Tag: Motley Fool

It’s not too late to snap up 100 shares of this leading S&P/ASX 200 Index (ASX: XJO) dividend stock to earn $705 of passive income in 2024.

The super ASX dividend share in question here is Macquarie Group Ltd (ASX: MQG).

The diversified ASX 200 financial stock has delivered two partly franked dividends every year since 2013.

We’ll get back to that welcome passive income in a tick.

But first…

Calculating yields and Macquarie’s recent performance

After a weak start to 2023, the Macquarie share price has had a strong run since the company reported its half year results on 3 November.

In fact, shares in this top ASX 200 passive income payer have gained 16% since the closing bell sounded on 2 November.

While the company’s operating income and net profits for the six months were down considerably year on year, its assets under management increased 7% to $892 billion. Macquarie also reported group capital surplus of $10.5 billion and a $2 billion on-market buyback.

All of which has gone to help support the share price and outlook for 2024. Which is good, because we don’t want to sacrifice potential capital gains to earn our passive income.

Now before moving on to that passive income, note that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

While forecast yields can be useful, there’s a lot of guesswork involved. Even the world’s best analysts don’t have any more access to working crystal balls than you or me.

With that in mind, we’ll stick with the trailing yields here.

Targeting Macquarie shares for passive income

Macquarie paid its final dividend of $4.50 a share on 4 July. The interim dividend of $2.55 a share will have hit eligible shareholders’ bank accounts on 19 December, just in time for Christmas. Both were franked at 40%, offering some potential tax benefits.

That equates to a total passive income payout of $7.05 per share.

Based on the trailing yield then, 100 shares today would return a very tidy $705 in passive income in 2024.

And, of course, we’ll be hoping to see the Macquarie share price keep marching higher as well!

The post Buy 100 shares of this super ASX 200 dividend stock for $705 a year in passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Analysts say these top ASX dividend shares are buys in January
• Brokers say these ASX 200 blue-chip shares are top buys in January
• I’d buy this ASX bank share for dividends over CBA
• Top brokers name 3 ASX shares to buy next week
• Navigating rising interest rates: Top Australian stocks to watch

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xWhwtRz

Are you on the lookout for some ASX dividend stocks to buy? If you are, it could be worth taking a look at the three listed below.

They have all been named as buys and tipped to offer attractive dividend yields. Here’s what you need to know:

Coles Group Ltd (ASX: COL)

The first ASX dividend stock for investors to consider buying is supermarket giant Coles.

Citi remains bullish on the company right now. And while it expects a relatively flat year in FY 2024, it is forecasting solid earnings growth in FY 2025 and FY 2026.

The broker is expecting this to underpin fully franked dividends of 64 cents per share in FY 2024 and 70 cents per share in FY 2025. Based on the current Coles share price of $15.79, this will mean yields of 4% and 4.4%, respectively.

Citi currently has a buy rating and $17.50 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

If you’re not averse to investing in the resources sector, then Goldman Sachs thinks that Rio Tinto’s shares are a buy right now.

The broker believes the mining giant is an ASX dividend stock to buy because of its “compelling relative valuation vs. peers.” It also highlights its “attractive FCF and Div yield.”

In respect to the latter, Goldman is forecasting fully franked dividends per share of US$4.61 (A$7.00) in FY 2024 and then US$4.62 (A$7.02) in FY 2025. Based on the latest Rio Tinto share price of $132.63, this will mean yields of approximately 5.3% in both years.

The broker has a buy rating and $141.80 price target on the miner’s shares.

Rural Funds Group (ASX: RFF)

Bell Potter thinks that Rural Funds could be an ASX dividend stock to buy.

Its analysts recently noted that the agricultural property company’s “share price has continued to remain subdued and trading at its largest discount to market NAV since listing.”

In addition, the broker is forecasting some attractive dividend yields for investors. It is expecting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.04, this will mean yields of 5.7% for investors.

Citi has a buy rating and $2.25 price target on its shares.

