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The Aeris Resources Ltd (ASX: AIS) share price looks very cheap to me, given the company’s promising future in copper. I’m going to tell you why it’s my number one ASX mining share pick at the moment.

It’s not exactly a tiny business. According to the ASX, it has a market capitalisation of $332 million. Aeris is best known as a copper miner which is one of the main reasons I like it.

Firstly, I’m going to explain why I’m optimistic about future demand for copper.

Positive outlook for the copper ASX mining share

Commodity prices typically move up and down through cycles as supply and demand change.

I think there is a very positive tailwind for copper as the world moves towards decarbonisation.

ASX mining giant Rio Tinto Limited (ASX: RIO) has described the many uses of copper:

We use copper in pots and pans, in the water pipes in our homes, and in the radiators in our cars. Copper also plays an essential role in computers, smartphones, electronics, appliances and construction.

Copper also promises to play an essential role in the transition to the low-carbon economy. Just one 1MW wind turbine, for example, uses three tonnes of copper. And electric vehicles have a copper intensity 3 to 4 times higher than traditional vehicles. As a result, global demand for copper is set to grow 1.5% to 2.5% per year, driven by electrification and increasing requirements for renewable energy.

While nothing is certain, there are predictions the copper price could rise in the future because of new demand. However, it’s becoming increasingly difficult to find easily accessible, large copper deposits.

Why I’m bullish on the Aeris Resources share price

It’s beneficial for any ASX mining share’s profitability if the commodity it sells goes up in price because, essentially, it gets more revenue for the same amount of production, improving profitability.

The company is working on expanding its copper production, with potential growth in Victoria with the Stockman project as well as the company’s plans in North Queensland.

Certainly, the ASX mining share’s profit could ramp up in FY24 and FY25 as more production comes online.

Current earnings projections on Commsec suggest the business could generate 11.2 cents of earnings per share (EPS) in FY24 and 14.5 cents of EPS in FY25. These estimates would put the Aeris Resources share price at just 4.5 times FY24’s estimated earnings and 3.5 times FY25’s estimated earnings.

That seems exceptionally cheap to me. Even if it were to rise 25% over the next 12 months, I still think it would seem cheap.

I think the business has a very good future and it’s priced at a very good valuation.

The post This is my no. 1 ASX mining share to buy right now appeared first on The Motley Fool Australia.

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More reading

• Why I think these ASX All Ords shares are extremely cheap right now
• Why Aeris, Brainchip, Pointsbet, and Syrah shares are falling today

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 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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I have a question for you.

Would you rather a certain $500,000, or a 50:50 shot at ending up with $700,000, but getting only $200,000 if things don’t work out?

I can tell you what the maths suggests: a 50:50 chance of either $700,000 or $200,000 gives an expected value of $450,000 (50% of 700k + 50% of 200k).

A certain $500,000 is, well, still $500,000. It’s the better bet, statistically speaking.

But why do I ask?

Because that very question – explicit and implicit – is being asked and answered by investors, every day.

Some have the conversation with their financial planner, assessing their tolerance for risk, and selecting an investment strategy accordingly.

Some think it through themselves, and the answer is shown in what psychologists call their ‘revealed preferences’ – how they actually invest.

And some answered a Twitter poll, posted by our US sister organisation. The question posed was ‘What matters more to you in stock investing?’.

The options:

1. Avoiding big losers
2. Finding big winners

And the results?

50:50.

Well, 49.9% and 50.1%, respectively… but I’ll call that a tie.

Now, Twitter polls aren’t scientific etc. And yet, that very poetic 50:50 split illustrates the issue beautifully.

See, when someone asks me, at a barbecue, on telly, or in an Uber ‘What stocks should I buy?’, the real answer is always ‘it depends’.

It depends on your answer to the above question.

And a whole lot of other things!

But – and let me dig a little deeper here – I’m not even sure those people answering the poll really, truly, know themselves, necessarily.

How many investors, in 2021, were in the ‘Finding big winners’ camp, but are now chastened by the big tech company share price falls of 2022 and 2023 and are now in the ‘Avoiding big losers’ group?

How many investors, who consider themselves in the ‘Avoiding big losers’ camp, will start swinging for the fences, once their brothers-in-law start getting rich on some speculative mining stocks?

