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As interest rates rise, the stocks that drove portfolios last decade are falling out of favour.

Many experts are warning that high-growth technology ASX shares will not produce the same dizzying returns as they did in the days of near-zero rates.

Instead, investors will have to turn to businesses that provide goods and services that the world just can’t live without.

Here are two such examples currently rated as buys:

‘A critical mineral’ for electric vehicles

According to BW Equities equity salesperson Tom Bleakley, Syrah Resources Ltd (ASX: SYR) is the “biggest graphite producer on the ASX”. 

And that’s important because about 20% of the weight of a modern lithium-ion battery is made of graphite.

“Graphite is a critical mineral for the transition to electric vehicles,” Bleakley told The Bull.

“The International Energy Agency forecasts strong demand for graphite between 2020 and 2040. We believe Syrah offers a bright outlook.”

Tribeca Global Natural Resources Limited (ASX: TGF) portfolio manager Ben Cleary certainly agreed with Bleakley.

“They’re going to make good margins regardless of whether commodity prices remain high,” Cleary told Livewire last month.

“They are… at the bottom of their respective cost curves. And they all have been very focused on keeping their best people, as labour is tight.”

‘Consistent’ earnings that are recession-proof

Essential products don’t come any more essential than water.

As such, Shaw and Partners senior investment advisor Jed Richards likes the look of Duxton Water Ltd (ASX: D2O).

“The company buys water entitlements and leases them to farmers,” he said.

“Earnings are consistent, reliable and uncorrelated with the rest of the economy.”

With food inflation rampant, there will be hot demand for the local agricultural industry. And on a dry continent like Australia, there is always “a shortage of available water entitlements”, according to Richards.

“Combined with a significant increase in demand from the horticultural industry, [this] should lift the value of permanent water assets.”

Duxton has also been giving cash back to investors through a 12-month on-market share buyback program that’s been in place since October last year.

“The ongoing share buyback will support the price in the short term,” said Richards.

“The company was recently trading on a grossed up and appealing dividend yield of around 5.2%.”

The post Batteries and water: Experts name 2 ASX shares you can’t ignore appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch

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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The Telstra Corporation Ltd (ASX: TLS) share price has taken a bit of a tumble recently.

Over the last couple of weeks, the telco giant’s shares have dropped over 6% to $3.89.

This leaves the Telstra share price trading closer to its 52-week low than its 52-week high.

Is the Telstra share price in the buy zone?

While this weakness is disappointing for shareholders, it could be a buying opportunity for others.

According to a recent note out of Morgans, its analysts have an add rating and $4.60 price target on the company’s shares.

Based on the latest Telstra share price, this implies potential upside of 18% for investors over the next 12 months.

And with Morgans expecting a 17 cents per share fully franked dividend in FY 2023, this potential return is boosted by a forecast 4.4% dividend yield.

Why is Morgans bullish?

Morgans was pleased with Telstra’s performance in FY 2022 and its outlook commentary. It believes the tide has now turned for the company and it is onwards and upwards from here. The broker commented:

After years of scrambling hard to lower costs and offset declining earnings, TLS has comfortably turned the corner and guided to growth in underlying EBITDA again in FY23. Guidance is in line with consensus, 3% ahead or our forecast.

Morgans also highlights that the company has some of the strongest tailwinds behind it and a new CEO (former CFO Vicki Brady) that isn’t likely to change the company’s course. It explained:

Telco has the strongest tailwinds in a decade with an increasingly rational market, pricing rises and the criticality of telco increasingly recognised. This combines with an incoming CEO who currently seems unlikely to drastically change the business and the potential for value uplift (potential bids) following the legal restructure.

All in all, the broker feels this makes Telstra’s shares great value at the current level.

The post Should you buy Telstra shares after the telco ‘comfortably turned the corner’? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why did the Telstra share price outperform the ASX 200 in August?
• Why did the Telstra share price beat the ASX 200 today?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Telstra shares offer a dividend yield over 4% right now. Is this as good as it sounds?

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 Telstra Corporation 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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Exchange-traded funds (ETFs) can be very effective ways to get access to some of the world’s biggest and best businesses. The Vanguard MSCI Index International Shares ETF (ASX: VGS) could be one of the cheapest ways to do it, with an annual management fee of just 0.18%.

