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One of the biggest questions for stock markets this year is whether ASX lithium stocks can recover from an awful 2023.

As economies struggled both in the west and China, demand for the battery material dropped, sending both the commodity price and share prices spiralling down.

Moomoo Australia chief market strategist Matt Wilson recalled that there were brokers who had warned about this 12 months ago.

“These forecasts largely came to fruition, with the price of lithium carbonate falling by 73% to November 23.”

Sayona Mining Ltd (ASX: SYA) was no exception to this malaise, as it shed a shocking 79% off its valuation over the past 12 months.

Long-term outlook for lithium is bullish

The bright side for the lithium industry is that the world will continue to seek to reduce carbon emissions.

One of the main ways this will be done will be through the electrification of devices that are currently using fossil fuels, such as cars.

And that’s why most experts are tipping demand for lithium will recover in the long run.

Wilson pointed to the corporate frenzy seen over the past six months as evidence that the mineral has a bullish future.

“Strong takeover activity in the sector suggests global mining companies are still believers in the longer-term theme and are positioning themselves for an increasing commitment to the sector.”

But what about Sayona Mining specifically? 

Do Sayona shares have the capability to double in 2024?

But can Sayona shares double in the short term?

Firstly, it seems professional investors are bullish on Sayona.

According to CMC Invest, all three analysts that cover the stock are rating it as a strong buy right now.

However, whether Sayona shares can double just in 2024 is highly — or even entirely — dependent on which direction lithium prices go.

Earlier this month The Motley Fool’s Mitchell Lawler pointed out right now Sayona’s mines are producing lithium at a razor-thin margin of 2.8%.

So if the global commodity price falls any further, it could become uneconomic to continue mining.

Fellow junior miner Core Lithium Ltd (ASX: CXO) has already been forced to pause production, sending investors running like it was a burning building.

Another point of interest is that Sayona is one of the most shorted stocks on the ASX at the moment.

According to the Australian Securities and Investments Commission, almost 10% of Sayona shares are currently lent out to short sellers.

While on face value this cancels out the bullishness of the three analysts, even if Sayona’s valuation even creeps up a tiny amount, it could snowball into something spectacular.

In a classic short squeeze, all those short sellers would be forced to buy up the miner’s shares to cover their positions. And that in itself accelerates the price upwards even further.

The post Could the Sayona share price double in 2024? appeared first on The Motley Fool Australia.

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More reading

• Why Chalice Mining, Nuix, Pilbara Minerals, and Sayona Mining shares are falling
• These are the 10 most shorted ASX shares
• Could Sayona Mining shares be in danger of mothballing?
• Why Core Lithium, Magellan, Pantoro, and Sayona Mining shares are sinking today
• These are the 10 most shorted ASX shares

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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After a terrible couple of years, more than one pundit is predicting ASX small-cap shares will play catch-up in 2024.

The portfolio managers at Cyan Investment Management reckon some of those businesses are now in better shape than when the stock market started abandoning small caps at the end of 2022.

“We believe those companies that have taken this challenging period to reduce costs to right-size their businesses and focused on cash flow and balance sheet management will be best placed for the year ahead,” the Cyan team said in a memo to clients.

“These are the types of business we have been focusing on and believe the portfolio is well positioned.”

Here are two stocks in particular that Cyan is bullish on, that have already started to creep upwards:

‘Quality of work and diversified business model’

Cyan has backed Playside Studios Ltd (ASX: PLY) pretty much since its listing at the end of 2020, and the analysts are excited about the current state of the business.

“In recent months, Playside has delivered strong cash flow performance and upgraded its already solid revenue guidance for FY24 to $55 to $60 million.

“This momentum continued in December when it announced it has signed an agreement with Warner Bros Discovery Inc (NASDAQ: WBD) Interactive Entertainment for a multi-game licence to use ‘highly recognisable intellectual property’ under licence for the development of two PC/console titles.”

Indeed on that news the share price pushed 17% higher during the month.

“There was no financial detail, but it is assumed to be a material opportunity,” read the Cyan memo.

“We see this as further validation of the quality of work and diversified business model.”

The Cyan team has unanimous support among their peers.

According to CMC Invest, all three analysts covering the stock currently rate Playside as a buy.

Bad news now priced in for this small cap

Silk Logistics Holdings Ltd (ASX: SLH) also had a great December, rising 7%.

But the shares still trade almost 28% down from its peak in February last year.

