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S&P/ASX 300 Index (ASX: XKO) battery stock Talga Group Ltd (ASX: TLG) is rocketing a whopping 18.2% this morning.

Its gains come on exciting news of the company’s Swedish graphite operations – designed to feed its planned battery anode manufacturing plant.

The Talga share price is launching higher to trade at $1.915 at the time of writing. Earlier today, it hit the $2.00 mark, a gain of 23.5%.

Let’s look a why the market is powering up the ASX 300 battery stock on Thursday.

What’s going on?

Shares in Talga are soaring today after the company revealed its Nunasvaara South natural graphite mine has received a major tick of approval.

The mine was granted an environmental permit, including a Natura 2000 permit, from the Swedish Land and Environment Court yesterday.

Talga managing director Mark Thompson commented on the “key approval”, saying:

[This is] a major step in Talga establishing its Swedish natural graphite anode production.

We look forward to continued engagement with all stakeholders as we progress towards mining this strategic resource for use in sustainable European battery production.

Yesterday’s court decision is subject to a three-week period in which appeals can be lodged. The company now expects the Swedish Mining Inspectorate to make a decision on its Nunasvaara South exploitation concession application.

Production from the Nunasvaara South graphite mine is intended to go to the ASX 300 company’s planned 19,500 tons per annum battery anode manufacturing plant.

The plant is subject to a separate permitting process. If all goes well, early works could kick off at the refinery site early in the second half of 2023.

Talga is currently in advanced negotiations for supply agreements with multiple European battery makers for its graphite anode products.

It’s also in discussions with several financial institutions for funding for the Vittangi Anode Project.

Talga share price outperforms ASX 300

The Talga share price has outperformed the ASX 300 in recent months.

Today’s gains included, the stock has gained 36% so far this year. Meanwhile, the index has risen 4%.

Looking further back, the battery stock has gained 19% over the last 12 months while the ASX 300 has dumped 4%.

The post Guess which ASX 300 battery stock is soaring 18% on a ‘key approval’ appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Western Mines share price is surging another 65% on Thursday
• Why has the Arafura share price just been halted?
• Analysts name 2 high yield ASX dividend shares to buy today
• What’s the forecast for the Bank of Queensland share price?
• 24% yield! Should I buy New Hope shares before they go ex-dividend?

Motley Fool contributor Brooke Cooper 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 Arafura Rare Earths Ltd (ASX: ARU) share price won’t be going anywhere on Thursday.

That’s because, this morning the rare earths developer requested that its shares be placed into a trading halt pending the release of an announcement.

Due to the Easter break, Arafura Rare Earths has asked for its shares to remain halted until Tuesday 11 April.

That’s unless it makes its announcement today. If that were to occur before the market close, the company’s shares would return to trade later this session.

What is the announcement?

It can be quite nerve-wracking when a company requests a trading halt. Will it be good news or will it be bad news?

Pleasingly, Arafura Rare Earths has provided just enough information for us to know that a positive announcement is coming. This may bode well for the Arafura share price when it returns to trade.

Here is what the company said in its request for a trading halt:

The Company is seeking a trading halt pending an announcement to the market regarding the execution of a binding offtake agreement.

An offtake agreement is an agreement between two parties for one of them to buy a portion of the other’s production.

Prior to today, the company had binding offtake agreements in place with Hyundai and Kia for 1,500 tonnes per annum (tpa) of NdPr Oxide from its Nolans Project.

In addition, it was in contract negotiations with end users in Japan and Europe for 2,375 tpa and advanced offtake discussions with end users in Europe and the United States for 2,600 tpa.  One of these parties is GE according to a recent presentation.

Investors will have to sit tight and wait for further information either later today or after Easter. But, whatever is announced, it looks likely to be great news for Arafura shareholders.

The post Why has the Arafura share price just been halted? appeared first on The Motley Fool Australia.

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More reading

• Arafura stock sell-off continues, broker tips 35% upside
• Why Atlantic Lithium, Arafura, Brainchip, and Core Lithium shares are falling
• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher
• Are Arafura shares still a buy if Tesla ditches rare earths?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for ASX dividend shares to buy, then you may want to check out the two listed below.

Both have recently been named as buys by analysts and tipped to offer big dividend yields. Here’s why they rate them highly this month:

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend share to look at is Charter Hall Retail. It is a supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company.