It’s pretty easy to buy shares on the ASX that we use in our day-to-day lives like Telstra Corporation Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW) or Transurban Group (ASX: TCL).

However, it’s not so simple to buy shares of global names directly because they are not listed on the ASX.

It’s still possible to buy shares in them directly, but it could come with more paperwork. An ETF may be the easiest way to gain access to them.

But what shares does the VGS ETF actually own?

Vanguard MSCI Index International Shares ETF holdings

At 31 July 2022, it had 1,474 positions. That’s a lot of businesses, giving great diversification.

But, some of them have a much larger allocation in the portfolio than others.

These are the biggest 10 positions at the end of July 2022 in the VGS ETF:

Apple Inc makes the iPhone, Mac computer and many other well-known tech products and services.

Microsoft Corporation is another technology giant that offers various products and services like Windows, Microsoft 365 products, Xbox and Azure.

Alphabet Inc is the holding company for many services, including YouTube, Google Search, Google Maps and Android.

Amazon.com Inc is a huge e-commerce giant that also has other services like Twitch, Prime Video and AWS.

Tesla Inc is a leading electric vehicle and battery business that is diversifying into other areas.

UnitedHealth Group is a healthcare and insurance business.

Johnson & Johnson is a global healthcare product and pharmaceutical business.

NVIDIA Corporation designs graphics processing units (GPUs) and it’s involved in a number of other tech services. It’s also involved in the hardware and software for AI.

Exxon Mobil Corp is one of the world’s largest oil businesses.

Berkshire Hathaway Inc is an American-focused conglomerate led by Warren Buffett and Charlie Munger.

Investors may have heard of some, or all, of these businesses. They are the biggest positions in the VGS ETF portfolio, so they will have the largest influence on the returns.

For example, if Apple were 10% of the portfolio and it went up 20% in one month, that would be a 2% boost for the ETF. If a smaller company comprised 1% of the portfolio and it went up 100%, it would only add 1% of a total return.

VGS ETF share price snapshot

In the past month, the Vanguard MSCI Index International Shares ETF has fallen by around 4%.

The post What are the main holdings in the Vanguard MSCI Index International Shares ETF (VGS)? appeared first on The Motley Fool Australia.

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More reading

• 3 fantastic ETFs for ASX investors to buy in September
• Could these ASX ETFs soon play a bigger role in Aussie super funds?
• 2 of the best ETFs for ASX investors to buy in September
• How does VGS stack up against other ASX index funds?
• 3 top ETFs for ASX investors to buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, 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 (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Nvidia, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, SG Hiscock portfolio manager Hamish Tadgell explains why he’d currently buy three particular ASX shares.

Hottest ASX shares

The Motley Fool: So having said the investment environment has permanently changed in 2022, what are the three best stock buys right now?

Hamish Tadgell: We’re bottom-up investors at the end of the day. Our three best ideas coming out of reporting season would be, one, Cooper Energy Ltd (ASX: COE). 

It’s an east coast gas producer, well positioned I think to participate in the current structural shortfall in east coast gas, and particularly in Victoria and the energy transition to a lower carbon economy. 

It’s had a difficult couple of years with the commissioning of a gas plant — the sole gas plant — which AGL Energy Limited (ASX: AGL) operated for them down in Gippsland. [It] has seen the company not meet its production targets, but we think that’s turning the corner. Recently they’ve taken control of that gas plant. [Cooper] bought it off AGL, and ramping up production, and there’s a series of catalysts that we see over the coming 12 months, which I think positions that company very well for a strong re-rating.

MF: For an energy company, the share price hasn’t lit the world on fire this year, has it? But that gives it upside?

HT: The backdrop is incredibly attractive. The thematic is incredibly attractive. Now east coast gas prices 12 months ago were probably at $6 to $8. They’re now $10 to $15, and we don’t see them coming back in a hurry. 

More to the point, we think that Cooper’s going to have a lot more gas to sell over the next 12 months than they did the last 12 months as a result of fixing some of the plant problems that they’ve had.

MF: Your second ASX share to buy?

