If you're looking to add some high quality shares to your investment portfolio, then you might want to look at the blue chip ASX 200 shares listed below.

Here's why experts are tipping these blue chip ASX 200 shares as ones to buy right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman. It is an integrated commercial and industrial property company with a world class portfolio of in-demand warehouses, large scale logistics facilities, and business and office parks.

Strong demand for its property led to the company reporting an occupancy rate of 99% during the first half. This has helped underpin solid like-for-like net property income growth again so far in FY 2023.

Goldman Sachs was impressed with its results and remains very positive on the future thanks to strong demand and its significant development pipeline. In response to its results, the broker commented:

GMG continues to demonstrate its strong platform and positioning as evident in today's result, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space. We expect solid rental growth as demand for high quality logistics space continues to outpace available supply.

Goldman has a buy rating and $25.40 price target on its shares.

Macquarie Group Ltd (ASX: MQG)

Another ASX 200 blue chip share that could be in the buy zone is this investment bank.

Macquarie has also been performing very strongly in FY 2023 despite the current economic environment. This caught the eye of analysts at Morgans, which were particularly impressed with its recent quarterly update. They said:

MQG is a quality franchise, exposed to structural growth areas, and the company has performed exceptionally well in a more difficult FY23 environment. MQG has also consistently delivered attractive returns over time (~15% average ROE) and with >10% share price upside to our price target (A$214), we maintain our ADD recommendation.

Morgans has an add rating and $214.51 price target on the company's shares.

Another positive with Macquarie's shares is that they provide investors with an attractive yield. For example, Morgans is expecting partially franked dividends of $7.41 per share in FY 2023 and $7.13 per share in FY 2024. Based on the current Macquarie share price of $184.16, this will mean yields of 4% and 3.9%, respectively.

The post Experts say these fantastic blue chip ASX 200 shares are buys appeared first on The Motley Fool Australia.

With earnings season behind us, now could be a good time to look at making some new additions to your portfolio.

Two blue chip ASX 200 shares that have been named as buys recently are listed below. Here's what you need to know about these shares:

Goodman Group (ASX: GMG)

Goodman could be a blue chip ASX 200 share to buy this month.

The leading industrial property company notes that its global property expertise, integrated own+develop+manage customer service offering, and significant investment management platform helps create innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

This strategy has delivered the goods over the last decade with Goodman recording strong earnings and above-average returns.

The good news is that analysts at Citi believe that this strong form can continue. As a result, the broker has put a buy rating and $24.00 price target on its shares. It commented:

GMG's 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. […] We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

Qantas Airways Limited (ASX: QAN)

Another blue chip ASX 200 share that has been named as a buy is Qantas.

It is of course the flag carrier airline of Australia and the operator of the Qantas and Jetstar brands. The company also has a lucrative loyalty business and an important freight business.

Goldman Sachs is a big fan of the company and has been impressed with its post-pandemic transformation. So much so, it believes the market is seriously undervaluing its shares at present.

Goldman has a conviction buy rating and $8.30 price target on its shares. It commented:

Notwithstanding a decline in unit revenues (and group capacity still at 96% of pre-COVID), our estimated FY24e EPS sits 65% above pre-COVID levels. Despite this, QAN's market capitalisation is 1% below pre-COVID levels (EV 14% lower). We acknowledge broader macro uncertainty at this point in the cycle, but we believe the current share price does not reflect the group's improved earnings capacity.

The post Boost your portfolio with these blue chip ASX 200 shares in March: experts appeared first on The Motley Fool Australia.

Dividend stocks are a popular option for investors, and it isn't hard to see why. These stocks provide investors with income on a regular basis, usually twice a year but in some cases quarterly.

While some investors will use these dividends as income to live from, they can also be reinvested.

It is the latter option that could help you generate significant wealth in the future if you are able to invest consistently over a long period of time. This is thanks to the power of compounding, which is what happens when you earn interest on top of interest.

For example, according to Fidelity, between 1991 and 2021, the Australian share market provided investors with an average total return of 9.6% per annum. Thanks to compounding, this means that a single $10,000 investment generating this return would have grown into $155,000 over 30 years.

And while past performance is no guarantee of future returns, this is in line with historical averages and it would be disappointing if similar returns were not generated in the future.

Investing consistently

The above example was a single investment left to run for 30 years. But what would happen if you kept investing rather than just settling for a single investment?

If you could spare a further $5,000 each year after that initial $10,000 investment, then by investing in ASX stocks and reinvesting your dividends, you could grow your wealth to $1 million after three decades if you generated an average 9.6% per annum return.

