So for those looking to park some money in the sector, Abacus Storage King Ltd (ASX: ASK) is pretty much the only option at the moment.

The company delivered its first half results this week and we've had a look at what the analysts are saying following that event.

But first let's have a look at the results.

Solid set of numbers

Abacus on Monday said that it had a "solid" first half, "with embedded growth upside".

The company delivered a statutory profit of $71.1 million, up 4.8% on the same half the previous year, and will pay an interim dividend of 3.1 cents per share, equal to that paid for the same period last year.

The company's occupancy rate was 90.5%, down 20 basis points, while gearing of 31.9% was within the target range of 25-40%.

The company also reaffirmed its guidance for full year distributions of 6.2 cents per share.

On the outlook, managing director Steven Sewell said it was looking positive.

He added:

HY26 demonstrates the resilience of the business model and the strength of the operating platform, which is becoming stronger as we continue to advance our use and understanding of the revenue management system. As we continue to evaluate a potential internalisation of management, our focus remains on disciplined execution, strategic growth and operational excellence.

What do the brokers think?

The analysts at Bell Potter and Shaw and Partners both had a look at the result, and each are predicting some modest share price upside.

Bell Potter has a buy rating on the shares and a price target of $1.70 compared with $1.53 currently.

They added that further growth should be on the cards:

We continue to like ASK on a sector relative basis as the sole way to gain exposure to Australian self-storage and, per our recent initiation, there continues to be a disconnect between listed-market storage valuations and private markets. As Australia's self-storage sector continues to mature and institutionalise we expect to see further valuation growth. We acknowledge the near term cost challenges impact ASK but are equally conscious of the multiple upside catalysts and pronounced valuation disconnect of this vehicle.

Shaw and Partners has a hold rating on the shares and price target of $1.65.

They said the business "remains vibrant" and the company had plenty of capacity for acquisitions and developments given its gearing ratio.

They added that there could be a modest uplift to the valuation should the company go ahead with internalising its management vehicle, Abacus Group (ASX: ABG).

The post Is Abacus Storage King a buy, sell or hold after its first half results? appeared first on The Motley Fool Australia.

REITs can offer predictable cash flow and dividend distributions, as well as diversification and capital growth opportunities. But sometimes it can be difficult to pinpoint the ASX REITs with the best potential for growth.

In a new note to investors, analysts at Macquarie Group Ltd (ASX: MQG) have highlighted the ASX REITs that they expect to outperform over the next 12 months.

DigiCo Infrastructure REIT Stapled Securities (ASX: DGT)

DigiCo's share price is 0.2% higher on Wednesday morning. At the time of writing, the shares are changing hands for $2.36 a piece. That's a 16.1% drop over the month, and over the year, they're 28.01% lower.

But that shouldn't put you off. Macquarie thinks the low price presents a good buying opportunity. The broker has an outperform rating on the shares and a $4.16 target price. At the time of writing, that implies a potential 76.3% upside over the next 12 months.

Lendlease Group (ASX: LLC)

Lendlease shares are 0.19% lower at the time of writing, trading at $5.21 per share. Over the past month, the ASX REIT's share price has fallen 4.93% and it is now down 24.05% over the year.

Again, Macquarie has an outperform rating on Lendlease shares, with a $6.74 target price. At the time of writing, that implies a potential 29.4% upside for investors over the next 12 months.

Abacus Group (ASX: ABG)

Shares in the diversified property group, which has interests in storage, office, and retail, are 0.43% higher at the time of writing on Wednesday morning, at $1.16 per share. Over the past month, the ASX REIT's share price has dropped 4.51%, and over the year, it's 3.72% lower.

Macquarie has an outperform rating on Abacus shares and a $1.31 12-month target price. That represents a potential 12.9% upside ahead for investors.

Dexus (ASX: DXS)

Dexus shares are trading flat at $7.16 a piece at the time of writing. Over the past month, the Australasian real assets manager and owner's share price has decreased by 4.79%, but over the year, it is 2.43% higher.

Macquarie has assigned an outperform rating and a $8.46 per share target price to the ASX REIT. That implies a potential 18.2% upside for investors over the next 12 months.

Mirvac Group (ASX: MGR)

The Australian property group's shares are up 0.44% at the time of writing, trading at $2.27 each. That's a drop of 6.97% over the month but still 6.34% higher than this time last year.

The broker also has an outperform rating on the shares, with a $2.70 target price. That implies a potential 18.94% upside for investors, using the share price at the time of writing.

Macquarie comments on Lendlease's APPF wind-up

Analysts said that Lendlease expects the wind-up of APPF Retail to be broadly earnings-neutral, with an estimated $17 million contribution in FY25 and a yield of around 5%, similar to debt costs. 

The Trustee has determined the appropriate strategy is to sell all assets (~$2.5bn excluding Erina Fair, which is already in its settlement period).

The wind-up could present a potential opportunity for co-owners and property managers to pick up management roles or buy into parts of the old asset pool if the opportunity comes up. 

The broker also explained that fee pressure is building across unlisted property funds. Recent changes to fee structures suggest potential earnings softness in the near term. With more APPF funds heading into full liquidity in 2026, there's a chance of more wind-ups, depending on how investor sentiment plays out. 

The post Macquarie names 5 ASX REITs that could return up to 76% appeared first on The Motley Fool Australia.

Take the S&P 500 Index (SP: .INX) in the US, for example. In October, the S&P 500 Index recorded the lowest dividend yield for two decades, at around 1.16%. Meanwhile, in the UK, the FTSE 100 Index (FTSE: UKX) has a yield of around 3.15%.

