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Thankfully for income investors, there are plenty of dividend stocks to choose from on the ASX 200 index.

But two that could be standout picks for investors right now are listed below. Here’s why analysts rate these big-name dividend stocks as buys:

Telstra Group Ltd (ASX: TLS)

Analysts at Morgans believe that Telstra is an ASX 200 dividend stock to buy right now. The broker has an add rating and $4.70 price target on the telco giant’s shares.

Morgans believes that the company’s outlook is the best it has been in years. It highlights that “[t]elco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised.” In addition, it notes that there is “the potential for InfraCo value release following the legal restructure.”

All in all, the broker is expecting this to allow Telstra to pay 17 cents per share fully franked dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.37, this will mean yields of 3.9% for income investors.

Westpac Banking Corp (ASX: WBC)

Over at Goldman Sachs, its analysts say that Westpac is an ASX 200 dividend stock to buy right now. Its analysts currently have the banking giant on their conviction list with a buy rating and $24.67 price target.

Although the broker was disappointed to see Westpac walk away from its cost cutting targets recently, its analysts still expect Australia’s oldest bank to deliver broadly flat costs in the coming years. Which will still be a good outcome in the current environment.

It is for this reason that Goldman expects to “see WBC outperform peers in this relatively difficult inflationary environment.”

Overall, the broker expects this to lead to fully franked dividends of 140 cents per share in both FY 2023 and FY 2024. Based on the current Westpac share price of $21.23, this equates to yields of 6.6% in both years.

The post Buy Westpac and this ASX 200 dividend stock for income: analysts appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy Westpac shares now: broker
• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• Better buy: Telstra shares or TPG?
• No savings at 40? Here’s my 3-step plan for $1,500 of passive income a month
• 2 ASX 200 blue chip shares that brokers love

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Telstra Group. The Motley Fool Australia has recommended Westpac Banking. 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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Investing in ASX shares is a great pathway we can all take to building wealth. Shares have shown a consistent ability to generate returns that beat almost all other asset classes over long periods of time. But for a new ASX investor, investing in shares can be more than a little daunting.

There are many mistakes an investor can make, and too often, we have to make those mistakes in order to learn from them. As a one-time beginner investor myself, I have made plenty of those. So today, let’s discuss five things I wish I had learnt before I bought my first stock, in the hope that any new ASX investors out there can avoid following in my footsteps.

5 things I wish I’d known as a new ASX investor

1. You don’t have to start with individual shares

If you tell an older investor that you’re just starting out, you might be subject to some recommendations on which types of shares to buy. Perhaps blue chips like BHP Group (ASX: BHP) or Commonwealth Bank of Australia (ASX: CBA) might come up. Or else Telstra Group Ltd (ASX: TLS) or Woolworths Group Ltd (ASX: WOW).

Choosing which investment to start out with can be intimidating. So I wish I had known that you could avoid all of this hassle by just choosing an index fund to start out with. Index funds work by holding the top 200 or 300 shares of the entire ASX.

Thus, you can get a slice of everything without having to choose anything. Some of the ASX’s most popular index funds include the Vanguard Australian Shares Index ETF (ASX: VAS) and the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

I didn’t start out as a new ASX investor with a fund like this, but I wish I had.

2. Too much of a good thing

Chances are it won’t take long for a new ASX investor to hear about the benefits of diversification or ‘not putting all of your eggs in one basket’. Yes, diversification is a good thing. It can help reduce your portfolio’s risk levels by ensuring that you don’t have all of your cash tied up in just one or two corners of the economy.

But I made the mistake of going too diversified when I first started investing. I needed to have shares from every sector and from every country. This could be described as ‘diworsification’.

If you do this, it will probably lead to mediocre returns and a lot of hassle. So diversify your portfolio by all means, but don’t try and cover every base out there.

