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The good news for growth investors is that there are plenty of quality options to choose from on the Australian share market.

But which ones could be best buys in March?

Let’s take a look at three ASX growth stocks that brokers rate very highly:

IPD Group Ltd (ASX: IPG)

Bell Potter is a big fan of this distributor of electrical equipment and industrial digital technologies and sees it as an ASX growth stock to buy in March. It has the company on its preferred list with a buy rating and $5.90 price target.

Its analysts expect the company to benefit from the electrification megatrend. It said:

We view IPG as a high quality play on the electrification growth trend which is emerging as a dominant market narrative.

Treasury Wine Estates Ltd (ASX: TWE)

The team at Morgans thinks that Treasury Wine could be an ASX growth stock to buy right now. It has it on its best ideas list with an add rating and $14.03 price target on its shares.

The broker is feeling very positive about its recent acquisition of DAOU Vineyards (DAOU) for US$900 million (A$1.4 billion). It said:

While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near-term share price catalyst is if China removes the tariffs on Australian wine imports.

Xero Ltd (ASX: XRO)

Goldman Sachs added this cloud accounting platform provider’s shares to its Asia-Pacific conviction list this month. The broker has a buy rating and $152.00 price target on its shares.

Its analyst “is positive on the company’s outlook given accelerating product pipeline and strong management team to capture overseas market share while balancing profitability.”

The post Best ASX growth stocks to consider buying in March appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 dividend shares that could be strong buys this month
• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Ipd Group, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Ipd Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When some punters see the words “52-week high” they immediately think it’s too late to buy the stock.

But this is absolutely false logic. Shares don’t care about the past. Only the future outlook is what matters.

If anything, S&P/ASX 200 Index (ASX: XJO) stocks hitting new peaks have momentum from investors who obviously like what the business has to offer.

And the ultimate aim of the game is to own shares that other people want.

So in this spirit, Shaw and Partners portfolio manager James Gerrish recently named two stocks that his team are bullish on that have been smashing year-long records:

Turning the tables on foreign takeovers

Poker machine maker Aristocrat Leisure Limited (ASX: ALL) has gained more than 14% so far this year to not only make 52-week highs but is nearing its all-time peak.

“Following its report last November, this gaming company doesn’t confess its sins until May, but the markets are clearly voting with both feet that the news will be good,” Gerrish said in his Market Matters newsletter.

“Their FY23 results were solid, with revenue up 13% to $6.3 billion and segment [EBITDA] up 4% to $2,750 million, at the time both slightly ahead of expectations.”

Gerrish’s team is backing the ASX 200 stock to keep heading upwards in the medium term.

“We think Aristocrat can continue to grow earnings at mid-single digits, amplified by share buybacks (i.e. fewer shares on issue) while enjoying a net cash position, even after completing the $1.5 billion acquisition of Nasdaq-listed gaming software giant NeoGame SA (NASDAQ: NGMS).”

The move is an attempt to expand into US online lotteries, which is turning the tables on what usually happens with mergers and acquisitions.

“A pleasant change to see an ASX company ‘shopping’ overseas.”

‘Buy the dip until further notice’ on this ASX 200 stock

A poster example of how past performance has nothing to do with future is Audinate Group Ltd (ASX: AD8).

The share price for the audio networking technology provider has now rocketed 153% over the past year, but it remains a buy for many professionals.

This includes Gerrish’s team, which has ridden the rollercoaster all the way up.

“We are not planning on taking profit on Audinate, even though a 160% paper gain is eye-catching.”

The ASX 200 shares have been driven to all-time highs after last month’s half-year results labelled as “very strong” by Gerrish.

“Revenue grew 48% to US$30.4 million, with EBITDA US$10.1 million being a whopping ~70% ahead of expectations driven by strong revenues, plus margins improved ahead of consensus.

“While the first half was strong, the company left guidance unchanged, but the market thoroughly embraced the results.”

There could be some exciting corporate developments coming.

“They are looking at M&A opportunities with a strong cash balance of $117 million, which supports our view that this is a business going places.

“We can see a period of consolidation on the horizon, but we believe Audinate is a case of ‘buy the dip’ until further notice.”

The post 2 ASX 200 shares smashing 52-week highs that are STILL BUYS appeared first on The Motley Fool Australia.

