Tag: Motley Fool

The National Australia Bank Ltd (ASX: NAB) share price will be on watch today.

That’s because the big four bank has just released its first quarter update.

NAB share price on watch following Q1 update

• Unaudited statutory profit of $1.7 billion
• Unaudited cash earnings down 16.9% to $1.8 billion
• Group CET1 ratio of 12%

What happened during the quarter?

For the three months ended 31 December, NAB reported cash earnings of $1.8 billion, which represents a 16.9% decline compared to the prior corresponding period.

However, compared with the second half quarterly average, NAB’s cash earnings before tax and credit impairment charges were broadly stable.

Management advised that this reflects a 1% increase in revenue, driven by Markets & Treasury (M&T) income. Excluding M&T, revenue was broadly flat with lower margins offset by volume growth.

The bank’s net interest margin (NIM) was slightly higher. Though, once again this was due to M&T. Excluding it, NAB’s NIM declined modestly with higher deposit costs and competitive lending pressures, partly offset by higher earnings on capital.

NAB’s expenses rose 2% over the second half average, reflecting higher performance-based compensation and leave provisions, higher technology costs, and investment in financial crime capability. This was partly offset by productivity.

For FY 2024, management continues to target productivity savings of approximately $400 million and for expense growth to be lower than FY 2023 growth of 5.6%.

How does this compare to expectations?

The good news for the NAB share price today is that this result appears to have come in ahead of expectations.

The consensus estimate was for cash earnings of $1.73 billion, whereas NAB reported cash earnings of $1.8 billion.

Management commentary

NAB’s CEO, Ross McEwan, was pleased with the quarter. He said:

We have started FY24 well. Our 1Q24 financial performance is sound and there is good, targeted momentum across our bank. Over the December quarter lending balances rose 1%. This includes 2% growth in Australian SME business lending and 1% growth in Australian home lending. Customer deposit balance growth of 2% across both Business & Private Banking and Personal Banking is also pleasing.

1Q24 cash earnings declined 3% compared with the 2H23 quarterly average but were broadly stable excluding the impact of a higher effective tax rate of 30%. This reflects a continued disciplined approach to growth during what remained a highly competitive period, combined with a focus on productivity to help offset cost pressures.

The post NAB share price on watch following Q1 update appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Own NAB shares? Here’s how much profit to expect in Q1
• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Transform $50 into monthly income: The best ASX dividend stocks under $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 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 lucky enough to have $1,000 burning a hole in your pocket, then it could be worth putting it to work in the share market.

Especially given the potential returns on offer from some ASX shares right now.

For example, two that Morgans is tipping to provide big returns over the next 12 months are listed below.

Here’s why they could be good options for a $1,000 investment:

Qantas Airways Limited (ASX: QAN)

Morgans thinks that this airline operator’s shares are great value at current levels. The broker has the company on its best ideas list with an add rating and $7.30 price target.

It likes Qantas due to its cheap valuation and structurally stronger earnings. It explains:

QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings). The strong pent-up demand to travel post-COVID should result in a healthy demand environment for some time, underpinning further earnings growth over FY24/25. QAN’s balance sheet strength positions it extremely well for its upcoming EBIT-accretive fleet reinvestment and further capital management initiatives (recently announced another A$500m on-market share buyback at its FY23 result).

A $1,000 investment would turn into almost $1,300 if Morgans is on the money with its recommendation.

South32 Ltd (ASX: S32)

The broker remains positive on this diversified miner and has an add rating and $4.00 price target on the ASX share.

It likes South32 due to the diversity of its operations and the de-risking of its portfolio. It explains:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

Based on its current share price, a $1,000 investment could turn into $1,400 if its shares reach Morgans’ price target.

The post The best ASX shares to buy with $1,000 right now appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• South32 share price lifts off as ASX 200 miner greenlights US$2.2 billion project
• Brokers say these ASX mining shares are strong buys in February
• 5 ASX shares I think you can confidently invest $500 in right now
• Morgans names the best ASX 200 stocks to buy in February

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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has been well and truly out of form over the last 12 months.

During this time, the ASX dividend stock has lost 55% of its value.

This has been driven by management’s failed execution of its response to inflationary pressures.

And while its performance and those declines are very disappointing, it could have created a buying opportunity for income investors.

An ASX dividend stock to buy

A number of brokers believe that Domino’s shares are in the buy zone right now.

For example, Ord Minnett currently has an accumulate rating and lofty $68.00 price target on the company’s shares. This implies over 70% upside for investors over the next 12 months.

In addition, the broker sees the pizza chain operator as an attractive option for income investors. It is forecasting dividends per share of $1.12 in FY 2024 and then $1.70 in FY 2025.

