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The S&P/ASX 200 Index (ASX: CKF) stock Collins Foods Ltd (ASX: CKF) is on my buy list this month. I love jumping on beaten-up opportunities and I think the KFC and Taco Bell operator looks like a bargain.

As we can see on the chart below, the Collins Foods share price has dropped around 18% since 9 January 2024.

There are three main reasons I’m thinking about jumping on this stock, when Motley Fool’s trading rules allow me to, following the publication of this article.

Cheaper valuation

The lower price we can pay for a good business, the better value we’re getting and the larger margin of safety it gives.

It’s still the same business, whether the share price is 20% higher or 20% lower. The ASX 200 stock is more than 20% cheaper than where it was in 2021, but its KFC (and Taco Bell) outlet footprint is larger now than a couple of years ago.

Its financials are showing much better performance compared to a year ago when inflation was causing major difficulties with costs and customer demand. In the FY24 first-half result, it grew continuing operations revenue by 14.3% and the underlying net profit after tax (NPAT) increased by 28.7% to $31.2 million. Double-digit profit growth for this sort of business is good, in my opinion.

The ASX 200 stock is projected to make earnings per share (EPS) of 51 cents in FY24, which would put it at 20x FY24’s estimated earnings.

Compelling growth prospects

I don’t know what will happen with inflation in the medium term, but the worst of the increases seems to be over. To me, this means the company’s cost outlook is improving.

In my mind, there will be two things that will help Collins Foods grow in the future.

First, it can keep growing the number of KFC outlets in Australia and Europe, as well as the number of Taco Bells in Australia. Thanks to economies of scale, growing its footprint can increase revenue and hopefully boost profit margins.

Collins Foods is expecting to open between nine to 12 new KFC restaurants in Australia in FY24, as well as another three in the Netherlands in the second half of FY24. It has reached 27 Taco Bells in Australia.

Secondly, I’m hoping the ASX 200 stock can grow its same-store sales – meaning its existing stores make more revenue than the prior year – which would also support profit growth. The growing population in Australia and Europe could help increase demand for each individual existing outlet.

The projection on Commsec suggests it could grow EPS by almost 50% between FY24 and FY26 to 76 cents. That would put the Collins share price at 13x FY26’s estimated earnings, which looks very cheap to me.

Solid dividend yield

I’m impressed by the company’s dividend growth track record, with annual increases every year since 2014.

The last two dividends amount to a grossed-up dividend yield of 3.85%. The profit growth to FY26 could spur big increases in the dividend. In FY26, the annual payout could be 40.5 cents per share, which would be a grossed-up dividend yield of 5.7%.

I think the dividend growth can provide a rewarding ‘real’ return on ownership of the business while waiting for the market to recognise the growth potential of this ASX 200 stock.

The post 1 ASX 200 stock that’s on my buy list this month appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares that look absurdly cheap to me

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

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If you’re not averse to investing in the mining sector and want big returns for your portfolio, then read on.

That’s because analysts at Bell Potter have just put buy ratings on two ASX 300 mining stocks and are tipping potential upside of 25% to 50% from them.

Here’s what the broker is saying about these mining shares:

Develop Global Ltd (ASX: DVP)

Bell Potter believes that this ASX 300 mining stock could deliver big returns for investors over the next 12 months.

This morning, the broker has retained its buy rating on the critical minerals developer’s shares with a reduced price target of $3.30. This implies potential upside of 51% for investors from current levels.

Bell Potter highlights that the company has released its Woodlawn Restart study. The study looked at the resumption of operations at the Woodlawn copper-zinc mine in New South Wales over a 10-year period. Pleasingly, it delivered a pre-tax net present value of $658 million.

The broker is feeling very positive about the restart and notes that it is just one of many projects in the works. Overall, it feels this sets up the company to generate strong medium to long term earnings and free cash flow. It concludes:

DVP is progressing multiple critical mineral projects simultaneously, with each development representing an opportunity to transform the company’s earnings and FCF generation profile. The most advanced of these projects, Woodlawn, is expected to recommence production in 1H CY25; FID and announcement of a financing package are important upcoming catalysts. The Sulphur Springs and Pioneer Dome developments represent medium to long-term opportunities to further grow earnings and FCF.

Regis Resources Ltd (ASX: RRL)

Another ASX 300 mining stock that could be great value according to Bell Potter is gold miner Regis Resources. This follows the release of a costs update from the 100%-owned McPhillamys Gold Project (MGP).

