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More than one expert is hinting that copper might be the new trendy commodity among ASX investors, like what lithium has been the last few years.

Just this week The Motley Fool reported Argonaut associate dealer Harrison Massey spruik a copper miner as a buy, and Shaw and Partners senior investment advisor Adam Dawes do the same.

Now Maqro Capital head of trading Mark Gardner has piled on, explaining why there will be a massive price swell for the commodity.

Plus, in a post on Livewire, he named the three best ASX shares to get copper exposure:

Why copper is about to see a huge shortage

Gardner pointed out that coal, nickel and lithium all experienced a “price squeeze” over the past 12 months.

“The EV transition drove the squeeze in lithium, rare earths and nickel — all of which are key components of battery making,” he said.

“While the battery materials shortage will largely be solved by oncoming global production over the next few years, copper is the forgotten commodity that is required to conduct all this energy, both fossil and green.”

Four red flags are indicating to Gardner that demand will far outstrip supply of copper for the coming period:

• Over-reliance on one region for supply,
• Lack of new mines due to environmental pressure
• Record-low inventory levels
• Supply issues due to geopolitics

“Arguments one and four are dangerously related. The two biggest global producers of copper are Chile and Peru. Together, the South American powerhouses make up 43% of the world supply,” said Gardner.

“They also happen to be in political disarray.”

Peru recently saw a failed coup that triggered mass demonstrations.

“The protests already threatened 30% of Peru’s copper supply with some Chinese miners having already closed down some mines,” Gardner said.

“This is the equivalent to 75% of Australian production shutting down tomorrow. If political unrest continues, 13% of the world supply may come under threat.”

Chile is going through its own issues, with high inflation and unemployment.

“This has seen the crime rate jump by a staggering 50% and protests from the left gaining momentum, which will spell disaster for the foreign-owned copper mines.”

The lack of new mines has led to a depletion of most of the copper that was warehoused or recycled.

A perfect storm is, therefore, brewing.

“Copper has all the hallmarks of being the next big price squeeze in the commodity sector.” 

How to get exposure to copper on the ASX

Asked to name the three best ASX shares for investors to gain copper exposure, Gardner admitted the opportunities were scarce.

So his first pick was actually an exchange-traded fund — Global X Copper Miners ETF AUD (ASX: WIRE).

“This new ETF from GlobalX ETFs has some of the best copper producers from around the globe,” 

“Canada, Australia, Mexico and China make up over 60% of the ETF, which largely avoids the perils of the South American unrest with only a 5.8% exposure to Chile.”

The second opportunity is possibly the “last man standing” after OZ Minerals Limited (ASX: OZL) disappears from the bourse after the BHP Group Ltd (ASX: BHP) takeover.

“Sandfire Resources Ltd (ASX: SFR) is one of the last large cap copper plays left on the ASX,” said Gardner.

“Given the strong copper price dynamics, we see strong potential for the company to exceed revenue expectations.”

The third pick is a smaller player but, according to Gardner, may offer the greatest upside.

“Aeris Resources Ltd (ASX: AIS) has five tenements with four in production in 2023. The combined mine life of the five projects is 18 years with 57 to 71kt of production expected from the group next year and 780kt in reserves.”

The post Is copper the new lithium? Expert names 3 ASX shares to buy appeared first on The Motley Fool Australia.

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More reading

• Best buy for 2023: Expert’s pick for the one ASX share to grab right now
• 3 top ASX mining shares I’d dig into and buy in February
• Why Bega Cheese, IAG, Northern Star, and Sandfire shares are dropping
• Here are the top 10 ASX 200 shares today
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 BHP Group Ltd (ASX: BHP) share price has been a very strong performer in recent months.

In fact, as you can see on the chart below, since this time six months ago, the Big Australian’s shares are up 24%.

As a comparison, the benchmark ASX 200 index is up 7% over the same period. That’s a cool 17% outperformance from this mining giant’s shares.

Can the BHP share price keep climbing?

Unfortunately, one leading broker is calling time on the BHP share price gains.

Morgans has just released its best ideas list for February. These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence. They are also its most preferred sector exposures.

But for the first time since March 2020, there is no BHP in the broker’s best ideas list this month. It has been replaced with Mineral Resources Ltd (ASX: MIN).

According to the note, the broker made the move on valuation grounds after the aforementioned strong gain by the BHP share price. It also believes its earnings profile and trading conditions have softened recently.

