Tag: Motley Fool

Telstra Group Ltd (ASX: TLS) stock has been a rather disappointing investment in recent months at first glance.

At the current stock price of $3.78, Telstra is down 4.66% year to date and down 10.1% over the past 12 months.

This ASX 200 telco and blue-chip share even hit a new 52-week low of $3.73 this week.

The company is also down close to 14% from its last 52-week high of $4.46 that we saw last May.

Check all of that out for yourself below:

Telstra stock has been a constant presence on the ASX for decades and is one of the most widely-held ASX 200 shares. As such, there are no doubt more than a few investors out there who have been left disappointed with this recent performance.

That’s despite more recent wins for investors. In February, Telstra announced its third hike for its interim dividend in a row. Telstra will be paying out its interim dividend of 9 cents per share (fully franked of course) today, as it happens. That’s up from 8.5 cents this time last year and 8 cents in 2022.

Despite these hikes, investors still don’t seem placated.

So it might be a good time to ask whether Telstra stock is a buy, hold or sell today.

Telstra stock: Buy, hold or sell?

Well, more than one ASX expert seems united on this one.

Last week, my Fool colleague James looked at the buy rating that ASX broker Goldman Sachs has given Telstra. Goldman named the telco as a ‘buy’, and gave Telstra shares a 12-month share price target of $4.55. That would obviously result in some huge gains for investors if realised.

Goldman named Telstra’s “low risk earnings (and dividend) growth… underpinned through its mobile business” as the primary reason behind its bullish outlook. It has also pencilled in further dividend pay rises every financial year until FY2026.

But Goldman isn’t the only Telstra bull out there right now. Earlier this month, we also took stock of what another ASX broker in Bell Potter thinks about Telstra shares.

Bell Potter stated that Telstra stock is “starting to look reasonable value”, and as such, upgraded the telco from a hold to a buy. That came alongside a share price target of $4.25.

This broker is also expecting rising dividends from Telstra over the next few years.

So that’s what a pair of ASX experts think about Telstra stock today. No doubt shareholders won’t be complaining about these assessments. But, as always, we’ll have to wait and see who’s on the money.

The post Is Telstra stock a buy, sell, or hold? 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

• 5 things to watch on the ASX 200 on Thursday
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• Qantas or Telstra share price: Which will climb higher in 2024?
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• Why Telstra and these ASX 300 stocks just hit 52-week lows

Motley Fool contributor Sebastian Bowen has positions in Telstra 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Ksi3dPU

With the ASX 200 index likely to hit a record high on Thursday, you would be forgiven to think that there are no bargain ASX 200 stocks currently trading on the bourse.

However, that may not be the case according to analysts at Goldman Sachs.

The broker has identified one ASX 200 stock that could be well and truly in the bargain bin right now and have major upside potential.

That stock is Australia’s flag carrier airline Qantas Airways Limited (ASX: QAN).

Is Qantas a bargain ASX 200 stock?

As with most airlines, Qantas had an incredibly tough time during the pandemic.

But it certainly didn’t waste the crisis. It worked hard to cut costs materially and make its operations leaner and more profitable.

So much so, the company was able to deliver a huge profit in FY 2023 and then followed this up with another bumper profit during the first half of FY 2024.

However, despite this structurally improved profitability, Qantas shares are still trading on a lower valuation than pre-COVID times.

This hasn’t gone unnoticed by analysts at Goldman Sachs, who believe the market is seriously undervaluing this ASX 200 stock, potentially making it a real bargain at current levels. The broker recently commented:

Notwithstanding a decline in unit revenues (and group capacity still at 95% of pre-COVID) our estimated FY24e EPS sits 52% above pre-COVID levels. Despite this, QAN’s market capitalisation and EV is 17% and 24% lower than pre-COVID levels. We acknowledge broader macro uncertainty at this point in the cycle, but believe the current share price does not reflect the group’s improved earnings capacity.

Big returns to come?

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

Based on its current share price of $5.41, this implies potential upside of almost 50% for investors.

The broker concludes:

[W]e believe QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity. We continue to see upside associated with substantially improved MT earnings capacity.

The post Is Qantas a bargain ASX 200 stock today? 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

• Where to invest $8,000 in April 2024
• Qantas or Telstra share price: Which will climb higher in 2024?
• A ‘once in a lifetime’ opportunity for Qantas shares?
• Buy these ASX 200 blue chip shares for big returns
• $2.1 million! Who are the highest paid ASX 200 directors?

