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S&P/ASX 200 Index (ASX: XJO) shares have just flipped the calendar on a year to forget.

Pressured by China’s growth hampering COVID lockdowns and fast rising interest rates across the world to combat soaring inflation, ASX 200 shares fell 5.5% in 2022.

The smaller end of the market had an even tougher time, with the All Ordinaries Index (ASX: XAO) dropping 7.2% over the year.

This was a stark contrast to the strong run in 2021. That year saw ASX 200 shares charge 13% higher while the All Ords gained 13.6%.

Add in dividends, and total returns for All Ords shares (share price moves plus dividends) came in at 17.7% in 2021, according to data from the Commonwealth Bank of Australia (ASX: CBA).

In 2022, however, the All Ords total returns fell by 3%.

Though that’s still a lot better than the hefty losses suffered in United States markets and across most European and Asian exchanges.

“There’s no doubt that Aussie share market investors had a tough year in 2022. But the good news is that Australian share indexes held up better than in most other advanced markets due to an outperforming economy,” CommSec chief equities economist Craig James said.

That’s a look in the rearview.

So what can investors in ASX 200 shares expect for 2023?

Well, perhaps not the same bull run we enjoyed in 2021. But it should be a heck of a lot better than the year just passed.

Economists at CBA forecast that the ASX 200 will post full-year share price gains in the range of 4% to 7%.

ASX 200 shares to rise by up to 7% in 2023

CBA’s economists note that their forecast remains dependent on inflation pressures, interest rate changes by major central banks and the ongoing economic recovery in China.

They expect one more 0.25% interest rate increase from the RBA in February, forecasting potential rate cuts later in the year. Australia’s economic growth is forecast to slow to 1.1% in 2023, from 3.5% last year.

As for which ASX 200 shares may outperform, CBA reported that consumer discretionary, information technology, property and smaller companies “may be favoured” from the second half of 2023.

The bank foresees ongoing challenges for the energy and materials sectors, which strongly outperformed in 2022.

Risks and opportunities

Commenting on the risks and opportunities ahead for investors in ASX 200 shares in 2023, James said:

High levels of inflation, continued uncertainty about interest rates, tight labour markets, high energy prices, the war in Ukraine and the re-opening of the Chinese economy pose both risks and opportunities for investors.

While the coming year certainly won’t be without its challenges, we are tipping a modest gain for the benchmark S&P/ASX 200 index in 2023 of 4-7 per cent to near 7,350-7,550 points.

Wishing you happy and prosperous investing in the New Year!

The post ASX 200 shares to rise by up to 7% in 2023: CBA appeared first on The Motley Fool Australia.

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More reading

• ASX 200 lithium shares lead the market higher on Friday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Investing in ASX 200 shares? Here’s what to expect from the US Fed in 2023
• Why is this ASX 200 gold share rocketing 7% on Thursday?

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 Rio Tinto Ltd (ASX: RIO) share price was a strong performer in 2022.

As you can see below, the mining giant’s shares rose 16% over the 12 months.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) recorded a 5.5% decline over the same period.

And let’s not forget dividends. Rio Tinto rewarded its shareholders with total fully franked dividends of $10.46 per share during the year. Based on the Rio Tinto share price at the end of the year, this equates to a 9% yield.

Why did the Rio Tinto share price beat the market?

There were a couple of drivers of Rio Tinto’s impressive share price gains in 2022.

The first was the release of a record-breaking full year result in February. For the 12 months ended 31 December 2021, the miner reported a 58% increase in underlying EBITDA to a record of US$37.72 billion.

This allowed the Rio Tinto board to increase its full year dividend by 87% year over year.

And while Rio Tinto’s half year results for FY 2022 in July didn’t go down as well with investors, that was all forgotten late in the year when the iron ore price surged higher.

The benchmark iron ore price climbed above US$100 a tonne amid optimism that the easing of COVID restrictions in China could cause a spike in demand for the steel making ingredient. Particularly given the prospect of major stimulus policies to support the country’s economic recovery from the pandemic.

Given how important iron ore is to Rio Tinto’s earnings, investors appear confident that these strong iron ore prices will underpin another solid full year result for the miner.

