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S&P/ASX 200 Index (ASX: XJO) gold stocks enjoyed a blistering rally from late February through to late May this year.

That rally was driven by a surge in the gold price.

On 28 February, the yellow metal was trading for US$2,030 per ounce. Amid fast-growing demand and relatively fixed short-term supplies, the gold price then went ballistic, hitting all-time highs of US$2,450 on 21 May.

As you’d expect, this came as good news for leading Aussie gold producers like Northern Star Resources Ltd (ASX: NST), Newmont Corp (ASX: NEM), Gold Road Resources Ltd (ASX: GOR), and Evolution Mining Ltd (ASX: EVN).

How good a news?

Well, from 28 February through to market close on 20 May, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – rocketed 31%.

For some context, the ASX 200 gained around 3% over this same period.

Now with the gold price having since retraced to US$2,331 (still near historic highs), ASX 200 gold stocks have given back some of those outsized gains. Indeed, the ASX All Ords Gold Index is down 8% since 20 May.

But that trend could be about to reverse once more, with global central banks potentially supporting a new rally in the gold price.

Here’s how.

ASX 200 gold stocks could get a boost from central banks

There are really two tailwinds that central banks could offer for ASX 200 gold stocks.

First, by cutting interest rates.

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

Perhaps more importantly, central banks also buy a significant amount of bullion to hold in their vaults. The more they buy, the less there is for everyone else to acquire, which tends to drive prices higher.

Now the past two years have both seen central banks purchasing record amounts of the yellow metal.

And in what should be good news for investors in ASX 200 gold stocks, the World Gold Council’s 2024 Central Banks Gold Reserves survey revealed that four in five respondents expect reserve managers will continue to increase their gold holdings in the next 12 months

The survey collected data from 70 global central banks. And it found that nearly 30% of central banks also plan to add to their own gold reserves within the next year.

The top three reasons to hold gold now, according to the surveyed reserve managers, are:

• Gold’s long-term value (88%)
• Gold’s performance during a crisis (82%)
• Gold’s role as an effective portfolio diversifier (76%)

Commenting on the survey results that could rekindle investor interest in ASX 200 gold stocks, Shaokai Fan, global head of central banks & head of Asia-Pacific, said, “Extraordinary market pressure, unprecedented economic uncertainty and political upheavals around the world have kept gold front of mind for central banks.”

Fan added:

Many of these institutions have become more aware of the asset’s value as a way to manage risks and diversify their portfolios.

What has been remarkable is that despite record demand from the official sector in the last two years coupled with climbing gold prices, many reserve managers still maintain their enthusiasm for gold.

The post How central banks are primed to drive a new ASX 200 gold stock rally appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 10 ASX shares that have raised dividends for a decade
• Why Capitol Health, Infratil, Newmont, and Race Oncology shares are charging higher
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

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.

Over the last 12 months, a number of ASX tech stocks have delivered sensational returns for their shareholders.

The likes of Life360 Inc (ASX: 360), Nextdc Ltd (ASX: NXT), Pro Medicus Limited (ASX: PME), and Xero Ltd (ASX: XRO) have all smashed the market with strong gains.

But one ASX tech stock has outperformed them all. So much so, you would have more than tripled your money if you bought its shares a year ago.

Which ASX tech stock?

The ASX tech stock in question is Nuix Ltd (ASX: NXL).

Since this time last year, its shares have rallied an incredible 260%. To put that into context, a $10,000 investment 12 months ago would be worth $36,000 today.

Nuix is a leading provider of investigative analytics and intelligence software. It notes that this software empowers customers to be a force for good by finding truth in the digital world.

It can help users collect, process, and review massive amounts of structured and unstructured data, making it searchable and actionable at scale and speed, with forensic accuracy.

Earlier this month, it updated its guidance for FY 2024. It revealed that based on the receipt of funds relating to an insurance claim made for non-operational legal costs associated with litigation, it now expects its statutory EBITDA to be in the range of $55 million to $60 million in FY 2024. This compares to its previous guidance of $47 million to $52 million for the year.

Is it too late to invest?

The ECP Growth Companies Fund remains positive on the ASX tech stock. It is a high conviction Australian equities portfolio designed to deliver alpha above benchmark.

