Tag: Motley Fool

  • Are you attracted to ASX losers?

    Four football fans put heads in hands and look disappointed while watching television.Four football fans put heads in hands and look disappointed while watching television.

    It appears ASX investors are attracted to loss-making shares, with many of the S&P/ASX 300 Index (ASX: XKO)’s favourite names trading with red balance sheets.

    Indeed, new research by MST Marquee has found 50 of the 300 companies that call the index home are yet to turn a profit.

    So, why are ASX investors still buying shares in companies posting losses? It’s likely the hope that they’ll find the next market champion.

    Why has the ASX embraced loss-making shares?

    According to research by MST Marquee, cited by the Australian Financial Review, unprofitable ASX 300 shares make up a sixth of the index.

    And investors might be pouring cash into the stocks in the hopes they’ll turn the corner to greatness.

    That is the general idea behind investing in ASX growth shares – which aren’t necessarily unprofitable – after all.

    But do loss-making companies really make good investments? The short answer is, sometimes.

    Of course, until last month Pilbara Minerals Ltd (ASX: PLS) was yet to turn a profit. Its share price is currently 720% higher than it was five years ago at $4.85.

    Looking further afield, Tesla Inc (NASDAQ: TSLA) stock was offered for US$17 as part of its initial public offering (IPO) in 2010. It turned its first profit in 2013 and nine years later, shares in the electric vehicle giant are swapping hands for US$288.

    Further, Amazon.com Inc (NASDAQ: AMZN) went public in 1997. It offered shares for US$18 (7.5 US cents adjusted for four stock splits since) under its IPO before posting its first profit in 2002. The stock now trades at more than US$117.

    But MST Marquee senior research analyst Hasan Tevfik urges investors to show caution when it comes to investing in loss-making shares. He said, courtesy of the AFR:

    Investors could also be hoping that a few of these birds will develop wings and start soaring like an eagle, perhaps.

    While the ultimate driver of share prices is the direction of profits, these companies have none. In our view, these companies are the equivalent of birds without wings.

    The post Are you attracted to ASX losers? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon and Tesla. The Motley Fool Australia has recommended Amazon. 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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  • 5 things to watch on the ASX 200 on Monday

    Scared, wide-eyed man in pink t-shirt with hands covering mouth

    Scared, wide-eyed man in pink t-shirt with hands covering mouth

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished another very difficult week with a day in the red. The benchmark index fell a disappointing 1.9% to 6,574.7 points.

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

    ASX 200 expected to sink again

    The Australian share market looks set to start the week deep in the red. This follows another selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 82 points or 1.25% lower this morning. On Wall Street, the Dow Jones was down 1.6%, the S&P 500 dropped 1.7%, and the NASDAQ tumbled 1.8%.

    Oil prices tumble

    Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult start to the week after oil prices sank on Friday. According to Bloomberg, the WTI crude oil price was down 5.7% to US$78.74 a barrel and the Brent crude oil price dropped 4.75% to US$86.15 a barrel. Recession fears weighed heavily on prices.

    Link takeover collapses

    The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch today after the company confirmed that its takeover has collapsed. As there is no expectation that the outstanding conditions precedent for the $4.81 per share offer will be satisfied, the court declined to make orders approving the scheme and dismissed the proceedings.

    Gold price drops

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week on Monday after the gold price tumbled. According to CNBC, the spot gold price was down 1.5% to US$1,655.6 an ounce on Friday night. This means the precious metal is now trading at a two-year low. Rising rates are lessening the appeal of the yield-less precious metal.

    Miners on watch

    It could be a bad start to the week for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares. On Wall Street, the mining giants’ US listed shares sank deep into the red amid concerns over an impending global recession. BHP’s shares dropped 4.5% and Rio Tinto’s shares fell almost 6% during Friday night’s session.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings Ltd. 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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  • Want to invest globally? Here are 2 international ETFs for ASX investors

    A businessman holding a world globe in one hand, representing global investment.

    A businessman holding a world globe in one hand, representing global investment.

    Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why.

    Never has it been so easy for investors to gain access to groups of shares from all corners of the world.

    But which ones should you consider if you want to invest globally? Two that could help you achieve your goals are listed below. Here’s what you need to know about these ETFs:

    iShares S&P 500 ETF (ASX: IVV)

    The first ETF that could be a great option for investors wanting to invest globally is the iShares S&P 500 ETF.

    This popular ETF aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. This index is home to 500 of the largest listed companies on Wall Street.

    BlackRock, which operates the fund, highlights that the ETF allows Australian investors to diversify internationally and seek long-term growth opportunities for a portfolio.

    Among its largest holdings are global giants such as Amazon, Apple, Coca-Cola Company, Johnson & Johnson, Mastercard, McDonalds, Microsoft, Nike, Tesla, and Visa.