Despite the current low rate, the ASX 200's 3.4% dividend yield rate still beats its counterparts elsewhere. And some stocks within the index are performing even more strongly – two in particular stand out for their exceptional yields.

Here are 2 ASX 200 dividend shares with double the current index yield.

Woodside Petroleum Ltd (ASX: WDS)

Woodside is the largest oil and gas producer in Australia. The company acquired BHP's oil and gas portfolio in June 2022, establishing it as the largest energy company listed on the Australian Securities Exchange (ASX) and a top 10 global independent energy company. 

At the time of writing, Woodside shares are trading 0.95% higher for the day at $24.40 a piece. It's been a year of peaks and troughs for the oil producer, though, but the shares have managed to recover losses shed earlier in the year and are currently 0.33% higher than this time last year.

Much of this can be attributed to the share's 10.4% price surge over the past week following news that the company has entered into a major partnership with US energy infrastructure firm Williams Companies Inc (NYSE: WMB).

When it comes to paying out dividend yields to investors, the oil producer provides an impressive passive income, too. 

Woodside paid a fully franked final dividend of 84.9 cents in April, followed by an interim dividend of 81.8 cents per share in September. That equates to a total annual payout of $1.667 per share, the equivalent of a fully franked trailing dividend yield of 6.9%. That's just over double the index yield.

Abacus Group (ASX: ABG)

Abacus is a diversified property group with interests in storage, office, and retail. Its assets are concentrated in metropolitan centres in Australia's eastern and southern states, and in Auckland, New Zealand.

At the time of writing, Abacus shares are trading 0.62% higher for the day at $1.2175 a piece. Like Woodside, Abacus shares have seen a lot of price climbs and falls over the past year. Over the past 6 months, the shares have risen 5.63%, but over the year, they're still trading at a 1.06% deficit.

Abacus also pays an impressive dividend yield to investors. The company paid a dividend of 4.25 cents per share in February and again in August. That equates to a total annual payout of 8.5 cents per share, the equivalent of a trailing dividend yield of around 7%. Going forward, the business expects to pay a distribution of 8.5 cents per share in FY26, too.

The post 2 ASX 200 dividend shares with double the current index yield appeared first on The Motley Fool Australia.

I wouldn't invest in a high-yield ASX share unless I believe its underlying value is attractive; otherwise, any income payments may be offset by capital declines.

Sometimes, businesses with very high yields may be at a higher risk of a dividend cut than a typical dividend-paying business. But, at the current valuations, I believe the following businesses are underrated by the market and have given guidance of large payouts for FY26.

Centuria Office REIT (ASX: COF)

The office sector has faced challenges over the last few years, but several companies have implemented mandates requiring employees to partially or fully return to the office. This, along with a wider economic recovery, is a tailwind for the sector.

This real estate investment trust (REIT) reported that 75% of its income came from government, multinational corporations, and listed entities, which are high-quality and reliable tenants. At the end of FY25, the business had a portfolio occupancy of 91.2% and a weighted average lease expiry (WALE) of 4.1 years.

In terms of how undervalued it is, the business had net tangible assets (NTA) of $1.67 per unit in FY25, meaning it's trading at a discount of approximately 30%.

The business expects to pay a distribution per unit of 10.1 cents in FY26, which will be funded by rental profit (funds from operations – FFO) of between 11.1 cents and 11.5 cents per unit. At the time of writing, the ASX share's FY26 dividend yield is approximately 8.5%.

At the time of the FY25 result, the fund manager of the REIT, Belinda Cheung, said:

Looking ahead, higher replacement costs and office withdrawals for alternate-use conversion is expected to stem future supply and reduce the market size to rebalance office markets, reducing future vacancy rates. COF's portfolio is well positioned to benefit from these future tailwinds.

Abacus Group (ASX: ABG)

Abacus is another business in the property sector. It says it's a strong asset-backed business, with an annuity-style model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value.

It has assets spread across office, retail, and self-storage. The business also generates management fees from self-storage and commercial. It manages and owns almost a fifth of Abacus Storage King (ASX: ASK).

The ASX share is focused on increasing opportunities to scale its investment management activities, including capital partnering and joint ventures.

The business expects to pay a distribution of 8.5 cents per security in FY26, translating into a forward dividend yield of 7.2% at the time of writing.

As a bonus, past and future rate cuts could increase the valuation of the properties in the portfolio and also help improve the earnings, leading to potentially larger distributions.

The post 2 ASX shares with dividend yields above 7% appeared first on The Motley Fool Australia.

Shares in the real estate player are up 1.5% at the time of writing, fetching $1.12 apiece as the market interprets its numbers.

Meanwhile, the S&P/ASX 200 index (ASX: XJO) is slightly in the red today, down 0.35%.

Let's see what the company posted.

ASX real estate stock gains on strong full-year results

Key highlights from the company's FY24 results include:

• Funds from operations (FFO) of $82.5 million.
• Like for like (LFL) income growth of 4.7% in its office portfolio and 6.3% in its retail portfolio.
• Office occupancy increased to 93.4%, while retail occupancy climbed to 96.1%.
• Stake in Abacus Storage King (ASK) contributed investment earnings of $16.1 million and an occupancy rate of 91%.
• Delivered a full-year distribution of 8.5 cents per security.

What else happened in FY24?

The ASX real estate share improved across many metrics in FY24. It finished the year with a weighted average capitalisation rate (WACR) of 6.5% for its investment property portfolio, up 0.8%.

