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S&P/ASX 200 Index (ASX: XJO) uranium stocks have broadly rewarded shareholders amid a surge in global demand for the radioactive fuel.

Some top producers have now even entered the prized and highly elusive 10-bagger zone. That’s a stock that returns 10 times its initial investment, or 900%.

Enter Paladin Energy Ltd (ASX: PDN).

A 10-bagger ASX 200 uranium stock

Five years ago, you could have picked up Paladin Energy stock for 14 cents per share. At the time uranium was selling for around US$25 per pound.

But amid renewed global interest in nuclear power as a reliable baseload source with no direct carbon emissions, uranium prices began to lift off in late 2021, offering some heady tailwinds for ASX 200 uranium stocks.

Uranium prices averaged at just under US$67 per pound in 2023 before hitting record highs of more than US$106 per pound in early February this year. Prices have since retraced from those all-time highs to just under US$88 per pound this week.

The big 2024 price lift was driven by a nuclear expansion pledge from 22 nations at December’s COP28 climate conference. The countries, including Japan, the United States and France, promised to triple their nuclear power capacity by 2050.

And this comes as the world’s two most populous countries, India and China, continue to lead the charge in nuclear power plant construction.

With all these tailwinds behind it, the Paladin Energy share price has soared to $1.51 in intraday trade today.

Meaning the ASX 200 uranium stock has edged past 10-bagger status to return a whopping 978.6% over five years (or 10.786 times your investment).

That’s enough to turn a $10,000 investment into a sizeable nest egg of $107,857.

What now for the Paladin Energy share price?

The Paladin Energy share price shows little sign of slowing down.

The ASX 200 uranium stock is up 3.1% today and up 23.8% over the past month.

On Tuesday, the company stirred up fresh excitement when it reported that uranium production at its Langer Heinrich Mine (LHM) in Namibia had commenced.

With Paladin now able to capitalise on historically high uranium prices, Bell Potter upgraded its rating to a ‘buy’ with an increased price target of $1.65.

That represents a potential 9.3% gain from the recent Paladin Energy share price.

The broker said Paladin’s Tuesday announcement marked “an important milestone in returning LHM to production and the first step towards targeting a 6Mlb pa run-rate”.

They said the ASX 200 uranium stock will now “build inventory for approximately 3-months we estimate, putting them in a position to begin shipments at the end of 4QFY24 or beginning 1QFY25”.

The post This ASX 200 uranium stock has turned $10,000 into $107,857 in just 5 years! appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why now is the time to buy to buy this ASX 200 uranium stock
• How much would I have now if I’d invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Keen Motley Fool readers might have noticed that amid yesterday’s stock market route, ASX tech shares were, by far, the worst-performing sector of the market.

As we recorded in our end-of-day wrap yesterday, the S&P/ASX 200 Information Technology Index (ASX: XIJ) took the brunt of yesterday’s selling pressure, collapsing by 3.94% by the closing bell.

Well, today, the S&P/ASX 200 Index (ASX: XJO) has rebounded strongly, currently up an encouraging 0.55%. And lo and behold, ASX tech shares are helping to lead the charge higher so far this Thursday.

ASX tech shares are currently the second-best performing sector on the market, with the Information Technology Index presently up by an encouraging 1.32%. That’s only behind gold shares in terms of winners today.

Breaking this down, we are seeing some great moves from some of the ASX’s most prominent tech stocks. Take Megaport Ltd (ASX: MP1) for instance. Its shares are enjoying a 2.6% lift right now to $13.85 each.

Xero Ltd (ASX: XRO) is up 2.1% to $127.63, while WiseTech Global Ltd (ASX: WTC) has gained 1.75% up to $91.78 a share.

In other words, we are seeing a strong rebound for ASX tech shares today.

But why? Why has this corner of the market recovered so decisively from yesterday’s sell-off?

Why are ASX tech shares leading the Australian share market higher?

Well, it’s hard to say. It could be, at least partially, a result of what happened in the US markets last night. The American Wednesday session saw many US shares limp, as represented by the Dow Jones Industrial Average Index (DJX: .DJI)’s 0.11% drop.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, rising by 0.23%. That was assisted by many prominent US tech shares, including Apple, Amazon, Alphabet, Meta Platforms and Tesla, recording hefty gains.

Meta stock in particular was up 1.88% to US$506.74 a share by the closing bell this morning, while Tesla shares rose 1.5% to US$168.38.