Investors won’t have long to wait to see if that is the case. The mining giant is scheduled to release its results on 22 February.

The post What drove the Rio Tinto share price 16% higher in 2022? appeared first on The Motley Fool Australia.

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More reading

• How buying this ASX 200 share could boost my annual dividend income by 17%
• My plan to turn $5 a day into a passive income in 2023
• 5 things to watch on the ASX 200 on Thursday
• The 5 biggest threats to the stock market in 2023
• Iron ore price in 2023: Bull vs. bear

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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There’s a large element of safety that comes from a portfolio of, say, blue-chip ASX shares.

However, I believe there’s a way to invest in a particularly safe manner while simultaneously taking advantage of opportunities offered by ASX growth stocks.

How, may you ask? Diversification.

I could diversify with ASX growth shares to boost returns

If I were to boast a portfolio of ASX shares I believe could consistently provide a 5% annual return, I might feel relatively safe in my investments.

As per the rule of risk versus reward, it’s likely that such a modest (though decent) return would offer a large degree of safety.

But there is a way I could bolster my returns without compromising such safety. That is, creating a shadow portfolio of ASX growth shares.

As the name suggests, growth shares generally represent up-and-coming companies in the early-to-mid phases of their growth.

Thus, they rarely offer dividends. They can also be particularly susceptible to rate hikes, as they often fund their growth through debt.

Such factors mean many growth stocks suffered through 2022. And while their pain probably isn’t over yet – many commentators expect interest rates to increase in the coming months before easing in late 2023 – several quality growth stocks are likely trading at a decent discount right now.

In fact, my Fool colleague James recently outlined three stocks brokers are tipping to gain as much as 52% in the coming year.

But I would personally aim for a more modest yearly return. For instance, I think 15% sounds reasonable.

How I might aim to grow my annual returns by 40%

At that rate, if I were hoping to up my annual returns by 40%, I would probably build my growth holdings to be around a fifth of the size of my main portfolio.

After identifying an assortment of ASX shares I believe could grow 15% annually on average, my anticipated returns could look like this:

Portion of my holdings	Expected annual return
80%	5%
20%	15%
100%	7%

As readers can see, I could feasibly bump my expected annual return from 5% to 7% – a 40% increase – by building a shadow portfolio of ASX growth shares a fifth of the size of my core portfolio.

Though, no investment – no matter how considered – is guaranteed to provide either returns or downside protection.

Additionally, as discussed, higher returns generally come with higher risks.

Risk management

However, in my opinion, adding some growth shares to an otherwise entirely blue-chip portfolio is itself a form of risk management.

That’s because diversification is one of the most effective ways to manage the risks involved with investing. Though, there’s no way to entirely abate the risk of loss.

The post How an ASX growth portfolio could boost my annual returns by 40% appeared first on The Motley Fool Australia.

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More reading

• Why ASX lithium share Winsome Resources is surging 22% today
• Magellan share price crashes 9% amid major funds under management decline
• 3 ASX growth shares to buy with huge upside potential – analysts
• The AGL share price rocketed 30% in 2022. Can it keep the fire burning this year?
• The 3 best-performing ASX tech shares of 2022

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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ASX lithium share Winsome Resources Ltd (ASX: WR1) is on a tear today.

In early morning trade shares in the lithium explorer are up 21.6% to $1.52 per share.

Here’s what’s piquing ASX investor interest today.

What’s driving the ASX lithium share higher?

The Winsome Resources share price is leaping higher after the company reported initial assay results from its Adina project in Quebec, Canada show “impressive” lithium mineralisation.

The results, from a single hole in the ASX lithium share’s ongoing diamond drilling campaign, recorded 1.34% Li2O over 107.6 metres. This included high-grade intersections of up to 2.21% Li2O over 30.0 metres from 41.0 metres to 71.0 metres.

As of 18 December, the explorer had completed 3,860 metres of drilling across 20 holes. This enabled it to define a large body of mineralised pegmatite over a strike length of 550 metres.

Commenting on the results sending the ASX lithium share surging today, Winsome Resources managing director, Chris Evans, said:

It is fantastic to see these impressive levels of lithium mineralisation in drill hole AD-22-005 which provide proof of the company’s previous visual estimates of mineralisation. Having an average of 1.34% Li2O for over 100 metres of pegmatite from surface speaks of a world-class lithium project and paves the way for the much expanded drill program we now have planned at Adina.

