2022 and 2023 have seen a strange shift in the investing world. For the decade before 2022, interest rates were at historically low levels. They were essentially zero over 2020 and 2021. That meant that investors could not get any kind of decent return on cash investments. Savings accounts, term deposits and the like offered next to no return. That meant ASX 300 dividend shares were one of the only real options if investors wished to receive a decent yield on their cash.

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

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

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

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

Smash cash with these ASX 300 dividend shares

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

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

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

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

An 11.3% yield from Harvey Norman?

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

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

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

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

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

The Harvey Norman Holdings Limited (ASX: HVN) share price is down 0.5% to $3.85 amid news its founder has just dropped $8 million in an epic 'buy-the-dip' exercise.

A change of director's interest notice lodged with the ASX reveals Gerry Harvey bought 270,000 Harvey Norman shares last Thursday. He bought a further 1,865,000 shares on Friday.

When company insiders spend big money on their shares, that implies a lot of confidence in the stock.

Does this mean you should buy, too? Let's hash this out together.

What was the Harvey Norman share price when Gerry bought?

Firstly, let's look at the price Harvey paid, which indicates where he sees good value.

The 270,000 Harvey Norman shares purchased on Thursday were bought at an average price of $3.71. Point of interest: Harvey has already made a capital gain of $37,800 on this parcel of shares.

The shares purchased on Friday were nabbed at an average price of $3.7478. So the capital gain there is already $190,603. Smart move, Gerald!

The total consideration paid for both lots of shares is $7,993,785.17. Both purchases were indirect interest buys through various trusts.

Why did the retail legend buy?

Well, the timing is relevant here.

The purchases took place a few days after the company reported its 1H FY23 results.

The retailer revealed a 15.1% decline in reported net profit after tax (NPAT) to $365.9 million. It also slashed its interim dividend by 35% to 13 cents per share fully franked.

Investors didn't react well. As we reported, the Harvey Norman share price was smashed by 12% at its intraday low.

Harvey criticised the market response, calling it a "total overreaction". But then he did what all smart long-term investors should do — he took advantage of it and bought the dip.

Harvey said last week:

Harvey Norman is on a 6 per cent dividend yield, or better, at $4 a share and we only paid out half (our earnings) in dividend; if we paid out the lot it would be a 12 per cent dividend fully franked. We have a wonderful record of paying dividends over 35 years.

We've got a long record that's very, very good and so the market … should be delighted, not disappointed.

Another director follows the same path

Harvey Norman's chief financial officer Chris Mentis also got in on the action last week.

According to a separate notice lodged with the ASX, Mentis purchased 40,000 shares on market for $147,164 on Thursday. The purchase was an indirect interest buy through his super fund.

Mentis also serves as an executive director and the company secretary.

Should you buy Harvey Norman at today's share price?

So, the Harvey Norman share price is still in 'buy the dip' territory. At $3.85, it is still down significantly — about 8% — since the 1H FY23 results were released last Tuesday.

We know from Harvey's purchases that he sees value in his ASX retail share at the $3.70-ish mark.

But what do the brokers think?

According to my Fool colleague James, Goldman Sachs has retained its buy rating on Harvey Norman shares. It has trimmed its 12-month price target to $4.70.

Based on where the Harvey Norman share price is trading at the time of writing, that implies a very healthy potential 22% upside for investors who buy today.

Although Goldman was disappointed with the 1H FY23 results, it believes the half represented the peak cash drag on franchisee support. It also sees a lot of value in the company's property holdings.

Excluding those property assets, Goldman notes that Harvey Norman shares are trading at a price-to-earnings (P/E) ratio of 6 times FY24 estimated earnings.

Generally speaking, the market considers any established stock on a P/E lower than 15 times as cheap.

So, the Harvey Norman share price could be considered a value buy at this time.

The post Gerry Harvey just bought $8 million worth of Harvey Norman shares. Should you buy? appeared first on The Motley Fool Australia.

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

Allkem Ltd (ASX: AKE)

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating on this lithium miner's shares with a slightly trimmed price target of $15.40. This follows the release of Allkem's first-half results, which came in slightly ahead of expectations. Allkem remains Goldman's preferred lithium exposure due to its discount to peers and its optionality across the Americas and Australia on the largest lithium resource under its coverage. The Allkem share price ended the week at $12.36.

Harvey Norman Holdings Limited (ASX: HVN)

Another note out of Goldman Sachs reveals that it analysts have retained their buy rating on this retail giant's shares with a trimmed price target of $4.70. Although Harvey Norman's first-half results fell short of expectations, Goldman remains positive for a number of reasons. This includes its dirt cheap valuation compared to peers and its belief that the peak cash drag on franchisee support is behind it. The Harvey Norman share price was fetching $3.71 at Friday's close.

