The weekend can be a good time to evaluate quality ASX shares when there isn’t all the ‘noise’ of the daily market action.

Some businesses are growing at an attractive rate and this could lead to satisfying compounding results over time.

Here are two that might be contenders:

ELMO Software Ltd (ASX: ELO)

ELMO is one of the globally, fast-growing software businesses on the ASX. It provides a number of different modules relating to HR, payroll and people.

The company is reporting double digit growth each quarter. In the first quarter of FY22, annual recurring revenue (ARR) grew 61% to $88.5 million, with organic ARR growth of 35%. Actual revenue increased 52% to $20.7 million for the quarter and cash receipts grew 78% to $27.7 million.

Whilst ELMO’s core mid-market software continues to grow well and it’s returning to pre-COVID growth, the small business market product from the acquired Breathe UK business is also growing well. Breathe saw growth of 55% year on year.

During the last quarter, the ELMO mid-market solution was launched into the UK and Breathe was launched into Australia. The ASX share has three pillars to its expansion strategy: segment expansion, module expansion and geographic expansion.

ELMO says that it has strong momentum entering the second quarter with a positive macroeconomic backdrop and with small and medium businesses adopting cloud-based solutions to manage a flexible workforce.

In FY22, the business is expecting ARR to end at $105 million to $111 million, revenue to grow to between $90.5 million to $95.5 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of between $1 million to $6 million.

Audinate Group Ltd (ASX: AD8)

Audinate is a business that is trying to improve the AV sector with its Dante audio over IP networking solution which it says is the world leader and used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries. It replaces analogue cables with a single ethernet cable.

The ASX share recently gave a trading update for the first quarter of FY22, which showed a record amount of revenue. The revenue generated was US$7.6 million, an increase of 46.1% year on year. This record was achieved during a period when factory closures in both Malaysia and China limited further revenue growth.

Audinate is benefiting from record demand, with the backlog of orders for chips, cards and modules amounting to US$14.8 million at the end of the quarter.

Management explained that this growth from a pre-COVID backlog levels of around US$2.5 million reflects original equipment manufacturer (OEM) customers placing orders further into the future and strong underlying growth in demand.

However, the component shortage is expected to impact the second half of FY21. It’s panning to bring forward the next generation Booklyn product by the fourth quarter of FY22, with customers expected to be able to incorporate it into their products with little or no re-design. It will use a next generation chip which is not dependent on the capacity constrained chip foundry from its supplier.

The ASX share is focusing on accelerating its product transitions to platforms with improved supply outlook and alternative part availability.

It’s still expecting FY22 US dollar revenue growth, though not in the pre-COVID historical range.

The post 2 quality ASX shares to research this weekend appeared first on The Motley Fool Australia.

More reading

• Codan (ASX:CDA) share price hits new one-year low
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• ELMO (ASX:ELO) share price surges 8% on first-quarter update
• Why Audinate, Home Co Daily Needs, Infomedia, and Temple & Webster are falling
• Audinate (ASX:AD8) share price crashes 10% on Q1 update

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 AUDINATEGL FPO and Elmo Software. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Elmo Software. 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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Compelling ASX dividend shares might be worth looking at during November 2021.

Interest rates are still expected to stay low for years, which could make the investment income from these businesses attractive to think about.

Not every business that pays a dividend has a history of consistency, but these two do:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX dividend share with the longest dividend growth record on the ASX. The investment conglomerate has increased its dividend every year since 2000.

It has a diversified portfolio, which helps it lower exposure risk to any particular industry or investment. Some of sectors that it’s invested in includes telecommunications, building products, resources, property, agriculture, financial services and listed investment companies (LICs).

In terms of actual businesses it is invested in, they include: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Ampcontrol, Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Bki Investment Co Ltd (ASX: BKI) and Round Oak.

The business receives investment income each year from its portfolio. This allows Soul Patts to pay out that steadily-growing dividend whilst re-investing for more opportunities.

After the recent merger with Milton, there are a number of areas that the ASX dividend share is looking for more opportunities: global shares, health and ageing, the energy transition, agriculture, financial services and education. The Milton merger will give it more than $2 billion of additional liquidity as well as additional debt capacity at a low cost.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.7%

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the larger real estate investment trusts (REITs) on the ASX with a market capitalisation of around $3 billion according to the ASX.

It owns a portfolio of different properties across different sectors. The one thing that all the properties have in common is that the REIT aims to have a long rental tenancy with them.

Some of the sectors it’s invested in includes social infrastructure, office, industrial, diversified long weighted average lease expiry (WALE), convenience retail, hospitality and agri-logistics.

After its latest transaction, this business is expected to have a WALE of 12.6 years with a weighted average rent review (WARR) of 2.9%.

It has many high-quality tenants including Endeavour Group Ltd (ASX: EDV), various federal and state government entities, Telstra Corporation Ltd (ASX: TLS), BP, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones and Metcash Limited (ASX: MTS).

The ASX dividend share’s property portfolio has an occupancy rate of 98.4%. Combined with the long WALE, this business has a high level of income visibility.

It aims to pay investors a distribution payout ratio of 100%, which results in a relatively high yield.

At the moment, Charter Hall Long WALE REIT is rated as a buy by the broker Morgan Stanley, with a price target of $5.51.

Based on Morgan Stanley’s projections, the REIT will pay a yield of 6.3% for FY22.

