Charter Hall Long WALE REIT (ASX: CLW) share price could be one of the most compelling ASX dividend share options for income.

It’s a real estate investment trust (REIT) that owns a large portfolio of different properties.

Whilst it isn’t the biggest REIT on the ASX, it is building a reputation as being one of the most dependable for dividends. It’s rated as a buy by a few different brokers, including Citi. Here are some of the reasons why it’s attractive:

Diversification

It has a property portfolio that is now worth $7 billion, which the business describes as high-quality and diversified. There are 549 properties, with 79% of them located on the eastern seaboard of Australia.

The portfolio is diversified across different sectors including agri-logistics (4%), social infrastructure (13%), office (19%), industrial and logistics (21%), hospitality (22%), convenience retail (11%) and ‘diversified long WALE retail’ (9%).

Nearly all of the tenants are blue chip tenants – 99% are either government, ASX-listed, multinational or national. Some examples include the Australian Government, Telstra Corporation Ltd (ASX: TLS), BP and Endeavour Group Ltd (ASX: EDV).

Yield

The ASX dividend share is expecting to pay a distribution of at least 30.5 cents per security. Charter Hall Long WALE REIT typically pays a distribution of 100% of operating earnings.

Assuming a payout of 30.5 cents, that translates to a current distribution yield of 6.1% at the current Charter Hall Long WALE REIT share price.

Morgan Stanley, one of the brokers that rates the business as a buy (with a price target of $5.85), thinks that the REIT will pay a distribution of 6.4% in FY23.

Reliability and organic growth

The REIT is proud of its income security. It has a portfolio weighted average lease expiry (WALE) of 12.2 years. Management says that this provides insulation from market shocks. It also gives investors a lot of visibility and security about the rent.

Rental income growth is driven by annual rent increases in all leases. Around 46% of leases are linked to CPI with a 3.3% weighted average increase in the first half of FY22. The other 54% of leases have fixed increases, with an average fixed increase of 3.1%.

This has allowed the business to continue growing the distribution per security by an average of 3.7% per annum since it listed several years ago.

In FY22 it’s expecting to grow the distribution by at least 4.5%, adding to the ongoing growth.

Charter Hall Long WALE REIT share price valuation

At the time of writing, the REIT’s share price is at $5.01. That compared to the net tangible assets (NTA) of $5.89 at 31 December 2021. That implies a discount of around 15%.

The post 3 reasons why the Charter Hall Long WALE REIT (ASX:CLW) share price is a top buy for dividends appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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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Is the Kogan.com Ltd (ASX: KGN) share price an opportunity after the business has suffered a significant decline?

Since the start of 2022, it’s down 29%. In the past six months it’s down 53%. It has fallen about 70% in 13 months.

Some businesses may not be better value just because they have fallen. Kogan has gone through a lot of negatives in the last 12 months.

It suffered from a drop in demand. That led to the business ordering too much stock. Warehousing costs jumped and Kogan also had to pay demurrage costs. To shift the excess stock, Kogan increased its marketing – more costs.

Latest update to influence the Kogan share price

At the e-commerce ASX share’s annual general meeting (AGM) at the end of November 2021, it said that it had right-sized the inventory levels which has brought warehousing costs down. But it was still investing in marketing to expand the Kogan First member base and is confident this will have long-term benefits.

In the first four months of FY22 to October 2022, Kogan had generated $12.4 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

Kogan has given investors an update for the six months to December 2021. For the half-year, the company made $21.7 million of EBITDA. But this still represented a 58% decline from last year.

Whilst total gross sales only grew by 9.4% to $698 million, it did represent year-on-year growth. There were some highlights including 28.7% growth of Kogan Marketplace to $221.1 million, 96.7% growth of advertising to $8.1 million and 48.7% growth of Kogan Energy gross sales to $6.6 million.

Kogan.com’s active customers rose 10% to 3.31 million. Kogan First members jumped 176% to 274,000.

Kogan’s inventory has reduced to $196.8 million, down from $227.9 million at 30 June 2021.

Is the Kogan share price an opportunity?

UBS is ‘neutral’ on the business, but with a price target of $6.70. The broker suggested that Christmas/December trading wasn’t as good as it was expecting. COVID impacts continue, with things like the supply chain and advertising remaining elevated.

However, Credit Suisse is still positive on the business with an ‘outperform’ rating and a price target of $9.16. That implies a rise of around 50% over the next year. However, higher costs did mean that the company’s half-year performance wasn’t as good as it was expecting. The low valuation means it’s still an opportunity.