Pointsbet Holdings Ltd (ASX: PBH)

Analysts at Bell Potter have retained their speculative buy rating on this sports betting company's shares with a reduced price target of $2.75. This follows a mixed half-year result with Pointsbet's revenue beating expectations but its loss coming in greater than forecast. Nevertheless, the broker remains positive given its very large opportunity in the North American sports betting market. The Pointsbet share price ended the week at $1.43.

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

Here's why these could be passive income shares to buy now:

Harvey Norman Holdings Limited (ASX: HVN)

Goldman Sachs thinks investors should seize on recent weakness in the Harvey Norman share price. Especially if you want some big dividends!

The broker believes the market is undervaluing Harvey Norman and notes that its shares are trading at just 6x FY 2024 estimated earnings ex-property. This compares to 14.5x earnings for its rival JB Hi-Fi Limited (ASX: JBH).

Goldman currently has a buy rating and $4.70 price target on the retailer's shares.

As for dividends, the broker is expecting fully franked dividends per share of 36 cents in FY 2023 and then 30 cents in FY 2024. Based on the current Harvey Norman share price of $3.71, this will mean yields of 9.7% and 8.1%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share for investors to consider buying next week is toll road operator Transurban.

The team at Citi is positive on the company. It was pleased with its half-year results last month and expects the company to build on this in the second half and FY 2024. Particularly given its positive exposure to inflation. It commented:

We believe TCls' 7.5% FY23 DPS guidance beat was driven by a range of one-off factors, along with improved traffic recovery. While this is positive for near term, longer term estimates remain largely unchanged. However, CPI-linked increases come through with a delay indicating a strong growth path ahead and we forecast c.6% p.a. DPS CAGR from FY23-FY26.

Citi has a buy rating and $16.00 price target on its shares.

In respect to dividends, the broker is forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $13.94, this will mean yields of 4.2% and 4.3%, respectively.

The post Give yourself a passive income boost with these ASX dividend shares: experts appeared first on The Motley Fool Australia.

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

Harvey Norman Holdings Limited (ASX: HVN)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this retail giant's shares with a trimmed price target of $4.70. Although disappointed with the company's first-half performance, Goldman believes the half represents the peak cash drag on franchisee support and sees a lot of value in its property. The broker also notes that ex-property, its shares are trading at just 6x FY 2024 estimated earnings. This compares to 14.5x earnings for its arch-rival. The Harvey Norman share price is trading at $3.78 this afternoon.

NextDC Ltd (ASX: NXT)

A note out of Morgans reveals that its analysts have retained their add rating on this data centre operator's shares with a reduced price target of $13.00. Morgans notes that NextDC delivered earnings slightly ahead of its expectations during the first half. The broker also highlights that management is expecting some material contract wins in the second half. The NextDC share price is fetching $10.55 on Wednesday.

Tyro Payments Ltd (ASX: TYR)

Another note out of Morgans revealed that its analysts have retained their add rating on this payments company's shares with an improved price target of $1.89. It was pleased with Tyro's performance in the first half. And based on its decent start to the second half, the broker expects the company to achieve its guidance in FY 2023. It also isn't ruling out another takeover approach this year, which it suspects would drive its shares beyond its price target. The Tyro share price is trading at $1.59 today.

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

The Harvey Norman Holdings Limited (ASX: HVN) share price is down again today as investors continue to react to the furniture retailer's 1H FY23 results.

The Harvey Norman share price is currently down 0.78% at $3.82.

Yesterday, the shares closed the day down 7.45% after the company revealed a 15.1% decline in reported net profit after tax (NPAT) to $365.9 million.

Not only that, but Harvey Norman slashed its interim dividend by 35% to 13 cents per share fully franked.

Gerry Harvey slams the Harvey Norman share price drop

The head of Harvey Norman, Gerry Harvey, has told The Australian that investors overreacted to the results after the Harvey Norman share price fell by as much as 12% during intraday trading yesterday.

Harvey said:

Harvey Norman is on a 6 per cent dividend yield, or better, at $4 a share and we only paid out half (our earnings) in dividend; if we paid out the lot it would be a 12 per cent dividend fully franked. We have a wonderful record of paying dividends over 35 years.

We've got a long record that's very, very good and so the market … should be delighted, not disappointed.

