Author: therawinformant

The Atomo Diagnostics Ltd (ASX: AT1) share price has charged 4% higher today on the back of a positive announcement. At the time of writing, the Atomo share price is trading at 38.5 cents, up 4.05%.

This is in comparison to the All Ordinaries Index (ASX: XAO) which is marginally in positive territory, up 0.2% to 6,149 points.

Let’s see why the Atomo share price is surging today.

Expanded partnership

The Atomo share price is on the move since the company updated the market advising it had expanded a partnership with Access Bio Inc. The agreement will see the launch of Atomo’s rapid COVID-19 antigen test in Australia, New Zealand and India.

The nasopharyngeal swab test is designed to screen for antigens produced in response to COVID-19 infections at the point of testing. This differs to the current nasal swab testing in Australia, which uses molecular PCR assays to test for coronavirus.

Atomo’s rapid test provides results after 10 minutes, as opposed to the general test kit, which is sent to a central laboratory for processing. The company said that the early identification is a breakthrough is controlling outbreaks.

In addition, Atomo noted that its rapid antigen test has the potential to work alongside its COVID-19 rapid antibody test. The latter detects whether a patient has developed antibodies to the virus, most accurately after 15 days of exposure.

Atomo will purchase the finished product from Access at a fixed price per unit. Estimated revenue earnings were not provided as Atomo seeks regulatory approvals in Australia, New Zealand and India.

The rapid antigen test is already marked for professional use in Europe and has seen significant sales thus far. In the United States, the Food and Drug Administration (FDA) is currently pending an Emergency Use Authorisation (EUA) for the new test kit.

Management comments

Atomo Co-founder and Managing Director, John Kelly, was pleased with Atomo’s new expanded partnership. He said:

Atomo is delighted to have secured rights to market a quality US manufactured rapid antigen test from a trusted partner. We believe that having the ability to screen for both acute infection and prior exposure at the same time, with results delivered after 10 minutes at the point of testing, could be game-changing in the way we diagnose COVID-19.

Furthermore, Mr Kelly validated the effectiveness of the company’s antigen test kit. He added:

Antigen tests have been proven to provide good detection of COVID-19 infection in the early stage onset of symptoms. Combined with our TGA-approved rapid antibody test for COVID-19 that reliably detects exposure to the virus over a longer period, we believe that a combo rapid screen will offer excellent performance outside of laboratory settings where reliable testing is most needed.

About the Atomo share price

Since listing on the ASX in April, the Atomo share price is almost flat, down around 1%. In light of the company’s new developments, I think that Atomo has a lot to offer in the current environment. Both tests could prove to be game-changing in identifying affected COVID-19 patients who can then isolate themselves from the public.

Should the company overcome its regulatory hurdles, I believe the Atomo share price could push significantly higher from today’s valuation. With a market capitalisation of $213 million, I’m confident there is a lot of runway for this medical device company.

More reading

• Atomo (ASX:AT1) share price rockets 10% on new agreement

Motley Fool contributor Aaron Teboneras 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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ASX gold stocks are under pressure lately, but this could be a good time to buy this often-overlooked miner, according to a leading broker.

Never mind that our listed gold producers just can’t seem to catch a break. No one wants to buy them during a risk-on session when the S&P/ASX 200 Index (Index:^AXJO) is running higher.

But investors have also been reluctant to buy gold when risk aversion comes back to the fore as the favoured safe-haven asset at the moment is the US dollar. There’s an inverse correlation between the greenback and the precious metal.

ASX gold stocks set for Santa Rally

So gold is stuck in no-man’s land for the moment. But as I’ve written previously, I think this will change during the US Presidential Election as Trump is refusing to hand over power peacefully if he loses the race.

This means the Newcrest Mining Limited (ASX: NCM) share price, Evolution Mining Ltd (ASX: EVN) share price and Northern Star Resources Ltd (ASX: NST) could enjoy a Santa Rally.

