Tag: Motley Fool

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is a high-quality exchange-traded fund (ETF) investment choice, in my opinion. I think it would make a good pick for nearly everyone’s portfolio.

For readers that don’t know what this ASX-listed ETF does, Vanguard describes it as the following:

The ETF provides exposure to many of the world’s largest companies listed in major developed countries. It offers low-cost access to a broadly diversified range of securities that allows investors to participate in the long-term growth potential of international economies outside Australia.

With how it’s set up, it would be suitable for a lot of investors, in my opinion.

Great diversification and strong positions

The ETF is invested in 1,433 businesses across the world.

There are numerous geographic markets with an allocation of at least 0.4%: the US (71.5%), Japan (6.4%), the UK (4%), France (3.3%), Canada (3.3%), Switzerland (2.7%), Germany (2.3%), the Netherlands (1.3%), Denmark (0.9%), Sweden (0.8%), Spain (0.7%), Italy (0.7%), Hong Kong (0.5%) and Singapore (0.4%).  

It offers so much diversification that I think this could be used by Aussies as the only way they access the global share market.

The most significant weightings are with incredibly strong tech businesses that have appealing growth potential such as Apple, Microsoft, Alphabet, NVIDIA, Amazon.com, Meta Platforms and Tesla. It’s exciting to think what these investments can achieve in the next five and ten years.

We can’t know which shares are going to perform the best in the short-term or the long-term, but I think the VGS ETF is well-placed to be invested in solid businesses.

Solid returns

Past performance is not indicative of future performance, but I think the biggest global businesses as a group have the capability to continue to produce good profits and re-invest retained money into more opportunities for a good return within the business (and/or make acquisitions).

Since the Vanguard MSCI Index International Shares ETF started in November 2014, it has delivered an average return per annum of 12.4%.

VGS ETF has low management fees

It makes solid returns and I think the costs are very reasonable considering how much diversification we get from just one investment.

The VGS ETF has an annual management fee of 0.18%, which is one of the cheapest ways for Aussies to get global diversification via the ASX.

It’s possible that Vanguard may be able to reduce management fees over time.

Can provide cash flow for income-focused investors

I mentioned that the VGS ETF could work for almost anyone. Its passive income is low in a world where interest rates are higher and savings accounts offer a pleasing return now.

According to Vanguard, it has a dividend yield of 1.9%. That’s not very exciting.

But, with the ASX ETF’s long-term returns, we could decide to sell some of it each year to create a cash flow.

Imagine starting with a $50,000 balance and it rises by 10% over a year. If someone decided to create a 5% ‘dividend yield’ of the original $50,000 balance, it would unlock $2,500 of cash flow. This would leave the VGS ETF balance at $52,500 to compound again next year.

I think the VGS ETF can tick the box for people looking for both growth and income.

The post Why Vanguard MSCI Index International Shares ETF (VGS) is a great buy for almost anyone appeared first on The Motley Fool Australia.

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More reading

• 3 excellent ASX ETFs to buy in March
• How to build a second retirement fund outside of superannuation
• 4 ASX ETFs to supercharge your wealth
• 3 ASX ETFs for smart investors to buy
• 4 ASX ETFs to supercharge your portfolio in February

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Vanguard Msci Index International Shares ETF. 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 want to receive the next Super Retail Group Ltd (ASX: SUL) dividend, then you will need to get a wriggle on.

That’s because the ex-dividend date for the retailer’s shares is rapidly approaching.

And once that day is here, the rights to the dividend will be settled and it will be too late to receive it.

The Super Retail dividend

As a reminder, last month Super Retail released its half-year results.

The BCF, Macpac, and Supercheap Auto owner reported a 3% lift in sales to $2 billion but a 6% decline in normalised net profit after tax to $145 million.

This profit decline was driven largely by an increase in its cost of doing business (CODB) as a percentage of sales due to the impact of inflation on wages, rent, and electricity.