Credit Suisse puts the Kogan share price at 20x FY23’s estimated earnings with a potential FY23 grossed-up dividend yield of 3.6%.

Goals and e-commerce growth

Kogan has a goal of $3 billion of gross sales by FY26, with 1 million Kogan First subscribers. If the gross sales goal is achieved, it would represent a compound annual growth rate of over 20%.

The company says that its market share of online retail is rising (which hit 2.7% in FY21) and the e-commerce market itself continues to rapidly increase in size.

The post Is the Kogan (ASX:KGN) share price a bargain buying opportunity? appeared first on The Motley Fool Australia.

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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 and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com 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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Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from. In order to narrow things down, listed below are a couple of ETFs that could be worth a closer look next week. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for ASX investors to look at next week is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this sector is heavily under-represented on the ASX, which could make this ETF particularly attractive for local investors.

Especially given how many analysts are forecasting the sector to grow materially in the future because of the increasing importance of cybersecurity due to the growing threat of cyberattacks. Among the companies in the BetaShares Global Cybersecurity ETF are cybersecurity giants such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Australian Banks ETF (ASX: MVB)

Another ETF for investors to take a look at is the VanEck Vectors Australian Banks ETF. If you are wanting some exposure to the banking sector, but aren’t sure which bank to buy above others, then this ETF could be the answer.

The VanEck Vectors Australian Banks ETF allows you to own a slice of Commonwealth Bank of Australia (ASX: CBA) and all the big four banks, the regionals, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. Another positive is that as these bank shares are traditionally big dividend payers, this ETF could provide investors with a source of income.

The post 2 more ETFs ASX investors need to know appeared first on The Motley Fool Australia.

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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 BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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) could be a compelling way for investors to gain access to some great businesses but to do it in a diversified way.

Some ETFs are focused on a particular share market – like the Australian share market or European share market. But, there are other options that give the opportunity to invest in certain sectors or themes.

With that in mind, these two ETFs could be long-term options:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is an ETF that is focused on the global share market. It has businesses from many different “major developed countries” in the portfolio. The US does represent 70% of the portfolio, though many US companies do earn international profit as well.

Readers may have heard of many of the biggest holdings in the portfolio including: Apple, Microsoft, Alphabet, Amazon.com, Tesla, Nvidia and Meta Platforms (formerly Facebook).

It’s not all tech giants – other US names include JPMorgan Chase, Berkshire Hathaway, Proctor & Gamble, Home Depot, Visa and Mastercard.

However, there are lots of non-US businesses in the portfolio too such as Nestle, ASML, Roche, LVMH, Toyota, Shell, Novartis, AstraZeneca, Novo Nordisk and Royal Bank of Canada.

There is a total of around 1,500 businesses in the portfolio.

The VGS ETF offers a globally diversified portfolio for an annual management fee cost of just 0.18%.

Past performance is not a guarantee of future results, however over the past five years the Vanguard MSCI Index International Shares ETF has produced an average return per annum of 15.2%.

However, the dividend yield of the ETF is just 1.6% according to Vanguard.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This ETF is much more concentrated than the Vanguard. It has a total of 26 positions that give investors exposure to the global gaming sector.

VanEck says that this industry is a dynamic growth opportunity, which gives investors the ability to invest in the future of gaming. The companies are positioned to benefit from the increasing popularity of video games and eSports.

Each of the businesses in the portfolio generate a significant portion of their revenue from the video gaming sector.

In terms of the biggest positions in the portfolio, these are some of the names: Tencent, Activision Blizzard, Nintendo, Nvidia, Advanced Micro Devices, Netease, Electronic Arts, Take-Two Interactive, Nexon and Bandai Namco. Ubisoft and Zynga are two of the other positions.

There is a mixture between countries – this ETF is much less focused on the US than the VGS ETF. The US is 40.4% of the portfolio, Japan is a 21.4% weighting, China is 20.1%, South Korea is 4.6%, Singapore is 4.2% and so on.

Since listing in September 2020, the ESPO ETF has produced an average return per annum of 8.5%. However, the index that it tracks has produced an average return of 29% per annum over the last five years. Past performance is not a reliable indicator of future performance though.

The post 2 excellent ETFs with compelling potential appeared first on The Motley Fool Australia.

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• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
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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 and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares 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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