Latest ASX gold stock on the “buy” list

But there’s another stock that’s worth putting on your watchlist. This is the SSR Mining Inc CDI (ASX: SSR) share price, which is the latest gold stock to appear on UBS’ “buy” list.

“We initiate on SSR with a Buy rating due to its attractive valuation and strong free cashflow,” said the broker.

“The share price is trading at a ~20% discount to our NPV which is based on US$1,900/oz gold price.”

Marigold could finally bloom

SSR merged with Alacer Gold and its two key assets are Copler and Marigold. Copler has proven to be a consistent performer in 2020 following the completion of the Sulfide plant in 2019 at a cost of around US$660m.

Marigold is a different story. It’s generated next to no free cashflow over the past three years due to poor ore grades. Capex was also high as the miner had to put in new equipment like haul trucks and a rope shovel.

However, Marigold may be turning a corner following the investment. UBS expects a step change in free cashflow in 2021 due to a lift in production from ~230,000 ounces of gold a year (kozpa) now to 270kozpa due to better grades.

Potential catalyst for SSR share price

“At Marigold, the key opportunity in our view for a step change in valuation is exploration success,” added the broker.

“Management are drilling and targeting high grade sulphide mineralisation. Early intercepts of high grade gold at Trenton Canyon are promising, but this remains early stage.”

But be forewarned. SSR’s group production growth is lower than its peers, although the bad news may be in the share price.

SSR share price looking cheap despite risks

UBS noted that the SSR share price is on a FY21 enterprise value to earnings before interest, tax, depreciation and amortisation (EV/EBITDA) multiple of ~4 tomes. This compares to its peers at 7 to 8 times.

SSR also has a better free cash flow yield of around 15% when its peers are between zero and 10%.

UBS’s price target on the stock is $33 a share.

More reading

• One ASX tech share to buy today ahead of government cash splash
• The latest 3 ASX stocks that brokers just upgraded to “buy”
• ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.
• Why a2 Milk, Bank of Queensland, Mesoblast, & Northern Star are dropping lower today
• Is this the ASX 200 dividend share you can hold into retirement?

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited and Newcrest Mining Limited. 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 forgotten ASX gold stock that UBS is urging you to buy today appeared first on Motley Fool Australia.

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Yet another employee underpayment crisis has struck, sending one bank’s shares tumbling on Tuesday.

Bank of Queensland Limited (ASX: BOQ) stock had dived 6.6% at the time of writing, to trade at $5.93. The shares were as high as $7.68 in February.

The freefall came as the company admitted an employee pay review uncovered “irregularities” in remuneration and superannuation payments.

BOQ announced it would charge an expense of $11 million to its 2020 financial year bottom line because of the discovery. 

The amount consists of $2.4 million already paid to the Australian Taxation Office as part of the Superannuation Guarantee Amnesty. Another $8.6 million was reserved for future remediation.

“We will get this right and we will make sure our people, past and present, receive every cent they are owed. This is an absolute priority,” said BOQ chief executive George Frazis.

The Finance Sector Union of Australia (FSU) stated 750 employees were short-changed.

According to the union, it first raised concerns about missing super with BOQ 18 months ago.

“While that issue was resolved, it is disappointing that the bank failed to follow through and properly audit its payroll at the time,” the FSU stated.

This is wage theft: union

BOQ announced that it had appointed “third parties” to help with identifying and remediating underpayments.

FSU National Secretary Julia Angrisano criticised the delay in getting the backpay out to workers.

“It is not acceptable that staff are being forced to wait until March 2021 to have their correct pay reinstated,” she said.

“This is wage theft and we are calling on the Bank of Queensland to accelerate the repayment program to pay affected employees immediately.”

The wage scandal comes after a string of other ASX companies like Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Super Retail Group Ltd (ASX: SUL) mop up similar mishaps.

