The investment world has completely changed over the past year with interest rates in the US and Australia now much higher than before. In turn, term deposits are offering much better rates. But, ASX dividend shares can offer much bigger dividend yields.

While it's pleasing that safe assets, like term deposits and high-interest savings accounts, do offer stronger returns, they don't offer the potential for self-funded growth.

But, when an ASX dividend share has a high dividend payout ratio and/or a low price/earnings (P/E) ratio, it can end up in a very big dividend yield.

We're almost three-quarters of the way through FY23, so I'm going to focus on what the dividend yields might be in FY24, which includes current expectations of any economic slowdown.

According to Canstar, the best rate of offer from a 12-month term deposit is 4.5%. So let's check the returns on the following shares:

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the leaders in retail products related to hair removal. It has a national network across Australia, as well as a growing presence in New Zealand. Shaver Shop also sells items like oral care, grooming products, and so on.

The business trades on a low price-to-earnings (P/E) ratio, enabling the share to have a very high dividend yield.

According to Commsec, the business is expected to pay a dividend per share of 10.7 cents in FY24.

At the current Shaver Shop share price, that translates into a grossed-up dividend yield of 13.9%, with further growth expected in FY25.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest retailers in Australia with its national networks of JB Hi-Fi stores as well as its network of The Good Guys stores. While the business sells items such as TVs, it also sells products that many households may view as essential such as fridges, phones, and computers.

During the COVID-19 period, and even in the first half of FY23, the ASX dividend share sold elevated levels of items to consumers as spending was redirected.

That's why the JB Hi-Fi dividend is expected to drop by almost 25% to around $2.28 per share in FY24, according to Commsec.

At the current JB Hi-Fi share price, that translates into a grossed-up dividend yield of 7.5%.

Adairs Ltd (ASX: ADH)

Adairs is a furniture and homewares retailer. It sells through three different brands – Adairs, Focus on Furniture, and Mocka. The business is trying to grow through a combination of a store rollout, membership growth, larger stores, and improved efficiencies.

The ASX dividend share is another that saw a big earnings boost during the COVID-19 period.

In FY24, its dividend is predicted to be 19 cents per share, according to Commsec.

At the current Adairs share price, that works out to be a grossed-up dividend yield of 11.7%. As well, further dividend growth is expected in FY25.

The post The highest-paying term deposit right now offers 4.5% interest. Here are 3 ASX dividend shares paying way more appeared first on The Motley Fool Australia.

Well, that world has gone. Just this week, the Reserve Bank of Australia (RBA) raised interest rates for the tenth time in a row. The cash rate has gone from 0.1% at the end of 2021 to the 3.6% we see today – one of the sharpest rises in history.

As a consequence, many savings accounts and term deposits are now offering interest rates of up to 5% (and some even higher) today.

But that doesn't mean we can't get even better yields from some ASX 300 dividend dynamos.

So let's check out three that are offering yields that can smash cash right now.

Smash cash with these ASX 300 dividend shares

First up is Accent Group Ltd (ASX: AX1). This ASX 300 retail share operates well-known footwear outlets such as Platypus Shoes and The Athlete's Foot. Over the past 12 months, Accent shares have paid out a total of 16 cents per share in dividend payments – the highest 12-month total in its history.

Despite the Accent share price rising by almost 43% over the past year, the shares still offer a trailing dividend yield of 6.67% today. That grosses up to a whopping 9.53% with Accent's full franking credits.

Another ASX 300 share offering a supersized dividend yield is Adairs Ltd (ASX: ADH). Unlike Accent, the Adairs share price has been suffering over the past 12 months, currently down by just over 17%. But despite this, this company paid out a historically high 18 cents per share in dividends over 2022.

That gives Adairs shares a dividend yield of 7.5% today. Again, Adairs' dividends usually come fully franked, so this grosses up to a pleasing 10.71%.

An 11.3% yield from Harvey Norman?

Finally, let's check out Harvey Norman Group Holdings Limited (ASX: HVN). Harvey Norman is a company needing little introduction, thanks to its prominent presence on the Australian retail scene for over four decades.

This is another ASX 300 share that has had a rough time over the past year, with Harvey Norman losing almost 29% of its value since March 2022. But that isn't obvious when you look at this company's dividend. 2022 saw Harvey Norman dole out its largest shareholder payments ever, with investors showered with a total of 37.5 cents per share, fully franked.

This gives Harvey Norman a dividend yield of 7.92% today, which grosses up to a massive 11.31% with that full franking.

So as you can see, there are plenty of ASX 300 shares out there that have the potential to still give investors massive yields on their capital today.

The post These 3 ASX 300 shares are dividend dynamos! appeared first on The Motley Fool Australia.

The legendary investor Warren Buffett is famous for his annual letters to the shareholders of his company Berkshire Hathaway. These letters are typically expansive, and packed with investing tips and wisdom, but written in an accessible and often humourous and witty manner.

The latest Berkshire letter is hot off the press, having only been released a few weeks ago.

One of the most pertinent things Buffett wrote this year was to do with finding winners for one's share portfolio.

Some Warren Buffett wisdom to get to $1 million…

Here's what the great man himself had to say:

In 58 years of Berkshire management, most of my capital-allocation decisions have been no better than so-so. In some cases, also, bad moves by me have been rescued by very large doses of luck…

Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire…

The lesson for investors: The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders. And, yes, it helps to start early and live into your 90s as well.

So "it takes just a few winners to work wonders". That's the philosophy I like to take into my own investing practice. As such, I'm always on the hunt for the ASX's best shares – ones that could drive my own share portfolio to $1 million one day.

Of course, this is easier said than done. And if Buffett himself isn't immune from making mistakes, then we should all prepare for more than a few setbacks along the way.

You'll normally find that the companies that dominate their respective industries and markets have some kind of secret sauce that keeps them at the top of the pole. Buffett likes to call this competitive advantage a company's 'moat' – named for the protection it provides against competitors.

It could be a reputable or famous brand (think Coca-Cola, Apple or even Commonwealth Bank of Australia (ASX: CBA)), a cost advantage (perhaps Woolworths Group Ltd (ASX: WOW), or having an asset or product that customers have no choice but to use (a Transurban Group (ASX: TCL) toll road).

Buy the best companies – at the right price

But finding these quality companies is just the start. To truly find a winner, you need to buy it at the right price. Let's take Woolworths as an example.

You can't deny this company's quality as the leading supermarket operator in Australia.

If an investor bought Woolworths shares back in May of 2014, they would have paid around $31 a share. That would lead them to a rather uninspiring total return of just over 20% by this point of 2023 (albeit boosted by the dividends Woolworths has paid along the way).

