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If you’re in the process of building or refreshing an ASX retirement portfolio, then it could be worth looking at the ASX shares listed below.

They have been named as buys by analysts at Goldman Sachs and tipped to be long-term winners for investors. Here’s what the broker is saying:

Lifestyle Communities Ltd (ASX: LIC)

The first ASX retirement share to look at is Lifestyle Communities. It is a developer, owner and manager of affordable independent living residential land lease communities.

Goldman Sachs is a big fan of the company and responded to its recent capital raising by retaining its buy rating with a new $21.55 price target. It analysts commented:

The long-term outlook for LIC is very positive — we believe outperformance of the stock will be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; and (3) fundamental valuation support for cap rates.

Woolworths Group Ltd (ASX: WOW)

Another ASX retirement share that could be in the buy zone is supermarket giant Woolworths.

It has been tipped to deliver solid earnings and dividend growth over the long term by analysts at Goldman Sachs. This is expected to be driven by market share gains thanks to its omnichannel advantage and powerful loyalty program.

The broker has a buy rating and $40.40 price target on its shares. It said:

We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations.

The post Here are 2 ASX shares to buy for a golden retirement appeared first on The Motley Fool Australia.

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More reading

• 25 ASX 200 shares with ex-dividend dates next week
• Analysts have put buy ratings on these ASX dividend stocks
• Are Woolworths shares dirt cheap following the selloff?
• 5 things to watch on the ASX 200 on Thursday
• 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 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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It’s not often an S&P/ASX 200 Index (ASX: XJO) stock can rocket 160% in a single year but still be considered by some as inexpensive.

But that’s exactly the situation we currently have with Megaport Ltd (ASX: MP1).

The virtual networking technology provider has impressed the market with its recovery since chief executive Vincent English suddenly resigned last March.

Founder and chair Bevan Slattery stepped in as interim boss and set about cutting costs at a company that had made a habit of burning cash.

Last week the fruits of that reform showed up in the half-yearly results.

Gross profit was up 43% year-on-year, revenue was 35% higher, and earnings before interest, taxes, depreciation and amortisation (EBITDA) rocketed a crazy 785%.

So after closing 27 February 2023 at $5.51, Megaport has now almost tripled in just 12 months.

How could these be cheap shares?

So after such a boom time, how can anyone possibly call this stock inexpensive?

Cast your mind back to late 2021.

Inflation was starting to nudge up, but not many people, aside from a few economists, were that worried. Central banks certainly weren’t, with the former Reserve Bank governor remarking that interest rates could stay stable until 2024.

No one, aside from Vladimir Putin’s inner circle, knew that in just a few months, Russia was about to invade a sovereign neighbour with 44 million people.

And a brutal and barbaric conflict in the Middle East was still two years away.

Growth stocks were enjoying a decade-long run of support from markets without a care in the world.

In this environment, Megaport shares, back when the business was losing far more money than it is now, were trading for $21.46 in November 2021.

Even after the meteoric rise in the past year, the stock only just managed to overtake the $14 mark last Friday.

That is what those experts are remembering when labelling Megaport as cheap shares even right now.

Okay, so it’s cheap. But should I buy?

Of course, that naturally leads to the question of whether Megaport is a buy.

Factually, the Megaport business is running in a more profitable manner than it was before the interest rates started climbing.

Back in August 2021, the company reported a $55 million net loss.

Considering this, it’s no wonder many professional investors are still keen on the stock despite the recent run-up.

“Analysts at Macquarie Group Ltd (ASX: MQG) have retained their outperform rating on this network solutions company’s shares,” The Motley Fool’s James Mickleboro reported last week.

“Macquarie was pleased with the finer details [of the financial results] and has boosted its earnings estimates to reflect an acceleration in momentum.”

Broking platform CMC Invest is reporting that 10 out of 15 analysts are currently rating Megaport shares as a buy.

The post This overlooked ASX 200 share is up 160% in a year but still dirt cheap! Should I buy it? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Up 119% in a year, Megaport share price slipping today despite record earnings
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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 Megaport. The Motley Fool Australia has recommended Megaport. 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 200 shares to choose from on the Australian share market.

And while not all of them are buys, two that could be this week are named below.

Here’s why analysts are feeling bullish about them:

Bapcor Ltd (ASX: BAP)

The team at Morgans think it is worth sticking with this auto parts retailer following its half-year results.