HT: The second one would be Chorus Ltd (ASX: CNU), which is the NBN equivalent, if you like, in New Zealand. It’s a virtual monopoly operating the New Zealand fibre network. It’s got some 88% or close to 90% of the fibre market in New Zealand. 

It’s clearly benefiting from the strong continuing demand for data and streaming, which was only reconfirmed through COVID and with people working from home and watching more Netflix Inc and all those sorts of things — the demand has been increasing for those services. 

More importantly, the stock’s moving from building out the network and the pretty high CapEx over the last four or five years, to [now] becoming an operating asset.

So the CapEx hump, if you like, dropped significantly this year, and we see very strong free cash flow for this stock starting to emerge over this year and the next number of years — and a growing dividend. 

When you look at it, it’s trading on a free cash flow yield of 8% to 9% on nine times EV to EBITDA. Look at some similar assets. This is a social infrastructure asset, a high-quality asset. Unity Group, which was recently bought by private equity, sold around 20 times EV to EBITDA. And then I look at something like Transurban Group (ASX: TCL), which again, is a high-quality social infrastructure asset, perhaps a little less regulatory risk, but it trades on 23.5 times. 

[Chorus] trading on nine… looks incredibly cheap to us for what I think will be a very strong, free cash flow and good dividend growing stock over the next number of years.

MF: And your last pick?

HT: I’d say Qube Holdings Ltd (ASX: QUB). It’s Australia’s largest integrated provider of import, export logistics. And these are highly strategic assets with very strong, sustainable, competitive advantage, long-term contracts and importantly, pricing power, which I think will be increasingly important in the inflationary environment we’re in. 

It’s proved actually to be a remarkably resilient business over the last 12 months. Its results just last month just showed that despite COVID, inflation, extreme weather events, supply chain disruption, labour issues, and China lockdowns, it’s still produced very resilient earnings and growth. 

And more to the point, with the company having recently sold, over the last 12 months, sold out of Moorebank. So it was developing a big industrial park up in New South Wales, and a lot of people were concerned that it was really a property play and they’d overstretched their balance sheet a bit, and concerned about the debt levels. Well, they sold that, returned quite a bit of that capital to shareholders, but also paid down quite a bit of their debt. 

We see them incredibly well positioned to continue to grow over the next couple of years. At the end of the day, Australia is an island — it’s dependent upon imports and exports, and this company’s the largest provider of those services. And we think it’s an incredibly well-managed business, very well diversified, and it’s got some good strong growth prospects over the next few years.

MF: It also gives out a dividend, doesn’t it?

HT: Yeah, it does. It’s not a high dividend — it’s probably only 2% or 3% yield, but it’s really a growth stock. 

It’s, in our mind, a GDP+ type business. The diversification… it’s in every part of the economy: retail, mining, agriculture, you think about anything basically that comes in or goes out of Australia, they handle it. So it’s a real proxy for the economy, but also [has] been a very good allocator of capital over time and made some very good bolt-on acquisitions.

The post ‘Incredibly cheap’: Fundie reveals 3 ASX shares he’d buy right now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Qube share price bounces 6% as dividend delights
• Here are the top 10 ASX 200 shares today
• Chorus share price lifts as company declares 35 cents per share dividend
• Cooper Energy share price spikes following FY22 results and update

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 positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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 Whitehaven Coal Ltd (ASX: WHC) share price has been a top performer in the past month, rising 36.5%.

It has significantly outperformed the S&P/ASX 200 Index (ASX: XJO), which has fallen by 1.76% over the same time.

What has caused such a big outperformance by Whitehaven shares?

With energy prices soaring around the world, coal is benefitting as countries try to keep their energy grids powered. This includes using more coal.

The ASX coal share recently reported its FY22 result, which showed how much the company is benefitting.

FY22 earnings recap

In the 12 months to 30 June 2022, the coal miner generated record revenue of $4.9 billion (up 216%) thanks to an average coal price of AU$325 per tonne. This compares to $1.56 billion revenue and an AU$95 per tonne average price in FY21.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) rocketed by 1,396% to $3.06 billion.

Whitehaven made $1.95 billion of net profit after tax (NPAT). This compares to an underlying net loss of $87.3 million in FY21.

