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For just $2,000, you can start an investment portfolio that will pay you a flow of passive income.

Moreover, you could cash in a chunky dividend yield of 11%.

Don’t believe me? Check this out.

Reduced dividend, but still 11.9% yield

In recent times, Yancoal Australia Ltd (ASX: YAL) has developed a reputation as one of the largest dividend payers on the ASX.

The coal mining outfit, however, last month downgraded its latest distribution.

The 32.5-cent final dividend due to be paid in April is less than half the 70 cents paid at the same time last year.

However, the yield still stands at an amazing 11.9%, fully franked no less.

While the coal market can be notoriously cyclical, Yancoal has done all it can under its control by improving production in each successive quarter in 2023.

“We expect to carry this operational momentum into 2024,” said chief executive David Moult during reporting season.

“The group is in a robust financial position, with no external loans, $1.8 billion of franking credits available, and a net cash balance that we expect will increase each month.”

It’s no wonder all four analysts covering the stock are rating it as a buy, as shown on CMC Invest.

Passive income machine

Metrics Income Opportunities Trust (ASX: MOT) is not widely discussed in the financial press, but it has been going about its business with aplomb the last five years.

In fact, ever since its recovery from the COVID-19 crash, the trust has managed to maintain its share price without much volatility, all while paying out a monthly dividend.

Yes, you read that right. It pays an income each calendar month.

Right now, the last 12 payouts are equating to an unfranked yield of 9.2%.

While there is some criticism of the opaque nature of its unlisted investments in “private credit and other assets”, its track record can’t be denied.

Grab the cash now, or later

So at current prices, you could buy 456 shares in Metrics Income Opportunities Trust for $1,000 and 171 Yancoal shares with the other grand.

And with a combined yield of 10.55%, that’s $211 of annual passive income from an outlay of just $2,000.

That will pay for a nice birthday present for your spouse, the car registration, or your mobile phone plan each year.

However, if you reinvest the returns and add a further $200 to the portfolio each month, you could be really raking it in after a little while.

Ten years of such restraint, assisted by monthly compounding, will see the nest egg grow to more than $48,000. And that’s just from dividend income, not counting capital gains.

From then on, if you stop reinvesting the 10.55% yield, you have yourself $5,064 in your pocket every year.

The post $2k buys me 627 shares in 2 ASX passive income shares yielding 11% combined appeared first on The Motley Fool Australia.

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More reading

• I’d target a $1,000 passive income from $10k with this ASX high yielder

Motley Fool contributor Tony Yoo 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) stock and JB Hi-Fi Ltd (ASX: JBH) stock are appealing investments as ASX blue-chip shares. They are what I’d call category leaders.

In my eyes, JB Hi-Fi (including The Good Guys) is the leading electronics retailer in Australia. Wesfarmers owns Bunnings, Kmart and Officeworks, which I think are the leading retailers in their respective areas in Australia.

I’d be happy if I were already a long-term shareholder of either business after the share price rallies in the last few months.

Dividend yield

Aussie investors get the benefit of franking credits, which really supercharges the dividend income that we receive.

I think both Wesfarmers stock and JB Hi-Fi stock are good choices for dividends. They have a history of regularly growing the dividend, though that’s not certain every year.

For FY24 and FY25, Wesfarmers is expected to pay a grossed-up dividend yield of 4.2% and 4.6% respectively, according to Commsec.

Looking at JB Hi-Fi, it’s predicted to pay grossed-up dividend yields of 6% in FY24 and 6.1% in FY25.

On the passive income side of things, JB Hi-Fi wins on the size of the yield.

Valuation

I think a key reason why the dividend yield is noticeably lower at Wesfarmers is because its price/earnings (P/E) ratio is quite a bit higher.

They are different businesses, so I wouldn’t expect them to trade on the same P/E ratio, but I think it can be informative to know how much you’re paying for how much profit they’re making and expected to make.

JB Hi-Fi’s profit is expected to materially drop in FY24 amid the weak retailing conditions caused by higher interest rates and inflation. Even so, the projected earnings per share (EPS) of $3.84 for FY24 would put it on a forward P/E ratio of under 16, according to the Commsec numbers. EPS could then rise slightly in FY25 and FY26.

