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The ASX share market has a wide variety of potential investments to choose from – ASX growth shares, ASX mining shares, defensive ASX shares and so on.

If my portfolio disappeared but I had $10,000 to start again, I’d want to invest for a mix of dividends and growth.

I like that the ASX can provide us with a pleasing source of passive income, supplementing our main job earnings.

The compounding potential of capital growth is also strong in my view, particularly over several years.

But, in all of my potential starter investments, I’m looking for profit growth to drive increased value in time.

I’ll start with two ASX growth share ideas I’d add to my portfolio, then outline two ASX dividend shares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is my favourite exchange-traded fund (ETF) on the ASX. The idea is that it provides investors with “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.”

Its portfolio is usually full of some of the most compellingly-valued US shares. At the moment, some of its biggest holdings include Boeing, Biogen, Emerson Electric, Adobe, Zimmer Biomet and Etsy.

I think the investment style of this ETF can lead to good returns, though nothing is guaranteed and past returns are not a guarantee of future returns. Over the past five years, it has returned an average of 14.7% to 30 November 2022.

Airtasker Ltd (ASX: ART)

Airtasker provides a platform for people to advertise that they need help with a particular task, such as furniture assembly, removalists, tradesperson work and so on. Taskers can offer to do the work for the proposed fee.

One of the most attractive things about this ASX share is the incredibly high gross profit margin of over 90%. Almost all of the new revenue can be invested back into the business for more growth with product development, marketing or improving the business in some other way.

In the first quarter of FY23, Airtasker’s organic revenue (excluding the acquired Oneflare) rose by 36% to $8 million. This included UK gross marketplace volume (GMV) going up by 68% year over year to an annualised £4.2 million.

With the business expanding in the UK and US, I think it’s a compelling business to consider for long-term growth.

Adairs Ltd (ASX: ADH)

Adairs is a retailer that sells homewares and furniture through three different brands – Adairs, Mocka and Focus on Furniture.

The ASX share is working on a plan to expand its store network for both Adairs and Focus while upsizing some Adairs store locations (which are more profitable). Plus, the company wants to sell Mocka furniture in-store – at the moment it’s just an online-only brand.

The company’s new national distribution centre will help it with stock efficiencies, as well as costs.

With the Adairs share price down 46% this year, it now looks very cheap in my opinion. According to Commsec, the company is valued at under 8 times FY23’s estimated earnings. It could pay a grossed-up dividend yield of 11.75% in FY23 and 13.5% in FY24.

Metcash Ltd (ASX: MTS)

Metcash may be best known for supplying the IGA supermarkets around Australia, giving it a pleasing source of defensive earnings.

The ASX share’s liquor earnings are also noteworthy. It supplies a large number of independent liquor stores around the country including Cellarbrations, The Bottle-O, IGA Liquor, Thirsty Camel, Big Bargain Bottleshop, Duncans and Porters Liquor.

Finally, it has a hardware division with a number of brands including Mitre 10, Home Timber & Hardware and Total Tools. This division is generating the most profit growth at the moment.

I think the business is demonstrating a pleasing mixture of sales growth, investing for long-term improvement, and net profit after tax (NPAT) growth, which is helping fund higher dividends.

According to Commsec, it’s expected to pay an FY23 grossed-up dividend yield of 7.8%.

The post How I’d invest $10,000 in ASX shares if I was starting from scratch in 2023 appeared first on The Motley Fool Australia.

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More reading

• These could be top ETFs for ASX investors to buy in January
• 3 ASX shares under $5 with 7%+ dividend yields
• My 3 largest ASX share positions heading into 2023
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• No savings at 45? I’d use the Warren Buffett method to build retirement wealth

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 Adairs, Adobe, Emerson Electric, and Etsy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker and Biogen and has recommended the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Adobe, Metcash, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Concerns over inflation, rising interest rates, and the cost of living weighed on the share market in 2022. This ultimately led to the benchmark S&P/ASX 200 Index (ASX: XJO) losing 5.5% of its value over the 12 months.

The good news is that not all ASX 200 shares tumbled with the market. Some even managed to deliver incredible returns for investors despite the market volatility.

