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The team at Morgans has been busy picking out its best ASX share ideas for June.

The first two ASX stocks we looked at can be found here. Read on for three more picks:

Clearview Wealth Ltd (ASX: CVW)

Morgans is positive on this financial services company and sees it as an ASX stock to buy in June.

The broker likes the company due to its large opportunity in the retail life insurance market, its business transformation program, and undemanding valuation. It commented:

CVW is a challenger brand in the Australian retail life insurance market (market size = ~A$10bn of in-force premiums). CVW sees its key points of differentiation as its: 1) reliable/trusted brand; 2) operational excellence (in product development, underwriting and claims management); and 3) diversified distributing network. CVW’s significant multiyear Business Transformation Program has, in our view, shown clear signs of driving improved growth and profitability in recent years. We expect further benefits to flow from this program in the near term, and we see CVW’s FY26 key business targets as achievable. With a robust balance sheet, and with our expectations for ~21% EPS CAGR over the next three years, we see CVW’s current ~11x FY25F PE multiple as undemanding.

Morgans has an add rating and 78 cents price target on its shares.

GUD Holdings Limited (ASX: GUD)

Another ASX stock that Morgans is bullish on is GUD. It is a diversified products company with a focus on the auto market.

The broker thinks GUD is a high quality company and sees its investment case as compelling. It explains:

GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD’s investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.

Its analysts have an add rating and $13.71 price target on its shares.

Stanmore Resources Ltd (ASX: SMR)

A final ASX stock that could be a buy according to Morgans is coal miner Stanmore Resources.

Its analysts believe that coal prices could trade significantly higher than expectations in the future and expect Stanmore Resources to benefit. They said:

SMR’s assets offer long-life cashflow leverage at solid margins to the resilient outlook for steelmaking coal prices. We’re strong believers that physical coal markets will see future cycles of “super-pricing” well above consensus expectations, supporting further periods of elevated cash flows and shareholder returns. We like SMR’s ability to pay sustainable dividends and its inventory of organic growth options into the medium term, with meaningful synergies, and which look under-recognised by the market. We see SMR as the default ASX-listed producer for pure met coal exposure. We maintain an Add and see compelling value with SMR trading at less than 0.8x P/NPV.

Morgans has an add rating and $4.20 price target on its shares.

The post Morgans names more of the best ASX stocks to buy in June appeared first on The Motley Fool Australia.

More reading

• Bell Potter says these ASX 200 shares are strong buys with 20%+ upside
• Here are the top 10 ASX 200 shares today
• Analysts name 2 ASX dividend shares to buy now

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.

By now, you’ve probably heard all about NVIDIA Corporation (NASDAQ: NVDA) stock and its prowess and future potential in artificial intelligence (AI). You’ve probably also caught wind of its mind-boggling stock price gains that its lucky investors have been enjoying.

To put some numbers on it, the Nvidia share price has gained an eye-watering 181.46% over 2024 to date alone (going off the stock price as of Wednesday night’s close).

Over the past 12 months, investors have netted a rise of 209.47%, which stretches to a monstrous 3,477% over the past five years.

These gains have even been enough to push Nvidia to claim the title of ‘world’s largest company’. Yes, just this week, Nvidia surpassed Microsoft to take that crown. At the time of writing, it commanded a jaw-dropping market capitalisation of US$3.34 trillion. For some context, that’s more than the size of the entire Australian economy. Nearly twice over, in fact.

So this is a stock that has no doubt changed the lives of more than a few investors. If you don’t already own shares and you’re a sucker for punishment, check out the graph below for a graphical representation of this company’s astonishing ascendancy:

With such a dramatic and usual rocketship-like trajectory, Nvidia stock is bound to give most of us at least some feelings of missing out. That’s if you don’t already own shares of course.

However, before you rush out and buy Nvidia, there’s something important to consider. Chances are you’re probably already an owner of Nvidia shares. In fact, most Australians can probably claim they own a small piece of this company, whether they know it or not.

How?

Why most Australians own a slice of Nvidia stock… even if they don’t know it

Well, Nvidia’s rise has had some auxiliary consequences. For one, it has pushed the allocation that many index funds and exchange-traded funds (ETFs) have to Nvidia stock. Because these funds give weighting to different companies based on market capitalisation, Nvidia’s rise means that any index fund that already included Nvidia needs to raise its allocation to this stock proportionately

To illustrate, buying a popular US-based ETF like the iShares S&P 500 ETF (ASX: IVV) today will mean that out of every dollar invested, 7.3 cents will go into Nvidia shares.

