Tag: Motley Fool

Thankfully for income investors, there are plenty of dividend shares on the ASX offering attractive yields.

Two that brokers are particularly bullish on right now are named below. Here’s why they rate them as buys and what yields they expect in the near term:

Bank of Queensland Limited (ASX: BOQ)

The first ASX 200 dividend share for income investors to consider is Bank of Queensland.

It is the regional bank behind the eponymous Bank of Queensland brand. In addition, it owns the ME Bank and Virgin Money Australia brands.

Ord Minnett is feeling positive about Bank of Queensland thanks partly to its digitisation program. The broker expects the program to support loan and deposit growth, as well as achieve productivity benefits.

Ord Minnett has an accumulate rating and $8.40 price target on the bank’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of 52 cents in FY 2023 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.42, this will mean big yields of 8.1% and 8.4%, respectively.

Santos Ltd (ASX: STO)

Another ASX 200 dividend share that has been rated as a buy is Santos.

It is one of the region’s largest energy producers thanks to its recent merger with Oil Search. This merger means the company is now targeting production in and around the 100 million barrels of oil equivalent (mmboe) per annum. 

The team at Macquarie sees a lot of value in its shares at the current level. In fact, the broker recently highlighted that its shares have dropped to a level which is in line with a takeover offer several years ago. And that’s despite the recent addition of Oil Search’s assets. 

Macquarie currently has an outperform rating and $9.90 price target on Santos’ shares.

As for dividends, the broker is expecting dividends per share of 42 cents in FY 2023 and 31 cents in FY 2024. Based on the current Santos share price of $7.14, this will mean yields of 5.9% and 4.3%, respectively.

The post Banking and energy: The ASX 200 dividend shares to buy now according to analysts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s the forecast for the Bank of Queensland share price?
• 5 things to watch on the ASX 200 on Thursday
• Morgans names the best ASX 200 dividend shares to buy in April
• These are the best ASX sectors to invest your money into this quarter: Morgans
• ‘Strong demand’: The 2 ASX 200 shares to pounce on right now

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.

from The Motley Fool Australia https://ift.tt/xIUfq85

The ASX financial share Macquarie Group Ltd (ASX: MQG) has declined 8% since 7 March 2023. It’s currently under $180 per share.

It’s unsurprising that the investment bank has suffered a fall during this short amount of time considering all of the pain relating to the global banking sector over the past month.

First, there was the collapse of venture-tech-focused bank Silicon Valley Bank (SVB) which suffered from massive withdrawals of customer deposits, leading to the bank selling bonds at a loss. Then Credit Suisse had to be taken over by UBS.

But, a key question is whether the business will be able to generate pleasing returns from here. No one can say what the future shareholder returns are going to be, but I’m going to outline why the ASX financial share can perform for investors from here.

Dividends

I think that capital growth will generate the majority of the returns for shareholders because I expect that Macquarie will be able to generate long-term earnings growth. This will help push the Macquarie share price higher.

But, the dividends from Macquarie can help some of the returns and provide cash benefits during this period of volatility.

Excluding the effects of franking credits, over the last 12 months, Macquarie has paid dividends totalling $6.50 which is a dividend yield of 3.7%.

That dividend is expected to grow in the coming years.

In FY24 the dividend is expected to rise to $6.80 per share and then in FY25, the annual dividend per share could rise to $7.20 per share, according to Commsec.

In other words, by FY25, Macquarie could be paying an annual dividend share of 4.1%. I think that the dividend can continue to rise from here.

Long-term earnings growth

One of the biggest advantages of Macquarie Group Ltd (ASX: MQG) compared to a bank like Commonwealth Bank of Australia (ASX: CBA) is its global earnings base.

The domestically focused ASX banks generate (almost) all of their earnings from Australia and New Zealand, largely from lending.

Macquarie has a very diversified group of businesses. It does have a rapidly growing Australian banking division.

But, it also has a large asset management business, Macquarie has investment banking operations and also a commodities and global markets (CGM) business.

I think Macquarie has proven to be very effective at investing in the right places to help it grow. With its global operations, Macquarie is able to invest wherever makes the most sense for its capital.

The ASX financial share is putting money into green energy, green financing and other energy transition areas, which is a very large growth area.

Macquarie says it’s well-capitalised and conservatively positioned to handle whatever comes next. I think this can enable the business to outperform its ASX bank share peers.

Foolish takeaway

While the next 12 months could be uncertain for Macquarie’s earnings, Commsec numbers suggest that earnings per share (EPS) could rise to $13.20 in FY25. This would put the current Macquarie share price at 13 times FY25’s estimated earnings.

