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S&P/ASX 200 Index (ASX: XJO) shares offer investors an excellent means to build a portfolio that delivers regular passive income. 

That’s because atop of potentially gaining in value, many ASX 200 shares also pay regular dividends.

Many of them also offer franking credits on their dividend payouts. Meaning the passive income you receive could come with some healthy tax benefits. The value of those benefits will depend on an individual investor’s other taxable income.

With that said, here are two ASX 200 shares delivering $910 a year in passive income on a $10,000 investment.

Dividends from copper and iron ore

First up we have mining giant BHP Group Ltd (ASX: BHP).

The BHP share price, pictured below, is up 25% over the past six months.

BHP pays a fully franked, trailing dividend yield of 9.7%.

At that yield, the ASX 200 share pays $485 in passive income per year on a $5,000 investment.

Now, we are talking about the dividends paid out over the past year. And there are no guarantees on the dividend payouts investors can expect from BHP in the 12 months ahead.

But the ASX 200 mining share remains in a strong position. BHP gets most of its revenue from iron ore, with copper its second biggest earner.

Iron ore is currently trading for US$124 per tonne. That’s up from less than US$82 per tonne in early November. And with China continuing to reopen from its multi-year COVID closures, I believe investors can expect iron ore prices to remain well above US$100 per tonne over the next year.

The story for copper is similar. The red metal is currently valued at US$8,893 per tonne, up from US$7,627 in early November. In strong demand from the EV markets as well as construction, copper prices should remain resilient in 2023, if the world can avoid slipping into recession.

Which brings us to…

A high yielding ASX 200 energy share

Our second ASX 200 share for passive income is Woodside Energy Group Ltd (ASX: WDS).

The Woodside share price, as shown in the chart below, has gained 14% over the last six months.

Woodside pays a fully franked, trailing dividend yield of 8.5%.

At that yield, this ASX 200 share pays $425 in passive income per year on a $5,000 investment.

Taken together with BHP, the two dividend streams would provide a passive income of $910 per year.

And as with BHP, I believe the outlook for Woodside’s dividend payouts and share price remains positive.

Crude oil is well off its March 2022 highs, with Brent crude currently fetching US$84 per barrel. But with limited new investment in exploration and development amid resurgent forecast global demand, I believe oil and gas prices are more likely to rise from here than fall.

Goldman Sachs, for example, forecasts crude oil will head back above US$100 per barrel in 2023.

Foolish takeaway

While these two ASX 200 shares have the potential to offer investors $910 of passive income on a $10,000 investment, there are no guarantees on any future payments. And investors shouldn’t forget about the benefits of diversification.

Rather than focus on only these two stocks, investors should identify stocks with similar high yields and strong outlooks to build a portfolio of ASX 200 shares for a healthy passive income stream.

The post ASX 200 shares: How to invest $10,000 to get $910 per year in passive income appeared first on The Motley Fool Australia.

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More reading

• Own BHP shares? Here’s what the market expects from its half year results
• 5 things to watch on the ASX 200 on Friday
• Why Morgans just added these ASX 200 shares to its best ideas list
• Can the BHP share price keep rising or has it peaked?
• This little-known ASX share offers ‘inflation protection at a reasonable price’: fund manager

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 past 20 years, the popularity of exchange-traded funds (ETFs) has exploded. There are now more than 200 ASX ETFs available to invest in on the Aussie bourse.

These include a broad range of Australian and international index funds as well as those seeking to track a particular sector, commodity or theme.

One of the best things about ASX ETFs is their ability to add instant diversification to an investment portfolio. Even by owning a mere one or two such funds, an investor has the potential to gain investment exposure to a variety of sectors, company sizes and international markets.