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More reading

• Guess which 4 shares are being dumped from the ASX 200 index
• 6 ASX shares to buy and hold until the next leap year
• 1 ASX stock I think is just as hot as Nvidia (without all the hype)
• Here’s how the ASX 200 market sectors stacked up this week
• Why Audinate, Beach Energy, Calix, and JB Hi-Fi shares are charging higher

Motley Fool contributor Tony Yoo has positions in Audinate Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate 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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No one buys ASX shares with the intention of losing money.

Yet it is the harsh reality that many of your investments will end up doing just that. 

It’s inevitable regardless of your experience or knowledge. It’s just what happens because no one in the world owns a working crystal ball.

But the great news is that with thorough research and diversification, a few — or even just one or two — massive winners can carry your entire portfolio into the black.

Let’s examine one such small-cap example that’s put a smile on many faces recently:

The ASX tech stock putting smiles on dials

DUG Technology Ltd (ASX: DUG) is a high-performance computing specialist in the technology sector.

Back just 20 months ago, in June 2022, the DUG share price hit the 40 cent mark.

Imagine that you were wise enough to buy $20,000 of the tech stock then.

DUG Technology, ever since listing on the ASX in August 2020, has consistently grown its revenue, operating margin and net profit since.

Combine this with a general revival in high-growth tech stocks in 2023, and you have yourself a prodigious winner.

That $20,000 would have now turned into $124,500.

This is why you don’t need every stock to be a winner

So to what extent could such an explosive stock wipe out the effects of other stocks in your portfolio that haven’t done as well?

Let’s go back to June 2022.

At the time you were buying DUG shares, let’s say you also bought up four other stocks for $20,000 each in order to construct a diversified portfolio.

As I mentioned earlier, no one buys stocks thinking they will sink. 

You bought all five companies because you deemed them to be quality businesses with bullish prospects.

However, let’s assume the other four picks other than DUG Technology flopped.

Take it to the extreme and say they’re now all worth $0.

Even then, thanks to DUG shares, your portfolio is now 30% up.

There’s the power of diversification, and a lesson that not every stock pick has to be a winner for you to build your wealth.

The post If you’d put $20,000 in this ASX tech stock 20 months ago, you’d have $125,000 now appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX tech stock crashed 29% on its half-year results

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 positions in and has recommended Dug Technology. The Motley Fool Australia has recommended Dug Technology. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher
• Key takeouts for ASX shares this earnings season: CBA analysis
• Beaten-up ASX 200 stock jumps 14% on CEO resignation
• The gold price just reached its highest level ever: Which miners are buys?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 Brickworks Limited (ASX: BKW) share price reset its all-time record high again on Tuesday.

Brickworks shares hit a new peak of $30.35 in intraday trading, up 1.2% on yesterday’s closing price.

The Brickworks share price finished the session at $30.27 on Tuesday, up 0.93%.

The building materials stock has been on a run lately, despite no news out of the company in 2024 as yet.

However, Brickworks is due to report its 1H FY24 earnings on 21 March, so watch this space.

In the meantime…

Why is the Brickworks share price at a record high?

The outlook on housing is positive, and this has lifted the share prices of many building materials stocks.

Over the past three months:

• The Brickworks share price is up by almost 20%
• The CSR Ltd (ASX: CSR) share price is up by almost 50%
• The Boral Ltd (ASX: BLD) share price is up by almost 25%
• The Adbri Ltd (ASX: ABC) share price is up by almost 50%
• The James Hardie Industries plc (ASX: JHX) share price is up by almost 25%
• The Reece Ltd (ASX: REH) share price is up by almost 45%

The Australian building industry had a very tough time after the world came out of COVID lockdowns.

New home approvals initially rebounded strongly, but then came a major disruption to global supply chains, significant inflation worldwide, and relentlessly rising interest rates.

In Australia, shipping costs went up, the price of materials went up, and building projects were delayed due to a lack of skilled labour.

Many small builders went under because they couldn’t afford to complete fixed-price projects amid rapidly rising costs.

Project delays and rising costs led to less demand for new homes, as shown below.

Source: Australian Bureau of Statistics

Things are settling down now.

Interest rates are likely to decrease soon, and there is plenty of building work in the pipeline as the world tries to catch up on pent-up demand for new housing and other infrastructure.

This means there is likely to be a strong demand for building materials over the next few years.

Investors are picking up on this and buying ASX shares with exposure to this trend, like Brickworks shares.

Overseas buyers snapping up ASX building materials companies

Three ASX building materials companies are currently under takeover, indicating confidence in the building sector at a global scale.

