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There are a number of ASX shares that have achieved very strong returns over the past decade. It’s hard to decide which names could go on to become large winners.

Some businesses have managed to achieve big things by becoming leading players, such as Altium Limited (ASX: ALU), Pro Medicus Ltd (ASX: PME), Pilbara Minerals Ltd (ASX: PLS) and Australian Ethical Investment Ltd (ASX: AEF).

If I had a crystal ball, it would probably tell me that there aren’t going to be many ASX shares that go on to produce returns of 1,000% over the next decade. However, if I had to pick two that already have market caps of more than $100 million, I’d go for these two.

Airtasker Ltd (ASX: ART)

Airtasker currently has a market capitalisation of $148 million according to the ASX. This business describes itself as “Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work”.

The business is growing at a strong pace in my opinion. In the first quarter of FY23, the Airtasker platform saw 36% revenue growth to $8 million. Including the acquired Oneflare marketplace revenue, it saw total revenue growth of 80% to $10.5 million.

A key part of the plan is the ASX share’s international growth. Australia is a great country, but the United Kingdom and United States represent very large addressable markets. In the first quarter of FY23, UK gross marketplace volume (GMV) jumped 68% year over year to £4.2 million annualised. While US posted tasks increased 4.7x year over year to 13,000.

I think there is a huge opportunity if Airtasker can keep growing in the US and UK at a compound annual growth rate (CAGR) of 30% over the next decade. Markets like Canada and South Africa would be natural markets to extend into.

The business has a gross profit margin of more than 90%, so new revenue is very profitable for Airtasker. It can invest heavily for growth in the coming years thanks to that strong profit margin, hopefully enabling a strong return. An increase in average task price can also help grow revenue, so it’s an interesting idea in an inflationary environment.

With the Airtasker share price down 60% in 2022, I think it’s at a great value starting point to grow from here.

Bubs Australia Ltd (ASX: BUB)

Bubs is a nutrition business that offers a number of products including A2 beta-casein protein infant formula, organic grass-fed infant formula, goat milk infant formula, organic baby food and more.

This business is also growing revenue at an impressive rate. In the first quarter of FY23, it saw group gross revenue growth of 28% to $23.6 million. Infant formula gross revenue went up 109% year over year.

The ASX share is seeing its market share increase in Australian retail, and its growing infant formula sales come with an attractive gross profit margin.

Bubs is building retail partnerships with a number of e-commerce players, including Amazon.com which just invited Bubs to be a “direct retailer under first-party (1P) relationship”.

Chinese daigou revenue is growing at a double-digit pace and this bodes well for ongoing penetration in that huge market.

In the US, it has managed to achieve a total market share of 0.4%, or 9%, of the organic/health formula category in its first 13 weeks of operations. That’s as it tries to help address the formula shortage in that country.

I’m not expecting Bubs to become a giant business. But, with a starting market cap of $224 million, it just needs to steadily grow its geographic reach to do well, in my opinion.

The Bubs share price has fallen 54% since mid-August. Just getting back to that level would represent a rise of more than 100%.

The post Prediction: 2 ASX shares I think could soar 1,000% in the next 10 years appeared first on The Motley Fool Australia.

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More reading

• Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park
• Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher
• Why Bubs, Collins Foods, Dusk, and Mayne Pharma shares are falling today
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• 2 absolute bargain ASX shares to buy right now: analyst

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 recommended Airtasker. The Motley Fool Australia has recommended Bubs Australia. 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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I’m sure many readers dream of becoming a millionaire.

In fact, having a seven-figure cash balance is such a popular dream, Eddie Maguire has been hosting a game show with the aim of winning a million dollars each weekday for years.

But what if you didn’t need a healthy dose of general knowledge and Eddie to reach this goal? What if you could do it yourself?

Well, the good news, sorry Eddie, is that you don’t need a game show to make a million dollars. You can do this by investing in the share market.

How much do you need to invest to make a million?

In order to grow an investment portfolio to seven figures, I would invest $500 a month into ASX 200 shares.

Doing this consistently and letting the power of compounding work its magic, would see your portfolio grow materially over a long enough period if the market generates returns in line with historical averages.

Over the last 30 years, according to Fidelity, the Australian share market has generated an average return of 9.6% per annum for investors. And while there is no guarantee that it will do the same over the next 30 years, I’m optimistic that it will.

After all, this level of return is in line with what we have seen historically on Wall Street over the last century.

