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If you’re concerned by the recent market volatility and would like to add some defensive and safe ASX 200 shares into your portfolio, then read on!

Listed below are two ASX 200 shares on the Morgans best ideas list that have defensive qualities. Here’s what the broker is saying about these shares:

Endeavour Group Ltd (ASX: EDV)

This drinks business could be an ASX 200 share to buy according to Morgans. Especially given recent share price weakness, which it believes has shifted the risk to the upside for investors. The broker currently has an add rating and $7.80 price target on its shares and expects a 3.8% dividend yield in FY 2023. It commented:

We believe the share price weakness over the past six months on the back of an uncertain regulatory environment (eg, potential introduction of cashless gaming cards in NSW) has shifted the balance of risks to the upside with EDV’s underlying business remaining strong. The company possesses a broad network of retail liquor stores/hotel venues, well-known brands (eg, Dan Murphy’s and BWS) and dominant market positions.

Wesfarmers Ltd (ASX: WES)

Another defensive ASX 200 share to consider is Wesfarmers. Morgans is bullish on the Bunnings and Kmart owner due to its strong balance sheet and focus on value. It believes the latter is supportive of growth even in the current tough economic environment. The broker currently has an add rating and $55.50 price target on its shares and is forecasting a 4% yield this year. It said:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES’s businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.

The post 2 of the best defensive and safe ASX 200 shares to buy now: broker appeared first on The Motley Fool Australia.

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More reading

• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Invested $5,000 in Wesfarmers shares 5 years ago? Here’s how much passive income you’ve earned
• Here’s how much I’d need to invest in Wesfarmers shares to generate a $150 monthly income
• Morgans names the best ASX dividend shares to buy now
• How much would I need to invest in ASX income shares to earn $500 a month?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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’d like to take advantage of recent market weakness to make some investments, but aren’t sure which shares to buy, then exchange traded funds (ETFs) could be good options.

That’s because ETFs let you invest in a large group of shares in one fell swoop. This allows you to diversify easily and spread your risk.

But which ETFs could be buys? Three that are very popular are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of the largest technology companies that have their main area of business in Asia (excluding Japan). This includes the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. BetaShares notes that these companies are revolutionising the lives of billions of people in the region.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another exciting ETF for ASX investors to look at is the BetaShares Global Cybersecurity ETF. The recent hacks of Medibank Private Ltd (ASX: MPL), Optus, and Latitude Group Holdings Ltd (ASX: LFS) demonstrate just how important cybersecurity has become for businesses. This certainly bodes well for the companies included in the HACK ETF, which are the global leaders in the field. Among the ETF’s holdings are companies including Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, Palo Alto Networks, and Splunk.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third and final ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. If you’re a Warren Buffett fan, then this ETF could be the one for you. That’s because this ETF aims to invest in a group of fairly valued companies that have sustainable competitive advantages. These are qualities that the Oracle of Omaha looks for when he invests. Among the ~50 shares included in the ETF are the likes of Adobe, Alphabet, Amazon, Boeing, Constellation Brands, Microsoft, and Walt Disney.

The post 3 high quality ETFs for ASX investors to buy after the market selloff appeared first on The Motley Fool Australia.

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More reading

• 3 reasons not investing at all could be riskier than trying to invest
• Investing as little as $25 a week could help me retire with $104,000 a year in passive income!
• 3 excellent ETFs for ASX investors to buy for the long term
• 3 ETFs for investors to buy and hold for a decade
• I’d aim for $1 million, thanks to just a few ASX shares

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 VanEck Vectors Video Gaming And eSports ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you slogging away at job after job in an effort to bolster your income? There might be a better way. I think I could begin to replace my part-time earnings with passive income by investing in ASX dividend shares.

And building passive income on the stock market doesn’t have to be a complicated – or overly risky – endeavour.

Here are three simple risk-reduction rules I would follow if I were aiming to replace my side hustle with dividend income.

3 ASX passive income rules to help you ditch your side hustle

1. Diversify

The first rule I would consider is arguably one of the most touted: diversification.

A diverse portfolio provides incomparable protection against downturns in any single sector, industry, or stock. It also provides better exposure to sectors, industries, or stocks that outperform the rest.

Indeed, research has shown the majority of the ASX’s gains come from just 4% of shares. I believe that a diverse portfolio has a better chance of being on board the market’s few major winners.

Diversifying also means an investor isn’t reliant on any one sector, industry, or stock for their passive income.

2. Consider the market’s cyclicality

I’ve said it before and I’ll say it again: past performance doesn’t indicate future performance. However, the economy (and, as an extension, the market) does operate in cycles.