The post Buy Rio Tinto and these ASX dividend stocks appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• At 20x earnings and a 4% yield, surely I can’t ignore this ASX 200 stock?
• Rio Tinto share price marching higher amid record Aussie solar power agreement
• Boost your second income with these buy-rated ASX dividend stocks
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• ASX 200 mining stocks underperforming as Andrew Forrest shutters WA nickel mines

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xqfJ5Ne

On Thursday, the S&P/ASX 200 Index (ASX: XJO) ended the shortened week with a gain. The benchmark index rose 0.5% to 7,555.4 points.

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

ASX 200 expected to rise again

Another positive session is expected for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning. On Friday on Wall Street, the Dow Jones was up 0.15%, the S&P 500 fell 0.1%, and the Nasdaq dropped 0.35%. This couldn’t stop the latter two indices from recording solid weekly gains.

Oil prices climb

It could be a decent start to the week for ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.85% to US$78.01 a barrel and the Brent crude oil price was up 1.35% to US$83.55 a barrel. Oil prices had their best week since September amid optimism over US economic growth and Chinese stimulus.

ResMed shares named as a buy

ResMed Inc (ASX: RMD) shares are in the buy zone according to analysts at Goldman Sachs. In response to its second quarter update, the broker has reiterated its buy rating and lifted its price target on the sleep treatment company’s shares to $33.50. Goldman said: “We believe there is sufficient positivity to continue to see asymmetric upside risk at current valuations.”

Gold price broadly flat

It looks like it could be a subdued start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price traded broadly flat on Friday. According to CNBC, the spot gold price was up a fraction to US$2,018.2 an ounce. Traders appear nervous ahead of the US Federal Reserve’s interest rate meeting this week.

Sell Beach Energy shares

The team at Goldman Sachs thinks investors should be selling Beach Energy Ltd (ASX: BPT) shares. This morning, the broker has retained its sell rating on the energy producer’s shares with a slightly improved $1.66 price target. This sell rating is due largely to its valuation. The broker said: “While we see upside potential for BPT trading at a ~10% discount to NAV, we currently see more attractive opportunities within our upstream energy coverage with average ~20% upside.”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How long does it take to become a millionaire with ASX shares?
• 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 the top 10 ASX 200 shares today
• Santos share price rises on $2.3 billion revenue from ‘challenging year’

Motley Fool contributor James Mickleboro has positions in ResMed 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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/s3qbnCo

Selling ASX shares is difficult.

“Unlike with the decision to make an investment, selling it requires you to undo something in which you have already invested intellectual, emotional and financial capital,” Fidelity investment director Tom Stevenson wrote in the UK’s The Telegraph.

“That is psychologically hard to do.”

There is plenty of advice everywhere — including here at The Motley Fool — about which stocks to buy, but you only see a fraction of that volume focusing on selling.

But even the hardiest long-term investor needs to offload their shares sometime, so it’s worth thinking about why and when you would do that.

Stevenson helpfully laid out some of the valid reasons why an investor should sell, and some of the worst drivers for doing so.

Good reason #1: investment thesis is broken

Many amateur investors forget why they bought certain shares in the first place.

And that’s why, later down the track, they struggle to figure out whether they should sell.

“It is impossible to judge whether your investment thesis has changed if you don’t know what it was at the outset.”

This is why Stevenson has a valuable tip for all investors.

“Write it down. Keeping an investment diary can give you something tangible against which to measure your decision,” he said.

“It’s good to remind yourself why you got together all those years ago!”

Good reason #2: bad news

If the circumstances for the business have changed, then it might be time to consider cutting the stock loose.

Of course, the chances are that by the time you’ve realised this, so has everyone else.

According to Stevenson, while markets are “pretty good at pricing in change”, it is often terrible at realising “the scale or durability” of the new situation.

“This is why selling after bad news can still make sense,” he said.

“Humankind cannot bear very much reality. It can take quite some time for the penny to drop, and a share that has fallen by 50% can still lose another 100%.”

Good reason #3: you made a mistake

An excellent reason to sell shares is that buying it in the first place was an error of judgement.

“We all do it. Indeed, a successful investor can be one who simply makes more good decisions than bad. 

“If you run your profits and cut your losses, a hit rate of only 50% might be good enough.”

