Tag: Motley Fool

Ten years is a long time.

A lot can happen in a decade — recessions, wars, elections. So there are no guarantees, especially in investing.

However, there are some S&P/ASX 200 Index (ASX: XJO) businesses that have shown a consistent history of growth and have favourable structural drivers supporting their cause.

So investors can take some educated guesses as to which ASX shares to buy now that they can put away in the bottom drawer for the next 10 years.

Many experts would argue that every stock purchase should go through such a long-term filter anyway.

Indulge me as I pick out two ASX 200 stalwarts that are excellent candidates for locking away:

Will diet drugs suppress sleep apnoea?

Sleep apnoea device maker Resmed CDI (ASX: RMD) had well-publicised battles with critics last year.

The doubters put questions in investors’ minds about how much business ResMed would lose due to the reduction in obesity brought on by new GLP-1 weight loss drugs.

The reasoning is that, as excessive weight is one of the major contributors to sleep apnoea, those diet drugs, of which Ozempic is one, could dramatically shrink ResMed’s addressable market.

As such, the ResMed share price is still 20.7% down from the August reporting season.

However, this could merely represent an outstanding buying opportunity for shrewd long-term investors.

That’s because multiple experts, including Shaw and Partners senior investment advisor Jed Richards, have insisted that the Ozempic fear is overstated.

“Several structural themes continue to support ResMed’s growth in the medium to longer term, such as an ageing global population and an increasing awareness of sleep apnoea,” Richards told The Bull earlier this month.

“Government regulation expanding the use of digital health applications provide[s] a compelling backdrop for ResMed to continue growing resiliently.”

The numbers don’t lie. According to CMC Invest, 18 out of 24 analysts currently believe ResMed shares are a buy.

Despite the 2023 troubles, the stock’s long-term track record is impeccable. Over the past 10 years, Resmed has returned an impressive 439%.

The company delivers its latest quarterly results on Thursday.

Shares to buy if climate change can’t be stopped in 10 years

Johns Lyng Group Ltd (ASX: JLG) is one of those businesses that will potentially have more work the worse climate change gets.

So that, unfortunately, means it has a strong structural driver for investors thinking of holding the stock for the next decade.

The company provides repair and reconstruction services for insurance claims.

And the wild weather of recent years has led to explosive growth in its earnings.

Earlier this month, Medallion Financial Group portfolio manager Stuart Bromley recommended Johns Lyng as a buy.

“Management has a history of exceeding expectations, with fiscal year 2023 net profit after tax (NPAT) of $62.8 million above consensus forecasts of $50 million,” Bromley told The Bull.

“We expect an already strong pipeline of work to be bolstered from recent storm damage in Queensland and Victoria.”

The Johns Lyng share price, accordingly, has rocketed more than 570% over the past five years.

Nevertheless, the stock is going for about 24% lower than its April 2022 peak, giving long-termers an excellent look-in right now.

Four out of six analysts currently rate Johns Lyng as a buy, as shown at the moment on CMC Invest.

The post 2 ASX 200 shares to buy in 2024 and hold for the next 10 years appeared first on The Motley Fool Australia.

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More reading

• Here are 10 ASX shares I’d buy in 2024
• Experts tip very big returns from these outstanding ASX 200 blue chip shares
• 3 things ASX investors should watch this week
• Top brokers name 3 ASX shares to buy next week
• Want $1 million in retirement? 3 ASX shares I think could make it happen

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Johns Lyng 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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You may have missed the boat, but checking out ASX shares that have exploded is still a fun activity.

As well as providing fantasy stimuli, such stars demonstrate to investors that just one or two stocks can carry a properly diversified portfolio, even if its cohorts had shockers.

So the moral of the lesson is that not every stock you buy has to be a winner for you to end up a winner.

3.7 million patients seeking a solution

At the close of trade on 30 December 2022, the Botanix Pharmaceuticals Ltd (ASX: BOT) share price sat at just 5.3 cents.