I think Macquarie shares can outperform the S&P/ASX 200 Index (ASX: XJO) over the longer term. However, with how large the business is, I wouldn’t expect it to achieve massive returns – so I think I’d go for other candidates to try to build a lot of wealth.

The post Could buying Macquarie shares at under $180 make me rich? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why ASX shares in 2023 are eerily similar to 2019 (and what you should do)
• Morgans says these are some of the best blue chip ASX 200 shares to buy now
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Should I use the banking crisis as an opportunity to pounce on Macquarie shares?
• Why these 3 ASX 200 shares could be leading picks for dividends and growth

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 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.

from The Motley Fool Australia https://ift.tt/0Po3Qjc

The warning “past performance is not an indicator of future performance” is heard so frequently in finance circles that most investors gloss over it without much thought.

But it’s true. 

The only thing that matters when you buy ASX shares is what the future brings, not what the stock did in the past.

When many investors see a tech stock like Aussie Broadband Ltd (ASX: ABB) sink terribly to the tune of 40% over the past year, they stay away.

But this is when bargains can be nabbed, if the business has positive prospects for future growth and earnings.

Improving the quality of its clientele

The analysts at QVG Capital, for example, revealed that they have “materially increased” their Aussie Broadband holding in the past month, despite the share price falling more than 8% in that time.

In a memo to clients, the team admitted the bread-and-butter business is actually not that alluring. 

“Aussie is best known as an NBN reseller. This is not an attractive business.”

However, the QVG analysts’ conviction comes from the side of the company that the public rarely sees.

“The thing that attracts us to Aussie is that they have been investing in their own fibre backhaul and have been growing their business and government division,” read the memo.

“Business and government customers typically have lower churn and higher average revenues while on-net fibre margins can be 3x those of reselling NBN.”

These slow-burning activities will eventually trigger a rude wake-up call for the market, the QVG team believes.

“As Aussie’s revenue and earnings mix moves more towards the higher quality business and government division, we believe a re-rating of the company is likely.”

‘The right call is to back them for the future’

On the other end of the spectrum, electrical equipment provider IPD Group Ltd (ASX: IPG) has enjoyed an incredible doubling of its share price over the past 12 months.

But this past performance doesn’t mean that its run is over.

“It has been the right call for these guys to back themselves over the last decade,” read the QVG memo.

“We believe that as they continue to take both employees and market share from the competition the right call is to back them for the future.”

The team confessed that it’s not the sort of company it normally goes for.

“[IPD] is an atypical holding for us given they don’t own their own brands and rely heavily on a key supplier,” the memo read. 

“Despite this, we see an undemanding valuation for a business that has proven they can grow revenue in the teens and produce EPS growth well in excess of that with sensible acquisitions.”

The QVG analysts like that the IPD executive team seems to be “creating a more responsive culture” to deal with foreign competitors.

“We also like that their main OEM supplier is severely underpenetrated in Australia relative to the share they have around the globe.”

The post ‘Rerating likely’: 2 ASX shares to buy before they take off appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ’20-fold increase’: 3 ASX shares that’ll rocket sooner or later
• These 3 ASX shares just halved. I would buy one of them: experts

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 Aussie Broadband and IPD Group. The Motley Fool Australia has recommended Aussie Broadband and IPD Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Lo1aBS0

With the rise of electric vehicles and the net zero environmental movement, lithium has become a hot commodity for investors the past few years.

The element is a crucial ingredient in high-powered batteries, so investors were climbing over each other to get their hands on any S&P/ASX 200 Index (ASX: XJO) shares involved in producing it.

However, the past six months have seen a setback to its meteoric rise.

eToro market analyst Josh Gilbert explained a policy change in China had altered the market dynamics in recent months.

“Lithium prices have fallen significantly from their peak, down more than 50% since their record high in November 2022,” he said.

“After years of subsidies to battery manufacturers and granting cash rewards to new electric vehicle purchases, China has now halted incentives for the new energy auto sector, which has translated into a decline in demand for battery inputs.”

Increasing production to cancel out lower prices

The sinking commodity prices have understandably led to a sell-off of lithium mining stocks.

“Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) [are] down more than 20% in the last six months.”

In fact, the Pilbara share price is down more than 33% over the past six months, while Core Lithium has shaved 26% off its market capitalisation.

However, Gilbert reckons both these companies have strategies to counter the lower lithium prices.

“Both are braced for lower prices… and have continued increasing production, helping offset lower prices,” he said.

