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If you have room in your portfolio for some ASX 200 growth shares, then it could be worth checking out the four listed below.

That’s because they have all recently been named as buys and tipped to rise meaningfully from current levels.

Here’s what you need to know about these top growth shares:

Flight Centre Travel Group Ltd (ASX: FLT)

The first ASX 200 growth share that could be a buy right now is travel agent giant Flight Centre.

The team at Morgans is positive on the company, highlighting that the “benefits of FLT’s transformed business model” mean that it is “well placed over coming years.”

Morgans currently has an add rating and $26.00 price target on its shares. This implies potential upside of 21% for investors.

IDP Education Ltd (ASX: IEL)

This language testing and student placement company could be another ASX 200 growth share to buy this month according to Goldman Sachs.

It believes the company is well-placed for long-term growth thanks to structural tailwinds and its dominant market position. The broker highlights its “structural growth in multi-destination placements” and its “reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.”

The broker has a buy rating and $26.60 price target on IDP Education’s shares. This suggests that over 50% upside is possible from current levels.

Lovisa Holdings Ltd (ASX: LOV)

Morgans is also fan of Lovisa and sees it as an ASX 200 growth share to buy this month.

The broker believes the rapidly growing fashion jewellery retailer is well-positioned to continue its strong form thanks to its large global expansion opportunity. It also notes that its plan to “enter mainland China in FY24, [is] paving the way for significant longer-term growth.”

The broker currently has an add rating and $35.00 price target on its shares. This implies potential upside of 12% for investors.

Megaport Ltd (ASX: MP1)

Another ASX 200 growth share to look at is Megaport. It is a leading global provider of elastic interconnection services.

It has been growing at a rapid rate in recent years thanks to the cloud computing boom. Macquarie appears to believe this strong form can continue thanks to strong near-term operating leverage and the growth of its Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE) products.

The broker recently retained its outperform rating on Megaport’s shares with an improved price target of $18.00. This suggests upside potential of 32% for investors.

The post These top ASX 200 growth shares can rise 10% to 50% appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• 3 compelling ASX shares I’d buy if the ASX crashes again
• Is Lovisa stock a good ASX investment in April?
• 3 beaten down ASX growth shares that could be dirt cheap
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Lovisa, Macquarie Group, and Megaport. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group, Idp Education, Lovisa, and 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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Ideally, there are some ASX shares in my portfolio that I’d want to own for the rest of my life.

Owning good stocks for the ultra-long term can be really good for growing wealth because we can benefit from compounding and reducing the capital gains tax. If I never sell, then I’ll never activate any capital gains tax events.

Of course, I wouldn’t want to hold a stock for decades if it’s a mediocre business. The two ASX shares below are ones I’ve already held for several years. I think they’re quality, and I plan to hold them for a long time to come.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland in different states and climactic conditions across Australia, offering good diversification.

Farmland has been a useful asset for a very long time, and I think it will continue to be important for the rest of my life. Rural Funds is invested in several different farming sectors, including cattle, almonds, macadamias, cropping, and vineyards.

I don’t know what’s going to happen with interest rates over the long term, but I think the current valuation (more than) takes into account the headwinds of the higher RBA cash rate. Rural Funds said it had an underlying net asset value (NAV) of $3.07 in December 2023.

Rural Funds is benefiting from steady rental increases, with some contracts having fixed annual increases and others being linked to CPI inflation, plus market reviews.

The ASX share aims to grow its distribution by 4% per annum, though it has maintained in the last couple of years at 11.73 cents per unit. It’s currently paying a distribution yield of 5.7%.

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

Soul Patts is an investment house that has been a listed business since 1903 – and it has paid a dividend every year since then.

The business has sizeable investments in many other ASX shares, including Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), CSL Ltd (ASX: CSL), Goodman Group (ASX: GMG) and Wesfarmers Ltd (ASX: WES).

It also has quite a few private businesses, including agriculture, water rights, swimming schools, Ampcontrol (electrical parts), and Ironbark (financial services). And it invests in credit and property.

I like the diversification that Soul Patts’ portfolio offers. But, most importantly, in my mind, the company has the flexibility and investment mandate to search for future opportunities across industries and asset classes. This ability can help the business future-proof its portfolio and help ensure that it’s still around for the decades ahead.