While the broker acknowledges that there is some uncertainty given its new leadership team and strategy, it feels that its valuation still provides an attractive entry point. The broker said:

There is clearly some ‘reset risk’ with a new incoming CEO/CFO. Part of our case for the recent recommendation upgrade was the improved prospect for earnings improvement into FY25. Despite the uncertainty tied to an inevitable strategy review, we continue to see higher earnings in FY25 as realistic. We acknowledge the BAP investment case is tricky until the new CEO provides some strategy clarity. However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.

Morgans has an add rating and $6.60 price target on its shares.

Qantas Airways Limited (ASX: QAN)

Goldman Sachs is feeling very bullish about this airline operator following its half-year results release.

It continues to believe that the market is undervaluing Qantas’ significantly improved earnings capacity. It highlights:

Notwithstanding a decline in unit revenues (and group capacity still at 95% of pre-COVID) our estimated FY24e EPS sits 52% above pre-COVID levels. Despite this, QAN’s market capitalisation and EV is 17% and 24% lower than pre-COVID levels. We acknowledge broader macro uncertainty at this point in the cycle, but believe the current share price does not reflect the group’s improved earnings capacity.

Goldman has a buy rating and $8.05 price target on its shares.

The post Analysts think these ASX 200 shares are dirt cheap buys appeared first on The Motley Fool Australia.

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More reading

• These ASX shares could rise 30% to 50% in 12 months
• Qantas descends, Treasurer’s RBA dilemma and Twiggy’s payday: Scott Phillips on Nine’s Late News
• Brokers name 3 ASX shares to buy now
• Bapcor share price resilient following record half year revenues
• Why Qantas shares could rise over 50%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Bapcor. 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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Looking for big returns and exposure to the mining sector? Then look no further!

Listed below are two ASX 200 mining stocks that have been named as buy this week. Here’s what analysts are saying about them:

Gold Road Resources Ltd (ASX: GOR)

Bell Potter thinks that Gold Road Resources could be an ASX 200 mining stock to buy this week.

The broker has responded to the gold miner’s FY 2023 results with a buy rating and improved price target of $1.85. This implies potential upside of 23% for investors over the next 12 months.

Its analysts explained why they are bullish on the company. They said:

GOR is a debt-free, unhedged, free-cash generating, single asset gold producer, with targeted attributable production of a sustainable 175 kozpa (attributable) out to 2032. GOR pays dividends, targeting dividends of 15-to-30% of free-cash-flow, subject to a minimum cash balance of $100m. Earnings from Gruyere provide an excellent foundation for GOR’s growth ambitions i) a 100% owned project, and ii) Tier 1 gold assets.

Lynas Rare Earths Ltd (ASX: LYC)

Another ASX 200 mining stock that has been named as a buy this week is rare earths producer Lynas.

Goldman Sachs remains very positive on the miner and has its shares on its coveted conviction list with a buy rating and $7.40 price target. This implies potential upside of 25% for investors over the next 12 months.

A couple of reasons why Goldman is so bullish are as follows:

Undervalued: the stock is trading at ~0.8x NAV (A$7.78/sh) and pricing in US$67/kg NdPr vs. spot at ~US$53/kg and our long run US$83/kg (real $, from 2028) NdPr price forecast.

NdPr market balanced over medium term but deficits over long run on higher Chinese supply, but we see upside to current NdPr spot China at ~US$53/kg where we forecast US$60/kg across CY24 based on our SD model.

The post These ASX 200 mining stocks can deliver 20%+ returns appeared first on The Motley Fool Australia.

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More reading

• Lynas share price charges higher despite 74% half-year profit decline
• Here are the top 10 ASX 200 shares today
• This ASX gold stock just fell 31%. It’s time to buy
• Here are the top 10 ASX 200 shares today
• This ASX 200 mining stock is ‘undervalued’ and could rise 25%

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

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There are some great ASX-listed exchange-traded funds (ETFs) that can give investors exposure to very appealing technology businesses in the world that we can’t necessarily find on the ASX.

Companies like Apple, Amazon.com, Microsoft, Alphabet and Meta Platforms have done very well for shareholders over the long-term. But, there are plenty of other businesses that could do well outside of those big companies.  

Betashares Cloud Computing ETF (ASX: CLDD)

The idea of this ASX ETF is that it provides exposure to leading companies in the global cloud computing industry.

What’s appealing about cloud computing? BetaShares said:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world’s digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

Readers may recognise some of the largest positions in the portfolio including Wix.com, DigitalOcean, Procore Technologies, Workday, Zscaler, Salesforce, Netflix and Shopify.