In light of its softer profits, the Super Retail board was forced to cut its fully franked interim dividend by 5.9% to 32 cents per share. This was in line with its dividend policy of paying out between 55% and 65% of underlying net profit after tax to shareholders in fully franked dividends.

And based on the current Super Retail share price of $15.84, this represents an attractive 2% dividend yield for investors.

When is pay day?

Shareholders won’t have to wait too long to receive this distribution, with the company scheduled to make its payment next month on 12 April.

If you wish to receive this dividend on pay day, you will need to pick up shares today before the market close. That’s because its shares trade ex-dividend on Wednesday.

The team at Morgans thinks it would be a good idea. Particularly given its belief that a special dividend is coming in the second half.

Its analysts have an add rating and $17.50 price target on Super Retail’s shares and are forecasting total dividends of 96 cents per share in FY 2024. The latter represents a 6% dividend yield.

The post Move quickly if you want to receive the Super Retail dividend appeared first on The Motley Fool Australia.

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More reading

• 34 ASX 200 shares with ex-dividend dates next week
• How I’d invest $250 a month in ASX dividend shares to target a $24,000 annual second income
• Morgans says these ASX shares are buys (with special dividends to come)
• Here are 3 ASX retail shares moving up to 19% on half-year results today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Super Retail 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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DroneShield Ltd (ASX: DRO) shares have been having a tough time in recent sessions.

After being downgraded by analysts at Bell Potter last week on valuation grounds, the high-flying counter drone technology company’s shares have shed significant value.

Well, the good news for shareholders is that the very same broker has now decided to upgrade its shares.

DroneShield shares upgraded

According to a note out of Bell Potter this morning, its analysts have upgraded the company’s shares to a buy rating with a 90 cents price target.

Based on the current DroneShield share price of 61.5 cents, this implies potential upside of 46% for investors.

The broker explained that it made the move following the recent pullback. It said:

We make no changes to our forecasts in this update, however with the share price retracing some of its recent gains, we see an opportunity to reinstate our BUY recommendation. DRO is now a profitable growth company providing exposure to relevant investment trends, including rising defence expenditure globally, the increasing risk of drones and the role of AI/ML technology. With the company’s strong financial position, detailed sales pipeline and the current macro environment, we are confident the company will continue to grow its earnings in 2024.

Bell Potter also spoke positively about the company’s sales outlook. It adds:

The company recently provided the most detailed insight into its ever-growing sales pipeline, which currently stands at $388m for CY24 and $510m in total. This includes 34 projects, estimated at ~$86m in value, where the “customer has advised they are placing order with DRO,” however no contract has been awarded at this stage.

DRO’s confidence in the sales pipeline is reflected in its recent investment (committed supply chain payments of $30m) in its inventory balance, which we view as a leading indicator of near-term sales announcements.

DroneShield shares remain up 62% over the last 12 months.

The post Why this leading broker just upgraded DroneShield shares appeared first on The Motley Fool Australia.

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More reading

• Why Australian Finance Group, Chalice, DroneShield, and ResMed are sinking today
• Why is the high-flying DroneShield share price crashing 20% today?
• Why APM, DroneShield, EOS, and NextDC shares are charging higher
• DroneShield share price flying 13% on first profitable year
• How has the DroneShield share price gained 90% in a month?

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 DroneShield. 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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It could be another good day for gold miners Evolution Mining Ltd (ASX: EVN), Newmont Corporation (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price charged to a record high.

According to CNBC, gold futures settled at the highest level ever on Monday after traders bet that the US Federal Reserve will start cutting interest rates in the second half of 2024.

The gold futures contract for April gained 1.46% or US$30.60 to settle at US$2,126.30. This is the highest level since the contract’s creation all the way back in 1974.

Gold price hits record on rate cut hopes

Traders have been bidding the gold price higher since the release of US personal consumption expenditures (PCE) inflation data last week which was in-line with the market’s expectations.