Five of the best-performing ASX 200 shares in 2022 are listed below. Here’s how they performed:

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was the best performer on the ASX 200 index in 2022 with a stunning 261% gain. Ethical investing went out of the window and investors flooded back into coal miners last year after the price of the black gold surged to record levels and underpinned bumper earnings in the industry. This was driven by Indonesia’s coal export ban and sanctions on Russian supply.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price wasn’t too far behind with an impressive gain of 185%. Once again, this was driven by surging coal prices, which led to bumper profit and dividend growth from this miner. It is worth noting that this return doesn’t include the fully franked dividends of 86 cents per share that New Hope paid over the 12 months. This equates to a 13.5% dividend yield based on its latest share price, bringing the total return to almost 200%.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price was a strong performer in 2022 and rose 74%. Excitement around the Finniss Lithium Project in the Northern Territory was behind this strong gain. This project is due to commence production of the battery making ingredient in 2023, which means Core Lithium should be generating material free cash flow in the not-so-distant future if lithium prices remain strong.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price was on form and charged 62% higher over the last 12 months. This was driven by strong oil prices and the merger with the petroleum assets of BHP Group Ltd (ASX: BHP). The combination of these assets has made Woodside a much stronger company with significant growth opportunities.

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price rounds out the top five on the ASX 200 index with a gain of 60% over the period. Once again, this was driven by sky high coal prices. Prices have been booming so much that Coronado reported a 147% increase in first half revenue and a massive profit of US$561.9 million. The latter compares to a loss of US$96 million in the prior corresponding period. What a difference a year makes!

The post These were the best-performing ASX 200 shares of 2022 appeared first on The Motley Fool Australia.

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More reading

• What would it take for the Core Lithium share price to explode in 2023?  
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• The Whitehaven share price skyrocketed 261% this year, what could 2023 look like?
• 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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With a new year very much on the horizon, now could be a good time to consider making some additions to your portfolio.

If you’re interested in exchange traded funds (ETFs), then you may want to take a look at the three highly rated ETFs listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at in 2023 is the BetaShares Global Cybersecurity ETF.

This ETF gives investors access to the leading companies in the growing global cybersecurity sector.

As we have seen this year, cyberattacks are becoming more and more frequent and destructive for businesses. As a result, demand for cybersecurity services is expected to rise strongly in the coming years, which is good news for the companies included in the ETF.

This includes industry leaders such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to consider for 2023 is the VanEck Vectors Morningstar Wide Moat ETF.

This Warren Buffett inspired ETF gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. The MOAT ETF’s portfolio changes constituents periodically but usually includes approximately 50 US based stocks.

At present, its holdings include Amazon, Berkshire Hathaway, Intel, Microsoft, and Walt Disney.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to consider next year is the popular Vanguard MSCI Index International Shares ETF.

This ETF gives investors an easy way to diversify a portfolio. That’s because it provides investors with access to around 1,500 of the world’s largest listed companies. As well as diversity, it allows investors to take part in the long term growth potential of international economies.

Among the high quality shares that you’ll be owning a slice of are giants including Amazon, Apple, Nestle, Nvidia, Procter & Gamble, Tesla, and Visa.

The post These could be top ETFs for ASX investors to buy in January appeared first on The Motley Fool Australia.

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More reading

• My 3 largest ASX share positions heading into 2023
• $300 a month in these 3 ASX shares could make you a millionaire by retirement
• No savings at 45? I’d use the Warren Buffett method to build retirement wealth
• 3 quality ETFs for ASX investors to buy next year
• I’d aim for a $1 million by buying just a handful of ASX shares

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 and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and 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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Although the Core Lithium Ltd (ASX: CXO) share price was on fire in 2022, it could have been so much better.

As you can see below, the lithium developer’s shares finished the year with a 74% gain despite losing almost half their value after peaking at $1.88 in November.

Could the Core Lithium share price explode in 2023?

As covered here recently, Goldman Sachs believes the Core Lithium share price is trading at fair value now.

It recently initiated coverage on the company with a sell rating and $1.00 price target.

However, as part of its initiation, it listed a few items that could make it more positive. So, if these all fall into place, it’s quite possible that Goldman Sachs would adjust its recommendation for the better, which could give the company’s shares a very big boost.

