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The ASX dividend stock Lovisa Holdings Ltd (ASX: LOV) could be an excellent long-term idea for dividends because of its willingness to pay out excess capital and deliver solid passive income.

Lovisa is a retailer of affordable jewellery for younger shoppers around the world.

It is becoming a true global retailer with its presence in so many countries.

Lovisa operates in Australia, New Zealand and Asia, including Singapore, Malaysia, Hong Kong, Taiwan, China, and Vietnam. It also has stores in the African countries of South Africa, Namibia and Botswana; the United Kingdom and Europe, as well as the UAE, the United States, Canada and Mexico.

The business also has franchise arrangements in the Middle East and African region, and in South America.

That global growth is helping fund larger dividend payments from the ASX dividend stock.

Strong store growth unlocking passive income

Due to the low cost of its products, Lovisa is able to open new stores fairly cheaply and quickly. In the FY24 first-half result, Lovisa revealed its global store network increased by 19% year over year to 854 locations.

The FY24 first-half result saw net profit after tax (NPAT) increase 12% to $53.5 million, and the dividend per share was hiked by 31% to 50 cents per share.

The Lovisa HY21 half-year dividend was 20 cents per share, compared to 13 cents per share in the HY18 result. Thus, the dividend has grown by 150% in three years and by 285% in six years.

I’m not expecting as much dividend growth in the next three years, but the payouts could continue to grow at a pleasing rate.

Dividend growth expected to continue

The broker UBS has forecast that the Lovisa annual dividend per share could be 75 cents in FY24 (up 8.7%) year over year, which would have a dividend yield of around 3%, including the franking credits.

UBS has predicted passive income growth for the ASX dividend stock in each of the subsequent financial years.

• In FY25, the annual dividend could increase another 12% to 84 cents per share.
• In FY26, it could rise 18% to 99 cents per share.
• In FY27, it may increase another 19% to $1.18 per share.
• In FY28, the annual payout could jump 14% to $1.35 per share.

If that FY28 payout happens, the Lovisa grossed-up dividend yield could be getting close to 5%.

It’s possible Lovisa may keep the dividend payout ratio at close to 100% of its net profit, in which case the FY28 grossed-up dividend yield could actually be something like 5.4%, based on the UBS projection for profit.

I’m optimistic about Lovisa’s growth prospects and the potential dividend payouts.

The post 1 ASX dividend stock to buy for growth and stay for a 5% yield appeared first on The Motley Fool Australia.

More reading

• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Up 78% in a year, is it too late to buy Lovisa shares?
• Here are the top 10 ASX 200 shares today
• What are the best ASX shares to buy with $500 in 2024?
• 5 top ASX growth shares to buy in June

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

It’s almost that time of year again – the moment of truth of whether it will be a bill or a refund from the Australian Taxation Office. Either way, passive income from shares can make tax season less of a burden.

In Australia, we have the added bonus of franking credits, a tax benefit not available to investors in most countries. Depending on the amount of franking and the person’s tax bracket, this situation can sometimes contribute to a tax refund – making ASX dividend-paying shares popular among retirees.

Even without the tax benefit, a little extra income from dividends can be handy if a bill arises.

We asked our Foolish writers which ASX passive income shares they think are worth snapping up before FY24 draws to a close.

Here is what the team came up with:

6 best ASX dividend stocks for June 2024 (smallest to largest)

• Collins Foods Ltd (ASX: CKF), $1.09 billion
• Deterra Royalties Ltd (ASX: DRR) $2.14 billion
• Super Retail Group Ltd (ASX: SUL), $3.13 billion
• Vanguard Australian Shares High Yield ETF (ASX: VHY), $3.74 billion
• Steadfast Group Ltd (ASX: SDF), $6.56 billion
• Woodside Energy Group Ltd (ASX: WDS), $52.33 billion

(Market capitalisations as of market close 21 June 2024).

Why our Foolish writers love these ASX passive income shares

Collins Foods Ltd

What it does: Collins Foods is a KFC franchisee operator in Australia, Germany, and the Netherlands. It also operates Taco Bell outlets in Australia.

By Tristan Harrison: When considering ASX passive income shares to buy, I like to see a stable dividend, growing profit, and a decent starting yield. On that basis, I think the Collins Foods share price looks very appealing right now after dropping by around 20% since the beginning of 2024 and also boosting its prospective dividend yield.