And it has done this over the last five years, outperforming the S&P/ASX 300 Accumulation Index by 1.6% over the period.

Commenting on Nuix, the fund manager said:

Nuix outperformed in May following a positive trading update to the market, in which the company guided higher on statutory revenue and provided EBITDA guidance. There remains a significant growth opportunity ahead of Nuix, driven by continued growth in unstructured data and the shift to consumption based contracts

This could make it well worth keeping a close eye on this soaring tech stock.

The post The ASX tech stock with ‘a significant growth opportunity ahead’ appeared first on The Motley Fool Australia.

More reading

• Up 53% in a month, how Nuix shares are winning back investors
• Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

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

Nvidia Corp (NASDAQ: NVDA) shares have again made history overnight.

The chip-designing company no longer plays second fiddle to other tech titans, such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT). Rising a further 3.5% to a record US$135.58 per share, Nvidia is now the most valuable company in the world.

While Nvidia has pipped its peers, the lead is narrow. Apple, Microsoft, and Nvidia all hover around the US$3.3 trillion mark. A measly 1.6% gain in Apple shares would put it back in the pole position from the third spot.

AI powerhouse takes the throne

Artificial Intelligence (AI) is the term on everyone’s lips this year. Tens of billions of dollars have been spent upgrading data centres worldwide with AI-enabling hardware to meet AI-powered productivity, product optimisation, and performance.

No one has benefitted more from this spending than Nvidia. Recent data suggests the company, led by Jensen Huang, holds a market share of between 70% and 95% in AI chips. A feat that has delivered incredible growth in Nvidia’s revenue, profits, and shares in recent years.

For the 12 months ending April 2024, Nvidia recorded revenue of US$79.8 billion and net profits after tax (NPAT) of US$42.6 billion, respectively, an increase of 208% and 789%. Yet, the appetite for AI hardware appears to be as strong as ever.

In the company’s first-quarter 2024 earnings call last month, Nvidia chief financial officer Colette Kress said:

Demand for H200 [an accelerated computing graphics processing unit] and Blackwell is well ahead of supply, and we expect demand may exceed supply well into next year.

Such a strong outlook has pushed earnings estimates among analysts for FY25 to around US$63 billion. For context, Apple earned US$100 billion in net profits during its last four quarters, while computer giant Microsoft generated US$86 billion.

However, some investors see Nvidia as the backbone of AI for years to come.

What are analysts saying about Nvidia shares?

Despite being the most expensive company in the US$3 trillion league based on the price-to-earnings (P/E) ratio, several analysts still see blue skies ahead for the green graphics card company.

Rosenblatt, a New York-based broker, remains bullish on Nvidia shares after its newfound number-one status. Last night, the broker upgraded the shares’ price target to US$200. The improved target rides on Nvidia obtaining greater market share in high-margin areas with its Blackwell, Rubin, and Hopper lineup.

The beefed-up Nvidia price target suggests an additional 47.5% upside.

However, Oliver Pursche of Wealthspire Advisors warns of what a slipup would entail:

Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly, but a small misstep is likely to cause a major correction in the stock, and investors should be careful.

Nvidia shares are up 181.5% in 2024 alone.

The post Nvidia shares reach world’s most valuable milestone. Where to now? appeared first on The Motley Fool Australia.

More reading

• Is it too late to buy Nvidia stock?
• Insiders are selling Nvidia stock. Should you?
• Nvidia jumped 27% after its stock split announcement. Can Broadcom beat it?
• 3 reasons to buy Nvidia like there’s no tomorrow (Hint: The stock split Isn’t 1 of them)
• 5 Reasons Nvidia isn’t in an AI-fueled bubble

Motley Fool contributor Mitchell Lawler has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, 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 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.

It’s been a fairly miserable day for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far this Wednesday. At the time of writing, the ASX 200 has retreated by 0.1% after briefly rising into green territory this morning. But let’s talk about what’s going on with ASX uranium shares.

Unlike the broader market, ASX uranium shares are well and truly in demand this session. Take the Boss Energy Ltd (ASX: BOE) share price. Boss Energy shares are currently outperforming the broader market, up a healthy 0.7% at $4.13 each so far.

Paladin Energy Ltd (ASX: PDN) shares are doing even better, presently up a rosy 1.14% at $13.73 each.

