Tag: Motley Fool

Life360 Inc (ASX: 360) shares could be dirt cheap at current levels.

That’s the view of analysts at Goldman Sachs, which believes the ASX 200 tech stock’s “valuation is compelling.”

Particularly given how recent developments in the tech space could “drive structurally improved margin profile” for the location services technology company.

What is Goldman saying about this ASX 200 tech stock?

Goldman believes that recent changes to the Apple App Store could signal more substantial longer-term moves. It said:

We highlight within that the myriad regulatory and civil actions against the rules imposed on developers by the major platforms Apple and Google are gradually seeing fees reduced and restrictions eased. In January, both in the US and EU, Apple has made concessions including allowing for out-of-app payments and new commission fee structures.

Although the broker doesn’t expect this to have an immediate impact on the ASX 200 tech stock’s business, it could be a different story over the long term for the owner of the eponymous Life360 app. Goldman adds:

While likely immaterial to Life360 in the near-term, we believe these changes may signal the potential for more substantive commission reductions in the future. Given at present Life360 pays away ~20% of subscription revenue to the platforms, and starting off a low EBITDA base, any reduction in the effective commission rate would have a significant impact on Life360’s structural margin profile and earnings.

The broker has described the potential for lower commissions as a “free option” for investors. It said:

Our sensitivity analysis indicates that each 100bps reduction in the average platform commission could drive a +9%/+6% uplift to our FY24/25E Adj. EBITDA estimates. At current discounted valuation levels, we see lower commissions as effectively a free option that could provide meaningful earnings/valuation upside.

Compelling valuation

In light of the above and its belief that Life360 can grow materially already, the broker feels that its shares are cheap at current levels.

Goldman has a buy rating and $10.50 price target on the tech stock. This implies potential upside of 35% for investors over the next 12 months. It commented:

Life360’s valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation).

The post This rapidly growing ASX 200 tech stock’s “valuation is compelling” appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here’s why these ASX 200 growth shares could be top buys
• How I’d invest $300 a month in ASX shares to target $22,000 annual passive income!

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 Goldman Sachs Group and 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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If you’ve got $15,000 to invest, using it to build a portfolio of passive income-generating ASX dividend shares is one of the best uses of your capital in my view.

ASX shares offer everyone the chance to build wealth in a highly effective way, whilst paying you passive income in the form of dividends.

But building a bulletproof portfolio of quality ASX dividend shares is easier said than done. So today, we’ll discuss five ASX shares that I think are all worthy of a $3,000 investment. Together, I think they will form the backbone of a bulletproof passive income portfolio.

Building a $15,000 passive income portfolio with 5 dividend shares

BHP Group Ltd (ASX: BHP)

First up is the ‘Big Australian’, BHP. BHP is one of the largest mining companies in the world, and specialises in iron ore, copper, metallurgical coal, nickel and potash. These are all commodities that the world needs to continue to develop and accommodate economic growth.

Large, mature and profitable commodity companies can be a useful hedge against inflation. They can also shower investors with dividends when commodity prices are at a high point of their cycle. BHP’s glory days of 2021 and 2022 have receded somewhat.

But this company is still a passive income heavyweight, offering a trailing, and fully franked, dividend yield of over 5.5% today.

National Australia Bank Ltd (ASX: NAB)

Next up we have an ASX 200 bank for our next passive income stock. Of course, the banks have all nurtured a well-deserved reputation as dividend monsters over the past few decades. That’s fair enough. All four of the big banks are strong, sound companies that enjoy several unique benefits as a result of their status as pillars of our economy.

But NAB is the pick of the bunch for me. It’s arguably an inferior business to that of the universally venerated Commonwealth Bank of Australia (ASX: CBA). However, NAB shares trade at a far more reasonable valuation at present, in my view. This also means that investors get a far larger dividend yield upfront. At present, that fully franked yield is sitting at just over 5.1%

Telstra Group Ltd (ASX: TLS)

Telstra is a favourite passive income payer for ASX investors. And for good reason. This telco, which is utterly dominant in its industry, has also been funding generous dividends for decades. I like the defensiveness and resilience that Telstra brings to a dividend portfolio – just think about what most Australians would give up before their phones and internet connections.

Telstra has not cut its dividend for a number of years now (including throughout the pandemic) and even gave investors a pay rise last year. At present, Telstra shares offer a fully-franked dividend yield of 4.21%.

Coles Group Ltd (ASX: COL)

Let’s turn to Coles Group. Coles is a business that has a highly prominent role in Australian society as the second-largest supermarket operator.