Collins Foods has grown its dividend every year since 2014, with the last two passive income payments amounting to 27.5 cents per share, compared to 11 cents per share paid during 2024 – that’s a rise of 150%.

The company is delivering profit growth via expanding its store network in Australia and Europe and delivering solid same-store sales (SSS) growth. In the FY24 first-half period, KFC Australia SSS growth was 6.6% and KFC Europe SSS growth was 8.8%.

Collins Foods’ continuing operations revenue rose 14.3% to $696.5 million, and underlying net profit after tax (NPAT) rose 28.7% to $31.2 million. This demonstrated good growth and rising profit margins.

According to Commsec estimates, the company is projected to pay a grossed-up dividend yield of 4.2% in FY24 and 5.7% in FY26. The company is valued at around 13x FY26’s estimated earnings. 

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

Deterra Royalties Ltd

What it does: Deterra Royalties doesn’t sell a product or service. Instead, this Perth-based company clips the ticket on mining operations where it holds a royalty. Its most material source of income is its 1.232% royalty on revenue from the Mining Area C (MAC) iron ore mine, owned by BHP Group Ltd (ASX: BHP).

By Mitchell Lawler: After last week’s changes, some investors might be dumping Deterra from the passive income pile. 

The company has updated its dividend policy, revising its payout ratio from 100% to “a minimum of 50%” for FY25 and onwards. Hence, the lucrative yield of 7.7% could soon be slashed to a more modest return. 

However, I see this as a major positive for long-term shareholders. The change should allow Deterra to redeploy some capital to acquire additional royalty assets, reducing the company’s reliance on the MAC royalty. 

Deterra is already taking steps in this direction with its recent acquisition of Trident Royalties, which adds 21 royalty and royalty-like offtake assets to its portfolio.

Motley Fool contributor Mitchell Lawler does not own shares of Deterra Royalties Ltd.

Super Retail Group Ltd

What it does: Super Retail is the company behind many of Australia’s most successful recreational retail chains. Its brands include Super Cheap Auto, Rebel, and BCF.

By Sebastian Bowen: If you’re after an investment with significant passive income potential in the dying days of the 2024 financial year, I think Super Retail shares should at least be on your shortlist. This company runs some of the best and most resilient retailing chains around.

Unlike most consumer discretionary companies, the likes of BCF and Super Cheap Auto are famous for their resilience to economic maladies like recession and inflation — a great attribute for an income stock.

I think Super Retail shares are looking attractive right now, too. Since February, this company’s stock has lost around 20% of its value. While this has been painful for existing investors, it has also boosted the Super Retail dividend yield to more than 5.5%. This company’s dividends typically come with full franking credits attached as well, so investors are looking at a grossed-up yield of almost 8%. 

For solid income, I think ASX investors could do a lot worse this June.

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

Vanguard Australian Shares High Yield ETF

What it does: The Vanguard Australian Shares High Yield exchange-traded fund (ETF) seeks to track the return of the FTSE Australia High Dividend Yield Index.

By James Mickleboro: I think the Vanguard Australian Shares High Yield ETF could be a great option for income investors this month. Especially those who are not fans of stock-picking.

That’s because this ETF eliminates the need for investors to pick stocks. Instead, it allows you to buy a collection of the highest-yielding ASX dividend shares in one fell swoop. This means you will be buying a slice of the big four banks, Australia’s large-cap miners, and a host of other dividend payers.

It is also important to note that the ETF operates with strict rules with respect to diversification. It limits the proportion invested into any one industry to 40% of the total ETF and 10% for any one company. This ensures you’re not overly exposed to any particular part of the market.

At present, the ETF trades with a dividend yield of 5.3%.

Motley Fool contributor James Mickleboro does not own units of the Vanguard Australian Shares High Yield ETF.

Steadfast Group Ltd

What it does: Steadfast is the largest general insurance brokerage firm in Australasia. It works with independent brokers and supports them with technology, market access, and other business tools. 

By Kate Lee: For those seeking a passive income stream, consistency in dividends is an important consideration. Steadfast boasts a long history of dividend growth, consistently raising its dividends over a decade.

The company’s strong earnings growth has supported this amazing dividend growth over time. Earnings-per-share (EPS) has risen from 7 cents in FY16 to 19 cps in the past 12 months to December 2023. 