Addressing the pending assays from previously drilled holes, Evans added, “It is also very encouraging for the other impressive pegmatite intersections and visual estimates from drilling of subsequent holes up until the Christmas break.”

Winsome Resources said it will report on more assays from those visual lithium mineralisation estimates and core drilling in the next few weeks.

The ASX lithium share also announced it will extend its drill campaign at Adina from the previously planned 5,000 metres to at least 20,000 metres.

Winsome Resources share price snapshot

The Winsome Resources share price has been a strong outperformer over the past six months.

Since 6 July, the ASX lithium share has rocketed an eye-popping 660%. Its 12-month gains, as you can see in the chart below, come in at an impressive 311%.

The post Why ASX lithium share Winsome Resources is surging 22% today appeared first on The Motley Fool Australia.

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More reading

• Winsome, win some more! The ASX lithium share up 320% in 2 months

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 Magellan Financial Group Ltd (ASX: MFG) share price is crashing back down to earth on Friday morning.

At the time of writing, the struggling fund manager’s shares are down 9% to $8.85.

As you can see below, this means the Magellan share price is now down over 50% since this time last year.

Why is the Magellan share price sinking?

Judging by its gains in recent sessions, it appears that some investors were betting on a recovery from Magellan in 2023.

Unfortunately, they may have jumped the gun on that one and have been hitting the sell button this morning in response to another bleak funds under management update from Magellan.

According to the release, Magellan ended December with funds under management of $45.3 billion. This comprises $20.6 billion across global equities, $16.2 billion across infrastructure equities, and $8.5 billion across Australian equities.

As you might have guessed from the Magellan share price reaction, the company’s funds have fallen hard since the end of last month. In fact, its funds under management of $45.3 billion represents a $4.9 billion or 10% reduction since the end of November.

Management advised that the company experienced net outflows of $2.6 billion during the month, which included net retail outflows of $0.6 billion and net institutional outflows of $2.0 billion. Unfavourable foreign exchange movements also weighed on the value of its funds.

All in all, this latest decline in the company’s funds under management means that it averaged $53.8 billion in funds during the six months to 31 December. This is more than half what it averaged ($112.7 billion) in the prior corresponding period. How the mighty have fallen!

Performance fees update

Also potentially weighing on the Magellan share price is an update on its performance fees for the period.

Given the poor performance of its funds, the company’s performance fees for the six months ended 31 December 2022 are not expected to be meaningful.

The post Magellan share price crashes 9% amid major funds under management decline appeared first on The Motley Fool Australia.

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More reading

• Flying start: Magellan share price surges 11% in 2023
• Here are the top 10 ASX 200 shares today
• These are the highest-yielding ASX 200 dividend shares right now
• Can a high-yield ASX dividend stock still be safe?
• Here are the top 10 ASX 200 shares today

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

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It’s hard to remember what AGL Energy Limited (ASX: AGL) – and its share price – looked like this time last year. There’s been many a shakeup in its ranks over the last 12 months. Meanwhile, the war in Ukraine saw the price of power-generating commodities soar, causing volatility in power prices and impacting the energy provider’s bottom line.

But that didn’t stop the market from bidding the AGL share price higher. It lifted around 30% over 2022, closing the year at $8.07.

For comparison, the S&P/ASX 200 Index (ASX: XJO) ended the year around 5% lower.

Let’s take a closer look at what went down with AGL in 2022 and what the market might expect from the stock in the new year.

2022 was a huge year for AGL and its share price

The AGL share price took off last year despite the company heralding a major activist shareholder, watching its CEO and chair walk, and experiencing a major board shake up.

Beyond all that, it binned a major demerger proposal, fielded a takeover offer, and revealed a $20 billion renewables strategy. Safe to say it was a big year for the S&P/ASX 200 Utilities Index (ASX: XUJ) giant.

And much of the drama undergone by the company appeared to be spurred by tech billionaire Mike Cannon-Brookes.

He was part of a consortium offering as much as $8.25 per share to take over AGL in March. When that failed to win over the board, Cannon-Brookes took matters into his own hands.