Based on this level of return, you would need just a touch over 30 years to become a stock market millionaire by investing $500 a month into ASX 200 shares.

You could even get there sooner if you can beat the market return. While this is certainly no easy feat, I believe investing in high-quality companies with strong business models and positive long-term growth outlooks enhances your chances of doing so.

For this reason, I would build a diverse portfolio filled with top-quality ASX 200 shares such as Altium Limited (ASX: ALU), CSL Limited (ASX: CSL), and Xero Limited (ASX: XRO), to name just a few.

The post Stock market millionaire: I’d put $500 a month into the ASX 200 to aim for 7 figures appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• CSL share price slumps as new CEO appointed
• Is now really the time to buy ASX 200 shares?
• 3 incredible ASX tech stocks down over 50% to buy before the next bull market
• CSL share price on watch as CEO announces retirement

Motley Fool contributor James Mickleboro has positions in Altium, CSL, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, CSL, 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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Are you looking for dividend shares to buy? Listed below are two high yield ASX dividend shares that analysts rate highly.

Here’s why they are bullish on them:

Charter Hall Long WALE REIT (ASX: CLW)

The first high yield ASX dividend share that has been named as a buy is Charter Hall Long Wale REIT.

The Charter Hall Long Wale REIT is a property company focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

Analysts at Citi are positive on the company due to its “low risk income stream with c. 12 year WALE and 99.9% occupancy.”

The broker is also expecting Charter Hall Long Wale REIT to provide investors with some very attractive dividend yields in the near term. Citi is forecasting dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.49, this will mean yields of 6.2% and 6.45%, respectively.

Citi currently has a buy rating and $4.70 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another high yield ASX dividend share that has been tipped as a buy is banking giant Westpac.

Thanks to rising interest rates and the bank’s major cost cutting plans, it has been tipped to generate solid earnings growth in the coming years. This is expected to underpin some big dividends for investors.

For example, Goldman Sachs is forecasting fully franked dividends per share of 148.4 cents in FY 2023 and 160 cents in FY 2024. Based on the current Westpac share price of $23.66, this will mean yields of 6.3% and 6.75%, respectively.

Goldman also sees plenty of upside potential for the shares of Australia’s oldest bank. It currently has a conviction buy rating and $27.60 price target on them.

The post Analysts expect 6% yields from these ASX dividend shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Which ASX shares I’d buy with $20,000 right now to target an 8% dividend yield
• 5 things to watch on the ASX 200 on Wednesday
• Tyro share price rebounds 14% as rumours swirl over next moves
• 3 ASX All Ordinaries shares going gangbusters on Tuesday
• Top ASX dividend shares to buy in December 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 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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This year has been a tough one for the Flight Centre Travel Group Ltd (ASX: FLT) share price. The stock has been weighed down amid its soaring short interest and revenue margin concerns.

Meanwhile, however, the company’s business has picked up. And leading its recovery is, well, business.

The travel agent’s corporate travel business has outperformed recently, recording record total transaction value (TTV) in September and October as its monthly revenue nears pre-COVID levels.

Global managing director of Flight Centre’s Corporate Traveller division Tom Walley believes such trends with continue in 2023. Indeed, the insider is hopeful corporations might even implement policies to encourage business travel in the new year.

Right now, the Flight Centre share price is $15.35. That’s 18% lower than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 5% year to date.

In more good news for Flight Centre fans, Walley isn’t alone in his bullishness. One fundie is also tipping green skies for the travel favourite.

Eyeing Flight Centre shares? Here’s what 2023 could bring

Fans of Flight Centre shares have likely suffered a disappointing 2022. Fortunately, things might be looking up for the ASX 200 company.

Walley commented on what he expects from its corporate business in 2023, saying:

Flight Centre’s corporate divisions, including Corporate Traveller, recovered healthily in the 2022 financial year.

From next year, I’m forecasting the business travel industry will continue capitalising on its post-COVID growth and success as businesses and their employees gain more confidence to return to the office and the skies.

Such hopes might have inspired confidence in fundies.

Evans & Partners recently initiated coverage of Flight Centre shares, labelling the stock positive, The Australian reports.

What else might the travel industry face in 2023?

Beyond the company itself, Walley tips Aussie airfares to plateau then fall next year, driven by Regional Express Holdings Ltd (ASX: REX)’s entrance in the East Coast’s ‘golden triangle’.

International airfares, however, might not ease until Chinese carriers return to the skies. The insider thinks that will occur in the first half, with capacity reaching 90% of pre-COVID levels by the middle of the year.