Operating cash flow soared 1,423% to $2.58 billion.

The ASX share has also been carrying out an on-market share buyback worth $550 million. The Whitehaven board will seek shareholder approval to increase the buyback at the company’s annual general meeting (AGM) in October.

It also decided to pay a final, fully-franked dividend of 40 cents per share. At the current Whitehaven share price, that dividend alone represents a grossed-up dividend yield of 7.2%.

The FY22 dividends and share buyback represent a total payout ratio of 51% of FY22 net profit, in line with the company’s policy.

Why are coal prices so high?

Whitehaven CEO and managing director Paul Flynn explained:

The longer-term under-investment in energy sources needed to supply baseload capacity to growing populations and economies has contributed to a widening gap between supply and demand. In FY22, we saw global energy shortages intensify as a result of the tragic conflict in Ukraine and associated sanctions against Russian coal and gas.

Coal prices are at record levels and customers are focused on energy security now more than ever before.

Demand for high-quality seaborne thermal coal is expected to remain strong throughout FY23 and high-CV coal prices should continue to be well supported.

To take advantage of this, Whitehaven expects to deliver higher production and coal sales in FY23 compared to FY22.

The company noted:

It is likely to take several years before additional supply or alternative energy sources are available to rebalance global supply and demand dynamics. Throughout the coming multi-decade energy transition reliable baseload fuels will be required. This will underpin continued demand for coal and, in particular, for the high-CV coal Whitehaven produces on account of its higher energy content and lower emissions profile relative to other coal products.

Broker confident about the Whitehaven share price

As first noted by my colleague James Mickleboro, the broker Morgans thinks that the high coal price will lead to “supercharged returns” for shareholders.

The broker has an add rating on the Whitehaven share price, with a target of $8.60. That suggests a possible rise of close to 10% over the next 12 months. It thinks there is “strong potential for a more prolonged dislocation in energy markets where supply security commands a higher premium for longer”.

With Whitehaven making profits and returning to paying fully franked dividends, it could pay a grossed-up dividend yield of 14.5% in FY23 and 11.5% in FY24, according to Morgans.

Based on the profit expectations, Morgans values Whitehaven shares at 3x FY23’s estimated earnings and 7x FY24’s estimated earnings.

The post The Whitehaven share price has surged 36% in a month. Why Morgans predicts more ‘supercharged returns’ appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX All Ords shares smashing new highs on Monday
• Why is the Whitehaven share price having such a stellar session today?
• Why are ASX 200 coal shares smashing the market on Monday?
• Are ASX 200 energy shares a good investment right now?

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

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If you’re an income investor looking for dividend shares to buy, then you may want to check out the two listed below.

These have been named as buys and are forecast to provide generous dividend yields. Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been tipped as a buy is footwear focused retailer Accent.

After a tough time in FY 2022, the team at Morgans is tipping the company to bounce back this year. Particularly given how management is focused on selling at full price again, which it expects to support a recovery in its gross profit margin. In addition, the broker likes the company’s decision to moderate its store rollout in favour of a more selective expansion strategy focused on return on investment.

Morgans has an add rating with a $2.00 price target. As for dividends, the broker is forecasting fully franked dividends of 9 cents per share in FY 2023 and 11 cents per share in FY 2024. Based on the current Accent share price of $1.37, this will mean yields of 6.5% and 8%, respectively.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX dividend share that could be worth considering is Charter Hall Long Wale REIT.

It is a property company with a focus on high quality real estate assets that are leased predominantly to corporate and government tenants on very long term leases.

Ord Minnett is positive on the company. In response to the company’s FY 2022 results, the broker retained its accumulate rating with a $4.93 price target.

In respect to dividends, the broker is forecasting dividends per share of 28 cents in FY 2023 and 28.5 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.45, this will mean yields of 6.3% and 6.4%, respectively.

The post Analysts are tipping 6%+ yields from these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch
• 3 ASX 300 shares trading ex-dividend today
• Analysts say these ASX dividend shares are buys right now
• Morgans names 2 ASX shares to buy post-results
• Leading brokers name 3 ASX shares to buy 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 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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Later today, the Reserve Bank of Australia is meeting to decide on the cash rate again.

