Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) has started the week positively. In afternoon trade, the benchmark index is up 0.5% to 7,811.3 points.

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

Fortescue Ltd (ASX: FMG)

The Fortescue share price is up 3% to $25.40. This may have been driven by news that the mining giant’s recently deployed electric excavator has now moved one million tonnes of material since going into action. Importantly, management advised that at times the electric excavator was performing better than its diesel equivalent.

Gold Hydrogen Ltd (ASX: GHY)

The Gold Hydrogen share price is up 14% to $1.47. This morning, this natural hydrogen and helium exploration and development company announced strong results from its Ramsay 1 and Ramsay 2 well testing. According to the release, the test confirmed up to 17.5% purity for helium, which ranks amongst the highest purity levels globally.

MMA Offshore Ltd (ASX: MRM)

The MMA Offshore share price is up 11% to $2.61. This follows news that the marine service provider has received and accepted a takeover offer. According to the release, the company has entered into a binding scheme implementation deed with Cyan MMA Holdings for the proposed acquisition of all its shares via a scheme of arrangement. The board unanimously recommends shareholders vote in favour of the $2.60 cash per share offer at the scheme meeting. Though, with its shares now trading above the offer price, it’s possible that some investors believe a competing bid will materialise.

Sims Ltd (ASX: SGM)

The Sims share price is up almost 3% to $12.22. This morning, analysts at UBS upgraded the scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker believes that its outlook is improving and highlights the discount its shares trade at compared to book value.

The post Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price leaps 5% as electric machinery makes a milestone
• Guess which ASX 300 stock is rocketing 10% on a $985 million cash bid!
• Here’s how the ASX 200 market sectors stacked up last week
• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• Is the worst of the selling now over for ASX iron ore 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 Mma Offshore. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.6% to 7,819.2 points.

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

ALS Ltd (ASX: ALQ)

The ALS share price is down over 6% to $12.85. This morning, the testing services company announced an agreement to acquire the remaining 51% interest in Nuvisan for zero cost. It is a European-based contract research organisation with two distinct and separable entities, Nuvisan GmbH focused on pre-clinical and clinical development services, and ICB focused on drug discovery services. It generated revenues of ~A$245 million in calendar year 2023. The market doesn’t appear keen on the deal.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 18% to $1.70. This follows the completion of the space and defence systems company’s institutional placement. It raised $35 million from investors at a discount of $1.70 per new share. The company will now push ahead with a $5 million share purchase plan at the same price. These funds will be used to support future sales growth in key global markets.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price is down 3% to $2.84. This has been driven by the diversified contract services provider’s shares going ex-dividend this morning for its upcoming dividend. Eligible shareholders can look forward to receiving its 6.5 cents per share fully franked dividend next month on 11 April.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 3% to 88.5 cents. This is despite the lithium explorer announcing the discovery of a new spodumene pegmatite occurrence at the Corvette project in Canada. Management commented: “The discovery highlights the extensive nature of the spodumene mineralized system along the CV Lithium Trend, which extends across the Property where a large portion remains unexplored for lithium pegmatite.”

The post Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today appeared first on The Motley Fool Australia.

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More reading

• Guess which high-flying ASX All Ords stock is crashing 19% today
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Popular ASX All Ords shares with ex-dividend dates next week
• Up 102% in 2024, here’s why this ASX All Ords stock is now frozen

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 Electro Optic Systems. 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 Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX. In this article, we’re going to look at if it’s feasible for someone to have a comfortable retirement owning VAS ETF units.

Owning ETFs can be very useful because they can provide useful diversification in a single investment.

The Vanguard Australian Shares Index ETF gives investors exposure to the S&P/ASX 300 Index (ASX: XKO), which are 300 of the biggest businesses listed in Australia. Its biggest five positions make up 32% of the portfolio. They are: BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Can VAS ETF fund a comfortable retirement?

The fund certainly ticks the diversification box. In terms of dividend income, the VAS ETF receives dividends over 12 months, and it distributes the money it has received every quarter.