But ahead of the pack is the Deep Yellow Limited (ASX: DYL) share price. Deep Yellow stock has rocketed a hefty 3.3% at this point of the trading day. That puts the company at $1.47 a share.

The BetaShares Global Uranium ETF (ASX: URNM) is also doing well. It’s currently enjoying a 1.68% lift up to $9.70 a unit.

So what’s going on here? Why are these ASX uranium shares outperforming the ASX 200 so comprehensively this Wednesday?

Why are ASX uranium shares going gangbusters today?

Well, there’s been no major news or announcements out of any of the shares listed above that might easily explain this bullishness we see from ASX investors.

However, another development could be a factor here.

This morning, the Federal Opposition gave the Australian public some concrete details about its plans to establish a domestic nuclear energy industry.

Nuclear energy has been banned in Australia for decades. The only reactor on Australian soil is currently used to produce nuclear medicines. There are no nuclear power plants in the country.

But if the Opposition has its way, this is set to change. This morning, Liberal Opposition Leader Peter Dutton outlined a plan to build up to seven new nuclear reactors on the sites of decommissioned (or soon-to-be-decommissioned) coal-fired power plants.

Dutton revealed two sites in New South Wales, two in Queensland and one each in Victoria, South Australia and Western Australia. They include NSW’s Liddell Station, the Loy Lang site in Victoria and the Tarong Station in Queensland.

Here’s some of what Dutton said in the press release today:

And today, we announce seven locations, located at a power station that has closed or is scheduled to close, where we propose to build zero-emissions nuclear power plants…

Each of these locations offer important technical attributes needed for a zero-emissions nuclear plant, including cooling water capacity and transmission infrastructure, that is, we can use the existing poles and wires, along with a local community which has a skilled workforce.

A key advantage of modern zero-emissions nuclear plants is they can be plugged into existing grids. This means they can effectively replace retired or retiring coal plants…

Dutton’s plan would see the first nuclear plants operational from 2035 to 2037. This could be characterised as optimistic, given that a recent CSIRO report found that it would take at least 15 years for Australia to build and fire up a nuclear plant. That would make for a 2040 start at the earliest.

A nuclear Australia

But putting that aside, it’s unlikely that Dutton’s announcement today will herald any new significant business opportunities for ASX uranium shares. Stocks like Boss Energy and Deep Yellow already have eager markets for their uranium across North America, Europe and Asia.

As my Fool colleague Bernd put it back in March:

Now even if Australia opts to eventually embrace nuclear power, ASX uranium shares are unlikely to see any domestic demand for their product for many years yet.

But even so, it’s entirely possible that Dutton’s announcement today is what is giving investors a sentiment boost.

There is arguably already an expectation that global uranium demand will only grow in the years ahead as other countries around the world swap coal for uranium. Today’s announcement from the Liberal Party does nothing to dent this narrative.

The post Here’s why ASX uranium shares like Deep Yellow are running hot today appeared first on The Motley Fool Australia.

More reading

• Is the slashed Sonic Healthcare share price a ‘buying opportunity’?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
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• 5 things to watch on the ASX 200 on Tuesday

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

Over the last 12 months, Woolworths Group Ltd (ASX: WOW) shares have underperformed the market

During this time, the supermarket giant’s shares have lost 16% of their value. As a comparison, the ASX 200 index is up 6.5% over the same period.

So, unless there’s a significant rally over the remainder of this month, it’s looking like FY 2024 is going to be one to forget for shareholders.

But will things be better in FY 2025? Let’s have a look.

Will Woolworths shares perform better in FY 2025?

The next financial year looks set to be an eventful one for Woolworths and its shares.

This is because the supermarket industry is currently being looked at by regulators due to price gouging allegations.

It’s fair to say that the outcome of these inquiries could have a major say in the performance of Woolworths shares.

In fact, the bullish analysts at Goldman Sachs have named it as a risk factor for investors to consider. They said:

Key downside risks: Worse AU food volumes, increase in competitive intensity, online sales underperformance, retail media benefits not materializing, poor management of cost inflation. Worse than feared ACCC inquiry outcomes.

But if all goes to plan, Goldman sees big returns on the cards for investors in FY 2025.