3. ASX investors: Never spend your dividends

Compound interest is a marvellous thing to behold – Einstein even allegedly called it the eighth wonder of the world. But the first rule of compound interest is never to interrupt it unnecessarily. Here on the ASX, a good portion of the returns from shares come from dividend payments. Too often, I have seen investors take their dividends and ‘treat themselves’ rather than reinvest them into buying more shares.

You should never think of dividend cash as spending money. It is there to work for you in perpetuity if you let it.

4. Don’t chase fads

This is one of the worst mistakes I see new investors make, and I was guilty of it, too, once upon a time. One of the first things we should all learn about the share market is that there is always a fad – one sector or subsector of the market that everything thinks will be the next hot thing. It could be AI shares, cannabis shares, lithium or copper shares.

You’ll see stories of people making fortunes in these kinds of companies, and you will see share prices going to the moon. But like all bubbles, these fads eventually pop, and the money moves to the next hot thing. Don’t get caught up in one of these fads. It could (and most likely will) be a painful experience. Money is made on the share market over the long term, not overnight.

5. Keep it simple

Often the best companies are those hiding in plain sight. I always ask myself a few simple questions when looking at a company. Is this company loved by its customers? Is it almost certainly going to be bigger, better and more profitable in 10 years’ time? Often it’s these kinds of questions that determine what kind of investment it might be, rather than a company’s price-to-book (P/B) ratio or MACD chart.

Fundamental analysis has its place, but do also ask yourselves which company’s goods or services you use on a daily or weekly basis. That’s as good a place to start on your investing journey as you can get.

The post New ASX investor? 5 things I wish I’d known before I bought my first stock appeared first on The Motley Fool Australia.

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More reading

• Could buying the Vanguard Australian Shares Index ETF (VAS) at under $90 help me retire early?
• Millionaire magnet: Why are wealthy investors pouncing on the Vanguard Australian Shares Index ETF (VAS)?
• The top 10 ASX shares held by millionaires
• Why is the Vanguard Australian Shares Index ETF (VAS) still below its pre-COVID high?
• Better investment: Vanguard Australian Shares ETF (VAS) or a term deposit?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. 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 Telstra 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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It was another busy week for Australia’s top brokers. This led to the release of a large number of broker notes.

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

Beach Energy Ltd (ASX: BPT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this energy producer’s shares with a trimmed price target of $2.05. Although the broker was disappointed with delays to Waitsia Stage 2, which it sees as a key component to the company’s near-term production growth, it remains positive. This is due to Beach Energy’s positive outlook thanks to its fully funded production growth plans and its rolling-off peak capex. The broker also has a positive view on the Australian east coast gas and LNG markets. The Beach Energy share price ended the week at $1.37.

Technology One Ltd (ASX: TNE)

Another note out of Bell Potter reveals that its analysts have upgraded this enterprise technology company’s shares to a buy rating with an improved price target of $17.00. Bell Potter believes Technology One is well-placed to deliver a strong half-year result next week and expects more of the same in the coming years. In fact, the broker suspects that the company is growing quicker than expected and may achieve its medium term guidance a year earlier than planned. The Technology One share price was fetching $15.25 on Friday.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have retained their buy rating on this cloud accounting platform provider’s shares with an improved price target of $130.00. Goldman Sachs was pleased with Xero’s performance in FY 2023 and believes that there will be more strong growth in FY 2024. In addition, the broker feels that Xero’s expense ratio target of 75% next year is achievable based on its second half performance. The Xero share price was trading at $108.00 on Friday.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Broker urges investors to buy the dip in the Beach Energy share price for a 50% return
• Xero share price can still rise almost 30% from here: Goldman Sachs

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Technology One. 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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Lithium prices have floundered since hitting their peaks in November 2022, falling about 70% over the past six months.

And they’ve taken ASX lithium shares with them.

The six-month chart below shows the share price falls of producers Pilbara Minerals Ltd (ASX: PLS), Allkem Ltd (ASX: AKE), Mineral Resources Ltd (ASX: MIN), and Core Lithium Ltd (ASX: CXO).

But a number of experts are tipping a rebound of 40% or more for lithium prices by the end of the year.