As a payer of passive dividend income, I like Coles as an investment for our $15,000 bulletproof portfolio for similar reasons to Telstra. Coles is a defensive company whose business tends to remain strong regardless of the economic weather. Whether inflation is high or low, or whether we’re in a boom or a recession, many of us are visiting Coles at least once a week.

I prefer Coles to Woolworths Group Ltd (ASX: WOW) for our portfolio as the dividends that Coles tends to pay out typically result in a higher yield for shareholders. Right now, Coles shares are trading with a fully-franked yield of 4.15%

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

Our final candidate for the $15,000 passive income portfolio is investment house Soul Patts. This company has a lot to offer investors. It runs a large, diversified portfolio made up of a variety of different assets on behalf of its shareholders. Most of those assets are stakes in large, mature ASX blue-chip shares.

This inherently offers investors a huge level of diversification, which is great news for our portfolio.

But Soul Patts is also a compelling investment in its own right. It has a decades-long history of delivering market-beating returns for investors for one. But it is also the only ASX share that can tell its investors that they have enjoyed a 23-year streak of annual dividend pay rises.

The dividend yield on Soul Patts shares is presently sitting at a fully franked yield of 2.53%. But considering this streak of dividend pay rises, I think Soul Patts is more than a worthy candidate for our portfolio’s final slot.

The post Got $15,000? How I’d invest for a bulletproof ASX passive-income portfolio appeared first on The Motley Fool Australia.

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More reading

• 2 world-class ASX 50 shares to buy for your portfolio
• What could happen to Telstra shares if interest rates fall?
• Why the dividends from BHP shares could surge in 2024
• Breaking! NAB shares (and CBA) just hit a new 52-week high
• Top 5 most profitable ASX large-cap shares of 2023

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank, Telstra 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for banking sector exposure, then Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares are likely to have crossed your mind.

But which would be the better buy? Let’s see what analysts are saying.

Should you buy Westpac or CBA shares?

Firstly, it is worth highlighting that it is widely agreed that there is a gulf in quality between these banks.

CBA is regarded as Australia’s highest quality bank by some margin. So clearly, all else equal, you would want to own CBA ahead of others in the sector.

But the share market isn’t equal.

Because of its quality, CBA shares trade at a significant premium to the rest of the big four banks. Unfortunately, this means that getting hold of the bank’s shares at a fair price can be difficult.

For example, at present none of the major brokers have a buy rating on the shares of Australia’s largest bank.

The most bullish is UBS, which has a neutral rating and $105.00 price target. This still implies potential downside of almost 11% for investors over the next 12 months.

And while brokers aren’t overly enamoured with Westpac, there are a couple of brokers that are tipping Australia’s oldest bank as a buy.

One of those is Ord Minnett, which has an accumulate rating and $28.00 price target on Westpac’s shares.

Based on its current share price, this implies potential upside of almost 16% for investors between now and this time next year.

In addition, the broker is forecasting a fully franked $1.45 per share dividend in FY 2024. This equates to a 6% dividend yield and stretches the total potential return to approximately 22%.

Overall, at current prices, analysts appear to believe investors would be better buying Westpac shares over CBA shares.

The post Better buy: Westpac or CBA shares? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares to buy in 2024 for dependable passive income
• Westpac ordered to pay $10 million after ‘unconscionable conduct’
• Breaking! NAB shares (and CBA) just hit a new 52-week high
• Top 5 most profitable ASX large-cap shares of 2023
• Buy Westpac and these ASX 300 dividend shares now: analysts

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

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It has been a really tough time for ASX lithium shares.

With the price of the battery making ingredient falling to low levels on oversupply concerns, many miners are having to take drastic action to conserve cash.

You only need to look at Sayona Mining Ltd (ASX: SYA) to see how bad it has become for some lithium miners.

Yesterday the company reported an average realised selling price of A$946 per dry metric tonne (dmt) and a unit operating cost of A$1,397 per dmt. This means it is losing A$450 every time it pulls a tonne of lithium out of the ground.

But one ASX lithium share that remains highly profitable is IGO Ltd (ASX: IGO).

And it is for this reason that Goldman Sachs has just reiterated its buy rating on the lithium miner’s shares.

‘Economics remain highly compelling’

According to the note, the broker has retained its buy rating on IGO’s shares with a reduced price target of $8.85.

Based on the current IGO share price of $7.56, this implies potential upside of 17% for investors over the next 12 months.