“Pilbara plans to increase production by 17% this year, with a target of doubling production by 2026.”

Lithium demand is a long-term story

Besides, investors buying into lithium producers need to take a long-term view, according to Gilbert.

“Electric vehicle adoption has really only just begun and has a long runway, with lithium demand only set to increase in the years ahead,” he said.

“According to Bloomberg, lithium-ion battery demand is expected to more than double in 2023 from 2020 levels, whilst EV sales look set to increase by more than 30% in 2023.”

Consequently, electric car makers are relishing the lower lithium prices.

“Tesla Inc (NASDAQ: TSLA)’s Q1 deliveries were stronger than expected after price cuts but attention quickly turned to its impressive margins that would likely be affected.”

“These falling lithium prices should help to support margin pain – not just for Tesla but also for China’s EV makers.”

Funnily enough, lower lithium prices could turn out to be a positive in the long run.

“Lower prices across the EV industry could also be a key catalyst to support faster EV adoption, translating into further demand for lithium.”

The post 50% fall: Are ASX 200 lithium shares a bargain buy right now? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares this week
• Buy Pilbara Minerals and these ASX growth shares in April: experts
• Here’s why the Novonix share price crashed 19% in March
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why did the Pilbara Minerals share price just tumble 5%?

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 Tesla. 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.

from The Motley Fool Australia https://ift.tt/4xmGcYF

The last 14 months have been pretty terrible for most S&P/ASX 200 Index (ASX: XJO) shares, but mining has been an exception.

Despite this, some investors shy away from resources stocks.

For many, this aversion is due to their cyclical nature. 

Mining shares can swing wildly depending on commodity prices. They require careful monitoring so investors don’t end up mistiming their entry and exit.

But if you still fancy exposure to a sector that carried the Australian market for much of 2022, there is a less volatile way to do so.

Plenty of new work and a jettison of underperformer

Mining services companies provide outsourced labour and equipment to those businesses that actually own the mines.

The stocks for these companies could potentially be more stable than the mining companies themselves, as they’re not dependent on the popularity of any one commodity.

The team at Celeste Funds Management recently pointed out how it’s backing two such companies.

“Monadelphous Group Ltd (ASX: MND) rose 6.6% in March,” its memo to clients read.

“The company announced $125 million of new contracts and contract extensions with work across the lithium, iron ore and LNG sectors in WA, bringing total contract wins in FY23 to approximately $1.1 billion.”

The company also closed its underperforming Buildtek arm, which was a Chilean construction and maintenance services business that they had a 90% stake in.

“The Chilean resources sector has been significantly impacted by COVID, which impacted Buildtek’s financial performance and significantly increased its working capital requirements.”

In the last financial year Buildtek accounted for 5% of Monadelphous’ revenue, so its closure “isn’t expected to have a material impact on net assets or FY23 earnings”.

The Monadelphous shares are 10.8% up over the past year, and are currently delivering a 3.84% dividend yield.

A huge deal with iron ore giant

Fellow mining services contractor NRW Holdings Limited (ASX: NWH) has a similar market capitalisation to Monadelphous, but its share price dropped 1.8% last month.

“During the month the company announced the acquisition of OFI Group, a specialist in electrical engineering services and integration, for $4 million,” read the Celeste memo. 

“OFI Group has an established history working with NRW’s RCR business and should enhance the capabilities of the METS division with expected FY24 revenue contribution of $40 million.” 

The analysts are also bullish on NRW due to its pipeline of work. “NRW announced two new contracts won by the METS division with Fortescue Metals Group Ltd (ASX: FMG) with a total value of $64 million.”

The NRW share price is 14.7% higher than it was 12 months ago. The stock currently pays out a mouth-watering 6.5% dividend yield.

The post Don’t like mining stocks? Buy these ASX 200 shares instead appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• 2 ASX 300 shares trading ex-dividend on Monday
• 2 compelling All Ords ASX shares to buy in March 2023: expert

Motley Fool contributor Tony Yoo has positions in Nrw. 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.

from The Motley Fool Australia https://ift.tt/Ib5LgW2

The S&P/ASX 200 Index (ASX: XJO) went into the Easter break on a disappointing note. The benchmark index fell 0.3% to 7,214.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.2% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is down 0.1%, and the NASDAQ is down 0.1%.

Oil prices tumble

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$79.83 a barrel and the Brent crude oil price is down 1% to US$84.28 a barrel. Recession and rate hike concerns appear to be weighing on prices.

