What did Growthpoint Properties Australia report?

• FFO for 1H26 was $91.9 million, or 12.2 cents per security
• Statutory net profit reached $62.6 million, up from a $98.7 million loss in 1H25
• Distribution per security of 9.2 cps, payout ratio of 75.5%
• Net tangible assets per security of $3.10, stable since June 2025
• Gearing increased to 41.2%, within the target range of 35–45%
• Record office leasing on track; office occupancy improved from 92% to 94%, industrial occupancy remained high at 98%

What else do investors need to know?

Growthpoint completed significant leasing activity, with 30,068 square metres leased in its office portfolio and 62,566 sqm in its industrial portfolio. This strong leasing performance has reduced future leasing risks and improved rental stability.

The company expanded its funds management platform, adding $124.9 million of new assets under management. It also successfully divested $140 million of assets for liquidity and delivered on key environmental targets, achieving net zero emissions across direct office assets as of July 2025.

What's next for Growthpoint Properties Australia?

Looking forward, Growthpoint has reaffirmed its FFO guidance for FY26 at 23.0–23.6 cents per security and expects to maintain distributions at 18.4 cps. Management is focused on further reducing leasing risk, pursuing record office leasing, and growing its funds management platform.

The company sees demand for office, industrial, and retail space being supported by strong migration and a tight labour market, alongside low supply and stabilised valuations. Growthpoint also continues to prioritise sustainability and tenant wellbeing across its portfolio.

Growthpoint Properties Australia share price snapshot

Over the past 12 months, Growthpoint Properties Australia shares have declined 10%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Growthpoint Properties Australia lifts guidance appeared first on The Motley Fool Australia.

What did Growthpoint Properties Australia report?

• Interim distribution of 9.2 cents per stapled security, unfranked
• Record date set for 31 December 2025
• Ex-dividend date is 30 December 2025
• Payment date scheduled for 27 February 2026
• Distribution relates to the half-year period ending 31 December 2025
• Dividend Reinvestment Plan (DRP) is in place for this distribution

What else do investors need to know?

This dividend will be paid entirely unfranked, meaning shareholders will not receive franking credits with this payment. The company has confirmed there is no conduit foreign income attached to this distribution.

Details on the tax components of the distribution will be provided on or around the payment date at Growthpoint's website, helping investors with their tax obligations. Shareholders can also choose to participate in the Dividend Reinvestment Plan if they wish to increase their holdings automatically.

What's next for Growthpoint Properties Australia?

Growthpoint Properties Australia continues to offer regular distributions to its investors, supported by its property portfolio. The company's ongoing focus is on stable income generation and providing flexibility for investors through its DRP.

Looking ahead, investors will be watching for the full-year results and updates on the property market, which could impact future distributions and portfolio performance.

Growthpoint Properties Australia share price snapshot

Over the past 12 months, Growthpoint Properties Australia shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which as risen 3% over the same period.

View Original Announcement

The post Growthpoint Properties Australia declares 9.2c interim distribution appeared first on The Motley Fool Australia.

That muted reaction says a lot about sentiment toward anything with office real estate exposure. Yet beneath the surface, Growthpoint is showing good momentum which might interest investors chasing dividend income.

Management reported increased occupancy during Q1 and reaffirmed guidance of a 18.4 cent FY26 distribution.

That distribution equates to a dividend income yield of roughly 7% at the current share price, backed by high occupancy and resilient cash flow.

High occupancy and quiet execution

The first-quarter FY26 update showed that Growthpoint continues to execute well. Portfolio occupancy sits at 94% with a weighted average lease expiry (WALE) of 5.6 years, underpinned by 99% industrial property occupancy and 93% office property occupancy.

On the industrial side, the story is one of stickiness and scale. 95% of leasing activity came from existing tenants with some tenants expanding into new geographies, and only 3.5% of leases are due to expire in FY 26. That's an enviable position to be in for any landlord.

Even the office portfolio (the segment many investors are worried about) showed meaningful momentum. Growthpoint leased more office space in the first few months of FY26 than it managed in all of FY25, pushing occupancy higher while maintaining a solid 5.5-year WALE.

It's quiet, steady execution in a market that rewards noise and headlines.

Foolish bottom line

It has been a tough 3 years for Growthpoint shares with the share price down 41% from their 2022 peak. Still, there are some green shoots with the share price up 7% in 2025, but yesterday's flat performance after a solid update shows that investors are still taking a wait and see approach.

Still with reaffirmed funds from operations (FFO) guidance of 22.8–23.6 cents per security, a 7% dividend income yield and minimal lease expiries ahead, the income stream looks well covered.

The post Growthpoint offers a 7% yield and the market's barely noticing appeared first on The Motley Fool Australia.

What did Growthpoint Properties Australia report?

• Direct portfolio weighted average lease expiry (WALE) of 5.6 years, with overall occupancy at 94%
• 16,094 sqm of office leasing completed, lifting office occupancy to 93% and maintaining a WALE of 5.5 years
• 34,345 sqm of industrial leasing completed, maintaining industrial occupancy at 98% and WALE at 5.8 years
• Growthpoint Australia Logistics Partnership expanded with the contract to acquire a $24 million Bundamba industrial asset
• GRESB sustainability score maintained at 85
• FY26 funds from operations (FFO) guidance maintained at 22.8–23.6 cents per security (cps) and distribution at 18.4 cps

What else do investors need to know?

Growthpoint reported that by 31 October 2025, further leasing activity had taken pro-forma occupancy to 94% in office and 99% in industrial properties. The scale of new office leasing already surpassed the full year result achieved in FY25, reflecting continued tenant demand.

The group's industrial leasing success means only about 3.5% of industrial leases are set to expire over the rest of FY26. Nearly all completed or agreed industrial leases have come from existing tenants, many of whom are expanding into new locations.

Recent activity also included expanding Growthpoint's funds platform through the pending Bundamba acquisition, due to settle by the end of December 2025.

What did Growthpoint Properties Australia management say?