Let’s investigate why.

Are we on the cusp of the next lithium boom?

According to the Australian Financial Review (AFR), that’s the opinion of top broker Citigroup.

Chinese sales of electric vehicles (EVs) have moved up every month in 2023, following the end of COVID-19 restrictions in late 2022.

Citi says downstream producers are starting to restock, and policy support in China will further boost its EV sales.

China is the world’s largest EV manufacturer and the second-largest importer of lithium behind South Korea.

The price of lithium carbonate, which is used to manufacture EV batteries, fell from a peak of about US$85,000 in November 2022 to a 19-month low of about US$22,000 per tonne in April.

It has since rebounded to about US$28,000 per tonne this week.

Citi analyst Shreyas Madabushi said:

We believe the battery supply chain destocking cycle in China is in its final phase and active restocking in the second half of 2023 is likely to support prices at higher levels.

Market sentiment for lithium stocks has also improved on the back of the Albemarle bid for Liontown Resources Ltd (ASX: LTR) and the recently announced $15.7 billion merger between Allkem and Livent.

Chile’s decision to nationalise its industry and take a controlling stake in all new producers has also changed global supply chain dynamics.

The country is the world’s second-largest producer of lithium, and government intervention may lead to short-term uncertainty, during which time battery and EV manufacturers may go elsewhere for supply.

How high will the lithium price go in 2023?

Citi reckons the lithium price could go to between US$35,000 per tonne and US$40,000 per tonne by the end of 2023.

Morgan Stanley is also bullish on the short-term lithium price outlook. The broker said last week that the market had reached a “turning point”.

According to The West Australian, Minerals Resources CEO Chris Ellison also reckons there’s “no question that [lithium] prices have bottomed out”.

Ellison is expecting lithium prices to move higher over the next few months.

A few other brokers are predicting a rebound in lithium prices in 2023 and into 2024.

Macquarie thinks the price could go as high as US$57,500, and UBS is tipping US$54,750.

The post Could another lithium price boom be around the corner? Experts weigh in appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares to buy according to brokers
• If I invest $10,000 in Pilbara Minerals shares, how much passive income will I receive?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Own Liontown shares? Here’s when the company expects to kick start dividends

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Allkem, Core Lithium, and Macquarie Group. 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 Macquarie 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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Some experts say the era of reliable capital growth is over — at least for a period while interest rates and inflation remain high — and ASX 200 shares investors should focus on dividends for their returns.

Will Woodside Energy Group Ltd (ASX: WDS) shares deliver the strong and reliable passive income that income investors need in this new investment climate?

Let’s investigate.

Woodside shares delivering 11% dividend yield

There’s much more to successful income investing than simply picking the ASX 200 shares that pay the biggest dividends today.

That’s especially true with ASX resources stocks because prices for commodities like gas and oil tend to be cyclical.

They directly impact company earnings and, therefore, the dividends paid by ASX 200 energy stocks.

Having said that, right now, Woodside shares are trading on a trailing dividend yield of 11%.

That’s exceptional in anyone’s book and well above the average ASX 200 dividend yield of about 4% or 5%.

Woodside paid an interim dividend of $1.60 per share on 6 October 2022. That was the largest interim dividend since 2014 and came on the back of a 400% profit surge due to high commodity prices.

Then came the all-time high final dividend of $2.154 on 5 April this year.

This equates to a total dividend payout of $3.754, and a trailing dividend yield of 11%, based on the Woodside share price of $34.21 at the time of writing on Friday.

As it’s an Australian company, you can also add 100% franking to those dividends. That makes for a grossed-up trailing dividend yield of 15.7%.

Incidentally, income investors might be interested to know that this is triple the yield of the best bank savings rate on the market today.

Dividend predictions

Looking ahead, a couple of brokers have predicted continuing above-average dividends on Woodside shares, but falling commodity prices will drag dividends lower than where they are now.