The group divested its Market Central asset in Queensland, bringing its total commercial assets to 16 and valuing them at $1.9 billion.

The office portfolio, comprising 14 assets, saw LFL income growth of 4.7%, as occupancy increased over the year, combined with a 3.6% bump in rents.

Its retail portfolio also expanded, with a notable increase in its stake in the flagship Myer store in Melbourne to 50%.

Like-for-like rental income growth in the retail portfolio was up more than 6% for the year, with a total occupancy of 96%.

Meanwhile, the company's ASK segment contributed around 20% of the group's annual earnings, producing profits of $17 million.

Despite the many upsides, the company reported a decrease in investment property values of around 13%, which could impact the ASX real estate stock.

What did management say?

Abacus Group managing director Steven Sewell expressed confidence in the Group's strategic direction:

Abacus Group's diversified portfolio of assets exposed to the Office, Self Storage and Retail sectors, is delivering on its vision to create exceptional value for our customers and stakeholders through the identification, ownership and management of a portfolio of real estate investments.

As evidenced during FY24, Abacus continues to constantly review the income and capital returns from all assets within the portfolio, as part of our active asset management strategy, with the aim of directing capital towards assets that provide strong and growing income streams over the medium to long term.

Chief financial officer Evan Goodridge also highlighted the Group's strong capital position:

Abacus Group has diversified its income streams post de-stapling and directed capital towards assets with the best risk adjusted returns.

We delivered a FY24 distribution of 8.5 cents per security, in line with guidance and 25% franked, with the intention to distribute a further $76 million of excess franking credits over the medium term.

What's next?

Looking ahead to FY25, Abacus Group is focused on maintaining its momentum with stable distribution guidance of 8.5 cents per security.

The Group aims to sustain a payout ratio of 85%-95% of FFO, assuming no significant decline in business conditions.

Despite the inflationary pressures throughout the Group's cost base, particularly in property expenses, Abacus Group provides stable FY25 distribution guidance of 8.5 cents per security, targeting a full year payout ratio of 85%-95% of FFO, predicated on no material decline in current business conditions.

ASX real estate stock snapshot

Investors are bidding up this ASX real estate stock today after its FY24 earnings.

Abacus shares are down 4.2% over the last 12 months.

The post ASX real estate stock climbs on 5% centre growth in FY24 appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Abacus Group (ASX: ABG)

The Abacus share price is down 3% to $1.15. This has been driven by the commercial property company's shares going ex-dividend this morning for its upcoming final dividend. Last week, the company declared a 4.3 cents per share unfranked dividend. This brought its total dividends for FY 2024 to 8.6 cents per share. Eligible shareholders can look forward to receiving this final dividend in a couple of months on 30 August.

Bannerman Energy Ltd (ASX: BMN)

The Bannerman Energy share price is down 9% to $3.26. This ASX uranium stock is falling today after it received firm commitments for a two-tranche placement of approximately 25.8 million new shares to new and existing institutional and sophisticated investors. Bannerman Energy advised that these funds were raised at a 7.8% discount of $3.30 per new share, which will raise gross proceeds of approximately $85 million. The funds raised from the placement will be applied towards the development of the Etango-8 Project in the Erongo Region of Namibia.

Immutep Ltd (ASX: IMM)

The Immutep share price is down a further 9% to 30.5 cents. Investors have been selling this clinical-stage biotechnology company's shares since the release of topline results from the TACTI-003 Phase IIb Trial on Thursday. Immutep's trial is evaluating eftilagimod alfa (efti) in combination with anti-PD-1 therapy Keytruda (pembrolizumab) as first-line treatment of recurrent/metastatic head and neck squamous cell carcinoma patients (1L HNSCC). Although the company reported positive results, it didn't include a p-value with them. This decision seems to have left investors fearing that the results were not statistically significant.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3% to $3.16. This is despite there being no news out of the lithium miner today. However, it is worth noting that ASX lithium stocks have been rebounding this week. Today's decline could have been driven by profit taking from some investors. Especially after lithium miners on Wall Street tumbled into the red during overnight trade. Pilbara Minerals' shares are down by a disappointing 33% since this time last year amid concerns over falling lithium prices.

The post Why Abacus, Bannerman Energy, Immutep, and Pilbara Minerals shares are falling today appeared first on The Motley Fool Australia.

Let's take a closer look at Growthpoint Properties Australia Ltd (ASX: GOZ), Abacus Group (ASX: ABG), and Stockland Corporation Ltd (ASX: SGP).

Growthpoint Properties

Growthpoint Properties has caught the eye of many investors today after it announced its final distribution amounts for FY 2024.

The ASX 300 share, which focuses on industrial and office properties, has seen its stock drop nearly 20% over the past year.

Today it confirmed a final distribution of 9.65 cents per share will be paid to its investors for FY 2024. This will bring the total payout for the 12 months to 19.3 cents.

At today's closing share price of $2.36, up 2.6%, this translates to a juicy dividend yield of 8.62%.

Abacus Group

Next up is Abacus Group, another ASX 300 share that made news today after it reaffirmed its latest dividend payment to shareholders.

In May, the company announced it expected the H2 FY 2024 distribution to be 50% franked and 8.9 cents per share for the year. Given today's closing share price of $1.16, this translates to a substantial yield of 7.2%.

It also said the group's parent entity boasts sufficient franking credits to "fully frank" its dividend to $173 million or 19.3 cents per security.

"The group's intention is to distribute these franking credits to security holders over the medium term", it said in the May announcement.

This change in distribution policy "is consistent with Abacus Group's strategy to simplify its corporate
structure, enhance its capital management and maximise securityholder returns", it added.

