Day: September 18, 2021

2 buy-rated ASX dividend shares with 4%+ yields

large block letters depicting four percent representing high yield asx dividend shares

If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Here’s why analysts have given them buy ratings:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a fully integrated owner, manager, and developer of large format retail centres with a portfolio of 20 centres valued at $2.3 billion.

Across these centres the company has a diverse tenant base of 593 tenancies, with national retailers representing 88% of the total portfolio.

Aventus has continued to experience solid demand for its tenancies despite the pandemic. This led to the company reporting an occupancy rate of 98.8% in FY 2021. This underpinned a 9.6% increase in funds from operations to $110 million for the year.

The team at Goldman Sachs is very positive on the company. It currently has a buy rating and $3.40 price target on its shares. Goldman is also forecasting dividends of 17.8 cents per share in FY 2022 and then 19.4 cents per share in FY 2023.

Based on the current Aventus share price of $3.27, this will mean yields of 5.4% and 5.9%, respectively.

Westpac Banking Corp (ASX: WBC)

This banking giant’s shares may have risen strongly this year, but a number of leading brokers still believe they are good value.

This is thanks largely to its strong capital position, improving trading conditions, and its bold cost reduction targets. In respect to the latter, Westpac is aiming to reduce its cost base to $8 billion in the coming years. This will be a sizeable reduction from $12.7 billion currently.

It is largely for this reason that Citi is a big fan of the bank. The broker currently has a buy rating and $30.00 price target on its shares. This compares to the latest Westpac share price of $25.88.

Citi is forecasting fully franked dividends of $1.16 per share in FY 2021 and then $1.30 per share in FY 2022. This represents yields of 4.5% and 5%, respectively, over the next couple of years.

The post 2 buy-rated ASX dividend shares with 4%+ yields appeared first on The Motley Fool Australia.

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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3 small cap ASX shares analysts rate highly

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

If you have a penchant for investing in small cap shares, then you might want to look at the three listed below.

Here’s why these are highly rated by analysts right now:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share to look at is Audinate. It is the leading digital audio-visual networking technologies provider behind the Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems, converging all previous connection types into one. The solution is the clear industry leader, with the number of Dante enabled products manufactured by its customers eight times greater than its nearest rival.

UBS is a fan of the company. It currently has a buy rating and $11.75 price target on Audinate’s shares.

Bigtincan Holdings Ltd (ASX: BTH)

A second small cap to look at is Bigtincan. It is a growing provider of enterprise mobility software to sales and service organisations. The company notes that its mobile, AI-powered sales enablement automation platform features the industry’s premier user experience that empowers sales representatives to more effectively engage with customers. Bigtincan’s recurring revenues have been growing strongly in recent years but are still only scratching at the surface of a huge global market opportunity.

Morgan Stanley is positive on the company. It currently has an overweight rating and $2.10 price target on its shares.

Booktopia Group Ltd (ASX: BKG)

A final small cap ASX share to watch is Booktopia. It is an online book retailer which really caught the eye in FY 2021. For the 12 months ended 30 June, the company reported a 35% increase in revenue to $223.9 million and a 125% jump in EBITDA to $13.6 million. This was driven by record shipments of 8.2 million units, which was underpinned by its new distribution centre and strong demand. Pleasingly, it has started FY 2022 in a positive fashion. Management advised that sales in July and August were higher than the prior corresponding period.

This went down well with Morgans. In response, the broker retained its add rating and lifted its price target to $3.72.

The post 3 small cap ASX shares analysts rate highly appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Motley Fool contributor 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 and has recommended AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2 top ASX dividend shares to think about

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

It can be difficult to find options for income in this era of record-low interest rates. ASX dividend shares could be a good way to generate that required cashflow.

Businesses have the ability to pay some of the profit they make each year to investors.

However, just because a business pays a dividend or distribution, doesn’t automatically make it a buy for income.

But these two ASX dividend shares could be good to think about:

Adairs Ltd (ASX: ADH)

In FY22, Commsec estimates suggest that Adairs has a forward grossed-up dividend yield of 8%. That’s based on an annual dividend per share of around $0.22.