And much likes its previous meetings, the market is expecting the central bank to act decisively to combat inflation.

What is the market expecting the RBA to do?

According to the latest cash rate futures, the market has priced in an 83% probability of a 50 basis points increase in the cash rate to 2.35%.

If this forecast proves accurate, it will be the fourth consecutive meeting that the Reserve Bank has increased the cash rate by this margin.

The economics team at Westpac Banking Corp (ASX: WBC) agree with the market. According to the latest Westpac Weekly economic report, its team are expecting the central bank to raise the cash rate to 2.35% today.

Chief Economist, Bill Evans, commented: “We are confident that the Board will decide to raise the cash rate by a further 50 basis points to 2.35%.”

When will the RBA stop raising rates?

If you’re a borrower, you’ll no doubt be hoping that the Reserve Bank stops raising rates and making your repayments higher. When will this happen?

Unfortunately, I don’t have good news for you. While Westpac believes that this is likely to be the last 50 basis points increase, it doesn’t expect Philip Lowe and his team to stop at 2.35%.

Evans is expecting rates to keep rising in smaller increments in the coming months, taking the cash rate up to 3.35% by February. He explained:

Having quickly moved policy into that neutral zone (225 basis points in four months – five meetings) we expect the Board will decide to slow the pace of increases to 25 basis points from the October meeting. This second stage of the tightening process, with consecutive 25 basis point increments, is expected to extend out to February next year with the rate peaking at 3.35%.

While a lot can of course change between now and then, Evans believes that it would be unwise to take rates any higher than that. He commented:

At that point [in February] we expect that it will become evident that the Australian economy is clearly slowing with clear evidence of continuing deterioration as the series of rate hikes and high inflation weigh on households and businesses.

Furthermore, although both headline and underlying inflation will be rising on an annual basis, the quarterly increase in underlying inflation will have slowed from 1.5% (September quarter) to 1.2% (December quarter) with the prospect of a further slowing to 0.8% in the March quarter.

Time will tell if this prediction come true.

The post When will the RBA stop raising rates? Here’s what Westpac thinks appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• Are Westpac shares the answer for investors wanting dividend income?
• Goldman Sachs says these ASX dividend shares are buys
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.35% to 6,852.2 points.

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

ASX 200 expected to rise

The Australian share market is expected to open the day higher on Tuesday despite a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% higher. Wall Street was closed for the Labor Day public holiday, but the Dax fell 2.2%, the CAC dropped 1.2%, and the FTSE rose 0.1% after the UK named its new prime minister.

Reserve Bank meeting

The Reserve Bank is meeting again later today to decide on the cash rate. According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, its analysts are expecting the central bank to raise the cash rate by 50 basis points to 2.35% today. Westpac notes that “raising the cash rate by 50 basis points will move the cash rate into the neutral zone.” Given how much exposure Westpac has to rising rates, its shares could be given a boost by today’s meeting.

Oil prices charge higher

It could be a great day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.2% to US$88.82 a barrel and the Brent crude oil price has risen 2.4% to US$95.23 a barrel. This followed confirmation that OPEC will cut production targets by about 100,000 barrels per day from October.

Telstra given neutral rating

Goldman Sachs has been looking at telco giant Telstra Corporation Ltd (ASX: TLS) but hasn’t yet seen enough to upgrade its shares. This morning the broker has retained its neutral rating and $4.40 price target on the Telstra’s shares. Goldman warned that its forecasts assume “industry rationality persists through to T25, which is clearly not guaranteed given the risk of TPG targeting market share & Optus responding, or competition increasing as the 5G cycle matures.”

Gold price edges lower

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$1,721.20 an ounce. Traders were selling gold ahead of potential rate hikes from the US Federal Reserve.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Santos share price off to a flying start this week?
• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• These are the 10 most shorted ASX shares
• Are Westpac shares the answer for investors wanting dividend income?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Telstra Corporation Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 looking to boost your income with some dividend shares, then two listed below could be worth a closer look.

Both of these dividend shares are expected to provide investors with great yields in the near term. Here’s what you need to know about them:

DEXUS Property Group (ASX: DXS)

The first ASX dividend share to look at is Dexus. It is one of Australia’s leading fully integrated real estate groups, managing a high-quality Australian property portfolio that is currently valued at $44.3 billion.