The ASX 300 share confirmed a dividend of 4.25 cents per share with a payment date of 30 August 2024.

Stockland Corporation

Stockland is the last of the ASX 300 shares to round out the list. It is one of Australia's largest REITs, with a market capitalisation of $10.5 billion at the time of writing.

Stockland advised today that its estimated distribution for the six months to 30 June 2024 should be 16.6 cents per ordinary stapled security.

The company noted this aligned with its full-year distribution guidance of 24.6 cents.

The team at Citi rates Stockland a buy with a price target of $5.10. According to my colleague James, the broker expects dividend growth for Stockland. It expects dividends of 26.2 cents in FY2024 and 26.6 cents in FY2025.

At today's share price of $4.41, these projections translate to yields of 5.9% and 6%, respectively.

What's next for these ASX 300 shares?

In summary, Growthpoint Properties, Abacus Group, and Stockland offer attractive dividend yields after their announcements today.

For Australian investors focused on income, these ASX 300 shares might be worth considering. As always, remember to conduct your own due diligence.

The post 3 ASX 300 real estate shares with attractive dividend yields appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Abacus Group (ASX: ABG)

According to a note out of Citi, its analysts have retained their buy rating and $1.45 price target on this property company's shares. The broker was pleased to see Abacus reaffirm its distribution guidance at its annual general meeting. So, with the company's shares trading at an estimated dividend yield of 7.9% and a 49% discount to its latest disclosed NTA per share, the broker feels now is the time to buy. The Abacus share price is trading at $1.04 today.

Cosol Ltd (ASX: COS)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this asset management solutions company's shares with a $1.08 price target. While Cosol's first-half guidance was below the broker's expectations, it remains positive. It likes the company due to its growing recurring revenue and track record of successful acquisitions. The Cosol share price is fetching 84 cents on Monday.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Analysts at Goldman Sachs have retained their buy rating on this media company's shares with a reduced price target of $2.30. While margin headwinds persist, Goldman highlights that Nine is leading Metro TV and BVOD ratings in key demographics in 2023. It also notes that strong content performance for Stan is driving solid sub growth and higher average revenue per user (ARPU). This is good news given price rises in FY 2024. The Nine share price is trading at $1.93 today.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

How would you like your regular wages supplemented with $18,000 that you didn't have to work for? Sounds pretty good, right?

Let's see how the ordinary punter can get themselves to that position in just 10 years:

Let's create a diversified stock portfolio

Comparison site Finder recently conducted a survey that found the average Australian had $39,459 saved up.

So let's start with that to build a stock portfolio.

To grow it to a nest egg capable of producing $18,000 of passive income, I would choose a diversified basket of growth shares.

Note the word diversified. 

Experts say diversification is the only free lunch in investing because you don't want your success to all hinge on the fortunes or misfortunes of one particular sector or region.

Three examples of growth stocks ripe for long-term investing are Xero Limited (ASX: XRO), Camplify Holdings Ltd (ASX: CHL), and RPMGlobal Holdings Ltd (ASX: RUL).

I consider them quality businesses that are making great strides in expanding their revenue and profitability.

And they play in different sectors and geographies to provide decent diversification.

New Zealand company Xero makes accounting software for small and medium-sized business clients. Its biggest market is Australia and New Zealand but is growing its presence in North America and the United Kingdom.

Camplify's customers are consumers who are seeking short-term rentals of campervans from private owners. It's a platform like Airbnb Inc (NASDAQ: ABNB) but for recreational vehicles.

Big mining companies are the ones who buy RPMGlobal's technology and consulting services.

Add to it regularly and watch the investment grow 

Remembering that past performance is no indicator of what the future holds, let's take a look at how these shares went in recent years so we can hypothesise about how our portfolio could grow.

The Xero share price has gained more than 160% over the past five years, despite plunges during the first COVID-19 wave and the 2022 growth stock sell-off.

Camplify listed in late June 2021 and over the past three-and-a-bit years has rocketed 65%.

Meanwhile, RPMGlobal shares have soared in excess of 137% over the last half-decade.

All three have capital growth rates that exceed doubling of the share price in five years.

But let's be conservative with our calculations and assume our diversified portfolio can double each half-decade.

That equates to a compound annual growth rate (CAGR) of 14.87%.

This means that your $39.459 portfolio, with $100 added each month, could grow to a tidy $182,048.54 after 10 years.

Now we can get our grubby hands on some passive income.

Collect your passive income cheque every year

From this point, there are a couple of ways of harvesting passive income.

The straightforward method is to leave the portfolio as is and simply sell any gains made each year.

Even if the companies mature and the CAGR can't quite stay at 14.87%, a 10% return each year will allow you to pocket $18,205 of passive income.

Nice work!

The pro of this route is the simplicity in transition from growth to the income phase. The con is that the income could be quite volatile.

As we all know, share markets can have wildly fluctuating fortunes from year to year. That means that while the average payout could be $18,000, some years you might see nothing while other times you may receive an absolute windfall.

If you sought more stability in income, you may consider switching the portfolio over to ASX dividend shares.

Again, you'll want to buy a diversified set of stocks. A trio that I can think of are Abacus Group (ASX: ABG), GR Engineering Services Ltd (ASX: GNG), and Viva Energy Group Ltd (ASX: VEA).

They play in distinct industries — real estate, engineering, and energy — and offer excellent dividend yields of 17.4% unfranked, 8.8% fully franked and 9.7% fully franked respectively.

