Are you wanting to make some new additions to your portfolio?

If you are, then analysts think the two ASX 200 shares listed below could be worth considering. Here's why these shares are rated as buys:

Altium Limited (ASX: ALU)

The first ASX 200 share that could be a great buy and hold option is Altium.

Altium is a software company that focuses on electronic design systems for 3D printed circuit board (PCB) design and embedded system development. It is used by design teams of all shapes and sizes. This includes the likes of BAE Systems, Dell, Microsoft, NASA, and Tesla.

Thanks to favourable industry tailwinds and its leadership position, management is forecasting strong revenue growth in the coming years. It is is aiming to achieve US$500 million in revenue by 2026, which will be more than double FY 2022's revenue of US$220.8 million.

Morgan Stanley is a fan of the company. It currently has a buy rating and $43.50 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat could be another ASX 200 share to buy and hold.

It is a gaming technology company with a portfolio of industry-leading poker machines, a lucrative digital business, and a fledgling real money gaming business. The latter recently launched with a deal with BetMGM.

Goldman Sachs is confident in the company's long term outlook. This is due to Aristocrat "holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now launching into the growing iGaming market."

Goldman has a buy rating and $42.80 price target on its shares.

The post Buy and hold these ASX 200 shares: brokers appeared first on The Motley Fool Australia.

Are you wanting to add a growth share or two to your portfolio?

If you are, then analysts at Goldman Sachs think the two listed below could be worth considering. Here's why these growth shares are rated as buys:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat could be an ASX growth share to buy according to the broker. It is a gaming technology company best-known for its industry-leading poker machines. But it also has a lucrative digital business, named Pixel United, and recently expanded into the merging real money gaming market with a deal with BetMGM.

In addition, management invests heavily in research and development each year to cement its leadership position and position it for growth.

Goldman Sachs is confident in the company's outlook and has put a buy rating and $42.80 price target on its shares. It commented:

We view ALL as strategically the most diversified, holding a top 3 spot in slot machine sales in the US, having a strong digital gaming offering, and now launching into the growing iGaming market. While short-term headwinds persist in the form of supply chain, spend for longer term growth etc., we believe that the longer-term growth outlook remains strong.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that Goldman Sachs is bullish on is Temple & Webster. It is Australia's leading pure-play online retailer of furniture and homewares.

Goldman currently has a buy rating and $6.50 price target on the company's shares.

The broker believes the company is well-placed to be a big winner from the shift to online shopping. Especially given that the shift is still in its infancy for Temple & Webster's target categories. It commented:

We believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment. In our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post 2 ASX growth shares to buy: Goldman Sachs appeared first on The Motley Fool Australia.

Wouldn't it be nice to grow your ASX share portfolio from $20,000 to $1 million?

Well, the good news is that this is entirely possible. All you need is time, patience, a portfolio of high-quality ASX 200 shares, and compounding.

How to turn $20k into $1 million with ASX 200 shares

Historically, the stock market has provided investors with an average annual return of approximately 10% per annum.

And while there is no guarantee that it will continue to generate returns of this nature in the future, if it were to do so, your single $20,000 investment would grow into $1 million after 41 years.

Maybe that's too long for you? If it is, don't worry. All you need to do is add to your portfolio each year and you'll cut down the time it takes to reach your million-dollar target.

For example, if you were able to invest $20,000 each year, your portfolio would grow to our target value after 17 years.

Alternatively, starting with a $20,000 investment and then investing $10,000 into high-quality ASX 200 shares each year would get you to $1 million in 22 years if you averaged 10% per annum.

Which shares should you buy?

I would aim to buy quality over quantity and focus on building a portfolio filled with ASX 200 shares that have the following characteristics:

• Competitive advantages
• Fair valuations
• Strong long-term growth prospects
• Sizeable addressable markets
• Growing dividends

A few ASX shares that spring to mind immediately are gaming technology company Aristocrat Leisure Limited (ASX: ALL), hearing solutions specialist Cochlear Limited (ASX: COH), and sleep treatment company ResMed Inc (ASX: RMD).

Over the last decade, these ASX shares have generated average annual total returns of 26.7%, 13.4%, and 22.4%, respectively. And based on their qualities, I would not be surprised to see them beat the market over the next decade.

The post How I'd invest $20,000 in ASX 200 shares to aim for a million appeared first on The Motley Fool Australia.

Are you looking to add some growth shares to your portfolio this month?

If you are, three ASX growth shares that could be worth considering are listed below. Here's why analysts are tipping them as buys:

Altium Limited (ASX: ALU)

The first ASX growth share to consider buying is Altium. It is an an industry-leading printed circuit board (PCB) design software provider. PCBs are the boards you find inside almost all electronic devices and are integral to their operation. And as they come in all shapes and sizes, specialist software is required to design them. Thanks to Altium's dominant position in the market, management appears confident in its outlook and is aiming to more than double its revenue to US$500 million by 2026.