Let’s imagine you had the foresight to buy $40,000 of Botanix shares at this time.

During 2023, investors flocked to the ASX healthcare stock as its products went through the development and approval pipeline.

Although formerly known as a cannabis stock, the flagship drug for Botanix is now a substance called Sofpironium Bromide — or Sofdra, as it is commercially known.

As The Motley Fool’s James Mickleborow explained last year, Sofpironium Bromide was the first-ever treatment developed to treat primary axillary hyperhidrosis.

That disorder is best described as uncontrollable sweating, especially in the underarms.

“In the US alone, there are approximately 10 million patients who suffer from primary axillary hyperhidrosis. Approximately 3.7 million of those are already actively seeking treatment.”

This product was apparently the source of much excitement for investors.

Next catalyst could come in June

Just between June and September, Botanix shares rocketed 150% higher, prompting a “speeding ticket” enquiry from the ASX.

The company explained that it could be investors speculating on the result of an application for Sofpironium Bromide to the Drug and Food Administration (FDA) in the US.

“The company notes that if [the] FDA decision is received, it will represent a significant milestone for the company, as it will pave the way for an expansion of the company’s operations and revenue generation.”

Unfortunately, in September, the FDA replied to Botanix without an approval, sending the shares crashing down.

The ASX healthcare stock has since recovered, after the company later resubmitted its application. 

This week the FDA indicated that it now considered Botanix’s application as a “full response” and that an approval decision is scheduled for late June.

So after that rollercoaster ride, the stock price is at 17 cents. That means your investment has now turned into a whopping $128,301.

That’s a phenomenal 220% gain in just over a year.

Botanix shares are sparsely covered but, according to CMC Invest, the analysts at Euroz Hartleys rate it as a strong buy.

The post If you’d put $40,000 in this ASX healthcare stock at the start of 2023, you’d have $128,000 now appeared first on The Motley Fool Australia.

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More reading

• The 3 best ASX dividend shares for 2024
• How I’d aim to build a bullet-proof ASX passive income portfolio with just $7,000 in 2024
• 3 no-brainer ASX 300 shares I’d buy right now without hesitation
• Being told what we want to hear
• Here are the top 10 ASX 200 shares today

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.

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If you’re seeking income this year, it’s best to take some advice from those who specialise in that area.

IML Equity Income Fund portfolio manager Michael O’Neill warns how it’s not just about buying up all the ASX dividend shares with the highest yields.

“To maximise income, investors should look for companies that pay consistently high dividends, year after year, rather than cyclical companies where dividends often fluctuate with economic cycles,” O’Neill said on the IML blog.

His team’s research found that “high-quality industrial companies” most often meet this criteria.

“Specifically, we look for companies which are industry leaders, with defensive earnings, growing dividends, and have a strong balance sheet.”

Considering this and the current stage of the economic cycle, three income stocks are head and shoulders above the rest right now, according to O’Neill:

‘Great ability to pass through higher costs to its customers’

Medibank Private Ltd (ASX: MPL) shares have powered 6.6% higher so far this year.

O’Neill reckons the country’s largest private health insurer is firing on all cylinders.

“It has bounced back strongly from [the 2022] cyber hack with its Net Promoter Scores (a key measure of customer satisfaction) recovering quickly and policy holders growing at around 2% pa.”

He added that the business has no debt and is currently increasing profit margins through a stalling economy because of the higher interest earned from collected premiums.

“Medibank has also shown a great ability to pass through higher costs to its customers over the past year, while still increasing overall customer numbers.”

Australia’s ageing population is also a structural growth driver as the government continues to struggle to fund the public health system.

“This continued growth should be able to help it continue its strong dividend history,” said O’Neill.

“Medibank is trading at a valuation of 17 times FY 24 earnings, and has a yield of 4.6%.”

‘An exemplary record’ of growing dividends

O’Neill’s second tip was also related to healthcare.