At that point, you could construct your portfolio so that it contains ASX dividend stocks that provide 5% yields. And then instead of reinvesting your dividends, you could take your $50,000 dividend pay check as a source of income to live from. All without ever having to lift a finger.

But which ASX dividend stocks could be top options?

Investors may want to look for ASX dividend stocks that have strong business models, sustainable dividends, positive long term growth outlooks, and competitive advantages. These are qualities that Warren Buffett looks for when investing, and given his track record, it's hard to argue against this strategy.

Companies such as Goodman Group (ASX: GMG), Sonic Healthcare Limited (ASX: SHL), and Treasury Wine Estates Ltd (ASX: TWE) tick a lot of these boxes and could be worth a closer look.

The post 3 ASX dividend stocks to try and turn $10,000 into $1 million! appeared first on The Motley Fool Australia.

The economic situation in 2023 has completely changed compared to 2021. Interest rates have soared over the last 12 months and are expected to keep rising over the next few months. Indeed, passive income strategies have been turned upside down.

While higher interest rates have hurt asset prices, they have also thrown up a number of interesting side effects such as much higher term deposit rates and lower share prices.

It's a good thing that savers are now able to achieve a stronger cash return. Some financial institution term deposits are now offering a rate of 4% or more on a one-year product.

However, while I like earning a stronger, safe return, I don't like how inaccessible the money is during the life of that term deposit, unless the saver gives up some, or all, of the interest.

For me, there are three other places I'm putting my money for passive income.

High-interest savings accounts

For starters, I'd rather put my 'safe money' in high-interest savings accounts (or HISAs). They are just as safe as a term deposit, they can offer extremely competitive interest rates (depending on the financial institution), and I can more easily access my money without losing a year's worth of interest.

Plus, it's easy to add more cash to the HISA and benefit from the extra interest.

I'm not expecting to become rich from a HISA, but it's now offering a good enough return to be worthwhile to hold some cash for passive income.

Fully-franked dividends

One of the best things about investing in Australian companies is that when they pay income tax, they generate franking credits.

These franking credits are then attached to dividends paid by companies to investors, a fine source of passive income.

Franking credits are refundable tax credits. For taxpayers in a high tax bracket, franking credits can reduce the tax owing on the dividend. For taxpayers in a lower (or no) tax bracket, franking credits can be refunded when the tax return is done.

In practical terms, as an example, it can turn a $70 cash dividend into a grossed-up payout of $100.

There are many ASX shares that pay fully franked dividends such as Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and Coles Group Ltd (ASX: COL).

Real estate investment trusts

We don't need to buy a property ourselves to get exposure to the passive income from commercial property in Australia.

There are businesses on the ASX called real estate investment trusts (REITs) that own a portfolio of properties. The great thing about these investments is that they own a portfolio of properties, not just one property in one location.

REITs can be invested in various properties such as office buildings, shopping centres, warehouses, farms, pubs, service stations, and so on.

At the moment, the only REIT in my portfolio is Rural Funds Group (ASX: RFF). But, there are plenty of other REITs out there such as Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), and Goodman Group (ASX: GMG).

I like the distributions that they pay from their net rental income.

The post My 3 best forms of passive income for 2023 appeared first on The Motley Fool Australia.

With earnings season in full swing, brokers have been running the rule over a large number of ASX 200 shares.

Two blue chip shares that have been named as post-results buys are listed below. Here's what you need to know about these shares:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that has been tipped as a buy following its results release is Goodman.

It is leading industrial property company with a world class portfolio of assets that are in-demand with end users across the globe.

In response to its strong half-year results, Citi has retained its buy rating and $24.00 price target. The broker believes that strong demand will drive earnings growth for the foreseeable future. It commented:

GMG's 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. Higher than expected FUM, record development margins this period (~100%) and increased potential for rental reversion should support overall earnings growth into the future. Debt costs may be higher but lower gearing ensures limited impact to this. We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share that has been named as a buy this week is Seek.

It is of course the job listings giant behind the eponymous Seek website, as well as several international equivalents.

Morgans was pleased with its performance in the first half and has recommended it as a post-results buy. Its analysts commented:

SEK's 1H23 result was ~2% ahead of Visible Alpha consensus at the topline (revenue of ~A$627m, +21% on pcp), with EBITDA of ~A$283m (+13% on pcp) in line and NPAT excluding significant items (A$135m, +9% on pcp) ~4% ahead. It was broadly a positive result, in our view, however job ad volume growth moderating in 2H23 (particularly ANZ), whilst not unexpected, looks to be a factor in guidance being set at the lower end of previously flagged ranges.