Morgan Stanley is positive on the company. It currently has a buy rating and $43.50 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to consider buying this month is Aristocrat Leisure. It is one of the world's leading gaming technology companies with a world class portfolio of poker machines and digital/mobile games. The latter has 5.5 million daily active users playing games such as Cashman Casino, Gummy Drop, EverMerge, Mech Arena, and RAID. Aristocrat is also undertaking a major (recently extended) share buyback and has expanded into the real money gaming market with a deal with MGM.

Citi is a fan of the company and has a buy rating and $41.20 price target on its shares.

Life360 Inc (ASX: 360)

A final ASX growth share that has been named as a buy is Life360. It is a location technology company behind the eponymous Life360 app, which has over 40 million active users. This app offers families features such as communications, driver safety, and location sharing. Goldman Sachs is very bullish on the company due to its leadership position and massive market opportunity. It notes that "Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US."

The broker currently has a buy rating and $7.90 price target on the company's shares.

The post Buy these 3 ASX growth shares this month: experts appeared first on The Motley Fool Australia.

The Aristocrat Leisure Limited (ASX: ALL) share price is charging higher on Friday.

In morning trade, the ASX 200 gaming technology company's shares are up 1.5% to $36.48.

Why is the Aristocrat share price rising?

Investors have been bidding the Aristocrat share price higher today in response to the release of an update relating to the company's on-market share buyback.

According to the release, the ASX 200 company has decided to extend its current on-market share buyback program, as part of its ongoing capital management strategy.

With $478 million of shares bought back since June 2022, the Aristocrat Board has now approved an increase in the scale of the on-market share buyback program to allow up to a further $500 million in shares to be bought back over an additional 12-month period.

Though, as per the current buyback, it will continue to be conducted on an opportunistic basis and Aristocrat reserves the right to vary, suspend, or terminate the on-market share buyback program at any time.

Aristocrat CEO Trevor Croker said:

With the A$500 million on-market share buy-back program previously announced in May 2022 nearing completion, and our consistently strong cash flow generation, we are able to continue to pursue a mix of returns to shareholders via dividends and share buy-backs while also investing in strategic acquisitions and organic growth initiatives.

Trading update

In other news, Aristocrat has provided the market with a trading update at its annual general meeting.

The good news is that its performance in the current financial year has been "encouraging" and in line with its plans to date.

Gaming has started the year positively, particularly in North America where its major customers' capital commitments remain supportive. Pixel United's performance has been resilient and its fledgling real money gaming business, Anaxi, recently signed a content agreement with BetMGM.

The company also revealed that Anaxi is launching a first-of-its-kind mobile on-premise solution for US tribal gaming operators. This product allows patrons to connect with and play Aristocrat's Class-II gaming content via their mobile devices while on trust land.

All in all, Aristocrat "expects to deliver NPATA growth over the full year to 30 September 2023, assuming no material change in economic and industry conditions."

The post Guess which ASX 200 share is giving another $500 million back to its shareholders appeared first on The Motley Fool Australia.

Are you looking to add some growth shares to your portfolio?

If you are, listed below are two ASX 200 growth shares that analysts are tipping as buys. Here's what you need to know about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 growth share that has been tipped as a buy is Aristocrat Leisure. It is one of the world's leading gaming technology companies.

It owns a portfolio of world class poker machines and a growing digital business. The former continues to win market share thanks to their popularity with casinos and players. Combined with the strong recurring revenues being generated by digital/mobile games such as Raid and its recent expansion into the real money gaming market, Aristocrat has been tipped to continue its solid earnings growth over the coming years.

Citi is positive on the company and notes that "digital industry bookings have flattened out while Aristocrat continues to outperform."

As a result, it recently reaffirmed its buy rating and $41.20 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 growth share that could be a top option for investors right now is Treasury Wine.

It is one of the world's leading wine companies with a high quality portfolio of wine brands including Penfolds, 19 Crimes, and Wolf Blass.

After going through a difficult period due to being effectively kicked out of China, Treasury Wine has bounced back strongly. The good news is that analysts at Morgans believe the company's growth is only just starting. In fact, its analysts are expecting "TWE to deliver double digit earnings growth over 2H23/FY24/FY25."

The broker has an add rating and $15.05 price target on its shares.

The post 2 stellar ASX 200 growth shares to buy now: analysts appeared first on The Motley Fool Australia.

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $43.00 price target on this gaming technology company's shares. This follows news that Aristocrat's real money gaming (RMG) business has signed a deal with BetMGM for digital slot content. BetMGM believes the deal will makes its online casino the best destination for players. Morgan Stanley believes this is a big positive for Aristocrat and its fledgling RMG business. The Aristocrat share price is trading at $35.70 on Monday.

