Day: February 5, 2022

2 ASX shares that could be good buys for both growth and dividends

chart showing an increasing share pricechart showing an increasing share pricechart showing an increasing share price

Key points

  • Some promising ASX shares are offering both reasonable dividend yields, earnings growth and plans for more
  • Collins Foods is a leading fast food business with expanding networks of KFCs and Taco Bells
  • Healthia is a rapidly growing allied health business which is growing organically and enacting a steady stream of acquisitions

Some ASX shares are known for growth, whilst others are known for dividends. There is a select group that may be able to offer investors a combination of both growth and dividends.

These are businesses that have long-term growth plans whilst also paying shareholders dividends along the way:

Collins Foods Ltd (ASX: CKF)

Collins Foods is an ASX share that operates a network of KFCs in both Europe and Australia. It is steadily expanding its outlet numbers, which is adding to profitability. The company is also achieving long-term same store sales growth.

At the start of February 2022, it completed the acquisition of nine KFC restaurants in the Netherlands.

In the first half of FY22, underlying net profit increased by 31.6% to $28.9 million. This allowed the business to fund a 14% increase of the interim dividend.

But Collins Foods is no longer just a KFC business. It’s leveraging its KFC experience and fast-food know-how to scale its Taco Bell Australia business. The ASX share is investing in marketing to build brand awareness. HY22 Taco Bell revenue surged 33% to $14.8 million, reflecting the contribution of five new restaurants.

The Taco Bell segment is now breakeven at the earnings before interest, tax, depreciation and amortisation (EBITDA) level. It increased the total to 17 restaurants. It’s expecting to add nine to 12 new outlets in FY22.

Overall, the ASX share is expecting to add 24 new restaurants across the group in FY22.

According to Commsec, the Collins Foods share price is valued at 23x FY22’s estimated earnings with a grossed-up dividend yield of 3.1%.

Healthia Ltd (ASX: HLA)

Healthia is a business that operates across multiple allied health services including optometry, podiatry and physiotherapy clinics.

The business is utilising two methods of growth. It’s looking to organically grow profit by improving its current clinic network. Healthia is also expanding through the use of acquisitions.

For example, in late December it announced acquisitions that would add underlying revenue of $9.52 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.9 million. Those acquisitions by the ASX share included eight optometry locations and two physiotherapy locations.

FY21 saw the business grow underlying revenue by 51.8%, organic revenue growth of 9.1% and underlying earnings per share (EPS) growth of 51.6% to 11.13 cents. The business paid a FY21 annual dividend of 4.5 cents per share, the final dividend was increased by 25%.

The Healthia share price is valued at 16x FY22’s estimated earnings with a projected grossed-up dividend yield of 4.1%.

The post 2 ASX shares that could be good buys for both growth and dividends appeared first on The Motley Fool Australia.

Should you invest $1,000 in Collins Foods right now?

Before you consider Collins Foods, 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 Collins Foods wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

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 HEALTHIA FPO. The Motley Fool Australia has recommended Collins Foods Limited and HEALTHIA 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/r4NspKX

4 fantastic ASX growth shares to buy

Concept image of a businessman riding a bull on an upwards arrow.

Concept image of a businessman riding a bull on an upwards arrow.Concept image of a businessman riding a bull on an upwards arrow.

If you’re looking for growth shares, then look no further. Listed below are four ASX growth shares which have been tipped for strong growth in the future.

Here’s why analysts have rated them as buys:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is a printed circuit board (PCB) design software provider that has carved out a leading position in a growing electronic design market thanks to the quality of its technology. But the company isn’t settling for that and is now aiming to dominate this market with its cloud-based Altium 365 product. Analysts at Jefferies are positive on its future. The broker currently has a buy rating and $48.83 price target on its shares.

Breville Group Ltd (ASX: BRG)

Another growth share that could be a buy is Breville. It is a leading appliance manufacturer responsible for a number of popular brands. These include the Kambrook, Sage and Breville brands. The team at Morgan Stanley is very positive on the company. This is due partly to its global expansion, burgeoning product pipeline, and favourable consumer trends. Last week the broker retained its overweight rating and $36.00 price target on Breville’s shares.

Hipages Group Holdings Ltd (ASX: HPG)

A third ASX growth share to look at is Hipages. This leading Australian-based online platform and software as a service (SaaS) provider connects consumers with trusted tradies. While its recent quarterly update was disappointing due to the impact of lockdowns on its tradie subscriptions, Goldman Sachs remains confident that a post-lockdown rebound is coming. After which, it believes Hipages is well-placed for strong long term growth as it grows its ecosystem into a huge addressable market. The broker currently has a buy rating and $4.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

A final growth share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Particularly given its world class network of centres and expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in Singapore and Tokyo. These markets could provide NEXTDC with a long growth runway.

Citi is a fan and currently has a buy rating and $15.40 price target on NEXTDC’s shares.