These moves in turn may have been helped by comments from the chair of the US Federal Reserve yesterday.

As reported by CNBC, Jerome Powell told investors that the US economy was strong in his view. Although he noted that interest rate cuts were not a done deal for 2024 just yet, Powell stated that the Fed was making “progress” on reducing inflation as it moves “sustainably down toward 2 percent”.

Powell’s comments, as well as the subsequent performance of some of the US’ (and the world’s) largest tech shares, is probably enough to give our local ASX tech shares a boost today.

No doubt ASX investors will be breathing a sigh of relief. Let’s see how ASX tech shares end up today.

The post Why are ASX tech shares rebounding strongly on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares boasting better revenue growth than Tesla
• Why Mesoblast, Regis Resources, Westgold, and WiseTech shares are sinking today
• Got $5,000? 5 ASX shares to buy for lasting wealth
• Top ASX shares to buy in April 2024
• Experts name 3 excellent ASX growth shares to buy in April

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Meta Platforms, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Megaport, Meta Platforms, Tesla, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Megaport, and Meta Platforms. 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’m a firm believer that buy and hold investing with ASX shares is the best way to grow your wealth.

However, you can’t just buy any old share. If you’re planning to make a long-term investment, you need to invest in the crème de la crème. After all, the cream always rises to the top.

So, which roaring ASX shares could be great long-term investments? Let’s take a look at three shares that Macquarie rates as buys:

Goodman Group (ASX: GMG)

This integrated property company’s shares have been strong performers over the last decade. During this time, they have delivered an average total return of 22% per annum. This is more than twice the average market return.

While returns of that level are far from guaranteed in the future, Goodman certainly is well-positioned to give it a shot. This is thanks to its focus on owning, developing, and managing high-quality, sustainable properties that are close to consumers and provide essential infrastructure for the digital economy.

Macquarie is very positive on its outlook and recently put an outperform rating and $34.84 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX share that Macquarie rates very highly is Aristocrat Leisure. Over the last decade, it has delivered a mouth-watering average total return of 24% per annum.

Aristocrat Leisure is an entertainment and content creation company powered by technology to deliver world-leading mobile and casino games which entertain millions of players across the globe every day.

It has three operating units: Aristocrat Gaming (poker machines), Pixel United (digital games), and Anaxi (real money gaming). All three businesses have significant long-term growth potential, which is expected to underpin solid and sustainable earnings growth long into the future.

Macquarie currently has an outperform rating and $48.50 on its shares.

Pro Medicus Limited (ASX: PME)

Finally, Macquarie sees value in this health imaging technology company’s shares despite its incredible run over the last 12 months. The ASX share is up 58% since this time last year, which means it has now delivered a staggering average total return of 62% per annum over the last decade.

In case you’re not familiar with the company, it is a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualization solutions across the globe.

Its hugely popular Visage Imaging platform is regarded as the best in its class and has been underpinning rapid earnings growth in recent years. Macquarie believes this growth can continue and its forecasting earnings per share growth of approximately 30% in both FY 2024 and FY 2025.

Its analysts have an outperform rating and $120.00 price target on its shares.

The post 3 roaring ASX shares to hold for the next 20 years appeared first on The Motley Fool Australia.

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More reading

• If I invest $10,000 in Goodman shares, how much dividend income will I receive?
• I think these 2 ASX shares could make strong long-term buys
• Top ASX shares to buy in April 2024
• Here’s how the ASX 200 market sectors stacked up last week
• 13 ASX 200 shares at 52-week highs

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 Goodman Group, Macquarie Group, and Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Goodman Group and Pro Medicus. 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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Today is a good day to own Woodside Energy Group Ltd (ASX: WDS) shares.

Why?

Because the S&P/ASX 200 Index (ASX: XJO) energy stock pays eligible investors its final dividend today.

Woodside shares traded ex-dividend on 7 March. Meaning passive income investors will receive the dividend payout for any shares held at market close on 6 March.

That will land in their selected bank accounts, as Woodside’s dividend reinvestment plan remains suspended for now.

And while the dividend is down from last year, it’s still well above average for an ASX 200 stock.

Woodside shares paying off today

Woodside reported its full-year 2023 financial results on 27 February.

As expected, the company’s financials took a hit from lower oil and gas prices. Though ASX 200 investors took this in stride, sending Woodside shares up 0.9% on the day.

