question is whether the current valuation multiple is fair. While there could be many different ways to look at it, I would use a simple approach here.

A P/E ratio of 20x means investors are paying $100 for an expected annual profit of $5. In other words, this means an earnings yield of 5%. This is different from a dividend yield because not 100% of the company’s earnings will be paid to shareholders.

Then, we can compare this to other alternatives. For example, would investors want a 5% earnings yield from Coles shares rather than putting their money in the bank earning lower interest rates? The answer may be yes, given the cash rate by the RBA is 4.25%.

Also, Coles is one of the two leading grocery chains in the country, providing investors with stable and predictable earnings outlook.

For these reasons, Coles’ PE ratios have rarely traded below 20x over the past 5 years.

So I would say the current PE levels are reasonable.

Can Coles shares outperform the index?

The ASX 200 index generated a total return of 7.6% over the last ten years, including a dividend yield of 4.7%.

As we reviewed earlier, we can estimate Coles shares could generate a total return of approximately 11% based on roughly 6% to 7% return from its earnings growth and by adding its dividend yield of 3.9%.

Based on this simple exercise, I would think there’s reasonably high chance that Coles shares could do better than the ASX 200 index.

The post Can Coles shares outperform the ASX 200 Index from here? appeared first on The Motley Fool Australia.

More reading

• 4 ASX income stocks for Aussie investors to buy now
• Buy Coles and these ASX 200 dividend stocks
• Mining, supermarkets, and property: 3 ASX 200 dividend stocks to buy
• Coles shares flat as Choice report says competitor Aldi cheapest
• 3 of the best ASX 200 blue chip shares to buy now

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

The artificial intelligence (AI) revolution has already helped spur big gains for the S&P/ASX 200 Index (ASX: XJO) tech stock we’ll look at below.

Indeed, if I were going to invest in just one ASX company and one United States-listed company to ride the surging global interest in generative AI and machine learning, they would be Nvidia Corporation (NASDAQ: NVDA) and ASX 200 tech stock Megaport Ltd (ASX: MP1).

Nvidia has tapped deep into the AI money flow with its generative AI chips. That’s helped spur a 212% rally in the Nvidia share price over the past 12 months. Atop the past few years of stellar performance, it gives the US-based company an eye-watering market cap of US$3.11 trillion (AU$4.69 trillion).

The Megaport share price has also been on a tear. Over the past year, shares in the ASX 200 tech stock have soared 71%. This gives Megaport a market cap of AU$1.88 billion.

Both stocks are major beneficiaries of the AI revolution, which really got underway with the introduction of OpenAI’s ChatGPT towards the end of 2022.

Less than two years later we see companies the world over racing to incorporate generative AI to streamline their operations.

While the long-term impacts on the labour market remain an unknown concern, AI appears poised to spur innovations in healthcare, manufacturing, finance and retail, to name a few.

But for businesses to make the most of it, they need to be able to connect easily.

Which brings us back to ASX 200 tech stock Megaport.

What’s happening with the ASX 200 tech stock?

Megaport is a network as a Service (NaaS) solutions provider offering “elastic interconnection services”.

In a nutshell, the company’s software layer provides users with an easy way to create and manage network connections. Through its network of more than 113 unique data centre operators, businesses can deploy private point-to-point connectivity between any of the locations on Megaport’s global network infrastructure.

Its customer connections to major cloud service providers include powerhouse companies like Microsoft Corp (NASDAQ: MSFT) and Google Cloud Platform, the domain of Alphabet Inc (NASDAQ: GOOG).

Among the ASX 200 tech stock’s strengths is its dedicated, founder-led management team.

As legendary investor Warren Buffett says, “A great manager is as important as a great business.”

Now Megaport’s founder, Bevan Slattery will exit his role as chairman of the board at the end of this week. Director Melinda Snowden will take the top spot.

But Slattery will continue to offer advice going forward.

“As founder, I am passionate about Megaport and its success, and I will always be available to the team to provide strategic advice and guidance,” he said last week (quoted by The Australian).

On the financial front

As for Megaport’s recent financial metrics, the AI revolution looks to be already helping drive growth.

At its last quarterly update, the ASX 200 tech stock reported a 30% year on year boost in revenue to $49.5 million.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) soared by 92% to $14 million.

And Megaport had a net cash position of $59.2 million, up from $45.8 million at the end of December.

The ASX 200 tech stock also upgraded its earnings guidance for the full financial year.

Megaport lifted its FY 2024 EBITDA to between $56 million and $58 million, up from the company’s prior guidance of $51 million to $57 million.