According to Vanguard, the ETF currently has a dividend yield of 3.9%. This excludes the benefit of franking credits, which could be an after-tax bonus for some retirees. I’m not going to include it as a benefit in this article because everyone’s tax positions are different – the franking credits may be needed to offset tax charged by the ATO.

According to the AFSA Retirement Standard, a retired couple aged between 65 to 84 years old currently needs $72,148.19 per annum for a comfortable retirement, while a single person needs $51,278.30.

At a dividend yield of 3.9%, a couple would need $1.85 million invested in the VAS ETF while a single person would need $1.31 million invested. If investors can benefit from franking credits, and see minimal (or no) taxes, then those balance requirements would be lower.

Foolish takeaway

The VAS ETF is a good investment choice, with very low management fees. However, I think it’s worthwhile considering global shares to be part of a portfolio mix because of the stronger growth potential.

There are ASX dividend shares out there that can pay bigger dividend yields, which is the type of investment I like to regularly look at.  

The post How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement? appeared first on The Motley Fool Australia.

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More reading

• Here are the next distribution dates for your Vanguard ETFs
• If you own the Vanguard Australian Shares ETF (VAS), make sure you’re doing this
• 5 ASX ETFs to buy and hold for 10 years
• Selling your investment property due to land tax hikes? 5 ASX shares I’d buy with the proceeds
• Buy these ASX ETFs for a second income

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 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 S&P 500 Index (SP: .INX) has had a stellar run over the past 12 months.

Since this time last year, the benchmark US index has soared 31.6%, closing down 0.1% on Friday at 5,234 points.

Spurred by strong earnings results amid a resilient US economy alongside investor exuberance over pending interest rate cuts from the US Federal Reserve as inflation comes off the boil, the S&P 500 has notched a series of new record highs this year.

It’s a similar story with the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC). And, here in Australia, with the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is up 0.4% in afternoon trade today at 7,804.4 points. That puts the Aussie benchmark index within striking distance of surpassing the 8 March all-time closing high of 7,847.0 points.

Turning back to US markets, here’s what Goldman Sachs says could send the S&P 500 soaring another 15% in 2024.

More big gains for the S&P 500 ahead?

To be clear, Goldman Sachs’ base case remains for the S&P 500 to close the calendar year right around current levels, at 5,200 points.

But Goldman’s analysts also foresee the possibility that ongoing investor exuberance with artificial intelligence could see the big tech stocks propel the index to 6,000 points by the end of 2024.

Or 14.6% above current levels.

According to Goldman’s analysts (quoted by Bloomberg), “Although AI optimism appears high, long-term growth expectations and valuations for the largest TMT [technology, media, and telecom] stocks are still far from ‘bubble’ territory.”

The broker also noted that the resilient US economy and potential Fed rate cuts have already been fully priced into the markets.

In order for the US benchmark index to soar to 6,000 points by year end then, they said, “A shift in the interest rate outlook without a deterioration in the economy is necessary for the market rally to broaden.”

An ASX share to mirror the US stock market performance

ASX investors looking to track the performance of the S&P 500 without buying all those stocks may want to run their slide rule over the SPDR S&P 500 ETF Trust (ASX: SPY).

The ASX-listed exchange-traded fund (ETF) provides investors with exposure to 500 of the largest US-listed companies. SPY aims to track the performance returns of the benchmark. And it comes with low management costs of just under 0.10% per year.

Over the past 12 months, the ETF has gained 33.7%.

As always, before you invest a single dollar in SPY or any other ASX share, be sure to do your own thorough research.

If you’re uncomfortable with that, or just don’t have the time, reach out for some expert advice.

The post Up 32% in a year, here’s why Goldman says the S&P 500 could soar another 15% in 2024 appeared first on The Motley Fool Australia.