Walley also tips business travel to return for middle management in 2023 while businesses are expected to book travel further in advance amid fewer COVID concerns.

Finally, Walley expects more ‘work from anywhere’ policies will encourage executives to take working holidays to meet other teams. The policies will likely double as a bid to retain talent amid a tight labour market, he says.

The post Looking to buy Flight Centre shares? Here’s why this insider tips 2023 to be a big year for business appeared first on The Motley Fool Australia.

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More reading

• Bought $1,000 of Telstra shares 10 years ago? Here’s how much dividend income you’ve received
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How I’d try to make $1 million by investing $5 a day in ASX 200 shares

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 recommended Flight Centre Travel 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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The Endeavour Group Ltd (ASX: EDV) share price has taken a tumble on Wednesday.

In morning trade, the retail drinks company’s shares are down 5% to $6.36.

Why is the Endeavour share price falling?

The weakness in the Endeavour share price has been driven by news that major shareholder Woolworths Group Ltd (ASX: WOW) has partially sold down its holding.

According to the release, Woolworths has agreed to sell 5.5% of the issued capital of Endeavour via a block trade at a price of $6.46 per share. This is a 3.6% discount to where the Endeavour share price closed Tuesday’s session.

Endeavour notes that Woolworths retains a 9.1% stake and has no intention to sell any more shares in the short to medium term.

Furthermore, the two companies intend to continue to work closely together. It commented:

Endeavour will continue its close relationship with the Woolworths Group with a range of long-term partnership agreements in place. These include the provision of supply chain solutions through Primary Connect; a joint food and liquor offer through co-located BWS stores and online; payment services provided by WPay; and BWS a key partner of Everyday Rewards.

Broker reaction

Goldman Sachs has responded to the selldown. While it suspects that the news could weigh on the Endeavour share price in the near term, it has retained its buy rating. It said:

We expect the sell-down to generate short-term share price pressure and also comes at a time when retail growth (Dan’s and BWS) is likely to be muted given high prior year comps and the hotels business is challenged by regulatory tightening expectations.

That said, we expect underlying Xmas period trading to be strong, with the Hotels sales/property back to above pre-COVID levels and that implementation of tighter gaming regulations to ultimately be slower than market anticipation given highly fragmented market share with majority of ~7,500+ pubs in Australia are owned by independent publicans.

Goldman also spoke about the potential headwind from regulatory tightening in the industry. The good news is that its analysts believe the current Endeavour share price has factored in this risk, making now an opportune time to invest. It concludes:

Our sensitivity analysis suggests that assuming gaming is currently ~45% of hotel revenues and ~65% of hotel EBIT, a -10% impact to gaming revenue due to regulatory tightening could impact group EBIT by ~8% and if EV/EBIT multiple erodes from our current SOTP of 15x to 13x, we would derive a SOTP valuation of A$6.80/sh. As such, we view the latest price range of A$6.46-A$56/sh as already largely factoring in gaming regulation risk and is an attractive entry point to a high quality Australian retailer; remain Buy.

The post Why is the Endeavour share price sinking today? appeared first on The Motley Fool Australia.

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More reading

• Woolworths share price higher on Endeavour selldown: What’s going on?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woolworths share price lagging the ASX 200 on Monday?
• Goldman Sachs names 2 ASX 200 blue chip shares to buy
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Woolworths Group Ltd (ASX: WOW) share price is edging higher on Wednesday.

In morning trade, the retail giant’s shares are up 0.25% to $34.20.

Why is the Woolworths share price rising?

The Woolworths share price is rising today after the company announced the partial sell down of its stake in Endeavour Group Ltd (ASX: EDV).

According to the release, Woolworths has agreed to sell 5.5% of the issued capital of Endeavour via a block trade at a price of $6.46 per share.

This represents a 3.6% discount to where the Endeavour share price closed yesterday’s session.

Following the sale, Woolworths will retain a 9.1% interest in Endeavour. It advised that it has no current intention to undertake a further selldown in the short to medium term.

Woolworths’ CEO, Brad Banducci, revealed that the company was selling the stake to raise funds for strategic investments. He said:

Our decision to reduce our stake comes after a successful transition from ownership to partnership with Endeavour Group. The proceeds will be used for strategic investments and general corporate purposes.

Potential acquisitions

While nothing was announced today, the rumour on the street is that Woolworths plans to use these funds to acquire a stake of at least 50% in pet accessories and food retailer PETstock for $600 million.