So any ASX investor who owns any ETF or index fund that holds international or US shares probably has exposure to Nvidia stock right now.

But so would most Australians with a superannuation fund. That is to say, the vast majority of the adult population in this country.

Most Australian workers have their super invested in what’s known as a ‘balanced’ fund. It’s called this because the fund aims to invest in a variety of asset classes in order to balance the maximisation of your financial returns with reducing fund volatility. These asset classes usually include ASX shares, infrastructure, cash, bonds, property, and international shares.

Chances are one of the international shares in your super fund’s portfolio will be Nvidia. Given that Nvidia has been one of the top ten shares in the US market by size for a few years now, it is highly likely that your super fund has a position in the company.

If your super fund has grown in value over the past 12 months, you can probably partly thank Nvidia for that too. This scenario just goes to show how beneficial superannuation can be for everyone in the country today.

Foolish takeaway

Watching a stock like Nvidia explode in value from the sidelines might be hard. But we should all take comfort from the fact that almost everyone is benefitting from its rise, even in an indirect and relatively modest manner.

The post Thinking about buying Nvidia stock? Here’s why you might already own it appeared first on The Motley Fool Australia.

More reading

• Nvidia investors just got some bullish news
• Is Nvidia stock going to $200 in the wake of its 10-for-1 stock split?
• Can anyone topple Nvidia as the king of artificial intelligence investments?
• We see patterns everywhere. That’s not always helpful.
• Nvidia shares reach world’s most valuable milestone. Where to now?

Motley Fool contributor Sebastian Bowen has positions in Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fancy grabbing a 917% one-year return from your ASX healthcare stock investment?

Me too!

The stock in question is clinical stage drug discovery and development company Dimerix Ltd (ASX: DXB)

As you can likely guess by the phenomenal share price growth, shown in the chart below, a lot’s been going right with the company’s drug development and discoveries.

Yep, just one year ago, you could have bought the ASX healthcare stock for 6.0 cents a share.

At market close on Thursday, shares finished trading up 9.91%, swapping hands for 61 cents apiece.

That’s enough to turn a $5,000 investment into a whopping $50,833 in just 12 months.

Take that inflation!

Here’s why investors have been sending the stock through the roof.

How has the ASX healthcare stock rocketed 858% in a year?

As mentioned up top, Dimerix has released numerous promising updates on its operations and product line over the year.

One of the biggest share price moving pieces of news was released on 5 October.

Investors sent the ASX healthcare stock rocketing 154.1% higher in a single day after the company, together with Advanz Pharma, reported it had entered into an exclusive license agreement for the European Economic Area, the UK, Switzerland, Canada, Australia, and New Zealand for the commercialisation of its phase 3 drug candidate DMX-200.

DMX-200 is intended to treat focal segmental glomerulosclerosis kidney disease.

Also likely boosting investor sentiment in the ASX healthcare stock was the fact that Dimerix retained all rights to commercialise DMX-200 outside of these territories.

“We are excited to announce this partnership with Dimerix, which is fully in line with our strategy to be a partner of choice for the commercialisation of specialty, hospital, and rare disease medicines in Europe, Canada, and Australia,” Advanz Pharma CEO Steffen Wagner said on the day.

The good times kept coming

As mentioned, Dimerix shares kept on gaining as the company released a series of other positive announcements over the following months.

Most recently, on 27 May, the ASX healthcare stock closed up 25.0% after reporting that Taiba Middle East had acquired exclusive rights to register and commercialise DMX-200 in the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Qatar, Bahrain and Iraq.

Atop the deal inked with Advanz Pharma, the two license deals provide almost $11.5 million in upfront payments to the ASX healthcare stock along with some $340 million in potential milestone payments.

“We are thrilled to partner with Dimerix in launching DMX-200 in the Middle East pending FDA approval,” Taiba CEO Saif Al Hasani said.

The post If you invested $5,000 in this ASX healthcare stock a year ago, you’d have $50,833 now! appeared first on The Motley Fool Australia.