Healthco Healthcare and Wellness REIT (ASX: HCW)

A note out of Morgans reveals that its analysts have retained their add rating on this property company's shares with an improved price target of $2.06. This follows the release of the company's half year results, which revealed a solid operational performance. Morgans appears positive on the future, highlighting its active development pipeline (Springfield and Proxima) and the uncommitted developments which include strategic partners. The Healthco share price is fetching $1.55 today.

Objective Corporation Limited (ASX: OCL)

Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this software company's shares to $14.80. Although Objective Corp's half year results came in below expectations on both ARR growth and costs/margins, Goldman believes the company has reached an earnings trough after making the decision to reduce its one-off revenue sources and reinvest into growth initiatives. The Objective Corp share price is trading at $12.48 this afternoon.

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

If you're wanting to get exposure to the rebounding tech sector, then read on!

The two ASX tech shares listed below have recently been tipped as buys and named on the best ideas list of Morgans.

Here's why it is bullish on these tech shares:

Aristocrat Leisure Limited (ASX: ALL)

Morgans is very positive on this gaming technology company and has put an add rating and $43.00 price target on its shares.

The broker likes Aristocrat due to its strong balance sheet, positive organic growth outlook, capital light operation, and M&A optionality. The latter is underpinned by almost $4 billion of available liquidity. The broker explained:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses;

(2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

NextDC Ltd (ASX: NXT)

Another ASX tech share that Morgans is bullish on is NextDC. It is a leading data centre operator that owns a growing portfolio of world class centres across the country. The broker has an add rating and $13.30 price target on its shares.

Morgans expects NextDC to benefit from very strong structural demand for data centre services and is forecasting strong operating earnings growth in the coming years. It commented:

NXT should deliver another good set of results in FY23 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres are now open.

Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

The post Broker names the best ASX tech shares to buy now appeared first on The Motley Fool Australia.

Many ASX growth shares, particularly those in the tech sector, took an absolute pummelling last year. But some experts are saying right now could be "the beginning of a rebound" for growth stocks.

The prospect of rising inflation, however, still looms large. So the market's appetite for ASX cash-eating machines is definitely not what it once was.

So how can investors get on board the growth train whilst minimising their risk exposure? The answer is to do a little homework on the growth stocks you'd like to buy before diving in.

Our Foolish writers have done some homework of their own and these are the ASX growth shares they reckon are well worth a look at in February:

6 best ASX growth shares for February 2023 (smallest to largest)

Vmoto Ltd (ASX: VMT), $103.52 million

IkeGPS Group Ltd (ASX: IKE), $151.75 million

BetaShares Global Cybersecurity ETF (ASX: HACK), $624.96 million

Johns Lyng Group Ltd (ASX: JLG), $1.51 billion

Domino's Pizza Enterprises Ltd (ASX: DMP), $6.44 billion

Aristocrat Leisure Limited (ASX: ALL), $23.92 billion

(Market capitalisations as at market close on 7 February 2023)

Why our Foolish writers love these ASX growth stocks

Vmoto Ltd

What it does: Vmoto manufactures and sells scooters worldwide, with a strong focus on electric-powered, two-wheel vehicles.

By Bernd Struben: Vmoto's e-scooters aren't like the rentals you see on urban footpaths. Rather, they are high-quality products, even suitable for commercial use.

With the world moving towards zero emissions, I believe the electric scooter phenomenon is likely only in its early days. And, in my opinion, this makes Vmoto a promising ASX growth share.

The Vmoto share price is down by around 12% in 2023, which could represent a good buying opportunity. And, I believe the market appears to have underappreciated some strong Q4 2022 figures.

These included a 19% increase in total units sold from FY21 and a 58% increase from FY20. As at 31 December, the company had a net cash position of $28 million, with no bank debt.

Motley Fool contributor Bernd Struben does not own shares in Vmoto Ltd.

IkeGPS Group Ltd

What it does: Based in New Zealand, Ike predominantly services customers located in North America with software and hardware solutions that help collect, analyse, and manage assets associated with electricity and communication networks.

By Mitchell Lawler: The growth companies that get me really excited are the ones operating in traditionally stagnant and 'boring' industries. These are often enormous, mature markets that are ripe for innovation.

IkeGPS brings cloud-based software to utility providers – making power pole assessment faster, safer, and easier. The offering is clearly a success with its customers, with Tuesday's third-quarter update showing a 134% increase in year-to-date revenue to $23.3 million.

I believe the economics of the business are highly attractive. Namely, the 'platform transactions' and 'platform subscriptions' revenue streams.

As Ike continues to roll out its offering, I think the small marginal cost of providing the software to more customers means this company could be extremely profitable in the future. Not to mention the massive tailwinds associated with the deployment of 5G and maintenance of aging infrastructure.