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.

from The Motley Fool Australia https://ift.tt/OHEy8UM

If you’re not keen on stock picking but want to build an income portfolio, then ASX exchange-traded funds (ETFs) could be the answer.

Instead of having to pick individual stocks to buy, ETFs allow investors to snap up large groups of income shares in one fell swoop.

This can provide near instant diversification for a portfolio, reducing risk and removing the stress of deciding which shares to buy.

But which ASX ETFs would be good for income? Two quality options to consider buying are listed below:

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

The BetaShares S&P 500 Yield Maximiser could be worth a closer look.

This income ETF has been designed to squeeze out as much income as possible from the top 500 companies listed on Wall Street. This includes giants such as Apple, Johnson & Johnson, Microsoft, and Walmart.

It does this through a covered call strategy, which aims to earn quarterly income that is significantly greater than the dividend yield of the underlying share portfolio over the medium term.

At the last count, its units were trading with a 12-month trailing 4.8% distribution yield.

Vanguard Australian Shares Index ETF (ASX: VHY)

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

This popular fund offers investors low-cost exposure to a group of 72 ASX shares that have higher forecast dividends relative to the market average (based on broker research).

But don’t worry, you won’t just be buying miners and banks such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA). The Vanguard Australian Shares Index ETF restricts the proportion invested in any one industry to 40% and 10% for any one company.

This ensures that investors have a nicely balanced group of holdings and aren’t overexposed to any one side of the market. In addition, Australian Real Estate Investment Trusts are excluded from the index, which means there’s no material exposure to the property market.

The ETF currently trades with a trailing dividend yield of 5.2%.

The post Why these ASX income ETFs could be top options 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 next distribution dates for your Vanguard ETFs
• How much could a $300,000 ASX share portfolio pay in dividends?
• 3 high-yield ASX dividend shares that pay cash every quarter
• Buy these ASX ETFs for a second income
• Buy these ASX ETFs for easy 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 positions in and has recommended Apple, Microsoft, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Apple and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9UB0FSa

Woolworths Group Ltd (ASX: WOW) is a solid business, but it’s not my top pick in the food industry. Instead, I went for the S&P/ASX 200 Index (ASX: XJO) stock Metcash Ltd (ASX: MTS).

I’m not saying that Metcash’s food operations are stronger or that it has a better growth outlook than Woolworths. But, the overall Metcash company seems more compelling to me.

Three pillars

There are three main segments to the Metcash business – food, liquor and hardware.

The food business is best known for supplying over 1,600 independent stores across Australia, with IGA and Foodland supermarkets being two of the main customers.

The ASX 200 stock is the largest supplier of liquor to independently owned liquor retailers. It supplies Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

Metcash’s third pillar is hardware. It owns a number of brands and businesses including Mitre 10, Home Timber & Hardware and Total Tools. It supports independent operators under the small format convenience banners Thrifty-Link Hardware and True Value Hardware, as well as a number of unbannered independent operators.

Acquisitions

A few weeks ago, the company announced it had entered into binding agreements for some acquisitions.

One of the businesses it’s buying is Superior Food, a leading Australian foodservice distribution business, which it described as a logical extension of the food strategy, partly because it can benefit from and enhance Metcash’s core food wholesale and distribution capabilities. Foodservice is described as a large and growing market.

The second acquisition was Bianco Construction Supplies, a construction and industrial supplies business servicing South Australia and the Northern Territory.

Thirdly, it said it was going to buy Alpine Truss, one of the largest frame and truss operators in Australia.

Metcash is expecting to achieve annualised synergies of around $19 million and add to Metcash’s margins.

Why I decided to invest in the ASX 200 stock

There are three main things that attracted me to Metcash.

First, the strength and profitability of its hardware business are impressive in my opinion. When interest rates start coming down and the outlook for the economy improves, I think the profitability of the business can grow. The inclusion of Bianco and Alpine Truss is a useful boost for the ASX 200 stock as well.

