If you’re looking to add some dividend shares to your portfolio in June, then the three listed below could be great options.

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

BWP Trust (ASX: BWP)

BWP is a real estate investment trust that invests in and manages commercial assets. These assets tend to be large format retail properties, which are predominantly leased to home improvement giant, Bunnings Warehouse. At the end of the first half of FY 2020, its weighted average lease expiry (WALE) stood at 4.3 years. While this isn’t the longest WALE you’ll find on the ASX, I don’t think there is any real danger of Bunnings packing up and moving to other properties. This is because Bunnings is owned by Wesfarmers Ltd (ASX: WES), which also own a ~23.6% stake in BWP. In light of this, I expect modest and predictable rental income growth over the next decade. Based on this, I estimate that its units offer a forward 5% yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying in June is Dicker Data. It is a wholesale distributor of computer hardware and software which has consistently grown its earnings and dividends at a solid rate for many years now. The good news is that this positive trend has continued in 2020 despite the pandemic. The company recently released a first quarter update which revealed very strong profit growth. As a result, management advised that it plans to lift its full year dividend by 31% to 35.5 cents per share. This represents a 4.55% fully franked dividend yield.

Telstra Corporation Ltd (ASX: TLS)

A third option to consider buying in June is Telstra. I think the telco giant’s shares are very attractively priced at present for a patient investment. Especially as I believe Telstra is well-positioned for a return to growth in the coming years thanks to the T22 strategy and the easing of the NBN headwind. In the meantime, as I covered  here, I believe its dividend is sustainable at 16 cents per share for the foreseeable future. This equates to a fully franked 5% dividend yield.

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
• What ASX investors can do before 30 June to save tax
• Leading brokers name 3 ASX 200 shares to buy right now
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high

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. 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 top ASX dividend shares to buy in June appeared first on Motley Fool Australia.

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It is hard to believe that we are only halfway through 2020! The year has been such a rollercoaster that historians are probably racing to write the first books about it. There are certainly enough investing lessons we can take from the last 6 months to fill a book. In fact, I think there are 3 timeless investing lessons that are worth highlighting.

1. Always prepare for the unexpected

There have been plenty of ‘oh crap’ moments so far this year. Not only did we get hit by plunging share markets, negative oil prices, job losses and social isolation, but we faced a run on the one thing we rely on even more than a good hug; toilet paper. Talk about being caught short!

It goes to show how hard it is to forecast low probability events. As investors, we need to stay vigilant and stay ready. Preparing for the unexpected can be as simple as having a diversified portfolio, keeping debt under control and considering how exposed your wealth would be to an unexpected shock.

2. The benefits of automating investing

It hurts when we lose money. It’s often said that we feel the pain of a loss twice as much as the joy of an equivalent gain. So when the market plummeted in March, a natural reaction would be to sell everything and hide under the bed.

The investing lesson here is that by systematically buying shares throughout, even as share prices tumbled, investors could have dodged the pitfalls of emotional investing and scooped up beaten-down shares like Afterpay Ltd (ASX: APT) and Nearmap Ltd (ASX: NEA) at bargain prices.

3. Find companies that can endure

Some of the best-performing companies of the last six months are those with the capacity to endure. These are companies that had strong balance sheets, robust demand and wide economic moats. An example is A2 Milk Company Ltd (ASX: A2M) which seized the opportunity to deploy some of its huge cash pile and increase its stake in key supplier Synlait Milk Ltd (ASX: SM1).

We’ll come back stronger

I think we have all been tested on our capacity to endure so far in 2020. By reflecting on these experiences and understanding the investing lessons, we can grow and come back stronger in the years ahead.

More reading

• Why these 3 ASX 200 tech shares offer great value
• Up over 100% in 2 months. Are Nearmap shares still a buy at current prices?
• 4 reasons the Afterpay share price just hit $50
• Leading brokers name 3 ASX 200 shares to sell today
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory

Motley Fool contributor Regan Pearson owns shares of A2 Milk.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of A2 Milk and 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.

The post 3 timeless investing lessons from 2020 (so far!) appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is up around 25% from its March lows. Nearmap Ltd (ASX: NEA), however has far outpaced the index, increasing by more than 125% over the same period. So are Nearmap shares still a buy at their current price?

Nearmap at a glance

Nearmap is an aerial imagery company which uses a subscription as a service model. It provides imagery which is much higher in resolution than satellite imagery and shows changes over time. It has a multi-year advantage over its closest competitors with a profitable Australia and New Zealand (ANZ) segment as well as a fast growing North America (NA) segment. The NA segment also includes Nearmap’s newest market addition, Canada.

Supplementing the imagery, Nearmap’s software provides a range of product features including orthogonal (2D) imagery, oblique cardinal direction imagery and 3D online and AI content. Its customer base is diverse, as shown below, with the product’s primary appeal being the cost and time savings delivered through reduced reliance on site visits.

Data Source: Nearmap 1H FY20 analyst pack. Chart by author.

The market opportunity

Nearmap has a number of leavers to pull for growth. By expanding into new markets, growing its average revenue per subscription (ARPS), increasing gross margins and of course by growing its number of subscriptions. It appears there is a huge runaway potential.

The growth Nearmap is experiencing in its NA segment has accelerated past that of its more mature ANZ market. The NA portfolio offers a denser and larger market with an ARPS around double that of ANZ. However, the NA segment is not yet profitable since the company is still investing strongly there for future growth. Consequently, this means the company’s current gross margin is only 17% for its NA segment. Compare this to the ANZ segment which delivered a gross margin of 88% for 1H20.

Nearmap’s share price now

Nearmap’s share price began dropping lower mid last year and was also heavily sold off prior to the market crash after updating its guidance. In addition, along with most growth shares, it was again significantly sold off during the coronavirus-led market crash. This left it sitting almost 80% lower within 12 months. Putting the recent 125% rise in perspective, it would still need to gain 120% to reach last year’s high. 

With so many events contributing to Nearmap’s share price decline, its tough to decipher just how much of this fall has been justified. Pleasingly, the current trading conditions appear not to be materially impacting Nearmap. The company is also continuing to invest in growth initiatives. 

In addition to annual contract value growth and segment performance, I will be looking to see a reduction in churn when Nearmap next updates the market. This has historically been low but recently doubled after the company lost a couple of significant customers in the autonomous vehicle industry. Nearmap has noted, however, potential future upside as the industry recovers.

Foolish takeaway

I like Nearmap shares and have been an owner for a number of years, holding through the crazy ride it has been of late. I believe in the company’s future and can see Nearmap’s NA segment following the same path its profitable ANZ segment took. Not to mention the potential for continued global growth Nearmap has cited. Think Singapore, the UK, Asia and Europe. Who knows where this ASX 200 tech could be in 5 or 10 years. I would be happy being a buyer today, provided you have the stomach to hold on and find out.

More reading

• Why these 3 ASX 200 tech shares offer great value
• 3 timeless investing lessons from 2020 (so far!)
• Leading brokers name 3 ASX 200 shares to sell today
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
• What ASX investors can do before 30 June to save tax

Motley Fool contributor Michael Tonon owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and 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 Up over 100% in 2 months. Are Nearmap shares still a buy at current prices? appeared first on Motley Fool Australia.

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