Thus, my second rule is to consider the economic cycle and the impact it might have on your passive income stream.

Some ASX shares or sectors tend to outperform others when the economy is booming. On the other hand, some typically find better support during a recession. Others are resilient to both.

If an investor is particularly risk averse, they might turn to defensive ASX stocks when building passive income. Another investor with a greater risk tolerance might lean into cyclical shares for the same purpose.

3. Allocate assets strategically  

Finally, I advise passive income investors to consider where all their assets sit at any given time. Cash included.

It might be tempting to tip all your spare coins into an ASX share you feel could provide mountains of passive income.

However, having liquid funds like cash on hand in an emergency (or upon the arrival of an unexpected bill) is paramount.

With interest rates on the rise, it isn’t a bad time to allocate a little more to a ‘just in case’ savings account anyway.

The post Quit your side hustle! Here are 3 rules to build passive income on the ASX instead appeared first on The Motley Fool Australia.

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More reading

• 3 high quality ETFs for ASX investors to buy after the market selloff
• Why Domino’s, Incitec Pivot, Mincor, and New Hope shares are racing higher
• The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share?
• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and is storming higher. At the time of writing, the benchmark index is up 1.25% to 6,983.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 5% to $48.41. This appears to have been driven by a note out of Barrenjoey this morning. Its analysts believe that the pizza chain operator’s shares have dropped to an attractive level and upgraded them to an overweight rating from neutral.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up almost 4% to $3.24. Investors have been buying this industrial chemicals company’s shares after it announced an agreement for the sale of its Waggaman operation in the United States to CF Industries for A$2.5 billion. The company expects to bank after tax cash proceeds of A$1.25 billion from the sale.

Mincor Resources NL (ASX: MCR)

The Mincor share price is rocketing 42% higher to $1.47. This follows news that Twiggy Forrest’s Wyloo Metals business has made a takeover approach for the nickel producer. Wyloo has tabled a $1.40 per share offer, which values the company at $760 million. Clearly, based on its current share price, the market believes an even better offer is coming.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price has jumped 9% to $5.34. Investors have been buying this coal miner’s shares following the release of its strong half-year result. New Hope reported the doubling of its net profit after tax to $668.6 million, which allowed it to lift its interim dividend by 76% to 30 cents per share. A special 10 cents per share dividend was also declared.

The post Why Domino’s, Incitec Pivot, Mincor, and New Hope shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share?
• New Hope share price rockets 6% as half-year profits double
• This ASX 200 share is charging higher on $2.5bn asset sale news
• Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m
• Guess which ASX 200 coal share just posted a 100% profit jump

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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ASX mining share Mincor Resources NL (ASX: MCR) is soaring ahead today amid a takeover offer.

Mincor shares are exploding 42% and are currently fetching $1.478. For perspective, the S&P/ASX 200 Index (ASX: XJO) benchmark is lifting 1.3% today.

So what could be ahead for this ASX mining share?

Nickel explorer explodes more than 40%

Mincor shares are surging today after Andrew Twiggy Forrest’s privately owned Wyloo Metals launched a $760 million takeover bid for the company.

Wyloo owns 19.9% of Mincor’s shares already and is the company’s largest shareholder.

Shareholders were offered $1.40 cash per share in an announcement to the market this morning, 35% more than Mincor’s last closing price. However, Mincor’s share price is now trading higher than the offer price.

Commenting on the offer, Wyloo Metals said:

Wyloo believes that the offer represents attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.

Bank of America and Clayton Utz have been engaged by Wyloo to advise on the potential today.

What’s next?

Despite today’s takeover offer, there could be counterbids on the horizon. Where would these come from?

Nickel miner IGO Ltd (ASX: IGO) and BHP Group Ltd (ASX: BHP) could be potential bidders, the Financial Review reported today. BHP has previously held talks with Mincor about a takeover in the past, according to the publication.

BHP, via Nickel West, produces and exports nickel to global markets for use in electric vehicle (EV) batteries. The mining giant is already proposing to take over 100% of Oz Minerals Ltd (ASX: OZL) shares via a scheme of arrangement. Mincor provides BHP with nickel under an agreement.

IGO is a nickel producer in Western Australia with multiple operations in production including Nova and Forrestania. The company also explores copper, lithium and rare earth elements. In 2022, the company acquired nickel miner Western Areas via a scheme of arrangement.

In a presentation today, IGO said it is “committed to downstream integration in both nickel and lithium”.

IGO said new nickel supply will be needed from 2026 as “EV demand exceeds supply”.

Mincor share price snapshot

The Mincor Resources share price descended 29% in the last year and nearly 2% year to date.

