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Platinum Asset Management Ltd (ASX: PTM) shares are having a day to forget.

In morning trade, the ASX 300 share is down almost 23% to $1.01.

Why is this ASX 300 share crashing?

Investors have been hitting the sell button in a panic today in response to the release of an announcement out of the fund manager after the market close on Tuesday.

While that announcement was focused on its turnaround program, the company sneaked in a bombshell at the bottom.

According to the release, Platinum Investment Management expects to receive partial redemptions of at least $1.4 billion from its institutional and wholesale business over the coming month. In addition, one large client is indicating that it intends to rebalance its exposure away from benchmark agnostic global equity managers.

The company advised that it does not expect the account to close, instead it expects to see a reduction in mandate size. But how big the reduction and how much is currently under management is unclear.

These events, together with some other institutional account changes that are anticipated to take place over the coming months, are likely to result in a reduction in annualised fee revenue for the company of approximately $18 million.

During the first half of FY 2024, Platinum recorded fee revenue of $92.4 million. This annualises to $184.8 million, which means that the company is about to take an approximate 10% hit to its annualised fee revenue.

Productivity update

In other news, Platinum revealed that an initial review of its turnaround program has now been completed.

It has identified at least $25 million in targeted annualised run rate savings. This represents a 26% reduction in the company’s annualised half year expense base of approximately $96 million.

Due to the timing of these savings, they are unlikely to generate a material impact on the ASX 300 share’s reported FY 2024 profit. Management expects the bulk of savings to be progressively realised during FY 2025.

These savings will include both people and non-people costs, with one-off restructuring charges to be separately identified in its results.

It also highlights that expense reductions will come from the expected simplification of the company’s product range, including the rationalisation of Platinum’s offshore distribution efforts.

The ASX 300 share’s CEO, Jeff Peters, said:

In late February we outlined a strategy to reset and position the business for future growth. I am pleased to be able to report that we are acting swiftly to implement the changes required as part of the reset phase. I would like to reiterate my firm belief that Platinum will emerge from this challenging phase as a revitalised business that is better able to leverage its strong brand and talented team for the benefit of its clients.

The post Why is this ASX 300 stock crashing 23% today appeared first on The Motley Fool Australia.

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More reading

• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• 11% yield? 2 strikingly cheap ASX shares ‘primed for recovery’
• Why Camplify, Platinum, Rio Tinto, and Woodside shares are dropping today
• Why DroneShield, Magellan, Platinum, and Zip shares are rising today
• Why this ASX 300 share is leaping 14% despite being branded a ‘sell’

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 CSL Ltd (ASX: CSL) share price is charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $282.47. In morning trade on Wednesday, shares are swapping hands for $286.33, up 1.4%.

For some context, the ASX 200 is just about flat at this same time.

Investors may be bidding up the CSL share price after the company announced it has issued a pair of long-dated bonds totalling US$1.25 billion (AU$1.91 billion).

CSL share price lifts on refinancing news

According to the release, the corporate bonds will be issued by CSL Finance Plc and guaranteed by the parent company, CSL Limited, and some of its subsidiaries.

The principal amount, tenor and coupon for the notes are:

• US$500 million, 10-year at a fixed rate coupon of 5.106%
• US$750 million, 30-year at a fixed rate coupon of 5.417%

The CSL share price could be catching some tailwinds on the news, as the company will use some of the AU$1.9 billion in new funds to refinance higher interest existing bank debt. Management said the rest of the funds will be used “for general corporate purposes”.

CSL expects settlement to occur next Wednesday, 3 April, subject to customary closing conditions.

What’s been happening with the ASX 200 biotech stock?

CSL reported its half-year results on 13 February.

Highlights included an 11% year on year increase in revenue (in constant currency terms) to US$8.05 billion.

And net profit after tax in constant currency was up 20% to US$1.94 billion.

Despite those strong results, the CSL share price closed down 2.8% on the day.

Investors may have been a bit jittery about the 32% year on year increase in net finance costs, which came in at US$234 million. The increase was driven by debt taken on in the company’s acquisition of Vifor Pharma alongside higher interest rates.

However, the ASX 200 biotech’s balance sheet looks solid, with net assets of US$19.16 billion.

The CSL share price has had a strong run recently, up 14% in six months.

The post CSL share price leaping higher amid $1.9 billion funding news appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to buy in 2024 and hold for the next 10 years
• 2 of the best ASX 50 shares to buy now
• Here are the top 10 ASX 200 shares today
• 2 ASX shares that could help set you up for life
• Are CSL shares a must-buy in March?