As my Fool colleague Tristan recently covered, Commsec expects the following fully franked payments:

• FY23: $2.425 per share (7% yield)
• FY24: $2.307 per share (6.75% yield)
• FY25: $1.98 per share (5.75% yield)

As my Fool colleague James reports, Citi is forecasting these fully franked dividends:

• FY23: $2.63 per share (7.65% yield)
• FY24: $2.56 per share (7.5% yield)
• FY25: $2.21 per share (6.45% yield)

Commodity prices

Higher commodity prices brought about by the Russia/Ukraine war have obviously benefited Woodside shares.

The company has been able to sell its oil and gas for more money, and that’s great. But it’s temporary.

The longer-term benefit is Russia’s exclusion from the supply chain, potentially leading to more demand for Woodside’s oil and gas.

After all, Woodside is the largest oil and gas producer of the ASX 200 and one of the top 10 LNG players in the world. So, it’s well-placed to capitalise on this.

But there’s another global trend that is likely to do great things for Woodside shares in the medium term.

The next big thing to benefit Woodside shares and dividends

It’s a major multi-decade-long investment theme, and it’s only in its infancy right now: Decarbonisation.

The stocks that are going to benefit most long-term are obvious ones like ASX renewables shares. But most pure-play renewables producers are just starting out and need time to mature as companies.

In the short to medium term, energy and mining stocks are going to benefit from decarbonisation.

Why?

Because in order for the world to decarbonise, it has to build the new infrastructure required. For example, you can’t build a wind turbine without machines, which require oil for fuel.

And until every human being aged over 18 buys an electric vehicle (EV), we’re going to need petrol for transportation. And until every roof has solar panels, we’re going to need gas to heat our homes.

The examples go on and on, and the bottom line is, the transition to green energy will be slow.

This is why mining and energy stocks are still attractive in the medium term.

In fact, Woodside shares still have appeal in the long term because the company is already adapting to the emerging green energy era.

It’s developing its own green energy projects and reducing its carbon emissions.

Woodside intends to invest $5 billion in new energy products and lower-carbon services by 2030. These include hydrogen and ammonia projects, and carbon capture, utilisation, and storage.

Expansion of Woodside should also support dividends

That merger with the petroleum business of BHP Group Ltd (ASX: BHP) in June 2022 ended up being a pretty timely deal, as it added a lot of new assets to Woodside’s portfolio.

The company is also still developing some major existing projects, such as Browse, which it says is Australia’s largest untapped conventional gas resource.

All of this means Woodside has plenty of assets from which to make money in the future. And as the world rushes to start building green energy infrastructure, it’s going to need more oil and gas.

Recent history of the Woodside share price

Woodside shares have doubled in value over the past three years.

They hit a multi-year high of $39.58 on 8 November 2022 and were trading at $34.26 at the close on Friday.

In 2023, Woodside shares have declined by 3.3% while the S&P/ASX 200 Index (ASX: XJO) has risen 4.9%.

The best ASX 200 income share?

Woodside can’t be described as the outright best ASX 200 dividend share, but it’s certainly shaping up to be one of the better payers over the next few years.

Of course, commodity prices can affect earnings, as can project delays, and such things will have consequences for dividends.

The post Are Woodside shares the greatest dividend buy of the ASX 200? appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20,000 today for a $3,370 passive income
• 5 things to watch on the ASX 200 on Friday
• How might this news out of China impact the oil price?
• 5 things to watch on the ASX 200 on Wednesday
• How to invest $10,000 in ASX dividend shares in May

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Group, Commonwealth Bank Of Australia, and Woodside Energy Group. 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 best ways to grow your wealth is to make long-term investments, as this allows you to benefit from the magical power of compounding.

One easy way to invest your hard-earned money in this way is with exchange traded funds (ETFs). That’s because ETFs provide investors with access to a large number of shares through a single investment.

This can help diversify your portfolio and lower the risk of you making a large loss on a particular investment.

But which ETFs should you look at for the long term?