I think now is an excellent time to buy this consistent performer as the Steadfast share price has been weak recently, falling about 8% from a year ago. After the drop, Steadfast shares are trading at 19x its FY25 earnings estimates, based on S&P Capital IQ, at a midpoint of its trading history.

Based on the share price of $5.93 at the close of trade on Friday, Steadfast offers a fully-franked dividend yield of 2.66%.

Motley Fool contributor Kate Lee does not own shares of Steadfast Group Ltd.

Woodside Energy Group Ltd

What it does: Woodside is Australia’s largest independent dedicated oil and gas producer. The company has a portfolio of high-quality assets in Australia, the Gulf of Mexico, the Caribbean, Senegal, and Timor-Leste. Woodside continues to actively explore new oil and gas deposits.

By Bernd Struben: With the Woodside share price down 22% over the past year, I think investors buying at current levels are likely to reap an outsized passive income stream for years to come.

Despite the ongoing shift to EVs and renewables, global oil demand is forecast to hit another record high this year. And more nations are embracing gas to provide reliable baseload power.

The ASX 200 energy stock recently caught some headwinds, with Q1 2024 production down 7% year on year. But Woodside maintained its full-year guidance of 185 million to 195 million barrels of oil equivalent.

Last week, the company also achieved a key milestone: pumping its first oil from the Sangomar field offshore of Senegal. The project’s nameplate capacity stands at 100,000 barrels per day.

And with Woodside’s offshore Scarborough LNG project on track for first production in 2026, the longer-term production outlook looks strong.

As for that passive income, Woodside shares trade on a fully franked trailing yield of 7.85%.

Motley Fool contributor Bernd Struben does not own shares of Woodside Energy Group Ltd.

The post Top ASX passive income shares to buy before June 30 appeared first on The Motley Fool Australia.

More reading

• Top 10 most traded ASX shares and US stocks in May
• ASX 200 energy shares smashing the benchmark amid national gas crisis
• 3 top ASX 200 stocks that could create lasting passive income into retirement
• Buy these top ASX 300 dividend stocks today for an income boost
• Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Steadfast Group and Super Retail Group. The Motley Fool Australia has recommended Collins Foods and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One exchange-traded fund (ETF) that is popular with Australian investors is VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT).

With almost $1 billion in net assets, a lot of wealth has been put into this fund.

In fact, that’s more than what is invested in Myer Holdings Ltd (ASX: MYR) and Kogan.com Ltd (ASX: KGN).

But has it been a good investment? Let’s take a look at what a $20,000 investment five years ago would be worth today.

What is the ASX MOAT ETF?

Firstly, let’s take a look at what exactly the VanEck Vectors Morningstar Wide Moat ETF provides investors.

The fund manager, VanEck, describes the ASX MOAT as an ETF that gives “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.”

It then notes that the “wide moat ETF aims to provide investment returns before fees and other costs which track the performance of the Index.”

How are the holdings selected?

As it mentions above, this ETF puts together a group of ~54 companies with sustainable competitive advantages that are trading at attractive prices.

These companies will change periodically depending on the status of their competitive advantages or valuation.

VanEck notes that at each quarterly review, current index constituents that are ranked within the top 150% of the eligible universe based on current market price/fair value ratio are given preference for inclusion in the fund.

And from the remaining eligible securities, those with the lowest current market price/fair value ratios are included in the index sector cap.

This has ultimately led to the likes of Google parent Alphabet Inc (NASDAQ: GOOG), automatic test equipment designer Teradyne Inc (NASDAQ: TER), online giant Amazon.com Inc (NASDAQ: AMZN), and Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.B) been included in the fund at present.

Big returns

The good news is that the ASX MOAT ETF’s investment focus on sustainable competitive advantages and fair valuations has delivered the goods for investors over the last five years.

In fact, over this period, the ETF has outperformed the market and delivered mouth-watering returns for investors.

Since this time in 2019, the ETF has achieved an average total return of approximately 16.4% per annum.

This means that if you had invested $20,000 into the ASX MOAT ETF five years ago, you would have compounded your way to almost $43,000 today. That’s more than double your original investment.

The post $20,000 invested in the ASX MOAT ETF 5 years ago is worth how much? appeared first on The Motley Fool Australia.