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 positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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 Commonwealth Bank of Australia (ASX: CBA) share price has done very well for shareholders – it’s up 4% in 2024 to date and it has gone up 18% in the last six months. The S&P/ASX 200 Index (ASX: XJO) has only risen by 10% in the past six months.

A lot of ASX stocks have gone up in the last few months, but there may be an explanation for the rally.

Reasons for the rise

MST Marquee analyst Brian Johnson was speaking at the Australian Financial Review Banking Summit.

Earlier in the month, the CBA share price reached above $121. The banking analyst acknowledged CBA is “the best bank”, but there’s more to it than that.

He said there has been more buying than selling since October when ASX bank shares were unloved – credit growth was slow, net interest margins (NIM) were falling and banks were agreeing to sizeable pay rises which would increase labour costs. Johnson said he had never seen a time of a worsening revenue outlook while costs were also going up.

Then, in November, it seemed that the US Federal Reserve was pivoting and was starting to think about cutting interest rates.

This change meant global funds which had a smaller position of ASX bank shares decided to rethink their weighting, and they bought (CBA) shares because of the rising Australian dollar and the easing fears about Australian house prices. This also created a squeeze for CBA shares, leading to short sellers needing to cover their positions.

On top of that, according to Johnson, there were growing fears about the Chinese economy earlier this year, which meant Asian investors decided to look at markets outside of China, such as Australia and India. They also decided to buy ASX bank shares, like CBA.

CBA itself reportedly added to the buying by buying CBA shares for the dividend re-investment plan (DRP).

While there was a big increase in buying, there weren’t many sells thanks to CBA’s “sticky” share register, with some long-term investors not wanting to trigger a capital gains tax bill.

Johnson was quoted by the AFR who said:

CommBank has always been expensive – best management, generates the most capital and no one owns it which means you perpetually get in these periods where people have to buy it and get squeezed up.

If you think about every single one of those drivers, has anything changed?

The credit growth outlook is still slow, we still see outrageous competition coming through on both sides [mortgages and deposits]. Not much has really changed except the share prices are a lot higher.

CBA share price valuation

Using the independent estimates on Commsec, the CBA share price is valued at 21 times FY25’s estimated earnings. This is a very high price/earnings (P/E) ratio for a bank, and I think it has brought forward capital growth. It could be difficult to deliver much more increases in the next year or two.

Considering CBA’s profit is expected to fall in FY24 and FY25, I’d be looking at other ASX shares for value.

The post Are CBA shares really worth $120? appeared first on The Motley Fool Australia.

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More reading

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• These 5 high-quality companies are now paying a better income than CBA shares
• Own CBA shares? Here’s the tech stock the banking giant just invested in
• Better buy: CBA or Westpac stock?
• How I’d generate a $20,000 second income from CBA 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 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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Westpac Banking Corp (ASX: WBC) shares are on the move on Wednesday.

In morning trade, the banking giant’s shares are up 0.3% to $26.33.

Why are Westpac shares rising?

Investors have been buying Westpac shares today after the bank released an update on its technology simplification program.

That update revealed a number of initiatives that are underway that it believes will deliver growth and improve returns.

According to the release, the program’s ultimate ambition is for Westpac “to be our customers’ #1 bank and partner through life.”

There are four pillars to its strategy. These are:

• Customer care at the heart
• Easy to do business with
• Expert solutions and tools
• Advocate for positive change

Management believes it is well-placed to accelerate its strategy now that its portfolio simplification is complete. This follows the divestment of a number of non-core businesses in recent years.

One of the keys to its technology simplification will be its Unite plan. This involves simplifying existing processes, reducing technology complexity, and decommissioning duplicated systems.

For example, it highlights that by consolidating its Australian collections platforms, it will go from 7 systems to just 1 system. It plans to start with Australian consumer finance and mortgages.

In addition, it will consolidate its Australian customer masters from 3 to 1. This will mean one common solution for all Australian customers. It will also be API enabled.

What will this all cost?

Westpac advised that its technology simplification will come at a significant cost.

The total investment spend is expected to be ~$1.8 billion in FY 2024 and then ~$2 billion annually from FY 2025 to FY 2028. That’s a total spend of ~$9.8 billion.

But it believes it will be well worth the investment. The bank highlights that the Unite plan will help close the cost to income ratio gap to peers. It also expects run cost efficiency benefits and a reduction in the cost of change.