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    Another ETF to consider if you want to invest globally is the Vanguard MSCI Index International Shares ETF.

    This ETF gives investors exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

    Vanguard, which operates the fund, notes that the ETF offers low-cost access to a broadly diversified range of securities that allow investors to benefit from the long-term growth potential of the global economy.

    The fund manager believes this this makes it a decent option for buy and hold investors that are seeking long-term capital growth, some income, and international diversification.

    Among the global giants you’ll be owning a slice of with this fund are Apple, HSBC, LVMH Moet Hennessy Louis Vuitton, Nestle, Procter & Gamble, Roche, Royal Bank of Canada, Shell, and Visa.

    The post Want to invest globally? Here are 2 international ETFs for ASX investors appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 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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  • 2 ASX growth shares that this leading broker rates as buys

    Two brokers pointing and analysing a share price.

    Two brokers pointing and analysing a share price.

    If you’re a fan of growth shares like I am, then you’ll be pleased to hear that a number have recently been rated as buys by leading brokers.

    Two such ASX shares are listed below. Here’s what analysts at Goldman Sachs are saying about them:

    IDP Education Ltd (ASX: IEL)

    The first ASX growth share that could be a good option for investors is IDP Education.

    It is a provider of international student placement services and English language testing services across the world.

    IDP is also the co-owner of the IELTS language test. This is preeminent English language test, which millions of students take each year.

    IDP has been growing at a rapid rate since the worst of the pandemic passed and appears well-placed to continue this positive form in the coming years. This is thanks to structural growth and recent acquisitions.

    Goldman Sachs is very bullish and is forecasting a 68% three-year earnings per share compound annual growth rate between FY 2021 and FY 2024.

    The broker currently has a buy rating and $36.00 price target on its shares.

    Temple & Webster Group Ltd (ASX: TPW)

    Another ASX growth share that could be a good option for investors according to Goldman Sachs is Temple & Webster.

    It is Australia’s leading pure-play online retailer of furniture and homewares.

    Goldman Sachs believes Temple & Webster is well-placed for long term growth. This is thanks to its leadership position in a retail category that is still only in the early stages of shifting online.

    The broker also highlights that the category favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry. Temple & Webster ticks these boxes.

    Goldman has a buy rating and $7.55 price target on the company’s shares.

    The post 2 ASX growth shares that this leading broker rates as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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  • Top brokers name 3 ASX shares to buy next week

    Broker written in white with a man drawing a yellow underline.

    Broker written in white with a man drawing a yellow underline.

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

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

    Aristocrat Leisure Limited (ASX: ALL)

    According to a note out of Citi, its analysts have retained their buy rating with a slightly trimmed price target of $40.20. Citi notes that US casino industry revenues are sustaining at much higher levels than history but higher supply-chain costs are impacting margins. This has led to the broker trimming its earnings estimates slightly. Nevertheless, Citi expects this to be temporary and remains positive on the future. Particularly given that Aristocrat holds five of the top 10 premium/leased titles by installed base and has newer machines growing rapidly in popularity. The Aristocrat share price ended the week at $32.88.

    Coles Group Ltd (ASX: COL)

    A note out of Morgans reveals that its analysts have retained their add rating and $20.00 price target on this supermarket giant’s shares. This follows news that the company has agreed to sell its Coles Express business for $300 million. Morgans expects this to allows Coles to focus on its core business and free up balance sheet capacity. The Coles share price was fetching $16.34 at the end of the week.

    IDP Education Ltd (ASX: IEL)

    Analysts at Goldman Sachs have retained their buy rating and $36.00 price target on this language testing and student placement company’s shares. Goldman notes that IDP has announced an agreement to acquire Intake Education for up to $83 million. The broker is positive on the deal and believes it could allow IDP to grow its market share of UK student placements. It also sees cross-sell opportunities. The IDP share price ended the week at $26.51.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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  • Experts names the blue chip ASX 200 shares to buy

    A group of people in suits watch as a man puts his hand up to take the opportunity.

    A group of people in suits watch as a man puts his hand up to take the opportunity.

    Looking for some blue chip additions to your portfolio? Listed below are a couple of ASX 200 blue chip shares that have been given buy ratings by analysts

    Here’s why its analysts rate them highly right now:

    ResMed Inc. (ASX: RMD)

    The first blue chip ASX 200 share that has been named as a buy is ResMed.

    It is a medical device company with a focus on sleep treatment and respiratory products. These products treat disorders such as sleep apnoea and chronic obstructive pulmonary disease (COPD).

    These certainly are great markets to be in.  For example, in respect to the former, the company estimates that upwards of 1 in 5 people are believed to suffer from sleep apnoea.