Second, it has a much lower price/earnings (P/E) ratio than other ASX shares. According to Commsec, Metcash shares are valued at 14 times FY24’s estimated earnings and 13 times FY25’s estimated earnings. In comparison, Woolworths shares are valued at 23 times FY24’s estimated earnings and Wesfarmers Ltd (ASX: WES) – owner of Bunnings – is priced at 30 times FY24’s estimated earnings.

I think Metcash is priced attractively for its hardware’s growth outlook for the long term. Third, the dividend yield is appealing. Metcash targets a dividend payout ratio of 70% of underlying net profit after tax (NPAT). The FY24 grossed-up dividend yield is projected to be 7.3%.

The post Why I bought this ASX 200 stock instead of Woolworths 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

• Dividend yields up to 8%! Which of these cheap ASX 300 shares should I buy?
• Top ASX shares to buy instead of a term deposit in March 2024
• Where I’d invest $30,000 in ASX shares for passive income
• Metcash share price hits 52-week high on broker upgrade: Time to buy?
• Metcash shares push higher on trading update

Motley Fool contributor Tristan Harrison has positions in Metcash. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Metcash. 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/Ausx3oX

If you’re an income investor looking for dividend shares to buy for your portfolio, then you may want to read on.

That’s because named below are two top ASX dividend shares that brokers are recommending as buys.

Here’s what you need to know about these income options:

ANZ Group Holdings Ltd (ASX: ANZ)

The team at Ord Minnett thinks this banking giant could be an ASX dividend share to buy despite its strong run in recent months.

The broker is feeling positive on the bank partly due to its proposed acquisition of Suncorp Bank. It notes that the deal is nearing completion after the Australian Competition Tribunal overturned the ACCC’s decision to block it. Ord Minnett believes the acquisition will add scale to areas where ANZ currently trails the other big four banks.

Ord Minnett currently has an accumulate rating and $31.00 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of $1.62 in FY 2024 and $1.65 in FY 2025. Based on the current ANZ share price of $29.26, this will mean dividend yields of 5.5% and 5.6%, respectively.

Dexus Convenience Retail REIT (ASX: DXC)

Another ASX dividend stock that could be a buy for income investors is Dexus Convenience Retail REIT.

The team at Bell Potter thinks the convenience retail and service station property company could be a good option right now.

Its analysts note that “DXC trades at a circa 34% discount to stated NTA which we think is overly punitive for a sub-sector where there is clear price discovery, and investors for commercial real estate have a clear preference for smaller cheque size assets.”

Bell Potter has a buy rating and $3.00 price target on its shares.

In respect to income, the broker is forecasting dividends per share of 20.9 cents in FY 2024 and 20.7 cents in FY 2025. Based on its current share price of $2.73, this equates to yields of 7.7% and 7.6%, respectively.

The post Buy ANZ and this ASX dividend share 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

• Shares vs. property: How to generate $500 passive income per month
• These 5 high-quality companies are now paying a better income than CBA shares
• ANZ shares charge higher on $57.5 million class action settlement news
• Analysts say these excellent ASX income shares are buys
• Here’s the ANZ dividend forecast through to 2026

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/YlUPRfV

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.5% to 7,819.6 points.

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

ASX 200 expected to storm higher

The Australian share market looks set for a very positive session on Thursday following a great night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.5% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 has risen 0.45%, and the Nasdaq is 0.6% higher.

Oil prices flat

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices traded flat overnight. According to Bloomberg, the WTI crude oil price is steady at US$81.59 a barrel and the Brent crude oil price is flat at US$86.24 a barrel. A rise in US crude stockpiles held back oil prices.

Dividend payday

Today is a big day for dividends with billions of dollars being paid out to Aussie investors. Among the many ASX 200 shares paying their latest dividends today are giants BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

Gold price rises

It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose overnight. According to CNBC, the spot gold price is up 0.55% to US$2,211.6 an ounce. Traders were optimistically buying gold ahead of the release of US inflation data.

Westpac rated as neutral

The Westpac Banking Corp (ASX: WBC) share price is fully valued according to analysts at Goldman Sachs. This morning, the broker has responded to the bank’s technology simplification update by retaining its neutral rating with a slightly trimmed price target of $23.41. Goldman said: “WBC’s technology simplification plan has been a long time coming, and we believe it does, over time, have the potential to materially improve WBC’s relative productivity positioning.”