What would make Goldman more positive?

The first thing that Goldman highlights is exploration at the Finniss lithium project. It said:

Expanding the existing resource base could support life extension/capacity increases at Finniss (particularly if relatively shallow), improving the earnings and valuation outlook for CXO.

In addition, while it seems unlikely in the current environment, Goldman concedes that an earlier than anticipated commencement of production and easing inflationary pressures could make it more positive. It explained:

Accelerated construction and commissioning could result in a bring-forward of revenues, lower operating costs or capex. Inflationary pressures could ease, limiting the escalation of operating costs with higher materials, freight, and labour rates, while lower-than-expected raw material prices would also lead to higher margins and earnings. Projects coming in ahead of budget on capex (/avoiding escalations) or at growth projects would also positively impact our valuation. Factors impacting operations and asset performance to the upside could also be positive to earnings and valuation.

Another big one is of course the price of lithium. Goldman is quite bearish on lithium prices. So, if its forecasts prove to be off the mark, it would impact its earnings estimates for the better. It said:

Changes in lithium demand/supply dynamics will impact lithium prices and our earnings, where stronger pricing would positively impact our earnings forecasts (though the development of alternative energy storage technologies could also pose a risk to lithium demand/pricing).

Finally, the broker would become more positive if Core looked at downstream processing. It adds:

The construction of a strategically located mid/downstream processing facility in Darwin could offer upside to earnings forecasts and valuation, while unallocated volume sales could be tolled through third converters to capture higher margins.

All in all, there’s certainly potential for the Core Lithium share price to outperform in 2023. Time will tell if it does.

The post What would it take for the Core Lithium share price to explode in 2023?   appeared first on The Motley Fool Australia.

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More reading

• Why is the Core Lithium share price soaring 6% today?
• Why Appen, Core Lithium, Paradigm, and Sayona Mining shares are racing higher
• Why are ASX 200 lithium shares charging higher today?
• Why is the Core Lithium share price being beaten by the benchmark today?
• Forget Core Lithium shares! Experts say these cheap ASX 200 shares could be better buys

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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When ASX investors think of passive income, dividends likely come to mind. Indeed, it may be difficult to think of another form of consistent passive income that can be garnered from shares, without selling them that is. That’s where legendary investor Warren Buffett comes in.

The multi-billionaire company Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) famously doesn’t pay dividends. And yet, it’s provided shareholders with plenty of passive income opportunities.

How, may you ask? Share buybacks.

If I were 40 with just enough savings to support myself in case of emergency, I would aim to invest in companies I believe likely to undergo share buybacks so as to create a passive income stream. Here’s how that could work.

Buffett backs share buybacks over dividends

Buffett told investors in 2004 he believes the best use for a company’s spare cash is often repurchasing its own shares.

By buying back shares, a company increases shareholders’ ownership. That’s because each share represents a portion of a business. Thus, the fewer shares are out there, the more of that business each share represents.

Speaking on the topic, Buffett said:

I think the best use of cash, if you don’t have a good use for it in the business, if the stock is under-priced, is to repurchase it.

He backed up that sentiment in later years when Berkshire Hathaway began to undergo its own share buybacks.

How can buybacks generate passive income?

As share buybacks are a tool to increase shareholders’ ownership over a company, they can allow an investor to incrementally sell their holdings without reducing their own ownership.

Here’s an example.

If I were to own a 10% stake in a company, and that company buys back 5% of its shares, I would suddenly hold 5% more of the business – 10.5% – without forking out more cash.

That means I could offload the extra 5% on the market, thereby creating a passive income, without impacting my position.

Thus, if I were 40 with hardly any savings, I would use Buffett’s wisdom to buy shares in companies I believe are likely to undergo share buybacks so as to receive passive income.

Of course, it’s worth noting that no company can be guaranteed to announce or continue a share buyback.

Many ASX 200 shares turned to buybacks in 2022

A swathe of broader market happenings saw many S&P/ASX 200 Index (ASX: XJO) shares turn to buybacks in 2022.

The largest was likely that undergone by Whitehaven Coal Ltd (ASX: WHC) – which interestingly also posted huge dividends last year.

It bought back 10% of its stock between March and October before committing to buy back another 25% of its outstanding shares over the following 12 months.  