Ross Lees, CEO and Managing Director, said:

It has been a strong start to the year, and we are pleased to have already completed significant leasing across the portfolio. This reflects solid demand and our customer focus.

Our strategy of growing with like-minded partners is delivering results, as 95% of industrial leasing completed or agreed has been to existing portfolio tenants, including those expanding into new geographies.

What's next for Growthpoint Properties Australia?

Growthpoint reaffirmed its FY26 FFO and distribution guidance, assuming no major acquisitions or disposals, and no significant market disruptions. The company's focus remains on disciplined execution of its leasing, funds management and sustainability strategies.

With Net Zero already achieved across its directly owned office assets, Growthpoint aims to continue building on its partnership model and maintaining high occupancy levels across both office and industrial portfolios.

Growthpoint Properties Australia share price snapshot

The Growthpoint Properties Australia share price has declined 2% over the past 12 months, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Growthpoint Properties Australia delivers strong Q1 FY26 leasing and outlook appeared first on The Motley Fool Australia.

It can often be a particularly volatile time for ASX share prices, depending on whether companies impress or disappoint investors with their results and dividend payouts.

Lets see what this broker had to say about these 3 stocks. 

ASX Ltd (ASX: ASX)

For new investors that could be confused by the name, the ASX is the corporation that owns and operates the stock exchange.

It is a public company that operates the largest securities exchange in Australia. It has an effective monopoly in listing, trading, clearing, and settlement of Australian cash equities, debt securities, investment funds, and derivatives.

The company released its FY 25 results late last week. It reported a 7% increase in operating revenue to $1.11 billion and underlying net profit after tax (NPAT) up 7.5%.

Broker Macquarie however remains neutral on ASX shares. 

Macquarie has a 12 month price target of $64.50. This indicates limited upside – approximately 3% – from its current price of $62.64. 

The broker cut its earnings forecasts because ASX Limited will have to spend an extra $10 million every year, starting FY26 and continuing indefinitely to deal with new compliance requirements from ASIC's recently announced inquiry.

Growthpoint Properties Australia (ASX: GOZ)

Growthpoint Properties Australia (ASX: GOZ) is an Australian real estate investment trust (REIT). It has a portfolio of office and industrial properties. 

It has risen roughly 10% over the past 12 months, however broker Macquarie sees limited upside over the next year. 

The broker has a neutral rating following its full year earnings results released late last week. 

Macquarie has placed a 12 month price target of $2.38. This indicates an approximate 6% drop from its current share price of $2.53. 

Macquarie sees Growthpoint Properties FY25 Funds From Operations per security slightly down but ahead of expectations. 

The broker sees FY26 guidance broadly in line with consensus, DPS slightly below forecasts. It highlighted office leasing – amid 8% vacancy and 30% upcoming expiries – as the key near-term risk to earnings.

Ventia Services Group Ltd (ASX: VNT)

Broker Macquarie placed an outperform rating on ASX 200 Ventia Service Group shares. 

It is an infrastructure maintenance services provider in Australia and New Zealand. Its capabilities include operations and maintenance, facilities management, minor capital works, environmental services, and other solutions.

Its share price has risen by more than 25% over the last 12 months, including a 4% rise last Friday following earnings results. 

Macquarie has placed a 12 month price target of $5.55, which indicates an upside of less than 1%. 

Based on Macquarie's analysis, the broker sees strong potential for the company. However its current share price may already reflect this. 

The broker maintains an outperform rating on Ventia, highlighting a stronger-than-expected margin outlook driven by favourable mix and efficiency gains, with 2H margin uplift and Telco-led revenue growth expected to support FY25–26 earnings. 

VNT is pivoting to a stronger margin outlook with EBITDA margins of 8.3%, 20bp better than our fct and +30bp on pcp. Defence & Social Infra (DS&I) and Infra Services the standouts. Margins should lift further in 2H (we fct 8.7%) driven by favourable Telco/IS margin mix (higher-margin segments) and an ongoing efficiency focus. In the medium term, there's opportunity for procurement savings to better leverage VNT's large scale of spend.

The post Macquarie's verdict on 3 ASX 200 companies after FY25 results appeared first on The Motley Fool Australia.

What did Growthpoint Properties Australia report?

• Funds from operations (FFO) of $176.0 million, translating to 23.3 cents per security (cps)
• Statutory net loss of $124.6 million, mainly due to property devaluations
• Ordinary distribution of 18.2 cps plus a one-off 2.1 cps distribution; payout ratio of 78.0% (excluding one-off)
• Net tangible assets (NTA) per security of $3.09
• Gearing trimmed to 39.7%, down from 40.2% last year
• Occupancy of 94% and a 5.6 year weighted average lease expiry

What else happened in FY25?

Growthpoint made significant progress in funds management, launching the Growthpoint Australia Logistics Partnership and the Growthpoint Canberra Office Trust. This expanded its funds platform and brought in fresh capital from new and existing investors.

Leasing activity remained strong across both office and industrial portfolios. The company managed to maintain high average occupancy and executed several lease extensions, including a 10-year renewal with Woolworths on its Perth regional distribution centre.

Growthpoint also continued its sustainability journey, proudly achieving its Net Zero Target on 1 July 2025. The company increased its GRESB sustainability score, installed new solar capacity, and met all targets for its sustainability-linked loans.

What did Growthpoint Properties Australia management say?

Commenting on the result, Ross Lees, CEO and Managing Director, said:

This financial year, we created momentum in our funds management business, launching the first two funds under our Growthpoint banner, generating $328 million of new assets under management. We also delivered on earnings and distributions guidance. We launched our refreshed corporate strategy and delivered measurable progress across all strategic pillars. Throughout this period, we maintained the strong performance of our directly owned assets to deliver income-driven returns, with 94% occupancy and a 5.6 year weighted average lease expiry. Importantly, we achieved our 1 July 2025 Net Zero Target.

What's next for Growthpoint Properties Australia?