This ASX mining share now has a market capitalisation of nearly $792 million based on the current share price.

The post The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share? appeared first on The Motley Fool Australia.

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More reading

• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m
• Here’s how much I’d need to invest in BHP shares to generate a $250 monthly income
• Could buying BHP shares under $44 make me rich?
• Is it time to buy ASX 200 iron ore shares right now?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Bank of America. 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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By now, most ASX investors would be familiar with the runs that most ASX lithium shares have been on over the past year or two. Although the past few weeks have cruelled these companies’ share prices somewhat, the fact remains that long-term investors are still sitting on some tidy profits. 

Take the ASX 200’s largest lithium share, Pilbara Minerals Ltd (ASX: PLS). Yes, Pilbara shares have fallen more than 30% over the past two months or so, going from over $5 a share to the $3.52 we see today.

But this company still remains up 23% over the past 12 months, and up by an extraordinary 2,250% over the past three years:

It’s a similar story with Core Lithium Ltd (ASX: CXO), Sayona Mining Ltd (ASX: SYA), Mineral Resources Limited (ASX: MIN), Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE). To varying degrees though, of course.

For example, since the start of 2021, Sayona shares have gained an eye-watering 2,000%, rising from 1 cent per share to the 21 cents per share the company is currently going for. But Allkem shares have risen by ‘only’ 130% or so over the same period, going from $4.47 to the $10.28 we see today.

But after the jitters of the past few weeks, many investors might be getting spooked and tempted to take their profits off the table. So which ASX lithium shares are still worth holding today?

Well, one ASX broker has given its answer to that question.

Broker UBS names its favourite ASX lithium shares

As reported in the Australian Financial Review (AFR) today, ASX broker UBS is predicting a difficult time for lithium shares going forward.

UBS reckons that new lithium supply coming online from both China and Latin America could see the supply of the future-facing metal double between 2022 and 2025.

As anyone who’s studied economics would know, increased supply usually leads to lower prices. And that’s not good news for the lithium companies who sell this industrial metal.

But don’t panic, not all is lost, according to UBS. The broker still maintains a buy rating on several ASX lithium shares. That’s due to an expectation that “the recent collapse in lithium prices may have bottomed out”.

So which lithium shares does the broker rate?

Well, it has maintained buy ratings on Allkem, Mineral Resources, and Liontown Resources. That’s in addition to IGO Ltd (ASX: IGO) and Wesfarmers Ltd (ASX: WES).

Wesfarmers is not a pure-play lithium company. But the industrial and retailing conglomerate has increased its exposure to lithium in recent years.

Meanwhile, UBS has given Pilbara Minerals shares a neutral rating, in contrast to the shares named above.

So this might come as some comfort for ASX lithium investors today. But let’s see what the next few months and years bring to this popular corner of the ASX.

The post These ASX lithium shares are a buy despite explosive supply forecast: UBS appeared first on The Motley Fool Australia.

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More reading

• Buy Pilbara Minerals and this high yield ASX dividend share: analysts
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Buy these ASX growth shares this week: experts
• Leading brokers name 3 ASX shares to buy today
• Invested $5,000 in Wesfarmers shares 5 years ago? Here’s how much passive income you’ve earned

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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 S&P/ASX 200 Index (ASX: XJO) has returned to form on Tuesday and is storming higher. In afternoon trade, the benchmark index is up 1.3% to 6,987.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 2% to $5.81. Concerns over tough trading conditions in China may have been weighing on its shares. And with the infant formula company’s on-market share buyback now complete, shareholders can’t rely on that to support its share price in the near term.

Accent Group Ltd (ASX: AX1)

The Accent share price is down 4% to $2.17. This is despite there being no news out of the footwear and fashion retailer today. However, analysts at Morgans have reiterated their hold rating and $2.30 price target on its shares this morning. The broker commented: “Since the result, we have become a little more cautious on the outlook for near term consumer spending in the footwear category.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2% to $11.60. This appears to have been driven by profit taking after some strong gains in recent sessions. Thanks to a strong rise by the gold price, Northern Star’s shares have risen almost 12% since the start of the month.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is down 5% to $3.94. This follows the release of a business update from the almond producer. This morning, management revealed that its 2023 almond crop volume is expected to be lower than initially forecast. Select Harvests also revealed that its banking facility re-negotiations have progressed and should not be affected by this news.

The post Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Breaker, Healius, Northern Star, and Tietto Minerals shares are charging higher
• ASX 200 gold shares are starting the week with a bang. Here’s why
• A2 Milk share price slides amid $139 million buyback completion
• 5 things to watch on the ASX 200 on Monday

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 A2 Milk and Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) investors beware.

