Tag: Motley Fool

The Accent Group Ltd (ASX: AX1) share price is sinking on Friday morning.

At the time of writing, the footwear retailer’s shares are down 8.5% to $2.01.

This follows the release of the company’s half-year results before the market open.

Accent share price sinks on half-year report

• Sales down 1.7% to $810.9 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 7.5% to $157.5 million
• Net profit after tax down 27.6% to $42.2 million
• Fully franked interim dividend down 29% to 8.5 cents per share

What happened during the half?

For the six months ended 31 December, Accent reported a 1.7% decline in sales (including franchises) to $810.9 million. Like for like sales were down 0.6%.

Strong sales results were achieved across Skechers, The Athlete’s Foot, Hype DC, HOKA, Stylerunner, and Nude Lucy. However, challenging sales conditions were experienced in Platypus, Dr Martens, Vans, and Glue.

Also dragging on its performance was the wholesale business, which reported a 25% decline in sales. This reflects softer demand from its B2B customers.

Although Accent’s gross margin improved 140 basis points to 56.6%, its cost of doing business (CODB) margin offset this with an increase to 45% from 42% a year earlier. Management advised that its CODB was impacted by negative LFL retail sales, lower wholesale sales, and cost inflation in occupancy and team costs.

It is aiming to combat this with further cost efficiency initiatives in non-customer facing areas, including an ongoing review of support office costs.

In light of its profit decline, the Accent board elected to cut its fully franked interim dividend by 29% to 8.5 cents per share.

Management commentary

Accent’s CEO, Daniel Agostinelli, saw a number of positives from the half. He said:

Retail sales for the key trading period of Black Friday, Christmas and Boxing Day were positive including record Boxing Day sales online and instore. Like-for-like retail sales for this period (Weeks 20-26) were up 1.8%. I am delighted with the ongoing performance in Skechers, Hype DC, The Athlete’s Foot (TAF), HOKA, Stylerunner and Nude Lucy. Nude Lucy now has 34 stores trading. Digital sales continue to grow strongly, and online EBIT was ahead of last year. The Group opened 72 new stores in H1 (including 13 new Nude Lucy stores). The Company closed H1 FY24 with inventory levels below last year ($256.6 million vs $267.4 million) and aged stock levels are clean.

Outlook

The good news for shareholders is that the second half has started positively.

Management advised that total owned sales year to date to the end of January are up 1.6% and owned retail sales over this period are up 5.6% reflecting new store openings.

But much like the first half, the company’s gross margin and CODB margin remain higher than the prior corresponding period.

Mr Agostinelli concludes:

Whilst we recognise that there is some uncertainty in the economic outlook, in the context of the consumer environment, we have been pleased with trading and execution in the key periods of November, December and January. Looking forward, our store opening program remains on track. Stylerunner performance has been positive and the Nude Lucy brand is resonating well with customers. Continued store rollouts are planned in both banners.

The Accent share price is down 6% over the last 12 months.

The post Accent share price sinks 8% on earnings slump and dividend cut appeared first on The Motley Fool Australia.

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More reading

• Analysts say these high-yield ASX dividend stocks are buys
• 2 ASX dividend shares to buy to supercharge your income
• How long would it take to turn $20,000 into $100,000 with ASX dividend stocks
• Last time this ASX 300 stock reported results, it surged 19%. Will it deliver again next week?
• 3 ASX dividend shares with 5%+ yields to buy now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Forget chalk and cheese, lithium and cheese is about as different as it gets on the Australian share market.

But funnily enough, they do share one thing in common. That is that the potential for some very big returns on the Australian share market.

That’s the view of analysts at Bell Potter, which have just named a couple of ASX 200 stocks specialising in these products as buys.

Here’s what you need to know:

Bega Cheese Ltd (ASX: BGA)

Bell Potter has retained its buy rating on this diversified food company’s shares with a $5.00 price target. This implies potential upside of almost 25% for investors over the next 12 months.

Its analysts believe that the ASX 200 stock is trading at an unwarranted discount and suspect it could soon rerate materially. The broker said:

Our Buy rating is unchanged. While the share price has bounced from the bottom, BGA continues to trade at an unreasonably high discount to its historical EV/EBITDA multiple (12.4x 10yr average) and its dairy FMCG peer group (12.3x FY24e EBITDA). Commodity prices (particularly SMP) have rallied from the low and the $250m EBITDA target pathway is becoming clearer. Continued execution against this target has the scope to see the BGA share price lift materially in outward years.