Good reason #4: reduce risk

Reducing the risk of sticking with a winner is an “underrated reason” to sell shares, reckons Stevenson.

If you have a multi-bagger on your hands, just sell the amount that you invested in the first place. From that point on you can’t do any worse than a 0% loss.

Stevenson remembers he once told a friend to do this.

“At the time he could have done this by selling as little as a third of his holding. Doing so would have ensured that the worst possible outcome would be just getting his money back.

“He didn’t and it wasn’t.”

Good reason #5: changes in personal circumstances

There are a myriad of reasons in your personal life that could prompt you to sell shares.

“Your risk appetite may have changed, and you can no longer tolerate the potential downside of an investment.”

One day you might just need the cash.

“That, after all, is the reason we invest in the first place. To be able to spend our money one day in the future. Eventually, that day arrives.

“Meanwhile, you might be lucky and find that one or two good investments have shifted your portfolio away from your desired weightings. Rebalancing is a good reason to sell.”

Bad reason #1: you made a profit

For Stevenson, selling ASX shares because you’ve made a profit is the worst reason to do so.

He does admit that psychologically this is “the easiest circumstance in which to bail out”.

“Securing a profit provides temporary validation. 

“And if the investment fails to notice that you have sold it and continues to rise, it’s easy to look the other way.”

But stocks have no memory, so exiting an investment just because it has made money makes no sense. The money made says nothing about the future prospects.

“Having a target price sounds sensible but it rarely makes sense to exit a winning trade. The trend is usually your friend.”

Bad reason #2: you made a loss

By the same logic, to sell ASX shares just because you’ve copped a loss is also a mistake.

“At times, it can make sense to draw a line under a failed trade, but never simply because the price has gone down,” said Stevenson.

“This tells you nothing except what other investors are doing and how deeply ingrained is your loss aversion. It says nothing about the investment itself or whether you should stay or go.”

Bad reason #3: you are scared or bored

Offloading stocks because you are alarmed by the market or the world at large is a classic case of acting from emotion rather than logic.

“If the news headlines are so grim that you want to hide in a corner until things look better, you can be sure every other investor feels the same way. 

“That can be a recipe for abandoning an oversold investment that’s ripe for a rebound.” 

To sell shares out of a duty to be doing something is also dangerous.

“The only worse emotion than fear as a trigger for selling is boredom,” said Stevenson.

“Very often we just feel we need to do something. Invariably we shouldn’t.”

The post 5 best and 3 worst reasons to sell your ASX shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy next week
• How to generate $10,000 of passive income from BHP shares
• 3 world-class ASX retirement shares to buy now
• Here’s an ASX dividend stock under $10 to buy for monthly passive income
• 3 ethical ASX shares poised to outperform in 2024

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

from The Motley Fool Australia https://ift.tt/VUCBJXQ

It was another busy week for Australia’s top brokers. This led to the release of a large number of broker notes.

Three ASX broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

CSL Ltd (ASX: CSL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $334.00 price target on this biotechnology company’s shares. Morgan Stanley has been looking at plasma collection data. It was pleased with what it saw in respect to collections and the company’s network rollout. In light of this, it remains very positive on the company’s outlook. The CSL share price ended the week at $293.00.

IDP Education Ltd (ASX: IEL)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this student placement and language testing company’s shares with a trimmed price target of $25.00. The broker acknowledges that the company could be impacted by policy changes in Canada in the near term and has downgraded its earnings estimates to reflect this. Nevertheless, it remains very positive on the long term and is forecasting strong earnings growth through to at least FY 2026. The IDP Education share price was fetching $19.67 at Friday’s close.

Wesfarmers Ltd (ASX: WES)

Analysts at Goldman Sachs have upgraded this conglomerate’s shares to a buy rating with an improved price target of $62.90. The broker believes that the key Bunnings business is well-positioned to benefit from a more resilient Australian housing outlook. It expects this to lead to the hardware business generating annual cashflow of $2.5 billion to $3 billion, which will support Wesfarmers’ growth opportunities such as in health and lithium. The Wesfarmers share price ended the week at $58.45.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why this broker just upgraded Wesfarmers shares to a buy rating
• 3 no-brainer ASX stocks I’d buy before a bull run
• Top brokers name 3 ASX shares to buy today
• Is now the right time to buy CSL shares? Here’s my take

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, Goldman Sachs Group, Idp Education, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended CSL and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/t5LsGeX

With the iron ore price booming at the moment, Australia’s largest miners are swimming in cash.

