Tag: Motley Fool

After sticking to a strict ‘zero-COVID’ policy for three years, the Chinese government finally relented last month.

In a country where dissent is rare and severely punished, by November many Chinese people had had enough of lockdowns and protested in multiple cities.

Spooked by the anger, the authorities abruptly ended zero-COVID and started opening up individual and business liberties.

That’s despite an elderly population with a low vaccination rate and those that were inoculated, underprotected with inferior Chinese vaccines.

To make it worse, there has been a massive movement of people for Lunar New Year, spreading the coronavirus like a bushfire.

While in the short term, the population and the economy are both suffering, many experts agree in the long run, China will be better off moving into the post-COVID era like its western counterparts did a year ago.

Even diplomatically, Beijing has taken a more conciliatory stance towards the rest of the world, declaring the country “open for business” at the Davos economic conference this month.

Can Canberra and Beijing get along again?

So which ASX shares might rise from China’s reopening?

Tribeca portfolio manager Jun Bei Liu, speaking at a GSFM briefing on Tuesday, had some ideas.

“We do have a few other core holdings where it’s been the China reopening beneficiary, the likes of A2 Milk Company Ltd (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE), which we held for many years.”

Treasury Wine was devastated in 2020 after a diplomatic spat between Australia and China over an enquiry into the origins of the pandemic.

Beijing, as retaliation, slapped a massive tariff on Australian wine imports, which effectively killed Treasury’s Chinese business overnight.

But just as fast as that downturn, Liu can potentially see an instant tailwind coming.

“Treasury Wine is interesting because now there’s a rumour of [the] relationship thawing between Australia and China,” she said.

“If there’s any positive news on reduction of the tariff they put on the Australian wine that was 100% — even if you reduce to 50%, maybe it just means that there’ll be a whole lot of wine that can be sold.”

At current levels, Liu feels like the Treasury shares haven’t yet priced in this enormous potential in China.

“You have an earnings upgrade of between 15 to 20% for that company just on the basis of [a tariff reduction]. The share price hasn’t really reflected that yet.”

Chinese citizens are ready to break out

A2 Milk also took a massive earnings hit in 2020 as the lack of international travel put an end to its daigou (Chinese expatriate) sales channel.

As Chinese citizens are allowed more freedom of movement, the dairy producer could cash in big time in the coming months.

“Chinese students will return — then your whole daigou channel is going to take place again.”

Another beneficiary of the Chinese resurgence could be international student placement provider IDP Education Ltd (ASX: IEL).

Its share price has already climbed 45% since June.

“It’s done very well, but still the students [have] yet to fully return.”

Liu did warn that it’s not a matter of buying up every stock that does business with China.

“There’s a lot of pockets of opportunity. You just got to find them and it’s very much bottom-up [analysis],” she said.

“Top-down, it’s harder to really see the opportunity… You need to find individual stocks and [their] earnings.”

The post 3 ASX shares to cash in on China’s reopening to the world: Jun Bei Liu appeared first on The Motley Fool Australia.

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More reading

• If I invest $1,000 in A2 Milk shares now, what could my return be this year?
• 3 ASX 200 shares smashing new 52-week highs on Wednesday
• 5 ASX All Ords shares cracking new 52-week highs on Tuesday
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023
• The A2 Milk share price rocketed 20% in 2022. Is it too late to buy for 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 positions in and has recommended IDP Education. The Motley Fool Australia has recommended A2 Milk 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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If you bought Mineral Resources Ltd (ASX: MIN) shares in January 2013, you’re likely pretty happy with your investment.

The ASX mining stock has been a sure-fire winner in that time, leaping around 841%.Indeed, an investor who bought $1,000 of Mineral Resources shares 10 years ago likely walked away with 99 stocks, paying $10.01 apiece.

Today, the share is trading at $94.20 – leaving the figurative parcel with a value of $9,325.80.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 54% in that time.

