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Over several decades, Warren Buffett’s Berkshire Hathaway has beaten the market with some incredible gains.

The good news is that so much is known about Buffett’s investment style that it is easy for investors to replicate his strategies with ASX shares.

And while this doesn’t mean you’re guaranteed to generate the same level of returns as the Oracle of Omaha, it certainly puts you in a position to grow your wealth over the long term.

With that in mind, here are a couple of ways you can invest like Warren Buffett with ASX shares:

Long term focus

Buffett is well-known for taking a long-term perspective when making investments. Rather than make short-term trades, he buys shares “on the assumption that they could close the market the next day and not reopen it for five years”.

This allows investors to benefit from compounding. This is something that Buffett benefits from today, with an estimated 90% of his wealth being generated after his 65th birthday.

Stressing the importance of compounding, Buffett’s partner in crime at Berkshire Hathaway, Charlie Munger, once commented:

The first rule of compounding: Never interrupt it unnecessarily.

Buy wonderful ASX shares at a fair price

Rather than chasing after the latest hot stock, Buffett looks for wonderful companies that are trading at fair prices. Wonderful companies are those that have strong competitive advantages and are run by competent management. He famously quipped:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

In respect to competitive advantages or moats, Buffett spoke about how important it is for a company to have one in his 2007 letter to shareholders. He explained:

A truly great business must have an enduring “moat” that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business “castle” that is earning high returns. Therefore a formidable barrier such as a company’s being the lowcost producer (GEICO, Costco) or possessing a powerful world-wide brand (Coca-Cola, Gillette, American Express) is essential for sustained success. Business history is filled with “Roman Candles”, companies whose moats proved illusory and were soon crossed.

Overall, if you follow Buffett’s strategy, I believe you have a good chance of generating solid returns over the long term with ASX shares.

The post I would follow Warren Buffett’s advice when buying ASX shares in 2023 appeared first on The Motley Fool Australia.

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• What do IAG shares have in common with Warren Buffett?
• Starting 2023 with no savings? I’d follow Warren Buffett and start building wealth
• I would follow Warren Buffett’s advice when buying ASX shares in 2023
• I’m listening to Warren Buffett and buying cheap ASX shares
• What can ASX 200 investors learn from Warren Buffett’s big moves in 2022?

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 Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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 leading investors from Wilson Asset Management (WAM) have shared two compelling S&P/ASX 300 Index (ASX: XKO) shares on their radar.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

Meanwhile, WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

But does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 14.8% per annum since its inception in August 1999. That’s before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.2% per annum over the same timeframe.

With that in mind, here are the two ASX 300 shares WAM Capital has outlined in its recent monthly update.

Maas Group Holdings Ltd (ASX: MGH)

WAM describes Maas as a leading independent Australian construction materials, equipment, and services provider focused on the civil, infrastructure, and mining end markets.

The fund manager pointed out that last month, the company announced an on-market share buyback of up to 10% of Maas Group Holdings’ shares on issues within the next 12 months. Management is trying to increase shareholders’ return on equity (ROE).

WAM pointed out that last month the company announced its acquisition of Victorian integrated construction materials business Dandy Premix was completed for $85 million.

This acquisition will “establish a significant presence in the construction materials market in Victoria, which has a good growth outlook underpinned by continuing strong construction and infrastructure spend”.

The fund manager concluded its thoughts on the ASX 300 share:

We remain positive on the future outlook of Maas Group Holdings and look forward to the progress in its acquisition of the commercial development site in Newcastle, New South Wales.

Johns Lyng Group Ltd (ASX: JLG)

This ASX 300 business is an integrated building services group delivering building and restoration services across Australia and the US.

Last month, WAM noted Johns Lyng gave a business update, announcing its executive director and group chief operating officer Lindsay Barber sold four million shares, representing around 31% of his shareholding of the business.

WAM noted the Johns Lyng share price fell after that announcement but the fund manager remains “confident in Mr Barber’s commitment to his role as well as in the company’s ability to maintain its earnings guidance for FY23″.

Johns Lyng said that it expects FY23’s sales revenue to grow by 15.2% to $1.03 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to grow by 26% to $105.3 million in FY22.

The post 2 of the most compelling ASX 300 shares to buy this month: fund manager appeared first on The Motley Fool Australia.