The broker is positive on IGO due to its Greenbushes operation. It notes that “Greenbushes economics remain highly compelling” despite current lithium prices. It adds:

Greenbushes is the lowest cost lithium asset in our coverage; Production growth more than offsets increasing strip ratio. […] We reiterate further Greenbushes expansion remains one of the most economically compelling brownfield lithium projects with a breakeven/incentive LT spodumene price of ~US$400-500/t, where the JV also retains significant optionality around extending/converting the TRP, while the resource likely underpins even further expansion (i.e. CGP5, subject to market conditions).

All in all, Goldman appears to believe that it would be a top option for anyone looking for ASX lithium shares to buy following recent weakness.

The post Buy this ASX lithium share with “highly compelling” economics appeared first on The Motley Fool Australia.

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More reading

• Uh oh! Does this spell more bad news for ASX 200 lithium shares?
• Why are IGO shares crashing 9% on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• IGO shares drops on lithium update
• Here are the top 10 ASX 200 shares today

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

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The ASX 50 index is where investors will find many of the highest quality companies that the Australian share market has to offer.

But which of these companies could be good options for investors right now? Let’s take a look at two ASX 50 shares that analysts rate very highly:

CSL Limited (ASX: CSL)

The first ASX 50 share that we are going to look at is CSL.

It is one of the world’s leading biotechnology companies, comprising the CSL Behring, CSL Vifor, and Seqirus businesses.

Over many decades, CSL has spent tens of billions on research and development (R&D) activities and acquisitions. This has led to the company owning a portfolio filled to the brim with high quality therapies and vaccines.

But management is never one to rest on its laurels. The company continues to invests 10%-11% of its sales revenue back into R&D each year. This means that CSL has a large number of potentially lucrative and life-saving therapies under development that will support its future growth.

The team at Citi has been bullish on CSL for some time and this remains the case today. Particularly given how recent industry commentary supports its view that immunoglobulin demand will grow strongly in the coming years. It said:

We attended Takeda’s virtual Plasma-Derived Therapies (PDT) investor event. Takeda is expecting mid-to-high single digit volume growth for Immunoglobulin (Ig) over the medium-term despite the competition from FcRns – this is in-line with CSL’s expectations and our forecasts.

Citi has a buy rating and $325.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 50 share that is highly rated by analysts is Telstra. It is of course Australia’s largest telecommunications company.

Telstra went through a difficult period in the 2010s following the launch of the NBN. Pleasingly, that is all behind the company now and growth is back on the agenda thanks to the success of its T22 strategy and the launch of its successor – T25.

Commenting on the strategy, its CEO at the time, Andy Penn, said: “If T22 was a strategy of necessity, T25 is a strategy for growth.”

Goldman Sachs appears to have confidence in the strategy based on its earnings growth forecasts. In addition, the broker highlights that this growth is low risk, which makes it even more appealing for investors. It said:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.

Goldman currently has a buy rating and $4.65 price target on Telstra’s shares.

The post 2 world-class ASX 50 shares to buy for your portfolio appeared first on The Motley Fool Australia.

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More reading

• What could happen to Telstra shares if interest rates fall?
• Are CSL shares set for an earnings boost?
• Own Telstra shares? You could be on track for an 18% gain in 2024
• Are ASX blue-chip shares actually safe investments?
• Top brokers name 3 ASX shares to buy next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. 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 a lot of ASX dividend stocks to choose from on the Australian share market.

But one for income investors to watch closely could be Accent Group Ltd (ASX: AX1).

Not only does the footwear focused retailer offer a very generous dividend yield today, but it has been tipped to continue increasing its dividend meaningfully in the coming years.

Here’s what you need to know about this ASX dividend stock

Just 10 years ago, the HypeDC and The Athlete’s Foot owner was paying investors a 5 cents per share fully franked dividend.

But thanks to the popularity of its retail brands and management’s relentless store rollouts, this year the company has been tipped to be in a position to pay more than double this amount.

But if you thought the growth was going to slow, think again. Analysts are then expecting a dividend over triple what it paid 10 years ago in FY 2026.

Dividend forecast

Let’s take a look now at what analysts at Bell Potter are forecasting from this ASX dividend stock in the coming years. The broker expects:

• FY 2024
  • Underlying NPAT of $77.9 million
  • Dividends per share 11.1 cents
• FY 2025
  • Underlying NPAT of $91.8 million
  • Dividends per share 13 cents
• FY 2026
  • Underlying NPAT of $109.9 million
  • Dividends per share 15.6 cents

Based on the current Accent share price of $2.02, this will mean fully franked dividend yields of 5.5%, 6.4%, and 7.7%, respectively.

But the returns won’t stop there. Bell Potter currently has a buy rating and $2.35 price target on this ASX dividend stock. This implies over 16% upside for investors from current levels over the next 12 months.

