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If you’re new to investing and aren’t sure which ASX shares to buy, then you could consider exchange traded funds (ETFs) instead.

ETFs provide an easy way to invest in a large number of shares through a single investment, allowing investors to create a diverse portfolio with relative ease.

But which ETFs would be top options for beginners in 2023? Two that could be worth considering are listed below:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a great option for beginners is the BetaShares NASDAQ 100 ETF.

This ETF provides investors with access to 100 of the largest (non-financial) companies listed on the famous NASDAQ exchange.

Among the high quality shares that you’ll be buying a slice of are global giants such as Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Netflix, Nvidia, and Tesla. BetaShares highlights that this provides investors with access to a high-growth potential sector that is under-represented on the Australian share market.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that could be a great option for beginner investors is the VanEck Vectors Morningstar Wide Moat ETF.

This ETF could be particularly good if you’re a fan of Warren Buffett and want to follow his investment style.

That’s because this Buffett-inspired ETF gives investors access to a group of fairly valued companies that have sustainable competitive advantages (or moats). These are qualities that Buffett looks for when identifying investments.

There are approximately 50 shares included in the index at any given time. At present, this includes the likes of Adobe, Alphabet, Etsy, Kellogg Co, Salesforce, and Walt Disney.

The post 2 of the best ETFs for beginner investors to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX ETFs you might not know pay dividends
• 3 popular ETFs that could be top picks right now
• 2 ASX ETFs I’d buy for a tech rebound in 2023
• 3 wonderful ETFs for ASX investors to buy next week
• The Netflix share price just popped. Here’s one way to buy in on the ASX

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended 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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It only takes a little bit of investing knowledge and common sense to know if some ASX exchange-traded funds (ETFs) pay out dividend distribution.

For example, it would be a pretty safe bet that the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) are dividend payers by virtue of their names alone.

And most investors know that many, if not most, ASX shares are dividend payers, so it would also be a relatively safe assumption that an ASX-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) would also dole out periodic income to its investors.

But let’s talk about some ASX ETFs that might not be such prominent dividend payers but still give their investors plenty of income.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ETF from BetaShares is an index fund that tracks America’s NASDAQ-100 Index (NASDAQ: NDX). This index comprises the 100 largest companies that list on the NASDAQ exchange, excluding financial shares. The NASDAQ is known for housing most of the US tech shares. So you’ll find the likes of Apple, Alphabet, Tesla and Amazon dominating this ETF.

Many US tech shares, including Apple and Microsoft, pay dividends. As such, so too does this ETF. Over the past 12 months, this ETF has given its unit holders a total of $2.04 per unit of dividend distribution income. That gives this ETF an impressive trailing yield of 7.7%.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF from provider BetaShares, this one covers a specific sector in cybersecurity. Its portfolio is dominated by US shares. But there are companies from Israel, India, France and Japan in there too. Some of the fund’s top holdings include Okta, Broadcom, Fortinet and Cisco Systems.

Just like with our last ETF, this fund also houses dividend payers, which include Cisco and Broadcom. Its last dividend distribution came to 68 cents per unit, which gives this fund a trailing yield of 8.74% on current prices.

Global X FANG+ ETF (ASX: FANG)

Last but not least, we have another tech-focused ETF from provider Global X. This ETF is a relatively concentrated one, holding just 10 shares in its portfolio. These include the FANG stocks that give the fund its name: Meta Platforms (formerly Facebook), Apple, Amazon, Netflix and Alphabet (owner of Google).

But you’ll also get Snowflake, Microsoft, Tesla, NVIDIA and AMD (the ‘+’). This ETF’s last distribution was the 68.64 cents per share payment from July last year. That gives the Global X FANG+ ETF a trailing yield of 5.58% on current pricing.

The post 3 ASX ETFs you might not know pay dividends appeared first on The Motley Fool Australia.

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More reading

• Looking for ASX growth shares? I rate these 2 as buys
• Time to return to tech? Here are 2 ASX tech ETFs to buy
• 3 popular ETFs that could be top picks right now
• 2 ASX ETFs I’d buy for a tech rebound in 2023
• Top ASX growth shares to buy in 2023

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. 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. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon.com, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple 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 Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, Nvidia, and 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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Today was a wobbly one for the S&P/ASX 200 Index (ASX: XJO). It jumped in and out of the green over the course of Monday before ultimately closing 0.16% lower at 7,481.7 points.

That was despite a 2.3% gain posted by the S&P/ASX 200 Information Technology Index (ASX: XIJ). The sector’s strong performance followed a 1% overnight lift from the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC).