While its costs are forecast to be significantly higher than previous expectations, the higher gold price offsets this disappointment. It commented:

RRL’s update guides to material cost increases compared with our prior assumptions, which included pre-production CAPEX of A$550m and AISC of A$1,440/oz. […] All else being equal, these increases would have had a significant impact on project returns and valuation. However, in the context of the spot gold price (A$3,550/oz) and our latest long-term gold price forecast (~A$3,200/oz) the MGP remains an attractive project. In reflecting the longer-dated development timeline (we had been expecting FID around end FY24) and the higher quantum of funding, we increase our risk-adjustment discount for the MGP. The net result is that our valuation is effectively unchanged.

In light of this, the broker has reiterated its buy rating and $2.60 price target on the ASX 300 mining stock. This suggests potential upside of almost 25% for investors from current levels.

The post These ASX 300 mining stocks could rise 25% to 50% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• The best ASX shares to buy with $1,000 right now
• Here are the top 10 ASX 200 shares today
• Bell Potter names the best ASX 200 shares to buy in April
• Why Imugene, Liontown, Pointsbet, and Regis Resources shares are storming higher

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.

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Wesfarmers Ltd (ASX: WES) shares have been strong performers in 2024.

Since the start of the year, the conglomerate’s shares are up 18%.

This means that a $10,000 investment at the end of last year, would be worth almost $12,000 today.

But are the gains over? Let’s see what analysts at Goldman Sachs are saying about the Bunnings owner.

Are Wesfarmers shares a buy?

The team at Goldman Sachs thinks that there’s room for the company’s shares to keep rising a touch from here.

According to a note out of the investment bank this morning, its analysts have retained their buy rating and lifted their price target to $68.80 (from $66.00).

However, with this price target only marginally ahead of where Wesfarmers’ shares trade now, investors may be better off waiting for a pullback before jumping in.

What is the broker saying?

Goldman believes that the market underappreciates a number of opportunities that Wesfarmers has across its business. It commented:

Our upgrade thesis in Jan was centered around robust growth of the Australian DIY Home Improvement market and continued cost efficiencies driving strong Retail free cash flow for new platform investments. That said, we believe that several corporate wide opportunities remain under-appreciated by the market. These include Digital, Retail Media and the WES Health platform.

In respect to digital, the broker points out that Wesfarmers has a treasure trove of consumer data to leverage thanks to its loyalty programs. It said:

WES has the largest volume of consumer data assets including 63mn monthly retail (1H24) website visits and 14.2mn total loyalty members across Flybuys, Priceline and PowerPass.

Retail Media and Health growth

Goldman sees a lot of potential in the Wesfarmers Retail Media business. In fact, it believes it can become a meaningful earnings contributor by the end of the decade. It explains:

We estimate that Retail Media in Australia will reach ~A$2.7B in FY30e, or 17% of advertising revenue. Dominant scaled players in high frequency and specialty retail categories are most likely to benefit. As an adjacent opportunity to WES’s digital strategy, our blue-sky scenario suggests that Retail Media can add ~1% to WES’s FY30e Retail sales, and ~4% EBIT profit. We value the upside option at ~A$2.0/sh.

Finally, the Wesfarmers Health business is also underappreciated by the market according to Goldman. Particularly given its massive market opportunity. It said:

We continue to believe that the vertical TAM is A$97B with an attractive profit pool of ~A$9B. WES’s existing API assets will benefit from upgraded automated pharmaceutical wholesale DC. We remain confident that the Non-Invasive Aesthetics business could transform the API business towards higher growth and profitability and value WES Health at A$2.0/sh per share.

All in all, the long-term looks very positive for Wesfarmers and its shares.

The post Why Goldman Sachs rates Wesfarmers shares as a buy appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The best ASX buys I’d grab to beat the market without a tonne of risk
• 2 safe ASX dividend shares that have paid income for decades
• Are Wesfarmers shares an ASX bargain buy or overvalued right now?
• Why today is a good day to own Wesfarmers shares

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

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Fortunately for Aussie income investors, there are lots of ASX 200 dividend shares trading on the local share market. But which ones could be buys?

Three that have been given the thumbs up by analysts are listed below. Here’s what sort of dividend yields you can expect from them:

Deterra Royalties Ltd (ASX: DRR)

The first ASX 200 dividend share that analysts are positive on is Deterra Royalties.