But with so many now available, choosing where to invest can be challenging. So, we asked our Foolish writers which ASX ETFs they think offer top buying right now. Here is what the team came up with:

7 best ASX ETFs for February 2023 (smallest to largest)

VanEck Global Clean Energy ETF (ASX: CLNE), $126.62 million

Betashares Global Quality Leaders ETF (ASX: QLTY), $353.86 million

VanEck Morningstar Wide Moat ETF (ASX: MOAT), $494.11 million

Betashares Global Cybersecurity ETF (ASX: HACK), $640.44 million

Betashares Nasdaq 100 ETF (ASX: NDQ), $2.54 billion

BetaShares Australia 200 ETF (ASX: A200), $2.74 billion

VanEck MSCI International Quality ETF (ASX: QUAL), $3.07 billion

(Market capitalisations as at market close on 10 February 2023)

Why our Foolish writers love these ASX exchange-traded funds

VanEck Global Clean Energy ETF

What it does: The VanEck Global Clean Energy ETF aims to invest in the 30 largest and most liquid global companies working in clean energy production, as well as associated technology and equipment.

By Brooke Cooper: Part of being a long-term investor is looking to the horizon in an effort to envisage what the world might look like in 10, 20, or 50 years’ time. And one megatrend I think will be here to stay is the energy transition.

I expect demand for renewable energy sources – and investment in the space – will continue increasing as the world moves to decarbonise.

But how might one make the most of such an opportunity? There’s an ASX ETF for this!

I think the VanEck Global Clean Energy ETF could be an easy way to get exposure to the decarbonisation megatrend.

Motley Fool contributor Brooke Cooper does not own units of the VanEck Global Clean Energy ETF.

Betashares Global Quality Leaders ETF

What it does: This ETF invests in a portfolio of 150 global companies that rank highly on quality metrics. Those four metrics include return on equity (ROE), debt-to-capital, cash flow generation ability and earnings stability.

By Tristan Harrison: Global shares suffered in 2022 as higher interest rates enabled investors to generate semi-decent returns from traditionally safer asset classes like cash and bonds.

Since the end of 2021, the Betashares Global Quality Leaders ETF has dropped by close to 20%. I don’t believe the businesses this ASX ETF holds have seen a 20% reduction in their quality. But, they are now a fifth cheaper than before.

Also, in a potential downturn, I think the high-quality shares within this ETF are more likely than the average business to perform well.

For an annual management fee of just 0.35%, I like the diversification and quality overlay this ETF has to offer.

Motley Fool contributor Tristan Harrison does not own units of the Betashares Global Quality Leaders ETF.

VanEck Morningstar Wide Moat ETF

What it does: This ETF invests in a portfolio of US shares identified as having an intrinsic competitive advantage.

By Sebastian Bowen: This actively-managed ETF is one of my oldest and most valued investments. It invests in a basket of US shares that have been identified as possessing a wide moat, or distinct competitive advantage.

This is a concept popularised by the legendary Warren Buffett and refers to characteristics, such as a strong brand, that help a company ward off competition.

The approach has worked well for this ETF, with the Wide Moat ETF averaging a 14.54% per annum return since 2015.

As such, this is an investment I would happily recommend this February.

Motley Fool contributor Sebastian Bowen owns units of the VanEck Morningstar Wide Moat ETF.

Betashares Global Cybersecurity ETF

What it does: This ASX ETF offers investors exposure to 36 large-cap global cybersecurity stocks, predominantly listed in the United States. Its top holdings are Broadcom, Cisco Systems, Fortinet, Infosys, and Palo Alto Networks.

By Bernd Struben: Among the lessons learned in 2022 is that cybercriminals are here to stay. This was driven home by the massive data breaches experienced by Optus and Medibank. And instances of hacking were far from limited to just those two big players.

Hoping to keep their data secure, 80% of larger Australian companies intend to increase their cybersecurity spending in 2023, according to research by Netskope. That’s after 63% of large companies reported ramping up spending in 2022.

With hackers targeting individuals and corporations across the world, global cybersecurity spending will most likely continue to grow in the foreseeable future. And I believe that should help support the Betashares Global Cybersecurity ETF price and its distribution payouts.

At the current price, this ASX ETF pays a trailing annual distribution yield of 8.3%, unfranked.

Motley Fool contributor Bernd Struben does not own units of the Betashares Global Cybersecurity ETF.

Betashares Nasdaq 100 ETF

What it does: This ETF invests in 100 of the largest non-financial businesses on the US NASDAQ exchange. Examples include Microsoft, Apple, Alphabet, Amazon, Tesla, Adobe, Intel, and Meta Platforms.