Looking ahead to FY26, Growthpoint is targeting FFO of 22.8–23.6 cps and an ordinary distribution of 18.4 cps. Management is focused on continuous improvement in sustainability, specifically on NABERS ratings and climate reporting.

Growthpoint aims to keep driving growth in funds management across office, industrial, and retail sectors, while maintaining high occupancy in its direct assets. The company plans to pursue further leasing activity, manage near-term fund maturities, and continue its capital recycling program.

Growthpoint Properties Australia share price snapshot

Over the past year, the Growthpoint Properties Australia share price has broadly tracked S&P/ASX 200 Index (ASX: XJO), rising 12% compared to 13% for the ASX 200 Index.

View Original Announcement

The post Growthpoint Properties Australia posts FY25 results and FY26 outlook appeared first on The Motley Fool Australia.

Growthpoint says that it invests in high-quality Australian real estate. It directly owns a portfolio of office and industrial properties, while managing a portfolio of office, industrial, logistics and retail assets for third-party wholesale syndicates and institutional investors through its funds management business.

As the chart below shows, the Growthpoint Properties Australia share price is down 46% since April 2022.

At the current valuation, I think this is an excellent time to invest in the business for a few different reasons.

Large dividend yield

Management has guided for FY25 distribution of 20.3 cents per security. This comprises a forecast 18.2 cents per security and a 2.1 cents per security one-off distribution.

Using just the 18.2 cents payout, the business has a FY25 distribution yield of 7.6%, which I'd call a strong yield.

I think there's a good chance the ASX dividend stock can grow its distributions in the coming years thanks to a mixture of RBA cuts and potential operating earnings growth.

RBA rate cuts

The Reserve Bank of Australia (RBA) has already cut the cash rate twice in Australia this year and I'm expecting more rate cuts in the coming months. The recent increase in the unemployment rate from 4.1% to 4.3% makes a rate cut in August more likely, in my view.

Rate cuts could reduce interest costs for the ASX dividend stock, which could help the rental profits and overall profitability.

But, the interest rate cuts could also improve the valuations of the properties, which I think would be very supportive for the Growthpoint Properties Australia share price.

Solid operating performance

In the FY25 half-year result, the business reported its direct portfolio had an occupancy rate of 94%, with a weighted average lease expiry (WALE) of six years. This reflects solid rental metrics for the business, which should allow it to generate a good level of rental income from its portfolio for a number of years.

When the ASX dividend stock announced its HY25 result, the Growthpoint CEO and managing director Ross Lees said:

Through our strategy of focusing on portfolio performance, growth with like-minded partners, efficient allocation of capital and sustainable future proofing, our exceptional people will continue to focus on our tenant advantage. We will seek to enhance our capital position, source and execute fund and capital partnerships, and build scale in our existing asset classes.

Australia's population is expected to grow by over 4 million people by 2034 , and we expect this to be a key driver of demand across our owned and managed portfolios, from office, to industrial and to retail. On 18 February 2025, the RBA announced a 25 basis point rate cut, the first change since November 2023. We expect that this will increase confidence across real estate and improve capital flows to the sector. In turn, we believe this will provide investment and capital recycling opportunities against a backdrop of constrained supply.

That's very promising commentary, in my view.

Big asset discount

The business is trading at a pleasing price compared to what its underlying value is reported to be.

For its FY25 half-year result, it included some independent property valuations, which I think gives more legitimacy to what the business is suggesting its properties are worth.

At 31 December 2024, the ASX dividend stock reported it had net tangible assets (NTA) of $3.21. That means the business is currently valued at a discount of more 25%, which is a large and attractive discount.

With RBA cuts expected, I think this business is an attractive opportunity for both income and potential capital gains.

The post 1 ASX dividend stock down 46% I'd buy right now appeared first on The Motley Fool Australia.

That's because they have just revealed the ASX REITs that they think investors should be buying right now. Let's see what the broker is recommending to clients:

Which ASX REITs are being tipped as buys?

There are no less than 14 ASX REITs that Macquarie thinks are in the buy zone this month.

The first is Arena REIT No 1 (ASX: ARF), which it has an outperform rating and $3.96 price target on. However, with its shares trading at $3.77, the upside is somewhat limited from here.

It is a similar story for Centuria Capital Group (ASX: CNI). The broker has an outperform rating and $1.78 price target on its shares.

More upside is expected from Centuria Industrial REIT (ASX: CIP) shares. Macquarie has an outperform rating and $3.34 price target on this ASX REIT.

Fellow industrial property company Dexus Industria REIT (ASX: DXI) is also in favour with the broker. It has an outperform rating and $3.18 price target on its shares.

Data centres and more

For big returns, investors might want to check out data centre focused property company DigiCo Infrastructure REIT (ASX: DGT). Macquarie has an outperform rating and $5.33 price target on its shares, which implies potential upside of 56% for investors from current levels.

Fellow data centre (and industrial property) developer Goodman Group (ASX: GMG) is rated as outperform with a $36.06 price target.

Another REIT with potential to rise strongly is Dexus (ASX: DXS). The broker has an outperform rating and $8.08 price target. This suggests that upside of 15% is possible from current levels.

Limited upside is expected for Growthpoint Properties Australia Ltd (ASX: GOZ), with Macquarie holding an outperform rating and $2.57 price target on its shares.

The broker has outperform ratings on GPT Group (ASX: GPT) and Healthco Healthcare and Wellness REIT (ASX: HCW) shares with price targets of $5.38 and $1.05, respectively.

Elsewhere, Lendlease Group (ASX: LLC) could be another ASX REIT with major upside. Macquarie has an outperform rating and $7.79 price target on its shares. This implies potential upside of 36% over the next 12 months.

The final three are Mirvac Group (ASX: MGR), National Storage REIT (ASX: NSR) and Qualitas Ltd (ASX: QAL). Macquarie has outperform ratings on them with price targets of $2.56, $2.42, and $3.10, respectively.

Based on the above, the three to buy are arguably DigiCo Infrastructure REIT, Lendlease, and Goodman Group.