National Australia Bank Ltd (ASX: NAB) also completed a $2.5 billion buyback in March before going again, announcing another of the same magnitude.

Other ASX 200 companies announcing share buybacks in 2022 included Qantas Airways Limited (ASX: QAN) and Santos Ltd (ASX: STO). The former kicked off a $400 million buyback while the latter announced US$700 million worth last year.

The post With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income appeared first on The Motley Fool Australia.

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More reading

• The Whitehaven share price skyrocketed 261% this year, what could 2023 look like?
• Why Goldman says the NAB share price will be a winner in 2023
• Brokers name 3 ASX shares to buy next year
• 3 ASX shares near 52-week highs I think can climb higher
• Why is the Flight Centre share price in the red today?

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 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 lithium industry was a great place to invest in 2022 despite an end of year pullback.

A good number of ASX 200 lithium shares have recorded strong gains this year in a volatile stock market.

The big question now, though, is whether it is too late to invest in the industry? Let’s take a look:

Should I buy ASX 200 lithium shares in 2023?

Buying ASX 200 lithium shares or not in 2023 is perhaps not as easy a choice to make as it was a year ago.

The recent online auction held by Pilbara Minerals Ltd (ASX: PLS) revealed a spot of weakness in pricing month on month. This has sparked fears that prices could soon collapse in line with Goldman Sachs’ bearish estimates. As a reminder, it is forecasting:

• Spodumene 6%
  • 2022 US$4,233
  • 2023 US$4,330
  • 2024 US$800
  • 2025 US$800

These forecasts compare unfavourably to the latest Pilbara Minerals’ auction price of US$8,299 per dry metric tonne. In fact, these estimates imply a whopping 90% decline in spodumene prices by 2024.

As a result of this, it will come as no surprise to learn that Goldman Sachs has a preference for producers rather than developers or explorers right now.

After all, lithium developers such as AVZ Minerals Ltd (ASX: AVZ) and Liontown Resources (ASX: LTR) could miss the boat on the high prices and commence production when prices have collapsed.

For this reason, Goldman Sachs is recommending ASX 200 lithium miner Allkem Ltd (ASX: AKE) as a buy with a price target of $15.20.

Any other buys?

This month the team at Morgans initiated coverage on Pilbara Minerals with a hold rating. However, with its shares being hammered on that day, the broker upgraded the lithium miner’s shares to an add rating with a $4.70 price target the very next day. It commented:

Given the steep drop in the share price today, we see more opportunity than we did when we published our initiation yesterday. […] Sentiment towards the sector could weaken further in the very short term but we expect that strong 2Q cash flows and the potential for capital management may change investors’ minds.

Morgans also recently initiated coverage on Mineral Resources Ltd (ASX: MIN) shares with an add rating and $94.00 price target. It described the company as a “formidable resource player with lithium clout.” The broker adds:

MIN is a business that is transforming from being primarily leveraged to high-cost / short-life iron ore operations to low-cost / long-life iron ore and lithium assets. This transition accelerated in the September quarter 2022 post Wodgina’s restart. We expect the growth planned for all segments will see MIN remain supported.

All in all, there’s still plenty of support for select ASX 200 lithium shares in 2023 in the broker community. Time will tell if they have made the right call.

The post Should I buy ASX 200 lithium shares for my portfolio in 2023? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 lithium shares charging higher today?
• Could the superprofits of ASX lithium shares be in danger next year?
• Could investing in the ASX 200 make me a millionare within a decade?
• 5 things to watch on the ASX 200 on Friday
• The top five ASX 200 shares in Macquarie’s model portfolio

Motley Fool contributor James Mickleboro has positions in Allkem. 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 certainly has been a volatile 12 months for the Australian share market in 2022. This has seen a number of ASX shares tumbling deep into the red over the last 12 months.

While this is disappointing for investors, it may have created an excellent buying opportunity.

However, before rushing in, investors may want to listen to some of Warren Buffett’s advice about cheap shares first.