By Bronwyn Allen: We live in a high-tech age, and that’s never going to change. I believe current short-term economic headwinds like rising inflation and interest rates are providing a great buy-the-dip opportunity on tech stocks.

I like the Betashares Nasdaq 100 ETF far more than some other tech-focused ETFs, like the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC). This is simply because NDQ holds a bunch of world-leading brands, whereas Australia’s tech sector is junior by comparison.

Personally, if I’m going to invest in tech, I prefer to put my money into an ETF with Microsoft-sized businesses that are earning great, reliable profits, as opposed to tech start-ups — even if they are promising.

The NDQ ETF share price lost 31% of its value over the 12 months of 2022, but it’s already up by around 11% in 2023!

Motley Fool contributor Bronwyn Allen does not own units of the Betashares Nasdaq 100 ETF.

BetaShares Australia 200 ETF

What it does: Providing cheap access to the top 200 Australian companies, this Betashares ETF is a no-frills way of earning the average return of the Australian share market. Closely emulating the S&P/ASX 200 Index (ASX: XJO), the A200 ETF predominantly comprises the big banks and miners.

By Mitchell Lawler: Trends come and go – sometimes they fail to materialise altogether. While I can see the value in sector-based or thematic ETFs, I much prefer to invest in companies, not themes.

Instead, where I see ETFs being highly valuable is for low-cost, passive index investing. It might be considered ‘boring’, but we know that the ASX 200 has always moved to higher highs over time, whilst also producing a delicious dividend yield.

Even the great Warren Buffett is a major proponent of low-cost index investing.

Notably, the Betashares Australia 200 ETF is the cheapest Australian shares ETF on offer – even beating those offered by Vanguard – with a management fee of 0.07%.

Motley Fool contributor Mitchell Lawler does not own units of the Betashares Australia 200 ETF.

VanEck MSCI International Quality ETF

What it does: This ASX ETF gives investors exposure to a diversified portfolio of approximately 300 quality, international companies listed on exchanges in developed markets around the world (excluding Australia).

By James Mickleboro: I think one of the best ways to grow your wealth is by investing in quality shares over a long period. This ETF provides investors with an easy way to do exactly that by pulling together approximately 300 of the world’s highest-quality companies.

To be included in the fund, a company needs to have low leverage, high earnings growth rates, and high returns on equity (ROE).

A few examples of companies that tick these boxes and are included in this ASX ETF are Apple, ASML, Microsoft, Nike, Nvidia, and Visa.

The VanEck MSCI International Quality ETF has fallen by almost 7% over the past year so could offer a buying opportunity in February.

Motley Fool contributor James Mickleboro does not own units of the VanEck MSCI International Quality ETF.

The post Top ASX ETFs to buy in February 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 fantastic ETFs for ASX investors to buy and hold
• The smartest ASX shares to buy with $20 right now
• Top ASX growth shares to buy in February 2023
• 3 fantastic ETFs for ASX investors to buy in February
• How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Adobe, Alphabet, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Cisco Systems, Fortinet, Intel, Meta Platforms, Microsoft, Nike, Nvidia, Palo Alto Networks, Tesla, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended ASML, Adobe, Alphabet, Amazon.com, Apple, Meta Platforms, Nike, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Big dividend yields are always nice, but what if we could get strong gains as well?

Well, I have some good news for you. Listed below are a couple of ASX dividend shares that analysts believe offer both of these.

Here’s what you need to know:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share to look at is property company HomeCo Daily Needs.

It is focused on convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services.

The team at Morgans is positive on the company and has an add rating and $1.52 price target on its shares.

The broker highlights that HomeCo Daily Needs has significant development pipeline valued at over $500 million. It expects this to be supportive of solid growth in the future.

As for dividends, Morgans is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.6% and 6.75%, respectively.

Finally, the broker’s price target suggests potential upside of 20%.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that has been tipped as a buy is Westpac.

It is of course Australia’s oldest bank and a member of the big four in Australia.

Goldman Sachs is a fan of the company and has a conviction buy rating and $27.68 price target on its shares.

The broker believes Westpac is well-placed to deliver solid earnings growth thanks to its cost reduction plans and rising interest rates.