Soul Patts has built its portfolio to focus on typically defensive assets that can pay useful cash flow and help the company fund dividends to shareholders. The business has grown its dividend every year since 2000, which is a great record. It currently has a grossed-up dividend yield of 3.8%.

The post 2 ASX shares I plan to hold til I’m 100 appeared first on The Motley Fool Australia.

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More reading

• 2 safe ASX dividend shares that have paid income for decades
• This ASX 200 stock is down 11% in under a month. Should you buy before it trades ex-dividend?
• 5 excellent ASX dividend stocks to buy in April
• Where I’d instantly invest $10,000 in ASX shares for passive income
• 1 ASX dividend stock down over 34% to buy right now

Motley Fool contributor Tristan Harrison has positions in Brickworks, Rural Funds 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 Brickworks, CSL, Goodman Group, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended CSL and Goodman 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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The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX. At the end of February 2024, it was $14.7 billion in size.

The VAS ETF tracks the returns of the S&P/ASX 300 Index (ASX: XKO), which comprises 300 of the biggest ASX shares by market capitalisation.

Being popular doesn’t necessarily mean it’s the best investment, so I’m going to look at four key areas that could influence whether the VAS ETF is effective to own.

Fees

One of the best reasons to own almost any Vanguard ETF is that the fund manager offers its ETFs as cheaply as possible through low management fees. Lower fees mean more of the fund value stays in the hands of investors rather than lining the pockets of a fund manager.

The VAS ETF has an annual management fee of 0.07%, making it one of the cheapest ways to invest in ASX shares through a diversified portfolio.

On this measure, it gets a tick from me.

Dividend yield

Many ASX blue-chip shares have relatively high dividend yields thanks to the combination of a fairly high dividend payout ratio and trading at a relatively low earnings multiple. In other words, they pay out a lot of profit as a dividend and have a low price/earnings (P/E) ratio.

According to Vanguard, the VAS ETF has a dividend yield of 3.9%. Franking credits boost the cash yield.

For investors wanting passive income, I think the Vanguard Australian Shares Index ETF is a decent option for dividend yield.

Diversification

The VAS ETF invests in 300 different businesses, which is a lot of diversification in a single investment. It can lower the risk compared to owning just one company, whether it’s Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Woolworths Group Ltd (ASX: WOW) or Telstra Group Ltd (ASX: TLS).

However, when we look at the sector allocation, the VAS ETF gives two industries more than 50% weighting, so I wouldn’t say it’s as diversified as it could be. At the end of February 2024, ASX financial shares had a weighting of 29.7%, while mining shares had a weighting of 22.4%. The big businesses in these sectors make up most of the allocations to those two sectors.

It’s a positive for investors who want a large weighting in these sectors. However, some people may want a bigger allocation to sectors with more growth potential, such as technology or ASX retail shares. So, I’d give the VAS ETF half a tick for diversification.

Returns

The Vanguard Australian Shares Index ETF’s return is simply the combined return of all of the different businesses it holds in its portfolio.

Since its inception in May 2009, the ETF has returned an average of 9.05% per annum. Of that return, 4.58% per annum was in the form of distributions, while 4.47% per annum was capital growth.

Those returns aren’t terrible at all, but there are other ETFs that have performed better over the long term.

Foolish takeaway

I think VAS ETF is an effective way to get cheap exposure to ASX blue-chip shares.

However, from my perspective, it doesn’t have as many capital growth prospects as some other globally-focused ETFs. So, I’d want to balance the Vanguard Australian Shares Index ETF with other options like Vanguard MSCI Index International Shares ETF (ASX: VGS).

The post Is the Vanguard Australian Shares Index ETF (VAS) a good long-term investment? appeared first on The Motley Fool Australia.

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More reading

• Is the Vanguard Australian Shares ETF (VAS) just a big ASX bet on banks and miners?
• How is the Vanguard Australian Shares ETF (VAS) falling almost 1% today?
• 3 excellent ASX ETFs for smart investors in April
• Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here’s what you have to do
• How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Owning ASX dividend stocks can be a very rewarding experience. Large dividend yields with possible capital growth — what’s not to like?