Also trading in the green was the S&P/ASX 200 Communication Index (ASX: XTJ). It rose 1.1% led by the Seek Ltd (ASX: SEK) share price’s 4.5% surge.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) weighed heavy, falling 0.7%. Its biggest fall was posted by the ResMed Inc (ASX: RMD) share price, which dropped 6.8% on the back of the company’s latest quarterly update.

But while the broader ASX 200 struggled on Monday, some of its constituents soared. Let’s take a look at the 10 shares that outperformed all others today.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was none other than favourite Core Lithium Ltd (ASX: CXO).

Stock in the company soared 8.85% to close at $1.23 on the release of its quarterly update.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Core Lithium Ltd (ASX: CXO)	$1.23	8.85%
Novonix Ltd (ASX: NVX)	$1.935	7.5%
Lynas Rare Earths Ltd (ASX: LYC)	$9.71	6.94%
Paladin Energy Ltd (ASX: PDN)	$0.86	6.83%
Lake Resources N.L. (ASX: LKE)	$0.875	6.06%
Sayona Mining Ltd (ASX: SYA)	$0.295	5.36%
WiseTech Global Ltd (ASX: WTC)	$60.59	5.23%
Seek Ltd (ASX: SEK)	$24.39	4.5%
Domain Holdings Australia Ltd (ASX: DHG)	$3.24	4.18%
Block Inc (ASX: SQ2)	$116.70	3.83%

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 Monday
• Why lithium prices could be ‘higher for longer’: Macquarie
• Why Block, Core Lithium, Lynas, and Xero shares are charging higher today
• These are the 10 most shorted ASX shares
• Core Lithium share price marches higher as key quarterly milestones achieved

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 Block, ResMed, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, ResMed, and WiseTech Global. 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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There are arguably two types of Australians: Those that relish the nine-to-five grind and those that don’t. For those in the latter group, living a never-ending weekend while raking in a ‘wage’ probably sounds like a dream come true. Fortunately, ASX dividend shares can offer such passive income.

And building a ‘wage’ through investing in Aussie stocks need not be overly expensive.

I believe that by regularly setting aside funds to buy undervalued, high-quality ASX dividend shares, I could begin preparing an early retirement (or second wage) in 2023. Here’s how.

How much do I need to invest to see my wage in dividends?

As of August 2022, the average Australian employee was paid $1,250 each week, according to the Australian Bureau of Statistics. That’s around $65,000 annually, pre-tax. So, let’s use that as our base.

If one was to realise a notable – but not impossible – annual dividend yield of 8%, one would need an $815,000 portfolio to receive around $65,000 each year in dividend income.

If you’re anything like me, that’s far from pocket change! Fortunately, it doesn’t need to be invested all at once. Here’s how I would build it up over the years.

Building a portfolio using compounding

If I were aiming to build a portfolio of dividend shares capable of growing to be worth $815,000, I’d focus on compounding my earnings for now.

By reinvesting any dividend income in shares, I could build up my holdings without forking out extra cash.

I think I could put $250 of the average $1,250 weekly wage aside to invest.

If I did so, and I could realise an 8% yield while reinvesting all my dividends, my portfolio could be worth around $815,000 in under 24 years. That could feasibly see me retiring by 2047.

If I made some lifestyle changes, I could potentially stretch my wage further.

By investing $500 a week, I could reach my goal in under 17 years. That could potentially allow me to kick back for the remainder of my ‘working’ days from 2040.

Identifying ASX dividend shares to buy

Of course, realising a consistent 8% dividend yield is a hard – but not impossible – ask.

Right now, S&P/ASX 200 Index (ASX: XJO) companies like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), and Cromwell Property Group (ASX: CMW) each offer yields of around 8%.

Though, higher yields can also come with greater risks. On the other hand, a lower yield would increase the time it would take to reach my goal.

Fortunately, I think there’s a middle ground. An investor buying ASX value shares that are also capable of paying dividends may find themselves receiving higher returns when their investment’s true worth is realised.

Identifying value shares is notoriously tricky. And it’s likely made trickier if one is seeking passive income on top. However, it can be done.

If that was my aim, I would analyse a company’s business, its true value, balance sheet, and strengths and weaknesses to assess whether it might be able to grow its valuation and payouts in the future.

Still, even the most considered investment can’t be guaranteed to provide either dividends or capital gains.

