Tag: Motley Fool

If you’re wanting an early retirement, you’ll need to have your superannuation in order.

But just how much super would be required if you wanted to retire at 55?

Well, a lot depends on the type of retirement lifestyle that you want.

Retiring at 55

Firstly, let’s look at how much money you would need to be able to spend to fund your lifestyle of choice.

According to AFSA, for singles, if you plan to live somewhat frugally, you will need approximately $32,000 each year for a modest lifestyle. AFSA describes this lifestyle as:

A modest retirement lifestyle is considered better than the Age Pension, but still only allows for the basics.

Whereas if you want a comfortable lifestyle, you’ll be looking at $51,000 each year according to AFSA. This lifestyle is described as follows:

A comfortable retirement lifestyle enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel.

For couples, you would be looking at approximately $46,000 for a modest lifestyle and $71,000 for a comfortable lifestyle.

How much superannuation would you need?

In order to fund these lifestyles, you will need the following (inclusive of pension):

Comfortable retirement:

• Singles $595,000
• Couples $690,000

Modest retirement:

• Singles $100,000
• Couples $100,000

AFSA highlights that the same superannuation is required for both couples and singles for a modest retirement due to the impact of receiving the Age Pension.

So, if you’re 55, married, and have a combined superannuation of $690,000, AFSA believes you could hand in your retirement notice on Monday and live a comfortable life.

However, it is worth noting that couples aged between 55-59 years old have on average a combined superannuation balance of $552,987.

While it is too late for them to retire early and comfortably, it might not be for younger Australians.

For example, if you’re in your 40s you could potentially get to the desired amount by the time you’re 55 if you make additional contributions to your super. The key is to plan ahead and adjust your contributions accordingly.

The post How much superannuation do I need to retire at 55? appeared first on The Motley Fool Australia.

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More reading

• How long does it take for an ASX investor to double their money?
• Why these 3 ASX 200 shares grabbed the Motley Fool’s headlines this record-breaking week
• 2 excellent ASX ETFs to buy and hold for a decade
• 3 ASX 200 shares that could rise 20% to 50%
• Why you need to stop meddling with your 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 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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For many non-investors, and indeed novice ASX investors, the extraordinary power of compounding is hard to wrap their heads around.

As an example, they might see a 7% annual return on an investment and think that’s nothing impressive.

But that level of compound annual growth rate (CAGR), kept up for 10 years, will see your money double.

This is amazing to many people.

Becoming an ASX investor is more important than 20% CAGR

So to visually show off the incredible prowess of compounding, Visual Capitalist recently published a graphic that showed how long it takes for your money to double for various levels of CAGR:

The fascinating observation here is that each percentage point higher from 0% through to 7% makes a huge difference to how fast your investment will become twice the size.

Improvements in the CAGR beyond that don’t make as large an impact.

For example, 15% CAGR will double your nest egg in five years. But it takes an unbelievable 19% annual return to reduce that down just to four years.

But if an ASX investor can improve the portfolio’s performance from 2% to 6%, it cuts down the time from a whopping 35 years to 11.9 years.

It just goes to show that being invested is more critical than nabbing double-digit growth rates. Going from 0% to 7% has a far larger impact on your wealth than improving from 7% to 14%.

Do you want to wait 6.4 years or 120?

Visual Capitalist financial writer Dorothy Neufeld pointed out that this huge difference in the lower percentages is what makes stocks such an attractive investment in the long term.

“Consider if an investor put their money in the S&P 500 Index (SP: .INX). Historically, it has averaged 11.5% returns between 1928 and 2022. In 6.4 years, their money would double, assuming these average returns.

“If they were to put this money in a savings account, where the average savings rate is 0.6%, it would take 120 more years for their money to reach this potential.”

She added that, if inflation is taken into account, money stored as cash actually shrinks in value.

“Historically, inflation has averaged 3.3% over the last century.”

The post How long does it take for an ASX investor to double their money? appeared first on The Motley Fool Australia.

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More reading

• Why these 3 ASX 200 shares grabbed the Motley Fool’s headlines this record-breaking week
• 2 excellent ASX ETFs to buy and hold for a decade
• 3 ASX 200 shares that could rise 20% to 50%
• Why you need to stop meddling with your ASX shares
• 3 ASX shares you can confidently invest $500 in right now

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

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There was plenty of competition amongst S&P/ASX 200 Index (ASX: XJO) shares to get into the Motley Fool’s headlines this week. Especially with the benchmark index hitting new record highs on Monday and again on Friday.