COVID-19 blows out BOQ’s impairment expense

The bank also flagged Tuesday that its financial year 2020 loan impairment expense would be $175 million pre-tax. That includes a $133 million COVID-19-related provision.

“The revised provision reflects the anticipated lifetime losses on the current portfolio relating to the impacts of COVID‐19,” said Frazis.

“We are very pleased to see many of our customers returning to work and re‐opening their businesses and will continue to work closely with those that require further assistance.”

BOQ’s 2020 financial year results will be revealed on 14 October.

More reading

• ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.
• Why a2 Milk, Bank of Queensland, Mesoblast, & Northern Star are dropping lower today
• Bank of Queensland (ASX:BOQ) share price on watch after COVID and employee underpayment update
• These are the 10 most shorted ASX shares
• ASX 200 finishes the week with a bang

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET 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.

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I think that Magellan Global Trust (ASX: MGG) could be a dream share for a retiree because it offers many things that retirees need.

About Magellan Global Trust

Magellan Global Trust is a listed investment trust (LIT) which invests in global businesses. It’s operated by one of the country’s leading investment managers, Magellan Financial Group Ltd (ASX: MFG).

At the last monthly update it said that the fund size was $2.34 billion of assets.

In terms of fees, it has an annual management and admin fee of 1.35% per annum. This seems fairly high compared to many exchange-traded funds (ETFs), however it’s the net performance that matters most. Some fund managers are worth their fees. Others aren’t.

Here are some of the reasons that retirees may really like Magellan Global Trust:

International diversification

I think that many Aussie retirees could do with diversifying their portfolios away from Australian shares. There are plenty of good ASX shares, but the ASX only accounts for 2% of the global market capitalisation.

Over the last decade I think it has been quite clear that it’s the international tech blue chips that have generated the best profit growth and shareholder returns. It’s hard to say where the best place for investing will be in the 2020s, but I think owning some high-quality global shares is always a good idea.

It’s that focus on high quality which is exactly what Magellan Global Trust tries to do. It says that it “seeks to invest in a focussed portfolio of outstanding global companies and seeks to purchase investments when they are trading at a discount to their assessed intrinsic value.”

What businesses make it into the portfolio? At the end of August 2020 its largest 10 holdings were (in alphabetical order): Alibaba, Alphabet, Atmos Energy, Facebook, MasterCard, Microsoft, Reckitt Benckiser, Tencent, Visa and Xcel Energy.

Magellan Global Trust tries to build its portfolio with a mix of growth and defensive businesses. That’s why there are some defensive energy businesses in the holdings.

Strong total returns

The LIT has done well since inception in October 2017, it has outperformed the MSCI World Net Total Return Index (AUD) by 1.4% per annum (after all expenses and fees) with an average return per annum of 12.5%.

Those numbers include the COVID-19 crash, which have hurt returns. The unlisted Magellan Global Fund, which is very similar and has been running over a decade, has returned an average of 16.1% per annum over the past 10 years.

Targets a 4% distribution yield

Most retirees are looking for a bit of yield from their portfolio. Too much focus on income could lead to poor capital growth returns, but Magellan Global Trust aims to pay out a 4% distribution yield from its diversified, largely growth-focused, portfolio.

Considering how low interest rates are in Australia right now, I think that’s a solid starting yield which will grow over time if Magellan Global Trust’s net asset value (NAV) per unit grows too.

Is the Magellan Global Trust share price a buy?

At the current Magellan Global Trust share price, it’s trading at a 5.5% discount to the current intraday indicative NAV per unit of $1.8833.

That’s not a large discount, but it’s better than nothing. I think it’s an attractive combination to be able to buy, at a discount, an ASX share that has outperformed the global share market over the past three years by more than 1% per annum.

It offers an attractive yield, international diversification and it’s quite defensive. At 31 August 2020, 16% of its portfolio was cash – which provides protection and ammunition for opportunities in case the global share market falls. I’d be happy to buy some Magellan Global Trust shares today, and buy more on price weakness. The US election could throw up some volatility.

