Tag: Motley Fool

The gains of NVIDIA Corporation (NASDAQ: NVDA) shares over the past few months and years have quickly become legendary. Not just on the US markets, but around the world.

That’s what tends to happen when a company rockets 258% over the past 12 months, and a jaw-dropping 2,016% since March 2019. Oh, and Nvidia shares have also gained a cool 97.2% over 2024 to date. That leaves this growth monster and semiconductor and artificial intelligence (AI) stock with a market capitalisation of US$2.38 trillion today.

Obviously, finding other shares whether they be ASX or international shares, that can offer investors even the potential of these kinds of returns is rather difficult. After all, even a small investment in Nvidia shares at any time in the past five years would have probably led to life-changing gains to one’s wealth.

So today, I’m going to discuss two stocks that I personally own that I have high hopes for emulating the Nvidia experience. I don’t believe these stocks will truly rival Nvidia’s recent returns in coming years, as I happen to think Nvidia’s experience is a byproduct of exceptional circumstances. But they are the investments that have some of the best potential to come close in my opinion.

2 stocks that I’ve bought that could match Nvidia shares

Duolingo Inc (NASDAQ: DUOL)

Duolingo is a language and learning company whose business rests on its eponymous app. Users can use Duolingo to learn additional languages within a simple, easy-to-follow framework. It offers both a free experience, but also a paid subscription model that users can employ if they want to learn faster and more comprehensively.

I bought Duolingo shares a few years ago, and have already seen some huge gains. But I think this company can continue to grow exponentially into the future. As an example, the company had 49.2 million monthly active users at the beginning of 2022. But by the end of 2023, this had grown to 88.4 million.

Duolongo’s finances are growing even faster though. The company reported revenue of US$531.1 million for 2023, which was a rise of 43% from the previous year. I think the total addressable market for this company is almost limitless, given how many people want to learn or brush up on a second, or even third or fourth, language around the world. Duolingo is also expanding into other learning areas, such as mathematics and music with its app.

I’m very excited about Duolingo’s future. Whilst I don’t see this company with a market capitalisation of US$2.38 trillion anytime soon, I’m still expecting healthy growth for years to come.

Meta Platforms Inc (NASDAQ: META)

Moving on, we have another stock that most readers would be familiar with. Mark Zuckerberg’s social media titan Meta is something of a controversial stock. But no one can deny that this company has some of the hottest assets in the world. It owns Facebook of course, but also Instagram, Whatsapp and Messenger. These are all among the most popular apps on the planet.

I’ve owned Meta stock for many years now too. But this is another company that just doesn’t seem to know how to slow down. It reported healthy (in most cases double-digit) rises in active monthly users across most of its apps last year – an impressive feat considering Facebook is celebrating its 20-year anniversary in 2024.

Meta also managed to increase its revenues from US$114 billion in 2022 to US$132 billion in 2024. Operating income also increased, rising from US$29 billion to US$47 billion. Meta is also in the habit of conducting massive share buybacks and has even recently announced a maiden dividend payment.

I think there are plenty of returns left in this growth beast in the coming years, and I think this company will continue to be a lucrative investment to own. In fact, I wouldn’t be surprised if Meta had a market cap well north of US$2 trillion in just a few years.

The post I’d buy these shares for Nvidia-like gains over the next decade appeared first on The Motley Fool Australia.

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More reading

• 3 ASX stocks boasting better margins than Nvidia
• Why this ASX Nvidia partner has just been placed in a trading halt
• How to invest in artificial intelligence (AI) without buying Nvidia stock
• Guess which ASX tech stock is up 120% in three sessions thanks to Nvidia
• If you invested $10,000 in Nvidia stock the day ChatGPT came out, this is how much you’d have today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Meta Platforms and Duolingo. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Duolingo, Meta Platforms, and Nvidia. The Motley Fool Australia has recommended Meta Platforms and Nvidia. 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) is fighting hard to get into positive territory but has fallen just short. In afternoon trade, the benchmark index is down slightly to 7,808.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up over 5% to $1.83. This appears to have been driven by a broker note out of Morgans this morning. According to the note, its analysts have upgraded the energy producer’s shares to an add rating with an improved price target of $2.15.