As the PCE data is the US Federal Reserve’s preferred inflation gauge, traders believe it is only a matter of time until rates are lowered. In fact, it could be just three months away, with some traders betting on the first cut happening in June.

Which gold miners are buys?

There are plenty of ways for investors to gain exposure to the sky-high gold price.

For example, the team at Macquarie thinks that Evolution Mining is a great option for investors. Last month, the broker put an outperform rating and $3.80 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.

In addition, the broker has outperform ratings on Northern Star and Newmont shares with price targets of $16.00 and $67.00, respectively. These price targets suggest very attractive potential upside of ~17% and ~38% from current levels.

The post The gold price just reached its highest level ever: which miners are buys? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright
• Guess which are the 2 newest members of the ASX 100 index
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie 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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BHP Group Ltd (ASX: BHP) is the biggest business in Australia, with a market capitalisation of $223 billion. I think, one day, it might not be the biggest S&P/ASX 200 Index (ASX: XJO) share, depending on how things go.

For starters, the company’s profit and valuation are heavily influenced by commodities. It’s possible that BHP’s market cap could decline further if the iron ore price or copper price falls heavily.

It’s possible that the emergence of large iron mines in Africa could push down on the iron ore price.

Of course, the BHP share price could keep rising and it’s possible that no ASX 200 share can catch up.

But, if things go well, I believe that at least one (and perhaps all) of the below ASX 200 shares could become larger than BHP.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank has a market capitalisation of $195 billion according to the ASX. It only needs to rise by 15% to become larger than BHP, or a mixture of CBA rising and BHP falling.

The ASX 200 share has grown its loan book over time, which is increasing the company’s profit potential.

It’s making a concerted push into business lending, where its market share isn’t as strong as lending to households. I think this could be the driver of the CBA share price in the shorter term if it is to somehow become bigger than BHP in the next couple of years.

Macquarie Group Ltd (ASX: MQG)

Macquarie has a market capitalisation of $75 billion according to the ASX. This is a lot smaller than BHP, but I think it has demonstrated a good compound annual growth rate (CAGR) of earnings over the past several years to get to where it is today.

Over the last 10 years, the Macquarie share price has risen by roughly 240%. In the first half of FY14, it made A$1.50 of earnings per share (EPS), in the FY24 first half result it made $3.66 of EPS and in HY23 it made $5.85 of EPS.

HY23’s EPS was 290% higher than HY14 and HY24’s EPS was 140% more.

Over time, Macquarie is building its business to generate more profit and justify a higher share price.

I think the ASX 200 share can continue to scale its divisions – particularly banking and financial services (BFS) in Australia – which can lead to growing earnings and a rising Macquarie share price.

While it will likely take many years, I think if it can continue to grow globally, it can eventually overtake BHP.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has a market capitalisation of $75.6 billion, so it’s also currently a fraction of the size of BHP.

The company is responsible for retailers like Bunnings, Kmart, Officeworks, Priceline, Catch, Target and a number of chemical, energy, fertiliser and industrial businesses.

In the past five years, the Wesfarmers share price has risen by around 90%. The divestment of Coles Group Ltd (ASX: COL) near the end of 2018 makes it challenging to compare Wesfarmers now to Wesfarmers in 2017 and further back.

The ASX 200 share has done a great job of growing the Bunnings and Kmart businesses, expanding the product ranges and growing digital sales.

Wesfarmers continues to make helpful bolt-on acquisitions, such as InstantScripts, Silk Laser Australia and Beaumont Tiles, which expand the capabilities and growth potential of its existing segments.

The business is expanding into lithium mining and lithium processing, which will add another earnings stream for Wesfarmers and diversify profit more.

As Australia’s population keeps growing, this increases the potential customer base for its various companies.

I believe in the company’s long-term potential to keep growing and buying businesses that can help growth of the Wesfarmers share price over the long term.