Buy Eagers ahead of Bapcor: Morgans

The team at Morgans has been running the rule over the auto and autoparts industry and is telling investors to buy Eagers Automotive Ltd (ASX: APE) ahead of Bapcor Ltd (ASX: BAP). Morgans has an add rating and $15.85 price target on Eagers shares and a holding rating and $7.40 price target on Bapcor’s shares. The broker notes that electric vehicle sales have now hit 7.4% of the market and highlights that Eagers has “direct leverage to EV penetration.”

Gold price drops

It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1% to US$2,005.9 an ounce. The release of strong US jobs data appears supportive of further rate hikes.

Dividends being paid

A number of ASX 200 shares will be rewarding their shareholders with their latest dividend payments on Tuesday. This includes New Zealand based telco Chorus Ltd (ASX: CNU), integrated services company Downer EDI Ltd (ASX: DOW), administration services company Link Administration Holdings Ltd (ASX: LNK).

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Will the ASX 200 hit 7,500 again in 2023?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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

from The Motley Fool Australia https://www.fool.com.au/2023/04/11/5-things-to-watch-on-the-asx-200-on-tuesday-160/

If you would like to add some international exposure to your portfolio, then you could look at exchange traded funds (ETFs).

There are many out there that provide investors with easy access to large groups of international stocks.

For example, the two listed below collectively offer investors exposure to thousands of stocks from across the globe. Here’s why they could be top options for investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It provides investors with access to many of the best tech stocks in the Asian region. This means you’ll be buying well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent.

It has been a tough period for Asian stocks, but with China’s reopening and regulatory pressures easing, things are looking up in 2023. This could potentially make it an opportune time to invest in the region with a long term view.

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

Another ETF that could be a top option for investors is the Vanguard All-World ex-U.S. Shares Index ETF.

Vanguard highlights that this ETF brings the world to your portfolio with approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States.

In addition, the fund manager notes that it can expand a portfolio to include many sectors not well represented in Australia. The largest country allocations are Japan, China, United Kingdom, France, and Canada, with Australia accounting for approximately 5% of the exposure.

Among its holdings you’ll find a diverse group of shares such as financials (Royal Bank of Canada, AIA Group, HSBC Holdings), consumer discretionary companies (Samsung, LVMH Moet Hennessy Louis Vuitton, Sony), technology companies (Taiwan Semiconductor, Tencent), industrials (Toyota) and healthcare companies (Astra Zeneca, Roche Holdings).

The post 2 ASX ETFs to buy for global investing appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 fantastic ETFs for ASX investors to buy in April
• 2 fantastic ETFs for ASX investors to buy this month
• Down over 25% from the peak, can these 2 ASX tech ETFs deliver big returns by 2025?
• 3 high quality ETFs for ASX investors to buy after the market selloff
• 2 top ETFs for ASX growth investors to buy next week

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 recommended Betashares Capital – Asia Technology Tigers Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ef6dGP1

If you’re looking for a passive income boost, then you may want to check out the ASX dividend shares listed below.

Goldman Sachs has tipped these ASX shares to pay their shareholders big dividends this year and next. Here’s what you need to know about them:

Rio Tinto Ltd (ASX: RIO)

If you’re not averse to investing in the mining sector, then Goldman thinks Rio Tinto could be a great ASX dividend share to buy.

The broker believes the mining giant’s shares are good value compared to rivals. Particularly given its production growth, free cash flow improvement potential, and its high-quality aluminium business. It commented:

We are Buy rated on RIO and add to the CL due to: (1) compelling relative valuation vs. peers (0.9xNAV vs. BHP 1.05xNAV and FMG 1.5xNAV), (2) strong FCF and Div yield with our bullish view on iron ore, aluminium and copper prices, (3) strong production growth from iron ore and copper (+8% Cu Eq terms in 2023E, +5% in 2024E), (4) the potential for FCF/t improvement in the Pilbara in 2023 with Guida-darri and over the medium to long run driven by Rhodes Ridge, and (5) World’s highest margin low emission aluminium business.

Its analysts are forecasting fully franked dividends per share of US$5.33 in FY 2023 and then US$5.98 in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $116.31, this will mean yields of 6.9% and 7.8%, respectively.

Goldman Sachs has a buy rating and $140.40 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

If you would prefer not to invest in the mining sector, then this youth fashion retailer could be the ASX dividend share for you.

Goldman Sachs believes Universal Store is a great option due to its expansion opportunities and exposure to younger consumers. The broker expects the latter to continue spending as normal thanks to minimum wage increases and their lower exposure to rising interest rates. It explained:

We believe the young Australian consumer is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.