But how much have shareholders received when we also factor in the materials giant’s dividends? Let’s take a look.

All dividends offered by Mineral Resources shares since 2013

Let’s take a look at all the dividends offered by the ASX 200 mining giant over the last 10 years:

MinRes dividends’ pay date	Type	Dividend amount
September 2022	Final	$1
August 2021	Final	$1.75
February 2021	Interim	$1
August 2020	Final	77 cents
March 2020	Interim	23 cents
September 2019	Final	31 cents
March 2019	Interim	13 cents
September 2018	Final	40 cents
February 2018	Interim	25 cents
August 2017	Final	33 cents
February 2017	Interim	21 cents
September 2016	Final	21 cents
February 2016	Interim	8.5 cents
September 2015	Final	15 cents
March 2015	Interim	7.5 cents
September 2014	Final	32 cents
March 2014	Interim	30 cents
September 2013	Final	32 cents
March 2013	Interim	16 cents
Total:		$8

Each Mineral Resources share has paid out $8 of dividends over the last decade. That means our 99-share-strong parcel has likely yielded $792 of passive income in that time.

That sees our figurative total return on investment (ROI), including both dividends and share price increases, soaring to a whopping 921%.

Just imagine the gains an investor might have realised had they reinvested their dividends in the company’s stock, thereby compounding their earnings.

Not to mention, all Mineral Resources’ dividends in that time have been fully franked. Thus, they might have provided even more benefits come tax time.

Right now, shares in Mineral Resources boast a modest 1.06% dividend yield.

The post Invested $1,000 in Mineral Resources shares 10 years ago? Here’s how much passive income you’ve made appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Could this ASX 200 share be a dividend gem hiding in plain sight?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023
• Why Best & Less, Evolution, Mineral Resources, and St Barbara shares are dropping

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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Eley Griffiths portfolio manager Nick Guidera takes a look at three heavily discounted small-cap ASX shares.

Cut or keep?

The Motley Fool: Let’s examine three ASX shares that have been devastated in the past year, and see if you think each of these fallen stars are now a bargain to pick up or if you’d stay away.

The first one is Wisr Ltd (ASX: WZR), a fintech stock that’s plunged 64% over the last 12 months.

Nick Guidera: At this point in time, we believe it is too early [to buy]. 

The team at Wisr have built a disruptive next-generation personal lender with a focus on building financial products, apps, and services that are designed to improve the wellness of Australians. A track record of growing new loans since inception, Wisr now has a sizable loan book of close to $900 million and is targeting profitability in 2023. 

While the market opportunity is large, competition remains intense, and higher interest rates have meant the cost of funding has increased. As the economic outlook deteriorates in Australia, there is also likely to be further pressure on the consumer.

MF: Art marketplace Redbubble Ltd (ASX: RBL) has been slashed 76% in the past year. Would you pick it up as a bargain?

NG: At this stage, no. Redbubble has delivered a series of successive earnings downgrades, as the inflated revenue unwinds from the COVID bump. The CEO is embarking on a turnaround of sorts, however, the challenging trading conditions have meant there is a need to focus on cost out to conserve cash. 

MF: How about online furniture retailer Temple & Webster Group Ltd (ASX: TPW)? It’s dropped about 40% over the past 12 months.

NG: At this stage, yes we are likely to [buy]. 

While there are consumer headwinds in Australia, Temple & Webster is the clear leader in the online furniture and homewares category. It has demonstrated it can continue to grow its customer base at a time where penetration remains low for online spend in the category relative to other developed markets.

The post Bargains or traps? Fundie reveals if these 3 ASX shares are worth buying cheap appeared first on The Motley Fool Australia.