Morgans has retained its add rating with a trimmed price target of $28.40.

The post These blue chip ASX 200 shares are post-results buys: experts appeared first on The Motley Fool Australia.

There are a lot of quality shares for investors to choose from on the ASX 200 index.

In order to narrow things down for investors, listed below are three ASX 200 shares that are rated highly by analysts and could be quality buy and hold options.

Here's what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share that could be a great buy and hold option is Goodman Group. It is a leading integrated commercial and industrial property group that owns a high quality portfolio of assets. Given that a good portion of its portfolio has exposure to structural tailwinds such as ecommerce and the digital economy, they look likely to be in demand with customers for a long time to come. This should be supportive of strong rental income and distribution growth over the next decade.

Citi is a fan of Goodman and has a buy rating and $24.00 price target on its shares.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 200 share to consider as a buy and hold investment is Ramsay Health Care. It is a leading private healthcare company with operations across the world. After struggling during the pandemic, Ramsay has started to bounce back and looks set to benefit from a backlog in surgeries in the near term. Looking further ahead, the company appears well-placed for long term growth thanks to increasing demand for healthcare services due partly to ageing populations and increased chronic disease.

Morgans is positive on the company and has an add rating and $74.41 price target on its shares.

ResMed Inc. (ASX: RMD)

A final ASX 200 share to buy and hold could be ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution network, and successful acquisitions, ResMed has been growing at a solid rate for years. The good news is that thanks to its significant market opportunity and the growing prevalence of sleep disorders, it has been tipped to continue this trend long into the future.

Citi is also bullish on ResMed and has a buy rating and $39.00 price target on its shares.

The post 3 excellent ASX 200 shares to buy and hold for a decade: analysts appeared first on The Motley Fool Australia.

When it comes to generating a passive income from ASX shares, investors could learn a lot from Warren Buffett.

The Oracle of Omaha receives huge pay checks from his investments each year and there's nothing to stop you from doing the same.

Passive income the Buffett way

Warren Buffett has a penchant for making buy and hold investments in high quality companies with positive long term outlooks that are trading at fair prices and pay sustainable dividends.

A prime example of this is Buffett's long term investment in Coca-Cola Co, which comprises approximately 400 million shares.

In 2022, his Berkshire Hathaway business received a whopping US$704 million in dividend income from Coca-Cola Co.

But what makes this particularly impressive is that these dividends come from an original investment of US$1.3 billion.

This means the Buffett earned more than half his original investment back in dividends last year.

And if you include the many dividends that have been paid since he bought his shares in the late 1980s, Buffett has received approximately US$10 billion from Coca-Cola Co's shares alone.

That's almost seven times his original investment and you can bet that there's plenty more to come.

But don't worry if you don't have US$1.3 billion down the back of the sofa to invest! Smaller investments would still have been very rewarding.

For example, had you invested a more modest $10,000 at the same time as Warren Buffett, you would have received $5,400 in dividends last year. You would also have received almost $70,000 in dividends in total during your investment period. All from sitting patiently on a single $10,000 investment!

What about ASX shares?

While we may not have Coca-Cola on the Australian share market (anymore), there are plenty of ASX shares that have characteristics that Buffett looks for when making investments.

A few for investors to look closely at include energy infrastructure company APA Group (ASX: APA), drinks company Endeavour Group Ltd (ASX: EDV), industrial property company Goodman Group (ASX: GMG), and wine giant Treasury Wine Estates Ltd (ASX: TWE).

The post How to generate passive income the Warren Buffett way with ASX shares appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is up 0.85% today as companies continue to release their half-year results for the six months ending 31 December 2022.

Here we take a look at the results of the biggest real estate investment trust (REIT) among the ASX 200 stocks, Goodman Group (ASX: GMG), as well as those of the operator of the Australian Securities Exchange, ASX Limited (ASX: ASX).

Goodman Group profit up 11.5%

Goodman Group is one of the largest ASX 200 stocks, with a market capitalisation of $37.25 billion. The Goodman share price is up 1.2% today to $20.05 after the industrial property specialist reported an 11.5% profit boost and upgraded its full-year FY23 guidance.