Or who will play it safe for a while, only to realise they won’t have as much as they’d like in retirement, and start to try to play ‘catch up’, taking greater and greater risks – knowingly or otherwise?

And – and let me put my investment advisor’s hat on here for a sec – how many of both groups are making decisions without a good understanding of themselves, of the maths, and of the markets?

You’ve probably heard the Mike Tyson line that ‘everyone has a plan until they’re punched in the face’. That can be true of investing. It can be very easy to lose your nerve when markets go south.

See pain – emotional and otherwise – is hard to endure. And people will do what they can to avoid it. It’s where the phrase ‘to cut your losses’ comes from. The key thought? Just. Make. It. Stop.

Now, Tyson more than anyone, understands ‘no pain, no gain’. (Well, Evander Hollyfield probably understands it better, after Tyson bit off part of his ear, but I digress.)

So what should an investor do? Well, there is one good option, one okay option, and one bad option.

The good option is to have planned for down markets, to have steeled yourself for them, and to have prepared your portfolio for them. To own companies that are long term winners, even if you have to endure some paper losses along the way.

The okay option? If you can’t do the above, don’t do it at all. Because…

The bad option is investing during the good times, then selling, at a loss, in the bad times because you can’t take it any more… crystallising a permanent capital loss.

Because it’s easy for me to say ‘I reckon you should buy shares in Company X, because over the next decade, I think it’ll do really well’.

It’s harder for some people (perhaps those 50% who wanted to avoid big losers) to keep the faith, if that company’s shares fall 30%, 40% or more half a dozen times along the journey, even if I’m right in the end.

And if they’re going to sell at the first sign of trouble, they’re better not buying those shares at all, because they won’t be around to share in the eventual spoils.

I’ve often talked about Amazon’s extraordinary rise, both as a business, and as a stock. (I own shares, for the record).

Those shares, up 129,000% (unfortunately, I was late to this particular party!) since listing, have nonetheless fallen – hard – many, many times.

Worth holding, regardless? You bet.

But you had to do just that… hold.

Too many people didn’t. Couldn’t.

They get no criticism from me. But I wish they’d have known that about themselves, up front, rather than buying, then selling for a loss, and wondering what might have been.

See, I want everyone to invest. I’ve seen – from history and with my own eyes – just how remarkable long-term compounding can be.

But I don’t want people to invest unless and until they’ve made their peace with what to expect from the stock market.

If you haven’t, or can’t, I reckon you’re better off not investing at all.

But I hope you can find a way to make your peace with it.

To know what to expect. And to commit yourself to seeing it through anyway; accepting the lumps and bumps because the outcomes are worth the pain.

You don’t have to be Mike Tyson.

But you do have to make sure you’re still in the proverbial ring at the end of the bout.

You don’t have to love the pain.

You don’t have to enjoy falling share prices.

But you do have to commit to staying the course.

How you do that is up to you.

Maybe you make yourself a student of financial history, learning about both the historical volatility and the enormous historical returns, despite that volatility.

Maybe you use a financial planner as your financial coach.

Maybe you build your portfolio using one of our investment services (or one of our – reputable – competitors) where you can lean on the analysis and experience of others.

Maybe you simply decide it’s not for you.

All of those are valid options.

And each is better than jumping in and out of the market, locking in losses each time, and swearing off investing.

Because forewarned is, as they say, forearmed.

There is going to be volatility.

There are going to be losses.

There are going to be times when you just want the pain to stop.

And yet, history tells us that, over the long term, a suitably diversified portfolio has delivered extraordinary gains.

I can’t promise that’ll continue. No-one knows the future.

But I can tell you that I expect to be fully invested – and adding more to my portfolio – for decades and decades to come.

My suggestion?

Why not re-read the above. Work out what sort of investor you are, and what you need to do to make sure you can stay the course.

Because, financially, nothing substitutes for making sure you’re still there at the end.

Fool on!

The post Mike Tyson on investing appeared first on The Motley Fool Australia.