The Sonic Healthcare Ltd (ASX: SHL) share price has dropped almost 32% since the start of 2022 after a two-year boost from COVID-19 testing.

That temporary boom has left the business with little debt, and O’Neill is betting it will use that financial muscle.

“This strong balance sheet has it well placed to continue to grow through acquisitions, as it has done in the past. 

“Sonic is well placed to continue to benefit from the good growth prospects in healthcare. The diagnostic imaging sector also tends to be resilient throughout the economic cycle.”

He added Sonic Healthcare shares have “an exemplary record” over the past two decades of growing its dividends.

“Sonic is currently trading on a valuation of 22.5 times FY 24 earnings with a dividend yield of 3.4%.”

The ASX dividend shares with geopolitics going for it

Petrol refiner and retailer Ampol Ltd (ASX: ALD) is also among the top three income stocks for O’Neill.

He admitted refining crude oil is a “sunset” industry, although that does mean Ampol will not face any new competition in that activity.

And the geopolitical instability over the past two years has turned regulatory forces to Ampol’s favour.

“The Australian government introduced a new policy which effectively means that refiners are guaranteed a positive margin,” said O’Neill.

“So, while Ampol can still earn an attractive margin under the right conditions, effectively it cannot run at a loss, which will enhance its returns through the cycle.”

Having said all that, the future driver for the business is its network of service stations.

“Ampol is also well placed to benefit from the trend towards increased sales of non-fuel retail through its large network of strategically placed property assets.

“In countries like Norway, where the transition to EVs is much more advanced, sales from non-fuel retail have increased, partly due to longer dwell times as customers re-charge their vehicles.”

While the dividend growth is not quite as consistent as Sonic Healthcare, Ampol’s distributions have trended upwards in the long run.

“Ampol is currently trading on a price to earnings ratio of 11 times FY 24 earnings and a yield of 6.8%,” said O’Neill.

“While stocks linked to fossil fuels are priced at a discount because of ESG concerns, we know oil in some shape or form will be around and in use for decades, which makes Ampol attractive right now.”

The post The 3 best ASX dividend shares for 2024 appeared first on The Motley Fool Australia.

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More reading

• This 5%-yielding ASX 200 dividend giant looks like a hidden gem to me
• Top ASX shares to buy in 2024 instead of investing in a term deposit
• Why Ampol, APM, Liontown, and Wildcat shares are dropping today
• Guess which ASX All Ords shares are sinking after poor updates
• Here are the top 10 ASX 200 shares today

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 recommended Sonic Healthcare. 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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Are you keen to build a bullet-proof passive income stream in 2024 without investing a fortune?

Well, the good news is, by investing in the right basket of ASX dividend shares, you don’t need to be a billionaire like Warren Buffett to get started.

Though you should keep this Warren Buffet investing nugget in mind.

“Embrace what’s boring, think long-term, and ignore the ups-and-downs,” the Oracle of Omaha advises.

With that said, here’s how I’d aim to build a reliable passive income stream in 2024 with just $7,000.

Diversify your passive income portfolio

First, it may be tempting to invest my full allotment in a single high-yielding ASX stock.

ASX coal stock Yancoal Australia Ltd (ASX: YAL) comes to mind.

And if I already had a diversified passive income portfolio, Yancoal might be one I’d add to it.

While coal prices have come down from their records, and Yancoal’s FY 2024 dividends may not match the soaring payouts we saw in 2022 or 2023, the Yancoal share price has come down 19% over the past year too.

That sees Yancoal trading at a whopping fully franked trailing yield of 19.6%. Meaning even if this year’s dividends are significantly reduced, the company is still one I’d consider adding to my broader portfolio of income stocks.

But, as I’m starting with just $7,000, I’d steer clear of selecting my own basket of diversified shares for my bullet-proof passive income stream.

Instead, I’d consider a high-yielding exchange-traded fund (ETF) like the BetaShares Australian Dividend Harvester Fund (ASX: HVST).