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More reading

• 5 profitable ASX shares you probably have never heard of
• Leading brokers name 3 ASX shares to buy today
• Guess which ASX 200 director just sold off $27 million worth of their company’s shares
• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng 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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Woodside Energy Group Ltd (ASX: WDS) shares could be destined to provide investors with a big dividend yields in the near term.

In fact, if consensus estimates are to be believed, the energy producer will deliver earnings strong enough to offer some of the biggest dividend yields on the ASX 200 index in 2023 and 2024.

Woodside shares tipped to pay big dividends

The analyst consensus estimate is for Woodside to reward its shareholders with fully franked dividends of $3.13 per share in FY 2023 and then $2.68 per share in FY 2024.

Based on where Woodside shares are currently trading, this will mean yields of 8.5% and 7.3%, respectively.

This means that a $20,000 investment would yield dividends worth approximately $1,700 and $1,460 across those two years.

Even bigger dividends forecast by Citi

Consensus estimates are the average of predictions from a large number of brokers. This means that some analysts have lower than consensus estimates and some have higher than consensus estimates.

One broker that believes Woodside will pay even larger dividends in both years is Citi.

Its analysts are currently forecasting fully franked dividends of $3.47 per share in FY 2023 and $3.38 per share in FY 2024.

This would mean very generous yields of 9.5% and 9.2%, respectively, over the next couple of years.

It is because of these potential payouts that the broker is recommending Woodside shares as a buy with a $38.50 price target. Last month, the broker commented:

Today WDS held its annual investor day having earlier this week provided production & capex guidance for CY23. WDS provided a prodn profile to 2027 for sanctioned projects as well as estimates for capex, operating cash flow and free cash flow on the same basis using forward curves for gas/oil. We’ve downgraded CY23/24 EPS by 23%/12% given latest guidance. We stay Buy rated given ongoing high dividend potential.

The post Can Woodside shares deliver 9% yields for ASX income investors in 2023 and 2024? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Burning hot: The outlook for ASX 200 energy shares in 2023
• 5 things to watch on the ASX 200 on Friday
• Power up: 3 best ASX 200 energy shares of 2022
• Can Woodside shares keep delivering stellar gains 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 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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Small-cap ASX shares have really been on the nose in the past year as valuations have plummeted in the face of raging inflation and the fear of an economic slowdown.

And with much of the world facing financial troubles in 2023, many experts are still advising investors to stay away in favour of defensive value stocks.

But Forager Funds chief investment officer Steve Johnson, in a report to clients, reckoned that small caps could see a massive turnaround this year.

“That might seem counterintuitive. Everyone is telling you to buy defensive, resilient businesses, right?

“Well, in and of itself, what everyone is telling you is often a good contrarian indicator. But global small-cap fund manager Global Alpha recently released research suggesting there is more to my question than a simple contrarian viewpoint.”

‘Undemanding valuations’ combined with recession resilience

For Johnson, three positives make small-cap ASX shares a tempting choice at the moment.

Firstly, small-cap stocks are starting 2023 from a very low base.

“The S&P/ASX Small Ordinaries (ASX: XSO) was down 21% for 2022, versus an All Ordinaries (ASX: XAO) that was down just 7%. For non-mining companies, the performance was even worse,” said Johnson.

“That leaves us with some undemanding valuations. And starting prices matter more than anything else.”

Secondly, Johnson argues against the stereotype that large companies are better placed to withstand economic downturns.

“Small companies tend to perform better in a recession than most investors anticipate,” he said.

“They can be nimble and agile and are often run by a founder or significant shareholder who has a strong incentive to make tough decisions early.”

Thirdly, acquisitions are “far more attractively priced” in periods of economic slowdowns, and smaller companies are much more likely to be involved.

“That is both for companies that are doing the acquiring and those that get bought,” said Johnson.

“Our Forager Australian Shares Fund received takeover offers for five different companies in the second half of 2022, out of a portfolio of just 30 stocks.”

It’s this combination of low expectations built into the share prices and businesses performing through recessions that make small caps compelling at the moment.

And historically, judging from the Global Alpha research, small caps have outperformed large caps for years after the economic troubles have passed.

“In the US, small caps were the best-performing asset class for the five years post the 1973/4 market meltdown, through a recession and a decade of high inflation,” said Johnson.

