Once reliable S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) dividend shares have come under fire, following uncertain earnings and challenging business conditions amidst the coronavirus pandemic. However, there are many dynamic businesses out there, surviving or even thriving in today’s unprecedented economic conditions.

Here are 3 ASX dividend shares that you could add to your income portfolio. 

1. Fortescue Metals Group Limited (ASX: FMG) 

Fortescue is positioned front and centre to benefit from the strong iron ore spot price and weak Australian dollar. This follows mounting supply concerns for Brazil, one of China’s biggest sources of iron ore. Brazil’s confirmed coronavirus cases have soared to more than 300,000, second only to the US. 

From a demand perspective, Chinese steel mills have been ramping up production since April. Exhausting iron ore inventories will place further pressure on the iron ore spot price. While the Fortescue share price might be near record all-time highs, the resilient iron ore spot price and China’s commodity intensive recovery should see this continue. Fortescue currently pays a whopping 7.19% dividend yield, which may make it one of the most desirable and resilient ASX dividend shares to watch out for. 

2. Money3 Corporation Limited (ASX: MNY) 

Money3 provides automotive finance for the purchase and maintenance of vehicles. It estimates that approximately one in every 500 vehicles in Australia have a current Money3 loan. One in every 800 vehicles in New Zealand have a current Go Car Finance loan (the New Zealand-based auto loan company Money3 acquired in 2019). 

In a recent conference presentation, the company provided unaudited financial results for YTD March 2020. It has so far seen a 44.4% increase in revenue and 43.6% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) compared to the prior corresponding period.

Despite the damage that COVID-19 has inflicted on the Australian economy, Money3 has seen minimal impact on cash collections. It believes that government stimulus will have a positive impact on customers’ ability to continue to make payments towards their loans. It confirmed that in its New Zealand market customers continued to seek loan pre-approval during lockdown, with digital signup and contactless delivery occurring.

The minimal impact that COVID-19 has had on Money3’s cash flows and the expected rebound in the vehicle market could make the company a very strong ASX dividend share to own. Money3 currently pays a market-leading dividend yield of 5.97%. 

3. People Infrastructure Ltd (ASX: PPE) 

People Infrastructure operates in the workforce management sector, providing support to 3 main industries: health and community services, information technology, and general staffing/specialist services. The company raised $17.6 million in April to provide additional balance sheet support for the period that the business impacted by COVID-19. The funds are also marked for potential future acquisition opportunities as a result of the current volatile economic situation. 

The company provided another update to the market in May. This highlighted an expected FY20 normalised EBITDA to be in the range of $24–25 million. This would represent an approximate 35% increase on FY19 figures. It also pointed to factors that may support or increase the company’s 2020 performance. This includes continued demand for staff services across its divisions, in particular, an increase in demand for staffing in its general staffing business, a recovery in its information technology and nursing businesses. With potential tailwinds in mind, PPE also pays a 2.91% dividend yield.

More reading

• 3 ASX 200 shares to watch this week
• Is the Woolworths share price cheap today?
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended People Infrastructure 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 3 top ASX dividend shares to buy now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2yQpR9b

ASX 200 shares enjoyed a bumper performance last week as the S&P/ASX 200 Index (ASX: XJO) jumped 4.71% higher. There’s growing optimism about the global economy in 2020 and investors have been pouring money into shares. 

Last week I was watching CSL Limited (ASX: CSL), A2 Milk Company Ltd (ASX: A2M) and Stockland Corporation Ltd (ASX: SGP).

It was a tough week for CSL shareholders as the biotech giant’s shares slumped 5.06% to $276.22. A2 Milk shares edged 0.85% higher last week while the Stockland share price surged 16.29% higher by Friday’s close.

After a big week for last week’s top picks, here are the 3 ASX 200 shares I’ll be keeping my eye on in the week ahead.

3 ASX 200 shares to watch this week

I think Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are worth watching this week. The ASX 200 bank’s share price rocketed 10.41% last week after the company provided an update on COVID-19 impacts on Thursday. Bendigo reported a strong capital position, despite the pandemic, which looks to have boosted investors’ optimism. I think any share that rockets higher is worth watching to see if it continues to climb and outperform its peers or slump back to earth.

Flight Centre Travel Group Ltd (ASX: FLT) shares are also on my weekly watch list. The ASX 200 travel share rocketed 15.85% higher and could be climbing even further this week. Travel restrictions continue to ease which is good news for Flight Centre’s earnings. If the good news continues here in Australia, I think the Flight Centre share price could be heading higher in 2020.

Finally, the St Barbara Ltd (ASX: SBM) share price is one to watch this week. The Aussie gold miner’s shares fell 1.29% last week as many of its ASX 200 peers rocketed. Gold tends to underperform when investors are bullish which was the case last week. Despite some optimism about the current environment, however, I think there could be more volatility on the way. This could bode well for St Barbara and its gold mining compatriots.

More reading

• 3 top ASX dividend shares to buy now
• Is the Woolworths share price cheap today?
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Flight Centre Travel 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 3 ASX 200 shares to watch this week appeared first on Motley Fool Australia.

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

The Woolworths Ltd (ASX: WOW) share price could be trading cheaply right now. Shares in the Aussie retailer are down 2.27% this year having hit a new 52-week high on 20 February. So, with all the volatility in the market right now, is the Aussie retailer in the buy zone?

Is the Woolworths share price cheap today?

I think there’s a lot to like about Woolworths right now. The group’s supermarket division is going strong as sales have surged in 2020. That continues to underpin a strong business model which is starting to look more strategically aligned by the year.

There is the ailing pubs business that is weighing on the Woolworths share price right now: ALH Group. ALH operates 323 licensed venues and over 537 retail liquor outlets across Australia. That encompasses restaurants, bistros and other establishments. However, the coronavirus pandemic has hit that business hard as restrictions have led to temporary closures.

However, restrictions are starting to ease and things could be looking up for Woolworths and its share price. I think it’s fair that Woolworths’ value has dropped in 2020 as the economic environment has changed. However, I think $35.34 may be a little low for a company that has traded as high as $43.96 per share in mid-February.

But Woolworths is trading roughly on par with the Coles Group Ltd (ASX: COL) share price in 2020. That indicates to me that its supermarket performance is being valued similarly to its peers. If we compare conglomerate to conglomerate, the Wesfarmers Ltd (ASX: WES) share price is down 2.49% this year. 

If we assume the market is correctly pricing in the current economy, then the Woolworths share price is trading in line with its peers. I think if restrictions continue to ease and Woolworths’ pubs business bounces back quickly, that could make the current $35.34 valuation look cheap.

Foolish takeaway

The Woolworths share price has been on a rollercoaster in 2020. I think the company could be undervalued right now but only if restrictions continue to beat expectations. I’m not willing to speculate at the current price given it’s trading roughly in line with its closest peers.

More reading

• 3 top ASX dividend shares to buy now
• 3 ASX 200 shares to watch this week
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths 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 Is the Woolworths share price cheap today? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36NU3y2