More reading

• 2 ASX biotech shares that could be the next Telix Pharmaceuticals

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.

Treasury Wine Estates Ltd (ASX: TWE) shares could be great value at current levels.

That’s the view of analysts at Goldman Sachs, which have just increased their valuation of the ASX 100 stock.

This follows the release of the wine giant’s Penfolds update on Thursday.

What is the broker saying about this ASX 100 stock?

Goldman was pleased with the company’s update. And while it acknowledges that its Penfolds guidance for next year was a touch short of expectations, it thinks investors should look beyond this and focus on its strong outlook for FY 2026 and FY 2027. Its analysts commented:

TWE announced an update on its Penfolds outlook and strategy this morning together with Sales/EBITS/EBITS margin guidance for FY24-27. Whilst stock reaction was muted given FY25 Penfolds EBITS guide ~3.5% below Visible Alpha consensus, we believe that the ~15% CAGR in FY26/27 EBITS excluding any price increase is strong and demonstrates management confidence in execution despite the highly volatile consumer environment.

The broker also highlights the high quality of the ASX 100 stock’s earnings. It adds:

We believe that the building blocks of the EBITS growth to FY27 is balanced and of high quality, including FY25 ~+6% weighted average price in Bins & Icons (GSe ~3% across total Penfolds portfolio), FY26/27e ~15% volume and mix; with longer-term EBITS margin target at 45%.

Big returns expected

According to the note, the broker has reiterated its buy rating and lifted its price target on its shares to $15.20 (from $13.40).

Based on the current Treasury Wine share price of $12.43, this implies potential upside of 22% for investors over the next 12 months.

In addition, Goldman is forecasting dividend yields of 2.8% in FY 2024 and then 3.5% in FY 2025 from the ASX 100 stock. This stretches the total 12-month potential return to approximately 25%.

Commenting on its earnings forecasts and valuation, the broker commented:

Accordingly, we revise our group FY25/26 NSR and EBITS +1.0%/+2.4% and +0.9%/+6.7% respectively, and now factor 11%/15% Penfolds EBITS growth in FY25/26 vs mgmt guidance of low double-digit and 15%. We also roll-forward our SOTP/DCF valuation from FY25 to FY26 and introduce FY27 estimates. We revise our 12m forward TP to A$15.2/sh (vs previous A$13.4/sh). TWE is trading on a FY25 forward P/E of 20x vs FY24-27 EPS growth of 14%, implying 1.4 PEG (attractive vs the rest of our global growth Consumer coverage). Reiterate Buy.

Overall, this could make Treasury Wine shares worth considering if you’re looking for new portfolio additions.

The post Guess which ASX 100 stock has ‘high quality’ earnings and could rise 22% appeared first on The Motley Fool Australia.

More reading

• 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
• Here’s why the Treasury Wine share price is beating the ASX 200 today
• 5 top ASX growth shares to buy in June

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

Are you hunting for ASX dividend stocks to buy? If you are, it could be worth looking at the ones in this article.

That’s because they have all recently been named as buys and tipped to offer attractive dividend yields. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX 200 dividend stock that could be a buy according to analysts is Centuria Industrial.

It is Australia’s largest domestic pure play industrial property investment vehicle. Centuria Industrial owns a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion. Management notes that these assets are situated in key in-fill locations and close to key infrastructure.

UBS is positive on the company and currently has a buy rating and $3.71 price target on its shares.

As for dividends, the broker is expecting Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and FY 2025. Based on the current Centuria Industrial share price of $3.10, this will mean dividend yields of 5.15% for income investors across both years.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend stock that could be a great option for income investors is supermarket giant Coles.

That’s the view of analysts at Morgans, which believe that company is well-placed to reward shareholders with attractive dividend yields in the coming years.

It is forecasting 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 $17.17, this implies yields of approximately 3.85% and 4%, respectively.

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

South32 Ltd (ASX: S32)

A third ASX 200 dividend stock that could be a buy for patient income investors is mining giant South32.

Although the miner may not be in a position to pay a big dividend this year, things could soon change.

That’s because the team at Goldman Sachs believes that its dividend could increase significantly. This is thanks to the favourable outlook for copper, aluminium, zinc, and met coal prices.