The post 3 ASX 200 shares I think could grow to be bigger than BHP one day appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• It’s not too late to buy these 2 rocketing ASX 200 stocks
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• CBA shares rally to new record high. Is $196 billion too much for this banking giant?
• Want the next BHP dividend? You don’t have long to act

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, 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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If you’re not a fan of stock picking but want to build a passive income portfolio, then exchange-traded funds (ETFs) are here to save the day.

They provide investors with a large number of shares through a single investment. This makes them a great way to diversify a portfolio swiftly.

But which ASX ETFs might be great options for income investors in March? Three to look at are named below:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first option for income investors to consider buying is the BetaShares S&P 500 Yield Maximiser.

It is an actively managed fund that provides investors with access to the top 500 companies listed on Wall Street’s S&P 500 index. It uses a covered call strategy to target quarterly income that is significantly greater than the dividend yield of the underlying share portfolio.

It is thanks to this strategy that its units currently trade with a 5.1% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF for passive income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular ETF offers investors low-cost exposure to a group of 70+ ASX shares that analysts are forecasting to have larger than average dividend yields. This includes all the well-known big dividend payers such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), as well as smaller names like Dicker Data Ltd (ASX: DDR) and Super Retail Group Ltd (ASX: SUL) and

The Vanguard Australian Shares Index ETF currently trades with a trailing dividend yield of 5.1%.

Vanguard Australian Shares Index ETF (ASX: VAS)

A final ASX ETF for income investors to look at is the Vanguard Australian Shares Index ETF.

It is a low-cost index-based exchange traded fund that aims to track the ASX 300 index. This means that you will be snapping up a portion of Australia’s leading 300 listed companies. Among this diverse group of shares are the likes of Lovisa Holdings Ltd (ASX: LOV), Macquarie Group Ltd (ASX: MQG), and Woodside Energy Group Ltd (ASX: WDS).

At present, it trades with a dividend yield of 3.9%.

The post Buy these ASX ETFs for easy passive income appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy another ASX ETF over the Vanguard Australian Shares Index ETF (VAS)
• 3 excellent ASX ETFs to buy in March
• 14% in 4 months: How has the Vanguard Australian Shares ETF (VAS) managed it?
• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?
• A once-in-a-decade chance to get rich from ASX 200 shares?

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data, Lovisa, and Macquarie Group. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund, Dicker Data, Macquarie Group, and Super Retail Group. The Motley Fool Australia has recommended Lovisa and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are some S&P/ASX 200 Index (ASX: XJO) stocks that have been household names for Australian portfolios for many years.

But even those ‘old reliables’ have tough times and their journey is not perfectly linear.

Here are two longtime favourites that are in a dip at the moment, which long-term investors might like to take advantage of:

Revenue up, costs down: a simple equation

Thankfully, the market has now largely put its anxieties about Ozempic and other GLP-1 drugs in the past in their assessment of sleep apnoea device maker Resmed CDI (ASX: RMD).

However, after a boom January, the stock has now dived 8.7% in the past month.

Ord Minnett senior investment advisor Tony Paterno is urging long-term investors to look past this downturn to pounce.

“The company lifted revenue by 11% on a constant currency basis in the second quarter of fiscal year 2024 when compared to the prior corresponding period,” Paterno told The Bull.

“We also anticipate margin expansion as ResMed’s sales mix shifts to higher margin masks.”

He feels ResMed is doing all the right things to boost margins.

“The firm reduced its global workforce by 5% in October 2023.

“The share price has recovered some of its substantial falls in the second half of fiscal year 2023, but has drifted recently to provide a cheaper entry point.”

Encouraging signs for famous ASX 200 brand

Just as Telstra Group Ltd (ASX: TLS) looked buoyant in the middle of last year, it all came back tumbling down again.

The share price for the telco giant is down around 11% since the August reporting season.

Paterno thought the February update was encouraging.

“We view a 3% increase in underlying EBITDA to $4 billion in the first half of fiscal year 2024 as a positive result for this telecommunications giant,” he said.