If you can average out a yield of 10% per annum from a basket of such income stocks, then you can also rake in $18,205 each year.

The downside of this approach is the research required to overhaul the portfolio, and potential capital gains tax implications from selling the growth shares.

But the advantage might be that the passive income flow will be more predictable year to year.

You will want to seek personal advice to choose the best route for your circumstances.

Best of luck with your investments.

The post How I'd invest $100 a month in ASX shares to aim for annual passive income of $18,000 appeared first on The Motley Fool Australia.

In fact, some ASX All Ords shares are offering yields more than triple that. But that doesn't mean they will turn out to be screaming buys today though.

If you think a 6% yield is attractive, then no doubt the Horizon Oil Ltd (ASX: HZN) share price will draw your eye. Right now, this small ASX All Ords oil share offers a trailing dividend yield of 14.4%. And that's after the 6% or so jump we have seen with this company's shares this Monday.

But that's just the start.

What are the highest-yielding ASX All Ords shares offering today?

We also have Abacus Group (ASX: ABG) to look at. Abacus shares offer investors a dividend yield of 16.88% right now.

There's the BSP Financial Group Ltd (ASX: BFL) share price to consider as well. At present, BSP shares have a dividend yield of 18.1% on the table.

That's topped by coal share Yancoal Australia Ltd (ASX: YAL). Today, Yancoal shares are displaying a dividend yield of 21.62%. That's almost mirrored by the Base Resources Ltd (ASX: BSE) share price, with its yield of 22.7%.

It gets even better.

Sunland Group Ltd (ASX: SDG) shares are exhibiting a dividend yield of 32.98% at present. And not to be outdone, Terracom Ltd (ASX: TER) shares are at the top of the ASX All Ords pile right now when it comes to dividend yield, displaying a frankly ridiculous yield of 44.49% today.

I'm sure that was a lot to take in. The prospect of receiving a cash yield of 44.49% on your money every year is a salivating prospect to be sure.

But, as I'm sure you're sensing, there are a lot of caveats here to discuss.

When is a dividend too good to be true?

A company's dividend yield reflects the past, not the future. No ASX All Ords share is under any kind of obligation to continue one year's dividend the next. It could double it, halve it or eliminate it altogether. A company's dividends from year to year are entirely at the discretion of its management.

Let's look at Terracom's dividend as an example. The first thing to note is that Terracom's monstrous 44.49% dividend yield is no mistake. Over the past 12 months, the ASX coal share has paid out two dividends, worth 3 cents and 7.5 cents per share respectively. That total of 10.5 cents per share gives Terracom a trailing dividend yield of 44.49% at the current share price of 47 cents.

However, a company's dividend yield is just as dependent on its share price as its raw dividends per share. And a large contributor to this massive dividend yield is the Terracom share price's near 55% loss over the past 12 months. The lower an ASX All Ord's share price, the higher its trailing dividend yield will be.

ASX resources and energy shares in particular have nororiously volatile dividends. That's because their ability to fund their dividends is entirely dependent on external factors – namely the prices of the commodities they sell.

It's clear that investors are expecting coal prices to come down significantly from the record highs we have seen over the past two years. That's why Terracom joins Yancoal in having both high trailing dividend yields, and huge share price losses over the past 12 months.

Foolish takeaway

If you sift through the shares listed above, you'll probably find the good reason why the markets are pricing these companies at low levels right now, which is helping to push their dividend yields to the rather implausible levels we are seeing. It's a good indication that most investors aren't expecting the recent dividends we have seen with these companies to continue for much longer.

Now, it's entirely possible that the markets are getting at least one of these companies' prospects wrong, and that investors will continue to enjoy huge income from any of these shares.

But investors have to ask themselves what they know that the market doesn't. There's a high chance that buying into these shares right now is nothing more than a dividend trap.

The post Where can investors find the highest dividend yields among ASX All Ords shares? appeared first on The Motley Fool Australia.

According to the release, there will be a total of five companies entering the S&P/ASX 200 Index (ASX: XJO) at the next rebalance later this month on 18 September.

To begin with, let's take a look at the new additions to the benchmark index.

Which ASX shares are entering the ASX 200 index?

The first ASX share to enter the index this month is Data#3 Limited (ASX: DTL). It is an information and communications technology company.

Gold miners Genesis Minerals Ltd (ASX: GMD) and Ramelius Resources Ltd (ASX: RMS) have also been added to the ASX 200 index. The former recently acquired the Leonora assets from St Barbara Ltd (ASX: SBM).

Another new entrant to the index is high-flying Neuren Pharmaceuticals Ltd (ASX: NEU). This pharmaceutical company's shares have rocketed higher this year thanks to its game-changing agreement with North American partner Acadia Pharmaceuticals (NASDAQ: ACAD).

Finally, the credibility of the ASX 200 index is once again questioned with the addition of meme stock Weebit Nano Ltd (ASX: WBT).

However, some short sellers may be happy with this news, as its inclusion allows institutional investors with strict investment mandates to now target the highly speculative semiconductor company.

Which shares are being kicked out?

It is a case of one meme stock in, one meme stock out for the ASX 200 index this quarter.

Weebit Nano is entering the index as Brainchip Holdings Ltd (ASX: BRN) leaves it. This semiconductor company has been delivering very strong costs growth this year and that's about it. Recent revenue was less than a café and its losses doubled to US$17.15 million.

Also leaving the index are Abacus Group (ASX: ABG), Abacus Storage King (ASX: ASK), Imugene Limited (ASX: IMU), Lake Resources N.L. (ASX: LKE), and Syrah Resources Ltd (ASX: SYR).