More reading

• 3 great ASX blue chip shares I’d buy
• Top brokers name 3 ASX shares to buy today
• Leading brokers name 3 ASX shares to sell today
• ASX 200 drops another 0.8%, Magellan (ASX:MFG) reveals a large investment
• 2 ASX shares I would buy for growth and income

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS. 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 Magellan Global Trust (ASX:MGG) could be a retiree’s dream share appeared first on Motley Fool Australia.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and NZ$13.50 (A$12.51) price target on this infant formula company’s shares following its trading update. The broker estimates that a2 Milk Company’s daigou sales are down 75% compared to the prior corresponding period. And while its Chinese label sales have been stronger than the broker expected, it isn’t enough for positive sales growth in the first half. In light of this, Morgan Stanley doesn’t appear to be in a rush to change its rating. The a2 Milk share price is trading at A$14.67 this afternoon.

DEXUS Property Group (ASX: DXS)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $8.15 price target on this property company’s shares. It believes DEXUS could have a very tough 12 months due to weakness in the Australian office market. Outside this, the broker has suggested that a large scale share buyback is unlikely at the current level. It feels its shares would have to fall further before management would consider one. The DEXUS share price is fetching $8.99 on Tuesday.

Zip Co Ltd (ASX: Z1P)

Analysts at Citi have retained their sell rating and $6.70 price target on this buy now pay later provider’s shares. According to the note, one of the company’s biggest U.S. customers, Hoka One, has ditched Zip’s QuadPay business in favour of Afterpay Ltd (ASX: APT). It believes this is a sign of increasing competition in the lucrative market. And that’s before PayPal enters it with its BNPL offering. The Zip share price is trading below this price target at $6.38 this afternoon.

More reading

• The latest 3 ASX stocks that brokers just upgraded to “buy”
• ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.
• Why a2 Milk, Bank of Queensland, Mesoblast, & Northern Star are dropping lower today
• The ASX shares that fund managers were buying this month
• Where to invest $1,000 into ASX shares today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. 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 Leading brokers name 3 ASX shares to sell today appeared first on Motley Fool Australia.

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Technology shares on the ASX, and across the globe, have widely outperformed the broader market returns this year. That’s led some analysts to speculate that tech shares have rallied too hard and too fast. And, indeed, over the past few weeks, many technology shares have given back some of their gains, though most of the big names are still well up for the year.

But with new funding pouring in from both the private and public sectors, the recent correction could be short-lived, and tech shares could again run much higher.

What new funding is the Government providing?

Today, Prime Minister Scott Morrison is unveiling the fine print on $800 million of new government spending intended to boost Australia’s technology sector and help lift the economy out of its COVID-19 recession.

Much of the money is earmarked for the Government’s own agencies. According to the Australian Financial Review, $257 million will be used to “improve access to government services by expanding the Digital Identity Program”.

Another $420 million will go towards combining the Australian Business Register and the 31 registers administered by ASIC, “allowing businesses to quickly view, update and maintain their business registry data in one location”.

That leaves some $120 million which “will be allocated across more than a dozen new initiatives designed to help business adapt to technology.”

Foolish takeaway

The rapid adoption of technology by businesses and households since social distancing and lockdowns became a reality just 6 months ago isn’t going to fade away. In fact, as the Government’s new $800 million tech spending program demonstrates, it’s only likely to keep speeding up.

This should benefit most of the well-run tech shares on the ASX.

One that I believe looks particularly well-placed to ride the tech boom, and grab a slice of the government’s latest cash splash (either directly or indirectly), is Appen Ltd (ASX: APX).

Appen develops human-annotated training data for machine learning and artificial intelligence. Though no information has been released, to my knowledge, its Speech and Data Collection business looks well-aligned to assist with the Government’s $257 million improvement package for the Digital Identity Program.

