Day: 11 January 2022

If you’re wanting dividend and growth options, then it could be worth considering Adairs Ltd (ASX: ADH) shares.

One leading broker believes that it could be an under the radar growth star with potentially big dividend yields.

Why could Adairs be a share to buy?

Adairs is a leading retailer of furniture, homewares, and home furnishings in Australia and New Zealand through its core Adairs brand and online Mocka brand.

In addition, the company has signed an agreement to acquire Focus on Furniture for $80 million. Management believes the acquisition is a clear strategic fit, with attractive growth potential and exposure to the $8.3 billion bulky furniture category.

The team at Morgans is a fan of the deal. And while it acknowledges that the acquisition only adds to the market’s concern that Adairs’ organic growth is limited in the near term, the broker feels this view is incorrect.

Morgans commented: “It seems to us that the market sees ADH as a COVID beneficiary that is unlikely to deliver much in the way of organic growth over the next few years. Buying Focus perhaps hasn’t done anything to dispel this notion.”

“But we think that’s unfair. Our estimates are for an EPS CAGR of 21% between FY20 and FY24F. The acquisition of Mocka and Focus play a large part in driving this, but even organically, a combination of a very strong loyalty programme, GLA growth and cost efficiencies underpin a growth story that we think is going under the radar,” it added.

Adairs’ dividends

As well as strong earnings growth, Morgans is forecasting generous dividends in the coming years.

According to the note, the broker has pencilled in fully franked dividends per share of 23 cents in FY 2022 and then 29 cents in FY 2023. Based on the current Adairs share price of $3.82, this will mean yields of 6% and 7.8%, respectively.

Morgans also sees significant upside for the Adairs share price. It has an add rating and $4.80 price target on its shares, which implies potential upside of almost 26% over the next 12 months.

The post Broker names Adairs (ASX:ADH) shares as a buy for growth and income investors appeared first on The Motley Fool Australia.

More reading

• A top broker reckons this ASX retail share is a buy with a 50% upside
• 2 ASX dividend shares with yields of more than 8%
• 2 ASX dividend shares to buy in January
• Top ASX shares to buy in January 2022
• 2 buy-rated ASX dividend shares with growing yields

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 and has recommended ADAIRS FPO. The Motley Fool Australia owns 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.

from The Motley Fool Australia https://ift.tt/3K1BlpV

ASX software-as-a-service (SaaS) shares proved their worth last year. The business model focused on sticky recurring revenues that brought home the cheese for some Aussie-listed companies in 2021.

Interestingly, often SaaS shares slot into the information technology sector. This is a sector that severely underperformed the S&P/ASX 200 Index (ASX: XJO) in 2021, with tech sliding 2.8% while the broader market rallied 13%. Yet, a number of SaaS companies racked up market-beating returns for their shareholders.

Let’s take a look.

ASX SaaS shares giving investors the juiciest rewards last year

Imdex Limited (ASX: IMD)

Shares in ASX-listed Imdex hit a home run last year, with the share price rallying 71% during the year.

The mining equipment and technology company attracted the market’s attention with a solid FY21 result. Impressively, the $1.12 billion company increased its revenue by 11.2% to $264.4 million year on year. Additionally, net profits surged 45% to $31.67 million.

While a substantial portion of the company’s revenue is comprised of once-off sales and equipment rentals, there is a growing portion of SaaS-based revenue. Between FY17 to FY21, rental and SaaS revenue has increased from 44% to 57% of total revenue.

Readytech Holdings Ltd (ASX: RDY)

Entering the arena of the five best ASX SaaS shares of 2021 is ReadyTech Holdings. This company provides cloud-based software to the education, employment, and government sectors. For shareholders, ReadyTech also provided sizeable returns last year — rising 87% in the 12-month timeframe.

According to its FY21 full year presentation, the education software provider achieved respectable growth during the financial year. For instance, revenue increased 27.4% to $50 million compared to the previous year.

Although, earnings decreased to $2.16 million from $3.94 million. However, it’s worth noting ReadyTech acquired Open Office for an upfront price of $54 million during this time.