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More reading

• The market has soured 20% on the A2 Milk share price. Is it a turnaround buy?
• Is the Webjet share price a buy before it reports this week?
• Here are the 10 most shorted ASX shares
• Guess which ASX rare earths share has exploded 1300% in a year?
• Buy these ASX dividend shares for good yields and outsized returns: analysts

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Scott Phillips has positions in Amazon.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com and Uber Technologies. The Motley Fool Australia has recommended Amazon.com. 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 A2 Milk Company Ltd (ASX: A2M) share price has shed 20% in 2023 to date. But when businesses drop heavily, it’s worth considering whether they are a beaten-up opportunity.

Most investors will likely already know that A2 Milk’s two main product categories are infant formula and liquid milk. Though it does sell other types of products including ice cream and milk powder.

Why is the A2 Milk share price falling?

As we can see on the chart above, the last 12 months have been a volatile time for the company.

Much of its recent decline started in March and has continued. The fall in share price appears to have been triggered by another dairy company Synlait Milk Ltd (ASX: SM1). It is a major supplier to A2 Milk and, in turn, A2 Milk owns a significant parcel of Synlait shares.

Given their relationship, Synlait’s comments could also speak to (future) demand for A2 Milk products.

On 17 March 2023, Synlait said its two-year recovery plan was going to take three years. It spoke of a “reduction or delay in advanced nutrition demand” following “forecast changes by Synlait’s largest customer”.

At the time of that March update, Synlait was guiding that net profit after tax (NPAT) would be between $15 million to $25 million.

Synlait then gave another update near the end of April 2023. This reduced its guidance range to between a net loss of $5 million to a net profit of $5 million.

It said that was due to “further advanced nutrition demand reductions, mostly from one of Synlait’s customers, which impact consumer packaged infant formula volumes and base powder production”, as well as other factors.  

A2 Milk response

In an ASX announcement, A2 Milk responded to the comments, saying it was surprised by the extent of the reduction in Synlait’s guidance.

However, A2 Milk acknowledged in two Synlait forecasts, A2 Milk had also lowered its total forecast production volume needs. Specifically, these were for English-label consumer-packaged infant formula for March, April, May, and June 2023 production months. The volumes needed dropped around 1,650 metric tonnes in total. This equated to less than 5% of Synlait’s advanced nutritional sales volumes over the 12 months to 31 January 2023.

A2 Milk also said there has been “continued weakness” in the Australia-New Zealand daigou market. This is where private sellers supply directly to China. According to the company, it is “down 49% in the most recently reported quarter from Kantar”.

It also talked about significant cumulative delays in English-label consumer-packaging infant formula deliveries from Synlait to A2 Milk over an extended period. These were expected to be fulfilled in the fourth quarter of FY23, resulting in a “material amount” of inventory arriving within a relatively short period which “needs to be managed”.

A2 Milk also referred to the “ongoing refinement of the company’s English label distribution model”.

Taking into account all the factors A2 Milk has talked about, the infant formula company confirmed: “there is no material change to its FY23 outlook”. Certainly, one could argue this is supportive of the A2 Milk share price.

The company is expecting FY23 revenue to grow in the low-double digits, though English-label revenue is now expected to be down in the mid-single digits. This would be partially offset by “continued strong double-digit growth in Chinese label infant formula revenue”, the company said.

FY23 revenue growth is expected to be “at the low end of its previous expectations”, meaning around 10%. However, A2 Milk is still expecting an earnings before interest, tax, depreciation and amortisation (EBITDA) margin similar to FY22.

My view on the A2 Milk share price

It’s understandable the market may not have enjoyed hearing of potentially lower-than-expected volumes and revenue growth at the bottom of its guidance range.

But A2 Milk has a strong brand and it seems to be going well in China, a key market for the company’s success. It will be interesting to see how FY23 progresses for A2 Milk (and Synlait).

A2 Milk’s ongoing expansion in markets outside of Australia and New Zealand is promising in my opinion. Looking at profit projections on Commsec for the next few years, earnings per share (EPS) could rise each year to FY25.

The current A2 Milk share price is valued at 19 times FY25’s estimated earnings. Certainly, a growing profit would be a good tailwind for hopeful share price growth.

The post The market has soured 20% on the A2 Milk share price. Is it a turnaround buy? appeared first on The Motley Fool Australia.