Here’s what saw these three large-cap stocks grab our attention.

ASX 200 shares grabbing the Motley Fool’s headlines

The first ASX 200 share catching the Motley Fool’s attention this week was lithium stock Pilbara Minerals Ltd (ASX: PLS).

Pilbara made headlines on Tuesday when shares in the lithium producer closed the day down 7.0%.

It wasn’t just Pilbara shares under selling pressure on Tuesday. Most all ASX lithium stocks ended the day deep in the red.

This looks to have been driven by a 6.8% overnight decline in Albemarle Corporation (NYSE: ALB). That fall came after the North American lithium giant announced it was issuing new shares to raise US$1.9 billion.

With lithium prices down some 80% from their peak, investors likely feared that lithium stocks like Pilbara might be next in line to announce a dilutive capital raise.

Which brings us to the second ASX 200 share leaping into the Motley Fool’s headlines this week, UK-based banking stock Virgin Money UK (ASX: VUK).

Virgin Money made news on Friday after its shares soared more than 33%.

This came after the bank reported that it had received a potential cash takeover offer from Nationwide Building Society.

Based on Friday’s exchange rates with the British pound, the offer values Virgin Money at $4.26 per share. That’s almost 39% above Thursday’s closing price.

Rounding off the list of ASX 200 shares that claimed the Motley Fool’s headlines this week is mining giant BHP Group Ltd (ASX: BHP).

BHP made the news on 7 March when the miner’s stock traded ex-dividend.

This saw the BHP share price close the day down 1.1%, as investors buying on the day were no longer eligible to receive the fully franked $1.10 interim dividend. Investors who owned BHP shares at market close on Wednesday can expect to see that cash payout hit their bank accounts on 28 March.

BHP, the biggest stock on the ASX 200, trades on a fully franked trailing yield of 5.4%

The post Why these 3 ASX 200 shares grabbed the Motley Fool’s headlines this record-breaking week appeared first on The Motley Fool Australia.

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More reading

• These brave investors are earning a 9% dividend yield on BHP shares! Here’s how
• Here are the top 10 ASX 200 shares today
• 3 ASX winners from the reporting season (and 2 losers)
• Why Judo, Paladin Energy, Virgin Money, and WA1 shares are racing higher
• Virgin Money share price pops 34% on takeover bid

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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I firmly believe that buy and hold investing is one of the best ways to grow your wealth.

But if you’re not a fan of stock picking, don’t worry. That’s because you could consider buying exchange traded funds (ETFs) instead.

These funds eliminate the need to pick stocks because they allow you to buy large groups of them with a single click of a button.

With that in mind, listed below are a couple of ASX ETFs that could be top buy and hold options for investors:

iShares Global Consumer Staples ETF (ASX: IXI)

If you have a low tolerance for risk, then the iShares Global Consumer Staples ETF could be a good option. That’s because this ETF gives investors exposure to many of the world’s largest consumer staples companies. These are companies that perform well whatever is happening in the global economy. Among its holdings are Coca-Cola, Nestle, Procter & Gamble, and Unilever.

Over the last 10 years, the fund the ETF tracks has generated a return of 9.1% per annum for its investors.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Arguably the best ASX ETF to buy and hold is the VanEck Vectors Morningstar Wide Moat ETF. This ETF has been built to give investors access to the type of companies that you would want to hold for the long term. They have sustainable competitive advantages and fair valuations. These are the qualities that Warren Buffett looks for when he makes investments. And given his track record over multiple decades, it is hard to argue against this focus.

Over the last decade, the fund this ASX ETF tracks has delivered a mouth-watering average total return of 17.1% per annum.

The post 2 excellent ASX ETFs to buy and hold for a decade appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares to buy for an effortless path to financial freedom
• 2 ASX ETFs for beginner investors to buy in March
• Are these record-breaking ASX ETFs now too expensive to buy?
• 4 hot ASX ETFs smashing all-time highs on Thursday
• How to build a second retirement fund outside of superannuation

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 recommended Nestlé and Unilever Plc. The Motley Fool Australia has positions in and has recommended iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended 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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Are you on the lookout for gain returns to supercharge your portfolio?

If you are, then it could be worth getting better acquainted with the ASX 200 shares listed below.

These shares have been named as buys and tipped to rise between 20% and 50% from current levels. Here’s what you need to know:

IDP Education Ltd (ASX: IEL)

The team at Morgan Stanley thinks investors should be snapping up this language testing and student placement company’s shares while they’re cheap.