WiseTech Global Ltd (ASX: WTC)

Making the podium finish is cloud-based logistics software provider, WiseTech Global. In 2021, the company dished out a 90% gain to investors.

WiseTech continued to grow its top line during 2021, a year plagued by supply chain and logistics issues. Perhaps this enabled a more robust trading period for the ASX SaaS share. In FY21, revenue increased 18% to $507 million compared to the prior corresponding period.

Additionally, the sticky nature of the company’s software was reflected in its percentage of recurring revenue, at nearly 96%.

Janison Education Group Ltd (ASX: JAN)

Breaking into the 100%-plus return club last year and finding itself as the second best-performing ASX SaaS share is Janison Education. The online school assessments provider experienced a 130% rise in its share price in 2021 — a 10 times better return than the benchmark index.

For those unaware, Janison offers assessment platforms to a wide array of customers including the New South Wales government, NAPLAN, Chartered Accountants, and the University of London — to name a few. It appears shareholders weren’t too concerned about the widening losses in FY21. Notably, the company grew revenue by 38% to $30.2 million.

Janison has $80 million to $100 million in revenue on its radar through growing its customer contracts and consolidating the digital assessments industry with its acquisition strategy.

Life360 Inc (ASX: 360)

Taking the top spot as the best ASX SaaS share of 2021 is the high-flying family safety service, Life360. Shares in the company gained an impressive 156% in a busy year.

Investors took a closer look at Life360 after Randi Zuckerberg joined the board of the company. At the time, this was considered a vote of confidence to Wilson Asset Management portfolio manager Tobias Yao.

Since then, the company has gone on to make two acquisitions — Jiobit and Tile. These acquisitions totalled more than $200 million worth of investments in 2021.

The post Sticky revenue winners. Here are the 5 best ASX SaaS shares of 2021 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Why Afterpay, BrainChip, Medibank, and WiseTech shares are racing higher
• 2 excellent ASX tech shares to buy after the market meltdown
• 5 best ASX 200 tech shares of 2021
• These were the 5 best performing ASX 200 shares in 2021

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Imdex Limited, Janison Education Group Limited, Life360, Inc., Readytech Holdings Ltd, and WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended Janison Education Group Limited and Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3Gj9tvi

If you’re looking for dividend shares to buy, then you may want to look at the two listed below.

Here’s why these ASX dividend shares are rated as buys by the team at Morgans:

Bapcor Ltd (ASX: BAP)

The first ASX dividend share could be a buy is Bapcor. It is Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions.

It has been growing at a solid rate over the last few years. This has been underpinned by its strong market position, growing store footprint, a favourable redirection in consumer spending, and robust demand for used cars.

The team at Morgans appear to believe this positive form can continue. The broker likes Bapcor as it “continues to prove its earnings defensiveness with solid organic/inorganic growth prospects over the medium-term.”

As for dividends, Morgans is forecasting fully franked dividends per share of 21 cents in FY 2022 and then 23 cents in FY 2023. Based on the current Bapcor share price of $6.93, this will mean yields of 3% and 3.3%, respectively.

Morgans has an add rating and $8.45 price target on the company’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share that Morgans rates highly is Telstra. The broker currently has an add rating and $4.55 price target on the telco giant’s shares. Morgans has been pleased with the success of the T22 strategy and the new T25 strategy that comes into place later this year.

It commented: “From a bottom-up perspective, the [Telstra] business has been transformed over the last few years. The outlook has turned from fighting an uphill battle against NBN and declining ARPU to rational pricing, price rises and a supportive backdrop.”

Looking ahead, the broker notes that “underlying earnings returned to growth in 2H21 and should continue growing out to FY25 (underlying earnings have found a base and are headed higher).”

Its analysts expect this to underpin fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the latest Telstra share price of $4.14, this will mean yields of 3.85% for investors.

The post Broker names 2 ASX dividend shares to buy in January appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares that could be top buys for growth
• 4 reasons the Telstra (ASX:TLS) share price could be great value
• 2 ASX dividend shares to buy this month: experts
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• These 3 ASX 200 shares are topping the volume charts on Wednesday

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FfKCHg

The EML Payments Ltd (ASX: EML) share price looks like an attractive opportunity to plenty of analysts at the moment.

