Investors are torn between a pick-up in economic activity and fears of a second wave of COVID-19 cases.

The resurgence in the number of coronavirus cases in Victoria is adding to worries as the US continues to struggle to contain the outbreak.

While the S&P/ASX 200 Index (Index:^AXJO) swung between gains and losses to end flat on Monday, travel-related ASX stocks were the standout losers from today’s trade.

About to be hit by another wave?

It looks like state borders will be locked down for longer than most expected with Victoria reporting 16 new COVID-19 cases over the weekend, according to the Australian Financial Review.

What’s even more worrying is that the source of the virus is unknown in a number of these cases.

Adding to the gloom in the sector are predictions that international travel is off the agenda until sometime in 2021. It may be the later half of next year before we can travel overseas or welcome international tourists.

ASX stocks worst hit by second wave fears

Little wonder the Corporate Travel Management Ltd (ASX: CTD) share price is the second worst performer on the ASX 200 today with a 8% crash to $11.03.

But its peers aren’t far behind. The Webjet Limited (ASX: WEB) share price nosedived 5% to $3.78, the Qantas Airways Limited (ASX: QAN) share price dropped 4.1% to $4.19 and the Flight Centre Travel Group Ltd (ASX: FLT) share price declined by a similar amount to $13.05.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price didn’t escape the sell-off with JP Morgan warning that earnings may take longer than expected to recover.

No place to hide

The 97% plunge in passenger numbers going through our nation’s largest airport is only part of the problem.

The airport is likely to have to provide rent relief to its retail tenants while the fees it gets from its lucrative car parks will be nearly non-existent too.

Don’t count on Sydney Airport paying a dividend this year either, according to the broker. JP Morgan is only tipping a dividend of 25 cents a share in 2021 and 37 cents the following year.

The broker reckons fair value for the stock is $5.10 and that’s well below Sydney Airport’s closing price of $5.95.

Foolish takeaway

There’s really no reason to be buying Sydney Airport in my view with no dividend and little scope for a re-rating in the nearer-term.

There are much better ASX shares to be looking at in this coronavirus-stricken market. The experts at the Motley Fool have picked a handful that are worth putting on your watchlist.

Find out what these stocks are for free by following the link below.

More reading

• Apparently free brokerage is to blame…
• Top brokers are urging you to buy these 3 ASX stocks today
• Why Morgans is urging investors to buy ASX big bank stocks today
• Why Altium, Australian Ethical, Flight Centre, & Transurban are dropping lower
• Here are 3 ASX 200 shares with dividend yields over 8%

Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. 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 The ASX stocks worst hit by second wave COVID-19 fears appeared first on Motley Fool Australia.

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The share prices of the 3 major ASX gold miners below were higher on Monday following a lift in the gold price. Additionally, they were boosted by reports that the wealthy have been buying up gold, which could suggest a strong rally is coming. Lately, the gold price has also been supported by the decision of the US federal reserve to continue its quantitative easing as the world economy works through the current recession. 

If your bullish on gold prices, gold mining companies are a great way to gain exposure. As the gold price moves higher they generally see an increase in sale prices of the precious metal. This boosts profits for shareholders.

Newcrest Mining Limited (ASX: NCM)  

The Newcrest Mining share price was up 3.69% on Monday. Newcrest has operations in Australia, Canada, Ecuador and Papua New Guinea. In Q3 of the 2020 financial year, Newcrest produced 519,000 ounces of gold. Its margin on this production was $742 per ounce. Since the end of March, the gold price has recovered more than 15%. This means that we can expect the margins that Newcrest receive to be significantly higher in the current period. 

The Newcrest mining share price has recovered almost 50% from its 52 week low of $20.70. It is up 3.25% since the beginning of the year. 

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen Mineral Holdings share price is up 8.47% on Monday. Saracen is a reliable gold producer and has an impressive 7-year track record of meeting or beating its production guidance. Its production guidance for the 2021 financial year is 600,000 ounces or more. If higher gold prices remain this will fetch over $1.5 billion in revenue for the miner. 

The Saracen Minerals share price is up 84% from its 52 week low of $2.81. Since June 2015, the Saracen Minerals share price has increased more than 10 fold from $0.45 cents to $5.17 on Monday. 

St Barbara Ltd (ASX: SBM)

The St Barbara share price was up 5.96% on Monday. This comes as investors rush into shares offering exposure to the precious metal. St Barbara has operations in Australia, Canada and Papua New Guinea. When St Barbara presented to analysts in May, it forecast that it would produce 385,000 ounces of gold in the 2020 financial year. This is lower than its usual production over the last 5 years and if the miner can boost production at a higher gold price, it could see significantly higher profits for shareholders.

 The St Barbara share price is up 98% from its 52 week low of $1.615. It has returned 17.2% since the beginning of January.

More reading

• A $73m boost sends the Austal share price to the top of the ASX 200 today
• ASX 200 Weekly Wrap: ASX back in the green
• 5 things to watch on the ASX 200 on Monday
• Where to invest for reliable dividend shares
• 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 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 Why the share prices of these 3 gold miners climbed higher on Monday appeared first on Motley Fool Australia.

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If you’re looking for a source of income in this low interest rate environment, then I think the dividend shares listed below could be quality options.

Here’s why I think income investors ought to consider buying them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

I think ANZ would be worth considering right now. At around 13x estimated FY 2021 earnings and 0.9% FY 2021 book value, I think the banking giant’s shares are trading at a very attractive level. Especially for income investors. I expect the bank to pay a partially franked dividend of $1.05 per share in FY 2021. If this proves accurate, it means that ANZ’s shares currently offer investors a very generous 5.5% yield at present.

SPDR S&P/ASX 200 Fund (ASX: STW)

This exchange traded fund (ETF) gives investors exposure to all of the 200 companies listed on the S&P/ASX 200 Index (ASX: XJO) through just a single investment. This diverse group of shares includes the likes of the big four banks, mining giants, and countless REITs. While predicting what the yield will be in FY 2021 is difficult because of dividend deferrals and cuts, traditionally it is around 4% to 4.5%. I think this makes it a good option for income investors that don’t have enough funds to maintain a truly diverse portfolio.

Wesfarmers Ltd (ASX: WES)

Another top dividend share to consider buying is this conglomerate. I’m a big fan of the conglomerate due to the quality and diversity of its portfolio of businesses. I feel the majority of these businesses are well-positioned to deliver solid long term earnings growth. Combined with potential earnings accretive acquisitions in the near term, I think Wesfarmers could grow its dividend materially over the next decade. For now, I estimate that its shares offer investors a fully franked ~3.6% FY 2021 dividend yield.

More reading

• Why Morgans is urging investors to buy ASX big bank stocks today
• Here are 3 Australian share market trends to watch this week
• ASX share price winners and losers of last week
• ASX 200 Weekly Wrap: ASX back in the green
• Which shares to buy if the ASX tumbles

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 quality ASX dividend shares you can buy today appeared first on Motley Fool Australia.

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