Citi is positive on the company, noting that it has “defensive net property income growth despite rising interest rate profile.” Another positive is that the broker highlights that “CQR’s convenience retail and convenience long WALE portfolio is effective at passing through higher inflation.”

The broker currently has a buy rating and $4.50 price target on its shares.

As for dividends, Citi is expecting the company to pay dividends of 26 cents per share in both FY 2023 and FY 2024. Based on the current Charter Hall Retail share price of $3.76, this will mean very generous 6.9% yields for investors.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32. It is one of Australia’s largest diversified miners. It produces a range of commodities including aluminium, copper, manganese, and nickel.

Morgans is positive on South32 and has an add rating and $5.60 price target on its shares.

The broker sees “attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.”

Its analysts expect this to underpin fully franked dividends per share of 17 cents in FY 2023 and 22 cents in FY 2024. Based on the current South32 share price of $4.27, this will mean yields of 4% and 5.15%, respectively.

The post Analysts name 2 high yield ASX dividend shares to buy today appeared first on The Motley Fool Australia.

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More reading

• The slimmer South32 dividend is being shelled out today. Here’s the lowdown
• 5 things to watch on the ASX 200 on Thursday
• Buying South32 shares for the dividends? Read this first
• 2 ASX 200 mining shares just upgraded by Macquarie, one with 20% upside
• Buy BHP and this ASX 200 mining share now: 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.

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The Bank of Queensland Ltd (ASX: BOQ) share price has been having a tough time again in 2023.

Since the start of the year, the regional bank’s shares have lost 6% of their value.

This means the Bank of Queensland share price is now down almost 25% since this time last year, as you can see on the chart below.

Where next for the Bank of Queensland share price?

Goldman Sachs has been running the rule over Bank of Queensland ahead of its half-year results release later this month.

And while the broker believes the Bank of Queensland share price has the potential to rise meaningfully from current levels, it isn’t confident enough to recommend it as a buy.

According to the note, the broker has retained its neutral rating with a $7.21 price target. The latter implies potential upside of 11% over the next 12 months.

Goldman is also forecasting a fully franked 7.5% dividend yield in FY 2023, making the total potential return an even more attractive 18.5%.

What did the broker say?

Goldman has retained its neutral rating on the Bank of Queensland share price due largely to its belief that the bank will underperform peers with its net interest margin (NIM). It explained:

We are Neutral rated on BOQ given: despite valuation support, we believe its NIM leverage will ultimately underperform peers and its expenses will remain under pressure given the current inflationary environment and headwinds from running legacy systems along with building its new digital bank, which we expect could somewhat offset ME Bank synergies and restructuring benefits.

What about its results?

On 20 April, Goldman expects Bank of Queensland to release its half-year results and post a 7.3% decline in cash earnings to $244 million. This is notably lower than the consensus estimate of $271 million.

The broker expects this to lead to the regional bank paying a fully franked interim dividend of 24 cents per share. Once again, this is short of the consensus estimate of 25 cents per share.

The post What’s the forecast for the Bank of Queensland share price? appeared first on The Motley Fool Australia.

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More reading

• 7 ASX dividend shares you can buy for under $10
• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?
• Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade
• Down 10% in a month, what’s going on with the Bank of Queensland share price?

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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The ASX coal share New Hope Corporation Limited (ASX: NHC) is about to go ex-dividend and then pay a very large dividend. Is it time to buy this business for passive income?

Energy prices jumped higher after the Russian invasion of Ukraine. This has helped increase New Hope’s profit, which is then being translated into bigger dividends for shareholders.

It’s not as though New Hope is paying out all of its profit as a dividend. The business is valued at such a cheap valuation that it represents a very high dividend yield.

How large is the dividend yield?

For the FY23 half-year result, New Hope’s board decided to declare that the interim dividend would be 40 cents per share. That was an interim dividend of 30 cents per share and a special dividend of 10 cents per share. The total dividend of 40 cents per share was an increase of 33% year over year.

This dividend was funded by a 95% increase in the earnings per share (EPS) to 77.5 cents. This means the dividend payout ratio is only 51.6% of the profit.

In terms of the dividend yield, the 40 cents per share represents a grossed-up dividend yield of 9.5% because it’s fully franked. Excluding the franking credits effect, the cash dividend yield is 6.7%.

The ex-dividend date is 17 April 2023, while the payment date is 3 May 2023. Investors still have a bit of time to grab shares, if they want to.

Is the New Hope share price a buy?