EML is a financial technology (fintech) company that powers lots of different types of payments including physical card cards, electronic gift cards, virtual bank accounts, salary packaging, gaming payouts, buy now pay later (BNPL) and so on.

At the moment there are at least three different brokers that like EML as an investment with potential.

One of those with a buy rating on the fintech stock is UBS. Its price target is $4.40. That suggests a possible upside of more than 30% this year if the broker is right.

What does UBS like about the EML share price?

In May 2021, EML shares took a huge tumble. It fell over 40% as investors learned that the Central Bank of Ireland (CBI) was concerned about EML in relation to processes, compliance and risk management in regarding anti-money laundering and counter-terrorism financing (AML/CTF).

It was a potentially painful move because the CBI could have put limits on EML’s Irish business and various other possible impacts. The EML entity, PFS Card Services (Ireland) Limited (PCSIL) is responsible for a substantial amount of payment volume.

However, near the end of November, EML told the market good news regarding the CBI investigation, which UBS said took a lot of risk off the table.

The CBI said that it will permit PCSIL to sign new customers and launch new programs whilst staying within the material growth restrictions. PCSIL is confident that it can meet these obligations.

Next, broad based reductions in limit controls on programs will not be imposed. The CBI is satisfied to continue to engage with PCSIL with a view to agreeing appropriate limits under its risk management and controls framework.

The CBI did say it intended to implement a material growth limitation over PCSIL’s total payment volumes which will be imposed for 12 months or rescinded earlier following third party verification to confirm PCSIL’s remediation plan has been effectively implemented. PCSIL has been removing higher volume, lower yielding programs to enable it to comply with a material growth restriction.

The broker says that EML will be able to achieve more growth with customers thanks to this latest update, which should help grow the business.

How quickly is EML growing?

Investors often like to look at the growth rate, and expected growth rate, of a business before deciding what to value it at. So, faster growth could be useful for the EML share price.

In FY21, gross debit volume (GDV) rose 42% to $19.7 billion and underlying net profit after tax (NPATA) increased 54% to $32.4 million.

Then, in the first quarter of FY22, GDV increased another 14% to $5.5 billion year on year. Revenue was up another 29% to $52.4 million and underlying net profit was up 41% to $4.6 million.

It continues to win new clients and process more volume for existing clients.

What is the EML share price valuation?

Based on the UBS numbers, EML is valued at 27x FY23’s estimated earnings.

The post Here’s why the EML (ASX:EML) share price could be a big opportunity appeared first on The Motley Fool Australia.

More reading

• 2021 was a year to forget for the EML (ASX:EML) share price. Here’s why
• 2 ASX growth shares rated as buys in January 2022
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
• Why Afterpay, Corporate Travel, Dubber, and EML shares are falling
• EML (ASX:EML) share price plunges on vow to ‘vigorously defend’ against class action

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

from The Motley Fool Australia https://ift.tt/3HRzVfX

There is a famous investment theory called “Dogs of the Dow” from a 1991 book titled Beating The Dow.

This system advocates buying up the worst-performing stocks from the past calendar year, with the contrarian belief that they must be due for a recovery over the next 12 months.

Atlas Funds Management chief investment officer Hugh Dive said there’s a reason why this approach works.

“Institutional fund managers often report their portfolios’ contents to asset consultants as part of their annual reviews,” he posted on Livewire.

“This process incentivises fund managers to sell the ‘dogs’ in their portfolio towards the end of the year as part of ‘window dressing’ their portfolio before being evaluated.”

Because of this, retail investors actually have an advantage over the professionals.

“Their lack of scrutiny from asset consultants allows them the flexibility to pick up companies whose share prices have been under pressure late in the year that could see a rebound when the selling pressure stops in January and February. 

“Furthermore, retail investors can afford to take a longer-term view on the investment merits of a particular company that may have hit a speed bump.”