But what if that investor instead waited until July 2016 to buy in? That's when Woolworths was in the midst of its Masters debacle, and the shares got down to around $17.50. If our investor had bought at this far more attractive share price, they would instead be sitting on a capital gain of well over 100% today:

WOW indeed.

So Buffett teaches us that getting to $1 million requires just a handful of quality shares, but bought at the right price.

I'm banking on shares that I think fit this mould to get my own wealth to over $1 million. Those include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), the VanEck Morningstar Wide Moat ETF (ASX: MOAT), Adairs Ltd (ASX: ADH) and Wesfarmers Ltd (ASX: WES).

Only time will tell if any of these prove to be the flowers my wealth garden needs (and hopefully not weeds).

The post I'd aim for $1 million, thanks to just a few ASX shares appeared first on The Motley Fool Australia.

And while the average yield of 4% is attractive, income-seekers don't have to settle for that. Far from it!

One ASX 300 dividend stock that has been tipped to provide investors with a very big yield is Adairs Ltd (ASX: ADH).

Through its Adairs, Mocka and Focus on Furniture brands, it is Australia's largest omni channel specialty retailer of home furnishings, home furniture, and home decoration products.

Big yields expected from this ASX 300 dividend stock

Last month, Adairs released its half-year results and reported a 34.1% increase in sales to a record of $324.2 million and a 23.9% lift in statutory net profit after tax to $21.8 million.

And while the Adairs board only maintained its fully franked interim dividend at 8 cents per share, this alone still provides an attractive yield of 3.4% based on the current Adairs share price of $2.37.

But wait, don't forget the company's final dividend! According to a note out of Goldman Sachs, its analysts are expecting another fully franked 8 cents per share dividend in the second half, bringing its full-year dividend to 16 cents per share. This represents a 6.75% dividend yield at current levels.

The good news is that Goldman is then expecting Adairs to increase its dividend to 20 cents per share in FY 2024. If this estimate is accurate, it will mean a very large fully franked 8.4% dividend yield.

And while the broker only has a neutral rating on its shares, its price target of $3.10 implies material upside of almost 31% for this ASX 300 dividend stock over the next 12 months.

The post Invest in this 7%+ ASX 300 dividend stock for passive income appeared first on The Motley Fool Australia.

Both of these dividend shares have been tipped to provide big dividend yields and climb meaningfully higher from current levels. Here's what you need to know about these high yield shares:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a top option is Adairs. It is the leading furniture and homewares retailer behind the eponymous Adairs brand, as well as the Focus on Furniture and Mocka brands.

Earlier this week, Adairs released its half-year results and reported a 34.1% increase in sales to a record of $324.2 million and a 23.9% jump in net profit after tax to $21.8 million.

And while trading conditions are expected to be tougher in the second half and FY 2024, UBS believes it is worth sticking with the company.

In response to its results, UBS put a buy rating and $2.95 price target on the company's shares.

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents per share in FY 2023 and FY 2024. Based on the current Adairs share price of $2.24, this will mean yields of 7.1%.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Another ASX dividend share that has been named as a buy is Dalrymple Bay Infrastructure.

It is an infrastructure company that operates the Dalrymple Bay Coal Terminal (DBCT) on a long term agreement.

Morgans is a fan of the company and believes it is well-placed to pay big dividends in the near term. This is thanks to the strong demand for coal and its position as the cheapest export route-to-market for users within the Bowen Basin catchment region.

The broker currently has an add rating and $2.67 price target on its shares.

As for dividends, its analysts are forecasting dividends per share of approximately 21 cents in FY 2022 and FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.45, this will mean massive yields of 8.6%.

The post Supercharge your passive income with these ASX shares: experts appeared first on The Motley Fool Australia.

The outlook for some ASX shares is looking a bit tougher than in 2021. However, I don't believe that the poor conditions are going to last forever, which I think is how businesses are sometimes priced during a sell-off like the current period.

While retail is not the most defensive sector, I think there is the potential for investors to pick up shares at cyclical lows, and then ride the recovery back up again, though a turnaround could take a bit of time. That's where being patient is a very useful trait. By 2025, I think both of these names can deliver share price growth of at least 30% as market sentiment returns and their growth plans are carried out.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online-only homewares and furniture retailers.

The Temple & Webster share price has fallen over 70% since mid-October 2021 and it's down 37% in February 2023. I believe that the current level makes it an attractive time to invest.

Management point out that, over the longer-term, e-commerce in the Australian furniture and homewares category "remains highly under-penetrated" and that it has a "much larger addressable market to go after" with the categories of home improvement and trade and commercial.

The All Ords ASX share is seeing its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) improve over time as it scales. The FY23 second quarter saw EBITDA generation of $5.2 million, while the FY22 second quarter saw EBITDA of $4.6 million.

While the FY23 half-year revenue was down, the business is expecting to return to double-digit revenue growth in the shorter term. Over time, the company expects to grow its EBITDA margin from 3.8% in FY22 to more than 15% over the long-term thanks to scale benefits.

Adairs Ltd (ASX: ADH)

Adairs is a somewhat similar business – it also sells homewares and furniture, though the range is smaller.

The Adairs share price is down 53% from June 2021 and it's down 22% in February 2023.

This All Ords ASX share just released its FY23 half-year result, showing sales growth of 34.1% to $324.1 million, while earnings per share (EPS) went up by 22.2% to 12.7 cents. It also revealed that Adairs store floor space increased by 2.4%.

Adairs' new national distribution centre has been "below expectations", which has affected customer experiences, as well as "significantly higher cost of operations". However, there are "early signs that operational outcomes are improving". A new pricing model started in January 2023, which "will see average variable costs per unit dispatched reduce by 20%" compared to the FY23 first half level. Warehousing costs added $5 million compared to the first half of FY22.

The All Ords ASX share is working on reducing costs, while group sales in the first seven weeks of the second half of FY23 were up 1.8% year over year. It's still expecting to make between $70 million to $80 million of earnings before interest and tax (EBIT) in FY23.

I think that the supply chain and inflation issues will improve over 2023, while total sales could seem more resilient in a downturn thanks to ongoing store growth and expansion efforts.

The post 2 ASX All Ords shares I think can make big returns by 2025 appeared first on The Motley Fool Australia.

Not only do some ASX shares pay wonderful dividends (or distributions), but Australian companies also have the added bonus of franking credits, which are refundable tax credits.

In other words, for high-income earners, the franking credits will reduce the tax burden of receiving the dividends. For lower-income earners, some (or all) of the franking credits may be refunded when the tax return is completed.