Mineral Resources Ltd (ASX: MIN)

Another ASX 200 stock that the broker is bullish on is mining and mining services company Mineral Resources. This morning, the broker retained its buy rating and $75.00 price target on its shares. This suggests potential upside of 23% for investors.

Bell Potter likes the company due to its production growth plans. It highlights:

Our twelve-month forward valuation for MIN is based on a DCF based valuation of our production scenarios for MIN’s Mining Services, Lithium, Iron Ore and Energy operations and projects. MINs businesses are in a period of significant growth. Over the next two-years Lithium and Iron Ore production quantities will grow substantially, accompanied by associated increases in contracted Mining Services volumes.

The post Lithium and cheese: Bell Potter tips 20%+ returns from these ASX 200 stocks appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today
• Bega Cheese shares soar 11% on profit jump
• Mineral Resources share price drops on earnings decline and dividend crunch
• 2 battered ASX mining shares to buy for cheap right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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On Thursday, Pilbara Minerals Ltd (ASX: PLS) shares traded flat after the release of the lithium miner’s half-year results.

In case you missed it, the company reported a 65% decline in revenue to $757 million, a 77% decline in EBITDA to $415 million, and a 78% drop in underlying profit after tax to $273 million.

This was of course driven by a collapse in lithium prices over the last 12 months.

Should you be buying Pilbara Minerals shares following its results? Let’s see what one broker is saying.

Are Pilbara Minerals shares in the buy zone?

The team at Goldman Sachs has been running the rule over the result and wasn’t overly impressed. It said:

PLS reported Underlying EBITDA/NPAT of A$416mn/A$273mn, below GSe/ VA consensus expectations on higher exploration and corporate expenses (noted to be broadly the ongoing level in the near-term), and down on PcP due to lower revenue due to the moderating lithium price environment, with PLS realising -A$455mn of provisional pricing adjustments in the half.

In light of this, it will come as no surprise to learn that the broker’s bearish view has not changed following this release.

According to the note, Goldman has reiterated its sell rating on the company’s shares with a trimmed price target of $2.90. This implies potential downside of 21% for investors over the next 12 months.

The broker concludes:

Our 12m PT is down to A$2.90/sh, where PLS remains at a premium to peers (1.1x NAV & pricing ~US$1,260/t LT spodumene; peer average ~1.1x & ~US$1,160/t), with near-term FCF continuing to decline on lithium prices and increasing growth spend (c.-10% FCF yield in FY24E, and c.0% in FY25-27E). We also continue to see risk that a Beyond P1000 expansion disappoints vs. market expectations on a combination of capex, size, or timing. PLS also trades on a significant premium out to FY30E vs. peers on both EV/EBITDA and EV/Production on broadly normalised production/lithium prices.

The post Here’s why Pilbara Minerals shares could crash 21% appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals shares lower on disappointing half-year earnings miss
• Pilbara Minerals share price on watch amid 78% half-year profit decline and no dividend
• Pilbara Minerals shares could drop 12% on upcoming results if history repeats itself
• These are the 10 most shorted ASX shares
• 3 things ASX investors should watch this week

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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Qantas Airways Limited (ASX: QAN) shares were under pressure on Thursday following the release of its half-year results.

After initially taking off in early trade, the airline operator’s shares soon lost altitude and dropped deep into the red.

This led to the Qantas share price ending the day almost 7% lower at $5.21.

Should you buy Qantas shares?

If you want some big returns over the next 12 months, then you may want to consider buying the Flying Kangaroo’s shares.

That’s because the team at Goldman Sachs believes that its shares could rise over 50% from current levels.

According to a note out of the investment bank this morning, its analysts have reiterated their buy rating with a trimmed price target of $8.05.

Based on where Qantas shares currently trade, this implies potential upside of 55% for investors.

In addition, it is worth noting that while the broker doesn’t expect dividends in FY 2024, it expects the company to resume paying them next year.

And it could be worth the wait. Goldman is forecasting a 30 cents per share dividend for FY 2025, which equates to a 5.8% dividend yield.

What did the broker say?

