Day: 23 May 2020

7 Inexpensive, High-Dividend ETFs to Buy

[Editor's note: "7 Inexpensive, High-Dividend ETFs to Buy" was previously published in January 2020. It has since been updated to include the most relevant information available.]The universe of exchange-traded funds (ETFs) is awash in low-fee products, and the space is growing as issuers reduce their fees to lure investors.Income-seeking investors do not have to pay up to access high-dividend ETFs. In fact, numerous high-dividend ETFs can be inexpensive, which is an important point for income investors looking to keep more of those dividends and a higher share of their invested capital.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHigh-dividend ETFs are often embraced by long-term investors and over the long-term, lower fees can mean better outcomes for investors. * 7 Excellent Penny Stocks Ready to Roar Over the past several years, data confirm that when it comes to adding new assets, the best ETFs are usually those with annual fees of 0.20% or less. Plenty of high-dividend ETFs fit into that category, making it a cost-effective method for thrifty investors to access broad baskets of dividend stocks.Here are some high-dividend ETFs, with very low fees, for income-minded investors to consider. iShares Core High Dividend ETF (HDV)Source: Shutterstock Expense Ratio: 0.08%, or $8 annually per $10,000 investmentMany high dividend ETFs weight components by yield, a strategy that has some drawbacks. Those disadvantages include vulnerability to rising interest rates and the potential for exposure to financially challenged companies that may have trouble maintaining and growing dividends.The iShares Core High Dividend ETF (NYSEARCA:HDV) has a dividend yield of 3.53%, which is consistent with the S&P 500 and 10-year Treasuries. However, this high-dividend ETF follows the Morningstar Dividend Yield Focus Index, which screens companies for financial health, giving the fund a quality look.With an annual fee of just 0.08%, HDV is one of the cheaper high dividend ETFs on the market today. That low fee coupled with its sector allocations make HDV ideal for conservative investors.The healthcare, consumer staples, telecom and utilities sectors, four of HDV's top five sector weights, can all be considered defensive groups. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)Source: Shutterstock Expense Ratio: 0.07%The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is one of the least expensive dividend ETFs on the market, high dividend or otherwise.The ETF tracks the S&P 500 High Dividend Index, the high-dividend offshoot of the traditional S&P 500.SPYD's yield requirement gives this high-dividend ETF a focused roster, but the 12-month dividend yield of 3.14% makes this high-dividend ETF appealing for income investors relative to standard broad market funds. * 10 Lithium Stocks to Buy Despite the Market's Irrationality SPYD relies heavily on high-income sectors that have shown historical vulnerability to rising interest rates. The real estate and utilities sectors combine for about 30% of this high dividend ETF's weight. Invesco Dow Jones Industrial Average Dividend ETF (DJD)Source: Shutterstock Expense Ratio: 0.07%The Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) is a yield-weighted approach to the venerable Dow Jones Industrial Average. What this high-dividend ETF does is weigh the 30 Dow stocks by their trailing 12-month dividend, not price, as the traditional Dow does.DJD's yield focus makes IBM(NYSE:IBM) the high dividend ETF's largest holding. DJD's largest sector weight is technology, and the fund devotes just 7.8% of its assets to consumer goods.While DJD appears to be a high-dividend ETF, the fund offers significant dividend growth potential because many of the Dow's 30 member firms have payout-increase streaks that can be measured in decades. Invesco S&P 500 Quality ETF (SPHQ)Source: Shutterstock Expense Ratio: 0.15%With a distribution rate of just 1.5%, the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) does not scream "high dividend ETF." SPHQ's underlying index, the S&P 500 Quality Index, does not even emphasize dividends.Rather, that benchmark focuses on firms "that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio," according to Invesco.While SPHQ is not explicitly a high -dividend fund, reliable, growing dividends are often a hallmark of companies meeting the standards of the quality factor. * 7 Financial Stocks with Dependable Dividends With a combined weight of nearly 45% to the technology and health care, SPHQ has the feel of a growth ETF, but that means this fund also pairs well with more traditional high-dividend ETFs, such as some of the funds highlighted above. Vanguard High Dividend Yield ETF (VYM)Source: Shutterstock Expense Ratio: 0.06%Home to $26.8 billion in total net assets, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is one of the largest dividend ETFs of any variety. It is not unreasonable to believe that VYM's name frames the fund as a high-dividend ETF, but a yield of 2.83% is not alarmingly high.More importantly, VYM is not overly dependent on rate-sensitive sectors. This high-dividend ETF features no real estate exposure and the bond-esque telecom and utilities sectors combine for just 14.5% of VYM's weight.Nearly a quarter of the fund's holdings hail from the industrial and healthcare sectors. Financials, a sector that has been a major driver of S&P 500 dividend growth over the past year, is this high dividend ETF's largest sector exposure at 18.5%. JPMorgan U.S. Dividend ETF (JDIV)Source: Shutterstock Expense Ratio: 0.12%The JPMorgan U.S. Dividend ETF (NYSEARCA:JDIV) is one of the youngest funds on this list, having debuted in late 2017, but it fits the bill as a cost-effective, high-dividend ETF.JDIV "utilizes a rules-based approach that adjusts sector weights based on volatility and yield and selects the highest yielding stocks," according to the issuer. * 7 A-Rated Gold Stocks to Buy For Your Portfolio Hedge With a 12-month yield of 3.26%, JDIV has high-dividend ETF credentials. JDIV's annual fee of 0.12% is quite low. Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)Source: Shutterstock Expense Ratio: 0.20%The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (NYSEARCA:HDEF) targets the MSCI EAFE High Dividend Yield Index, a benchmark that is a high-dividend derivative of the widely followed MSCI EAFE Index.While HDEF is a credible name among international high dividend ETFs, the laggard status of European stocks has hindered HDEF in recent years.On the more positive side of the ledger is ex-U.S. dividend growth and valuation opportunities across developed markets, two traits that speak to long-term opportunity with HDEF.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 7 Inexpensive, High-Dividend ETFs to Buy appeared first on InvestorPlace.