It expects this to lead to fully franked dividends of 148.4 cents per share in FY 2023 and 160 cents per share in FY 2024. Based on the current Westpac share price of $23.84, this will mean yields of 6.2% and 6.7%, respectively.

Goldman’s price target for Westpac implies potential upside of 16% for investors.

The post Big yields and strong gains ahead for these ASX shares: analysts appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares with a dividend boost coming
• ASX 200 investors: A big bank stock that pays 5% dividend income
• Expect big yields from these ASX 200 dividend shares in 2023: analysts
• These are the best ASX dividend shares to buy: broker
• NAB shares: A top tip for passive income?

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 Macquarie 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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The United Malt Group Ltd (ASX: UMG) share price was the second-best performer in the S&P/ASX 200 Index (ASX: XJO) today.

United Malt shares hit a high of $3.75 today, up 5.6% amid investors reacting positively to news delivered at the annual general meeting (AGM).

The commercial maltster finished the session on Friday at $3.72, a gain of 4.79%.

The ASX 200 benchmark itself finished down 0.8% to 7,433.7 points.

So, what did the chair of United Malt Group tell shareholders today?

Dividends are back!

United Malt Group chair Graham Bradley AM told shareholders the company expected to recommence paying dividends in FY23.

The ASX 200 share did not pay a final dividend in FY22 due to the company’s poor financial performance.

Bradley said:

Looking ahead, your Board expects a progressive recovery in earnings during FY23 and we expect
to resume dividend payments …

While certain challenges remain, several of these headwinds are expected to abate as FY23 progresses.

FY22 net profit after tax (NPAT) came in at $11.6 million, which was 20% down on FY21.

The company blamed resurgent COVID-19 impacts, a severe drought affecting the Canadian barley crop, significant disruption to ocean and rail supply chains, and increased freight and energy costs.

United Malt paid an interim dividend of 1.5 cents per share in FY22. This was equivalent to 40% of the full-year underlying NPAT.

This is well short of the company’s dividend payout ratio of approximately 60%.

What is United Malt doing to improve its financial performance?

Bradley said the company was progressing with several initiatives to streamline operations and rejig contracts after “a challenging year” in FY22.

United Malt is progressively re-negotiating prices and improving commercial terms with its largest customers.

Bradley explained that this “will reduce our risk exposure to barley supply, quality and prices and to additional energy costs and freight surcharges”.

He said the new pricing terms had been coming into effect since 1 January.

The impact “will flow through to our results from the second, third and fourth quarters of FY23”.

He added:

Our first half FY23 results (which we will report in May) will, therefore, reflect a half year when we combine two very different quarters and we will seek to highlight the improvement in the second quarter.

What’s the outlook for this ASX 200 share?

Bradley said the company expected “a further step-up in earnings in FY24”.

He said the North American crops were good, and the company did not expect to see the same supply or quality problems it experienced in FY22.

He said sea freight and container rates and availability were better, and gas prices were moderating.

The company confirmed earlier guidance of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) (before SaaS costs) of $140 million to $160 million.

This compares with an FY22 EBITDA (before SaaS costs) of $105.9 million, down 23% on FY21.

A potential headwind in FY23 is the possibility of reduced beer demand due to inflation and fears of a recession. Bradley said the company is “carefully monitoring” this aspect.

The post Why this ASX 200 share smashed the market with a 5% rally today appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Could an Aussie house price crash destroy the ASX 200 in 2023?
• The CBA share price is trading near all-time highs. Should you cash in?
• Guess which ASX 200 healthcare share is surging 5% on a new US patent?

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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Are you wanting some more ASX 200 blue chip shares for your portfolio? Then read on!

Listed below are two blue chip shares that have been rated as buys by brokers. Here’s what they are saying about them right now:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 share to buy is NAB, which is of course one of Australia’s big four banks.

Goldman Sachs is tipping the banking giant as a buy due largely to its exposure to commercial lending.

In addition, along with Westpac Banking Corp (ASX: WBC), the broker believes that NAB is well-placed to deliver double digit returns for investors over the coming years. It recently commented:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years. Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

Goldman Sachs has a buy rating and $35.60 price target on its shares. It also expects a $1.78 per share fully franked dividend in FY 2023, which equates to a generous 5.6% yield.