As you might have noticed, there are six companies leaving the ASX 200 index and five entering it. That's because there have been 201 ASX shares in the index since Abacus Group spun off its Storage King business into a separate listing.

The post These 6 shares are being kicked out of the ASX 200 index this month appeared first on The Motley Fool Australia.

In morning trade, the ASX 200 real estate share is up 8% to $1.17.

This follows the release of Abacus Property Group's FY 2023 results.

ASX 200 real estate share jumps despite profit crash

• Revenue up 14.1% to $400.7 million
• Funds from operations (FFO) up 8.8% to $175 million
• FFO per security up 3% to 19.6 cents
• Earnings before interest and tax (EBIT) up 12.1% to $235.5 million
• Statutory profit down 95.1% to $25.5 million
• Distribution per security (DPS) up 2.2% to 18.4 cents

What happened in FY 2023?

For the 12 months ended 30 June, Abacus reported a 14.1% increase in revenue to $400.7 million. This was driven largely by a 17.1% increase in rental income to $348.3 million.

Things were also positive for its FFO and EBIT during the 12 months. The ASX 200 real estate share posted an 8.8% increase in FFO to $175 million and a 12.1% lift in EBIT to $235.5 million.

Management advised that this was underpinned by investments in its core Commercial and Self-Storage sectors and aided by longer-term growth strategies. The latter is inclusive of its recent development completions that have contributed to higher quality and more resilient income streams.

Things weren't quite as positive on the very bottom line, though. Abacus reported a net profit after tax of $25.5 million, which was down a whopping 95.1% from $517.2 million a year earlier. However, it is worth noting that this was driven by an unfavourable change in the fair value of investments and derivatives.

In FY 2023, Abacus reported a negative change of $105 million. Whereas in FY 2022, it recorded a positive change of $395.9 million.

Pleasingly, this didn't stop the company from increasing its DPS by 2.2% to 18.4 cents for the year.

Outlook

The ASX 200 real estate share has reconfirmed its FY 2024 guidance.

It continues to expect a distribution of 8.5 cents per Abacus share with a payout ratio assumed to be in the range of 85%-95% of FFO.

It also expects an Abacus Storage King (ASX: ASK) distribution of 6 cents per share, targeting a distribution payout ratio in the range of 90%-100% of FFO. Abacus Storage King was spun off earlier this month into a separate listing.

The company's managing director, Steven Sewell, commented:

FY23 was a transformational year for Abacus Group. We remain confident that both vehicles are positioned to leverage our key enablers and deliver recurring income and value creation over the medium to long term. In a more challenged economic environment, where higher inflation combined with restrictive monetary policy settings is impacting capitalisation rates throughout the Commercial property sector, we remain focused and disciplined on directing capital towards assets that provide potential for enhanced income growth and the creation of medium to long term value.

The post This ASX 200 real estate share is jumping 8% despite a huge profit decline appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) enjoyed yet another positive session in what has been a great start to the trading week this Monday.

After rising every single day in the shortened last week, the ASX 200 added another 0.6% this session, with the index closing at 7,294.9 points. That meant the ASX 200 has now risen by 2.7% since 8 June.

But let's check out where this latest round of gains came from.

The leading index of today's ASX trading was the S&P/ASX 200 Health Care Index (ASX: XHJ), which fronted the pack with its rise of 1.9%.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was another strong performer, lifting by 1.61%. The S&P/ASX 200 Utilities Index (ASX: XUJ) also performed admirably, rising 1.16%.

Almost every sector recorded some green this Monday, with the notable exception of mining, resources and energy shares. The S&P/ASX 200 Energy Index (ASX: XEJ) was down 0.6%, while the S&P/ASX 200 Materials Index (ASX: XMJ) tanked by 0.55%.

Now with all of that out of the way, let's take a look at the ASX 200 shares that gave investors the biggest smiles today.

Top 10 ASX 200 shares countdown

Today's top-performing ASX share was property share Abacus Property Group (ASX: ABP). Abacus rose by a pleasing 5.62% to finish up at $2.73 after rocketing as high as 7% earlier this afternoon. This gain seems to be a consequence of the company's plans to spin off its Storage King business.

These shares made today's other big moves higher:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are racing higher:

Abacus Property Group (ASX: ABP)

The Abacus share price is up 7% to $2.76. This morning, this property company announced the successful completion of the institutional component of the Abacus Storage King (ASK) 1 for 5.6 pro-rata securityholder offer. The offer was well supported by a combination of existing Abacus securityholders and new eligible institutional investors.

Centaurus Metals Limited (ASX: CTM)

The Centaurus Metals share price is up 13% to 88.5 cents. This follows news that Centaurus has acquired offtake rights over the Jaguar nickel sulphide project in Brazil from Vale. This is in exchange for an increase in Vale's net operating royalty over the project by 1.2% for nickel sulphate product and 1.25% for nickel concentrate and other products.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up over 19% to $1.63. Investors have been buying this sports betting company's shares after it announced the receipt of a competing offer for its US operations. DraftKings Inc (NASDAQ: DKNG) has offered US$195 million for the business, which is meaningfully higher than Fanatics Betting and Gaming's offer of US$150 million. Due diligence access has been granted to DraftKings.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is up over 2% to $39.48. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded this retail giant's shares to a buy rating with a $43.00 price target. Its analysts expect Woolworths to continue winning market share.

The post Why Abacus, Centaurus, Pointsbet, and Woolworths shares are racing higher appeared first on The Motley Fool Australia.