The post 5 things to watch on the ASX 200 on Thursday 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

• Invest $12,000 in Woodside stock and get $5,700 in passive income
• Here are the top 10 ASX 200 shares today
• Down 14% in 2024, why is the BHP share price sliding again today?
• Expert: This is where the S&P 500 is going next
• Why ASX 200 investors are celebrating today’s Aussie inflation print

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation and Woodside Energy 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uYp36an

I recently decided to sell half of my Temple & Webster Group Ltd (ASX: TPW) stock, yet I’m still optimistic about its outlook and growth potential.

This e-commerce ASX share has delivered big gains for shareholders – it’s up more than 740% in the past five years and it has climbed over 280% in the past year.

Why I sold Temple & Webster shares

I was fortunate enough to invest at the end of October 2023. Since then the Temple & Webster share price soared more than 120% – I wasn’t expecting to make that much that quickly.

In my opinion, no business is a buy at any price.

Temple & Webster is doing a lot of good things to grow its underlying value, but the size of the gain made me want to take some profit off the table.

I decided to sell half, rather than all my holding, because I still want exposure to the company. By selling half, I’d have recovered (more than) my initial investment and what’s left is pure profit.

What I still like about the ASX share

The business is growing revenue at an impressive rate, which is one of the driving factors of the rising Temple & Webster stock price, and what attracted me to the business.

Revenue rose by 23% to $254 million in the first half of FY24, and it had increased by 35% year over year in the period between 1 January 2024 to 11 February 2024.

The company is demonstrating good profit margin potential. Its HY24 earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 2.9%, at the top end of its full-year guidance of between 1% to 3%.

It aims to grow its revenue significantly in the next three to five years. I expect it can grow even more by 2030 (and beyond). The expansion into the home improvement and trade and commercial categories can help with its revenue potential.

Having an online model means it doesn’t need a store network like its competitors, reducing costs and increasing margins. Many products are shipped directly by suppliers, so it doesn’t need to hold much inventory.

If the business can keep capturing market share, then the ongoing adoption of online shopping is a powerful tailwind.

The company is expecting profit margins to grow as it scales, with particular scaling benefits relating to its fixed costs.

While I have sold half of my Temple & Webster stock, I’m hoping to buy plenty more in the future. In the meantime, I’m planning to put my sale proceeds to work in different ASX shares.

The post Why I just sold half my shares in this ASX 300 stock even though I still love it! 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

• 2 ASX blue-chip shares I’d buy with $3,000 right now
• Invest $12,000 in Woodside stock and get $5,700 in passive income
• If I’d put $5,000 in Block shares 5 months ago, here’s what I’d have now
• 1 secretly cheap ASX 200 stock I’m buying for the long run
• Here’s why I think the Resmed share price should be 18% higher

Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. 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/Y1Ll6Ac

If I had $3,000 to invest in ASX blue-chip shares, I’d go for businesses with strong operations and a good long-term outlook.

I like companies that have a good market position and are able to keep expanding their footprint.

After looking at the biggest companies on the ASX, these two are among my favourites, along with Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

Macquarie Group Ltd (ASX: MQG)

The business has four main segments: asset management, banking and financial services (BFS), commodities and global markets (CGM) and investment banking.

Macquarie generates around two-thirds of its earnings outside of the local economy, which implies the business has impressive geographic diversification.

The ASX blue-chip share has the flexibility to invest and expand in any division, wherever it sees opportunities across the world. That’s a big reason why, in my opinion, the Macquarie share price has been able to rise around 50% in the past five years.

While the short-term may not see strong operating profit growth, I think the business has a good long-term outlook. While the dividend yield isn’t huge, it can provide a useful bonus.

According to the estimates on Commsec, the Macquarie share price is valued at 17 times FY25’s estimated earnings and a partially franked dividend yield of 3.5%.

Coles Group Ltd (ASX: COL)

Coles is one of the largest supermarket businesses in Australia. We all need food, and Coles has a strong market position, including defensive earnings in my opinion.

Australia’s ongoing population growth is a useful boost for the ASX blue-chip share, as it can lead to more consumers buying from Coles.

The FY24 second half stated strongly – in the first eight weeks of the third quarter, supermarket revenue was up 4.9%, underpinned by volume growth. This growth was stronger than what Woolworths Group Ltd (ASX: WOW) achieved.

While expensive, I like that the company is investing heavily in advanced, automated warehouses which can help decrease operating costs and improve efficiencies once they’re all fully operational.