It is focused on the management and growth of a portfolio of royalty assets across a range of commodities. Deterra’s existing portfolio includes royalties held over Mining Area C, its cornerstone asset, in the Pilbara region of Western Australia, as well as five smaller royalties including Yoongarillup/Yalyalup, Wonnerup, Eneabba, and St Ives.

The team at Morgan Stanley likes the company and has an overweight rating and $5.65 price target on its shares.

As for income, the broker is forecasting Deterra Royalties to pay fully franked dividends per share of 37 cents in FY 2024 and 34 cents in FY 2025. Based on the current Deterra Royalties share price of $4.76, this will mean yields of 7.8% and 7.1%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that could be a buy is Stockland.

Last month, the team at Morgan Stanley retained its buy rating and $5.10 price target on the shares of Australia’s largest community creator. The broker is feeling positive about the company’s proposed purchase of Lendlease’s communities business and believes it will be earnings accretive if it completes.

In the meantime, Morgan Stanley is expecting dividends per share of 25.7 cents in FY 2024 and 26.5 cents in FY 2025. Based on the current Stockland share price of $4.68, this will mean yields of 5.5% and 5.7% yields, respectively.

Suncorp Group Ltd (ASX: SUN)

Over at Goldman Sachs, its analysts think that the insurance giant could be an ASX 200 dividend share to buy right now.

The broker currently has a buy rating and $17.54 price target on the company’s shares.

It likes Suncorp due to “the tailwinds that exist in the general insurance market.” It highlights that this includes “very strong renewal premium rate increases and the benefit of higher investment yields.”

As for income, the broker is forecasting fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $16.42, this will mean yields of 4.75 and 5%, respectively.

The post 3 ASX 200 dividend shares to buy according to brokers appeared first on The Motley Fool Australia.

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More reading

• Here’s the profit forecast to 2028 for Core Lithium shares
• Forget gold! I’d buy these top ASX shares to beat inflation
• Leading brokers name 3 ASX shares to buy today
• Brokers name 3 ASX shares to buy now
• 3 lower-risk, high-yield ASX dividend shares to consider buying now

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WiseTech Global Ltd (ASX: WTC) shares closed higher on Tuesday, up 0.29% to $91.89 apiece.

ASX tech shares aren’t known for paying dividends because many of them are young growth companies.

This means they typically choose to reinvest all their free cash flow and/or profits into further growth.

But Wisetech is a 30-year old business and also the largest technology share on the ASX.

It began paying dividends back in 2017.

The logistics software provider has a remarkable history of raising its dividends.

Every interim and final dividend — bar the final dividend in the first year of COVID — has been higher than the previous payment.

The latest dividend announced by Wisetech was the interim payment for 1H FY24.

That was a fully-franked 7.7 cents per share dividend, up almost 17% on the 1H FY23 payment of 6.6 cents per share.

This came on the back of a 32% rise in revenue to $500 million and a 23% EBITDA lift to $230 million.

What will the Wisetech dividend be in 2024, 2025 and 2026?

The consensus analyst forecast published on CommSec is for Wisetech shares to pay dividends of 16.4 cents per share this year.

The analysts expect an increase to 22.2 cents in 2025 and 29.1 cents in 2026.

Let’s calculate the dividend yields using yesterday’s closing share price.

A $10,000 budget (minus a brokerage fee of $5) will buy you 108 Wisetech shares at that price.

Total spend = $9,924.12.

If we multiply 108 shares by 16.4 cents, we get a total annual dividend amount of $17.71. That’s a dividend yield of 0.18%.

Yep, tiny.

In 2025, the dividend payment is anticipated to be $23.98. That’s a dividend yield of 0.24%.

In 2026, the dividend payment is tipped to be $31.43. That’s a dividend yield of 0.32%.

Yep, still tiny.

But here’s why you probably don’t care.

Wisetech share price up 297% in 5 years

Here’s a chart showing how the Wisetech share price has grown over the past five years.

As you can see, the tech stock is up a whopping 297%.

Over the past 12 months, Wisetech stock has risen 39%.

Wisetech is predominantly an ASX growth stock. This is why investors buy it. They’re after the potential capital gains.

That’s not to say that Wisetech won’t become a better dividend payer in the future. This will depend on the company’s growth and how its strategy may change over time.

What’s next for Wisetech shares?

E&P Financial Group analysts say Wisetech is one of four ASX shares likely to benefit from the artificial intelligence (AI) boom.

The analysts say Wisetech is likely to benefit from the software side of the AI explosion.

E&P said:

[Wisetech is] extremely well positioned for this trend, with a decent swath of AI capabilities already, and a completely unique data capability to build from.

