The S&P/ASX 200 Index (ASX: XJO) rose by 0.1% to 5,943 points today.

It was retail that dominated the headlines. According to the stats produced by the Australian Bureau of Statistics (ABS), Australian retail sales surged 16.3% in May to $4.03 billion. This is the largest month-on-month rise in 38 years.

On the ASX it was also retailers that had some of the best share price performances:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price climbed by around 20% today, making it one the leading businesses.

The company said that it’s now expecting second half net profit to be up 15% to 20% compared to the second half of FY19, which will help achieve FY20 underlying net profit of between $39 million to $40 million. The underlying profit excludes the impact of the gain of the sale of property and the impact of the adoption of AASB 16.

FY20 revenue is expected to be in the range of $260 million to $263 million. The fourth quarter of FY20 to 14 June 2020 saw written sales order growth of 20.4%.

Nick Scali responded to showroom closures by launching its digital offering, allowing customers to purchase the entire range of Nick Scali products through digital channels. Management see further scope to invest into its digital capabilities, though it’s early days.

Nick Scali estimated that store closures meant $9 million to $11 million of sales were unable to be recorded. However, the range of actions taken by management, plus government support, meant the second half profit should be solid.

The company expects sales revenue for the first quarter of FY21 will be up approximately 30%. This should underwrite profit growth for the first half of FY21.

The Nick Scali board has decided to bring forward the payment of the deferred interim dividend. The deferred 25c per share dividend will be paid on 29 June 2020.

Adairs Ltd (ASX: ADH)

The Adairs share price rose by 10.5% after giving a trading update.

Adairs said that in the 24 weeks to 14 June 2020, like-for-like (LFL) online sales rose by 92.6%. LFL total sales increased by 27.4%.

In the year-to-date numbers, which is for the 50 weeks to 14 June 2020, LFL online sales were up 64% and total LFL sales were up 15.7%.

The managing director and CEO of Adairs, Mark Ronan, said: “Since Adairs stores re-opened we have seen strong sales across both the store network and online channel as customers return for the in-store service and experience they expect from Adairs. Pleasingly, Mocka’s online sales growth has continued at high levels. Both businesses have also remained disciplined on inventory and margin management.

“Our omni channel strategy and focus on the home decorating and furnishing category has served us well during this period where our customers have spent significantly more time at home.”

In terms of final FY20 guidance, the company is now expecting the Adairs division to generate between $358 million to $362 million of revenue (with around 27% of this total being online). Mocka is expected to contribute $27 million to $28 million of sales. Overall, the company is expecting to report $385 million to $390 million of revenue in FY20.

Other noteworthy movements of the day

The ASX 200 gold miner Evolution Mining Limited (ASX: EVN) share price dropped around 1% after giving a Mt Carlton update.

Sydney Airport Holdings Pty Ltd (ASX: SYD) suffered a share price drop of 2% after releasing another monthly update of a huge decline of passenger numbers.

Buy now, pay later business Splitit Ltd (ASX: SPT) saw its share price end 6.9% higher at $1.47, though it reached $1.88 in early trading. Yesterday the company announced it had made an agreement with Mastercard.

The Orora Ltd (ASX: ORA) share price dropped 15.7% today after going ex-dividend.

There were some impressive gains today at the top end of the ASX 200. The AP Eagers Ltd (ASX: APE) share price went up almost 10%, the Netwealth Group Ltd (ASX: NWL) share price rose 9% and the Avita Medical Ltd (ASX: AVH) share price climbed 8.3%.

More reading

• These 3 ASX ETFs are yet to recover from the market crash
• Investing experts warn of second ASX market crash
• 3 ASX shares I think are super cheap right now
• Why the Splitit share price has shot up 135% in 2 days
• ASX stock of the day: Nick Scali share price leaps 21% on sales numbers

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Netwealth. The Motley Fool Australia has recommended Avita Medical 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 ASX 200 up again, ASX retailers make big gains appeared first on Motley Fool Australia.

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ASX big bank dividends are a write-off in FY20 but are set to rebound as we head into the new financial year.

The question is which of the big four dividend favourites will generate the best yield for income seeking investors in FY21?

The answer isn’t quite as straightforward to work out. While we are very likely to see a dividend recovery in the near-term, the payouts are unlikely to match pre-COVID-19 levels for at least a few years.

How to value the big banks

But trying to work out what the dividend is going to be is important as dividends are the primary driver for the sector, in my opinion.

Morgan Stanley throws in credit quality and capital on top of dividends as key considerations for the sector as it calculates what is a sustainable payout for the sector.

The risk of loan defaults and capital adequacy are important in so much as how they relate to dividends though, but that’s just my opinion.

Key things you should know about ASX bank dividends

On that note, there are some interesting findings from Morgan Stanley. Firstly, the broker doesn’t believe dividends will return to FY19 levels until sometime after FY22 as dividends forecast for that year will still be around 25% lower than last financial year.