Listed below are three high quality ETFs that could be worth considering. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF that could be a top buy and hold option is the BetaShares Global Cybersecurity ETF. This fund provides investors with the opportunity to invest in the cybersecurity sector. This means you’ll be buying companies such as Accenture, Cisco, Cloudflare, Crowdstrike, and Palo Alto Networks. Due to the growing threat of cyberattacks globally, these companies appear well-placed to benefit from increasing demand for their services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF for investors to buy and hold could be the BetaShares NASDAQ 100 ETF. This ETF allows investors to buy many of the highest quality companies in the world all in one place. That’s because the BetaShares NASDAQ 100 ETF is home to the 100 largest non-financial shares on the famous NASDAQ exchange. This includes the likes of Amazon, Apple, Google parent Alphabet, Meta, Microsoft, Netflix, and Tesla.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Finally, if you’re aspiring to be like Warren Buffett when investing, then you may want to look at the VanEck Vectors Morningstar Wide Moat ETF. That’s because this Warren Buffett-inspired ETF gives investors access to a group of companies that have sustainable competitive advantages or moats (hence its name). Moats are something the Oracle of Omaha looks for when choosing investments. And given his long-term track record, this investment strategy clearly works. This could make this ETF a great buy and hold candidate.

The post 3 high quality ETFs for ASX investors to buy and hold for decades appeared first on The Motley Fool Australia.

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More reading

• If I could only buy one ASX share today, this would be it
• 12 ASX exchange-traded funds (ETFs) smashing new 52-week highs today
• 3 strong ETFs for ASX investors to buy this month
• The Betashares Nasdaq 100 ETF (NDQ) just hit a new 52-week high. Here’s why
• 2 high-return exotic ETFs to buy in May

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended 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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If you’re looking for some ASX dividend shares to boost your passive income, then you may want to look at the two named below.

Here’s why analysts rate these ASX dividend shares highly:

Rural Funds Group (ASX: RFF)

Bell Potter believes that Rural Funds could be an ASX dividend share to buy right now.

The broker feels that the agricultural property company’s shares are cheap as chips and is expecting some very attractive dividend yields in the coming years. It commented:

RFF is down ~39% from its Jan’22 peak a material underperformance relative to the XPJ, which is down ~21% over the same time frame. The underperformance has come despite double digit YOY gains in agricultural land values in CY22. In effect the current 31% discount to market NAV is implying a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87.

As for dividends, the broker is expecting dividends per share of 11.7 cents in FY 2023 and 12.2 cents in FY 2024. Based on the current Rural Funds share price of $1.87, this will mean yields of 6.25% and 6.5%, respectively.

Bell Potter has a buy rating and $2.65 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32.

Goldman Sachs is bullish on the diversified miner and is expecting some huge dividend yields in the near term. It explained:

We upgrade S32 to Buy (from Neutral) on attractive valuation: Trading at ~0.95xNAV (A$4.6/sh) and on an implied TSR of ~29%, and an attractive NTM EV/EBITDA multiple of ~2.1x vs. the sector average of 4.5x. We assume the share buyback continues (at ~US$250mn p.a) and S32 pays out 50% of earnings (40% ordinary, 10% special dividend component) with the FY23 full year result. On our estimates, S32 is on a supportive dividend yield of c. 5% in FY23, increasing to 14% in FY24.

As mentioned above, Goldman Sachs is expecting a 5% dividend yield in FY 2023 and 14% in FY 2024.

The broker also sees plenty of upside for the South32 share price with its buy rating and $4.80 price target. The miner’s shares were last trading at $4.06.

The post Don’t miss out on these high yield ASX dividend shares: analysts appeared first on The Motley Fool Australia.

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More reading

• Looking to buy an ASX 200 mining stock? Here are 3 reasons to consider South32 shares
• 2 ASX 300 shares I’d buy for long-term dividend income
• Brokers expect big gains and huge dividends from these ASX 200 mining shares
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Looking for regular passive income? Here are 3 ASX dividend shares that pay quarterly

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 Rural Funds 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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Ah, the great ASX debate: Coles Group Ltd (ASX: COL) shares versus Woolworths Group Ltd (ASX: WOW) shares.