Fund manager Wilson Asset Management says Wisetech is demonstrating “its ability to integrate its recently-acquired businesses called Blume and Envase, without losing the organic growth momentum.”

The post If I invest $10,000 in Wisetech shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 tech shares to buy now with less than $2,000
• Why are ASX tech shares rebounding strongly on Thursday?
• 3 ASX shares boasting better revenue growth than Tesla
• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Experts name 4 top ASX artificial intelligence shares

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

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a good session and pushed higher. The benchmark index rose 0.45% to 7,824.2 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise

It looks set to be another positive session for the Australian share market on Wednesday following a decent night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher. On Wall Street, the Dow Jones edged slightly lower, the S&P 500 rose 0.15%, and the Nasdaq climbed 0.3%.

Oil prices tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$85.33 a barrel and the Brent crude oil price is down 1% to US$89.50 a barrel. The oil rally ran out of steam overnight after traders decided to take profit following some strong gains.

Gold price breaks new record

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session on Wednesday after the gold price stormed higher again overnight. According to CNBC, the spot gold price is up 0.9% to US$2,371.8 an ounce. The precious metal hit a new record high amid increased buying from central banks and because of geopolitical risks.

Wesfarmers rated as a buy

Goldman Sachs thinks that Wesfarmers Ltd (ASX: WES) shares are a good option for investors. This morning, the broker retained its buy rating and lifted its price target on the conglomerate’s shares to $68.80. Goldman’s analysts “believe that several corporate wide opportunities remain under-appreciated by the market. These include Digital, Retail Media and the WES Health platform.” It highlights that “WES has the largest volume of consumer data assets including 63mn monthly retail (1H24) website visits and 14.2mn total loyalty members across Flybuys, Priceline and PowerPass.”

Dividend payday

A number of ASX 200 shares will be rewarding their shareholders with dividend payments on Wednesday. Among the companies paying dividends are media giant News Corporation (ASX: NWS), private health insurance company NIB Holdings Limited (ASX: NHF), and plumbing parts company Reece Ltd (ASX: REH). The latter will be paying its shareholders a fully franked dividend of 8 cents per share.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Buy Coles and these ASX dividend stocks now
• Buying ASX 200 gold stocks? Here’s why the record gold price could keep charging higher
• How ASX 200 energy stocks could soon enjoy US$100 oil prices
• The best ASX buys I’d grab to beat the market without a tonne of risk

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

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Core Lithium Ltd (ASX: CXO) shares have been under significant pressure over the last 12 months.

For example, since this time last year, the lithium miner’s shares have lost approximately 80% of their value.

This means that if you had invested $20,000 into the company’s shares a year ago, you’d have just $4,000 left today.

Why have Core Lithium shares crashed?

Investors have been scrambling to the exits largely due to falling lithium prices.

Not only has falling prices of the battery making ingredient put a dent in sentiment, but it is hurting the profitability of miners.

In the case of Core Lithium, prices have fallen to such a level that it is uneconomical for the company to continue mining operations.

Earlier this year, the company suspended its mining operations and will instead process stockpiles. But once those run out, it remains unclear what action Core Lithium will take. Though, given that it terminated arrangements with contractors, it seems unlikely that a return to mining operations is on the horizon until there’s a major rebound in lithium prices.

Will lithium prices rebound?

The bad news for Core Lithium and its shares is that Goldman Sachs doesn’t believe prices will rebound in the near future. In fact, it warns that the current surplus of lithium will only get worse in 2025, potentially putting further pressure on the price of the white metal.

As I covered here yesterday, the broker said:

Our global team highlights that the recent rally in lithium prices should not be interpreted as the end of the bear market, where further supply rationing is needed to reduce both the 2024E surplus and now larger surplus in 2025E, with the top end of the integrated cash cost curve dominated by Chinese lepidolite (US$8k-12k/t LCE) and integrated African concentrates (US$7k-13k/t LCE).

Core Lithium profit forecast

In light of the above, you won’t be surprised to learn that the profit forecast for Core Lithium is looking very bleak.

Goldman Sachs is forecasting revenue of $164 million and underlying EBITDA of $16 million in FY 2024.

After which, it expects revenue to come in at just $13 million in FY 2025 with an EBITDA loss of $7 million.

In FY 2026, the broker is forecasting revenue of $34 million and an EBITDA loss of $17 million.

Things then start to look a bit better for Core Lithium, with Goldman predicting revenue of $138 million and EBITDA of $7 million in FY 2027.