The post Westpac shares push higher on $9.8b technology simplification plan appeared first on The Motley Fool Australia.

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More reading

• Shares vs. property: How to generate $500 passive income per month
• Forget term deposits and buy these ASX dividend shares
• Better buy: CBA or Westpac stock?
• Buy Westpac and this ASX dividend giant
• How much dividend income would I get from a $20k investment in Westpac shares?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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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There are a good number of blue chip ASX shares to choose from on the Australian share market.

But one that could be a standout pick for investors right now is listed below.

Let’s see why it is a best idea according to the team at Morgans.

Which blue chip ASX share is a strong buy?

The ASX blue chip share in question is Penfolds, Wolf Blass, and 19 Crimes owner Treasury Wine Estates Ltd (ASX: TWE).

Morgans believes it could be a strong buy at current levels. Particularly if its recent blockbuster acquisition of DAOU Vineyards delivers the goods for the wine giant.

In addition, with Chinese tariffs on Australian wine imports looking likely to be lifted in the near term, the broker is very positive on Treasury Wine’s outlook. The broker commented:

It may take some time for the market to digest TWE’s acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near-term share price catalyst is if China removes the tariffs on Australian wine imports.

Morgans currently has an add rating and $14.03 price target on its shares. This offers 15% potential upside from current levels.

Let’s also not forget that Treasury Wine is a dividend payer. Morgans expects partially franked dividends per share of 36.4 cents in FY 2024 and then approximately 45 cents in FY 2025.

Based on its current share price of $12.20, this will mean dividend yields of 3% and 3.7%, respectively, for investors.

Overall, if Morgans’ recommendation proves accurate, it would mean a very attractive total return of approximately 18%.

The post Why this could be one of the best blue chip ASX shares to buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 Treasury Wine Estates. 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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Cheap ASX dividend shares could be exactly what someone about to retire could benefit from. There are lots of ASX shares paying good passive income.

I’m not going to say that investors should go for a large ASX bank share like Commonwealth Bank of Australia (ASX: CBA) or ANZ Group Holdings Ltd (ASX: ANZ). The banking sector faces the possibility of rising arrears and heightened competition for the foreseeable future. I prefer other stocks.

There are some great businesses on the ASX, but they don’t always reflect the underlying value of the business.

I like the idea of being able to buy a share that’s worth $1 for 80 cents (or less). Of course, dividends are not guaranteed payments, and share prices do move down. But in my mind, volatility can open up some appealing investments.

Don’t forget franking credits

Owning Australian companies comes with the added bonus of franking credits, which are refundable tax credits. Receiving fully franked dividends can boost the after-tax dividend returns.

For example, receiving $70 of fully franked dividends means that’s $100 of grossed-up dividend income.

A 7% fully franked dividend yield becomes 10%, grossed up.

A 3.5% fully franked dividend yield becomes 5% when grossed up.

For an Aussie or superannuation fund with a 0% tax rate, it’s a very helpful boost to annual cash flow after completing the tax return.

Where are there cheap ASX dividend shares?

Share prices are always changing, so that can alter what dividend yield we’re going to receive and change the ‘value’ on offer.

For me, there are a few different categories and industries I like to monitor.

I like to look at cyclical ASX shares when they’re at a weaker point in the cycle, such as ASX mining shares and ASX retail shares. Last year and 2022 were great years to go hunting for ASX retail shares, while the last quarter of 2021 was a good time to look at ASX iron ore shares such as Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO).

I’m a big fan of businesses that have a track record of consistently growing their dividend payouts. This shows those ASX dividend shares want to look after their shareholders, and they can provide some protection against inflation.

Finally, I like looking at businesses with relatively high dividend yields, if there is a good prospect they can deliver revenue growth, underlying profit growth and increase the value of the business over time.

I’ll talk about two examples.

Rural Funds Group (ASX: RFF) is a real estate investment trust (REIT) that owns a farm portfolio across Australia, including almonds, cattle, macadamias and vineyards.

In the FY24 first-half result, the business said it had an underlying net asset value (NAV) of $3.07 (an increase of 4.8%). The Rural Funds share price is at a 32% discount to this NAV, making it seem like a very cheap ASX dividend share.

It’s currently paying an annualised distribution yield of 5.6%.

Telstra Group Ltd (ASX: TLS) is the market-leading telco in Australia, with the biggest customer base and the mobile network with the most coverage.