Based on the current Domino’s share price of $39.60, this will mean yields of 2.8% and 4.3%, respectively.

Who else is bullish?

Over at Macquarie, its analysts are positive, but expect it to take longer for Domino’s dividend to recover to former glories.

Macquarie has an outperform rating and $48.00 price target on the ASX dividend stock, which suggests upside of over 20% from current levels.

As for income, the broker has pencilled in dividends per share of $1.03 in FY 2024 and then $1.16 in FY 2025. This would mean dividend yields of 2.6% and 2.9%, respectively, for investors.

All in all, these analysts appear to believe that Domino’s beaten down shares could be a great option for income investors looking for some bargain buys.

The post 1 ASX dividend stock down 55% to buy right now appeared first on The Motley Fool Australia.

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More reading

• 2 ‘oversold’ ASX shares to get onto right now at ‘attractive entry levels’
• 6 oversold ASX shares to buy in February 2024
• Chair says his $2.8 billion Domino’s stock meltdown ‘doesn’t matter’
• These ASX 200 shares could rise 30% to 50%
• As the Domino’s share price continues to struggle, is it a no-brainer buy?

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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 great thing about exchange traded funds (ETFs) is that they allow investors to buy a slice of many of the world’s best companies in one fell swoop.

For example, the three ASX ETFs named below are filled to the brim with world class companies.

Here’s why they could be top options for investors in February:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you want to invest in the crème de la crème, then the BetaShares NASDAQ 100 ETF could be the one for you. It provides investors with the opportunity to invest in many of the biggest and best companies the world has to offer. These are the titans of our age and provide services that many of us use on a daily basis. This includes search engines, social media platforms, mobile phones, coffee stores, streaming services, and online shops.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another option to consider is the popular VanEck Vectors Morningstar Wide Moat ETF. It aims to buy high-quality companies that have fair valuations and sustainable competitive advantages (or wide moats). These are the types of companies that Warren Buffett buys. And given his track record over multiple decades, this investment strategy appears to work. At present, there are around 40 stocks included in the ETF.

Betashares Australian Quality ETF (ASX: AQLT)

If you want to invest in the best shares that Australia has to offer, then the Betashares Australian Quality ETF could be the one for you. Betashares named it as one of its top ideas for 2024. It highlights that it offers investors access to a portfolio of quality companies that has the potential to produce long-term performance superior to that of the relevant broad share market benchmarks.

The post These ASX ETFs could be world class options in February appeared first on The Motley Fool Australia.

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More reading

• 2 no-brainer ASX ‘beginner’ stocks I’d buy
• Buy and hold these ASX ETFs for 10 years or more
• 3 ASX ETFs for smart investors to buy
• 2 excellent ASX ETFs I’d buy for retirement
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat 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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Australian income investors are a lucky bunch. That’s because the Australian share market has a large amount of ASX dividend shares to choose from right now.

But which ones could be buys for investors this week?

Two that analysts are feeling particularly positive about at the moment are listed below. Here’s what sort of dividend yields and capital gains you can expect from them:

Centuria Industrial REIT (ASX: CIP)

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

It is Australia’s largest domestic pure play industrial property investment vehicle with a portfolio of high-quality, fit-for-purpose industrial assets.

In response to its half-year results earlier this month, the team at UBS has retained its buy rating and $3.71 price target on its shares.

As for income, the broker is expecting Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.39, this represents yields of 4.7% in both years.

Coles Group Ltd (ASX: COL)

Citi remains very positive on this supermarket giant despite recent price gouging controversy and sees it as an ASX dividend share to buy.

The broker has a buy rating and $17.50 price target on the company’s shares.

While it expects a subdued year in FY 2024, Citi is forecasting solid earnings growth in both FY 2025 and FY 2026.

It expects this to support the payment of fully franked dividends of 64 cents per share in FY 2024 and then 70 cents per share in FY 2025. Based on the current Coles share price of $16.03, this will mean yields of 4% and 4.35%, respectively.

The post Analysts say these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Retirees: Here’s how to boost your pension in 2024
• Need an income boost? Buy these ASX dividend stocks
• How price cuts on the shelves could hurt Coles shares
• 3 no-brainer ASX dividend stocks to buy for market-beating returns in 2024
• 3 ASX 200 dividend shares to buy with great yields

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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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Just because a stock has fallen off a cliff doesn’t mean it is a bad buy.

That’s because the past has nothing to do with future performance. And the outlook for the business from this point on could be rather bright.

Maybe there has been a change of strategy, where a struggling business unit has been cut loose. Perhaps a change of management. Or even the stock has fallen so far that it’s now close to what the assets are worth.

Securities Vault co-founder Nathan Lodge this week noticed that one ASX stock that has plunged 54% since early September is now looking ripe to buy.