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More reading

• The top 10 ASX shares held by millionaires
• What’s going wrong for ASX 200 share A2 Milk today?
• Why did the A2 Milk share price sink 7% in April?
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• Here’s what this top broker thinks of the A2 Milk share price after recent weakness

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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Webjet Limited (ASX: WEB) share price will face the spotlight this week as the ASX travel share reports its FY23 result.

Webjet has two main parts to its business – an online travel agency (OTA) in Australia and a global business-to-business (B2B) segment called WebBeds which “digitally provides hotel rooms to global partners”.

I think there are two main areas that investors should focus on to decide whether the business is a buy right now. They are how much profit it can make and whether the outlook is strong.

Is profitability improving?

As an online-only business, Webjet’s operating model can come with noticeable benefits compared to a ‘bricks and mortar’ travel agent.

In the company’s FY23 half-year result, its OTA segment achieved an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 41.3%. Webjet said it expects the future EBITDA margin to be more than 40% despite inflationary wage pressures.

Webjet also said that its total transaction value (TTV) to revenue margin is expected to improve from 8.4% to between 9% to 10% once international capacity returns to 2019 levels.

Qantas Airways Limited (ASX: QAN) announced just last week it is boosting its international network with extra flights, more aircraft, and new routes. This will see its international capacity double compared to pre-COVID levels. Perhaps this could be the margin booster that Webjet was referring to.

WebBeds reported an excellent EBITDA margin of 55.7% in HY23. It’s targeting an EBITDA margin of 62.5% so there’s room for further improvement.

It seems there’s scope for Webjet’s margins to improve for both of its main businesses, which I think is very promising for the Webjet share price.

The company is expected to generate growing profit over FY23, FY24, and FY25. The estimates on Commsec suggest it could make 15.1 cents of earnings per share (EPS) in FY23 and 26 cents of EPS in FY24. This would put the Webjet share price at 49 times FY23’s estimated earnings and 29 times FY24’s estimated earnings.

Outlook potential

When we look at two of Webjet’s ASX travel share peers, both talked about strong travel demand which also bodes well for Webjet.

In a recent trading update for Flight Centre Travel Group Ltd (ASX: FLT), it said travel demand was “holding up strongly”. It achieved a “post-COVID record TTV in March 2023 – 6% above March 2019”.

Corporate Travel Management Ltd (ASX: CTD) also said in its trading update with its FY23 half-year result that “travel demand remains strong with no signs of macroeconomic factors impacting the recovery”.

With travel demand looking good, that seems like a good tailwind for the Webjet share price going forwards.

The digital business model means its profit could be very scalable as it processes more travellers. The same digital infrastructure has already been built and can handle large volumes of customers.

Is the Webjet share price a buy?

As we can see on the graph above, the Webjet share price has climbed 20% since the start of the year. The market seems to have largely priced in the recovery of travel demand.

I’m not expecting the Webjet share price to rise another 20% over the rest of the year. But I think the underlying travel demand and rising profit margins can help the business continue to outperform the market over 2023 and beyond.

On top of that, the business could start paying dividends again in FY24 (according to Commsec projections), which can boost shareholder returns.

I’d be happy to buy Webjet shares on a three-year or five-year investment horizon.

The post Is the Webjet share price a buy before it reports this week? appeared first on The Motley Fool Australia.

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More reading

• 3 things ASX investors should watch this week
• Own Webjet shares? Here’s what to look for in next week’s full-year results