I think investors need to be careful about the idea of investing in a business for a dividend yield when there’s a danger that the New Hope share price could fall and offset a lot, or all, of the dividend income received.

New Hope’s share price has held onto most of the gains as energy prices remain high enough for the company to keep making a lot of profit. We just don’t know how long energy prices are going to stay as high as they are.

According to Commsec, New Hope shares are only valued at less than 5 times FY23’s estimated earnings with a potential grossed-up dividend yield of 23.8%, which is almost 24% in the space of just over half a year (with the payment of this dividend and the FY23 final dividend).

One of the tricky things is that coal is coming under increasing pressure in the Western world and a lot of investors don’t want any exposure to coal miners. I don’t think it’d seem so cheap without that ESG investing exclusion.

For me, while the dividend yield is high, I don’t think it’s worth buying today because the New Hope share price has already shot higher. I prefer to buy cyclical businesses when they’re at a low point. I would also prefer to invest in a business that has a positive long-term growth outlook in terms of demand.

New Hope share price snapshot

The coal miner has gone up by around 3% since the start of the year.

The post 24% yield! Should I buy New Hope shares before they go ex-dividend? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Directors have bought more than $1.6m of New Hope shares in a week. Should you buy?
• Passive income: Broker says buy this ASX 200 share for an 18% dividend yield
• 3 dividend stocks with the biggest ASX 200 yields. Time to buy?
• How I’d invest $20k in ASX 200 shares to earn a second income of $140 a month

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It is a good day to be a South32 Ltd (ASX: S32) shareholder.

That’s because today is the day that the mining giant will be rewarding them with a dividend payment.

The South32 dividend

In February, South32 released its half-year results for the six months ended 31 December.

Unfortunately, it wasn’t a great six months for the miner due to weaker commodity prices and inflationary pressures on costs.

This saw South32 report an 8% decline in revenue to US$3.7 billion and a sizeable 27% reduction in its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to US$1.36 billion.

As you might expect, this had an impact on its interim dividend. The South32 board elected to cut its dividend by almost 44% to 4.9 US cents per share. This equates to 7.3 Australian cents at current exchange rates.

And based on the current South32 share price of $4.27, this represents a 1.7% dividend yield.

What’s next?

The good news is that analysts are expecting the South32 dividend to recover strongly in the coming years.

For example, according to a note out of Citi, its analysts are forecasting fully franked dividends per share of 27 cents in FY 2023, 32 cents in FY 2024, and 35 cents in FY 2025. This will mean yields of 6.3%, 7.5%, and 8.2%, respectively.

In addition, Citi believes there’s plenty of room for the South32 share price to push higher from current levels.

Its analysts have a buy rating and $5.05 price target on them. This implies potential upside of 18% for investors over the next 12 months.

All in all, this could make South32 a top option for income investors that are looking for exposure to the mining sector.

The post The slimmer South32 dividend is being shelled out today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Buying South32 shares for the dividends? Read this first
• 2 ASX 200 mining shares just upgraded by Macquarie, one with 20% upside
• Buy BHP and this ASX 200 mining share now: analysts
• Analysts say these ASX dividend shares can boost your passive income

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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Analysts at Liberum Capital have listed ASX lithium stock Atlantic Lithium Ltd (ASX: A11) among the resources shares they are positive about for the future.

The Atlantic Lithium share price has dropped nearly 13% in the year to date. In Wednesday’s trade, the company’s share price finished flat at 54 cents.

Let’s take a look at the outlook for this ASX lithium stock.

What’s ahead?

Atlantic Lithium is exploring lithium at the Ewoyaa project in Ghana, West Africa. The company is aiming to take the project to production. Ewoyaa is funded via a deal with Piedmont Lithium Inc (ASX: PLL).

Atlantic Lithium says it is aiming to produce a “sustainable lithium supply” to support the global transition to a carbon-neutral future.

Recently, analysts at Liberum Capital named the share on its “preferred list”, the Australian Financial Review reported.

Among multiple global resources companies named by Liberum, Emmerson Resources Ltd (ASX: ERM) also made the cut.

However, among its “least preferred shares” were BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

Commenting on the commodities sector, Liberum said:

We expect most commodity prices to slide from their post-lockdown reflation highs towards fundamentally supported levels.

General demand growth across metals-energy steel remains broadly intact – and likely to remain so this year. Supply growth continues to slow, in response to the collapse in the sector’s capex cycle.