He also criticised general talk about the weakening economy as inflation and interest rates rise:

In the big picture everything is quite good. It is not as good as it was going but we aren't going into recession. We can't get people to work in agricultural, hospitality so how others can talk about how we are going into a recession – they are leading people astray.

The story every day that interest rates are going up, people are suffering and things are going to get worse – well of course people are going to hold back if they read that every day but the reality is those people are very much in the minority and the great bulk of people out there, 9 out of 10, are doing quite well.

Be greedy when others are fearful…

So, here's the plus side to this alleged overreaction. It's called buying the dip. Investors who are committed to Harvey Norman now have an opportunity to average in at a discount.

The shares closed at $4.16 on Tuesday, the day before the results were released.

Today, the ASX retail share is trading at $3.82. That's an 8.2% discount from where it was two days ago.

Following the half-year results, top broker Goldman Sachs has retained its buy rating with a trimmed 12-month price target of $4.70.

This implies an upside potential of 24%. The broker is tipping a 9.3% dividend yield in FY23.

The post Buying opportunity? Harvey Norman boss says share slump is a 'total overreaction' appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday despite it being a reasonably positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, but the S&P 500 is up 0.3% and the Nasdaq is 0.7% higher.

Oil prices charge higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$77.16 a barrel and the Brent crude oil price has risen 1.8% to US$83.96 a barrel. Traders were bidding oil prices higher on Chinese growth hopes.

Harvey Norman shares rated as a buy

The Harvey Norman Holdings Limited (ASX: HVN) share price was sold off on Tuesday following the release of a weaker than expected half-year result from the retail giant. Goldman Sachs believes this has left its shares trading at a very attractive level and has retained its buy rating with a trimmed price target of $4.70. Goldman's estimates suggest potential upside of 22% for its shares and a 9.3% dividend yield in FY 2023.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.7% to US$1,837.2 an ounce. Despite this, the precious metal is on course to have its worst month in almost two years.

NextDC named as a buy

The NextDC Ltd (ASX: NXT) share price could have major upside potential according to the team at Morgans. This morning, the broker has reiterated its add rating on the data centre operator's shares with a trimmed price target of $13.00. It was pleased with NextDC's half-year results, commenting: "NXT's 1H23 result was slightly better than expectations with underlying EBITDA up 15% YoY and 6% ahead of our forecasts."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Accent Group Ltd (ASX: AX1)

The Accent share price is down over 5% to $2.17. This has been driven by the footwear and fashion retailer's shares trading ex-dividend this morning for its upcoming interim dividend. Eligible shareholders can now look forward to receiving this 12 cents per share fully franked dividend next month on 9 March.

Adbri Ltd (ASX: ABC)

The Adbri share price is down 8% to $1.69. Investors have been selling the building materials company's shares following the release of its full-year results. Adbri reported an 8.4% increase in revenue to $1.7 billion but a 31% decline in its net profit to $77.7 million. In light of this decline and its capex requirements, the company scrapped its final dividend to conserve cash.

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down 11% to $3.69. This has been driven by the release of the retail giant's half-year results. Harvey Norman reported flat revenue, a 14.5% decline underlying profit after tax to $291.09 million, and a 35% cut to its interim dividend to 13 cents per share. The market was expecting a profit of $323 million and an 18 cents per share dividend.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price has crashed 24% to $1.10. Investors have been heading to the exits after the sports betting company released its half-year results. Pointsbet reported decent top line growth but still reported a $178 million loss for the half. This was partly driven by surprisingly poor earnings from the Australia business, which missed consensus estimates.

The post Why Accent, Adbri, Harvey Norman, and Pointsbet shares are sinking appeared first on The Motley Fool Australia.

In morning trade, the retail giant's shares are down almost 10% to $3.76.

This follows the release of a half-year result that appears to have fallen short of expectations.

Harvey Norman share price falls on earnings miss

• Consolidated revenue flat at $2.34 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 8% to $694.01 million
• Reported profit after tax down 15.1% to $365.9 million
• Underlying profit after tax down 14.5% to $291.09 million
• Fully franked interim dividend down 35% to 13 cents per share

What happened during the half?

For the six months ended 31 December, Harvey Norman reported flat consolidated revenue of $2.34 billion.

Unfortunately, the retailer's profits didn't hold up as well as its revenue. This was due to the company's margins easing, leading to its EBITDA falling 8% and its underlying profit dropping 14.5%.

In light of this profit decline, the company has elected to slash its interim dividend by 35% to a fully franked 13 cents per share.

How does this compare to expectations?

According to a note out of Goldman Sachs, its analysts were expecting group sales of $2.28 billion, EBITDA of $588 million, and underlying profit after tax of $311 million.