Maybe consumers can see that the rate hikes are about to cease soon. Maybe the Australian obsession with real estate defies rational logic.

Auction clearance rates had been rocketing in autumn, especially in Sydney and Melbourne, where they reached 77.2% and 74.3% respectively last weekend.

For some time the analysts at Market Matters felt like the tide had turned.

"In April, we looked at the Australian property sector, concluding that we felt that value was returning to the sector following its more than 30% correction since January 2022."

What about the mortgage cliff?

To counter the enthusiasm, there has been much conjecture in the media about the looming "mortgage cliff".

This is the phenomenon where all those homeowners and investors who signed ultra-low fixed rate loans back in 2020 would be forcibly switched back to variable in the coming months.

With the record-breaking hikes over the past 13 months, many of them will be dealing with a doubling of their monthly repayments. 

So is the current real estate revival a false dawn?

No, according to Market Matters analysts.

"This issue has been a discussion point in the press for many months… and arguably already factored into many prices," they said in a memo to clients.

"History tells us that markets move ahead of fundamental news and this is starting to look the case with property as auction rates improve."

Their opinion is that there is more upside from here than downside.

"Assuming Australian property has found or is 'looking for a low', the property sector is likely to enjoy a meaningful bounce or more."

Two stocks to ride the real estate comeback

So what are the best ASX shares to buy right now to cash in on this resurgence?

The Market Matters team already holds Goodman Group (ASX: GMG) in its growth portfolio, but is still "long and bullish" on the industrial property manager.

"We do like this $38 billion integrated quality stock which engages in the development, ownership, and management of industrial property and business space," the memo read.

In line with the revival in the broader real estate sector, the Goodman share price has soared 14% year to date.

"The stock is not cheap, trading on a 21.5x valuation for FY23, though we believe it;s warranted as management continues to deliver," read the memo.

"We liked the company's Q3 report handed down two weeks ago, which showed development earnings again edging higher."

Goodman pays out a dividend yield of 1.5%.

If you desire a larger income, the Market Matters team is in favour of picking up Abacus Property Group (ASX: ABP), which is paying out a 7.1% dividend yield.

The office and self-storage property trust dipped 5.8% over the second half of May, presenting a buying opportunity.

The potential of spinning off its Storage King business would "theoretically help the company unlock some decent intrinsic value".

"We like Abacus Property as a cheap, high yielding sleeping giant," read the memo.

"Abacus trades on 14.3x while its larger rival in the self-storage space, National Storage REIT (ASX: NSR) trades on 21.8x. Like many REITs, ABP has been trading at a heavy discount to its asset values, making the move both logical and attractive."

The post Is real estate about to rocket again? 2 ASX shares to buy for the comeback appeared first on The Motley Fool Australia.

The great thing is that if you pick the right businesses, the stock could pay you a nice income for a long, long time to come.

Let's take a look at three dividend shares that might fit the bill:

The Big Australian is called that for a reason

There is some nervousness among investors to buy into resources companies at the moment.

That's because the global economy could be heading into a slowdown. Demand (and therefore prices) for minerals generally corresponds with the economic cycle.

But if you take a long-term view, ASX dividend shares don't come much more reliable than BHP Group Ltd (ASX: BHP).

The BHP share price surpassed the $50 mark in January but has since cooled off to trade in the low $40s.

That has not only opened up a tempting buying opportunity but has pumped up the dividend yield to a mouthwatering 9%.

This week, Goldman Sachs recommended BHP as a buy, and the Market Matters analysts are seeking to purchase when it hits the right discount.

"We are looking to follow our long-term plan and increase our BHP exposure back below $40," they said in a memo to clients.

"This stance has not changed as the quality miner continues to rotate between $36 and $50."

Record-setting dividend stock

You can't talk about reliable long-term passive income without mentioning Washington H Soul Pattinson and Co Ltd (ASX: SOL).

This company is famous for increasing its dividends uninterrupted over more than two decades. That's even through the global financial crisis and the COVID-19 recession.

Soul Patts, as an investment business, also has decent capital growth prospects. Over the past five years, the share price has risen more than 73%.

All this means that investors need to look past the 2.8% dividend yield, which isn't as high as some other income stocks.

Put it this way. If you bought Soul Patts shares five years ago, you'd be raking in a 4.9% yield that's fully franked. 

Cashing in on Australia's national obsession

Abacus Property Group (ASX: ABP) is a name that investors don't hear much about, yet it's quietly posting a 7% dividend yield for its shareholders.

And with the relentless interest rate rises possibly ceasing soon, real estate assets might have passed, or are close to, the bottom.

The Market Matters team feels like Abacus shares are now in the buy zone after dropping almost 11% over the past year.

"We are bullish from current levels," it stated to its clients.

"We like Abacus Property Group at the bottom of its trading range (here) believing that the market is completely underestimating the value of their self storage operations."

The business might have a significant catalyst to come too.

"A theme that the company has flagged recently as they float the concept of splitting these out into a separate entity."

Admittedly, Abacus is more of a speculative pick than the first two, as its fortunes are at the whim of the real estate market.

The post 3 amazing ASX dividend shares that should pay you passive income forever appeared first on The Motley Fool Australia.

It's easier said than done, right? The strategy is not even practical to execute, because no one knows whether a particular stock has topped or bottomed until well after the event.

The best any investor can hope for is to buy shares of quality businesses at a (temporarily) discounted price.

That's even more important for ASX dividend shares, in order to maximise yield and capital protection. 