However, it believes that dividends will trough in FY20 before staging a gradual recovery. This means dividends are set to rise over the next few years.

Further, the average dividend payout ratio in FY22 is estimated to be 64%. That’s well below the 80% plus range that the big four were coughing up during in their heydays.

But the 64% is still high by global standards as US and UK banks are only expected to pay out 32% and 47% of their profits as dividends, respectively, according to Morgan Stanley’s estimates.

The ASX big bank with the best yield

Coming to the main event, the ASX big bank with the best forecast dividend for FY21 is Westpac Banking Corp (ASX: WBC).

The broker is tipping a $1.05 a share distribution for the next financial year, and that increases to $1.20 in FY22.

This gives Westpac a net yield of 5.8% in FY21 and 6.6% the following year. Throw in the franking and the gross yield shoots up to 8%-9%.

How the other banks’ dividends compare

Next on the dividend leader board is Australia and New Zealand Banking GrpLtd (ASX: ANZ). The stock is sitting on an expected net yield of 5.6% in FY21 and 6.7% in FY22.  

National Australia Bank Ltd. (ASX: NAB) is in third place with a net yield of 5.1% next year and 5.9% in FY22, while Commonwealth Bank of Australia (ASX: CBA) is sitting on an expected yield of 4.9% and 5.4% for the two years, respectively.

Foolish takeaway

I won’t necessarily say that the big bank with the best yield right now is the top buy. The yields can change as bank share prices fluctuate, so WBC may not hold on to its crown next week.

What I will say is that even CBA’s gross yield (lowest of the lot) of 7% is looking quite appealing in this record low interest rate environment.

CBA has the strongest balance sheet and is arguably the best placed big bank. So, while it’s the most expensive of the big four and has the skinniest yield, it remains my top pick in the sector given the uncertain times we live in.

More reading

• ASX 200 up 0.9%: Big four banks rebound, Appen hits record high
• Where to invest for reliable dividend shares
• Diversify your portfolio with 3 top ASX 200 shares from 3 sectors
• Beat the cash rate cuts with these top ASX dividend shares
• How the ASX 200 can help first home buyers save for a deposit

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. 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.

The post The ASX big bank stock with the best forecast dividend yield for the new year appeared first on Motley Fool Australia.

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How different the world of investing is today than it was back in March… At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is motoring along at 5,942 points. At these levels, we are now up more than 30% from the lows we saw in March, although still aways from the all-time highs we were seeing in February.

But some investments have done one better. Just this week, the BetaShares Nasdaq 100 ETF (ASX: NDQ) made a new all-time high. This ASX exchange-traded fund (ETF) tracks the US Nasdaq exchange and counts some of the biggest tech companies in the world (like Microsoft and Amazon.com) as constituents.

But not all ETFs are flying so high.

Here are 3 that are still substantially below their early 2020 highs, and that might make good investments today for long-term returns:

A top global shares ASX ETF

The iShares Global 100 ETF (ASX: IOO) is an ETF that tracks the 100-largest global companies across the advanced economies of the world. These are largely made up of American shares like Apple, Microsoft, Facebook and Alphabet, but the United Kingdom, Canada, Japan and even Australia get exposure, too.

Despite the recovery in global markets since March, this ETF is still trading around $77 a unit – a fair distance from the $85+ price tag it was asking back in February. Thus, it might be a good time to consider this blue chip bastion today.

Consumer staples shares

The iShares Global Consumer Staples ETF (ASX: IXI) is another ASX fund that hasn’t yet fully recovered from the shellacking it saw in March. This ETF houses a basket of globally-listed companies that dwell in the consumer staples space. This includes makers of packaged foods, drinks, household essentials and cleaning products, as well as ‘sin stocks’ like alcohol and tobacco companies. You’ll find our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) here, as well as global giants like Procter & Gamble, Nestle and Unilever.

Ishares’ Global 100 units have recovered well since March. Coincidently, these shares also hover around $77, below their $85 February range. For one of the safest ETFs around (in my opinion), today could also be a good day to add this ETF to your portfolio.

Emerging markets opportunity?

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) is our final ETF to consider today. It tracks shares from those economies that are deemed to be ’emerging’. You’ll find shares from China, Taiwan, India and Brazil here, amongst others. These markets are riskier, but also offer potentially higher long-run returns in my opinion if demographics are anything to go by.

VGE units were asking close to $75 earlier in the year, but today are going for around $64.80. If you want to add some exotic spice to your portfolio with this ETF, today is as good a time as any in my view.

More reading

• Investing experts warn of second ASX market crash
• Australian retail sales up 16.3% in May
• 3 ASX shares I think are super cheap right now
• Brokers just upgraded these ASX 200 stocks to “buy” today
• ASX 200 up 0.9%: Big four banks rebound, Appen hits record high

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of COLESGROUP DEF SET, iShares Global Consumer Staples ETF, 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 These 3 ASX ETFs are yet to recover from the market crash appeared first on Motley Fool Australia.

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