In light of this, it has put a hold rating and $47.00 price target on the miner’s shares. This price target is a touch lower than the current BHP share price of $48.10.

Commenting on the removal, Morgans said:

BHP remains in robust shape, but compared to mid-2022 its earnings profile, operating conditions and global macro conditions have all reduced. Despite this BHP continues to push to fresh record highs in terms of share price. As a result we are left believing BHP is trading moderately ahead of fundamentals and maintain our Hold rating with an upgraded A$47ps target.

The post Can the BHP share price keep rising or has it peaked? appeared first on The Motley Fool Australia.

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More reading

• 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
• Why BHP shares are poised to continue delivering strong dividends in 2023: expert
• BHP share price jumps as Oz Minerals acquisition clears major hurdle

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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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part three of this edition, we’re rejoined by Adam Lund, analyst, head of trading & co-founder, Spheria Asset Management.

Motley Fool: Your focus is on the smaller end of the market with the Spheria Australian Smaller Companies Fund and Spheria Australian Microcap Fund. Are there any ASX shares or broader sectors you’re looking to avoid in 2023?

Adam Lund: We try to avoid bubble-like themes and sectors riding excessive momentum.

The lithium complex is an area of the market that we’re currently avoiding given the expansion in market cap that is being paid for negative earnings.

The lithium cost curve versus the spot price does not make any sense to us given even the highest-cost producers are able to turn a profit at current spot prices, which only invites more supply to the market.

MF: What’s your outlook for lithium prices then?

AL: We’re starting to see early signs of this unwinding with the spodumene price down more than 30% from recent highs and lithium carbonate down about 20% from recent highs.

Yet, despite that, ASX lithium shares continue to rally, perhaps on increased hope for China demand as the government focuses on stimulating consumption.

MF: So, that’s an area you’ll avoid for now. On the flip side, which sectors look promising in the coming quarter?

AL: We think that the retail sector has been mispriced by the market with quality retail players priced for a depression-like environment.

With consumer spending patterns holding, at least for the short-term, we’re currently witnessing a re-rate to the sector as investors scramble to close their underweight to consumer discretionary exposure ahead of earnings season.

The market is starting to look through peak inflation and the rate hike cycle and investors will be watching inflation data closely over the coming quarter and positioning accordingly.

MF: Are any other sectors looking like they’ll outperform in 2023?

AL: Another area of the market we like is what I’d describe as ‘value tech’.

In the early stages of this year, we’ve seen a renewed optimism in the market which has seen a rotation into sectors such as growth tech – those which had been oversold with the market last year.

However, it’s value tech that we view as an attractive part of the market today, given our valuation obsession. We expect M&A activity to heat up in this space over the short to medium term.

MF: What do see as the biggest threat for ASX shares in the year ahead?

AL: Inflation and the rate hike cycle is a key risk for markets. Further rate hikes will see pressure on equity markets.

But, should we start to see signs of peak inflation, the risk may shift to the upside as the market moves to price a holding pattern in rates and potential future rate cuts, which would likely see a rotation back towards equities and riskier assets.

The market often overplays macro factors which creates opportunities for long-term investors. We have been positioning the portfolio towards longer-duration assets with the view that the market has overplayed the rate hike cycle.

We are of the opinion that we are closer to the top of the rate hike cycle than the bottom and have been fully invested for this reason.

MF: If the market closed tomorrow for five years, which ASX share would you be sure to want in your portfolio?

AL: An ASX share named Deterra Royalties Ltd (ASX: DRR) would certainly be one to own under this scenario.

Deterra owns a portfolio of mining royalties including a 1.23% royalty on iron ore production at a site in the Pilbara region known as Mining Area C. The site is majority owned by BHP Group Ltd (ASX: BHP) and has an estimated mine life of more than 50 years.

Royalties provide an annuity-like income stream, and Mining Area C – the jewel in Deterra’s crown – has a production capacity that’s likely to more than double over the next few years, which will see investors benefit from capacity payments as the production profile expands.

Deterra currently trades on 11 times EV to EBIT [enterprise value to earnings before interest and taxes], pays a 6% fully franked dividend yield, has strong cash flow conversion, and operates on a 96% EBIT margin with a net cash balance sheet.

The royalty is paid on a percentage of revenue, thus offering investors inflation protection at a reasonable price, which is important in the inflationary environment we are currently operating in.

**

If you missed the earlier installations of our fund manager interview series with Adam Lund, you can read part one right here and part two by clicking here.

(You can find out more about Spheria Asset Management’s fund offerings here.)