Appen’s share price is up 52% year-to-date.

Though gaining strongly today, Appen’s share price is still down 22% from its 26 August all-time highs, offering a potentially lucrative entry point.

More reading

• The forgotten ASX gold stock that UBS is urging you to buy today
• Where to invest your Coles (ASX:COL) dividends this week
• The latest 3 ASX stocks that brokers just upgraded to “buy”
• ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.
• Is this the ASX 200 dividend share you can hold into retirement?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen 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 One ASX tech share to buy today ahead of government cash splash appeared first on Motley Fool Australia.

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Australia’s leading investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

This week there are a couple of new faces to the list, with one in particular possibly coming as a surprise to readers.

Here’s the data:

Novonix Ltd (ASX: NVX)

The most traded share on CommSec last week was this battery materials supplier. Its shares accounted for 3.7% of trades on the platform. Speculation that the company might announce a deal with Tesla appeared to be getting investors excited. However, with no deal forthcoming, the Novonix share price unsurprisingly crashed lower. It lost 35% of its value last week.

BrainChip Holdings Ltd (ASX: BRN)

BrainChip shares were popular with investors again last week and accounted for 2.1% of trades on the CommSec platform last week. And despite 60% of these trades coming from the buy side, it didn’t stop the BrainChip share price from dropping 3.5% lower. The artificial intelligence technology company’s shares were still up over 750% year to date at the end of last week.

Zip Co Ltd (ASX: Z1P)

This BNPL provider’s shares accounted for 1.9% of trades on the CommSec platform last week. Approximately 63% of these trades were from the buy side, which appears to indicate that investors feel recent weakness in the Zip share price is a buying opportunity. Zip shares fell 3.2% last week and were down 32% month to date at the end of the period.

Commonwealth Bank of Australia (ASX: CBA)

Australia’s largest bank remains in the top five for a second week. CBA shares accounted for 1.9% of trades on the CommSec platform, with two-thirds coming from buyers. The good news for these buyers was that the government announced plans to relax responsible lending rules. This led to bank shares storming higher on Friday. The CBA share price recorded a weekly gain of 2.7%.

National Australia Bank Ltd (ASX: NAB)

As with CBA, this big four bank was popular with investors thanks to changes to responsible lending rules. This meant that NAB’s shares accounted for 1.8% of trades on the CommSec platform. Pleasingly, the positive finish to the week led to the NAB share price recording a weekly gain of 6.2%.

More reading

• 3 ASX dividend shares to buy for income today
• Why Flight Centre, MoneyMe, Paradigm, & Zip shares are pushing higher today
• Here are the 10 most popular ETFs on the ASX
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher
• Why I would buy Commonwealth Bank (ASX:CBA) and this ASX dividend share

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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 BrainChip (ASX:BRN) and Novonix (NVX) were among the most traded shares on the ASX last week appeared first on Motley Fool Australia.

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Virgin Money UK (ASX: VUK) shares have edged higher today after the company announced a new interim chief financial officer (CFO). At the time of writing, the Virgin Money share price is trading 1.52% higher at $1.34. 

What was in the announcement?

The Virgin Money share price is rising as the company announced it has appointed its current group corporate development manager, Enda Johnson, as interim CFO. This will take effect on 15 October and the executive will remain in the role while the company continues its search for a permanent new CFO.  

The interim CFO appointed has held executive roles with Virgin Money UK since 2016 and, according to the company, he has been involved in strategy, corporate finance, corporate affairs, financial planning and investor relations. 

Mr Johnson joined the company in 2015 after working for Allied Irish Banks for 3 years as head of strategy and corporate affairs. Prior to this, he worked on the restructure and recapitalisation of Irish banks following the GFC in a role with the Irish National Treasury Management Agency. The new interim CFO started his career in investment banking with Merrill Lynch, working on client advisory and equity transactions.