Elders Ltd (ASX: ELD)

The Elders share price is up 4% to $9.31. This may have been driven by a broker note out of UBS this morning. Although the broker has only retained its neutral rating on the agribusiness company’s shares, it has boosted its valuation materially. UBS has lifted its price target by 35% to $9.70.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is up 3% to 6.8 cents. This morning, this lithium developer announced that it has submitted its Production Environmental Impact Assessment for the Kachi lithium project to the Catamarca Ministry of Mining. Its CEO, David Dickson, said: “Kachi stands as a testament to our adoption of a prudent and groundbreaking approach to lithium brine extraction, aiming for the advancement of sustainable and responsible lithium production.”

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up 2.5% to $31.40. This follows the release of the retail giant’s half-year results this morning. Premier Investments reported a 2.8% decline in sales to $879.5 million and a 0.9% reduction in profit before tax to $241.8 million. The latter was ahead of the market’s expectations. The company also announced plans to demerge its Smiggle and Peter Alexander businesses in 2025.

The post Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today appeared first on The Motley Fool Australia.

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More reading

• Lake Resources share price surges on sustainable lithium news
• Premier Investments share price jumps 9% on results and demerger plans
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat

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 Elders and Premier Investments. 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 Titomic Ltd (ASX: TTT) share price has caught the eye on Tuesday.

At one stage today, the ASX small-cap stock was up as much as 45% to 7.1 cents.

It has since pulled back but remains up 31% at the time of writing.

Why is this ASX small-cap stock rocketing?

Investors have been scrambling to buy the industrial scale metal additive manufacturing company’s shares on Tuesday following a big announcement.

According to the release, Titomic has received an order from the land branch of the Royal Netherlands Army, the Koninklijke Landmacht.

The order comprises 10 units of the D523 System, with a total sale value of EUR 772,000 (A$1.28 million). This is its largest D523 order to date and marks a “significant milestone” in Titomic’s expansion in the defence sector.

D523 System allows for onsite metal repairs and coatings with a low pressure cold spray.

The release notes that the Royal Netherlands Army will send 9 of the units to Ukraine to provide aid to its war effort. These systems will enable battle damage repair in-field and forward maintenance, enhancing battle readiness and prolonging mission capability.

Management believes that this order represents a substantial revenue opportunity for Titomic and reinforces its position as a key player in the global defence and aerospace sectors. Particularly given its belief that the D523’s capabilities align perfectly with the needs of the Koninklijke Landmacht, which it feels demonstrates its ability to meet the stringent requirements of military applications.

The delivery of the D523 systems is scheduled to commence in the coming months.

‘A pivotal moment’

The ASX small-cap stock’s managing director, Herbert Koeck, referred to the order as a “pivotal moment” for the company. He said:

This order from the Royal Netherlands Army marks a pivotal moment for Titomic, showcasing our D523 System’s ability to provide versatile repair and maintenance solutions on a large scale and creating a significant revenue opportunity. This is a stride forward in our ongoing efforts to bring these innovative solutions to a wider market. Titomic is aiming to attract more large-scale orders from innovators across various sectors in the coming months, including resources, defence, and aerospace, who are eager to leverage the advanced capabilities Titomic offers.

The post Guess which ASX small-cap stock is rocketing 45% on ‘pivotal moment’ appeared first on The Motley Fool Australia.

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More reading

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• 2 ASX 200 shares tumbling amid major management moves

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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A large array of stocks have risen significantly over the past five months. I’m still seeing appealing value in some ASX shares and I’m going to outline three of them today.

I’m excited about these three opportunities because of their capital growth potential and the exposure to supportive underlying trends.

Johns Lyng Group Ltd (ASX: JLG)

Johns Lyng says that its core business is built on the “ability to rebuild and restore a variety of properties and contents after damage by insured events including impact, weather and fire events”.

It has clients including major insurance companies, businesses, local and state governments, body corporates and owners’ corporations, and households.

