If you’re looking for some quality ASX dividend shares to buy, then the three listed below tick a lot of boxes for me.

I think they are among the best on offer for income investors right now. Here’s why:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX dividend share to consider buying is Commonwealth Bank. I think the big four banks were severely oversold during the pandemic and, although they have recovered strongly over the last few weeks, I still think they are undervalued. My preference in the sector remains Commonwealth Bank due to the overall quality of its business. Next year I expect the company to cut its dividend to ~$3.70 per share. If this proves accurate it will mean a fully franked 5.4% FY 2021 yield.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue Metals could be a great dividend share to own if you don’t mind investing in the resources sector. It looks well-positioned to deliver strong profit results in FY 2020 and FY 2021 thanks to sky high iron ore prices, improving production grades, and its low cost operations. And with the iron ore producer’s balance sheet looking strong, I suspect the majority of its free cash flow will be returned to shareholders. I expect this to lead to a fully franked dividend of at least 6% in FY 2021.

Telstra Corporation Ltd (ASX: TLS)

A third dividend share to consider buying is Telstra. The telco giant is one of my favourite income options right now due to its attractive valuation, generous yield, and positive outlook. The latter is thanks to the NBN headwind beginning to ease and its significant cost cutting. Combined, I believe Telstra could return to growth in the coming years. But thankfully, until then I believe it dividend is sustainable at 16 cents per share. This equates to a fully franked 5% dividend yield.

More reading

• ASX 200 closes higher, banks keep rising
• Here’s why I think CBA shares are a good buy today
• Ready to invest your first $2,000 in ASX shares? Do these 3 things first
• 2 ASX growth shares I’d buy before Afterpay shares
• Top broker tips the Vocus share price to zoom higher

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.

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The Appen Ltd (ASX: APX) share price slumped 4.59% today to close at $29.08.

Why the Appen share price fell today

The drop came Friday after an after-market announcement on Thursday that revealed a number of Appen’s directors have been selling shares.

The company chair, Chris Vonwiller, sold 18% of his holding for an average price of $29 per share. He sold them for personal reasons, including philanthropy. This left him with a total of 9 million shares.

CEO and managing director Mark Brayan sold 18.6% of his holding at an average price of $30.60 per share. Brayan sold in order to meet tax obligations and to diversify his personal wealth. He continues to hold 418,309 Appen shares. 

Non-executive director Bill Pulver sold just over 45% of his holding in Appen at an average of $30.69 per share. This director sold in order to diversify his personal wealth and has a remaining holding of 332,384 shares.

Together, the directors sold an aggregate of 2.37 million shares, representing a total value of $68,919,600 at today’s share price. 

While the directors each gave reasons why they sold some of their holdings, this didn’t stop the Appen share price from falling in response today. 

The company’s share price today is down from its 52 week high of $32.30 reached in May. It has, however, risen 11.20% compared to this time last year. The company’s share price has also risen significantly since the beginning of January when it sat at $22.18.

Appen has seen considerable success lately through the development of its artificial intelligence (AI) products. The company builds software that can recognise language and images. At its AGM in May, Appen outlined that global AI spending is rising at 28% per year. This demonstrates that it has the ability to reach a rapidly growing market. 

The company’s revenue has grown at a compound annual growth rate (CAGR) of 59% since 2015. Underlying earnings before interest, tax, depreciation and amortisation have risen at a CAGR of 64% over the same timeframe.

Appen had $100 million in cash on its balance sheet in May.

More reading

• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
• Why the Appen share price could come under pressure today
• 3 small cap ASX tech shares that could be stars of the future
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen 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 Why the Appen share price fell nearly 5% today appeared first on Motley Fool Australia.

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What happened today on the ASX?

The S&P/ASX 200 Index (ASX: XJO) closed higher today, with the ASX banks pushing higher.

The ASX 200 keeps going higher despite an initial wobble this morning. The Australian dollar keeps rising as well.

Here are some ASX highlights from today:

ASX banks pull the index higher

The ASX may have finished in the red if it weren’t for the continued positive movements by the major ASX 200 banks. It has been a huge week for them.

Today we saw the Commonwealth Bank of Australia (ASX: CBA) share price rise 1.9%, the Westpac Banking Corp (ASX: WBC) share price rose by 3.4%, the Australia and New Zealand Banking Group (ASX: ANZ) share price went up 2.9% and the National Australia Bank Ltd (ASX: NAB) share price went up nearly 3%.

Kogan.com Ltd (ASX: KGN) shoots the lights out

The online retailer is seeing an astonishing amount of growth in the final quarter of FY20. The Kogan.com share price rose 8.6%, so it’s well on its way to entering the ASX 200 this year. 

Today it said it added another 126,000 active customers in May 2020, bringing the total to 2.074 million at the end of last month.

So far in the fourth quarter of FY20, gross sales and gross profit have grown by more than 100% and 130% respectively. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) has risen more than 200%.

The company finished with $58.6 million of cash and $26 million of debt at the end of May 2020.

New Hope Corporation Limited (ASX: NHC) delayed again

The ASX 200 coal miner announced today that the High Court of Australia has granted Oakey Coal Action Alliance Inc (OCAA) special leave to appeal the orders of the Queensland Court of Appeal which were made on 1 November 2019.

New Hope said that OCAA isn’t challenging findings on groundwater or any other environmental issue that is relevant to any decision being made by the government. This is why the company thinks the Queensland state government should immediately approve the New Acland Stage 3.

More reading

• What the 10 largest companies in the world have in common
• Why is it so hard to outperform the ASX 200 index?
• These quality ASX dividend shares have very juicy yields
• Here’s why I think CBA shares are a good buy today
• 3 tips for surviving an ASX recession

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com 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 ASX 200 closes higher, banks keep rising appeared first on Motley Fool Australia.

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