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Anyone who has searched for inflation-beating passive income from ASX shares in recent times has at one stage or another likely considered BHP Group Ltd (ASX: BHP) and its dividends.

The resource titan has long been a provider of decent dividends. More so over the past five or so years. Although, if the company’s recent 40% interim dividend slashing is anything to go by, the days of near double-digit yields could be disappearing right before our eyes… at least for now.

That’s why I’d personally look elsewhere for large and growing dividends.

Where I’d go to find defensive dividends

A weakened economy induced by additional interest rate hikes could mean further deterioration in commodity prices. If so, this could put BHP’s dividend yield under further strain.

While the current yield of ~8% is still juicy as a passive income source, there’s every chance that it could trend back toward its pre-pandemic average of around 4.7%. The same could be said for other companies that are more influenced by the degree of consumer spending, including ASX retail shares, travel, etc.

Instead, I would look to companies operating in markets that are less sensitive to consumer sentiment. Some sectors that meet this condition in my eyes are transport, healthcare, and consumer staples. From there, it’s a matter of finding fundamentally strong businesses.

These ASX shares offer yields above 5%

The first two companies I’d consider buying instead of BHP for defensive passive income are Healius Ltd (ASX: HLS) and Metcash Limited (ASX: MTS).

Neither of these two will necessarily knock your socks off in terms of growth. However, both companies operate in industries that are relatively insulated from economic weakness.

Firstly, Healius is a provider of pathology and radiology services. Regardless of the state of the economy, if someone feels sick or breaks an arm they’ll need to make use of services made available by Healius. The ASX share currently offers a dividend yield of 5.5%, and if profits persist, there is potential for this to grow considering the modest payout ratio of 32%.

In a similar fashion, Metcash has a low reliance on the ebbs and flows of the economy. The $3.95 billion company operates food, liquor, and hardware stores; typically products that people ‘need’ rather than ‘want’.

Right now, Metcash provides a passive income of 5.5% as well. Though, this might mediate somewhat in the near term as its forecast payout ratio exceeds 100%. Nevertheless, a constant demand for food gives Metcash a level of protection for its future payments.

Trading off yield for defensiveness

The third and final ASX share I’d latch onto for income instead of BHP is Transurban Group (ASX: TCL). Unlike the others, I don’t foresee Transurban offering a better dividend than BHP any time soon. But what it lacks in yield it makes up for in its low risk.

In my opinion, Transurban is an incredibly defensive company. High upfront cost infrastructure is a quality moat, and Transurban’s toll roads are exactly that. It can cost billions to build these assets, but once constructed, a well-planned toll road has little in the way of competition.

Furthermore, this type of business is less sensitive to economic cycles — though some suggest otherwise. During the GFC, Transurban reported underlying growth as drivers continued to seek a shorter route.

At present, a 3.7% dividend yield is up for grabs in Transurban shares. This is still above the percentage available in the S&P/ASX 200 Index (ASX: XJO) when excluding the top 20 which is dominated by the banks and miners.

The post 3 ASX shares I’d buy for passive income instead of BHP’s declining dividend appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20K in ASX shares to target $1,000 in annual passive income
• Should I buy BHP’s shares after the ASX 200 miner’s latest update?
• The BHP dividend has been slashed by 40%. Here’s the lowdown
• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Why is the BHP share price tumbling today?

Motley Fool contributor Mitchell Lawler 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 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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Looking for an ASX 200 growth share or two to buy? Two that analysts at Goldman Sachs rate as buys in February are listed below.

Here’s what the broker is saying about them:

ResMed Inc. (ASX: RMD)

The first ASX 200 growth share that has been tipped as a buy is ResMed. It is a medical device company with a focus on sleep treatment solutions.

Goldman Sachs is a fan of ResMed and has a buy rating and $38.00 price target on its shares. The broker likes the company due to its strong position in the sleep treatment market and its opportunity to win market share due to a competitor recall.

All in all, the broker expects double digit earnings growth through to at least FY 2026. It said:

The timing/nature of Philips’ re-entry into the market remains an important debate, but under most realistic scenarios we continue to expect an excess demand dynamic through end-2023. Whilst supply shortages and cost inflation mitigated the tailwind from these competitor challenges through FY22, we believe the benefits to RMD are significant, and could continue to accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, supporting a favourable earnings trajectory through the long term. We currently model an EPS CAGR of +11% (FY23-26E), with potential upside depending on how competitive/regulatory dynamics develop.