The company also has a large and growing business that’s involved in assisting after catastrophes.

As we can see on the chart below, the Johns Lyng share price is materially lower than where it was in April 2022.

A short-term decline in catastrophe revenue could prove to be a good time to buy, in my opinion. The company continues to scale its operations in Australia and the US, as well as New Zealand after recently expanding there.

In five years, I think the ASX share could be generating a lot more profit. If it’s able to expand into new countries then it would be even more compelling.

In the FY24 first-half result, it grew its normalised business as usual (BAU) net profit after tax (NPAT) by 15.8% to $25 million.

According to the estimate on Commsec, the Johns Lyng share price is valued at 27 times FY25’s estimated earnings.

Close The Loop Ltd (ASX: CLG)

Close The Loop says it creates “innovative products and packaging that includes recyclable and made-from-recycled content, as well as collect, sort, reclaim and reuse resources that would otherwise go to landfill.”

It ‘recovers’ from an array of electronic products, print consumables and cosmetics. Other initiatives include reusing tonner and post-consumer soft plastics for an asphalt additive which makes the roads more durable and longer lasting.

I think this ASX share is the type of business that will help the world with sustainability and make progress towards a circular economy. Close The Loop has a goal of nothing going to landfill in regards to the items it deals with.

The HY24 result saw earnings before interest, tax, depreciation and amortisation (EBITDA) increase by 139% to $22.7 million and net profit after tax (NPAT) grew by 164% to $5 million.

I think the ASX share has a compelling future, particularly if it can keep delivering organic growth, deliver rising profit margins and achieve increasing earnings per share (EPS).

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) invests in US businesses that Morningstar analysts believe are good value. It only chooses from a shortlist of companies it thinks have a strong economic moat expected to endure for at least 20 years.

Businesses with a good economic moat may be capable of producing outsized profits, so it’s no wonder this ETF has managed to deliver average returns per annum of 16.4% over the last five years. However, that’s not a guarantee of any positive returns in the coming years.

At the moment, its biggest five positions include Alphabet, Allegion, Veeva Systems, Corteva and Transunion.

The post 3 star ASX shares to buy for the rest of 2024 appeared first on The Motley Fool Australia.

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More reading

• 3 struggling ASX shares to buy at a discount
• Invest $500 in these outstanding ASX ETFs
• Here’s how the ASX 200 market sectors stacked up last week
• New to investing? I’d invest my first $1,000 in ASX shares today!
• 12 ASX ETFs breaking the mould to hit 52-week highs today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Close The Loop and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Close The Loop, Johns Lyng Group, and Veeva Systems. The Motley Fool Australia has recommended Alphabet, Close The Loop, Johns Lyng Group, VanEck Morningstar Wide Moat ETF, and Veeva Systems. 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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Not everyone is earning a fully franked 36% yield from this ASX dividend share.

But some forward-looking passive income investors certainly are.

The company in question is ASX coal stock Yancoal Australia Ltd (ASX: YAL).

Yancoal stock closed up 2.3% yesterday, ending the day trading for $5.37 a share.

On the passive income front, the headline-making dividends the ASX coal share paid in 2022 and the first half of 2023 have come back to earth. That’s come alongside the big retrace from the record coal prices during that period.

For its full year 2023 results, Yancoal reported a 39% year on year decrease in its realised coal price to AU$232 per tonne. Despite a 14% annual increase in attributable saleable coal production, this saw revenue slide to $7.8 billion from $10.5 billion in 2022.

Still, the ASX dividend share ended 2023 with an enviable cash balance of $1.4 billion.

And the Yancoal board declared a $429 million, 32.5 cent per share, fully franked final dividend. Eligible passive income investors can expect to see that land in their bank accounts on 30 April.

Atop the interim dividend of 37 cents per share, paid on 20 September, that equates to a full-year payout of 69.5 cents per share.

Meaning Yancoal trades on a fully franked yield of 13.0%.

Very tidy.

Yet these forward-looking investors are earning far more from this ASX dividend share.

Here’s how.