But, I wouldn't suggest investing in an asset or an ASX share just because of the possible income. The risk of a fall in the share price means we should try to identify good investments that are at good prices.

In my opinion, the below three names tick the necessary boxes.

Brickworks Limited (ASX: BKW)

Brickworks is the leading brickmaker in Australia. It also offers other products including roofing (through Bristle Roofing) which makes it fairly diversified.

The ASX dividend stock is also increasing its exposure to the northern hemisphere. It has been growing its brick market share in North America after making some acquisitions there. Plus, the business will soon be supplying millions of bricks to the UK after recently signing an agreement with a distributor.

Brickworks also owns two other major assets that are funding its dividend and delivering growth.

Firstly, Brickworks owns a large chunk of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Soul Pattinson itself has grown its dividend to shareholders every year for the last two decades.

Brickworks also has a 50% stake in a growing industrial property trust. That trust is building huge, modern warehouses on land that Brickworks no longer needs. This is enabling the generation of property development profits and unlocks a growing stream of rental income.

Brickworks hasn't cut its dividend for over four decades and currently has a trailing grossed-up dividend yield of 3.7%.

Adairs Ltd (ASX: ADH)

The Adairs share price has been one of the most-hit ASX dividend stocks during this period of volatility and uncertainty surrounding the economy as interest rates soar.

It's quite possible that the company's earnings will have a bumpy ride over the next year or so. The company sells furniture and homewares through three different brands – Adairs, Focus on Furniture and Mocka.

Adairs just reported its FY23 first half, which showed that earnings per share (EPS) was up 22% to 12.7 cents per share. The company also said that it was focusing on debt reduction – net debt fell by $12.2 million from June 2022 to $81 million at December 2022.

Despite that, Adairs decided to pay a dividend per share of 8 cents per share. If it were to pay an annual dividend per share of 16 cents for FY23, that would equate to a grossed-up dividend yield of 9.5%.

I think that retail conditions will improve in 2024, which could be helpful for both investor sentiment and hopefully earnings.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia. That includes cattle, almonds, vineyards, macadamias, sugar and cotton.

The ASX dividend stock has a goal of increasing its distribution to investors by 4% each year. The Rural Funds share price is close to its 52-week low, so I think this is a very good time to consider investing.

While the cost of debt has increased, the REIT's rental income which is linked to CPI inflation is also getting a boost.

I think that this is a good time to invest while the distribution yield is elevated. A total distribution of 12.2 cents per unit could be paid in FY23, which would equate to a distribution yield of 5.2%.

For me, farmland seems like a good long-term investment that doesn't deteriorate in the same way that an office building or shopping centre does.

The post ASX investors: 3 of the best Aussie dividend stocks to buy this year appeared first on The Motley Fool Australia.

ASX small-cap shares may not be household names. They might not get the same media attention as the big S&P/ASX 200 Index (ASX: XJO) banks and miners.

However, some pint-sized ASX companies could turn out to be the big-cap stocks of the future. And wouldn't it be great to invest in a few during the relatively early stages of their growth stories?

But with so many tiny ASX fish in the sea, how can investors sort the future big catches from the minnows destined to forever remain small fry?

For their thoughts, we decided to open a can of worms and ask our Foolish writers which ASX small-cap shares they reckon are worth reeling in right now. Here is what they said:

6 best ASX small-cap shares for 2023 (smallest to largest)

City Chic Collective Ltd (ASX: CCX), $127.56 million

Healthia Ltd (ASX: HLA), $191.79 million

Adairs Ltd (ASX: ADH), $414.87 million

Arafura Rare Earths Ltd (ASX: ARU), $1.28 billion

Platinum Asset Management Ltd (ASX: PTM), $1.35 billion

GUD Holdings Limited (ASX: GUD), $1.40 billion

(Market capitalisations as at market close on 20 February 2023)

Why our Foolish writers love these ASX small-cap stocks

City Chic Collective Ltd

What it does: City Chic is an Australian-born, plus-sized fashion retailer. It boasts 200 locations around the globe as well as multiple online channels.

By Brooke Cooper: The last 12 months have been rough on the City Chic share price. It's dumped almost 90% since this time last year amid inventory concerns and balance sheet pressure.

But I believe most of the bad news could now be behind the company. City Chic recently revealed its inventory levels are expected to come in below guidance for the first half, while its recently-amended debt facility should support the company's financial position.

Goldman Sachs is neutral on the stock due to concerns around continuously-compressed margins and a promotion-focused customer base.

However, I'm not averse to risk so think the current City Chic share price could represent a buying opportunity right now.

Motley Fool contributor Brooke Cooper does not own shares in City Chic Collective Ltd.

Healthia Ltd

What it does: With over 300 clinics across Australia and New Zealand, Healthia describes itself as a leading, diversified allied healthcare provider.

The company operates networks of optometry, podiatry, and physiotherapy clinics and also owns iOrthotics, a leading manufacturer of custom-made and 3D-printed foot orthotic devices for podiatrists.

By Tristan Harrison: The Healthia share price has fallen by around 40% since the start of 2022, making it great value, in my opinion.

I think the business is exposed to a number of helpful tailwinds, including an ageing population and a growing potential market (helped by the resumption of immigration).

This small-cap ASX share is also relying on an acquisition strategy to boost its scale. It's also working on improving the performance and efficiency of its existing clinic network. Healthia is planning to spend at least $20 million on acquisitions in FY23.

FY23 half-year revenue is expected to grow by between 31.7% to 37.1%, with like-for-like revenue growth of 5.4%. January 2023 showed "positive momentum" as well.

Motley Fool contributor Tristan Harrison does not own shares in Healthia Ltd.

Adairs Ltd

What it does: Adairs is an ASX retailer that sells homewares like linens, furniture, and decor items. It operates 170 stores across Australia and New Zealand as well as a growing online channel.

By Sebastian Bowen: This is one ASX small-cap share I think could have a big future.

The Adairs share price has had a bit of a rough trot over the past year or two, having fallen by around 50% from its pandemic highs. But this could well present a buying opportunity.

The company is still growing healthily, posting record revenues for the first half of FY2023, which were up 34.1% over 1H22's numbers. Its online channels have also been booming, with roughly 26.5% of all sales over the half done over the internet.

Perhaps best of all, Adairs currently has a fully-franked trailing dividend yield of around 7.5% on the table today.

Considering all of this, Adairs could well be a small-cap ASX retailer to consider right now.

Motley Fool contributor Sebastian Bowen owns shares in Adairs Ltd.