The company also has a $17.7 billion development pipeline, which management believes provides it with the opportunity to grow its portfolios and enhance future returns.

Macquarie is a fan of the company. Last month, the broker responded to Dexus’ full year results by retaining its outperform rating and lifting its price target on the company’s shares to $10.79.

As for dividends, the broker is forecasting dividends per share of 53 cents in FY 2023 and 52 cents in FY 2024. Based on the latest Dexus share price of $8.43, this will mean yields of 6.3% and 6.15%, respectively.

National Storage REIT (ASX: NSR)

Another ASX dividend share for income investors to look at is National Storage.

It is one of the ANZ region’s leading self-storage operators with over 225 centres that provide tailored storage solutions to 90,000+ residential and commercial customers.

National Storage was in fine form in FY 2022, reporting a 46% increase in underlying earnings to $126.5 million. This was driven by a 28% increase in total revenue, which reflects a 20.9% increase in revenue per available metre (REVPAM), an 18.8% increase in its group rate, and a 2.8% increase in its occupancy rate.

Ord Minnett was pleased with this result, noting that it came in a little ahead of its expectations. In response, the broker reiterated its buy rating and $2.70 price target.

In respect to dividends, its analysts are forecasting dividends per share of 11 cents in FY 2023 and FY 2024. Based on the current National Storage share price of $2.42, this equates to yields of 4.5%.

The post Analysts name 2 top ASX dividend shares to buy with great yields appeared first on The Motley Fool Australia.

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More reading

• Why Dexus, Dusk, Macquarie, and Qantas shares are pushing higher
• Dexus share price wobbles amid strong FY22 results and reduced FY23 dividend guidance

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 RURALFUNDS STAPLED. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Stock prices have taken a tumble again, ending the bear market rally that investors have seen over the last month. Currently, the S&P 500 is down more than 18% from its peak in early January, and some investors worry the market still has further to fall.

To be clear, nobody — not even the experts — knows what exactly to expect over the coming months. The stock market can be unpredictable, so it’s tough to say whether stock prices will continue falling or how severe that drop might be if they do.

All that uncertainty can be daunting, and that’s normal. But just how worried about the stock market should you be? And should you still invest right now? Here’s what you need to know.

What will happen with the stock market?

Again, nobody knows for certain how stocks will perform in the near term. However, the market itself has a long history of rebounding from downturns and going on to see positive average returns over time.

In other words, no matter what happens in the coming weeks or months, the market will recover eventually. The best you can do, then, is try to keep a long-term outlook and avoid getting caught up in the market’s daily fluctuations.

This doesn’t necessarily mean you shouldn’t stay informed about market news. But try your best to avoid letting your emotions guide your decisions. Downturns can be nerve-wracking, but the market has experienced dozens of crashes, corrections, recessions, and bear markets over the years. And it’s recovered from every single one of them.

^SPX data by YCharts.

Keep in mind, too, that as long as you stay invested, you’re unlikely to lose money. If you pull your money out of the market after stock prices have fallen, you’ll lock in those losses. But if you simply hold your investments until the market inevitably recovers, you can make it through unscathed.

Is now a good time to buy stocks?

It’s often challenging to invest when the stock market is shaky, but it can actually help you make more money over time.

When the market is in a slump, stock prices are lower. While that may not seem like a positive thing, it means you can load up on high-quality stocks for a fraction of the price. Some stocks are down 40%, 50%, 60%, or more from their peaks, making right now a fantastic time to invest at a discount.

Once the market eventually recovers, most stocks should increase in value once again. When that happens, you could potentially see significant gains.

The key is to ensure you’re choosing the right investments. Not all stocks can recover from a downturn, but strong companies are the most likely to pull through. By filling your portfolio with healthy companies and holding those stocks for the long term, it’s much more likely your investments will survive whatever may happen with the stock market.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you be worried about investing in the stock market right now? appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 top ASX dividend shares to buy with great yields
• 3 ASX mining shares that rocketed more than 15% on Monday
• Why analysts rate these ASX growth machines as buys
• Experts say investors should buy these ASX 200 shares
• Is there hope for the gold price in 2022?

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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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