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More reading

• Top ASX growth shares to buy in 2023
• I’d aim for $1 million buying just a few ASX shares
• My top predictions for ASX All Ords shares in 2023
• 3 reasons to buy these top ASX growth shares: experts
• Why HUB24, Lovisa, Redbubble, and Warrego shares are sinking today

​​DISCLAIMER: This presentation has been prepared and issued by Eley Griffiths Group Pty Limited (ABN 66 102 271 812, AFSL 224 818) (EGG) as the investment manager of the Eley Griffiths Group Small Companies Fund and Eley Griffiths Group Emerging Companies Fund (Fund). The Trust Company (RE Services) Limited ABN 45 003 278 830, AFSL 235 150 (Perpetual) is the Responsible entity and issuer of units in the Fund. It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS), prior to making any investment decisions. The PDS and target market determination (TMD) can be obtained for free by visiting our website https://www.eleygriffithsgroup.com/invest/.  If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. 

Neither EGG, nor any company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Neither EGG nor Perpetual give any representation or warranty as to the reliability or accuracy of the information contained in this presentation. Any opinions, forecasts,  estimates or projections reflect judgments of EGG as at the date of this document and are subject to change without notice. Rates of return cannot be guaranteed and any forecasts, estimates or projections as to future returns should not be relied on, as they are based on assumptions which may or may not ultimately be correct. Actual returns could differ significantly from any forecasts, estimates or projections provided. Past performance is not a reliable indicator of future performance.

Motley Fool contributor Tony Yoo has positions in Redbubble and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Redbubble and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red after a hotter than expected inflation reading. The benchmark index fell 0.3% to 7468.3 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Friday following another positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 36 points or 0.5% higher this morning. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is up 0.7%, and the NASDAQ index is charging 1.3% higher.

Oil prices higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a solid finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$81.27 a barrel and the Brent crude oil price is up 1.8% to US$87.66 a barrel. Chinese demand optimism boosted prices.

Quarterly updates

The ResMed Inc (ASX: RMD) share price will be on watch on Friday when the sleep disorder treatment company releases its quarterly update. It won’t be alone, though. A number of other quarterly updates are expected to be release, including one from mining giant Fortescue Metals Group Limited (ASX: FMG).

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price fell overnight. According to CNBC, the spot gold price is down 0.7% to US$1,929.70 an ounce. Strong US economic data put pressure on the precious metal.

MinRes downgraded

The Mineral Resources Ltd (ASX: MIN) share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has downgraded the mining and mining services company’s shares to a neutral rating with a $91.00 price target. Goldman made the move on valuation grounds, noting: “Since upgrading MIN to a BUY on 11 April 2022, the stock is up ~58% vs. the ASX200 roughly flat (-0.2%) over the same period.”

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

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More reading

• How much profit could Fortescue shares make in 2023?
• Could this ASX 200 share be a dividend gem hiding in plain sight?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Forget gold! ASX 200 blue-chip shares could be the new safe-haven asset
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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 a lot of exchange traded funds (ETFs) out there for investors to choose from.

Three popular ETFs that you may want to look deeper into are listed below. Here’s what you need to know about them:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF for investors to look at is the BetaShares Global Energy Companies ETF. With oil prices trading above US$80 per barrel, energy producers are generating significant free cash flow at present. This bodes well for the companies held by this ETF, which include the leading players in the energy sector. Among its holdings are the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF that could be worth looking at is the BetaShares NASDAQ 100 ETF. As its name implies, this exchange traded fund gives investors exposure to the 100 largest non-financial businesses on Wall Street’s famous NASDAQ index. This means that you will be owning a slice of tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia. And with the NASDAQ still down materially on a 12-month basis, now could be a good time to consider making a long term investment in this quality group of stocks.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider buying is the Vanguard MSCI Index International Shares ETF. This popular ETF give investors easy access to many of the world’s largest listed companies. This means that rather than just investing in the Australian market, investors can take part in the long term growth potential of international markets. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 popular ETFs that could be top picks right now appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs I’d buy for a tech rebound in 2023
• 3 wonderful ETFs for ASX investors to buy next week
• Forget gold, I’m using the Warren Buffett method to try and get rich!
• The Netflix share price just popped. Here’s one way to buy in on the ASX
• 3 undervalued ASX shares that should be on your radar

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 and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares 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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There is an increasing amount of angst about celebrating Australia Day on January 26.