Motley Fool contributor Mitchell Lawler does not own shares in IkeGPS Group Ltd.

BetaShares Global Cybersecurity ETF

What it does: This exchange-traded fund (ETF) invests in a basket of global shares all involved in the cybersecurity industry.

By Sebastian Bowen: When I put my mind to thinking about which trends might be growth engines of the next decade, cybersecurity tops my list. Last year was a potent reminder of the importance of cybersecurity in our increasingly digital world.

It's pretty obvious that companies, individuals, and governments will all be paying plenty of cash for the foreseeable future to secure both their own and their customers' data.

The BetaShares Global Cybersecurity ETF is, I believe, a perfect way to capitalise on this long-term tailwind. The fund holds some of the top cybersecurity companies in the world, including names like Fortinet, Cisco, Okta, and CrowdStrike.

As of 31 December, this ETF had returned an average of 14.15% per annum since its inception in 2016. With cybersecurity growing ever more important, I think there is a good chance this stellar performance track record can continue in 2023 and beyond

Motley Fool contributor Sebastian Bowen does not own units of the BetaShares Global Cybersecurity ETF.

Johns Lyng Group Ltd

What it does: The company describes itself as an integrated building services group that delivers building and restoration services across Australia and the US. The core business is rebuilding and restoring properties and contents after damage from insured events, including impact, weather, and fire events.

Johns Lyng's client base includes major insurance companies, commercial businesses, local and state governments, body corporate/owner corporations, and retail customers.

By Tristan Harrison: The Johns Lyng share price has dropped close to 20% since early December and more than 30% since April.

That's despite the company projecting that its FY23 business-as-usual (BaU) revenue will rise by 27% to $930 million, and its FY23 BaU earnings before interest, tax, depreciation and amortisation (EBITDA) will increase by 43% to $93 million.

I think these numbers demonstrate that profit is scaling faster than revenue, with rising margins – an attractive feature.

I believe Johns Lyng is executing well on expanding its presence in Australia and the US. It is also growing its bolt-on services. Plus, it's a beneficiary of the unfortunate increase in more costly climate impacts, such as the floods in Victoria and NSW last year.

Motley Fool contributor Tristan Harrison does not own shares of Johns Lyng Group Ltd.

Domino's Pizza Enterprises Ltd

What it does: Domino's is a fast-food staple around the globe. It operates a network of more than 3,100 stores across 10 countries and has plans to continue growing its slice of the pizza pie in the years to come.

By Brooke Cooper: When I look for growth shares, I aim to seek out companies I think are capable of growth in nearly all economic environments. I believe Domino's fits that bill.

The company operates in the discretionary space, and the 'affordable' end at that.

While its price-to-earnings (P/E) ratio is relatively high right now – at around 39 times – I think the pizza chain's intended growth trajectory is worth it.

Domino's grew its footprint by 450 stores in FY22 and plans to better that in FY23. And I'm not alone in my bullishness.

Morgans has slapped the stock with a $90 price target – a potential 25% upside at the time of writing.

Motley Fool contributor Brooke Cooper does not own shares of Domino's Pizza Enterprises Ltd.

Aristocrat Leisure Limited

What it does: Aristocrat Leisure is a gaming technology company that owns a portfolio of industry-leading poker machines and digital games.

By James Mickleboro: My ASX growth share to buy this month is ASX 200-listed Aristocrat Leisure.

I believe the gaming technology company is well-positioned to deliver solid, long-term growth thanks to its leadership position in a growing market, its recent expansion into the potentially lucrative real-money gaming sector, and its very strong balance sheet.

With the company sitting on a mountain of cash right now, it has the opportunity to potentially boost growth with earnings-accretive acquisitions or return funds to shareholders via buybacks.

Motley Fool contributor James Mickleboro does not own shares of Aristocrat Leisure Limited.

The post Top ASX growth shares to buy in February 2023 appeared first on The Motley Fool Australia.

In afternoon trade, the ASX lithium share is up a whopping 42% to 27 cents.

Why is this ASX lithium share rocketing?

Investors have been fighting to get hold of this ASX lithium share following the release of a drilling update from Pocitos 7 in Argentina.

According to the release, drilling at Pocitos 7 in the province of Salta, Argentina has concluded at 420 metres with a packer test intercepting a deep aquifer from 370 metres to 400 metres.

The release notes that a flow test was conducted through a 49mm pipe with a submersible pump and achieved a pumping rate in excess of 2,000L an hour.

Brine samples were then obtained over a three-hour pumping period, with separate sample lots then sent to SGS and Alex Stewart laboratories in Salta. In addition, a sample was sent to the University of Melbourne for testing using the Ekosolve direct lithium extraction process that the company has licenced.

Laboratory assay results are expected in 7 to 14 days.