Wesfarmers, on the other hand, is expecting to see its EPS rise slightly in FY24 and FY25. A potential EPS of $2.23 puts the Wesfarmers stock price at around 30 times FY24’s estimated earnings.

Business diversification

JB Hi-Fi has three different businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand and The Good Guys.

Wesfarmers has many more businesses – Bunnings, Kmart, Officeworks, Priceline (and other healthcare businesses), Catch, Target, the Wesfarmers chemicals, energy and fertiliser (WesCEF) division, and the industrial and safety businesses.

The Wesfarmers business is much more diversified across a variety of sectors. Management also has the flexibility to invest in new businesses via acquisitions. Some of its latest buys were in the healthcare sector, including InstantScripts and Silk Laser Australia.

Foolish takeaway

Wesfarmers stock is more attractive to me for the long term because of its ability to grow and change the business portfolio over time. Its diversification can help over the long term, particularly if the retail environment changes as a greater proportion of shopping is done online.  

The post Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares that boosted their dividends this earnings season
• How much will Wesfarmers shares pay you in dividends in 2024?
• This is the ASX blue-chip share I’d buy for dividend income
• The Wesfarmers share price is rising again. Should I buy the stock now?
• Wesfarmers shares walk back from 52-week highs without dividend

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. 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 plenty of ASX 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:

Stockland Corporation Ltd (ASX: SGP)

The first ASX dividend share that could be a top buy this month is Stockland.

That’s the view of analysts at Citi, which currently have a buy rating and $5.00 price target on Australia’s largest community creator.

In respect to income, Citi is expecting dividends per share of 26.2 cents in FY 2024 and 26.6 cents in FY 2025. Based on the current Stockland share price of $4.56, this will mean yields of 7.3% and 8% yields, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that analysts rate as a buy is telco giant Telstra.

Goldman Sachs is also a fan of Telstra and has a buy and $4.55 price target on its shares. It likes the company’s low risk earnings and dividend growth over the coming years.

As for dividends, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.81, this equates to fully franked yields of 4.7% and 5%, respectively.

Woodside Energy Group Ltd (ASX: WDS)

A final ASX dividend share that analysts rate highly is Woodside Energy.

A recent note out of Morgans shows that its analysts have an add rating and $34.20 price target on its shares.

The broker is also expecting some attractive dividend yields in the near term. It is forecasting the energy giant to pay fully franked dividends of $1.36 per share in FY 2024 and $1.12 per share in FY 2025. Based on the current Woodside share price of $30.85, this equates to 4.4% and 3.6% dividend yields, respectively, for investors.

The post Buy Telstra and these ASX dividend shares next week appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares that boosted their dividends this earnings season
• How are these passive income investors still earning a 14% dividend yield on Woodside shares?
• 34 ASX 200 shares with ex-dividend dates next week
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 200 shares just scored significant broker upgrades. Here’s how

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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. The Motley Fool Australia has positions in and has recommended 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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ASX earnings (and dividend) season is gently rolling towards its inevitable conclusion now that we’ve entered March.

We still have some ASX 200 stragglers that still have to report their latest earnings, but we’ve now heard from most of the big dogs on the Australian share market.

That means we’ve also got a good idea of the ASX dividends that many of these shares will be paying out over the coming month or two.

So today, let’s discuss five ASX 200 shares that offered a significant boost for their shareholders when it come to dividends this earnings season.

5 ASX 200 shares that upped their dividends this earnings season

Commonwealth Bank of Australia (ASX: CBA)

First up is one of the most anticipated dividend payers on the ASX in CBA. The bank is one of the most widely held stocks in the country. As such, its dividend announcements are usually a setpiece — and mood-setter — of earnings season.

This February, CBA announced that its interim dividend for 2024 would be worth $2.15 per share, fully franked of course. That represented a rather mild 2.38% rise over last year’s interim dividend of $2.10 per share.

But a rise is a rise, so here CBA is. As of Friday’s close, this ASX bank had a trailing dividend yield of 3.88%.

Wesfarmers Ltd (ASX: WES)

Next up, we have another popular ASX 200 blue-chip in Wesfarmers. The Bunnings, Kmart and OfficeWorks owner also had some good news in store for shareholders last month.

Wesfarmers revealed an interim dividend of 91 cents per share for investors fully franked. That’s a 3.41% rise over the interim dividend of 88 cents per share shareholders bagged in 2023.