Here are the highlights of 1H FY23 for Goodman Group:

• Operating profit of $877 million, up 11.5% on the prior corresponding period (pcp) of 1H FY22
• Operating earnings per share (EPS) of 46.4 cents, up 10.7% pcp
• Gearing at 9.7%, (8.5% at 30 June 2022) with look through gearing at 20.7%
• Available liquidity of $2.8 billion
• Net tangible assets (NTA) of $8.87 per share, up 6% from 30 June 2022
• Total assets under management of $79.5 billion, up 17% pcp
• $1.4 billion of revaluation gains across the group and partnerships during the half
• Portfolio occupancy at 99% and like-for-like net property income growth of 4.2%
• Development pipeline valued 9% higher on pcp to $13.9 billion, with a forecast yield on cost of 6.4%.

In a statement, Goodman Group said "the business is performing better than originally anticipated".

Goodman said:

We've seen continued rental growth in our markets which has underpinned strong cash flows.

The capital position is strong, the portfolio remains almost fully leased, and development activity
continues to be robust.

As a result, the Group expects to achieve full year OEPS growth of 13.5% compared to the previous guidance of 11%.

Massive CHESS derecognition cost impacts ASX profit

This ASX 200 stock is the company that runs the largest securities exchange in Australia. The ASX share price is down 0.7% to $69.55.

Here are the key points for 1H FY23:

• Statutory profit of $73.7 million (impacted by the CHESS derecognition charge of $176.3 million announced in November 2022)
• Underlying net profit after tax (NPAT) of $250 million, down 0.1% pcp
• Operating revenue of $499.5 million, down 0.4% pcp
• Interim dividend of 116.2 cents per share declared.

In a statement, ASX CEO Helen Lofthouse said it was a "pleasing performance … achieved in a period of notable change for our organisation and volatility in our external environment".

The post 2 ASX 200 stocks on the move following earnings updates appeared first on The Motley Fool Australia.

But which blue chip ASX 200 shares could be in the buy zone? Here are three from different sides of the market to consider:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share that could be a buy is Goodman Group. It is a leading integrated commercial and industrial property company. Thanks to its successful strategy of developing high quality industrial properties in strategic locations, Goodman has been a standout performer over the last decade. The good news is that it has been tipped to continue its growth in the future.

Citi is a fan and has a buy rating and $21.10 price target on its shares. Its analysts continue to "favour industrial exposure, and remain attracted to GMG's best-in-class balance sheet."

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a buy is Cochlear. It is one of the world's leading hearing solutions companies. Thanks to its portfolio of world class products, which have been developed through its significant annual investment in research and development, Cochlear appears well-placed for long term growth. Particularly given its strong position in a market benefiting from ageing populations.

Morgans is bullish on Cochlear and has an add rating and $236.70 price target on its shares. It believes the Nucleus 8 launch will be a key driver of near term growth.

Rio Tinto Limited (ASX: RIO)

A final ASX 200 blue chip share that has been rated as a buy is Rio Tinto. It is of course one of the world's largest miners and the owner of a collection of world class operations across different commodities and geographies.

Goldman Sachs is positive on the miner due to its "compelling valuation" and production growth expectations. Goldman currently has a buy rating and $132.00 price target on Rio Tinto's shares.

The post Why experts say these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

Shareholders of the property giant have been through a difficult period with the business going through a significant decline since its peak.

The Goodman Group share price has dropped by around 25% since 31 December 2021.

The business has suffered along with many other ASX property shares as interest rates have climbed higher. In theory, higher interest rates are meant to push down on asset prices. Australia's official interest rate has gone from 0.1% to more than 3% in less than a year.

Goodman is a developer, owner, and manager of industrial properties around the world. It has a presence in Australia, Hong Kong, the US, China, Europe, New Zealand, Japan, and the UK.

While the decline in investor sentiment is hurting Goodman, I think there are a number of factors that can help stabilise and drive Goodman higher.

Strong demand helps rental performance

Goodman is experiencing strong customer demand for its industrial properties, with e-commerce, supply chain optimisation, and ongoing growth in data storage requirements being the key drivers of leasing activity.

A lack of available space in its markets is supporting "positive underlying portfolio activity and fundamentals".

Goodman said that for the three months to 30 September 2022, it recorded a 12-month rolling like-for-like net property income (NPI) growth of 4%. It also had a portfolio occupancy of 99%, with a portfolio of weighted average lease expiry (WALE) of 5.4 years.

The ASX 200 property share also said that the reversion of current passing rents to those achievable in the market has continued to increase, in particular in North America, Australia and New Zealand, the UK and Europe, where reversion now ranges from 20% to 60%.