And those raised tensions are on both sides of the debate, with increasingly vocal groups arguing for change, or for retention.

There is no small irony in the fact that our national day – when we celebrate us, and our country – is one of the more divisive days on our calendar.

Personally, almost for that reason alone, I think we probably should change it. I also think those who argue for a change have a good case. January 26, 1788, was a momentous day that had a large impact in shaping the country we are today. In good ways, but also in bad. I’m not sure it’s the right date to celebrate our nationhood.

But, as I’ve done in years prior, because today is officially Australia Day, I’m going to reflect on the incredible privilege and opportunity we have as Australians.

We have, despite our challenges and shortcomings, a helluva lot to be proud of, and thankful for.

We are, overwhelmingly, peaceful and free.

We have, even with its imperfections, an enviable system of justice and governance.

We look out for each other.

And we look after each other.We have the ability to discuss, argue and peacefully protest.

We can stand for parliament, free of religious, gender or other restrictions.

We live in what I reckon is the most beautiful, if sometimes harsh, place in the world.

We are enormously prosperous.

I hope you realise all of that.

In the past, I’ve worked for some wonderful businesses, and some not-so-wonderful.

When I worked for the former, I’d sometimes come across a colleague who’d been at that one company for many years.

They’d complain and whinge about all of the problems, seemingly oblivious to the positives.

And I’d often remark – usually to myself! – that they’d only need to spend a few weeks working somewhere else to realise just how good they had it.

That didn’t mean, by the way, that some of those issues weren’t real, or that they didn’t need addressing.

But those colleagues had let the real and perceived problems become so overwhelmingly prominent that they’d lost sight of the bigger picture.

Because that bigger picture was of a wonderful business that, while it had its issues, was better than many, perhaps most, other places to work.

They were lucky to work there.

And that, I reckon, is how we should think about Australia, today and every day.

I worry that, in our focus on the stuff that’s broken, many of us miss the fact that most other countries would kill for our problems, rather than theirs.

Those people spend so much time, effort and energy thinking about the imperfections and issues, and too little being grateful for the positives.

Seriously, in which other country would you rather live?

Which country is more peaceful? Wealthier? More free? Safer? Which country is more beautiful? Has a healthier rule of law? Has a fairer distribution of tax collection and spending? Is more multicultural? And has a better national character?

Now, I’m not saying we’re top of the pops in each category (though we’d be bloody close!). But I am saying that I reckon you’d be hard pressed to score us on those things, and then find another country that beats us, overall.

As an investor, I reckon we’re bloody lucky, too. Because all of those things, and more, give us the opportunity to build real long-term wealth.

Right now, some of you are doing the ‘yeah but what about…’ thing.

Good. Me too.

We have lots of opportunities to be even better.

We’re not taking sufficient care of our environment. Not everyone has an equal shot at success. Our political system is showing some wear and tear. We don’t look after each other the way we used to, and individualism means there’s more “I’m alright, Jack” and less “Fair go” than in times past.

We should work very hard to deal with those things.

So my call is not for complacency, or to rest on our laurels.

But it’s also not a despairing resignation or choosing to wallow in a bleak selective view consisting only of our problems and shortcomings.

Australians have a lot to celebrate, and to be proud of.

Some of it luck. Most of it, the lottery of birth, or the happy circumstances that led us to arrive on Australian shores.

Much of it, left to us by those who came before us; an inheritance we should consider ourselves duty-bound to cherish, protect and then pass on.

And some of it – enough to be proud of, but not so much that we get arrogant – the efforts we’ve made to make this country a better place in which to live and work.

So, let’s celebrate all of that.