However, not all high dividend yields last forever. Sometimes, a large payout in one year may be much smaller in the subsequent year. For example, BHP Group Ltd (ASX: BHP) recently cut its interim dividend by 20% to US 72 cents per share. The broker UBS thinks the dividend will decline in size in FY26, FY27, and FY28.

I’m going to talk about two ASX dividend stocks where the long-term profit growth looks promising, and the current dividend yields are large.

Shaver Shop Group Ltd (ASX: SSG)

This ASX retail share is a specialty retailer of male and female grooming products. It wants to be the market leader in everything related to hair removal in Australia.

It aims to sell a wide range of quality prices at competitive prices, with “excellent staff product knowledge”. The company says it’s able to negotiate exclusive products with suppliers.

Shaver Shop is looking to diversify its earnings by selling products in oral care, hair care, massage, air treatment, and beauty categories. It can grow its earnings by opening more stores, increasing its online sales, offering more products, and benefiting from Australia’s population growth.

Shaver Shop has grown its dividend each year since 2017, when it started making payments to shareholders. The last two dividend payments from the ASX dividend stock equate to a grossed-up dividend yield of 12.7%.

Metcash Ltd (ASX: MTS)

Metcash supplies many independent businesses in Australia, including IGA, Foodland, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Camel, Big Bargain Bottleshop, and Duncans. It also supports bars, pubs, restaurants, and hotels.

The ASX dividend stock also has a hardware division that owns a number of brands, including Mitre 10, Home Timber & Hardware and Total Tools. It supports small operators under the brands Thrifty-Link Hardware and True Value Hardware.

Metcash also recently announced it’s buying Bianco Construction Supplies, Alpine Truss and Superior Food. Each of these businesses add diversification to Metcash’s earnings and open up another growth avenue.

It can grow profit through opening more stores, increasing online sales, and the overall growth of Australia’s population. There could also be a rebound in hardware demand once interest rates start to reduce.

Metcash has committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT), which is a healthy payment. It’s enough for a good dividend yield, but the ASX dividend stock also keeps a useful amount within the business for re-investment.

According to Commsec, the company is estimated to pay an annual dividend per share of 20 cents per share in FY24, which would be a grossed-up dividend yield of 7.3%.

The post 2 ASX dividend stocks with yields over 7% to buy today appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in April 2024
• Should ASX investors buy Metcash stock for its 5.7% dividend?
• Where I’d instantly invest $10,000 in ASX shares for passive income
• 2 ASX dividend shares that could pay huge yields in 2026
• Why I bought this ASX 200 stock instead of Woolworths

Motley Fool contributor Tristan Harrison has positions in Metcash. 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 Metcash and Shaver Shop 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) continues to be the most shorted ASX shares with short interest of 20.6%, which is up slightly week on week. Short sellers don’t appear to believe that lithium prices will rebound any time soon.
• IDP Education Ltd (ASX: IEL) has 14.1% of its shares held short, which is up week on week yet again. Short sellers seem to believe that regulatory changes to student visas will weigh heavily on this language testing and student placement company’s performance.
• Syrah Resources Ltd (ASX: SYR) has short interest of 13.7%, which is up week on week. Weak graphite prices have been weighing heavily on Syrah’s performance.
• Liontown Resources Ltd (ASX: LTR) has seen its short interest remain flat at 10.1%. Short sellers continue to target this lithium developer despite it recently announcing debt funding for the Kathleen Valley Lithium Project.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 9.9%. Short sellers seem to believe that Flight Centre will fall short of expectations in FY 2024 and FY 2025.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.5%, which is up week on week. Short sellers continue to target this lithium miner’s shares despite them crashing 82% over the last 12 months.
• Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease again to 7.7%. Unfortunately for short sellers, this gold miner’s shares are up over 50% since this time last year thanks to a soaring gold price.
• Weebit Nano Ltd (ASX: WBT) has returned to the top ten with 7.2% of its shares held short. This is likely to be due to valuation concerns and the semiconductor company’s abject revenue generation.
• Sayona Mining Ltd (ASX: SYA) has short interest of 7.2%, which is down sharply week on week. This lithium miner’s shares are down 80% over the last 12 months. Short sellers don’t appear to believe the declines are over.
• Australian Clinical Labs Ltd (ASX: ACL) has short interest of 7.1%, which is down week on week again. This pathology company has been struggling due to tough trading conditions.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 3 beaten down ASX growth shares that could be dirt cheap
• When will Pilbara Minerals resume paying dividends?
• Why is this tiny ASX gold share soaring 10% on Friday?
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX shares that pay dividends can be a wonderful source of passive income — which might be exactly what retirees, in particular, are looking for.