This appears to indicate that Harvey Norman beat on the top line and with its EBITDA, but missed on the bottom line.

In addition, while no dividend estimate was provided for the first-half, Goldman was expecting Harvey Norman's full-year dividend to increase by one cent to 39 cents in FY 2023.

Given the large cut it has made to its interim dividend, this appears to indicate that there's very little chance of that happening anymore. This could be putting added pressure on the Harvey Norman share price.

Management commentary

Harvey Norman's Chairman, Gerry Harvey, commented:

Our Omni Channel Strategy continues to deliver stable returns and sustainable growth resulting in a significant uplift in consolidated net assets by $1.18 billion from pre-COVID levels of $3.28 billion as at 31 December 2019 (1H20) to $4.46 billion as at 31 December 2022 (1H23).

Our balance sheet is robust, anchored by a strong, tangible property portfolio totalling $3.94 billion that continues to deliver growth in terms of rental returns and capital appreciation. We have sufficient liquidity and we continue to maintain a low net debt to equity ratio of 12.17% giving us the capacity to access additional liquidity should we require it. Amid the macroeconomic headwinds of the past year, we have grown our integrated retail, franchise, property and digital business across eight countries to nearly $5 billion in system sales for the current half-year period.

Outlook

Management advised that the second half has started softly, with Australian franchise sales falling 10.2% during January.

And while it acknowledges the challenging economic environment, it remains optimistic. It said:

The consolidated entity is confident in the resilience of its integrated retail, franchise, property and digital system and in its continued ability to deliver stable returns and sustainable growth for its stakeholders. Despite the macroeconomic headwinds and cost of living pressures affecting discretionary retail, our strong balance sheet and our substantial growth in net assets throughout the pandemic has left us in a solid position to withstand these challenging circumstances.

The post Harvey Norman share price sinks 10% on earnings miss and big dividend cut appeared first on The Motley Fool Australia.

There are still a few more reports to trickle in as the reporting season begins to slow down. Will today's ASX shares be able to deliver on their shareholders' hopes though?

Here's a quick, no-rubbish read to get you up to speed on Tuesday.

These ASX shares are reporting today

Ranked in order of market capitalisation (largest to smallest)

Harvey Norman Holdings Limited (ASX: HVN), $5.2 billion

Sandfire Resources Ltd (ASX: SFR), $2.7 billion

Adbri Ltd (ASX: ABC), $1.2 billion

Tyro Payments Ltd (ASX: TYR), $846.8 million

Cooper Energy Ltd (ASX: COE), $447.4 million

McPherson's Ltd (ASX: MCP), $88.1 million

Swoop Holdings Limited (ASX: SWP), $41.4 million

What can we expect today?

Two weeks on from JB Hi-Fi Limited's (ASX: JBH) first-half results, we are now staring down the barrel of another set of figures, this time from its closest rival.

Harvey Norman shareholders are flying into today's results without much prior information. The last trading update was handed out on 24 November 2022, detailing sales for the period between 1 July and 31 October 2022. Importantly, aggregated sales revenue was up 6.9% compared to the prior corresponding period.

The numbers to beat from the last first half are:

• $4.91 billion in total system sales revenue
• 34.58 cents in earnings per share
• Interim fully franked dividend of 20 cents per share

Meanwhile, an ASX payments tech share will be attempting to wow onlookers today in hopes of a better bid.

Tyro Payments is in the hot seat after giving due diligence access to Potentia at the end of January. Today's first-half figures will no doubt factor into any ensuing takeover offer, so Tyro shareholders will be looking for some solid numbers.

In January, the company provided unaudited results that showed a record period in some aspects. Notably, gross profits were up 40% to $95.2 million on a normalised basis. Though, the focus will likely be on any amendments to the company's full-year guidance.

Don't forget to check back in throughout the day for our earnings coverage.

The post Earnings preview: Here are the ASX shares reporting on Tuesday appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to bounce back on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 36 points or 0.5% higher. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is up 0.4%, and the NASDAQ is up 0.7%.

Oil prices fall

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$75.29 a barrel and the Brent crude oil price is down 1.4% to US$82.00 a barrel. These falls were driven by concerns that rate hikes will hit demand.

Harvey Norman half-year result

The Harvey Norman Holdings Limited (ASX: HVN) share price will be one to watch on Tuesday when the retail giant releases its half-year results. According to a note out of Goldman Sachs, it expects group sales growth of 4.2% to $2,280 million and an underlying profit after tax decline of 8.7% to $311 million.