Big return potential

According to a recent note out of the investment bank, its analysts have a conviction buy rating and $39.40 price target on its shares.

If Woolworths shares were to end the financial year where they currently trade and then rise to that level in FY 2025, it would mean a very attractive return of 18% for investors. In addition, a ~3% dividend yield is expected over the next 12 months.

Goldman thinks the company’s shares are great value right now. Especially given its defensive qualities. It said:

WOW is the largest supermarket chain in Australia with an additional presence in NZ, as well as selling general merchandise retail via Big W. We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

The post Could Woolworths shares beat the market in FY25? appeared first on The Motley Fool Australia.

More reading

• Buy these ASX shares for a winning retirement portfolio
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Where Aussies are spending their money, and the ASX shares that could benefit
• How much could a $10,000 investment in Woolworths shares become in one year?

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

The Treasury Wine Estates Ltd (ASX: TWE) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed yesterday trading for $12.08. In early afternoon trade on Wednesday, shares are changing hands for $12.26 apiece, up 1.5%.

That handily beats the 0.1% loss posted by the ASX 200 at this same time.

As you can see on the chart above, the Treasury Wine share price has been a strong performer in 2024, up around 14%. That compares to a roughly 2% gain delivered by the benchmark index year to date.

This outperformance is in part fuelled by investor enthusiasm over the reopening of Chinese markets to Aussie wine imports. Australian wine joined a host of other commodities on China’s naughty list in 2020 after the Aussie government called for an investigation into the origins of the Covid virus.

Treasury Wine stock also trades on a partly franked trailing dividend yield of 2.8%.

Here’s why the stock looks to be beating the ASX 200 again today.

Treasury Wine share price lifts amid key board appointment

Investors may be bidding up the Treasury Wine share price after the company announced the appointment of Leslie Frank as non-executive director of the board.

The appointment could be stirring investor interest as Frank brings some strong credentials to the table.

Among these, she founded the luxury wine business Frank Family Vineyards, located in the Napa Valley in the US state of California. Treasury Wine acquired the business in 2021.

Frank is also an Emmy Award-winning journalist. According to the release, she’s worked in major US television markets, including reporting and anchoring at the number one-rated KABC in Los Angeles and KCPQ in Seattle.

That’s the kind of exposure that could prove a boon for future marketing activities.

Commenting on the appointment that appears to be helping the Treasury Wine share price beat the ASX 200 today, chairman John Mullen said, “I am delighted to welcome Leslie Frank to the board.”

Mullen continued:

Since founding Frank Family Vineyards in 1992, Leslie’s innovative and entrepreneurial approach to luxury brand building, coupled with her expertise in digital marketing, design and hospitality, resulted in the creation of the truly outstanding luxury business that it is today.

Her in-depth knowledge of the US wine industry, luxury brand and consumer engagement insights, and deep relationships within the Napa Valley make her the ideal candidate for the Treasury Wine Estates board.

Frank’s appointment will be effective from 1 July.

Management noted this remains dependent on approvals from a number of Australian state-based liquor licensing authorities.

The post Here’s why the Treasury Wine share price is beating the ASX 200 today appeared first on The Motley Fool Australia.

More reading

• 5 top ASX growth shares to buy in June
• What is boosting the Treasury Wine share price on Thursday?
• Up 12% in 2024, this ASX 200 stock is a top pick for June
• Analysts say these 5 ASX 200 growth shares are top buys
• Brokers name 3 ASX shares to buy now

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

Westpac Banking Corp (ASX: WBC) shares have not only gained 28.5% over the past 12 months, they’ve also delivered shareholders some term deposit-beating passive income.

In fact, the most recent fully franked interim dividend the S&P/ASX 200 Index (ASX: XJO) bank stock delivered was the biggest payout since the pre-pandemic year of 2019.

So, how much passive income might I expect if I invested $20,000 in Westpac shares today?

We’ll get to that in just a tick.

But first…

Trailing yields and diversification

Before diving in, keep in mind that a proper passive income portfolio will contain a lot more than just one stock. While there’s no magic number, 10 is a decent ballpark figure, ideally operating in different sectors and across various locations.

That kind of diversity will reduce the overall risk to your income portfolio.

Second, be aware that the yields you generally see quoted are trailing yields. Future yields may be higher depending on numerous company-specific and macroeconomic factors.