“Other than general financial market weakness, the company has faced headwinds in some areas as the economic activity has slowed across verticals such [as] consumer discretionary spending,” read the Cyan memo.

“SLH enjoyed some respite in December rallying to $1.85, even though there was no clear catalyst by way of any company announcements.”

Despite expected weakness in performance for the December half, the Cyan analysts believe that is already reflected in the current valuation.

“We see it as priced-in and believe the company offers outstanding value and income (P/E <8, yield +5%) with strong growth in the years ahead.”

The stock is sparsely covered by other professionals. But CMC Invest shows at least Morgans and Shaw & Partners agreeing with Cyan, with both rating Playside shares as a strong buy.

The post ‘Outstanding value’: 2 ASX small-cap shares ready to explode in 2024 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX dividend stocks to boost your income portfolio in 2024
• I see this ASX 200 stock as buying $1 coins for 75 cents!
• Is 2024 the year that CSL shares finally hit a new high?
• The DroneShield share price just clocked a 7-year high. Here’s why

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Silk Logistics and Warner Bros. Discovery. The Motley Fool Australia has recommended Silk Logistics. 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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• Why Data#3, Deep Yellow, DroneShield, and Imugene shares are racing higher today
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• Buying ASX 200 shares in 2024? Here’s why this $106 billion proposed US tax break matters

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended A2 Milk and Telix Pharmaceuticals. 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 searching for ASX dividend stocks to buy for your income portfolio?

If you are, check out the three listed below that are from very different sides of the market.

Here’s why analysts are tipping these as buys:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a buy is Centuria Industrial. It is Australia’s largest domestic pure play industrial property investment company and the owner of a portfolio of high-quality industrial assets.

UBS is bullish on the company and believes its shares are in the buy zone right now. It has a buy rating and $3.71 price target on its shares.

In respect to dividends, the broker is forecasting Centuria Industrial to pay dividends per share of 16 cents in FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.14, this represents yields of 5.1% in both years.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Another ASX dividend stock that has been named as a buy is Dalrymple Bay Infrastructure. It is the long term operator of Queensland’s premier coal export facility, the Dalrymple Bay Coal Terminal (DBCT).

Citi is feeling positive about the company and has a buy rating and $3.00 price target on its shares.

As for dividends, the broker expects dividends per share of approximately 20.6 cents in FY 2023 and 22 cents in FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.74, this will mean big yields of 7.5% and 8%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

A final ASX dividend stock that has been tipped as a buy is insurance giant QBE.

The team at Goldman Sachs is feeling very positive about the company and has a buy rating and $18.52 price target on its shares.

In respect to income, the broker is forecasting payouts of 59 US cents (90 Australian cents) per share in FY 2024 and then 61 US cents (93 Australian cents) per share in FY 2025. Based on the current QBE share price of $15.15, this will mean yields of 5.9% and 6.1%, respectively.

The post 3 ASX dividend stocks to boost your income portfolio in 2024 appeared first on The Motley Fool Australia.

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• Where I’d invest $3,000 into ASX dividend shares in January
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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 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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A wise man once said, “All intelligent investing is value investing.” When buying shares in a company, the ultimate goal is to uncover an asset selling for less than what you believe it to be worth. As I look across the field of ASX 200 stocks today, one recognisable business stands out from the crowd as a mispriced buying opportunity.

The share price of this 42-year-old company has been relatively unremarkable. In the last five years, shares have grown 34% versus the benchmark’s 26% — an 8% outperformance but not quite an exceptional return at 6.8% per annum.

But, layer in the dividends, and suddenly, that 34% return expands to around 90% (18% per annum over five years). Now, that sounds a whole lot more appetising. Yet, the company trades on a price-to-earnings (P/E) ratio of approximately 10 times.

Fear has gripped this ASX 200 stock

You have probably heard of Harvey Norman Holdings Limited (ASX: HVN). A retailer of electronics, furniture, and other consumer goods, the company is a staple of shoppers in Australia and abroad.

The industry average P/E ratio is around 21 times earnings. Other retail rivals such as JB Hi-Fi Limited (ASX: JBH) and Kmart owner Wesfarmers Ltd (ASX: WES) are valued at a higher premium of 12 and 26 times earnings, respectively.

The market is evidently concerned about Harvey Norman’s more drastic retraction in earnings recently. In FY2023, net profits after tax (NPAT) plunged 33.5% to $539.5 million. Meanwhile, JB Hi-Fi experienced a lesser 3.7% reduction, while Wesfarmers grew its bottom line by 4.8%.