More reading

• 2 of my favourite ASX ETFs for Australian investors
• Why these strong ASX ETFs could be top long term picks
• 16% per annum: What is the VanEck Wide Moat ETF’s secret sauce?
• Looking for ASX growth shares? I rate these 2 as buys
• Which companies are in the VanEck Morningstar Wide Moat ETF (MOAT) portfolio?

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 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 Alphabet, Amazon, Berkshire Hathaway, and Kogan.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Teradyne. The Motley Fool Australia has recommended Alphabet, Amazon, Berkshire Hathaway, Kogan.com, 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.

ResMed CDI (ASX: RMD) shares are trading at $31.94 apiece on Friday, up 0.60% for the day and outpacing the ASX 200, which is up 0.17%.

ResMed stock is up 25.8% in the year to date but this includes a two-month lull over May and June so far.

During this period, the share price has been rangebound between about $31 and $33 per share.

This is well below the 12-month price target of several brokers.

So it begs the question, are ResMed shares a buy while they are stuck in the doldrums?

ResMed shares overcome last year’s panicked sell-off

As the chart above shows, ResMed shares were sold off in the second half of last year.

The sleep apnoea device maker lost market capitalisation mainly because investors started feeling nervous about the potential impact of GLP-1 drugs like Ozempic on demand for ResMed’s products.

They feared an impact because GLP-1 drugs are incredibly effective in treating obesity, and this disease is a common precursor to sleep apnoea.

That fear sent ResMed shares tumbling to a four-year low of $21.14 on 13 October.

But the stock has rebounded significantly after the company and many brokers educated investors.

The key messages included that sleep apnoea has many different causes — not just obesity.

Secondly, the total addressable market (TAM) remains enormous despite any impact GLP-1s might have on rates of obesity worldwide.

What ResMed told shares investors about GLP-1s

ResMed CEO Mick Farrell told investors last October that in-house modelling had quantified the impact of GLP-1s on ResMed’s TAM.

He said GLP-1s may cost the company 200 million people in terms of TAM. However, the total TAM for sleep apnoea worldwide would still be 1.2 billion by 2050 after taking GLP-1s into account.

At the time, 22.5 million people were using ResMed CPAP machines. Thus, Farrell successfully demonstrated the small proportionality of the GLP-1 risk to ResMed’s business.

Then in January, Farrell revealed further in-house research that found GLP-1s were actually bringing in more customers for ResMed.

The research showed a 10% increase in patients on GLP-1s buying sleep apnoea machines.

This is happening partly because the GLP-1 hype has encouraged people to see their doctor about their obesity for the first time. During these consultations, sleep apnoea has also been identified, leading to more people buying ResMed products.

Blackwattle Investment Partners reckon ResMed has actually “turned the GLP threat into an opportunity” by raising awareness of the combined healthcare benefits of GLP-1 drugs and CPAP products.

Brokers say it’s not too late to buy

Bell Potter has a buy rating on ResMed shares and a 12-month price target of $36. Citi has the same rating and price target. Macquarie has an outperform rating on the stock with a $34.85 price target.

Based on these targets, ResMed shares have room for 10% to 13% more share price growth.

Lachlan Hughes, a portfolio manager at Swell Asset Management, says ResMed has “decades of growth ahead as the penetration is low and it’s the number one player in its market”.

The post ResMed shares are in a two-month lull. Is this a chance to buy? appeared first on The Motley Fool Australia.

More reading

• Analysts say these strong ASX 200 blue chip shares are top buys today
• Buy the ASX 200 healthcare stock with ‘decades of growth ahead’
• 3 of the best ASX 200 blue chip shares to buy now
• 3 high-quality ASX 200 shares to buy forever
• 3 ASX 300 healthcare stocks ‘well positioned to outperform’

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

It has been another busy week for many of 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 right now:

REA Group Ltd (ASX: REA)

According to a note out of Citi, its analysts have upgraded this property company’s shares to a buy rating with an improved price target of $221.00. The broker highlights that the company has a dominant position in the largest real estate markets and is able to invest heavily in its products and technology. Citi expects the latter to help underpin strong earnings growth over the medium-to-long term. In addition, it sees potential upside from stronger than expected monetisation of seller and mortgage leads and margin support from its flexible cost base. Overall, the broker is expecting this to lead to earnings ahead of consensus estimates in FY 2025 and FY 2026. The REA Group share price is trading at $194.87 today.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating on this wine giant’s shares with an improved price target of $15.20. The broker was pleased with the company’s Penfolds update this week. And while it acknowledges that its FY 2025 Penfolds EBITS guidance was ~3.5% below consensus estimates, it believes investors should focus more on the medium term. It highlights that its ~15% CAGR in FY 2026 and FY 2027 EBITS excluding any price increases is strong. It also demonstrates management’s confidence in its execution despite the highly volatile consumer environment. All in all, the broker believes that the building blocks of its EBITS growth to FY 2027 is balanced and of high quality. The Treasury Wine share price is fetching $12.57 on Friday.