While we can look at forecast yields, these are just that. Forecasts. Sometimes they’ll prove true. Sometimes they won’t.

As for the future passive income on offer from Westpac shares, I do like the past four years growth trend. The ASX 200 bank’s yearly dividend payouts have risen every year since 2020. And the interim dividend paid out in 2024 continues this growth pattern.

With that said…

Tapping Westpac shares for passive income

Turning to the past 12 months, on 19 December eligible Westpac shareholders will have received a fully franked final dividend of 72 cents per share. That was up 12.5% from 64 cents per share the prior year.

The interim dividend of 90 cents per share, also fully franked, will land in eligible shareholders’ bank accounts next week, on 25 June. It’s a bit too late to score that passive income payment, as Westpac stock traded ex-dividend on 9 May.

All told then, Westpac paid a total of $1.62 a share in dividends over the past year.

At the current share price of $27.15, the ASX 200 bank stock trades on a fully franked yield (partly trailing, partly pending) of 6.0%.

Getting back to our headline question then, how much passive income might I get if I invested $20,000 in Westpac shares right now?

Well, with $20,000 I could buy 736 Westpac shares today with enough change left over for a cheeseburger.

With 736 shares, I could then expect $1,192 in annual passive income from the big four bank, with potential tax benefits from those franking credits.

Of course, I’ll also be hoping the Westpac share price continues to outperform.

The post Here’s how much passive income I’d get if I invested $20,000 in Westpac shares now appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Westpac share price in FY25?
• How to invest for retirement in an inflationary environment
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• Is there any chance of an interest rate cut in Australia next week?
• Big bank bargain: Are this week’s tumbling ASX 200 bank shares a good buy?

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.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Beach Energy Ltd (ASX: BPT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this energy producer’s shares with a trimmed price target of $1.75. This follows the announcement of the outcomes of the company’s strategic review. The broker notes that the outcomes were largely as expected, with strong cost out targets and capital discipline. Combined with its production guidance for FY 2025, Bell Potter has adjusted its earnings estimates through to FY 2026 and valuation accordingly. And while its valuation has been lowered, it still sees plenty of value on offer with its shares at current levels and retains its buy rating. The Beach Energy share price is currently trading at $1.45.

Life360 Inc (ASX: 360)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $17.75. This follows news that the Life360 app has surpassed 2 million paying circles. Bell Potter notes that this was notably ahead of its expectations. In fact, the broker was only expecting 1.98 million at the end of the first half. It feels this bodes well for the company going into the seasonally strong third quarter of the year. In light of this, its analysts appear confident that the company is destined to deliver another strong result in FY 2024. The Life360 share price is fetching $15.77 on Wednesday afternoon.

Premier Investments Limited (ASX: PMV)

Analysts at Morgan Stanley have retained their overweight rating and $39.50 price target on this retail giant’s shares. According to the note, the broker continues to believe the market is under-appreciating the growth potential of the Peter Alexander brand. It also feels that the market is doubting its ability to expand into the lucrative UK market due to competition concerns. However, Morgan Stanley doesn’t believe this is the case and highlights that the UK sleepwear market is highly fragmented with no true market leader. It believes this gives the Peter Alexander brand a great opportunity to penetrate the market. The Premier Investments share price is trading at $29.34 today.

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

More reading

• Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today
• Buy this ASX 200 energy stock if you want a big return
• Should you buy Life360 shares after its latest stunning milestone?
• 5 things to watch on the ASX 200 on Wednesday
• Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,775.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down almost 5% to $1.46. This appears to have been driven by a broker note out of Citi this morning. In response to its strategic review, the broker has downgraded the energy producer’s shares to a sell rating with a trimmed price target of $1.40. It was disappointed to see that Beach Energy’s strategic review revealed higher than expected capex with no boost to medium-term production. In light of this, it feels its shares are overvalued at current levels.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down over 3% to 8.7 cents. This is despite there being no news out of the lithium miner on Wednesday. However, it is worth noting that a number of ASX lithium stocks are in the red today. This follows another poor session for global lithium giants on Wall Street overnight. Core Lithium’s shares are down over 90% since this time last year. It was forced to suspend mining activities indefinitely due to falling lithium prices.

