Due to all the suspensions, deferments, and cancellations, estimating the average dividend yield of the Australian share market is difficult right now.

However, traditionally, the local share market would generally yield an average of approximately 4% each year.

While this is a fantastic yield in comparison to term deposits and savings accounts, you don’t have to settle for that.

Listed below are three top dividend shares which offer very generous yields. Here’s why I would buy them for income:

Commonwealth Bank of Australia (ASX: CBA)

I believe this banking giant would be a good option for income investors. Although the bank will almost certainly cut its dividend significantly in FY 2021, I believe it will still offer an above-average yield. At present I believe a dividend of $3.70 per share is possible next year. This equates to an attractive fully franked 5.3% yield.

Rio Tinto Limited (ASX: RIO)

Another dividend share to look at buying is this mining giant. Thanks to its strong balance sheet, sky high iron ore prices, and the expectation that prices will stay higher for longer, I believe Rio Tinto is likely to reward shareholders handsomely in FY 2020 and FY 2021. I estimate that its shares offer a forward fully franked dividend yield of at least 5%.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final dividend option is the Vanguard Australian Shares High Yield ETF. If you’re looking for high yield dividend shares, then you can’t go wrong with this exchange traded fund. It provides investors with low-cost exposure to 62 companies that have higher forecast dividends relative to other ASX-listed companies. This includes many of the most popular dividend options such as the banks and miners. I estimate that its units offer a forward dividend yield of at least 5%.

More reading

• ASX 200 jumps 3%: CBA rebounds, Afterpay hits a new record high
• Why I would buy Wesfarmers and these ASX dividend shares
• Can ASX big banks generate an attractive sustainable dividend yield from FY21?
• ASX 200 down 0.3%: Big four banks mixed & Healius rockets on medical centre sale
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns

Motley Fool contributor James Mickleboro 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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It has been a great day for the ASX with the S&P/ASX 200 Index (ASX: XJO) up by a staggering 4.28% at the time of writing. While all sectors have performed well, ASX tech shares, in particular, have seen strong share price gains.

Here we look at 4 companies that were among the standout performers.

Wisr Ltd (ASX: WZR)

Small-cap fintech provider, Wisr has seen its share price soar by a massive 32% so far today. It provides online loans for services including debt consolidation, car loans, home renovations, and travel.

Its strong share price rise appears to be linked to a market announcement earlier today. Wisr revealed that new loan originations grew 48% in May 2020, compared to April 2020. This was despite the company maintaining much tighter credit policies during March in response to the coronavirus outbreak.

The company was able to deliver a total of $23.1 million in new loans during the months of April and May. Overall growth during May resulted in loan originations returning to levels before the coronavirus pandemic. It also reported that customer support requests have returned to pre-COVID-19 levels.

EML Payments Ltd (ASX: EML)

EML Payments has seen its share price by 10.3% so far today. The company is an electronics technology solutions provider offering gift and reward cards, pre-paid cards and supplier payments. It manages more than 1,200 card programs across North America, Europe and Australia.

EML payments have diversified its business model via the acquisition of Prepaid Financial Services.

Its share price was hit hard in the early part of the coronavirus crisis. Prior to this period, this tech share been growing strongly for several years.

Easing national lockdown restrictions is starting to stimulate consumers to spend more. This is helping overall demand for card services get back to pre-COVID 19 levels.

The third strong ASX tech share rising today: Openpay Group Ltd (ASX: OPY)

Openpay is a small-cap buy now, pay later (BNPL) provider. Its share price has risen strongly by 13% today. This comes after a wild ride on the ASX over the past week. It suffered heavy share price falls late last week.

This tech share only recently launched on the ASX at the end of 2019. If offers payment plans that range anywhere between 2 and 24 months. Loans provided are for amounts up to the $20,000 mark.

Openpay targets the 3 key markets of automotive, healthcare and home improvement. In comparison, Afterpay Ltd (ASX: APT) targets the retail sector.

More reading

• Why the Wisr share price is surging 32% higher today
• The Zip Co share price is up 500%. Too late to invest?
• Why Afterpay, Super Retail, Uniti, & Viva Energy are charging higher
• ASX 200 jumps 3%: CBA rebounds, Afterpay hits a new record high
• Afterpay and Zip shares are rocketing higher today: Can they go even higher?

Phil Harpur owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Emerchants 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 tech shares are soaring – these are my top 3 today appeared first on Motley Fool Australia.

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The Treasury Wine Estates Ltd (ASX: TWE) share price has been in fine form on Tuesday.

In afternoon trade the wine company’s shares are up over 5% to $11.10.

This latest gain means that Treasury Wine’s shares are now up over 13% since this time in May.

Is it too late to buy Treasury Wine shares?

While I see value in its shares for investors that are prepared to make a long term investment, I’m not convinced its shares will go much higher in the short term.

The latter is a view I share with analysts Goldman Sachs. This morning the broker reiterated its neutral rating and $10.30 price target on the wine giant’s shares.

Goldman has been looking at industry data and, although home consumption trends remain strong, it doesn’t see any real reason to get excited.

Based on Nielsen research, the broker commented: “In continuation of the strong double digit growth seen over the past 2 months, wine sales growth was strong at +31.6% for the 4 weeks ended 16th May with underlying volume growth at 27.4%. Treasury wine sales captured also saw strong growth, but again underperformed vs. the market, growing at +16.4% on a volume basis with +3.6% increase in average selling price.”

What about in China?

The broker notes that the weakness in Chinese wine import data continued into April 2020.

Its analysts explained: “Wine import into China in April was down -48.5% with underlying volumes down -47.8%. Import of wine in containers of less than 2L was down -51.5% from Australia with underlying volumes down -45.1%, marginally below the declines seen in March. On a YTD basis, Australian bottled wine imports were down -19.1% on a value basis and -22.9% on a volume basis.”

And while ecommerce platform sales have been strong and offset some of this decline, Goldman notes that relative pricing of its brands in China remain under pressure.

“Of the 12 products surveyed regularly, average prices on the Chinese e-commerce websites remained unchanged MoM for 6 and reduced for 4 in the month of May. On a yoy basis, average price decline for these products were -7.5%,” Goldman added.

What does this mean?

Essentially, the sum of the above will be a level of growth over the coming years that fails to justify its shares trading at a greater premium to the 22x estimated full year earnings they trade at today.

Though, the broker notes that there is upside risk from a recovery of trading in its US operations and earnings enhancing acquisitions. But until that happens, it will be sitting on a neutral rating.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Two perspectives and a Buy recommendation
• Not keen on Westpac? Then buy these top ASX dividend shares instead
• Why didn’t Warren Buffett buy more shares in the recent bear market?
• Top brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 Treasury Wine share price is up 13% in a month: Is it too late to invest? appeared first on Motley Fool Australia.

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