Goldman is forecasting fully franked dividends per share of 4 US cents in FY 2024, 10 US cents in FY 2025, and then 16 US cents in FY 2026. Based on its latest share price of $3.70 and current exchange rates, this will mean yields of 1.6%, 4%, and 6.5%, respectively.

The broker currently has a buy rating and $4.00 price target on South32’s shares.

The post Mining, supermarkets, and property: 3 ASX 200 dividend stocks to buy appeared first on The Motley Fool Australia.

More reading

• 9 popular ASX REITs with ex-dividend dates next week
• Coles shares flat as Choice report says competitor Aldi cheapest
• Are ASX REITs a good investment right now?
• 3 of the best ASX 200 blue chip shares to buy now
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

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

The Guzman y Gomez Ltd (ASX: GYG) share price soared more than 30% on its first day on the ASX, trading at around $30. Investors that bought shares at $22 are already sitting on big gains.

Interested prospective investors now face a difficult question: Is the Mexican food business a good investment or too expensive?

I wrote several days ago that I planned to buy GYG shares. After seeing such a strong rise on the opening day, I decided not to buy at $30 on the first day amid the strong buying interest.

Why did the GYG share price pop?

Put simply, a large number of investors wanted to buy while not many shares were for sale. The management and large institutional investors seemed to want to keep their shares, so buyers had to pay what sellers were asking for if they wanted shares on the first day.

According to reporting by the Australian Financial Review, Cyan Investment Management’s Dean Fergie believes it was fear of missing out (FOMO) that led to the huge increase in the Guzman y Gomez share price. Fergie said:

I feel the whole price is a bit engineered, there’s not a lot of free float, so you’re not getting new buyers in there. And the people that are in there have an incentive to keep the share price high in the short term.

If you’re a big fund with a pile of money, you’re probably going to be buying a few shares to keep the price nice and high … so my cynical view is that until all the escrows are out and there’s a bunch of free float for the stock, I don’t know how relevant the actual price is for the long-term valuation.

I feel the bottom-line earnings numbers, even taking into account potential growth going forward, just don’t stack up from a valuation perspective – I’m a fundamental bottom-line investor rather than a hype and excitement kind of guy.

There’s two sides of the coin, you’ve got people who are invested and they’re either believers or want to ride the hype and they’re pumping it up, and then there are others like me that aren’t involved and saying this just doesn’t make any financial sense.

Is the Guzman y Gomez share price good value?

It must be noted that the IPO price was $22 (and franchisees were able to buy shares through the IPO offer at $18). Shares issued through the IPO will be allotted on 24 June 2024 and can be traded on 25 June 2024.

Once some new shareholders see they can sell their shares at a good, quick profit, I wouldn’t be surprised to see the GYG share price move back at least a little towards the listing price of $22.

If investors believe GYG can become a much bigger business in five years, then today could represent a good price for the long term, but I expect it to see a lot of volatility.

The business now has a market capitalisation of $3 billion, and it’s expected to generate underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $43 million in FY24. That puts it at around 70x FY24’s underlying EBITDA, which looks high to me, at least for the short term.

The post Would I be crazy to buy Guzman y Gomez (GYG) shares at $30? appeared first on The Motley Fool Australia.

More reading

• 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
• It’s only a day until ASX investors can buy Guzman y Gomez shares
• Why I’m planning to buy Guzman y Gomez shares and own for the long-term

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.

If you are looking for a combination of market-beating gains and an attractive dividend yield, then it could be worth considering the ASX 200 stock in this article.

That’s because analysts at Bell Potter believe this stock is undervalued at current levels and could deliver strong returns for investors over the next 12 months.

Which ASX 200 stock?

The stock in question is agribusiness company Elders Ltd (ASX: ELD).

Bell Potter notes that its shares have underperformed recently due to doubts over its ability to hit its guidance. The broker appears to believe this is unwarranted and that Elders can deliver on expectations. It said:

The ELD share price has stagnated following the release of the 1H24 results where FY24e EBIT guidance of $120-140m was reiterated, implying 2H24e EBIT of $82- 102m (vs. $88.0m in 2H23 and $38.5m 1H24). In aggregate we would see the combination of acquisitions, business investment and stronger YOY trends in livestock as generally supportive of our FY24e forecasts and the FY24e EBIT guidance range.