Xero Limited (ASX: XRO)

Another ASX 200 growth share that Goldman Sachs rates highly is Xero.

It has a buy rating and $109.00 price target on the shares of this cloud-based accounting and business platform provider to small and medium sized businesses globally.

Its analysts rate Xero highly due to its massive total addressable market (TAM) and favourable tailwinds. The broker explained:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL).

The post Buy these ASX 200 growth shares: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• 7 ASX 200 growth shares to buy for possible takeovers: expert
• One top ASX 200 stock on my best shares to buy now list
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts
• Why are ASX 200 tech stocks like Xero having such a cracking run today?
• Goldman Sachs says these excellent ASX tech shares are buys

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 ResMed and Xero. The Motley Fool Australia has positions in and has recommended ResMed and 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Macquarie, its analysts have retained their outperform rating on this lithium miner’s shares with a trimmed price target of $19.00. While the broker was disappointed that Allkem has downgraded its Mt Cattlin production guidance, it expects the Sal de Vida and Olaroz operations to be supportive of its medium term production growth. The Allkem share price is trading at $11.45 on Wednesday.

Coles Group Ltd (ASX: COL)

A note out of Citi reveals that its analysts have retained their buy rating on this supermarket giant’s shares with an improved price target of $20.20. This follows the release of a first-half result that came in comfortably ahead of Citi’s expectations. Looking ahead, the broker believes shopping trends are favourable for Coles and feels the market is being too negative on the Ocado partnership. The Coles share price is fetching $18.18 this afternoon.

Hub24 Ltd (ASX: HUB)

Analysts at Morgans have retained their add rating on this investment platform provider’s shares with an improved price target of $31.90. Morgans notes that Hub24’s first-half underlying EBITDA came in well ahead of its forecasts thanks to higher earnings on pooled cash. The broker remains confident on the future, particularly given the potential for larger transition wins and the runway to secure more clients being intact. The Hub24 share price is trading at $28.83 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 dividend shares to buy now before their dividend payouts
• Here’s the latest ‘bearish news’ from brokers on ASX 200 lithium stocks
• Is Coles now one of the best ASX 200 dividend shares?
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 lithium shares having such a stellar run today?

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has positions in and has recommended Coles Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX share market is a very fruitful place to find ideas to grow annual passive income. To achieve an annual income of $1,000 from $20,000, I’d need an average dividend yield of at least 5%.

There aren’t many places where we can find a yield of 5%, as well as the potential for capital growth.

ASX dividend shares can provide a combination of dividend income and share price returns.

With that in mind, these are some of the higher-yielding ASX dividend shares that I’d use and split $20,000 between.

Metcash Limited (ASX: MTS)

Metcash is a diversified business that supplies food to IGAs and liquor to retailers like IGA Liquor, Bottle-O, Cellarbrations and Porters Liquor around the country. The company also has a hardware division, which owns the brands Mitre 10, Home Timber & Hardware and Total Tools.

The company is targeting a dividend payout ratio of 70% of underlying net profit after tax (NPAT). This results in the company paying a healthy dividend yield each result.

I think the sectors in which it operates are fairly defensive and that the overall business can benefit from factors like investments in productivity, with population growth being a useful tailwind.

The last two dividends amount to 22.5 cents per share, which is a grossed-up dividend yield of 7.9%.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the smaller ASX retail shares. It sells a variety of advanced hair removal products, as well as beauty and oral care.

Despite all of the impacts on the economy over the past year, the business just reported that total sales increased by 3.8% to $131.9 million, while the NPAT went up 4.5% to $13.7 million, and the interim dividend was increased by 4.4% to 4.7 cents per share.

The business achieved earnings per share (EPS) of 10.8 cents (up from 10.6 cents per share in the first half of FY22), so the dividend payout ratio is only 44%. This was the sixth consecutive increase in the interim dividend since its initial public offering (IPO) in 2016.

With the gross profit margin higher in the first seven weeks of FY23 second half, this has helped gross profit in dollar terms, despite total sales being down 2.1% year over year.