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More reading

• If I were Warren Buffett, I’d buy these ASX shares in a heartbeat
• These ASX 200 mining stocks could rise 40% to 50%
• Fortescue share price leaps 5% as electric machinery makes a milestone
• Own CBA shares? Here’s the tech stock the banking giant just invested in
• Why are these ASX tech shares getting smashed 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 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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I consider Warren Buffett as one of the greatest investors the world has ever seen. He has shown a love and preference for American companies over his lifetime, but I think there are a few ASX shares he’d definitely want to own if he hunted here.

There are a number of traits that the investing legend looks for, such as a good valuation, honest and hardworking management, appealing potential to put more money to work within the business at a high rate of return, and that these businesses are in industries he understands.

A lot of share prices have risen recently, so it’s a bit harder to find value. However, Buffett has said a number of times that he would rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.

Below are the three ASX shares I think Warren Buffett would love to own.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX retail share that owns a number of brands including Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti.

The company also owns investments in two other ASX companies – Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The two brands I really like within the portfolio are Smiggle and Peter Alexander.

Smiggle sells school-related items such as lunchboxes, drink bottles, bags, stationery and so on. Some of the current brands it’s working with include Jurassic Park, AFL, Spider-Man, Minecraft, Barbie and Mickey and Minnie.

Now that the COVID-19 impacts on schools have dissipated, the growth potential of Smiggle has returned to normal.  

The company is planning a lot of international growth for Smiggle and Peter Alexander. I think store growth can be a big driver of earnings in the coming years, so the company has a promising outlook, in my opinion. Smiggle can expand in numerous countries.

A bonus could be if the business’ strategic review manages to unlock value for shareholders.

According to Commsec, the Premier Investments share price is valued at 24 times FY24’s estimated earnings.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting is best known for its stores across Australia, which has tailwinds like population growth in Australia. Any interest rate cuts this year could be a boost for demand.

One the things that excites me most about this business is its international growth. Australia is a great country, but the global population is much bigger – tapping into this addressable market is compelling. It has offices in Hong Kong, mainland China, the USA and Germany. In 2023 it made sales to customers from 45 countries.

It’s looking to build trade and commercial partnerships, growing its sales to business customers. The ASX share would also like to expand its store network and grow its e-commerce sales.

According to the projection on Commsec, the Beacon Lighting share price is valued at 20 times FY24’s estimated earnings.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a number of Australis’s leading retailers including Bunnings, Kmart and Officeworks. Other businesses it operates include Target, Catch and Priceline.

I think Warren Buffett would definitely want a piece of Wesfarmers. The company has proven to be a long-term performer, with a track record of making good decisions for shareholders and generating a good return on equity (ROE).

Berkshire Hathaway has built up a diversified portfolio of businesses, and Wesfarmers is diversified too. Wesfarmers is expanding into areas like healthcare and lithium. The more growth avenues the company has, the more choices it has to invest in the best-returning option.  

According to the estimate on Commsec, the Wesfarmers share price is valued at 30 times FY24’s estimated earnings.

The post If I were Warren Buffett, I’d buy these ASX shares in a heartbeat appeared first on The Motley Fool Australia.

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More reading

• How a potential demerger could deliver a 10% upside for this ASX 200 stock
• How many Wesfarmers shares must I buy to get $100 in monthly passive income?
• 2 ‘very high-quality’ ASX retail shares with significant inside ownership
• If I’d put $5,000 in Wesfarmers shares at the start of 2024, here’s what I’d have now
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

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 Berkshire Hathaway and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Berkshire Hathaway 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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If you’re not against investing in the mining sector and you are looking for some big potential returns for your portfolio, then read on.

That’s because listed below are a couple of ASX 200 mining stocks that have not only been named as buys but tipped to rise 40% to 50% from current levels.

That means that if these analysts are on the money with their recommendations, a $20,000 investment could turn into $28,000 to $30,000.

Let’s see what they are saying about these ASX 200 mining stocks:

Arcadium Lithium (ASX: LTM)

This beaten down lithium miner’s shares could be a bargain buy according to Bell Potter.

The broker currently has a buy rating and $10.40 price target on its shares. This implies potential upside of approximately 53% for investors from where they trade today.