Arafura Rare Earths Ltd

What it does: Arafura Rare Earths is the rare earths developer behind the globally significant Nolans Project in the Northern Territory.

By James Mickleboro: I think Arafura Rare Earths could be an ASX small-cap share to buy right now. This is because of the potential for the Nolans Project to supply a significant proportion of the world's neodymium and praseodymium (NdPr) demand in the future.

These are critical minerals in the production of high-performance neodymium magnets, which are used in everything from mobile phones and electric vehicles to wind turbines and military weapons.

And with the company expecting demand to more than double from 2020 to 2030, and supply to remain constrained, I believe Arafura looks well-positioned to benefit from strong prices once it commences production.

Motley Fool contributor James Mickleboro does not own shares in Arafura Rare Earths Ltd.

Platinum Asset Management Ltd

What it does: Platinum Asset Management is an Australian-based niche investment manager focused on international shares.

By Bernd Struben: After a tough 18-month stretch, the Platinum Asset Management share price has seen a big turnaround in 2023, up by almost 30% year to date. I like buying into strength and believe the company can deliver more gains in the year ahead.

Adam Lund, head of trading at Spheria Asset Management, recently tipped Platinum to outperform. He told Motley Fool, "When you buy Platinum shares, you are investing in a very experienced investment team that manages $18 billion across strategies that have outperformed their direct competitors over most periods."

Atop potential share price gains, Platinum pays a 7.8% trailing dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares in Platinum Asset Management Ltd.

GUD Holdings Limited

What it does: GUD Holdings is an Australian-based company that manufactures and distributes a diverse range of products in the automotive aftermarket and water industries. With a history spanning 65 years, GUD has raised a slate of trusted brands including Ryco Filters, DBA brakes, CSM, Cruisemaster, and Davey.

By Mitchell Lawler: GUD Holdings is not a flashy company touting futuristic software. However, it does meet a valuable need by providing a host of aftermarket car parts.

A growing berth of brands continues to fortify GUD's pricing power, reputability, and top-line growth. In the company's latest half-year results, revenue increased a significant 56% to $517 million.

What I find particularly attractive about this company is its exposure to non-discretionary spending. Around 80% of GUD's automotive revenue is derived from wear-and-tear/replacement parts. I believe this bodes well for the company, in conjunction with a large number of registered cars in Australia and the rising average vehicle age.

I personally think GUD's assets and growth potential are currently undervalued. At present, the company trades at around 11 times estimated FY2025 earnings.

Motley Fool contributor Mitchell Lawler does not own shares in GUD Holdings Limited.

The post Top ASX small-cap shares to buy in 2023 appeared first on The Motley Fool Australia.

When I'm about to make an investment, I want to buy shares as cheaply as possible.

People don't just decide to sell their shares for 30% or 50% less in normal conditions. It takes something significantly worrisome to cause a share price to drop. A global financial crisis (GFC), a global pandemic, and rapidly rising interest rates have triggered share market sell-offs over the last two decades.

Investment advice about being greedy and burgers

I think that Warren Buffett is one of the best investors of all time. While the investment returns he has generated have been incredible, it's the extremely wise pieces of advice that he has shared with the public over the decades that, to me, make him one of the most revered figures in the investing world.

The first piece of investment advice I'm going to share is one that most readers have probably already heard. It's easy to get caught up with the booms and busts of the market cycle. But, try to keep this in mind:

Be fearful when others are greedy and greedy when others are fearful.

In other words, be careful with your money when valuations are high and frothy, and get busy buying when the share market goes through a hefty decline.

Warren Buffett also said this in 2001:

To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep. For most people, it's the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don't like them anymore.

ASX share opportunities galore?

During early 2020 and through 2022, we could buy most ASX shares for much cheaper prices.

I accelerated my wealth-building significantly during 2020 and 2022 by picking my favourites at beaten-down prices.

I'll give a couple of examples of how this can turbocharge wealth.

First, imagine company A has a share price of $100 before a market crash. It then falls 50% to $50. If I buy it at $50 and then it recovers to $75 in six months, I've made a 50% return even though it's still down 25% from the starting price. But, I'd only choose a business I think has a good long-term future with growth.

I think the Adairs Ltd (ASX: ADH) share price is a great example of this in action.

Between the February 2020 peak and the March 2020 bottom, it dropped more than 70%. By July 2020, it was up 250% from that low. By April 2021, it had risen more than 600%.

Between 31 December 2021 to 17 June 2022, the Adairs share price fell around 60%. Between the June 2022 low and today, it has risen close to 40%.

While we're not currently seeing 52-week lows for many names, I think there will be more volatility ahead, enabling us to buy at better prices.

If/when there is another major decline in the stock market later this year, I'll be eager to snap up my favourite ASX shares at cheaper prices.

The post How a stock market crash could turbocharge my ASX share portfolio appeared first on The Motley Fool Australia.

At the time of writing, the homewares retailer's shares are down 2% to $2.32.

This follows the release of the company's half year results this morning.

Adairs share price lower on guidance downgrade

• Sales up 34.1% to a record of $324.2 million
• Underlying earnings before interest and tax (EBIT) up 7.9% to $35.5 million
• Statutory net profit after tax up 23.9% to $21.8 million
• Earnings per share of 22.2% to 12.7 cents
• Net debt down 13% since June to $81 million
• Fully franked interim dividend flat at 8 cents per share
• Outlook: Earnings guidance downgraded

What happened during the half?

For the six months ended 31 December, Adairs reported a 34.1% increase in sales to $324.2 million.

The key Adairs business reported a 13.1% increase in sales to a record of $220.4 million. Instore sales grew 13.1%, which offset a 7.4% decline in online sales. The former reflects no COVID store closures during the period compared with the loss of 31% of trading days a year earlier.

Also boosting its top line growth was the Focus on Furniture business, which contributed sales of $78.6 million. It was only part of the business for one month in the prior corresponding period, but management estimates that its sales grew 20.1% year over year.

Finally, the company's online brand, Mocka, had a disappointing half and reported a 26.8% decline in sales to $25.1 million. Management notes that this reflects customers returning to stores.

Adairs' margins were under pressure during the period due to inbound container rates and industry-wide increases in delivery charges.

In addition, the new DHL-operated national distribution centre's operational outcomes have been below expectations since becoming fully operational in July. Management advised that this has affected customer experiences and resulted in a significantly higher cost of operation. The two parties are working to resolve these issues and highlight that operational outcomes are improving.

Furthermore, a new price model became effective last month and is expected to reduce average variable costs per unit dispatched by approximately 20% compared to first half levels.