The broker has an overweight rating and $27.50 price target on them. This suggests potential upside of 44% for investors between now and this time next year.

Morgan Stanley believes that its recent results highlight the strength and growth potential of its student placement business.

Lynas Rare Earths Ltd (ASX: LYC)

If you don’t mind investing in the mining sector, then this rare earths producer could be a buy. That’s the view of analysts at Goldman Sachs, which have the company on the broker’s conviction list.

Goldman currently has a buy rating and $7.40 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.

It believes the ASX 200 share is undervalued based on “the stock trading at ~0.8x NAV (A$7.78/sh) and pricing in US$67/kg NdPr vs. spot at ~US$53/kg and our long run US$83/kg (real $, from 2028) NdPr price forecast.”

Qantas Airways Limited (ASX: QAN)

Goldman Sachs also sees a lot of upside for this airline operator’s shares.

In fact, the broker believes “QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity.”

Its analysts have a buy rating and $8.05 price target on its shares. This suggests upside of 56% for investors from where its shares trade today.

The post 3 ASX 200 shares that could rise 20% to 50% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Qantas shares hit turbulence amid $250,000 fine for ‘shameful’ conduct
• Insiders have been buying these ASX 200 mining shares
• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• These are the 10 most shorted 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 Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. 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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Let me start off by saying that investing in ASX shares is a great thing. If you’re already invested in ASX shares, or even if you aren’t yet, but have a firm plan to, you’re doing yourself and your future a great service.

However, though the potential benefits of investing in shares are enormous, there’s also a risk that investors hobble their potential returns by going about it in the wrong way.

Over the past two decades, the process of investing has become exponentially easier. Gone are the days when you would need to call up a stock broker if you wished to buy ASX shares. These days, online brokers and phone apps have made the process wildly more simple.

But whilst this trend has opened up the world of investing to more people than ever before, it doesn’t come without some drawbacks.

One of those drawbacks is how easy it has become to buy and sell ASX shares on the fly.

When you had to make a phone call to trade on the stock market and usually pay exorbitant brokerage fees in the process, you really had to stew on a potential buy or sell decision.

But today, with a trade taking just a few seconds on a mobile phone and with brokerage costs falling to nearly nothing, investing is almost too easy.

Many investors therefore fall into a trap. They feel like investing successfully means they have to constantly trade… to do something and be active in managing their portfolio. This could be the constant chase of the next ‘hot trend’ or else a restless nature that compels regular but unnecessary portfolio tinkering.

For these investors, doing nothing can feel like doing the wrong thing.

Investing in ASX shares: Less is more

But this could be a huge mistake.

Most of the successful stock market investors advocate the benefits of inaction, of ‘lazy’ investing. Of making long-term decisions and shying away from acting on emotions or a whim.

This is exactly what renowned AMP economist Shane Oliver has recently warned investors against in an edition of ‘Oliver’s Insights’.

Oliver quotes the legendary Warren Buffett to begin with:

Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.

He goes on to say that

Unless you really want to put a lot of time into trading, it’s advisable to only invest in assets you would be comfortable holding for the long term. This is less risky than constantly tinkering in response to predictions of short-term changes in value and all the noise around investment markets.

He also includes a more colourful quote from economist Paul Samuelson:

Investing should be like watching paint dry or watching grass grow. If you want excitement…go to Las Vegas.

This advice goes well with another famous Warren Buffett quote. According to CNBC, Buffett once told a university class that :

I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it, so that you had 20 punches — representing all the investments that you got to make in a lifetime. And once you’d punch through the card, you couldn’t make any more investments at all.

…you’d really have to think carefully about what you did, and you’d be forced to load up on what you really think about. So you’d do much better…

But what you can’t do is get rich by trying one new idea every day.

I think all of this is great advice for all investors to keep in mind. But especially new participants in the stock market, who are probably most at risk from thinking they need to be constantly active in order to be successful at investing.

The post Why you need to stop meddling with your ASX shares appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares you can confidently invest $500 in right now
• These brave investors are earning a 9% dividend yield on BHP shares! Here’s how
• Buy Coles and these ASX dividend shares next week
• Top ASX passive income shares to buy in March 2024
• Got $10,000 to invest? How to turn it into monthly income

Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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 looking to make your first investment into ASX shares and have $500 to spend, then it could be worth considering the three listed below.

Not only are they buy-rated by analysts, but they are high-quality companies with strong business models and positive long-term outlooks.

