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ASX 300 healthcare stock Imugene Limited (ASX: IMU) is catching the eye on Wednesday morning.

At the time of writing, the clinical stage immuno-oncology company’s shares are up 14% to 12 cents.

Why is ASX 300 healthcare stock Imugene rising?

Investors have been buying the company’s shares this morning after it provided an update on its Phase 1 MAST (Metastatic Advanced Solid Tumours) trial evaluating the safety and efficacy of novel cancer-killing virus CF33-hNIS (Vaxinia).

According to the release, as of 12 January, 38 patients have been dosed with Vaxinia during the continuing dose escalation phase. This comprises 19 patients dosed intratumourally and 19 patients dosed intravenously as either monotherapy or in combination with pembrolizumab (Keytruda).

The company notes that 31 patients were evaluable for efficacy. In the intratumourally cohorts, 7 of 15 (47%) injected lesions had a reduction in tumour burden, 3 lesions were completely eradicated, and 3 patients (21%) had an objective response. In the intravenously cohorts, 53% of patients achieved stable disease as their best response.

Management commentary

The CEO of Imugene, Leslie Chong, was pleased with the data. She said:

This latest data reinforces the early positive responses we’ve seen in gastrointestinal cancers and in particular for cholangiocarcinoma (bile duct cancer). It provides an excellent platform to investigate the impact of VAXINIA at higher dose levels as we also expand the trial to additional patients with hard-to-treat biliary tract cancers. It is a proud moment for us to be able to present these results at ASCO-GI, and promote the potential of VAXINIA and CF33 more broadly.

Despite today’s gain, the Imugene share price is still down by approximately 25% over the last 12 months.

The post Why is ASX 300 healthcare stock Imugene jumping 14% today? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares I think are ready for dividend hikes in 2024
• Why is the Evolution Mining share price crashing 16% today?
• 1 ASX dividend stock down 40% to buy right now
• ‘Short-term correction’: 2 ASX stocks I’d load up on if the market turns sour
• Copper and lithium: Broker says these ASX mining shares can double in value

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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If the ASX stock market went through a decline, there are some great ASX shares I’d love to buy for my portfolio. One expert thinks there’s a good chance the ASX stock market may go through a correction.

Dr Shane Oliver, the head of investment strategy and economics and chief economist at AMP Ltd (ASX: AMP), recently suggested that share prices went up “too far, too fast late last year leaving them vulnerable to a short-term correction.”

Between the October low to December high, US shares went up 15.8%, global shares climbed 14.4% and Australian shares went up 12.1%.

Oliver said:

…the extent of the rally has left shares overextended and vulnerable to a pullback as central banks may not start to cut rates as early as markets are assuming, the risk of recession remains high and the creeping widening in the Israel/Hamas conflict poses a risk to global growth and inflation.

While we expect shares to provide reasonable returns this year, they are likely to be more constrained and vulnerable than last year, and worries about delays in rate cuts, recession, and geopolitics could drive a deeper first-half pullback than seen last year.

If the ASX stock market were to go through a correction, these are two ASX stocks that would be high on my buy list:

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical is one of the most promising fund managers on the ASX. It offers managed funds and superannuation. It’s focused on providing investment products that align with investors’ ethics of which sorts of businesses they want to own a part of.

The superannuation division is benefiting from regular contributions due to the superannuation guarantee payments, as well as additional contributions by people attracted to the tax-effective nature of superannuation.

Australian Ethical earns management fees from its funds under management (FUM), so growth of FUM helps grow profit.

Fund managers are very scalable businesses – it doesn’t cost a fund manager much more to manage another $100 million of FUM, leading to stronger profit margins.

In the three months to September 2023, it experienced $114 million of net inflows. Positive investment performance of the funds adds to FUM growth.

The Australian Ethical share price normally falls more than the market when the ASX stock market falls because a bear market harms the FUM. If there’s another hefty fall for the Australian Ethical share price, I think it’d make a good buy.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX retail share that owns a number of retail names including Smiggle, Peter Alexander, Just Jeans, Jay Jays and Dotti. It also owns stakes in Myer Holdings Ltd (ASX: MYR) and Breville Group Ltd (ASX: BRG).

When there’s an economic downturn, it’s understandable that households may decide to spend less at some shops. It may only require the market to think a retailer is going to go through difficulties for the Premier Investments share price to suffer.

I think it’s a fairly common theme for ASX shares to outperform over time when they have international growth potential – Smiggle, Peter Alexander and Breville all have international growth ambitions.