Let’s check out his reasoning:

The ASX stock winning on multiple levels

Lodge describes Pointsbet Holdings Ltd (ASX: PBH) as a corporate bookmaker that runs a “cloud-based wagering platform”.

“The company has operations in Australia and Canada,” Lodge told The Bull.

“This company is well managed. It also communicates well with investors.”

Most of the last few months’ losses in the share price came on just a single day in September, after Pointbet sold off its US business.

The company had announced that proceeds from that sale would be distributed to investors who were shareholders on 5 September. So on 6 September the stock plunged roughly the equivalent of the capital return.

And now, with an unprofitable venture no longer weighing the business down, Lodge reckons it’s all onwards and upwards.

“In Australia, it posted a total net win of $59.5 million in the second quarter of fiscal year 2024, up 3% on the prior corresponding period. 

“The total net win in Canada was $10.5 million, up 109%.”

According to broking platform CMC Invest, four out of six analysts currently rate the bookie stock as a buy.

Lodge’s team is in no doubt with their bullishness for the $250 million company.

“The company expects cash active clients to grow in the second half. We like the outlook.”

The post This ASX stock has halved in 6 months. It could be a bargain buy appeared first on The Motley Fool Australia.

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More reading

• How much do you need to manage your own superannuation?
• I’d need this many Lovisa shares to aim for passive income of $10k a year
• Here are the top 10 ASX 200 shares today
• Goldman Sachs says buy despite this ASX 200 stock trading at a record high
• Is the 11.3% dividend yield on Woodside shares for real?

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 PointsBet. 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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For many Australians, a superannuation account is the largest asset they may own, at least outside the family home. Super accounts are supposed to be our best shot at a comfortable retirement. And with what is now 11% of every paycheque going into super, the value of our super fund can get fairly significant after a few years in the workforce.

However, most Australians outsource the management of this significant well of wealth to an external party. This is fair enough for many of us. Running a super fund is complicated and expensive. As such, many of us are better off if a professional fund manager takes care of our retirement needs.

But other Australians might desire to have more control over their retirement and by extension, their financial destiny. Managing our own super ourselves is completely legal. All you have to do is set up a self-managed super fund (SMSF).

Now the idea of managing our own superannuation – deciding which assets and investments our retirement money is being invested in – might sound appealing to many readers today. But all Australians should know that running an SMSF is an expensive and complicated endeavour – just like running an ordinary super fund is. As such, it probably won’t suit everyone.

But how much should you have in super before even considering an SMSF?

How much does it take to run a self-managed superannuation fund?

Well, as we’ve covered here at the Fool before, research from the Australian Securities & Investments Commission (ASIC) has suggested that an SMSF needs to have a balance of at least $200,000 in order to compete with the cost-effectiveness of a typical super fund.

What’s even more pressing is that ASIC reckons an SMSF owner needs to have at least $500,000 in their SMSF before it can regularly compete with the average returns earned by regulated super funds.

At the end of the day, you will probably live to regret switching your super to an SMSF if it results in you having a less comfortable retirement.

But that’s not the only consideration potential SMSF users need to consider.

There’s also the time needs. ASIC has also estimated that running your own SMSF requires around 100 hours a year. If you’re passionate about squeezing the best results possible out of your investments, this might sound reasonable, But if you’re likely to neglect your SMSF after a year or two, every prospective SMSF owner needs to consider whether they’re likely to be able to spend the necessary time running their own retirement funds.

There are other factors SMSF owners should keep in mind as well. There’s investment risk of course. When you decide which assets are in your own super fund, you take on the risk that your assets generate the required returns to be able to compete with other super funds.

There are also other risks to consider. SMSFs don’t typically offer the same protections against scams and other threats to your super balance as commercial super providers do, for instance.

At the end of the day, opening an SMSF is an individual choice. But all would-be SMSF investors need to remain clear-eyed about the pros and cons of managing their own retirement fund.

The post How much do you need to manage your own superannuation? appeared first on The Motley Fool Australia.

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More reading

• I’d need this many Lovisa shares to aim for passive income of $10k a year
• Here are the top 10 ASX 200 shares today
• Goldman Sachs says buy despite this ASX 200 stock trading at a record high
• Is the 11.3% dividend yield on Woodside shares for real?
• Medibank share price hits 52-week high on US tech partnership

Motley Fool contributor Sebastian Bowen 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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Lovisa Holdings Ltd (ASX: LOV) is in select company on the ASX in that it can be considered both a growth and dividend stock.

The share price has now returned a whopping 164% over the past five years, and just a few weeks ago in late November the dividend yield was up at 3.8%.