Long-term profit growth combined with a good dividend yield could be a winning combination for this ASX blue-chip share.

According to the estimates on Commsec, the Coles share price is valued at 20 times FY25’s estimated earnings.

The post 2 ASX blue-chip shares I’d buy with $3,000 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

• Here are the top five ASX 200 shares in Macquarie’s model growth portfolio
• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• 4 defensive ASX shares to own in a greedy market: Macquarie
• Buy Coles and this ASX 300 dividend share
• 2 things I’m waiting for before buying Coles shares

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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, Telstra Group, and Wesfarmers. 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/ALflCXT

It may surprise the average punter, but only $12,000 can send you on your way to receiving thousands of dollars of annual passive income.

Allow me to use reliable ASX dividend stock Woodside Energy Group Ltd (ASX: WDS) as an example.

Put a little bit on Woodside stock

Assume that you use your $12,000 to buy a batch of Woodside shares.

Currently 10 out of 17 analysts surveyed on broking platform CMC Invest reckons the ASX energy giant is a buy.

We all know past performance is never an indicator of the future. But just to demonstrate the power of compounding, let’s use the numbers we have.

Woodside shares currently hand out an excellent 7.1% fully franked dividend yield.

Then conservatively assume there will be zero capital gain in the coming years, and that the distributions are the only source of returns.

If you can keep those shares growing at 7.1% per year while adding in $400 monthly, chunky passive income is not too far away.

Then reinvest for 9 years

Nine years of that investment regime will see the nest egg grow to $79,981.

After that, instead of reinvesting the dividends, just put the cash in your bank account.

That means from that point you pocket an average of $5,678 of passive income each year.

How good is that!

The point of this hypothetical was to show how starting with just a small amount to invest can quickly grow to an income generating machine.

In reality, you will want to diversify your portfolio, rather than buy only Woodside shares.

Fortunately, there are plenty of excellent shares out there that can deliver you a 7% yield, or 7% growth — or even more.

And don’t forget, the above scenario was based on your shares not seeing any capital gains over those nine years.

If you manage the portfolio properly, that will also be unlikely.

Good luck out there.

The post Invest $12,000 in Woodside stock and get $5,700 in passive income 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

• 5 things to watch on the ASX 200 on Wednesday
• These 5 high-quality companies are now paying a better income than CBA shares
• Buy Woodside shares for a 20% gain and 4.5% dividend yield
• The ASX 200 stock that could get second time lucky
• How these ASX 200 energy shares could unexpectedly burn brighter

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

from The Motley Fool Australia https://ift.tt/XT15uU7

On Wednesday, Block Inc (ASX: SQ2) shares continued their positive run and recorded another solid gain.

The payments company’s shares rose almost 2% to $128.96.

This is just the latest in a long run of gains that have been recorded by the Afterpay and Square owner, much to the delight of its shareholders after a long period of underperformance.

In fact, things have been so good in recent months, that Block shares have reached new two-year highs multiple times in the past few weeks thanks largely to a strong performance in the final quarter of 2023.

This means that if you had invested late last year, you would be laughing all the way to the bank now.

Investing $5,000 into Block shares

To demonstrate just how well Block shares have been performing recently, let’s take a look at what a $5,000 investment five months ago would be worth now.

At the end of October, I could have picked up Block shares at a multi-year low of $60.56.

This means that for an investment of $5,026.48, I could have bought 83 units.

If we now fast-forward to today, with Block shares changing hands for $128.96, those units have a market value of ~$10,700.

That’s a return on investment of approximately $5,700 or 113% in just five months.

Can its shares keep rising?

The team at Seaport Research in the United States is feeling very positive about the company.

It recently upgraded Block’s US listed shares to a buy rating with a US$95 price target.

Based on current exchange rates, this price target works out to be approximately $145.69 for the Cash App owner’s ASX listed shares. This suggests that its shares could still rise 13% from current levels.

The post If I’d put $5,000 in Block shares 5 months ago, here’s what I’d have 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

• Why are these ASX tech shares getting smashed today?
• 4 ASX growth shares I think will benefit from interest rate cuts in 2024
• Do Block shares come with a dividend in 2024?
• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX 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 Block. The Motley Fool Australia has positions in and has recommended Block. 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/SHTfDjO