The broker is a big fan of the lithium chemicals company due to its diversified exposure to lithium, growth portfolio, and strong balance sheet. It believes this leaves it perfectly positioned to benefit when the lithium price rout is over. Its analysts explain:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

Regis Resources Ltd (ASX: RRL)

Another ASX 200 mining stock that has been tipped to rise very strongly is gold miner Regis Resources.

Despite the gold price recently hitting a record high, Regis Resources shares remain closer to their 52-week low than their 52-week high.

Bell Potter also sees this as a buying opportunity for investors, particularly given its growth opportunities, its Australia-based operations, and its M&A appeal. It said:

As one of the largest ASX listed gold producers, we are attracted to its all- Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

Bell Potter has a buy rating and $2.60 price target on the miner’s shares. If this proves accurate, it will mean a return of approximately 41% over the next 12 months for investors from current levels.

The post These ASX 200 mining stocks could rise 40% to 50% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Broker names 2 of the best ASX mining shares to buy (with 40% to 50% upside)
• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX lithium shares being annihilated on Friday?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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 Fortescue Metals Group Ltd (ASX: FMG) share price is leaping higher on Monday.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed Friday trading for $24.64. In morning trade shares were swapping hands for $25.96, up 5.4%.

At the time of writing, shares are trading for $25.65, up 4.1% for the day.

The strong performance comes despite a dip in the iron ore price over the weekend, with the industrial metal slipping 1.6% to US$108.05 per tonne.

And the Fortescue share price is racing ahead of rival ASX 200 miners BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). BHP shares are up 0.8% and Rio Tinto shares are up 0.9% at this same time.

This comes following the announcement of a million tonne milestone in Fortescue’s sustainable mining transition.

Fortescue share price charges higher as low emissions mining takes form

Digging up a million tonnes of ore without belching out clouds of diesel smoke?

Yep, that’s what Fortescue has just achieved at its Chichester iron ore operations, located in Western Australia.

In a press release on Friday that could be helping boost the Fortescue share price today, the ASX 200 miner reported its recently deployed electric excavator has now moved one million tonnes of material since going into action.

Initially operating at partial capacity, it’s now full speed ahead for the electric excavator.

Management reported that at times the excavator was performing better than its diesel equivalent. The miner says the focus now is to ensure consistent performance from the machine.

“This is such an exciting milestone for Fortescue and our decarbonisation journey,” CEO Dino Otranto said of the development which may be helping spur the Fortescue share price today.

And there’s more to come.

According to Otranto:

We will have two additional electric excavators commissioned by the end of April. Once we decarbonise our entire fleet, around 95 million litres of diesel will be removed from our operations every year, or more than a quarter of a million tonnes of carbon dioxide equivalent.

The excavator has been running partially off solar and is powered by a 6.6kV substation and more than two kilometres of high-voltage trailing cable. 

Fortescue’s 240-tonne battery electric haul truck prototype, Roadrunner, is also progressing towards full field work.

“Roadrunner recently completed its first phase of testing which exceeded the performance expectations of the battery power system,” Otranto said.

Copper expansion options

Separately, ASX 200 investor interest may have been sparked by Fortescue founder Andrew Forrest’s speculation of pending copper acquisitions.

Speaking in Beijing over the weekend, Forrest told Reuters (courtesy of Mining.com), “The company has choices in front of it … we have a lot of copper options on the table. And when we feel the time is right, we’ll pull the trigger.”

The Fortescue share price is up 26% since this time last year.

The post Fortescue share price leaps 5% as electric machinery makes a milestone appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Are dividends your thing? Then you’ll love these 2 high-yield ASX shares
• Is the worst of the selling now over for ASX iron ore shares?
• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income
• Forget Fortescue and buy this iron ore share for a 33% return

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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Commonwealth Bank of Australia (ASX: CBA) shares are having a good start to the week.

At the time of writing, the banking giant’s shares are up almost 1% to $118.43.

This has been driven largely by a positive start to the week for the banking sector.