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 recommended Corporate Travel Management and Flight Centre Travel 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest rose slightly again to 11.9%. Short sellers appear convinced the market is expecting too much from the travel agent giant.
• Appen Ltd (ASX: APX) has jumped into the top ten with short interest of 9.8%. A recent abject trading update shocked the market and sent the artificial intelligence data services company’s shares crashing deep into the red. Short sellers don’t appear to believe the pain is over.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.8%, which is down week on week. This appears to be due to concerns about its profitability goals and regulatory challenges.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.8%, which is flat week on week. Valuation concerns seem to be behind this high level of shorting.
• Lake Resources N.L. (ASX: LKE) has 8.7% of its shares in the hands of short sellers, which is up strongly since last week. Short sellers aren’t giving up on this lithium developer despite a strong rebound by its shares.
• Pointsbet Holdings Ltd (ASX: PBH) has 8.6% of its shares held short, which is up slightly week on week. The sports betting company’s decision to sell its US business hasn’t gone down too well with investors.
• Jervois Global Ltd (ASX: JRV) has 8.5% of its shares held short, which is down slightly week on week again. This cobalt developer recently suspended the final construction of the Idaho Cobalt Operation due to weak prices of the battery material.
• Sayona Mining Ltd (ASX: SYA) has seen its short interest fall to 8%. Sayona Mining is another lithium share that short sellers are going after amid falling battery material prices.
• Select Harvests Ltd (ASX: SHV) has entered the top ten with 8% of its shares held short. Analysts are forecasting a very large loss from the almond producer in FY 2023.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.7%. Short sellers will have been disappointed to see this online retailer’s shares rocket higher last week following a positive trading update.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Could another lithium price boom be around the corner? Experts weigh in
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Flight Centre shares rise despite co-founder sales

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 Appen, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, PointsBet, and Temple & Webster 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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The S&P/ASX 200 Materials Index (XMJ) has gained 6% in a year, but this ASX rare earths share has rocketed far higher.

Shares in the aptly named Meteoric Resources NL (ASX: MEI) have surged 1364% from 1.4 cents at market close on 13 May 2022 to 20.5 cents at the time of writing.

So why has this ASX rare earths share had such a top run in the last year?

Why has this ASX rare earths share risen so high?

Meteoric shares have been storming ahead since mid-December when the company emerged from a trading halt to announce news of a major acquisition.

On 16 December, Meteoric advised it had entered a binding agreement to acquire the tier-one Clay Rare Earth Element (REE) project in Brazil. The project has 30 licenses.

The company advised drilling at six licences had shown “ultra-high-grade” Total Rare Earth Oxide (TREO) intersections from surface. Meteoric shares soared 50% on the day.

Overall, between market close on 7 December and 1 February, Meteoric shares exploded 700%.

On 20 December, Meteoric announced metallurgical tests confirm the Caldeira project is an “iconic adsorption clay REE deposit”.

Commenting on the news, executive chairman Dr Andrew Tunks said:

The initial testwork of the metallurgy at the Caldeira Project is very encouraging. The average recovery of the low temperature magnet REE, Pr + Nd, was 58% and the average recovery of the more valuable high temperature magnet REE, Tb +Dy, was 43%.

In late January, Meteoric presented a quarterly activities report. The company advised it had cash and liquid assets of about $3.05 million.

Meteoric is also exploring the Palm Springs Gold Project in Western Australia. In an announcement to the ASX on 23 February, the company provided assay results for priority targets at the project. Two holes intersected with a “significant amount of carbonaceous shale hosting multiple quartz veins and sulphides at the new Mt Bradley target”, the company said.

Meanwhile, on 1 May, Meteoric provided a maiden mineral resource for the Caldeira project, consisting of:

• 409 million tonnes at 2,626 parts per million (ppm) TREO with magnet REO grades of 631ppm including 24% TREO

Commenting on this news, Dr Tunks said:

What a beautiful set of numbers, this is indeed a world class, tier 1 project

Finally, on 8 May, Meteoric provided a drilling update on the Caldeira project. The company said eight of 11 new diamond holes revealed a “significant depth extension of the target clay zone beneath the historic auger holes”.

Share price snapshot

Meteoric Resources shares have leapt nearly 300% year to date and more than 71% in the last month.

This ASX rare earths share has a market capitalisation of about $361 million based on the last closing price.

The post Guess which ASX rare earths share has exploded 1300% in a year? appeared first on The Motley Fool Australia.

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More reading

• Why Macquarie, Meteoric Resources, Pointsbet, and Syrah shares are falling
• Explosive growth! 2 ASX mining shares rocketing around 1,000% in a year

Motley Fool contributor Monica O’Shea 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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Fortunately for income investors, there are plenty of ASX dividend shares to choose from on the Australian share market.

Two that could offer a combination of attractive yields and outsized capital gains are listed below. Here’s why brokers say they are buys:

Macquarie Group Ltd (ASX: MQG)

The first ASX dividend share that could be in the buy zone is investment bank Macquarie.