Supermarket giants Coles and Woolworths are two of the most similar companies on the ASX. Both consumer staples stocks have been competing in the same market for customers and investors for decades.

Which is the better investment? That depends on who’s being asked. Some investors prefer Woolworths’ clear domination of the Australian grocery market. Others might like the cheaper Coles share price (on a price-to-earnings (P/E) basis) and the higher dividend yield.

But Coles may have an ace up its sleeve in 2023 that could help settle the debate.

ASX broker rates Coles shares as a buy today

As we covered earlier this week, ASX broker Citi recently came out with a highly bullish outlook on Coles. The broker gave the supermarket chain a buy rating, together with a 12-month share price target of $20.20.

The primary reason Citi sees so much potential for Coles is the company’s new automated distribution centre (ADC) in Redbank, Queensland. Citi reportedly toured the new facility and reckons Coles is “moving in the right direction”, with ADCs having “the potential to provide a cost advantage over competitors”.

According to Coles:

The first ADC of its kind in Australia, it will revolutionise the way we get the products customers want, where and when they need them… The ADC will support less manual handling, more flexible rosters and greater opportunities to rotate through tasks.

The new ADC is one reason why Citi is forecasting Coles to increase its dividends to 69 cents per share for FY2023. Then to 73 cents for FY2024 and 80 cents for FY2025. Coles shares have paid out a total of 66 cents per share in fully-franked dividends over the past 12 months. That gives the Coles share price a dividend yield of 3.64% today.

Woolworths is also investing in automation technology for its supply chains. But it seems that Citi thinks Coles has the upper hand here.

The Coles share price has slightly outperformed that of Woolworths over the past five years, as you can see below:

But only time will tell if the next five years will bring the same outperformance for Coles investors.

The post Is this a compelling reason to buy Coles shares over Woolworths? appeared first on The Motley Fool Australia.

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More reading

• No savings at 40? Here’s my 3-step plan for $1,500 of passive income a month
• Experts say these top ASX dividend stocks are buys
• Why I’d buy companies with pricing power to comfortably beat the ASX index
• 2 ASX 200 dividend stocks brokers rate as top buys
• Up 17% in 2023, are Woolworths shares still worth buying?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles 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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If you’re in the market for some new portfolio additions, then you will be pleased to know that a number of ASX 200 shares have recently been tipped as buys.

Here’s why brokers are particularly positive on these top shares:

Allkem Ltd (ASX: AKE)

Bell Potter believes this ASX 200 lithium share is still great value despite recent gains following the announcement of a merger with Livent Corp (NYSE: LTHM). The broker has a buy rating with a $19.20 price target on its shares. The broker commented:

AKE is now in-play; we think it is likely the LTHM merger will proceed and are not confident that an interloper will emerge. On a stand-alone basis the company has a strong production and earnings growth profile into what we expect to be an exceptionally strong market for lithium. Combining with LTHM and the NYSE listing could see an earnings multiple uplift. AKE is trading at a slight discount to the implied deal value, which we expect will close if deal certainty improves.

BHP Group Ltd (ASX: BHP)

A note out of Goldman Sachs reveals that its analysts are bullish on this mining giant. The broker currently has a buy rating and $49.90 price target on the Big Australian’s shares. Goldman named four reasons why it is positive on BHP. It said:

Our Buy thesis on BHP is based on: (1) Attractive valuation, but at a premium to S32 & RIO (2) GS bullish iron ore, copper and met coal, (3) Optionality with +US$20bn copper pipeline and improved production growth, (4) Robust FCF, but still below RIO & S32.

CSL Limited (ASX: CSL)

Morgans is a fan of this ASX 200 biotherapeutics share and has an add rating and $337.92 price target on it. The broker believes CSL is well-placed for growth now its headwinds have faded. It said:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, 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, with shares offering good value trading around its long-term forward multiple of ~30x.