Because, despite our problems, we are some of the luckiest people on the planet.

Please don’t be like my former colleagues who had become so insular and lacking in perspective that they could only see the bad things, and not how lucky they were.

Please don’t fall for the doom and gloom – investing, or otherwise.

Do we have challenges? You bet we do.

Will we overcome them, just as we’ve overcome every other challenge in the past? Bloody oath we will.

It takes effort. And goodwill. And a little care for each other. But we have a great base from which to start.

Or rather, from which to continue.

And we should. We owe it to ourselves and to each other.

I hope you have a great Australia Day. If the date itself is painful, I understand. I hope you can at least celebrate, disconnected from the date itself, how lucky we are to be Australian.

And let’s commit ourselves to making sure that, each Australia Day (on whatever date it falls), we can look back at the previous 12 months, and be proud of the progress we’ve made.

And of the country we’re leaving to our kids.

Fool on!

The post appeared first on The Motley Fool Australia.

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More reading

• Add these ASX shares to your retirement portfolio for growing income: analysts
• How much profit could Fortescue shares make in 2023?
• How I would use these 3 ASX shares to build a portfolio from scratch
• How to generate $50,000 of passive income from BHP shares
• Could this ASX 200 share be a dividend gem hiding in plain sight?

Motley Fool contributor Scott Phillips 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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Arguably, one of the best ways to set yourself up for a comfortable retirement is by having a passive income stream that is both reliable and has the potential to grow over time.

The good news is that the ASX is home to a number of quality ASX dividend shares that tick these boxes and could be great additions to a retirement portfolio.

Two that are rated as buys are listed below:

Collins Foods Ltd (ASX: CKF)

The first ASX dividend share to consider is Collins Foods. It is a quick service restaurant operator with a large network of KFC restaurants in Australia and Europe. Although the company still has plenty of room to grow in Australia, it is the European market that is expected be the key driver of growth over the next decade. This is because the KFC brand is under-represented in Europe and has a significant expansion opportunity.

According to a note out of Morgans, its analysts have an add rating and $9.50 price target on its shares. The broker is also forecasting fully franked dividends of 24 cents per share in FY 2023 and 26 cents per share in FY 2024. Based on the latest Collins Foods share price of $8.03, this will mean yields of 3% and 3.2%, respectively.

Rural Funds Group (ASX: RFF)

Rural Funds could be another ASX dividend share to consider for a retirement portfolio. This is due to the quality of the agriculture-focused real estate property trust’s assets and long term tenancy agreements. In addition, Rural Funds’ leases have built-in rental increases, which provides great visibility on its future earnings. It also positions the company to deliver on its target of growing its distribution by 4% per annum.

Bell Potter is positive on Rural Funds and has a buy rating and $2.75 price target on its shares. As for dividends, it is forecasting dividends per share of 11.7 cents in FY 2023 and 12.7 cents in FY 2024. Based on the current Rural Funds share price of $2.46, this will mean yields of 4.75% and 5.15%, respectively.

The post Add these ASX shares to your retirement portfolio for growing income: analysts appeared first on The Motley Fool Australia.

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More reading

• ASX passive income: My game plan to reach $30,000 per year
• ASX income stocks: A once-in-a-decade chance to get rich?
• 2 low risk, high quality ASX shares to buy for a retirement portfolio: analysts
• How to invest $10,000 this year to create ‘safe’ passive income
• Buy South32 and this ASX dividend share: experts

Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Collins Foods. 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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Fortescue Metals Group Limited (ASX: FMG) shares have made a considerable profit over the last three years. But can the business keep making big profits in 2023 and beyond?

As one of the biggest iron ore shares in the world, Fortescue’s success is highly linked to the changing iron ore price.

The last 12 months have been volatile for iron. But the last couple of months have been notable for the commodity. According to Commsec, the iron ore price has reached US$122 per tonne. That’s well up from around the US$80 mark where it sat in early November.