The post Sick of the grind? Here’s how I’d aim to replace my wage with dividend income in 2023 appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 energy shares? Here’s why the oil price may already have hit its 2023 lows
• Why is the BHP share price slipping on Monday?
• Is now the time to load up on Woodside shares?
• Invested $5,000 in BHP shares 5 years ago? Here’s how much passive income you’ve earned
• 5 things to watch on the ASX 200 on Monday

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 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 S&P/ASX 200 Index (ASX: XJO) seems to have gotten up on the wrong side of the bed this morning. After briefly opening in positive territory at the start of today’s session, the ASX 200 is now firmly in the red so far this Monday. At present, the index has slipped by 0.04% to just over 7,490 points.

But rather than trying to figure all of that out, let’s now take a look at the ASX 200 shares currently topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Monday

Insurance Australia Group Ltd (ASX: IAG)

ASX 200 insurance purveyor IAG is our first share worth taking a gander at this Monday. So far this session, a notable 7.34 million IAG shares have been swapped. This is almost certainly a result of the gloomy announcement IAG made to the markets this morning.

The insurer told investors that it had received a large number of claims relating to the recent devastating floods in New Zealand. As a result, the IAG share price had shed a nasty 3.44% down to $4.90 at present, after dropping as low as $4.78 this morning. It’s these factors that have probably resulted in so many IAG shares finding a new home today.

Pilbara Minerals Ltd (ASX: PLS)

Next up we have a familiar face in ASX 200 lithium share Pilbara Minerals. This Monday has seen a hefty 10.6 million Pilbara shares phoned in for trading. We haven’t seen any fresh news out of Pilbara so far this week. But that hasn’t stopped Pilbara shares from defying the market and shooting up by a healthy 2.65% so far today to $5.03 a share. This is the likely cause of the high volumes we see. Perhaps investors were reacting to some recent bullish comments from more than one ASX expert.

Core Lithium Ltd (ASX: CXO)

Third and finally today we have another ASX 200 lithium stock in Core Lithium. This session has had a sizeable 25.22 million Core Lithium shares trade hands as it currently stands. This one isn’t too hard to work out.

Core Lithium shares are soaring in value today after the company released its latest quarterly production figures. As we went through this morning, Core Lithium has now delivered its first shipment of dry lithium ore. Amid this announcement, the Core Lithium share price has shot higher by a whopping 7.96% so far today to $1.22 a share. No wonder so many shares have been traded.

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

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More reading

• Why lithium prices could be ‘higher for longer’: Macquarie
• Why Brainchip, IAG, Metcash, and ResMed shares are sinking today
• Why Block, Core Lithium, Lynas, and Xero shares are charging higher today
• These are the 10 most shorted ASX shares
• Why is the IAG share price tumbling 4% on Monday?

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 positions in and has recommended Insurance Australia 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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Lithium prices could remain elevated for longer according to analysts at Macquarie equities.

ASX 200 lithium explorers include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), Core Lithium Ltd (ASX: CXO) and IGO Ltd (ASX: IGO).

Pilbara shares are rising 2.14% today, while Core Lithium shares are leaping 4.20%. Mineral Resources shares are climbing 0.02%, while IGO shares are descending 0.63%.

Let’s take a look at the outlook for the lithium price.

What’s ahead?

Lithium prices can weigh on company earnings and hence the share price of ASX 200 lithium shares.

Analysts at Macquarie Bank Ltd (ASX: MBLPC) are optimistic lower lithium supply amid development delays and capex upgrades could be a positive for the lithium price, The Australian reported.

Macquarie’s team is positive on ASX 200 lithium shares Mineral Resources and IGO, while it is also impressed with Pilbara’s “full lithium exposure” via its Pilgangoora operation in WA.

Commenting on lithium supply, the Macquarie equities team said:

A struggling lithium supply could keep lithium prices higher for longer, a silver lining for the lithium industry.

Pilbara delivered a 10% increase in spodumene concentration production in the December quarter to 162,151 dry metric tonnes, as my Foolish colleague James reported last week.

Meanwhile, Argosy Minerals Ltd (ASX: AGY) has also shared an upbeat outlook for lithium in today’s quarterly activities report.

In comments today, Argosy highlighted the “growing expectations across the market that supply will remain tight over 2023”.

Significant growth in EV sales remains the most material driver for future lithium demand.

Share price snapshot

Pilbara Minerals shares have surged 56% in the last year, while Core Lithium shares have soared nearly 61%.

IGO shares have leapt 33% in the last year, while Mineral Resources shares have exploded 71%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has soared nearly 14% in the last year.

The post Why lithium prices could be ‘higher for longer’: Macquarie appeared first on The Motley Fool Australia.