“Mobile EBITDA is on track to surpass $5 billion in fiscal year 2024, a remarkable turnaround from just above $3 billion less than four years ago.”

Telstra shares have been annoying for investors in recent times, rising just 19% over the past half-decade.

Paterno acknowledges there are external factors that the company cannot control.

“We believe there’s little management can do regarding structural pressures affecting fixed-line businesses. But it can recalibrate its costs.

“EBITDA margins are now approaching 48% compared with just 31% in fiscal year 2020.”

The post 2 classic ASX 200 shares you can buy for cheap now to hold for years appeared first on The Motley Fool Australia.

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More reading

• Got $5,000? Buy and hold these ASX value stocks for years
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Buy Telstra and these ASX dividend shares next week
• 5 ASX 200 shares that boosted their dividends this earnings season
• These ASX 200 shares could rise 20% to 50%

Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed 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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The ASX energy share AGL Energy Ltd (ASX: AGL) is a leading ASX utilities stock, but there’s another one that could be even better, particularly for dividends.

Utility businesses can provide defensive earnings and a decent dividend yield. Households and businesses need energy – what AGL provides is an essential service.

But, some of AGL’s profit is dependent on energy prices, which can be unpredictable. Decarbonisation is a big opportunity for many businesses to tap into, but it’s complicated for AGL. Its old coal power plants are going to be turned off, cutting off an earnings generator for the company.

AGL needs to invest heavily in renewable energy generation for the transition, which means a lot of capital. There’s also the challenge that many households are installing solar panels on the roof. That’s reducing some of the demand for AGL’s energy.

There’s one ASX utilities stock that I think could be a better choice to buy: Duxton Water Ltd (ASX: D2O). It’s a business that owns water entitlements and leases them to agricultural operators on a short-term or long-term basis.

Growing dividends

Owners of AGL shares have seen a big decline in the dividend compared to FY19.

Duxton Water paid a dividend per share of 2.3 cents in November 2017, 2.4 cents in April 2018, 2.5 cents per share in September 2018 and so on. It has grown its dividend every six months since 2017. The latest declared half-year dividend was 3.6 cents per share.

The company has guided that it’s targeting a half-year dividend payment of 3.7 cents per share next. This means the two dividends to be paid during the 2024 calendar year will amount to 7.3 cents per share, which translates into a grossed-up dividend yield of 7.1%.

Useful tailwinds for the ASX utilities stock

According to Duxton Water, the government has introduced an act to support the recovery of water for the environment until 31 December 2027, while also removing the legislative cap on buybacks so that the government can conduct further entitlement share buybacks over the next four years to fulfil the Murray Darling Basin (MDB) plan’s remaining targets.

The government has committed to delivering 450 gigalitres of additional environmental outcomes with the current shortfall of 242 GL.

There’s also the growing number of permanent crops, such as almonds, being planted in Australia that have higher water needs. These farms may be willing to pay more for water entitlements.

Good time to buy?

We can look at water as a commodity, which is affected by the supply and demand cycle just like other resources.

When it rains more, there’s more water supply and less demand by farmers. When it’s dry there is less water supplied and more demand from farmers.

In my mind, it’s a good time to invest in this ASX utilities stock during La Nina (wetter periods) and when the dam storage levels are high, because that’s when water prices and the Duxton Water share price may be lower. I’d be patient to invest in the middle of El Nino when water prices are higher.

The last few years have been wet, and the dam storages are high. The Duxton Water share price is relatively low right now.

But, La Nina has changed into El Nino.

At the end of January, MDB storages were at 85% capacity. The northern basin storages were at 69%, while southern basin storages were at 88%. At the same time last year, northern and southern basin storages were at 95% and 98% respectively.

If Duxton Water sounds like an interesting investment, I think this could be a good time to look at it, particularly with the prospect of falling interest rates.

The post Forget AGL: Buy this magnificent ASX utilities stock instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Duxton Water. 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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Are you looking for ASX dividend shares to buy? If you are, it could be worth checking out the three listed below.