While Goldman has revised its earnings estimates lower, it highlights that its earnings are still significantly stronger than pre-COVID times. Yet its valuation is not. It explains:

Despite negative revisions, we note that our FY24 EPS remains 52% above pre-COVID levels even as the business faces higher (vs pre COVID) fuel prices, elevated current customer investment and a 10% yoy GSe decline in unit revenue (FY24 RASK is 24% above pre-COVID equates to average 4.4% per annum). Despite this, QAN is trading 17% below its pre-COVID market capitalization with the enterprise value 24% lower. Retain Buy.

The post Why Qantas shares could rise over 50% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Qantas share price takes off following $1.2b half-year profit
• The best ASX shares to buy with $1,000 right now
• 5 ASX shares I think you can confidently invest $500 in right now
• Morgans names the best ASX 200 stocks to buy in February

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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S&P/ASX 200 Index (ASX: XJO) shares have added a lot of wealth for many investors. I think they are a great idea for investors to jump on for opportunities when the chance is there.

The ASX 200 has returned an average of around 10% per annum over the ultra-long term. This sort of return can help people become a lot wealthier.

Using a compound interest calculator, investing $1,000 a month that makes 10% per annum becomes $687,000 after 20 years. Of course, there’s no certainty about what the future holds for the ASX 200 share market – it could do better than 10% per annum, or it could do worse.

Is this a great time to invest?

The ASX 200 as a whole is trading at close to its all-time high, so I wouldn’t call it a once-in-a-decade opportunity as a whole.

Even so, I still think investors can see adequate returns from the iShares Core S&P/ASX 200 ETF (ASX: IOZ) or the Vanguard Australian Shares Index ETF (ASX: VAS) which tracks the S&P/ASX 300 Index (ASX: XKO).

If we look at the chart over the last couple of years, there were some very opportune times to invest in the ASX 200, in June 2022, October 2022 and late October 2023.

I wish I could go back to the date of this article and invest more in Lovisa Holdings Ltd (ASX: LOV), Pinnacle Investment Management Group Ltd (ASX: PNI) and Johns Lyng Group Ltd (ASX: JLG), which are up by 40%, 30% and 14.6% respectively since 13 November 2023. Meanwhile, non-ASX 200 share Temple & Webster Group Ltd (ASX: TPW) has risen 80%. But we shouldn’t expect the same return to continue over the next few months.

I always think it’s possible to find opportunities in the ASX share market. Sometimes there are loads of great opportunities, and other times there are fewer bargains. Interest rates are still high, so I’d say some stocks have gotten ahead of themselves.

Which ASX 200 shares I’d buy

I believe some ASX 200 shares have such strong long-term growth potential that they can easily justify their valuations. I recently wrote about Johns Lyng and Pinnacle in separate articles, as well as Metcash Ltd (ASX: MTS) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) in this article.  

I think there are even more opportunities the further we go down the market capitalisation list outside of the ASX 200.

While I don’t think today is the best time to invest, I think we can still find wonderful businesses that have lots of growth potential. They can help us build wealth, if we choose the right stocks and invest regularly.

The post A once-in-a-decade chance to get rich from ASX 200 shares? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today
• Lovisa share price soars after opening 74 new stores in first half
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Tristan Harrison has positions in Johns Lyng Group, Lovisa, Metcash, Pinnacle Investment Management Group, Temple & Webster Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, Lovisa, Pinnacle Investment Management Group, Temple & Webster Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Johns Lyng Group, Lovisa, Metcash, and Temple & Webster 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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There are many ASX dividend shares for income investors to choose from on the Australian share market.

Two that have been rated as buys and tipped to offer big dividend yields in the near term are named below.

Here’s what analysts are forecasting from them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share that could be a buy according to analysts is Aurizon.

It is a national rail and road network operator which connects miners, primary producers, and industry with international and domestic markets.

Ord Minnett is positive on Aurizon and earlier this month put an accumulate rating and $4.70 price target on its shares.

In respect to dividends, the broker is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.97, this will mean yields of 4.5% and 6.1%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that analysts have named as a buy is HomeCo Daily Needs.

It is a property investment company with a focus on convenience-based assets. These are assets found across neighbourhood retail, large format retail, and health and services.

In response to its half-year results release this month, the team at Morgans has retained its add rating and $1.37 price target. The broker believes the company is positioned to benefit from “accelerating click & collect trends” and its development pipeline.

