Tyro Payments Ltd (ASX: TYR) was once a highly successful IPO, soaring from its offer price of $2.75 per share to a record all-time high of $4.50 in just 2 months. However, coronavirus lockdown measures forced many of its EFTPOS terminal customers to temporarily or partially close business, resulting in its share price sliding almost 80% from peak to tough during the share market crash.

But, as the Australian economy is looking to progressively reopen, could it be time to buy Tyro shares? 

A swift share price recovery 

After hitting a low of just $0.97 per share in March, the Tyro share price has rapidly rebounded. It now sits at a comfortable price level of around $3.50. 

Tyro has remained incredibly transparent throughout the coronavirus pandemic, providing investors with weekly updates regarding its transaction values. So far, it has provided the following updates regarding 2020 vs. 2019:

• January: 27% increase 
• February: 30% increase 
• March: 3% increase 
• April: 38% decrease 
• May to 15 May: 20% decrease 
• Year-to-date: 18% increase 

March appears to be the consistent trough across many retail-related companies. The recent Afterpay Ltd (ASX: APT) business update noted that global underlying sales in the second half of March versus the first half of March were 4% lower. However, its sales rebounded strongly in April, up approximately 10% on the second half of March.  

I believe the relaxation of social distancing measures will result in a graduate recovery of Tyro’s transaction values. In the company’s prospectus, it cited that SMEs have been the main target size category for its terminals. As at 30 June 2019, Tyro provided payment services to over 29,000 Australian merchants, of which 77% were SMEs and 86% were in the health, hospitality and retail verticals. 

Many state governments including New South Wales and Queensland have already acted on stage one, allowing restaurants, cafes and shopping centres to open. Victoria has plans to advance to stage one by 1 June. 

Industry tailwinds 

Cash is declining as a method of payment in Australia in response to the perceived benefits of card payment such as convenience, rewards and security, and availability of electronic acceptance devices. The use of cash for payments in Australia decreased from 69% in 2007 to 37% in 2016. The coronavirus and fears around transmission through coins, notes and transaction contact is another catalyst and tailwind for card transactions. 

Foolish takeaway 

The worst may have passed for Tyro and the reopening of the Australian economy, particularly the hospitality and retail sectors, should see a gradual recovery in its monthly transaction volumes. While the Tyro share price has run up significantly in recent times, I believe the business has much more to look forward to. 

More reading

• Why all ASX investors should avoid this easy mistake in 2020
• Will the Afterpay share price stop at $40 or keep on running?
• These ASX 200 shares are up over 40% in 2020
• 3 fantastic ASX shares to buy when you’re young
• Why a buy and hold strategy for ASX shares is best

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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If you want become rich then I think you should start investing in shares today.

There’s a common saying that the best time to start investing is 20 years ago, the second best time is today. You could say the same thing about trees – we only get to sit in the shade of a tree today because someone had the foresight to plant a tree years ago.

It takes a long time to become rich. Becoming rich with shares doesn’t happen in a day or in a month. It takes many years, or a lifetime, of disciplined saving and investing to reach a desired financial goal or wealth position.

Why you should start investing today 

If you delay your investing journey it will dramatically reduce your final wealth balance. Shares have historically made an average of 10% a year. Whether that’s Australian shares as represented by Vanguard Australian Shares Index ETF (ASX: VAS) or international shares represented by something like iShares S&P 500 ETF (ASX: IVV).

Imagine if you give yourself 25 years to build wealth and at the end of it you have $990,000. A great total. But if you delayed and only had 24 years, you’d miss out on that last year of 10% growth and you’d only have $900,000. One year of delay could mean almost $100,000 of growth lost!

Why you should invest in shares to become rich

Why specifically shares? I think there’s a number of good reasons why shares will help you become rich. I prefer shares to property for a number of reasons.

On the one hand, I think property ‘returns’ don’t reflect the full picture. Quoted property returns usually don’t include the effects of negative gearing – which is an alternative description to ‘losing real money’. Returns usually don’t include transaction costs like stamp duty and real estate agent selling fees. The property prices quoted don’t reflect the tens or hundreds of thousands of dollars of renovations (or just repairs) that have gone into the property – it hasn’t simply been growth from a $500,000 property to $1 million with no cost to the investor. And what happens if an investment property doesn’t have a (paying) tenant? The costs are still heading out of the bank account.

With shares you can be invested in the best businesses on the ASX or even the best in the world. I think it’s these shares that will help people become rich. Don’t forget that usually the share return totals don’t include franking credits which is a big bonus for investors. Shares are pretty cheap right now because of the coronavirus. 

Which shares will help you become rich? I like the idea of investments like the iShares S&P 500 ETF, Magellan High Conviction Trust (ASX: MHH), MFF Capital Investments Ltd (ASX: MFF) and Future Generation Global Invstmnt Co Ltd (ASX: FGG).

More reading

• The importance of diversifying your ASX portfolio and how you can do it
• The smartest shares to buy if you have $2,000
• Here’s how to create a $1 million ASX portfolio by investing $1,000 a month
• How I’d invest $50,000 into ETFs
• ASX shares can help millennials retire before their parents

Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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I think it’s fair to say that 2020 has been a bad year for dividends. Due to the pandemic, a large number of popular dividend shares have had to defer or cancel their dividends.

While this is disappointing, I’m confident that most dividend payments will resume again next year. In light of this, now could be a good time to look at the dividend shares to own in 2021 and beyond.

Here are two dividend shares I think should be considered:

Stockland Corporation Ltd (ASX: SGP)

Stockland is a property company which owns, manages and develops a diverse range of property assets. These include retirement villages, retail centres, business parks, offices, and logistics centres. Its shares have been hit very hard during the pandemic and are now down almost 50% from their 52-week high. I think this has left them trading at bargain prices for income investors. I’m not the only one that thinks this.

A recent note out of Goldman Sachs reveals that it has a buy rating and $4.43 price target on Stockland’s shares. It has been running the rule over the company and expects it to pay a distribution of ~26 cents per share in FY 2021. This equates to a whopping 9.2% distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price is down 41% from its 52-week high. Investors have of course been selling the airport operator’s shares after travel restrictions left its runways and terminals virtually empty. The good news is that Australia is now reopening and over the coming months Sydney Airport will start to see a recovery in domestic passenger numbers. While a full domestic recovery will take time and international tourism will take even longer, the company looks well-placed to pay a dividend in FY 2021.

Another recent note out of Goldman Sachs reveals that it expects Sydney Airport to pay a 29 cents per share dividend in FY 2021 and then a 37 cents per share dividend in FY 2022. If this proves accurate, it means that the company’s shares offer 5.3% and 6.7% yields, respectively, over the next couple of years. I think this is achievable and makes it well worth being patient with its shares.

More reading

• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• 3 industries that may never recover from COVID-19
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher
• Top brokers name 3 ASX 200 shares to sell next week
• What to watch on the ASX 200 next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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