Mining a 36% yield from this ASX dividend share

In the wake of the COVID pandemic, with travel and industry across the world widely shuttered, energy prices plunged.

By September 2020 this drove thermal coal prices below US$55 per tonne. That’s compared to around US$130 per tonne today and down from highs of some US$440 per tonne in September 2022.

Alongside the plunging coal price, this ASX dividend share saw its stock heavily sold off as fear gripped the markets.

Shortly before things began to turn around, on 6 November 2020, the Yancoal share price closed at $1.92.

Many investors still steered clear, fearing it could be ‘a falling knife’. But some forward-looking passive income investors took the plunge and bought Yancoal shares at what turned out to be a bargain basement price.

Over the past years, those investors will have earned the same dividends from those shares as investors who bought at far higher prices.

As for the past 12 months, at $1.92 per share, that equates to a fully franked yield of 36.2%!

Now, whether you’re looking at buying Yancoal or any other ASX dividend share, be sure to do your own detailed research first. If you’re short on time or don’t feel comfortable with that, just reach out for some expert advice.

The post A 36% yield from this ASX dividend share? Here’s how these forward-looking investors made it happen appeared first on The Motley Fool Australia.

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More reading

• I’d buy this ASX 200 stock today to start making powerful passive income for retirement
• Why BHP, Brainchip, Lake Resources, and Yancoal shares are sinking today
• ASX dividend royalty: Australia’s top stocks for reliable income
• 12% dividend yield! 1 ASX income stock I’d buy today
• $2k buys me 627 shares in 2 ASX passive income shares yielding 11% combined

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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Over the last 12 months, Pilbara Minerals Ltd (ASX: PLS) shares have been a rare shining light in a very bleak lithium industry.

During this time, the lithium miner’s shares have defied the odds to deliver a 13% gain for shareholders.

As a comparison, over the same period, Core Lithium Ltd (ASX: CXO) and Sayona Mining Ltd (ASX: SYA) shares are both down approximately 80%.

To put that into context, $10,000 invested in Pilbara Minerals shares would now be worth $11,300, whereas $10,000 invested in its two rivals would be worth just $2,000 now.

Can this outperformance continue? Let’s see what analysts at Bell Potter are saying following yesterday’s downstream announcement out of the miner.

What was the announcement?

As a reminder, Pilbara Minerals announced that it has executed a binding term sheet with Ganfeng Lithium to complete a joint feasibility study for a potential 32,000 tonnes per annum (tpa) downstream conversion facility to produce lithium chemicals.

The study is expected to be completed in the March quarter of 2025 with an option to progress to a final investment decision.

If it goes ahead, Pilbara Minerals will supply offtake of 300,000 tpa of spodumene concentrate to the joint venture to be converted into lithium chemicals.

Analysts at Bell Potter see positives from the plans. They commented:

The no-obligation approach provides PLS with a low-risk play to integrate further into the global battery chemicals value chain. Ganfeng are one of the world’s largest lithium companies, holding operations diversified by geography and product. The proposed JV would provide PLS leverage to Ganfeng’s extensive lithium conversion experience, flowsheet, intellectual property and integrative supply chain relationships developed over the past 20+ years. Ganfeng currently has interests in seven lithium chemical plants, and has converted Pilgangoora SC for over five years.

Are Pilbara Minerals shares good value?

While the broker is positive on the plans and is a big fan of Pilbara Minerals, it doesn’t see enough value in its shares to call it a buy.

It has responded by retaining its hold rating and $3.55 price target. This implies potential downside of 9% from current levels. The broker commented:

PLS is a large, liquid and clean exposure to global lithium fundamentals and sentiment. PLS is a low-cost producer, it operates in a tier one jurisdiction in Western Australia, and has a strong balance sheet ($1.7b net cash at 31 December 2023) which can withstand weaker lithium prices and support expansion programs. We are confident that EV-led demand will see strong long-term lithium market fundamentals. We see the potential for PLS to participate in industry consolidation. We retain our hold recommendation on valuation grounds.