This bodes well for owners of BHP Group Ltd (ASX: BHP) shares, which could receive some big dividends in 2024.

But how many shares would you need to own if you wanted to receive $10,000 in passive income from the Big Australian this year? Let’s find out.

Passive income from BHP shares

According to a note out of Goldman Sachs, its analysts are expecting BHP to reward its shareholders with a fully franked US$1.49 per share dividend in FY 2024.

Based on current exchange rates, this would mean a dividend of $2.26 per share in local currency. It also equates to a 4.75% dividend yield.

Based on this forecast, investors would need to own approximately 4,425 BHP shares in order to generate $10,000 of passive income this year.

Unfortunately, this would mean a rather significant investment. At the current share price, investors would need to put $210,364.50 into BHP shares to receive the desired amount of income.

But Goldman thinks it could be worth it. It has a buy rating and $49.40 price target on the miner’s shares. This means that your 4,425 units could have a market value of $218,595 before dividends.

Furthermore, while Goldman is forecasting a dividend cut in FY 2025, a decent payout is still expected.

It has pencilled in a fully franked dividend of US$1.18 per share (A$1.79 per share). If this proves accurate, your 4,425 BHP shares would yield a further $7,920.75 in dividends over the 12 months.

That’s a total of almost $18,000 of passive income over the next two financial years.

The post How to generate $10,000 of passive income from BHP shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX mining stock doubles in value in 30 minutes on news of BHP deal
• ASX 200 mining stocks underperforming as Andrew Forrest shutters WA nickel mines
• How I invest and make money from ASX mining shares
• Top brokers name 3 ASX shares to buy next week
• Why the BHP share price has a nickel thorn in its side

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.

from The Motley Fool Australia https://ift.tt/cpWYLIB

If you’re building a retirement portfolio then it could be worth checking out the ASX shares listed below.

They are all high-quality businesses, leaders in their field, and have positive earnings and dividend outlooks.

Here’s what you need to know about them:

Telstra Group Ltd (ASX: TLS)

The first ASX retirement share to look at is Australia’s largest telco, Telstra.

It has the type of defensive qualities that you would want from a retirement portfolio holding. It also offers an above-average dividend yield, which is tipped to grow.

For example, Goldman Sachs is forecasting fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $4.00, this will mean yields of 4.5% and 4.75%, respectively.

Goldman has a buy rating and $4.70 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX retirement that could be a buy is Transurban.

It is the toll road giant behind roads including CityLink, Cross City Tunnel, AirportlinkM7, and 95 Express Lanes, as well as the Linkt, Expresslane, A25 Smart Link platforms.

The team at Citi sees Transurban as a top option to buy right now. In fact, its analysts “see upside to DPS guidance from CPI-linked tolls.”

The broker is forecasting dividends per share of 63 cents in FY 2024 and 65 cents in FY 2025. This will mean yields of 4.8% and 4.9%, respectively.

Citi has a buy rating and $15.90 price target on Transurban’s shares.

Woolworths Limited (ASX: WOW)

A final share to look at buying is Woolworths.

It is the retail conglomerate behind the Woolworths supermarket chain, Countdown supermarkets in New Zealand, and Big W. It also has a growing presence in the pet care market.

Much like the others, it has the defensive qualities that you would want from an ASX retirement share.

Goldman Sachs is a very big fan of the company. So much so, it has Woolworths on its coveted conviction list.

It expects its omni-channel advantage and potential market share gains to underpin fully franked dividends per share of $1.15 in FY 2024 and $1.25 in FY 2025. This will mean yields of 3.2% and 3.45%, respectively.

Goldman has a conviction buy rating and $43.30 price target on Woolworths’ shares.