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23 May 2020
Top brokers name 3 ASX dividend shares to buy
When it comes to dividend shares there are countless options for investors to choose from on the ASX. Which certainly is fortunate with rates going down to record lows.

But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down I have picked out three dividend shares that brokers think investors should buy:

Aventus Group (ASX: AVN)

According to a note out of Goldman Sachs, its analysts have upgraded this retail property company’s shares to a buy rating with a $2.46 price target. The broker believes Aventus is well positioned to prosper as Australia gradually re-opens. This is due to its large format retail portfolio being weighted towards everyday needs and homewares, electrical, furniture, bedding and hardware. Everyday needs account for 38% of rental income, whereas the others make up the balance. In light of this, it has forecast Aventus paying a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~8.7% distribution yield.

Rio Tinto Limited (ASX: RIO)

Analysts at Morgans have retained their add rating and lifted the price target on this mining giant’s shares to $105.00. According to the note, the broker believes iron ore prices could surge higher from here due to supply disruptions. It doesn’t believe this is being reflected in its share price. In addition to this, the broker believes Rio Tinto will return significant funds back to shareholders again through dividends. So much so, it estimates that its shares are offering a fully franked ~9% FY 2021 dividend yield at present.

Service Stream Limited (ASX: SSM)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this essential network services company’s shares to $2.88. According to the note, the broker wasn’t overly surprised that Service Stream’s guidance for FY 2020 fell short of its estimates. It believes these delays were caused by clients not wanting to disrupt connections in both utility and telecommunications while people work from home. Macquarie expects this to be a temporary headwind and remains upbeat on the future. It is forecasting a fully franked dividend of 8.4 cents per share in FY 2021. This means a yield of almost 4.2%.

And here is a fourth buy-rated dividend share which continues to grow even during the pandemic…

NEW: Expert names top dividend stock for 2020 (free report)

When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

See the top dividend stock for 2020

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT and Service Stream Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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23 May 2020
Johns Hopkins Doctor: We’re not going to get a vaccine for everyone in the world for a long time

John Hopkins Biocontainment Unit Medical Director Dr. Brian Garibaldi joins Yahoo Finance’s Zack Guzman to discuss the timeline of a coronavirus treatment, as global cases surpass 5 million, according to John Hopkins data.

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23 May 2020
3 ASX 200 growth shares I want to buy for my portfolio
S&P/ASX 200 Index (ASX: XJO) growth shares are a great way to grow your wealth faster than the broader share market in my opinion.

It’s the shares that are increasing their revenue and profit at a fast pace that can compound with solid results. ASX 200 growth shares can be big enough to be able to get through this coronavirus period, whilst being small enough to still have plenty of growth potential.