The post The AI money flow: Why you can’t afford to miss stocks like Nvidia and this rising ASX 200 tech stock appeared first on The Motley Fool Australia.

More reading

• Nvidia stock drops 6.5%, dragging artificial intelligence stocks lower
• Brainchip share price tumbles 40% in the past year. What’s next?
• It’s up 3,500%, but here’s why I’m still not buying Nvidia stock
• Want to buy Nvidia but don’t have a US share account? Buy these ETFs instead
• Thinking about buying Nvidia stock? Here’s why you might already own it

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Megaport, Microsoft, and Nvidia. 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 recommended Alphabet, Megaport, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the hottest commodities this year has been copper.

Due to a combination of supply risks and improving demand prospects for energy transition metals, the red metal has been soaring since the start of the year.

The good news for investors is that it may not be too late to gain exposure to copper, with one ASX mining stock still offering investors significant upside potential according to analysts.

Which ASX copper stock is a buy?

The company in question is Aeris Resources Ltd (ASX: AIS).

According to a note out of Bell Potter, it believes that a recent pullback has presented investors with a “second chance saloon” to pick up the ASX copper stock. It commented:

AIS has retreated ~36% from its recent share price high of $0.335/sh in late May 2024, correlating closely with the recent rally and pullback in the copper price. Company specific factors are always at play, but we highlighted (March 2024) AIS’ strong leverage to the copper price and, in our view, this has been the key driver of the movements in AIS’ share price.

Updating our sensitivity analysis for our latest commodity price forecasts and modelled assumptions shows AIS remains most sensitive to the copper price, with a ±5% move driving a ±25% swing in our valuation. AIS’ unhedged copper exposure is one of the key tenets of our investment thesis. We remain bullish on the outlook for copper and see the current pullback as an opportunity to gain exposure via AIS’ Australian operations.

30% upside

The note reveals that Bell Potter has reaffirmed its buy rating and 30 cents price target on the ASX copper miner.

Based on its current share price of 23 cents, this implies potential upside of 30% for investors over the next 12 months. It concludes:

There are no EPS changes in this report and our NPV-based valuation is unchanged. AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and demonstrates a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target. We retain our Buy recommendation.

Overall, this could be a good option for investors that are on the lookout for exposure to a booming side of the share market right now.

The post Meet the ASX copper stock that could rise 30% appeared first on The Motley Fool Australia.

More reading

• Buy this ASX 200 stock for ‘stability and growth potential’
• Can Coles shares outperform the ASX 200 Index from here?
• The AI money flow: Why you can’t afford to miss stocks like Nvidia and this rising ASX 200 tech stock
• 4 ASX income stocks for Aussie investors to buy now
• Nvidia stock drops 6.5%, dragging artificial intelligence stocks lower

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.

Deciding which ASX income stock to buy can be a gruelling process.

Luckily for income investors, analysts have done a lot of the hard work for you and picked out four they think are buys.

Here’s what they are saying about these dividend stock:

APA Group (ASX: APA)

The first ASX income stock to look at is APA Group. It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

Macquarie is a fan of the company and currently has an outperform rating and $9.40 price target on its shares.

As for income, the broker believes that APA Group’s long run of dividend increases will continue. The broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.39, this equates to 6.7% and 6.85% dividend yields, respectively.

Coles Group Ltd (ASX: COL)

Over at Morgans, its analysts think that income investors should be buying this supermarket giant’s shares.

The broker currently has an add rating and $18.95 price target on its shares.

In respect to dividends, it is expecting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $17.10, this implies yields of approximately 3.85% and 4%, respectively.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Morgans also thinks that Dalrymple Bay Infrastructure could be an ASX income stock to buy.

It is the long-term operator of the Dalrymple Bay Coal Terminal. This has been Queensland’s premier coal export facility since all the way back in 1983.

The broker currently has an add rating and $3.05 price target on its shares. As for income, the broker is forecasting dividends per share of 22 cents in FY 2024 and then 23 cents in FY 2025. Based on the latest Dalrymple Bay Infrastructure share price of $2.93, this will mean yields of 7.5% and 7.85%, respectively.

GDI Property Group Ltd (ASX: GDI)

Finally, the team at Bell Potter thinks that this property company could be an ASX income stock to buy.

Its analysts currently have a buy rating and 75 cents price target on its shares.

As well as plenty of upside, the broker believes GDI Property could provide investors with some big dividend yields in the coming years. It is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 60 cents, this implies dividend yields of 8.3% for the next three years.