On Wednesday, Atlantic released an investor presentation to the market. Atlantic’s mineral resource estimate at the Ewoyaa mine is 35.3 Mt at 1.25% lithium oxide.

The company has a cash balance of $19.1 million as of 31 December.

Share price snapshot

The Atlantic Lithium share price has slid nearly 7% in the last 12 months. However, in the past week, it has climbed nearly 15%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has descended about 5% in the past year.

This ASX lithium stock has a market capitalisation of about $327 million based on its last closing price.

The post Here’s a top ASX lithium stock pick from a ‘commodity bear’ appeared first on The Motley Fool Australia.

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More reading

• Why Atlantic Lithium, Pushpay, St Barbara, and Temple & Webster shares are rising
• Guess which ASX lithium share just rebounded 15%
• Why Atlantic Lithium, Life360, Neuren, and Whitehaven Coal shares are charging higher
• Why Atlantic Lithium, Arafura, Brainchip, and Core Lithium shares are falling
• Why Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://www.fool.com.au/2023/04/06/heres-a-top-asx-lithium-stock-pick-from-a-commodity-bear/

Do you want a passive income boost? If you do, then the ASX dividend shares listed below that brokers rate as a buy could be the way to do it.

Here’s why these could be dividend shares to buy now:

Pilbara Minerals Ltd (ASX: PLS)

The first ASX dividend share that could be a buy is Pilbara Minerals.

This lithium miner has been named as a buy by analysts at Macquarie, who remain positive on the company despite recent weakness to spot lithium prices.

In fact, the broker is expecting Pilbara Minerals’ earnings to be strong enough to underpin some big dividends. It is forecasting fully franked dividends per share of 41 cents in FY 2023 and 30 cents in FY 2024. Based on the latest Pilbara Minerals share price of $3.73, this equates to yields of 11% and 8%, respectively.

Macquarie also sees huge upside for the company’s shares with its outperform rating and $7.70 price target.

Transurban Group (ASX: TCL)

Another ASX dividend share for income investors to consider is Transurban.

Transurban is a leading toll road operator with a portfolio of important roads in Australia and North America, as well as a significant project pipeline.

After a tough time during the pandemic, Transurban’s road are booming again. The company revealed that during the first half, it achieved record traffic volumes with average daily traffic (ADT) exceeding 2.5 million trips for the first time in November.

Citi is expecting more of the same in the second half and has put a buy rating and $16.00 price target on its shares.

In addition, the broker is forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $14.56, this will mean yields of 4% and 4.1%, respectively.

The post Buy Pilbara Minerals and this ASX dividend share: analysts appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why are ASX 200 lithium shares having such a miserable week?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why was the Pilbara Minerals share price sold off in March?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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The ASX share market can be a great place to find investments that can pay attractive passive income as dividends.

Term deposits are paying a much stronger interest rate these days, so I think ASX dividend shares need to pay a very healthy starting dividend yield to be attractive.

But keep in mind that dividends are not guaranteed. Shareholder payments can be cut and projections are just educated guesses.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of Australia’s largest furniture retailers, with a national store network. It also recently acquired competitor Plush. The company has plans to grow profit by increasing its store count and growing online sales.

The ASX retail share trades on a relatively low price/earnings (p/e) ratio, which means that it trades on a low multiple of its earnings compared to other businesses.

According to Commsec, Nick Scali could pay an annual dividend per share of 71.8 cents, which translates into a grossed-up dividend yield of 11%.

However, be aware that the business is expected to reduce its dividend in FY24 as demand for sofas falls. Even so, the projected grossed-up dividend yield is still a massive 8.7%. That’s still a lot of passive income.

GQG Partners Inc (ASX: GQG)

GQG Partners is a US-based fund manager. Indeed, it’s one of the largest fund managers on the ASX.

Its investment style is resonating with investors as it continues to see inflows of funds, despite all of the market volatility.

The ASX share has committed to pay 90% of its distributable earnings out as a dividend to shareholders. It pays a quarterly dividend, which is useful for cash flow purposes. It’s expanding its geographic presence, which is also expanding its potential growth. Canada and Australia are two of these growth markets.

Commsec numbers suggest that GQG is going to pay an annual dividend per share of 11.8 cents in FY23, which equates to a dividend yield of 8.5%.

It could then pay a dividend of 13.5 cents in FY24, which would be a dividend yield of 9.7%.