Here are three ASX 200 growth shares I’d love to buy for my portfolio:

A2 Milk Company Ltd (ASX: A2M)

I think A2 Milk Company is one of the best shares on the ASX. It has good profit margins, a quality group of products and a very large total addressable market.

The fact that it’s expanding in both China and the US is right compelling for future profit growth. The current crisis is not dampening A2 Milk’s growth. Indeed it actually seems to be accelerating growth with some customers stocking up on product. I think it’s attractive that A2 Milk can target an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 30% while still growing so fast.

Another reason why A2 Milk is one of the best ASX 200 growth shares is its large cash balance which means it would have plenty of liquidity to survive even if it wasn’t still earning growing profit.

Xero Limited (ASX: XRO)

I believe Xero is another of the best growth ideas out there. The cloud accounting business has been growing its total subscribers at a fast rate since it first listed on the ASX. Those new subscribers come with a high gross profit margin and pay a pleasing monthly amount to Xero.

The current coronavirus crisis is starting to cause some issues for the ASX 200 growth share. Don’t forget that Xero’s clients are small and medium businesses.

But as long as Xero can keep growing total global subscribers over the longer term then there’s still a lot to like about Xero. It’s now starting to make a net profit and it’s also generating positive free cash flow.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another of the best on the ASX. It has a global, high-quality client base signed on with multi-year agreements.

The ASX 200 growth share also has no debt with a growing cash balance. There are plenty of growth levers that Pro Medicus can pull. It has a very high earnings before interest and tax (EBIT) margin of 50.2%. With such a high profit margin, a lot of the new revenue just falls straight to the bottom line.

A fast growing dividend is also another bonus.

Foolish takeaway

All three of these ASX 200 growth shares are great businesses worthy of being in any portfolio. The problem is buying them at a good price. I don’t want to overpay for these shares. The prices we saw in March 2020 for Pro Medicus was good enough to buy, but not right now. At the moment I’d probably say A2 Milk is the best buy, particularly as it’s about to expand into Canada.

But there are other top growth shares out there trading at good prices.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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23 May 2020
3 under the radar ASX tech shares to watch
If you’re looking for a little exposure to the small cap side of the market, then the three shares listed below could be worth watching closely.

While not all small caps live up to their potential, I think these three have a good chance of doing so. Here’s why I think they should be on your watchlist:

Dubber Corp Ltd (ASX: DUB)

Dubber is a software company that provides businesses with an extremely scalable call recording service. This service has been adopted as core network infrastructure by multiple global leading telecommunications carriers in North America, Europe and the Asia Pacific. The cloud-based technology allows businesses to record, manage, and analyse their phone calls and communications. They can even use artificial intelligence to analyse the emotions and stress levels of a caller. Demand for its offering has been growing strongly over the last couple of years, leading to a strong increase in active customers and revenue.

Nitro Software Ltd (ASX: NTO)

Another small cap to watch is Nitro Software. It is a software company which provides document productivity solutions for businesses. In a recent presentation, the company revealed that it has over 2 million licensed users and over 11,000 business customers. The latter includes 65% of the Fortune 500 and three of the Fortune 10. Solid customer growth and its high retention rate have led to impressive recurring revenue growth over the last few years. I expect more of the same in the coming years.

Whispir (ASX: WSP)

A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider which I think has a lot of potential. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Whispir is well funded and appears well-placed to deliver another strong result in FY 2020. During the first half its annualised recurring revenue increased 22% to $36.7 million. I expect an even stronger second half thanks to the work from home initiative which is driving increasing demand.

And don’t miss this fourth ASX share which has the potential to deliver market beating returns consistently over the next 10 years…

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

Find out the name of Scott’s ‘All in’ Buy Alert

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Whispir Ltd. The Motley Fool Australia has recommended Nitro Software Limited and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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23 May 2020
Trump ‘not going to close’ U.S if second coronavirus wave occurs

Yahoo Finance’s Kristin Myers joins Zack Guzman to discuss President Trump’s remarks about keeping the country open if a second wave of the coronavirus occurs.

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23 May 2020
Why these ASX stocks will be under the spotlight on Monday
Reluctance to be a first mover is now turning into a race for state premiers!

The risk averse Victorian premier Daniel Andrews declared that the state’s tourism sector is back in business with a significant easing of restrictions from next month.

The decision comes two days after his counterpart in South Australia made a surprise decision to reopen pubs and clubs immediately as it tries to play catchup with New South Wales.