It continues to win new mobile subscribers and this is helping drive the Telstra profit dividend higher. It currently offers an annualised grossed-up dividend yield of 6.8%. It looks cheap to me because the Telstra share price is at a 52-week low.

The post Almost ready to retire? I’d buy cheap ASX dividend shares for income appeared first on The Motley Fool Australia.

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More reading

• 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
• Telstra is paying 18 cents per share in dividends: Time to buy the stock?
• 3 high-quality ASX retirement shares to buy this week

Motley Fool contributor Tristan Harrison has positions in Fortescue and Rural Funds Group. 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 Rural Funds Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I’m a fan of finding undervalued ASX dividend shares that have been sold down and offer a potentially large dividend yield. I’m going to talk about three S&P/ASX 300 Index (ASX: XKO) shares that are materially down from their highs.

One of the benefits of a lower share price is that when a share price falls, it boosts the dividend yield of the future dividend payments. For example, if a business with a 6% dividend yield falls 10%, the yield would become 6.6%.

With that in mind, below are three beaten-up names I’m looking at.

APA Group (ASX: APA)

APA is the owner and operator of a large gas pipeline in Australia – it carries half of the nation’s natural gas usage. The business also owns or has stakes in a number of other energy assets including renewable energy generation, electricity transmission, gas storage, gas processing and gas-powered energy generation.

The APA share price is down around 30% from August 2022, despite the business continuing to grow its distribution and having most of its organic revenue (growth) linked to inflation.

It has grown its annual distribution each year since 2004. The ASX 300 share is expecting to pay a distribution per security of 56 cents in the current financial year, which translates into a FY24 yield of 6.7%.

Metcash Ltd (ASX: MTS)

Metcash supplies a number of independent food and liquor retailers including IGA, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

The most attractive part of the business, in my eyes, is the hardware division, which includes Mitre 10, Home Hardware and Total Tools. It also recently announced the planned acquisition of Bianco Construction Supplies (a SA and NT business) and Alpine Trust (a large frame and truss operator).

In my opinion, the ASX 300 share has a compelling future in hardware, with Australia’s ongoing population growth and the likely ongoing need for construction for the years ahead.

I like the company’s plans to move into foodservice distribution, with the acquisition of Superior Food. It’s a large market, with potential for Metcash to grow its market share. This is a logical expansion of its existing food business.  

The company has a dividend payout ratio of 70% of underlying net profit after tax (NPAT). The projection on Commsec suggests a grossed-up dividend yield of 7.4%.

Adairs Ltd (ASX: ADH)

Adairs is an ASX 300 share that operates through three different businesses – Adairs, Mocka and Focus on Furniture.

Sales and foot traffic are down amid the high cost of living, which is also hurting profitability. The company is looking to upsize its Adairs stores and roll out additional stores to boost its network’s earning power. It has recently taken over operation of its new national distribution centre, which will hopefully lead to lower costs and better efficiencies.

However, I don’t think the weak retail conditions will last forever, particularly if interest rates start coming down. The Adairs share price is down around 50% from mid-2021, which makes the future dividend payments compelling.

According to Commsec, the grossed-up dividend yield for FY25 could be around 8% and in FY26 it could be 11%.

The post Dividend yields up to 8%! Which of these cheap ASX 300 shares should I buy? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares just upgraded by Macquarie
• 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
• 1 ASX dividend stock down 30% to buy right now
• Here’s how the ASX 200 market sectors stacked up last week

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs and Apa Group. 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.

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It certainly is a good time to have Wesfarmers Ltd (ASX: WES) shares in your portfolio.

The conglomerate’s shares are up an impressive 36% over the last 12 months.

This means that if you had invested $20,000 into the Bunnings owner’s shares a year ago, your investment would be worth over $27,000 today.

But it gets better. Today is payday for eligible Wesfarmers shareholders, with its latest dividend being dished out on Wednesday.

It’s a good day to own Wesfarmers shares

Last month, Wesfarmers released its half-year results and impressed the market with a stronger than expected performance.

For the six months, the company reported a 0.5% increase in revenue to $22,673 million. This was driven largely by a 1.7% increase in Bunnings revenue and a 7.8% jump in Kmart Group revenue.

Things were better for its net profit after tax, which grew at a quicker rate of 3% to $1,425 million. This was the result of a very strong performance by the Kmart Group business, which posted a 26.5% increase in earnings for the six months. Management highlights that this reflects the positive customer response to Kmart’s lowest price positioning.