Woolworths Group Ltd (ASX: WOW)

Analysts at Morgan Stanley have upgraded this supermarket giant’s shares to an overweight rating with an improved price target of $37.00. This follows the release of the results of a major household survey which has made the broker more positive on the supermarket industry. It feels that the survey points to consumer trends that will result in better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the results point to Woolworths being the biggest winner from these trends. As a result, it has elevated the company to be its top industry pick. The Woolworths share price is trading at $33.63 this afternoon.

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

More reading

• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Guess which ASX 100 stock has ‘high quality’ earnings and could rise 22%
• 5 things to watch on the ASX 200 on Friday
• Treasury Wine share price tumbles on Penfolds China update
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and REA Group. The Motley Fool Australia has recommended REA Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Talga Group Ltd (ASX: TLG) shares are having a strong finish to the week.

In afternoon trade, the ASX mining stock is up 13.5% to 64.5 cents.

Why is this ASX mining stock surging?

Investors have been fighting to get hold of the battery materials and technology company’s shares following the release of a big announcement.

According to the release, Talga has entered into an earn-in agreement with lithium giant Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM). This agreement is for Talga’s Aero Lithium Project in Sweden.

Under the binding agreement, Talga has granted SQM the right to sole fund exploration expenditure of up to US$19 million over the next seven years. This will give the Chilean lithium miner the rights to earn up to a 70% ownership interest in the Aero project. This is subject to Swedish foreign direct investment clearance.

In addition, Talga will also be paid a management fee for each stage of the potential earn-in arrangement, and a success fee if a decision to mine on Aero is made. Talga retains all rights and obligations in relation to graphite minerals within Aero.

The release also notes that SQM has completed extensive due diligence on Aero. This includes site visits, so it clearly likes the look of the project.

And this may not be the only project that the two parties work together on. Under the agreement, they may agree to collaborate on potential new lithium areas and projects in Sweden.

‘Aero might be significant’

Talga’s managing director, Mark Thompson, notes that the project could be significant for the European market. He commented:

We are delighted to partner with SQM on our Aero lithium project in Sweden, which provides an important chance to build a European lithium supply for the green transition and EU localisation objectives. As one of the few potentially large-scale lithium hard rock opportunities in Europe, Aero might be significant to the region’s battery and electric vehicle industry.

This sentiment was echoed by the CEO of the SQM International Lithium division CEO, Mark Fones. He commented:

We are pleased to enter into this agreement, which represents our dedicated efforts to build a global and competitive lithium asset portfolio. Expanding into new and promising jurisdictions, such as Sweden, has been a strategic goal for us, and partnering with Talga, who has demonstrated expertise in the region, further enhances this achievement.

The post Guess which ASX mining stock is rocketing on deal with lithium giant SQM appeared first on The Motley Fool Australia.

More reading

• Why Botanix, Strike Energy, Talga, and West African Resources shares are pushing higher
• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today
• Why is this ASX 300 stock crashing 13% 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 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.

With just a few hours of trade left on Friday, the All Ordinaries Index (ASX: XAO) is up 0.6% for the week, with due thanks to three rocketing ASX All Ords stocks.

Which companies are we talking about?

I’m glad you asked!

Despite slipping today, the PYC Therapeutics Ltd (ASX: PYC) share price is up 18.2% since last Friday’s closing bell.

The Capitol Health Ltd (ASX: CAJ) share price has flown even higher, up 20.0% for the week.

And Pantoro Ltd (ASX: PNR) is also amply rewarding shareholders this week, with shares up 18.8% over the five trading days.

Here’s why investors have sent the ASX All Ords stocks flying higher.

What’s boosting these ASX All Ords stocks?

The last price-sensitive news out of PYC Therapeutics was back on 7 June.

At the time the clinical-stage biotechnology company reported on promising progress with its drug discovery program. That program is directed towards a severe neurodevelopmental disorder, Phelan McDermid Syndrome, which is caused by a loss of one functional copy of the SHANK3 gene.