Morgans continues to forecast some big dividend yields in the near term. It expects dividends per share of 8 cents in FY 2024 and then 9 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.24, this will mean yields of 6.5% and 7.25%, respectively.

The post Want big income? Buy these high-yield ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Morgans says these high-yield ASX dividend stocks are buys
• Here are the top 10 ASX 200 shares today
• Aurizon share price charges higher on half-year earnings beat
• 3 ASX dividend shares for income investors to buy now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon and HomeCo Daily Needs REIT. 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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Rio Tinto Ltd (ASX: RIO) shares have been under pressure this week.

This has been driven by a pullback in iron ore prices and the release of the miner’s full-year results.

While disappointing for shareholders, it could prove to be a buying opportunity for the rest of us.

That’s the view of analysts at Goldman Sachs, which remain very positive on the mining giant.

What is the broker saying about Rio Tinto shares?

Goldman was relatively pleased with the company’s full-year results and believes it is well-positioned for the future. Particularly given the company’s growth options. It said:

RIO continues to believe they are option rich and have the best exploration pipeline in years, perhaps decades. We believe RIO is focused on creating value for shareholders through early stage exploration rather than large M&A, a good example being the recent copper JV with Codelco on the Nuevo Cobre project could extend into lithium salar projects in Chile.

In light of the above, the broker believes that Rio Tinto shares are attractively priced and has named five reasons to invest.

These are its compelling relative valuation at ~0.85x NAV, its attractive free cash flow (FCF) and dividend yield, strong production growth in 2024 and 2025, the Pilbara turnaround, and its compelling high margin low emission aluminium exposure.

In respect to its production growth, the broker said:

Rio is a FCF and production growth story in our view, with forecast Cu Eq production growth of ~5-6% in 2024 & 2025 driven by the ramp-up of the Oyu Tolgoi UG copper mine & a recovery at Escondida and Bingham, higher Pilbara Fe shipments with the ramp-up of new mines, and a rebound in aluminium production post labour and equipment challenges and the acquisition of Matalco.

Big returns

Goldman has retained its buy rating with a slightly trimmed price target of $138.30. This implies potential upside of 11% for investors.

In addition, it is forecasting a US$4.40 (A$6.71) per share fully franked dividend in FY 2024. This represents a 5.4% dividend yield, boosting the total potential return beyond 16%.

The post 5 reasons to buy Rio Tinto shares now appeared first on The Motley Fool Australia.

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More reading

• Rio Tinto shares fall on FY23 earnings decline and dividend cut
• Everything you need to know about the Rio Tinto dividend
• 5 things to watch on the ASX 200 on Thursday
• Rio Tinto share price on watch following FY 2023 earnings miss
• Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing

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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Having a few ASX 200 blue chip shares in your portfolio is often a very good idea.

That’s because blue chips are usually established companies with strong business models and positive long-term outlooks. This can make them a great foundation to build out a portfolio from.

But which ones offer strong returns for investors over the next 12 months?

Two that brokers are tipping to rise meaningfully from current levels are listed below. Here’s what they are saying about these strong shares:

ResMed Inc (ASX: RMD)

Over at Morgans, its analysts believe that the ResMed could be an ASX 200 blue chip share to buy.

The broker currently has an add rating and $32.82 price target on its shares. This suggests potential upside of almost 20%. Its analysts commented:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Transurban Group (ASX: TCL)

The team at Bell Potter thinks that this toll road operator could be a top option for investors.

It has a buy rating and $15.90 price target on the ASX 200 blue chip share. This implies potential upside of almost 20% for investors over the next 12 month. It also expects dividend yields in the region of 5% in the coming years.

The broker recently commented:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group’s current pipeline of growth projects is $3.3 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

The post These super-strong ASX 200 blue chip shares that could deliver 20% returns appeared first on The Motley Fool Australia.

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More reading

• ASX blue chip shares: The best of the best for February 2024
• Buy Telstra and these ASX 200 dividend stocks
• The best ASX shares to invest $20,000 in right now
• 3 high-quality ASX 200 dividend shares to buy for a second income
• 2 ASX 200 growth shares to buy with ‘immense opportunity’ ahead

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Transurban Group. The Motley Fool Australia has positions in and has recommended ResMed. 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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Analysts have been busy adjusting their financial models and recommendations during earnings season this month.