Over time, I think the company can significantly increase its global presence, and possibly expand its portfolio of brands. Buying during market corrections could help my portfolio deliver long-term outperformance.

The post ‘Short-term correction’: 2 ASX stocks I’d load up on if the market turns sour appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 of the best ASX retail shares I can find right now, no soft landing required
• Why Opthea, Pantoro, Premier Investments, and Wildcat shares are falling
• 5 things to watch on the ASX 200 on Tuesday
• 6 shares that could be destined for the ASX 200 in 2024

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 positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment and Premier Investments. 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 wanting some exposure to the mining sector in 2024, then it could be worth considering the two ASX mining shares named below.

These shares have recently been named as top picks by analysts at Bell Potter for investors with a high risk tolerance.

Here’s why the broker is feeling bullish about them:

Aeris Resources Ltd (ASX: AIS)

Copper miner Aeris Resources has been given the thumbs up by Bell Potter.

Its analysts are positive on the company due to its solid balance sheet and improving copper grades from the Tritton Copper Operation. It said:

AIS represents a copper dominant mining exposure whose primary assets are the Tritton Copper Operations in NSW, Cracow Gold Mine in QLD, Mt Colin Copper Mine in QLD. Its near-term outlook is highly leveraged to rising copper grades at the Tritton copper mine, where new high grade ore sources are growing production in FY24. […] Recent refinancings have de-risked the balance sheet and we are of the view that AIS is well positioned to deliver on its production targets.

Bell Potter has a buy rating and 23 cents price target on its shares. This implies 100% upside for investors from current levels.

Liontown Resources Ltd (ASX: LTR)

Another ASX mining share that has been given the seal of approval by analysts at Bell Potter is Liontown Resources.

It is the lithium developer behind the Kathleen Valley Lithium Project in Western Australia.

Bell Potter thinks very highly about the project and sees Liontown as a great share to be holding when sentiment in the lithium industry shifts. It explains:

LTR owns the Kathleen Valley (KV) lithium project in Western Australia. KV is in development and set to commence production in mid-2024, supplying into Ford, Tesla and LG Energy Solution offtake agreements. The company is funded to complete KV and has a strong cash buffer over and above remaining development and working capital requirements. We expect lithium market sentiment to improve into 2024 as EV supply chain inventories normalise. KV is highly strategic in terms of being large scale and located in a stable mining jurisdiction.

The broker has a speculative buy and $2.75 price target on its shares. This suggests that its shares could double in value over the next 12 months.

The post Copper and lithium: Broker says these ASX mining shares can double in value appeared first on The Motley Fool Australia.

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More reading

• Which had the better year in 2023: Core Lithium, Liontown or Pilbara Minerals shares?
• These are the 10 most shorted ASX shares
• Up 25% in 2023, here’s what went right and what went wrong for the Liontown share price
• Have lithium prices finally bottomed?
• These are the 10 most shorted ASX shares

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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It has been a stunning week for ASX uranium stock Energy Resources Of Australia Ltd (ASX: ERA).

Since the start of the week, the uranium developer’s shares have risen a whopping 66%.

The gains have been so strong that the company received a speeding ticket from the Australian stock exchange on Tuesday.

The stock exchange operator said:

Is ERA aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?

Why is this ASX uranium stock rocketing?

The company responded to the speeding ticket, noting that the uranium spot price has risen materially this month. It said:

ERA notes there has been a significant appreciation of the global U3O8 (Uranium) spot price over the past week with the most recent price reported at $105.75 USD per pound.

This has been driven largely by news that the world’s biggest uranium miner, Kazatomprom, is expecting to fall short of its production targets over the next two years.

This poses a big risk to uranium supply at a time when demand for the nuclear fuel is rebounding strongly due to the decarbonisation of the planet.

What is Energy Resources Of Australia?

Energy Resources of Australia operated the Ranger Mine, Australia’s longest continuous uranium mine, in the Northern Territory until it closed in 2021.

The ASX uranium stock is now focused on the sustainable rehabilitation of former mine assets.

Though, this will come at a significant cost. Last year, the company revealed that it expects the total rehabilitation costs for the Ranger Mine to materially exceed the previous estimated range of $1.6 billion to $2.2 billion.

But with uranium prices tipped to boom for decades to come, judging by recent gains, the market appears confident that it will still deliver a good return for investors.

The post Guess which ASX uranium stock is up ~70% this week appeared first on The Motley Fool Australia.