The Australian Securities Exchange (ASX) includes many of the country’s leading businesses, such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Telstra Group Ltd (ASX: TLS).

However, the biggest ASX blue-chip shares aren’t necessarily the most resilient or the best dividend-paying options. If I were a retiree, I’d want to have the following two stocks in my income-focused portfolio.

Medibank Private Ltd (ASX: MPL)

Medibank is the leading private health insurer in Australia with two main brands – Medibank and ahm.

People tend to value their health highly, so I’d guess that many would continue paying for private health insurance even during an economic downturn.

One of the growth drivers of the business is the ageing population in Australia, which may mean more people sign up to have private health insurance for any operations or specialised care they may need. Indeed, Australia’s overall population is rapidly increasing too, which is helping grow the number of potential policyholders.

Medibank’s FY24 first-half result demonstrated its steady growth — group revenue from external customers grew by 3.3% to $4 billion, with group operating profit growing by 4.2% to $319.4 million.

The ASX share had a generous dividend payout ratio of 75.5% in HY24, enabling it to pay a dividend per share of 7.2 cents (a 14.3% year-over-year rise).

According to Commsec, the business could pay a grossed-up dividend yield of 6.2% in FY24.

Centuria Industrial REIT (ASX: CIP)

This business is the largest pure-play industrial real estate investment trust (REIT) in Australia.

It benefits from strong tenant demand that is skewed to urban markets as industrial users prioritise proximity to a large population. There is limited new supply within these markets – the REIT’s manager Jesse Curtis recently said:

…rental growth is expected to be prolonged providing the opportunity for continued positive rental reversion. Additionally, CIP’s embedded development pipeline provides the optionality to unlock further value to take advantage of the mismatch between supply and demand and deliver value to unitholders.

The ASX share is seeing enormous rental growth – in the FY24 first-half result it reported positive re-leasing spreads of 51%. That means that new rental contracts are showing a 51% increase compared to the old rental rate those buildings were on.

The business expects to pay a distribution of 16 cents per unit in FY24, which is a forward distribution yield of 4.6%. I think it can provide stable and resilient rental profits for retirees.

The post If I were a retiree, I’d buy these ASX shares this week appeared first on The Motley Fool Australia.

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More reading

• 3 top ASX REITs to buy in April 2024
• Buy these ASX dividend stocks for an income boost
• 5 things to watch on the ASX 200 on Wednesday
• Buy Coles and this ASX 300 dividend share
• Popular ASX All Ords shares with ex-dividend dates next week

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

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Life360 Inc (ASX: 360) shares certainly have been on fire this year.

Despite recent weakness in the tech sector, the ASX 200 tech stock is up over 60% year to date.

But if you thought you were too late to the party, think again.

Goldman Sachs has been looking at the location technology company and still sees major upside ahead for its shares.

What is the broker saying about this ASX 200 tech stock?

While the key driver of Life360’s outperformance this year has been its financial performance, its launch of an advertising business has also got investors excited. With 60 million monthly active users, the company has a huge network for advertisers to target.

Goldman believes that initial revenues from advertising will be incremental rather than game-changing based on its experience with peer Duolingo Inc (NASDAQ: DUO). It commented:

The company’s recently announced strategy to further monetise its sizeable user base via the introduction of advertising appears strategically sound and in line with its global app-based internet peers. To frame the potential opportunity and provide basis for our advertising estimates, we have conducted a detailed peer and industry benchmarking, concluding that Life360’s ad revenue strategy is likely to initially be an incremental, rather than game-changing, driver of earnings and valuation upside.