The latest two dividends from the ASX dividend share amount to 10.2 cents, which equates to a grossed-up dividend yield of 12.1%.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current describes itself as “a global multi-boutique asset management business” that partners with “exceptional investment managers”. In other words, it invests in fund managers, helps them grow and reaps the rewards of that.

The different asset managers and investment styles have created a portfolio of pleasing earning generators for the ASX dividend share.

Consistent earnings growth is not guaranteed, but the company’s underlying funds under management (FUM) continue to grow.

In the three months to 31 December 2022, the business saw its portfolio FUM rise from A$171.2 billion to A$175.1 billion.

The business has increased its annual dividend each year since 2018. The last 12 months of dividends amount to a grossed-up dividend yield of 7.5%.

Foolish takeaway

While I was aiming for an average dividend yield of 5%, the above three ASX dividend shares have an average yield of just over 9%. That means $20,000 invested evenly between them would generate $1,833 of annual passive dividend income. They could be mixed with lower-yielding names, but still good options like Telstra Group Ltd (ASX: TLS).

The post How I’d invest $20K in ASX shares to target $1,000 in annual passive income appeared first on The Motley Fool Australia.

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More reading

• How much do you need in ASX shares to give up work and live only off dividend income?
• Here are the top 10 ASX 200 shares today
• 2 ASX dividend stocks I think are dirt-cheap right now
• 3 ASX dividend shares for lazy investors
• Top ASX value shares to buy in February 2023

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 positions in and has recommended Telstra 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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Something strange is happening with the Bitcoin (CRYPTO: BTC) price in 2023.

At the time of writing, BTC is trading for US$24,173 (AU$35,385). That’s up 46% from what the world’s original crypto was worth on 1 January, according to data from CoinMarketCap.

That’s also more than four times the 11% gains posted by the Nasdaq Composite Index (NASDAQ: .IXIC) so far in 2023.

What’s strange about that?

Is the Bitcoin price correlation to stocks vanishing?

Here’s what we wrote in early January when we covered the 65% Bitcoin price drop over the course of 2022:

If nothing else, 2022 showed that [Bitcoin] is closely linked to the performance of growth stocks. And highly susceptible to the impacts of rising interest rates.

Yet here we are, less than two months later, with central bankers still ratcheting up interest rates to combat stubbornly high inflation, and Bitcoin has proven surprisingly resilient.

Here’s what we mean.

According to figures supplied by Bloomberg (using yesterday’s slightly higher Bitcoin price), “A 40-day correlation between Bitcoin and the S&P 500 has slid below 0.3 to the lowest since 2021 from a May record above 0.8.”

A correlation of 1 would mean the Bitcoin price moves precisely in line with the S&P 500 Index (SP: .INX).

Crypto research company Kaiko noted, “Crypto has been decoupling from traditional assets in 2023 … crypto-specific events increasingly drive the market.”

JPMorgan Chase strategist Nikolaos Panigirtzoglou pointed to the greater influence of retail investors in 2023, with many corporates having abandoned their forays into crypto in 2022 following several digital token meltdowns and exchange collapses.

“This positive retail impulse year-to-date is naturally more dominant in crypto given the absence of institutional investors at the moment,” Panigirtzoglou said.

“It became one of the themes to watch in 2022, crypto market correlation with traditional markets, as investors around the world reacted to rising inflation and subsequent rate hikes,” eToro market analyst and crypto expert, Simon Peters said.

“If the Bitcoin price does indeed move differently to macroeconomic events then it could provide significant support for using it as a hedge against other markets – akin to gold,” Peters added.

A word of caution

With that said, crypto investors should proceed with caution before making too much of this nascent trend. Or non-trend.

Let’s not forget the Bitcoin price crashed by 65% in 2022.

And the world’s top crypto remains volatile, trading as low as US$21,460 and as high as US$25,134 over the past 30 days.

Whether 2023 will see it continue to be decoupled from moves in global share markets remains to be seen.

The post Something strange is happening with the Bitcoin price in 2023 appeared first on The Motley Fool Australia.

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More reading

• Bitcoin price slumps 5% amid regulation fears

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

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S&P/ASX All Ords (ASX: XAO) shares may be in the red today but Step One Clothing Ltd (ASX: STP) sure ain’t following suit.