Refining the philosophy further, Dive has picked out 2 particular ASX shares among 2021’s ‘dogs of the ASX’ that have the best rebound potential.

One takeover candidate and coal comeback

Construction company Lendlease Group (ASX: LLC) and explosives provider Orica Ltd (ASX: ORI) saw their shares plunge 16% and 8% respectively in 2021. And they’ve each fallen a further 3% or so in the first few days of this year.

Dive is picking these two businesses to see a strong revival in 2022.

He loves the takeover potential of LendLease with “an attractive $110 billion global development pipeline”.

“It currently trades on a cheap multiple,” Dive said.

“Additionally, LendLease is a more palatable and cleaner acquisition target since exiting its volatile engineering business.”

The fall in Orica shares was triggered by a collapse of thermal coal volumes from its mining clients.

“However, in 2022 the outlook for coal looks robust, particularly in light of major exporter Indonesia banning coal exports in January 2022,” said Dive.

“This move by the Indonesian government is being made to divert coal to domestic power producers and will be beneficial for Australian coal miners — and hence Orica.”

The post 2 beaten-up ASX shares tipped to rebound in 2022 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Thursday
• Orica (ASX:ORI) share price edges lower following $180m asset sale

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3f9UtE1

The S&P/ASX 200 Index (ASX: XJO) has plenty of shares that have fairly high dividend yields. But only a certain number of ASX 200 dividend shares are rated as buys.

It takes more than just paying a dividend for a business to be attractive. Investors may consider the earnings growth potential or whether the valuation is cheap enough to buy at.

For example, Commonwealth Bank of Australia (ASX: CBA) may be one of the most well-known businesses for paying a higher dividend yield, but most analysts currently rate the large bank as a sell.

However, these two ASX dividend share options are rated as buys and also have large prospective dividend yields.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the biggest businesses in Australia. It’s a major player in the iron ore industry.

The mining giant is currently rated as a buy by the brokers at Macquarie with a price target of $21.

Macquarie is forecasting that Fortescue could pay a grossed-up dividend yield of 18.8% in FY22 and 13.5% in FY23.

The broker thinks that the outlook for iron is improving with an increase of demand in China.

One of the things that features in Macquarie’s thinking is both the rewards and risks of the Iron Bridge project. The project is now expected to cost quite a bit more than originally anticipated. This project is under development and is expected to deliver 22mt per annum of high grade 67% Fe magnetite concentrate product, further enhancing the range of products available to its customers.

Fortescue said that the innovative process design, including the use of a dry crushing and grinding circuit, will deliver globally competitive capital intensity and operating costs.

The ASX 200 dividend share is also working on green hydrogen projects so that it can become a world leader with that commodity in a decarbonised world.

Coles Group Ltd (ASX: COL)

Coles has seen its share price fall by more than 5% since 30 December 2021. This has had the effect of not only making it cheaper, but also boosting the prospective dividend yield for investors looking for defensive ASX 200 dividend shares.

The supermarket business has delivered reliable and growing earnings during COVID to date, though FY22 is ongoing.

It’s rated as a buy by a few different brokers including Citi. This broker has estimated that Coles is going to pay a grossed-up dividend yield of 5.4% in FY22 and 6% in FY23.

Coles is currently building two large automated distribution centres that are expected to make the business more efficient and help make the company more profitable over the longer-term.

Whilst currently battling the effects of the Omicron variant, with supply chain impacts and empty shelves, Coles is still experiencing elevated demand for plenty of its food categories in its supermarkets.

Citi’s price target on Coles is $19.60, which is approximately 15% higher than where it is right now. The Coles share price is valued at 22x FY22’s estimated earnings.

The post 2 high-yielding ASX 200 dividend shares to boost income appeared first on The Motley Fool Australia.

More reading

• Own Fortescue (ASX:FMG) shares? Here’s how the share price performed in 2021
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ASX retail investors should be banned from ‘financial heroin’: Choice
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zN74qb

Investing in a growth share takes a leap of faith.

By putting your money in, you are relying on that business to fulfil its future promises. Your support is not necessarily based on its current numbers, which may show no profit and perhaps not massive revenue.