Analysts forecast a further 38.8% earnings decline for Harvey Norman in FY24. As always, the market is already ahead of the curve and is presumably pricing this into today’s share price.

Plenty of investors are running for the hills, away from Harvey Norman, dodging the danger of potential weakness ahead. However, I think people might be missing the forest from the trees here.

Borrowing the Macca’s playbook

In my opinion, this ASX 200 stock is a fundamentally different business than JB Hi-Fi. Much like McDonald’s Corp (NYSE: MCD) is “… not technically in the food business”, as Harry J. Sonneborn once said — Harvey Norman is not completely in the retail business.

You might be surprised to learn that Harvey Norman holds a $4 billion property portfolio. It’s the same approach as McDonald’s — buy the property, lease it out, and charge a franchising fee for using the brand.

This way of doing business is highly profitable. For example, Harvey Norman’s net margin is 19.4% versus JB Hi-Fi’s 5.4%. Likewise, the Gerry Harvey-founded company gushes free cash flow from this model.

In the last financial year, Harvey Norman raked $492 million in free cash flow.

The upshot

Harvey Norman may experience a rough patch as interest rates bite. However, the business is backed by a large and valuable property portfolio, insulating the company’s value to an extent.

Secondly, the franchisor is continuing to expand into multiple countries. In my opinion, this presents a runway for growth that the market is currently discrediting.

When factoring all this in, I believe the current fair value of this ASX 200 stock is a market capitalisation of $7 billion. Instead, the company is valued 25% less at $5.3 billion.

The post I see this ASX 200 stock as buying $1 coins for 75 cents! appeared first on The Motley Fool Australia.

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• Top ASX passive income shares to buy in January 2024
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Motley Fool contributor Mitchell Lawler 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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. 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 story of CSL Limited (ASX: CSL) shares over the past few years has been one of stagnation. Back in early 2020, it seemed as though buying CSL shares was a no-brainer.

After all, this was a company that pumped out double-digit share price gains every single year, or so it seemed. To illustrate, CSL was asking for under $100 in 2015. But by early 2020, the company had cracked the $300 mark. 

But ever since, CSL shares have been adhering to the very definition of sideways. Today, the company is going for $285.65 a share at the time of writing. That’s down more than 15% from its pre-COVID 2020 peak of around $340 a share.

Over the past 12 months, the ASX 200 healthcare giant has traded within a 52-week range of $228.65 and $314.28. See all of that for yourself below:

So will 2024 finally be the year that the CSL share price breaks out of its four-year prison and mints a fresh new all-time high? Or will this year be another meandering around the $300 price point?

Will CSL shares crack a new high in 2024?

Well, it seems that most ASX experts think that it’s only up from here for CSL shares.

Earlier this month, my Fool colleague James covered the views of several ASX brokers on the CSL share price.

Brokers Citi, UBS, Macquarie, Morgans and Goldman Sachs are all bullish on the healthcare company, and all currently have buy ratings on the stock. Citi has given CSL a 12-month share price target of $325.

Goldman Sachs is a little less optimistic, with its own target of $309. But UBS comes out on top with its target of $340.

Macquarie and Morgans have targets of $321 and $328.20 respectively. Here’s some of what Morgans had to say on its rating:

[We] continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses.

So while most of these share price targets wouldn’t see CSL crack a new all-time high, it would certainly see investors enjoy some welcome gains over the coming 12 months if accurate. But we’ll have to wait and see what happens.

The post Is 2024 the year that CSL shares finally hit a new high? appeared first on The Motley Fool Australia.

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• 2 Warren Buffett tips I’ll be following when buying ASX shares in 2024
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie 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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It’s looking like another slow day for the All Ordinaries Index (ASX: XAO and most ASX All Ords shares so far this Wednesday. At present, the All Ords has slipped by another 0.18%, leaving the index at just over 7,630 points. But let’s talk about the DroneShield Ltd (ASX: DRO) share price.

Droneshield shares are having another top day so far. At the time of writing, the drone detection equipment and software provider has put on a rosy 3.75% and is up to 42 cents a share. Earlier this morning, Droneshield shares climbed as high as 43 cents each.

Not only is that figure a new 52-week high for Droneshield, but it’s also the highest the company has traded at in seven years. Yep, you’d have to go back to early 2017 to find the last time Droneshield shares were asking 43 cents apiece. See for yourself below:

Today’s gains put the Droneshield share price up 8.4% over 2024 so far, as well as up a tidy 52.6% over the past 12 months. So what’s going on to elicit these seven-year highs for Droneshield shares today?