Finally, in FY 2028, revenue is forecast to come in at $259 million, with underling EBITDA at a far healthier $74 million.

In summary:

• FY 2024: Revenue of $164 million and EBITDA of $16 million
• FY 2025: Revenue of $13 million and EBITDA loss of $7 million
• FY 2026: Revenue of $34 million and EBITDA loss of $17 million
• FY 2027: Revenue of $138 million and EBITDA of $7 million
• FY 2028: Revenue of $259 million and EBITDA of $74 million

All in all, it looks set to be a couple of years of struggles before there will be any meaningful improvement in its performance.

The post Here’s the profit forecast to 2028 for Core Lithium shares appeared first on The Motley Fool Australia.

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More reading

• Is there any hope for Core Lithium shares?
• Sell these ASX lithium stocks and buy this one instead
• The ASX 200 lithium stock this fundie is backing for the global lithium comeback
• These are the 10 most shorted ASX shares
• 3 lower-risk, high-yield ASX dividend shares to consider buying 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 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.

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Commonwealth Bank of Australia (ASX: CBA) shares are well known for their generosity when it comes to dividend payments.

ASX banks, particularly the big four, have been paying out large and fully franked dividend payments to their investors for decades. At any one time, it’s not uncommon to see one or two of the big four trading on fully-franked dividend yields of over 6%.

Owners of CBA shares have been a lucky group of late. They have collectively seen their wealth balloon over the past four or so months. That’s been thanks to the CBA share price’s rise from around $96 in early November to last month’s record high of $121.54 a share.

At present, the CBA share price remains up a healthy 19.44% over the past 12 months.

But this may be ringing alarm bells for some investors. Perhaps those who would like to top up their CBA share piles. Or even those who wish to participate in the bank’s regular dividend reinvestment plan (DRP).

As any good dividend investor knows, a company’s dividend yield doesn’t just depend on the raw dividends per share that are forked out. It is also a function of that company’s share price.

Any ASX dividend share’s trailing dividend yield is calculated by dividing its raw dividends per share by its share price. So if a company cuts its dividend, the yield is obviously reduced. But it is also reduced if those dividends per share remain the same, but its stock price rises.

Why is the dividend on CBA shares so low?

To illustrate, last year CBA closed October trading at $96.56 a share. At this stock price, CBA’s 2023 total of $4.55 in dividends per share gave the bank a dividend yield of 4.71%. That’s decent, if not spectacular, by ASX banking standards.

However, at last month’s all-time high CBA share price, those same dividends would give the company a new dividend yield of just 3.74%.

Fortunately for CBA investors, the bank did raise its interim dividend for 2024. Investors enjoyed a rise from $2.10 to $2.15 a share. That would boost CBA’s dividend yield at that price to 3.78%.

At the current share price of $119.15 (at the time of writing), our dividend yield is 3.82%.

Now that’s nothing for a normal ASX 200 share to be ashamed of. But it’s certainly very low by ASX bank standards. To illustrate, CBA’s big four sibling ANZ Group Holdings Ltd (ASX: ANZ) shares are presently trading on a yield of 5.95%.

Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS) and Transurban Group (ASX: TCL) all currently have higher yields than CBA. Not to mention the other three major banks.

If a shareholder bought CBA shares years ago at a far better price than what they’re trading at today, they’re probably not too worried. But for any new CBA investors or those that want to add to their positions, this is certainly a consideration to bear in mind.

The post Do CBA shares even pay a good dividend anymore? appeared first on The Motley Fool Australia.

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

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If you are on the lookout for a combination of big returns and great dividend yields, then look no further.

That’s because analysts at Bell Potter believe one ASX 300 stock could deliver both over the next 12 months.

The company in question is Accent Group Ltd (ASX: AX1).

What is Accent Group?

While its name may not be well-known, chances are you will have shopped at one of its many store brands in the past.

Among the ASX 300 stock’s store brands are Article One, Glue Store, Hype DC, Nude Lucy, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot (TAF). It also holds licensing rights for brands such as Hoka, Timberland, Skechers, and Vans.

Why is it an ASX 300 stock to buy?

Bell Potter believes that Accent is well-positioned for growth. It commented:

We remain constructive on AX1 given the scale & exposure in terms of channels, brands & size as the overall industry navigates a challenging retail spend environment in addition to growing a vertical brand strategy (~8% on owned sales) and growth adjacencies within TAF & via exclusive partnerships with globally winning brands as Hoka.