Positive sentiment could lift these ASX shares

Victoria will open the ski season from June 22, while overnight stays will be allowed from June 1, according to the Australian Financial Review.

The move will not be a major earnings booster for ASX shares linked to the tourism industry. Interstate travel is still barred so forget about Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN) for the moment.

But this latest development from one of the most conservative state leaders will provide a further lift to sentiment for the likes of Webjet Limited (ASX: WEB) and rival Flight Centre Travel Group Ltd (ASX: FLT).

And the big rebound in the S&P/ASX 200 Index (Index:^AXJO) from its bear market low of March 23 shows how a little bit of good feeling can make a big difference.

More easing in the near-term

The pressure is building on removing the ban on interstate travel, particularly in Queensland where Premier Annastacia Palaszczuk is resisting calls to open its borders until September at the earliest.

International travel to a select few countries that the COVID-19 pandemic under firm control, such as New Zealand, may also happen sooner than what many think.

The big easing of social restrictions by the Andrews government was more liberal than expected and is due to the mass coronavirus testing in the state.

Is mass testing the answer to COVID-19?

Victoria tested 6340 per 100,000 people – making its population the most tested in Australia and one of the world’s most tested in the world if the state was a country. The state has undertaken more than 420,000 coronavirus tests.

South Korea have used mass testing as a way of containing the virus and is hailed as one of the most successful countries in the world to squash the COVID-19 curve.

But some experts do not believe mass testing is the answer and they point to Japan where the death rates are low and testing is extremely limited.

Last sector to recover from COVID-19

Victoria is not extending the easing to offices though. The premier is not allowing employees to return to their regular work desks, and that is bad news for landlords such as GPT Group (ASX: GPT) and DEXUS Property Group (ASX: DXS).

Premier Andrews believes high-rise dense office environments are the perfect breeding grounds for coronavirus.

This makes me wonder if office-exposed real estate investment trusts (REITs) will be the last in the property sector to recover from the COVID-19 disaster.

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

Find out the name of Scott’s ‘All in’ Buy Alert

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Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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23 May 2020
3 top ASX mid cap shares to buy and hold for a decade
One of the most effective investment strategies is buy and hold investing.

With this strategy investors will buy the shares of quality companies (with positive long term outlooks) and hold onto them for as long as the investment thesis remains intact.

But which shares should you buy? Here are three mid cap ASX shares that I think would be quality buy and hold options:

BINGO Industries Ltd (ASX: BIN)

BINGO is one of Australia’s leading waste management companies. I think it would be a great long term option for investors. This is due its expansion plans and the recent acquisition of rival Dial a Dump Industries. This acquisition has allowed BINGO to be fully vertically integrated from collections to landfill. It also makes it the largest player in B&D waste in Sydney and provides some much-needed diversification. And while its short term performance is likely to be impacted by the pandemic, I expect things to recover quickly once the crisis passes.

Collins Foods Ltd (ASX: CKF)

Another mid cap to consider buying is Collins Foods. It is one of the region’s largest quick service restaurant operators with 240 KFC stores in Australia, 41 KFC stores in Europe, 12 Taco Bell restaurants in Australia, and 75 franchised Sizzler restaurants across Asia. I believe it would be a great long term option due to its sizeable opportunity in the under-penetrated European market. It has a significant expansion opportunity over the next decade, which could underpin strong earnings growth.

Nearmap Ltd (ASX: NEA)

A final option to consider is Nearmap. It is a leading aerial imagery technology and location data company that gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This helps users conduct virtual site visits, which enables informed decisions, streamlined operations, and ultimately significant cost savings. While its growth has taken a bit of a hit this year, I believe this is just a temporary hiccup and its long term potential remains extremely positive.

And here is a fourth option that could provide investors with very strong long term returns. No wonder this leading analyst is urging investors to go all in with it…

One “All In” ASX Buy Alert, that could be one of our greatest discoveries

Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

Find out the name of Scott’s ‘All in’ Buy Alert

More reading
Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Collins Foods Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 top ASX mid cap shares to buy and hold for a decade appeared first on Motley Fool Australia.

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23 May 2020
How I would build a $130,000 ASX dividend portfolio right now
Having a spare $130,000 to invest in an ASX dividend portfolio is probably an unlikely scenario for most readers (as well as this writer). But that doesn’t mean it’s not a valuable thought exercise!