The stock price has rocketed 42% since then so the yield has admittedly moderated to 2.6%. Nevertheless, the jewellery retailer has a consistent history of paying out in recent years.

Now, what if I told you that you could earn a passive income of $10,000 each year using Lovisa shares?

Outstanding ASX stock with explosive compounding

Of course, The Motley Fool always encourages investors to diversify their portfolios to reduce risk.

So this single stock example is to demonstrate the wealth-building power of ASX shares through compounding, rather than to prompt you to put all your money in Lovisa.

Let’s assume you had $20,000 to start with, which is reportedly about half the average level of savings for an Australian.

That will buy you around 782 Lovisa shares at the moment.

Over the last five years, the retailer stock has averaged a compound annual growth rate (CAGR) of 21.4%, excluding dividends.

If we add the current 2.6% dividend yield to that, the yearly growth rate becomes 24%.

A handful of shares + time = passive income

Check out how awesome your 782 shares could do if you reinvested all those returns each year.

After just four years, the pot will have grown to $47,284.

From then on, if you stop reinvesting the annual returns and start cashing it in instead, you have yourself a handy five-digit passive income.

That’s $11,348, to be precise.

Just 782 Lovisa shares and 48 months. That’s all it took.

Notwithstanding the sharp run-up in the stock price, Lovisa is still well-liked among professional investors.

Broking platform CMC Invest currently shows eight out of 13 analysts recommending the retail stock as a buy.

The post I’d need this many Lovisa shares to aim for passive income of $10k a year appeared first on The Motley Fool Australia.

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More reading

• I’d invest $580 a month in ASX 200 shares to aim for a million!
• Own Lovisa shares? Here’s the results preview you need to see
• 2 excellent ASX dividend shares that analysts love
• I’d grow my wealth by buying these so-called ‘expensive’ ASX stocks
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why ARB, Bravura, Hub24, and Suncorp shares are storming higher
• How these 4 ASX 200 shares just gained major broker upgrades
• 2 ASX 200 financial shares hitting 52-week highs on earnings results
• Guess which ASX 200 stock is surging 13% after solid half-year result
• ANZ shares tumble despite Suncorp Bank takeover approval

Motley Fool contributor Sebastian Bowen 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 ARB Corporation, Hub24, Netwealth Group, Pro Medicus, and Reliance Worldwide. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended ARB Corporation, Hub24, Pro Medicus, and Seek. 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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Yes, the headline does say “beginner” stocks.

And I will certainly fulfil that mission by revealing two ASX shares that would make an excellent starting core for a portfolio.

But, you know, I think it’s a bit of a misnomer to call them beginner stocks.

Because if they’re outstanding all-round investments, they should be great for every portfolio, not just for novices.

Whether you are a veteran or a rookie, you have the same goal — to maximise reliable returns over the long run.

And I believe these shares could meet that aim:

What do Mickey Mouse, Google, and Michael Jordan have in common?

A fantastic place to start for any portfolio are exchange-traded fund (ETF) stocks, because of the instant diversification effect that will reduce volatility.

And for me, one that ticks a lot of boxes is Vaneck Morningstar Wide Moat Etf (ASX: MOAT).

This fund simulates the Morningstar Wide Moat Focus NR AUD Index, which keeps track of US stocks that the research firm deems to have the widest “economic moats“.

That is, it invests in businesses with the best competitive advantage over its rivals or potential challengers.

Currently the Wide Moat ETF holds names like Walt Disney Co (NYSE: DIS), Alphabet Inc (NASDAQ: GOOGL) and Nike Inc (NYSE: NKE).

As well as paying out an irregular dividend, the ETF has gained 90% over the past five years.

The Internet also needs somewhere to live

The second stock that I like for the core of the portfolio is Goodman Group (ASX: GMG).

The industrial real estate group both develops and manages properties, which means it has future growth potential while also raking in revenue from existing assets.

Despite its involvement in a traditional sector, the types of real estate it manages — warehouses, logistics centres, and business parks — are all critical for e-commerce.

For example, one of its major clients is Amazon.com Inc (NASDAQ: AMZN), which requires ever more warehousing space as the demand for online shopping grows.

Goodman Group is also delving into developing properties to house data centres, which is also a huge growth area with the insatiable demand for cloud computing and artificial intelligence (AI).

Goodman shares have returned 123% over the past five years, excluding a small dividend each year. 

Professional investors are still bullish despite a 42% rocket since late October.

According to CMC Invest, eight out of 12 analysts currently rate Goodman shares as a buy.

The post 2 no-brainer ASX ‘beginner’ stocks I’d buy appeared first on The Motley Fool Australia.

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John Mackey, former 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 Tony Yoo has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Goodman Group, Nike, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has recommended Alphabet, Amazon, Goodman Group, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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