    And with the vast majority currently undiagnosed, this provides a significant long term growth runway. Particularly given its industry-leading products, high level of investment in research and development each year, and wide distribution network.

    Goldman Sachs is bullish on ResMed. It currently has a buy rating and $36.80 price target on its shares. This compares to the latest ResMed share price of $32.04.

    Treasury Wine Estates Ltd (ASX: TWE)

    Another blue chip ASX 200 share that is highly rated is Treasury Wine. It the global wine giant behind a range of popular brands including Penfolds.

    Treasury Wine certainly has been through a lot in recent years but has come out of it looking arguably stronger.

    In fact, the team at Morgans believe “the foundations are now in place for TWE to deliver strong earnings growth” in the coming years.

    In light of this, Morgans has named Treasury Wine as a “key pick” and put an add rating and $13.93 price target on its shares. This compares to the current Treasury Wine share price of $12.55.

    The post Experts names the blue chip ASX 200 shares to buy appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Treasury Wine Estates Limited. 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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  • 4 reasons I added Wesfarmers shares to my portfolio

    Four people on the beach leap high into the air.

    Four people on the beach leap high into the air.

    I’ve added Wesfarmers Ltd (ASX: WES) shares to my ASX share portfolio in the last year. At more than a century old, the ASX 200 retail and industrial conglomerate is one of the oldest companies in Australia.

    So why have I chosen this old giant of the ASX? Let’s discuss four reasons…

    Why I have added Wesfarmers shares to my ASX portfolio

    1. Wesfarmers is one of the most diversified ASX blue chip shares

    Although Wesfarmers is just one company, in reality, it is more like a dozen. Wesfarmers has so many operations, it’s hard to give them all credit. There are the retailing powerhouses of Bunnings, OfficeWorks, Kmart and Target to consider.

    But Wesfarmers also owns Covalent Lithium, Klenheat Gas, the Workwear Group, Wesfarmers Chemicals, Energy & Fertilisers, and most recently, the old API Group, which owns the Priceline pharmacy chain.

    I think this disparate group of companies gives Wesfarmers an incredible edge when it comes to diversification.

    2. Performance

    When we boil down investing, it’s really only performance that matters in the long run. And in this respect, I have been heartened by Wesfarmers’ long history of delivering returns to its shareholders. Just take the past five years.

    Since September 2017, the Wesfarmers share price has appreciated by just over 46%. In stark contrast, the S&P/ASX 200 Index (ASX: XJO) has only gained around 15.6% over the same period. Thus, I’d have much rather owned Wesfarmers over the past five years than an ASX 200 index exchange-traded fund (ETF).

    3. Wesfarmers shares are dividend heavyweights

    ASX investors love their dividends, and so do I. That further adds to my attraction for Wesfarmers shares. This company has a long and proud history of paying its shareholders hefty and fully franked dividend payments.

    The $1.80 per share in dividends investors will enjoy in 2022 comes in above the $1.78 paid out last year. That again was greater than the $1.70 total for 2020. That’s a streak I’m happy to be a part of.

    4. A stellar management team

    In my view, Wesfarmers’ management has proven time and time again that they are a steady hand on the tiller.

    From the successful spinoff of Coles Group Ltd (ASX: COL) in 2018 to the entry into lithium, before it was cool, Wesfarmers’ management has clearly got a clue as to how to run a successful conglomerate. Again, we can also point to the company’s share price performance for further proof.

    The post 4 reasons I added Wesfarmers shares to my portfolio appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers Limited right now?

    Before you consider Wesfarmers Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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 COLESGROUP DEF SET and Wesfarmers Limited. 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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  • 2 surprising ASX shares to buy for the energy transition: Wilsons

    A female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.A female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.

    The transition of energy sources from fossil fuels to renewables is one of the big investment themes of the current generation.

    In a recent memo to clients, Wilsons analysts recognised the massive amount of capital required for this momentous change.

    “Getting to net-zero over the next three decades requires approximately US$130 trillion in clean energy investment from now until 2050, according to the International Renewable Energy Agency,” said Wilsons equity strategist Rob Crookston.

    “The transition involves more energy storage and a higher uptake of electric vehicles, both of which will create a higher demand for batteries, specifically lithium-ion batteries.”

    So when most people think of ASX shares to invest in this theme, they think of green energy producers and lithium miners.

    But Wilsons implored investors to think outside the square.

    ‘An essential commodity in the coming decades’

    Wilsons analysts reminded investors that lowering carbon emissions is “a complex long-term global issue”.

    “The outlook for turning emissions around is likely to be a mix of energies, not one solution.”

    Therefore natural gas, according to Wilsons analysts, will be an essential commodity in the coming decades as the world transitions to renewables. 

    “Gas burns more efficiently than coal or oil and emits significantly fewer greenhouse gases than other fossil fuels while being a reliable source of energy,” said Crookston.