The team at Morgans is very positive on the bank and recently reiterated its buy recommendation. This is due to its current valuation and exposure to structural growth markets. It commented:

MQG is a quality franchise, exposed to structural growth areas, and the company performed exceptionally well in a more difficult FY23 environment. With >10% share price upside to our price target, we continue to maintain our ADD recommendation.

Morgans has an add rating and $201.80 price target on the company’s shares.

In respect to dividends, the broker is expecting partially franked dividends of $6.33 per share in FY 2023 and $6.75 per share in FY 2024. Based on the current Macquarie share price of $176.51, this will mean yields of 3.6% and 3.8%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be a buy is Super Retail. It is the retail group behind popular brands such as Macpac, Rebel, and Super Cheap Auto.

Over at Goldman Sachs, its analysts are particularly positive on the retailer. They believe its shares are great value at the current level, especially given its resilient businesses and impressive loyalty program. Goldman believes the latter is a big competitive advantage for the company. It explains:

We believe that the company’s positive trading update continues to display resilience that is built upon its competitive advantage of high loyalty (~10m active members accounting for >70% of sales) and this will be further bolstered in 2H23 as the company launches the Rebel loyalty program and continues to build personalisation capabilities.

Goldman is expecting this to support fully franked dividends per share of 74.1 cents in FY 2023 and then 62.6 cents in FY 2024. Based on the current Super Retail share price of $12.70, this will mean yields of 5.8% and 4.9%, respectively.

The broker has a buy rating and $14.90 price target on its shares.

The post Buy these ASX dividend shares for good yields and outsized returns: analysts 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 positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Super Retail 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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The news never stops for investors with ASX shares.

Here are the three biggest events that could impact your portfolio this week, according to eToro market analyst Josh Gilbert:

1. Australian retail sales figures

Last week Australia’s unemployment rate rose to 3.7%. This is bad news, especially for those losing their jobs, but could be a blessing in disguise for the country.

“That could well mean the central bank leaves rates on pause next month,” said Gilbert.

“Another focal point in the data puzzle impacting the Reserve Bank of Australia’s next move is handed down this week with monthly retail sales.”

After hiking interest rates 11 times in the space of a year, the RBA and investors will be watching carefully at the retail numbers coming out Friday.

“Consumers are becoming more cautious over their spending habits, something the RBA wants,” said Gilbert.

“As a result, this period will see more consumers ‘down trade’, which should benefit consumer staple names such as Coles Group Ltd (ASX: COL), with retail sales being driven by food sales.”

Possibly armed with a COVID-19 savings buffer, retail sales have remained “fairly resilient over the last 12 months”.

“But confidence is near record lows, and households are now really starting to feel the pinch.”

2. Webjet full-year results

Online travel agent Webjet Limited (ASX: WEB) is scheduled to release its latest numbers on Wednesday.

Gilbert noted that travel shares have been some of the best performers in the S&P/ASX 200 Index (ASX: XJO) this year.

“Investors believe the surge in travel demand won’t taper anytime soon,” he said.

“Earnings from travel compatriots globally in the last month have been stellar, with Expedia Group Inc (NASDAQ: EXPE), Booking Holdings Inc (NASDAQ: BKNG), Singapore Airlines Ltd (SGX: C6L) and Emirates all reporting better-than-expected results.”

So the pressure’s on Webjet to show some spectacular performance this week in line with its peers.

“In its half-yearly results, Webjet reported a massive 217% increase in revenue and a 557% jump in EBITDA, but importantly said that profitability should climb above pre-pandemic levels,” said Gilbert.

“Given that travel has come back in a big way, Webjet’s full-year results could spell more good news for shareholders this year, but its guidance may be in focus with headwinds such as labour costs, weakening consumers and recession risks.”

Webjet shares are up 20.2% year to date.

3. Nvidia quarterly results

Across the Pacific, many Australian investors will be interested in the latest figures coming out of NVIDIA Corporation (NASDAQ: NVDA).

The hype around artificial intelligence has put a rocket under Nvidia stocks in 2023, according to Gilbert.