The company’s former CFO, Ian Smith, will continue at the bank until 15 October.

Virgin Money UK CEO David Duffy commented on the appointment, stating;

Enda, together with Ian and I, has been instrumental in developing and directing Virgin Money UK’s strategy since the IPO. Enda’s broad banking experience and deep knowledge of our business make him a strong appointment as our interim CFO, providing continuity while we continue our search for a permanent CFO.

About the Virgin Money share price

In September, the Virgin Money share price was removed from the S&P/ASX 100 Index (ASX: XTO) which is a list of the biggest 100 companies on the ASX by market capitalisation.

In its quarterly trading update to 30 June 2020, Virgin Money UK announced that it had not seen any significant provisions or credit losses due to the COVID-19 pandemic, mainly due to government support. At 30 June 2020, the group’s CET1 capital ratio improved by .30% to 13.3%. Customer deposits were up by 4.3% in the June quarter due to lockdown induced savings and the company’s mortgage portfolio shrank by 1% due to lower house purchases during lockdowns.

The Virgin Money share price is up 26.42% since its 52-week low of $1.06, however, it is down 62.25% since the beginning of the year. The Virgin Money share price is down 35.58% since this time last year.

More reading

• 2 ASX shares I think are cheap today
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher
• These were the worst performing ASX 200 shares last week
• ASX 200 falls 0.7%, UK and travel shares drop
• COVID-19 fear hits the UK, 2 ASX shares to buy

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.

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ASX dividend shares are a minefield these days. The players and the game have massively shifted since the glory days of 2019. Now, it seems like an ASX share is deemed a successful dividend payer if it trumps up any cash whatsoever in 2020. But when it comes to choosing income shares, I’m adopting a long-term outlook.

Remember, the year we’re all going through has been truly unprecedented, and I’m not going to punish or overlook a company just because it’s had some issues fronting up cash in a year of a global pandemic. So here are 3 ASX dividend shares I would consider today for both their current and future dividend prospects.

3 ASX dividend shares to buy today

CSL Limited (ASX: CSL)

CSL is not normally classed as a strong dividend share, with most ASX investors preoccupied with its eye-watering growth over the past decade. But a dividend share CSL is and a top one at that in my view. The company’s current dividend yield doesn’t look too impressive at 1% today. But when you consider that CSL has managed to double its dividend over the past 5 years, the picture starts looking a lot clearer (and more beautiful). If this rate of dividend payouts continues at anywhere near this pace, you’ll be reaping substantial income from a CSL investment today in just a few years.

Commonwealth Bank of Australia (ASX: CBA)

I’ve gone on the record over my reluctance to consider CBA as a dividend share in the next few years. Even so, I’ve been impressed with the biggest ASX bank’s ability to keep the dividends flowing this year, especially when you consider rivals like Westpac Banking Corp (ASX: WBC) have practically had to turn off the dividend tap. As such, I think CBA is the pick of the bunch right now when it comes to ASX financials.

Yes, CommBank has only paid $2.98 in dividends this year so far. But that still gives CBA shares a yield of 4.57% on current prices. And if CBA ever got back to a position where it was able to pay $4.31 in dividends again (2019’s payouts), the shares today would give you a yield of 6.61%. Now just to be clear, I don’t think this will happen for a number of years. But it’s still a possibility to consider if you have a long investment horizon.

Ramsay Health Care Limited (ASX: RHC)

Ramsay sadly had to end a 20-year streak of annual dividend increases this year when it announced there will be no final dividend for ordinary shareholders in 2020. Such are the realities of this pandemic. Even so, Ramsay made a hard but necessary choice, and I think the company is well placed to resume its dividend trajectory in FY21.

This company is the largest provider of private hospital care in the country – an evergreen and growing market. This company has had a stellar history of growth over the past few decades, and I think is well-poised to continue this in light of our ageing population. As such, I think Ramsay is another top dividend share to buy for future income today.