Wesfarmers currently offers a dividend yield of 2.92%.

Telstra Group Ltd (ASX: TLS)

Telstra is yet another income favourite for ASX dividend investors. The telco didn’t fail to reward this reputation last month, declaring that its interim dividend for this year would be worth a fully-franked 9 cents per share.

That’s a 5.88% hike from the 8.5 cents investors received this time last year.

Telstra stock last traded on a dividend yield of 4.59%.

Transurban Group (ASX: TCL)

Toll road operator Transurban was another delight for ASX dividend investors this earnings season. The company paid out its interim dividend of 30 cents per share (unfranked as usual).

That was a significant 13.2% increase over the 26.5 cents investors bagged in February 2023.

As of Friday’s closing share price, Transurban was commanding a dividend yield of 4.56%.

WiseTech Global Ltd (ASX: WTC)

Finally, let’s discuss ASX tech stock Wisetech Global. Wisetech has established an enviable streak of dividend pay rises over the past few years, which we discussed last month.

The company’s latest earnings contained the revelation that Wisetech’s next interim dividend would be worth 7.7 cents per share, fully franked.

That’s a whopping 17% rise over the 6.6 cents per share investors banked last year. Even so, Wisetech’s recent share price gains mean the company offers a relatively small dividend yield of just 0.17% at last pricing.

The post 5 ASX 200 shares that boosted their dividends this earnings season appeared first on The Motley Fool Australia.

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More reading

• 6 ASX shares to buy and hold until the next leap year
• 3 things about CBA stock every smart investor knows
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• 34 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group, Wesfarmers, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Telstra Group, Wesfarmers, and 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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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Citi, its analysts have retained their buy rating on this supermarket giant’s shares with an improved price target of $19.00. Citi was happy with the company’s performance during the first half. Pleasingly, it believes it has more levers to pull to improve profitability and is forecasting earnings growth comfortably ahead of expectations in FY 2025. The Coles share price ended the week at $17.08.

Pro Medicus Limited (ASX: PME)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $120.00 price target on this health imaging technology company’s shares. Macquarie believes that recent share price weakness has created an opening for investors. Particularly given how its shares are now trading on multiples that are largely in line with five-year averages. The Pro Medicus share price was fetching $103.39 at Friday’s close.

Xero Ltd (ASX: XRO)

Analysts at Goldman Sachs have retained their buy rating on this cloud accounting platform provider’s shares with an increased price target of $152.00. According to the note, Goldman left Xero’s investor day event feeling very bullish on its outlook. It notes that Xero is increasingly positive on its financial outlook and has upgraded its use of the Rule of 40. It has gone from a calling the rule a useful measure to a formal aspiration. The Xero share price ended the week at $134.93.

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

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More reading

• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• 34 ASX 200 shares with ex-dividend dates next week
• Brokers name 3 ASX shares to buy now
• Why Core Lithium, Life360, Syrah, and Xero shares are jumping today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, and 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.

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Woodside Energy Group Ltd (ASX: WDS) shares closed on Friday trading for $30.84 apiece.

That sees shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock up 2.5% since last Monday’s close.

I flag Monday, because Woodside reported its full-year 2023 results on Tuesday.

With oil and gas prices down significantly from 2022, the company saw operating revenue for the 12 months fall by 17% to US$13.99 billion. And underlying net profit after tax (NPAT) declined by 37% to US$3.32 billion.

Still, with a strong outlook for energy markets and a solid balance sheet, investors reacted by sending Woodside shares up 0.9% on the day.

The stock may have gotten an extra boost from passive income investors. Although down 58% from the all-time high 2022 final dividend, management still declared an attractive, fully franked final dividend of 60 US cents per share. Or about 92 Aussie cents per share at current exchange rates.

That brings the past 12 months’ total dividend payout to a rounded $2.16 per share. Meaning investors buying on Friday will be earning a trailing yield of 7.0%.

Which begs the question, how are these passive income investors still earning a 13.5% yield on Woodside shares?

Buying Woodside shares when there’s ‘blood in the streets’

As British banker and investor Baron Rothschild famously remarked, the time to buy shares is “when there is blood in the streets”.

Now, trying to get into stocks near their lows is notoriously tricky. And buying them at the lows is even trickier.