The post Thinking of buying an ASX REIT? Check out Macquarie's top picks appeared first on The Motley Fool Australia.

Here are three property stocks that are outperforming their peers today.

3 ASX real estate shares outperforming today

Servcorp Ltd (ASX: SRV) shares hit a 52-week high

The property sector's leader today is office-space solutions company Servcorp Ltd (ASX: SRV).

Servcorp shares are up by 11% to $4.84 apiece at the time of writing. The real estate stock lifted to a new 52-week high of $4.85 in earlier trading.

This followed the company releasing its FY24 results. Servcorp reported an underlying net profit before non-cash impairments and tax (NPBIT) of $56.6 million, up 18% from the prior corresponding period (pcp). The company also advised it had $72.5 million in underlying free cash, also up 18% from FY23.

The ASX real estate share will pay a final dividend of 13 cents per share with 20% franking on 2 October. This brings its full-year dividend to 25 cents per share, up 14% on FY23.

Servcorp said the FY25 dividend would be no less than 26 cents per share. Based on today's Servcorp share price of $4.84, this would equate to a dividend yield of 5.37%.

The ASX real estate share has risen 45.95% in the year to date.

Growthpoint Properties Australia Ltd (ASX: GOZ) lifts on FY24 results

Growthpoint is an Australian real estate investment trust (REIT) with a portfolio of office and industrial properties.

The ASX real estate share is up 5.2% on Thursday to $2.39 after the REIT released its full-year FY24 results.

Growthpoint reported funds from operations (FFO) of $180.4 million, equating to 23.9 cents per share, which is above the REIT's upgraded guidance. It recorded a statutory net loss of $298.2 million in FY24 compared to a loss of $245.6 million in FY23. This was largely due to lower property revaluations.

The ASX real estate share will pay a distribution of 19.3 cents per share, in line with guidance and representing a payout ratio of 80.7%. This is within the target payout ratio range of 75% to 85% of FFO.

The ASX 300 real estate stock has lifted 2.58% in the year to date.

Stockland Corporation Ltd (ASX: SGP) share price higher despite profit fall

Stockland is a diversified property group and one of Australia's largest residential land and housing developers.

The Stockland share price is firing on Thursday, up 4.24% to $4.80 per share. Investors appear impressed with the property giant's full-year FY24 results.

The company reported a statutory profit of $305 million for FY24, down from $440 million in FY23. This partly reflected $310 million of net asset devaluations vs. $250 million net devaluations in FY23.

Stockland reported a pre-tax FFO of $843 million, down 4.5% on FY23. Pre-tax FFO per security was 35.4 cents. This was at the top end of Stockland's guidance range of 34.5 to 35.5 cents.

The ASX 200 real estate stock will pay a distribution of 16.6 cents on 30 August. This brings the ASX real estate share's full-year distribution to 24.6 cents per security compared to 26.2 cents per share in FY23.

The Stockland share price has risen by 8.2% in the year to date.

The post 3 ASX real estate shares rising strongly on FY24 results (one by 11%) 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.

It's true that market volatility may not impact savings accounts and term deposits to the same degree as ASX shares. But, considering the S&P/ASX 200 Index (ASX: XJO)'s ability to deliver a net average annual return of 11.23% (over 10 years, including dividends), how much profit are you prepared to sacrifice for a smooth sail?

The Aussie share market is home to many high-quality, well-established companies with proven track records for delivering growth. And while past performance is no guarantee of future outcomes, creating a diversified portfolio of ASX blue-chip stocks can go a long way to reducing your risk exposure.

On that note, we asked our Foolish writers which ASX shares they think offer the best alternative investment to a term deposit right now.

Here is what they told us:

6 ASX stock tips for faint-hearted investors in March 2024

• Rural Funds Group (ASX: RFF), $810.01 billion
• Growthpoint Properties Australia Ltd (ASX: GOZ), $1.85 billion
• New Hope Corporation Ltd (ASX: NHC), $3.72 billion
• Metcash Ltd (ASX: MTS), $4.24 billion
• Woolworths Group Ltd (ASX: WOW), $39.48 billion
• Telstra Group Ltd (ASX: TLS), $43.44 billion

(Market capitalisations as of market close 22 March 2024).

Why our Foolish writers think you should buy these ASX shares instead of investing cash in the bank

Rural Funds Group

What it does: Rural Funds is a real estate investment trust (REIT) that owns different types of farms, including cattle, almonds, macadamias, and vineyards. 

By Tristan Harrison: The farms owned by Rural Funds Group are spread across different states and climactic conditions, creating diversification for its portfolio. Furthermore, most of the REIT's tenants are large entities, with some being listed on the ASX or on international bourses. 

Rural Funds is currently paying an annualised distribution of 11.73 cents per unit, which translates into a distribution yield of 5.61% on current pricing.

Attractively, rental income continues to grow through rent increases built into the company's contracts. Rural Funds also invests in its farms to improve productivity, which in turn increases rental (and capital) value. 

For all these reasons and more, I think the ASX 300 stock offers far better long-term investment prospects than a term deposit.

Motley Fool contributor Tristan Harrison owns shares of Rural Funds Group.

Growthpoint Properties Australia Ltd

What it does: Growthpoint Properties is a real estate investment trust (REIT) that invests in industrial and office assets. 

By Tony Yoo: With a stunning dividend yield of 8.27%, this stock flogs any term deposit for income returned each year.

Admittedly the share price has dropped 17.45% over the past 12 months, but with interest rate relief possibly not too far away, optimism abounds about the property sector.

Indeed, broking platform CMC Invest shows five out of seven analysts rating Growthpoint Properties as a strong buy right now.

Last month's business update showed the net tangible assets standing at $3.75 per share, which means the current stock price is trading at about a 34% discount.

Motley Fool contributor Tony Yoo does not own shares of Growthpoint Properties Australia Ltd.

New Hope Corporation Ltd

What it does: New Hope is a leading Australian coal miner. The company currently operates two open-cut coal mines: New Acland in Queensland and Bengalla in New South Wales.