“My grandmother always tells me the secret to happiness is low expectations, though. The good news is that expectations are a lot lower today than they were just 12 months ago.”

The post 3 reasons why small-cap ASX shares could rocket in 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Burning hot: The outlook for ASX 200 energy shares in 2023
• 3 reasons to invest in the ASX 200 in 2023
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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Stock experts, especially at this time of the year, love to give their opinions on where the share market is headed.

But IML portfolio manager Michael O’Neill reckons such comments are useless to long-term investors.

“Any experienced investor will tell you that it’s incredibly difficult to time the market,” O’Neill said on the IML blog.

“What you’re better off doing is looking at long-term fundamentals and trends and making decisions on where you’re likely to get the best return in the medium to long term.”

Capital growth will be anaemic in the coming years

For the IML team, long-term drivers point to investing in dividend shares at the moment.

O’Neill reckons we simply won’t see the same amount of capital growth over the next decade as we enjoyed in the previous 10 years.

“Ultra-low interest rates and readily available, cheap money drove a very long bull market. With high inflation and rising rates, that time has passed,” he said.

“While markets may or may not perform well in 2023, what is very unlikely is that we’ll enter another long bull market with a similar amount of capital growth.”

This means that dividends will make up a greater proportion of total investment returns for the rest of the 2020s.

“For us, with capital growth likely to be lower in the medium-long term, it’s the right time to place greater focus on income.”

O’Neill predicts volatility will remain pervasive in 2023.

“While this makes it a challenging market for investors, it does also offer opportunity,” he said.

“With company valuations fluctuating, it’s a stock pickers’ market, with a great chance to pick up high-quality companies at bargain prices.”

Reliable in turbulent times

O’Neill named two reasons why dividend shares are superior in uncertain times: reliable returns and safety net. 

He cited a historical breakdown of the S&P/ASX 300 (ASX: XKO), which showed a remarkable statistic.

“Over the last 20 years, dividends have returned 51% of overall returns,” said O’Neill.

“While this figure alone is evidence enough of dividends’ importance, it becomes more striking when you look at the volatility of these returns.”

Standard deviation of capital growth was 14 percentage points, while income was just 0.2.

“Return on capital fluctuates significantly, but dividend returns are remarkably reliable,” said O’Neill.

“While the level of capital returns from a share portfolio depends on movements in individual share prices, this is not the case for dividends. That’s because the level of dividends received by an investor is decided by the company’s board and is generally a reflection of the company’s overall profitability.”

As for dividend shares acting as a safety net, O’Neill pointed to the years when capital losses piled up.

“In the peak of the tech wreck in 2002, the ASX 300 provided a return on capital of -12%, but dividends returned 3%. In 2008, at the start of the GFC, capital dropped -42%, but dividends returned +3%,” he said.

“And while the share market recovery from COVID was very swift, the ASX 300 still dropped -1% but income? It returned a steady 3%.”

The post Why 2023 is the time to double down on ASX dividend shares: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Tech rebound! Here are 2 ASX ETFs to buy before it’s too late
• Analysts say these ASX growth shares can generate huge returns for investors
• How I’d invest $5,000 in high-yield ASX shares to earn a second income
• Top brokers name 3 ASX shares to buy next week

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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a solid gain. The benchmark index rose 0.65% to 7,109.6 points.

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

ASX 200 expected to rise gain

The Australian share market looks set to continue its rise on Monday following a decent finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% higher this morning. On Wall Street, the Dow Jones was up 0.3%, the S&P 500 rose 0.4%, and the NASDAQ climbed 0.7%. The latter had its best week since November.

Oil prices rise

It looks set to be a solid start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after a positive finish to the week for oil prices. According to Bloomberg, the WTI crude oil price was up 2.15% to US$80.07 a barrel and the Brent crude oil price rose 1.7% to US$85.43 a barrel. Oil prices rose on China hopes and US dollar weakness.

Tech shares on watch

It could be a good session for ASX 200 tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) on Monday. This follows a solid session for their US counterparts on the NASDAQ index on Friday. Investors have been buying tech shares again amid signs that inflation is easing.

ASX 200 bank shares on watch

ASX 200 bank shares such as Commonwealth Bank of Australia (ASX: CBA) will be on watch on Monday. Investors will no doubt be hoping that a strong session for US based banks will rub off on the local sector today. On Wall Street, Bank of America climbed 2.2%, JP Morgan rose 2.5%, and Wells Fargo pushed 3.3% higher.