The UBS bailout and takeover of Credit Suisse engineered by the Swiss government is an anomaly.

The deal, which favours the defunct bank’s shareholders over its bondholders, has investors wondering if the law of the jungle now applies to their portfolios, rather than long-held market laws.

ASX 200 investors would line up behind bondholders in case of bankruptcies

If an ASX 200 company were to go bankrupt, its shareholders would be last in line to reclaim any remaining assets.

A long-held market rule is that corporate bondholders, while potentially still losing some or all of their investment if a company they’ve lent money to goes insolvent, get first crack at those remaining assets.

But that’s not what’s happening with Credit Suisse.

As we reported yesterday, UBS will acquire Credit Suisse in an all-share transaction worth about CHF3 billion (AU$4.8 billion) in a deal backstopped by the Swiss government and Swiss central bank.

Credit Suisse stock investors will get one UBS share for every 22.48 Credit Suisse shares they own.

But the bank’s Additional Tier 1 bondholders will get nothing, with some CHF16 billion worth of Credit Suisse bonds likely to become worthless.

Opposition to UBS acquisition of Credit Suisse rising

The Swiss government’s solution to the Credit Suisse crisis, hammered out over the weekend, isn’t sitting well with regulators and central bankers from other nations.

The Bank of England (BoE) sounded off on the issues, saying shareholders should bear any losses ahead of AT1 bondholders.

The Swiss solution is not meant to be the case.

And, as would likely be the situation with ASX 200 shares, it won’t be the case if a similar scenario arises in the United Kingdom.

“Holders of such instruments should expect to be exposed to losses in resolution or insolvency in the order of their positions in this hierarchy,” the BoE said (courtesy of Reuters).

The European Central Bank (ECB) also waded into the controversy.

According to the ECB (quoted by The Australian Financial Review):

Common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions [of the ECB] … in crisis interventions.

Among the concerns raised by analysts is that the Swiss government’s unconventional solution could make it harder for banks (potentially including ASX 200 banks) to acquire funding at a time when the global financial sector is reeling.

According to investment director at abrdn Plc Luke Hickmore (quoted by Bloomberg):

The AT1 market will be shut now for new issuance for a while. We will all be parsing which securities in AT1 space have a similar trigger to CS’s and which don’t, which banks need to issue AT1s and which don’t.

While UBS reported it expects the deal to be complete before the end of the year, that may be a premature assumption.

As the AFR reports, global law firm Quinn Emanuel Urquhart & Sullivan is speaking to Credit Suisse AT1 bondholders about potential legal options.

The law firm said it’s “already in discussions with a number of holders of Credit Suisse’s AT1 capital instruments … about possible legal actions that may be available to them”.

Swiss MPs are also considering whether parliament might review parts of the controversial bailout.

The post ASX 200 investors beware, Credit Suisse bailout is an anomaly appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping
• The Vulcan Energy share price has crashed 45% in a year. What’s next?
• Want to invest $10,000 in great ASX shares? I’d pick these 3
• 1 reason to avoid the stock market, and 3 great reasons to invest today
• Why is the Woodside share price on the move today?

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

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The Vulcan Energy Resources Ltd (ASX: VUL) share price has struggled in recent times. It’s fallen nearly 45% since this time last year to trade at $5.78 at the time of writing.

Could the worst be over for the zero-carbon European lithium hopeful? Let’s take a look at what the future might hold for the S&P/ASX 300 Index (ASX: XJO) stock.

Own Vulcan Energy shares? Here’s what the future might hold

The Vulcan Energy share price has tumbled since this time last year as the company’s short interest continues to grow. Indeed, the stock is one of the ASX’s most shorted, with close to 7% of its shares being shorted at last count.

Weighing on the market’s sentiment might be concerns about the price of lithium, allegations brought about in a short seller attack last year, or general disdain for unprofitable outfits.

It might even have something to do with the well-publicised pushback that faced Rio Tinto Ltd (ASX: RIO)’s European Jadar lithium mine in late 2021.

However, Vulcan Energy managing director and CEO Francis Wedin is optimistic the company could be a major beneficiary of the European Union’s (EU’s) moves to decarbonise.

The recently revealed Critical Raw Materials Act aims to see 10% of the EU’s consumption of critical materials extracted from within its borders by 2030. Meanwhile, strategic projects would see shorter regulatory permit timeframes and better access to finance.

Vulcan Energy is behind the Vulcan Zero Carbon Lithium Project, located in Germany. Wedin recently said, courtesy of The Australian:

Obviously we are expecting to be front and centre of this as it’s the largest lithium resource and project in Europe by far.

