Traditional ASX blue-chip shares are cutting their dividends. Income investors looking for growing dividends may do well holding Carsales.Com Ltd (ASX: CAR), JB Hi-Fi Limited (ASX: JBH) and Domino’s Pizza Enterprises Ltd. (ASX: DMP).

For my analysis, I looked at 2010 to 2019 calendar years.

Carsales

Carsales has grown its dividend except in 2013 when the dividend fell from 31 cents in 2012 to 28 cents in 2013. Since then, Carsales’ dividend has grown each year, as can be seen by the chart below:

Despite the headwinds, CEO Cameron McIntyre stated in a recent business update: “Our market leading position, strong customer proposition and diversification across geography and product supports our resilience and positions Carsales well into the future.”

The Carsales share price trades 28% lower from its 52-week high of $19.60. I believe this reflects the short-term uncertainty in the economy. Having said that, Carsales is a quality tech company growing its dividend in 9 out of the last 10 years and could continue to reward patient growth and income investors over the next decade.

JB Hi-Fi

JB Hi-Fi has rewarded patient long-term investors with a growing dividend between 2012 and 2019. While short-term headwinds are impacting the economy, JB Hi-Fi has a track record of a growing dividend, as can be seen by the chart below:

Last week on 6 May, JB Hi-Fi released a third-quarter market update detailing an acceleration in sales. It attributed the rise in sales to anticipated easing of government restrictions. New Zealand was the only market in which it experienced a decline in sales. Strong growth in JB Hi-Fi and The Good Guys more than offset the weakness.

JB Hi-Fi also secured an additional $260 million of short-term debt facilities. However, it does not expect this will be needed despite a continued withdrawal of earnings guidance for FY20.

Despite the headwinds, JB Hi-Fi is a quality company that I believe will grow its dividends over the next decade despite the immediate uncertainty. The market appears to agree, sending the JB Hi-Fi share price up 42% over the past 12 months.

Domino’s Pizza

Domino’s is a dividend success story, managing to increase its dividend each year between 2010 and 2019. After paying an 18 cent dividend in 2010, this has heated up to $1.15 in 2019. In addition to paying rising dividends, the Domino’s share price has rallied 38% over the past 12 months.

Domino’s is reopening stores as worldwide restrictions issued by governments begin to be eased. It is seeing a shift in how consumers are ordering, with food delivery services soaring on the back of restrictions. In recognition of this, Domino’s has hired more team members.

In financial news, the balance sheet remains strong with no committed short-term debt and more than $260 million cash as of 27 March 2020.

The company’s medium-term outlook is unchanged for new store openings of 7% to 9% per year, growth in same-store sales of 3% to 6% per year, and increased net capital expenditure of $60 million to $100 million per year.

Despite the strong financial situation, some franchisees are waiting to see if stores will be reopened, dependent on local market conditions.

On balance, Domino’s appears to be in good shape for the long term. In my view, patient long-term shareholders could see further increases in dividends.

Foolish takeaway

Investing is a marathon, not a sprint. Shareholders in Carsales, JB Hi-Fi and Domino’s that have played the long game have seen both capital and income growth. I suspect this will continue and the recent uncertainty offers an opportunity to buy growing dividends at growing companies.

More reading

• Carsales share price down 26% since February. Is it now a good buy?
• Analysts think this ASX auto share could be turning the corner
• These 3 ASX 200 retail shares are absolutely thriving right now
• 3 ASX 200 pandemic winners and 3 losers
• Are ASX retail shares undervalued today?

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited and Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on them:

ASX Ltd (ASX: ASX)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and lifted the price target on this stock exchange operator’s shares to $71.50. This follows the release of its April update last week. Although Macquarie notes strong average daily volume growth and a sharp increase in capital raisings during the second half, it still feels its shares are overvalued at the current level. It estimates that ASX Ltd’s shares are changing hands at 31x estimated full year earnings. Its shares are trading at $83.00 this afternoon.

Cochlear Limited (ASX: COH)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $156.00 price target on this hearing solutions company’s shares following its recent trading update. That update revealed that Cochlear’s sales were down 60% in April because of a sharp reduction in elective surgeries during the pandemic. And although there has been a recovery in elective surgeries now, the broker isn’t overly confident on the trajectory of the recovery. It suspects it may take longer than the market expects and therefore holds firm with its sell rating. Cochlear’s shares are changing hands for $187.98 on Tuesday.

Domain Holdings Australia Ltd (ASX: DHG)

Analysts at Morgans have retained their reduce rating and $2.25 price target on this property listings company’s shares. According to the note, the broker expects a sharp decline in listing volumes in the fourth quarter of FY 2020 and further declines in the first two quarters of FY 2021. In light of this, it has reduced its revenue forecasts accordingly. Domain’s shares are trading at $2.93 this afternoon.

More reading

• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
• These 10 ASX 200 shares have fallen the most over the last year
• Carsales share price down 26% since February. Is it now a good buy?
• These were the top 10 ASX 200 shares over the last year
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Leading brokers name 3 ASX shares to sell today appeared first on Motley Fool Australia.

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ASX dividend shares have had a rollercoaster ride in 2020. Some of the highest paying income shares have been smashed as coronavirus concerns have taken hold.

However, that doesn’t mean there aren’t good buying opportunities on the market. Here are 3 ASX dividend kings I think are worth buying and holding forever.

3 ASX dividend shares to buy and hold forever

There are still plenty of uncertain times ahead. No one knows just what the economy will look like by the end of the year, let alone 10 years into the future. As such, I think some defensive exposure in your portfolio could come in very handy.

I like the look of Coles Group Ltd (ASX: COL) shares at the moment. Coles looks to be a top ASX dividend share given its non-cyclical earnings and 2.78% dividend yield. Of course, dividend yields aren’t necessarily stable or reliable at the moment. Still, that doesn’t change the fact that Coles’ earnings are likely to be more stable than most of its ASX 200 peers.

Another ASX dividend share I believe to be in the buy zone is BHP Group Ltd (ASX: BHP). At the time of writing, BHP shares are paying an attractive 6.75%, now that the share price has fallen 18.94% lower in 2020. The mining sector could be vulnerable to the impact of COVID-19 as international trade slows down and demand for iron ore subsides.

However, I think the technical environment isn’t too bad. China’s economy is picking up pace again and the Australian Government could look to infrastructure to kickstart our own economy. On top of that, the Aussie dollar has slumped lower in 2020 which could make exports like iron ore more attractive.

My final ASX dividend share to buy and hold forever is Commonwealth Bank of Australia (ASX: CBA). ASX bank shares are under pressure at the moment with significant impairments and soft earnings. However, CBA remains an important pillar of the Aussie economy and I think it will continue to churn out consistent profits in years to come.

Bank dividend cuts have spooked some investors, but given CBA shares are down 24.73% in 2020, I think they could be a long-term bargain buy right now.

More reading

• UBS picks the real ASX winners from the COVID-19 grocery boom
• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
• 3 safe and strong ASX dividend shares to buy today
• 3 cheap ASX 200 shares for value investors
• These 3 ASX 200 retail shares are absolutely thriving right now

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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