Two ASX dividend stocks that analysts remain positive on post-results releases are listed below. Here’s what they are saying about them:

Baby Bunting Group Ltd (ASX: BBN)

Morgans thinks investors should be sticking with this baby products retailer despite its underwhelming performance during the first half. It has retained its add rating and $2.00 price target. The broker said:

It was a tough half for BBN, with the consumer under pressure and price competition intense. […] We’ve made no major changes to our estimates with our FY24 NPAT forecast coming down 2%. We continue to believe BBN will grow earnings in FY25 as its simpler price architecture and greater focus on value start to drive the top line. We retain an Add rating.

Morgans expects dividends per share of 6 cents in FY 2024 and 9.8 cents in FY 2025. Based on the current Baby Bunting share price, this equates to fully franked yields of 3.7% and 6%, respectively.

Woolworths Group Ltd (ASX: WOW)

Analysts at Goldman Sachs think that this supermarket giant could be an ASX dividend stock to buy right now. The broker has responded to its results release by retaining its buy rating with a $40.40 price target.

Goldman remains positive despite the negative news flow which has been weighing on its shares. It said:

WOW reported 1H24 with +10% EBIT in AU Foods YoY the key bright spot, though this was dragged by weaker-than-expected H2 first 7 weeks AU Foods sales growth of +1.5% and further guidance of a slower EBIT growth in 2H. Additionally, the ongoing ACCC pricing inquiry and earlier-than-expected announcement of CEO Brad Banducci’s retirement weighed on the share price. Against this, we retain our positive view on WOW. […] We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers.

As for income, the broker is forecasting dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025. Based on its current share price, this will mean fully franked yields of 3.3% and 3.6%, respectively.

The post Analysts have put buy ratings on these ASX dividend stocks appeared first on The Motley Fool Australia.

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• Are Woolworths shares dirt cheap following the selloff?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Forgive me if it sounds a bit geeky, but I really enjoy researching S&P/ASX 200 Index (ASX: XJO) dividend stocks, looking for that next passive income jewel to add to my portfolio.

While my hunt isn’t strictly limited to the ASX 200, I have found that the bigger companies tend to be less volatile. They also tend to be more reliable with their dividend payouts over time. And I prefer not to see my passive income stream take an unexpected hit.

As I’ve mentioned before, I also lean towards stocks paying fully franked dividends. That way, I can hold onto more of those dividend payments when the ATO comes around for its pound of flesh.

With that said, the dividend share I’ve got my eye on for passive income in 2024 is ASX 200 petroleum refiner and fuel distributor Ampol Ltd (ASX: ALD).

Tapping Ampol for superior passive income

Ampol reported its full 2023 calendar year results on 19 February. The Ampol share price closed up 0.8% on the day.

Among the highlights, the ASX 200 dividend stock achieved a 2% increase in earnings before interest and tax (EBIT) from 2022 – excluding significant items – to $1.30 billion.

Ampol also reported an all-time high total sales volume for 2023 of 28.4 billion litres, up 17% from the prior year. And while net profit after tax (NPAT) was down 25% year on year to $549 million, net borrowings also fell by more than $200 million to $2.2 billion.

As for that passive income I’m after, Ampol declared a record final fully franked dividend of $1.80 a share, up 16% from the 2022 final dividend. Which is a trend I like to see.

That brings the full-year dividend payout to $2.75 per share. At the recent price of $37.55 a share, that sees this ASX 200 dividend stock trading at a fully franked yield of 7.3%.

If I’m holding shares at market close on 29 February, I’ll receive that $1.80 per share in dividends on 27 March. (Ampol trades ex-dividend on 1 March.)

Atop this welcome passive income, the Ampol share price also appears well-placed for more gains over the coming year. (Shares are up 18% over the past 12 months.)

Following on Ampol’s 2023 results, Macquarie raised its target price for Ampol stock by 11% to $42.50 a share. That’s more than 13% above current levels.

The post 1 ASX 200 dividend stock I’m buying for superior passive income in 2024 appeared first on The Motley Fool Australia.

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More reading

• How these 4 ASX 200 shares just gained major broker upgrades
• On the hunt for passive income? Here’s what you need to know about the record Ampol dividend
• ASX 200 energy stock Ampol charging higher on record 2023 sales
• This ASX 200 energy stock is predicted to pay a dividend yield of almost 8%!
• Will Ampol shares pay another monster dividend in 2024?

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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