In light of this, its analysts have reaffirmed their buy rating and $9.30 price target on the ASX 200 stock this morning.

Based on the latest Elders share price of $8.36, this implies potential upside of 11.2% for investors between now and this time next year.

In addition, the broker is forecasting partially franked dividends of 36 cents per share in FY 2024 and then 41 cents per share in FY 2025. This equates to dividend yields of 4.3% and 4.9%, respectively, for investors.

So, if we imagine this means a 4.6% dividend yield over the next 12 months (the FY 2024 final dividend and FY 2025 interim dividend), the total potential return increases to 15.8% for investors.

If this proves accurate, a $10,000 investment into this ASX 200 stock today could turn into $11,580.

What else did the broker say?

Bell Potter highlights that Elders’ shares are trading at an attractive discount to historical average multiples at a time when its earnings growth profile is starting to recover. It concludes:

Our Buy rating is unchanged. At a high level we see ELD trading at 7.7-7.9x ThroughThe-Cycle (TTC) EBITDA, which we estimate at $270-280m reflecting YTD business investment ($68m in 1H24 + $51m on Knight Frank TAS), a discount to its historical average of 8.5x. Improving livestock turnover, the benefits of recent business investment and a stabilisation in agricultural input prices in our view support a recovering earnings growth profile in 2H24e-1H25e.

The post Buy this ASX 200 stock for an 11% gain and 4%+ dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Boss Energy, Elders, Peter Warren, and Serko shares are sinking today
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 shares trading ex-dividend next week

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

Dividend payment dates, as well as the ex-dividend dates that preceded them, ebb and flow on the ASX just like the tides. There are some weeks, usually just after earnings season when it seems that every company under the Australian sun is paying out a dividend. In other weeks, it’s a veritable income desert on the Australian share market.

Luckily, next week is an example of the former.

Whenever an ASX share announces a dividend payment, it must also nominate an ex-dividend date for that payment. This ‘ex-div’ date is when a line is drawn in the sand between those shareholders who are eligible to receive the payment, and those who will miss out.

Put simply, if you wish to receive a company’s latest dividend, you need to own the shares at least one day before the ex-dividend date. If you buy those shares on or after that date, you will miss out on the payment, with the seller retaining the rights to the cash.

As we noted above, there are quite a few ASX shares set to trade ex-dividend on the stock market next week. But today, let’s go through no fewer than nine popular real estate investment trusts (REITs) that are in line to fork out their latest dividends (dividend distributions, to be precise).

Before we get right into it, it’s worth remembering that dividend distributions from REITs rarely come with any franking credits attached. That’s due to their unique composition, which prevents them from paying corporate taxes (from which franking credits are generated) like companies do.

With that out of the way, here are the nine popular ASX REITs with ex-dividend dates set for next week:

Nine ASX income stocks set to trade ex-dividend next week

 *Dividend yield as of Thursday’s close

Foolish takeaway

Those are the nine popular REITs scheduled to trade ex-dividend next week.

All of these REITs currently have relatively large trailing dividend distribution yields. As such, we might see some fairly large share price drops when each of them goes ‘ex-div’. That will reflect the hefty loss of value for new investors when this eligibility window closes.

So if you see any of these ASX REITs drop like a rock next week, you’ll probably know why.

The post 9 popular ASX REITs with ex-dividend dates next week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• These four ASX All Ords shares just earned hefty broker upgrades. Here’s why
• 2 ASX dividend shares offering over 5% yield
• Buy Telstra and these ASX dividend stocks now
• Are ASX REITs a good investment right now?

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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Creating a lasting passive income with the right S&P/ASX 200 Index (ASX: XJO) stocks could make all the difference between a comfortable retirement and a luxurious one.

If you’re after a more luxurious retirement, the sooner you start building a portfolio of quality dividend stocks, the larger that extra income stream is likely to be.

Below, we look at three top ASX 200 stocks that could create lasting passive income.

Just keep in mind that a proper income portfolio should contain more like 10 (or so) dividend stocks, ideally operating in different market sectors and across different geographic locations. That kind of diversity will help to lower the overall risk to your investment portfolio.

Also, remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

While the dividends paid out by the three ASX 200 companies we examine below will almost certainly vary from year to year, I believe all three will continue to reward passive income investors over the long term handsomely.