The ASX retailer, which is a nano-cap share with a market capitalisation of $57.5 million, released its 1H FY23 results today, revealing a return to profit that has sent investors into a frenzy.

The ASX All Ords share opened at 35 cents, up 13% on yesterday’s close. It hit an intraday high of 38 cents in afternoon trading, representing an impressive 22.5% gain.

The Step One Clothing share price is currently 37 cents, up 19.4% as the market close nears.

Let’s see what news this ASX company revealed today.

ASX All Ords share skyrockets on 238% profit surge

The key news today is that group net profit after tax (NPAT) was $5.275 million in 1H FY23.

This is a vast improvement on 1H FY22 when the company recorded a $3.816 million loss.

Here are the highlights of 1H FY23 for the online innerwear business:

• Revenue of $35.9 million, 5.7% down on the prior corresponding period (pcp) of 1H FY22
• Statutory earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $7.5 million, up 395% pcp
• Proforma EBITDA of $7.5 million, up 0.5% pcp
• Gross margin remains at a strong level of 80.7%, down 2.4% pcp
• Average order value up 16% pcp to $90.26
• Strong financial position, with closing cash of $32.6 million and no debt.

What else happened in 1H FY23?

The company increased its customer base by 136,000 people in 1H FY23, which was lower than the growth achieved in 1H FY22 with 193,000 new customers. (Bear in mind, inflation wasn’t going crazy and discouraging discretionary spending over the 1H FY22 period).

The company now has more than 1.2 million global customers. Step One Clothing says global supply chains are now improving and this will allow it to reduce the amount of inventory it has been holding.

What did management say?

Step One Founder and CEO, Greg Taylor said:

This half we successfully pivoted from prioritising top-line growth to a focus on profitability in response to challenging trading conditions in our key markets. Simultaneously, we continued to build our position as a leading brand for sustainable and quality innerwear products.

Our products continue to resonate well with our customers, reflected in an increase in average order value, and over 136,000 new customers added in the first half. We continue to maintain a strategic focus on our core offering as we explore product adjacency opportunities.

What’s next?

Taylor said an international expansion would be on the horizon once the global economy settles down.

Taylor said:

I remain steadfast in my belief in the products and my commitment to continuing to build this business.

I am confident that as macro-economic conditions ease Step One will be well positioned to pursue its international ambitions.

A quick history on this ASX All Ords share

Step One Clothing began trading on the ASX in November 2021 after its initial public offering (IPO) when shares were offered to early investors for $1.53 a piece.

Since then, the ASX All Ords share has fallen 86%.

However, things are looking up in 2023 with a year-to-date share price gain of 42%.

This is a vast outperformance against the All Ords, with shares up a collective 5.3% over the same period.

The post Guess which ASX All Ords share is surging 19% on a return to profit appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries stocks climbing on strong earnings updates
• Guess which ASX All Ords share is rocketing 5% after sales tripled
• 3 ASX 200 stocks moving higher on strong results announcements
• 2 ASX All Ords shares leaping higher with one up 8% on half-year results
• 3 ASX All Ordinaries shares going gangbusters on Monday

Motley Fool contributor Bronwyn Allen 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 yet another red day for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. After falling yesterday, the ASX 200 is backing up those losses with another day of red ink for investors. At the time of writing, the index has sunk by another 0.48% to just over 7,300 points.

But rather than dwelling on those sobering figures, let’s instead check out the ASX 200 shares that are at the top of the share market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Pilbara Minerals Ltd (ASX: PLS)

First ASX 200 cab off the rank today is the leading lithium producer Pilbara Minerals. So far this Wednesday, a sizeable 19.45 million Pilbara shares have been swapped on the ASX.

We did get some news out of the company this morning, which revealed a $250 million debt facility has been approved for Pilbara with government agencies Export Finance Australia and Northern Australia Infrastructure Facility.

But that hasn’t been enough for investors who have sent the Pilbara share price down by around 3.42% so far today. It’s probably a combination of these events that has resulted in so many shares changing hands.

Sayona Mining Ltd (ASX: SYA)

Next up, we have Pilbara’s fellow ASX 200 lithium stock Sayona. This Wednesday has seen a notable 20.1 million Sayona shares switch owners on the markets thus far. We also haven’t seen any Sayona-specific news during this session.