Woodside reported a 30% year on year decline in its average realised price to US$68.60 per barrel equivalent. That pain was partially offset by a 19% increase in annual sales volumes, which reached 201.5 million barrels.

All told this saw revenue drop by 17% from 2022. Though it still came in at an impressive US$13.99 billion.

With production costs also rising, the decline in revenue saw a 37% fall in underlying net profit after tax. Though this too was still a very impressive US$3.32 billion.

With these headwinds in mind, the final dividend was cut by some 57% from 2022 to 91.7 cents per share, fully franked.

Commenting on Woodside’s performance at the time, chairman Richard Goyder noted, “We achieved strong financial performance in 2023. While oil and gas prices eased from 2022’s record highs, robust product demand continued.”

As for the dividend, Goyder added:

In 2023, we recorded an annual net profit after tax of $1.7 billion and an underlying net profit after tax of $3.3 billion. Based on this, the board has determined a fully franked final dividend of 60 US cents per share, resulting in a total full-year dividend of 140 US cents per share.

If you bought Woodside shares for the dividend on 6 March, you could have picked the stock up for $30.52 a share. Meaning the final dividend payout alone represents a 3% fully franked yield.

Atop Woodside’s interim dividend of $1.243– paid on 28 September – the ASX 200 energy stock trades on a fully franked trailing yield of 7.2%.

Looking ahead

Looking at what could impact Woodside shares in the months ahead, the company maintained its guidance for 2024.

Woodside forecasts production of 185 million barrels of oil equivalent (Mmboe) to 195 Mmboe for FY 2024. Capital expenditure is expected to be in the range of US$5 billion to US$5.5 billion.

The post Own Woodside shares? Today is payday! appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• After a tepid March can the Woodside share price reignite in April?
• Is now the time to invest in these ASX 200 energy shares?
• 3 ASX dividend stocks with good yields to buy now
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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The Suncorp Group Ltd (ASX: SUN) share price has continued its positive run on Thursday and hit a new 52-week high.

In morning trade, the insurance giant’s shares are up over 1% to $16.53.

Why is the Suncorp share price at a new 52-week high?

Investors have been buying the company’s shares again on Thursday thanks to the release of an announcement this morning.

According to the release, Suncorp has signed a share sale and purchase agreement with Resolution Life to sell its New Zealand life insurance business, Asteron Life.

Resolution Life will purchase Asteron Life for a total of NZ$410 million (A$375 million). This includes an upfront payment of NZ$250 million (A$223 million) at completion with the remainder due 18 months after completion. The company notes that interest will be earned on the outstanding balance.

The company’s New Zealand general insurance business remains unchanged and part of the Suncorp Group.

What’s next?

The transaction is subject to New Zealand regulatory approvals and notifications. This includes the Reserve Bank of New Zealand, the Overseas Investment Office, and Commerce Commission. But if everything goes to plan, it is expected to complete within nine months.

Importantly for customers of Asteron Life, the transaction will result in no change to its business operations. It is expected to continue to operate under the same brand with the same management team. It will also continue to support advisers and their customers using the same local New Zealand team and remain open to new business after the acquisition completes.

‘Reshaping’ Suncorp

Suncorp Group’s CEO, Steve Johnston, notes that this transaction is part of the company’s plan to reshape its business. He said:

The Transaction continues the reshaping of the Suncorp Group, and positions both the general and life insurance businesses for ongoing growth and success – benefiting employees, customers, and other stakeholders. We believe it is a win-win for our stakeholders.

We have simplified our portfolio in recent years under a strategy designed to align everyone at Suncorp around improving the way we deliver value for our Australian and New Zealand customers. We remain committed to the New Zealand general insurance market as part of our refocused group.

This latest gain means that the Suncorp share price is now up 36% over the last 12 months.

To put this into context, a $20,000 investment a year ago would now be worth $27,200. And that doesn’t include the dividends that Suncorp has paid out over the period.

The post Suncorp share price hits new 52-week high amid $375m asset sale appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• 2 ASX 50 dividend stocks to buy now
• Buy Rio Tinto and these ASX dividend shares now
• Forget term deposits and buy these ASX dividend stocks

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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Imugene Ltd (ASX: IMU) shares are catching the eye on Thursday morning.

In early trade, the ASX 300 healthcare stock is up almost 5% to 11 cents.