But there have been times over recent years when quality ASX 200 stocks, like Woodside shares, have been smashed for reasons that have little or nothing to do with their longer-term earnings outlook.

One such time when there was hypothetical blood in the streets for almost every listed company, was during the early months of the COVID-19 pandemic.

As investors rushed to sell everything but the kitchen sink, Woodside shares tumbled to a low of $16.00 on 20 March 2020 before beginning a gradual recovery.

That means brave passive income investors who ignored the panicking herd and bought Woodside stock on the day will now be earning a yield of 13.5% on those shares.

And they’ll have enjoyed a 92.7% share price gain since then to boot.

The post How are these passive income investors still earning a 14% dividend yield on Woodside shares? appeared first on The Motley Fool Australia.

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More reading

• 34 ASX 200 shares with ex-dividend dates next week
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 200 shares just scored significant broker upgrades. Here’s how
• 5 things to watch on the ASX 200 on Wednesday
• Here’s everything you need to know about the Woodside dividend

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.

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With lithium prices rebounding to their highest levels since December last week, some investors appear to believe that the worst could now be over. This led to a number of ASX lithium shares ending last week with strong gains.

The good news is that the gains may not be over for the ASX lithium shares listed below.

They have been named as buys by analysts and tipped to rise strongly from current levels.

Arcadium Lithium (ASX: LTM)

The team at Macquarie thinks that this lithium giant’s shares are great value at the current level.

Last week, the broker retained its outperform rating with an $11.00 price target. This implies potential upside of almost 30% for investors over the next 12 months.

Macquarie sees potential for its shares to re-rate to higher multiples over the medium term.

Delta Lithium Ltd (ASX: DLI)

Another ASX lithium share that has been named as a buy with major upside potential is Delta Lithium. It is focused on advancing the Mt Ida Lithium Project towards production and explorating the highly prospective Yinnetharra Lithium Project.

Bell Potter is a fan of the company and has a speculative buy rating and 75 price target on its shares. This suggests that its shares could more than double in value over the next 12 months.

Liontown Resources Ltd (ASX: LTR)

Bell Potter also believes that lithium developer Liontown could be a buy. Its analysts have a speculative buy rating and $1.60 price target on its shares. This implies that upside of approximately 25% is possible for investors.

The broker believes Albemarle’s failed takeover bid demonstrates the quality of its Kathleen Valley operation. It said:

LTR remains our preferred lithium developer. We expect production will ramp-up as lithium prices and market sentiment improve. Albemarle’s 2023 bid (subsequently withdrawn) highlighted Kathleen Valley’s highly strategic nature in terms of its stage of development, long mine life and location.

The post 3 ASX lithium shares with huge upside to buy in March appeared first on The Motley Fool Australia.

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More reading

• 6 ASX shares to buy and hold until the next leap year
• Here are the top 10 ASX 200 shares today
• Why are Core Lithium shares jumping 12% on Friday?
• Here are the top 10 ASX 200 shares today
• Why are ASX lithium shares like Liontown having such a bumper session 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 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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February 29 may have come and gone, but if you want to force yourself to invest for the long run, you could think about which ASX shares you’d want to own in the next leap year.

With this mindset, Moomoo market strategist Jessica Amir nominated six ASX shares that she’d be happy to buy now and hold until 29 February 2028:

2 technology stocks to put away until 2028

Large-cap tech stock WiseTech Global Ltd (ASX: WTC) may have returned a spectacular 361% to investors over the past five years, but Amir reckons there’s more where that came from.

“[There’s] growth potential — increased scale and increasing demand for logistics technology,” she said.

“The company is confident that EBITDA margins will return to 50%+ by FY26, with further cost-saving efficiencies to come.”

She noted its clients are loyal as it would be a huge hassle for courier companies to change their main software, and 84% of the revenue is recurring.

“[WiseTech has] launched new products to keep clients and draw in new business such as NEO, allows planning, booking, tracking and management of freight. 

“It’s now offering customs and compliance features – for imports/exports – targeting 90% global manufacturers.”

Also in technology, but further up the supply chain, is data centre provider Nextdc Ltd (ASX: NXT).

Its shares have already risen 28% so far this year.

“Positioned to capture [and] generate AI opportunities… Market is telling you that it’s exciting about its future and that it’s essential in AI.”

Even after averaging a sensational underlying earnings compound annual growth rate (CAGR) of 20%, the business is now at a “tipping point”, Amir reckons.

