The reopening of the Australian economy and record-low interest rates has made the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) rife with opportunities. For investors interested in the technology sector, here are three leading ASX 200 tech shares to consider buying today. 

1. EML Payments Ltd (ASX: EML) 

The EML share price ascended to an almost ‘market darling’ status following years of consistent organic growth and strategic acquisitions. However, global social distancing and lockdown measures due to the coronavirus have derailed its business model that is largely dependent on shopping centres and recreational activities. 

Prior to EML’s acquisition of Irish firm, Prepaid Financial Services (PFS), its revenue from shopping centre gift cards represented approximately 65% of group revenues. Its long-term strategy is to diversify its earnings away from its dependency on shopping centres. The acquisition of PFS pivoted its earnings to more General Purpose Reloadable (GPR) than Gift & Incentive (G&I). GPRs have various applications including salary packaging benefit accounts, fintech and digital banking, and sports betting/gaming. 

I believe EML’s positive business update and depressed share price bodes well with the reopening global economy. Its G&I segment should see volumes recover as lockdowns ease and trading conditions improve. 

2. Data#3 Limited (ASX: DTL) 

Data#3 is a business communications technology leader that provides an integrated array of solutions including cloud, mobility, security data and analytics and IT lifecycle management. The company’s 1H20 results announced that revenue had increased by 11.6% to $718.9m and NPAT jumped 41.5% to $8.7m. 

On 2 April the company provided an update on the impact of COVID-19. It cited that, to date, there has been no material change to its overall sales pipeline. Customers have been shifting their priorities to address immediate remote working, cloud and security requirements. Its performance to date and current pipeline of opportunities will help it achieve its full year financial objectives.

However, it noted that its performance is typically dependent on significant earnings in the fourth quarter, and it is too early to provide more specific guidance at this point in time. It reassured the market that approximately 60% of its revenue is recurring from contracts with government and large corporate customers. 

3. Tyro Payments Ltd (ASX: TYR) 

Tyro is one of the many businesses that will benefit from a reopening Australian economy. The company offers payment solutions for credit and debit card transactions.

As of 30 June 2019, 77% of Tyro’s merchants were SMEs and 86% were in the health, hospitality and retail sectors. Despite these sectors being hit the hardest by lockdown rules, Tyro only experienced a 38% fall in transaction values in April and 20% fall in the first two weeks of May (on prior corresponding period). The reopening of retail, restaurants and cafes should see volumes improve moving forward. 

More reading

• ASX 200 ends the day higher, EML share price rises another 12%
• Do the Altium and Xero share prices still represent good long-term buys?
• Why ALS, Clover, Computershare, & EML Payments shares are storming higher
• ASX 200 down 0.2%: Big four banks lower and TPG announces demerger plans
• Why the EML Payments share price is rocketing over 12% higher today

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 Emerchants Limited and Tyro Payments. The Motley Fool Australia has recommended Data#3 Ltd. and Emerchants 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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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this gaming technology company’s shares to $31.80. The broker believes investors need to overlook the difficult trading conditions it is facing at present and focus on the future. It remains positive on its outlook thanks to its fast-growing digital business and the reopening of casinos. I agree with UBS on Aristocrat and would be a buyer of its shares.

Qantas Airways Limited (ASX: QAN)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but trimmed the price target on this airport operator’s shares slightly to $5.20. According to the note, the broker expects Qantas’ passenger numbers to return to previous levels in 2023. Though, a return to profitability is likely to come a year earlier. This should mean it has sufficient liquidity to ride out the storm. I think Qantas could be a good option for investors, but you might want to restrict an investment to just a small part of your portfolio. Just in case there is a second wave that hinders the reopening of Australia.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Goldman Sachs have retained their conviction buy rating but trimmed the price target on this telco giant’s shares slightly to $4.05. According to the note, the broker has been looking into the sustainability of its 16 cents per share dividend. It concludes that it sees little risk of a cut in the next three years, even after stress testing several bear case scenarios. I think Goldman Sachs is spot on and Telstra would be a great option for investors at the current level.

More reading

• Is Telstra about to be caught in a new mobile phone war?
• Where growth, income, and value investors can invest right now
• Why Aristocrat Leisure, Afterpay, Corporate Travel, and Sydney Airport are pushing higher
• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity
• 3 reasons the Telstra dividend is sustainable for the foreseeable future

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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 Brokers name 3 ASX 200 shares to buy right now appeared first on Motley Fool Australia.

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ASX dividend shares are a great way to boost your income.

Cash is still a good way to protect your capital value. But what if you’re trying to make an income? It hardly earns anything any more. But dividends can be the answer. Businesses are still earning profits and paying out dividends. Even during this coronavirus period. 

Here are the three best ASX dividend shares I’d buy right now:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be the best ASX dividend share when it comes to reliability. It has increased its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903, including through all of the wars and recessions.

The way Soul Patts is able to do this is because it’s an investment conglomerate that’s invested in a variety of different businesses and industries such as TPG Telecom Ltd (ASX: TPM) and soon it’ll be invested in regional data centres.

Each year Soul Patts pays out the majority of its investment income that it receives, less the expenses it pays for.

It’s the type of business that you can invest in and hold for many years to come. What’s the yield for the ASX dividend share? It has a grossed-up dividend yield of 4.7%.

Brickworks Limited (ASX: BKW)

Brickworks is another great option in my opinion. This ASX dividend share hasn’t decreased its dividend for more than four decades. It owns a range of building products businesses which are among the biggest in Australia, particularly the brickmaking divisions.

The recent expansion into the US through acquisitions should be a smart move if Brickworks can become more efficient there over time.

What’s particularly attractive at the moment is that Brickworks’ share price has fallen so hard, but it’s actually invested in an industrial property trust along with Goodman Group (ASX: GMG) which generates good reliable cashflow. It also owns a large stake of Soul Patts shares. Soul Patts also owns a large chunk of Brickworks.

The non-construction businesses alone are creating enough cashflow for Brickworks to keep paying the dividend. It currently has a grossed-up dividend yield of 6%. I think that’s solid

WAM Research Limited (ASX: WLE)

WAM Research is one of the best listed investment companies (LICs) for income. It has grown its dividend every year since the GFC.

The ASX dividend share has a grossed-up dividend yield of 10.4%. It manages to fund such a large dividend by generating strong investment returns by targeting small and medium shares where there’s a catalyst to boost the share price.

Dividends have to be funded by the profit reserve, but it’s currently healthy for the LIC.

Foolish takeaway

Each of these ASX dividend shares have attractive income prospects and could be much better ideas for income compared to the overall ASX. But Soul Patts would be my preferred pick for long-term income.

More reading

• Where to invest $20,000 into shares right now
• 3 shares now trading at crazy cheap prices
• 2 ASX shares I plan to hold til I’m 100
• Is the ASX 200 getting too far ahead of itself?
• 3 ASX shares that will have strong dividends in 2020

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 My 3 best ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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