Here's a couple of contenders that currently tick those boxes:

'We remain comfortable holders'

Supermarket wholesaler and retailer Metcash Limited (ASX: MTS) has seen its share price plunge more than 15% over the past 12 months.

Just recently the stock has dived 8.1% in the space of just 18 days.

Shaw and Partners portfolio manager James Gerrish blamed this on shifting consumer tastes after 11 interest rate rises.

"Metcash Ltd… has been sold off on signs that consumers are becoming more 'price conscious' and prioritising value over convenience," he said in a Market Matters Q&A.

The current fortunes contrast dramatically with consumer habits over the COVID-19 years when Metcash's local IGA supermarkets attracted many new customers who didn't want to travel to big shopping centres.

The market has now turned against it.

"Research [is] suggesting that Metcash is losing some of the market share gains they captured during COVID, with Aldi being the net beneficiary."

However, Gerrish's team is backing the stock for its long-term ability to grow and pay out an income.

"On 12x [PE ratio] and a yield above 6%, with a looming dividend in July, we remain comfortable holders in our income portfolio," he said.

"If we didn't own, we would buy it here."

'Market is completely underestimating the value'

Office and self-storage real estate trust Abacus Property Group (ASX: ABP) has lost 11.6% off its share price over the past year.

That's not a massive surprise, considering how most real estate assets have struggled in the face of steep interest rate rises.

But Gerrish reckons enough damage has already been done.

"We like Abacus Property Group at the bottom of its trading range (here) believing that the market is completely underestimating the value of their self storage operations."

Abacus shares are currently paying out a chunky 7% dividend yield.

The near future might also see a considerable catalyst for the stock.

"A theme that the company has flagged recently as they float the concept of splitting [the self-storage assets] out into a separate entity," said Gerrish.

"We are bullish from current levels."

The post 'We would buy it': 2 quality ASX dividend shares that are now going for a discount appeared first on The Motley Fool Australia.

It came amid the release of the Australian Bureau of Statistics' latest employment data, finding unemployment rose to 3.7% in January. That's likely good news for those wishing inflation to ease.  

Leading the market higher today was the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ). The sector leapt 2.7% today.

It was also a good day for S&P/ASX 200 Information Technology Index (ASX: XIJ) stocks – the tech sector rose 2.7%.

However, fans of ASX 200 energy shares were likely left disappointed. The S&P/ASX 200 Energy Index (ASX: XEJ) slumped 0.7% as coal shares weighed amid earnings from Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC).

The coal producers also responded to the NSW Government's price cap and coal reservation policy today.

So, with all that in mind, let's take a look at the 10 shares that outperformed all others on Thursday.

Top 10 ASX 200 shares countdown

Today's biggest gain on the ASX 200 came from Orora Ltd (ASX: ORA) shares. They surged 15% to close at $3.33 on the back of the company's first-half earnings.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Right now, the ASX 200 is up 0.92% at 7,419.5 points.

Let's take a look at what's boosting these two ASX 200 shares sky-high.

2 ASX 200 shares roaring more than 9% on earnings

The Orora Ltd (ASX: ORA) share price is rocketing 14.7% right now to trade at $3.325 after the company announced a 13.9% jump in revenue.

The sustainable packaging producer posted $2.26 billion of sales revenue and a $108 million statutory net profit after tax (NPAT) – a 7.8% improvement on that of the prior comparable period.

That was despite the business facing inflationary pressures and supply chain issues.

It also declared an 8.5 cents per share interim dividend – a 6.3% lift increase on that of the prior year.

And that's not all.

Orora expects its North America business to continue growing in the second half, while its Australasia leg's full-year earnings are tipped to be broadly in line with those of financial year 2022.

The Abacus Property Group (ASX: ABP) share price is joining its ASX 200 peer in posting a whopping gain right now. It's share price is up 9.1%, trading at $3.11.

The property group revealed an $84.5 million statutory profit this morning – marking a 73% year-on-year fall.

However, its funds from operations lifted 0.4% to $81.4 million. Meanwhile, its interim dividend was boosted 2.9% to 9 cents per share.

Excitingly, the company also flagged a potential spin-off of its Storage King brand.

The proposed Abacus Storage King REIT would hold 127 assets with more than 568,000 square metres of lettable area and 19 developments.

Commenting on the proposed change, managing director Steven Sewell said:

Abacus has deployed over $1.2 billion into self storage assets over the last five years and has determined that the portfolio has reached a scale where it makes most sense to be separately listed with its own capital structure.

The post 2 ASX 200 shares soaring over 9% on strong results appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to push higher on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.65% higer this morning. In late trade on Wall Street, the Dow Jones is up 1%, the S&P 500 is up 1%, and the Nasdaq is up 0.8%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$81.04 a barrel and the Brent crude oil price has risen 1.2% to US$88.46 a barrel. News that Saudi Arabia is sticking to its output cuts boosted prices.

Annual general meetings

Another group of ASX 200 shares are scheduled to hold their annual general meetings today and could provide the market with trading updates. Among the companies holding events are property company Abacus Property Group (ASX: ABP), wealth management platform provider Netwealth Group Ltd (ASX: NWL), and logistics solutions company WiseTech Global Ltd (ASX: WTC).

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down a fraction to US$1,738.4 an ounce. Gold is on course to decline for five sessions in a row.

TechnologyOne shares downgraded

Although TechnologyOne Ltd (ASX: TNE) delivered a strong full year result on Tuesday, analysts at Morgans have downgraded the enterprise software provider's shares to a hold rating with an improved price target of $13.50. It commented: "We view this as another high quality result […] following an 18% share price run in the last 6 months we move to a Hold recommendation."

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