Cigar butt investing

In Berkshire Hathaway’s 1989 letter, Mr Buffett warned investors to stay away from terrible companies even if you could make a quick profit. He said:

If you buy a stock at a sufficiently low price, there will usually be some hiccup in the fortunes of the business that gives you a chance to unload at a decent profit, even though the long- term performance of the business may be terrible. I call this the “cigar butt” approach to investing. A cigar butt found on the street that has only one puff left in it may not offer much of a smoke, but the “bargain purchase” will make that puff all profit.

Instead of cigar butt investing, the Oracle of Omaha thinks investors should focus on making long term investments in “wonderful” companies. He adds:

Unless you are a liquidator, that kind of approach to buying businesses is foolish. First, the original “bargain” price probably will not turn out to be such a steal after all. In a difficult business, no sooner is one problem solved than another surfaces – never is there just one cockroach in the kitchen. Second, any initial advantage you secure will be quickly eroded by the low return that the business earns. For example, if you buy a business for $8 million that can be sold or liquidated for $10 million and promptly take either course, you can realize a high return. But the investment will disappoint if the business is sold for $10 million in ten years and in the interim has annually earned and distributed only a few percent on cost. Time is the friend of the wonderful business, the enemy of the mediocre.

Buffett then famously concludes:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Charlie understood this early; I was a slow learner.

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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More reading

• I’m listening to Warren Buffett and buying cheap ASX shares
• A recession could be coming in 2023. Here’s Warren Buffett’s investing advice
• Is it safe to invest in ASX shares now? Take advice from Warren Buffett
• Almost ready to retire? I’d follow Warren Buffett’s tips to enjoy a growing passive income from ASX dividend shares
• One Warren Buffett-style stock I’m ‘never’ selling

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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If you’re at that stage in your investment journey where a passive income is your number one priority, then you’re not alone.

Generating an income from ASX dividend shares is something that countless Australians are doing right now.

But how should you do it in 2023? Listed below are three key steps that could help you on your journey next year:

Step 1: Find the right ASX 200 dividend shares

Picking the most suitable ASX 200 dividend shares to generate a passive income is of course the best place to start. Sticking with blue chip shares could be the smart move here. These companies tend to be stable and have a long history of paying dividends. There’s plenty to choose from here. Retail giant Woolworths Group Ltd (ASX: WOW), utilities company APA Group (ASX: APA), and even mining behemoth BHP Group (ASX: BHP) could be worth investigating.

Step 2: Work out your investment time horizon

The next thing for investors to look at is their investment time horizon. The time you plan to spend in the market to build your income will have a big impact on the type of ASX 200 dividend shares you might want in your portfolio. For example, if you’re just out of university and are thinking ultra-long term, you could invest in growth companies that pay dividends. Altium Limited (ASX: ALU) and Domino’s Pizza Enterprises Ltd (ASX: DMP) are two dividend payers that are aiming to double the size of their businesses in the medium term. They may only offer modest dividend yields now, but they have the potential to grow their payouts significantly in the future.

Whereas if you are nearing retirement, you might want to buy ASX 200 dividend shares that offer larger and more stable yields now. Telco leader Telstra Corporation Ltd (ASX: TLS), supermarket giant Coles Group Ltd (ASX: COL), or big four bank Westpac Banking Corp (ASX: WBC) might be worth considering.

Step 3: Active monitoring

Finally, another thing for investors to consider is the active monitoring of their portfolio. After all, past performance is not a guarantee of future returns. There’s always the potential for unexpected changes, like we saw during the COVID-19 pandemic, that put even historically strong companies in a difficult place and lead to dividend cuts or even suspensions. If that happens, investors may want to re-evaluate their investments and look to see if their capital could generate better returns in other shares.

The post 3 steps to generating passive income with ASX 200 dividend shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• What are brokers saying about the BHP share price in 2023?
• The 5 biggest threats to the stock market in 2023
• Could investing in the ASX 200 make me a millionare within a decade?
• Brokers say these top ASX dividend shares are buys for 2023

Motley Fool contributor James Mickleboro has positions in Altium, Domino’s Pizza Enterprises, and Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, and Telstra Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and 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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Are you looking for some dividend shares to add to your retirement portfolio?

If you are, then the two listed below could be top options according to experts. Here’s what they are saying about them:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to consider for a retirement portfolio is the Charter Hall Long Wale REIT.