“Half of its revenue is from NSW and ACT — huge potential to expanding capacity and geographically — and it’s doing that.”

2 resources stocks to have in the portfolio for years to come

ASX mining shares are notoriously cyclical, but there are two that Amir would be happy to buy now to hold until 2028.

Due to a bear market for iron ore, BHP Group Ltd (ASX: BHP) shares are now 13% down year to date. She feels like that presents a “great opportunity to buy”.

While iron ore may be in for even worse times in the short term because of the troubles in the Chinese construction industry, there is hope.

“Vale SA (BVMF: VALE3), the world’s second-largest iron ore producer (behind BHP), said it’s looking to boost iron ore sales outside of China and sell to Europe, India, the Middle East and Southeast Asia,” said Amir.

“Vale’s iron ore is tight – no new supply coming this year… Australia’s production little changed, so iron ore price probably won’t remain in bear market.”

Also, BHP is well diversified in the minerals that it produces, which can smooth out the cyclicality somewhat.

“Beneficiary of increasing copper demand over next 5 to 10 years. BHP makes 26% of revenue from copper.”

Lithium prices have been stuck in a severe depression the past 12 months, and the stock that Amir would pick up for cheap right now is Liontown Resources Ltd (ASX: LTR).

But she warned it would be a “slow, not wild” climb back up.

“[The] lithium sector suffering punitively lower price. Lithium prices  — carbonate and hydroxide — [are] back at 2021 levels on excess supply vs demand.”

In the long-term though, the electric car market has much growing left to do.

“Australia [has only] 10% penetration.

“All in all, this means, demand for key components on EVS, such as lithium will continue to rise, which is why lithium stocks are starting to claw back.”

A couple of niche ASX shares to hold on to

Amir also nominated a pair of ASX companies that cater for specific needs as perfect candidates to buy and hold right now.

Audio networking technology provider Audinate Group Ltd (ASX: AD8) has enjoyed a massive 174% rise in its share price over the past 12 months.

But the fact remains, according to Amir, orders for AV are set to “boom”.

“This company means business, achieving its FY24 objectives 6 months ahead of plan.”

Audinate commercialised a “significant milestone” during the last half when it introduced the ability to synchronise audio directly from its networks into the cloud.

“Online production can happen anywhere, which reduces the need for mobile studios and full broadcast trucks,” said Amir.

“This is one of the [reasons] it sees margins improving. Plus, it cut costs [and] gaining new contracts.”

Fintech stock Block Inc CDI (ASX: SQ2) has enjoyed an even steeper ride up, doubling since the start of November.

Amir notes it makes the third most popular smartphone app in the US to send money.

“[When] US central bank cuts rates in 2024, that will boost discretionary spending and Block’s revenue.”

The company also has interests in cryptocurrency, so the 143% rocket in the value of Bitcoin (CRYPTO: BTC) since September has been huge for Block Inc.

“Making money from Bitcoin and benefit from Bitcoin halving [in April]… 43% of revenue is from Bitcoin.”

The post 6 ASX shares to buy and hold until the next leap year appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Audinate Group, Bitcoin, and Block. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group, Bitcoin, Block, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Audinate Group, Block, and 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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Income investors love their passive income, so with reporting season almost done, we canvas the boards to identify the ASX stocks that delivered some of the biggest dividend boosts of the season.

All of these companies below delivered a more than 30% increase in dividends this earnings season.

9 ASX stocks delivering turbocharged passive income

AGL Energy Limited (ASX: AGL) wowed passive income investors with a 225% increase in its interim dividend for FY24. This followed a 358% profit surge over the first half. The ASX utilities stock will deliver 26 cents per share in unfranked passive income for investors.

Corporate Travel Management Ltd (ASX: CTD) reported a 162% profit bump in 1H FY24. The ASX travel stock is set to pay an interim dividend of 17 cents per share, up 183%.

Inghams Group Ltd (ASX: ING) rewarded shareholders with a 167% dividend increase after reporting a doubling in profit. Inghams will pay a fully franked interim dividend of 12 cents per share, delivering a passive income boost of 167%.

Origin Energy Ltd (ASX: ORG) reported an almost 1,600% skyrocketing in profits in 1H FY24. Origin stock will pay ASX investors a fully franked interim dividend of 27.5 cents per share. That’s up 66% on 1H FY23.