This ultimately led to the company's underlying EBIT growing at a more modest 7.9% to $35.5 million.

Despite this growth, the Adairs board elected to keep its fully franked interim dividend flat at 8 cents per share.

Management commentary

Adairs Managing Director and CEO, Mark Ronan, said:

The first half of FY23 delivered strong sales growth for the Group with customers across our brands preferring to shop in store. The continued Group sales growth highlights the strength of our brands, the critical role of our exclusive product, and the resilience we have seen with the Australian consumer.

Across the brands we are focussed on our operational execution, continued development of exclusive on-trend product and growing our membership bases, putting us in a good position to manage what is likely to be a more challenging trading environment in the second half.

Outlook

Management advised that the first week of the second half saw record Boxing Day sales for both the Adairs and Focus brands. And after seven weeks, group sales are up 1.8% over the prior corresponding period, with growth from Adairs and Focus being offset by a 31.7% decline in Mocka sales.

In light of this, management has reaffirmed its sales guidance for FY 2023 of $625 million to $665 million.

However, it has trimmed its EBIT guidance by $5 million to between $70 million and $80 million. This is due to elevated supply chain costs.

The post Adairs share price falls amid strong first half growth but guidance downgrade appeared first on The Motley Fool Australia.

Now many investors might appreciate the safety of this kind of guaranteed yield. After all, the dividends from ASX shares are never guaranteed to keep flowing.

But with higher risk often comes higher return. As such, there are still many ASX dividend shares out there that are offering trailing dividend yields far greater than 4.5% today. If those yields come fully franked, then even better. Let's check out five

5 ASX dividend shares that crush a term deposit today

Adairs Ltd (ASX: ADH)

ASX 200 homewares retailer Adairs is our first dividend machine worth checking out. Adairs shares have been fairly consistent dividend payers for years now. In 2022, this company doled out two fully-franked dividends worth 8 cents and 10 cents per share respectively.

These two dividends give this share a trailing yield of 7.5% today. Even better, that yield grosses up to a whopping 10.71% with that full franking.

Westpac Banking Corp (ASX: WBC)

ASX 200 bank share Westpac would be a company almost all of us would be familiar with. ASX banks are known for their dividend prowess, and Westpac is no different.

Over 2022, this bank dealt out two fully-franked dividends. The first was worth 61 cents per share, fully franked. The second was a 64 cents per share dividend, also with full franking.

Today, this gives the Westpac share price a trailing yield of 5.49%. That's 7.84% grossed-up.

Dusk Group Ltd (ASX: DSK)

Another ASX homewares retailer, Dusk specialises in candles, oils, fragrances and other similar items. This company was a real pandemic winner, with Dusk shares rising as high as $4 each in 2021. However, the past year or so has been less forgiving, and Dusk has sunk to under $2 at present.

But this fall has done wonders for Dusk's dividends. The company shelled out two dividends last year worth 10 cents per share each. Both came fully franked too.

At the current Dusk share price, we are looking at a dividend yield of 11.2%, or a whopping 16% grossed-up. Take that, term deposit!

Super Retail Group Ltd (ASX: SUL)

Retail is starting to be a theme here. Our penultimate share to look at today is Suepr Retail Group, the company behind popular stores like Rebel, BCF and Super Cheap Auto.

This is another ASX dividend share that has supersized its payouts in recent years. 2019 saw the company fork out 5 cents per share in dividends, but last year, Super Retail made it rain with a total of 70 cents per share. All fully franked too, of course.

Just yesterday, the company announced that its first dividend for 2023 would come in at 34 cents per share, which is a massive increase over 2022's interim dividend of 27 cents per share.

At the last Super Retail share price, this company has a yield of 5.61% on the table, or 8.01% grossed-up.

Harvey Norman Holdings Limited (ASX: HVN)

Our fifth and final ASX dividend machine to consider today is another famous name in retail. Harvey Norman truly has a hardly normal dividend yield right now. The homewares and electronics retailer has also been suffering a bit in recent years, share price wise.

But that didn't stop Harvey Norman from doling out its highest-ever annual dividend in 2022. Last year, the company showered investors with a total of 37.5 cents per share in fully franked dividends.

Together, these give Harvey Norman shares a trailing dividend yield of 9.08% today. That's a good 12.97% grossed-up with those franking credits.

Foolish takeaway

Against these ASX dividend shares, term deposits – eat your heart out.

The post Why term deposits can't compete with these 5 ASX dividend machines appeared first on The Motley Fool Australia.

Investors looking for a high-yielding S&P/ASX 300 Index (ASX: XKO) dividend share may want to investigate Adairs Ltd (ASX: ADH).

The leading home furnishings specialist retail stock has three store brands – Adairs, Mocka and Focus on Furniture.

As you can see in the chart below, the Adairs share price has been a strong performer so far in 2023, up 8.2% since the closing bell on 30 December.

At the current share price of $2.38, the ASX 300 company has a market cap of $405 million and pays a trailing, fully franked dividend yield of 7.6%.

With the tax benefits offered via the franking credits, that could work out to a grossed-up dividend yield of 11%, depending on an investor's other income and tax obligations.

Is this the greatest ASX 300 dividend share bargain?

Adairs isn't the only quality ASX 300 share with high-yielding dividends.

But I believe it's well worth considering for investors seeking potential share price growth and a historically reliable passive income stream.

Since listing on the ASX in June 2015, the retailer has made two annual dividend payments every year.

The company has a strong record of value creation, with experienced management and a growing e-commerce footprint. One which served it well during the pandemic lockdowns.

In the current financial year, the company announced at its annual general meeting (held in late 2022) that sales during the first four months of the 2023 financial year had increased 7.6% year on year.

And the growth outlook looks solid.

The ASX 300 dividend share plans to open two or three new Focus stores and four to six new Adairs stores in FY23.

What are the risks?

Of course, no investment is without risk.

One of the biggest potential tailwinds could come if inflation remains above expectations and the RBA is forced to continue increasing interest rates aggressively.

That could see consumers cut back on discretionary spending, including home furnishings. That, in turn, could see the ASX 300 dividend share book smaller profits and reduce its dividend payouts.

Indeed, at the end of January, Goldman Sachs downgraded Adairs from a buy to a neutral rating.

Still, the broker's analysts have a positive outlook for the business, saying, "We view the core ADH business as well-placed to deliver solid medium-term growth and should prove resilient given a highly loyal customer base."

And despite the neutral rating, Goldman has a target price of $3.15 for Adairs' shares. That's a whopping 32% above the current price.

Which makes Adairs a potentially great ASX 300 dividend share bargain.