ResMed Inc (ASX: RMD)

Another blue chip ASX 200 share that could be a buy is ResMed. It is a medical device company with a focus on sleep disorder treatments.

While it has had a bumpy time during the pandemic, trading conditions appear to be returning to normal now for its core sleep treatment business. Combined with growth in the digital business, the team at Morgans is tipping ResMed for big things in the future. It commented:

While we expect the next few quarters to be volatile as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $37.00 price target on ResMed’s shares.

The post Buy NAB and this ASX 200 blue chip share: brokers appeared first on The Motley Fool Australia.

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More reading

• Macquarie has these ASX 200 dividend shares in its income portfolio
• NAB shares: A top tip for passive income?
• Buy NAB and this ASX 200 dividend share now: brokers
• Here’s why analysts rate these blue chip ASX 200 shares as buys
• 3 ASX dividend shares I’m backing to outperform in 2023

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Westpac Banking. 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) ended the week just the way it started it – in the red. The index closed Friday’s session 0.76% lower at 7,433.7 points, marking a 1.65% week-on-week fall.

It came as the Reserve Bank of Australia issued its latest Statement on Monetary Policy. The central bank “expects that further increases in interest rates will be needed” in its battle against inflation.

Of course, that was seemingly bad news for the rate-sensitive S&P/ASX 200 Information Technology Index (ASX: XIJ), which dropped 2% today.

The S&P/ASX 200 Energy Index (ASX: XEJ) also struggled, falling 1.7% after energy commodities slumped overnight.

One sector rose above the chaos, however. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) lifted 0.9%, driven by the United Malt Group Ltd (ASX: UMG) share price. It gained 4.8% amid the company’s annual general meeting.

But it was outperformed by one of its ASX 200 peers. Let’s take a look at the stock posting the index’s biggest gain on Friday.

Top 10 ASX 200 shares countdown

The Imugene Limited (ASX: IMU) share price took out the ASX 200’s top spot today, rising 7.4% to close at 14.5 cents.

Its gains came on the announcement of a new United States patent.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Imugene Limited (ASX: IMU)	$0.145	7.41%
United Malt Group Ltd (ASX: UMG)	$3.72	4.79%
Johns Lyng Group Ltd (ASX: JLG)	$5.58	3.53%
Arena REIT No 1 (ASX: ARF)	$3.85	2.94%
Endeavour Group Ltd (ASX: EDV)	$6.82	2.4%
Sayona Mining Ltd (ASX: SYA)	$0.24	2.13%
Treasury Wine Estates Ltd (ASX: TWE)	$14.38	1.63%
Insurance Australia Group Ltd (ASX: IAG)	$4.71	1.29%
Metcash Limited (ASX: MTS)	$4.03	1.26%
Computershare Limited (ASX: CPU)	$24.73	0.94%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Appen, Endeavour, Imugene, and Treasury Wine shares are pushing higher
• Treasury Wine share price climbs on China tariff hopes
• Guess which ASX 200 healthcare share is surging 5% on a new US patent?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Brooke Cooper 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 Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group, Metcash, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A number of S&P/ASX 300 Index (ASX: XKO) shares are facing weakening share prices again. Especially as inflation and rising interest rates throw up some more volatility.

When compelling businesses hit 52-week lows, that could be a good signal for investors to take advantage of lower prices.

This year could lead to a difficult economic situation for some businesses, but that doesn’t mean it’s going to last forever.

There could be an opportunity with these ASX 300 shares that could have been oversold by the market.

Dicker Data Ltd (ASX: DDR)

Earlier today, the Dicker Data share price hit a 52-week low. Over the past year, it has fallen around 40%.

For readers that haven’t heard of this business, it acts as a distributor of a wide range of products including Cisco Systems, Dell, HP, Microsoft and many more. It’s also expanding in other areas such as cybersecurity.

The ASX 300 share recently reported its result for the 12 months to December 2022. It said that revenue was up 25% to $3.1 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 9.3%, operating profit before tax increased 0.8% to $106.9 million and net profit after tax (NPAT) declined 0.3% to $73.4 million.

Management said that the company suffered from higher costs, particularly higher wages and finance costs. Higher costs were incurred as the acquired businesses Exceed and Hills were integrated. It’s yet to achieve significant cost synergies with these acquisitions.