There are a total of 36 holdings within the ASX ETF, which I think is a good amount of names. As one might expect, around 90% of the portfolio is invested in US businesses, though that doesn’t mean the underlying earnings are too concentrated because many of these stocks generate profit from across the world.

Past performance is not a guarantee of future performance, but the index that the CLDD ETF tracks has retuned an average return per annum of 14.1% over the last five years.

Betashares Global Cybersecurity ETF (ASX: HACK)

I think this is one of the most compelling sector-focused options available to Aussies.

Cybersecurity demand is strong, with the amount of cybercrime and attempted attacks on the rise. Businesses and governments need to be continually in front of what cybercriminals are trying to do, and they’re paying a lot of dollars for it. Cybersecurity would still be important in a recession, so I think the sector offers both growth and defensive attributes.

The Australian Signals Directorate (ASD) Cyber Threat Report for 2022 to 2023 showed the average cost of cybercrime per report increased 14% and the number of cybercrime reports rose around 23% to nearly 94,000. This shows the scale of the problem in just one country.

Some of the holdings include Broadcom, Crowdstrike, Infosys, Cisco Systems, Palo Alto Networks, SentinelOne, Juniper Networks, Cloudflare and Fortinet.

Including the annual management fee of 0.67%, the HACK ETF has delivered an average return per annum of 19.5% over the past five years. Again, past performance is not a guarantee of future performance.

The post 2 excellent ASX ETFs to buy for growth appeared first on The Motley Fool Australia.

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More reading

• Here are 3 exciting ASX tech ETFs to buy right now
• 4 ASX ETFs to supercharge your portfolio in February
• 8 popular ASX ETFs smashing new 52-week highs
• 3 ASX ETFs for tech investors to buy and hold
• 2 ASX ETFs I wish I’d bought for my portfolio

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, BetaShares Global Cybersecurity ETF, Cisco Systems, Cloudflare, CrowdStrike, DigitalOcean, Fortinet, Meta Platforms, Microsoft, Netflix, Palo Alto Networks, Salesforce, Shopify, Wix.com, Workday, and Zscaler. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and 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 positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, DigitalOcean, Meta Platforms, Netflix, Salesforce, and Workday. 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 might want to read on.

That’s because listed below are two top ASX dividend shares that brokers are recommending as buys with great forecast yields.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Bell Potter has responded to this footwear retailer’s half-year results by retaining its buy rating with a $2.50 price target on its shares. The broker commented:

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

As for income, Bell Potter is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the current Accent share price of $1.94, this represents sizeable dividend yields of 6.7% and 7.5%, respectively, for investors.

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs remains positive on this drinks giant following its half-year results release on Monday. The broker has put a buy rating and $6.00 price target on the Dan Murphy’s owner’s shares this morning. Its analysts said:

We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in. We are Buy rated on EDV.

In respect to dividends, the broker is forecasting fully franked dividends per share of 22 cents in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.08, this represents attractive dividend yields of 4.3% for investors.

The post Brokers say these ASX dividend shares 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
• Leading brokers name 3 ASX shares to buy today
• Endeavour share price drops on half-year profit weakness
• 5 things to watch on the ASX 200 on Monday
• Why Accent, Austal, Newmont, and Sandfire shares are plunging today

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 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.1% to 7,652.8 points.

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

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. In late trade in the United States, the Dow Jones is down slightly, the S&P 500 is down 0.2%, and the NASDAQ is 0.1% higher.

Coles results

Coles Group Ltd (ASX: COL) shares will be on watch today when the supermarket giant releases its half-year results. Commenting on its expectations, Morgans said: “Consumer trends. COL said at its 1Q24 sales trading update that its research showed that customers are increasingly eating in and entertaining at home, seeking out loyalty points and bonus offers, and looking for more affordable alternatives in response to cost of living pressures. Given this backdrop, focus will be on sales and customer behaviour during the key Christmas trading period.”

Oil prices rebound

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Karoon Energy Ltd (ASX: KAR) could have a decent session after oil prices rebounded overnight amid Middle East tensions. According to Bloomberg, the WTI crude oil price is up 1.4% to US$77.57 a barrel and the Brent crude oil price is up 1.1% to US$82.51 a barrel. Woodside is also releasing its results this morning.