The post 3 world-class ASX retirement shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• At 20x earnings and a 4% yield, surely I can’t ignore this ASX 200 stock?
• Retirees: 2 Top ASX dividend shares I’d buy now for passive income in 2024
• Woolworths share price in the red as CEO denies trying to ‘cancel’ Australia Day
• Brokers name 3 ASX dividend shares to buy now
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares

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 positions in and has recommended Goldman Sachs Group and Transurban Group. 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.

from The Motley Fool Australia https://ift.tt/nh7k2Bi

Most ASX investors love a good dividend-paying stock. If you want to buy a dividend stock for your own portfolio, however, you’ll probably be forced to buy shares that pay out passive dividend income only every six months.

From Commonwealth Bank of Australia (ASX: CBA) to BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS) to Woolworths Group Ltd (ASX: WOW), biannual dividend payments are the accepted norm on the ASX.

You can get investments that pay out quarterly passive income. However, these are usually confined to exchange-traded funds (ETFs) and ASX shares with primary listings overseas, such as Coronado Global Resources Inc (ASX: CRN).

But let’s talk about ASX dividend stocks that pay their investors passive income every single month. These are extraordinarily rare on the ASX, with only a handful of companies offering this perk.

And there’s only one that I’d consider buying for monthly dividend income today. It also happens to be well under $10 a share right now.

It’s Plato Income Maximiser Ltd (ASX: PL8). Plato Income Maximiser is a listed investment company (LIC). That means it functions as an investment vehicle itself, holding an underlying portfolio of shares for the benefit of its own investors.

The ASX’s best monthly passive income stock?

As its name implies, Plato’s purpose is to provide its investors with significant dividend income, paid out every month. To this end, its investing portfolio typically only consists of heavy-hitting ASX dividend shares that dole out fully franked passive income.

As of the company’s latest update, Plato’s portfolio included the likes of CBA and BHP, as well as Woodside Energy Group Ltd (ASX: WDS), Goodman Group (ASX: GMG) and JB Hi-Fi Limited (ASX: JBH).

But let’s talk dividends. So as we’ve already covered, this company pays out passive dividend income every single month. Since April 2022, this monthly dividend has come in at 0.55 cents per share.

At this LIC’s current share price of $1.18, the past 12 months’ worth of dividends give Plato a trailing and fully franked dividend yield of 6.06%.

That’s obviously quite a chunky yield, especially when you consider you bank part of it every four weeks or so.

But it’s not the only reason why I’d happily buy Plato shares today (if I didn’t already own quite a few).

Plato Income Maximiser, unlike many dividend-focused investments, also has a pretty good overall track record when it comes to absolute performance. Its December update confirms that investors have enjoyed a total return (franked dividends plus share price growth) of 9.6% per annum since the LIC’s inception in 2017.

That comes in above the return of the company’s benchmark. Yes, the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index brought in an average of 9.5% per annum over the same period.

As such, we can conclude that Plato investors have enjoyed chunky passive income paid monthly over the past almost seven years. Not to mention a market-beating investment to boot.

The post Here’s an ASX dividend stock under $10 to buy for monthly passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• I’m buying these 2 ASX dividend shares for 2024 and beyond!
• How to make income every month with $10,000 and these 2 ASX dividend stocks

Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Goodman Group and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/b5mpKvt

ASX shares are, as a whole, kicking off 2024 with a rather lacklustre performance.

After gaining 8.4% in 2023, the All Ordinaries Index (ASX: XAO) is down 0.8% since the closing bell on 29 January.

But the year is young. And there are literally thousands of potentially profitable ASX shares to investigate.

If you’re looking to invest in companies that, atop hopefully gaining in value, also work to improve the world, then you’ll want to know what Andy Gracey, portfolio manager of the Emerging Companies and the Australian Shares Fund at Australian Ethical Investment, told The Motley Fool earlier this week.

And according to Gracey, investing in ethical ASX shares shouldn’t lead to lower returns.

“We believe investors don’t have to sacrifice investment returns while investing in more progressive companies that leave the world in a better place,” he said.