Why has the DroneShield share price just hit a 7-year high?

Well, it seems that yesterday’s big announcement has something to do with it. Tuesday saw Droneshield release an investor presentation to the markets. As we covered at the time, this saw Droneshield reveal a record $48 million in customer cash receipts and grants for the three months to 31 December 2023.

Over the entire 2023 year, the company was able to haul in $73.5 million, which was five times what it netted over 2022.

This helped Droneshield to deliver its first-ever profit before tax of $4 million. After this presentation was released, Droneshiled shares gained an impressive 8.1% during yesterday’s trading.

Today’s gains come on top of that. So this is clearly having a big impact on sentiment for the company, and probably explains Droneshield’s new multi-year high today.

But things could get even better for investors. Last month, my Fool colleague covered ASX broker Bell Potter’s views on the Droneshield share price.

Bell Potter gave the company a buy rating, alongside a 12-month share price target of 50 cents each. If realised, that would see Droneshield shares rise by another 22% or so from today’s prices. Here’s some of what the broker said:

The company is leveraged to the current trend of global rearmament and the addressable market for counter-drone technology is expected to exceed $7.62 billion USD over the next decade.

No doubt Droneshield investors will be delighted to hear it.

The post The DroneShield share price just clocked a 7-year high. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Why Data#3, Deep Yellow, DroneShield, and Imugene shares are racing higher today
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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 DroneShield. The Motley Fool Australia has recommended DroneShield. 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 S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Wednesday. In early afternoon trade, the benchmark index is down 0.2% to 7,401 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 19% to $3.04. Investors have been selling the gold miner’s shares after its quarterly update fell well short of expectations. And while management has reiterated its full year guidance, the market doesn’t appear to believe it will be able to achieve it after such a poor three months.

Pantoro Ltd (ASX: PNR)

The Pantoro share price is down 8% to 4.4 cents. Investors haven’t responded positively to the gold miner completing its review of its current mining strategy. That’s despite the review determining that significant improvements to its production and cost profile can be achieved through the implementation of a revised plan. This involves the development of the underground at Scotia earlier than originally forecast.

Energy Resources Of Australia Ltd (ASX: ERA)

The Energy Resources Of Australia share price is down 7% to 6.6 cents. This appears to have been driven by profit taking after the uranium developer’s shares exploded this week. They were up almost 70% this week prior to today’s session thanks to a booming uranium price. This has been driven by the world’s largest uranium miner warning that its production could be short of expectations in 2024 and 2025.

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is down 3.5% to $2.16. This morning, analysts at UBS downgraded the financial services company’s shares to a sell rating with a $2.05 price target. The broker believes that Insignia, formerly known as IOOF, has a very challenging outlook.

The post Why Evolution Mining, Pantoro, Energy Resources, and Insignia shares are dropping today appeared first on The Motley Fool Australia.

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

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One of the oldest ASX shares in my investment portfolio is National Australia Bank Ltd (ASX: NAB). As a big four ASX bank share, NAB is a business most of us would be familiar with. But what makes NAB stock worthy of a place in my own portfolio?

Let’s discuss why I think this ASX 200 bank share is a no-brainer dividend stock.

Why I own this ASX 200 bank in my share portfolio

When I first bought NAB stocks, this bank was the smallest of the big four, with Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) all boasting bigger market capitalisations than NAB.

Today, the situation has almost been reversed. CBA is still the king of the pack, with a market cap of almost $190 billion. But NAB is now the silver medallist, commanding a value of $95.9 billion. That handily beats both Westpac ($80.8 billion) and ANZ ($77.4 billion).

I think this change of fortune is a byproduct of NAB’s sturdy management team. Ross McEwan has headed NAB since late 2019 after coming over from the Royal Bank of Scotland. His tenure has been marked by prudent decision-making and competent stewardship.

Since buying NAB shares, I have enjoyed some capital growth. But, as is typical with ASX banks, most of my returns have come from dividends. Today, NAB is giving me a fully-franked yield of over 6% on my cost base. At the current share price of $30.83 (at the time of writing), investors are being offered a trailing dividend yield of 5.42%.

I’m very happy with NAB stock as a small part of my overall share portfolio. ASX banks enjoy some unique benefits in Australia, such as government guarantees on their deposits. This gives me a lot of confidence in the inherent stability of a business like NAB.