But that hasn’t stopped this lithium stock’s share price from dropping too. In this case, Sayona shares have slumped by 1.4% so far to 21 cents a share. This is probably the reason why this company has appeared on this list today.

Origin Energy Ltd (ASX: ORG)

Our final ASX 200 share for today is energy stock Origin. Origin Energy has seen a hefty 34.43 million shares bought and sold this Wednesday so far. This one isn’t too difficult to figure out. Origin shares have pole vaulted in value today. The company is currently up a pleasing 12.98% to $7.92 a share.

As my Fool colleague Brooke covered this morning, this seems to be the result of a new takeover offer from the consortium led by Brookfield Asset Management. The offer of $8.90 a share is lower than what the consortium previously offered.

But perhaps in light of Origin’s latest earnings report, investors might have been expecting worse. Regardless, this is almost certainly the cause of the high volumes on display here.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• 3 reasons I prefer buying ASX shares over an investment property
• Why Origin, Santos, Service Stream, and WiseTech shares are racing higher
• Why is the Star Entertainment share price on ice today?
• Pilbara Minerals share price dips despite cash injection
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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With earnings season now in its fourth week, there have been countless results releases and companies declaring their latest dividends this month.

The good news for investors is that it isn’t too late for investors to get hold of some of these dividends.

Here are three buy-rated ASX 200 shares that are due to go ex-dividend shortly:

Coles Group Ltd (ASX: COL)

Income investors might want to consider this supermarket giant operator’s shares before they trade ex-dividend for its fully franked 36 cents per share interim dividend on Thursday 2 March. If bought before that date, investors will then receive this dividend later that month on 30 March.

This morning, the team at Morgans responded to Coles’ half-year results by retaining its add rating with an improved price target of $19.60.

Telstra Group Ltd (ASX: TLS)

This telco giant could be an ASX 200 dividend share to buy before it trades ex-dividend next week on Wednesday 1 March. Earlier this month, the telco giant released its half-year results and declared a fully franked interim dividend of 8.5 cents per share. This will be paid to eligible shareholders at the very end of next month on 31 March.

Goldman Sachs responded to Telstra’s half-year results by reiterating its buy rating with a $4.60 price target.

Whitehaven Coal Ltd (ASX: WHC)

This ASX 200 coal miner’s shares are due to trade ex-dividend on Thursday for its massive 32 cents per share fully franked interim dividend. This will then be paid to eligible shareholders next month on 10 March.

Citi certainly thinks investors should be snapping up shares for this dividend. Last week, it put a buy rating and $9.25 price target on its shares.

The post 3 ASX 200 dividend shares to buy now before their dividend payouts appeared first on The Motley Fool Australia.

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More reading

• Hoping to hop on the huge Whitehaven dividend? You’d better hurry
• Is Coles now one of the best ASX 200 dividend shares?
• These ASX 200 dividend shares are top of Macquarie’s income portfolio
• Everything you need to know about the boosted Coles dividend
• Coles share price lifts on ‘impressive’ earnings beat

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles 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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Ah… ASX shares versus property. The age-old debate. Shares and property are without a doubt the two asset classes that most people choose to invest their money in.

Both classes have positives and negatives, and both have returned very pleasing results over many decades. And both have their benefits and drawbacks… not to mention diehard supporters.

But when the rubber hits the road, I personally prefer shares to property. Here are three reasons why:

Why I prefer investing in ASX shares over property

It’s easier to get started

The whole point of investing over the long term is to enjoy the wonders of compound interest. And compound interest becomes more powerful the more time one gives it to work its magic.

Unfortunately, it can take years and years to save up enough to get a deposit for a property and get your foot in the door. That’s years that your money is sitting in a bank account and not compounding.

On the other hand, you can get started with ASX shares with as little as $500 (and sometimes even less than that). That means you can start putting your money to work in compounding assets almost as soon as you decide to start investing.

Diversification is simple

You will hear about the benefits of diversification endlessly when you start your investing journey. It’s the application of the old adage that one shouldn’t put all of one’s eggs in one basket.

Achieving a diversified ASX share portfolio is not difficult. It’s a relatively simple task of finding 10-20 quality ASX shares that are exposed to different industries. Using an index fund makes building a diversified portfolio even easier.