'Extremely pleased'

C29's director, Jeremy King, was very pleased with the news. He commented:

We are extremely pleased to intercept brines and have hit a 30m plus aquifer zone at Pocitos 7 and have such a healthy pump rate particularly given the size of the pipe and pump utilised. The team are currently conducting SG measurements on the brine and we await the laboratory analysis to determine lithium content. Subject to those results, we intend to continue our exploration program with a view to rapidly establishing a mineral resource estimate at Pocitos 7.

The post Why did this ASX lithium share just rocket 42%? appeared first on The Motley Fool Australia.

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

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $43.00 price target on this gaming technology company's shares. Morgan Stanley has been looking at industry data and believes that the company's Pixel United business is performing ahead of expectations. The Aristocrat share price is trading at $36.28

Insurance Australia Group Ltd (ASX: IAG)

A note out of Citi reveals that its analysts have retained their buy rating but cut their price target on this insurance giant's shares to $5.30. This follows the release of a first half update which fell short of Citi's expectations. While disappointed with the update, the broker believes underlying margin trends are positive, particularly given price rises and easing inflation. As a result, it believes the company's shares are attractive following recent weakness. The IAG share price is fetching $4.59 this afternoon.

Liontown Resources Ltd (ASX: LTR)

Analysts at Macquarie have retained their outperform rating and $2.60 price target on this lithium developer's shares. This follows news that open pit mining has started at the Kathleen Valley lithium project. And while Macquarie continues to expect production to commence in the middle of next year, it sees revenue-generating opportunities from direct shipping ore (DSO) before then. The broker also notes that this DSO is not included in its estimates, so poses upside risk to them and its valuation. The Liontown share price is trading at $1.49 on Monday.

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

Here's why they are bullish on these shares:

Aristocrat Leisure Limited (ASX: ALL)

Morgans is very positive on this gaming technology company and sees it as an ASX 200 growth share to buy right now. Its analysts have Aristocrat's shares on their best ideas list for February with an add rating and $43.00 price target.

The broker is expecting Aristocrat to continue its strong growth long into the future thanks to a combination of factors. It explained:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Xero Limited (ASX: XRO)

Goldman Sachs is a big fan of Xero and recently named the cloud accounting platform provider as its top ASX 200 tech pick. The broker has a buy rating and $109.00 price target on its shares.

Its analysts are positive on Xero due largely to its very strong long term growth outlook. This is underpinned by its high quality platform, the shift online, and its huge global target market of over 100 million small businesses. Goldman commented:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL). Key catalysts include: Upcoming results and opex outlook; CEO strategy update, and potential M&A.

The post These could be the best ASX 200 growth shares to buy: analysts appeared first on The Motley Fool Australia.

Well, I have some good news for you! It is possible to generate this level of monthly passive income starting with a modest $5,000 investment.

Getting started

Firstly, let's address the elephant in the room. Obviously, $5,000 isn't enough to generate meaningful monthly passive income from the off.

Even if you put those funds into New Hope Corporation Limited (ASX: NHC) shares, which are expected to provide a ridiculously good 31% dividend yield this year thanks to strong coal prices, you would be looking at income of approximately $129 a month.

Furthermore, putting all your eggs in a coal miner's basket would be a risky play.

So, what do we need to do?

What we're going to have to do is take that $5,000 and turn it into a larger sum of money to collect dividends from.

In order to have a passive income of $800 a month, you'll need annual dividends totalling $9,600.

Based on the Australian share market's historical average dividend yield of approximately 4%, this means we would need to grow our portfolio to $240,000.

Going from $5,000 to $240,000 is going to take a long time (41 years) earning an average return of 10% per annum, which is the historical average of Wall Street's S&P 500 index.

If you are happy to play the long game, then you're sorted. But if you want to speed things up, you're going to have to make some annual contributions to your portfolio.

For example, if you're able to invest $5,000 into the share market each year, you'll have grown your portfolio to just under $250,000 after 17 years if you earned the aforementioned 10% annual return.

And while it is worth remembering that past performance is not a guarantee of future returns, I would be disappointed if the market underperformed its historical average over the next couple of decades.

Which shares should you buy?

If you're happy with earning the market return, then you could simply look at buying some index-tracking ETFs such as the Vanguard Australian Shares Index ETF (ASX: VAS) or Betashares Nasdaq 100 ETF (ASX: NDQ).

Alternatively, you could look to beat the market by buying a diversified group of ASX shares that have strong business models, quality management teams, and significant long-term growth potential.

A few companies that tick these boxes for me include gaming technology company Aristocrat Leisure Limited (ASX: ALL), property listings company REA Group Limited (ASX: REA), and sleep treatment company ResMed Inc (ASX: RMD).

Finally, once your portfolio has reached the desired size, you can then change your focus from growth to income and sit back and watch that passive income roll in.

The post Need passive income? Turn $5,000 into $800 every month appeared first on The Motley Fool Australia.