By Bernd Struben: With coal prices coming down from their record highs, so too have New Hope's dividend payments. But with shares in the ASX 200 miner also down 14.73% in 2024, I believe the stock represents good value. And it still offers term-deposit-busting yields.

New Hope's reduced interim dividend came out at 17 cents per share. Atop the 30 cents per share final dividend, the stock currently trades on a fully franked trailing yield of 15.91%.

The miner remains well funded, with available cash of $480 million as at 31 January.

And I believe coal prices will surprise to the upside in the half-year ahead. That's based on my expectations of a soft landing for the global economy and a stronger-than-expected rebound from China's industrial sector.

Motley Fool contributor Bernd Struben does not own shares of New Hope Corporation Ltd.

Metcash Ltd

What it does: Metcash is the little-talked-about rival to the big dogs within the food, liquor, and hardware retailing space. Except, at 5,412 storefronts strong, Metcash is no small fry. You'll know the company through brands such as IGA, Bottle-O, Cellarbrations, Mitre 10, Home Timber & Hardware, and Total Tools.

By Mitchell Lawler: If I stashed my cash in something other than inflation-crippled savings, my go-to would be a company operating in a stable, needs-based industry – and hey, bingo! Food, beverages, and building goods are about as primitive and needs-driven as it gets. 

I'd opt for Metcash over Woolworths or Coles Group Ltd (ASX: COL) as calls to break up the bigger players grow louder. A bill proposing stronger government powers to take a scalpel to corporations through divestiture powers will hit the Senate floor soon. 

A smaller opponent like Metcash could benefit from such a move. Plus, Metcash's 5.67% dividend yield puts a term deposit rate to shame. 

Motley Fool contributor Mitchell Lawler does not own shares of Metcash Ltd.

Woolworths Group Ltd

What it does: Woolworths is the retail giant responsible for 1,400 stores across its Woolworths Supermarkets (Australia), Countdown Supermarkets (New Zealand), and BIG W brands.

By James Mickleboro: With the supermarket giant's shares dropping to a 52-week low last week, I think now is a great time for investors to invest. Particularly given that concerns over inquiries into price gouging and anti-competitive behaviour claims have driven this weakness.

Goldman Sachs believes the selling has been an overreaction, noting that similar inquiries over a decade ago had no real impacts on the retailer's earnings. In light of this, the broker continues to forecast solid earnings and dividend growth out to at least FY 2026.

With respect to the latter, Goldman expects fully franked dividends per share of $1.09 in FY 2024, $1.17 in FY 2025, and $1.27 in FY 2026. And with Goldman having a conviction buy rating and a $40.40 price target on Woolworths shares, some big gains could be on the cards for investors.

Motley Fool contributor James Mickleboro does not own shares of Woolworths Group Ltd.

Telstra Group Ltd

What it does: Telstra is the market-leading telco in Australia. It has the largest share of the mobile network, as well as fixed-line internet services.

By Sebastian Bowen: I think Telstra is one of the most attractive income investments out of the entire ASX 20 right now. For one, this company has a highly defensive earnings base, with customers unlikely to stop paying for Telstra services, regardless of the economic weather. 

After a few years of dividend stagnation, Telstra has been raising its payouts over the past two years. However, the telco's share price has been subdued over the past few months. This has resulted in a fully franked dividend yield of more than 4.52% at recent pricing.

I'd rather have that over a term deposit any day.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Group Ltd.

The post Top ASX shares to buy instead of a term deposit in March 2024 appeared first on The Motley Fool Australia.

That's no accident. 

Australia's rules that allow investors to reduce their income tax liability if the company has already paid corporate tax on dividends encourages this situation.

So which are some of the bargains offering more than 8% yield at the moment?

Here are two that have caught my eye:

40% discount to what the assets are worth

Growthpoint Properties Australia Ltd (ASX: GOZ), which is a real estate investment trust (REIT) that owns industrial and office properties, reported its latest results on Thursday.

High interest rates and the uncertainty in workers returning to the office are admittedly keeping the stock down, having lost 28.4% over the past year.

But that gives it plenty of cyclical upside. The stock is now trading at an almost 40% discount to its net tangible assets.

So buying Growthpoint shares now means you're effectively becoming a landlord for far cheaper than if you bought those properties directly.

The depressed valuation also provides those willing to dive in now with a sensational dividend yield.

After Thursday's announcement of a 9.65 cent distribution per share, the total payout for the last 12 months becomes 20.35 cents.

That equates to a yield of 8.85%.

A cheap stock paying 11% yield

A riskier proposition, but potentially more rewarding, is Woodside Energy Group Ltd (ASX: WDS).

After a 12.2% drop in the share price over the past year, Woodside's dividend yield now stands at a monstrous 11.1%.

Of course, the caveat here is that the fortunes for an ASX energy stock like Woodside is highly dependent on global oil prices.

If that plunges over the next year then the company may reduce the dividend.

Conversely, if the global crude prices rise then both the Woodside stock price and distribution payments could rocket.

A survey of professional investors on CMC Invest suggests many are comfortable with buying Woodside shares right now.

Eight out of 15 analysts rate the energy stock as a buy, while only three recommend selling.

The post 2 cheap ASX stocks that offer more than 8% dividend yields appeared first on The Motley Fool Australia.

Now could be the right time to look at ASX shares beaten down because of the current economic backdrop.

Real estate investment trusts (REITs) face a difficult situation in periods of higher interest rates as they put pressure on building valuations and also mean higher interest costs, hurting net rental profit.

Growthpoint Properties Australia Ltd (ASX: GOZ) has a portfolio of "high-quality" industrial and office properties across Australia. The company says it invests in existing properties to ensure they meet tenants' needs now and into the future. Let's take a closer look.

Large dividend yield expected

As of November 2023, Growthpoint had an occupancy rate of 94% and a weighted average lease expiry (WALE) of 5.8 years — "underpinning income to security holders".