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More reading

• Buy this dirt cheap ASX 200 share with huge upside potential
• Should you buy Rio Tinto shares following the miner’s update?
• Could I turn $10,000 into $1 million by investing in ASX shares similar to Warren Buffett’s favourite stocks?
• Brokers say these high-yield ASX dividend shares are buys
• 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.

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History shows that if you can identify oversold ASX 200 shares and buy them while they are cheap, then you could generate very big returns.

The tricky part is knowing what has been oversold and what has justifiably been sold off.

The good news is that Goldman Sachs has been doing the hard work for you. In fact, its analysts think they have found a dirt cheap ASX 200 share with huge upside potential and bucketloads of long-term growth.

The share in question is language testing and student placement (SP) company, IDP Education Ltd (ASX: IEL).

What is Goldman saying about this ASX 200 share?

Goldman notes that the IDP Education share price has fallen heavily amid concerns over the state of the student placement market following visa changes. However, it believes that IDP Education will be less exposed to these changes. It explains:

Destination market regulatory changes to tighten visa conditions. We now expect the student placement market to decline in aggregate in FY25E however we note a number of mitigating factors within, most importantly being IEL’s focus on high quality, genuine students (not the target of govt. changes).

We introduce a bottom-up SP build demonstrating share gains can drive growth across FY24-26E even in a softer overall market environment, as we believe much of the weakness will be seen in lower quality students and institutions to which IEL has less exposure.

Strong growth ahead

In light of the above, the broker continues to forecast an earnings per share compound annual growth rate (CAGR) of 17% through to FY 2026.

And with the ASX 200 share trading at a significant discount to historical multiples, it feels a compelling buying opportunity has opened up for investors.

Goldman has reiterated its buy rating with a trimmed price target of $27.60. This implies potential upside of 32% for investors over the next 12 months. It concludes:

IEL trades at 28x our 12mf EPS estimate vs 45x historically and against a +17% FY23-26E EPS CAGR. Reiterate Buy into a strong 1H result where we sit +10% ahead of VA Consensus EBIT based on a strong start to FY24E as seen in the available visa data. News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs).

The post Buy this dirt cheap ASX 200 share with huge upside potential appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• These ASX 200 growth shares can rise ~30% to 55%
• These are the 10 most shorted ASX shares
• ‘Lowest valuation since listing’: ASX 200 stock for ‘excellent business’ now an irresistible bargain
• These 3 ASX 200 shares could rise 20% to 40%

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 Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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We’d all like to use ASX shares to turn $10,000 into $1 million. But most of us would struggle to pull off a gain of that magnitude. At least in any reasonable sort of time frame. So who better to turn to in this endeavour than the legendary Warren Buffett?

Hailed as one of, if not the, greatest investors of all time, Warren Buffett knows a thing or two about building wealth. After all, this is a man who is today worth more than US$100 billion.

He pulled this extraordinary feat off by harnessing the power of compound interest over decades of investing in top stocks through his company Berkshire Hathaway. Some estimates put Buffett’s overall return on investment at over 20% per annum.

While that kind of return is sadly out of the reach of most of us, especially over multiple decades, there is a way you can potentially invest in some Buffett-like stocks and bag some attractive rates of return.

It’s by using the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

Last week, we discussed Warren Buffett’s investing style and how it helps him find companies that can deliver top returns. One of the central tenets of this style is finding businesses that display what’s known as an economic moat.

This moat is an invaluable asset a company can possess which helps protect its profits from competitors. This could be a strong and trusted brand, a low-cost advantage, or offering a product or service that customers have no choice but to pay for.

Looking for Buffett stocks on the ASX

Looking at Buffett’s stock picks within Berkshire Hathaway’s investment portfolio, it becomes obvious that most of his top holdings have some kind of powerful moat. Coca-Cola, American Express, Kraft Heinz and Apple own some of the best brands in the world.

Amazon is one of the cheapest places to shop in America (and increasingly in Australia). And it’s pretty hard to find a debit card that isn’t operated by Mastercard or Visa these days.

The VanEck Wide Moat exchange-traded fund (ETF) specialises in only investing in companies that indicate the presence of one or more of these moats. That’s why you’ll find names like Disney, Kellanova (Kellogg’s), Microsoft, Nike, Pfizer and Campbell Soup in its current portfolio. Not to mention Buffett’s holdings like Bank of America, Amazon and Berkshire Hathaway itself.

Now investing in this ETF doesn’t guarantee a Buffett-like return (or any return for that matter). However, this ETF has managed to return an average of 15.52% per annum since its ASX inception in 2015.