Here’s what you need to know to them:

CSL Ltd (ASX: CSL)

This biotechnology company could be a top ASX share to buy according to analysts at UBS. The broker has a buy rating and $330.00 price target on its shares.

Its analysts are predicting high-teen earnings growth from CSL over the coming years. This is thanks largely to the company’s key plasma business and the strong demand for immunoglobulins.

REA Group Ltd (ASX: REA)

Another ASX share to consider for a $500 investment is REA Group. It is the company behind the dominant realestate.com.au website and several international equivalents.

Morgan Stanley was pleased with its half-year results and feels very positive about its outlook. As a result, it recently put an overweight rating and $210.00 price target on the property listings company’s shares.

Woolworths Group Ltd (ASX: WOW)

Over at Goldman Sachs, its analysts think that Woolworths would be a great ASX share to buy right now.

So much so, the broker has the supermarket giant on its coveted conviction list with a buy rating and $40.40 price target.

Its analysts “believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations.”

The post 3 ASX shares you can confidently invest $500 in right now appeared first on The Motley Fool Australia.

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More reading

• Top ASX passive income shares to buy in March 2024
• 1 ASX stock that has created millionaires and will continue to make more
• 13 ASX 200 shares with ex-dividend dates next week
• 5 things to watch on the ASX 200 on Thursday
• Want to grab the CSL dividend? There’s not much time left!

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, and REA Group. The Motley Fool Australia has recommended CSL and REA 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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BHP Group Ltd (ASX: BHP) shares are popular among passive income investors for their reliable, fully franked dividends.

Most recently, the S&P/ASX 200 Index (ASX: XJO) mining giant declared a $1.10 per share interim dividend.

If you owned shares at market close on 6 March, you can expect that passive income to hit your bank account on 28 March. BHP shares traded ex-dividend on Thursday.

The interim dividend was down 20% from the prior year, impacted by US$5.6 billion of exceptional items expenses. Taking out those exceptional items, underlying profit came in at similar levels to the prior corresponding half year, at US$6.6 billion.

Revenue for the six months was up 6% to US$27.2 billion.

Atop the interim dividend, BHP shares also delivered a final dividend of $1.25 per share. That was paid out on 28 September.

That equates to a full-year payout of $2.35 per share.

At Friday’s closing price of $43.89 a share, this sees BHP, the biggest stock on the ASX 200, trading on a fully franked trailing yield of 5.3%.

So, how are these passive income investors earning almost 9%?

Brave passive income investors earning supercharged yields from BHP shares

The answer lies in the title of this article, or the subhead above.

Namely, that they were brave.

And, undoubtedly, more than a little lucky with their timing in buying BHP shares.

Now, trying to time the lows for ASX stocks is fraught with difficulty. If you get it wrong, you can buy into a stock that still has a long way to fall. Alternately, you might find yourself on the sidelines watching the stock roar higher, having missed the low point entirely.

However, there are times when quality stocks, like BHP, are beaten down for no reason relating to their long-term prospects. And history has shown these tend to be opportune periods to go stock shopping.

One such time was in March 2020, during the early weeks of the global pandemic-driven market rout.

Gripped by fear, investors sent BHP shares tumbling by 34% in a matter of weeks.

On 13 March 2020, that saw the ASX 200 miner close the day trading for $26.72 a share.

But not everyone was fearful.

Today the brave passive income investors who recognised a bargain when they saw it and bought after that sell-off are earning the same dividends from those BHP shares as investors who bought stock this week.

That means they’re earning a fully franked yield of 8.8% from those shares.

They’ll also have watched as that bargain-priced stock soared 64% over the past four years!

The post These brave investors are earning a 9% dividend yield on BHP shares! Here’s how appeared first on The Motley Fool Australia.

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More reading

• 3 ASX winners from the reporting season (and 2 losers)
• ASX dividend investors: Is BHP stock a buy now?
• Why is the BHP share price sinking today?
• 5 things to watch on the ASX 200 on Thursday
• Insiders have been buying these ASX 200 mining shares

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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Income investors have a lot of options on the Australian share market.

So much so, it can be hard to decide which ASX dividend shares to buy.

But never fear, listed below are three options that are rated highly by brokers. They are as follows:

Coles Group Ltd (ASX: COL)

The team at Morgans thinks investors should be snapping up this supermarket giant’s shares.

In response to its half-year results last month, the broker has put an add rating and $18.70 price target on its shares.

As for dividends, it is now forecasting fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.75, this implies dividend yields of approximately 4% and 4.1%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Over at Goldman Sachs, its analysts think that this insurance giant is a great option for income investors.