With that said…

Tapping ASX 200 stocks for lasting passive income

The first company I’d buy to create lasting passive income is ASX 200 bank stock Commonwealth Bank of Australia (ASX: CBA).

CBA has a long track record of paying two fully franked dividends per year. Australia’s biggest bank even came through with two dividends in the pandemic addled year of 2020.

As for the past 12 months, CBA paid a final dividend of $2.40 a share on 28 September. The interim dividend of $2.15 a share landed in eligible shareholders bank accounts on 28 March.

That equates to a full-year passive income payout of $4.55 a share, fully franked.

Following a 26% share price surge over the past year, CBA’s dividend yield has come down. At yesterday’s closing price, CBA shares trade on a fully franked trailing yield of 3.56%. But I still think this is a key stock for delivering ongoing income into retirement.

The second ASX 200 stock I’d buy for enduring passive income is Woodside Energy Group Ltd (ASX: WDS). Unlike CBA, the Woodside share price has fallen 24% over the last year.

But from a yield perspective, now could be an ideal time to buy the stock. Despite the world’s decarbonisation push, global demand for oil and gas is greater than ever and expected to grow into next year.

On the passive income front, Woodside paid an interim dividend of $1.243 a share on 28 September and a final dividend of 91.7 cents a share on 4 March. That works out to a full-year payout of $2.16 a share.

At yesterday’s closing price, Woodside shares trade on a fully franked trailing yield of 7.93%.

Rounding out the list of ASX 200 stocks to create lasting passive income is mining giant BHP Group Ltd (ASX: BHP), the biggest company on the ASX.

BHP shares have also slipped 8% over the past 12 months. And the company’s dividends will fluctuate in rough line with its top-earning commodities over time. Importantly, though, all of these commodities should remain in strong demand for many years to come. And despite already being the largest stock on the ASX, BHP continues to pursue growth strategies.

As for that passive income, BHP paid a final dividend of $1.251 a share on 28 September. The miner paid an interim dividend of $1.096 a share on 28 March for a full-year, fully franked payout of $2.347 a share.

At yesterday’s closing price, that sees BHP shares trading on a fully franked trailing yield of 5.49%.

The post 3 top ASX 200 stocks that could create lasting passive income into retirement appeared first on The Motley Fool Australia.

More reading

• Buy these top ASX 300 dividend stocks today for an income boost
• 2 ASX 200 bank shares smashing new multi-year highs today
• Beaten-up ASX 200 stock rebounds 15%. Macquarie says more to come
• What’s the outlook for ASX 200 mining shares in FY25?
• Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023

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.

Income investors have a lot of options on the Australian share market. So much so, it can be hard to decide which ASX dividend shares to buy above others.

But don’t worry because listed below are three options with generous dividend yields that are rated highly by analysts. Here’s what they are saying about these dividend shares:

IPH Ltd (ASX: IPH)

Analysts at Goldman Sachs think that IPH could be an ASX dividend share to buy. It is an intellectual property solutions company with operations across the world.

The broker is feeling positive about the company due to its belief that IPH is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.”

It is expecting this to support the payment of fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. Based on the current IPH share price of $6.16, this represents dividend yields of 5.5% and 6%, respectively.

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

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs is also feeling bullish about Rio Tinto. It is of course one of the world’s largest miners with operations across several commodities such as copper, iron ore, and lithium.

The broker likes the company due to its “compelling relative valuation” and its expectation of “strong production growth in 2024 & 2025.”

Goldman expects this to underpin fully franked dividends per share of US$4.29 (A$6.44) in FY 2024 and then US$4.55 (A$6.84) in FY 2025. Based on the latest Rio Tinto share price of $119.67, this will mean yields of approximately 5.4% and 5.7%, respectively.

The broker currently has a buy rating and $138.90 price target on the miner’s shares.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend shares that could be a buy for income investors is youth fashion retailer Universal Store.

Morgans is positive on the company and believes it is well-placed for growth. It notes that its “growth opportunities are in place” and that “customers continue to respond well to the Universal Store banner.”

As for income, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $5.20, this will mean yields of 5% and 5.6%, respectively.

Morgans has an add rating and $6.50 price target on its shares.

The post Buy these ASX dividend shares for 5% to 6% yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.