The post This little-known ASX share offers ‘inflation protection at a reasonable price’: fund manager appeared first on The Motley Fool Australia.

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More reading

• 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
• Why BHP shares are poised to continue delivering strong dividends in 2023: expert
• BHP share price jumps as Oz Minerals acquisition clears major hurdle
• Why are ASX 200 iron ore shares being hammered hard on Friday?

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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If you’re a fan of buying and holding ASX 200 shares then you might want to consider the two listed below.

Both have been named as buys and tipped to deliver solid long term growth. Here’s what you need to know about these ASX 200 shares:

Breville Group Ltd (ASX: BRG)

This leading appliance manufacturer could be an ASX 200 share to buy for the long term.

Breville has been growing at a solid rate for over a decade. This has been driven by the popularity of its brands, its international expansion, successful acquisitions, and its investment in research and development.

The good news is that all these drivers remain in place and Breville appears well-positioned to replicate its success over the next decade. Particularly given its exposure to the growing premium coffee in-home consumption trend.

It is partly for this reason that Morgans currently has an rating and $25.00 price target on its shares.

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a top buy and hold option is Cochlear.

Like Breville, it has been growing at a consistently solid rate for at least a decade. This has been driven by its world class hearings solutions portfolio and growing demand.

And with demand only expected to increase as the global population ages, Cochlear appears well-placed for more of the same over the next decade. Particularly given the industry’s high barriers of entry and its sizeable investment in research and development. The latter looks set to help the company maintain its leadership position for the foreseeable future.

Goldman Sachs is very positive on Cochlear. It currently has a buy rating and $247.00 price target on its shares.

The post Buy and hold these ASX 200 shares: experts appeared first on The Motley Fool Australia.

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More reading

• Why experts say these ASX 200 blue chip shares are buys
• 10 ASX stocks to buy before they report this earnings season: Goldman
• A new bull market is coming: 3 ASX shares I’d load up on before it gets here
• Goldman reveals the ASX shares that could surprise to the upside (and downside) this reporting season
• Here are the top 10 ASX 200 shares today

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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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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Believe it or not, most professional investors are wary of revealing their highest conviction ASX share in public.

There are some good reasons why this is so.

It could be because they want to keep it as a secret sauce for their fund. Or because they don’t want to be embarrassed later if the stock tanks.

So when an expert singles out one particular company as the best stock to own this year, you have to admire his or her courage.

And that’s exactly what we saw with Shaw and Partners senior investment advisor Adam Dawes this week:

Global copper shortage is imminent

Dawes, appearing on Switzer TV Investing, was asked for his “best stock for 2023”.

And in a show of consistency, it was the same stock he was bullish about in December.

“Any real exposure to copper is probably the best thing on our market now that OZ Minerals Limited (ASX: OZL) will leave to go to BHP Group Ltd (ASX: BHP),” he said.

“We think Sandfire Resources Ltd (ASX: SFR) is one of the best stocks that you could put in the portfolio for 2023.”

Dawes conceded the Sandfire share price has already rallied in recent weeks due to the coming global copper shortage.

In fact, the stock has rocketed 26.5% since the start of December.

“But I still think there’s room to move with Sandfire,” said Dawes.

“They’ve got a mine in Botswana, they’ve got a mine in Spain. I think Sandfire is naturally going to attract a lot of the capital that was going to Oz Minerals.”

The structural growth themes for copper demand remain irresistible to Dawes.

“Staying with battery metals, staying with that green theme, and a little bit further down the supply chain. SFR is my best pick for 2023.”

Plenty of other professionals are also excited about Sandfire’s future.

According to CMC Markets, seven out of 13 analysts recommend the stock as a strong buy. However, three of the others do think it’s a strong sell.

Maqro Capital head of trading Mark Gardner this week also named Sandfire Resources as one of three ASX shares he would target to cash in on the copper shortage.

The post Best buy for 2023: Expert’s pick for the one ASX share to grab right now appeared first on The Motley Fool Australia.

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More reading

• Why Bega Cheese, IAG, Northern Star, and Sandfire shares are dropping
• Here are the top 10 ASX 200 shares today
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023
• ‘Exploration breakthrough’: What’s going on with this ASX 200 copper share today?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Looking for dividends? Well, the Australian share market certainly is a good place to start the search.

That’s because the ASX traditionally provides investors with an average dividend yield of approximately 4%.