Building a portfolio of ASX dividend shares typically takes years, a lot of dedication and a lot of discipline. But it’s entirely achievable all the same.

So if this was my ASX investing goal, here’s how I would construct a $130,000 portfolio of ASX dividend-paying shares.

Macquarie Group Ltd (ASX: MQG) – $30,000

My first $30,000 would go to Macquarie shares. Macquarie is one of the best ASX financials in the current environment, in my view. Unlike the big four ASX banks, Macquarie’s earnings come from highly diversified streams, including from outside the country.

Traditional banking services like loans and mortgages only make up a small fraction of Macquarie’s total business. Much more instrumental is Macquarie’s well-regarded investment banking business, as well as its annuity-style asset management side, which I think are huge advantages in these uncertain times.

On current prices, Macquarie is offering a trailing dividend yield of 4.15%, which normally comes partially franked. As such, I think Macquarie is a great financial company to start off our dividend portfolio.

WAM Research Ltd (ASX: WAX) – $40,000

WAM Research is actually a listed investment company (LIC), which means it primarily invests in other ASX shares rather than operating a business. But WAM Research has proven pretty deft at this, returning an average of 13.4% per annum (before fees) since 2010.

The reason WAX shares are getting an oversize position in our hypothetical portfolio today is its massive dividend yield. On current prices, this LIC is offering a trailing yield of 7.22%, which typically comes fully franked.

Telstra Corporation Ltd (ASX: TLS) – $30,000

Telstra is a dividend stalwart and offers a compelling enough return on current prices (in my opinion anyway) to justify inclusion in a dividend portfolio.

Right out of the gate, Telstra is offering investors a fully franked 5.21% starting yield (including the special dividend Telstra pays). But I also think that the 5G network Telstra is investing heavily in right now will pay further dividends down the road (literally). I think this investment in the next-gen 5G technology will play out very well for this telco giant, but even if it doesn’t, there’s that healthy dividend to ease the pain!

Brickworks Limited (ASX: BKW) – $30,000

Brickworks is one of the oldest and proudest dividend shares on the ASX, in my view and well deserves a place in this dividend portfolio. Its core building materials business is a lucrative one for Brickworks, but it’s also very cyclical, which can be bad news for a dividend-paying company. Luckily, Brickworks nullifies this cyclicality by investing on other revenue streams, including real estate and a cross-ownership with dividend king Washington H. Soul Pattinson & Co Ltd (ASX: SOL).

This has enabled Brickworks to pay a dividend that has either been steady or grown for over 40 years. That’s some solid reliability, in my opinion. On current prices, Brickworks is offering a trailing dividend yield of 4.25%, which comes fully franked.

That’s it for our $130k portfolio, but you shouldn’t leave the dividend share named below out!

NEW: Expert names top dividend stock for 2020 (free report)

When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

See the top dividend stock for 2020

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited, WAM Research Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post How I would build a $130,000 ASX dividend portfolio right now appeared first on Motley Fool Australia.

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23 May 2020
Top brokers name 3 ASX shares to buy next week
Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

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

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but lowered their price target on this gaming technology company’s shares to $28.50. While the broker acknowledges that there is uncertainty in regard to how long it will take for its land based segment to recover from the pandemic, it believes it is better placed than its rivals due to its market leading suite of games. It also notes that it has a strong balance sheet, giving it the option to pursue acquisitions. I agree with Goldman Sachs and would be a buyer of its shares with a long term view.

Sonic Healthcare Limited (ASX: SHL)

Analysts at Citi have retained their buy rating and $32.50 price target on this healthcare company’s shares. According to the note, the broker believes Sonic Healthcare has a lucrative opportunity in the U.S. with COVID-19 testing. Even if it only wins a small share of the multi-billion dollar market, it suspects it could give its revenue and earnings a major boost. I think Citi makes some good points and Sonic Healthcare could be worth a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

A note out of Morgans reveals that its analysts have retained their add rating but cut the price target on this healthcare technology company’s shares to $1.68. The broker made a small reduction to its price target after factoring Volpara’s recent $37 million capital raising into the equation. The proceeds will be used for general working capital purposes and to fund potential future acquisition opportunities. Overall, the broker believes Volpara is well placed for growth over the coming years and thus holds firm with its positive rating. I agree with Morgans and feel Volpara is a good option for investors looking for small cap exposure.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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23 May 2020