Buy Endeavour shares

The Endeavour Group Ltd (ASX: EDV) share price is great value according to analysts at Goldman Sachs. In response to its half-year results, the broker has retained its buy rating with a $6.20 price target. It said: “The 1st 7 week run-rate is largely in-line with GSe. Additionally, we see that the 1H24 results evident of early signs of a strategy turnaround.”

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a soft session today after the gold price fell overnight. According to CNBC, the spot gold price is down 0.5% to US$2,038.9 an ounce. Traders were selling gold ahead of the release of inflation data in the United States.

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

• Endeavour share price drops on half-year profit weakness
• 5 things to watch on the ASX 200 on Monday
• 3 things ASX investors should watch this week
• 3 of the safest ASX 200 dividend shares in Australia right now
• How to generate $50,000 of passive income from ASX shares each year

Motley Fool contributor James Mickleboro has positions in Endeavour Group and 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 Coles 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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A buoyant stock market in recent weeks has seen some ASX growth shares go from strength to strength.

Medallion Financial Group director Philippe Bui this week named a couple of stocks with precisely that type of momentum which he considers as buys right now:

‘A strong pipeline of work’

Not only has the Johns Lyng Group Ltd (ASX: JLG) share price climbed more than 23% since the start of December, it’s a 37.5% rise since the last reporting season back in August.

Bui likes how the company has shown an ability to execute on its vision.

“The group delivers building and restoration services in Australia and the US,” Bui told The Bull.

“The business has generated strong growth in revenue and net profit after tax during the past three years.”

The Johns Lyng management has taken a multi-pronged approach to achieving growth in the business and the stock.

“Organic growth has been supported by its acquisition strategy,” Bui said.

“So far, expanding to the US has been positive. Recent natural disasters are providing a strong pipeline of work.”

Bui is well-supported among his peers on his bullishness.

Broking platform CMC Invest shows five out of seven analysts rate Johns Lyng as a strong buy.

ASX shares boasting ‘robust growth, recurring revenues’

Human resources software maker Readytech Holdings Ltd (ASX: RDY) has enjoyed a 15% surge in its share price since the last reporting season six months ago.

“Readytech provides software-as-a-service technology to businesses and educators,” said Bui.

“It offers robust growth, recurring revenues and a reasonable valuation.”

The current valuation can be compared to a failed deal about 15 months back.

“On February 22, the share price was still trading below a shelved takeover bid for ReadyTech at $4.50 a share in late 2022, despite a growing business.”

This all points to a strong outlook for the software firm.

“Organic growth in the mid-teens has been previously forecast by the company. 

“At recent price levels, we believe ReadyTech offers value.”

The tech stock is another favourite among professional investors, with all five analysts surveyed on CMC Invest currently rating it as a buy.

The post 2 ASX shares showing ‘strong growth’ that offer value right now appeared first on The Motley Fool Australia.

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More reading

• Where I’d invest $10,000 right now in ASX 200 shares
• I’d aim to turn a $20,000 savings account into $25,400 of passive income
• A once-in-a-decade chance to get rich from ASX 200 shares?
• 1 attractive ASX growth stock for 2024 and beyond
• $20k of savings? Here’s how I’d aim to turn that into a second income of $6,705 a month!

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and ReadyTech. The Motley Fool Australia has recommended Johns Lyng Group and ReadyTech. 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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Thinking about buying Washington H. Soul Pattinson and Co Ltd (ASX: SOL)? I wouldn’t blame you. I’ve made no bones in the past about my love of Soul Patts shares.

This ASX 200 investing house remains one of my favourite ASX investments of all time, and one of the largest positions in my Australian shares portfolio to this day.

However, this isn’t your typical ASX stock. As such, if you’re buying Soul Patts shares, it’s very important that you understand exactly what kind of assets you’re really buying.

Washington Soul Pattinson is a company that’s really closer in structure to a managed fund rather than something like Woolworths Group Ltd (ASX: WOW) or JB Hi-Fi Ltd (ASX: JBH).

That’s because instead of producing or manufacturing goods or services to sell to customers as a traditional business does. Soul Patts runs a huge portfolio of other assets on behalf of its investors. Thus, buying a Soul Patts share is really just buying a stake in this underlying portfolio.

But what assets are we talking about here?

Soul Patts divides its investment portfolio into six underlying components, which sit outside the company’s ‘Net Working Capital’ fund for acquisitions and the like. Let’s break them all down using the data contained in Soul Patts’ annual report from 2023.