Among its best ideas for February are the two ASX 200 shares listed below. Here's what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology is an ASX 200 share to buy this month according to Morgans. Its analysts are positive on Aristocrat due to its organic growth potential, solid cash conversion, and strong balance sheet. The latter provides the company with the ability to invest in growth opportunities. The broker explained:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Morgans has an add rating and $43.00 price target on Aristocrat's shares.

Qantas Airways Limited (ASX: QAN)

Morgans has added this ASX 200 airline share to its best ideas list in February. In fact, the broker has elevated Qantas to the position of its top travel stock pick under coverage. This is thanks to its near-term earnings momentum and attractive valuation. It commented:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

Morgans has an add rating and $8.50 price target on Qantas' shares.

The post Morgans names 2 of the best ASX 200 shares to buy in February appeared first on The Motley Fool Australia.

Here's what the broker is saying about these ASX 200 shares:

Aristocrat Leisure Limited (ASX: ALL)

Bell Potter is a fan of Aristocrat Leisure, which develops, manufactures and sells gaming content, platforms and systems. The broker believes that it is well-placed for medium term growth thanks to its dominant land-based market position and growing digital business. It commented:

Group revenue consists of land-based gaming (29.0%) involving the placement of gaming machines in customer venues for no upfront cost and then leasing the games/ titles for a recurring revenue stream; land-based outright sales of gaming machines (24.5%); and digital (46.5%) encompassing the monetisation of social casino and casual games/ titles. The group has a dominant position in the North American gaming industry and the land-based operations should underpin medium term growth while the digital business offers opportunities in a rapidly growing market.

CSL Limited (ASX: CSL)

Another ASX 200 share that Bell Potter rates as a buy for 2023 is biotherapeutics giant CSL. It believes the company is well-placed for growth thanks to the Vifor Pharma acquisition, increasing plasma volumes, and new product launches. The broker explained:

A leading global company in the development, manufacture, and distribution of plasma therapies as well as non-plasma biotherapeutic products and influenza related products. The recently completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency. The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.

Goodman Group (ASX: GMG)

Finally, Goodman could be a top ASX 200 share to buy in 2023 according to Bell Potter. This is due to its positive long term growth outlook thanks to the continuing growth in ecommerce and data storage. It commented:

One of the world's largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and data storage requirements as well as supply chain optimisation and the growing middle class in developing countries.

The post 3 of the best ASX 200 shares to buy in 2023: Bell Potter appeared first on The Motley Fool Australia.

Any investor smart enough to have bought Afterpay shares at their initial public offering (IPO) price of just $1 back in 2016 can attest to the potential power of ASX growth shares. 

The buy now, pay later (BNPL) stock closed its last day of trade at $66.47 on 31 January 2022, after having been acquired by US tech giant Block Inc (ASX: SQ2). With eye-popping gains of more than 6,500% in less than six years, this former darling of the S&P/ASX 200 Index (ASX: XJO) helped build serious wealth for its shareholders.

An investment of just $2,000 in the Afterpay IPO would have ballooned to a whopping $130,940 by the company's last day of trade. And that's assuming an investor held on until the final day of trade. For those savvy enough to sell out at the stock's all-time high of $160.05, an initial $2,000 investment would have been worth $318,100! 

But alas, for every Afterpay, there's been many a sorry growth-stock tale on the ASX. Like that of another BNPL player, Zip Co Ltd (ASX: ZIP), which has seen its share price dwindle from a high of more than $7 in early 2021 to around 65 cents today. So, whilst growth investing can be highly lucrative, it can also be extremely risky, especially if buying stocks based on fads without sufficient due diligence. 

On that note, we asked our Foolish contributors for their thoughts on which ASX growth shares they believe are high quality and offer significant potential upside right now. Here is what the team came up with:

6 best ASX growth shares for 2023 (smallest to largest)

Betashares Global Cybersecurity ETF (ASX: HACK), $592.43 million

Temple & Webster Group Ltd (ASX: TPW), $638.11 million

Xero Limited (ASX: XRO), $11.09 billion

IGO Ltd (ASX: IGO), $11.48 billion

WiseTech Global Ltd (ASX: WTC), $18.10 billion

Aristocrat Leisure Limited (ASX: ALL), $21.86 billion

(Market capitalisations as at market close on 23 January 2023)

Why our Foolish writers love these ASX growth shares

Betashares Global Cybersecurity ETF

What it does: The idea of this exchange-traded fund (ETF) is that it tracks an index of cybersecurity shares around the world. It owns shares in both global leaders and emerging players in the sector. It has a total of around 40 holdings.

By Tristan Harrison: 2023 could be another year of volatility and uncertainty for global stock markets, so I'm looking for investments that can grow earnings this year and beyond.

