• Opinion: Hits and Misses of the Week

    Opinion: Hits and Misses of the WeekJournal Editorial Report: The week’s best and worst from Kim Strassel, Mary O’Grady and Dan Henninger. Image: Everett Collection

    from Yahoo Finance https://ift.tt/3hsZwPW

  • Why I would buy Telstra and this ASX dividend share today

    Telstra shares

    The good news for income investors in this low interest environment is that the Australian share market is home to a large number of dividend-paying companies.

    Two ASX dividend shares which I think are in the buy zone right now are listed below. Here’s why I like them:

    Dicker Data Ltd (ASX: DDR)

    The first dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software. Due to an increasing number of vendor relationships and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a strong rate over the last five years.

    Pleasingly, this has continued this year despite the pandemic. At the end of April the company revealed that it had experienced a surge in demand for remote working products because of the work from home initiative. So much so, its first quarter profit before tax jumped 36.3% to $18.4 million. Management appears confident this strong form will continue and is planning to increase its FY 2020 dividend to 35.5 cents per share fully franked. This will be a 31% increase on last year’s dividend, which also included a 5 cents per share special dividend. This equates to an attractive 4.9% dividend yield.

    Telstra Corporation Ltd (ASX: TLS)

    A second dividend share that I believe is in the buy zone is Telstra. With its medium term outlook arguably looking the brightest it has been in a long time, I think now is a great time to invest in this telco giant. This improving outlook is due to its T22 strategy, rational competition, and the easing of the NBN headwind.

    While the NBN headwind is still here, peak pain from it is on the horizon. This should make a return to growth possible in the not so distant future. In fact, Telstra would have returned to growth in the first half were it not for this headwind. Underlying operating earnings excluding the in-year NBN headwind grew by approximately $90 million. In the meantime, I’m confident its free cash flows are sufficient to maintain its 16 cents per share fully franked dividend. This represents a very attractive 5.1% dividend yield.

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra 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.

    The post Why I would buy Telstra and this ASX dividend share today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3cVHXEI

  • These are the 10 most shorted ASX shares

    short interest

    At the start of each week I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

    This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the ASX despite yet another reduction in its short interest to 13.25%. The market appears concerned that the pandemic has accelerated the structural decline of department stores and pushed people online.
    • Speedcast International Ltd (ASX: SDA) continues to have short interest of 13.2%. This communications satellite technology provider’s shares have been suspended since February. It is currently in the process of declaring itself bankrupt.
    • Super Retail Group Ltd (ASX: SUL) has seen its short interest pull back to 10.3%. Short sellers have been targeting Super Retail due to concerns that some of its brands could struggle during the pandemic.
    • Galaxy Resources Limited (ASX: GXY) has seen its short interest slide to 9.3%. A number of lithium miners have been experiencing declines in short interest this month. Traders may believe their shares have now bottomed.
    • Webjet Limited (ASX: WEB) has short interest of 9.2%, which is down week on week. Short sellers appear to be targeting the online travel agent due to concerns over its valuation. Webjet’s market cap is now higher than it was in January despite the disruption and uncertainty caused by the pandemic.
    • Inghams Group Ltd (ASX: ING) has returned to the top ten with 9.2% of its shares held short. A change in sales mix is expected to weigh heavily on this poultry company’s performance in FY 2020.
    • Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 9.1%. The biopharmaceutical company’s shares have fallen almost 40% over the last 12 months. It appears as though short sellers believe they can still go lower.
    • Nearmap Ltd (ASX: NEA) has seen its short interest edge lower to 9%. Short sellers may be closing their positions after the aerial imagery technology company’s performance remained solid in the second half despite the pandemic.
    • JB Hi-Fi Limited (ASX: JBH) has seen its short interest remain flat at 9%. Last week the retailer revealed explosive sales growth during the second half. Short sellers don’t appear convinced this strong form will continue in the months ahead.
    • Orocobre Limited (ASX: ORE) has short interest of 8.8%, which is down week on week. Short sellers appear to be closing positions and moving on from the lithium miners. They may believe that their declines are now over.

    Finally, instead of those most shorted shares, I would be buying the exciting shares recommended below…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Webjet Ltd. The Motley Fool Australia has recommended Nearmap 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 These are the 10 most shorted ASX shares appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2UHfCLY