The post Are Pilbara Minerals shares in the buy zone or overvalued? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Pilbara Minerals shares fall despite downstream deal with Ganfeng Lithium
• These are the 10 most shorted ASX shares
• What is the current lithium price?
• Analysts say these beaten down ASX lithium shares are strong buys

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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Having a few quality ASX 200 blue chip shares in your portfolio is usually a good idea.

But which ones could offer strong returns for investors right now?

Three that analysts are tipping to rise meaningfully from current levels are listed below. Here’s what they are saying about them:

Brambles Limited (ASX: BXB)

The team at UBS thinks that Brambles could be an ASX 200 blue chip share to buy. It is a supply chain solutions company that specialises in reusable pallets, crates, and containers for shared use.

The broker was pleased with the company’s performance during the first half, noting that its result was ahead of expectations. It expects the strong form to continue and for its shares to re-rate to higher multiples.

UBS has a buy rating and $17.10 price target on Brambles’ shares. This implies potential upside of approximately 11.5%.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 blue chip share that could have plenty of upside is Qantas.

Goldman Sachs believes that the market is undervaluing the airline operator’s shares. It highlights that Qantas has materially increased its earnings capacity compared to pre-COVID times yet its shares trade on lower multiples.

Goldman has a conviction buy rating and $8.25 price target on its shares. This suggests potential upside of 50% for investors.

Xero Limited (ASX: XRO)

Goldman Sachs also believes this cloud accounting platform provider could be an ASX 200 blue chip share to buy.

This is due largely to its significant growth opportunity from a market estimated to be over 100 million small to medium sized businesses globally.

Goldman has a buy rating and $152.00 price target on its shares. This suggests potential upside of 11% from current levels.

The post Buy these ASX 200 blue chip shares for big returns appeared first on The Motley Fool Australia.

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More reading

• 4 defensive ASX shares to own in a greedy market: Macquarie
• 3 of the best ASX growth shares to buy now
• New to investing? I’d invest my first $1,000 in ASX shares today!
• $2.1 million! Who are the highest paid ASX 200 directors?
• Got $3,000? 3 ASX tech shares to buy and hold for the long term

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Core Lithium Ltd (ASX: CXO) shares have been sold off over the last 12 months.

During this period, the lithium miner’s shares have lost a very disappointing 80% of their value.

There have been a number of reasons why investors have been hitting the sell button. But the key drivers have been falling lithium prices and the suspension of production.

And while you might be hoping that Core Lithium’s shares have now bottomed following such a sharp decline, this may not be the case.

For example, Goldman Sachs recently named three reasons why its thinks investors should be selling the lithium stock rather than buying it.

3 reasons to sell Core Lithium shares

The first reason is its valuation, which remains higher than peers despite its fall from grace. Goldman explains:

CXO appears relatively expensive trading at a premium on ~1.5x NAV (peer average ~1.15x) and an implied LT spodumene price of ~US$1,330/t (peer average ~US$1,315/t), with the lowest average operating FCF/t LCE on a more moderated/deferred production restart/ramp up.

Another reason is the potential for the mining suspension to continue longer than expected. It adds:

We continue to see production risk (in a steady state operation) as the Finniss project moves through ramp up on project complexity (moving between different open pits and underground configurations), though in the current pricing environment see risk that restarting mining at the Grants pit / processing operations is less likely near-term with the mining contract terminated and notice given on the processing contract, increasing the risk of a longer gap in production.

The third and final reason is its belief that exploration activities aren’t going to deliver any short term upside. The broker concludes:

Though further exploration is underway (including revisiting the gold, uranium and base metal exploration projects), and while potential resource expansion could be promising, with resource extension likely at depth/from new areas, we see limited near-term upside, where further exploration is now also likely longer dated on falling lithium prices, particularly with a near-term restart of the operation now unlikely in the near-term.

Potential downside

Goldman Sachs has a sell rating and 13 cents price target on the company’s shares.

This implies potential downside of 16% for investors over the next 12 months.