He snapped up an 11% stake in the company and launched an ultimately successful campaign against its planned split. That led to the exit of former CEO Graeme Hunt, former-chair Peter Botten, and notable board members.

And it wasn’t the only successful campaign Cannon-Brookes waged over his investment’s leaders last year. The billionaire turned up the heat at the company’s annual general meeting (AGM) after the board endorsed just one of four people he nominated to join it. Shareholders ultimately voted in all four.

Last year also saw the 186-year-old energy giant herald a new dawn. It revealed its plan to ditch coal by 2036 – a goal that will likely see it forking out $20 billion on renewable energy assets.

Looking forward

However, perhaps the biggest happening likely to impact the AGL share price in 2023 raised its head late in the year.

The Federal Government’s proposed price cap on domestic coal and gas sales – which has since passed the Senate – sparked fury in industry participants. The move is an effort to control power prices and intends to cap gas at $12 a gigajoule.

Experts appear divided as to what it might mean for AGL.

Macquarie believes electricity prices will continue rising this financial year and next, bolstering the company’s bottom line, The Australian reports. Ord Minnett, on the other hand, has downgraded the stock on the back of the change. The broker said, via the publication:

We had previously incorporated materially higher prices in our earnings forecasts in FY24, but this now seems unlikely given the interventionist measures introduced by the ALP government.

Finally, broker Jefferies recently began covering AGL, reportedly tipping it to rise to $9.24 – a potential 15% upside.

The post The AGL share price rocketed 30% in 2022. Can it keep the fire burning this year? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Investing in ASX 200 shares? Here’s what to expect from the US Fed in 2023
• Why is this ASX 200 gold share rocketing 7% on Thursday?
• The 3 best performing ASX 200 dividend shares of 2022

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 Jefferies Financial Group. 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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Investors that have a higher tolerance for risk might want to check out the ASX growth shares listed below.

These shares have been tipped as buys with significant upside potential in 2023. Here’s what you need to know about them:

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals could be an ASX growth share to buy according to analysts at Morgans. The broker believes that the lithium giant’s shares have been oversold recently. Particularly given its belief that “demand in the Chinese market could increase from March onwards.”

Morgans currently has an add rating and $4.70 price target on this lithium miner’s shares. Based on the current Pilbara Minerals share price, this implies potential upside of 26% for investors.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been rated as a buy is this online furniture and homewares retailer. Goldman Sachs is very positive on the company and is forecasting an EBITDA compound annual growth rate of 22% over the next 10 years.

In light of this, the broker has put a buy rating and $7.50 price target on its shares. Based on the latest Temple & Webster share price, this implies potential upside of almost 52% for investors over the next 12 months.

Xero Limited (ASX: XRO)

A final ASX growth share for investors to look at is cloud accounting platform provider Xero. The team at Citi remains very positive on its outlook even in the current economic environment. That because it expects “digitisation to be a bigger driver than macro for online accounting.”

Citi currently has a buy rating and $97.90 price target on the company’s shares. Based on the current Xero share price, this implies potential upside of 34% for investors in 2023.

The post 3 ASX growth shares to buy with huge upside potential – analysts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 2 excellent ASX growth shares that analysts say are buys in January
• 3 of the best ASX shares I’d buy now for a stock market rally in 2023
• ASX 200 tech shares are leading the market higher today
• Why did 2022 bring such huge highs and lows for Pilbara Minerals shares?

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 Temple & Webster Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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It was a brutal year for ASX tech shares as concerns over soaring inflation and rising interest rates ran rampant in 2022.

The ASX tech sector felt the brunt of the impact, faring far worse than other sectors due to its sensitivity to interest rates.

The S&P/ASX 200 Index (ASX: XJO) slid 5.5% across the year to finish at 7,039 points. 

As I covered recently, the S&P/ASX 200 Health Care Index (ASX: XHJ) slightly lagged behind, dropping 8.4%.

But these falls pale in comparison to that of the ASX tech sector. The S&P/ASX All Technology Index (ASX: XTX), an index designed to be a comprehensive measure of technology-oriented companies on the ASX, suffered a painful 32.8% fall. 

As it stands, there are currently 47 companies in the ASX All Tech index. 