The broker expects revenue in the region of US$6 million from advertising in FY 2024, growing to US$18 million in FY 2026. It adds:

Our analysis of app-based internet peers (incl. Duolingo, Life360’s closest comp) suggests that initial advertising revenue is likely to index toward the lower end of user monetisation given low banner ad yields, relatively low time spent in app, and less purchasing intent from users. As Life360’s advertising strategy is nascent with many unknowns, we factor a relatively small amount of incremental ad revenue into our base-case assumptions (US$6/$16/$18mn FY24/25/26E revenue) but see potential upside as the ad strategy develops (e.g., higher ad load, different ad formats).

The good news is that this revenue is expected to be high-margin, which means it should be a nice boost to earnings. The broker said:

In addition, ad revenue can provide a helpful boost to group earnings with likely high incremental margins (>50% EBITDA). In our view little value is being imputed for ads given that the core subscription business remains undervalued, therefore we see valuation upside on successful execution.

Big gains ahead

The note reveals that Goldman has reiterated its buy rating and $14.20 price target on the location technology company’s shares.

Based on where the ASX 200 tech stock currently trades, this implies potential upside of 17% for investors over the next 12 months. It concludes:

With potential for EBITDA upgrades through FY24E, and incremental monetisation from advertising, we believe Life360 can continue to re-rate towards local and global tech peers.

The post Buy this high-flying ASX 200 tech stock for a big return appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 tech shares to buy now with less than $2,000
• COVID’s lasting impacts for shares vs. property: AMP economist
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• 3 ASX growth shares to supercharge your investment portfolio returns

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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 could be an opportunity that may fly soon enough, according to one fund manager.

The Qantas share price has lost altitude over the last year, as we can see on the chart below.

Some investors think this decline has opened up a chance to buy Australia’s leading airline at a discounted price. Let’s look at why one fundie has boarded Qantas stock.

Strong demand continues

The fund manager L1 recently noted that Qantas continued to benefit from domestic demand remaining “robust” despite higher airfares.

The investment team believe Qantas is “extremely well placed” to compete strongly after its $1 billion cost-out program, the “exceptional” loyalty program and its leading domestic market position.

The strong demand can continue to be seen in the financials.

In its FY24 first-half result, Qantas reported underlying profit before tax of $1.25 billion and statutory net profit after tax (NPAT) of $869 million. With that large profit generation, the company announced an additional on-market share buyback of up to $400 million. The company reported a “significant improvement in customer satisfaction” though there was “more work to do”.

Profit generation is an important factor for Qantas shares.

Positive upcoming developments

L1 is expecting Qantas to outline its plans in April to improve its loyalty offer to enable easier access for frequent flyer members to use their points.

The investment team believes new CEO Vanessa Hudson is rapidly and methodically addressing customer “pain points”. These changes will “improve sentiment from both customers and potential investors”, according to the fund manager.

Another reason L1 thinks Qantas is positioned well for the next few years is that it will have Australia’s “best loyalty business”, which could see a doubling of earnings over the next five to seven years. It also has a number of new, more fuel-efficient aircraft.

‘Project Sunrise’, which will enable direct flights from Melbourne and Sydney to London and New York, is also expected to be positive for the airline.

Finally, Qantas shares could benefit from having sufficient balance sheet capacity to continue its share buyback and then recommence paying fully franked dividends next year.

Are Qantas shares trading at a cheap valuation?

L1 has estimated that Qantas shares are valued at a price/earnings (P/E) ratio of just 6x. That means the Qantas share price trades at a multiple of six times its earnings.

The fund manager thinks this is a very cheap valuation considering Qantas’s dominant industry position, exposure to the structural tailwinds of Asian inbound tourism to Australia, and a high-growth, light-light loyalty division that remains “incredibly underappreciated by the market”.

The post Why one fund manager thinks Qantas shares are cheap and ‘incredibly underappreciated’ appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 shares could rise 20% to 50%
• What’s happened to ASX travel shares since COVID ended?
• 7 ASX All Ords shares elevated to ‘strong buy’ status in March
• Will Qantas shares pay a dividend in 2024?
• Is Qantas a bargain ASX 200 stock today?

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

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There are plenty of ASX dividend stocks to choose from on the local market, but which ones could be buys in April?

Three shares that were recently identified as buys by analysts and tipped to rise strongly from where they currently trade are listed below. Here’s what its analysts are saying about them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend stock that could be a buy according to analysts is Dexus Convenience Retail REIT. It is a convenience retail and service station focused property company.