“The investor excitement for this developing technology has sent Nvidia’s shares soaring by more than 100% this year, and so far, the tech giant wears the crown for the S&P 500 Index (SP: .INX)’s best-performing stock of 2023.”

Its first quarter results will be revealed Thursday morning Australian time.

“Investors will be hoping for more good news, but question marks now lie over its valuation with its rally this year,” Gilbert said.

“Nvidia is by far the market leader in developing graphics chips, and this is exactly what is needed to handle the complex calculations required to power AI applications, meaning investors believe Nvidia will reap the rewards from growing demand.”

AI might be boosting its fortunes, but it remains to be seen how much that can offset weak sales in the personal computer market.

“Nvidia said in Q4 it expects US$6.5 billion in revenue, which will be an important number to watch.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Own Webjet shares? Here’s what to look for in next week’s full-year results

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 Booking Holdings and Nvidia. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Booking Holdings and Nvidia. 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 Friday, the S&P/ASX 200 Index (ASX: XJO) finished a solid week in style. The benchmark index rose 0.6% to 7,279.5 points.

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

ASX 200 expected to edge lower

The Australian share market is expected to edge lower this morning following a poor finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points lower on Monday. In the United States, the Dow Jones was down 0.3%, the S&P 500 dropped 0.15%, and NASDAQ fell 0.25%.

Oil prices fall

It looks set to be a subdued start to the week for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell on Friday. According to Bloomberg, the WTI crude oil price was down 0.4% to US$71.55 a barrel and the Brent crude oil price dropped 0.4% to US$75.58 a barrel. Concerns about the US debt ceiling weighed on prices.

ASX 200 lithium shares on watch

There will be plenty of eyes on ASX 200 lithium shares such as Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) on Monday. That’s because lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) released its first-quarter update on Friday and revealed softer profits. This was due to high stockpiles across the battery supply chain hitting demand.

Gold price charges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a strong start to the week after the gold price charged higher on Friday night. According to CNBC, the spot gold price rose 1% to $1,979.9 per ounce. Renewed banking sector concerns boosted demand for the safe haven asset.

Silver Lake makes new offer

Fellow gold shares St Barbara Ltd (ASX: SBM) and Silver Lake Resources Ltd (ASX: SLR) will also be on watch after the latter improved its takeover offer for the former’s Leonora assets. Silver Lake has increased its offer to $722 million. This comprises 327.1 million shares (valued at $352 million) and a cash component of $370 million cash (previously $326 million). The suitor notes that this proposal represents a significant premium to the revised Genesis transaction.

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

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• Here are the 3 most heavily traded ASX 200 shares on Friday

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 you’re wanting to build an income portfolio but aren’t sure which ASX shares to buy, you could look at the exchange traded funds (ETFs) listed below instead.

These ETFs have been set up with the aim of providing investors with an above-average dividend yield each year. Here’s what income investors need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF that could be a buy for income investors is the BetaShares S&P 500 Yield Maximiser.

This clever ETF has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns. In order to deliver on this objective, BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising Wall Street’s famous S&P 500 Index.

This means that the ETF is able to squeeze out more income than you would receive by investing in the companies included in the fund individually. These companies include the likes of Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and United Health.

At the last count, the BetaShares S&P 500 Yield Maximiser was providing investors with a trailing 6.9% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF for income investors to consider buying is the Vanguard Australian Shares High Yield ETF.

This is a much simpler ETF and has been designed to provide investors with easy access to a diverse group of ASX shares that brokers are forecasting to provide larger than average dividend yields.

In order to prevent you having a portfolio filled with just miners or banks, Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company. This means you’ll always be holding a diverse collection of dividend shares with the Vanguard Australian Shares High Yield ETF.

Among the companies included in the fund are giants BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), as well as the rest of the big four banks.

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.3%.

The post Here are 2 ETFs for ASX income investors to buy for big dividends appeared first on The Motley Fool Australia.

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More reading

• 2 high-quality ASX ETFs for income and buy and hold investors
• How to invest $10,000 in ASX dividend shares in May
• Buy these ASX ETFs for big dividend income
• Buy these ASX ETFs for their big dividends this month
• These ASX dividend shares have big 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield 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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