Goodman Group (ASX: GMG)

Citi is a fan of this integrated industrial property company and has a buy rating and $24.30 price target on its shares. The broker believes Goodman is well-positioned to deliver solid earnings growth for the foreseeable future. It said:

We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings. The stock currently trades at c. 19x FY24e, below global industrial peers, despite having higher earnings growth and lower leverage. We therefore see upside to the share price and retain Buy.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that has been named as a buy is ResMed. Goldman Sachs is a fan of the sleep treatment solutions company and has a buy rating and $39.60 price target on its shares. It commented:

We continue to see a long-duration runway of HSD organic growth for RMD, and we believe valuations (PE: 31.4x / EV/EBITDA: 22.0x) both c.6% below 5-year averages and growth-adjusted valuation of 2.6x (sector 2.4x) are not demanding in the context of various near/long-dated tailwinds.

The post 5 ASX 200 shares to buy according to brokers appeared first on The Motley Fool Australia.

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More reading

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• Why BHP shares made our headlines this week
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• Buy these excellent ASX 50 shares now: broker
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Motley Fool contributor James Mickleboro has positions in Allkem and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman 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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There are many ingredients that go towards making batteries and electronics.

That’s why even though lithium stocks might have been all the rage in recent years, it could pay to research other mineral producers.

Wilsons equity strategist Rob Crookston suggested this week that his team is “structurally bullish” on copper shares.

“Copper is a popular base metal that has been favoured for centuries for its electrical conductivity and low reactivity,” he said in a memo to clients.

“Growth in copper demand is expected to outpace new supply over the medium- to longer-term.”

The global decarbonisation movement will require “significant quantities of copper”.

“EVs [electric vehicles] typically require around 3x more copper than comparable conventional internal combustion engine vehicles,” said Crookston.

“Solar and offshore wind require an estimated ~3x and ~7x, respectively, more copper per megawatt of installed capacity than popular fossil fuel energy sources.”

The company that will turn from iron ore to copper

So which ASX shares are the best to buy to cash in on the looming copper shortage?

Strangely, there actually aren’t that many choices.

“In spite of Australia having the world’s second-largest copper reserves behind Chile, the ASX suffers from a scarcity of high-quality pure-play copper miners, which was exacerbated by BHP Group Ltd (ASX: BHP)’s takeover of OZ Minerals.”

For Wilsons analysts, buying a major miner that produces a diversified range of minerals is the favoured method of exposure to copper.

And of those, there is one that they would pick.

“BHP offers by far the most copper exposure of the large diversified miners, in both absolute and relative terms.”

This is despite Crookston’s team staying away from iron ore, which is currently the bread-and-butter business for the Big Australian.

“We are constructive on BHP, partly based on the view that the business will soon become a copper producer first and foremost — though we do note the business has no plans to walk away from its profitable iron ore business.”

The BHP share price is 6% down on a year ago, currently presenting a buying opportunity.

The dividend yield stands at a mouthwatering 8.95%.

The company has copper interests in Chile, South Australia, the United States and Peru.

“BHP’s operational copper mines are high quality, low cost, long life assets with significant production growth potential, while it also owns a range of exploration assets like its Oak Dam development in South Australia,” said Crookston.

“According to consensus estimates, BHP will generate more earnings from copper than iron ore by FY25.”

The most bullish modelling sees BHP’s copper earnings overtake iron ore as soon as the next financial year.

“In any case, regardless of the timing, the long-term trend towards copper is clear, and in our view, this makes BHP a more compelling investment opportunity than the other major diversified miners.”

The post The copper price could explode. This is the ASX share to take advantage appeared first on The Motley Fool Australia.

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More reading

• Why BHP shares made our headlines this week
• Buy these ASX shares with big dividend yields: Goldman Sachs
• Why is the BHP share price outpeforming the ASX 200 today?
• How does the Fortescue dividend stack up against BHP and Rio?
• Why the BHP dividend forecast has caught my attention!

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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