Gold price rises

It could be a decent day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.5% to US$1,825.6 an ounce. A softer US dollar boosted the precious metal.

Core Lithium rated as a sell

The Core Lithium Ltd (ASX: CXO) share price may have tumbled notably lower this month but analysts at Goldman Sachs are still not buying. This morning, the broker has reiterated its sell rating and cut its price target to 90 cents. The broker expects wet weather to delay its mining and highlights that spot prices continue to decline.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

On the hunt for ASX shares offering passive income?

Well, here's some good news.

As ASX investors, we have a big leg up on most of our international peers when it comes to passive income.

That's due to the franking credits received here in Australia on many company dividend payouts.

With fully franked dividends, investors won't need to pay the taxes the company has already paid on the profits it booked in Australia.

Investors with little to no other sources of income may even receive a tax credit on the franked dividends they received over the financial year come tax time.

So, here's how I'd go about investing $200 a month in ASX shares to garner $1,000 in passive income.

$1,000 a month in passive income from ASX shares

First, I'd likely restrict myself to the larger end of the market.

S&P/ASX 200 Index (ASX: XJO) dividend shares will usually have longer track records and less volatility than small-cap stocks. There's also more readily available research on ASX 200 dividend shares.

And when hunting for ASX shares to build my $1,000 passive income stream, I'd stick to the ones paying fully franked dividends.

I'd also want some diversification. This means I wouldn't want to invest in companies that are all involved in the same sector and subject to the same potential headwinds.

With that said, here are three ASX 200 dividend shares in three very different industries that I'd invest in for passive income.

Banking, retail, and energy

First up we have ASX 200 bank ANZ Group Holdings Ltd (ASX: ANZ).

ANZ currently trades for $24.72 per share and has a market cap north of $74 billion.

The bank's share price has been trending higher, up 5% in 2023. And it has a lengthy track record of two dividend payments per year, offering historically reliable passive income.

ANZ pays a trailing, fully franked dividend yield of 5.9%.

Next up we have ASX 200 energy stock Woodside Energy Group Ltd (ASX: WDS).

Woodside currently trades for $35.20 per share and has a market cap of $68 billion.

The Woodside share price is down 1% in 2023, largely due to a retrace in the soaring energy prices we witnessed last year. Woodside also has paid two yearly dividends each year going back many years, making it another solid ASX stock to investigate for passive income.

Woodside pays a fully franked trailing dividend yield of 8.9%.

Which brings us to ASX 200 retail stock, Harvey Norman Holdings Ltd (ASX: HVN).

Harvey Norman currently trades for $4.15 per share and has a market cap of $5.2 billion.

The Harvey Norman share price has gained 1% so far in 2023. Like the other two ASX 200 dividend shares, it makes my list for passive income in part due to making two annual dividend payouts for well over a decade.

Harvey Norman pays a full franked trailing dividend yield of 9.0%.

Foolish takeaway

I won't build $1,000 of passive income by investing $200 a month in these ASX shares overnight.

And I'd likely look at expanding the list for even more diversification.

But I think these three ASX passive income stocks are a great way to start.

Together they pay an average trailing, fully franked yield of 7.9%.

If those yields remain consistent (they could go higher or lower), it would take me 63 months, or just over five years, to generate $1,000 of passive income from these ASX shares if I bought an equal amount of each. And that's income that would likely come with some healthy tax benefits.

And that's not even considering the potential share price gains over that time frame.

For example, over the past five years, the Harvey Norman share price is up 13%; Woodside shares have gained 23%; while the ANZ share price has gone the other way, down 13%.

The post How I'd invest $200 a month in ASX shares to target a $1,000 passive income appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) dividend shares have the potential to deliver reliable, passive income streams for decades into the future.

While there are a number of blue-chip companies worth investigating for their strong dividend track records and outlooks, we take a look at two below that I believe sit at the top of that list.

ASX 200 dividend share number one

The first ASX 200 dividend share that could offer investors decades of passive income is Domino's Pizza Enterprises Ltd (ASX: DMP).

Domino's reported its half-year results yesterday (22 February). And the market was decidedly underwhelmed, with investors sending the Domino's share price down 23.8% on the day.

The global fast-food franchise has struggled with inflation, particularly in its European operations.

This saw a 21.5% decline in its underlying net profit after tax (NPAT) to $71.7 million.

As you'd expect, this also led to a 23.8% reduction in Domino's partially franked interim dividend, which came out at 67.4 cents per share. Still, adding in the 68.1 cents per share final dividend, Domino's is trading at a trailing yield of 2.5% following yesterday's share price falls.