Of these, only 10 companies managed to outperform the ASX 200 index in 2022. You can see the performance of these shares in the table below.

Company	2022 share price performance
Silex Systems Ltd (ASX: SLX)	140.6%
Nearmap Ltd (ASX: NEA)	35.9%
Computershare Limited (ASX: CPU)	31.0%
Data#3 Limited (ASX: DTL)	15.1%
Weebit Nano Ltd (ASX: WBT)	13.6%
BrainChip Holdings Ltd (ASX: BRN)	10.3%
ELMO Software Ltd (ASX: ELO)	6.9%
TechnologyOne Ltd (ASX: TNE)	2.6%
Pushpay Holdings Ltd (ASX: PPH)	-1.6%
Hansen Technologies Limited (ASX: HSN)	-3.9%

Let’s take a closer look at the top three.

Fuelling up

In terms of annual share price performance, there was daylight between Silex and the rest of its ASX All Tech peers in 2022.

The Silex share price soared to lofty heights, propelled by a resurgence in nuclear energy during the year. 

There’s been a growing acceptance that nuclear energy will be a key pillar in the fight against climate change. What’s more, Russia’s invasion of Ukraine has added another catalyst to the mix as energy markets have gone into a tailspin.

So how does Silex fit into this? Well, it’s a company focused on commercialising its laser technology to enrich uranium, the fuel most widely used to produce nuclear energy.

The company believes it has the only third-generation laser-based uranium enrichment technology that is currently under commercial development.

According to Silex, uranium production and enrichment are the two largest value drivers of the nuclear fuel cycle, accounting for nearly 80% of the value of a reactor fuel bundle.

In August, Silex announced it had successfully completed extensive testing of its first full-scale laser system module. The company is aiming to complete the pilot demonstration program by 2025.

It’s also trying to commercialise its technology for silicon enrichment, which is currently in stage three testing.

Gliding off the ASX

After first joining the ASX ranks in 2008, Nearmap’s publicly-listed life reached the end of the road in 2022.

In August, software investment firm Thoma Bravo launched a takeover bid, proposing to acquire the aerial imagery company for $2.10 per share. At the time, this represented a 39% premium to Nearmap’s last closing price of $1.51.

Around 78% of shareholders voted in favour of the deal; enough to narrowly satisfy the 75% hurdle. After receiving all the ticks of approval, the takeover went through and Nearmap was delisted from the ASX last month.

Cashing in on higher interest rates

Last but not least, Computershare took out the bronze medal as the third best-performing company in the ASX All Tech index in 2022.

The Computershare share price defied the tech downturn, finishing the year 31% higher than where it started.

This is because Computershare is in a unique position of benefitting from higher interest rates, in a big way at that. 

Computershare’s core operations require it to hold large amounts of cash on behalf of its clients. For example, the cash for dividends before it’s divvied out to shareholders.

In FY22, total client balances averaged roughly US$34 billion. Computershare earns interest income – also known as margin income – on these balances, which effectively falls straight to the bottom line.

This income came in at US$187 million in FY22, reflecting a yield of 0.56% which was steady year on year. But on the back of recent interest rate hikes, FY23 is where the benefits will start to kick into gear.

The company was initially expecting its FY23 margin income to land at around US$520 million, representing growth of nearly 180%. 

But in November, on the back of global interest rate rises being faster and larger than expected, Computershare cranked up this guidance to a mighty US$800 million. The company is expecting to earn an average weighted yield of 2.19%.

While it’s still early days, as it stands, Computershare is forecasting its margin income in FY24 to reach the US$1 billion mark.

The post The 3 best-performing ASX tech shares of 2022 appeared first on The Motley Fool Australia.

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More reading

• These were the 5 top-performing ASX All Ords shares of 2022
• The top five ASX 200 shares in Macquarie’s model portfolio
• As 2 experts predict the stock market is yet to bottom, here are 4 things every investor can do now to prepare for the worst

Motley Fool contributor Cathryn Goh 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 Elmo Software, Hansen Technologies, and Pushpay. The Motley Fool Australia has positions in and has recommended Pushpay. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for passive income options for 2023? If you are, then you may want to look at the quality ASX 200 dividend shares listed below.