By investing $7,000 in this ASX ETF I’ll have immediate exposure to a well-diversified portfolio.

HVST holds between 40 to 60 ASX dividend shares, operating across a range of sectors.

Its top three holdings are Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).

Just from those first three, my $7,000 passive income portfolio is already diversified across the banking sector, healthcare and mining.

As at 29 December, HSVT’s 12-month yield was 6.7%, franked at 80%. The ASX ETF’s 12-month grossed-up yield works out to 9.9%.

And I can expect a passive income payout from this investment every month, with HVST making monthly distributions.

Remember Warren Buffett

So, what kind of passive income can I expect in 2024 from my $7,000 investment?

Well, working with the trailing yield, that would be $469. As for the grossed-up yield, that equates to a very tidy $693. And, of course, I’ll be hoping for some capital gains as well.

Now, looking back to what Warren Buffett advises, I’ll also remember to think long-term and harness the magic of compounding.

HSVT has a dividend reinvestment plan.

If I was able to reinvest that passive income for 20 years, at the current 6.7% yield (and assuming no capital gains or losses for the BetaShares Australian Dividend Harvester Fund), that would see my $7,000 investment balloon to $26,634 in 20 years.

And in 30 years, that would grow to $51,952.

The post How I’d aim to build a bullet-proof ASX passive income portfolio with just $7,000 in 2024 appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up this week
• How to make income every month with $10,000 and these 2 ASX dividend stocks

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 CSL. 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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As most ASX investors would be aware, the S&P/ASX 200 Index (ASX: XKO) and the broader Australian share market have been on a bit of a tear of late.

Since the beginning of November, the ASX 300 Index has risen by a healthy 11% or so – more than its average annual gain. This puts the share market within a whisker of its all-time high as we speak.

Normally, I am more reluctant to spend big on ASX shares when the market is this close to a new all-time record.

However, I still believe in investing for investing’s sake. After all, shares have historically been the best asset to invest in if you want the best returns possible.

So today, let’s discuss three no-brainer ASX shares I would be happy to buy right now with absolutely no hesitation.

3 ASX no-brainer shares I wouldn’t hesitate to buy now

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares have coincidentally just hit a new 52-week high. But I’d still happily invest in this ASX 200 conglomerate today. I regard Wesfarmers as one of the strongest businesses on the ASX.

It owns a bevvy of famous retailers, including Kmart, OfficeWorks, target, and its crown jewel, Bunnings. That’s in addition to a huge array of other interests. These include Kleenheat Gas, Covalent Lithium and the Priceline pharmacy chain.

Wesfarmers has a long history of delivering both healthy capital growth and chunky dividends to investors over many decades. With these quality assets under its hood, I see no reason why this won’t continue.

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

Next up we have investing house Soul Patts. Soul Patts is my favourite ASX share on our stock market. For one, its shares give us instant diversification, given Soul Patts owns a vast portfolio of underlying investments that it manages on behalf of shareholders. These include major ASX blue chips, massive stakes in companies like TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC), as well as unlisted assets.

Soul Patts has historically delivered market-smashing returns. Recently, it confirmed investors enjoyed an annual average return of 12.5% per annum over the 20 years to 31 July 2023. That includes a 23-year streak of annual dividend pay rises too. You could do far worse than investing in this company today.

Vanguard Australian Shares Index ETF (ASX: VAS)

Finally, let’s talk about this index fund from Vanguard. Although not an ASX share, VAS represents an investment in the largest 300 shares on our stock market. That includes everything from Commonwealth Bank of Australia (ASX: CBA) to Coles Group Ltd (ASX: COL), as well as the two companies I’ve already mentioned.

Since investing in an index fund like this is arguably akin to investing in the Australian economy itself, I don’t believe there’s ever a bad time to put money into VAS units. You get loads of diversification here too, as well as a decent dividend yield that is paid out quarterly.

The post 3 no-brainer ASX 300 shares I’d buy right now without hesitation appeared first on The Motley Fool Australia.