Shorter term, the company may still face some headwinds, with management advising new store openings may fall short of the 8% to 10% expansion target.

However, following the $165 million capital raising announced in December, Domino's long-term growth plans appear strong. The company will use those funds to help acquire the portion of its German joint venture partner that it doesn't already own.

With Domino's entrenching its position in the markets where it operates and likely to overcome the shorter-term headwinds it's facing at the moment, this ASX 200 dividend share is one that could provide investors with decades of passive income.

Fancy a 9% yield?

The second ASX 200 dividend share worth investigating is retail giant Harvey Norman Holdings Ltd (ASX: HVN).

Harvey Norman has yet to report its half-year earnings, but the company has been struggling over the year as consumers face rising costs and the company's big COVID bump comes to an end.

That's seen the share price slide 19% since this time last year.

Yet that hasn't stopped management from returning a lot of the profits to shareholders, declaring a total of 37.5 cents in fully franked dividends over the past 12 months.

At the current share price of $4.15, that works out to a trailing yield of 9.0%.

And while we may see profits and earnings decline in the upcoming results, Harvey Norman is another stock with a strong long-term outlook.

The company not only operates in Australia but has been rapidly expanding overseas. While that requires a healthy dose of capital and some time to see the returns, this is another ASX 200 dividend share that I believe should continue to offer reliable, long-term passive income to its shareholders.

The post Dividend investors: 2 ASX 200 shares for decades of passive income appeared first on The Motley Fool Australia.

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

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

5 ASX dividend shares that crush a term deposit today

Adairs Ltd (ASX: ADH)

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

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

Westpac Banking Corp (ASX: WBC)

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

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

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

Dusk Group Ltd (ASX: DSK)

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

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

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

Super Retail Group Ltd (ASX: SUL)

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

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

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

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

Harvey Norman Holdings Limited (ASX: HVN)

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

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

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

Foolish takeaway

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

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

Why work for your money when you can make your money work for you? That's the attitude employed by many S&P/ASX 200 Index (ASX: XJO) passive income investors as they hunt for winning dividend shares.

Certainly, investing in ASX 200 shares capable of providing a notable annual income needn't be an expensive venture.

Here's how I would invest $20,000 today if I were targeting $1,500 of dividends each year.

Creating $1,500 of annual income by investing just $20,000

Let's assume I have two goals – to create a $20,000 portfolio and to receive upwards of $1,500 each year without lifting a finger.

I could knock both goals out of the park today by creating a diverse portfolio of ASX 200 shares with an average dividend yield of at least 7.5%.

And that could be just the beginning. If I were to reinvest my dividends, the power of compounding could see my payouts growing substantially over the years to come.

Here's how I might hypothetically achieve my goal by investing in just four ASX 200 shares.

4 ASX 200 shares boasting an average 7.7% dividend yield

Realising an average dividend yield of more than 7.5% by investing in market giants might sound like a pipedream, but it can be done.

Here are four ASX 200 shares I might consider if my goal was to recognise upwards of $1,500 of annual passive income from a $20,000 portfolio:

As of Tuesday's close, the four shares boasted an average dividend yield of 7.735%. But, of course, past performance isn't an indication of future performance.

Still, at that rate, $20,000 invested equally across the shares could yield around $1,547 of passive income annually.

I could think of a few ways in which I could spend that sort of extra cash. However, that's not what I would do.

The power of compounding

If I were able to receive around $1,500 of passive income each year, I would likely choose to reinvest it. By doing so, I could compound my earnings.

Let's assume I continue to recognise a 7.735% yield and none of my investments see any capital gains between now and 2033.

By reinvesting my dividends to buy more ASX 200 shares, I could double the value of my portfolio in that time without forking out any more cash. And my dividend income would likely grow alongside it.

The post Invest $20,000 in ASX 200 shares and get $1,500 each year without lifting a finger appeared first on The Motley Fool Australia.

Overall, shares go up far more often than they go down. So if we're always waiting for a cheap time to enter the market, we could be waiting years. And that's years of valuable dividend compounding we could miss out on.

So here is where I would think about deploying $20,000 in ASX dividend shares this year if I was lucky enough to have some cash fall in my lap.

2 ASX 200 dividend shares I would buy in 2023

National Australia Bank Ltd (ASX: NAB)

I already own some NAB shares, but I would happily buy more in 2023 with some of that $20,000. Under NAB's CEO Ross McEwan, I think this ASX bank share has built itself into one of the best options out of the big four.

Unlike its rival Commonwealth Bank of Australia (ASX: CBA), NAB is less reliant on the massive mortgage market, with its historical focus on business lending. As such, I consider it to be a classic blue-chip investment that should prosper alongside the Australian economy over time.