A definitive feasibility study for the project’s first phase tipped it to produce 24,000 tonnes of lithium hydroxide each year. The project’s capital expenditure is expected to be around $2.4 billion, with payback targeted within three and a half years. The study’s release last month saw the Vulcan Energy share price tumble 7%.

Interestingly, the company might not be developing the project alone. There may soon be news of a partner capable of helping on both technical and financial fronts.

Wedin told the publication that while the company’s resources are abundant, its growth is “capital and people constrained”. Thus, it might hunt “a big partner in with a big balance sheet which is looking to decarbonise”.

The post The Vulcan Energy share price has crashed 45% in a year. What’s next? appeared first on The Motley Fool Australia.

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• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources. 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 share market is presenting lots of opportunities to invest in during this volatile period. I think there are some great opportunities to pursue with $10,000.

It’s not often that we get to invest at times of great market distress, so I think it’s good to jump on those ideas while they’re there.

Buying at a good price gives us a larger margin of safety to make pleasing returns. Investing at a good price can also boost the dividend yield if it’s an ASX dividend share.

With that in mind, here are some of the names that look very attractive to me if I were investing $10,000.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a significant e-commerce player in the furniture and homewares segment of retailers. It actually sells over 200,000 products from hundreds of suppliers. This model allows for faster delivery times and reduces the need for the ASX share to hold inventory, enabling a larger product range. The company does have a private label range as well, which comes with higher margins.

The Temple & Webster share price has dropped around 50% over the past year, meaning it’s now much cheaper than it was. I’m still very optimistic about the company’s future. Short-term growth wasn’t likely to keep going as strongly as during the COVID boom, particularly as inflation and interest rates bite.

But, the company is seeing positive signs for its earnings before interest, tax, depreciation and amortisation (EBITDA) margin and it’s targeting an EBITDA margin of over 15% in the longer term.

Scale benefits are expected in a number of areas including with suppliers, private label, logistical efficiencies and other fixed costs.

By 2030, I think the ASX share could be making a lot more profit than the market is currently pricing.

Frontier Digital Ventures Ltd (ASX: FDV)

This business invests in, and has stakes in, leading online marketplaces in emerging markets.

For example, it is invested in the number one property portals in Uruguay, Paraguay, Bolivia, Chile, Colombia, Pakistan, Sri Lanka, Myanmar and Nigeria. It’s also invested in the leading general marketplace in Central America, Morocco and Tunisia. This ASX share has stakes in the leading auto portal in Chile, Myanmar, the Philippines and Morocco.

In the company’s recent FY22 result, it said that its full-year revenue, on an ownership basis, grew by 37% to $82.3 million. The underlying EBITDA also increased by $4.6 million to $6.5 million. It also said that, excluding one-off restructuring expenses, all three regions of Latin America, Asia and Middle East and North Africa (MENA) were operating cash flow positive.

The ASX share pointed to cost optimisation initiatives to benefit FY23 and beyond.

This company’s founder and CEO was the general manager at REA Group Limited (ASX: REA) who helped it become the powerhouse in Australia that it is today.

The Frontier Digital Ventures share price is down around 50% over the past year.

Pacific Current Group Ltd (ASX: PAC)

This ASX share describes itself as a global multi-boutique asset management business that partners with “exceptional investment managers”. It invests and helps with its capital, with custom-made economic structures and with strategic business development to help businesses grow.

It’s invested in a number of fund managers including Nereus, Proterra, Astarte, Carlisle, ROC Partners, Victory Park and GQG Partners Inc (ASX: GQG).

The company’s fund managers continue to see a rise in funds under management (FUM), while also experiencing ongoing positive net flows.

It’s expecting “strong continued growth” of both management fees and performance fees. The larger the FUM grows, the more management fees the fund managers should generate. The ASX share is expecting to make additional investments in the FY23 second half.

Using the last two declared dividends, it has a grossed-up dividend yield of around 8%.

The Pacific Current share price is down around 20% from 26 October 2022.

The post Want to invest $10,000 in great ASX shares? I’d pick these 3 appeared first on The Motley Fool Australia.

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More reading

• 2 undervalued ASX shares to buy this month: expert
• Brokers name 3 ASX shares to buy now
• 3 ASX growth stocks down 40%-65% to buy now and hold
• Why Atlantic Lithium, Pushpay, St Barbara, and Temple & Webster shares are rising
• Temple & Webster share price higher on $30 million share buyback

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 Frontier Digital Ventures and Temple & Webster Group. The Motley Fool Australia has recommended Frontier Digital Ventures, REA Group, 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.

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