Cybercrime, sadly, is on the rise. According to the Australian Cyber Security Centre (ACSC), the number of cybercrime reports in FY22 increased by 13% year-on-year to 76,000. ACSC said the cyber security incidents it responded to were "growing in severity" as well.

This means businesses and organisations will likely continue spending more to ensure they have strong cyber defences.

According to BetaShares, the global cybersecurity market could grow from $248 billion in 2023, to $345 billion by 2026 and $479 billion by 2030. This could imply good earnings growth for the businesses within this ETF over time.

Motley Fool contributor Tristan Harrison does not own units of the Betashares Global Cybersecurity ETF.

Temple & Webster Group Ltd

What it does: Temple & Webster is an online furniture and homewares retailer, boasting 240,000 products and a subscriber base of more than a million Aussies.

By Brooke Cooper: The Temple & Webster share price has been decimated recently amid rising interest rates and 2022's economic downturn. Trading at $5.19 at the market close on Monday, it's currently around 37% lower than it was this time last year.

But there might be a silver lining. I believe the downturn has created a buying opportunity, and I'm not alone.

After suffering through the COVID-19 pandemic, Temple & Webster management expects the company could return to double-digit growth this financial year.

It's also profitable and possesses a strong balance sheet – two qualities that could help it navigate any future volatility.

Finally, Goldman Sachs tips the Temple & Webster share price to rise 44.5% to $7.50 over the coming year.

Motley Fool contributor Brooke Cooper does not own shares of Temple & Webster Group Ltd.

Xero Limited

What it does: Xero provides cloud-based accounting software to tax professionals, businesses and individuals across several markets, including Australia.

By Sebastian Bowen: Like many ASX growth shares, the Xero share price was hit hard during 2022. This company started the year trading at $141.44 but ended the year a nasty 50.3% lower at $70.27.

However, I think this is a great time to consider picking up this quality tech business. Whilst Xero's share price has tumbled, its most important metrics continue to leap higher. Over FY2022, Xero reported a healthy 29% rise in revenues, 16% subscriber growth and a 28% increase in recurring revenue.

As governments around the world continue to push taxpayers towards digital reporting, I believe Xero shares are looking compelling today.

Motley Fool contributor Sebastian Bowen does not own shares of Xero Limited.

IGO Ltd

What it does: IGO is a diversified ASX 100 metals miner with four assets, all located in Western Australia. It owns the Nova nickel-copper-cobalt mine, the Forrestania nickel mine, and the Cosmos nickel mine. It is also a 51% partner with Tianqi Lithium Corporation in the Greenbushes Lithium Mine and has 100% ownership of a downstream processing refinery that produces battery-grade lithium hydroxide.

By Bronwyn Allen: I like IGO as a growth share because it combines two of my favourite long-term investing themes: Australian mining and global decarbonisation.

Australia is a commodities powerhouse with a stellar international reputation. Why not invest in one of our economy's strongest sectors?

I prefer diversified miners with mostly Australian-based assets, so IGO fits the bill for me. I also think lithium has a long runway for growth as the world decarbonises, and IGO is one of few ASX lithium miners already producing it.

Consider this: As reported in The Australian, Wealthi economist Peter Esho says there are 1.4 billion cars in the world running on fossil fuels compared to six or seven million electric cars (EVs). The number of EVs is expected to rise to at least 150 million by 2030. The fact that IGO is not only mining lithium but processing it into battery-grade hydroxide means it's getting two bites of the EV cherry.

Motley Fool contributor Bronwyn Allen does not own shares of IGO Ltd.

WiseTech Global Ltd

What it does: Global supply chains are complex and hard to manage. Any inefficiencies along a chain can result in large financial consequences, as was demonstrated during the pandemic. WiseTech provides all-encompassing, cloud-based logistics software that optimises the journey from origin to destination.

By Mitchell Lawler: WiseTech has delivered exceptional revenue growth over the years – growing from $102.8 million in 2016 to $632.2 million in 2022. I believe the expansion is far from over.

According to WiseTech, 10 of the top 25 global freight forwarders have either rolled out or are in the process of rolling out its software. To me, this suggests there is still plenty of room for the company's customer base to expand.

WiseTech currently holds an enviable balance sheet among ASX growth shares. At the end of June 2022, the company maintained $484.3 million in cash and zero debt. This positions it attractively if headwinds do materialise and also provides low-risk optionality for future growth.

While the current price-to-earnings (P/E) ratio of 90 times eararistonings is lofty by most standards, the scalability and free cash flow generation on offer make me think it might actually be a fair price to pay in the long run.

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

Aristocrat Leisure Limited

What it does: Aristocrat Leisure is a leading gaming technology company. It owns a portfolio of world-class poker machines and mobile games. The company has also recently expanded into the rapidly growing real money gaming market.