Helia Group Ltd (ASX: HLI)

The Helia Group share price is down almost 18% to $3.48. This follows news that Commonwealth Bank of Australia (ASX: CBA) intends to issue a request for proposal relating to its external Lenders Mortgage Insurance (LMI) requirements for the whole CBA group. While this could mean a bigger contract for Helia. It could also mean the loss of the lucrative contract. Helia notes that its current contract represented approximately 53% of its gross written premium in FY 2023. Clearly, the loss would be a devastating blow to the company.

RED 5 Limited (ASX: RED)

The RED 5 share price is down over 2% to 4.4 cents. This morning, the company revealed a number of changes to its executive leadership following the successful implementation of the merger with Silver Lake Resources Ltd (ASX: SLR). Its chairman said: “Under the leadership of Luke Tonkin as Managing Director and CEO, supported by a high calibre executive leadership team, I am confident we have the team in place to oversee the next chapter of the Company’s growth.”

The post Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock plunges 15% on CBA deal news
• Buy this ASX 200 energy stock if you want a big return
• 5 things to watch on the ASX 200 on Wednesday
• Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today
• Core Lithium share price hits a multi-year low: Will the tide change soon?

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 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.

In today’s investment landscape, many Aussies are on the lookout for passive income that offers not only a steady cash flow but also the potential for capital growth.

Among the many options for generating passive income, dividend shares are a standout.

Let’s delve into three ASX dividend shares that offer a solid track record of delivering consistent dividends to their shareholders. These ASX shares play a crucial role in their respective sectors, making them even more attractive investment options.

APA Group (ASX: APA)

First up is APA Group, a major player in Australia’s energy sector. The company manages the country’s largest network of natural gas pipelines, placing it in a critical position in the energy supply chain.

With a strong focus on growing and managing its assets efficiently, APA Group has a solid track record of delivering dividends to its shareholders.

Over the past decade, APA Group has consistently raised its dividends from 38 cents per share (cps) to 56 cps in the 12 months to December 2023.

However, the past year has been challenging for its shareholders. The APA Group share price dropped 16% over the 12 months due to market concerns about the shift to electricity and related regulatory issues.

Despite these challenges, this dip could present a buying opportunity for dividend-focused investors, as APA Group currently offers a dividend yield of 6.6% at its current share price of $8.39.

Sonic Healthcare (ASX: SHL)

Sonic is all about healthcare, providing essential diagnostic services like lab tests and radiology worldwide. Its work supports doctors and hospitals in delivering patient care, and with a global presence, Sonic’s diversified operations make it a resilient choice for investors.

Plus, its history of providing consistent dividends makes it an attractive option for income-focused portfolios.

Like APA Group, Sonic has consistently raised its dividends and now pays more than $1 annually — $1.05, to be exact. This represents a dividend yield of 3.95% at the current share price of $26.56.

Recently, the company downgraded its earnings outlook for FY24 as it faces inflationary pressures and currency exchange headwinds.

While this has pushed down the Sonic share price to its near three-year low, insiders are buying the shares at these levels, as my colleague Tristan highlighted.

Steadfast Group Ltd (ASX: SDF)

Last but not least, I think the insurance brokerage firm Steadfast is worth considering for dividend investors. The company operates in the insurance industry and mainly works with independent brokers across Australasia.

Steadfast supports these brokers with technology, market access, and other tools, driving collective strength and growth. This unique model has fuelled Steadfast’s steady growth, making it an interesting pick for those considering dividend investments.

Steadfast is the largest general insurance broker network in Australasia and boasts strong business fundamentals. The company’s shares have shown stable growth without significant fluctuations in the share price over its history.

Considering this, the recent drop in its share price might be an excellent opportunity to add this name to your portfolio.

At the current Steadfast Group share price of $5.65, the company has a dividend yield of 2.8%.

The post Passive income powerhouses! 3 ASX shares I’d consider buying for rising dividends appeared first on The Motley Fool Australia.

More reading

• Is the slashed Sonic Healthcare share price a ‘buying opportunity’?
• How to invest for retirement in an inflationary environment
• Buy these excellent ASX 200 dividend shares for very juicy yields
• Here are the top 10 ASX 200 shares today
• 10 ASX shares that have raised dividends for a decade

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 Apa Group and Steadfast Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.