The prospective buyers of these ASX companies are offering a premium to shareholders, too.

CSR has entered into a binding scheme implementation deed with the French building giant Saint-Gobain (LSE: COD), which is offering a 33% premium.

Adbri has done the same with Irish supplier CRH PLC, which is offering a 41% premium.

Boral has received a takeover offer from major shareholder Seven Group Holdings Ltd (ASX: SVW).

Subject to conditions, Seven’s offer of up to $6.25 per share represents a near-7% premium on the closing Boral share price the day before the announcement.

The post Why did the Brickworks share price just smash another record? appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• How did the Brickworks share price just hit an all-time high?
• Buying Soul Patts shares? Here’s what you’re really buying
• How I built $5,000 of passive income starting with $0
• Owners of Brickworks shares haven’t seen a dividend cut for 47 years!

Motley Fool contributor Bronwyn Allen 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 Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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 on the lookout for above-average dividend yields, then look no further.

Listed below are two ASX 200 dividend shares that have been named as buys and tipped to offer generous yields.

Here’s what you need to know:

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs is a big fan of QBE and sees it as an ASX 200 dividend share to buy now.

QBE was formed in Townsville back in 1886 and is now an international insurer and reinsurer with a local presence in 27 countries.

Clearly, QBE has been through many cycles during its time. And right now, Goldman Sachs thinks the company is going through a very positive point in its current cycle thanks to premium increases.

It expects this to support the payment of 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.

The broker also sees room for its shares to continue climbing. It has a buy rating and $18.52 price target on them.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that could be a buy this month is toll road operator Transurban.

It operates 22 roads in Australia and North America, including CityLink, Cross City Tunnel, and the East Distributor. It also has four projects currently in development or delivery.

Due to population growth and urbanisation, Transurban has been tipped to continue its growth long into the future.

The team at Citi expects this to underpin the payment of dividends per share of 63 cents in FY 2024, 65 cents in FY 2025, and 68 cents in FY 2026. Based on the current Transurban share price of $13.36, this will mean yields of 4.7%, 4.85%, and 5.1%, respectively.

Citi has a buy rating and $15.60 price target on its shares.

The post 2 ASX 200 dividend shares that could be strong buys this month appeared first on The Motley Fool Australia.

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More reading

• Key takeouts for ASX shares this earnings season: CBA analysis
• 3 all-star ASX dividend stocks I’d own in retirement to combat falling interest rates
• It’s not too late to buy these 2 rocketing ASX 200 stocks
• Guess which are the 2 newest members of the ASX 100 index
• 5 ASX 200 shares that boosted their dividends this earnings season

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 Transurban Group. 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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Last week, we covered several ASX exchange-traded funds (ETFs) that had just hit fresh new all-time highs. Well, ETFs are back at it again today, with another round of record-breaking gains.

The four ETFs we covered last week were as follows:

• iShares S&P 500 ETF (ASX: IVV)
• Vanguard US Total Market Shares Index ETF (ASX: VTS)
• VanEck Morningstar Wide Moat ETF (ASX: MOAT)
• BetaShares Crypto Innovators ETF (ASX: CRYP)

This Tuesday, two of those four ETFs have clocked even higher record highs. Those are the VanEck Wide Moat ETF, which hit $127.42 this afternoon. As well as the iShares S&P 500 ETF, which reached up to $52.59 a unit soon after.

These two funds have also been joined in the ‘all-time high club’ today by:

• VanEck Gold Bullion ETF (ASX: NUGG) at a new high of $32.41 per unit
• Global X Seminconductor ETF (ASX: SEMI) at $17.18
• BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) at $14.90
• iShares Global Healthcare ETF (ASX: IXJ) at $140.60
• iShares MSCI Japan ETF (ASX: IJP) at $108.25
• Vanguard MSCI Index International Shares ETF (ASX: VGS) at $122.88
• VanEck MSCI International Quality ETF (ASX: QUAL) at $54.42

Plus many others.

Are these record-high ASX ETFs still a buy?

ETF investors who have money ready to plough into the share market might be feeling some apprehension at investing in any of these funds at new record highs today. And understandably so. After all, we’re often told that successful investing involves ‘buying low, selling high’, not the other way around.

So how does an investor handle this prickly problem?

Well, I think it depends on the ETF in question. For funds that track a commodity or a cyclical sector (for example, NUGG or perhaps SEMI), buying at new record highs might not be a prudent move.