The Commsec forecast suggests it could pay a distribution per security of 20.5 cents in FY26. This would be a distribution yield of close to 9%.

I'll also mention that the forecast for FY24 is 19.3 cents per security, a distribution yield of 8.2%.

How much are Growthpoint shares actually worth? It's hard to truly value a property until it goes through a sale process.

The ASX dividend share advised in December 2023 that external valuations had been conducted for around 62% of the group's portfolio. They indicated a decrease of approximately $137.8 million, or 4.7%, on a like-for-like basis compared to 30 June 2023's book values.  

The specific decrease in external valuations of these properties is expected to reduce the net tangible assets (NTA) by 19 cents. But there are other factors that could impact the final NTA. They include internal valuations for the other properties, the value of derivatives, other Growthpoint investments and changes to net debt at the balance date.

At June 2023, the business had an NTA of $4, down 12.3% compared to June 2022.

With the Growthpoint share price at $2.35, it appears to be trading at a large discount.

What's the outlook for these property sectors?

I don't have a crystal ball, nor does management. However, the ASX dividend share does have a high occupancy rate and a compelling WALE.

Growthpoint managing director Timothy Collyer explains:

The group's movement in preliminary draft external valuations reflects the increased cost of capital and higher return expectations from investors. In the industrial market, supply constraints continue to drive strong rental growth, which has largely offset yield expansion.

Office markets are experiencing higher-than-average vacancies, although physical occupancy continues to increase across all markets and is anticipated to improve in 2024 as more businesses implement return-to-office policies.

Despite the lower preliminary draft external valuation of the group's properties, Growthpoint's high-quality portfolio with secure tenants on long leases continues to perform well in terms of occupancy (94%) and WALE (5.8 years).

While the NTA may have more to fall, the Growthpoint share price could be undervalued, making the dividend yield too compelling to miss.

The post This ASX dividend share is forecast to pay a 9% yield in 2026 appeared first on The Motley Fool Australia.

Many of you reading this will, because comparison site Finder last year found the average Australian has double that amount saved in their bank account.

ASX shares can turn that into a nice passive income that could pay you thousands of dollars each month in return for no labour.

Curious? Read on.

Growth vs dividend

Hypothetically let's construct that $20,000 into a well diversified stock portfolio.

The first step is to do your best to not take any money out of the investment and let it grow. If anything, you should be adding to the nest egg as much as you can.

Does this growth phase call for ASX growth shares, or can it be implemented with a bunch of dividend stocks?

Honestly, it doesn't matter.

As long as you have done the research to satisfy yourself that the stocks will return a satisfactory compound annual growth rate (CAGR) over the long term, go for whatever you want.

Because both capital growth and dividend income contribute towards yearly growth if the latter is immediately reinvested.

How much could I gain each year?

So what kind of performance is realistic in the long run?

Let's check out some examples.

Johns Lyng Group Ltd (ASX: JLG) and Cettire Ltd (ASX: CTT) are two growth stocks that have done pretty well in recent years, and experts reckon have a bright future.

The past has nothing to do with what might happen in the future, but let's analyse their track record for the purposes of working out realistic return expectations.

Over the past five years, Johns Lyng shares have returned an amazing 524%. In just a tick over three years on the ASX, Cettire has gained 521%.

Even if we conservatively assume Cettire has been around for five years, it equates to a CAGR of about 44%.

Over in dividend land, Woodside Energy Group Ltd (ASX: WDS) and Growthpoint Properties Australia Ltd (ASX: GOZ) are pumping out excellent income.

The former is handing out a stunning 10.5% fully franked dividend yield, while the latter is paying 8.4% unfranked.

With these types of stocks, I think it's not outrageous to imagine your portfolio could average out to 12% CAGR in the long run.

Ten years for the good times to roll

Going back to that $20,000 portfolio you constructed, let's say you can afford to add $400 a month to the pot.

Let that brew with 12% CAGR, and after 10 years, it will have grown to $146,350.

From the 11th year, instead of reinvesting the returns, try cashing it in.

That will be $17,562 of passive income annually, on average.

This means $1,463 of cash landing in your bank account each month for the rest of your life.

That's one way you can turn $20,000 into thousands of dollars of regular extra income.

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But the fact is that earning money for nothing is well within the reach of ordinary Aussies.

It just requires careful research, ASX dividend shares, compounding, and patience.

It doesn't require any special talent that is uniquely possessed by the chosen few.

Let's explore some hypotheticals:

Aim for 10% each year

ASX investors are fortunate enough to have franking rules that incentivise capital returns via fat dividends, because not every developed country has such a mechanism.

This means that there are quality stocks available that provide very comfortable dividend yields to fast-track you to passive income.

Take Woodside Energy Group Ltd (ASX: WDS), Growthpoint Properties Australia Ltd (ASX: GOZ), and Accent Group Ltd (ASX: AX1) for example.

Playing in the energy, real estate, and retail sectors, they are a well diversified bunch that pay out excellent yields — respectively 10.9% fully franked, 8.9% unfranked, and 8.25% fully franked.

All three are well managed businesses in their fields that command the respect of many professional investors.

CMC Invest shows that 7 out of 12, three of five, and five of 11 analysts rate Woodside, Growthpoint and Accent shares as buys right now.

Combined with franking credits and capital growth, it is not out of the question for a portfolio of such dividend stocks to be collecting 10% compound annual growth rate (CAGR) in the long run.

Reinvest early for rewards later

For argument's sake, let's say you can start with a portfolio worth $40,000, which comparison site Finder found last year is the average savings level for Australians.

Then you add $100 each week — or, rounded down, $400 each month.

Initially, every time dividends are paid out, reinvest it straight back into the portfolio. If some of the stocks have dividend reinvestment plans (DRPs), then even better.

If this nest egg can keep up 10% CAGR for 10 years, you'll end up with $180,249 of dividend stocks.

From then on, stop reinvesting the dividends.

Instead, put it in your pocket as your new source of passive income.

That's $18,000 landing in your account each year, or $1,500 monthly.