Investor interest in the ASX All Ords stock was stirred when PYC Therapeutics said it had successfully restored the deficient protein and would now progress towards human trials, expected to start in 2025.

“This is a big step forward in this body of work. This is the data that the clinicians have been asking us to generate before we push into the clinic” PYC’s CEO Rohan Hockings said on the day.

Which brings us to the second ASX All Ords stock leading the charge this week, diagnostic imaging provider Capitol Health.

The Capitol Health share price gained 10.2% on Monday and another 9.3% on Tuesday after the company reported its board had accepted a takeover offer from Integral Diagnostics Ltd (ASX: IDX).

With the takeover offer representing a premium of some 33% to last Friday’s closing price, investors sent the stock soaring.

Commenting on the proposed acquisition, Capitol Health managing director Justin Walter said:

Today’s proposed merger announcement with Integral, represents an exciting opportunity for all our valued radiologists, technicians, and staff to be part of Australia’s largest pure-play publicly listed imaging company.

Ian Kadish, Integral CEO added, “The merger would create a scalable platform that would unlock significant value for stakeholders of both Integral and Capitol, including patients, doctors and shareholders.”

Which brings us to the third ASX All Ords stock shooting the lights out this week, Pantoro.

Shares in the Western Australian gold producer and explorer are marching higher for the fourth consecutive day today following the company’s growth announcement.

With a growth budget of $25 million, the miner said it could double the size of its exploratory drill campaign following initial drilling results. Management flagged 85,000 meters of combined diamond and reverse circulation (RC) drilling over four key targets in FY 2025 at the company’s Norseman project.

Commenting on the growth plan that put the ASX All Ords stock in the top gainers list this week, Pantoro managing director, Paul Cmrlec, said:

This is a very exciting period in the development of the Norseman goldfield. For the first time we are in a position to re-develop the Norseman Mainfield with an outstanding balance sheet position, and operations generating strong cashflow.

The post Why these three ASX All Ords stocks are leading the charge higher this week appeared first on The Motley Fool Australia.

More reading

• Why Chrysos, Hansen Technologies, Pantoro, and WA1 Resources shares are pushing higher
• Why Capitol Health, Infratil, Newmont, and Race Oncology shares are charging higher
• Why Capitol Health, Capricorn Metals, Credit Clear, and Telix shares are storming higher
• This ASX All Ords stock is rocketing 20% after accepting a takeover offer
• Why IDP Education, Novonix, PYC, and Regis Resources share are racing higher

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 recommended Integral Diagnostics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a reasonably positive finish to the week. In afternoon trade, the benchmark index is down 0.2% to 7,787.2 points.

Four ASX shares that are failing to follow the market higher today are listed below. Here’s why they are falling:

Guzman y Gomez (ASX: GYG)

The Guzman y Gomez share price is down almost 5% to $28.58. Investors appear to have been taking profit on Friday after a very strong first session yesterday following the quick service restaurant operator’s initial public offering (IPO). Excitement over its IPO led to Guzman y Gomez’s shares opening 36% higher than its $22.00 listing price on Thursday. This gave the Mexican food chain a $3 billion valuation and meant that its shares were trading on a crazy multiple of 500x estimated FY 2025 earnings.

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down 6.5% to 36.5 cents. This has been driven by the release of a disappointing trading update from the retailer this morning. KMD Brands revealed that its second half group sales were down 8.4% through to the end of May. This reflects a 5.9% decline in Rip Curl sales, an 8.4% drop in Kathmandu sales, and a 21.8% fall in Oboz sales. As a result, the company now expects underlying EBITDA to be approximately NZ$50 million for the full year. This will be down over 50% from NZ$105.9 million in FY 2023.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 6.5% to $56.11. This follows significant weakness in the lithium industry today after the battery making ingredient continued to fall. In addition, the mining and mining services company announced plans to close its Yilgarn Hub iron ore operation this week. Management notes that having carefully considered all options, an assessment confirmed that the continuity of the Yilgarn Hub is not financially viable beyond the end of 2024. It has made the decision to cease Yilgarn Hub iron ore shipments by 31 December.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 4% to $3.07. Investors have been selling the lithium miner’s shares following the release of the pre-feasibility study (PFS) for the expansion of production at the Pilgangoora Operation. Management revealed that its PFS determined that production capacity at Pilgangoora Operation could be expanded to more than 2 million tonnes per annum (Mtpa). This would come with an estimated capital expenditure of ~$1.2 billion. And while the study has a good NPV, it is based on long-term lithium price assumptions meaningfully above current levels and Goldman Sachs’ forecasts. Also, news of a potentially big increase in production is not necessarily good news when there are forecasts for a lithium surplus.