The post 11% dividend yield! Is this the greatest ASX 300 bargain? appeared first on The Motley Fool Australia.

If the dividend yield is at least 10%, then shareholders could get returns that are close to the S&P/ASX 300 Index (ASX: XKO) total return from just the dividend income.

Of course, dividends are not guaranteed. And normally there's a reason that the dividend yield is so high. Typically, it's a combination of a low price/earnings (p/e) ratio and a fairly high dividend payout ratio.

With interest rates currently rising and inflation biting into household finances, some ASX retail shares have been sold down. This could give investors the opportunity to snare some solid companies at lower prices and elevated dividend yields.

Even if the dividend is lower than forecast, the yield could still be above 10%, so we can see that there is a margin of safety.

Dusk Group Ltd (ASX: DSK)

Dusk is a retail company that specialises in exclusive home fragrance products designed in-house. It sells candles, ultrasonic diffusers, reed diffusers and essential oils, as well as fragrance-related homewares.

In the first 19 weeks of FY23, the ASX dividend share saw total sales growth of 23.9%, with stores now open after lockdowns. The business is opening new stores in Australia, expanding into New Zealand and benefiting from growth in its membership numbers.

Commsec forecasts that the annual dividend per share could potentially be 17 cents in FY23. At the current Dusk share price, that suggests the FY23 grossed-up dividend yield could be 13.5%.

With a $10,000 investment, that would generate $1,350 of annual passive income in year one.

Adairs Ltd (ASX: ADH)

Adairs is another ASX retail share. It sells homewares and furniture through its Adairs stores, Focus on Furniture stores and the Mocka brand.

The company has benefited from household demand for home improvement over the last few years.

That strong demand may not continue forever, but Adairs has seen growth in the first 16 weeks of FY23. Compared to locked-down COVID times at the start of FY22, total sales are up 45.5%, and sales excluding Focus were up 7.6%. This was thanks to consumer spending remaining "resilient".

Adairs expects to open four to six new Adairs stores in FY23 and two to three new Focus stores. The ASX dividend share forecasts FY23 earnings before interest and tax (EBIT) to be between $75 million and $85 million.

On Commsec, the projection is that Adairs could pay an annual dividend per share of 18 cents with a grossed-up dividend yield of 11%.

With a $10,000 investment, that translates to an annual passive income of $1,100 in year one.

The post 2 ASX dividend shares that could generate $1,000 annual income with just $10,000 appeared first on The Motley Fool Australia.

There aren't too many ASX shares that have seen as much volatility as Adairs over the last year and a half. Since June 2021, its share price has shed around 50%.

Although since 28 September 2022, the Adairs share price is up 40%.

But from 1 February 2023, the ASX dividend share has dropped 17%.

I think such share price changes give investors the opportunity to buy into the business for a much cheaper price.

Not only does a lower share price mean better value, but it also pushes up the prospective dividend yield.

Let's have a look at Adairs' dividend estimates to FY25.

How much passive income is this ASX 300 dividend share going to pay?

I think that the first half of FY23 will be another solid period for the homewares and furniture retailer.

The fact that the first half of FY22 was impacted by lockdowns could mean that HY23 shows solid revenue growth, which hopefully translates into profit growth.

In FY23, Adairs could pay an annual dividend per share of 18 cents, Commsec numbers suggest. That would translate into a grossed-up dividend yield of 10.6%. The dividend alone could help deliver a market-beating return this year — if the Adairs share price doesn't fall.

Estimates suggest that earnings per share (EPS) could rise to 35 cents by FY25. This could fund a dividend per share of 24.5 cents, which would translate into a grossed-up dividend yield of 14.4%. To get a dividend yield of 10%, excluding the franking credits, would be a very large return.

Can Adairs shares achieve growth?

That's the key question for 2023 and the medium term. The Reserve Bank of Australia (RBA) continues to crank up the interest rate, which is aimed at dampening consumer spending so that inflation is reduced.

For interest rates to fall again, economic conditions have to cool down.

But I think that while Adairs' per-store profit may be hit this year, I like the company's plans that it has to grow the business.

The ASX dividend share is upsizing stores (larger stores are more profitable). It's planning additional stores for Adairs and its Focus on Furniture brand while Mocka (its online-only furniture business) will start selling furniture in stores (which could unlock great synergies with Focus on Furniture). It's also working on improving efficiencies.

For dividend income alone, this company could be one to watch.

The post This ASX 300 dividend share is projected to pay a 14% yield by 2025 appeared first on The Motley Fool Australia.

I think that investing in ASX shares is one of the best ways to grow our net worth. Many leading companies on the ASX make good profits, but plenty of them also pay dividends.

Australian companies have the added benefit of attaching franking credits to dividends that are paid, boosting the after-tax returns.

Start by saving

Investors don't need a lot of money to start investing in ASX shares. You can open a share trading account with as little as $500. However, it could make more sense to invest more than $500 at one time so that the brokerage fee is a smaller percentage of the cost.

Bank accounts are finally offering better interest rates, with good ones offering a rate of more than 3%. While we may want to invest our money as soon as possible, our cash can make a decent return while it builds.

Putting aside $30 a week translates to a yearly total of $1,560. Saving this amount each week may be easy for some people and a task for others. It may involve finding cheaper alternatives for products or services, getting extra income from a part-time job, or whatever it takes.

Begin investing

Investing that $1,560 into an ASX share that pays a 5% dividend yield would make $78 of annual dividends in year one. Picking a share with a dividend yield of 10% would generate $156 of annual dividend income. That's not bad for the start of a second income.

There are some quality blue chips that pay dividend yields of around 5% to 7%, such as Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). These are the sorts of names that could do well with a long-term investment strategy.

Investors may consider ASX shares with higher dividend yields than that, but ideally, those names could grow earnings over the long term. Companies with very high dividend yields include Adairs Ltd (ASX: ADH), Shaver Shop Group Ltd (ASX: SSG), Best & Less Group Holdings Ltd (ASX: BST) and Pacific Current Group Ltd (ASX: PAC).

The second income can benefit from compounding

One year of investing is unlikely to unlock all of the passive income that investors are looking for.

Starting off with $75 of annual income after year one is good. Building that to $150 in year two, $225 in year three and so on, by continuing to invest, would build an impressive stream of dividends.

Good businesses tend to keep growing their profit and dividends. If a $100 dividend payment grows by 5% each year because the company increased the dividend, it would be $105 in the second year, $110.25 in the third year, $115.76 in the fourth year and so on.

Investors can benefit from organic dividend growth from their investments, as well as adding more money over time.