Goodman suggests that rental growth should continue to support cash flow growth in future periods. It believes that the impact on valuations has been offset by the rental growth that it's seeing.

In FY23, the business forecasts its operating earnings per share (EPS) will grow by 11%, with a full-year distribution of 30 cents per security.

Low debt

Many real estate investment trusts (REITs) on the ASX have a sizeable amount of debt on their balance sheets.

Not only do interest rates naturally hurt the valuations of assets, but higher interest rates can also lead to a much larger increase in the interest expense of businesses with debt.

But that's not the case at Goodman. In FY22, the business said that it had low gearing, which was maintained at 8.5%. This means Goodman's profit could be less affected by higher interest rate costs compared to its ASX property peers.

Large development pipeline

At 30 September 2022, the business saw its assets under management (AUM) increase to $77.8 billion.

One of the things that could assist the business during this period is development. Goodman is expecting to make revaluation gains on developments within its partnerships. The company says this "will continue to be a feature through the year and it is expected that AUM will continue to grow".

Goodman said that demand is supporting work in progress (WIP) of $13.8 billion as at 30 September 2022. The production rate for WIP is approximately $7 billion. The business said that 85% of WIP is either pre-sold or being built for third parties or partnerships.

Interestingly, the yield on the cost of the ASX 200 share's WIP is 6.4%.

Foolish takeaway

When interest rates stop rising, I think that Goodman is well-placed to perform well under these conditions because of continuing strong demand. The steep decline in the Goodman share price certainly gives us the opportunity to invest at a much cheaper price compared to December 2021.

The post This ASX 200 share is one of my top ideas to rake it in on a recovery appeared first on The Motley Fool Australia.

And while it doesn't happen overnight, if you're both disciplined and patient, generating a $20,000 second income from ASX shares is very achievable, even by making modest investments, thanks to compounding.

Getting started

Firstly, in order to get a $20,000 a year paycheck from the share market, you're going to have to build your portfolio to a size that yields this amount in dividends.

Given that many banks like Westpac Banking Corp (ASX: WBC) and high-yield ASX ETFs offer 6% yields for investors, we'll base our calculations on that.

To be paid $20,000 of dividends each year when earning a 6% dividend yield, you'll need a portfolio of ASX shares valued at approximately $330,000.

When you're starting out, that might seem like an unattainable goal, but I don't believe it is. Once again, it's all about patience and discipline.

Over the long term, share markets have provided investors with an average annual return of 10%. Unfortunately, I cannot guarantee that this will be the case in the future, but I would be disappointed if future share market returns are not in line with historical levels.

If you're able to invest $300 a month into high-quality ASX shares and generate a 10% average annual return, your portfolio will have grown to be worth $335,000 in 24 years.

At that point, you could switch your focus to income and build a diversified portfolio filled with ASX shares offering dividend yields averaging 6%. Doing so would give you a $20,000 second income without having to lift a finger.

Speedier options

Investors who are able to put a little bit extra into their monthly investments will get there even quicker.

For example, investing $500 would grow your portfolio to the required size after a little over 19 years.

Can stretch your budget further? Well, $750 would take a touch over 15 years to hit our goal.

Which ASX shares should you buy?

I would focus on buying ASX shares with strong business models, excellent management teams, competitive advantages, and positive growth outlooks.

Companies such as CSL Limited (ASX: CSL), Domino's Pizza Enterprises Ltd (ASX: DMP), and Goodman Group (ASX: GMG) tick a lot of these boxes for me.

Alternatively, you could take the easy option and buy index-tracking ETFs like Betashares Nasdaq 100 ETF (ASX: NDQ) or Vanguard Australian Shares Index ETF (ASX: VAS). These funds aim to provide you with the return of the respective index before fees.

The post How I'd invest $300 a month in ASX shares to target an extra income of $20,000 per year appeared first on The Motley Fool Australia.

ASX shares are divided into 11 market sectors which are represented by their own ASX 200 indexes.

If we take a look at the year-to-date performance of these 11 sectors in 2023, there are three categories that stand out for share price growth.

Seems like everyone is buying ASX 200 property shares — otherwise known as real estate investment trusts (REITs). Next on the list are ASX 200 retail shares and ASX 200 technology shares.

To date in 2023, the S&P/ASX 200 A-REIT Index (ASX: XPJ) is up 14%. Coming in close behind is the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) which is up 12.9%.