Goldman Sachs commented on the potential acquisition, noting that “if true this would be in line with its eco-system growth strategy.”

The broker sees the transition from liquor and gaming to pet retail as a potentially smart move. It commented:

Strategically, the transition from liquor retail and gaming/hotels into pet retail is in line with its strategy of building a retail ecosystem. Additionally, with declining birth rates in Australia (1.70 in 2021 vs. 1.92 in 2011) resulting in relatively higher growth in the Petcare industry (~5% CAGR 2017-2022 to ~5% 2022-2027, Euromonitor) vs. alcohol retail (~7% CAGR 2017-2022 to 4% 2022-2027e, ABS Retail, GSe), the sector growth outlook appears attractive.

A PETstock acquisition would have the potential to generate synergies, bringing scale to WOW’s existing investment in ~58% of Pet Culture (independently operated online petcare retailer) and its vision to expand everyday care categories (via online marketplace and BigW).

Goldman also highlights that the petcare category has strong customer loyalty, which it feels bodes well for Woolworths which already has a loyal customer base using its Everyday Rewards program. It explained:

Our recent conversation with PETstock’s key industry player Greencross at our GS Digital Consumer conference showed that the petcare category is a highly loyal business (Greencross ~92% of sales from loyalty program members) with eco-system expansion opportunities (single category shopper ~A$100 spend per year vs. A$1,800 spend full eco-system shopper) and hence if the acquisition does materialize, it could serve as a growth lever to build a new sizeable growth platform for WOW.

The post Woolworths share price higher on Endeavour selldown: What’s going on? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woolworths share price lagging the ASX 200 on Monday?
• Goldman Sachs names 2 ASX 200 blue chip shares to buy
• 5 things to watch on the ASX 200 on Monday
• What’s impacting the Woolworths share price on Thursday?

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 S&P/ASX 200 Index (ASX: XJO) is full of ASX dividend shares that could be solid ideas to own for long-term passive dividend income.

Dividends can be a very effective and rewarding way for investors to benefit from the profits a business generates, without having to sell those shares.

For investors relying on dividend income, it’s the businesses with strong operations that could be the best ones to own for the years to come. I think these three are contenders.

Telstra Group Ltd (ASX: TLS)

Telstra is the leading ASX telco share, with the biggest market share and a number of additional businesses on top of its core mobile division. The company recently bought a telco called Digicel Pacific which services a number of Pacific island nations. It’s also growing a division called Telstra Health, which is there to help the healthcare sector and patients digitally.

The transition to the NBN was not a good time for the business or its profit. However, that has now finished and the business is expecting to grow its underlying earnings per share (EPS) at a compound annual growth rate (CAGR) in the “high-teens” to FY25.

This could enable a stable and growing dividend for the ASX 200 dividend share in the coming years, as it cuts costs, grows mobile fees in line with inflation and rolls out 5G. I think the outlook is looking good.

The FY22 final dividend was grown by 6.25% to 8.5 cents. An annual dividend of 17 cents per share in FY23 would translate into a grossed-up dividend yield of 6% at the current Telstra share price.

Macquarie Group Ltd (ASX: MQG)

I think that Macquarie is one of the leading global financial institutions. It has four different divisions – a banking and financial services (BFS) division, an investment banking segment called Macquarie Capital, an asset management division called Macquarie Asset Management and a division called commodities and global markets (CGM).

At different points of the economic cycle, each of these businesses can perform well and produce strong profits for the business.

Macquarie has a dividend payout ratio policy to pay between 50% to 70% to shareholders. In the FY23 first-half result, it paid an interim dividend of $3 per share, representing a dividend payout ratio of 50%. This came after half-year net profit grew by 13% to $2.3 billion.

This level of payout means there is plenty of profit to reinvest back into the ASX 200 dividend share for more long-term growth. I think that’s the right strategy.

The broker Morgan Stanley’s dividend estimate puts the FY23 grossed-up dividend yield at around 4.2% at the current Macquarie share price.

Coles Group Ltd (ASX: COL)

Coles is a leading supermarket business. I think Coles could be considered as a very defensive ASX share, though it’s unlikely to grow at a rapid pace either due to its size and the rate of population growth.

However, the ASX 200 dividend share is investing over $1 billion into automated warehouses which could improve efficiencies, stock flow and profit margins in the coming years.

The business is paying a relatively high dividend payout ratio, providing an attractive dividend yield, while still keeping some of the profit to invest in the business and open new supermarkets.