More reading

• Here are the 10 most popular ETFs on the ASX
• 2 ASX shares I would buy for growth and income
• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher
• 3 of the best ASX healthcare shares to buy and hold
• Why I would buy Commonwealth Bank (ASX:CBA) and this ASX dividend share

Sebastian Bowen owns shares of Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care 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.

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A select group of ASX shares have shot the lights out this year. And garnered most of the headlines.

Yes, we’re looking at you Brainchip Holdings Ltd (ASX: BRN). The Brainchip share price is up 640% year to date, despite tumbling around 50% since 10 September.

And you Afterpay Ltd (ASX: APT), with share price gains of 167% since 2 January.

Yet, while there are scores of high-quality shares on the S&P/ASX 200 Index (ASX: XJO), the index of the top 200 Australian listed stocks has lagged most other developed nations’ markets in 2020.

While edging higher in late morning trade today, year to date the ASX 200 is still down 11%.

In comparison, Germany’s DAX Performance-Index (DB: DAX) is down 3%; the United States’ S&P 500 Index (SP: .INX) is up 3%, and Japan’s Nikkei 225 (NIKKEI: NI225) has gained 1%.

Chinese and technology shares have been among the strongest performers. China’s CSI 300 Index (SHA: 000300) is up 11% in 2020, while the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) has gained 22%.

With Brexit negotiations still unresolved and COVID-19 cases spiking, the United Kingdom’s FTSE 100 Index (FTSE: UKX), down 22% in 2020, is one of the few to greatly underperform the ASX 200.

Why Morgan Stanley sees value in ASX shares

Australia, fingers crossed, looks to have rounded the corner in its battle against the coronavirus. Victoria is emerging from its strict lockdown measures, and many states haven’t had any new cases in weeks.

State borders, with the exception of Western Australia for the time being, are reopening. And there is talk that the much-touted trans-Tasman travel bubble could eventuate before the Christmas holidays.

All that spells good news for the beaten down travel and leisure shares still lagging on the ASX.

This hasn’t escaped the attention of the analysts at Morgan Stanley. Noting that it’s likely ASX share earnings have hit their lows, the broker upgraded Australia to overweight in its regional country model.

According to Morgan Stanley’s equity strategist Chris Nicol (as quoted by the Australian Financial Review):

Despite a better-than-feared initial COVID impact and best-in-class economic trough, the ASX 200 has lagged developed market peers when comparing recovery in equity market levels from crisis lows… Catch-up catalysts are now in focus from investors. The set up from here is interesting where Australia’s recovery outlook contrasts with developed market economies entering winter and second-wave COVID risks rising amid fiscal debates and varying recovery impacts.

Foolish takeaway

If you take a look through the leading shares in the travel and leisure business, you’ll find most of them are still well down for the year. Yet, again for most of these companies, nothing has changed from their previously successful business model. Aside, of course, from the pandemic.

If Australia is indeed on track to reopen its domestic borders alongside travel to New Zealand over the next few months, these shares should enjoy some of the strongest rebounds.

One blue chip share that’s really been pummeled by the travel bans is Sydney Airport Holdings Pty Ltd (ASX: SYD). Historically a reliable dividend payer with strong annual share price growth, the Sydney Airport share price has gained nearly 30% since the 19 March lows, but it is still down almost 33% from 17 January.

That means if the share price recovers to its 17 January levels — which I believe is likely inside the next 1 to 2 years — investors buying shares today could be looking at gains of 50%.

More reading

• ASX 200 Weekly Wrap: Bank shares push ASX 200 higher
• Brokers name 3 ASX shares to buy right now
• Why the Flight Centre (ASX:FLT) share price and Webjet (ASX:WEB) share price are taking off
• Why you should look beyond the second wave to the blue investment skies beyond
• Macquarie says ASX value shares will outperform growth stocks from here

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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