The next sector in line is the S&P/ASX 200 Information Technology Index (ASX: XIJ) with a 10.9% gain.

Are you detecting a pattern here?

Why are these ASX 200 shares rocketing in 2023?

The answer is pretty simple. These three sectors were pummelled the most during the 2022 sell-off, so they're having the biggest bounceback today in a newly optimistic market.

These S&P/ASX 200 Index (ASX: XJO) shares suffered the most last year because rising inflation and interest rates are particularly impactful in these sectors.

That turned investors off, which meant buyer demand fell, and some even decided to sell.

The result? A substantial fall in the prices of ASX 200 shares in these three indexes.

The technology index fell 34% over the 12 months of 2022, the A-REIT index fell 24%, and the consumer discretionary index fell 23%.

Here's why these ASX 200 shares were hit hardest among the 11 market sectors.

Generally speaking, rising inflation is bad news for most companies. It means their input costs increase, and if they can't raise the prices for their products and services, this usually reduces their margins.

In terms of rising interest rates, they hurt the economy on many fronts. Every company and household with debt faces rising costs, and people cut back spending on discretionary items.

Rising rates are especially bad for Australian tech companies and REITs.

Many listed Australian tech companies fit into the growth shares category. That means they've typically got a fair bit of debt and are spending a lot to get established while not necessarily making a profit.

Meanwhile, rising rates also bring property prices down because demand goes out of the market. While REITs managing shops, offices, commercial, and residential property can raise the rent when leases turn over, most leases outside residential are multi-year agreements that can't be changed in the short term.

The ASX 200 appears to be turning

ASX 200 shares have lifted 8.8% already in January. That's a clear indication of new confidence.

The Reserve Bank told us this week that inflation has peaked in Australia, and recent US inflation news was positive.

If inflation is coming under control, that means interest rates won't have too much further to go.

That's got investors excited enough to get back into the market in 2023 and buy the dip while they can.

Which shares in these sectors should you buy?

A good starting point when researching a market sector is to first look at the top ASX 200 shares by market capitalisation to see how they're performing.

The biggest ASX property share by market cap is Goodman Group (ASX: GMG). It lost 35% in value in 2022. So far in 2023, Goodman Group shares are up by 21%.

The biggest ASX retail share is Wesfarmers Ltd (ASX: WES). Wesfarmers shares lost 23% in 2022. So far in 2023, the Wesfarmers share price is up by 12%.

The biggest ASX tech share is WiseTech Global Ltd (ASX: WTC). The Wisetech share price fell 13% in 2022. So far in 2023, the shares are up by 26%.

The post Which ASX 200 shares are rebounding fastest in 2023? appeared first on The Motley Fool Australia.

Here's why these ASX 200 blue chip shares are rated highly right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman.

This integrated commercial and industrial property company has a world class portfolio of in-demand warehouses, large scale logistics facilities, and business and office parks.

Demand has been so strong for its properties that it currently boasts an occupancy rate of 99%. This has helped underpin solid like-for-like net property income growth again so far in FY 2023.

Pleasingly, the company appears well-placed to continue its solid form in the coming years. This is thanks to its development pipeline, robust demand from its key markets, and tight market conditions.

UBS is bullish on Goodman. It currently has a buy rating and $23.00 price target on the company's shares.

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to consider is REA.

It is the leading property listings company behind the realestate.com.au website.

Although rising interest rates are putting pressure on the housing market, Goldman Sachs remains positive and believes REA is well-placed for growth thanks to improving yields.

In addition, the broker expects a swift rebound for the housing market. Its economics team expect the RBA rate hikes to stop beyond May. In light of this, it believes "FY24 should benefit from a recovery in listings volumes (GSe +7%, vs. +3% prior), with volumes trending back towards mid-cycle over time."

As a result, its analysts appear to see a lot of value in the REA Group share price at current levels. In fact, Goldman has the company on its conviction list with a buy rating and $158.00 price target.

The post Brokers say these quality ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

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

Goodman Group (ASX: GMG)

According to a note out of UBS, its analysts have upgraded this integrated property company's shares to a buy rating with an improved price target of $23.00. The broker has been looking at the property sector and favours Goodman. This is particularly the case with its logistics exposure, which UBS prefers due to high rent growth potential and record low vacancy rates. The Goodman share price ended the week at $19.92.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this lithium miner's shares to $5.40. Morgans made the move in response to the release of a quarterly update that was well ahead of the broker's expectations. The broker has also lifted its medium-term lithium price assumptions on the belief that tight conditions will continue. This is due to a trend of project slippage from other lithium producers. The Pilbara Minerals share price was fetching $4.90 at Friday's close.