Here’s why these shares could be top options this year:

Deterra Royalties Ltd (ASX: DRR)

The first ASX 200 dividend share for income investors to look at buying is Deterra Royalties.

It is a mining royalties company and the owner of a portfolio of royalty assets across a range of commodities. The key asset in the company’s portfolio is the Mining Area C (MAC) iron ore operation, which is part of Western Australia Iron Ore (WAIO), and operated by mining giant BHP Group Ltd (ASX: BHP).

In addition, Deterra will receive royalties from the massive Eneabba Project owned by Iluka Resources Limited (ASX: ILU) when it commences production in the near future.

The team at Citi is positive on the company and has a buy rating and $4.70 price target on its shares.

As for dividends, Citi is forecasting fully franked dividends per share of 26 cents in FY 2023 and 28 cents in FY 2024. Based on the current Deterra Royalties share price of $4.65, this will mean yields of 5.6% and 6%, respectively.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that could be a good option for a income investors is Transurban.

It is a leading toll road operator that owns a portfolio of roads in Australia and North America. It also has a significant project pipeline that could support its growth long into the future.

While its roads were quiet during the pandemic, traffic volumes are now booming again. Combined with its positive exposure to inflation, Transurban has been tipped to grow its earnings and dividends at a solid rate in the coming years.

Macquarie is a fan of the company and has an outperform rating and $14.19 price target on its shares.

In respect to dividends, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 56.5 cents in FY 2024. Based on the current Transurban share price of $13.15, this will mean yields of 4% and 4.3%, respectively.

The post Experts name 2 quality ASX 200 dividend shares for income investors to buy appeared first on The Motley Fool Australia.

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More reading

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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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Qantas Airways Limited (ASX: QAN) stock was a strong outperformer in 2022.

Over the 12 months the S&P/ASX 200 Index (ASX: XJO) listed airline’s share gained 20%. And that came during a year when the ASX 200 itself lost 5%.

Dividend payouts remained off the table in 2022, however. Those were suspended in early 2020 as Qantas stock was ravaged by the fallouts from the global pandemic lockdowns, which saw air travel virtually eliminated.

Still, you’re unlikely to hear any investors complaining about a 20% annual share price gain.

The question for ASX 200 investors now is, will Qantas stock be a good investment in 2023 as well?

What’s the outlook for Qantas stock in 2023?

According to analysts at Morgans, Qantas stock could be in for some more significant outperformance in the year ahead.

In early December the broker initiated coverage on Qantas shares with an add rating and an $8.50 price target. Morgans is optimistic over the airline’s upgraded earnings expectations, released on 23 November. Its analysts also cited the positive tailwinds from continued pent-up travel demand as borders broadly reopen.

Another broker with a positive outlook for Qantas stock in 2023 is UBS. Its analysts have a buy rating on the airline with a price target of $7.60. The broker noted that shares are still trading at a considerably lower level than they were in the months before the pandemic.

Now over the past few weeks, the great China reopening has hit some snags. With COVID spreading rapidly through the population, this has seen many nations, Australia included, reintroduce mandatory virus testing for Chinese travellers.

How this plays out remains to be seen. If the virus continues to hamper travel into and out of the world’s most populous nation it could throw up some unwanted headwinds for Qantas stock.

Safest airline in the world

Qantas stockholders will be pleased to know that the airline has regained its safest in the world credentials. Qantas was awarded the world’s safest airline for 2023 by AirlineRatings.com.

“Our Top Twenty Safest Airlines are all standouts in the industry and are at the forefront of safety, innovation, and launching of new aircraft,” said AirlineRatings.com Editor-in-Chief Geoffrey Thomas.

How has Qantas stock been tracking?

After gaining 20% last year, as you can see below, Qantas stock remains down 16% from its January 2020 levels, before most of the world had heard of the coronavirus.

But if UBS and Morgans have it right, the airline could retest and indeed exceed those levels in 2023.

The post Qantas stock: Is it a good ASX 200 investment for 2023? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy
• Top ASX shares to buy in January 2023
• The Qantas share price soared 20% in 2022. Can it maintain altitude in 2023?
• Can these 2 ASX 200 shares crush the market again in 2023?
• 23 ASX shares to buy in 2023 – brokers

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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