Financial News from The Motley Fool Australia

  • Buy these 2 blue-chips of tomorrow for a richer retirement Wed, Oct 22, 2014 7:51 AM AEDT

    A goal for many investors is probably to have a portfolio stuffed full of blue-chip stocks twenty years from now. You may not be retiring in that time, but it would be a great feeling knowing you were ...

  • 3 super stocks to buy on the dip: BHP Billiton Limited, Amcor Limited and Origin Energy Ltd Thu, Oct 2, 2014 7:44 AM AEST

    The ASX has now reversed all of the gains made in 2014 so that it is now down 0.5% since the turn of the year. However, a dip in the wider index provides an opportunity for shrewd Aussie investors to buy ...

  • Should you buy Telstra Corporation Ltd? Thu, Jul 10, 2014 6:43 AM AEST

    Telstra Corporation Ltd (ASX: TLS) continues to impress it shareholders with both share price increases and generous dividend yields. In the past three years, Telstra shares have a return on investment ...

  • 3 retirement friendly dividend stocks Tue, Jul 8, 2014 7:59 AM AEST

    No matter what your goals in retirement, chances are you'd want a generous income from your investments coupled with the peace of mind you get from knowing your money is invested in a mostly safe and reliable company. National Australia Bank Ltd (NAB.AX) and BHP Billiton Limited (BHP.AX) are examples of companies with generous dividend yields. The good news is there are a number of other well priced reliable dividend stocks on the ASX which you should consider buying and holding for long-term capital gains and income. For example, retail telecommunications player M2 Group Ltd (MTU.AX) looks primed for market outperformance in coming years, despite increasing some 700% in value over the past five years.

  • Is Australia and New Zealand Banking Group the standout bank for future returns? Wed, Jul 2, 2014 11:14 AM AEST

    Shares in Australia and New Zealand Banking Group (ASX: ANZ) have just capped-off another stellar financial year notching up 15% returns, not including dividends, to open today at $32.84. Over the past ...

  • Interest rates on hold: which stocks will benefit? Wed, Jul 2, 2014 5:23 AM AEST

    In commenting on the decision, Governor Glenn Stevens stated that, "growth in the global economy is continuing at a moderate pace." The Governor also suggested in reference to Australia that, "overall, the Bank still expects growth to be a little below trend over the year ahead." According to a report in The Australian Financial Review the banking industry has been increasing its margins by reducing the interest paid on term deposits by more than the rate of reduction borrowers have received off their mortgages. Given banks usually do well in a high interest rate environment, it looks like a case of 'heads the bank wins, tails the customer loses!' While the banks may continue to benefit, for investors concerned that Westpac Banking Corp (WBC.AX) and its banking peers look a little too pricey to invest in, there are arguably safer ways to gain exposure to companies benefiting from low rates.

  • Is Wesfarmers Ltd a buy? Tue, Jul 1, 2014 11:52 AM AEST

    What: The Australian Financial Review is reporting that broker Goldman Sachs has reiterated its 'buy' recommendation on blue-chip conglomerate Wesfarmers Ltd (ASX: WES). So what: The call comes in the ...

  • 3 reasons there could be more bad news in store for iron ore stocks Fri, Jun 27, 2014 7:46 AM AEST

    Despite a rally in iron ore stocks on Thursday which sent Fortescue Metals Group Limited (FMG.AX), Mount Gibson Iron Limited (MGX.AX), Atlas Iron Limited (AGO.AX) and BC Iron Limited (BCI.AX) up 2.5%, 4.2%, 5.7% and 2.5% respectively, there are at least three reasons why investors should remain cautious about leaping head first back into the sector. The industry is facing a flood of new iron ore supply from the likes of BHP Billiton Limited (BHP.AX). With construction a key end user of iron ore, the effect of a housing slowdown could have serious repercussions. Thirdly, the Bureau of Resources and Energy Economics recently released its 2015 iron ore price forecast which was for an average price of US$97 per tonne.

  • Australia’s top 10 blue-chip income stocks Thu, Jun 26, 2014 7:22 AM AEST

    Investors all around the world are obsessed with income. The best example of this is the major European banks who have purchased so many Spanish and Irish Government bonds that they are now yielding below ...

  • Is this the ASX’s most promising small-cap business? Thu, Jun 26, 2014 5:34 AM AEST

    Especially one whose product range is available in every supermarket in the land? Luckily Pental had bought the iconic White King brand from Sara Lee in 2011 - and this was to soon aid the resurrection of the company. A large cornerstone investor was found and Pental sold all assets bar the consumer staple brands and associated manufacturing facilities.