There's also NAB's fat, fully franked 4.8% dividend yield to consider as well. This comes from NAB jacking up its dividends meaningfully in 2022. The bank paid out $1.27 in dividends per share in 2021, but hiked this to $1.51 per share last year.

Harvey Norman Holdings Limited (ASX: HVN).

Of all the ASX 200 dividend shares out there, Harvey Norman would have to be one of the cheapest on the market today. The veteran ASX retailer currently trades with a price-to-earnings (P/E) multiple of just 6.9. That's stupendously cheap for a long-term stalwart like Harvey Norman in my view.

This cheap share price has resulted in the company possessing a monstrous trailing dividend yield of 8.42%, based on the company raising its dividend from 35 cents per share in 2021 to 37.5 cents per share in 2022. Those dividends come fully franked too. So this ASX 200 share I would find hard to turn down as well.

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Having some cash stored away for that inevitable rainy day is a fundamental step in being financially independent. It's important to have money set aside for when your car breaks down, there's a medical emergency, or whatever other malady life can throw in one's way.

The last place you want to find yourself when presented with an unexpected expense is the personal loan application desk at your local bank.

But just as importantly, it's important to realise that savings are insurance, not a path to wealth. Whilst interest rates have shot up over the past 12 months, which at least gives investors some meaningful cash flow, cash still isn't offering real (inflation-beating) returns. The top interest rate available for a term deposit right now is around 4.5%.

But recently, we've found out that Australian inflation was running at a hot 7.3% over the 12 months to 30 November. That means that the purchasing power of our cash in our 4.5% term deposit is going backwards by 3.3% in real terms.

As such, it is virtually impossible to grow one's wealth using cash alone.

That's why I'm turning to ASX shares.

Why invest in cheap ASX shares for retirement?

ASX shares are one of the best places to have your money if you wish to build wealth. For one, the best companies can keep ahead of inflation by increasing their prices to match the falling real value of cash.

But ASX shares can also give investors inflation-beating returns. Even an index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) has delivered an average return of 8.54% per annum over the past ten years on average. That crushes the returns of cash.

The ASX share market has rallied quite convincingly over the past two months or so, which dulls the potential returns of investors just getting started with investing. But that doesn't mean there aren't plenty of dirt-cheap ASX shares still out there. One sector I'm currently looking at is ASX 200 retail shares.

Rising interest rates have dampened investor demand for consumer discretionary companies like retailers. But I think this has left many looking cheap.

Take JB Hi-Fi Limited (ASX: JBH). It's currently sitting on a price-to-earnings (P/E) ratio of just 9.54, yet has a trailing, fully franked dividend yield of 6.6%.

Harvey Norman Holdings Limited (ASX: HVN) is looking even cheaper. It has a P/E ratio of just 6.64 right now, but with a fully franked dividend yield of 8.34%. I wouldn't be surprised if these shares turn out to be market-beaters over the next few years at least.

So that's why I'm not saving for my retirement. I'm investing for it instead.

The post Don't 'save' for retirement! I'd invest in dirt-cheap ASX shares instead appeared first on The Motley Fool Australia.

Both of these dividend shares have been named as buys and tipped to provide attractive yields for income investors. Here's what you need to know about them:

Harvey Norman Holdings Limited (ASX: HVN)

The first ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs are positive on the company and have named it as a buy with a $4.80 price target.

The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics.

It expects this to support stronger than consensus earnings in FY 2023, which it feels means that Harvey Norman's shares are trading at an "attractive valuation."

As for dividends, Goldman is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.38, this will mean yields of 8.7% and 7.3%, respectively.

Macquarie Group Ltd (ASX: MQG)

Another ASX dividend share that could be in the buy zone is investment bank Macquarie.

The team at Morgan Stanley is positive on Macquarie and has an overweight rating and $215.00 price target on the company's shares.

The broker likes Macquarie due to its commodities exposure. Macquarie expects the company to benefit from volatility in commodities markets and believes it will be supportive of its earnings and dividends

Speaking of which, the broker is expecting partially franked dividends of $5.60 per share in FY 2023 and $6.05 per share in FY 2024. Based on the current Macquarie share price of $179.28, this will mean yields of 3.1% and 3.4%, respectively.

The post These ASX dividend shares have been tipped as buys by analysts appeared first on The Motley Fool Australia.

Take Wesfarmers Ltd (ASX: WES) shares as an example. Wesfarmers is the owner of Bunnings and Kmart. Its share price is 27% lower than it was in August 2021 and it's down 13% compared to mid-January 2022.