Any extra revenue per tonne adds considerably to net profit before tax because mining costs don’t usually change much month to month. A higher commodity price can generate a lot of extra cash flow for the business, which can lead to bigger dividends as well.

How much profit is Fortescue going to make in 2023?

I think one of the most important financial figures is the earnings per share (EPS). There’s not much point growing profit if it doesn’t lead to rising EPS over time, in my opinion. Certainly, growing EPS can be one of the key factors in driving the Fortescue share price higher.

The EPS can give context to the share price, particularly in price/earnings (P/E) ratio terms.

According to the forecast on Commsec, Fortescue could make EPS of $2.07 in FY23. This would put the Fortescue share price at 11 times FY23’s estimated earnings. This could also enable Fortescue to pay an annual dividend of around $1.48 per share. This would translate into a grossed-up dividend yield of 9.4%.

However, profit is expected to reduce in FY24, with an EPS forecast of $1.62. EPS might reduce again to $1.41 in FY25, But, estimates change all the time, so time will tell how much profit the business will actually make in FY24 and beyond.

What’s improving the outlook?

Fortescue seems to be benefiting from the improving sentiment about China. For most of 2022, the Asian economic superpower was grappling with COVID-19 and lockdowns, which meant the country wasn’t at full economic capacity.

But, after an adjustment of COVID-19 restrictions in China, essentially a lifting of curbs, investors are now seemingly feeling more confident about the situation.

While the iron ore price is unpredictable, every month that it’s at a price of US$120 per tonne or higher is helpful for Fortescue to generate strong profit.

The business also continues to make progress on its green energy targets of decarbonising its own operations and making steps towards producing green hydrogen.

Foolish takeaway

Fortescue is seeing positive sentiment at the moment, with how strongly the iron ore price has rebounded in the last few months. This should enable it to produce another year of strong profit in 2023.

The post How much profit could Fortescue shares make in 2023? appeared first on The Motley Fool Australia.

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More reading

• ASX passive income: My game plan to reach $30,000 per year
• Why a merger between Fortescue and this major-league miner could make sense: expert
• Why Fortescue shares could be facing a Meta-like problem
• Should I buy ASX mining shares now or not?
• My top predictions for ASX 200 mining shares in 2023

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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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Building up an ASX share portfolio from scratch is no easy feat. For a beginner investor, there are so many shares to choose from, so many places to get advice, and so little time.

So let’s make the whole process easier by discussing three ASX shares I would use to start a share portfolio from scratch today.

3 ASX shares I would use for a beginner portfolio

Vanguard Australian Shares Index ETF (ASX: VAS)

I think a beginner investor should start simple, and there are fewer investments simpler than this exchange-traded fund (ETF). Index funds like the Vanguard Australian Shares ETF hold multiple shares within them, making them very easy to get some healthy diversification right off the bat. In this ETF’s case, it holds the 300 largest shares on the market.

That means an investment into this fund is an investment in everything from Commonwealth Bank of Australia (ASX: CB)A, BHP Group Ltd (ASX: BP) and Telstra Corporation Ltd (ASX: LS) to Woolworths Group Ltd (ASX: WOW), Ampol Ltd (ASX: ALD) and JB Hi-Fi Limited (ASX: JBH), all in one easy investment.

This ETF will give an investor the returns of the broad Australian share market, no more no less. It has returned an average of 8.79% per annum, including dividend returns, since its inception in 2009. That includes its competitive fee of 0.1% per annum.

iShares S&P 500 ETF (ASX: IVV)

ASX shares are great. But the reality is that most Australian investors don’t bother looking beyond our shores, happy with the dividends and franking credits that shares like CBA, Telstra and Westpac Banking Corp (ASX: WBC) offer.

But the US markets are home to companies that are just on another level to our best businesses. Think Apple, Alphabet (owner of Google), Amazon, Mastercard, McDonald’s, Tesla and Netflix.