If we assume this stellar rate of return can continue indefinitely (which we shouldn’t), it would take around 30 years to turn a $10,000 investment into $1 million. That may not be enough to get rich overnight, but it’s certainly enough to fund an early retirement. Especially if you can invest a little extra along the way.

Remember, it’s taken Buffett more than 90 years to get where he is today.

The post Could I turn $10,000 into $1 million by investing in ASX shares similar to Warren Buffett’s favourite stocks? appeared first on The Motley Fool Australia.

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More reading

• Building a rock-solid base for my stock portfolio with these 3 ASX ETFs
• Which global ASX ETFs were the top performers for Aussie investors in 2023?
• 2 no-brainer ASX ETFs for investors to buy and hold
• Top ASX shares for beginner investors to buy in 2024
• 3 ASX ETFs to buy in 2024 and hold forever

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Amazon, American Express, Apple, Berkshire Hathaway, Coca-Cola, Kraft Heinz, Mastercard, Microsoft, Nike, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Bank of America, Berkshire Hathaway, Mastercard, Microsoft, Nike, Pfizer, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, Mastercard, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are plenty of ASX dividend shares to choose from on the Australian share market.

Two that have been named as buys and tipped to pay above-average dividend yields are listed below.

Here’s why brokers are feeling bullish on them:

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter sees a lot of value in this property company’s shares. They currently have a buy rating and 75 cents price target on its shares.

The broker believes its shares are good value based on its double-digit, three-year earnings per share growth outlook. It said:

Despite its sector low valuation metrics, GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth. With 17.5% portfolio vacancy the P&L rental risk is already on foot with limited near-term expiries which suggests en masse that there could be more earnings upside than downside risk.

As for dividends, Bell Potter is expecting the company to be in a position to pay dividends per share of 5 cents in FY 2024 and FY 2025. Based on the current GDI Property share price of 65 cents, this implies yields of 7.7% in both years.

Suncorp Group Ltd (ASX: SUN)

Over at Goldman Sachs, its analysts believe that insurance and banking giant Suncorp could be an ASX dividend share to buy. The broker has a buy rating and $15.25 price target on its shares.

It likes the company due to the tailwinds that are being experienced in the general insurance market. It explains:

We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.

In respect to income, the broker is forecasting fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $13.76, this will mean yields of 5.5% and 5.8%, respectively.

The post Brokers say these high-yield ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX dividend shares are buys
• Buy Rio Tinto and these ASX dividend shares
• 5 things to watch on the ASX 200 on Thursday
• Why 5E Advanced Materials, Endeavour, Strike Energy, and Suncorp shares are rising today
• Buy these ASX dividend shares for 5%+ yields

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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) had a day to forget. The benchmark index sank 1.1% to 7,414.8 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for another difficult session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In late trade on Wall Street, the Dow Jones is down 0.95%, the S&P 500 has fallen 0.65%, and the Nasdaq is 0.55% lower.

Oil prices drop

It could be a subdued session for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.75% to US$72.16 a barrel and the Brent crude oil price is down 0.1% to US$78.05 a barrel. A stronger US dollar offset Middle East tensions.

IDP Education shares named as a buy

Goldman Sachs thinks investors should be snapping up IDP Education Ltd (ASX: IEL) shares while they are down. According to the note, the broker has reiterated its buy rating on the language testing and student placement company’s shares with a trimmed price target of $27.60. It said: “News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings.”

Gold price falls

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price fell overnight. According to CNBC, the spot gold price is down 1% to US$2,031.3 an ounce. A stronger US dollar and hawkish US Fed comments put pressure on the gold price.

Buy Rio Tinto shares

Mining giant Rio Tinto Ltd (ASX: RIO) could be in the buy zone according to Goldman Sachs. In response to its quarterly update, the broker has retained its buy rating with a slightly trimmed price target of $140.50. It said: “RIO reported a broadly in-line 4Q23 result with iron ore shipments of 86.3Mt, +3% QoQ (vs. GSe 86.9Mt), taking full year Pilbara shipments to 332Mt vs guidance toward the top end of the 320-335Mt range.”

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX 200 energy shares being hit so hard on Tuesday?
• Buying ASX 200 shares in 2024? Here’s why this $106 billion proposed US tax break matters
• These ASX 200 growth shares can rise ~30% to 55%
• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Trying to work out what any share might be worth in five years’ time is a near-impossible task. And that’s no less so with ASX 200 bank stocks.

To illustrate, who would have thought back in early 2019 that Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) shares would be up 54.31% and 23.46% respectively by early 2024?

Probably the same number of people who thought Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) shares were destined to lose 11.78% and 0.46% respectively. That is to say, hardly anyone.