You can then lie on a banana lounge drinking cocktails.

The post How investing $100 per week can create $1,500 in annual ASX dividend income appeared first on The Motley Fool Australia.

If so, you could utilise ASX dividend shares and the magic of compounding to build up a machine that will automatically generate $500 a month without you lifting a finger.

That's six grand of passive income — enough for a nice overseas holiday for the entire family — every 12 months.

How can this be?

It's possible because Australia is blessed with many of the best income-producing stocks in the whole world.

That is no accident. It has come about because of Australia's tax rules, which dictate investors should not be "double taxed".

That is, if a company has already paid corporate tax on its profits then distributes some of that cash to shareholders, it comes with franking. The recipient then does not need to pay income tax on that dividend.

This system provides a major incentive for public listed companies to hand back capital to shareholders using dividends, rather than other methods more popular overseas, such as buybacks.

How to invest $10,000 for passive income

Let's get back to that $10,000 you had.

If we construct a well diversified portfolio full of quality ASX dividend stocks, we can reinvest the distributions each year to grow the pot.

With stocks like Fletcher Building Ltd (ASX: FBU) and Growthpoint Properties Australia Ltd (ASX: GOZ) handing out 8% to 9% dividend yield, there's no reason why you can't achieve 10% CAGR each year with the help of franking and capital growth.

If you can keep saving to buy $200 worth of shares each month, even better.

A quick calculation shows that $10,000 growing at 10% with $200 added each month will become $64,187 after just 10 years.

After that, instead of reinvesting the dividends each year, put it in your pocket.

That'll work out to be about $6,000 annually, which is $500 per month.

Not bad, aye? 

If you want an even larger stream of passive income, just keep reinvesting past the 10-year mark.

After 20 years the portfolio will have reached a phenomenal $204,735.

Cashing in 10% of returns each year from that will provide you $20,000 of passive income.

Imagine what you could do with an extra $1,666 of cash each month.

Best wishes for your investments.

The post $10,000 in savings? Here's how I'd try to turn that into $500 a month of passive income appeared first on The Motley Fool Australia.

You deserve to enjoy a leisurely lifestyle after decades of toiling hard to put on the food on the table and provide for your loved ones. 

Fortunately, Australia is an outstanding place to enter that phase of your life.

That's because this wide brown land has some of the best dividend shares on the entire planet.

Australia has tax laws that heavily incentivise public companies to return capital to their shareholders via distributions over other channels like buybacks. 

The rules say that investors should not be taxed twice on dividends. That is, if a company has already paid corporate tax on its profits, dividends coming from that pool should be tax-free.

So in such circumstances, shareholders are given franking credits along with the cash distribution, which allows income tax to be avoided.

That's why retirees are spoiled for choice on the ASX when it comes to generating passive income.

A caveat on the passive income

Of course, this doesn't mean just buying up the stocks with the highest dividend yields.

Every investor needs to be careful with investments that supposedly return double-digit yields, as it could mean the business and the share price could be deteriorating.

There is not much use in receiving a 15% dividend yield if the stock price halves in a year.

Protection of capital is even more important for those in the retirement phase with little recourse or time to make up for losses.

So this does mean sacrificing some passive income for more businesses with more certain outlooks.

Here are three stocks that fit the bill:

Three dividend beauties

Ampol Ltd (ASX: ALD) operates an oil refinery and a huge network of petrol stations around the nation.

With the world scrambling for energy security in the last couple of years, the stock has risen 27% so far this year and more than 71% since the 2020 COVID-19 market crash.

This is all while paying out a chunky 7.2% dividend yield, which is fully franked no less.

Professional investors love the stock at the moment, with eight out 11 analysts surveyed on CMC Invest rating Ampol as a buy.

As a real estate investment trust (REIT), Growthpoint Properties Australia Ltd (ASX: GOZ)'s dividends come with no franking.

However, it still pays out an enviable yield of 8.6%.

And the property sector is now roaring back to life with interest rate stabilisation — or even cuts — tantalisingly around the corner.

Growthpoint shares have rocketed 31% since the start of last month, but it's still well under the last reported net tangible assets per share of $4.

Four of six analysts covering the stock reckon it's a buy, as shown on CMC Invest.

Global grain supplies had also been under threat after Russia invaded Ukraine last year, and that might explain why the Graincorp Ltd (ASX: GNC) share price has gained almost 70% over the past five years.

It pays out a fully franked yield of 7.3%, including special cash dividends this year. Graincorp also paid special dividends last year.

Five out of nine professional investors recommend Graincorp as a buy, according to CMC Markets.

The post Retirees: 3 high-yield ASX shares to buy for passive income appeared first on The Motley Fool Australia.

That's because our country has some of the best dividend stocks in the world.

This is no fluke. ASX-listed companies are heavily incentivised to return capital back to shareholders via dividends than other methods, such as buybacks.

The incentive is Australia's tax laws that prevent double taxation of dividends.

If a company has paid corporate tax on its profits, dividends coming out of that are accompanied by franking credits.

Investors with these franking credits do not have to pay income tax on that income because corporate tax was already paid on it.

So for a retiree ASX dividend shares are an efficient way of producing a stream of cash to spend on their day-to-day living.

Beware the siren song of ASX dividend shares with massive yields

Of course, this doesn't mean just picking out the stocks with the highest dividend yields.

Every investor wants to protect their capital, but it's even more important to those in the post-work phase of their lives.

This means that some yield may have to be sacrificed from the highest income producers in order to pick businesses that are less likely to dramatically decline or are highly cyclical.

This could mean you're left with stocks that not only have less chance of tanking, but the dividend output will be more reliable (if not quite as prolific in some years).

Let's check out three such examples out there right now:

Are shoes more essential than high fashion?

Consumer discretionary retail might be out of favour at the moment with the economic uncertainty, but Accent Group Ltd (ASX: AX1) has proven to be pretty resilient.

The stock has actually gained 8.1% so far this year, all while paying a sensational fully franked yield of 9.6%.