Morgans is positive on the company and believes its shares are good value. The broker currently has an add rating and $3.23 price target on them. This implies potential upside of 20% from current levels.

As for dividends, the broker is forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.69, this implies dividend yields of 7.8% in both years.

Rio Tinto Ltd (ASX: RIO)

Another ASX dividend stock that could be a buy right now is Rio Tinto. It is one of the largest miners in the world with a portfolio of high-quality assets and operations across multiple commodities. This includes iron ore, copper, and lithium.

The team at Goldman Sachs sees plenty of value in the miner’s shares at current levels. It recently put a buy rating and $140.20 price target on them. This suggests potential upside of 16% for investors.

In respect to income, the broker is expecting fully franked dividends per share of US$4.38 (A$6.66) in FY 2024 and then US$4.63 (A$7.04) in FY 2025. Based on the latest Rio Tinto share price of $120.55, this will mean yields of approximately 5.5% and 5.8%, respectively.

Super Retail Group Ltd (ASX: SUL)

Finally, Goldman Sachs also believes that Super Retail could be an ASX dividend stock to buy. It is the retail giant behind the popular BCF, Macpac, Rebel, and Super Cheap Auto brands.

Goldman Sachs is very positive on the retailer and has a buy rating and $17.80 price target on its shares. This implies potential upside of 16% from current levels.

As for dividends, the broker is expecting some good yields from its shares over the next couple of years. Its analysts are forecasting fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $15.30, this will mean dividend yields of 4.4% and 4.8%, respectively.

The post These high-yield ASX dividend stocks can rise 15% to 20% appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in April 2024
• Rio Tinto share price slips amid an unrelenting ESG grilling
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• 5 things to watch on the ASX 200 on Friday
• $10,000 invested in these ASX 300 dividend shares would generate this much passive income

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 positions in and has recommended Super Retail 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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It looks set to be another great session for ASX 200 gold stocks on Monday after the price of the precious metal climbed to yet another record high.

According to CNBC, the spot gold price was up 1.6% to a record of US$2,345.4 an ounce.

This was gold’s third consecutive week of gains and was driven by U.S. interest rate cut bets, speculative buying, and central bank purchases.

In light of this, you may think that it is too late to invest in any ASX 200 gold miners. But you would be wrong, according to analysts at Goldman Sachs.

This morning, the broker has named three miners that it believes investors can pick up at current levels.

Which ASX 200 gold stocks are buys?

The first gold share to look at is De Grey Mining Limited (ASX: DEG). Goldman has a buy rating and $1.45 price target on its shares, which implies potential upside of 12% for investors from current levels.

It believes the gold developer could be a top option due to its tier one Hemi asset. The broker also sees the world class deposit as a potential takeover option for a larger player. It said:

While historically mining stocks tend to underperform through the execution and ramp-up phase of a project, we expect with Hemi positioned as a Tier 1 asset of global scale that post-DFS it remains an attractive potential strategic consolidation target.

Another ASX 200 gold stock that could be a buy according to the broker is Evolution Mining Ltd (ASX: EVN).

However, with a buy rating and $4.00 price target on the miner’s shares, this implies only modest upside for investors from current levels. It said:

Of the larger cap names EVN (Buy) remains our preference to NST (Neutral) on near-term FCF, and with exposure to further increases in copper pricing (~30% of EVN’s revenue over FY24-26E).

A third ASX 200 gold stock that could be worth a closer look according to Goldman Sachs is Gold Road Resources Ltd (ASX: GOR).

The broker currently has a buy rating and $2.00 price target on the miner’s shares. This suggests potential upside of approximately 20% for investors over the next 12 months. It recently said:

[W]e retain our Buy rating with GOR the only gold stock in our coverage without major growth spend, supporting cash generation (near-term FCF yields of c. 5-10% in CY24-27E remain attractive vs. peers and support upside to the outlook for capital returns), while trading at a significant discount to peers at ~0.9x NAV / ~4x NTM EV/EBITDA / pricing a LT gold price of US$1,575/oz (peer average ~1.1x NAV / 5-6x EV/EBITDA / ~US$1,930/oz LT gold).

The post 3 ASX 200 gold stocks to buy now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• ASX 200 gold shares surging as gold price hits new records. Now what?

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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