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More reading

• Breaking: Wesfarmers share price hits new 52-week high
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• I’m buying cheap ASX shares to build my wealth in 2024 and beyond
• How I’d create investment cash flow in retirement from ASX ETFs
• Top ASX shares to buy in 2024 instead of investing in a term deposit

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers, Vanguard Australian Shares Index ETF 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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Tpg Telecom. 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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I haven’t written much here in the past week or so.

Partly, I’ve been busy writing for our Motley Fool Member Centre. Partly, I’ve been head-down-bum-up researching investment ideas.

And partly some of the ‘big picture’ stuff that’s been occupying my time and attention didn’t really feel like the sort of thing many of my readers would appreciate (largely Stage 3 tax cuts, a structurally unbalanced Budget, and a lack of commitment to policy in the national interest in Canberra).

On the latter of the three, consider yourselves lucky to have avoided a ranty monologue (but if you’re interested – and perhaps masochistic – my Twitter feed has all of the gory details of my views on the big picture stuff).

One positive: the goings-on in Canberra did remind me of one of the more important parts of investing: leaving your biases at the door.

Yes, many of those who would profess to have a view on ‘policy’ are really just (poorly) dressing up their own self-interest by pretending that it’s about the policy. That’s not a shock (though I am regularly disappointed).

But investors can suffer a similar fate. Sometimes it is pure self-interest. Other times a more insidious foe: our own preferences and outlook.

I’ve written before about a mate who would never invest in the shares of a particular brewery, because he didn’t like one of their beers. Never mind that millions of schooners were poured and stubbies consumed every year.

I heard from a correspondent that he wouldn’t invest in a given retailer, because his experience as a customer was poor.

Others won’t invest in some companies because they disagree with the ethics of the potential investees.

On the other hand, some people are so in love with a manager, company, brand or product, that you can’t hold them back (and a Tuesday afternoon tip of the hat to the Elon Musk fan club! Thanks for reading.).

Is there anyone else I’m yet to offend? Probably not.

But hold your offence for just a minute.

See, I’m not saying you should ignore your experience as a consumer or customer. Or that you should betray your personal ethics. And god forbid I say Elon isn’t the Chosen One. (Sorry.)

Indeed, these things can be important contributors to finding a great investment.

Finding Steve Jobs in 1985 would have been very rewarding.

Recognising that mainstream beer’s heyday was over could have been a key insight.

Having a terrible – or great – experience with a company can be instructive.

These can all be useful.

Or not.

The key is to make sure you treat each data point not as an opportunity to confirm your existing views, but to add to your dataset.

The brewer could be on the way out… or it could be about to score with a new craft beer.

The retailer could be terrible… or you just hit a particular store on a bad day.

That charismatic CEO could be the next Steve Jobs… or the next Bernie Madoff.

That ethical flaw could be the downfall of the company… or immaterial to its future profitability

You get the idea.

It’s harder said than done, of course. We all love to have our biases confirmed. We love the friend who badmouths our cheating ex. We want to be told we look good in that shirt. In short, we want our ego stroked, and little is more effective in that department than confirmation bias.

A rude retail worker? We’ll latch on to any similar stories and tend to ignore the good ones.

A rockstar CEO and a rising share price? I’m a genius and she can do no wrong.

Bono doesn’t like the business either? I knew I was in good company!

Turns out, Tesla‘s share price is down 16% this month, cigarette company Altria is one of the best performing stocks of the past 50 years and, well, if I see one more new craft IPA…

No, a month doesn’t tell us anything. Altria’s past 50 years may not, either, as smoking rules continue to be tightened. And just once I’d like to see craft lager, dark ale or pilsner on tap!

(The latter is a bit of a lie. I’m pretty partial to Tooheys Old or Guinness. Someone else can drink the craft beers.)

My point is that an investor’s job is to look at the market for the product, and not be too self-referential. Your experience with a company or product can be a helpful starting point, but don’t let it cloud your judgement.