Morgans, a broker, thinks that Coles could pay a grossed-up dividend yield of 5.5% in FY23 at the current Coles share price.

The post 3 top dividend payers of the ASX 200 appeared first on The Motley Fool Australia.

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More reading

• Bought $1,000 of Telstra shares 10 years ago? Here’s how much dividend income you’ve received
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• The Macquarie dividend is being divvied out today. Here’s the lowdown
• Morgans names 2 of the best ASX 200 dividend shares to buy in December

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra 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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The share price of Australia’s national telco Telstra Group Ltd (ASX: TLS) has struggled over the last decade. Fortunately for those invested in the stock, it’s paid out consistent dividends over that time.

If you had bought $1,000 of Telstra shares 10 years ago today, you likely would have snapped up 233 shares, paying $4.29 apiece.

Sadly, the Telstra share price has struggled since then.

The company’s stock is trading at $4.03 at the time of writing, 6.45% lower than it was in December 2012. That also leaves our figurative parcel with a value of around $938.99.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 57% over the last decade.

But could it be possible Telstra’s dividends have offset its share price’s poor performance? Let’s take a look.

How much have Telstra shares paid in dividends in 10 years?

Here are all the dividends offered by Telstra shares over the decade just been:

Telstra dividends’ pay date	Type	Dividend amount
September 2022	Final and special	7.5 cents and 1 cent
April 2022	Interim and special	6 cents and 2 cents
September 2021	Final and special	5 cents and 3 cents
March 2021	Interim and special	5 cents and 3 cents
September 2020	Final and special	5 cents and 3 cents
March 2020	Interim and special	5 cents and 3 cents
September 2019	Final and special	5 cents and 3 cents
March 2019	Interim and special	5 cents and 3 cents
September 2018	Final and special	7.5 cents and 3.5 cents
March 2018	Interim and special	7.5 cents and 3.5 cents
September 2017	Final	15.5 cents
March 2017	Interim	15.5 cents
September 2016	Final	15.5 cents
April 2016	Interim	15.5 cents
September 2015	Final	15.5 cents
March 2015	Interim	15 cents
September 2014	Final	15 cents
March 2014	Interim	14.5 cents
September 2013	Final	14 cents
March 2013	Interim	14 cents
Total:		$2.365

An investor who bought into Telstra shares 10 years ago likely would have received $2.365 in dividends for each security they held.

Thus, our 233 parcel of Telstra shares would have provided around $551.05 of passive income during that time.

That certainly offset the ASX 200 stock’s tumble. Combining its dividends and its share price’s fall leaves the telco giant returning 49% over the last 10 years.

It’s also likely that could have been compounded with the use of a dividend reinvestment plan (DRP).

Additionally, all Telstra’s dividends since the year 2000 have been fully franked. That means they might have provided extra benefits come tax time.

Telstra shares currently trade with a 3.35% dividend yield.

The post Bought $1,000 of Telstra shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra 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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There aren’t that many ASX dividend shares that pay large dividends and could keep growing in the long term.

I really like looking at ASX resource shares for potential income because of how low their price-to-earnings (p/e) ratios normally are. However, I’d only want to go for particular ASX resource shares when the commodity price is low. And there’s certainly no guarantee that the dividend wouldn’t halve in the following year.

But, while there may be some uncertainty in the market at the moment, the following ASX dividend shares are expected to pay big dividends in FY23 and beyond. I’d happily invest $5,000 in each of the following businesses for dividend income.

Shaver Shop Group Ltd (ASX: SSG)

This business is a growing retailer of grooming and other high-performance beauty products.

Let’s look at the expected dividend yield. Broker Ord Minnett suggests that Shaver Shop could pay a grossed-up dividend yield of 14% in FY23 and 14.6% in FY24.

Retailers typically trade on low multiples of their earnings, meaning the dividend yield can be pretty high.

Shaver Shop says that the Australia and New Zealand beauty market could grow from around $10 billion to approximately $12 billion by 2026. This could be a useful tailwind for earnings over the next few years.

Charter Hall Long WALE REIT (ASX: CLW)

This real estate investment trust (REIT) owns a diversified portfolio of properties. They are all signed onto long-term leases, providing good visibility for rental income and profitability.

It has tenants like Endeavour Group Ltd (ASX: EDV), Australian government entities, Telstra Group Ltd (ASX: TLS), BP (LON: BP), Inghams Group Ltd (ASX: ING) and Coles Group Ltd (ASX: COL).