Why is this ASX 300 healthcare stock storming higher?

Investors have been buying the clinical stage immune-oncology company’s shares after responding positively to an announcement.

According to the release, the company has received a notice of grant from the Chinese Patent Office. This follows earlier grants in Japan and South Korea.

The granted claims protect the ASX 300 stock’s oncolytic virotherapy, CF33, including VAXINIA (CF33-hNIS) and CHECKvacc (CF33-hNIS-antiPDL1).

This is a big boost for the company given that China is the largest pharmaceutical market in Asia.

What is CF33?

CF33 is a chimeric vaccinia poxvirus from the lab of inventor Professor Yuman Fong, Chair of Sangiacomo Family Chair in Surgical Oncology at City of Hope, and a noted expert in the oncolytic virus field.

Oncolytic viruses are designed to both selectively kill tumour cells and activate the immune system against cancer cells. Imugene notes that they have the potential to improve clinical response and survival.

The release explains that the patent is titled “Chimeric poxvirus composition and uses thereof” and protects the method of composition and method of use of Imugene’s licensed oncolytic virotherapy all the way out to 2037.

‘Important patent milestone’

The ASX 300 stock’s managing director and CEO, Leslie Chong, was pleased with the news. She said:

Imugene receiving these patent grants for the CF33 family of oncolytic viruses is a crucial step forward and with China, Japan, and South Korea being the largest healthcare markets in Asia, this is a particularly important patent milestone.

What is Imugene?

Imugene is a clinical stage immuno-oncology company with a focus on developing a range of new and novel immunotherapies that seek to activate the immune system of cancer patients to treat and eradicate tumours.

It claims to have unique platform technologies that seek to harness the body’s immune system against tumours, potentially achieving a similar or greater effect than synthetically manufactured monoclonal antibody and other immunotherapies.

As well as CF33, the ASX 300 stock’s pipeline includes an off-the-shelf (allogeneic) cell therapy CAR T drug azer-cel (azercabtagene zapreleucel) which targets CD19 to treat blood cancers.

Unfortunately, over the last 12 months, the company’s shares have underperformed the market. For example, despite today’s gain, the Imugene share price remains down 15% since this time last year.

The post Guess which ASX 300 healthcare stock is storming higher on Chinese patent news appeared first on The Motley Fool Australia.

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More reading

• Should I rush to buy this ASX 200 giant currently near its 52-week low?
• If you start investing today, when could you retire?
• Should I buy BHP or Rio Tinto shares in April?
• 3 top ASX REITs to buy in April 2024
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Endeavour Group Ltd (ASX: EDV) shares have underperformed the market over the last 12 months.

During this time, the ASX 200 drinks giant’s shares have lost over 20% of their value. This leaves them trading within sight of their 52-week low.

While this is disappointing for shareholders, has it created a buying opportunity for others?

Is it time to buy this ASX 200 giant?

A number of brokers believe that the Dan Murphy’s and BWS owner’s shares could offer big returns over the next 12 months.

For example, Ord Minnett currently has an accumulate rating and $6.10 price target on its shares and UBS has a buy rating and $6.00 price target on them. This implies upside of 14% and 12%, respectively, for investors from current levels.

In addition, both brokers are forecasting 4%+ dividend yields in FY 2024 and FY 2025, boosting the total potential return further.

They are not alone with their buy ratings. The most bullish broker out there is Goldman Sachs, which has a buy rating and $6.20 price target on the ASX 200 giant.

This price target suggest that Endeavour’s shares could rise almost 16% over the next 12 months. And like the other brokers, Goldman is expecting attractive dividend yields from its shares in the coming years.

Goldman expects fully franked dividends per share of 22 cents in FY 2024 and FY 2025, and then 24 cents in FY 2026. This will mean yields of 4.1% for the next two years and then 4.5% the year after.

All in all, if the broker is on the money with its recommendation, you could expect to receive a 20% return on your investment over the next 12 months.

To put that into context, this would turn a $20,000 investment into $24,000.

Why buy Endeavour shares?

A few weeks ago, Goldman explained why it thinks this ASX 200 giant is a buy. It named two key reasons underpinning its buy rating. The broker explained:

Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in. We are Buy rated on EDV.

Overall, this could make it a top option for investors looking for high-quality options for their portfolio.

