ASX 200 retail shares have been some of the hardest hit in 2020. The coronavirus pandemic saw many stores shut down as tight government restrictions came into place.

The S&P/ASX 200 Index (ASX: XJO) is down 10.91% this year and many Aussie retailers have lost billions in value.

However, there are indications that the tide could be turning. Here are a couple of my top ASX 200 retail shares to watch ahead of a potential recovery in June.

Cheap ASX 200 retail shares to buy today

I think JB Hi-Fi Limited (ASX: JBH) shares could be in the buy zone. JB Hi-Fi has benefitted from the remote working arrangements put in place across much of corporate Australia.

Aussies have flocked to JB Hi-Fi’s online stores to deck out their working from home setups. That means more sales of computers, TVs, monitors and other accessories in 2020.

The ASX 200 retail share is up 5.27% this year but I think it could climb even higher. If we see more companies remain with a remote working model, that could boost JB Hi-Fi’s sales even higher.

I also think Super Retail Group Ltd (ASX: SUL) is worth a look right now. Super Retail is one of Australasia’s top 10 retailers with over 670 retail stores and more than 12,000 team members.

The Aussie retailer owns a number of well-known brands including BCF, Rebel, Macpac, and Supercheap Auto. While sales may have seen a slump, I think the relaxation of restrictions could be a good thing for the ASX 200 retail share.

More Aussies could be looking to get out and about. That might be buying more gym equipment from Rebel or outdoor gear from Macpac and BCF.

The Super Retail share price is down 16.34% this year, but could be set to boom if we see strong earnings in August.

More reading

• These are the 10 most shorted ASX shares
• 3 quality ASX 200 shares to buy and hold until at least 2030
• ASX shares could be the best way to grow your wealth in 2020
• 10 ASX 200 shares that are fit for the Queen
• Is the Macquarie share price the best ASX bank to buy?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group 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 Cheap ASX 200 retail shares to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37dyxmE

While the Australian economy is faring a lot better than many expected during the pandemic, I’m still of the belief that rates will remain lower for longer.

Barring a spike in inflation, I suspect the Reserve Bank will keep rates at 0.25% until at least 2022, but possibly longer.

In light of this, I think dividend shares remain the best way to generate a passive income. But which dividend shares should you buy? Three that I rate highly are listed below:

BHP Group Ltd (ASX: BHP)

The first dividend share I would consider buying is BHP. I believe the Big Australian would be a top option for investors due to its world class operations and favourable commodity prices. This is particularly the case with its iron ore operations, which are benefitting greatly from a surge in the price of the steel making ingredient. I expect BHP to generate significant free cash flows in the near term. And with its balance sheet in such a strong position, the majority of this free cash flow is likely to be returned to shareholders. I estimate that the mining giant’s shares currently provide investors with a forward fully franked ~5% dividend yield.

VanEck Vectors Australian Banks ETF (ASX: MVB)

Another dividend share to consider is the VanEck Vectors Australian Banks exchange traded fund. I think it is a great option for investors that are looking to invest in the banking sector, but aren’t sure which bank to buy. This is because this exchange traded fund gives investors exposure to all of the big four banks. It is also invested in Australia’s regional banks and investment bank Macquarie Group Ltd (ASX: MQG). Predicting the dividends the banks will pay in FY 2021 is tricky, but I would expect a yield of at least 5% from this exchange traded fund.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. I’m a big fan of the conglomerate due to its strong businesses and their positive long term outlooks. Combined with its mountain of cash, which is likely to be used for acquisitions in the near future, I believe Wesfarmers is well-placed to grow its earnings and dividends at a solid rate over the next decade. This could make it a great long term option. At present I estimate that its shares offer a fully franked 3.7% FY 2021 dividend yield.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Want high-paying dividends? Try Wesfarmers shares and these 2 other ASX options
• Where I’d invest $2,500 in ASX shares today
• Top brokers name 3 ASX 200 shares to buy next week
• How to replace your entire wage with dividends

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Wesfarmers 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 3 high quality ASX dividend shares you can buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3f4Slvq