The business is expecting to pay a distribution per unit of 28 cents per share in FY23. This translates into a forward distribution yield of 6.2%.

Aside from the changes in interest rates, I think this is a fairly defensive ASX dividend share option.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current describes itself as a business that partners with “the best asset managers across the world who bring differentiated market perspectives and investment approaches” and builds an economic partnership with them.

Some of the names in the portfolio include GQG Partners Inc (ASX: GQG), Victory Park Capital, Carlisle Management, Astarte Capital Partners, and Banner Oak.

A rebound of investment markets could be a very useful tailwind for the underlying funds under management (FUM), earnings and the dividend. Despite all the volatility, aggregate FUM grew 1.1% in the three months to September 2022. Excluding GQG, aggregate FUM grew in the quarter by 3.4% for US-dollar-denominated fund managers and 7% for the Aussie-dollar-denominated fund manager.

Ord Minnett is expecting the ASX dividend share to pay a grossed-up dividend yield of 7.4% in FY23 and 8.25% in FY24.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the largest retailers of furniture across Australia and New Zealand. While that may not be the most defensive industry, people are still buying large volumes. Indeed, a recent trading update showed year-over-year growth.

While the ASX dividend share may not see a lot of growth in the next 12 months, the company is planning to open more stores, grow its highly profitable online sales and benefit from scale advantages (particularly with the Plush acquisition).

According to the broker Citi, Nick Scali could pay a grossed-up dividend yield of 11.6% in FY23 and 9.5% in FY24.

Foolish takeaway

These four businesses have an average dividend yield of 9.8% for FY23. So, with $20,000. That would create annual dividend income of $1,960.

I think Shaver Shop and Pacific Current could be two of the underrated ASX dividend shares at the moment.

The post Which ASX shares I’d buy with $20,000 right now to target an 8% dividend yield appeared first on The Motley Fool Australia.

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• Naughty or nice? Buy 3 ASX shares heading in opposite directions, says fund
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra 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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All Ordinaries Index (ASX: XAO) shares have struggled this year.

Battered by soaring inflation, fast-rising interest rates, and the global consequences of Russia’s invasion of Ukraine, the All Ords is down 6.8% in 2022.

But 2023 may bring a big turnaround for ASX shares and stock markets the world over.

That’s according to the consensus views of 134 fund managers, responding to a Bloomberg News survey.

Why could ASX shares enjoy a much stronger 2023?

Bloomberg’s survey included some of the biggest names in the investment world, like BlackRock and Goldman Sachs.

Conducted earlier this month, the survey revealed that some of the top investors are forecasting “low double-digit gain” in 2023. Overall, a 10% gain is predicted for global stocks next year, which could see ASX shares potentially join or exceed that rally.

Many of the fund managers were optimistic that we’ve seen peak inflation, indicating a more dovish US Fed in 2023. All told 71% of the surveyed fundies said they expect share markets to gain next year with 19% expecting them to fall.

Bloomberg noted that in a similar survey last year, the fundies accurately forecast that the biggest risk for share markets in 2022, as witnessed with ASX shares this year, was aggressive interest rate hikes by central banks.

The fundies broadly had a preference for stocks that could maintain their earnings, even in the event of a recession. They also expect stock markets to perform better in the second half of 2023 than in the first half.

The biggest threat in 2023 for global stock markets and ASX shares was said to be “stubbornly high inflation”, cited by 48% of respondents.

The big opportunities next year come from a potential ceasefire in Ukraine and with China’s reopening.

According to Fabiana Fedeli, chief investment officer at M&G:

The outlook from here onward will be influenced by the probability, depth and longevity of recession. There are still pockets of opportunity where companies with strong fundamentals that are able to weather the storm get sold off in times of market panic.

Pia Haak, chief investment officer at Swedbank Robur, pointed out that much of the recession fears have already been priced into the market.

“Even though we might face a recession and falling profits, we have already discounted part of it in 2022,” Haak said. “We will have better visibility coming into 2023 and this will hopefully help markets.”

The post Holding off buying ASX shares? Here’s why you could wind up with major FOMO appeared first on The Motley Fool Australia.

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More reading

• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• 5 things to watch on the ASX 200 on Wednesday
• Is the iShares S&P 500 ETF (IVV) a buy following its stock split?
• Investing in ASX 200 shares could turn your $10,000 into $100,000. Here’s how
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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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