If we add in the forecast dividends for FY 2024, the total 12-month potential return increases to almost 22%. The broker commented:

We continue to view AX1 as a relative preference in our retail sector coverage given the company’s scale & exposure in terms of channels, brands & size as the overall industry navigates a challenging retail spend environment in addition to growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy (~8% on owned sales).

The post ASX domination: The 5.5% dividend stock to watch appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2024
• Buying ASX retail shares? You’ll want to see these numbers
• Buy Westpac and these ASX 300 dividend shares now: analysts
• How investing $100 per week can create $1,500 in annual ASX dividend income
• Here’s why I invested in Accent shares for dividend 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 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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Investors looking for dependable passive income in 2024 may wish to run their slide rules over these two quality S&P/ASX 200 Index (ASX: XJO) dividend shares.

Both companies have long track records of paying two (or more, on rare occasion) fully franked dividends a year. Even during the pandemic-addled times in 2020.

Both have seen their share prices rise significantly over the past year. And both offer very solid yields.

Which ASX 200 dividend shares am I talking about?

I’m glad you asked!

Mining passive income from the iron ore boom

The first quality ASX 200 dividend share to investigate for passive income in 2024 is iron ore mining giant Fortescue Metals Group Ltd (ASX: FMG).

Over the past 12 months, Fortescue paid an interim dividend of 75 cents a share on 29 March, followed by a final dividend of $1.00 a share paid to eligible investors on 28 September.

That equates to a full-year passive income payout of $1.75 a share.

At the recent Fortescue share price of $29.60, that sees this ASX 200 dividend share trading at a fully franked trailing yield of 5.9%.

Now, Fortescue’s 2023 dividends were down a bit from 2022, and significantly lower than 2021, amid a retrace in the iron ore price from the 2021 highs.

But the industrial metal, Fortescue’s top revenue earner, has been gaining since late May last year when it was trading for just under US$100 per tonne.

Iron ore was trading for a bit over US$133 per tonne yesterday. And, according to the analysts at Citi, iron ore should hit US$150 per tonne during the first three months of 2024.

That’s largely thanks to a ramp-up in stimulus measures from the Chinese government to rekindle the country’s struggling, steel-hungry property markets.

With that in mind, this is one reliable ASX 200 dividend share passive income investors may wish to add to their portfolios.

The Fortescue share price is up 33% since this time last year.

A rock-solid ASX 200 dividend share

Commonwealth Bank of Australia (ASX: CBA) is Australia’s largest bank stock and the second biggest company listed on the ASX.

The passive income payments from this ASX 200 dividend share have been remarkably stable over the past 10 years. That’s with the sole exception of the second half of 2020 when COVID-19 saw the final dividend cut roughly in half.

CBA’s final dividend of 2023, paid on 28 September, set a new all-time high. CBA also delivered an interim dividend of $2.10 a share on 30 March.

This works out to a full-year passive income payout of $4.50 per share.

At the recent CBA share price of $117.64, that sees this ASX 200 dividend share offering a fully franked 3.8%.

The CBA share price is up 7% over the past 12 months.

The post 2 ASX 200 dividend shares to buy in 2024 for dependable passive income appeared first on The Motley Fool Australia.

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More reading

• Breaking! NAB shares (and CBA) just hit a new 52-week high
• Top 5 most profitable ASX large-cap shares of 2023
• $30 each? Here’s why the Fortescue share price just hit a new all-time high
• Buying ASX 200 mining shares? Here’s Citi’s 2024 prediction for the iron ore price
• Are ASX blue-chip shares actually safe investments?

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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) bounced back from a soft start to storm to a record high. The benchmark index rose 1.1% to 7,680.7 points.

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

ASX 200 expected to sink

The Australian share market looks set to sink on Thursday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.55% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 has fallen 0.9%, and the Nasdaq is 1.4% lower. This follows the US Federal Reserve’s meeting and comments that it’s not ready to cut rates.

Oil prices tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 2.4% to US$75.93 a barrel and the Brent crude oil price is down 1.4% to US$81.73 a barrel. This follows news that the US Federal Reserve isn’t in a rush to cut rates.

A2 Milk rated as a hold

A2 Milk Company Ltd (ASX: A2M) shares could be close to fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating with a boosted price target of $5.15. This implies 6% upside from current levels. Bell Potter said: “On balance trends appear slightly more positive through 1H24TD. We have some lingering hesitation given the ongoing dispute with IMF supplier (and SAMR holder) SM1 and the expanded scope of arbitration.”