The post 4 ASX income stocks for Aussie investors to buy now appeared first on The Motley Fool Australia.

More reading

• Can Coles shares outperform the ASX 200 Index from here?
• Buy Coles and these ASX 200 dividend stocks
• ASX passive income: Earn $1000/month
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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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The artificial intelligence (AI) trade took a turn for the worse on Monday as Nvidia (NASDAQ: NVDA) shares dropped as much as 6.5%, dragging the entire AI market with it.

Super Micro Computer (NASDAQ: SMCI) fell as much as 8.5%, and Taiwan Semiconductor Manufacturing (NYSE: TSM) was down 3.8% at its low today. The three AI stocks were down 4.9%, 7%, and 3.2%, respectively, at 11:30 a.m. ET. There isn’t any specific news about AI, but investors have a lot on their minds about the future demand for the chips driving AI today.

Nvidia insiders are selling in droves

On Friday, Nvidia insiders, including CEO Jensen Huang, announced massive stock sales beyond just tax sales related to stock options and warrants. Huang reported he sold 240,000 shares on the open market on Thursday and Friday, totaling $31.6 million for just those two days.

In June alone, Huang has already sold nearly $95 million of stock as he’s been touting the growth potential for AI long term. Numerous other executives have also reported large stock sales on the open market.

Insider sales can be an indication they are less bullish on a stock, which is why this is notable.

Is the bubble popping?

As impressive as AI demand has been, the valuations of Nvidia and Super Micro Computer in particular have hit crazy levels. You can see below that Nvidia’s price-to-earnings (P/E) multiple is still over 70 and its price-to-sales (P/S) multiple is 37.6. Super Micro Computer isn’t quite as expensive, but it’s still priced for perfection.

NVDA PE ratio data by YCharts.

Investors must consider how much growth is priced into AI stocks right now and what the likelihood is that they will live up to that potential. Very few AI companies make money, so the money flowing to chips could slow down if those that are developing AI models and tools don’t create business plans that make them sustainable in the long term.

Earnings come into focus

Investors are suddenly thinking about demand because we’re only a few weeks away from the start of earnings season for the second quarter of 2024. That’s when we’ll hear about end demand and margins for tech companies building AI products, including those buying the most Nvidia chips.

If demand is strong, stocks could go up, but investors are taking money off the table for fear there could be some disappointing signs. And with stocks priced to perfection, even the smallest crack in the AI growth story could send them tumbling.

It’s all up to Nvidia

Nvidia is the biggest name in AI, and its fortunes will drive Super Micro Computer and TSMC, which are suppliers to the company and beneficiaries from the overall growth in AI demand. If the market for Nvidia chips continues to grow, the other companies will have plenty of demand.

What I think the focus over the next month will be is the demand for AI products that companies have introduced and whether or not that will lead to more capital spending. If not, there could be a pullback in orders in the future, and that could put both revenue and margin projections into question.

These high valuations and lack of AI business models are why I’m avoiding AI stocks today. The risk is simply too high for the observable reward right now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Nvidia stock drops 6.5%, dragging artificial intelligence stocks lower appeared first on The Motley Fool Australia.

More reading

• Brainchip share price tumbles 40% in the past year. What’s next?
• It’s up 3,500%, but here’s why I’m still not buying Nvidia stock
• Want to buy Nvidia but don’t have a US share account? Buy these ETFs instead
• Thinking about buying Nvidia stock? Here’s why you might already own it
• Nvidia investors just got some bullish news

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia and Taiwan Semiconductor Manufacturing. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On the ASX, investors can normally expect dividend payments every six months from their dividend shares. This biannual income schedule is decidedly the norm on the Australian markets. ASX dividend stocks that pay out quarterly payments are rare, and stocks that dole out a paycheque every month are rarer still.

But that doesn’t mean they don’t exist.

One such example is Plato Income Maximiser (ASX: PL8). This listed investment company (LIC) specialises in paying out fat, fully franked dividends. And it does so every single month, with its shareholders getting a paycheque in the proverbial mailbox 12 times a year.

Plato Income Maximiser, like all LICs, manages a portfolio of underlying assets on behalf of its shareholders. In this case, those assets are a collection of diversified ASX dividend stocks, selected on their current and future income potential.

Some of the largest ASX dividend stock positions in Plato’s portfolio include ANZ Group Holdings Ltd (ASX: ANZ), BHP Group Ltd (ASX: BHP), Goodman Group (ASX: GMG) and Commonwealth Bank of Australia (ASX: CBA).