The post 3 reasons to sell Core Lithium shares appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• What is the current lithium price?
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today
• Core Lithium shares jump 9% on ‘exceptional’ exploration results
• Are Core Lithium shares a bargain buy or overvalued?

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.

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The S&P/ASX 200 Index (ASX: XJO) has now risen more than 15% since the start of November.

This means it’s getting harder to find bargains among the overpriced traps.

To assist in your hunt, here’s a couple of suggestions from Catapult Wealth general manager Dylan Evans:

‘Appealing valuation’ for this ASX 200 stock

The Seek Ltd (ASX: SEK) stock price is still almost 28% down from its peak before the inflation sell-off of growth shares over 2022.

Evans feels like the international online jobs classifieds operator is ready to break out in the coming period.

“Seek has invested in technology improvements during the past few years, so the benefits should flow through in the next two to three years,” Evans told The Bull.

This is despite the first-half results failing to impress the market last month.

Australia and New Zealand paid job listings were down 20% and consequently adjusted net profits after tax (NPAT) from continuing operations plunged 24%.

Seek chief executive Ian Narev, however, also pointed out that its tech upgrade spend was now behind it.

“The highlight of this period was the delivery, ahead of time, of the unified product and technology platform that will provide the foundation of our future growth,” he said.

“We can now turn our focus from… project management to realisation of the significant benefits that the platform can deliver: faster innovation and economies of scale.”

Seek now has nine out of 15 analysts surveyed on CMC Invest rating it as a buy.

The stock looks cheap to Evans.

“We’re attracted by potentially strong growth and an appealing valuation compared to peers.”

Recycling and acquisitions

As a waste management company, Cleanaway Waste Management Ltd (ASX: CWY) is in an industry that will never want for demand.

Evans admits it’s unlikely to display any explosive growth, but in return offers stability in a diversified portfolio.

“Cleanaway is a leader in the waste and recycling industry, which offers defensive cash flows and reasonable growth.”

The big opportunity in the future is recycling.

“It should generate growth as it expands into resource recovery, supported by a national goal to increase recycling rates from 60% to 80% by 2030.”

As a dominant player in the sector, there is also potential for mergers and acquisitions.

“We see an opportunity for Cleanaway to improve profitability on the back of industry consolidation.”

Seven of 13 analysts rate Cleanaway shares as a buy, according to CMC Invest.

The post 2 ASX 200 shares to buy for ‘strong growth’ at decent prices right now appeared first on The Motley Fool Australia.

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More reading

• Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling
• 6 ASX 200 shares with ex-dividend dates next week

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 recommended Seek. 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 interest rates on offer with term deposits have improved materially over the last 18 months.

However, they still fall short of the dividend yields that can be found on the Australian share market.

In addition, with inflation showing signs of easing, interest rates are now tipped to fall over the next 12 months. This could mean we have already seen the peak for term deposits.

In light of this, it’s possible that income investors will get better outcomes with the buy-rated ASX dividend shares named below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend share to buy according to analysts at Bell Potter. It is the footwear retailer behind brands such as HYPEDC, The Athlete’s Foot, Stylerunner, and Sneaker Lab.

The broker currently has a buy rating and $2.50 price target on its shares.

As for dividends, Bell Potter is expecting some big yields from Accent’s shares. It is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the Accent share price of $1.97, this represents dividend yields of 6.1% and 7.1%, respectively.

Westpac Banking Corp (ASX: WBC)

The team at Ord Minnett still sees plenty of value in this banking giant’s shares despite their strong run. Its analysts recently put an accumulate rating and $28.00 price target on the banking giant’s shares.

In addition, the broker is forecasting some very attractive fully franked dividend yields in the near term. It has pencilled in fully franked dividends of $1.45 per share in FY 2024 and then $1.50 per share in FY 2025. Based on the current Westpac share price of $26.44, this will mean yields of 5.5% and 5.7%, respectively.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Better buy: CBA or Westpac stock?
• Buy Westpac and this ASX dividend giant
• Invest $15,000 in Accent stock and get $5,500 in passive income
• How much dividend income would I get from a $20k investment in Westpac shares?
• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income

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 recommended 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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