Gold price rises again

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be heading higher today after the gold price rose again on Friday. According to CNBC, the spot gold price was up 1.3% to US$1,923 an ounce. The precious metal had a strong week thanks to optimism that the US Federal Reserve will slow its rate hikes.

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

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• Analysts say these ASX growth shares can generate huge returns for investors
• Burning hot: The outlook for ASX 200 energy shares in 2023
• Buy these ASX 200 dividend shares when the market reopens: analysts
• 3 reasons to invest in the ASX 200 in 2023
• US inflation is cooling: I’d buy these 3 ASX shares right now

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

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With inflation showing signs of easing globally, the outlook for the tech sector is improving by the day.

If you’re wanting to invest in the sector before it rebounds fully, then the exchange traded funds (ETFs) listed below could be worth considering.

Here’s why they could be great options right now:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX tech ETF for investors to consider is the BetaShares Global Cybersecurity ETF.

As you might have guessed from its name, this ETF gives investors exposure to the leading companies in the global cybersecurity sector.

And what a place to be right now! Last year there were countless cyber attacks reported in the media. Medibank, Optus, Rockstar, and Uber were just a few notable examples.

These attacks demonstrate how the internet is a bit like the Wild West for businesses (and consumers) right now and that going without adequate cybersecurity is a major risk.

In light of this, it wouldn’t be surprising if the already strong and growing demand for cybersecurity services went up a gear in 2023.

This bodes well for companies included in the fund such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another tech ETF for investors to consider is the VanEck Vectors Video Gaming and eSports ETF.

This ETF gives investors exposure to many of the largest companies involved in video game development, eSports, and gaming related hardware and software.

VanEck notes that the increasing popularity of video games and eSports means that these companies are well-placed to benefit.

One of the companies in the fund is Roblox. It is the game developer behind the eponymous Roblox online metaverse platform and game creation system. At the last count, Roblox had 56.7 million daily active users and was generating significant revenue from them.

In addition, you’ll be buying a slice of game developers Activision Blizzard, Take-Two, and Electronic Arts, as well as graphics processing unit (GPU) developer Nvidia.

The post Tech rebound! Here are 2 ASX ETFs to buy before it’s too late appeared first on The Motley Fool Australia.

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More reading

• US inflation is cooling: I’d buy these 3 ASX shares right now
• These could be top ETFs for ASX investors to buy in January
• 3 excellent ETFs for ASX investors to buy in January
• 3 fantastic ETFs for ASX investors to buy for 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 BetaShares Global Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports 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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Looking for a growth share or two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Corporate Travel Management Ltd (ASX: CTD)

Although a number of ASX travel shares have recently hit 52-week highs, the same cannot be said for Corporate Travel Management, which is languishing 37% lower than its highs.

The team at Morgans appears to see this as a buying opportunity for investors, especially given how they believe the company will come out of the pandemic in a stronger position. It explained:

CTD is our key pick of the travel sector. For investors that can take a medium-term view, we see substantial upside in its share price as the company recovers from the COVID-affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost-out opportunities and continued to develop its market-leading technology offering which means it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $25.65 price target on the company’s shares. This implies 53% upside from the latest Corporate Travel Management share price of $16.66.

Xero Limited (ASX: XRO)

This cloud accounting platform provider could be another ASX growth to buy.

That’s the view of analysts at Goldman Sachs, which believe Xero has a “compelling global growth story.”

Particularly given how it currently provides its core accounting solution to a total of 3.3 million global subscribers, which is well short of its total addressable market (TAM) of ~45 million+ subscribers. Goldman commented:

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

Goldman Sachs has a buy rating on Xero’s shares with a $115.00 price target. Based on the latest Xero share price of $71.07, this implies potential upside of 62% for investors.

The post Analysts say these ASX growth shares can generate huge returns for investors appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Xero share price take such a beating on Wednesday?
• Why European Lithium, PEXA, PolyNovo, and Xero shares are dropping today
• ‘Attractively priced’: Why fund is excited by these 2 ASX 200 shares
• Could ASX 200 travel shares be set for a major boost in 2023?