The post 2 ASX dividend shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

More reading

• Why has the Soul Patts (ASX:SOL) share price tumbled 16% in a month?
• Soul Pattinson (ASX:SOL) share price wobbles as company touts track record
• Can the Brickworks (ASX:BKW) share price hit $30 by Christmas?
• 2 ASX dividend shares with large yields and consistent payouts
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in

Motley Fool contributor Tristan Harrison owns shares of Pengana International Equities Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks, COLESGROUP DEF SET, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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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The tech sector is home to a number of companies growing at a quick rate.

Three that have been standout performers recently are listed below. Here’s why they could be in the buy zone:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer – Adore Beauty. It has been growing at a strong rate in recent years thanks to the strength of its brand and the shift online. Pleasingly, after delivering a 48% increase in revenue to $179.3 million in FY 2021, the company has started the new financial year in a positive fashion. Earlier this month, Adore Beauty reported first quarter revenue of $63.8 million, up 25% on the prior corresponding period. Even if you annualise this, it is still only a fraction of the Australian beauty and personal care (BPC) market, which is estimated to be worth $11.2 billion. This gives it a long runway for growth over the next decade.

UBS is a fan of the company. It recently reaffirmed its buy rating and $6.00 price target.

NEXTDC Ltd (ASX: NXT)

Another tech share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. NEXTDC has been growing at a consistently strong rate for years thanks to the structural shift to the cloud. This has led to increasing demand for capacity in its growing network of world class data centres across Australia. FY 2022 will be no exception, with management guiding to full year EBITDA growth of 19% to 22%.

Citi currently has a buy rating and $15.40 price target on the company’s shares.

Xero Limited (ASX: XRO)

A final ASX tech share to consider is Xero. As with the others, this leading provider of a cloud-based business and accounting solution to small and medium sized businesses has been growing at a strong rate in recent years. Gone are the days of spreadsheets and notebooks, accounting is moving rapidly to the cloud and Xero is reaping the rewards thanks to its high quality platform. In addition to its core offering, Xero has an app store offering countless third party apps that make running a business easier. Xero clips the ticket on purchases through the app store, much like Apple does with its own store for iOS devices.

Goldman Sachs believes the app store could be a key driver of growth in the future, along with its ongoing global expansion. In light of this, it is very bullish and has a buy rating and $165.00 price target on its shares.

The post 3 explosive ASX tech shares to buy in November appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The Xero (ASX:XRO) share price is holding up ASX tech shares today
• Top brokers name 3 ASX shares to buy next week
• 3 reasons why the Adore Beauty (ASX:ABY) share price could be a buy
• 2 ASX shares that could be strong buys

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended Adore Beauty Group Limited. 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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Exchange-traded funds (ETFs) can be a great and easy way of increasing an ASX share portfolio’s diversification. Whilst there are many top companies on the ASX boards, the reality is that the world of investing is far more than just Australian companies. So with that in mind, here are 2 ASX ETFs that offer the opportunity for quality diversification for any ASX share portfolio today.

2 ASX ETFs for a diversified ASX share portfolio today

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF from VanEck holds a concentrated portfolio of US shares that are picked by Morningstar for the quality of their ‘moat’. A moat is a concept first defined by the great Warren Buffett. It speaks to a company’s intrinsic competitive advantage. If a company possesses a significant and permanent competitive advantage over its competitors, it acts as a ‘moat’ around a castle, preventing enemies from plundering it.

At the present time, this ETF holds such companies as Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Kellogg Company (NYSE: K), Microsoft Corporation (NASDAQ: MSFT) and Salesforce.com Inc (NYSE: CRM). Not the sort of companies available on the ASX.

This strategy of picking these ‘wide-moat companies’ seems to be working well for this ETF recently. Since its inception in 2015, MOAT has returned an average performance of 20.48% per annum. It charges a management fee of 0.49% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ETF to look at today is this offering from provider BetaShares. NDQ tracks the world-famous Nasdaq 100 Index over in the United States. The Nasdaq tends to house the newer, ‘cooler’ companies on the ASX.

Amongst its largest holdings, you will find the tech giants like Apple Inc (NASDAQ: AAPL), Microsoft, Alphabet and Facebook Inc (NASDAQ: FB). You’ll also get shares like PayPal Holdings Inc (NASDAQ: PYPL), Adobe Inc (NASDAQ: ADBE) and Netflix Inc (NASDAQ: NFLX).

Again, the ASX 200 is very lightweight when it comes to these kinds of technology leaders. As such, this ETF could help fill that gap in an ASX-dominated share portfolio quite nicely. It’s also got some healthy performance history to back it up. Since its ASX inception in 2015, NDQ has averaged a return of 22.41% per annum. It charges a management fee of 0.48% per annum.

The post 2 ETFs worth considering for a diversified ASX share portfolio today appeared first on The Motley Fool Australia.

More reading

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• Why is the Betashares Nasdaq 100 (ASX:NDQ) ETF share price struggling lately?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Kellogg, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, BETANASDAQ ETF UNITS, Facebook, Microsoft, Netflix, PayPal Holdings, and Salesforce.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Inc. and has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Apple, Facebook, Netflix, PayPal Holdings, Salesforce.com, and VanEck Vectors Morningstar Wide Moat ETF. 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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