Some of Plato’s highest-yielding ASX dividend stocks include Woodside Energy Group Ltd (ASX: WDS), Ampol Ltd (ASX: ALD), Metcash Ltd (ASX: MTS) and Whitehaven Coal Ltd (ASX: WHC).

Over the past 12 months, Plato shareholders have enjoyed a monthly dividend worth 5.5 cents per share. Each of those 12 dividends came with full franking credits attached.

At the current Plato share price of $1.21, these payments give this ASX dividend stock a yield of 5.91%.

$100 a month in cash from this ASX dividend stock?

That means that if an income investor puts approximately $20,350 into Plato shares today, and the company at least maintains its dividend schedule, that investor can expect to enjoy around $100 in passive dividend income every month.

Of course, we should never assume that an ASX dividend stock will continue paying out the dividends it has in the past into the future. But Plato does have a fairly strong record when it comes to maintaining its dividend. Since it was first listed back in 2017, the only significant income cuts came in the COVID-ravaged years of 2020 and 2021.

Over 2022, 2023 and 2024 to date, Plato’s dividends have been remarkably consistent.

That’s in addition to some healthy overall returns from Plato shares. The ASX dividend stock tells us that, as of 31 May, its shareholders have enjoyed a total return (including share price gains, dividends, fees and franking credits) of 9.6% per annum since its 2017 inception. That compares to an average of 9.5% per annum from its ASX 200 benchmark over the same period.

The post This 6% ASX dividend stock can pay $100 cash every month appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares could be trading at an unwarranted discount right now.

That’s the view of analysts at Bell Potter, which are urging investors to snap up the telco giant’s shares.

What is the broker saying about Telstra’s shares?

According to a note from this morning, the broker has been busy updating its financial model to reflect recent developments. It explains:

We update our Telstra forecasts for the flagged restructuring costs of $200-250m across FY24 and FY25 due to the reduction of up to 2,800 staff. We assume the midpoint of the range and apply $100m in FY24 and $125m in FY25. Note there is no change in our underlying forecasts and our underlying EBITDA of $8.2bn and $8.6bn in FY24 and FY25 remain consistent with the guidance ranges of $8.2-8.3bn and $8.4- 8.7bn in each period.

Its analysts concede that these job cuts could be a sign that Telstra is finding it harder to reduce costs than it was expecting. They add:

Our overall view of the update last month was slightly net negative given the size of the job cuts suggests the $500m cost reduction target by FY25 is proving difficult and the turnaround in Enterprise is likely to be slow.

However, one thing that Bell Potter was happy with was the removal of Telstra’s inflation-linked price increases. It explains:

But the removal of annual CPI price rises for postpaid mobile price plans we did not view negatively – as it provides flexibility – and in our view does not indicate increased competition in mobile (as supported by the price rises by Optus in late May).

‘Excessive’ discount

In light of the above, the broker has reaffirmed its buy rating and trimmed its price target by 1% to $4.20.

Based on where Telstra shares currently trade, this implies potential upside of 16% for investors. In addition, 5%+ dividend yields are forecast each year through to FY 2026.

Bell Potter believes that the company’s shares are trading at an excessive discount to its large cap peers and expects this to change in time. Particularly given its attractive dividend yield. It concludes:

Telstra is trading on an FY25 PE ratio of 18.6x based on our underlying forecasts which is a 24% discount to the average 24.4x of the peers (ALL, COL, CSL, GMG, WES and WOW). We view some discount as appropriate but in our view this looks excessive, particularly given the forecast mid to high single digit EPS growth over the next few years, strong market position and the potential for some or all of InfraCo to be sold in the medium term. We also believe the forecast yield of c.5% is supportive of the share price which is higher than all of the peers.

The post Buy Telstra shares due to its ‘excessive’ discount appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
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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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are hunting for some generous dividend yields, then you may want to check out the three ASX dividend shares listed below.

That’s because analysts have named them as buys and are tipping them to provide income investors with above-average yields in the near term. Here’s what you can expect from them:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend share to buy. It is a market-leading leisure footwear retailer with a huge network of stores across countless brands. This includes HypeDC, Stylerunner, Platypus, and The Athlete’s Foot.

Bell Potter thinks income investors should be buying its shares. The broker has a buy rating and $2.50 price target on them. It believes Accent Group is well-positioned thanks to its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

Its analysts expect this to underpin fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.98, this represents dividend yields of 6.55% and 7.4%, respectively.