The post Should I rush to buy this ASX 200 giant currently near its 52-week low? appeared first on The Motley Fool Australia.

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More reading

• 5 excellent ASX dividend stocks to buy in April
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Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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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Investing in ASX shares can help investors achieve excellent wealth-building and enable people to retire early. What if someone started investing today – how long would it take for them to retire?

Everyone has different personal finances, with various levels of starting wealth and income. I’m going to try to work out what it would take for a 20-year-old, a 30-year-old, a 40-year-old and a 50-year-old to achieve retirement.

How much to aim for?

I used to think that $1 million was a good goal to work towards. However, inflation of various goods, services and housing has meant we may need a bit more than that. I’m going to talk about a goal of $1.25 million. That may sound like a lot, but I will show how compounding can do a lot of the work for us.

If we can reach $1.25 million, and we own a portfolio with a dividend yield of 5%, that could pay $62,500 of passive income. Other forms of income could make up any further required cash flow.

In each of the below scenarios, I’m not specifically talking about superannuation because I’m thinking about a scenario where we can retire before being able to fully access it. However, mandatory superannuation contributions and long-term growth can do a lot of the heavy financial lifting if someone doesn’t aim for early retirement.

50-year-old

Someone just starting out with $0 may not have a long time to build wealth, but it can work, particularly if we keep in mind that the age pension is available for people who don’t have a lot of wealth.

If we’re aiming for $1.25 million by 65, that’s 15 years away. The age pension starting point is currently set at 67, so we’re aiming to retire a couple of years early.  

Let’s assume the portfolio matches the long-term return of the share market of around 10% per annum.

To get to $1.25 million in 15 years, if the portfolio returns 10% per annum, that person would need to invest $2,650 per month.

40-year-old

Someone who has just turned 40 still has more than two and a half decades until they reach the right age for the pension.

Let’s say this person wants to retire by 60, which is seven years earlier than the pension age, it gives them 20 years to compound the wealth.

To reach $1.25 million in 20 years, if the portfolio is returning 10% per annum, that person would need to invest $1,500 per year.

30-year-old

A 30-year-old has decades of time ahead of them before reaching typical retirement age.

More time until retirement could mean being able to target a retirement date of 55 years which is roughly a decade before being able to access the pension (under the current rules).

To reach $1.25 million in 25 years, assuming the portfolio returned 10% per annum, we’re talking about needing to invest around $850 per month.

20-year-old

People just starting their careers don’t really need to be thinking about retirement. But, any progress made in the 20s can make a big difference to how things turn out in the long term.

With so many years of potential compounding ahead, it can make a lot of sense to invest a bit now. Let’s say we’re aiming for $1.25 million by 50, which is in 30 years.

To reach $1.25 million in 30 years, and the portfolio makes 10% per annum, a 20-year-old would only need to invest $510 per month.

Foolish takeaway

Inflation will play a big part in how much passive income we need in future retirement. A $1.25 million balance will probably have a lot more purchasing power next year than in 30 years, so I’d suggest younger Aussies try to invest more than the above calculations if they want a very comfortable retirement.

It may also be possible to find investments that can deliver returns that are stronger than 10% per annum. I like quality-based exchange-traded ETFs (ETFs) such as VanEck Morningstar Wide Moat ETF (ASX: MOAT) and VanEck MSCI International Quality ETF (ASX: QUAL).

The right individual ASX shares may be able to produce the most appealing returns of all.

The post If you start investing today, when could you retire? appeared first on The Motley Fool Australia.

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More reading

• Why I’d buy VanEck Morningstar Wide Moat ETF (MOAT) for anyone in my family
• 3 excellent ASX ETFs for smart investors in April
• How to become a millionaire on a $70,000 salary
• Which ASX ETFs give Aussie investors access to US stocks?
• 3 star ASX shares to buy for the rest of 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 no position in any of the stocks mentioned. 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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When it comes to investing in the mining sector, there are two names that come to mind immediately.

These are BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). But are their shares in the buy zone right now?

Let’s take a look and see what analysts at Goldman Sachs are saying about the two mining behemoths ahead of the release of their quarterly updates later this month.

Should I buy BHP and Rio Tinto shares?

The good news is that Goldman Sachs thinks that both miners are top options for investors right now.

And while the broker has a preference for Rio Tinto, it still feels that BHP shares offer a compelling risk/reward.