The more time we give — and the more money we add — to our investment portfolio, the bigger the dividend cash flow that can be created.

The post Here's how I'd start building a second income this February, for $30 a week appeared first on The Motley Fool Australia.

Now, don't get me wrong. Investing $2,400 in the first 12 months isn't suddenly going to unlock $20,000 of annual dividends. It will take some time, but I believe that it's possible.

Compounding is a very powerful financial force, which can enable smaller amounts to grow into much larger amounts. Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't…pays it.

For example, using a compound interest calculator, investing $200 a month for 40 years, returning an average of 10% per annum, turns into $1.06 million. That only requires $96,000 of money from the investor – the rest (in this example) comes from compounding returns.

But, I don't think someone needs $1 million to make $20,000 of annual income. A portfolio with a yield of 4% would only need to be half the size ($500,000) to make $20,000, while a 6% yield would only need to be $333,334 in size to make $20,000.

How I'd invest in ASX shares

There are a few principles that I'd take into this investing plan.

First, I'd take a brave attitude when it comes to market crashes. Volatility regularly happens. If I'm invested in good businesses, a temporary dip (even a big one) won't bother me. In fact, I would see lower prices as an opportunity to buy, rather than panic and sell. It's during those times that the best prices can be found.

Second, I would want to consistently invest, through the ups and downs into the best opportunities I could see with a dollar cost averaging (DCA) strategy. While share prices are always changing, I think there'll always be at least one idea that could be a good opportunity.

Third, I'd only invest in businesses that seem as though they have a good potential to grow earnings and dividends. I think it's the businesses that are growing their underlying value that have the best chance of achieving share price growth and good dividends over time.

For example, several years ago I invested in Altium Limited (ASX: ALU) shares when the dividend yield was more than 3%. Since then, the dividend (and profit) has grown enormously and my yield-on-coast is much higher. In 2014 it paid an annual dividend of 12 cents per share and in FY22 it paid an annual dividend of 47 cents per share.

Some of the names I believe can provide a good combination of dividends and growth in the coming years include Adairs Ltd (ASX: ADH), Premier Investments Limited (ASX: PMV), Beacon Lighting Group Ltd (ASX: BLX), Lovisa Holdings Ltd (ASX: LOV), Healthia Ltd (ASX: HLA), Bailador Technology Investments Ltd (ASX: BTI) and Propel Funeral Partners Ltd (ASX: PFP).

The post How I'd invest $200 a month in ASX shares to make a $20,000 passive income for life appeared first on The Motley Fool Australia.

Businesses that have good dividend yields and a compelling future could be options to unlock investment cash flow.

While some companies have high yields and could achieve a lot of income very quickly, there are others that could deliver solid growth in the coming years.

So, I'll offer up a few names as ideas for each strategy.

Instant big passive income

If I'd just won the lottery and I were looking to instantly generate a lot of passive dividend income, then carefully choosing high-yielding ASX dividend shares could be one way to go.

The higher the dividend yield, the less reliable that dividend income can be. However, if the business is trading on a very low multiple of its earnings, meaning it has a low price/earnings (P/E) ratio, then it could pay a very good dividend yield. I would only choose ideas that look like they could grow earnings in the coming years.

There are a few names, at the current prices, that I'd look to achieve a dividend yield of close to 10% or higher.

I think that Shaver Shop Group Ltd (ASX: SSG) could be an effective pick. It's exposed to a growing beauty and personal care market, which is helped by a growing Australian population. It's expanding its product range and increasing the number of stores across Australia and New Zealand.

The business is expected to grow its earnings each year from FY23 to FY25 according to Commsec numbers. At the current Shaver Shop share price it's valued at under 10 times FY23's estimated earnings with a possible FY23 grossed-up dividend yield of 12.5%.

Adairs Ltd (ASX: ADH) is another ASX retail share that's predicted to grow its earnings and dividend each year between FY23 to FY25. The furniture and homewares business has plans to grow its store network, upsize some existing Adairs stores, expand its product ranges and increase the number of members.

Using Commsec numbers, it's valued at under 10 times FY23's estimated earnings with a potential grossed-up dividend yield of 9.3%.

GQG Partners Inc (ASX: GQG) is another interesting ASX dividend share for potential passive income. The business has guided that it's going to pay 90% of its distributable earnings to investors each year.

It's a US fund manager that is regularly attracting more fund inflows and achieving good returns on its existing funds. GQG is also looking to expand geographically, in places like Australia and Canada.

By FY25 it could be paying a dividend yield of around 10% according to estimates on Commsec.

A portfolio worth $500,000 could generate $50,000 of income if it had a 10% dividend yield.

Long-term dividend growth

I also believe that there are some very compelling ASX shares that could deliver long-term value creation while also growing the income payments to shareholders. This could help achieve strong annual passive income after a number of years of investing.

While ASX dividend shares may not achieve the strongest capital growth, the good ones could achieve good compounding growth over the long term.

Brickworks Limited (ASX: BKW) already has a record of not cutting its dividend for around 45 years. I like the impressive industrial properties that are being built on excess Brickworks land. The large exposure to Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares can also help grow Brickworks' cash flow and the underlying value in the coming years.

Lovisa Holdings Ltd (ASX: LOV) is a retailer that sells affordable jewellery to younger shoppers. It already has a global store base, but this number could expand significantly, particularly if it's able to grow in places like Europe, the US, China (including Hong Kong) and India. I think earnings could grow very strongly over the rest of the 2020s.

Universal Store Holdings Ltd (ASX: UNI) is an apparel retailer that's focused on the younger demographic. I think this segment of the market may be less affected by a possible recession compared to the general retail segment. The business has plans to grow its store network and I like that it's also looking to expand with other brands.

I believe these three businesses are just a few of the names that could help deliver passive income and good capital growth over the coming years for investors.

The post Which ASX dividend shares I'd buy now to target $50,000 of annual passive income appeared first on The Motley Fool Australia.

Let me show you what I mean.

If a company has a dividend yield of 5%, but then its share price drops by 10%, the yield becomes 5.5%. If the share price falls 20% then the yield becomes 6%.

What we've seen over the past year is inflation and interest rates pummelling various asset classes. Some areas of the share market haven't escaped that pain.

But, large share market declines don't happen very often, so I'd say this is a rare opportunity for investors to grab some businesses with much higher yields than they normally offer.

Here are some of the areas where I'm seeing ASX income stock opportunities.

ASX retail shares

In theory, higher interest rates are meant to push down the value of most assets.

But, many retailers have been particularly hit with the prospect of the economic situation hurting their sales and earnings.