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More reading

• Why Block, Core Lithium, Lynas, and Xero shares are charging higher today
• These are the 10 most shorted ASX shares
• Core Lithium share price marches higher as key quarterly milestones achieved
• Pilbara Minerals share price ‘offers strong growth potential’: expert
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Monica O’Shea 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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S&P/ASX 200 Index (ASX: XJO) oil and gas stocks were among the biggest beneficiaries of soaring energy prices in the first half of 2022.

Following Russia’s invasion of Ukraine, crude oil prices rocketed. By 10 June, West Texas International (WTI) crude had topped US$120 per barrel, up from US$75 per barrel at the beginning of the year.

As you’d expect, that offered some strong tailwinds for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS).

By 10 June 2022, Woodside shares had gained 59% over the calendar year. Santos shares were up 35% over that same period.

But with a warmer-than-average European winter and China remaining stuck in COVID lockdowns, the second half of 2022 saw reduced demand and oil and gas prices retraced.

WTI traded as low as US$71 per barrel on 9 December.

And both the Santos and Woodside share price fell right alongside crude prices.

What’s happening with the oil price in 2023?

That’s what happened with the crude oil price and these ASX 200 energy shares in 2022.

So far in 2023, WTI hit a low of US$72.84 per barrel on 4 January. At the time of writing, that same barrel is worth US$79.85.

That’s helped boost the Santos share price by 4.3% since the opening bell on 5 January, while the Woodside share price has gained 7.8%.

The question now is, what can investors expect from the oil price for the rest of 2023?

The answer will largely come down to global demand. Which brings us back to China and its long overdue reopening from the COVID lockdowns.

RBC Capital Markets LLC analyst Michael Tran believes that investors haven’t properly priced in that reopening yet. RBC forecasts an average price for WTI of US$92 per barrel in 2023 and may already have hit its lows for the year.

According to Tran (quoted by Bloomberg):

China‘s reopening is hardly being priced into the oil market, yet. We would not be the least bit surprised if the lows of the year end up being the $72-a-barrel print that we saw three weeks ago, on the second trading day of the year.

Indeed, China’s State Council has stressed the importance of consumption to spur China’s economy back into high gear.

How have these ASX 200 energy shares been performing?

The Santos share price is up 1% over the past 12 months while rival ASX 200 energy share Woodside has gained 46%.

The post Investing in ASX 200 energy shares? Here’s why the oil price may already have hit its 2023 lows appeared first on The Motley Fool Australia.

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More reading

• Is now the time to load up on Woodside shares?
• Two ASX sectors to buy right now (and two to avoid like the plague): fundie
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Consumer spending defies logic as inflation rages higher, locking in yet another interest rate hike in February

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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The S&P/ASX 200 Index (ASX: XJO) is on track to start the week with a small decline. In afternoon trade, the benchmark index is down 0.1% to 7,488 points.

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

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 4% to 63 cents. Investors have been selling this semiconductor company’s shares after it reported cash receipts of US$1.1 million for the three months ended 31 December. This compares to its current market capitalisation of $1.15 billion. No wonder Brainchip gets called a meme stock!

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down over 3% to $4.91. This morning, IAG revealed that it had already received more than 5,000 claims in New Zealand following the devastating floods. The full financial impact is still unknown and IAG may need to review its estimate for natural peril costs for FY 2023.

Metcash Limited (ASX: MTS)

The Metcash share price is down 2.5% to $4.10. This follows news that the company’s Food CEO, Scott Marshall, has resigned. Marshall had been with Metcash for over 30 years and is leaving to pursue another career opportunity.

ResMed Inc (ASX: RMD)

The ResMed share price is down 7.5% to $31.12. Investors were buying this sleep treatment company’s shares on Friday following the release of its quarterly update. However, with the ResMed share price falling heavily on Wall Street that evening, its locally listed shares have had a bit of catching up to do today. It is worth noting, though, that brokers are overwhelmingly positive on the company following the update.

The post Why Brainchip, IAG, Metcash, and ResMed shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why is the IAG share price tumbling 4% on Monday?
• ResMed share price sinks 7%: Is this a buying opportunity?
• Add some oomph to your portfolio with these ASX growth shares: analysts
• Here’s why the Brainchip share price is being sold down again today
• 5 things to watch on the ASX 200 on Monday

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 ResMed. The Motley Fool Australia has positions in and has recommended Insurance Australia Group and ResMed. 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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Ex-dividend dates can be some of the most important on an ASX share’s calendar. An ex-dividend date is the date that an ASX dividend share cuts off investor eligibility to receive the company’s next dividend payment.