By James Mickleboro: I believe Aristocrat is one of the highest quality growth shares on the Australian share market. You only need to look at its track record to see why. Over the last 10 years, the company's shares have generated an average total return of 27% per annum.

While past performance is no guarantee of future returns, I believe the company's positive growth outlook and attractive valuation mean its shares could provide investors with further strong returns over the next decade.

Citi is forecasting earnings per share growth of 25.5% in FY 2023. In light of this, it will come as no surprise to learn that the broker recently reiterated its buy rating and $41.20 price target on Aristocrat's shares. Aristocrat shares were trading at $33.25 at the close on Monday.

Motley Fool contributor James Mickleboro does not own shares of Aristocrat Leisure Limited.

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

To narrow things down, I have picked out two ASX growth shares that experts are tipping as buys.

Here are three reasons to buy these ASX shares:

Aristocrat Leisure Limited (ASX: ALL)

Morgans believes that this gaming technology company is a growth share to buy right now.

Its analysts have an add rating and $43.00 price target on its shares.

The broker is positive on the company due to its strong long term organic growth potential, its capital light business model, and its strong balance sheet. The latter is supporting its expansion into real money gaming (RMG).

Morgans commented:

We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.

Temple & Webster Group Ltd (ASX: TPW)

Goldman Sachs feels that this online furniture and homewares retailer could be a top option for investors.

Its analysts have a buy rating and $7.55 price target on its shares.

The broker believes that Temple & Webster is well-placed for strong long term earnings growth for three key reasons. These are market share gains, its leadership position in a retail category that is in the early stages of shifting online, and its focus on costs. It commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post 3 reasons to buy these top ASX growth shares: experts appeared first on The Motley Fool Australia.

On the list at the moment are the two ASX 100 shares listed below. Here's why the broker believes these are among the best shares to buy right now:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 100 share that Morgans is tipping as a best buy is gaming technology company Aristocrat Leisure.

The broker likes the company due to its strong balance sheet, leadership position, and real money gaming opportunity. It explained:

ALL is a global market leader in the rapidly-growing land-based gaming and mobile gaming industries. It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles, though has slowed in recent months, leading the share price down. ALL's 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly-growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Morgans has an add rating and $43.00 price target on Aristocrat's shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 100 share making the list is Australia's oldest bank, Westpac.

The broker rates this banking giant highly due to its return on equity potential. It also sees Westpac as a top option for income investors due to its fully franked dividend yield. Its analysts said:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Morgans has an add rating and $25.80 price target on Westpac's shares. It also expects a fully franked 6%+ dividend yield in FY 2023.

The post Morgans names 2 of the best ASX 100 shares to buy now appeared first on The Motley Fool Australia.

Here's why brokers think investors ought to buy them next week:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and $41.20 price target on this gaming technology company's shares. Citi has analysed digital bookings data to December and is happy with what it saw. It highlights that bookings lifted on a seasonal Christmas boost last month and that Aristocrat's Pixel United business continues to outperform. The Aristocrat share price ended the week at $33.20.

Coronado Global Resources Inc (ASX: CRN)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted their price target on this coal miner's shares to $2.25. The broker made the move after looking at the mining sector. It believes Coronado Global is a top option for investors looking for met coal exposure following China's reopening. Particularly if you're looking for dividends. Goldman is expecting strong met coal prices to allow the company to pay a 21.9 US cents per share dividend in FY 2023. This equates to a 15.5% yield at current prices and exchange rates. The Coronado Global share price was fetching $2.03 at Friday's close.

Macquarie Group Ltd (ASX: MQG)

Analysts at Morgan Stanley have retained their overweight rating and $215.00 price target on this investment bank's shares. The broker believes that Macquarie is well-placed to benefit from volatility in commodity markets. Particularly given that approximately a third of its revenue comes from its commodities business. The Macquarie share price ended the week at $178.27.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week on a high – a six-week high that is. The index lifted 0.66% today to close at 7,328.1 points. That marks a 3.07% week-on-week improvement.

Friday's gain came on the back of positive inflation data out of the United States. The nation's consumer price index slipped 0.1% in December, bringing its annual inflation rate down to 6.5%. That's good news for anyone hoping interest rates will ease.

Back home, the S&P/ASX 200 Energy Index (ASX: XJO) led the way on Friday. It rose 1.5% after oil prices lifted more than 1% overnight.

S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) shares also had a good day. The sector gained 1.4%.

Though, it wasn't such a good session for S&P/ASX 200 Consumer Staples Index (ASX: XSJ) stocks, with the sector bringing up the rear, falling 0.4%.

So, with all that in mind, let's take a look at which ASX 200 shares posted the biggest gains on Friday.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was Blackmores Ltd (ASX: BKL). It lifted 6.2% to close at $81.27 despite the company's silence.

These shares made today's biggest gains:

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

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