    “According to the International Energy Agency (IEA), natural gas will have a greater share of the global energy mix in the future as oil and coal’s relative share declines and renewables increase.”

    Even though it is still a fossil fuel, natural gas will “play a key role” as a baseload power source while solar and wind generators — and energy storage technology — improve their reliability.

    Crookston cited IEA projections that natural gas will end up replacing coal as the world’s second most critical energy source by the mid-2030s.

    “Typically, global infrastructure is better prepared to transition to gas than renewables at present, making it more cost-effective for countries in the short-term,” he said.

    “Thus, it can play a crucial role in supporting the transition to renewable energy.”

    Gas prices will remain elevated

    So which ASX shares is the Wilsons team favouring to play on the gas thematic?

    In their focus portfolio, Crookston mentioned that the key exposures are through Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS).

    “We think the current demand-supply dynamics are favourable for oil and gas prices over the medium-term, especially in an environment where demand can remain steady through the transition.”

    He forecasts that, at current spot prices, Woodside has a 71% upside in earnings per share to consensus forecasts for the 2024 financial year. Santos has a 56% premium for the same period.

    The Santos share price is up 13.5% year to date, while paying out a 2.6% dividend yield. Woodside shares are more than 40% higher than where they started 2022, while providing a whopping 9.6% yield.

    The post 2 surprising ASX shares to buy for the energy transition: Wilsons appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    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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  • Here’s why experts say these ASX dividend shares are buys

    A couple working on a laptop laugh as they discuss their ASX shares portfolio

    A couple working on a laptop laugh as they discuss their ASX shares portfolio

    Are you wanting to add some new dividend shares to your income portfolio? If you are, then the two listed below could be good options.

    Analysts have recently rated these dividend shares as buys. Here’s what you need to know about them:

    Baby Bunting Group Ltd (ASX: BBN)

    The first ASX dividend share for income investors to look at is Baby Bunting.

    It is a baby products retailer which has carved out a dominant position in this less discretionary category over the last decade.

    But management isn’t settling for that. It continues to see opportunities to expand its network and also its offering.

    The team at Morgans likes what it sees and is very positive on the company. So much so, it has an add rating and $5.00 price target on its shares. It commented:

    As the only specialist retailer in the baby category with a national omni-channel presence, we see potential for BBN to increase its 14% share of a $3.5bn market over the medium to long-term.

    The broker believes this leaves Baby Bunting well-placed for further earnings and dividend growth in the coming years.

    For example, the broker is forecasting fully franked dividends per share of 17 cents in FY 2023 and 19 cents in FY 2024. Based on the current Baby Bunting share price of $3.85, this will mean yields of 4.4% and 4.9%, respectively.

    Bank of Queensland Limited (ASX: BOQ)

    Another ASX dividend share for income investors to consider is Bank of Queensland.

    Thanks to the recent acquisitions of ME Bank and Virgin Money Australia, it is now one of the largest banks outside the big four.

    Analysts at Citi are fans of Bank of Queensland. The broker expects cost synergies from the ME Bank acquisition to be supportive of earnings growth even if mortgage loan growth slows as rates rise.

    Citi has a buy rating and $8.75 price target on the bank’s shares.

    As for dividends, the broker is forecasting fully franked dividends per share of 46 cents in FY 2022 and then 50 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.75, this will mean big yields of 6.8% and 7.4%, respectively.

    The post Here’s why experts say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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  • 2 excellent ETFs for ASX investors to buy now

    ETF spelt out with a rising green arrow.

    ETF spelt out with a rising green arrow.

    If you’re looking for an easy way to invest in certain themes, then exchange traded funds (ETFs) could be the answer.

    But which ETFs should you look at? Listed below are a couple of excellent ETFs that give investors access to exciting investment thematics.

    Here’s what you need to know about them:

    BetaShares Global Cybersecurity ETF (ASX: HACK)

    The first ASX ETF for investors to consider is the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the global cybersecurity sector.

    This week the Optus cyberattack outlined just how important cybersecurity is for businesses and consumers. With sensitive information being accessed by hackers, Optus is facing major reputational damage, as well as potential penalties and compensation.

    But Optus isn’t alone. This month Rockstar and Uber have also been hit by attacks and you can bet that countless smaller companies have also fallen victim to hackers as well.

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

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

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

    Another ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF.

    This ETF gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports.

    This is a market that benefits from the billions of gamers globally that reach for their PlayStations, PCs, or mobile devices each day.

    According to PwC’s Global Entertainment and Media Outlook, it expects the market to be worth US$321 billion by 2026. This is up from US$214 billion in 2021.

    This is good news for the quality companies you’ll be owning with this ETF. This includes Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two.

    The post 2 excellent ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of September 1 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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