It has a buy rating and $18.52 price target on the ASX 200 dividend share.

In respect to income, the broker is expecting dividends per share of 62 US cents in FY 2024 and 61 US cents in FY 2025. This equates to dividend yields of 5.5% and 5.45%, respectively, based on current exchange rates.

Super Retail Group Ltd (ASX: SUL)

A final ASX 200 dividend share that could be a buy is Super Retail.

Goldman Sachs also likes the owner of retail brands BCF, Macpac, Rebel, and Super Cheap Auto. It has a buy rating and $17.80 price target on its shares.

In addition, it is expecting the retailer to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $14.87, this will mean yields of 4.5% and 4.9%, respectively.

The post Buy Coles and these ASX dividend shares next week appeared first on The Motley Fool Australia.

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More reading

• Top ASX passive income shares to buy in March 2024
• Brokers name 2 ASX 200 dividend shares to buy
• Bell Potter says these ASX 200 stocks are strong buys for March
• Morgans names more of the best ASX 200 shares to buy in March
• Why did Super Retail shares drop after going ex-dividend?

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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group and Super Retail 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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This week’s release of the latest GDP figures reinforced the fact Aussie consumers continue to feel the sting of inflation.

Our economy managed to eke out just 0.2% growth for the December quarter which – on a per capita basis – actually represented a 0.3% contraction over the three-month period.

With most of us still tightening our belts and a much-anticipated interest rate cut reportedly still many months away, we could all use some extra spending money!

So, we asked our Foolish writers which ASX dividend shares they think are the best buys right now to get that juicy passive income flowing.

Here’s what the team came up with:

7 best ASX dividend shares for March 2024 (smallest to largest)

• Rural Funds Group (ASX: RFF), $833.26 million
• Premier Investments Limited (ASX: PMV) $4.72 billion
• AGL Energy Limited (ASX: AGL), $5.89 billion
• Northern Star Resources Ltd (ASX: NST), $16.58 billion
• QBE Insurance Group Ltd (ASX: QBE), $25.58 billion
• Woolworths Group Ltd (ASX: WOW), $40.23 billion
• Telstra Group Ltd (ASX: TLS), $44.25 billion

(Market capitalisations as of market close 8 March 2024).

Why our Foolish writers love these ASX passive income stocks

Rural Funds Group

What it does: Rural Funds is a listed agricultural real estate investment trust (REIT) with a diversified farmland portfolio that is predominantly leased to corporate operators.

By James Mickleboro: The share market is trading within sight of a record high, and it is becoming harder and harder to find value. But that doesn’t mean there aren’t bargains out there.

I think Rural Funds could be classed as undervalued at present given its large discount to net asset value (NAV).

In addition, the company’s shares offer a significantly better-than-average dividend yield. For example, management is guiding to an 11.73 cents per share dividend in FY 2024. This represents a yield of 5.6% for investors at current prices.

And with Bell Potter recently reiterating its buy rating and $2.40 price target on the ASX passive income stock, there’s potential for some sizeable capital gains as well.

Motley Fool contributor James Mickleboro does not own shares of Rural Funds Group.

Premier Investments Limited

What it does: Nearly everyone who has been in an Australian shopping centre will have come across a retail brand operated by Premier Investments. Now spanning more than 1,100 stores across six countries, the likes of Just Jeans, Peter Alexander, Smiggle, and Portmans are highly established.

By Mitchell Lawler: If I had to guess what is most important to those seeking ASX passive income, from my personal experience, I would say it is consistency. A jumbo yield isn’t much help if it’s here one minute and gone the next. 

Premier Investments strikes me as a company that has stood the test of time. Founded in 1987, the company is still growing to record profits and dividends, according to its latest full-year results. The combination of maturity and growth is an enticing duo for long-term income generation. 

The company trades on a forward price-to-earnings (P/E) ratio of 18 times. It’s a tad rich compared to the retail sector average. However, Premier Investments has a healthy balance sheet with $360 million in net cash and a strong history of achieving high returns on its capital. 

Motley Fool contributor Mitchell Lawler does not own shares of Premier Investments Limited

AGL Energy Limited

What it does: AGL is an energy services provider that operates Australia’s largest private electricity generation portfolio within the National Electricity Market. The company generates electricity using coal, gas, renewables like wind, solar and hydro, and batteries.

By Bronwyn Allen: AGL announced a near-360% rocketing in underlying profit after tax for 1H FY24 and a turbocharged interim dividend of 26 cents per share. That’s 225% higher than last year and one of the biggest dividend boosts this earnings season.