In respect to dividends, the broker is forecasting fully franked dividends of 27 cents in FY 2023 and 34 cents in FY 2024. Based on the latest Universal Store share price of $5.10, this equates to yields of 5.3% and 6.65%, respectively.

Goldman Sachs currently has a buy rating and $8.05 price target on its shares.

The post Buy these ASX dividend shares for a big passive income boost: Goldman Sachs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How to start building a lifelong passive income with just $5 a day: Tips and Tricks
• Why did the Rio Tinto share price outperform the ASX 200 in March?
• Why did this ASX All Ords stock just crash 68%?
• How I’d invest $20,000 to earn reliable passive income today
• Buy these ASX 200 dividend shares for passive income: analysts

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.

from The Motley Fool Australia https://ift.tt/N0zlhRQ

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) continues to be the most shorted ASX share after its short interest rose to 11.9%. Short sellers appear to believe weaker revenue margins could lead to Flight Centre falling short of expectations.
• Megaport Ltd (ASX: MP1) has seen its short interest increase to 10.3%. The sudden departure of the network as a service provider’s CEO and CFO appears to have spooked investors.
• Zip Co Ltd (ASX: ZIP) has short interest of 10.1%, which is up marginally week on week. Short sellers appear to be doubting Zip’s ability to achieve its profit targets.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.5%, which is down week on week. Short sellers aren’t giving up on this one despite recent M&A activity in the lithium industry.
• Sayona Mining Ltd (ASX: SYA) is another ASX lithium share that short sellers aren’t giving up on. Its short interest has increased to 8.8% despite it announcing the restart of the NAL project.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump to 7.8%. Short sellers don’t appear confident that this furniture retailer is performing well in the tough economic environment.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 7.3%, which is up slightly week on week. This may be due to competition and cash burn concerns.
• Breville Group Ltd (ASX: BRG) has returned to the top ten with short interest of 7.3%. The struggling housing market and the cost of living crisis may be why short sellers are targeting this appliance manufacturer.
• AMA Group Ltd (ASX: AMA) has entered the top ten with short interest of 7.25%. This may be due to the smash repairer’s extremely high level of debt.
• Brainchip Holdings Ltd (ASX: BRN) has seen its short interest remain flat at 7.2%. Despite recent share price weakness, this struggling semiconductor still has a lofty market capitalisation and little revenue.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Goldman Sachs is raving about these ASX growth shares
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why did the Sayona Mining share price tumble 13% in March?
• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Red 5, Seek, and Viva Energy shares are storming higher

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 Megaport, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, Jb Hi-Fi, Megaport, 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.

from The Motley Fool Australia https://ift.tt/BvQAhrZ

If you’re like me and have a penchant for ASX growth shares, then it could be worth checking out the two listed below.

Analysts at Goldman Sachs are very bullish on these shares and are tipping some strong gains over the next 12 months.

Here’s what the broker is saying about them:

Temple & Webster Group Ltd (ASX: TPW)

Goldman Sachs is a big fan of Australia’s leading pure-play online retailer of furniture and homewares.

Its analysts believe it could be an ASX growth share to buy thanks to its major long term market opportunity.

The broker highlights that Temple & Webster has a leadership position in a retail category that is still only in the early stages of shifting online. In addition, it believes the company is well-placed due to the category’s high barriers to entry and its specialised approach to e-commerce.

All in all, the broker is forecasting “a 21% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration.”

Goldman has a buy rating and $6.50 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX growth share that Goldman is raving about is Xero. It is a New Zealand based cloud accounting platform provider taking on the world (of accounting).

At the last count, Xero had a total of 3.3 million subscribers globally. And while this is undoubtedly a large number and underpinning huge revenues, it is still only a small slice of its market opportunity.

Goldman Sachs notes that Xero has a “compelling global growth story” thanks to it total addressable market (TAM) of ~45 million+ subscribers.

It is also worth noting that Xero recently revealed major cost cutting plans that will supercharge its earnings growth in the coming years.

Goldman Sachs has a buy rating on Xero’s shares with a $116.00 price target.

The post Why Goldman Sachs is raving about these ASX growth shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Morgans names the best ASX 200 growth shares to buy in April
• Top ASX growth shares to buy in April 2023
• ASX 200 rebounds after RBA hits pause on its rate hikes
• Morgans names 3 more of the best ASX 200 shares to buy in April
• These are the 10 most shorted ASX shares this week

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 Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JuT0qFP