Looking at the gold price, for instance, over long periods of time will tell you that new highs are often followed by periods of weakness.

If you want exposure to something like gold in your portfolio, I think it’s best to load up when other investors are sending the price down, rather than up.

But what about other ETFs?

Time in the market or timing the market?

I don’t think investors who want to buy into a fund like the VanEck Wide Moat ETF, the Vanguard International Shares ETF or the iShares Japan ETF should be dissuaded from investing today based on these record highs.

These ETFs are designed to enable investment into compounding assets that should, reasonably consistently, increase in value over time. Whether they do or not is a different matter.

But in an ideal world, an investor wants to see as many new record highs as possible from an ETF of this nature. So avoiding one of these funds because it is at a record high might mean you miss out on the next one.

But you won’t even have to worry about these sorts of issues if you use a dollar-cost averaging strategy.

I think this is the best way for most investors to invest in ASX ETFs. It involves buying a fund that you like consistently, regardless of what its unit price is doing.

That way, you can take the stress out of buying at moments like this, safe in the knowledge that you’ve bought for better prices in the past, but still might benefit from future highs.

The post Are these record-breaking ASX ETFs now too expensive to buy? appeared first on The Motley Fool Australia.

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More reading

• Why Vanguard MSCI Index International Shares ETF (VGS) is a great buy for almost anyone
• 3 excellent ASX ETFs to buy in March
• 4 hot ASX ETFs smashing all-time highs on Thursday
• How to build a second retirement fund outside of superannuation
• Should I buy the iShares S&P 500 ETF (IVV) at all-time highs or wait?

Motley Fool contributor Sebastian Bowen has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betashares Crypto Innovators ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares 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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Goodman Group (ASX: GMG) is an ASX stalwart stock that has delivered impressive growth and continues to have a strong outlook.

In the past year, the Goodman share price has risen 59% and it has risen over 130% in the last five years.

It describes itself as a global industrial property and digital infrastructure specialist group with operations across Australia, New Zealand, Asia, Europe, the UK, and the Americas. The business owns, develops and manages “high-quality sustainable properties” that are close to consumers in key cities around the world.

The property portfolio includes logistics and distribution centres, warehouses, light industrial, multi-storey industrial, business parks and data centres. It recently reported its FY24 half-year result, which I thought was impressive.

Continuing performance

The ASX stalwart stock is expecting to achieve FY24 full-year operating earnings per security (EPS) growth of 11%.

Businesses around the world need more, and increasingly advanced, logistics properties to fulfil their distribution network needs. Goodman owns some of the most impressive warehouses in Australia. Amazon is by far its biggest tenant by rental income.

The business has low gearing, of 9%. I think this puts it in a strong position in this high interest rate environment. Some property businesses have much higher debt levels, which is increasing their interest expenditure.

Its portfolio occupancy remains high at 98.4%, with like-for-like net property income (NPI) growth of 5%.

Strong outlook

Goodman said at its FY24 first-half result that significant progress has been made on advancing its data centre strategy, securing power and planning, commencing infrastructure and continuing to work with customers.

The business is “well-positioned to capture strong demand for new, high-value, high-tier data centre facilities in supply-constrained locations.” Data centres are expected to be a key area of growth for the group.

Data centres have “attractive development margins on existing and new projects”. Data centres under construction currently represent just over a third of the ASX stalwart stock’s WIP.

It has total WIP of $12.9 billion, which covers 85 projects in 12 countries. The development yield on cost is 6.7% for projects in WIP. The weighted average lease expiry (WALE) is 13.6 years for the projects in WIP.

All of these completed projects will contribute significantly to Goodman’s rental profits and operating EPS.

We can’t control what the Goodman share price will do, but it’s regularly reporting operating EPS growth of around 10% each year. Supply constraints in its locations are expected to continue to drive rental growth and maintain high occupancy rates across the portfolio.

It’s not cheap, but I think it’s one of the highest-quality ASX shares around. That’s why I’d called it an ASX stalwart stock.

The post If you don’t own this ASX stalwart stock, you’re missing some serious stability appeared first on The Motley Fool Australia.

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More reading

• 2 no-brainer ASX ‘beginner’ stocks I’d buy
• For $1,500 in monthly passive income, buy 1,400 shares of this ASX 200 stock
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 real estate shares leaping higher on earnings news
• Why Altium, Goodman, Magellan, and Wesfarmers shares are storming higher today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman 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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S&P/ASX 200 Index (ASX: XJO) energy shares are losing ground today.