Broker UBS retains its buy rating with a trimmed 12-month price target of $11.25. That’s a potential 28.4% upside on the AGL share price of $8.76 at the close on Friday. 

On top of that, the consensus forecast on CommSec is that AGL dividends will keep rising, from 50 cents in 2024 to 55 cents in 2025 and 58 cents in 2026.

Based on today’s AGL share price, that’s a yield of 5.7%, 6.3%, and 6.6%, respectively.  

Motley Fool contributor Bronwyn Allen does not own shares of AGL Energy Limited.

Northern Star Resources Ltd

What it does: Australian gold producer Northern Star has a portfolio of high-quality, high-margin gold mining operations in Australia and North America. Those include the Kalgoorlie and Yandal projects in Western Australia, and the Pogo goldfields in Alaska.

By Bernd Struben: Northern Star might not be the first stock that springs to mind if you’re after ASX passive income. The miner paid out 30.5 cents in unfranked dividends over the past 12 months. This sees shares trading on a trailing yield of 2.2%.

But I believe the ASX 200 gold miner’s dividends and share price are set for a sizeable uptick in 2024 as the soaring gold price fuels its profits.

Earlier this week, bullion hit new all-time highs of US$2,142 per ounce, up 18% from US$1,820 per ounce on 5 October.

Macquarie is also bullish on Northern Star. Last month, the broker placed an ‘outperform’ rating on the gold miner, with a price target of $16.00. That’s almost 11% above its price of $14.43 at Friday’s close.

Motley Fool contributor Bernd Struben does not own shares of Northern Star Resources Ltd.

QBE Insurance Group Ltd

What it does: QBE is a consumer and commercial insurance company with headquarters in Sydney.

By Tony Yoo: I’m usually not a fan of insurance companies, but QBE has recently caught my eye, with multiple experts flagging it as one of the hottest ASX 200 stocks right now.

The company enjoyed an excellent February reporting season with higher interest rates bringing higher revenue on the money it invests from customer premiums. Marcus Today equities analyst Matthew Lattin noted how QBE’s gross written premiums increased 10% in the last half-year.

A whopping 13 out of 14 analysts currently surveyed on CMC Invest reckon QBE is a buy. Trading at $17.09 at Friday’s close, the QBE share price has risen 16.3% already this year, while the dividend yield stands at a tidy 3.6%.

Motley Fool contributor Tony Yoo does not own shares of QBE Insurance Group Ltd.

Woolworths Group Ltd

What it does: Woolworths is a company that needs little introduction. It is the largest supermarket chain in Australia with its vast network of eponymous stores. In addition, it also owns the Big W brand.

By Sebastian Bowen: I’ve rarely recommended Woolworths shares and usually prefer arch-rival Coles Group Ltd (ASX: COL) for income investing. But that’s all changed this month, thanks to the steep share price fall Woolworths has suffered since its earnings report last month.

I’ve always liked Woolworths as a business but viewed its share price as too expensive and its dividend yield too low.

But on recent pricing, Woolies shares are at levels we haven’t seen for a few years. This has pushed the company’s fully-franked dividend well over 3%. As such, I think this ASX 200 passive income stock is well worth a look this March.

Motley Fool contributor Sebastian Bowen does not own shares of any stocks mentioned.

Telstra Group Ltd

What it does: Telstra is the largest telecommunications business in Australia, with the biggest mobile network and the most subscribers. It also has a lot of fixed telco infrastructure, offers NBN plans, and has an international presence. Telstra recently acquired Digicel Pacific.

By Tristan Harrison: With the Telstra share price trading around 52-week lows, I think this is a good time to invest in the telco. The inflationary environment has enabled the business to pass on inflation-linked price increases to subscribers, raising its average revenue per user (ARPU).

Telstra continues to win new subscribers each year, partly because Australia’s population keeps increasing and partly because its network is, arguably, seen as better than the competition.

Furthermore, I believe telco earnings are more defensive than many other ASX sectors.

Lastly, the increasing ARPU and subscriber numbers are helping boost revenue and profit, which is enabling Telstra to grow its dividend. Commsec’s estimate puts the FY24 Telstra grossed-up dividend yield at around 6.75%.

Motley Fool contributor Tristan Harrison does not own shares of Telstra Group Ltd.

The post Top ASX passive income shares to buy in March 2024 appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, Rural Funds Group, and Telstra Group. The Motley Fool Australia has recommended Premier Investments. 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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