With that said…

ASX share leading the renewable charge

The first stock Gracey believes is positioned to outperform in 2024 is ASX energy share Contact Energy Ltd (ASX: CEN).

“We remain believers in Contact Energy which is a renewable energy generator and retailer out of New Zealand,” Gracey told us.

He noted that New Zealand’s energy transition now sees some 80% of the nation’s energy generated from renewable sources.

Gracey added:

We believe the transition will grow the overall energy market 3% to 4% per annum as electric vehicles and electrical applications progressively displace petrol and diesel. Contact Energy trades on reasonable earnings multiples with a credible dividend yield.

The ethical ASX share has gained 2% over the past 12 months.

As of Thursday’s closing price, Contact Energy shares trade on a trailing dividend yield of 4.1%, unfranked.

An ethical ASX travel stock

The second ethical ASX share Gracey is bullish on for 2024 is travel stock Webjet Ltd (ASX: WEB).

“Webjet is both a domestic online travel booking business and a much larger business to business hotels, and beds booking business,” he said.

He said his fund is “attracted to the growing long-term thematic around leisure travel and particularly the WebBeds hotel rooms market-place business”.

As for the growth outlook, he added, “We believe WebBeds can grow its circa 4% global market share into a bigger business and investors are paying a reasonable earnings multiple for the business today.”

The Webjet share price is up 6% over 12 months. The company suspended its dividend payments in 2020 following the outbreak of the COVID pandemic.

A pivotal year ahead for this ASX share

The third ethical ASX share Gracey has an optimistic outlook on is biotech company Immutep Ltd (ASX: IMM). His fund has a holding in the immunotherapy drug developer.

According to Gracey, “Immutep should have a pivotal year in 2024. We expect to see continued strong clinical data in lung cancer as well as head and neck cancer treatments.”

He added:

Immutep is the number two globally in clinical development of a new class of immunotherapy called LAG3. To date this has shown to enhance the clinical efficacy of cancer treatments, with few safety issues when combined with the global leading immunotherapy Keytruda, which is owned by pharmaceutical giant Merck.

This ethical ASX share has gained 21% over the past 12 months.

The post 3 ethical ASX shares poised to outperform in 2024 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Tripled since COVID: 2 rocketing ASX 200 stocks not too late to buy
• True blue tech: The ASX shares I’d buy to build a Nasdaq index-inspired portfolio
• Goldman Sachs says these ASX 200 stocks are buys today

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.

from The Motley Fool Australia https://ift.tt/0VPMHdQ

The Australian share market has made countless millionaires since it was established in 1987.

And the good news is that there’s nothing to stop you from trying to be one of them in the future.

But how long does it take to become a millionaire with ASX shares? Let’s take a look and find out.

Becoming a millionaire with ASX shares

History shows that with a combination of capital, time, and compounding, investments in ASX shares can grow into something significant.

But how much capital do we need? Well, the more capital you can put in, the less time you will need.

For example, based on an expected (but not guaranteed) average return of 10% per annum, which is in line with historical averages, it would take you approximately 29.7 years to grow a million-dollar portfolio by investing $500 a month into ASX shares.

That means that if you were 20 years old, you would be a millionaire when you turned 50.

But if you’re either older than this or simply want to get there quicker, you can do so by putting a little extra into ASX shares each month.

If you were to put in $1,000 a month into the share market, it would take you approximately 23 years to reach your goal.

Have more money to invest? Well, increasing your monthly contribution to $2,000 would get you to one million dollars in under 17 years.

And finally, if you’re lucky enough to have $5,000 spare to invest into ASX shares each month, you would reach your $1 million portfolio goal in 10 years.

In summary:

• $500 – 29.7 years
• $1,000 – 23 years
• $2,000 – 17 years
• $5,000 – 10 years

It is also worth noting that you could increase your monthly contributions as your wage grows over the years, which would cut down the time it takes to reach your goal.

The post How long does it take to become a millionaire with ASX shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why I think Lovisa stock is an amazing ASX 200 buy for both dividends and growth
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Wednesday

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.

from The Motley Fool Australia https://ift.tt/l5cEngM