Earnings are expected to rise noticeably to FY24. Commsec numbers suggest that earnings per share (EPS) could be 52.4 cents, putting the Dicker Data share price at 17 times FY24’s estimated earnings. In that year it could pay an annual dividend per share of around 50 cents per share, translating into a grossed-up dividend yield of 8%.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a leading global pathology business with a presence in a number of countries including Australia, the UK, the USA, Germany and so on.

It played an important part during COVID-19 by carrying out millions of tests. In October 2022 it generated $57.7 million of COVID-19-related revenue, so FY23 will also include earnings from testing.

While the ASX 200 share’s profit is likely to be lower than in FY22 because of the significantly reduced COVID-19 testing in FY23, there are still positive signs. In the four months to October 2022, base (non-COVID) revenue had increased from $2.29 billion to $2.45 billion, up 6.7%.

EBITDA in the four months to October 2022 was $621 million, up 32.7% compared to the four months to October 2019 – pre-COVID times.

I think that healthcare treatments delayed because of the pandemic will now flow through Sonic Healthcare’s financials. Despite that, the Sonic Healthcare share price is down almost 40% since the start of 2022.

According to estimates on Commsec, the Sonic Healthcare share price is valued at under 19 times FY23’s estimated earnings. It has a trailing grossed-up dividend yield of around 5%.

The post 2 quality ASX 300 shares trading at bargain-basement prices today appeared first on The Motley Fool Australia.

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More reading

• These 2 ASX All Ords shares will trade ex-dividend next week
• Dicker Data share price tumbles to multi-year low. Is it too cheap to miss?
• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
• Bargain alert? 3 high-quality ASX shares that just hit 52-week lows
• Why did ASX 300 healthcare stock Polynovo tumble 12% today?

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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Sonic Healthcare. 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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BHP Group Ltd (ASX: BHP) shares will be in focus this month.

That’s because the mining giant is scheduled to release its half year results on 21 February.

And with prices of commodities such as coal, copper, and iron ore booming right now, another robust result is likely to be revealed.

Ahead of the release, let’s take a look at what analysts are expecting from the Big Australian.

What is expected from BHP’s half year results?

According to a note out of Goldman Sachs, its analysts expect the miner to deliver a result a touch softer than consensus estimates. It commented:

GSe underlying EBITDA US$13.7bn vs. cons US$14.3bn (difference is GS lower on met & thermal coal; US$2.7bn vs. cons US$3.0bn, lower on Nickel West). NPAT US$6.9bn vs. cons US$7.0bn.

It also feels the market may be a touch optimistic on the BHP dividend and is forecasting an interim dividend of “US88cps (65% payout NPAT) vs. cons US98cps (71% payout).”

What else should you look for?

Another thing that could have an impact on BHP shares is its outlook commentary.

Goldman revealed that it will be looking for comments on the miner’s plans for growth projects and mergers and acquisitions (M&A). It said:

We expect focus will be on growth including any update on the copper & nickel growth strategy (timing of Chile projects considering proposed fiscal changes, nickel growth/ e.g. Kabanga) & portfolio (possible further met coal divestments, further M&A), capex guidance (US$9bn for FY24, US$10bn for FY25; ~50% is copper), & decarb spend (US$4bn until FY30), and a possible increase in Samarco liability provision (balance was US$3.4bn mid-CY22). We recently took a detailed look at BHP’s copper production in Chile and assessed the 2-stage smelter at Olympic Dam and synergies with OZL.

The post Own BHP shares? Here’s what the market expects from its half year results appeared first on The Motley Fool Australia.

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More reading

• Why Morgans just added these ASX 200 shares to its best ideas list
• Can the BHP share price keep rising or has it peaked?
• This little-known ASX share offers ‘inflation protection at a reasonable price’: fund manager
• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares
• Invest $20,000 in ASX 200 shares and get $1,500 each year without lifting a finger

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 looking like the S&P/ASX 200 Index (ASX: XJO) is set to end the trading week on a low point so far this Friday. After a bumpy week, the ASX 200 has taken another turn for the worse today, and is currently down by a nasty 0.71% at just under 7,440 points.