As you might have guessed from its name, this property company invests in high quality real estate assets that have long weighted average lease expiries (WALEs). These properties are leased mainly to corporate and government tenants and had a WALE of 12 years at the last count.

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

Citi likes the Charter Hall Long WALE REIT due to its attractive valuation, big yield, and low risk income stream. It explained

The inorganic growth story remains challenged but at current price, we see relative value given the -36% discount to NTA, >7% yield (much higher than triple net peers), c. 50% of the rents indexed to CPI and a low risk income stream with c. 12 year WALE and 99.9% occupancy.

Citi expects this to underpin dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.43, this will mean yields of 6.3% and 6.5%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share that could be a top option for retirement portfolio is insurance giant Suncorp.

Morgans currently has an add rating and $13.98 price target on its shares.

The broker believes that Suncorp’s shares are trading at an attractive level. Particularly given underlying business trends and its efficiency program. It said:

While weather remains volatile, we think SUN’s underlying business trends continue to broadly track in the right direction. SUN will also reap the full benefits of its efficiency program in FY23 and we see SUN’s current valuation as undemanding, e.g. FY23 PE multiple of 13x and a 6% dividend yield.

As for dividends, Morgans is forecasting fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $12.04, this will mean yields of 6.4% and 6.6%, respectively.

The post 2 ASX dividend shares to buy for a retirement portfolio – experts appeared first on The Motley Fool Australia.

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More reading

• How to swap your job for $75,000 in retirement income using ASX dividend shares
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Brokers say these ASX 200 shares are buys for income investors
• Analysts expect 6% yields from these ASX dividend shares 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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The Whitehaven Coal Ltd (ASX: WHC) share price exploded in 2022, but what could be ahead?

Whitehaven Coal shares soared 261% in 2022 to $9.42. For perspective, the S&P/ASX 200 Index (ASX: XJO) has slid 6% in a year.

Let’s take a look at the outlook for Whitehaven Coal in 2023.

What’s ahead for the coal price?

Whitehaven is a coal producer that operates four mines in New South Wales and is developing two assets in Queensland.

Whitehaven exports coal globally to Japan, Korea and Taiwan. The price of coal is likely to weigh on the Whitehaven coal price again in 2023.

A recent report from the Office of the Chief Economist is predicting thermal coal prices to lift from US$245 a tonne in FY22 to US$360 a tonne in FY23 before declining to US$239 a tonne in FY24.

The report said:

Thermal coal earnings in 2022–23 and 2023–24 have been revised up by $13 and $17 billion, respectively. Weather problems in major producing nations have hurt supply and helped keep the price of thermal coal (especially high quality grades) very high.

Meanwhile, the report tips metallurgical coal prices to fall from US$404 a tonne in FY22 to US$262 a tonne in FY23 and US$238 a tonne in FY24. Commenting on the metallurgical coal price, the report said:

Metallurgical coal prices have lifted since early August, but remain well below levels reached in the March-June 2022 period.

Meanwhile, Saxo Capital Markets strategist Jessica Amir is predicting shareholder returns for ASX coal companies to lift in the new year. She said in quotes cited by Bloomberg:

Demand for coal usually peaks in January, so some of these shareholder returns could grow into the new year as the energy crisis continues.

However, she predicted coal prices may “lose heat before the mid year, as Europe and US head into summer and thus demand for coal will cool.”

Whitehaven coal achieved a record average coal price of $581 Australian dollars in the September quarter.

The company recently updated its guidance on coal production for FY23 from 20 to 22 Mt to 19 to 20.4 Mt.

Whitehaven Coal share price snapshot

The chart below shows Whitehaven Coal’s share price performance in 2022.

Whitehaven Coal has a market capitalisation of nearly $8.5 billion based on today’s closing price.

The post The Whitehaven share price skyrocketed 261% this year, what could 2023 look like? appeared first on The Motley Fool Australia.

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More reading

• 9% and 12% dividend yields! Should I buy these ASX 200 income shares?
• Why Invictus Energy, Star, Whitehaven Coal, and Woodside shares are dropping
• This Whitehaven Coal director just sold 25% of their company shares. What’s going on?
• Guess which ASX 200 share turned a $10,000 investment into $40,000 in 2022
• Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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