They have all been named as buys by analysts at Goldman Sachs following their results releases last month. Here’s what you need to know:

Endeavour Group Ltd (ASX: EDV)

The first ASX dividend share that its analysts are bullish on is Endeavour. It is the drinks giant behind BWS and Dan Murphy’s.

Goldman Sachs feels its valuation is attractive given its “clear market leading position.” It has a buy rating and $6.20 price target on the company’s shares.

As for income, the broker is forecasting fully franked dividends of approximately 22 cents per share in FY 2024 and FY 2025. Based on the current Endeavour share price of $5.37, this will mean dividend yields of 4.1% for both years.

Suncorp Group Ltd (ASX: SUN)

Insurance giant Suncorp could be another good option for income investors according to Goldman.

The broker has a buy rating and $16.25 price target on the company’s shares.

As for dividends, Goldman is forecasting fully franked dividends per share of 77 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $15.36, this will mean yields of 5% and 5.3%, respectively.

Woolworths Limited (ASX: WOW)

A final ASX dividend share that has been named as a buy is Woolworths Group. It is the retail giant behind the Woolworths supermarkets and Big W brands.

Goldman remains very positive on the company and has it on its APAC conviction list. This is due to its belief that it can win market share from its omni-channel advantage and loyalty program.

The broker currently has a conviction buy rating and $40.40 price target on Woolworths shares.

In respect to dividends, Goldman is forecasting fully franked dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025. Based on the current Woolworths share price of $32.68, this will mean yields of 3.3% and 3.6%, respectively.

The post Buy Woolworths and these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
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Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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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I regularly like to invest in ASX shares that can offer solid long-term returns. Sometimes my investing is aimed at ASX growth shares, and sometimes I choose ASX dividend shares.

I like the cash flow provided by ASX dividend shares, particularly ones with regularly growing dividends or ones with (resilient) high yields.

In this article, I’m going to cover two ASX shares I recently bought, one with a high yield and one with a regularly-growing payout.  

Metcash Ltd (ASX: MTS)

Metcash supplies food to IGA supermarkets and liquor to a large number of retailers including Thirsty Camel, Big Bargain Bottleshop, Duncans, Cellarbrations, The Bottle-O, IGA Liquor and Porters Liquor. It also has a hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

The business is currently raising capital to pay for some acquisitions, which I like the look of.

I like the businesses it’s buying with the cash. One acquisition is Superior Food, a business to business (B2B) food supply company, which is a “logical extension” of the ASX share’s food strategy. Food service is described as a large and growing market.

Metcash is also buying Bianco Construction Supplies, a construction and industrial supplies business servicing the South Australia and Northern Territory trade market.

The final business it’s buying is Alpine Truss, one of the largest frame and truss operators in Australia.

I decided to take part in the capital raising to increase my holding at a price I liked, which is $3.35 per share, a 10% discount to the current Metcash share price. At this level, the FY24 forecast dividend per share (on Commsec) translates into a grossed-up dividend yield of 8.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I like to regularly invest in Soul Pattinson shares. It offers diversification with a portfolio across a number of different sectors including telecommunications, resources, financial services, agriculture, swimming schools, property, bonds/credit and many more.

The ASX share uses the investment cash flow it receives to pay a growing dividend to investors. It has increased its annual ordinary dividend every year since 2000.

It’s steadily investing its excess cash flow into more investment opportunities, which can help the cash flow, portfolio value and dividends of Soul Pattinson in the future.

I like this one a lot because it’s steadily building the underlying value, which is helping my wealth.

The post 2 ASX shares I’ve been buying! appeared first on The Motley Fool Australia.

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More reading

• Should you buy this ASX 200 stock for its 5%+ dividend yield?
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• If I were entering retirement tomorrow, I’d buy these ASX shares
• The ASX shares I’m buying for a stress-free retirement
• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?

Motley Fool contributor Tristan Harrison has positions in Metcash and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. 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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