The post Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking appeared first on The Motley Fool Australia.

More reading

• Nuclear power, debt and burritos
• Top 10 most traded ASX shares and US stocks in May
• Guzman y Gomez share price implodes 10% on ASX trading day 2
• Why is this ASX All Ords share crashing deep into the red on Friday?
• Pilbara Minerals shares drop on major P2000 lithium expansion news

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.

I don’t need to tell you that social media can be an awful cesspit of mistruth, abuse and algorithmic manipulation. (Exhibit A: My name being used and my video being overdubbed in an attempt to scam people!)

But it can also be a great place to interact with people of good faith from right across the political and ideological spectrum.

As an example, I’d been wrestling with so many contradictory claims and counter-claims on Australia’s energy future (this was before the recent announcement by the Opposition Leader… I have no time for the politics of this!), and tweeted that I had come to a point where I thought that nuclear power might have to be part of the power mix, despite my misgivings.

And thanks to the good graces of my followers, climate activist (and Climate 200 political funding body convener) Simon Holmes à Court was tagged in a reply.

He told me why he thought I was wrong, and a conversation ensued… that ended up with Simon agreeing to be a guest on our podcast, The Good Oil. (It’s officially ‘The Good Oil with Scott Phillips’, because our podcast partners pointed out there were already a lot of pods called ‘The Good Oil’, but it always makes me cringe!).

And why am I telling you all this? Well, two reasons.

One, social media can be a pretty decent place for most (not all) of us if you cultivate a positive approach and some quality followers. 

Second, and more importantly in this context, we recorded that episode this week, and I reckon if you’re interested in the energy future of the country, you’ll get a lot out of having a listen to our conversation. I did!

You can find the episode here on Apple Podcasts, or just search ‘The Good Oil with Scott Phillips’ on your favourite podcast player.

—–

Speaking of public policy, the announcement this week was just the latest in a long list of the many and varied ways that our governments have found to spend taxpayers’ money.

Now, let me say that I’m very much in favour of government spending where there are goods or services (including safety nets) that aren’t adequately or better provided by the private sector.

But we heard this week that on top of the Federal Government debt heading to $1 trillion, the combined state debts are heading to $800 billion, with no signs of slowing down.

And that at a time when the RBA is trying to slow the economy!

It is, I hope you’ll agree, deeply irresponsible. And perhaps worse, none of the various oppositions in those parliaments are making any signs of wanting to hold the incumbents accountable, or to promise more fiscal responsibility, so there’s not much hope of change at the political level, whichever way the electoral winds blow.

No, I’m not really surprised. I do remember a time, though, when both sides of politics actually considered responsible Budget management an important part of governing in the national interest.

And if you’re wondering why it matters… we have to pay the interest on that debt; money that can’t be spent on other things. And the higher the debt goes, the riskier our balance sheet becomes, and the less we’re financially prepared to handle the next crisis.

Oh sure, we can just print money… but that’s kinda part of what got us into this inflationary mess. Actions, unfortunately, have consequences.

—–

The other money printing? That might just be the existing shareholders of burrito chain Guzman y Gomez (ASX: GYG), now an ASX-listed company, who’ve printed some very nice profits by taking the company public.

From an IPO price of $22 (50% higher than Morningstar publicly said it was worth), the shares closed at $30. That’s… a spicy burrito (sorry!) if ever there was one. How spicy? The company now has a market cap of $3 billion and a profit last year of $3 million.

I’ll save you the maths.. That’s a P/E of 1,000 times!

Now, investors are never buying last year’s profits – we’re looking forward and hoping to harvest future profits. The company is forecasting a decent lift next year, and has ambitious growth plans well past that.

This might be stating the obvious… but it’ll need to!

Can it get there? Maybe. I do love the company’s food, but I’m not sure this is a risk/reward worth chasing. It wouldn’t be the first company to blow away expectations… or the first one to leave investors feeling as flat as a tortilla!