QBE Insurance Group Ltd (ASX: QBE) reported doubled profits in FY23. The insurer will pay a final dividend of 48 cents per share, up 60% on FY22.

Australian Ethical Investment Ltd (ASX: AEF) reported a 71% profit improvement. It will pay an interim dividend of 3 cents per share. That’s a 50% boost in passive income for its shareholders.

Insurance Australia Group Ltd (ASX: IAG) will once again pay a turbocharged dividend. Despite reporting a 13% profit decline, the insurer boosted its interim dividend by 67% to 10 cents per share.

Fortescue Ltd (ASX: FMG) is known for delivering generous passive income, and the ASX iron ore pure-play did not disappoint this earnings season. The company reported a 41% profit improvement and boosted its interim dividend by 44% to $1.08 per share, fully franked.

Computershare Ltd (ASX: CPU) gave investors a 33% passive income boost this earnings season. The administration services company announced a record margin income for 1H FY24. It rewarded shareholders with an interim dividend of 40 cents per share with 20% franking.

The post Passive income watch: The ASX stocks dishing out the biggest dividend boosts this earnings season appeared first on The Motley Fool Australia.

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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 Australian Ethical Investment and Corporate Travel Management. The Motley Fool Australia has recommended Australian Ethical Investment and Corporate Travel Management. 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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Some ASX shares are exciting growth stocks, while other names are compelling picks for dividend income. I’m going to talk about three ASX dividend shares I’d like to own for retirement.

Businesses that have generous dividend payout ratios can lead to solid dividend yields.

Retirement is an important stage when it comes to finances – winding down work earnings means that investment income earnings (and stability) are essential. I wouldn’t want to see my income completely disappear when I need it most.

These are three I’d want to own.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a portfolio of industrial properties across in-demand markets where there is a limited availability of assets that can meet the tenant demand.

In February, the business reported 6% like-for-like net operating income growth. In the first half of FY24, it delivered re-leasing spreads of 51%, meaning it’s now getting rental income that’s 51% more on a new rental contract compared to the old contract.

Ross Lees, Centuria head of funds management, said:

CIP has had a longstanding differentiated strategy to build a portfolio of high-quality urban infill logistics assets. It is pleasing to see this long-term disciplined approach to portfolio construction, alongside an active approach to asset management, resulting in significant rental growth being delivered for unitholders.

It has an occupancy rate of 97.2%, a weighted average lease expiry (WALE) of 7.5 years and an expected distribution yield of 4.8% for FY24.

I think the rental profit outlook is very promising for this ASX share.

Medibank Private Ltd (ASX: MPL)

Medibank is the leading business in the health insurance space, with its Medibank and ahm brands.

Healthcare is the type of spending category that I’d guess a lot of households will continue with even if their finances are tighter because health is a crucial aspect of our lives.

The recent FY24 first-half result was a good example of how the business is performing during this challenging period – it saw net resident policyholder growth of 3,400 and net non-resident policy unit growth of 33,800.

HY24 saw revenue from external customers increase by 3.3% to $4.02 billion, group operating profit rose 4.2% to $319.4 million, net profit after tax (NPAT) jumped 103.2% to $343.2 million, the underlying NPAT went up 16.3% and the interim dividend per share increased 14.3% to 7.2 cents.

The last two dividends declared amount to a grossed-up dividend yield of 6.1%.

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

Soul Pattinson is a diversified investment house that owns a large array of investments across different sectors, including telecommunications, resources, building products, property, financial services, agriculture, financial services, swimming schools and so on.

It has already existed for over 120 years, and I think there are strong reasons to believe it can be around in another 50 years. The fact it can alter its portfolio as time goes by makes me think it can always adjust its portfolio to be aimed at future growth areas.

The ASX share has grown its dividend each year since 2000, which is the longest growth streak on the ASX. It currently has a trailing grossed-up dividend yield of 3.6%.

The post If I were entering retirement tomorrow, I’d buy these ASX shares appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Medibank share price today?
• The ASX shares I’m buying for a stress-free retirement
• Hoping to bag the record Medibank dividend? Here’s what you need to do
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• Buying Soul Patts shares? Here’s what you’re really buying

Motley Fool contributor Tristan Harrison has positions in 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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