The post 4 fantastic ASX growth shares to buy 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 over ten 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 January 12th 2022

More reading

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hipages Group Holdings Ltd. and Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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/uFsJjBo

2 quality ASX dividend shares for income investors to buy

ASX dividend shares represented by cash in jeans back pocket

ASX dividend shares represented by cash in jeans back pocketASX dividend shares represented by cash in jeans back pocket

Are you looking for ASX dividend shares to buy? If you are, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer which owns and operates a range of brands such as HYPE DC, Platypus, and The Athlete’s Foot.

While its performance in FY 2022 has disappointed because of lockdowns, this is only expected to be a short term headwind. In light of this, the future remains very bright for Accent and the team at Bell Potter has urged investors to “buy on current weakness.”

The broker has a buy rating and $2.75 price target. This compares favourably to the current Accent share price of $2.10.

In addition, Bell Potter is expecting fully franked dividends per share of 5.4 cents in FY 2022 and then 11 cents in FY 2023. This equates to yields of 2.6% and 5.2%, respectively.

Westpac Banking Corp (ASX: WBC)

This banking giant could be a dividend share to buy according to the team at Morgans.

In response to the bank’s first quarter update, its analysts have reiterated their add rating and $29.50 price target.

For some time now the broker has been stating its belief that the market was being too negative on the bank’s outlook. It feels this view has been justified with its latest update.

Morgans commented: “We believe the trading update supports the view that the challenges facing WBC are not unsurmountable and that the stock should not be priced like a value trap. We believe the update particularly serves to alleviate investor concerns around the cost outlook.”

As for dividends, the broker has pencilled in fully franked dividends per share of $1.19 in FY 2022 and then $1.60 in FY 2023. Based on the current Westpac share price of $21.52, this will mean yields of 5.5% and 7.4%, respectively.

The post 2 quality ASX dividend shares for income investors to buy 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 over ten 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 January 12th 2022

More reading

Motley Fool contributor James Mickleboro owns 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 Accent Group and Westpac Banking Corporation. 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/en1NFQX

Tech investors should put these 2 top ASX shares on the watchlist

4DS share price4DS share price4DS share price

Key points

  • ASX tech shares are capable of producing a high level of growth
  • Bailador is a tech investment fund with holdings of several leading, private businesses with global aspirations
  • Audinate is a leader in the AV space. It’s widely recognised for its audio services and it’s working hard on the video side of the strategy

ASX tech shares have the ability to grow quickly and achieve good profit margins because of the underlying nature of the business.

The recent sell-off in recent weeks and months has opened up some potential opportunities for investors to jump on.

With that in mind, here are two under-the-radar ASX tech share ideas:

Bailador Technology Investments Ltd (ASX: BTI)

This business is a growth capital fund. It is focused on the technology sector, actively managed by an investment team. Bailador gives investors exposure to a portfolio of IT businesses with global addressable markets.

The companies that are within the portfolio are in the ‘expansion stage’. Some of the businesses in the portfolio are Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), Instaclustr, Rezdy, Access Telehealth, Standard Media Index and Nosto.

  • Siteminder is a world leader in hotel management and distribution for online accommodation bookings.
  • Instaclustr is an open source data platform for cloud-based solutions that require very large scale.
  • Straker is one of the world’s fastest growing digital language translation service providers.
  • Rezdy is an online channel manager and booking platform for tours and activities.
  • Access Telehealth is a telehealth platform for Aussies to get access to healthcare services.
  • Standard Media Index is a big data aggregation and analysis platform with exclusive access to advertising expenditure data.
  • Nosto is an AI-powered e-commerce personalisation platform.

Bailador remains committed to a portfolio of around 10 to 12 investments and will be patient in waiting for the right opportunities and rigorous in assessing opportunities.

The ASX tech share typically invests $5 million or more in businesses that are usually run by the founders, are two to six years old, with a proven business model and attractive unit economics, have international revenue generation, are exposed to a huge market opportunity and can generate repeat revenue.

Audinate Ltd (ASX: AD8)

Audinate is a business focused on improving the audio visual experience for clients.

It offers the Dante audio over IP networking solution, which the company boasts is the worldwide leader. It’s used by sectors such as professional live sound, commercial installation, broadcast, public address and recording industries.

How does it work? Dante replaces traditional analogue cables by transmitting audio signals to multiple locations at once, using just an ethernet cable.

The ASX tech share is also heavily focused on building up the video side of the business because then it will be able to offer the full AV package to win over clients.

Audinate recently announced the acquisition of the Silex Insight video business. Silex produces video networking products for manufacturers of AV equipment. It has an experienced team of eight engineers, an existing revenue base of approximately US$2.5 million and intellectual property.

Silex’s team will complement the UK video team in Cambridge.

In the first quarter of FY22, Audinate made revenue of US$7.6 million, up 46.1% year on year. Demand is at a record high, with backlog orders for chips, cards and modules. However, component shortages are expected in the second half of FY22.

The post Tech investors should put these 2 top ASX shares on the watchlist appeared first on The Motley Fool Australia.

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

Before you consider Bailador, 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 Bailador wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

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 AUDINATEGL FPO, Bailador Technology Investments Limited, and SiteMinder Limited. The Motley Fool Australia owns and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Straker Translations. 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/WrqX6Vw