What you’re really buying when you purchase Soul Patts shares

The first (and largest) is its ‘strategic’ portfolio. Making up 48% of Soul Patts’ overall house, this is where the company keeps track of its significant positions in a handful of other ASX shares.

Some notable examples are a 12.8% stake in TPG Telecom Ltd (ASX: TPG), a 39.2% share of New Hope Corporation Ltd (ASX: NHC), a 43.1% share of Brickworks Ltd (ASX: BKW) and a 36.6% position in Pengana Capital Group Ltd (ASX: PCG).

Next up is Soul Patts’ ‘Large Cap’ portfolio. This is primarily made up of the basket of blue chip shares that Soul Patts acquired when it bought up the listed investment company (LIC) Milton Corporation a few years ago. Today, it accounts for 21% of Soul Patts’ investing house.

Then we have the company’s ‘Private Equity’ division. At 11% of Soul Patts’ overall portfolio, this is where the company keeps its unlisted company investments, which are typically small, high-growth opportunities.

These are predominantly selected from areas like agriculture, energy transition materials and technologies, and education. Some examples are Soul Patts’ investment in Aquatic Achievers swim schools and electrical supply company AMPControl.

Yield and property

The next part of the Soul Patts picture is the company’s ‘Structured Yield’ portfolio. Here, the company invests in “actively managed structured credit investments”, which basically involves lending other businesses money. It contributes around 6% to the company’s overall investments.

Following that, we move on to the ‘Emerging’ division. This part of the business is similar to Soul Patts’ ‘Private Equity’ portfolio, except it focuses on companies that are already listed or are in the late stages of preparing for an initial public offering (IPO). It accounts for another 6% of Soul Patts’ investing house.

Finally, Soul Patts’ last portfolio is ‘Property’, making up just 1% of its overall investments. Here’ Soul Patts owns actively managed direct property investments, as well as joint ventures. It’s a small part of the overall picture, but one example is a retirement development that the company is building in Cronulla, Sydney.

So if you’re buying Soul Patts shares today, these investments are what you’re really purchasing a stake in.

Of course, this inherent diversification and active management is what many investors find so appealing with Soul Patts. After all, this company has proven that it has what it takes to deliver outsized returns over long periods of time.

According to the company’s December AGM update, Soul Patts’ underlying portfolio delivered an average return of 12.4% per annum (including dividends) over the ten years to 31 July 2023. That rises to 12.5% per annum over 20 years. Over the 12 months to 31 July, the company hit a return of 32.4%.

The post Buying Soul Patts shares? Here’s what you’re really buying appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Jb Hi-Fi and Tpg Telecom. 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 Motley Fool always recommends investors tread carefully with ASX shares that have a massive dividend yield.

After all, the yield could have become sky-high because the stock price has nosedived. The business could be suffering or its industry is in strife.

That is, there is not much point in harvesting a 20% dividend yield if the stock price halves.

Having said that, if you have an immediate goal of nabbing $1,000 of passive income from just a $10,000 outlay, there are some options.

Check this out:

Huge dividend producer

East coast coal miner Yancoal Australia Ltd (ASX: YAL) has an admirable recent record of handing out huge dividends.

The company released its 2023 full-year result on Friday night, which showed revenue had come down from $10.5 billion to $7.8 billion.

The drop was attributed to a 39% fall in the realised coal price, which cancelled out a 14% surge in attributable saleable coal production during the year.

Chief executive David Moult seemed to be happy with the direction of the business.

“In the second half, attributable saleable coal production jumped 32% and cash operating costs fell 21%,” he said.

“We expect to carry this operational momentum into 2024. Production volumes will vary each quarter, with higher output (and resulting lower unit costs) likely in the second half.”

A grand of passive income

The wash-up of all this was that Yancoal announced a dividend of 32.5 cents per share.

That means that when that’s paid on 30 April, the dividend yield will be around 12.5% based on the current share price.

So buying Yancoal shares now with the $10,000 could deliver you $1,250 within a year.

Of course, the fortunes of an energy stock such as this are highly dependent on how global commodity prices fluctuate.

At least for now, both analysts covering Yancoal believe it’s a strong buy, according to CMC Invest.

The Yancoal share price is up 35% over the past five years.

The post I’d target a $1,000 passive income from $10k with this ASX high yielder appeared first on The Motley Fool Australia.

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More reading

• An 18% yield but down 13% since March! Time to buy more of this star ASX dividend share?

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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