Finding shares with a dividend yield over 10% requires looking in a few odd places and sometimes making a few sacrifices. Income investing requires a bit more initial capital and a bit more time.

The practice of dividend harvesting is still popular; where you buy high-yielding shares prior to the ex-dividend date and then sell them off again shortly afterwards. However, I personally have found that to be fraught with risks. 

 The truly great income investing opportunities were around 23 March when the market bottomed out. But there are still very good investments available if you look for them.

High-confidence dividend yield, short duration

Orora Ltd (ASX: ORA) goes ex-dividend on 19 June. At Wednesday’s closing price it would produce a special dividend payout of 13.6%. Moreover, the company also received a windfall from the sale of one of its businesses. This means it is going to distribute an additional payment to shareholders. At yesterday’s closing price this means a total payment of 18.1% to be paid on 29 June. 

Orora has consistently grown its dividend by about 13.8% over the past 6 years. While this is a special dividend, the company’s current low share price increases the yield of future payments. The Orora share price is down by 12.9% YTD.

Out-of-favour shares

Yancoal Australia Ltd (ASX: YAL) is one of those shares that some people may well refuse to own. Despite this, it is a very well run company and has positioned itself for further production growth. It currently trades at a very low price-to-earnings ratio of 3.95. Its present twelve-month trailing dividend is 14.68%. Which is an almighty yield from a company worth $2.8 billion.

The company has only been paying dividends for the past 2 years. However, its policy statement reads “…Yancoal will target a dividend payout of (A) 50% of net profit after tax (pre-Abnormal Items); or (B) 50% of the free cash flow (pre-Abnormal Items), whichever is higher.”

Foolish takeaway

Presuming you split $5,000 evenly between these two options, and that the Yancoal dividend remained the same or higher, the return would be at least $818 (16.4%) a year from now. 

More reading

• 3 cheap ASX manufacturing shares for the supply chain boom
• Top ASX Stock Picks for June 2020
• Buy this ASX 200 share now for an 18% dividend yield in a month
• Has China banned Australian coal?
• Top ASX Dividend Stock Picks for May 2020

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Do you have $10,000? I think ASX shares are the perfect place to invest it.

I believe ASX shares are a great way to grow your wealth with minimal effort. But in this coronavirus era we need to be careful. I’d only want to buy shares with good prospects that will be fine if there’s a worse-than-expected downturn.

Here are long-term ASX shares I’d go for:

Bubs Australia Ltd (ASX: BUB) – $2,000

Bubs is an exciting infant formula business which specialises in goat milk products. Just like previously successful infant formula businesses, Bubs is growing revenue strongly in Asia. Both China and Vietnam are generating good growth right now for Bubs.

The ASX share is steadily adding new products, including an organic grass-fed cow infant formula product which may also prove to be popular.

Growth is accelerating due to the coronavirus and Bubs generated a positive operating cashflow in the last quarter. It’s in a strong position.

MFF Capital Investments Ltd (ASX: MFF) – $3,500

MFF Capital is a listed investment company (LIC). It’s run by the high-performing Chris Mackay who has recently moved almost half of the portfolio to cash. So at the moment MFF Capital is a good hedge against another US share market fall which could easily happen because of what’s going with the pandemic and riots.

ASX shares are great, but globally there are some fantastic businesses to be invested in like Visa and Mastercard. It’s these types of businesses that will benefit from the shift to online shopping.

Pushpay Holdings Ltd (ASX: PPH) – $3,000

Pushpay is an electronic donation business. At the moment its focus is facilitating donations from congregations at medium and large US churches.

There is a strong demand for digital giving right now due to the social distancing measures in the US. That’s partly why management are expecting earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double in FY21.

Pushpay is one of my favourite ASX shares at the moment because of how much growth it could achieve over the long-term. It’s targeting a $1 billion revenue opportunity in the US church sector. There are other countries and other not-for-profit areas it can grow in.

Brickworks Limited (ASX: BKW) – $1,500

The Brickworks share price has climbed 23% since the middle of May, so I don’t think it’s as good value now as a few weeks ago. But I think it’s still compelling.

The value of its Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares continues to grow. Its 50% stake in the industrial property trust will be even more important because of the shift to ecommerce.

The ASX share could be a beneficiary from the government’s plan to encourage house building and large renovations, which would really help the Australian building products division. I think construction could recover quicker than some expect.

Foolish takeaway

I believe all four of these ASX shares have a good chance of beating the market over the next four years. I like the optionality that MFF Capital provides with its large cash balance, but Pushpay and Bubs could also grow into quite large businesses over time.

More reading

• Why it’s a good week to buy international shares
• Should your share portfolio actually be 50% cash right now?
• 3 Warren Buffett ASX dividend shares you can buy right now
• 3 of the best ASX shares to buy with $3,000 right now
• Why I’m not afraid to invest in shares during this recession

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The S&P/ASX 200 Index (ASX: XJO) looks set to continue its stellar run on Thursday. In late morning trade the benchmark index is up 1% to 6,003.1 points.

Four shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

The Corporate Travel Management Ltd (ASX: CTD) share price is up 7% to $13.12. This is despite there being no news out of the corporate travel booker. This latest gain means that Corporate Travel Management’s shares are now up approximately 200% from their March low.

The SKYCITY Entertainment Group Limited (ASX: SKC) share price has jumped 7% to $2.77. Investors have been buying the casino and resorts operator’s shares since the release of an update on Wednesday. That update revealed that its New Zealand operations have performed well since reopening in the middle of May. Investors appear optimistic that the worst is now behind the company.

The Vocus Group Ltd (ASX: VOC) share price is up 3.5% to $3.23. This morning Vocus announced that it has refinanced its debt and reaffirmed its guidance for FY 2020. Vocus expects its earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of $359 million to $369 million. This compares to FY 2019’s EBITDA of $360.1 million. Its core Vocus network services business has been performing well. It is expecting the key segment to deliver EBITDA growth of 10% this year.

The Westpac Banking Corp (ASX: WBC) share price has continued its run and is up almost 2% to $18.26. Investors have been buying Westpac’s shares despite it releasing an update on its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF ) compliance issues. Australian oldest bank blamed the compliance issues on three primary factors. This includes some areas of AML/CTF risk not being sufficiently understood within Westpac.

More reading

• Why this ASX 200 telco share is storming higher today
• Westpac share price on watch after AUSTRAC update
• ASX 200 jumps 1.8%, Australian headed for recession
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high
• Is the Westpac share price a buy?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Sky City Entertainment Group 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 Corporate Travel Management, SKYCITY, Vocus, & Westpac are pushing higher appeared first on Motley Fool Australia.

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