Adairs is a leading retailer on homewares and furnishings. It has a large store network across Australia and New Zealand, as well as a large online presence. The company made 37.4% of its total sales online. The company saw total sales increase by 28.5% to $500 million.

The company experienced a strong increase of profitability during FY21 with the group underlying earnings before interest and tax (EBIT) rising by 98.2% to $96.7 million. Some of this growth was driven by a 520 basis point increase of the underlying gross profit margin to 66.7%.

But it’s looking to continue to grow profit. The supply chain is a key focus, with a new DHL-operated national distribution centre operational this month (September 2021). This should lead to annualised cost savings of around $3.5 million per annum.

Store floor space growth could be another area of growth. The ASX dividend share says that store sales are highly correlated to store floor space with each additional square metre adding around $4,000 in store sales. It expects to grow its gross lettable area (GLA) by 8% (or more) in FY22 and by 5% (or more) for the following five years through new and upsized stores.

The Adairs share price is valued at 11x FY22’s estimated earnings.

Inghams Group Ltd (ASX: ING)

Inghams is one of Australia’s largest poultry businesses. It provides chicken, turkey and plant-based protein products. The poultry business has a number of customers including major retailers, quick service (fast food) restaurants, food service distributors and wholesalers.

The ASX dividend share’s vertically integrated operating model enables the business to create value and realise efficiencies across a complex and large scale supply chain, according to management.

Inghams saw FY21 statutory earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 14.5% to $443.9 million. Meanwhile, statutory net profit rose by 107.7% to $83.3 million. This enabled the business to grow its total dividend by 17.9% to 16.5 cents per share.

In FY22, Commsec estimates suggest that Inghams is going to pay a grossed-up dividend yield of 6.4%.

Inghams says it’s looking to pay reliable dividends to shareholders, with a dividend payout ratio of 60% to 80% of underlying net profit after tax. It’s focusing on revenue growth and “continuous improvement benefits”.

It’s expecting to growth volume with new business across various channels. It’s looking to secure growth opportunities with existing customers and product innovation.

Inghams is investing across its network to improve and grow its operations, including the WA hatchery as well as a systems modernisation project.

Citi currently rates Inghams as a buy with a price target of $4.55. Using the broker’s forecast, Inghams is valued at 16x FY22’s estimated earnings.

The post 2 top ASX dividend shares to think about appeared first on The Motley Fool Australia.

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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Inghams wasn’t one of them.

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*Returns as of August 16th 2021

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Motley Fool contributor 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 and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Leading broker says the PointsBet (ASX:PBH) share price has 51% upside

Couple cheer and celebrate after winning on online bet while sitting on sofa

The PointsBet Holdings Ltd (ASX: PBH) share price was back on form again on Friday.

The sports betting company’s shares rose a sizeable 6% to end the week at $9.75.

However, despite this strong gain, PointsBet’s shares are still down a disappointing 15% year to date.

Is the PointsBet share price good value?

One leading broker that sees a lot of value in the PointsBet share price right now is Goldman Sachs.

According to a recent note, the broker has put a buy rating and $14.75 price target on the company’s shares.

Based on the current PointsBet share price, this implies potential upside of 51% over the next 12 months.

What did the broker say?

Goldman was pleased with the company’s performance in FY 2021 and remains confident on the future. Particularly given its huge opportunity in the United States market and its strong position within it following its deal with NBCUniversal.

The broker estimates the US market will be worth US$37 billion per annum by FY 2033.

Goldman explained: “We reiterate our Buy rating on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market, ii) our view that PBH is well-placed to achieve 10% share in states it operates in, iii) upside risk to LR sustainable margins in Aus and the US, iv) Scalability benefits ahead noting positive impacts from the NBCUniversal deal to come and iGaming synergies, and v) strong management team and execution track record. Stay Buy with our view that current share price levels do not reflect much upside from potential license wins in states such as NY.”

All in all, the broker believes this makes the PointsBet share price great value at the current level.

The post Leading broker says the PointsBet (ASX:PBH) share price has 51% upside appeared first on The Motley Fool Australia.

Should you invest $1,000 in PointsBet right now?

Before you consider PointsBet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PointsBet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor 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 and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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