These are some of the best companies on the planet and are all found in this index fund that tracks the 500 largest American companies. And again, you can get all of them in one, simple investment.

As such, this ETF can add even more diversification, geographic as well as currency, to a beginner portfolio. This ETF has averaged a return of 17.26% per annum over the past decade.

MFF Capital Investments Ltd (ASX: MFF)

Our last two investments have been simple index funds. But MFF Capital – a listed investment company (LIC) – adds some active management to our starter portfolio.

MFF, as a LIC, doesn’t blindly track an index. Instead, the company owns a portfolio of other shares itself, which its management team runs on behalf of its investors. Its current boss is Chris Mackay, who is one of the co-founders of Magellan Financial Group Ltd (ASX: MFG).

MFF typically invests in a small portfolio of quality US shares. Some of its long-term top holdings include Mastercard, Amazon, Visa, American Express and Microsoft. I think this LIC is a great way of adding some investing expertise to a portfolio and compliments our two index funds nicely.

The post How I would use these 3 ASX shares to build a portfolio from scratch appeared first on The Motley Fool Australia.

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More reading

• Does the Vanguard Australian Shares ETF’s unique structure deliver better returns than the ASX 200?
• How to make a second income of $100 per week from ASX dividend shares
• How I’d invest $40k in ASX shares and aim for $1 million
• Don’t ‘save’ for retirement! I’d invest in dirt-cheap ASX shares instead
• 5 reasons I’d consider buying the Vanguard Australian Shares Index ETF (VAS)

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. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, American Express, Apple, Mastercard, McDonald’s, Mff Capital Investments, Tesla, Vanguard Australian Shares Index ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Mastercard, Netflix, Tesla, and Visa. 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 recommended Alphabet, Amazon.com, Apple, Jb Hi-Fi, Mastercard, Netflix, Westpac Banking, and iShares S&p 500 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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When it comes to dividends, BHP Group Ltd (ASX: BHP) shares are a popular option for investors.

That’s because each year, the Big Australian rewards its shareholders with billions of dollars in dividend payments.

But what would it take to earn a $50,000 passive income from the mining giant’s shares?

$50,000 from BHP shares

First things first, we need to find out how big the BHP dividend will be in 2023.

According to a note out of Morgans from last week, the broker is expecting the miner to pay a US$2.11 (A$3.00) per share fully franked dividend in FY 2023. Based on the current BHP share price, this will mean a 6.1% dividend yield for investors.

So, in order to generate $50,000 of income from BHP shares, you’ll need to own approximately 16,667.

This is the equivalent of an $822,000 investment at today’s prices.

That is of course a hefty sum of money, and few people are lucky enough to have that available to them. But don’t let that put you off trying to achieve this goal over the long term.

Getting there the long way

If you want to grow your portfolio to be worth $822,000, you just need a combination of time, patience, and discipline.

Over the last 30 years, the Australian share market has provided investors with an average return of 9.6% per annum.

And while past performance is no guarantee of future returns, this is consistent with what share markets have provided globally over the long term. As a result, I believe it is a realistic number to aim for over the next 30 years.

If you are able to invest $10,000 each year and earn the market return of 9.6%, in 23 years you will have grown your portfolio to approximately $825,000.

At that point, if you invest those funds into ASX shares offering a 6.1% dividend yield, like BHP shares are today, you will be generating $50,000 of passive income without having to leave the sofa.

The post How to generate $50,000 of passive income from BHP shares appeared first on The Motley Fool Australia.

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More reading

• The BHP share price has had a stellar start to 2023. Is it too late to buy?
• Investing in ASX 200 copper shares? Here’s the outlook for the red metal in 2023
• Does the Vanguard Australian Shares ETF’s unique structure deliver better returns than the ASX 200?
• Move over bank deposits! These ASX 200 mining shares are forecasting yields of over 5%
• BHP share price lifts amid copper deal

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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