I don’t use, ahem, a lot of hair care products. But the market is huge. I’m partial to Australian Country music, but I wouldn’t be buying up shares in music labels any time soon, hoping to make ten times my money when the rest of the country finally discovers it.

(Another aside: I took my young bloke to the Tamworth Country Music Festival last year and had a ball. Go, if you get the chance!)

But as for investing? Be dispassionate. Hate something that everyone else loves? Might still be a worthwhile investment. Love something that everyone else hates? Tread carefully, love can be blind.

Now, if you’ll excuse me, it’s back to Twitter to set the world to rights. At least it saves me yelling at the clouds!

Fool on!

The post Being told what we want to hear appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 2 defensive ASX income shares I think investors should consider buying for bumper returns!
• Buy ASX uranium shares now before ‘panic buying’ sets in, says expert
• Breaking: Wesfarmers share price hits new 52-week high
• Miners among the ASX 300 shares surging on quarterly reports

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

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More reading

• Miners among the ASX 300 shares surging on quarterly reports
• Up 10%: Why the Polynovo share price is popping today
• Why Boss Energy, Cooper Energy, Judo Capital, and Polynovo shares are racing higher
• Goldman Sachs says these ASX 200 mining shares can rise 20%+
• Here’s the lithium price forecast through to 2027

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, PEXA Group, PolyNovo, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Aub Group 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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I think both of the ASX income shares I’m going to tell you about are compelling options for the payouts.

The last year or two has seen interest rates soar and some asset prices drop. I get excited when share prices drop for ASX dividend shares because it has the effect of pushing the yield upwards. For example, if a business with a 5% dividend yield suffers a 10% share price drop, the yield becomes 5.5%.

Bigger falls cause larger increases to the yield, assuming the payout isn’t reduced by the business (in dollar terms).

Centuria Industrial REIT (ASX: CIP)

Logistics are an essential part of any business that deals with physical products. This business is a real estate investment trust (REIT), it owns industrial properties across Australia.

The COVID-19 period ignited a lot of demand for industrial warehouses in Australia, which is helping the ASX income share because nearly all of its properties are tenanted and the (organic) rental growth is stronger.

In the update for the three months to 30 September 2023, the occupancy rate for the REIT was 98.6% with a weighted average lease expiry (WALE) of 7.8 years. In the first quarter of FY24, it reported a positive re-leasing spread of 48%, which is a lot more rental income compared to the old lease rate.

Businesses will still need their warehouse in a downturn, I think its rental earnings could be very defensive because of the long-term rental agreements.

It’s expecting to pay a distribution of 16 cents per unit in FY24, which translates into a distribution yield of 5.1%. The Centuria Industrial REIT share price is 25% lower than 31 December 2021.

APA Group (ASX: APA)

APA is a large energy infrastructure owner. This ASX income share owns a national network of gas pipelines, transporting half of the nation’s gas usage – I think this fact means the business has defensive earnings. We all need energy, households and businesses alike.

It also owns assets across gas storage, gas processing, gas-powered energy generation, electricity transmission and renewable energy generation.

The business has grown its annual distribution every year since 2004, which is one of the longest-running consecutive growth streaks on the ASX.

It pays for the distribution from its cash flow, which is growing thanks to inflation-linked revenue and regularly completing the construction of another pipeline or acquisition of another electricity-related asset.

The defensive ASX income share is expecting to pay a distribution per security of 56 cents, which is a forward distribution yield of 6.8%. The APA share price is down 31% from August 2022.

The post 2 defensive ASX income shares I think investors should consider buying for bumper returns! appeared first on The Motley Fool Australia.

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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 Apa 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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ASX uranium shares have soared over the past year as the commodity price skyrocketed 110% to a 17-year high.

The uranium price is currently US$106 per pound after breaching the US$100 mark earlier this month.

And broker Shaw and Partners reckons the commodity price will keep rising from here.