According to the note from this morning, the broker has retained its buy rating on the Big Australian’s shares with a slightly trimmed price target of $49.20. This implies almost 10% upside for investors from current levels.

In addition, the broker is forecasting fully franked dividend yields of 4.8% in FY 2024 and 4.3% in FY 2025. This stretches the total potential 12-month return beyond 14% if I were to buy BHP shares where they trade today.

Goldman likes BHP for four reasons. These include its attractive valuation and strong production growth opportunities. It explains:

Buy rated on: (1) Attractive valuation, but at a premium to RIO; (2) GS bullish copper and met coal; (3) Optionality with the +US$20bn copper pipeline and strong production growth over 24/25; (4) Robust FCF, but still below RIO. We continue to believe that BHP’s major opportunity is growing copper production in Chile at Escondida and Spence, and growing copper production and capturing synergies in South Australia between Olympic Dam and the previous OZL assets.

The top pick

Goldman’s preference remains with Rio Tinto shares. This morning, it has retained its buy rating on the miner’s shares with an improved price target of $140.20. This suggests potential upside of 14% for investors from current levels.

And with Goldman forecasting fully franked dividend yields of 5.4% in FY 2024 and 5.7% in FY 2025, I could get a total return of over 19% over the next 12 months if its analysts are on the money with their recommendation.

There are five reasons why the broker rates Rio Tinto shares as a buy. It explains:

Buy rated on: (1) compelling relative valuation vs. peers, (2) attractive FCF and Div yield, (3) strong production growth in 2024-2025E of ~5-6% CuEq driven by the ramp-up of the Oyu Tolgoi UG copper mine & a recovery at Escondida and Bingham, higher Pilbara Fe shipments with the ramp-up of new mines, (4) potential for FCF/t improvement in the Pilbara, and (5) high margin low emission aluminium business.

The post Should I buy BHP or Rio Tinto shares in April? appeared first on The Motley Fool Australia.

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More reading

• 5 excellent ASX dividend stocks to buy in April
• 5 things to watch on the ASX 200 on Thursday
• Are your big ASX 200 mining dividends in for a chop?
• Why are Rio Tinto shares outperforming the market on Wednesday?
• 3 ASX shares I think will lead the next bull market charge

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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As well as being able to invest in companies like Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW), the Australian share market also allows you to invest in the property market.

This is achieved through real estate investment trusts (REIT), which are companies that own and operate property assets. They also usually offer investors a nice source of passive income.

Three ASX REITS that have been rated as buys recently are listed below. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX REIT to look at Centuria Industrial.

It is Australia’s largest domestic pure play industrial property investment vehicle with a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion. The assets are situated in key in-fill locations and close to key infrastructure.

UBS is positive on the company and recently retained its buy rating and $3.71 price target on its shares. The broker was pleased with the company’s performance during the first half, noting that it outperformed expectations and upgraded its funds from operations full-year guidance thanks to strong like-for-like rental growth.

Its analysts are expecting some attractive dividend yields from its shares in the near term. They are forecasting the company to pay dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.44, this represents dividend yields of 4.65% in both years.

Dexus Convenience Retail REIT (ASX: DXC)

Another top ASX REIT for investors to look at is the Dexus Convenience Retail REIT.

It owns a portfolio of service station and convenience retail assets located across Australia concentrated on the eastern seaboard. Its tenant include Chevron, 7-Eleven, EG Australia, Coles Express, United, and Ampol.

The team at Morgans is positive on this REIT and has an add rating and $3.23 price target on its shares.

As for income, the broker is forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.75, this implies very large yields of 7.6%.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Finally, analysts at Bell Potter thinks that the Healthco Healthcare and Wellness REIT could be an ASX REIT to buy.

It has a mandate to invest in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness property assets, as well as other healthcare and wellness property adjacencies.

Bell Potter currently has a buy rating and $1.70 price target on its shares.

In respect to income, its analysts are forecasting dividends of 8 cents per share in FY 2024 and 8.3 cents per share in FY 2025. Based on its current share price of $1.24, this will mean yields of 6.45% and 6.7%, respectively, for investors.

The post 3 top ASX REITs to buy in April 2024 appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend stocks with good yields to buy now
• 2 ASX dividend shares with 5%+ yields to buy next week
• Buy ANZ and this ASX dividend share now
• Buy these ASX dividend stocks for an income boost
• 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 positions in and has recommended Coles Group and 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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