Gold price rises

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent day of trade after the gold price rose overnight. According to CNBC, the spot gold price is up 0.55% to US$2,062.1 an ounce. Gold rose despite the US Fed ruling out rate cuts in the near future.

Buy Life360 shares

Goldman Sachs thinks investors should be buying Life360 Inc (ASX: 360) shares. It notes that “Life360’s valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation).” Goldman has reiterated its buy rating and $10.50 price target on its shares.

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

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More reading

• These were the best performers on the ASX 200 in January
• Here are the top 10 ASX 200 shares today
• 3 big questions about the Australian stock market in 2024
• Big ASX 200 news! Aussie shares just reached a new record high
• ASX 200 off to the races as Australia’s inflation data surprises to the downside

Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has recommended A2 Milk. 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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Nothing demonstrates the warning that “past performance is not an indicator of the future” better than watching former market darlings crash and burn.

A prime example from the S&P/ASX 200 Index (ASX: XJO) in recent times is Domino’s Pizza Enterprises Ltd (ASX: DMP).

The stock made many Australians wealthy in the 2010s and even during the early years of the pandemic.

But it has been a sorry tale the past couple of years.

The Domino’s share price, if you can believe it, has tumbled 75% from its high in September 2021.

Just last week investors ran from the stock like it was a burning building, sending it 31% down in a single day.

Good God, that’s some heavy discounting.

So, quite rightly, some investors are now asking whether Domino’s shares have capitulated. 

Is it time to pick up the bargain of the century?

What the heck happened last week?

Firstly, let’s take a look at what precipitated last Thursday’s disastrous fall.

It seems a business update that day sent the market into a frenzy.

“Domino’s preliminary net profit before tax is expected to be between $87 million and $90 million,” reported The Motley Fool’s James Mickleboro.

“It is still well short of the consensus estimate of $103 million, which explains why Domino’s shares are taking a beating this morning.”

Within days, both Goldman Sachs Group Inc (NYSE: GS) and Macquarie Group Ltd (ASX: MQG) downgraded their share price expectations for the pizza chain.

Do the professionals think Domino’s share price is low enough to buy?

And unfortunately that probably reflects the sentiment of the professional community at large about Domino’s prospects.

CMC Invest shows only five out of 16 analysts rate the stock as a buy at the moment. 

Although the finance industry is notorious for its reluctance to put out sell ratings, seven analysts have gone down that route. 

That’s a damning assessment for a company that used to be a staple in many portfolios.

So, at this stage, Domino’s is not exactly a no-brainer buy. 

That’s not to say you can’t make money out of it in the long run, but there are enough risks still that committing now would take a significant leap of faith.

The post As the Domino’s share price continues to struggle, is it a no-brainer buy? appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in February 2024
• Is the Domino’s share price a buy after its plunge?
• Why Bapcor, Domino’s, Santana Minerals, and Woodside shares are charging higher
• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why are Domino’s shares sinking 22% today?

Motley Fool contributor Tony Yoo has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Goldman Sachs Group, 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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If you’re an income investor and have a penchant for buy and hold investing, then it could be worth considering the two ASX dividend stocks listed below.

Here’s why they could be top long term options for investors:

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation could be a great ASX dividend stock to buy and hold. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.

The team at Citi is positive on Lottery Corporation and has a buy rating and $5.60 price target on its shares.

The broker highlights its defensive qualities and strong pricing power. In respect to the latter, the broker suggests that the market “underestimates the uplift to the contribution margin” from recent price rises.

It is also worth noting that since this note, the Powerball product has been on a stunning jackpot run. This could mean stronger than expected earnings and dividends during the second half.

In the meantime, the broker is forecasting dividends per share of 17 cents in FY 2024 and 18 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.06, this will mean fully franked yields 3.3% and 3.5%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX dividend stock that could be a great long term pick is Lovisa. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But management isn’t settling for that. It has huge global expansion plans, which are being overseen by a highly experienced CEO that has an incredible track record.

Morgans is confident in the company’s plans. It notes that “investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.”

Morgans has an add rating and $27.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. Based on the current Lovisa share price of $23.02, this implies yields of 3% and 3.5%, respectively.

The post Buy and hold these ASX dividend stocks for a decade appeared first on The Motley Fool Australia.

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More reading

• ASX passive income seekers: Invest $10,000 for $520 in monthly income
• Buying ASX retail shares? You’ll want to see these numbers
• Why I think Lovisa stock is an amazing ASX 200 buy for both dividends and growth
• Here’s how I’m targeting a generous ASX passive income in retirement!
• Here are 10 ASX shares I’d buy in 2024

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Lottery and 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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