Perhaps its footwear bias means the Accent Group is better able to withstand the higher interest rates than retailers that sell more expensive or discretionary products.

After all, people still have to replace worn shoes, regardless of how much money they have in their wallet.

Admittedly, the stock price has dipped just short of 30% since April, but that could provide investors with a golden buying opportunity to rake in a very high dividend yield along with capital upside.

Decent yield while leaving a buffer

Over in the banking sector, Bendigo and Adelaide Bank Ltd (ASX: BEN) pays a fully franked 6.7% yield.

The Motley Fool lead advisor Edward Vesely likes the stock for retirees because of "relative stability of the banking industry in Australia".

"It also has a payout ratio in the high 50s, providing a buffer against dividend cuts in case of an earnings downturn," he said.

"It has an exposure to agribusiness — which provides for an alternative source of earnings — and remains classified as an 'unquestionably strong' bank in accordance with APRA's capital requirements."

The Bendigo share price has dipped 4.3% this year, presenting a tempting entry point at the moment.

These shares are at 40% discount to assets

Like most real estate stocks, Growthpoint Properties Australia Ltd (ASX: GOZ) has suffered from a sell-off as interest rates have risen.

But as the rate nears the peak, the Growthpoint share price is starting to show signs of a turnaround, rising more than 22% since the end of October.

This still leaves it with an outstanding yield of 9.2% unfranked.

The great ace for Growthpoint is that its last reported net tangible assets per share was $4, meaning the stock is still trading about 40% below what its properties are worth.

This gives it decent upside as rates stabilise and investors return to the real estate sector.

Four out of the six analysts that study Growthpoint now think it's a buy, according to CMC Invest.

The post These 3 ASX dividend shares could be a retiree's best friend appeared first on The Motley Fool Australia.

This latest update reveals that there will be three ASX shares kicked out of the benchmark ASX 200 index later this month.

Let's now take a look at which shares are being removed and then what will be replacing them.

Which ASX 200 shares are leaving the ASX 200?

The ASX 200 shares that have been kicked out are property companies Cromwell Property Group (ASX: CMW) Growthpoint Properties Australia Ltd (ASX: GOZ), and administration services company Link Administration Holdings Ltd (ASX: LNK).

Over the last 12 months, their shares have fallen 40%, 28%, and 61%, respectively. This has dragged their market capitalisations to a level that means there are now more suitable options for ASX 200 index inclusion.

The bad news for the evicted ASX 200 shares is that selling pressure could now increase. That's because index funds that track the ASX 200 will be forced to sell their shares. In addition, fund managers that have strict investment mandates may have to sell if they aren't permitted to invest outside the benchmark index.

What are the new additions?

Joining the ASX 200 index on 18 December will be uranium developer Boss Energy Ltd (ASX: BOE), mortgage insurer Helia Group Ltd (ASX: HLI), formerly known as Genworth Mortgage Insurance Australia, and fleet management and salary packaging company Smartgroup Corporation Ltd (ASX: SIQ).

Their shares are up 78%, 51%, and 70%, respectively, over the last 12 months.

And, in contrast to the three companies that have been kicked out, they could experience an increase in demand for their shares as index funds buy shares and they become available to fund managers with the aforementioned investment mandates.

The post Quarterly rebalance: These shares are joining the ASX 200 index. What's being kicked out? appeared first on The Motley Fool Australia.

On face value, it's very tempting to just pick out stocks that have high dividend yields. But this is a dangerous path to take.

Webull Securities Australia chief Rob Talevski explained that this is because the current yield says nothing about the forward outlook.

"Even if a company has provided its investors with strong dividends in the past, it needs reliable earnings in the future to continue this pattern."

Another difficulty with dividend stocks is some sectors can see very cyclical fortunes that could make future payouts wildly fluctuate.

"For example, we know that energy and resources companies can provide powerful earnings windfalls during pro-cyclical times of higher commodity and consumer prices, but counter-cyclical periods of weaker prices and trade interruptions can impact earnings and, subsequently, dividend payouts."

Remembering this advice, here are three ASX dividend shares deliberately in different sectors that are looking bullish for next year:

Dividend stock #1: lithium

Global lithium prices have plunged this year due to economic weakness, so it's no surprise a miner like IGO Ltd (ASX: IGO) has lost almost half of its valuation since mid-July.

But that has brought the dividend yield up to an amazing 8.6% fully franked, and given the share price excellent upside.

The team at Blackwattle has high conviction on IGO and the lithium industry.

"We remain positive on the long-run outlook for lithium demand and favour miners that have long reserve lives and are first and second quartiles on the cost curve," read its memo to clients last week.

"With C1 [net direct cash cost] and capital costs rising rapidly across the industry, we believe supply growth will be slower than consensus forecasts."

Dividend stock #2: real estate

Growthpoint Properties Australia Ltd (ASX: GOZ) is a real estate investment trust (REIT) of office and industrial properties.

Similar to IGO, the valuation has fallen this year, pushing the yield up to 9.2% unfranked.

And with the share price now more than 42% lower than the latest net tangible asset value (NTA), any recovery in the real estate sector after interest rates peak could make this an absolute bargain.

According to CMC Invest, four out of six analysts currently rate Growthpoint Properties as a strong buy.

Dividend stock #3: energy

Finally, in the energy sector, plenty of experts reckon Santos Ltd (ASX: STO) is in for a big 2024.

The share price has dipped more than 14% since 20 October, presenting a buying window at the moment.

The oil and gas producer is now rated as a buy by 14 out of 16 analysts, as shown on CMC Invest.

There is even talk that the depressed valuation would make Santos a tempting takeover target for larger overseas energy producers.

"We believe the stock provides good value at these levels on top of appealing capital returns," Seneca Financial Solutions advisor Tony Langford said last week.

Santos shares currently pay out an unfranked dividend yield of 5.2%.

The post Income investors: 3 ASX dividend shares that could rally in 2024 appeared first on The Motley Fool Australia.