Inghams Group Ltd (ASX: ING)

Over at Morgans, its analysts think that Inghams could be an ASX dividend share to buy right now. It is Australia’s leading poultry producer and supplier.

The broker likes Ingham due to its market leadership position, favourable consumer eating trends, and valuation. In respect to the latter, its analysts have described Ingham’s shares as “undervalued” at current levels. The broker has an add rating and $4.40 price target on them.

As for income, Morgans is forecasting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.49, this equates to dividend yields of 6.3% and 6.6%, respectively.

Stockland Corporation Ltd (ASX: SGP)

A third ASX dividend share that could be a buy for income investors is Stockland. It is a leading residential developer.

Citi is a fan of the company and believes a recently announced land lease partnership with Invesco could support better returns on capital. In light of this, it has put a buy rating and $5.20 price target on its shares.

In respect to dividends, Citi is expecting Stockland to be in a position to pay dividends per share of 26.2 cents in FY 2024 and then 26.6 cents in FY 2025. Based on the current Stockland share price of $4.40, this will mean yields of ~6%, respectively.

The post 3 ASX dividend shares to buy with 6%+ yields appeared first on The Motley Fool Australia.

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• ASX passive income: Earn $1000/month
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have convincingly beaten the market in 2024 to date, with an increase of 14%, while the S&P/ASX 200 Index (ASX: XJO) has only gone up by 1%. Based on some forecasts, the company may also be able to look forward to a good FY25.

The owner of Bunnings, Kmart and Officeworks has managed to succeed in this inflationary environment this year so far. But, what’s next?

Let’s look at both what the company has said in recent times about its outlook and what analysts estimate could happen in the 2025 financial year.

Outlook for the divisional operations

The last update from Wesfarmers was the 2024 strategy briefing day. The ASX share said it’s “well positioned to deliver strong growth and returns over the long-term.”

The company said it has businesses with attractive growth opportunities, growing addressable markets, new product and service offerings, and network and population growth. Its retailers are well-positioned for demand growth from demographic changes, and they have opportunities for productivity and efficiency benefits.

Looking at Bunnings, the core profit generator and key division for Wesfarmers shares, the ASX share said the hardware business is focused on “driving sustainable earnings growth over the long term in both consumer and commercial segments and across in-store and online channels”. The ASX retail share revealed Bunnings’ value credentials are resonating with “increasingly value-conscious customers”.

Wesfarmers noted that population growth and housing demand remain “positive macroeconomic drivers” for Bunnings. It also said that it continues to “invest in new and expanded ranges, optimising space, supply chain and accelerating data and technology to improve the customer offer and maintain a low-cost model”.

With Kmart, Wesfarmers said progress on a consistent strategic agenda has allowed the discount retailer to continue growing its market share of customers’ wallets. The company said the strength of its “world-class Anko product development capability is a key competitive advantage.”

The company is working on growing Kmart’s addressable market in Australia by expanding into new categories and extending existing categories. Kmart is also looking to explore “new and profitable channels by expanding Anko into new markets globally through tailored business models.”

Officeworks is delivering profitable growth by “meeting the changing needs of customers as they work, learn, create and connect”. It is also working on offering a wider range, accelerating its growth with businesses, leveraging its data and loyalty programs, and expanding the store network. Officeworks is also working on productivity and efficiency improvements.

Finally, with the Wesfarmers chemical, energy and fertiliser (WesCEF) business, it’s investing to improve efficiency and progressing production capacity expansions to facilitate long-term growth. The company is working to secure competitively priced natural gas amid a forecast supply deficit.

WesCEF is advancing the Covalent lithium project. The refinery construction recently hit the 75% completion milestone, and the focus is shifting to commissioning activities. Lithium hydroxide production is expected in the first half of the 2025 calendar year.

Analyst forecasts for Wesfarmers shares

The broker UBS has forecast that Wesfarmers can generate $46.2 billion of revenue in FY25, up from the forecast of $44 billion in FY24.

UBS also predicts Wesfarmers can generate $2.77 billion of net profit after tax (NPAT) in FY25, up from $2.56 billion in FY24. This translates into potential earnings per share (EPS) of $2.70, putting the current Wesfarmers share price at 24x FY25’s estimated earnings.

The broker has suggested Wesfarmers could pay an annual dividend per share of $2.16 in FY24.

UBS has a price target of $66 on Wesfarmers shares, which implies a possible rise of 1% over the next 12 months.

The post Is the FY25 outlook compelling for Wesfarmers shares? appeared first on The Motley Fool Australia.

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