However, you don’t have to settle for that yield. If you look around, you can find ASX 200 shares that are forecast to provide even greater yields.

For example, two high yield ASX 200 dividend shares that have been rated as buys are listed below. Here’s what you need to know about these shares and their forecast yields:

Westpac Banking Corp (ASX: WBC)

The first ASX 200 dividend share that could provide investors with a big yield this year is Westpac.

According to a note out of Goldman Sachs, its analysts are expecting the big four bank to reward shareholders with a fully franked dividend of 148.4 cents per share in FY 2023.

Based on the current Westpac share price of $23.90, this will mean an attractive 6.2% dividend yield for investors.

Goldman also sees a lot of value in the shares of Australia’s oldest bank. It has a conviction buy rating and $27.68 price target on them.

Woodside Energy Group Ltd (ASX: WDS)

Another ASX 200 share that analysts are expecting a big dividend yield from in 2023 is Woodside Energy.

A note out of Morgan Stanley reveals that its analysts are expecting the energy giant to pay a fully franked $2.72 per share dividend in FY 2023. Based on the current Woodside share price of $36.39, this equates to a sizeable 7.5% dividend yield for investors.

Morgan Stanley also sees plenty of upside for the Woodside share price over the next 12 months. It currently has an overweight rating and $41.00 price target on the energy producer’s shares.

The post Expect big yields from these ASX 200 dividend shares in 2023: analysts appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
• Up 30% in a year, can buying Woodside shares today still create long-term wealth?
• 5 things to watch on the ASX 200 on Wednesday
• Why the Woodside share price could leap higher in 2023
• NAB shares: A top tip for passive income?

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.35% to 7,530.1 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to drop on Thursday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.4% lower this morning. In late trade in the United States, the Dow Jones is down 0.45%, the S&P 500 has fallen 0.95%, and the NASDAQ has dropped 1.45%. The latter was impacted by Google parent Alphabet tumbling as much as 8% on AI competition concerns.

Suncorp rated as a buy

The Suncorp Group Ltd (ASX: SUN) share price could be in the buy zone according to analysts at Goldman Sachs. In response to its half year update, the broker has retained its buy rating and lifted its price target to $14.47. It said: “SUN’s 1H23 underlying insurance margin have proven more resilient and are benefiting from what appears to be earlier repricing, stronger yields and better management of claims inflationary pressures.”

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices rose on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.6% to US$78.34 a barrel and the Brent crude oil price is up 1.5% to US$84.96 a barrel. This was driven by easing interest rate concerns.

AGL results

The AGL Energy Limited (ASX: AGL) share price will be on watch on Thursday when the energy company releases its half year results. According to CommSec, the market is expecting AGL to post a loss after tax of $47.3 million. The good news is that this isn’t expected to stop the company from paying an interim dividend of 17.5 cents per share.

Gold price edges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.25% to US$1,889.6 an ounce. Market volatility appears to have boosted demand for the safe haven asset.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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More reading

• Yields of up to 8%! Should I buy these ASX 200 dividend stocks in February?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Boral, Galan Lithium, Nuix, and Suncorp shares are racing higher
• Why the Suncorp share price has rebounded and hit 52-week high

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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Looking for an ASX 200 share or two to buy? Two that analysts rate as buys are listed below.

Here’s what experts are saying about them:

Seek Limited (ASX: SEK)

The first ASX 200 share that has been tipped as a buy is job listings company, Seek.

The team at Morgans is positive on the company and has $29.40 price target on its shares.

It believes Seek is well-placed for growth in the coming years thanks to its strong market position and favourable tailwinds. It also believes the company is the best option in the classified space. The broker explained:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 share that has been named as a buy is Woolworths.

Goldman Sachs is a very big fan of the retail giant. So much so, the broker has put its shares on its conviction list with a buy rating and $41.20 price target.

Goldman believes Woolworths is the top pick in the supermarket space and expects further market share gains and margin improvements in the coming years. It said:

We believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

The post These ASX 200 shares are buys: experts appeared first on The Motley Fool Australia.

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More reading

• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares
• Buy these growing ASX dividend shares for passive income: Goldman
• Analysts name 2 strong ASX 200 shares for a retirement portfolio
• Goldman reveals the ASX shares that could surprise to the upside (and downside) this reporting season
• The Nasdaq just had its best January in over 20 years. Are ASX tech shares back?

Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX share market has a wide range of S&P/ASX 200 Index (ASX: XJO) dividend stocks that are expected to pay impressive dividend yields over the coming 12 months and beyond.