The broker has just raised its 12-month forecast for the uranium price by 76% from US$85 per pound to US$150 per pound.

Demand for uranium is skyrocketing as the world embraces nuclear energy as part of decarbonisation.

According to the Australian Financial Review (AFR), Shaw and Partners is urging ASX investors to buy uranium shares before “panic buying” sets in.

Andrew Hines, head of research at Shaw and Partners, said:

Panic buying could drive the uranium price materially higher.

There is a great saying in markets that ‘he who panics first, panics best’ and we recommend investors get ahead of potential panic buying.

Shaw and Partners recommend that investors go overweight on the uranium sector.

Which ASX uranium shares should you buy?

Shaw and Partners has named its five preferred ASX uranium shares.

In no particular order, the broker recommends Paladin Energy Ltd (ASX: PDN), which is the biggest ASX uranium share by market capitalisation.

The Paladin Energy share price is $1.22, up 1.67% today and up 56% over the past 12 months.

It also likes Silex Systems Ltd (ASX: SLX) shares, which are up 0.63% to $4.79 today and have risen 3.5% over the past 12 months.

Bannerman Energy Ltd (ASX: BMN) also makes the list. The Bannerman Energy share price is up 0.6% on Tuesday to $3.44 and up 80% over the past 12 months.

Shaw and Partners also likes Peninsula Energy Ltd (ASX: PEN) shares, which are up 1.82% today to 11 cents and down 30% over the past 12 months.

The broker’s final ASX uranium share tip is Lotus Resources Ltd (ASX: LOT). Lotus shares are down 3.17% to 31 cents on Tuesday but are up 27% over the past 12 months.

The post Buy ASX uranium shares now before ‘panic buying’ sets in, says expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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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It’s been a grand old time for the Wesfarmers Ltd (ASX: WES) share price recently.

For one, Wesfarmers shares had a stonking 2023, rising around 25%. That easily beat out the broader market’s performance. The S&P/ASX 200 Index (ASX: XJO) ‘only’ managed a still-respectable 9% return.

But Wesfarmers shares seem to be continuing this tradition in 2024. Today, this ASX 200 industrial and retail conglomerate has celebrated the new year in style by minting a fresh new 52-week high.

Yep, the Wesfarmers share price closed at $58.10 yesterday. But this morning, the company opened at $58.31 before rising as high as $58.39. That’s Wesfarmers’ new 52-week high watermark.

It puts the company up a rosy 1.2% in 2024 to date, as well as up 18.85% over the past 12 months. Wesfarmers last hit a 52-week low of $46.64 a share in July last year. Since then, investors have enjoyed more than 25% in gains. Including dividend returns, those gains would extend up to around 28%.

Although today’s new 52-week high is just the latest in a recent run for the company, there have been no obvious catalysts we can point to for Wesfarmers’ run of good fortune.

The company hasn’t made any significant ASX announcements in over a month. Indeed, the only 2024 release out from Wesfarmers so far merely informs shareholders that the company’s latest half-year results will be released on 15 February next month.

ASX broker labels Wesfarmers share price as a buy

Wesfarmers was the recipient of some love from an ASX broker last month though. As we covered at the time, broker Morgans slapped Wesfarmers shares with an ‘add’ rating, alongside a $55.15 share price target. That target has already been exceeded, of course.

In justifying the opinion, Morgans stated:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy.

We believe WES’s businesses, which have a strong focus on value, remain well-placed for growth and market share gains in a softening macroeconomic environment.

Morgans forecast rising dividend yields from Wesfarmers too. The broker pencilled in $1.91 in dividends per share over FY2024, rising to $2.18 per share over FY2025.

It seems investors have also adopted this position, judging by the performance of the Wesfarmers’ share price in recent weeks and months.

The post Breaking: Wesfarmers share price hits new 52-week high appeared first on The Motley Fool Australia.

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• How much would I need to invest in Wesfarmers shares for $5,000 a year in passive income?

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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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