In addition, there has been a little bit of news out of Australia’s largest bank that may have caught the eye of investors.

What did CBA announce?

This morning, CBA announced that it has expanded its support for innovative sanctions compliance technology by investing in Global Screening Services (GSS).

It is a UK-based RegTech company that specialises in payments screening.

The amount invested has not been revealed. However, CBA advised that it has taken a minority shareholding as part of GSS’s US$47 million Series A2 capital raising.

The release notes that CBA is the RegTech company’s first and only significant Australian investor to date.

What is GSS?

GSS provides sanctions compliance and transaction screening solutions for financial institutions which are designed to reduce process duplication and error rates in the screening process.

It was founded in London in 2021 with the aim of improving effectiveness and efficiency in international payments and creating less friction in payment flows to benefit bank customers.

Commenting on the investment, CBA’s chief risk officer, Nigel Williams, said:

The investment in GSS is part of the bank’s ongoing commitment to innovation to deliver better customer experiences. Following this investment, we are assessing the system for application in international payment flows.

As part of the bank’s investment in GSS, it has been able to appoint an observer to the company’s main board. CBA advised that the bank will be represented by its executive general manager of financial crime compliance, John Fogarty.

Fogarty spoke about how GSS’ technology could improve outcomes for the bank. He commented:

Banks play a critical role in combating financial crime and protecting their customers, the community and integrity of the financial system. We’re excited about the potential of GSS with its global reach and look forward to seeing how CBA can potentially utilise this technology to continue to prevent sanctioned parties from accessing and moving money into or out of Australia, whilst also speeding up the millions of international payments for our customers.

CBA shares deliver market-beating returns

Following today’s gain, CBA shares are now up 24% since this time last year.

Much to the delight of its shareholders, this is approximately double the market return over the same period.

This leaves the bank’s shares trading within sight of their record high.

The post Own CBA shares? Here’s the tech stock the banking giant just invested in appeared first on The Motley Fool Australia.

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More reading

• Better buy: CBA or Westpac stock?
• How I’d generate a $20,000 second income from CBA shares
• 4 ‘overheated’ ASX 200 shares to stay away from
• ASX 200 shares vs term deposits: What $5,000 invested a year ago is worth now
• I wouldn’t touch CBA shares with a 10-foot bargepole!

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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It’s been a great start to the week for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Monday. At the time of writing, the ASX 200 has gained a pleasing 0.89% and is back up to around 7,840 points. But let’s talk about a few ASX tech shares that are going the other way.

Not all ASX 200 shares are getting lifted by today’s market goodwill. Take the Block Inc (ASX: SQ2) share price. It’s currently down a chunky 2.64% at $124.76 a share.

It’s been even worse for Life360 Inc (ASX: 360) shareholders. Life360 shares are presently nursing a loss of 3.72% and have fallen to $13.19 a share.

The strange thing is that these two ASX tech shares seem to be outliers, not only on the broader ASX, but in their tech sector. ASX tech shares are, on the whole, having just as good a time as the ASX 200 Index.

Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up a rosy 1.3%. And other tech stocks like Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) are enjoying comfortable rises.

So what’s going wrong with these two shares in particular?

Why are these ASX tech shares getting sold off this Monday?

Well, there’s no fresh ASX news out of either of these tech shares this Monday. Or indeed for a while.

However, you might notice that both Life360 and Block have something in common.

Both are US shares with secondary ASX listings. Block’s primary home is the New York Stock Exchange under the Block Inc (NYSE: SQ) listing.

Life360 calls the ASX home, and isn’t listed on the American markets, despite an aborted attempt to establish a Nasdaq listing last year. However, this company is still headquartered and based in the United States.

Last Friday’s trading on the tech-heavy Nasdaq saw many US tech stocks take a haircut. Tech shares like PayPal, Microsoft and Tesla were all down during Friday night’s trading. That also included Block’s US shares.

Block stock crashed a meaningful 3.9% last Friday down to US$80.77 a share. This might have been due to some large sales from institutional investors.