Being able to pick an investment that has a juicy starting yield and expectations of long-term growth could make a really good combination.

While higher interest rates have made the investment picture more tricky, these three ASX dividend shares could continue to deliver powerful passive income and make excellent income investments.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Bendigo Bank isn’t as big as the major ASX bank shares, but it’s still worth a few billion dollars.

The business could benefit from the higher interest rates because it’s able to pass on interest rate hikes to borrowers more quickly than it does to savers. However, it’s worth noting banks are coming under a bit of political pressure because of that.

Higher lending profits could lead to a higher Bendigo Bank share price and stronger dividends. That’s at least until arrears start rising at banks, including Bendigo Bank.

In terms of how much dividend income the ASX 200 bank stock is predicted to pay, Commsec numbers suggest that Bendigo Bank is going to pay an annual dividend per share of 60 cents. This would translate into a grossed-up dividend yield of around 8.5%.

The estimates also put the Bendigo Bank share price at 11 times FY23’s estimated earnings.

Telstra Group Ltd (ASX: TLS)

In my opinion, Telstra is the leading telco on the ASX. Its mobile network is often regarded as the best in the country, with more network coverage.

With the improvement of 5G over 4G, I think Telstra is in a good place to be able to, over time, replace the household NBN connection with 5G connections for wireless broadband. This could, in turn, boost Telstra’s margins.

I think the fact it has implemented inflation-linked price increases for mobile users is a promising sign for revenue and profit growth.

With the ASX 200 dividend stock also working on cutting costs, Telstra’s earnings per share (EPS) is expected to rise in the coming years.

In FY23, the ASX dividend stock could pay a grossed-up dividend yield of 5.9% according to Commsec.

Centuria Industrial REIT (ASX: CIP)

I think this real estate investment trust (REIT) is one of the best options in the sector.

Higher interest rates could have a double whammy on property-related businesses. They could hit the valuations of the properties themselves, while also leading to higher interest costs – one of the main costs for a REIT.

But, the Centuria Industrial REIT is the largest pure-play Australian industrial listed property business. The ASX 200 dividend stock is benefiting from very strong demand for well-placed logistics properties, driving up rental income. This growth in the rent is doing a good job of offsetting the increasing capitalisation rate of its properties.

In FY23, it’s projected to pay a distribution of 16 cents per unit, according to Commsec. This translates into a forward distribution yield of 4.7%.

The post Yields of up to 8%! Should I buy these ASX 200 dividend stocks in February? 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 Wednesday
• Should I buy Bank of Queensland shares today for the prospect of a Bendigo Bank merger?
• With interest rates heading higher again, the risk is to the downside for these popular blue chip ASX shares
• How I’d generate a $10,000 second income from Telstra shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank 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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If you’re not a fan of stock picking, then don’t let that stop you from investing.

That’s because exchange traded funds (ETFs) are here to make your life easier by allowing you to invest in a group of shares through a single investment.

The even better news is that there are ETFs for every occasion. Whether you want access to tech stocks, whole indices, or income, there’s something out there for you.

With that in mind, two that could be worth considering for a retirement portfolio are listed below. Here’s what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for retirees to consider is the BetaShares S&P 500 Yield Maximiser.

It could be a top option for a retirement portfolio as it has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns at the same time.

It aims to do this through the implementation of an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index. These are 500 of the largest companies listed on Wall Street and includes dividend-payers such as Apple, Bank of America, Exxon Mobil, and Walmart.

The BetaShares S&P 500 Yield Maximiser’s units currently provide investors with a whopping 9.2% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option to consider for a retirement portfolio is the Vanguard Australian Shares High Yield ETF.

The ETF provides investors with low-cost exposure to companies listed on the Australian stock exchange that have higher forecast dividends relative to other ASX-listed companies.

This excludes Australian Real Estate Investment Trusts (A-REITS) and is done with diversification in mind. Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company.

Among the companies included in the fund are income investor favourites such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

The Vanguard Australian Shares High Yield ETF is currently trading with an estimated forward dividend yield of 5.6%.

The post Buy these ASX ETFs for retirement income appeared first on The Motley Fool Australia.

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More reading

• Here’s a top ETF to buy for a passive income boost
• Which of the Vanguard ASX ETFs has performed best over the past year?
• How I’d generate a $4,000 monthly passive income using only ASX ETFs
• Top ASX dividend shares to buy in January 2023

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 BetaShares S&p 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield 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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