Universal Store Holdings Ltd (ASX: UNI)

Analysts at Goldman Sachs have reiterated their buy rating on this youth fashion retailer's shares with an improved price target of $7.55. According to the note, a recent update from a fellow retailer has given Goldman incremental confidence in the youth consumer discretionary category during the key holiday period. The broker has boosted its earnings estimates and valuation to reflect this. The Universal Store share price closed the week at $5.89.

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In light of this, every so often I like to demonstrate how successful this investment strategy can be by picking out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

And while you might think that you would need to unearth some rising stars to generate big returns, that's not actually the case.

For example, listed below are three ASX shares that have comprehensively beaten the market and were no secret to investors back in 2013. Let's see how investments in these shares fared:

Goodman Group (ASX: GMG)

This integrated industrial property company's strategy of building sustainable properties that are close to consumers and provide essential infrastructure for the digital economy has been a huge success. Demand has been so strong, that Goodman has delivered stellar earnings growth over the last decade. This has ultimately led to this ASX share generating an average total return of 17.23% per annum since 2013. This would have seen a $20,000 investment turn into almost $100,000 over the period.

Macquarie Group Ltd (ASX: MQG)

This investment bank has been a strong performer for investors over the last decade. During this time, Macquarie's shares have smashed the market with a total average return of 19.25% per annum. This would have turned a $20,000 investment 10 years ago into almost $120,000 today.

ResMed Inc. (ASX: RMD)

Thanks to the growing awareness of sleep disorders and this medical device company's industry-leading solutions, it has reported consistently solid sales and earnings growth over the 2010s and now into the 2020s. This has led to this ASX share providing investors with an average total return of 22.26% per annum since 2013. This means that a $20,000 investment back then would have grown to be worth almost $150,000 now.

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Here's why these blue chip shares are highly rated right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share for investors to look at is Goodman Group.

Goodman is a specialist global industrial property group that owns, develops, and manages high-quality, sustainable properties that are close to consumers and provide essential infrastructure for the digital economy.

Among its $77.8 billion portfolio are properties leased to giants including Amazon, Coles Group Ltd (ASX: COL), DHL, and Walmart.

But Goodman isn't resting on its laurels and has $13.8 billion of development work in progress across 85 projects. Pre-commitments remain high across this workbook with completions 100% committed and work in progress 68% committed. Pleasingly, the latter has a yield on cost of 6.4%, which should be supportive of further solid earnings growth in the future.

UBS is positive on Goodman's outlook. So much so, this morning the broker upgraded its shares to a buy rating with a $23.00 price target.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 blue chip share that have been tipped as a buy is Treasury Wine.

It is one of the world's leading wine companies and the owner of a portfolio of popular wine brands. This includes 19 Crimes, Blossom Hill, Lindeman's, Wolf Blass, and the jewel in the crown, Penfolds.

Treasury Wine has been tipped to deliver strong growth in the coming years thanks to the success of its premiumisation strategy, strong demand in the United States, and the successful reallocation of its China portfolio into other markets.

Morgans is very positive on its outlook and believes the "foundations are now in place for TWE to deliver strong earnings growth […] over the next few years."

Morgans has an add rating and $15.71 price target on its shares.

The post Experts say these are the ASX 200 blue chip shares to buy now appeared first on The Motley Fool Australia.

Australian home values are falling at their fastest rate since the global financial crisis, so will ASX property shares go down with them?

According to CoreLogic data, home prices fell 5.3% in 2022. Back in 2008, they dropped 6.4%. (These numbers combine all types of residential properties — houses, townhouses, and apartments).

The price declines in 2022 were greatest in Sydney (down 12.1%) and Melbourne (down 8.1%).

But what happened to ASX property shares?

If home values drop, will ASX property shares fall too?

Let's take a look at what happened to ASX property shares or real estate investment trust (REITs) in 2022.

Real estate is one of the 11 sectors of the ASX. Over 2022, the S&P/ASX 200 A-REIT Index (ASX: XPJ) fell 24%. This compares to a 5.5% drop in the benchmark S&P/ASX 200 Index (ASX: XJO).

As seen here, individual results among the REITs varied substantially.

This is the top 10 ASX property shares by market capitalisation:

Why did ASX property shares fall in 2022?

The important thing for investors to note is that the bulk of REITs are either not associated with the residential housing market, or have only limited exposure.