However, while the short-term may be difficult, I think the valuation of some retailers means the yields could be very high, such as Adairs Ltd (ASX: ADH), Accent Group Ltd (ASX: AX1), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Limited (ASX: NCK).

Quality property stocks

It's understandable that some ASX property shares have been hit hard as interest rates jumped higher.

Real estate investment trusts (REITs) are suffering from the double whammy of pressure on property valuations and debt being more expensive.

But, the higher rate of inflation is also boosting their rental income, which is supportive for valuations and distributions to investors.

However, the higher interest rates could cause pain to riskier and highly leveraged players in the property space. So, I'd be careful about which names to choose.

If I had to pick a few names, it would largely be due to their quality tenants and the length of the leases on the contracts. They would be: Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF) and Brickworks Limited (ASX: BKW). Brickworks has an impressive asset base, it doesn't rely on its building products earnings to fund the dividend.

Fund managers

With the big hit to various asset classes over the last twelve or so months, funds under management (FUM) have taken a significant hit.

However, I think that once the interest rates stop rising, investor confidence could start returning. That could lead to generally-rising asset prices and a return of good FUM inflows as well. That could make fund managers good ASX income stocks at this level.

Active fund managers do face the headwind of competition from low-cost exchange-traded funds (ETFs). But, the good performing ones could do well, particularly from the lower valuations we're seeing.

With pretty high dividend payout ratios, I think some fund managers could pay very good dividend income in the next few years, including Pinnacle Investment Management Group Ltd (ASX: PNI), GQG Partners Inc (ASX: GQG) and Pacific Current Group Ltd (ASX: PAC).

The post ASX income stocks: A once-in-a-decade chance to get rich? appeared first on The Motley Fool Australia.

The All Ords is an index of approximately 500 of the biggest businesses listed on the ASX.

Typically, the index's performance is heavily influenced by the returns of the biggest companies, because they make up such a large percentage of the All Ords.

I'm talking about names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Other All Ords ASX shares that have sizeable positions in the index include Woodside Energy Group Ltd (ASX: WDS), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

Here are my thoughts on some of the sectors.

ASX tech shares

While none of the tech names are among the biggest holdings, collectively the way they were punished in 2022 did have an effect on the All Ordinaries. Just look at how far the Xero Limited (ASX: XRO) share price dropped last year.

Higher interest rates may have been the key culprit for hurting the valuations last year. But, I think these heavily hit ASX tech share names could look like opportunities to investors when interest rates finally stop going up, if not before.

Some of the businesses that saw the biggest declines in 2022 could have the best chance of outperformance during the rebound. Names with attractive long-term revenue growth outlooks include Xero, Megaport Ltd (ASX: MP1), Frontier Digital Ventures Ltd (ASX: FDV) and Life360 Inc (ASX: 360).

Resource shares

On Friday I outlined my thoughts in a separate article regarding S&P/ASX 200 Index (ASX: XJO) mining shares.

I suggested that it's likely to be a good year for many ASX 200 mining shares with China coming out of lockdowns. This could be good news for All Ords ASX shares iron ore miners, copper miners and other commodities if strong Chinese buying returns.

Unless Russian energy production is reintegrated back into the global system in 2023, I can't see ASX coal shares or ASX energy shares having a bad year either.

The global demand for lithium still seems promising for the coming years, so I think it could be a good year of cash flow for ASX lithium shares.

ASX bank shares

The banking sector is going through rapid change with the Reserve Bank of Australia (RBA) interest rate now much higher than it was a year ago.

All Ords ASX bank shares are increasing interest rates faster for borrowers than savers, so it's increasing their profitability. I think this has been a good boost for share prices of names like Westpac already.

I think bigger profits and dividends are likely in 2023. I'm not sure if the share prices can rise much more from here. It may depend on when banks start reporting an increase in arrears amid the higher interest rates – a large increase in arrears could worry investors. A small rise could be positive and allay fears.

All Ords ASX retail shares

Some areas of retail are seen as cyclical. People need to keep buying food, but new TVs and new cars may be seen as less essential.

However, the share price reaction is another part of the equation. A number of ASX retail shares have fallen significantly. I don't believe that retail conditions are going to seem tough forever.

So, I believe names like Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY), Adairs Ltd (ASX: ADH) and Universal Store Holdings Ltd (ASX: UNI) could be longer-term opportunities.

By the end of 2023, the outlook could be more positive for retailers, compared to today.

Foolish takeaway

Overall, I think it's going to be a positive year for All Ords ASX shares, particularly when including the dividend income.

I wouldn't be surprised to see tech as the best-performing sector this year after the difficult year last year.

My investment strategy will continue to be to find ASX shares I think can perform over the long term.

The post My top predictions for ASX All Ords shares in 2023 appeared first on The Motley Fool Australia.

To say that the Adairs Ltd (ASX: ADH) share price has been heavily sold off of late is a bit of an understatement.

Adairs shares have had a fairly depressing 18 months or so. Back in mid-2021, stocks in the company were flying, having just hit a new record high of almost $5 a share. Yesterday, the ASX 300 retailer closed at $2.80 a share. That's a plunge of more than 40% from those highs we saw just a year and a half ago:

But have Adairs shares been oversold? That's a very different question. Clearly, the market thought that they were oversold, given the recovery Adairs has embarked upon of late.

Back in June last year, Adairs shares hit a new 52-week low of $1.65 each. At the share price of $2.80 that the company closed at yesterday, Adairs is almost 70% above that low.

But are Adairs shares still oversold and thus have further room to climb?

Is ASX 300 retailer Adairs still undersold today?

Well, one ASX broker thinks so. As my Fool colleague James covered yesterday, Adairs has been rated as a buy by ASX broker Jarden. Jarden has given the homewares retailer a 12-month share price target of $3.28. That would give investors a further upside of 17% from today's pricing if realised.

Jarden liked what it saw in Adairs' annual general meeting last year, in which the company announced that its sales over the first four months of FY2023 were up by 7.6% compared to the same period in FY2022.

The broker is also expecting Adairs to jack its dividends back up over the next two financial years. Adairs forked out 18 cents per share in FY2022 (down from 24 cents in FY2021), which Jarden expects to be repeated in FY2023.

However, by FY2024, the broker reckons Adairs will be in a position to fork out 22 cents per share.

Today, Adairs has a trailing, fully franked dividend yield of 6.43%. But if the company does pay out 22 cents per share in FY2024, it would have a forward yield of 7.86% at the current share price. That could well make this ASX 300 dividend share worth buying at today's pricing.

The post One oversold ASX 300 dividend share (with a 6% yield) to buy now appeared first on The Motley Fool Australia.