Here’s how these top three ASX 200 energy stocks are performing in afternoon trade on Tuesday:

• Woodside Energy Group Ltd (ASX: WDS) shares are down 0.6%
• Santos Ltd (ASX: STO) shares are down 0.6%
• Beach Energy Ltd (ASX: BPT) shares are down 1.5%

For some context, the ASX 200 is down 0.1% at this same time.

ASX 200 energy shares have faced headwinds since oil and gas prices began to retrace at the end of September.

On 27 September, Brent crude oil was trading for US$97 per barrel. By 2 January the price of that same barrel had dropped to US$76.

While the oil price as ticked up from there, currently trading for US$82.69 per barrel, Brent slipped about 0.1% overnight, potentially pressuring the big Aussie oil and gas stocks today.

But there are some potential tailwinds brewing that could yet mean there’s a turnaround in their fortunes in 2024.

Tailwinds brewing for ASX 200 energy shares

The first tailwind that could help boost oil prices, and by connection ASX 200 energy shares, is the latest production announcement from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

This week OPEC+ announced it would extend the existing voluntary agreement to reduce the cartel’s combined output by some two million barrels per day. The new agreement runs through the end of June.

As the move was widely expected and priced into markets already, oil price reactions were subdued.

But with global oil demand expected to modestly increase in 2024, the ongoing production cuts could lead to higher oil prices in the second half of 2024 if stockpiles get drawn down.

With the United States economy continuing on its growth trajectory, the US Energy Information Administration (EIA) forecasts that demand in the world’s top economy will increase in 2024, to 20.39 million barrels per day, up from 2023’s 20.23 million barrels per day.

On a global level, Goldman Sachs is forecasting a demand increase of around 1.5% for 2024.

While that’s not a huge increase, with the ongoing OPEC+ production cuts I believe we could see crude oil head back towards US$90 per barrel in the second half of the year, boosting revenues for ASX 200 energy shares.

An additional upside risk for global oil prices, one that no one wishes to see eventuate, is any major escalation in the Red Sea conflict. Should those shipping corridors get shut down, oil prices could easily surpass US$100 per barrel.

As for natural gas, which makes up a large part of the revenues earned by ASX 200 energy shares like Woodside, Santos and Beach, the EIA reported, “We expect the US benchmark Henry Hub natural gas spot price to average higher in 2024 and 2025 than in 2023.”

The post How these tailwinds could re-energise ASX 200 energy shares in 2024 appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group. 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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If you’re wanting a combination of big returns and a decent dividend yield, then Domino’s Pizza Enterprises Ltd (ASX: DMP) shares could be the way to do it.

That’s the view of analysts at Morgan Stanley, which believe the pizza chain operator’s shares are great value at current levels.

What is the broker saying about Domino’s shares?

According to a recent note out of the investment bank, its analysts have an outperform rating and $68.00 price target on its shares.

Based on its current share price of $45.20, this implies potential upside of 50% for investors over the next 12 months.

To put that into context, if Morgan Stanley is on the money with its recommendation, a $10,000 investment would be worth $15,000 by this time next year.

Why is it bullish?

The broker believes that the market is too negative on the company’s margin outlook. It highlights that the consensus view is that its margins are now structurally lower compared to pre-COVID levels.

However, it sees scope for margins to recover from improved store profitability, lower food costs, and restructuring benefits. In respect to food costs, it estimates that inflationary pressures on these costs have wiped off 2% from its margins.

All in all, the broker believes that “FY24 will be an inflection point for key share price drivers.”

Dividends

But the returns won’t stop at share price gains, Domino’s is a consistent dividend payer.

Morgan Stanley is expecting a $1.21 per share dividend in FY 2024, which represents an attractive 2.7% dividend yield. This would mean dividends of $270 from a $10,000 investment.

And if you’re willing to hold on, you can expect an even better yield next year according to Morgan Stanley. It has pencilled in dividends per share of $1.82 in FY 2025, which would mean a 4% dividend yield for investors.

The post Buy Domino’s shares for a 50% return and attractive dividend yield appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 shares could rise 20% to 50%
• This ASX growth stock is down 25%: Buy, sell, or hold?
• Down 27% in 2024, this leading fund manager forecasts a big turnaround for Domino’s shares
• 25 ASX 200 shares with ex-dividend dates next week
• Here’s how these 3 ASX 200 shares just earned substantial broker upgrades

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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