Plus, NAB stock is a valuable source of dividend income and franking credits every year. Given its superior management (in my view) in the baking sector, as well as its compelling levels of dividend income, I view NAB as a no-brainer dividend share.

But don’t just take my word for it.

ASX expert picks NAB stock

According to a recent report in The Australian, an ASX expert is also recommending NAB stock to ASX investors right now. The report covers the views of Morgan Stanley analyst Richard Wiles.

Wiles has just upgraded the NAB share price to ‘equalweight’ from ‘underweight’. Wiles reckons NAB is the “best way” to benefit from an expected soft landing for the Australian economy over the next 18 months or so.

This is due to a perceived “lower execution risk [and] better small-medium business enterprise banking performance.”

Wiles also argues that NAB stock is a better pick for its increased “scope for larger provision releases and [share] buybacks than Westpac”. That’s in comparison to CBA in particular, which Wiles argues is “already fully priced for a soft landing”.

The post Here’s why I think NAB is a no-brainer ASX dividend stock appeared first on The Motley Fool Australia.

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More reading

• What will my ASX 200 bank stocks be worth in 5 years?
• How much would I need to invest in ANZ shares for $7,000 a year in passive income?
• These ASX dividend stocks could be buys this month
• Here’s why I think the dividend forecast could send ANZ shares climbing
• Here’s how these top 3 performing ASX 200 bank shares stacked up in 2023

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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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ASX shares that grow their dividend payouts when possible are very attractive as they can give a degree of protection against headwinds.

There’s no guarantee a company will increase its dividend payment. It’s dependent on the business making — and hopefully growing — a profit. Ultimately, the board of directors decides on the level of a company’s dividend payment, taking balance sheet strength and the overall outlook into consideration.

Having said all of that, I believe the following three ASX shares are likely to grow their dividends this year.

APA Group (ASX: APA)

APA is one of the largest infrastructure businesses on the ASX. Its key asset is large natural gas pipelines around Australia, connecting supply to demand markets. It transports half of the country’s usage.

The energy company also has other assets – gas processing facilities, gas storage, renewable energy generation and electricity transmission.

APA has grown its dividend every year since 2004, so it has almost two decades of continuous payout growth for shareholders.

FY24 isn’t expected to see a big payout increase, but it is guided (by APA) to be bigger. APA pays for its distribution by its growing cash flow. Recent inflation has delivered a helpful boost to its revenue.

In FY24, the dividend is expected to increase slightly to 56 cents per security. This is a forward distribution yield of 6.8%.

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

Commonly known as Soul Patts, this ASX share owns a diversified portfolio of assets across telecommunications, property, financial services, resources, agriculture, credit, swimming schools and so on.

The business receives investment income from its asset portfolio (which hopefully grows its payouts each year to Soul Patts). The ASX share pays for its expenses from that investment cash flow. It then pays a majority of the net cash flow to investors as a growing dividend and re-invests the remaining cash.

Soul Patts hasn’t given any particular dividend guidance, but it has increased its annual ordinary dividend every year since 2000. Growing the dividend is one of the main aims of the management team, along with building the value of the portfolio.

I think this business is one of the most likely to grow its dividend in 2024.

Fortescue Ltd (ASX: FMG)

Fortescue is one of the largest mining shares on the ASX, with a focus on iron ore mining. It is also developing a significant green energy portfolio relating to green hydrogen, green ammonia and high-performance batteries.

The company’s shorter-term success is highly linked to what’s happening with the iron ore price. If the commodity price goes up, much of that extra revenue can translate into extra net profit because the mining costs don’t change much.

The iron ore price has risen noticeably over the last few months. It’s currently sitting at US$130 per tonne, unlocking the potential of a bigger Fortescue dividend in FY24 compared to FY23.

If we look at the Commsec forecast for the Fortescue annual dividend per share, it’s projected to rise by 8.6% to $1.90. This would be a grossed-up dividend yield of 10%.

The post 3 ASX shares I think are ready for dividend hikes in 2024 appeared first on The Motley Fool Australia.

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More reading

• Top broker Citi lifts its Fortescue share price forecast
• How do Pilbara Minerals, Fortescue and BHP shares compare on FY24 dividend forecasts?
• Which had the better year in 2023: Pilbara Minerals, BHP or Fortescue shares?
• ‘Strong commodity cycle’: 2 ASX 200 iron ore shares to buy now
• Is NOW the time to invest in ASX infrastructure shares?

Motley Fool contributor Tristan Harrison has positions in Fortescue 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 Apa 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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