  • Here’s why Metcash Limited is outperforming Woolworths Limited today Mon, Jun 23, 2014 12:06 PM AEST

    So what: Metcash's share price has been languishing near decade lows as investors have become increasingly concerned with the outlook for the group and the competitive pressures from market leaders Woolworths Limited (WOW.AX) and Coles, owned by Wesfarmers Ltd (WES.AX). Now what: Metcash has attracted a number of investors who have considered the stock in value territory. On a day when the S&P/ASX 200 Index (Index: ^AXJO) (ASX:XJO) is up 0.6% and major rival Woolworths' shares have gained 0.5%, the jump in Metcash's share price could suggest investors are increasingly comfortable that the wholesaler has stabilised its business, and that there is potential for underlying earnings growth and share price appreciation from this point forward. Importantly for Metcash's shareholders, the board has declared a final dividend of 9 cps, bringing the full year dividend to 18.5 cps;

  • Here’s why Westfield Group popped 2.6% today The Motley Fool Australia - Tue, Jun 17, 2014 2:16 PM AEST

    What: On a day where the S&P/ASX 200 Index (^AXJO) (ASX:XJO) has struggled to post a gain, shares in Westfield Group (WDC.AX) have rallied 28c or 2.6% to be trading at $10.89. While there have been many concerns that the deal will not be approved by shareholders of Westfield Retail Trust (WRT.AX) this time around (a 75% approval rate is required), it is now believed enough shareholders will have changed their stance to give the Group a narrow win. Now what: The deal will see Westfield Group's international assets spun off to form Westfield Corporation, while both the Group's and the Trust's local assets will be merged to form Scentre Group. While I like both Westfield Group and Westfield Retail Trust as investments, I certainly don't think they're the best ideas for today's money.

  • Gold to soar? Which stocks to buy for a market correction The Motley Fool Australia - Tue, Jun 17, 2014 11:00 AM AEST

    Defensive investments including Telstra Corporation Ltd (TLS.AX), Woolworths Limited (WOW.AX) and government bonds provide some lower-risk protection. Gold also may provide some measure of insurance against deflation, inflation and international conflicts. The latter is evident in the mini gold rally while US President Barack Obama continues to weigh up options on action to take in Iraq. The future direction of the gold price is difficult to predict.

  • 3 dividend stocks for your watchlist now The Motley Fool Australia - Tue, Jun 17, 2014 10:40 AM AEST

    It's a sad situation for savers and retirees who rely on a deposit account. Thankfully, investors who understand the benefits that the share market can provide are not bound by the skinny returns of a deposit account, but rather they can seek out significantly better opportunities. Given these circumstances it's easy to see why investors, particularly those thinking about their superannuation and the need to draw down upon it, are focusing on stocks with high dividend yields. That should allow the company to continue to grow its dividend with research provided by Morningstar suggesting dividends totalling 4.5 cents per share (cps) could be paid in FY 2015.

  • Is this analyst right on Woolworths Limited? The Motley Fool Australia - Tue, Jun 17, 2014 6:26 AM AEST

    This morning while reading through the daily "buy" and "sell" recommendations issued by analysts at major stockbroking firms, I noticed one analyst had a "sell" recommendation on Woolworths Limited (WOW.AX). What struck me most about the recommendation to sell Woolworths was not so much the recommendation itself, but rather the reason behind it.  "Woolworths plans to open 35 new supermarkets in the next three years, while Coles plans to open 20 new stores. On average, the Woolworths stores will be smaller than the Coles outlets, and they will be located in smaller population areas.  While the Coles stores will be in new catchment areas, the new Woolworths stores appear to be cannibalising its existing network".

  • 4 reliable blue-chip stocks for retirement The Motley Fool Australia - Tue, Jun 17, 2014 5:54 AM AEST

    With overseas earnings growing quickly and a 5.1% fully franked dividend yield, there's a lot to like about ANZ. Like ANZ it dominates the local market with reputable operating margins and a large customer base, providing the perfect platform from which it can leverage its overseas expansion. It is forecast to pay a 3.2% fully franked dividend in the next 12 months. Despite trading on a whopping 66 times FY13 earnings, the toll road operator is forecast to pay a 4.3% dividend with partial franking.

  • 3 stocks to grow your wealth over the next decade The Motley Fool Australia - Tue, Jun 17, 2014 5:24 AM AEST

    It certainly isn't as cheap as it was three years ago, but Telstra Corporation Ltd (TLS.AX) is still an excellent buy today. We all know how Warren Buffet's Berkshire Hathaway story has played out... The success of the investment conglomerate has been second to none over the decades. The good news is Australian investors have the opportunity to invest in a company with a very similar business approach, which goes by the name of Washington H. Soul Pattinson and Co. Ltd (SOL.AX). Unlike Berkshire however, Soul Patts also offers investors a juicy dividend.