But with property, only the most elite investors can really build a diversified property portfolio. When you buy a property, it will be located in one suburb, in one state, in one country.

You can’t get any less diversified than that. If you sank $1 million into a single ASX share, most investors would tell you it is incredibly risky. But with property, there’s no other option for most investors starting out.

Investing in ASX shares is just cheaper

When it comes to buying ASX shares, it’s about as cheap as you can get. The only real cost to buying an ASX share is brokerage. And brokerage is getting cheaper every year it seems.

A single trade will usually cost you $20 at most. And some brokerage platforms are now offering $3 brokerage or even free trades. After that, the only charges you are likely to pay are income tax on your dividends (minus any franking credits you get) and capital gains tax on any profits you make selling your shares.

In stark contrast, it’s hard to list the costs of buying a property on two hands.

There’s income tax you will pay if you rent the property out. Not to mention capital gains tax and land tax if you don’t use your property for your own home. But then there’s also the dreaded stamp duty when you buy, as well as conveyancing and legal fees, pest and building inspections, and council rates or strata charges.

All in all, everyone wants a piece of the action when you buy a property. Not so much with your ASX shares.

The post 3 reasons I prefer buying ASX shares over an investment property appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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S&P/ASX 200 Index (ASX: XJO) shares are down a collective 0.3% today amid companies continuing to release their results during the first earnings season of 2023.

Here we take a peek at the results from an ASX retail share, an ASX financial share, and a real estate investment trust (REIT).

Lovisa Holdings Ltd (ASX: LOV)

Shares in this ASX 200 jewellery retailer are up 0.6% to $24.20 in early afternoon trading. Lovisa reported continuing strong sales and profit growth, with 86 new stores (net) opened during the period. The Lovisa store network now totals 715.

Here are the highlights of Lovisa’s 1H FY23 report:

• Revenue up 44.8% to $315.5 million compared to the prior corresponding period (pcp) of 1H FY22
• Comparable store sales up 12.5% pcp
• Gross margin of 80.3% with gross profit up 48.4% pcp to $253.2 million
• Net profit after tax (NPAT) up 31.9% pcp to $47.7 million
• Operating cash flow of $115.8 million, up 49.4% pcp
• Net cash of $24 million

The ASX 200 retail share will pay a fully franked dividend of 38 cents per share on 20 April.

AUB Group Ltd (ASX: AUB)

Shares in ASX 200 insurance broker AUB Group are up 0.85% to $26.61 in early afternoon trading. The insurer said ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions led to revenue growth and margin expansion in its Australian broking division. The 1H FY23 results include three months of contribution from Tysers, with its “revenue and profit … above expectations”.

Here are the highlights of AUB’s half-year report:

• Underlying NPAT of $46.7 million, up from $30.6 million pcp
• Underlying earnings per share (EPS) of 48.18 cents, up from 40.3 cents pcp
• NPAT of $400,000, down from $29.7 million, largely due to acquisition expenses
• FY23 underlying NPAT guidance upgraded to a range of $112.9 million to $121.4 million

The ASX 200 financial share will pay a fully franked dividend of 17 cents per share on 4 April.

Scentre Group (ASX: SCG)

This ASX 200 property share is up 2.6% to $2.90 in early afternoon trading. Scentre Group presented its full-year results for 2022 today.

Here are the highlights for the year ending 31 December:

• Revenue up 7.8% pcp to $2,458 million
• Profit after tax up 18.1% to $970.2 million
• Operating cash flow per share up 29.3% to 22.78 cents per share
• Operating profit per share attributable to Scentre Group members up 20.8% to 19.71 cents

The A-REIT announced last week that it will pay a partially franked distribution of 8.25 cents per share on 28 February.

The post 3 ASX 200 shares defying the market following earnings announcements appeared first on The Motley Fool Australia.

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More reading

• Two ASX shares with bucketloads of growth potential: experts
• 3 ASX 200 shares trading ex-dividend before the end of this week
• Love all around: 2 ASX All Ords stocks smashing new 52-week highs on Valentine’s Day
• How to create a second income from ASX growth shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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 Lovisa. The Motley Fool Australia has recommended Aub Group and Lovisa. 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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