The broker expects this to lead to earnings per share growth of 17.1% in FY 2025 to 15.5 cents and then 24.6% to 19.3 cents in FY 2026. This means that Accent’s shares are changing hands at just 12.5x estimated FY 2025 earnings and 10x estimated FY 2026 earnings.

This is too cheap to ignore according to its analysts, which are tipping major upside potential for investors that buy in at current levels.

Big returns on offer with Accent shares

According to a recent note, the broker has a buy rating and $2.50 price target on the company’s shares.

Based on the current Accent share price of $1.95, this implies potential upside of 28% for investors over the next 12 months.

This means that a $10,000 investment would grow to be worth $12,800 this time next year if Bell Potter is on the money with its recommendation.

But the returns won’t stop there. Accent is among the more generous dividend payers on the Australian share market and Bell Potter doesn’t expect this to change.

Its analysts are forecasting fully franked dividends per share of 13 cents in FY 2024, 14.6 cents in FY 2025, and then 16.4 cents in FY 2026. Based on where the ASX 300 stock currently trades, this would mean dividend yields of 6.65%, 7.5%, and 8.4%, respectively.

And as Accent’s interim dividend has already been paid, you would be looking at a ~7% dividend yield on a 12-month basis (FY24 final and FY25 interim).

Overall, investors buying at current levels could generate a total annual return of approximately 35% if all goes to plan.

The post Buy this ASX 300 stock for a 28% gain and 7% dividend yield appeared first on The Motley Fool Australia.

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

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Investing icon, Steve Eisman, is bullish on a specific segment of the share market. After doing my homework, I think the American investor is onto something. However, I’ve ‘Aussiefied’ the idea, with three ASX shares to buy if Eisman is right again.

The Big Short film is almost a rite of passage for anyone fascinated by the world of investing. Steve Eisman — now managing director at Neuberger Berman — is one investor who successfully shorted the United States housing market.

This time, Eisman is buying in an industry that rarely gets attention.

Big Short’s Eisman eyes ‘turbocharged’ theme

Speaking on the Bloomberg Odd Lots podcast, Eisman discussed where he sees an opportunity to make money in the current market.

Eisman described the investing landscape, asserting: “There are three, I think, great stories of our time right now, and those are: AI and everything having to do with it; infrastructure, and crypto. I believe in the first two, and I don’t believe in the third.”

The conservation then focused on infrastructure, where the famed investor outlined four themes for boosting the industry over a decade, these being:

• Onshoring i.e. local manufacturing: A consequence of the pandemic supply chain disruptions
• Data centres: Increased electricity and cooling demand from more powerful GPUs
• Grid improvement: Growing pressure on utility network from electrification
• Greenification: The shift towards more renewable energy

As Eisman puts it, these factors are then ‘turbocharged’ by the prolonged infrastructure policy drought, which is now being remedied by roughly US$1.2 trillion in government spending across the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).

In the podcast, Eisman says he’s widdled his list for infrastructure investments down to about 80 — only 30 of which are ‘very, very interesting’. Two companies mentioned but not held by Eisman include Eaton Corporation PLC (NYSE: ETN) and CRH PLC (NYSE: CRH).

Which ASX shares to buy

Don’t worry, I don’t have a list of 30 companies. Instead, I think three locally-listed businesses could capitalise on increased infrastructure development. Let’s hit this rapid-fire style — the company and my reason.

James Hardie Industries Plc (ASX: JHX)

The Dublin-headquartered building materials company has a local manufacturing presence in the United States, which could put it on the front foot as customers reduce their reliance on foreign suppliers. Furthermore, developed countries are contending with a housing shortage, generating a sizeable need for building materials.

Monadelphous Group Ltd (ASX: MND)

Monadelphous is a $1.3 billion construction engineering company featured in the S&P/ASX 200 Index (ASX: XJO). The company is well known for its contracted construction and maintenance work within the mining sector. However, Monadelphous is expanding into renewable developments, such as Tilt Renewable’s Latrobe Valley Battery Energy Storage System.

IPD Group Ltd (ASX: IPG)

A small-cap ASX share to buy, in my view, is IPD Group. This business is a central source for a wide range of electrical products. In its first half FY24 presentation, the company noted that 44% of its revenue came from commercial construction, 14% from infrastructure/industrial applications, and 5% from data centres.

The post 3 essential ASX shares to buy for ‘Big Short’ legend’s next pick appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Ipd Group. The Motley Fool Australia has recommended Ipd Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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