Centuria Industrial REIT (ASX: CIP)

This is one of the larger real estate investment trusts (REITs) on the ASX. It’s a pure play on quality industrial properties in Australia, which are predominately located on the east coast of Australia in metropolitan areas.

It has tried to invest in places where there’s high demand for industrial properties, which can lead to good rental growth and longer-term capital growth (excluding the impacts of interest rates).

The ASX share is expected to pay a distribution per security of 16 cents in FY23, which would be a distribution yield of just under 5.3%.

The distribution could then grow slightly in FY24 to 16.1 cents per security, which would be a distribution yield of slightly above 5.3%.

The post 3 big dividend-paying ASX shares for 2023 appeared first on The Motley Fool Australia.

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More reading

• These are the best ASX sectors to invest your money into this quarter: Morgans
• Top ASX dividend shares to buy in April 2023
• 7 ASX dividend shares you can buy for under $10
• 5 things to watch on the ASX 200 on Thursday
• 8 ASX All Ords shares trading ex-dividend this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I don’t know if you’ve realised, but there are a lot of ASX shares.

In fact, there are more than 2,000 of them all seeking to get their hands on your money, according to finance expert Bob Kohut.

“Selecting the best ASX stocks from such a large pool can be a formidable challenge,” Kohut told The Bull.

Even the qualifier “best” is also problematic, although Kohut reckons there is a universal quality that it could refer to.

“‘Best’ is a subjective term, but all investors can agree that there is one standard that makes an ASX stock a potential best buy: profit growth.”

Considering the difficulties in choosing stocks to buy from such a massive pool and the criteria for selection, investors might turn to some expert opinion.

But then the sheer diversity of views among that community is also confusing. An S&P/ASX 200 Index (ASX: XJO) stock that’s gold to one could be rubbish to another.

To combat all these concerns, Kohut set about looking for the best ASX shares to buy according to the collective opinion of the analyst population.

Here are three he came up with after dissecting the buy-hold-sell surveys:

This big company does make big moves

Healthcare giant CSL Limited (ASX: CSL) is currently “a strong contender for a spot on any best ASX shares to buy list”.

“Two analysts have a strong buy recommendation, seven have a buy recommendation, with one at hold and one at underperform,” said Kohut.

“Analysts at Citi and Morgan Stanley both see double-digit growth for the share price – 22% out of Citi and 19% from Morgan Stanley.”

The biotech behemoth continues to defy conventional wisdom that “big companies don’t make big moves”.

“The market for CSL’s blood plasma treatments and influenza vaccines has multiple tailwinds propelling the stock that other large cap stocks can only dream of,” said Kohut.

“The company invests heavily in R&D (research and development), with multiple non-plasma products in its pipeline to promote growth.”

Fixing ‘life’s essentials’ while competitor is removed

Another health company, Resmed CDI (ASX: RMD), makes its living providing equipment to assist “two of life’s essential functions – breathing and sleeping”.

“British journal The Lancet Respiratory Medicine reported [a] startling estimate of one billion people between the ages of 30 and 69 affected by obstructive sleep apnoea, suggesting that the condition is both ‘under-recognised and underdiagnosed’.”

However, ageing, obesity, and growing life expectancies are not ResMed’s only tailwinds.

“ResMed’s primary competitor – Koninklijke Philips NV (AMS: PHIA) Respironics – is in the midst of a product recall.”

Kohut added that both ResMed and CSL are considered “inflation proof”.

“Both have high-demand products with the power to raise prices without cutting into demand, as Medicare and private insurance are the payers, not the end consumer.”

Cash burner becomes profit maker

The third pick, which is in a vastly different business, is data centre operator NextDC Ltd (ASX: NXT).

After taking a hammering during the 2022 tech sell-off, the stock has risen almost 22% so far this year.

“The company posted losses in FY2019, FY2020 and FY2021 before turning profitable in FY2022, while increasing revenue in each year.”

Kohut noted Goldman Sachs recently added the stock to its conviction buy list.

“Four of the 10 analysts covering the company have strong buy recommendations, and the remaining six recommending investors buy shares of NextDC,” he said.

“Not a single analyst has a hold, underperform or sell recommendation.”

The post The broker community’s 3 best ASX 200 shares to buy for 2023 appeared first on The Motley Fool Australia.

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More reading

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• The record interim CSL dividend is being paid today. How much is it?
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Motley Fool contributor Tony Yoo has positions in CSL and ResMed. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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