The theory is that these ASX shares represent businesses that will re-invest any excess cash back into the business so that it can grow market share.

And that can take a while. 

Celebrated growth stocks Amazon.com Inc (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA) took many years to expand before they were ready to achieve a surplus. They’re both still growing, in fact.

So it could be something of a surprise when you come across a growth stock that’s already turning a profit.

But that’s exactly what Monash Investors portfolio manager Sebastian Correia just found.

The ASX share that investors ‘consistently underestimate’

Johns Lyng Group Ltd (ASX: JLG) is a business that provides building services, insurance reconstruction, and strata management in Australia and the US.

The company has seen its shares almost triple in the past 12 months.

It has consistently grown its revenue in recent years. The 2021 financial year saw it rake in $568.4 million, which was 15% up from the previous year. The 2020 revenue was a 47% boost from 2019.

So there’s not much doubt it’s a growth share.

But, to add to the intrigue, Johns Lyng has generated net profit in the tens of millions during the past 4 completed financial years.

Correia said on the Monash blog that investors have “consistently underestimated” Johns Lyng’s ability to grow.

“The predictable nature of JLG’s growth is a great example of a recurring situation that we use at Monash Investors to recognise future business outcomes that the market underestimates.”

A nice acquisition to expand overseas

Correia also likes Johns Lyng’s US$202 million acquisition of US insurance restoration business Reconstruction Holdings Inc last month.

“An acquisition by JLG was widely expected, but the market underestimated its blockbuster 64% earnings-per-share (EPS) accretion,” he said.

“When JLG shares resumed trading, the stock price jumped 16%.”

Johns Lyng’s strategic track record in Australia is enviable and Correia is looking forward to seeing it replicated overseas.

“The Reconstruction [Holdings] acquisition is a good foothold in the US,” he said. 

“By exporting their property obsession to the US, a similarly fragmented market, JLG has unlocked a much larger growth path.”

Johns Lyng shares closed Monday at $8.92.

The post Did you miss this ASX growth share already making a profit? appeared first on The Motley Fool Australia.

More reading

• Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. 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 Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3n9UAUI

The Fortescue Metals Group Limited (ASX: FMG) share price failed to power ahead in 2021.

In the 12-month period, the mining outfit’s shares moved considerably lower, down 18%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained roughly 13.5% over the same period.

At Friday’s closing bell, Fortescue shares finished 3.14% higher to $20.37 apiece. A sharp recovery from when its shares were trading around the $14 mark in early November.

What happened with the Fortescue share price?

The volatility in the Fortescue share price in 2021 was largely driven by a slowdown in Chinese demand for iron ore. It was no secret that the Asian superpower applied political pressure to its steel producers in curbing reliance on Australian iron ore.

Chinese lawmakers introduced new rules, limiting the importation of iron ore in 2021 to no more than 2020 levels. This led to supply issues as China threatened to impose harsh penalties for steel mills who exceed production limits.

As a result, the price of iron ore more than halved during the course of last year. From reaching its lofty highs of US$200 in May, the steelmaking ingredient’s price shrunk to around the US$100 mark in the following months.

Fast-forward to today, the current iron ore price has rebounded to US$125 per tonne, an ascent of 25% since December. This is partly the reason why Fortescue shares have rallied to August 2021 prices.

In addition, the company’s subsidiary, Fortescue Future Industries will team up with energy behemoth, AGL Energy Limited (ASX: AGL).

Both companies entered into a Memorandum of Understanding (MOU) to develop a hydrogen hub for the Hunter Valley coal plants. Namely, this relates to the Liddell and Bayswater coal-fired power stations, which AGL plans to transform the site.

The Liddell coal-fired power station is scheduled to close down in 2023, with Bayswater going offline in 2025.

Fortescue boss, Andrew “Twiggy” Forrest will be involved with the development, which will consist of a 12-month feasibility study. This news which arrived early last month excited investors, sending Fortescue shares 13% higher in the following two weeks.

Is this a buying opportunity?

Last month, a couple of brokers rated the company’s shares with varying price points.