So this probably explains why Block’s ASX listing is suffering today. Both investments represent the same shares of the same company, so what happens on the US markets is almost always the largest deciding factor as to how the ASX shares fare the following session.

Perhaps Life360 investors are just making the company guilty by association here.

So all in all, a good day for most ASX 200 shares today, but not for these two ASX tech outliers.

The post Why are these ASX tech shares getting smashed today? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX growth shares I think will benefit from interest rate cuts in 2024
• Do Block shares come with a dividend in 2024?
• Here are the top 10 ASX 200 shares today
• 3 Australian shares quietly crushing the ASX today
• Why Block, Core Lithium, Fisher & Paykel Healthcare, and Virgin Money are rising today

Motley Fool contributor Sebastian Bowen has positions in Microsoft, PayPal and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Life360, Microsoft, PayPal, Tesla, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short March 2024 $67.50 calls on PayPal. The Motley Fool Australia has positions in and has recommended Block, WiseTech Global, and Xero. The Motley Fool Australia has recommended PayPal. 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 always on the lookout for attractive ASX dividend shares that can pay large dividend yields. Businesses with smaller market capitalisations can be very appealing because they may be able to deliver relatively stronger growth over time than businesses that are already large.

I believe the two stocks I’m going to talk about are capable of paying much larger dividends in future years.

Bailador Technology Investments Ltd (ASX: BTI)

This business describes itself as a growth fund that invests in technology businesses. It targets unlisted companies at the expansion stage with global addressable markets.

Ideally, those target companies are run by the founders, have a proven business model with attractive unit economics, international revenue generation and the ability to generate repeat revenue.

Its portfolio can regularly change, but I’ll tell you about what the ASX dividend share’s four largest holdings do. Siteminder Ltd (ASX: SDR) is a world leader in hotel channel management and distribution solutions for online accommodation bookings.

Rezdy, which is now called RC TopCo after a merger, is an online channel manager and booking software platform for tours and activities.

Access Telehealth is a telehealth platform that “connects Australian communities to high-quality healthcare”.

Rosterfy provides a volunteer management software platform that connects communities to events.

The ASX dividend share targets a dividend yield of 4% of its pre-tax net tangible assets (NTA). However, the Bailador share price is currently trading at a discount of around 27% compared to its February 2024 pre-tax NTA.

If Bailador’s NTA stayed the same for the next 12 months, then the (fully franked) dividend yield would be 5.4% and the grossed-up dividend yield would be 7.8%. If the ASX dividend share’s portfolio increases in value, then the dividend can increase.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is a retailer focused on selling premium fashion to younger Aussies. Its main store network is Universal Store and it operates the business CTC (trading under the THRILLS and Worship brands). The company is also rolling out Perfect Stranger as a standalone retail format. It has a total of more than 100 stores.

While like for like store sales have been challenged for the existing store network in the current environment, it has added enough new stores to keep growing its overall sales and profit. FY24 first half-year total sales rose 8.5% and statutory net profit after tax (NPAT) grew 16.7%.

The fact that it has been able to grow in this period is impressive. It has been able to grow its dividend every year since it started paying cash to shareholders in 2021. HY24 saw the interim dividend hiked by around 18% to 16.5 cents per share.

The first seven weeks of the second half of FY24 saw Universal Store sales had grown 4.5%, with like for like sales growth of 1%, with Perfect Stranger sales up 56.5% (and like for like sales growth of 10.3%).

According to the estimates on CMC Markets, the company could pay an annual dividend per share of 24.8 cents in FY24 and 31.1 cents in FY26. That translates into a grossed-up dividend yield of 6.7% in FY24 and 8.4% in FY26.

The post These are my top high-yield ASX dividend share buys right now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend shares to buy for a passive income boost
• I think these ASX stocks are bargain buys after reporting season
• 3 ASX dividend shares to buy with ~5% yields for an income boost
• Forget Westpac and buy these ASX dividend shares
• Key takeouts for ASX shares this earnings season: CBA analysis

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Bailador Technology 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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