Have a great weekend. 

Fool on!

The post Nuclear power, debt and burritos appeared first on The Motley Fool Australia.

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• Would I be crazy to buy Guzman y Gomez (GYG) shares at $30?
• Why Bigtincan, DroneShield, Guzman Y Gomez, and Helia shares are racing higher
• Who owns Guzman y Gomez shares?
• Guzman y Gomez shares rocket 36% on IPO day

Motley Fool contributor Scott Phillips 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.

BHP Group Ltd (ASX: BHP) and ANZ Group Holdings Ltd (ASX: ANZ) were the top two most traded ASX shares last month among investors using the SelfWealth trading platform to buy and sell stocks.

Among the 10 most traded shares were eight ASX 200 companies and two from the All Ords.

Let’s take a look.

Top 10 most traded ASX shares in May

Here are the top 10 most traded ASX shares in May, according to data from Selfwealth Ltd (ASX: SWF).

Rank	ASX shares	Percentage of buy orders
1	BHP Group Ltd (ASX: BHP)	57.6%
2	ANZ Group Holdings Ltd (ASX: ANZ)	53.3%
3	Fortescue Ltd (ASX: FMG)	54.6%
4	Woodside Energy Group Ltd (ASX: WDS)	67.7%
5	Telstra Group Ltd (ASX: TLS)	75.1%
6	Pilbara Minerals Ltd (ASX: PLS)	47.6%
7	Westpac Banking Corp (ASX: WBC)	47.8%
8	Vulcan Energy Resources Ltd (ASX: VUL)	54.5%
9	Woolworths Group Ltd (ASX: WDS)	75.4%
10	Mesoblast Ltd (ASX: MSB)	55.4%

As you can see, ASX consumer staples share Woolworths shares received the strongest buyer interest among the top 10 most traded shares in May.

Top broker Goldman Sachs has a conviction buy rating on Woolworths with a 12-month share price target of $39.40.

Based on the Woolworths share price of $33.70 on Friday, this implies a potential upside of 17% for investors in FY25 if they buy today.

Telstra shares had the second strongest buying activity during the month.

Goldman has a buy rating on the ASX telecommunications share with a $4.25 price target.

The Telstra share price is $3.66 at the time of writing. Goldman’s target, therefore, implies a potential upside of 16% in FY25 on this stock.

On Friday, the S&P/ASX 200 Index (ASX: XJO) is trading 0.21% higher at 7,785.8 points. Meantime, S&P/ASX All Ordinaries (ASX: XAO) shares are up 0.19% to 8,027.7 points.

Top 10 most traded US stocks in May

Here are the top 10 most traded US stocks in May among SelfWealth traders.

Rank	US stocks	Percentage of buy orders
1	GameStop Corp (NYSE: GME)	43.8%
2	Faraday Future Intelligent Electric Inc (NASDAQ: FFIE)	55%
3	Tesla Inc (NASDAQ: TSLA)	63.8%
4	NVIDIA Corp (NASDAQ: NVDA)	66%
5	Advanced Micro Devices, Inc. (NASDAQ: AMD)	59.6%
6	Apple Inc (NASDAQ: AAPL)	43.5%
7	Amazon.com Inc (NASDAQ: AMZN)	69.9%
8	Alphabet Inc Class A (NASDAQ: GOOGL)	66.1%
9	Microsoft Corp (NASDAQ: MSFT)	73.4%
10	Marathon Digital Holdings Inc (NASDAQ: MARA)	53.4%

Microsoft shares received the strongest buyer interest among the top 10 in May.

Microsoft is the biggest company in the United States, with a market capitalisation of $3.31 billion.

However, earlier this week Nvidia briefly overtook Microsoft when its market cap reached $3.34 billion.

Nvidia underwent a 10-for-1 stock split last week. It closed overnight at US$130.78 per share.

The post Top 10 most traded ASX shares and US stocks in May appeared first on The Motley Fool Australia.

More reading

• ASX 200 energy shares smashing the benchmark amid national gas crisis
• Pilbara Minerals shares drop on major P2000 lithium expansion news
• 3 top ASX 200 stocks that could create lasting passive income into retirement
• Buy these top ASX 300 dividend stocks today for an income boost
• Telstra shares: Buy or sell?

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 Bronwyn Allen has positions in Anz Group, BHP Group, Mesoblast, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, Goldman Sachs Group, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.