Most of them hold portfolios comprising retail property, offices, and industrial property such as warehouses and shopping centres. There are exceptions, of course, like apartment developer Mirvac Group.

However, in a climate of rising interest rates, ASX REITs with substantial debt or leveraging will be affected. Why this occurs is obvious — interest costs are rising, while property values are falling.

The REIT companies that build property have also been subject to the rising costs of inputs like timber due to inflation and ongoing global supply chain disruptions.

ASX property shares can also be affected by falling land values in a market downturn. This reduces the value of the assets on their books.

But remember, most of these REITs are not holding property with the aim to sell it and distribute capital gains to shareholders. REITs are traditionally much more of a yield play than a growth play.

And therein lies an opportunity with REIT shares for investors today.

REITs are reliable dividend payers

ASX property shares tend to involve commercial property, and average tenancies are much longer term than residential leases. Traditionally, rental returns are steadier, hence distributions are relatively stable.

REIT yields are presently higher because share prices fell so much in 2022.

One of the highest dividend payers among ASX property shares is the Centuria Office REIT (ASX: COF). Its share price dropped 35% last year and it is $1.60 today. That gives it a trailing dividend yield of 9.5%.

There are also ASX property shares that aim to deliver more share price growth than yield. Goodman Group is a great example.

Over the past five years, the Goodman share price has risen by 150%. That includes the 25% decline in 2022. So, that's an average annual share price gain of 30% per year. A residential property could never match that. Goodman is forecasting an 11% growth in earnings per share (EPS) for FY23.

Should I buy property or shares?

Whether ASX shares or property is a better investment is an age-old debate among investors that will rage on forever. Ideally, a bit of both is the way to go because it provides investment diversification.

But if you had to choose one, ASX shares might be more appealing for several reasons.

The scale of initial investment is probably the biggest drawcard of shares. ASX shares investing allows you to start with lower funds, so you can use savings instead of borrowings to get started. They're certainly less hassle, and there are no holding costs (outside of the interest on any margin loan you get to invest).

But the capital gain you'll get from ASX property shares is likely to be smaller. Over the past five years, the A-REIT index has risen by only 7%.

So, investors who choose shares over bricks-and-mortar property might pick a few ASX growth shares for capital gains and some ASX dividend shares (perhaps including property shares) for reliable income.

The post House prices are tanking. Will ASX property shares go down with them? 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.

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The S&P/ASX 200 Index (ASX: XJO) fell on Tuesday, posting its third – albeit small – decline of 2023. The index ended the day 0.03% lower at 7,386.3 points.

It was a mixed session across the market, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) leading the way.

The sector gained 1.8%, led by shares in supermarket operators Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Metcash Limited (ASX: MTS).

Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) weighed heaviest, falling 1.2% as the Origin Energy Ltd (ASX: ORG) share price dumped 2.1%.

The company announced the consortium looking to snap it up has requested more time to complete due diligence.

Mining shares also suffered today, with the S&P/ASX 200 Materials Index (ASX: XMJ) falling 1.1%.

So, after considering all that, let's take a look at the 10 shares taking out the top spots on the ASX 200 on Tuesday.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was battery materials and technology provider Novonix Ltd (ASX: NVX). The stock leapt 5.5% to close at $1.92 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.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Allkem Ltd (ASX: AKE)

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating and $15.20 price target on this lithium miner's shares. Although the broker continues to expect lithium prices to fall materially in 2024, it remains positive on Allkem. This is due to its production growth plans, which the broker believes will support its earnings in the coming years despite falling prices. Allkem is the broker's top pick in the lithium industry. The Allkem share price is trading at $12.48 this afternoon.

Argosy Minerals Limited (ASX: AGY)

A note out of Macquarie reveals that its analysts have initiated coverage on this lithium developer's shares with an outperform rating and 85 cents price target. The broker highlights that Argosy Minerals' operation in Argentina is due to commence commercial production in the first half of the year, which positions it to be profitable in FY 2023. The broker also sees scope for its production to grow meaningfully in the coming years. The Argosy Minerals share price is fetching 66.7 cents today.

Goodman Group (ASX: GMG)

Analysts at Citi have retained their buy rating but trimmed their price target on this industrial property company's shares to $21.10. According to the note, after a difficult year for REITs in 2022, the broker is cautiously optimistic that 2023 will be better. In light of this, it is positive on Goodman, particularly given its best-in-class balance sheet and potential for upside to its guidance. The Goodman share price is trading at $18.60 on Friday afternoon.

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