Australian leading investment firm, Morgans raised its 12-month price target by 30% to $16.90 for Fortescue shares. Based on the current share price, this implies a downside of around 17% for investors.

However, JPMorgan analysts had a different tone, downgrading its outlook on the company’s share price to “neutral” from “overweight”. The broker also slashed its rating by 9.1% to $20 apiece. Currently, it appears that investors and JPMorgan are on the same page on where they believe Fortescue should be valued.

The post Own Fortescue (ASX:FMG) shares? Here’s how the share price performed in 2021 appeared first on The Motley Fool Australia.

More reading

• What’s impacting the Fortescue (ASX:FMG) share price on Monday?
• Top brokers name 3 ASX shares to sell next week
• Buying ASX shares in 2022? Here’s what you need to know: expert
• Own Fortescue (ASX:FMG) shares? The ASX 200 miner just hit a new green milestone
• 2 compelling ASX shares that could be buys in January 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3tctXC6

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

Both dividend shares are expected to provide investors with attractive yields in 2022. Here’s what you need to know about them:

Centuria Industrial Reit (ASX: CIP)

The first ASX dividend share to consider is Centuria Industrial. It is a property company with a focus on high quality industrial assets that deliver income and capital growth to investors.

In FY 2022, Centuria Industrial has been experiencing strong nationwide demand for industrial space, particularly from ecommerce-related tenant customers. This resulted in Centuria Industrial reporting 10% rental growth financial year to date in mid-December.

The good news for income investors is that this positive form bodes well for dividends this year. Centuria Industrial REIT revealed that it is targeting funds from operations (FFO) of at least 18.1 cents per share and a distribution of 17.3 cents per share in FY 2022. Based on the current Centuria Industrial REIT share price of $4.00, the latter will mean a 4.3% dividend yield for investors.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that is expecting to reward shareholders with an attractive yield in FY 2022 is Rural Funds. This real estate investment trust’s focus is to deliver returns to investors generated from quality management of Australian farmland, rural infrastructure, and agricultural operations.

It has a high quality portfolio of assets and an eye for a deal. For example, the company recently added to its portfolio through the acquisition of a number of cattle and cropping properties in Queensland. Management notes that these are consistent with its strategy of acquiring assets with potential for productivity improvements.

In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $3.11 this represents a yield of 3.8%.

The post Here are 2 top ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• Why is the Rural Funds (ASX:RFF) share price falling on Thursday?
• 2 excellent ASX 200 dividend shares to buy now
• Got money to invest for income? Here are 2 ASX dividend shares that could be buys
• The Rural Funds (ASX:RFF) share price has gone up 20% in 2021. Is it still a buy?

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FdQjWf

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.1% to 7,447.1 points.

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

ASX 200 expected to fall

The Australian share market looks set to tumble on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower this morning. This follows a poor start to the week on Wall Street, which in late trades sees the Dow Jones down 0.7%, the S&P 500 down 0.7%, and the Nasdaq trading 0.75% lower.

Ramsay signs NHS agreement

The Ramsay Health Care Limited (ASX: RHC) share price will be on watch today after it reached an agreement relating to a new volume-based agreement with NHS England (NHSE). The deal will make its services available to the NHSE and its patients to meet the ongoing demands resulting from the COVID-19 pandemic.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 0.6% to US$78.45 a barrel and the Brent crude oil price has fallen 0.75% to US$81.14 a barrel. Oil prices fell due to Omicron concerns.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,799.70 an ounce. Traders appear to have been buying the precious metal amid weakness in equities.

Platinum update

The Platinum Asset Management Ltd (ASX: PTM) share price will be one to watch today following the release of its latest funds under management update. Unfortunately, the fund manager had a tough month and recorded net outflows of approximately $168 million in December. This left it with funds under management of $22,006 million.

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

More reading

• Here are the top 10 ASX shares today
• 2 ASX healthcare shares to give your portfolio a boost
• ASX retail investors should be banned from ‘financial heroin’: Choice
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• 2 ASX 200 shares that could be top buys for growth

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3GdCoRf