Put simply, if you own a company’s shares before an ex-dividend date passes, you get paid. If you buy them after the ex-div date has passed, you miss out.

It so happens that the current trading week has three of these ex-dividend dates. So let’s check out which shares are about to cut off investors from their latest dividend payments.

3 ASX shares going ex-dividend this week

CVC Limited (ASX: CVC)

Investment company CVC is first up today. This company is a provider of investment products, including managed funds ad property trusts. CVC is scheduled to pay out its next dividend on 20 February next month. This interim dividend will be worth 4 cents per share and will come fully franked.

This 4 cents per share dividend is steady from the same interim payment that investors enjoyed last year. But investors will need to be quick if they are desperate to receive this dividend. That’s because CVC is scheduled to trade ex-dividend for this payment tomorrow, 31 January.

So today is effectively the last day investors can buy CVC shares and get the dividend thrown in. At current pricing, CVC shares have a trailing dividend yield of 4.5%.

Euroz Hartleys Group Ltd (ASX: EZL)

ASX financial services company Euroz Hartleys is next up today. Investors are no doubt looking forward to the company’s next interim dividend, which is scheduled to hit bank accounts next month on 17 February.

Shareholders can look forward to receiving a payment worth 2.5 cents per share, fully franked, which again is flat on last year’s interim dividend.

Investors have a little more time to get in before this dividend shuts off to new investors, but not by much. Euroz shares will go ex-div on 1 February, this Wednesday.

So if you want to nab this dividend, there’s your cutoff date. Euroz Hartleys currently has a trailing dividend yield of 10.78%.

Australian Foundation Investment Co Ltd (ASX: AFI)

Listed investment company (LIC) AFIC is our last share worth a look at today. AFIC is an ASX veteran, having been around for close to 100 years.

This well-loved income share is also coming up to a new interim dividend payment. Investors will receive the company’s fully franked interim dividend of 11 cents per share on 24 February next month.

This interim dividend is a pleasing 10% hike over last year’s interim dividend of 10 cents per share.

But would-be shareholders have until 2 February, the ex-dividend date, to buy shares if they want to receive it. At the last AFIC share price, this LIC had a dividend yield of 3.26%.

The post 3 ASX All Ords shares trading ex-dividend this week 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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There are plenty of investments out there that can offer passive income. Consider investment properties or bonds for example. However, many passive income buys don’t offer the convenience and return potential of ASX dividend shares.

Unlike property, ASX dividend shares are notably liquid and don’t demand a large deposit to buy.

And, while investing in dividend stocks can represent greater risk than buying bonds, they also offer greater potential rewards. Fortunately, I believe there are ways investors can minimise the risks involved with buying ASX dividend shares.

Here are three mistakes dividend investors often make when building a portfolio and how to avoid them.

3 mistakes I’d avoid when buying ASX passive income shares

Not looking at the bigger picture

The first mistake those buying ASX dividend shares often make is a simple one. That is, buying a stock purely for its dividends.

ASX dividend shares can provide both passive income and share price gains – or falls. Thus, I think it’s important to assess the health of a whole company before buying in.

To do so, I would look at whether it’s currently trading for a good price. If it is, I would then delve into its business and balance sheet to make sure I both understand the company and am confident of its future prospects.  

Though, even the most considered investment can’t be guaranteed to provide returns or downside protection.

Choosing passive income over quality companies

On that note, while a high yielding company might look like an obvious investment for one seeking passive income, I believe it’s important to delve into the reliability of those dividends.

That means assessing a stock’s dividend history and its cash flows.

By looking at the former I might find that, for instance, a company tends to cut its payouts during hard times. That might make it a less attractive income buy. However, past performance isn’t an indication of future performance.

Meanwhile, the latter is important because dividends generally come from a company’s free cash flow. Thus, an ASX dividend share with consistent cash flows might be more likely to provide consistent passive income.  

Failing to diversify

Finally, while I wholeheartedly believe it’s important to understand the businesses one invests in, it’s equally important to build a diverse portfolio. Of course, that can be a tricky – but worthwhile – balance to strike.

By diversifying – buying into various companies, sectors, and asset classes – an investor can better protect their portfolio.

That’s because unavoidable risks are spread across multiple investments while one maintains exposure to multiple potential opportunities.

On the other hand, failing to diversify could set an ASX passive income portfolio up to suffer in the event of a single-sector or company-specific downturn.

The post 3 common mistakes to avoid when buying ASX shares for passive income in 2023 appeared first on The Motley Fool Australia.

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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 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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