But let’s not let this ruin our weekends. So it’s time now to take a look at the ASX 200 shares that are at the top of the share market’s trading volume charts at present, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

New Hope Corporation Limited (ASX: NHC)

First up today is the ASX 200 coal miner New Hope. This Friday has seen a hefty 11.75 million new Hope shares exchanged on the marks today thus far. There hasn’t been any major news or announcements out of New Hope today.

But that hasn’t stopped this coal stock from tanking by a rather horrible 8.2% so far this session to $5.33 a share. As we looked into earlier today, coal shares are on the nose thanks to falling coal prices and news of possible widespread discounting in the industry.

It’s this steep fall in value that is probably to blame for the high volumes we are seeing.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX 200 coal share is our next stock worth looking at. So far today, a sizeable 17.05 million Whitehaven shares have changed owners on the ASX boards.

As a fellow ASX 200 coal miner, Whitehaven seems to be suffering from the same trends as New Hope and has also sold off heavily.

Investors have been a little more forgiving with this one, though. The Whitehaven share price has dipped 3.23% to $7.78 at this point of the day.  Still, this is almost certainly the source of the volumes we are witnessing.

Sayona Mining Ltd (ASX: SYA)

Our third, final and most traded ASX 200 share this Friday is none other than lithium share Sayona Mining. So far this session, a whopping 23.17 million Sayona shares have been bought and sold.

Sayona has bucked both the trend of the broader market and the coal shares above. The would-be lithium producer is currently up a healthy 2.98% at 24 cents per share.

This could be a consequence of the presentation Sayona released to investors this morning. This told the markets that the company was “on track to deliver lithium production in March 2023”.

This, together with the strong gains we are seeing, looks like the cause of the elevated trading volumes on display.

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

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• Why AGL, New Hope, News Corp, and REA shares are dropping today
• Could an Aussie house price crash destroy the ASX 200 in 2023?
• The CBA share price is trading near all-time highs. Should you cash in?
• New Hope share price dives 9% as ASX 200 coal stocks get hit hard
• This ASX All Ords fundie just dumped $300 million of Whitehaven shares. Is this a red flag?

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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When it comes to my personal share portfolio, I like to invest in a mix of individual ASX shares, international shares, and managed investments. That way, I can choose the companies that I want in my portfolio, while outsourcing some of the work to professional investors.

If my own share picks prove to be failures, at least I have some other investments, and expertise, to rely on.

Some of these managed investments are index funds. But others are actively managed.

One of the net shares I intend to buy falls into the latter camp.

When I look for actively managed investments, I like to analyse a number of factors. These include long-term investment performance, fees, and dividend potential.

The next ASX share I’m going to buy

The Plato Income Maximiser Ltd (ASX: PL8) hits all three, in my view.

The Plato Income Maximiser Fund is a listed investment company (LIC) that targets dividend income. Like all LICs, this company invests in a portfolio of shares on behalf of its shareholders.

Some of its most recent top holdings include dividend payers like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and QBE Insurance Group Ltd (ASX: QBE).

So let’s go through my three criteria.

Firstly, investment performance. The Plato Income Maximiser Fund has delivered a total return (including dividends and franking credits) of 9.2% per annum since its inception in 2017, net of fees. That’s well above the 7.6% per annum return of its ASX 200 benchmark. It’s also beaten the ASX 200 over the past one and three years:

In terms of dividends, this LIC pays out monthly, fully-franked dividend payments, which I find attractive. This lets me put my money to work sooner than a six-month payer. At the current share price, the Plato Income Maximiser Fund has a trailing dividend yield of 5.33%, which I think is very attractive.

Finally, let’s talk fees. The Plato Income Maximiser Fund charges an annual management fee of 0.8%. While that’s not as competitive as an index fund, I still think it’s worth paying for considering the outperformance this LIC has generated against the ASX 200.

So overall, I think the Plato Income Maximiser would make a great addition to my ASX share portfolio, and that’s why it will probably be the next ASX share that I buy.

The post Here’s the next ASX share I’m going to buy appeared first on The Motley Fool Australia.

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More reading

• Two ‘top prospect’ ASX 200 dividend shares for 2023 revealed: fund manager
• Here’s the next ASX All Ordinaries share I’m going to buy

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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