Investors need to ask themselves a few questions.

How much pain are the ASX 200 retail shares really going to report in FY23?

Have the share prices overreacted for what may only be a short-term problem?

Are they now opportunities?

I'm going to look at each of those questions.

FY23 pain?

ASX 200 retail shares may not see too much pain at all.

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) generate most of their earnings from supermarkets, which I think means their earnings will be fairly consistent and defensive. Metcash Limited (ASX: MTS), the hardware business and supplier to IGAs, saw a strong first half of its FY23 and reported ongoing growth in the first few weeks of FY23's second half.

Harvey Norman Holdings Limited (ASX: HVN) has started FY23 off with total sales growth in the first four months of the financial year, as did JB Hi-Fi Limited (ASX: JBH), Super Retail Group Ltd (ASX: SUL), and Premier Investments Limited (ASX: PMV) as they cycle against lockdowns in the first half of FY22 when many stores were shut.

Wesfarmers has said its retail store sales are doing well in the first few months of FY23.

Lovisa Holdings Ltd (ASX: LOV) sales and earnings are jumping higher as the company continues its global store rollout.

Breville Group Ltd (ASX: BRG) has said its business is performing to its expectations.

Despite many of them reporting impressive growth, their share prices are lower.

According to the Australian Bureau of Statistics (ABS), retail trade figures for November 2022 showed a 1.4% month-over-month rise in total Australian turnover and a 7.7% rise year over year.

Is it an overreaction?

Inflation and higher interest rates could cause a problem during 2023.

The higher repayments can take a while to flow through to mortgage holders, particularly ones that have been on, or are on, a fixed-rate mortgage. Will we see a sudden drop in retail spending growth? Perhaps even a decline?

It's quite possible. Plus, unemployment could rise. As well, ASX bank share arrears could increase.

Investors could justifiably point to a number of factors that could mean 2023 is not a good year for ASX 200 retail shares.

But the first half seems like it's going to be a solid report for many of the names I've mentioned.

Keep in mind that share prices are meant to reflect the long term, not just what's going to happen in the next six or twelve months.

While higher interest rates are meant to push valuations lower, I think some are too low considering many of these businesses continue to grow their store count and potentially gain from scale benefits.

Are ASX 200 retail shares in the bargain basket?

They aren't as cheap as they were a few months ago. However, I believe any negative hits to earnings will be time-limited to the next 12 to 18 months. A reduction in official interest rates in the future could mean a good boost to sentiment.

I'm very optimistic about the future of Wesfarmers, Premier Investments, Metcash, and Lovisa. So, at the current prices, they'd be the first four I'd buy in the sector.

Smaller ASX retail shares which have been hit even harder over the last year could be even more tantalising opportunistic ideas to consider at the lower share prices.

The post Are ASX 200 retail shares on sale in 2023? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is one of the best-performing sectors on the share market today. And this is the sector that is dominated by ASX retailers.

Just take Lovisa Holdings Ltd (ASX: LOV). Its shares are up a stellar 3.34%. Premier Investments Limited (ASX: PMV), the name behind Smiggle, Peter Alexander and Jay-Jays, is up 1.66%.

JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Dusk Group Ltd (ASX: DSK) are also seeing some healthy green numbers.

So what might be giving this embattled sector a boost this Friday?

Why are ASX 200 retail shares on fire today?

Well, it's possible that the latest economic numbers out of the United States overnight have helped to boost sentiment. According to the US Bureau of Labor Statistics, America's consumer price index (CPI) fell by 0.1% over the month of December, largely on the back of cheaper fuel prices.

This brings the annual inflation rate in the US down to 6.5%. That's the lowest figure in more than a year.

Lower inflation might mean that the US Federal Reserve might not be forced to lift interest rates as high as previously anticipated. This could have an effect on our own Reserve Bank of Australia (RBA)'s interest rate plans.

And lower rates are generally good news for shares. Especially those in the consumer discretionary sector, as these companies generally thrive when customers have more disposable income to spend.

We also got some good news earlier this week regarding Australia's retail sector. On Wednesday, the Australian Bureau of Statistics (ABS) revealed that retail spending in Australia lifted by 1.4% in November to a record high.

Although this was attributed to the rising popularity of the Black Friday sales, it is still potentially a sign that Australian retailers are in a good space right now.

So it could be a combination of these factors that are boosting investors' confidence in ASX 200 retail shares as we round out the second trading week of 2023.

The post Falling inflation! Could the party be back on for ASX 200 retail shares? appeared first on The Motley Fool Australia.