In light of this positive form, the Wesfarmers board elected to increase its fully franked interim dividend by 3.4% to 91 cents per share.

It is this dividend that is being paid out to eligible shareholders today.

Going back to our original example. If you’d bought $20,000 worth of Wesfarmers shares a year ago, you would own 400 units today.

This means that you would be receiving a very welcome pay check of $364 today.

Where next for its shares?

Unfortunately, all the major brokers believe that Wesfarmers shares have now pushed beyond fair value and are in overvalued territory.

The most bullish out there is Morgans with its hold rating and $62.30 price target. This implies potential downside of 7% from current levels.

The post Why today is a good day to own Wesfarmers shares appeared first on The Motley Fool Australia.

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More reading

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• 3 great ASX shares I want to buy in the next bear market
• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat
• How many Wesfarmers shares must I buy to get $100 in monthly passive income?
• If I’d put $5,000 in Wesfarmers shares at the start of 2024, here’s what I’d have now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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 have a high tolerance for risk, then having a little exposure to the small side of the market could be a good idea.

That’s because the potential returns on offer from ASX small-cap stocks can be incredible.

For example, Bell Potter has just named $135 million copper miner Aeris Resources Ltd (ASX: AIS) as a small cap to buy and is tipping huge returns over the next 12 months.

An ASX small-cap stock to buy

According to the note, the broker has retained its buy rating and 23 cents price target on Aeris’ shares.

Based on its current share price of 14.5 cents, this suggests that almost 60% upside is possible for investors.

To put that into context, a $10,000 investment would turn into $16,000 if Bell Potter is on the money with its recommendation.

Why is the broker feeling bullish?

Bell Potter highlights that the copper price has started to recover after a period of significant weakness. It believes this recovery could continue, which would be great news for this ASX small-cap stock. The broker said:

Since hitting a low of US$8,065/t in early February 2024, the LME cash copper price has run up to +US$9,000/t, breaking above its recent trading range and making an 11 month high. The price currently sits at ~US$8,750/t, for a gain of 8.5% in the last seven weeks. We remain bullish on the outlook for copper and continue to forecast rising prices based on supply disruptions, a finely balanced market, its direct exposure to the renewable energy/electrification thematic and broad-based demand that is not entirely dependent on China.

Commenting on why the broker thinks Aeris is a great option for investors, its analysts said:

AIS is a copper dominant producer with all its assets in Australia. Its near-term outlook is highly leveraged to the copper price and increasing copper grades and production at the Tritton copper mine. Successful delivery offers significant upside to the share price and a strategically attractive asset in Tritton, making AIS vulnerable as a corporate target.

The post Why this ASX small cap stock could rocket 60% appeared first on The Motley Fool Australia.

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• This dirt cheap ASX mining stock could nearly double in 12 months

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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Are you on the lookout for some big returns? If you are, then it could be worth looking closer at the ASX 200 share named below.

That’s because the team at Bell Potter has just initiated coverage on it and believes there’s potential for strong returns over the next 12 months.

Which ASX 200 share is the broker bullish on?

The share in question is engineering company Monadelphous Group Ltd (ASX: MND).

With its shares down 7% in 2024, the broker appears to believe a buying opportunity has been created for investors.

According to the note, the broker has initiated coverage on its shares with a buy rating and $15.40 price target.

Based on its current share price, this implies almost 12% upside for investors.

In addition, the broker is forecasting fully franked dividends of 51 cents per share in FY 2024, 55 cents per share in FY 2025, and then 59 cents per share in FY 2026. This equates to dividend yields of 3.7%, 4%, and 4.3%, respectively.

What did the broker say?

Bell Potter believes that this ASX 200 share has a bright short and medium term outlook. It commented:

MND’s short-and-medium-term outlooks are supported by a growing pipeline of committed developments across the energy, lithium and rare earths sectors, which is expected to drive strong growth by its EC division. Over the same period, M&I’s opportunities are reinforced by the latest wave of resources and energy developments, adding to Australia’s infrastructure base and boosting sector-wide maintenance requirements, elevated demand for turnaround and shutdown services in the energy sector and expanded sustaining capital expenditure programs by iron ore miners. MND is also likely to benefit from a growing renewable energy investment pipeline.

All in all, this could make Monadelphous a top option if you’re looking for exposure to this side of the market.

The post Guess which ASX 200 share offers 12% upside and a 4% dividend yield appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Wednesday
• 34 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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