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Corporate Travel Management. 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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So you want to invest $5,000 into ASX shares to produce a second income? Great idea. Passive income is something that I’m sure all of us would love more of.

What could be better than getting paid without needing to work? ASX dividend shares are a great way of gaining a secondary income source.

The dividends that income shares pay out are a true form of passive income. And unlike property, you can start receiving income from investing as little as $500.

So if you wanted to invest $5,000 into high-yield ASX shares, where is a suitable one to start?

Well, there are more than a few options you can choose from.

Where not to look for income in 2023

But let’s start with a couple of tips regarding areas to avoid. Firstly, don’t get trapped into a dividend share just because it has a high yield. For example, Magellan Financial Group Ltd (ASX: MFG) currently has a trailing dividend yield of 19.19% right now.

But Magellan has been bleeding customers for more than a year now, and few investors would expect the company to be able to maintain its 2022 dividends this year. That’s probably why the company has lost 40% of its value since last August. It could well be a classic ‘dividend trap’.

I would also avoid investment funds that charge high fees. Listed Investment Company (LIC) WAM Capital Ltd (ASX: WAM) currently has a trailing dividend yield of 9.63% on the table right now.

But this LIC charges an annual management fee of 1.25% whilst woefully underperforming far cheaper index funds over the past five years on a total returns basis.

How to invest $5,000 for high-yield ASX dividend shares

Instead, I would look to something like the Vanguard Australian Shares Index ETF (ASX: VAS). Right off the bat, this exchange-traded fund (ETF) charges a far more reasonable 0.1% per annum to its investors.

But this ETF holds 300 of the largest ASX shares in its portfolio. That gives investors massive diversification in one easy share. Most of the shares that this ETF holds are dividend payers too, which means that the income the fund receives from these shares is passed through to investors.

Last year, this ETF doled out a total of $6.36 in dividend distributions per unit. On today’s pricing, that gives the Vanguard Australian Shares ETF a trailing yield of around 7%. If it stays that way in 2023, you would look forward to a yearly income of $350 from your $5,000 investment right off the bat.

But if you are bent on investing in individual shares, there are plenty of good-quality names to choose from too. Some companies I would look to for solid income in 2023 and beyond include Westpac Banking Corp (ASX: WBC), Washington H. Soul Pattinson and Co Ltd (ASX: SOL) and Telstra Group Ltd (ASX: TLS).

These are healthily profitable, dominant and mature companies that (in my view) don’t have any red flags waving present.

The post How I’d invest $5,000 in high-yield ASX shares to earn a second income appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares I own for big dividends in 2023
• Invested $1,000 in the Vanguard Australian Shares ETF (VAS) 5 years ago? Here’s how much dividend income you’ve received
• Here’s why 2023 will be a huge year for passive income
• Generations of Aussie investors own this ASX ETF. Do you?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and $41.20 price target on this gaming technology company’s shares. Citi has analysed digital bookings data to December and is happy with what it saw. It highlights that bookings lifted on a seasonal Christmas boost last month and that Aristocrat’s Pixel United business continues to outperform. The Aristocrat share price ended the week at $33.20.

Coronado Global Resources Inc (ASX: CRN)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this coal miner’s shares to $2.25. The broker made the move after looking at the mining sector. It believes Coronado Global is a top option for investors looking for met coal exposure following China’s reopening. Particularly if you’re looking for dividends. Goldman is expecting strong met coal prices to allow the company to pay a 21.9 US cents per share dividend in FY 2023. This equates to a 15.5% yield at current prices and exchange rates. The Coronado Global share price was fetching $2.03 at Friday’s close.

Macquarie Group Ltd (ASX: MQG)

Analysts at Morgan Stanley have retained their overweight rating and $215.00 price target on this investment bank’s shares. The broker believes that Macquarie is well-placed to benefit from volatility in commodity markets. Particularly given that approximately a third of its revenue comes from its commodities business. The Macquarie share price ended the week at $178.27.

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

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More reading

• Burning hot: The outlook for ASX 200 energy shares in 2023
• Here are the top 10 ASX 200 shares today
• Buy this ASX 200 bank share with 21% upside: Morgan Stanley
• Why Integrated Research, Macquarie, Pilbara Minerals, and South32 shares are pushing higher
• 3 ASX 200 dividend shares with HUGE passive-income potential for FY24

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

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