So it’s an equally hard task to determine what these same big four banks might be worth in early 2029. I for one am not putting money on anything (although I do have money in one ASX 200 bank stock).

However, that doesn’t mean we can’t look at what some ASX experts are predicting will happen to the big four banks over the coming years.

ASX expert rates bank shares

One analyst who is bullish is Morgan Stanley analyst Richard Wiles. Speaking to The Australian, Wiles has recently come out and argued that forecasts of future interest rate cuts have given the banks’ stock prices a collective boost, which could last for years:

Since the start of the latest RBA tightening cycle, the average major bank P/E multiple de-rated by an average of about 3.5 PE points – from about 15.7x in April 2022 to about 12.2 times in March 2023.

But the average multiple has subsequently rebounded by more than 3 times and the banks now trade at about 15.3 times, which is above both the pre-COVID 10-yr average of about 12.2 times and post-COVID three-year average of about 14.4 times.

Wiles concluded by making this prediction:

We think the recent re-rating largely reflects the prospect of multiple rate cuts in 2024 and a more optimistic outlook for the Australian economy and banks’ earnings over the next two years.

But Wiles isn’t the only expert who sees a prosperous future for ASX bank stocks.

According to a recent article from Reuters, a report from the Boston Consulting Group has found that global bank stocks “could boost their valuations by a combined $7 trillion in the next five years”.

However, this is conditional on banks taking collective action to “pursue growth and improved price-to-book ratios despite obstacles”.

Those obstacles, the report found, revolve around banks’ profitability levels. The report concluded that “The largest driver of pessimism about the banking sector has been the significant drop in profitability”.

Even so, it’s still a positive development for bank stocks, including our own ASX big four.

It’s devilishly difficult to even ballpark where our ASX bank stocks will be by 2029. But these experts seem to think that things are looking up.

The post What will my ASX 200 bank stocks be worth in 5 years? appeared first on The Motley Fool Australia.

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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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Would you like to generate some investment income this year?

ASX dividend shares are the obvious place to go but, as tempting as they are, investors need to be wary of high dividend yields.

Stocks that pay out 12%, 15% and 20% yields could well be in that position because its share price has fallen off a cliff.

The other worry is that such a high payout is a one-off and is not sustainable beyond a year or two.

Fortunately, the experts at the IML Equity Income Fund revealed a couple of income gems that they possess that are looking ripe for a great 2024.

They both hover around the 7% mark for yield, which is certainly respectable, but importantly the businesses have excellent prospects.

So if you have $20,000 to invest, you could consider going halves in each of these:

A foot in each revival 

With interest rates pretty close to the peak and maybe even heading this year, both real estate and retail could soon hit the boom part of its cycle.

As such, last month investors flocked to convenience retail real estate investment trust (REIT) Charter Hall Retail REIT (ASX: CQR).

“Charter Hall Retail REIT was up 18.9% on the back of lower bond yields and reconfirmation of its earnings and distribution guidance,” an IML memo to clients read.

“Also, $225 million of asset sales at book value reduced its gearing and highlighted the continued solid demand for high-quality, well located neighbourhood shopping assets.”

Charter Hall Retail is paying an unfranked 7% dividend yield.

The IML team is continuing to back the REIT for a big 2024. 

“We continue to like CQR given its large trading discount to net tangible assets, majority CPI-linked rents and attractive dividend yield.”

The ASX dividend shares that could be past the worst

The Australian casino industry has been under fire the past couple of years, and New Zealand company Skycity Entertainment Group Ltd (ASX: SKC) is no exception.

The shares dived 5.6% last month, which the IML team put down to an announcement of “modestly lower” 2024 earnings guidance and the departure of its chief executive.

“It also agreed to settle its Auckland carpark dispute on terms we believe are incrementally favourable.”

In Australia, the business is facing regulatory scrutiny.

“The Austrac settlement and Adelaide casino review remains the major overhang.”

Despite all these headwinds, the IML analysts reckon a 22.2% drop in share price since the start of September adequately reflects future adversity.

“We expect [the Adelaide review] to be completed within six months and any penalty to be more than accounted for in the share price.”

As a foreign company, the dividends from Skycity are also unfranked, but the yield does amount to a handsome 6.65% currently.

The post Here’s how I’d invest $20k in ASX shares to target a 7% dividend yield in 2024 appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX 200 dividend shares with big yields
• Analysts say these ASX dividend shares with 4%+ yields are buys
• Broker names 2 top ASX dividend stocks to buy now
• ASX 200 shares with ex-dividend dates next week

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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